Document:

Exhibit 10.30

 

Stock Purchase Agreement

 

The
date of this Agreement is February 7, 2005.

 

The
Parties to this Agreement (the “Parties”) are:

 

International
Insurance Brokers, Ltd., LLC, an Oklahoma limited liability company (“Buyer”)

 

TeamBank
N.A., a national banking association (“Seller”)

 

Seller
is the owner of all of the issued and outstanding common stock (the “TIG Stock”)
of Team Insurance Group, Inc., an Oklahoma corporation (the “Company”).

 

Seller
desires to sell, and Buyer desires to purchase, the TIG Stock for the
consideration and on the terms stated in the Agreement.

 

Certain
words and phrases shall herein have the meanings stated in Attachment A hereto.

 

THEREFORE,
in consideration of the premises, and the mutual promises of the Parties herein
stated, the parties have agreed:

 

1.             SALE AND TRANSFER OF TIG STOCK; CLOSING;
ADJUSTMENT

 

1.1           TIG STOCK

 

Subject
to the terms and conditions of this Agreement, at the Closing, Seller shall
sell and transfer the TIG Stock to Buyer, and Buyer shall purchase the TIG
Stock from Seller.

 

 

1.2           PURCHASE PRICE

 

The
purchase price (the “Purchase Price”) for the TIG Stock will be $7,000,000 plus
the Adjustment Amount.

 

1.3           CLOSING

 

The
purchase and sale (the “Closing”) provided for in this Agreement will take
place at the offices of Buyer at 303 Reunion Center, 9 E. 4th
Street, Tulsa, Oklahoma at 5:00 p.m. (local time) on the date of this Agreement
or at such other time as the Parties may agree to in writing.  Subject to the provisions of Section 8,
failure to consummate the purchase and sale provided for in this Agreement on
the date and time and at the place determined pursuant to this Section 1.3 will
not result in the termination of this Agreement and will not relieve any party
of any obligation under this Agreement. 
The transactions herein contemplated will be effective for all purposes
at December 31, 2004 (the “Effective Time”).

 

 

1.4           CLOSING OBLIGATIONS

 

At
the Closing:

 

(a)           Seller shall deliver to Buyer:

 

(i)            Certificates representing the TIG Stock, duly
endorsed (or accompanied by duly Executed stock powers) for transfer to Buyer;

 

(ii)           A Release in the form of Schedule 1.4(a)(ii)
executed by Seller (“Seller’s Release”);

 

(iii)          An Inducement Agreement in the form of
Schedule 1.4(a)(iii), executed by Team Financial, Inc. (“Team Financial”), a
Kansas Corporation (the “Inducement Agreement”); and

 

(iv)          If the Closing Date is other than the date of
this Agreement, a certificate signed by Seller representing and warranting to
Buyer that each of Seller’s representations and warranties in this Agreement
was accurate in all respects as of the date of this Agreement and is accurate
in all respects as of the Closing Date as if made on the Closing Date (giving
full effect to any supplements to the Disclosure Schedule that were delivered
by Seller to Buyer prior to the Closing Date in accordance with Section 4.4);
and

 

(b)           Buyer will deliver to Seller:

 

(i)            $6,500,000 by wire transfer to accounts
specified by Seller, which together with $500,000 previously delivered to Seller
(the “Down Payment”) plus or minus the Adjustment Amount described in Section
1.5, if any, shall constitute payment in full of the Purchase Price.  At the signing of this Agreement by both
parties, Buyer shall deliver to Seller an Irrevocable Unconditional Funding
Letter in a form acceptable to Seller committing Buyer’s bank to make the
timely payment of the sum of $6,500,000 described above to Seller.

 

(ii)           If the Closing Date is other than the date of
this Agreement, a certificate executed 

 

 

by
Buyer to the effect that, except as otherwise state in such certificate, each
of Buyer’s representations and warranties in this Agreement was accurate in all
respects as of the date of this Agreement and is accurate in all respects as of
the Closing Date as if made on the Closing Date.

 

1.5           ADJUSTMENT AMOUNT

 

The
Adjustment Amount shall be that amount which may be necessary to adjust the
Closing Balance Sheet (defined in Section 1.6 below) of the Company to reflect
the difference between the total equity of the Company and the Purchase Price
(which may be a positive or negative number).

 

1.6           ADJUSTMENT PROCEDURE

 

(a)           Attachment 1.6 to this Agreement is a Balance
Sheet of the Company agreed to by the parties that reflect the agreed upon
Balance Sheet of the Company as of the close of business December 31, 2004 for
the purpose of valuing the Company pursuant to this Agreement (the “Closing
Balance Sheet”).  If within sixty days
following the Closing, Buyer has not given Seller notice of its objection to
the Closing Balance Sheet (which notice must contain a statement of the basis
of Buyer’s objection), then the total equity reflected in the Closing Financial
Balance Sheet will be deemed to be correct. 
If Buyer gives such notice of objection and if Buyer and Seller do not
agree to an Adjustment Amount within thirty days of notice of such objection,
then the issues in dispute will be submitted to Stanfield & O’Dell, Tulsa
Oklahoma, certified public accountants (the “Accountants”), for
resolution.  If issues in dispute are
submitted to the Accountants for resolution, (i) each party shall promptly
furnish to the Accountants such work papers and other documents and information
relating to the disputed issues as the Accountants may request and are
available to that party or its Subsidiaries or Affiliates (or its or their
independent public accountants), and will be afforded the opportunity to
present to the Accountants any material relating to the determination and to
discuss the determination with the Accountants; (ii) the determination by the
Accountants, as set forth in a notice delivered to both parties by the
Accountants, will be binding and conclusive on the Parties; and (iii) Buyer and
Seller will each bear 50% of the fees of the Accountants for such determination.

 

(b)           On the tenth business day following the final
determination of the Adjustment Amount, if the Adjustment Amount requires that
additional consideration be paid to Seller, Buyer will pay the Adjustment
Amount to Seller, and if the Adjustment Amount requires that Seller refund a
portion of the Purchase Price to Buyer, Seller will pay the Adjustment Amount
to Buyer.  Payment of the Adjustment
Amount will be made without interest if timely made, if such payment is not
timely made, interest shall accrue thereon at the rate of 5% per annum
commencing from the tenth business day following such final determination.  Payments must be made in immediately
available funds by wire transfer to such bank account as the recipient of such
payment shall specify.

 

 

2.             REPRESENTATIONS AND WARRANTIES OF SELLER

 

Seller
represents and warrants to Buyer as follows:

 

2.1           ORGANIZATION AND GOOD STANDING.

 

(a)           The Company is a corporation duly organized,
validly existing and in good standing under the laws of the State of Oklahoma
with the corporate power and authority to own its properties and conduct its
business as it is now being conducted. 
The conduct of the Company’s business and the ownership of its
properties do not require the Company to qualify as a foreign corporation in
any jurisdiction, except where the Company is currently qualified and
authorized as a foreign corporation.  The
Company has all permits, licenses, approvals, authorizations, applications,
franchises, certificates and similar such items and rights necessary and
adequate for the operation of the Company’s business and the same are valid and
in full force and effect.

 

(b)           The Company has no subsidiary corporations or
entities.

 

(c)           Schedule 2 .1(c) to this Agreement is a
correct and complete copy of the Organizational Documents of the Company (as
amended to date).  The Company is not in
default or in violation of any provision of its Organizational Documents.

 

(d)           Seller is a corporation duly organized,
validly existing and in good standing as a national banking association, with
the corporate power and authority to own its properties and conduct its
business as it is now being conducted.

 

2.2           AUTHORITY. 
Seller has all requisite corporate power and authority to enter into
this Agreement, and to consummate the transactions contemplated hereby.  The execution, delivery and performance of
this Agreement, and the consummation of the transactions contemplated herby
have been duly authorized by all necessary corporate action on the part of the
Seller.  This Agreement has been duly
executed and delivered by Seller, and assuming due execution and delivery by
Buyer, constitutes a valid and binding obligation of Seller, enforceable in
accordance with its terms subject to applicable conservatorship, receivership,
bankruptcy, insolvency and similar laws affecting creditor’s rights and
remedies generally, and subject, as to enforceability, to general principles of
equity (including without limitation specific performance), whether applied in
a court of law or a court of equity. 
Schedule 2.2 to this Agreement is a certified resolution of the Board of
Directors of Seller, approving this Agreement and consummation of the
transactions herein contemplated.

 

2.3           CAPITALIZATION.  The entire authorized capital stock of the
Company consists of the One Hundred Thousand (100,000) shares of TIG Stock, all
of which are issued and outstanding and owned by Seller as stated

 

 

herein.  All of the shares of TIG Stock have been duly
authorized, are validly issued, fully paid, and non-assessable, and are held of
record by Seller.  There are no
outstanding or authorized stock options on the shares of TIG Stock, warrants,
purchase rights, subscription rights, conversion rights, exchange rights,
shareholder agreements, or other contracts or commitments that could require
the Company to issue, sell, or otherwise cause to become outstanding any of its
capital stock.  There are no outstanding
or authorized stock appreciation, phantom stock, profit participation, or
similar rights with respect to the Company. 
There are no voting trusts, proxies, or other agreements or
understandings with respect to voting the capital stock of the Company.

 

2.4           STOCKHOLDER APPROVAL.  The corporate records show that Seller, as
the sole Stockholder of the Company, has taken such action as is necessary to
approve this Agreement, and no additional action of Seller is required to
consummate the transactions contemplated hereby.

 

2.5           NO VIOLATIONS.  The execution, delivery and performance of
this Agreement by the Company does not, and the consummation of the
transactions contemplated hereby will not, constitute (i) a breach or violation
of, or a default under any law, rule or regulation or any judgment, decree,
order, governmental permit or license, or agreement, indenture or instrument
binding or affecting the Company or Seller, (ii) a breach or violation of, or a
default under, the Organizational Documents of the Company or Seller, or (iii)
a breach or violation of, or default under (or an event which with due notice
or lapse of time or both would constitute a default under), or result in the
termination of, accelerate the performance required by, or result in the
creation of any lien, pledge, security interest, charge or other encumbrance
upon any of the properties or assets of the Company under, any of the terms,
conditions or provisions of any note, bond, indenture, deed of trust, loan
agreement or other agreement, instrument or obligation to which the Company or
Sellers is a party, or to which any of their respective properties or assets
may be bound or affected.  The TIG Stock
is free and clear of all liens, encumbrances, equities or claims.

 

2.6           CONSENTS. 
No filing or registration with, or authorization, consent or approval
of, any public body or authority is necessary for the consummation of the
transactions contemplated by this Agreement.

 

2.7           GOVERNMENT REGULATION.  The Company holds all material licenses,
certificates, permits, franchises and rights from all appropriate federal,
state or other public authorities necessary for the lawful conduct of its
businesses and ownership of its properties. 
The Company has complied with all material federal, state and local
statutes, regulations, ordinances or rules applicable to the ownership of its
properties or the conduct of its business.

 

2.8           FINANCIAL STATEMENTS.  Seller has previously delivered to Buyer
balance sheets for the Company as of December 31, 2002 and December 31, 2003,
and related statements of income for the years ended at those dates, and “2004
Financial Statements” comprised of an un-audited trailing 12 months income
statement for the period ended October 31,2004, and the Closing Balance Sheet
(collectively for all of the foregoing the “Company Financial Statements”).  The Company Financial Statements other than the
2004 Financial Statements, although they are un-audited, have been prepared in
accordance with generally accepted accounting principles and practices which
were applied on a consistent basis.  The
2004 Financial Statements have been prepared for management reporting purposes
and have not been prepared in accordance with GAAP.  The

 

 

Company
Financial Statements present fairly in all material respects the financial
position, results of operation and changes of financial position of the
Company, as applicable, as of their respective dates and for the periods
indicated.  The Company has no material
liabilities or obligations of a type which would be included in a balance sheet
whether related to tax or non-tax matters, accrued or contingent, due or not
yet due, liquidated or unliquidated, or otherwise, except as and to the extent
disclosed or reflected in Closing Balance Sheet.  From December 31, 2004 until the date hereof,
there has been no material adverse change in the financial condition,
properties, assets, liabilities, rights or business of the Company, or in the
relationship of the Company with respect to its employees, creditors,
suppliers, distributors, customers or others with whom it has business.  The Company Financial Statements are correct
and complete in all material respects.

 

2.9           LEGAL PROCEEDINGS.  Except as has been disclosed in Schedule 2.9
to this Agreement: (i) the Company is not subject to any outstanding
injunction, judgment, order, decree, ruling or charge or (ii) is or was not a
party or, to the knowledge of Seller or the directors and officers (and
employees with responsibility for litigation matters) of the Company, is not
threatened to be made a party to any action, suit, proceeding, hearing, or
investigation of, in, or before any court or quasi-judicial or administrative
agency of any federal, state, or local jurisdiction or before any
arbitrator.  No legal proceedings,
hearings, and investigations could result in any material adverse change in the
business, financial condition, operations, results of operations or future
prospects of the Company.  Neither Seller
nor the directors and officers (and employees with responsibility for
litigation matters) of the Company has any reason to believe that any such
action, suit, proceeding, hearing or investigation may be brought or threatened
against the Company.  There are no
existing violations of federal, state or local laws, ordinances, rules,
regulations or orders by the Company which materially or adversely affect the
business of the Company or the possession, use, occupancy or operation of any
of the Company’s facilities or other property.

 

2.10         ASSETS. 
The Company does not currently own, and, based upon prior
representations to Seller when the Company Stock was acquired, has never owned,
any real property.  The Company owns or
leases all equipment and other tangible assets necessary for the conduct of its
business as presently conducted and as presently proposed to be conducted.  Schedule 2.10 to this agreement is a true and
complete copy of the only lease of real property to which the Company is a
party.  The Company has good and
marketable title to and possession of all of its assets, in each case free and
clear of any liens, restrictions, encumbrances, rights, title and interests of others
and except for the lien of current taxes, covenants and restrictions of record,
and other minor imperfections of title not affecting marketability, which
liens, covenants, restrictions and imperfections do not materially affect the
value of such property and do not interfere with the use made of such property
by the Company.  The real and personal
properties and assets held under lease by the Company are held under valid,
subsisting and enforceable leases with such exceptions as do not interfere with
the business use made of such properties and assets by the Company.  No consent is necessary under the terms of
any such lease in connection with the consummation of the transactions
contemplated hereby.  Except as disclosed
on Schedule 2.10 to this Agreement, each contract, lease or agreement to which
the Company is a party is terminable at the will of the Company on not more
than 30 days notice, at no cost or penalty to the Company.

 

2.11         UNDISCLOSED LIABILITIES.  There is no known basis for any present or
future action, suit, proceeding, hearing, investigation, charge, complaint,
claim, or demand against the Company giving rise to any liability exceeding
such amount, except for (i) liabilities set forth on the face of the Closing
Balance Sheet and (ii) liabilities which may have arisen after the most recent
fiscal month end in the Ordinary Course of Business (none of which results
from, arises out of, relates to, is in the nature of, or was caused by any
breach of contract, breach of warranty, tort, infringement or violation of law,
and which Liabilities will not, individually or in the

 

 

aggregate,
exceed the amount of $5,000, or have a material adverse effect on the business,
properties or condition (financial or otherwise) of the Company, and (iii) liabilities
disclosed in Schedule 2.11 to this Agreement.

 

2.12         TAXES. 
The Company has timely filed all tax returns required to be filed by it,
and the Company has timely paid and discharged all taxes due in connection with
or with respect to the filing of such tax returns and has timely paid all other
taxes as are due, except such as are being contested in good faith by
appropriate proceedings and with respect to which the Company is maintaining
reserves adequate for their payment.  All
such tax returns are or were correct and complete in all material
respects.  To the knowledge of the
Company, the liability for taxes set forth on each such tax return adequately
reflects the taxes required to be reflected on such tax return.  Neither the IRS nor any other governmental
entity or taxing authority or agency is now asserting, either through audits,
administrative proceedings, court proceedings or otherwise, or, to the Company’s
knowledge, threatening to assert against the Company any deficiency or claim
for additional taxes.  The Company has
not granted any waiver of any statute of limitations with respect to, or any
extension of a period for the assessment of, any tax.  There are no tax liens on any assets of the
Company.  The Company has not received a
ruling or entered into an agreement with the Internal Revenue Service or any
other governmental entity or taxing authority or agency that would have a
Material Adverse Effect (as defined below) on the Company after the Effective
Time.  For purposes of this Agreement, “Material
Adverse Effect” with respect to the Company means an effect that will:  (1) is materially adverse to the business,
financial condition, results of operations or prospects of the Company;  (2) significantly and adversely affects the
ability of the Company to consummate the transactions contemplated by this
Agreement by the Effective Time or to perform its material obligations under
this Agreement; or (3) enables any person to prevent the consummation by the
Effective Time of the transactions contemplated by this Agreement.  The Company does not expect any taxing
authority to assess any additional taxes for any period for which tax returns
have been filed.

 

2.13         CONTRACTS. 
The Company is not a party to or bound by any:

 

(a)           Employment contracts, producer agreements or
similar agency contracts unless such instruments are terminable at the will of
the Company on not more than thirty days notice, at no cost or penalty to the
Company except as have been disclosed on Schedule 2.13(a) to this Agreement;

 

(b)           Bonus, deferred compensation, savings, profit
sharing, severance pay, pension or retirement plan or arrangement, except a
producer agreement bonus arrangement, as a participating employer in the Team
Financial, Inc. Employee Stock Ownership Plan and 401k Plan, copies of which
are Schedule 2.13(b) to this Agreement;

 

(c)           Except as listed on Schedule 2.13(c) to this
Agreement, any material lease or license with respect to any property, real or
personal, whether the Company is landlord or tenant, licensor or licensee,
involving a liability or obligation of the Company as obligor in excess of
$5,000 on an annual basis;

 

(d)           Agreement, contract or indenture relating to
the borrowing of money by the Company, except as shown on the Company Financial
Statements;

 

 

(e)           Agreement with any present or former officer,
director or stockholder of the Company except for those that are Schedule
2.13(e) to this Agreement; or

 

(f)            Other contract, agreement or other commitment
which is material to the business, operations, property, prospects or assets or
to the condition, financial or otherwise, of the Company which involve a
payment by the Company of more than $5,000 on an annual basis except as stated
on Schedule 2.13(f) to this Agreement; or

 

(g)           Any oral contract or agreement described in
Schedule 2.13 (g) to this Agreement.

 

With
respect to the agency contracts between the Company and the insurance companies
with which the Company does business (the “Carriers”), all such contracts which
allow the Company to sell and market its insurance products are valid and
binding in accordance with their terms and there has been no indication that
any such contract are subject to revocation, limitation, rescission or
termination.  Even if such contracts are
subject to revocation, limitation, rescission or termination as a result of the
change in control which will occur upon consummation of the transactions herein
contemplated, such contracts will continue to be in full force and effect from
and after the Effective Time according to their respective terms.  With respect to all contracts or agreements
to which the Company is a party; (i) the contract or agreement is legal, valid,
binding, enforceable and in full force and effect; (ii) the contract or
agreement will continue to be legal, valid, binding, enforceable and in full
force and effect on identical terms following the consummation of the
transactions contemplated hereby; (iii) no party is in breach or default, and
no event has occurred which with notice or lapse of time would constitute a
breach or default, or permit termination, modification or acceleration, under
the contract or agreement; and (iv) no party had repudiated any provision of
the contract or agreement.

 

2.14         COMPLIANCE WITH ERISA.  The Company does not have any employee
benefit plans (as defined in Sections 3(3) or 3(37) of the Employment
Retirement Income Security Act of 1974 (“ERISA”)) or any other plans with
respect to which any governmental filings are required (the “Plans”), except
that the Company has been a participating employer in such an employer in such
an employee benefit plan through its parent company, Team Financial, Inc. and
its Employee Stock Ownership Plan and 401k Plan, and copies of all such Plans
are included in Schedule 2.13(b) to this Agreement.  The Company is not a plan sponsor or plan
administrator under ERISA.  To the Seller’s
knowledge, all required contributions to the Plans through the date hereof and
as of the Effective Time have or will have been made.  To the Seller’s knowledge, the Company as
well as the Plans, have no material current or threatened liability of any kind
to any person, including but not limited to any government agency, as of the
date hereof, other than for the payment of benefits in the ordinary course.  To the Seller’s knowledge, the Company has no
unfunded liabilities to any defined benefit plan.

 

2.15         INSURANCE.  
The Company has maintained such insurance policies (including policies
providing property, casualty, liability and workers’ compensation coverage and
bond and surety arrangements) to which the Company has been a party, a named
insured, or otherwise the beneficiary for the past five (5) years by insurance
in scope and amount which is customary and reasonable for the business in which
it has engaged for the conduct of its business and the protection of the
Company’s assets.  With respect to each
current insurance policy: (A) the

 

 

policy
is legal, valid, binding, enforceable and in full force and effect; (B) the
policy will continue to be legal, valid, binding, enforceable and in full force
and effect on identical terms following the consummation of the transactions
contemplated hereby; (C) neither the Company nor any other party to the policy
is in breach or default (including with respect to the payment of premiums or
the giving of notices), and no event has occurred which, with notice or the
lapse of time, would constitute such a breach or default, or permit
termination, modification or acceleration, under the policy; and (D) no party
to the policy has repudiated any provision thereof.  The Company has no reason to believe that any
such insurance policy will not be renewed upon the expiration thereof at
premiums substantially equivalent to those currently being paid, except for
changes in such premium applicable to insureds similarly situated.   There are no self-insurance arrangements
affecting the Company.

 

2.16         INTERNAL CONTROLS AND RECORDS.  The Company maintains books of account which
accurately and validly reflect, in all material respects, all assets,
liabilities and other business transactions and maintains accounting controls
sufficient to ensure that all such transactions are (a) in all material
respects, executed in accordance with its management’s general or specific
authorization, and (b) recorded in conformity with generally accepted
accounting principles.

 

2.17         ENVIRONMENTAL LAWS.  The following is true:

 

(a)           The operations of the Company and conduct of
business by the Company comply in all material respects with all applicable
past and present federal, state and local environmental statutes and
regulations and neither the condition of any property owned by the Company nor
the operation of the business of the Company violates in any material respects
any applicable federal, state or local environmental statute or regulation.

 

(b)           None of the operations of the Company is
subject to any judicial or administrative proceeding alleging the violation of
any federal, state or local environmental health or safety statute or
regulation nor is it the subject of any claim alleging damages to health or
property pursuant to which the Company may be liable.

 

(c)           None of the operations of nor any of the
properties occupied by the Company is the subject of any federal, state or
local investigation in evaluating whether any remedial action is needed to
respond to a release or threatened release of any hazardous waste or substance
from whatever source.

 

(d)           No condition or event has occurred which,
with notice or the passage of time or both would constitute a violation of any
federal, state or local environmental law and at no time has the Company stored
or used any pollutants, contaminants or hazardous or toxic waste, substances or
materials on or at any location occupied by the Company.

 

 

(e)           The Company has never been notified by either
a federal, state or local governmental authority, or any private party, that
the Company is a potentially responsible party for remedial costs spent
addressing the release, or threat of a release, of a hazardous substance and to
the environmental pursuant to the Comprehensive Environmental Response,
Compensation or Liability Act, 42 U.S.C. 9601, et seq. or any corresponding
state law.

 

2.18         BROKER/ADVISOR’S/ATTORNEY’S FEES.  The Company has no liability or obligation to
pay any broker or finder’s fees or commissions with respect to the transactions
contemplated by this Agreement.  Seller
will separately pay a fee to Mystic Capital Corporation, its agent, with
respect to services provided to Seller with respect to this transaction.

 

2.19         LABOR MATTERS

 

(a)           The Company is in compliance with all
applicable laws respecting employment and employment practices, terms and
conditions of employment and wages and hours and is not engaged in any unfair
labor practice.

 

(b)           There is no unfair labor practice complaint
against the Company pending before the National Labor Relations Board.

 

(c)           There is no labor strike, dispute, slowdown,
representation campaign or work stoppage actually pending or threatened against
or affecting the Company.

 

(d)           No grievance or arbitration proceeding
arising out of or under collective bargaining agreements is pending and no
claim therefor has been asserted against the Company.

 

(e)           The Company is not experiencing any material
work stoppage.

 

2.20         EMPLOYEES. 
Schedule 2.20 to this Agreement lists all officers, directors and
employees of the Company and their respective rates of compensation (including
the portions thereof attributable to bonuses or other extraordinary
compensation).  All amounts due or
accrued due for all salary, wages, bonuses, commissions, vacation with pay or
other employee benefits are reflected in the books and records of the Company
and have been paid to the respective employee. 
Except as stated in Schedule 2.20 to this Agreement, each employee of
the Company is an employee at-will and no employee has any agreement as to
length of notice or severance payment required to terminate his or her
employment.

 

 

2.21         INFORMATION SUPPLIED.  None of the information supplied or to be
supplied by the Company to its shareholders in connection with this Agreement,
contains or shall contain any untrue statement of a material fact or omits to
state any material fact required to be stated therein or necessary in order to
make the statements therein, in light of the circumstances under which they are
made, not misleading.

 

2.22         NOTES AND ACCOUNTS RECEIVABLE.  All notes and accounts receivable are
reflected properly on the Company Financial Statements and books and records,
and are valid receivables subject to no setoffs or counterclaims, are in
accordance with their terms at their recorded amounts.

 

2.23         BORROWINGS. 
The Company is not in default in any respect under, and is not otherwise
in violation or contravention of, any of the terms and provisions of any agreement
for the repayment of borrowed funds.  All
such borrowed funds are reflected properly on the Company Financial Statements
except for one potential credit line the specifics of which are disclosed in
Schedule 2.23 to the Agreement.

 

2.24         MINUTE BOOK. 
The minute book of the Company contains a complete record of all
meetings of the directors and shareholders of the Company since the date of its
incorporation.  Such minute book has been
made available for inspection by Buyer before the Closing.  All actions taken by the Company requiring
action by the board of directors or shareholders of the Company have been duly
authorized or ratified as necessary as are evidenced in the minute books of the
Company as so made available for such inspection.  The minute book (containing the records of
meetings of the stockholders, the board of directors, and any committees of the
board of directors), the stock certificate books, and the stock record books of
the Company are true, correct and complete.

 

2.25         PROFESSIONAL LIABILITY POLICY.  The Company currently maintains in full force
and effect a professional liability and errors and omissions policy, which is
adequate in amount and terms to reasonably protect the Company, its officers
and directors against all claims incurred prior to the Closing Date.  Such policy shall be in place at
closing.  The renewal date for such
policy is After February 2005. The Company has complied with all requirements
of its errors and omissions insurance carrier with respect to documentation of
all instances that might give arise to errors and omissions claims.

 

2.26         UNEARNED PREMIUMS AND POLICY
CANCELLATIONS.  Unearned premiums and
policy cancellations are properly reflected in the Closing Balance Sheet as of
the Effective Time.

 

2.27         POWERS OF ATTORNEY.  There are not outstanding powers of attorney
executed on behalf of the Company except as may be necessary for the operation
of the Company in the Ordinary Course of Business and which do not grant to the
holder thereof any power or authority to incur indebtedness on the part of the
Company.

 

 

2.28         GUARANTIES. 
There are no guaranties nor is the Company liable for any liability or
obligation of any other person or entity.

 

2.29         FULL DISCLOSURE.  No statement contained in any document,
certificate, or other writing furnished or to be furnished by or at the
direction of the Company to Buyer in, or pursuant to the provisions of, this
Agreement contains or shall contain any untrue statement of a material fact or
omits or shall omit to state any material fact necessary, in light of the
circumstances under which it was made, in order to make the statements herein
or therein not misleading.

 

2.30         NO MATERIAL CHANGE.  Except as otherwise stated on Schedule 2.30
to this Agreement, the Company has conducted its business only in the Ordinary
Course of Business since January 1, 2004 and there has not been any:

 

(a)           Change in the Company’s authorized or issued
capital stock; grant of any stock option or right to purchase shares of capital
stock of the Company; issuance of any security convertible into such capital
stock; grant of any registration rights; purchase, redemption, retirement, or
other acquisition by the Company of any shares of such capital stock; or
declaration or payment of any dividend or other distribution or payment in
respect of shares of capital stock;

 

(b)           Amendment to the Organizational Documents of
the Company;

 

(c)           Payment or increase by the Company of any
bonuses, salaries, or other compensation to any stockholder, director, officer,
or (except in the Ordinary Course of Business) employee or entry into any
employment, severance, or similar Contract with any director, officer, or
employee;

 

(d)           Adoption of, or increase in the payments to
or benefits under, any profit sharing, bonus, deferred compensation, savings,
insurance, pension, retirement, or other employee benefit plan for or with any
employees of the Company;

 

(e)           Damage to or destruction or loss of any asset
or property of the Company, whether or not covered by insurance, materially and
adversely affecting the properties, assets, business, financial condition, or
prospects of the Company, taken as a whole;

 

(f)            Entry into, termination of, or receipt of
notice of termination of (i) any license, distributorship, dealer, sales
representative, joint venture, credit, or similar agreement, or (ii) any
Contract or transaction involving a total remaining commitment by or to the
Company of at least $5,000;

 

 

(g)           Sale, lease, or other disposition of any
asset or property of the Company or mortgage, pledge, or imposition of any lien
or other encumbrance on any material asset or property of the Company;

 

(h)           Cancellation or waiver of any claims or
rights with a value to the Company in excess of $5,000;

 

(i)            Material change in the accounting methods
used by the Company; or

 

(j)            Agreement, whether oral or written, by the
Company to do any of the foregoing.

 

2.31         FINANCIAL AND BUSINESS MATTERS

 

At
the Closing Date:

 

(a)           The premium trust account of the Company
shall be in balance

 

(b)           The rate of Carrier commissions, and the rate
of Carrier contingent commissions, then in effect for payment to the Company
shall be the same as the rates that generated the revenues of the Company
reflected on the Closing Balance Sheet, and the Company shall not, since
January 1, 2004 until January 10, 2005, have experienced, and no Carrier has
given formal notice to the Company that the Company will experience, any
reduction in the rate of commissions or in the rate of contingent commissions
paid or to be paid to the Company by any Carrier after the date of the Closing
Balance Sheet.  Schedule 2.31(b) adds
additional explanation and explanation of specifics with respect to commission
rates, contingency agreements and expected net changes in business trends.

 

(c)           The Closing Balance Sheet is true and correct
and presents fairly in all material respects the financial position of the
Company at the Effective Time, and at the date of this Agreement except for
changes that have occurred since the Effective Time in the Ordinary Course of
Business, none of which have been materially adverse to the Company

 

(d)           The payment of $925,000 and accrued interest
due to the persons who sold the Company to Sellers in respect of revenues for
the year ending November 30, 2004, and reported in the most recent Team
Financial current report on form 8-K, shall have been paid or shall be paid by
Seller when due, and the Company shall not be obligated to pay all or any
portion of that payment after the Effective Time

 

 

(e)           Schedule 2.31 to the Agreement is a true,
correct and complete listing of the fixed assets of the Company at October 31,
2004, having an original cost of $974,543, together with a listing of all
additions to and deletions from such listing that have occurred since October
31, 2004, all of which additions and deletions have occurred only in the
Ordinary Course of Business, and none of which additions and deletions have
been material individually or in the aggregate

 

(f)            All earned compensation and bonuses payable
by the Company shall have been properly accrued at December 31, 2004 in the
Closing Balance Sheet.

 

(g)           Revenues of the Company in respect of
calendar year ending December 31, 2004 did not include revenues in excess of
$200,000 in the aggregate from customers lost during 2004, or that the Company
knows will be lost after the Closing Date, net of revenues in respect of
customers gained during 2004.  With
respect to this subsection (g) see Schedule 2.3 (b).

 

(h)           The Company shall have commission revenues in
excess of $4,000,000 for the year ending December 31, 2004.

 

(i)            Examination of the bank statements of the
Company will confirm the validity of all information reflected in the Closing
Financial Statements, both with respect to revenues and expenses.

 

3              REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer
represents and warrants to Sellers as follows:

 

3.1           ORGANIZATION AND AUTHORITY.  Buyer is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of
Oklahoma.  Buyer has all requisite
corporate power to carry on its business as it is now being conducted and is
qualified to do business in every jurisdiction in which the character and
location of the assets owned by it or the nature of the business transacted by
it may require qualification.  Buyer has
all requisite corporate power and authority to enter into this Agreement, and
to consummate the transactions contemplated hereby.  The execution, delivery and performance of
this Agreement, and the consummation of the transactions contemplated hereby,
have been duly authorized by all necessary corporate action on the part of the
Buyer.  Assuming due execution and
delivery by Sellers, this Agreement constitutes a valid and binding obligation
of Buyer, enforceable in accordance with its terms, subject to applicable
conservatorship, receivership, bankruptcy, insolvency and similar laws
affecting creditors’ rights and remedies generally, and subject, as to
enforceability, to general principles of equity (including without limitation
specific performance), whether applied in a court of law or a court of equity.

 

 

3.2           NON-CONTRAVENTION.  Neither the execution and the delivery of
this Agreement, nor the consummation of the transaction contemplated hereby,
will (i) violate any statute, regulation, rule, injunction, judgment, order,
decree, ruling, or other restriction of any government, governmental agency, or
court to which Buyer is subject or any provision of Buyer’s Organizational
Documents or (ii) conflict with, result in a breach of, constitute a default
under, result in the acceleration of, create in any party the right to
accelerate, terminate, modify, or cancel, or require any notice under any
agreement, contract, lease, license, instrument, or other arrangement to which
Buyer is a party.

 

3.3           DIRECTORS and OFFICERS LIABILITY
INSURANCE.  From and after the closing of
this Agreement, the Company will provide Directors and Officers tail liability
coverage for the Directors and Officers in place at the time of closing in at
least the amount of such coverage existing at closing.  Such tail coverage shall be maintained for a
period of five years.  During such five
year period the Company, its successors and assigns shall provide notice to the
covered Directors and Officers of such coverage and shall allow such Directors
and Officers the right to reasonably inspect the records of the Company which
would document the existence of such coverage. 
The requirement to provide such tail coverage shall survive the closing
of this Agreement for a period of five years.

 

3.4           NON AFFILIATION.  Buyer is not acting on behalf of any
undisclosed third party or entity who would be found to be an officer, director
or affiliate of TIG, TB or Team Financial, Inc. as the term affiliate has been
defined by the Securities and Exchange Commission.

 

4.             COVENANTS OF SELLER PRIOR TO CLOSING DATE

 

4.1           OPERATION OF THE BUSINESS OF THE COMPANY

 

If
the Closing does not occur on the date of this Agreement, between the date of
this Agreement and the Closing Date, Seller will, and will cause the Company
to:

 

(a)           Conduct the business of the Company only in
the Ordinary Course of Business;

 

(b)           Use the Best Efforts of the Company to
preserve intact the current business organization of the Company, keep
available the services of the current officers, employees, and agents of the
Company, and maintain the relations and good will with suppliers, customers,
landlords, creditors, employees, agents, and others having business
relationships with the Company;

 

(c)           Confer with Buyer concerning operational
matters of a material nature; and

 

 

(d)           Otherwise report periodically to Buyer
concerning the status of the business, operations, and finances of the Company.

 

4.2           NEGATIVE COVENANT

 

Except
as otherwise expressly permitted by this Agreement, if the Closing does not
occur on the date of this Agreement, between the date of this Agreement and the
Closing Date, Seller will not, and will cause the Company not to, without the
prior consent of Buyer, take any affirmative action, or fail to take any
reasonable action within their or its control, as a result of which any of the
changes or events listed in Section 2.30 is likely to occur.

 

4.3           NOTIFICATION

 

If
the Closing does not occur on the date of this Agreement, between the date of
this Agreement and the Closing Date, Seller will promptly notify Buyer in
writing if Seller or the Company becomes aware of any fact or condition that
causes or constitutes a Breach of any of Seller’s representations and
warranties as of the date of this Agreement, or if Seller or the Company become
aware of the occurrence after the date of this Agreement of any fact or
condition that would (except as expressly contemplated by this Agreement) cause
or constitute a Breach of any such representation or warranty had such representation
or warranty been made as of the time of occurrence or discovery of such fact or
condition.  Should any such fact or
condition require any change in the Disclosure Schedule if the Disclosure
Schedule were dated the date of the occurrence or discovery of any such fact or
condition, Seller will promptly deliver to Buyer a supplement to the Disclosure
Schedule specifying such change.  During
the same period, Seller will promptly notify Buyer of the occurrence of any
Breach of any covenant of Seller in this Section 4 or of the occurrence of any
event that may make the satisfaction of the conditions in Section 6 impossible
or unlikely.

 

4.4           PAYMENT OR INDEBTEDNESS BY RELATED PERSONS

 

Except
as expressly provided in this Agreement, Sellers will cause all indebtedness,
if any, owed to the Company by Seller or any Related Person of Seller to be
paid in full prior to Closing.

 

4.5           NO NEGOTIATION

 

Until
such time, if any, as this Agreement is terminated pursuant to Section 8,
Seller shall not, and shall cause the Company and each of their Representatives
not to, directly or indirectly solicit, initiate, or encourage any inquiries or
proposals from, discuss or negotiate with, provide any non-public information
to, or consider the merits of any unsolicited inquiries or proposals from, any
Person (other than Buyer) relating to any transaction involving the sale of the
business or assets (other than in the Ordinary Course of Business) of the
Company, or

 

 

any
of the capital stock of the Company, or any merger, consolidation, business
combination, or similar transaction involving the Company.

 

4.6           BEST EFFORTS

 

Between
the date of this Agreement and the Closing Date, Seller will use its Best
Efforts to cause the conditions in Sections 6 and 7 to be satisfied.

 

5.             COVENANTS OF BUYER PRIOR TO CLOSING DATE

 

If
the Closing does not occur on the date of this Agreement, between the date of
this Agreement and the Closing Date Buyer will use its Best Efforts to cause
the conditions in Sections 6 and 7 to be satisfied.

 

6.             CONDITIONS PRECEDENT TO BUYER’S OBLIGATION TO
CLOSE

 

If
the Closing does not occur on the date of this Agreement, Buyer’s obligation to
purchase the TIG Stock and to take the other actions required to be taken by
Buyer at the Closing is subject to the satisfaction, at or prior to the
Closing, of each of the following conditions (any of which may be waived by
Buyer, in whole or in part):

 

6.1           ACCURACY OF REPRESENTATIONS

 

All
of Seller’ representations and warranties in this Agreement (considered
collectively), and each of these representations and warranties (considered
individually), must have been accurate in all material respects as of the date
of this Agreement, and must be accurate in all material respects as of the
Closing Date as if made on the Closing Date, without giving effect to any
supplement to the Disclosure Schedule.

 

6.2           SELLER’ PERFORMANCE

 

(a)           All of the covenants and obligations that
Seller is required to perform or to comply with pursuant to this Agreement at
or to the Closing (considered collectively), and each of these covenants and
obligations (considered individually), must have been duly performed and
complied with in all material respects.

 

 

(b)           Each document required to be delivered
pursuant to Section 1.4 must have been delivered, and each of the other
covenants and obligations in Sections 4.4 and 4.8 must have been performed and
complied with in all respects.

 

6.3           NO PROCEEDINGS

 

Since
the date of this Agreement, there must not have been commenced or Threatened
against Buyer, or against any Person affiliated with Buyer, any Proceeding (a)
involving any challenge to, or seeking damages or other relief in connection
with, any of the Contemplated Transactions, or (b) that may have the effect of
preventing, delaying, making illegal, or otherwise interfering with any of the
Contemplated Transactions.

 

6.4           NO CLAIM REGARDING STOCK OWNERSHIP OR SALE
PROCEEDS

 

There
must not have been made or Threatened by any Person any claim asserting that
such Person (a) is the holder or the beneficial owner of, or has the right to
acquire or to obtain beneficial ownership of, any stock of, or any other
voting, equity, or ownership interest in, any of the Company, or (b) is
entitled to all or any portion of the Purchase Price payable for the TIG Stock.

 

6.5           NO PROHIBITION

 

Neither
the consummation nor the performance of any of the Contemplated Transactions
will, directly or indirectly (with or without notice or lapse of time),
materially contravene, or conflict with, or result in a material violation of, or
cause Buyer or any Person affiliated with Buyer to suffer any material adverse
consequence under, (a) any applicable Legal Requirement or Order, or (b) any
Legal Requirement or Order that has been published, introduced, or otherwise
formally proposed by or before any Governmental Body.

 

6.6           ADDITIONAL DOCUMENTS

 

Seller
must have delivered to Buyer such documents as Buyer may reasonably request for
the purpose of (i) evidencing the accuracy of any of Seller’ representations
and warranties, (ii) evidencing the performance by Seller of, or the compliance
by Seller with, any covenant or obligation required to be preformed or complied
with by Seller, (iii) evidencing the satisfaction of any condition referred to
in this Section 6, or (iv) otherwise facilitating the consummation or
performance of any of the Contemplated Transactions.

 

 

7.             CONDITIONS PRECEDENT TO SELLER’ OBLIGATION TO
CLOSE

 

If
the Closing does not occur on the date of this Agreement, Seller’ obligation to
sell the TIG Stock and to take the other actions required to be taken by Seller
at the Closing is subject to the satisfaction, at or prior to the Closing, of
each of the following conditions (any of which may be waived by Seller, in
whole or in part):

 

7.1           ACCURACY OF REPRESENTATIONS

 

All
of Buyer’s representations and warranties in this Agreement (considered
collectively), and each of these representations and warranties (considered
individually), must have been accurate in all material respects as of the date
of this Agreement and must be accurate in all material respects as of the
Closing Date as if made on the Closing Date.

 

7.2           BUYER’S PERFORMANCE

 

(a)           All of the covenants and obligations that
Buyer is required to perform or to comply with pursuant to this Agreement at or
prior to the Closing (considered collectively), and each of these covenants and
obligations (considered individually), must have been performed and complied
with in all material respects.

 

(b)           Buyer must have delivered each of the
documents required to be delivered by Buyer pursuant to Section 1.4 and must
have made the cash payment required to be made by Buyer pursuant Sections
1.4(b)(i).

 

7.3           ADDITONAL DOCUMENTS

 

Buyer
must have delivered to Seller such documents as Seller may reasonably request
for the purpose of (i) evidencing the accuracy of any representations or
warranty of Buyer, (ii) evidencing the performance by Buyer of, or the
compliance by Buyer with, any covenant or obligation required to be performed
or complied with by Buyer, (iii) evidencing the satisfaction of any
satisfaction of any condition referred to in this Section 7, or (iv) otherwise
facilitating the consummation of any of the Contemplated Transactions

 

 

7.4           NO INJUNCTION

 

There
must not be in effect any Legal Requirement or any injunction or other Order
that (a) prohibits the sale of the TIG Stock by Seller to Buyer, and (b) has
been adopted or issued, or has otherwise become effective, since the date of
this Agreement.

 

8.             TERMINATION

 

8.1           TERMINATION EVENTS

 

If
the Closing does not occur on the date of this Agreement, this Agreement may,
by notice given prior to or at the Closing, be terminated:

 

(a)           By either Buyer or Seller if a material
Breach of any provision of this Agreement has been committed by the other party
and such Breach has not been waived;

 

(b)           (i) by Buyer if any of the conditions in
Section 6 has not been satisfied as of the Closing Date or if satisfaction of
such condition is or becomes impossible (other than through the failure of
Buyer to comply with its obligations under this Agreement) and Buyer has not
waived such condition on or before the Closing Date; or (ii) by Seller, if any
of the conditions in Section 7 has not been satisfied as of the Closing Date or
if satisfaction of such a condition is or becomes impossible (other than
through the failure of Seller to comply with their obligations under this
Agreement) and Seller have not waived such condition on or before the Closing
Date;

 

(c)           by mutual consent of Buyer and Seller; or

 

(d)           by either Buyer or Seller if the Closing has
not occurred due to the fault of the other party (other than through the
failure of any party seeking to terminate this Agreement to comply fully with
its obligations under this Agreement) on or before February 28, 2005, or such
later date as the parties may agree upon.

 

8.2           EFFECT OF TERMINATION

 

Each
party’s right of termination under Section 8.1 is in addition to any other
rights it may have under this Agreement or otherwise, and the exercise of a
right of termination will not be an election of remedies.  If this Agreement is terminated pursuant to
Section 8.1, all further obligations of the parties under this Agreement will

 

 

terminate,
except that the obligations in Sections 10.1 and 10.3 will survive;
provided,  however, that if this
Agreement is terminated by a party because of the Breach of the Agreement by
the other party or because one or more of the conditions to the terminating
party’s obligations under this Agreement is not satisfied as a result of the
other party’s failure to comply with its obligations under this Agreement, the
terminating party’s right to pursue all legal remedies as limited by the
indemnification provisions of Section 9 of this Agreement, and, as limited,
will survive such termination unimpaired; and, further provided, that if this
Agreement is terminated by Buyer pursuant to Section 8.1 (a), (b) or (d), the
Down Payment shall be immediately refunded by Sellers to Buyer.  If this Agreement is terminated by Buyer for
any reason other than the termination permitted in Section 8.1 (a), (b) or (d),
or if Buyer fails to close as provided in this Agreement, the Down Payment
shall be sole and separate property of Seller.

 

9.             INDEMNIFICATION; REMEDIES

 

9.1           SURVIVAL; RIGHT TO INDDEMNIFICATION NOT
AFFECTED BY KNOWLEDGE

 

All
representations, warranties, covenants, and obligations in this Agreement, the
Disclosure Schedule, the supplements to the Disclosure Schedule, the
certificate delivered pursuant to Section 1.4(a)(iv), and any other certificate
or document delivered pursuant to this Agreement will survive the Closing.  The right to indemnification, payment of
Damages or other remedy based on such representations, warranties, covenants,
and obligations will not be affected by any investigation conducted with
respect to, or any Knowledge acquired (or capable of being acquired) at any
time, whether before or after the execution and delivery of this Agreement or
the Closing Date, with respect to the accuracy or inaccuracy of or compliance
with, any such representation or warranty, covenant, or obligation.  The waiver of any condition based on the
accuracy of any representation, warranty, or on the performance of or
compliance with any covenant or obligation, will not affect the right to
indemnification, payment of Damages, or other remedy based on such
representations, warranties, covenants, and obligations.

 

9.2           INDEMNIFCATION AND PAYMENT OF DAMAGES BY
SELLER

 

Seller
will indemnify and hold harmless Buyer, the Company, and their respective
Representatives, stockholders, controlling persons, and affiliates
(collectively, the “Indemnified Persons”) for, and will pay to the Indemnified
Persons the amount of, any loss, liability, claim, damage (including incidental
and consequential damages), expense (including costs of investigation and
defense and reasonable attorneys’ fees) or diminution of value, whether or not
involving a third-party claim (collectively, “Damages”), arising, directly or
indirectly, from or in connection with:

 

(a)           Any Breach of any representation or warranty
made by Seller in this Agreement (without giving effect to any supplement to
the Disclosure Schedule), the Disclosure Schedule, the supplements to the
Disclosure Schedule, or any other certificate or document delivered by Seller
pursuant to this Agreement;

 

 

(b)           Any Breach of any representation or warranty
made by Seller in this Agreement as if such representation or warranty were
made on and as of the Closing Date without giving effect to any supplement to
the Disclosure Schedule, other than any such Breach that is disclosed in a
supplement to the Disclosure Schedule and is expressly identified in the
certificate delivered pursuant to Section 1.4(a)(iv) as having caused the
condition specified in Section 6.1 not to be satisfied;

 

(c)           Any Breach by Seller of any covenant or
obligation of Seller in this Agreement;

 

(d)           Any claim by any Person for brokerage or
finder’s fees or commissions or similar payments based upon any agreement or
understanding alleged to have been made by any such Person with Seller or the
Company (or any Person acting on their behalf) in connection with any of the
Contemplated Transactions.

 

The
remedies provided in this Section 9.2 will not be exclusive of or limit any
other remedies that may be available to Buyer or the other Indemnified Persons
but all remedies shall, however, be subject to the provisions of Sections 9.4,
9.5, 9.6, 9.7 and 9.8 hereof.

 

9.3           INDEMNIFICATION AND PAYMENT OF DAMAGES BY
BUYER

 

Buyer
will indemnify and hold harmless Seller and Company, and will pay to Seller and
Company the amount of any loss, liability, claim, damage (including incidental
and consequential damages), expense (including costs of investigation and
defense and reasonable attorney’s fees) or diminution of value, whether or not
involving a third-party claim arising, directly or indirectly, from or in
connection with (a) any Breach of any representation or warranty made by Buyer
in this Agreement or in any certificate delivered by Buyer pursuant to this
Agreement, (b) any Breach by Buyer of any covenant or obligation of Buyer in
this Agreement, or (c) any claim by any Person for brokerage or finder’s fees
or commissions or similar payments based upon any agreement or understanding
alleged to have been made by such Person with Buyer (or any Person acting on
its behalf) in connection with any of the Contemplated Transactions.

 

The
remedies provided in this Section 9.3 will not be exclusive of or limit any
other remedies that may be available to Seller or Company but all remedies
shall, however, be subject to the provisions of Sections 9.4, 9.5, 9.6, 9.7 and
9.8 hereof.

 

 

9.4           TIME LIMITATIONS

 

If
the Closing occurs, Seller will have no liability (for indemnification or
otherwise) with respect to any representation or warranty, or covenant or
obligation to be performed and complied with prior to the Closing Date, other
than those in Sections 2.3, 2.12, 2.14, 2.17, 2.19 and 2.20, unless, on or
before the eighteen month anniversary of this Agreement, Buyer notifies Sellers
of a claim specifying the factual basis of that claim in reasonable detail to
the extent then known by Buyer; a claim with respect to Section 2.3, 2.12,
2.14, 2.17, 2.19 or 2.20, may be made at any time.  If the Closing occurs, Buyer will have no
liability (for indemnification or otherwise) with respect to any representation
or warranty, or covenant or obligation to be performed and complied with prior
to the Closing Date, unless on or before the eighteen month second anniversary
of this Agreement Seller notifies Buyer of a claim specifying the factual basis
of that claim in reasonable detail to the extent then known by Seller.

 

9.5           LIMITATIONS ON AMOUNT—SELLER

 

Seller
will have no liability (for indemnification or otherwise) with respect to the
matters described in Section 9.2 until the total of all Damages with respect to
such matters exceeds $200,000, and then only for the amount by which such
Damages exceed $200,000.  However, this
Section 9.5 will not apply to any Breach of any of Seller’s representations and
warranties of which Seller had Knowledge at any time prior to the date on which
such representation and warranty is made or any intentional Breach by Seller of
any covenant or obligation, and Seller will be liable for all Damages with
respect to such Breaches.

 

9.6           LIMITATIONS ON AMOUNT—BUYER

 

Buyer
will have not liability (for indemnification or otherwise) with respect to the
matters described in Section 9.3 until the total of all Damages with respect to
such matters exceeds $25,000, and then only for the amount by which such
Damages exceed $25,000.  However, this
Section 9.6 will not apply to any Breach of any of Buyer’s representations and
warranties of which Buyer had Knowledge at any time prior to the date on which
such representation and warranty is made or any intentional Breach by Buyer of
any covenant or obligation, and Buyer will be liable for all Damages with
respect to such Breaches.

 

9.7           PROCEDURE FOR INDEMNIFICATION—THIRD PARTY
CLAIMS

 

(a)           Promptly after receipt by an indemnified
party under Section 9.2, 9.4, or (to the extent provided in the last sentence
of Section 9.3) Section 9.3 of notice of the commencement of any Proceeding
against it, such indemnified party will, if a claim is to be made against an
indemnifying party under such Section, give notice to the indemnifying party of
the commencement of such claim, but the failure to notify the indemnifying
party will not relieve the indemnifying party of any liability that it may have
to any indemnified party, except to the extent that the indemnifying party
demonstrates that the defense of such action is prejudiced by the indemnifying
party’s failure to give such notice.

 

 

(b)           If any Proceeding referred to in Section
9.7(a) is brought against an indemnified party and it gives notice to the
indemnifying party of the commencement of such Proceeding, the indemnifying
party will, unless the claim involves Taxes, be entitled to participate in such
Proceeding and, to the extent that it wishes (unless (i) the indemnifying party
is also a party to such Proceeding and the indemnified party determines in good
faith that joint representation would be inappropriate, or (ii) the
indemnifying party fails to provide reasonable assurance to the indemnified
party of its financial capacity to defend such Proceeding and provide
indemnification with respect to such Proceeding), to assume the defense of such
Proceeding with counsel satisfactory to the indemnified party and, after notice
from the indemnifying party to the indemnified party of its election to assume
the defense of such Proceeding, the indemnifying party will not, as long as it
diligently conducts such defense, be liable to the indemnified party under this
Section 9 for any fees of other counsel or any other expenses with respect to
the defense of such Proceeding, in each case subsequently incurred by the
indemnified party in connection with the defense of such Proceeding, other than
reasonable costs of investigation.  If
the indemnifying party assumes the defense of a Proceeding, (i) it will be
conclusively established for purposes of this Agreement that the claims made in
that Proceeding are within the scope of and subject to indemnification; (ii) no
compromise or settlement of such claims may be effected by the indemnifying
party without the indemnified party’s consent unless (A) there is no finding or
admission of any violation of Legal Requirements or any violation of the rights
of any Person and no effect on any other claims that may be made against the
indemnified party, and (B) the sole relief provided is monetary damages that
are paid in full by the indemnifying party; and (iii) the indemnified party
will have no liability with respect to any compromise or settlement of such
claims effected without its consent.  If
notice is given to an indemnifying party of the commencement of any Proceeding
and the indemnifying party does not, within ten days after the indemnified
party’s notice is given, give notice to the indemnified party of its election
to assume the defense of such Proceeding, the indemnifying party will be bound
by an determination made in such Proceeding or any compromise or settlement
effected by the indemnified party.

 

(c)           Notwithstanding the foregoing, if an
indemnified party determines in good faith that there is a reasonable
probability that a Proceeding may adversely affect it or its affiliates other
than as a result of monetary damages for which it would be entitled to
indemnification under this Agreement, the indemnified party may, by notice to
the indemnifying party, assume the exclusive right to defend, compromise, or
settle such Proceeding, but the indemnifying party will not be bound by any
determination of a Proceeding so defended or any compromise or settlement
effected without its consent (which may not be unreasonably withheld).

 

9.8           PROCEDURE FOR INDEMNIFICATION—OTHER CLAIMS

 

A
claim for indemnification for any matter not involving a third-party claim may
be asserted by notice to the party from whom indemnification is sought.

 

 

10.           NON INTERFERENCE WITH THE BUSINESS OF BUYER

 

Seller
acknowledges that compliance with the covenants not to compete and other
provisions of this Agreement by Seller following consummation of the
Contemplated Transactions is an essential component of the value of the Company
to Buyer, and Seller has agreed to assist in the preservation of the integrity
of the Company and its value as a going concern free from any interference or
undue advantage derived by Seller as a result of Seller’s previous involvement
in the business of the Company and access to Company information, and the
purpose of this Section 10 is to provide for appropriate restrictions on the
conduct of Seller for the purpose of preserving the value for which Buyer
bargained and for which Buyer will pay the Purchase Price pursuant to this
Agreement, and to induce Buyer to consummate the acquisition of TIG Stock.

 

As
a material inducement to Buyer to execute, deliver and perform this Agreement,
and in consideration of the execution, delivery and performance of this
Agreement by Buyer, Seller has agreed to the restrictive covenants contained
herein, as follows:

 

10.1         CONFIDENTIALITY

 

Seller
agrees that, from and after the Effective Time:

 

(a)           With respect to information relating to the
Company or Buyer that is nonpublic, confidential, or proprietary in nature,
including:

 

(i)            Any and all trade secrets concerning such
business, data, know-how, customer lists, current and planned marketing and
sales methods and processes, current and anticipated customer requirements,
price lists, market studies, business plans, computer software and programs,
past, current and planned research and development, computer software and
database technologies, systems and structures, historical financial statements,
financial projections and budgets, historical and projected sales, capital
spending budgets and plans, the names and backgrounds of key personnel,
personnel training and techniques and materials; and

 

(ii)           Any and all other information, whether or not
documented in any manner, relating to such business that is a trade secret
within the meaning of applicable trade secret law (subsections (i) and (ii)
collectively, the “Confidential Information”), which is owned by the Company or
Buyer and regularly used in the operation of such business, but in connection
with which such owner takes precautions to prevent dissemination to any Person
other than certain shareholders, directors, officers and employees of such
owner.

 

Seller
shall not use or disclose any of the Confidential Information, directly or
indirectly, either during the “Non-Interference Term” defined below, or at any
time thereafter, in any way that may result in a detriment to the Company or
Buyer or their respective businesses. 
Seller further agrees to use Seller’s best efforts to ensure that all
files, records, documents, information, data and similar items relating to

 

 

such
business, whether prepared by Seller or otherwise coming into Seller’s
possession, shall remain the exclusive property of the Company or Buyer, as the
case may be, and all such items shall be promptly delivered to Buyer upon any
request for such delivery made by Buyer.

 

(b)           Notwithstanding anything herein to the
contrary, no obligation or liability shall accrue hereunder with respect to any
Confidential Information that (1) is or becomes publicly available other than
as a result of an act by Seller in violation of this Agreement, (2) is or
becomes available to Seller from a third party that is not bound by a
confidentiality agreement with the Buyer or the Company prohibiting such
disclosure, or (3) is, on the advice of counsel, required to be disclosed by
law or by legal process.  If Seller
should become legally compelled by deposition, subpoena or other court or
governmental action to disclose any of the Confidential Information, then Seller
shall give Buyer prompt notice to that effect and shall cooperate fully with
Buyer and the Company if either of them desires to seek to obtain a protective
order or other relief concerning such Confidential Information.

 

10.2         COMPETITION

 

During
the period commencing at the Effective Time and ending on the second
anniversary of the Effective Time (the “Non-Interference Term”), Seller shall
not, directly or indirectly, either as a partner or a joint venturer, or by or
through employees or other agents, or in any other capacity, within the Territory
(as defined in Section 10.6 below), (1) invest (other than investments in
publicly-owned companies which constitute not more than one percent (1%) of the
voting securities of any such company) or engage in any Competitive Business
(as defined below), or (2) accept employment with or render services to a
Competitive Business as a director, officer, agent, employee or consultant.

 

Notwithstanding
the foregoing provisions of this Section 10.2:

 

(a)           The foregoing provisions of this Section 10.2
shall not prevent or require the disposition of any ownership of or investment
in any entity engaged in a Competitive Business that is owned by Seller at the
date of this Agreement, and

 

(b)           The foregoing provisions of this Section 10.2
shall not prevent or prohibit Seller from acquiring ownership of or investment
in any entity engaged in a Competitive Business if such entity is wholly owned
by a national or state bank and if ownership or control of such national or
state bank is acquired by Seller after the Closing Date.

 

 

10.3         NON-INTERFERENCE WITH EMPLOYEE RELATIONSHIPS

 

During
the Non-Interference Term, Seller shall not, directly or indirectly, on Seller’s
own behalf or on behalf of any Person, recruit, hire, induce, solicit,
interfere with or otherwise direct away from Buyer or the Company or attempt
any of the foregoing or assist others to do the same (each a “Prohibited
Employee Solicitation”) any Person who at any time during the six month period
preceding such Prohibited Employee Solicitation was an employee or agent of
Buyer or the Company for the purpose of engaging such Person to perform
services for or on behalf of Seller or any other Person.

 

10.4         NON-INTERFERENCE WITH CUSTOMER RELATIONSHIPS

 

During
the Non-Interference Term, Seller shall not, except on behalf of Buyer or the
Company, for or on behalf of Seller or of any other Person, solicit, contact,
call upon or initiate communication with (each a “Solicitation”) any customer
or any actively sought prospective customer of the Company or Buyer, at the Closing
Date or at any time within six months preceding the Closing Date, with a view
toward providing products and/or services that are competitive or potentially
competitive with any products and services provided by Buyer or the Company at
the Effective Time.

 

10.5         ACKNOWLEDGEMENT

 

Seller
acknowledges and agrees that the periods of time and scope of the restrictions
stated in Sections 10.1, 10.2, 10.3 and 10.4 are reasonable and necessary for
the protection of Buyer and the Company in the operation of the business of the
Company acquired pursuant to this Agreement, and the agreement of Seller to
abide by those restrictions is an essential condition precedent to the
acquisition by Buyer pursuant to this Agreement of the TIG Stock and the
business of the Company as a going concern.

 

10.6         DEFINITIONS

 

For
purposes of this Section 10, the following terms shall have the following
meanings:

 

(a)           “Competitive Business” means any business
engaged in selling products or providing services within the Territory that are
substantially similar or identical to the products or services provided by the
Company or Buyer within the Territory.

 

(b)           “Territory” means the state of Oklahoma.  The state of Oklahoma embraces a portion, but
not all, of the geographic area in which the Company and Buyer will render
services and a portion, but not all of the geographic area in which Buyer and
the Company currently sell products and provide services.  The parties acknowledge that the definition
of Territory herein could have been expanded to include additional areas, but
that the Parties have restricted the definition of Territory in order to
protect only the

 

 

essential
geographic areas in which Buyer has purchased from Seller a legitimate economic
interest which could be adversely affected by Seller.

 

11.           GENERAL PROVISIONS

 

11.1         EXPENSES

 

Except
as otherwise expressly provided in this Agreement, each party to this Agreement
will bear its respective expenses incurred in connection with the preparation,
execution, and performance of this Agreement and the Contemplated Transactions,
including all fees and expenses of agents, representatives, counsel, and
accountants.  In the event of termination
of this Agreement, the obligation of each party to pay its own expenses will be
subject to any rights of such party arising from a breach of this Agreement by
another party.

 

11.2         PUBLIC ANNOUNCEMENTS AND COMMUNICATION

 

Subject
to Seller’s obligation to participate in the filing of a Form 8K statement with
the Securities and Exchange Commission, which Seller may make as required by
such regulations, any public announcement or similar publicity with respect to
this Agreement or the Contemplated Transactions will be issued, if at all, at
such time and in such manner as Seller and Buyer agree in writing.  Unless consented to by Buyer in advance or
required by Legal Requirements, prior to the Closing, Seller and Buyer shall,
and Seller shall cause the Company to, keep this Agreement strictly
confidential and may not make any disclosure of this Agreement to any
Person.  Seller and Buyer will consult
with each other concerning the means by which the Company’s employees,
customers, and suppliers and others having dealings with the Company will be
informed of the Contemplated Transactions, and Buyer will have the right to be
present for any such communication.  The
foregoing shall not prevent disclosure of the Contemplated Transactions by
Seller to officers and directors of Seller, and key employees, attorneys,
accountants, and other advisors (other than officers, directors, or employees
of the Company), and shall not prevent disclosure of the Contemplated
Transactions by Buyer to Buyer’s key employees, attorneys, accountants, mergers
& acquisitions advisors and prospective sources of financing, as required
for the purpose of furthering the Contemplated Transactions.

 

11.3         CONFIDENTIALITY

 

Between
the date of this Agreement and the Closing Date, Buyer and Seller will maintain
in confidence, and will cause the directors, officers, employees, agents, and
advisors of Buyer and the Company to maintain in confidence, and not use to the
detriment of another party or the Company any written, oral, or other
information obtained in confidence from another party in connection with this
Agreement or the Contemplated Transactions, unless (a) such information is
already known to such party or to others not bound by a duty of confidentiality
or such information becomes publicly available through no fault of such party,
(b) the use of such information is necessary or appropriate in making any
filing or obtaining any consent or approval required for the

 

 

consummation
of the Contemplated Transactions, or (c) the furnishing or use of such
information is required by legal proceedings.

 

The
parties agree that the existing confidentiality agreement in effect between the
parties shall continue in effect and shall survive the closing of this
Agreement.

 

If
the Contemplated Transactions are not consummated, each party will return or
destroy as much of such written information as the other party may reasonably
request.

 

11.4         NOTICES

 

All
notices, consents, waivers, and other communications under this Agreement must
be in writing and will be deemed to have been duly given when (a) delivered by
hand (with written confirmation of receipt), (b) sent by telecopier or email
(with written confirmation of receipt), provided that a copy is mailed by
registered mail, return receipt requested, or (c) when received by the
addressee, if sent by a nationally recognized overnight delivery service (receipt
requested), in each case to the appropriate addresses and telecopier numbers
set forth below (or to such other addresses and telecopier numbers as a party
may designate by notice to the other parties):

 

Sellers:  TeamBank, N.A.

 

Attention:  Robert J. Weatherbie, President

Facsimile
No.:  913-557-4233

 

Email
Address: 
_bob.weatherbie@teamfinancialinc.com

 

with
a copy to:  Carl W. Hartley and Sandra K.
Hartley

 

Facsimile
No.:  913-294-2540

 

Email
Address:  chartley@hnha-law.com and
shartley@hnha-law.com

 

Buyer:  International Insurance Brokers, Ltd.

 

 

Attention:              Matthew F. Coughlin, III

303
Reunion Center

9
E. 4th Street

Tulsa,
OK 74103-5199

 

Facsimile
No.:       (918) 592-4201

 

Email
Address: 
Matthew.F.Coughlin.III@iibltd.com

 

With
a copy to:  Brune & Neff

Attention:  Mr. Kenneth L. Brune, Esq.

 

Facsimile
No.:  (918) 599-8673

 

Email
Address:  kenbrune@bruneneff.com

 

11.5         JURISDICTION; SERVICE OF PROCESS

 

Any
action or proceeding seeking to enforce any provision of, or based on any right
arising out of, this Agreement may be brought against any of the parties in the
courts of the State of Oklahoma, County of Tulsa, or, if it has or can acquire
jurisdiction, in the United States District Court for the Northern District of
Oklahoma, and each of the parties consents to the jurisdiction of such courts
(and of the appropriate appellate courts) in any such action or proceeding and
waives any objection to venue laid therein. 
Process in any action or proceeding referred to in the preceding
sentence may be served on any party anywhere in the world.

 

11.6         FURTHER ASSURANCES

 

The
parties agree (a) to furnish upon request to each other such further
information, (b) to execute and deliver to each other such other documents, and
(c) to do such other acts and things, all as the other party may reasonably

 

 

request
for the purpose of carrying out the intent of this Agreement and the documents
referred to in this Agreement.

 

11.7         WAIVER

 

The
rights and remedies of the parties to this Agreement are cumulative and not
alternative.  Neither the failure nor any
delay by any party in exercising any right, power, or privilege under this
Agreement or the documents referred to in this Agreement will operate as a
waiver of such right, power, or privilege, and no single or partial exercise of
any such right, power or privilege will preclude any other or further exercise
of such right, power or privilege or the exercise of any other right, power, or
privilege.  To the maximum extent
permitted by applicable law, (a) no claim or right arising out of this
Agreement or the documents referred to in this Agreement can be discharge by
one party, in whole or in part, by a waiver or renunciation of the claim or
right unless in writing signed by the other party; (b) no waiver that may be
given by a party will be applicable except in the specific instance for which
it is given; and (c) no notice to or demand on one party will be deemed to be a
waiver of any obligation of such party or of the right of the party giving such
notice or demand to take further action without notice or demand as provided in
this Agreement or the documents referred to in this Agreement.

 

11.8         ENTIRE AGREEMENT AND MODIFICATION

 

This
Agreement supersedes all prior agreements between the parties with respect to
its subject matter (including the Letter of Intent between Buyer and Seller
dated December 21, 2004 but excluding the confidentiality agreement between the
Parties) and constitutes (along with the documents referred to in this
Agreement) a complete and exclusive statement of the terms of the Agreement
between the Parties with respect to its subject matter.  This Agreement may not be amended except by a
written agreement executed by the Party to be charged with the amendment.

 

11.9         DISCLOSURE SCHEDULE

 

(a)           The disclosures in the Disclosure Schedule,
and those in any Supplement thereto, if any, must relate only to the
representations and warranties in the Section of the Agreement to which they
expressly relate and not to any other representation of warranty of this
Agreement.

 

(b)           In the event of any inconsistency between the
statements in the body of this Agreement and those in the Disclosure Schedule
(other than an exception expressly set forth as such in the Disclosure Schedule
with respect to a specifically identified representation or warranty), the
statements in the body of this Agreement will control.

 

 

11.10       ASSIGNMENTS, SUCCESSORS, AND NO THIRD-PARTY
RIGHTS

 

Neither
party may assign any of its rights under this Agreement without the prior
consent of the other parties, which will not be unreasonably withheld, except
that Buyer may assign any of its rights under this Agreement to any Subsidiary
of Buyer.  Subject to the preceding
sentence, this Agreement will apply to, be binding in all respects upon, and
inure to the benefit of the successors and permitted assigns of the
parties.  Nothing expressed or referred
to in this Agreement will be construed to give any Person other than the
parties to this Agreement any legal or equitable right, remedy, or claim under
or with respect to this Agreement or any provision of this Agreement.  This Agreement and all of its provisions and
conditions are for the sole and exclusive benefit of the parties to this
Agreement and their successors and assigns.

 

11.11       SEVERABILITY

 

If
any provision of this Agreement is held invalid or unenforceable by any court
of competent jurisdiction, the other provisions of this Agreement will remain
in full force and effect.  Any provision
of this Agreement held invalid or unenforceable only in part or degree will
remain in full force and effect to the extent not held invalid or
unenforceable.

 

11.12       SECTION HEADINGS, CONSTRUCTION

 

The
headings of Sections in this Agreement are provided for convenience only and
will not affect its construction or interpretation.  All references to “Section” or “Sections”
refer to the corresponding Section or Sections of this Agreement.  All words used in this Agreement will be
construed to be of such gender or number as the circumstances require.  Unless otherwise expressly provided, the word
“including” does not limit the preceding words or terms.

 

11.13       TIME OF ESSENCE

 

With
regard to all dates and time periods set forth or referred to in this
Agreement, time is of the essence.

 

11.14       GOVERNING LAW

 

This
Agreement will be governed by the laws of the State of Oklahoma without regard
to conflicts of laws principles.

 

 

11.15       COUNTERPARTS

 

This
Agreement may be executed in one or more counterparts, each of which will be
deemed to be an original copy of this Agreement and all of which, when taken
together, will be deemed to constitute one and the same agreement.

 

IN
WITNESS WHEREOF, the parties have executed and delivered this Agreement as of
the date first written above.

 

 

	
   

  	
  TeamBank,
  N.A.

  
	
   

  	
   

  
	
  International
  Insurance Brokers, Ltd. LLC

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert J. Weatherbie

  	
   

  
	
   

  	
  Name:

  	
  Robert
  J. Weatherbie

  	
   

  
	
  By:

  	
  /s/
  Matthew F. Coughlin, III

  	
   

  	
  Title:
  President

  
	
   

  	
  Matthew
  F. Coughlin, III

  	
   

  
	
   

  	
  Managing
  Member

  	
   

  
							

 

ATTACHMENT A

 

DEFINITIONS

 

For
purposes of this Agreement, the following terms have the meanings specified or
referred to BELOW1:

 

“Adjustment
Amount”—as defined in
Section 1.5.

 

“Applicable
Contract”— any
Contract (a) under which the Company has or may acquire any rights, (b) under
which the Company has or may become subject to any obligation or liability, or
(c) by which the Company or any of the assets owned or used by it is or may
become bound.

 

“Best
Efforts”—the efforts
that a prudent Person desirous of achieving a result would use in similar
circumstances to ensure that such result is achieved as expeditiously as
possible; provided, however, that an obligation to use Best Efforts
under this Agreement does not require the Person subject to that obligation to
take actions that would result in a materially adverse change in the benefits
to such Person of this Agreement and the Contemplated Transactions.

 

 

“Breach”—a “Breach” of a representation, warranty,
covenant, obligation, or other provision of this Agreement or any instrument
delivered pursuant to this Agreement will be deemed to have occurred if there
is or has been (a) any inaccuracy in or breach of, or any failure to perform or
comply with, such representation, warranty, covenant, obligation, or other
provision, or (b) any claim (by any Person) or other occurrence or circumstance
that is or was inconsistent with such representation, warranty, covenant,
obligation, or other provision, and the term “Breach” means any such
inaccuracy, breach, failure, claim, occurrence, or circumstance.  Buyer’s remedies for Breach by Seller are
limited by the provisions of Sections 9.4 and 9.5 of this Agreement.

 

“Closing”— as defined in Section 1.3.

 

“Closing
Date”—the date and
time as of which the Closing actually takes place.

 

“Consent”—any approval, consent, ratification, waiver,
or other authorization (including any Governmental Authorization).

 

“Contemplated
Transactions”—all of
the transactions contemplated by this Agreement, including:

 

(a)           the sale of the TIG Stock by Sellers to
Buyer;

 

(b)           the execution, delivery, and performance of
the Inducement Agreements and the Sellers’ Release;

 

(c)           the performance by Buyer and Sellers of their
respective covenants and obligations under this Agreement; and

 

(d)           Buyer’s acquisition and ownership of the TIG
Stock and exercise of control over the Company.

 

“Contract”—any agreement, contract, obligation,
promise, or undertaking (whether written or oral and whether express or
implied) that is legally binding.

 

“Damages”—as defined in Section 9.2.

 

 

“Disclosure
Schedule”—the
Schedule, if any, marked by Buyer and Seller for identification by reference to
this Agreement, and delivered by Sellers to Buyer concurrently with the
execution and delivery of this Agreement.

 

“Encumbrance”—any charge; claim, community property
interest, condition, equitable interest, lien, option, pledge, security
interest, right of first refusal, or restriction of any kind, including any
restriction on use, voting, transfer, receipt of income, or exercise of any
other attribute of ownership.

 

“Environment”—soil, land surface or subsurface strata,
surface waters (including navigable waters, ocean waters, streams, ponds,
drainage basins, and wetlands), groundwaters, drinking water supply, stream
sediments, ambient air (including indoor air), plant and animal life, and any
other environmental medium or natural resource.

 

“ERISA”—the Employee Retirement Income Security Act
of 1974 or any successor law, and regulations and rules issued pursuant to that
Act or any successor law.

 

“GAAP”—generally accepted United States accounting
principles, applied on a basis consistent with the basis on which the Balance
Sheet and the other financial statements referred to in Section 3.4(b) were
prepared.

 

“Governmental
Authorization”—any
approval, consent, license, permit, waiver, or other authorization issued,
granted, given, or otherwise made available by or under the authority of any
Governmental Body or pursuant to any Legal Requirement.

 

“Governmental
Body”—any:

 

(a)           nation, state, county, city, town, village,
district, or other jurisdiction of any nature;

 

(b)           federal, state, local, municipal, foreign, or
other government;

 

(c)           governmental or quasi-governmental authority
of any nature (including any governmental agency, branch, department, official,
or entity and any court or other tribunal);

 

(d)           multi-national organization or body; or

 

 

(e)           body exercising, or entitled to exercise, any
administrative, executive, judicial, legislative, police, regulatory, or taxing
authority or power of any nature.

 

“Hazardous
Activity”—the
distribution, generation, handling, importing, management, manufacturing,
processing, production, refinement, Release, storage, transfer, transportation,
treatment, or use (including any withdrawal or other use of groundwater) of
Hazardous Materials in, on, or under, about, or from the Facilities or any part
thereof into the Environment, and any other act, business, operation, or thing
that increases the danger, or risk of danger, or poses an unreasonable risk of
harm to persons or property on or off the Facilities, or that may affect the
value of the Facilities or the Acquired Companies.

 

“Hazardous
Materials”—any waste
or other substance that is listed, defined, designated, or classified as, or
otherwise determined to be, hazardous, radioactive, or toxic or a pollutant or
a contaminant under or pursuant to any Environmental Law, including any
admixture or solution thereof, and specifically including petroleum and all
derivatives thereof or synthetic substitutes therefor and asbestos or
asbestos-containing materials.

 

“Inducement
Agreement”—as defined
in Section 1.4(a)(iii).

 

“IRC”—the Internal Revenue Code of 1986 or any
successor law, and regulations issued by the IRS pursuant to the Internal
Revenue Code or any successor law.

 

“IRS”—the United States Internal Revenue Service
or any successor agency, and, to the extent relevant, the United States
Department of the Treasury.

 

“Knowledge”—the parties to this Agreement have
negotiated the terms and provisions herein without Buyer, at Buyer’s choice,
conducting a formal due diligence examination of the Company.  Likewise, by agreement with Buyer, Seller has
not involved the officers and employees of the Company in the negotiation and
documentation of this Agreement.

 

Thus,
an individual will be deemed to have “Knowledge” of a particular fact or other
matter only if such individual is actually aware of such fact or other matter.

 

Seller
shall be deemed to be possessed of Knowledge of the Company only if Seller has
actual knowledge of matters imparted to Seller by the Company or if Seller has
received information or documentation of such matters from the Company.

 

 

“Legal
Requirement”—any
federal, state, local, municipal, foreign, international, multinational, or
other administrative order, constitution, law, ordinance, principle of common
law, regulation, statute, or treaty.

 

“Order”—any award, decision, injunction, judgment,
order, ruling, subpoena, or verdict entered, issued, made, or rendered by any
court, administrative agency, or other Governmental Body or by any arbitrator.

 

“Ordinary
Course of Business”—an
action taken by a Person will be deemed to have been taken in the “Ordinary
Course of Business” only if:

 

(a)           such action is consistent with the past
practices of such Person and is taken in the ordinary course of the normal
day-to-day operations of such Person;

 

(b)           such action is not required to be authorized
by the board of directors of such Person (or by any Person or group of Persons
exercising similar authority) and is not required to be specifically authorized
by the parent company (if any) of such Person; and

 

(c)           such action is similar in nature and
magnitude to actions customarily taken, without any authorization by the board
of directors (or by and Person or group of Persons exercising similar
authority), in the ordinary course of the normal day-to-day operations of other
Persons that are in the same line of business as such Person.

 

“Organizational
Documents”—(a) the
articles of certificate of incorporation and the bylaws of a corporation; (b)
the partnership agreement and any statement of partnership of a general
partnership; (c) the limited partnership agreement and the certificate of
limited partnership of a limited partnership; (d) any charter or similar
document adopted or filed in connection with the creation, formation, or
organization of a Person; and (e) any amendment to any of the foregoing.

 

“Person”—any individual, corporation (including any
non-profit corporation), general or limited partnership, limited liability
company, joint venture, estate, trust, association, organization, labor union,
or other entity or Governmental Body.

 

“Plan”—as defined in Section 2.13.

 

“Proceeding”—any action, arbitration, audit, hearing,
investigation, litigation, or suit (whether civil, criminal, administrative,
investigative, or informal) commenced, brought, conducted, or heard by or
before, or otherwise involving, any Governmental Body or arbitrator.

 

 

“Related
Person”—with respect
to a particular individual:

 

(a)           each other member of such individual’s
Family;

 

(b)           any Person that is directly or indirectly
controlled by such individual or one or more members of such individual’s
Family;

 

(c)           any Person in which such individual or
members of such individual’s Family hold (individually or in the aggregate) a
Material Interest; and

 

(d)           any Person with respect to which such
individual or one or more members of such individual’s Family serves as a
director, officer, partner, executor, or trustee (or in a similar capacity).

 

With
respect to a specified Person other than an individual:

 

(a)           any Person that directly or indirectly
controls, is directly or indirectly controlled by, or is directly or indirectly
under common control with such specified Person;

 

(b)           any Person that holds a Material Interest in
such specified Person;

 

(c)           each Person that serves as a director,
officer, partner, executor, or trustee of such specified Person (or in a
similar capacity);

 

(d)           any Person in which such specified Person
holds a Material Interest;

 

(e)           any Person with respect to which such
specified Person serves as a general partner or a trustee (or in similar
capacity); and

 

(f)            any Related Person of any individual
described in clause (b) or (c).

 

 

For
purposes of this definition, (a) the “Family” of an individual includes (i) the
individual, (ii) the individual’s spouse [and former spouses], (iii) any other
natural person who is related to the individual or the individual’s spouse
within the second degree, and (iv) any other natural person who resides with
such individual, and (b) “Material Interest” means direct or indirect
beneficial ownership (as defined in Rule 13d-3 under the Securities Exchange
Act of 1934) of voting securities or other voting interests representing at
least      % of the outstanding voting power of a
Person or equity securities or other equity interests representing at least      %
of the outstanding equity securities or equity interests in a Person.

 

“Release”—any spilling, leaking, emitting,
discharging, depositing, escaping, leaching, dumping, or other releasing into
the Environment, whether intentional or unintentional.

 

“Representative”—with respect to a particular Person, any
director, officer, employee, agent, consultant, advisor, or other
representative of such Person, including legal counsel, accountants, and
financial advisors.

 

“Securities
Act”—the Securities
Act of 1933 or any successor law, and regulations and rules issued pursuant to
that Act or any successor law.

 

Seller’s
Release”—as defined
in Section 1.4.

 

“TIG
Stock”—as defined in
the Recitals of this Agreement.

 

“Subsidiary”—with respect to any Person (the “Owner”),
any corporation or other Person of which securities or other interests having
the power to elect a majority of that corporation’s or other Person’s board of
directors or similar governing body, or otherwise having the power to direct
the business and policies of that corporation or other Person (other than
securities or other interests having such power only upon the happening of a
contingency that has not occurred) are held by the Owner or one or more of its
Subsidiaries; when used without reference to a particular Person, “Subsidiary”
means a Subsidiary of the Company.

 

“Tax
Return”—any return
(including any information return), report, statement, schedule, notice, form,
or other document or information filed with or submitted to, or required to be
filed with or submitted to, any Governmental Body in connection with the
determination, assessment, collection, or payment of any Tax or in connection
with the administration, implementation, or enforcement of or compliance with
any Legal Requirement relating to any Tax.

 

“Threatened”—a claim, Proceeding, dispute, action, or
other matter will be deemed to have been “Threatened” if any demand or
statement has been made (orally or in writing) or any notice has been given
(orally or in writing), or if any other event has occurred or any other
circumstances exist, that would lead a prudent Person to conclude

 

 

that
such a claim, Proceeding, dispute, action, or other matter is likely to be
asserted, commenced, taken or otherwise pursued in the future.Exhibit 4.23

 

NOTE

 

	
  $33,000,000.00

  	
   

  	
   

  	
  Date: November 24,
  2003

  

 

FOR VALUE RECEIVED, on November 24,
2010 (the “Maturity Date”) the undersigned, KENTUCKY UTILITIES COMPANY,
a Kentucky and Virginia corporation (the “Borrower”), unconditionally
promises to pay to FIDELIA CORPORATION (the “Lender”), at the Lender’s
office at 919 North Market Street, Suite 504, Wilmington, Delaware  19801, or at such other place as the holder
of this Note may from time to time designate in writing, in lawful money of the
United States of America and immediately available funds, the principal sum of
$33,000,000.  This Note is referred to in
and was executed and delivered under the Loan and Security Agreement dated as
of August 15, 2003 (the “Loan Agreement”) between the Borrower and
the Lender, to which reference is made for a more complete statement of the
terms and conditions under which the loan evidenced by this Note was made and
is to be repaid.  Capitalized terms used
in this Note and not otherwise defined have the meanings assigned to such terms
in the Loan Agreement.

 

Unless otherwise paid
sooner under the provisions of Section 2.6(c) or 7.1 of
the Loan Agreement, the principal indebtedness represented by this Note is
payable on the Maturity Date.  The
Borrower further promises to pay interest on the outstanding principal amount
of the indebtedness represented by this Note from the date of this Note until
payment in full at the applicable rates determined in accordance with Section 2.3(A) of
the Loan Agreement.  Except as otherwise
provided in the Loan Agreement, interest is payable at the fixed rate of 4.24%
semi-annually in arrears not later than the last Business Day of each six
months period and is computed on the basis of a 360-day year consisting of
twelve 30-day months.  Interest payment
dates are or around May 24th and November 24th
during the term of the Note.

 

If payment under this
Note becomes due and payable on a Business Day, the due date of such payment is
extended to the next succeeding Business Day. 
In no contingency or event whatsoever will interest charged under this
Note, however such interest may be characterized or computed, exceed the
highest rate permissible under any law which a court of competent jurisdiction,
in a final determination, deems applicable to this Note.  In the event that such a court determines
that the Lender has received interest under this Note in excess of the highest
rate applicable to this Note, any such excess interest collected by the Lender
is deemed to have been a repayment of principal and be so applied.

 

The obligations of the
Borrower under this Note is secured by certain collateral as and to the extent
set forth in the Loan Agreement.  This
Note is subject to prepayment at the option of the Borrower as provided in the
Loan Agreement.

 

 

DEMAND,
PRESENTMENT, PROTEST AND NOTICE OF NONPAYMENT AND PROTEST ARE WAIVED BY THE
BORROWER.

 

This Note has been
delivered and is deemed to have been made, at Wilmington, Delaware and will be
interpreted in accordance with the internal law as (as opposed to conflicts of
law provisions) and decisions of the State of Delaware.  Whenever possible each provision of this Note
will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Note is prohibited by or invalid
under applicable law, such provision will be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision
or the remaining provisions of this Note. 
Whenever in this Note reference is made to the Lender or the Borrower,
such reference is deemed to include, as applicable, a reference to their
respective successors and assigns.  The
provisions of this Note are binding upon and inure to the benefit of said
successors and assigns.  The Borrower’s
successors and assigns include, without limitation, a receiver, trustee or
debtor-in-possession of or for the Borrower.

 

	
   

  	
  KENTUCKY UTILITIES COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
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