Document:

Exhibit 10.9

ASSET PURCHASE AGREEMENT

BETWEEN

PANAMERICAN BANK

AND

SOUTHERN SECURITY BANK CORP.

AND

SOUTHERN SECURITY BANK

DATED May 15, 2001

                              TABLE OF CONTENTS

1.  Definitions................................................................1

2.  Basic Transaction..........................................................6
    (a) Purchase and Sale of Assets............................................6
    (b) Assumption of Liabilities..............................................6
    (c) Purchase Price.........................................................7
    (d) The Closing............................................................7
    (e) Deliveries at the Closing..............................................7

3.  Representations and Warranties of the Seller...............................7
    (a) Organization of the Seller.............................................7
    (b) Authorization of Transaction...........................................8
    (c) Noncontravention.......................................................8
    (d) Brokers' Fees..........................................................8
    (e) Title to Assets........................................................8
    (f) Subsidiaries...........................................................8
    (g) Financial Statements...................................................8
    (h) Events Subsequent to Most Recent Fiscal Year End.......................9
    (i) Intentionally Omitted.................................................11
    (j) Legal Compliance......................................................11
    (k) Tax Matters...........................................................11
    (l) Real Property.........................................................12
    (m) Intellectual Property.................................................13
    (n) Tangible Assets.......................................................13
    (o) Contracts.............................................................14
    (p) Notes and Accounts Receivable.........................................15
    (q) Powers of Attorney....................................................15
    (r) Insurance.............................................................15
    (s) Litigation............................................................15
    (t) Employees.............................................................15
    (u) Guaranties............................................................15
    (v) Environment, Health, and Safety Matters...............................15
    (w) Certain Business Relationships with the Seller........................16
    (x) Retained Liabilities..................................................16
    (y) Disclosure............................................................16

4.  Representations and Warranties of the Buyer...............................16
    (a) Organization of the Buyer.............................................16
    (b) Authorization of Transaction..........................................16
    (c) Noncontravention......................................................16
    (d) Brokers' Fees.........................................................17
    (e) Stock.................................................................17
    (f) Financial Statements..................................................17
    (g) Liabilities...........................................................17
    (h) Contracts.............................................................18
    (i) Litigation............................................................18
    (j) Taxes.................................................................18
    (k) Material Transactions.................................................18
    (l) Material Changes......................................................18
    (m) Securities............................................................18
    (n) Law Applicable........................................................18
    (o) Subsidiaries..........................................................19
    (p) Regulatory Matters....................................................19
    (q) Assumption............................................................19
    (r) Disclosure............................................................19

5.  Pre-Closing Covenants.....................................................19
    (a) General...............................................................19
    (b) Notices and Consents..................................................20
    (c) Operation of Business.................................................20
    (d) Preservation of Business..............................................20
    (e) Full Access...........................................................20
    (f) Notice of Developments................................................20
    (g) Exclusivity...........................................................20
    (h) Intentionally Omitted.................................................20
    (i) Surveys...............................................................21
    (j) Buyer's Covenants.....................................................21

6.  Conditions to Obligation to Close.........................................21
    (a) Conditions to Obligation of the Buyer.................................21
    (b) Conditions to Obligation of the Seller................................23

7.  Indemnification by Seller and Shareholder.................................24

8.  Indemnification by Buyer..................................................24
9.  Threshold.................................................................24

10. Indemnification Procedures................................................24

11. Procedures Relating to Tax Indemnification................................26

12. Tax Indemnity.............................................................27

13. Indemnification Payments..................................................27

14. Termination...............................................................27
    (a) Termination of Agreement..............................................27
    (b) Effect of Termination.................................................28
    (c) Break-Up Fee..........................................................28
    (d) Seller's Default......................................................28

15. Miscellaneous.............................................................28
    (a) Change of Name........................................................28
    (b) Survival of Representations and Warranties............................28
    (c) Press Releases and Public Announcements...............................29
    (d) No Third-Party Beneficiaries..........................................29
    (e) Entire Agreement......................................................29
    (f) Succession and Assignment.............................................29
    (g) Counterparts..........................................................29
    (h) Headings..............................................................29
    (i) Notices...............................................................29
    (j) Governing Law.........................................................30
    (k) Amendments and Waivers................................................30
    (l) Severability..........................................................31
    (m) Expenses..............................................................31
    (n) Construction..........................................................31
    (o) Incorporation of Exhibits and Schedules...............................31
    (p) Specific Performance..................................................31
    (q) Submission to Jurisdiction............................................31
    (r) Confidentiality.......................................................32
    (s) Fraudulent Transfer Laws..............................................32
    (t) Third Parties.........................................................32
    (u) Registration..........................................................32
    (v) Directors.............................................................33

EXHIBITS:

    (a) Exhibit 1 - Seller's Financial Statements.
    (b) Exhibit 2 - Seller's Employee Severance Policy.
    (c) Exhibit 3 - Buyer's Financial Statements.

ASSET PURCHASE AGREEMENT

        This
agreement (the “Agreement”) entered into as of May 15, 2001, by and
between SOUTHERN SECURITY BANK CORPORATION, a Delaware corporation
(“SSBC”) and SOUTHERN SECURITY BANK, a Florida banking corporation
(individually and collectively the “Buyer”), and PANAMERICAN BANK, a
Florida banking corporation (the “Seller”). The Buyer and the
Seller are referred to collectively herein as the “Parties”.

        This
Agreement contemplates a transaction in which the Buyer will purchase certain
assets (and assume certain of the liabilities) of the Seller in return for cash
and certain stock in Buyer. 

        Now,
therefore, in consideration of the premises and the mutual promises herein made,
and in consideration of the representations, warranties, and covenants herein
contained, the Parties agree as follows: 

        1.
Definitions.  “Acquired Assets” means all right, title,
and interest in and to all of the assets of the Seller, including all of
its (a) real property, leaseholds and subleaseholds therein, improvements,
fixtures, and fittings thereon, including, but not limited to, any banking
houses, drive-in banking facilities, teller facilities and administrative
offices together with appurtenant parking, storage and service facilities, and
easements, rights-of-way, and other appurtenants thereto (such as appurtenant
rights in and to public streets); (b) tangible personal property (such as
equipment and furniture, including, but not limited to, office machinery,
automated teller machines, shelving, office supplies and artwork, automobiles
and trucks); (c) Intellectual Property, goodwill associated therewith, licenses
and sublicenses granted and obtained with respect thereto, and rights
thereunder, remedies against infringements thereof, and rights to protection of
interests therein under the laws of all jurisdictions; (d) leases, subleases,
and rights thereunder; (e) agreements, contracts, indentures, mortgages,
instruments, Security Interests, guaranties, other similar arrangements, and
rights thereunder; (f) accounts, notes, and other receivables; (g) securities
(such as the capital stock in its Subsidiaries), (h) claims, deposits as defined
in Section 3(l) of the Federal Deposit Insurance Act, including all uncollected
items included in depositor’s balances and credited on the books of Seller,
prepayments, refunds, Loans, causes of action, choses in action, rights of
recovery, rights of set off, and rights of recoupment (including any such item
relating to the payment of Taxes); (i) franchises, approvals, permits, licenses,
orders, registrations, certificates, variances, and similar rights obtained from
governments and governmental agencies; (j) Books, Records, ledgers, files,
documents, correspondence, lists, plats, architectural plans, drawings, and
specifications, creative materials, advertising and promotional materials,
studies, reports, and other printed or written materials; and (k) Cash;
provided, however, that the Acquired Assets shall not include, as at the
Closing Date, any asset not carried on Seller’s Books, including, (i) the
corporate charter, qualifications to conduct business as a foreign corporation,
arrangements with registered agents relating to foreign qualifications, taxpayer
and other identification numbers, seals, minute books, stock transfer books,
blank stock certificates, and other documents relating to the organization,
maintenance, and existence of the Seller as a corporation or (ii) any of the
rights of the Seller under this Agreement (or under any side agreement between
the Seller on the one hand and the Buyer on the other hand entered into on or
after the date of this Agreement); (iii) stock owned by Seller in the Federal
Reserve Bank of Atlanta; (iv) loans which have been written off by Seller; (v)
refunds on insurance premiums; and (vi) tax refunds. 

        “Assumed
Liabilities” means all of the Seller’s Liabilities except Retained
Liabilities. Assumed Liabilities expressly include (i) the obligation to make
the severance payments to Seller’s employees set forth in Exhibit 2; (ii)
the obligation to treat any employee of Seller retained by Buyer as having been
hired by Buyer as of the date such person was employed by Seller for purposes of
all employee benefits provided by Buyer; (iii) all liabilities under
Seller’s 401(k) plan and (iv) all obligations and liabilities to Manuel
Alvarez pursuant to his Employment Agreement except that Buyer’s liability
with respect to the change in control bonus under such Employment Agreement
payable by reason of the acquisition contemplated pursuant to this Agreement
shall be limited to $35,000 and Seller shall retain any liability for change in
control bonus in excess of said $35,0000. 

        “Books”
shall mean, with respect to any Person, the general ledger of such Person and
any related subsidiary ledger. 

        “Book
Value” shall mean the dollar amount of any asset or liability stated on
the Books of a Party as of the Closing Date, after adjustment for any
differences in accounts, suspense items, unposted debits and credits and other
similar adjustments and corrections. With respect to any asset “Book
Value” shall be determined exclusive of any loss reserves and shall be
reduced by any unearned discount on add-on interest installment loans or loans
in progress, all as reflected on the Books of a Party as at the Closing Date,
but shall not otherwise be adjusted for unearned income. In the case of Seller,
any asset, such as the Federal Reserve Stock, or any liability, such as the
Capital Note (as hereinafter defined), not being transferred to or assumed by
Buyer shall not be included in the determination of Book Value. In the case of
Buyer, shares of Class A and Class B common stock shall be deemed to have the
same Book Value and the Book Value of a share of common stock shall be
determined by dividing stockholders’ equity as set forth in the Closing
Date balance sheet by the outstanding shares as set forth in the Closing Date
balance sheet. 

        "Buyer" has the meaning
set forth in the preface above.

        “Cash”
means cash and cash equivalents (including marketable securities and short term
investments) calculated in accordance with GAAP applied on a basis consistent
with the preparation of the Financial Statements. 

        "Closing" has the
meaning set forth in Section 2(d) below.

        "Closing Date" has the
meaning set forth in Section 2(d) below.

        "Code" means the
Internal Revenue Code of 1986, as amended.

        "Disclosure Schedule"
has the meaning set forth in Section 3 below.

        “Environmental,
Health, and Safety Requirements” shall mean all federal, state, local
and foreign statutes, regulations, ordinances and other provisions having the
force or effect of law, all judicial and administrative orders and
determinations, all contractual obligations and all common law concerning public
health and safety, worker health and safety, and pollution or protection of the
environment, including without limitation all those relating to the presence,
use, production, generation, handling, transportation, treatment, storage,
disposal, distribution, labeling, testing, processing, discharge, release,
threatened release, control, or cleanup of any hazardous materials, substances
or wastes, chemical substances or mixtures, pesticides, pollutants,
contaminants, toxic chemicals, petroleum products or byproducts, asbestos,
polychlorinated biphenyls, noise or radiation, each as amended and as now or
hereafter in effect. 

        “Extremely
Hazardous Substance” has the meaning set forth in Section 302 of the
Emergency Planning and Community Right-to-Know Act of 1986, as amended. 

        "FDIC" shall mean the
Federal Deposit Insurance Corporation.

        "Financial Statement"
has the meaning set forth in Section 3(g) below.

        “Fixtures”
shall mean those improvements, additions, alterations and installations
constituting a part of the Seller’s premises which were acquired, added,
built, installed or purchased at the expense of Seller, regardless of the holder
of the legal title thereto as of the Closing. 

        “GAAP”
means United States generally accepted accounting principles as in effect from
time to time. 

        “Intellectual
Property” means (a) all inventions (whether patentable or unpatentable
and whether or not reduced to practice), all improvements thereto, and all
patents, patent applications, and patent disclosures, together with all
reissuances, continuations, continuations-in-part, revisions, extensions, and
reexaminations thereof, (b) all trademarks, service marks, trade dress, logos,
trade names, including, but not limited to, the name “PanAmerican
Bank”, and corporate names, together with all translations, adaptations,
derivations, and combinations thereof and including all goodwill associated
therewith, and all applications, registrations, and renewals in connection
therewith, (c) all copyrightable works, all copyrights, and all applications,
registrations, and renewals in connection therewith, (d) all mask works and all
applications, registrations, and renewals in connection therewith, (e) all trade
secrets and confidential business information (including ideas, research and
development, know-how, formulas, compositions, manufacturing and production
processes and techniques, technical data, designs, drawings, specifications,
customer and supplier lists, pricing and cost information, and business and
marketing plans and proposals), (f) all computer software (including data and
related documentation), (g) all other proprietary rights, and (h) all copies and
tangible embodiments thereof (in whatever form or medium) to the extent
described on the Disclosure Schedule. 

        “Knowledge”
means actual knowledge of the party whereby such Party is aware of a particular
fact or matter. The Seller will be deemed to have “Knowledge” only if
any one of Manuel Alvarez as President of the Seller, Donato Marmol as Senior
Vice President of Seller, Luis Ortega as Shareholder representative and Member
of the Board of Directors or Rene Murai as Acting Chairman of the Board of
Directors has knowledge of such fact or matter. 

        “Laws”
shall mean all Laws (including Environmental, Health and Safety Requirements),
statutes, ordinances, regulations, rules, directives, orders, policies, common
laws, judgments and other pronouncements having the effect of Law of the United
States of America, any foreign country, or any domestic or foreign state,
province, commonwealth, city, county, municipality, territory, protectorate,
possession, court, tribunal, agency, government, department, commission,
arbitrator, board, bureau, or instrumentality thereof. 

        “Lender
of Record” shall mean, with respect to any Loan, the person identified
as the lender under the original documentation for such Loan; provided, that if
any Person has acquired by assignment, endorsement or otherwise, all of the
original lender’s right, title and interest in and to such Loan,
“Lender of Record” shall mean the last Person to acquire such right,
title and interest. 

        “Liability”
means any liability (whether known or unknown, whether asserted or unasserted,
whether absolute or contingent, whether accrued or unaccrued, whether liquidated
or unliquidated, and whether due or to become due), including any liability for
Taxes. 

        “Loans”
shall mean all advances and other extensions of credit to which Seller is the
Lender of Record and which are reflected on the Books and Records of Seller as
of the Closing, including, without limitation, any Loans which are purchased,
remaining interests in such Loans sold, overdrafts, extensions of credit made by
Seller pursuant to its credit card business, if any, and lease-financing
contracts. 

        “Most
Recent Balance Sheet” means the balance sheet contained within the Most
Recent Financial Statements. 

        “Most
Recent Financial Statements” has the meaning set forth in Section 3(g)
below. 

        “Most
Recent Fiscal Month End” has the meaning set forth in Section 3(g)
below. 

        “Most
Recent Fiscal Year End” has the meaning set forth in Section 3(g)
below. 

        “Ordinary
Course of Business” means the ordinary course of business consistent
with past custom and practice (including with respect to quantity and
frequency). 

        "Party" has the
meaning set forth in the preface above.

        “Person”
means an individual, a partnership, a corporation, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization, or a
governmental entity (or any department, agency, or political subdivision
thereof). 

        "Purchase Price" has
the meaning set forth in Section 2(c) below.

        “Records”
shall mean any and all records of the Seller, including, without limitation, all
papers, microfiche, microfilm and computer reds (including, but not limited to,
magnetic tapes, disk storage card forms and printed copy) generated or
maintained by the Seller that are owned by or in the possession of Seller at
Closing. 

        “Retained
Liabilities” shall mean (i) Liabilities not reflected on the financial
statements or Disclosure Schedules (other than Liabilities incurred in the
Ordinary Course of Business); (ii) any Liability for taxes for pre-closing
periods which exceed the amounts previously paid or accrued on the financial
statements; (iii) any Liability of Seller to indemnify any Person (including any
of Seller’s shareholders) by reason of the fact that such Person was a
director, officer, employee or agent of Seller or was serving at the request of
Seller as a partner, trustee, director, officer, employee or agent of another
entity (whether such indemnification is for judgments, damages, penalties,
fines, costs, amounts paid in settlement, losses, expenses or otherwise and
whether such indemnification is pursuant to any statute, charter document,
bylaw, agreement or otherwise; (iv) any Liability to Douglas Cutchens; (v) any
Liability to Manuel Alvarez in connection with the change of control of Seller
in excess of $35,000.00; (vi) any Liability in connection with the Banco Central
litigation; (vii) any Liability of Seller for costs and expenses in connection
with this Agreement and the transactions contemplated hereby; (viii) the
Liability under the Capital Note (as defined in Section 3(h)(vii)); (ix)
retainer agreement between Seller and Murai, Wald, Biondo & Moreno; (x)
Agreement between Seller and Morrison, Brown, Argiz and Company; (xi) Commission
Agreement between Seller and Jose Chaoui; and (xii) any Liability in connection
with the First Security Bank of New Mexico and OCWEN Federal Bank, FSB
litigation. 

        “Safe
Deposit Boxes” shall mean all safe deposit boxes owned or leased by the
Seller, if any, including, but not limited to, the removable safe deposit boxes
and safe deposit stacks on the Seller’s vault and all keys and combinations
thereto. 

        "Securities Act" means
the Securities Act of 1933, as amended.

        “Securities
Exchange Act” means the Securities Exchange Act of 1934, as amended. 

        “Security
Interest” means any mortgage, pledge, lien, encumbrance, charge, or
other security interest, other than (a) mechanic’s,
materialmen’s, and similar liens, (b) liens for Taxes not yet due and
payable, (c) purchase money liens and liens securing rental payments under
capital lease arrangements, and (d) other liens arising in the Ordinary Course
of Business and not incurred in connection with the borrowing of money. 

        "Seller" has the
meaning set forth in the preface above.

        "Shareholder" for the
purpose of this Agreement only, means Interbank Holding Corp., a Florida bank holding company.

        “Subsidiary”
shall have the meaning set forth in the Bank Holding Company Act or the Federal
Deposit Insurance Act. 

        "Survey" has the meaning
set forth in Section 5(i) below.

        “Tax”
means any federal, state, local, or foreign income, gross receipts, license,
payroll, employment, excise, severance, stamp, occupation, premium, windfall
profits, environmental (including taxes under Code §59A), customs duties,
capital stock, franchise, profits, withholding, social security (or similar),
unemployment, disability, real property, personal property, sales, use,
transfer, registration, value added, alternative or add-on minimum, estimated,
or other tax of any kind whatsoever, including any interest, penalty, or
addition thereto, whether disputed or not. 

        “Tax
Return” means any return, declaration, report, claim for refund, or
information return or statement relating to Taxes, including any schedule or
attachment thereto, and including any amendment thereof. 

        2.  Basic Transaction.

        (a)
Purchase and Sale of Assets. On and subject to the terms and conditions
of this Agreement, the Buyer agrees to purchase from the Seller, and the Seller
agrees to sell, transfer, convey, and deliver to the Buyer, all of the Acquired
Assets at the Closing for the consideration specified below in this Section 2. 

        (b)
Assumption of Liabilities. On and subject to the terms and conditions of
this Agreement, the Buyer agrees to assume and become responsible for all of the
Assumed Liabilities at the Closing. The Buyer will not assume or have any
responsibility, however, with respect to any other obligation or Liability of
the Seller not included within the definition of Assumed Liabilities. Seller
will also transfer to Buyer all property held by Seller as custodian or other
fiduciary together with all agreements with the beneficiaries thereof and Buyer
agrees to assume all obligations under such agreements. 

        (c)
Purchase Price. The Buyer agrees to pay to the Seller at the Closing the
sum of Five Million Dollars ($5,000,000.00) payable as follows: (i) 9.9% of the
number of Class A Voting and Class B non-voting common shares of Southern
Security Bank Corporation shown as outstanding on the Closing Date Balance sheet
(“SSBC” - said stock to be valued at $1.67 times the Book Value of
SSBC at Closing) and (ii) the balance shall be payable in immediately available
funds. If the Book Value of Seller at Closing exceeds $3,000,000.00, the Seller
shall be entitled to retain cash equal to the excess of Seller’s Book Value
over $3,000,000.00; if Seller’s Book Value at Closing is less than
$3,000,000.00, then the difference between $3,000,000.00 and the Seller’s
Book Value will be subtracted from the Purchase Price on a dollar ($1.00) for
dollar ($1.00) basis. The Book Value of Seller and of SSBC shall be determined
as provided under Section 6(a)(xi) below and Section 6(b)(ix), respectively. 

        (d)
The Closing. The closing of the transactions contemplated by this
Agreement (the “Closing”) shall take place at the offices of
Murai Wald Biondo & Moreno located at 900 Ingraham Building, 25 Southeast
2nd Avenue, Miami, Florida 33131, commencing at 10:00 a.m. local time
on the second business day following the satisfaction or waiver of all
conditions to the obligations of the Parties to consummate the transactions
contemplated hereby (other than conditions with respect to actions the
respective Parties will take at the Closing itself) or such other date as the
Parties may mutually determine (the “Closing Date”);
provided, however, that the Closing Date shall not be later than 30 days
following the satisfaction of the conditions set forth in Sections 6(a) (vi) and
6(b)(v) unless otherwise agreed to by the Parties. 

        (e)
Deliveries at the Closing. At the Closing, (i) the Seller will deliver to
the Buyer the various certificates, instruments, and documents referred to in
Section 6(a) below; (ii) the Buyer will deliver to the Seller the various
certificates, instruments, and documents referred to in Section 6(b) below;
(iii) the Seller will execute, acknowledge (if appropriate), and deliver to the
Buyer (A) assignments (including real property and Intellectual Property
transfer documents) in the forms acceptable to Buyer and/or its counsel and (B)
such other instruments of sale, transfer, conveyance, and assignment as the
Buyer and its counsel reasonably may request; (iv) the Buyer will execute,
acknowledge (if appropriate), and deliver to the Seller (A) an assumption in the
form acceptable to Seller and/or its counsel and (B) such other instruments of
assumption as the Seller and its counsel reasonably may request; and (v) the
Buyer will deliver to the Seller the consideration specified in Section 2(c)
above. 

        3.
Representations and Warranties of the Seller. The Seller represents and
warrants to the Buyer that the statements contained in this Section 3 are
correct and complete as of the date of this Agreement, except as set forth in
the disclosure schedule accompanying this Agreement and initialed by the Parties
(the “Disclosure Schedule”). [The Disclosure Schedule will be
arranged in paragraphs corresponding to the lettered and numbered paragraphs
contained in this Section 3.] 

        (a)
Organization of the Seller. The Seller is an insured depository
institution duly organized, validly existing, and in good standing under the
laws of the jurisdiction in which it is chartered. 

        (b)
Authorization of Transaction. (i) Subject to Seller’s obtaining
stockholder approval prior to the Closing Date as set forth in Section 6(a)(x)
below (i) Seller has full power and authority (including full corporate power
and authority) to execute and deliver this Agreement and to perform its
obligations hereunder; (ii) without limiting the generality of the foregoing,
the board of directors of the Seller has duly authorized the execution,
delivery, and performance of this Agreement by the Seller, and (iii) this
Agreement constitutes the valid and legally binding obligation of the Seller,
enforceable in accordance with its terms and conditions. 

        (c)
Noncontravention. Neither the execution and the delivery of this
Agreement, nor the consummation of the transactions contemplated hereby
(including the assignments and assumptions referred to in Section 2 above),
will, subject to required governmental notices and/or approvals and/or third
party notices and/or approvals, (i) violate any constitution, statute,
regulation, rule, injunction, judgment, order, decree, ruling, charge, or other
restriction of any government, governmental agency, or court to which the Seller
is subject or any provision of the charter or bylaws of the Seller 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 the Seller is a party or by which it
is bound or to which any of its assets is subject (or result in the imposition
of any Security Interest upon any of its assets). Seller needs to give any
notice to, make a filing with, obtain authorization, consent and approval of
government or governmental agencies having jurisdiction of the Seller in order
for the Parties to consummate the transactions contemplated by this Agreement
(including the assignments and assumptions referred to in Section 2 above). 

        (d)
Brokers’ Fees. The Seller has no Liability or obligation to pay any
fees or commissions to any broker, finder, or agent with respect to the
transactions contemplated by this Agreement for which the Buyer could become
liable or obligated. 

        (e)
Title to Assets. The Seller has good title to, or a valid leasehold
interest in, the properties and assets used by them, located on its premises, or
shown on the Most Recent Balance Sheet or acquired after the date thereof, free
and clear of all Security Interests, except for properties and assets disposed
of in the Ordinary Course of Business since the date of the Most Recent Balance
Sheet. Without limiting the generality of the foregoing, the Seller has good
title to all of the Acquired Assets, free and clear of any Security Interest or
restriction on transfer, subject, however, to a dispute involving the use of the
name “PanAmerican Bank.” 

        (f) Subsidiaries. The Seller has no Subsidiaries.

        (g)
Financial Statements. Attached hereto as Exhibit 1 are the following
financial statements (collectively the “Financial Statements”)
for the Seller: (i) audited and unaudited balance sheets and statements of
income, changes in stockholders’ equity, and cash flow as of and for the
fiscal years ended December 31,1998, 1999, and 2000 (the “Most Recent
Fiscal Year End”) for the Seller; and (ii) unaudited balance sheet and
statement of income. (the “Most Recent Financial Statements”)
as of and for the month ended April 30, 2001 (the “Most Recent Fiscal
Month End”). The Financial Statements (including the notes thereto)
have been prepared in accordance with GAAP applied on a consistent basis
throughout the periods covered thereby, present fairly the financial condition
of the Seller as of such dates and the results of operations of the Seller for
such periods, are correct and complete, and are consistent with the Books and
Records of the Seller (which Books and Records are correct and complete)
subject, as to unaudited statements, to customary year-end adjustments. 

        (h)
Events Subsequent to Most Recent Fiscal Year End. Since the Most Recent
Fiscal Year End, and except as set forth in the Disclosure Schedule, there has
not been any adverse change in the business, financial condition, operations,
results of operations. Without limiting the generality of the foregoing, since
that date: 

	 	        (i)
Seller has not sold, leased, transferred, or assigned any of its assets,
tangible or intangible, other than for a fair consideration in the Ordinary
Course of Business;

	 	        (ii)
The Seller has not entered into any agreement, contract, lease, or license (or
series of related agreements, contracts, leases, and licenses) involving more
than $10,000.00 and outside the Ordinary Course of Business;

	 	        (iii)
no party (including the Seller) has accelerated, terminated, modified, or
cancelled any agreement, contract, lease, or license (or series of related
agreements, contracts, leases, and licenses) involving more than $10,000.00 to
which the Seller is a party or by which it is bound, except in the Ordinary
Course of Business;

	 	        (iv)
The Seller has not imposed any Security Interest upon any of its assets,
tangible or intangible, except in connection with repurchase agreements made in
the Ordinary Course of Business;

	 	        (v)
The Seller has not made any capital expenditure (or series of related capital
expenditures) involving more than $10,000.00 and outside the Ordinary Course of
Business;

	 	        (vi)
The Seller has not made any capital investment in, any loan to, or any
acquisition of the securities or assets of, any other Person (or series of
related capital investments, loans, and acquisitions) involving more than
$10,000.00 and outside the Ordinary Course of Business;

	 	        (vii)
The Seller has not issued any note, bond, or other debt security or created,
incurred, assumed, or guaranteed any indebtedness for borrowed money or
capitalized lease obligation involving more than $1,000.00 singly or $5,000.00
in the aggregate except for letters of credit and repurchase agreements in the
Ordinary Course of Business, and except for a subordinated capital note in the
amount of $300,000 issued or to be issued to Shareholder (the “Capital
Note”);

	 	        (viii)
The Seller has not delayed or postponed the payment of accounts payable and
other Liabilities outside the Ordinary Course of Business and any and all such
payables have been duly accrued in the Ordinary Course of Business if any such
payable is more than $500.00;

	 	        (ix)
The Seller has not cancelled, compromised, waived, or released any right or
claim (or series of related rights and claims) involving more than $10,000.00
and outside the Ordinary Course of Business;

	 	        (x)
The Seller has not granted any license or sublicense of any rights under or with
respect to any Intellectual Property;

	 	        (xi) there has
been no change made or authorized in the charter or bylaws of the Seller;

	 	        (xii)
The Seller has not issued, sold, or otherwise disposed of any of its capital
stock, or granted any options, warrants, or other rights to purchase or obtain
(including upon conversion, exchange, or exercise) any of its capital stock;

	 	        (xiii)
The Seller has not declared, set aside, or paid any dividend or made any
distribution with respect to its capital stock (whether in cash or in kind) or
redeemed, purchased, or otherwise acquired any of its capital stock;

	 	        (xiv)
The Seller has not made any loan to, or entered into any other transaction with,
any of its directors, officers, and employees outside the Ordinary Course of
Business;

	 	        (xv)
The Seller has not entered into any employment contract (except for oral at
will contracts) or collective bargaining agreement, written or oral, or
modified the terms of any existing such contract or agreement which would be
binding on the Buyer on the Closing Date;

	 	        (xvi)
The Seller has not granted any increase in the base compensation of any of its
directors, officers, and employees outside the Ordinary Course of Business;

	 	        (xvii)
The Seller has not adopted, amended, modified, or terminated any bonus,
profit-sharing, incentive, severance, or other plan, contract, or commitment for
the benefit of any of its directors, officers, and employees;

	 	        (xviii)
The Seller has not made any other change in employment terms for any of its
directors, officers, and employees outside the Ordinary Course of Business;

	 	        (xix)
The Seller has not made or pledged to make any charitable or other capital
contribution outside the Ordinary Course of Business;

	 	        (xx)
there has not been any other material occurrence, event, incident, action,
failure to act, or transaction outside the Ordinary Course of Business involving
the Seller; and

	 	        (xxi) The
Seller has not committed to any of the foregoing.

        (i) Intentionally Omitted.

        (j)
Legal Compliance. To Seller’s Knowledge, except as set forth in the
Disclosure Schedules, the Seller is currently in compliance with all applicable
laws (including rules, regulations, codes, plans, injunctions, judgments,
orders, decrees, rulings, and charges thereunder) of federal, state, local, and
foreign governments (and all agencies thereof), the failure to comply with which
could materially and adversely affect the Seller and/or its properties and/or
its operations. 

	 	(k)     Tax Matters.

	 	        (i)
The Seller has filed all Tax Returns that it was required to file. All such Tax
Returns were correct and complete in all respects. All Taxes owed by the Seller
(whether or not shown on any Tax Return) have been paid. The Seller currently is
not the beneficiary of any extension of time within which to file any Tax
Return. No claim has ever been made by an authority in a jurisdiction where the
Seller does not file Tax Returns that it is or may be subject to taxation by
that jurisdiction. There are no Security Interests on any of the assets of the
Seller that arose in connection with any failure (or alleged failure) to pay any
Tax.

	 	        (ii)
The Seller has withheld and paid all Taxes required to have been withheld and
paid in connection with amounts paid or owing to any employee, independent
contractor, creditor, stockholder, or other third party.

	 	        (iii)
Seller does not expect any authority to assess any additional Taxes for any
period for which Tax Returns have been filed. There is no dispute or claim
concerning any Tax Liability of the Seller either (A) claimed or raised by any
authority in writing or (B) as to which any of the Seller, Stockholder and the
directors and officers of the Seller has Knowledge based upon personal contact
with any agent of such authority. Section 3(k) of the Disclosure Schedule lists
all federal, state, local, and foreign income Tax Returns filed with respect to
any of the Seller for taxable periods ended on or after December 31, 1998,
indicates those Tax Returns that have been audited, and indicates those Tax
Returns that currently are the subject of audit. The Seller has delivered to the
Buyer correct and complete copies of all federal income Tax Returns, examination
reports, and statements of deficiencies assessed against or agreed to by the
Seller since December 31, 1998.

	 	        (iv)
The Seller has not waived any statute of limitations in respect of Taxes or
agreed to any extension of time with respect to a Tax assessment or deficiency.

	 	        (v)
The unpaid Taxes of the Seller (A) did not, as of the Most Recent Fiscal Month
End, exceed the reserve for Tax Liability (rather than any reserve for deferred
Taxes established to reflect timing differences between book and Tax income) set
forth on the face of the Most Recent Balance Sheet (rather than in any notes
thereto) and (B) do not exceed that reserve as adjusted for the passage of time
through the Closing Date in accordance with the past custom and practice of the
Seller in filing their Tax Returns.

        (l) Real Property.

	 	        (i)
Section 3(l)(i) of the Disclosure Schedule lists and describes briefly all real
property that the Seller owns and contains as an attachment a true and correct
copy of its title insurance policy insuring Seller’s title to the real
property (“Title Policy”). With respect to each such parcel of owned
real property:

	 	        (A)
the Seller owns the real property, free and clear of any Security Interest, or
unrecorded easement, covenant, or other restriction, except for installments of
special assessments not yet delinquent which do not impair the current use,
occupancy, or value, of the property subject thereto;

	 	        (B)
there are no pending or, to the Knowledge of the Seller, threatened condemnation
proceedings, lawsuits, or administrative actions relating to the property or
other matters affecting materially and adversely the current use, occupancy, or
value thereof;

	 	        (C)
there are no leases, subleases, licenses, concessions, or other agreements,
written or oral, granting to any party or parties the right of use or occupancy
of any portion of the parcel of real property;

	 	        (D)
there are no outstanding options or rights of first refusal to purchase the
parcel of real property, or any portion thereof or interest therein; and

	 	        (E) there are no
parties (other than the Seller) in possession of the parcel of real property;

	 	        (ii)
Seller represents that there are no real property leases or subleases on the
real property described on the Disclosure Schedule Section 3(l)(i).

        (m) Intellectual Property.

	 	        (i)
The Seller owns or has the right to use pursuant to license, sublicense,
agreement, or permission all Intellectual Property necessary for the operation
of the businesses of the Seller as presently conducted. Each item of
Intellectual Property owned or used by the Seller immediately prior to the
Closing hereunder will be owned or available for use by the Buyer on identical
terms and conditions immediately subsequent to the Closing hereunder.

	 	        (ii)
The Seller has not interfered with, infringed upon, misappropriated, or
otherwise come into conflict with any Intellectual Property rights of third
parties, and to Seller’s Knowledge none of the directors and officers of
the Seller has ever received any charge, complaint, claim, demand, or notice
alleging any such interference, infringement, misappropriation, or violation
(including any claim that any of the Seller must license or refrain from using
any Intellectual Property rights of any third party).

	 	        (iii)
Seller represents to Buyer that it holds no patents and has filed no
registrations seeking to obtain a patent or patents.

	 	        (iv)
Seller represents to Buyer that Seller does not use in any manner any item of
Intellectual Property owned by any Third Party except for computer licenses and
software for which Seller has a license.

	 	        (v)
To the Knowledge of any of the directors and officers of the Seller, the Seller
will not interfere with, infringe upon, misappropriate, or otherwise come into
conflict with, any Intellectual Property rights of third parties as a result of
the continued operation of its businesses as presently conducted.

Anything herein to the
contrary notwithstanding, (i) Buyer has been informed that another bank has
filed a petition to cancel Seller’s trademark registration of the name
“PanAmerican”; and (ii) Seller makes no representation or warranty
concerning Seller’s right to use the name “PanAmerican” or as to
the validity of the trademark “PanAmerican”; however, Seller will
assign its trademark to Buyer. 

        (n) Tangible Assets.
The Seller owns or leases all buildings,  machinery,  equipment,  and other tangible
assets necessary for the conduct of its businesses as presently  conducted.  Such
assets are being sold in an "as is" condition subject to the provisions of Section
6(a)(ix), below.

        (o) Contracts.
Section 3(o) of the Disclosure Schedule lists the following contracts and other
agreements to which the Seller is a party:

	 	        (i)
any agreement (or group of related agreements) for the lease of personal
property to or from any Person providing for lease payments in excess of
$5,000.00 per annum;

	 	        (ii)
any agreement (or group of related agreements) for the purchase or sale of raw
materials, commodities, supplies, products, or other personal property, or for
the furnishing or receipt of services, the performance of which will extend over
a period of more than one year, result in a material loss to the Seller, or
involve consideration in excess of $5,000.00;

	 	        (iii)
any agreement (excluding Loans and loan  participations)  constituting Seller a
partner or venturer in a joint venture;

	 	        (iv)
any agreement (or group of related agreements), excluding letters of credit,
deposit agreements, repo agreements, and the Capital Note, under which the
Seller is the debtor or obligor of any indebtedness for borrowed money, or any
capitalized lease obligation, in excess of $5,000.00 or under which it has
imposed a Security Interest on any of its assets, tangible or intangible;

	 	        (v) any agreement
which will impose on Buyer subsequent to Closing an obligation of confidentiality
or Restriction on competition;

	 	        (vi)
any agreement under which it has advanced or loaned any amount to any of its
directors, officers, and employees other than in the Ordinary Course of
Business; and

	 	        (vii)
any other agreement (or group of related agreements) the performance of which
involves consideration in excess of $25,000.00.

The Seller has delivered to
the Buyer a correct and complete copy of each written agreement listed in
Section 3(o) of the Disclosure Schedule (as amended to date) and a written
summary setting forth the terms and conditions of each oral agreement referred
to in Section 3(o) of the Disclosure Schedule. With respect to each such
agreement: (A) the agreement is legal, valid, binding, enforceable, and in full
force and effect; (B) the 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 (including the assignments
and assumptions referred to in Section 2 above); (C) 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 agreement; and (D) no party has repudiated any provision
of the agreement. 

        (p)
Notes and Accounts Receivable. Except as set forth in the Disclosure
Schedules, all notes, accounts receivable, mortgages and security agreements of
the Seller are reflected properly on its Books and Records and, to Seller’s
Knowledge, are subject only to the reserve for bad debts set forth on the face
of the Most Recent Balance Sheet (rather than in any notes thereto) as adjusted
for the passage of time through the Closing Date in accordance with the past
custom and practice of the Seller. 

        (q) Powers of Attorney.
There are no outstanding powers of attorney executed on behalf of the Seller.

        (r) Insurance.
Seller will not assign to Buyer any insurance policies of any type unless
required by governmental entities having jurisdiction over the transaction.

        (s) Litigation.
Section 3(s) of the Disclosure Schedule sets forth each instance in which the
Seller (i) is subject to any outstanding injunction, judgment, order, decree,
ruling, or charge or (ii) is a party or, to the Knowledge of the Seller, is
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, local, or foreign jurisdiction or before any
arbitrator. 

        (t) Employees. Buyer
is not assuming any Liabilities of Seller to its employees, except those Liabilities
which are Assumed Liabilities.

        (u) Guaranties. The
Seller is not a guarantor or otherwise liable for any Liability or obligation
(including indebtedness) of any other Person except as such may relate to letters
of credit and repurchase agreements.

        (v) Environmental, Health,
and Safety Matters.

	 	        (i)The
Seller has received no written or oral notice, report or other information
regarding any actual or alleged violation of Environmental, Health, and Safety
Requirements, or any liabilities or potential liabilities (whether accrued,
absolute, contingent, unliquidated or otherwise), including any investigatory,
remedial or corrective obligations, relating to any of them or its facilities
arising under Environmental, Health, and Safety Requirements.

	 	        (ii)
The Seller has not, either expressly or by operation of law, assumed or
undertaken any liability, including without limitation any obligation for
corrective or remedial action, of any other Person relating to Environmental,
Health, and Safety Requirements.

        (w)
Certain Business Relationships With the Seller. The Shareholder and its
Affiliates have not been involved in any business arrangement or relationship
with the Seller within the past 12 months (other than with respect to the
Capital Note), and none of the Stockholder and its Affiliates owns any asset,
tangible or intangible, which is used in the business of the Seller. 

        (x) Retained Liabilities.
Seller shall be responsible to pay or otherwise satisfy the Retained Liabilities.

        (y)
Disclosure. To the best of Seller’s Knowledge, the representations
and warranties contained in this Section 3 do not contain any untrue statement
of a material fact or omit to state any material fact necessary in order to make
the statements and information contained in this Section 3 not misleading. 

        4.
Representations and Warranties of the Buyer. The Buyer represents and
warrants to the Seller that the statements contained in this Section 4 are
correct and complete as of the date of this Agreement. 

(a) Organization of the
Buyer. Each Buyer is duly organized, validly existing, and in good standing
under the laws of the jurisdiction in which it is chartered. SSBC is a duly
registered bank holding company under the Bank Holding Company Act. Southern
Security Bank is an insured depository institution. Each of SSBC and Southern
Security Bank has the corporate power and authority to carry on its business as
now conducted and to own, lease, and operate its properties. 

        (b)
Authorization of Transaction. The Buyer has full power and authority
(including full corporate power and authority) to execute and deliver this
Agreement and to perform its obligations hereunder. This Agreement constitutes
the valid and legally binding obligation of the Buyer, enforceable in accordance
with its terms and conditions. 

        (c)
Noncontravention. Neither the execution and the delivery of this
Agreement, nor the consummation of the transactions contemplated hereby
(including the assignments and assumptions referred to in Section 2 above), will
(i) violate any constitution, statute, regulation, rule, injunction, judgment,
order, decree, ruling, charge, or other restriction of any government,
governmental agency, or court to which the Buyer is subject or any provision of
its charter or bylaws 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
the Buyer is a party or by which it is bound or to which any of its assets is
subject. The Buyer agrees to give any notice to, make any filing with, or obtain
any authorization, consent, or approval of any government or governmental agency
having jurisdiction of the transaction in order for the Parties to consummate
the transactions contemplated by this Agreement (including the assignments and
assumptions referred to in Section 2 above). 

        (d)
Brokers’ Fees. The Buyer has no Liability or obligation to pay any
fees or commissions to any broker, finder, or agent with respect to the
transactions contemplated by this Agreement for which the Seller could become
liable or obligated. 

        (e) Stock.  The
shares of stock in the Buyer consist of:

	 	
(1)
Class A Voting Common Stock, $0.01 par value, 30,000,000 shares authorized;
18,650,842 shares issued and outstanding at March 31, 2001;

	 	
(2)
Class B Non-Voting Common Stock, $0.01 par value, 5,000,000 authorized;
1,521,808 shares issued and outstanding at March 31, 2001; and

	 	
(3)
Series A Preferred Stock, $0.01 par value, 1,200,000 shares authorized, no
shares issued and outstanding at March 31, 2001.

There are no outstanding
options, rights, warrants, commitments or other arrangements pursuant to which
SSBC or Southern Security Bank is or may be bound to issue shares or any
securities which are convertible into or exchangeable for such shares, except
for 811,298 options for Common A Shares as of March 24, 2001 in favor of
Buyer’s employees and a sales arrangement by which First Bank of Puerto
Rico has agreed, through Buyer’s private placement, to purchase 600,000
Class A Voting Shares of Buyer and 180,000 Class B Non-Voting Shares of the
Buyer. 

        (f)
Financial Statements. Attached hereto is as Exhibit 3 are the following
financial statements: audited consolidated comparative financial report for
Southern Security Bank Corporation and Subsidiary for the years ended December
31, 2000 and 1999, containing among other things the consolidated balance
sheets, the consolidated statements of operations, consolidated statements of
stockholders’ equity, and the consolidated statements of cash flows,
certified by McGladrey & Pullen, LLP, certified public accountants and
Buyer’s unaudited, consolidated balance sheet and statement of income, as
and for the month ended April 30, 2001. Buyer has furnished Seller with a copy
of Buyer’s Securities and Exchange Commission Form 10-K/SB for the year
ended December 31, 2000 and 1999, containing among other things the consolidated
balance sheets, the consolidated statements of operations, consolidated
statements of stockholders’ equity, and the consolidated statements of cash
flows. All of the foregoing statements present fairly Buyer’s consolidated
financial condition as of the dates indicated and the result of Buyer’s
operations for the periods indicated in such statements, in the case of such
unaudited statements to audit and usual year-end adjustments. All such
statements have been prepared in conformity with GAAP, applied on a consistent
basis throughout the periods covered thereby, are correct and complete and are
consistent with the Books and Records of Buyer (which Books and Records are
correct and complete) subject, as to any unaudited statements to customary
year-end adjustments. 

        (g)
Liabilities. At March 31, 2001, Buyer has no absolute or contingent
liabilities which are not shown or provided for on the unaudited consolidated
statement of Buyer’s financial position as of April 30, 2001 (Exhibit 3). 

        (h)
Contracts. Buyer is not a party to any written or oral: (1) contract for
the employment of any officer or individual employee, the term of which extends
beyond April 1, 2002; (2) distributor or sales agency or advertising contract
which is not terminable on 30 days’ or less notice without penalty; (3)
contract with a labor union; (4) contract continuing over a period of more than
one year for the future purchase of materials, supplies, or equipment under
which Buyer has a commitment in excess of $6,000.00; (5) contract continuing
over a period of more than one year for the future sale or purchase of services,
products or raw materials except for a contract with Fiserv, Inc. for data and
item processing for five (5) years; (6) pension, profit-sharing, retirement, or
stock purchase plan in effect with respect to its employees or others; (7)
agreement with an institutional lender; or (8) material contract not made in the
Ordinary Course of Business, except in each case as set forth in information
which Buyer has furnished to Seller and except for a lease on Buyer’s
Hollywood, Florida, facility which extends to December 31, 2013 and a lease on
Buyer’s Brickell Avenue, Miami, Florida, facility which extends to 2006. 

        (i)
Litigation. No actions, suits, proceedings, or investigations, in law or
equity, are pending, or to Buyer’s knowledge are threatened against or
affecting, Buyer, which involve the likelihood of any judgment or liability nor
fully covered by insurance exceeding a total of $1,000.00, or which may result
in any material adverse change in the business, operations, properties, assets,
or financial or other condition of Buyer. 

        (j) Taxes. The
amounts set up as provisions for taxes on the unaudited consolidated statement
of Buyer’s financial position as of April 30, 2001 (Exhibit 3) are
sufficient for the payment of all accrued and unpaid federal, state, county, and
local taxes of Buyer, whether or not disputed, for the four months ended on such
date and for all fiscal years prior thereto. Federal income tax returns of
Buyer, the accounts of which are consolidated, have been examined by the
Internal Revenue Service for all past fiscal years through the fiscal years
ended 1999. The Buyer has filed all Tax Returns that it was required to file and
all such Tax Returns were correct and complete in all material respects. All
taxes owed by Buyer (whether or not shown on any Tax Return) have been paid. 

        (k)Material Transactions.
Since December 31, 2000, the Buyer has not entered into any
material transaction other than in the Ordinary Course of Business except for
the transaction with First Bank of Puerto Rico described in paragraph 4(e). 

        (l) Material Changes.
There has been no material  adverse change in the business  financial  condition,
operation or results of operations of Buyer since December 31, 2000.

        (m) Securities.
Common Shares deliverable to Seller, when issued and delivered as provided
herein, will be Buyer’s validly issued and outstanding shares, fully paid
and nonassessable by Buyer and will be unregistered under the Securities Act and
will be restricted. 

        (n) Laws Applicable
The Buyer is in substantial compliance with the Securities Act and the
Securities Exchange Act and, to the Knowledge of Buyer, with all laws (including
rules, regulations, codes, plans, injunctions, judgments, orders, decrees,
rulings, and charges thereunder) of federal, state, local and foreign
governments (and all agencies thereof), the failure to comply with which could
materially and adversely affect the Buyer, and no action, suit, proceeding,
hearing, investigation, charge, complaint, claim, demand, or notice has been
filed or commenced against it alleging any failure so to comply. SSBC has filed
all reports, registrations and statements, together with any required amendments
thereto, that it was required to file with the Securities and Exchange
Commission (“SEC”), including, but not limited to, Forms 10-K, Forms
10-Q, Forms 8-K and Proxy Statements (collectively, the “Buyer
Reports”). As of their respective dates, the Buyer Reports comply in all
material respects with all rules and regulations promulgated by the SEC and did
not contain any untrue statement of the material fact or omit to state a
material fact required to be stated therein and necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading. 

        (o) Subsidiaries.  SSBC's
only  subsidiary  is Southern  Security  Bank.  SSBC is the owner of one hundred
percent  (100%) of the shares or other securities of Southern Security Bank.

        (p) Regulatory  Matters.
Buyer has no  Knowledge  of any fact or  circumstance  relating  to Buyer that is
reasonably  likely to materially  impede or delay receipt of any consent of any
regulatory  authority  requiring to consummate the transactions  contemplated
hereby.

        (q) Assumption.  Buyer
shall be responsible for the payment or discharge of the Assumed Liabilities.

        (r)
Disclosure. To the best of Buyer’s Knowledge, the representations
and warranties contained in this Section 4 do not contain any untrue statement
of a material fact or omit to state any material fact necessary in order to make
the statements and information contained in this Section 4 not misleading. 

        5.  Pre-Closing  Covenants.
The Parties  agree as follows with respect to the period  between the  execution of this
Agreement and the Closing.

        (a)
General. Each of the Parties will use its reasonable best efforts to take
all action and to do all things necessary, proper, or advisable in order to
consummate and make effective the transactions contemplated by this Agreement
(including satisfaction, but not waiver, of the closing conditions set forth in
Section 6 below). Before the Closing Date, the parties’ officers and
accredited representatives shall each have full access to the plants,
properties, books, accounts, and records of every kind, including, without
limitation, the other’s monthly balance sheets and income and operating
statements, and each will furnish the other with all additional financial and
operating data and other information as to its business and properties that is
from time to time reasonably requested. Each party shall authorize and direct
its respective independent auditors to make available to the other party any
information, including access to work papers, requested by such party. 

        (b)
Notices and Consents. The Seller will give any notices to third parties,
and the Seller will use its best efforts to obtain any third party consents,
that the Buyer may request in connection with the matters referred to in Section
3(c) above. Each of the Parties will give any notices to, make any filings with,
and use its best efforts to obtain any authorizations, consents, and approvals
of governments and governmental agencies in connection with the matters referred
to in Section 3(c) and Section 4(c) above. Without limiting the generality of
the foregoing, each of the Parties will file any Notification and Report Forms
and related material that it may be required to file with the Florida Department
of Banking and the Federal Reserve, and will make any further filings pursuant
thereto that may be necessary in connection therewith. 

        (c)
Operation of Business. The Seller will not engage in any practice, take
any action, or enter into any transaction outside the Ordinary Course of
Business. Without limiting the generality of the foregoing, the Seller will not
(i) declare, set aside, or pay any dividend or make any distribution with
respect to its capital stock or redeem, purchase, or otherwise acquire any of
its capital stock. or (ii) otherwise engage in any practice, take any action, or
enter into any transaction which would constitute a breach of the
representations and warranties set forth in Section 3(h) above. 

        (d)
Preservation of Business. The Seller will keep its business and
properties substantially intact, including its present operations, physical
facilities, working conditions, and relationships with lessors, licensors,
suppliers, customers, and employees. 

        (e)
Full Access. Each Party will permit representatives of the other to have
full access at all reasonable times, and in a manner so as not to interfere with
the normal business operations of such Party, to all premises, properties,
personnel, books, records (including Tax records), contracts, and documents of
or pertaining to the said Party. 

        (f)
Notice of Developments. Each Party will give prompt written notice to the
other Party of any material adverse development causing a breach of any of its
own representations and warranties in Section 3 and Section 4 above. No
disclosure by any Party pursuant to this Section 5(f), however, shall be deemed
to amend or supplement the Disclosure Schedule or to prevent or cure any
misrepresentation, breach of warranty, or breach of covenant unless the
Disclosure Schedule itself has been updated. 

        (g)
Exclusivity. The Parties shall not (i) solicit, initiate, or encourage
the submission of any proposal or offer from any Person relating to the
acquisition of any capital stock or other voting securities, or any substantial
portion of the assets, of any of the Parties (including any acquisition
structured as a merger, consolidation, or share exchange) or (ii) participate in
any discussions or negotiations regarding, furnish any information with respect
to, assist or participate in, or facilitate in any other manner any effort or
attempt by any Person to do or seek any of the foregoing. The Seller will notify
the Buyer immediately if any Person makes any proposal, offer, inquiry, or
contact with respect to any of the foregoing and vice versa 

        (h) Intentionally Omitted.

        (i)
Surveys. With respect to each parcel of real property that the Seller
owns, the Buyer may procure, at its expense, in preparation for the Closing a
current survey of the real property certified to the Buyer, prepared by a
licensed surveyor and conforming to current ALTA Minimum Detail Requirements for
Land Title Surveys, disclosing the location of all improvements, easements,
party walls, sidewalks, roadways, utility lines, and other matters shown
customarily on such surveys, and showing access affirmatively to public streets
and roads (the “Survey”). The Survey shall not disclose any
survey defect or encroachment from or onto the real property which has not been
cured or insured over prior to the Closing. 

        (j) Buyer's Covenants.
Buyer covenants with Seller that pending the Closing:

	 	(i)	The
Buyer will not engage in any  practice, take any action or enter into any  transaction
outside  the  Ordinary  Course of Business;

	 	(ii)	
No dividend or other distribution or payment will be declared, set aside or paid
with respect to its outstanding shares and it will not redeem, purchase, or
otherwise acquire such shares except as set forth in Section 4(e) above;

	 	(iii)	
No change will be made in its authorized and outstanding shares, except when
required to comply with the terms of this Agreement;

	 	(iv)	
No change will be made in its charter or bylaws; or

	 	(v)	
Buyer will not do or fail to do any act which would cause its representations
and warranties contained in this Agreement to be untrue or incorrect in any
material respect.

        6. Conditions to Obligation to Close.

        (a)
Conditions to Obligation of the Buyer. The obligation of the Buyer to
consummate the transactions to be performed by it in connection with the Closing
is subject to satisfaction of the following conditions: 

	 	        (i) the
representations and warranties set forth in Section 3 above shall be true and
correct in all material respects at and as of the Closing Date;

 

	 	        (ii) the Seller
shall have  performed  and  complied  with all of its  covenants  hereunder in all material
respects through the Closing;

	 	        (iii)
the Seller shall have procured all of the third party consents specified in
Section 5(b) above which are necessary to transfer any asset which is material
to Seller’s business;

	 	        (iv)
other than litigation set forth in the Disclosure Schedule, no action, suit, or
proceeding shall be pending or threatened before any court or quasi-judicial or
administrative agency of any federal, state, local, or foreign jurisdiction or
before any arbitrator wherein an unfavorable injunction, judgment, order,
decree, ruling, or charge would (A) prevent consummation of any of the
transactions contemplated by this Agreement, (B) cause any of the transactions
contemplated by this Agreement to be rescinded following consummation, (C)
affect adversely the right of the Buyer to own the Acquired Assets or to operate
the former businesses of the Seller;

	 	        (v)
the Seller shall have delivered to the Buyer a certificate to the effect that
each of the conditions specified above in Section 6(a)(i)-(iv) is satisfied in
all respects;

	 	        (vi)
the Buyer and the Seller shall have received all other authorizations, consents,
and approvals of governments and governmental agencies referred to in Section
3(c) and Section 4(c) above;

	 	        (vii)
the Buyer shall have received from counsel to the Seller and from Greenberg
Traurig opinions in form and substance reasonably acceptable to Buyer and its
counsel, addressed to the Buyer, and dated as of the Closing Date;

	 	        (viii)
all actions to be taken by the Seller in connection with consummation of the
transactions contemplated hereby and all certificates, opinions, instruments,
and other documents required to effect the transactions contemplated hereby will
be reasonably satisfactory in form and substance to the Buyer;

	 	        (ix) the Seller
shall not have suffered any material damage,  destruction or loss (whether or not
covered by insurance) to its property;

	 	        (x)
delivery to Buyer of the consent of the Board of Directors and shareholders of
Seller approving and authorizing the sale in accordance with Section 607.1202,
Florida Statutes; and

	 	        (xi)
delivery of Seller’s balance sheet compiled as of the Closing Date by
Seller’s external auditors in accordance with GAAP and in accordance with
the provisions of this Agreement, and approved by Buyer under advise of its
external auditors, whereby such Closing Date balance sheet shall be used to
determine the Book Value of Seller and the Purchase Price.

The Buyer may waive any
condition specified in this Section 6(a) if it executes a writing so stating at
or prior to the Closing. 

        (b)
Conditions to Obligation of the Seller. The obligation of the Seller to
consummate the transactions to be performed by it in connection with the Closing
is subject to satisfaction of the following conditions: 

	 	        (i) the representations
and warranties set forth in  Section 4 above  shall be true and  correct  in all
material respects at and as of the Closing Date;

	 	        (ii) the Buyer shall
have  performed  and  complied  with all of its  covenants  hereunder  in all  material
respects through the Closing;

	 	        (iii)
no action, suit, or proceeding shall be pending or threatened before any court
or quasi-judicial or administrative agency of any federal, state, local, or
foreign jurisdiction or before any arbitrator wherein an unfavorable injunction,
judgment, order, decree, ruling, or charge would (A) prevent consummation of any
of the transactions contemplated by this Agreement or (B) cause any of the
transactions contemplated by this Agreement to be rescinded following
consummation (and no such injunction, judgment, order, decree, ruling, or charge
shall be in effect);

	 	        (iv)
the Buyer shall have delivered to the Seller a certificate to the effect that
each of the conditions specified above in Section 6(b)(i)-(iii) is satisfied in
all respects;

	 	        (v)
the Buyer and the Seller shall have received all other authorizations, consents,
and approvals of governments and governmental agencies referred to in Section
3(c) and Section 4(c) above;

	 	        (vi) the Seller shall
have received from counsel to the Buyer an opinion in form and
substance reasonably acceptable to Seller and Seller’s counsel, addressed
to the Seller, and dated as of the Closing Date; and

	 	        (vii) all actions
to be taken by the Buyer in connection with consummation of the
transactions contemplated hereby and all certificates, opinions, instruments,
and other documents required to effect the transactions contemplated hereby will
be reasonably satisfactory in form and substance to the Seller;

	 	        (viii) there shall
have been no material adverse change in the condition (financial or
otherwise), properties, assets, liabilities, operations, business or prospects
of Buyer;

	 	        (ix) delivery of
Buyer’s balance sheet compiled as of the Closing Date by
Buyer’s external auditors in accordance with GAAP and in accordance with
the provisions of this Agreement, and approved by Seller under advise of these
external auditors, whereby such Closing Date balance sheet shall be used to
determine the Book Value of the Buyer;

	 	        (x) Seller shall
have received the opinion of an investment banker, in form and
substance satisfactory to Seller to the effect that the Purchase Price
constitutes fair consideration to Seller in connection with the transactions
contemplated this Agreement; and

	 	        (xi)
Seller shall be permitted to surrender to the Florida Department of Banking and
Finance Seller’s banking charter so that the Seller and the Shareholder
shall no longer be a bank and a bank holding company, respectively, and all
agreements entered into by and between the Seller, the Shareholder and some or
all of the Shareholder’s shareholders as listed on the Disclosure Schedule.

The Seller may waive any
condition specified in this Section 6(b) if it executes a writing so stating at
or prior to the Closing. 

        7.
Indemnification by Seller and Shareholder Seller and the Shareholder
jointly and severally, will indemnify and hold harmless Buyer in respect of any
and all damages resulting from or relating to any breach by Seller of any
representation, warranty, covenant or agreement made by it in this Agreement or
in any certificate delivered by Seller in connection with this Agreement;
provided that indemnification with respect to the breach of a representation or
warranty shall be limited as provided in Section 15(b) below. 

        8.
Indemnification by Buyer. Buyer will indemnify and hold harmless Seller
in respect of any and all damages resulting from or relating to any breach by
Buyer of any representation, warranty, covenant, or agreement made by it in this
Agreement or any certificate delivered by Buyer in connection with this
Agreement; provided that indemnification with respect to the breach of a
representation or warranty shall be limited as provided in Section 15(b) below. 

        9.
Threshold. As to any Liability or Damages for which Seller or the
Shareholder, on the one hand, or Buyer, as on the other hand, is obligated to
provide indemnification, there shall be excluded the first Fifty Thousand
Dollars ($50,000) of such Liability or damages in the aggregate for all matters
that the Buyer or the Seller, as the case may be, would be entitled to
indemnification under this Agreement. 

        10. Indemnification Procedures.

        (a)
If a Party becomes aware of any matter that it believes is indemnifiable (the
“Indemnitee”) by the other Party hereto, including, as the case may
be, the Shareholder (the “Indemnifying Party”) and such matter
involves (i) any claim made against the Indemnitee by any Person or entity other
than a Party or (ii) the commencement of any action, suit, investigation,
arbitration, or similar proceeding against the Indemnitee by any Person other
than a Party, the Indemnitee will give the Indemnifying Party prompt written
notice of such claim or the commencement of such action, suit, investigation,
arbitration, or similar proceeding. Such notice will (i) provide (with
reasonable specificity) the basis on which indemnification is being asserted,
(ii) set forth the actual or estimated amount of damages for which
indemnification is being asserted, if known, and (iii) be accompanied by copies
of all relevant pleadings, demands, and other papers served on the Indemnitee.
The failure to provide the notice promptly will not relieve the Indemnifying
Party of its obligations under this Section 10 except to the extent of any
damages that would not have been incurred if the notice had been given promptly. 

        (b)
The Indemnifying Party will have a period of 30 days after the delivery of each
notice required by Section 10(a) hereof during which to respond to such notice.
If the Indemnifying Party elects to defend the claim described in such notice
within such 30-day period, the Indemnifying Party will be obligated to settle or
defend such claim, at its own expense and by counsel chosen by the Indemnifying
Party and reasonably satisfactory to the Indemnitee. The Indemnitee will
cooperate fully with the Indemnifying Party and counsel for the Indemnifying
Party in the defense against any such claim, and the Indemnitee will have the
right to participate at its own expense in the defense of any such claim. If the
Indemnifying Party responds within such 30-day period and elects not to defend
such claim, or does not respond within such 30-day period, the Indemnitee will
be free to settle or defend (and control the defense of) such claim and to
pursue such remedies as may be available to the Indemnitee under applicable Law.
The Indemnitee’s settlement or defense will not relieve the Indemnifying
Party of its obligations under this Section 10. 

        (c)
Any settlement of any claim (whether defended by the Indemnitee or by the
Indemnifying Party) will require the prior written consent of the Indemnitee and
the Indemnifying Party (which consent will not be unreasonably withheld). If,
however, the Indemnitee refuses to consent to a reasonable and bona fide offer
of settlement involving solely the payment of money that the Indemnifying Party
desires to accept, the Indemnitee may continue to pursue such claim, free of any
participation by the Indemnifying Party, at the sole expense of the Indemnitee
for the period continued by the Indemnitee. In such event, the obligation of the
Indemnifying Party to the Indemnitee will equal the amount of the offer of
settlement that the Indemnifying Party desired to accept, plus the
reasonable out-of-pocket expenses (except for expenses resulting from the
Indemnitee’s participation in any defense controlled by the Indemnifying
Party) and other damages incurred by the Indemnitee before the Indemnitee
refused to accept the offer of settlement and any damages incurred after the
refusal to the extent they would have been covered by the indemnification in
this Section 10 if the Indemnitee had not refused to accept the settlement. 

        (d)
If an Indemnitee becomes aware of any matter that it believes is indemnifiable,
the Indemnitee will give the Indemnifying Party prompt written notice of such
claim. Such notice will (i) provide (with reasonable specificity) the basis for
which indemnification is being asserted and (ii) set forth the actual or
estimated amount of damages for which indemnification is being asserted. The
failure to provide the notice promptly will not relieve the Indemnifying Party
of its obligations under this Section 10 except to the extent any Damages that
would not have been incurred if the notice had been given promptly. The
Indemnifying Party will have a period of 30 days after the delivery of each
notice required by this Section 10 during which to respond to such notice. If
the Indemnifying Party accepts (in writing) full responsibility for the claim
described in such notice, the actual or estimated amount of Damages reflected in
such notice will be conclusively deemed a Liability that the Indemnifying Party
owes, and will pay (in cash) upon demand, to the Indemnitee. If the Indemnifying
Party has disputed such claim or does not respond within such 30-day period, the
Indemnifying Party and the Indemnitee agree to proceed in good faith to
negotiate a resolution of such dispute. If all such disputes are not resolved
through negotiations within 30 days after such negotiations begin, either the
Indemnifying Party or the Indemnitee may initiate litigation to resolve such
disputes. If the Indemnifying Party does not respond within 30 days after
delivery of any claim notice required by this Section 10, the Indemnitee may
initiate litigation to resolve such claim. 

        11.
Procedures Relating to Tax Indemnification. If a claim shall be made by
any taxing authority, or the party receiving notice of such claim shall promptly
notify the other party in writing of such claim (a “Tax Claim”). If
notice of a Tax Claim is not given to the Indemnifying Party promptly after
receipt of correspondence from any taxing authority requesting audit
adjustments, or in reasonable detail to apprise the Indemnifying Party of the
nature of the Tax Claim, in each case taking into account the facts and
circumstances with respect to such Tax Claim, such failure to provide notice
promptly will not relieve the Indemnifying Party of its obligations under this
Section 11 except and to the extent that the failure to timely notify actually
prejudices the Indemnifying Party’s ability to contest such Tax Claim. 

        With
respect to any Tax Claim, the Indemnifying Party may control all proceedings
taken solely in connection with such Tax Claim (including, without limitation,
selection of and payment for counsel reasonably acceptable to Indemnitee) and,
without limiting the foregoing, may in its sole discretion pursue or forego any
and all administrative appeals, proceedings, hearings and conferences with any
taxing authority with respect thereto, and may, in its sole discretion, either
pay the Tax claimed and sue for a refund where applicable Law permits such
refund suits or contest the Tax Claim in any permissible manner;
provided, however, that if (i) the results of such proceedings,
suit, contest, claim, hearing, compromise or proposed settlement could
reasonably be expected to have a material adverse effect on the assets,
business, operations or financial condition of the Indemnitee or its ability to
treat any income or losses in a particular manner for tax calculation purposes
for taxable periods ending after the Closing Date or (ii) any such proceedings,
suit, contest, claim, hearing, compromise or proposed settlement or procedure
involves Taxes other than Taxes subject to indemnification, the parties hereto
shall consult and mutually agree on a reasonable good faith basis upon all
aspects of the conduct of such matters. The Indemnitee and the Indemnifying
Party shall cooperate in contesting any Tax Claim, which cooperation shall
include, without limitation, the retention and the provision to the Indemnifying
Party of records and information which are reasonably relevant to such Tax
Claim, and making employees available on a mutually convenient basis to provide
additional information or explanation of any material provided hereunder or to
testify at proceedings relating to such Tax Claim. In no case shall the
Indemnitee settle or otherwise compromise any Tax Claim without the Indemnifying
Party’s prior written consent, which shall not be unreasonably withheld. 

        12.
Tax Indemnity. Subject to the provisions of Section 9, the Seller or the
Shareholder, jointly and severally, shall indemnify, save and hold harmless
Buyer and Buyer shall indemnify, save and hold harmless Seller from and against
any and all Damages incurred in connection with, arising out of, resulting from
or incident to (a) any Taxes with respect to any Tax year or portion thereof
ending on or before the Closing Date (or for any Tax year beginning before and
ending after the Closing Date to the extent allocable (as determined in the
following sentence) to the portion of such period beginning before and ending on
the Closing Date), and (b) for the unpaid Taxes of any person under Treasury
Regulations § 1.1502-6 (or any similar provision of state, local or foreign
law), as a transferee or successor, by contract, or otherwise. For purposes of
the preceding sentence, in the case of any Taxes that are imposed on a periodic
basis and are payable for a Tax period that includes (but does not end on) the
Closing Date, the portion of such Tax that relates to the portion of such Tax
period ending on the Closing Date shall (i) in the case of any Taxes other than
Taxes based upon or related to income or receipts, be deemed to be the amount of
such Tax for the entire Tax period multiplied by a fraction the numerator of
which is the number of days in the Tax period ending on the Closing Date and the
denominator of which is the number of days in the entire Tax period, and (ii) in
the case of any Tax based upon or related to income or receipts, be deemed equal
to the amount which would by payable if the relevant Tax period ended on the
Closing Date. 

        13.  Indemnification Payments.
The Indemnifying Party agrees that any payment required to be made under Sections 10
or 11 will be paid within ten (10) days after receipt of written request.

        14. Termination.

        (a) Termination of Agreement.
The Parties may terminate this Agreement as provided below:

	 	        (i) the Buyer and
the Seller may terminate  this  Agreement by mutual  written  consent at any time prior to
the Closing;

	 	        (ii)
either Buyer or Seller may terminate this Agreement if the conditions set forth
at paragraphs 6(a)(vi) and 6(b)(v) have not been satisfied by the
180th day following the date hereof;

	 	        (iii)
the Buyer may terminate this Agreement by giving written notice to the Seller at
any time prior to the Closing (A) in the event the Seller has breached any
material representation, warranty, or covenant contained in this Agreement in
any material respect, the Buyer has notified the Seller of the breach, and the
breach has continued without cure for a period of ten (10) days after the notice
of breach or (B) if the Closing shall not have occurred on or before the Closing
Date, by reason of the failure of any condition precedent under Section 6(a)
hereof (unless the failure results primarily from the Buyer itself breaching any
representation, warranty, or covenant contained in this Agreement); and

	 	        (iv)
the Seller may terminate this Agreement by giving written notice to the Buyer at
any time prior to the Closing (A) in the event the Buyer has breached any
material representation, warranty, or covenant contained in this Agreement in
any material respect, the Seller has notified the Buyer of the breach, and the
breach has continued without cure for a period of ten (10) days after the notice
of breach or (B) if the Closing shall not have occurred on or before the Closing
Date, by reason of the failure of any condition precedent under Section 6(b)
hereof (unless the failure results primarily from the Seller itself breaching
any representation, warranty, or covenant contained in this Agreement).

        (b)
Effect of Termination. Except as otherwise provided herein, if any Party
terminates this Agreement pursuant to Section 14(a) above, all rights and
obligations of the Parties hereunder shall terminate without any Liability of
any Party to any other Party (except for any Liability of any Party then in
breach). 

        (c)
Break Up Fee. In the event that after the signing of this Agreement the
transaction is not closed by the Closing Date for any reason, including the
failure of any condition precedent to Buyer’s obligations, or Buyer elects
not to or is unable to consummate the transaction, the Seller shall be entitled
to collect from the Buyer a breakup fee of $100,000.00, provided, however, no
such fee shall be due if the failure to close the transaction is due to the
actions of Seller in contravention of this Agreement. 

        (d)
Seller’s Default. In the event this transaction fails to close by
reason of a breach of this Agreement by Seller, the Buyer’s remedies are
limited to either: (i) specific performance or (ii) an amount equal to
Buyer’s reasonable out-of-pocket expenses in connection with this
transaction not to exceed One Hundred Thousand Dollars ($100,000.00) 

        15. Miscellaneous.

        (a)
Change of Name. Buyer may on or after the Closing Date, take any action
that is necessary to change its name to “PanAmerican Bank” and Seller
shall take action to change its name from “PanAmerican Bank.” 

        (b)
Survival of Representations and Warranties. All of the representations
and warranties of the Parties contained in this Agreement shall survive the
Closing hereunder for a period of one year after the Closing Date. No claim for
the recovery of any damages as a result of the breach of a representation or
warranty may be asserted by any Party after such one-year period has expired;
provided, however, that claims for damages resulting from a breach of a
representation or warranty first asserted within such one period shall not
thereafter be barred. 

        (c)
Press Releases and Public Announcements. No Party shall issue any press
release or make any public announcement relating to the subject matter of this
Agreement without the prior written approval of the other Party; provided,
however, that any Party may make any public disclosure it believes in good
faith is required by applicable law or any listing or trading agreement
concerning its publicly-traded securities (in which case the disclosing Party
will use its best efforts to advise the other Party prior to making the
disclosure). 

        (d)
No Third-Party Beneficiaries. This Agreement shall not confer any rights
or remedies upon any Person other than the Parties and their respective
successors and permitted assigns. 

        (e)
Entire Agreement. This Agreement (including the documents referred to
herein) constitutes the entire agreement between the Parties and supersedes any
prior understandings, agreements, or representations by or between the Parties,
written or oral, to the extent they related in any way to the subject matter
hereof. 

        (f)
Succession and Assignment. This Agreement shall be binding upon and inure
to the benefit of the Parties named herein and their respective successors and
permitted assigns. No Party may assign either this Agreement or any of its
rights, interests, or obligations hereunder without the prior written approval
of the other Party; provided, however, that the Buyer may (i) assign any
or all of its rights and interests hereunder to one or more of its Affiliates
and (ii) designate one or more of its Affiliates to perform its obligations
hereunder (in any or all of which cases the Buyer nonetheless shall remain
responsible for the performance of all of its obligations hereunder). 

        (g)
Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original but all of which together will
constitute one and the same instrument. 

        (h)
Headings. The section headings contained in this Agreement are inserted
for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement. 

        (i)
Notices. All notices, requests, demands, claims, and other communications
hereunder will be in writing. Any notice, request, demand, claim, or other
communication hereunder shall be deemed duly given if (and then three business
days after) it is sent by registered or certified mail, return receipt
requested, postage prepaid, and addressed to the intended recipient as set forth
below: 

	 	If to the Seller:	Mr. Manuel Alvarez
President
PanAmerican Bank
2770 SW 27th Ave.

Miami, Florida 33133

	 	Copies to:	Rene V. Murai, Esq. and M. Cristina Moreno, Esq.
Murai, Wald, Biondo & Moreno

25 S.E. 2nd Ave., Suite 900
Miami, Florida 33131

	 	If to the Buyer:	Harold L. Connell
President
Southern Security Bank Corporation

1000 Brickell Ave., Suite 900
Miami, Florida 33131

	 	Copy to:	William L. Rafferty, Jr., Esq.

Rafferty, Gutierrez, Sanchez-Aballi, Stolzenberg & Gelles, P.A.

1101 Brickell Ave, Suite 1400
Miami, Florida 33131

Any Party may send any
notice, request, demand, claim, or other communication hereunder to the intended
recipient at the address set forth above using any other means (including
personal delivery, expedited courier, messenger service, ordinary mail, or
electronic mail), but no such notice, request, demand, claim, or other
communication shall be deemed to have been duly given unless and until it
actually is received by the intended recipient. Any Party may change the address
to which notices, requests, demands, claims, and other communications hereunder
are to be delivered by giving the other Party notice in the manner herein set
forth. 

        (j)
Governing Law. This Agreement shall be governed by and construed in
accordance with the domestic laws of the State of Florida without giving effect
to any choice or conflict of law provision or rule (whether of the State of
Florida or any other jurisdiction) that would cause the application of the laws
of any jurisdiction other than the State of Florida. 

        (k)
Amendments and Waivers. No amendment of any provision of this Agreement
shall be valid unless the same shall be in writing and signed by the Buyer and
the Seller. The Seller may consent to any such amendment at any time prior to
the Closing with the prior authorization of its board of directors. No waiver by
any Party of any default, misrepresentation, or breach of warranty or covenant
hereunder, whether intentional or not, shall be deemed to extend to any prior or
subsequent default, misrepresentation, or breach of warranty or covenant
hereunder or affect in any way any rights arising by virtue of any prior or
subsequent such occurrence. 

        (l)
Severability. Any term or provision of this Agreement that is invalid or
unenforceable in any situation in any jurisdiction shall not affect the validity
or enforceability of the remaining terms and provisions hereof or the validity
or enforceability of the offending term or provision in any other situation or
in any other jurisdiction. 

        (m)
Expenses. Each of the Buyer, the Seller, and the Shareholder will bear
its own costs and expenses (including legal fees and expenses) incurred in
connection with this Agreement and the transactions contemplated hereby. 

        (n)
Construction. The Parties have participated jointly in the negotiation
and drafting of this Agreement. In the event an ambiguity or question of intent
or interpretation arises, this Agreement shall be construed as if drafted
jointly by the Parties and no presumption or burden of proof shall arise
favoring or disfavoring any Party by virtue of the authorship of any of the
provisions of this Agreement. Any reference to any federal, state, local, or
foreign statute or law shall be deemed also to refer to all rules and
regulations promulgated thereunder, unless the context requires otherwise. The
word “including” shall mean including without limitation. The Parties
intend that each representation, warranty, and covenant contained herein shall
have independent significance. If any Party has breached any representation,
warranty, or covenant contained herein in any respect, the fact that there
exists another representation, warranty, or covenant relating to the same
subject matter (regardless of the relative levels of specificity) which the
Party has not breached shall not detract from or mitigate the fact that the
Party is in breach of the first representation, warranty, or covenant. 

        (o)
Incorporation of Exhibits and Schedules. The Exhibits and Schedules
identified in this Agreement are incorporated herein by reference and made a
part hereof. 

        (p)
Specific Performance. Each of the Parties acknowledges and agrees that
the other Party would be damaged irreparably in the event any of the provisions
of this Agreement are not performed in accordance with their specific terms or
otherwise are breached. Accordingly, each of the Parties agrees that the other
Party shall be entitled to an injunction or injunctions to prevent breaches of
the provisions of this Agreement and to enforce specifically this Agreement and
the terms and provisions hereof in any action instituted in any court of the
United States or any state thereof having jurisdiction over the Parties and the
matter, subject to the provisions set forth in Section 15(q) below, in addition
to any other remedy to which it may be entitled, at law or in equity. 

        (q)
Submission to Jurisdiction. Each of the Parties submits to the
jurisdiction of any state or federal court sitting in Miami-Dade County,
Florida, in any action or proceeding arising out of or relating to this
Agreement and agrees that all claims in respect of the action or proceeding may
be heard and determined in any such court. Each Party also agrees not to bring
any action or proceeding arising out of or relating to this Agreement in any
other court. Each of the Parties waives any defense of inconvenient forum to the
maintenance of any action or proceeding so brought and waives any bond, surety,
or other security that might be required of any other Party with respect
thereto. Any Party may make service on the other Party by sending or delivering
a copy of the process to the Party to be served at the address and in the manner
provided for the giving of notices in Section 15(i) above . Nothing in this
Section 15(q), however, shall affect the right of any Party to serve legal
process in any other manner permitted by law or in equity. Each Party agrees
that a final judgment in any action or proceeding so brought shall be conclusive
and may be enforced by suit on the judgment or in any other manner provided by
law or in equity. 

        (r)
Confidentiality. Without the express written consent of all of the
Parties, each of the Parties agrees to maintain in confidence and not disclose
to any other Person the terms of the transactions contemplated hereby or the
information delivered in connection with the proposed due diligence
investigation, other than disclosures required to obtain the approvals for the
transactions contemplated hereby, disclosures to those professionals and
advisors who have a need to know, disclosures of information already available
to the public or any other disclosures required by applicable law. In the event
that the Buyer or Seller is at any time requested or required (by oral
questions, interrogatories, request for information or documents, subpoena or
other similar process) to disclose any information supplied to it in connection
with this transaction, such Party agrees to provide the other Party prompt
notice of such request so that an appropriate protective order may be sought
and/or such other Party may waive the first Party’s compliance with the
terms of this Section 15(r). For purposes of this Section 15(r), Party and
Parties shall include each of the Shareholders. 

        (s)
Fraudulent Transfer Laws. The Buyer acknowledges that the Seller will not
comply with the provisions of any transfer laws of any jurisdiction in
connection with the transactions contemplated by this Agreement. Seller
acknowledges that the subject transaction will not in any manner violate the
terms of the Florida Fraudulent Transfer Act. Seller shall indemnify and hold
Buyer harmless from any and all Liabilities resulting from noncompliance with
the Florida Fraudulent Transfer Act, including, but not limited to, all costs
and expenses incurred in connection with the defense or settlement of any such
Liability or obligations. 

        (t)
Third Parties. Nothing in this Agreement, expressed or implied, is
intended to confer upon any person, other than the parties hereto and their
successors and permitted assigns, any rights or remedies under or by reason of
this Agreement. 

        (u) Registration.
If at any time while Seller holds any of Buyer's common shares, Buyer takes action to register
any of its shares under the Securities Act of 1933, as amended, or any similar federal statute, Buyer shall give Seller prompt
written notice of its intended action.  If registration of any such securities held by Seller is then possible under applicable laws,
regulations, and practices of the Securities and Exchange Commission or other appropriate governmental agency and Seller within 15
days after receipt of any such notice requests Buyer to do so, Buyer shall, at its expense, take action to register the Seller's
shares at the same time and use its best efforts to the end that such registration shall become effective.

        (v)
Directors. SSBC will recommend and will use its best efforts to obtain
the nomination and election of Mr. Luis Ortega to its board of directors and
(ii) an individual suggested by Mr. Luis Ortega to the board of directors of
Southern Security Bank. This provision shall survive the closing of this
transaction. 

*****

IN WITNESS WHEREOF, the
Parties hereto have executed this Agreement as of the date first above written. 

	 	SELLER:

PANAMERICAN BANK

By: ______________________________________

Title: _____________________________________

	 	BUYER:

SOUTHERN SECURITY BANK CORPORATION

By: ______________________________________

Title: _____________________________________

	 	SOUTHERN SECURITY BANK

By: ______________________________________

Title: _____________________________________

The undersigned Shareholder has executed this Agreement solely for the purposes of agreeing to be bound by the provisions of Sections
7, 9, 10, 11, 12, 13, 15(m) and 15(r) and no other.

	 	SHAREHOLDER:

INTERBANK HOLDING CORP.

By: ______________________________________

Print Name: ________________________________

Title: _____________________________________

DISCLOSURE SCHEDULES

These Disclosure
Schedules are delivered by PanAmerican Bank (the “Seller”) to Southern
Security Bank Corp. and Southern Security Bank (collectively the
“Buyer”), as required by the Asset Purchase Agreement dated as of May
15, 2001 by and between the Seller and the Buyer. 

Schedule 1

The Seller does not have any Intellectual Property.

Schedule 3(h)(v)

Seller purchased the Treev
Optical System including software upgrade, computer and installation which was
paid for February, 2001 for a cost of $30,157.49. System is used to look up
images of checks and other items processed. The system was purchase in October
2000, installed in December 2000 and billed in January 2001. 

Schedule 3(h)(viii)

In 1995 Max Barnes signed
contract with Thompson Financial Publishing for advertisement and purchasing of
certain books. Last year, PanAmerican attempted to negotiate a deal to terminate
this agreement and pay Thompson a termination fee. Thompson is claiming that the
contracts are still valid and PanAmerican is liable to them for $3,861.10. 

Schedule 3(j)

        The
Seller, during the period covered by the most recent audit by the Federal
Reserve Bank of Atlanta: 

	 	(i)	has exceeded the limitation on the purchase of
federal funds from any one institution; and

	 	(ii)	
may have failed to advise the shareholders of the Shareholder of their
obligations to file a report on indebtedness to correspondent banks.

        Both
of these items could be violations of the Written Agreement by and among Seller,
Federal Reserve Bank of Atlanta and Department of Banking and Finance, Division
of Banking, state of Florida dated January 13, 1997. 

Schedule 3(k)

Federal and Florida income Tax Returns were filed for the Seller as follows:

	 	Year End 12/31/98	Filed on September 17, 1999
	 	Year End 12/31/99	Filed on September 7, 2000
	 	Year End 12/31/00	Extension Filed on March 15, 2001

There are no foreign income taxes applicable for Year End 12/31/98, 12/31/99 and 12/31/00.

Schedule 3(l)(i)

The Seller owns property located at 2770 SW 27 Avenue, 2711-2713 SW 27 Terrace, 2727-2729 SW 27 Terrace, Miami-Dade County, Florida
33133 (title policy attached).

Schedule 3(o)(i)

Seller has a Cannon Copier that it has leased from Danka Industries.  Seller has notified Danka that the lease on this copier has
expired but they have failed to come get the copier so Seller continues using the copier.  If the lease is renewed the monthly lease
payment is $262.85.

Schedule 3(o)(ii)

1.     Supreme Courier Service supplies Seller with
courier services and is paid on a monthly basis.

2.     Subscription Agreement between Seller and
Bankers System, Inc. for computer software.

3.     Maintenance Agreement between Seller and
Diebold, Inc. for service to the Alarm system used in the vault and the ATM machine.

4.     A&C Cleaning Services provides Seller with
cleaning services and is paid on a monthly basis.

5.     Iron Mountain provides Seller with storage
space and boxes and is paid on a quarterly basis.

6.     Arrowmail Presort Co. provides Seller with
sorting, stamping and mailing services and is paid on a monthly basis.

7.     Cais Internet is the Seller's Internet service
provider and is paid on a monthly basis.

8.     Seller also has various agreements for bottled
water, office supplies, rug cleaning, waste pickup, paper shredder, and
subscription agreements for computer software all of which are for a period of
one year or less and involve consideration of less than $5,000.

Schedule 3(o)(vii)

1.     Data Processing Services Agreement between
Seller and Jack Henry and Associates, Inc. dated October 20, 2000.

2.     Employment Agreement between Seller and Manuel
A. Alvarez dated March 4, 1997 as amended on November 6, 1998.

3.     Agreements with customers who have purchased
certificates of deposits of participations in the same and as to which the
Seller acts as custodian.

4.     Car Paper Broker Agreement between Seller and
RC Premier, Inc.

5.     Retainer Agreement between Seller and the law
firm of Murai Wald Biondo & Moreno, P.A.

6.     Agreement between Seller and the accounting
firm of Morrison, Brown, Argiz and Company to perform the Seller's internal and
external audits.

7.     Insurance Policies with Kahn Carlin and HRH Insurance

8.     Severance Pay Agreement between Seller and Doug Cutchens.

9.     Servicing Agreement between Seller and Shay
Financial Services, Inc. dated August 1, 2000.

10.     Mortgage Loan Participation Agreement between
Seller and Gibraltar Bank, FSB dated October 15, 1996 and September 30, 1996. 

11.     Participation Agreements with other banks in
the ordinary Course of Business.

12.     Loan Service Agreement between Seller and
National Title Insurance Company dated December 7, 1993.

13.     Loan Service Agreement  between Seller and Beach Bank.

14.     Obligations under loan commitments to make
loans in the ordinary Course of Business.

15.     Commission Agreement between Seller and Jose
Chaoui entered into in April 2000.

16.     Severance Agreement between Seller and Donato
Marmol entered into in August 2000.

17.     Month to month compliance consultant agreement
with J.A.G. Financial Consultants, Inc.

Schedule 3(p)

PanAmerican claims that Shay Financial Services, Inc. owes them two receivables
in the amount of $3,000 and $5,400. Shay is disputing these amounts.

Schedule 3(s)

1.     Written Agreement by and among Seller, Federal
Reserve Bank of Atlanta and Department of Banking and Finance, Division of
Banking, state of Florida dated January 13, 1997.

2.     First Security Bank of New Mexico v.
PanAmerican Bank et. al., United States District Court for the District of
New Mexico, Case No. 94-1464.

        In
August of 1994, CIC Capital (“CIC”), as agent for Banco Continental
Overseas N.V. (“BCO”), requested that PanAmerican Bank, as custodian,
transfer to First Security Bank of New Mexico (“First Security”) the
sum of $495,000 for the purchase, for BCO, of a First Security certificate of
deposit. 

        CIC
dealt with Beatrice Stonebanks (“Stonebanks”), an alleged broker for
First Security. Stonebanks was associated with a brokerage firm by the name of
Benjamin Maxwell Corp. (“Maxwell”). After the funds were transferred
by PanAmerican, it was learned that the instructions and directions concerning
the wire transfer, which were ostensibly given on behalf of a Delores M. Jones,
an officer at First Security, were fraudulent and the account to which the funds
were actually transferred was not an account of First Security but rather an
account of Maxwell at First Security. 

        Because
there were certain funds still in the account of Maxwell at First Security,
First Security filed an interpleader action naming PanAmerican, as well as other
potential claimants, as defendants in order to determine the entitlement of the
various parties to those funds. PanAmerican in turn filed a counterclaim against
First Security for recovery of the funds transferred, as well as an action
against Maxwell and Stonebanks. The action against First Security was based on
PanAmerican’s position that First Security improperly credited the wired
funds to the account of Maxwell, because the wire instructions indicated that
the beneficiary of the funds was First Security and not Maxwell. 

        PanAmerican
was the named party to this action because, in its capacity as custodian of BCO,
PanAmerican was the remitter of the funds. The Bank, therefore, was prosecuting
this action for the recovery of funds belonging to its customer, BCO. 

        Pursuant to a partial
settlement with regards to the funds, the Bank recovered $71,452.90. Following a
trial last month, the Court entered a judgment against the Bank denying
recovery. It appears that this is the end of the case as no appeal will be taken
from this judgment.

3.     PanAmerican Bank vs.
PanAmerican Bank, in the United States Patent and Trademark Office before
the Trademark Trial and Appeal Board, Cancellation No. 25,635. In 1998, a bank
with principal offices in California named also PanAmerican Bank filed a
petition with the United States Trial and Appeal Board alleging that it had been
using the name PanAmerican Bank prior to the time that the Bank registered
PanAmerican Bank as a trademark. The petitioner sought cancellation of the
trademark. No money damages are sought by the petition. Both Banks had
preliminary settlement talks but no agreements were reached. The Bank filed an
Answer contesting the action. On December 20, 2000, the United States Patent and
Trademark Office entered an order approving the parties’ request for
suspension of proceedings for 120 days. 

4.     PanAmerican Bank v. Davy International,
Inc., Eleventh Judicial Circuit Court in and for Miami-Dade County, Florida,
Case No. 00-15908 CA 30. The Bank filed suit against Davy International ("Davy")
based upon Davy's breach of a Promissory Note and Workout Agreement. The
principal amount owed is approximately $700,000. It appears that Davy is no
longer in business. The Bank has decided to discontinue this action as a result.

5.     OCWEN Federal Bank, FSB v. PanAmerican Bank,
et al., Eleventh Judicial Circuit Court in and for
Miami-Dade County, Florida, Case No. 00-18389 CA 24. On or about July, 2000,
this action was filed against several defendants alleging various claims,
including a claim to re-establish a lost Promissory Note, breach of a Promissory
Note and mortgage foreclosure. The Bank has been joined as a Defendant in this
action because the Bank holds a first mortgage on the underlying property which
is the subject of the lawsuit. The Plaintiff claims that its mortgage is
superior to the Bank’s. The Bank’s mortgage had been insured under a
loan title insurance policy issued by Commonwealth Land Title Insurance Company.
Because the Bank’s mortgage was insured by said title company, the Bank
does not expect to incur any loss in this action. The law firm of Rollnick &
Linden, P.A. is representing the Bank in this action and we refer you to said
firm for further information regarding this action. 

6.     Leonidas Ortega, et al. v. Banco Central,
et al., United States District Court, Southern District of Florida, Civil
Case No. 98-0373-CIV-KING. In 1998, the Bank was named a defendant in a
counterclaim filed by Banco Central del Ecuador in the above styled action. The
law firm of Greenberg Traurig, in Miami, Florida, is representing the Bank in
said action and we refer you to said firm for information regarding the
action.

Schedule 6(b)(xi)

1.     Written Agreement disclosed in Schedule 3(s).

2.     Written Agreement by and among Luis A. Ortega,
the Shareholder, Federal Reserve Bank of Atlanta and Department of Banking
and Finance, Division of Banking, state of Florida dated March 6, 1997.

3.     Commitments of the
Shareholder and the Shareholder’s shareholders described in letter dated
December 24, 1991 from the Board of Governors of the Federal Reserve System to
Gerri Dolan of Deloitte and Touche.Exhibit 10.1

                                                                 16 May 2001

                             WITHOUT PREJUDICE
                            SUBJECT TO CONTRACT

John Charman

BY HAND

Dear John,

Compromise Agreement

I am writing to set out the terms relating to the termination of your
employment with ACE London Services Limited (the "Company") on 17 March
2001 (the "Termination Date").

1.       The Company confirms that you have been paid your basic salary and
         have received your other contractual benefits (including pension
         contributions) up to and including the Termination Date. Your P45
         form and final payslip were sent to you on 5 April 2001.

2.       You will be reimbursed all expenses incurred in the performance
         of your duties in accordance with normal policy.

3.       On receipt by Allen & Overy, for and on behalf of the Company,
         of your signed acceptance of these terms and a letter from your
         solicitor to us in the form attached as Appendix 1 you will
         receive a payment from the Company by direct credit into your bank
         account of (pound)3,597,241 ("the Notice Payment"), as a payment in
         lieu of notice, pursuant to your Service Agreement dated 9 July
         1998 ("the Service Agreement"). Tax will be deducted from the
         Notice Payment at UK basic rate only, the P45 form having been
         delivered. You acknowledge that the Notice Payment must be
         declared in full in your tax return and that any further tax that
         may be due on the Notice Payment will be payable by you. You
         undertake to indemnify the Company in respect of any additional
         tax for which the Company has to account in respect of these terms
         in accordance with paragraph 19 below.

4.       The Company will pay you the sum of (pound)51,700 as compensation
         for loss of employment ("the Compensation Payment" which together
         with the Notice Payment is referred to as "the Payment"). The
         first (pound)30,000 of the Compensation Payment will be paid to you
         tax free for the time being and tax will be deducted from the
         remainder of the Compensation Payment at UK basic rate only, the
         P45 form having been delivered. You acknowledge that the
         Compensation Payment must be declared in full in your tax return
         and that any further tax that may be due on the Compensation
         Payment will be payable by you. You undertake to indemnify the
         Company in respect of any additional tax for which the Company has
         to account in respect of these terms in accordance with paragraph
         19 below.

<PAGE>

5.       On receipt by Allen & Overy, for and on behalf of the Company,
         of your signed acceptance of these terms and a letter from your
         solicitor to us in the form attached as Appendix 1 the Company
         will make (subject always to Inland Revenue permitted limits and
         any restrictions imposed by the pension provider) a payment of up
         to (pound) 500,000 into the Company sponsored executive pension
         scheme for your benefit with Scottish Life Assurance (Members
         Policy No. E\628069 Scheme Ref. No. DPP-L/1190) and will provide
         you with simultaneous written confirmation of such payment. If the
         Company is unable to pay the full amount of (pound)500,000 into
         your personal pension plan, it shall pay the balance
         of (pound)500,000 by direct credit into your bank account after
         deduction of tax at UK basic rate only. Where payment is made to
         your bank account, you undertake to indemnify the Company in
         respect of any additional tax for which the Company has to account
         in respect of these terms in accordance with paragraph 19 below.

6.       The Company will continue the private healthcare cover for you
         and your family with BUPA until and including 30 April 2002 on the
         same basis as it did immediately prior to the Termination Date

7.       By signing the letter of even date attached as Appendix 2 you
         resign as a director and as a trustee and officer (with effect
         from the Termination Date) of each Group Company, including,
         without limitation, those listed in Appendix 2. In these terms
         "Group Company" means any one of the Company, its subsidiaries,
         ACE Limited and any subsidiary (as defined by section 736 of the
         Companies Act 1985) of ACE Limited and all ACE managed Lloyds'
         syndicates and any predecessor or incidental syndicates and "the
         Group" has the corresponding meaning.

8.       The Company will pay you forthwith the sum of (pound)8,300 as
         compensation for the personal items that were removed from your
         office and have not been replaced, provided that (1) you have
         notified the Police of the disappearance of these items prior to
         the date of this Agreement who have given the report a crime
         reference number and (2) you have provided to the Company a
         certified copy of a receipt confirming the identity and value of
         the said personal items in relation to the bracelets and in the
         case of the DVD player, evidence to show the cost of replacing the
         item. This sum is not subject to deduction of tax as it is not an
         emolument of your employment. It is further agreed that if payment
         of compensation has taken place and the items are subsequently

<PAGE>

         discovered by any person, they will belong to the Company and you
         will forthwith deliver the items to it, should they be located by
         or on your behalf. You further confirm that you have now retrieved
         all other valuable personal items from the Company and that you
         have no further claim to make in this regard. You are not aware of
         whether all personal documents have been returned to you. Should
         any personal documents belonging to you be recovered by the
         Company they will be returned to you forthwith.

9.       You confirm that you have returned to the Company all documents
         and computer disks and other media in your possession or provided
         to you or created in the course of your employment or your holding
         office with any Group Company or relating to, or containing
         information relating to, any Group Company, all credit or charge
         cards, keys, personal computers and all other property belonging
         to any Group Company in your possession, custody or control. You
         also confirm that you have not kept or made a copy of anything
         referred to in this paragraph.

10.      By entering into this Agreement, you affirm that Clauses 12 and
         14 of the Service Agreement shall remain in force and confirm that
         that you will continue to owe to the Company the obligations set
         out in those clauses and you abide by them in their entirety. As
         the "Restriction Period" as defined in clause 14 of your Service
         Agreement is for twelve months from the Termination Date, this
         "Restriction Period" shall expire on 16 March 2002, after which
         time clauses 14.2(a) and 14.2(b) of your Service Agreement shall
         no longer apply. You also confirm that you will abide by the
         obligations imposed upon you by the Deed of Covenant dated 9th
         July, 1998 between yourself, Tarquin Limited, Charman Group
         Limited, Tarquin Underwriters Limited, Charman Underwriting
         Agencies Limited and their successors and assigns. As the
         "Restriction Period" as defined in the Deed of Covenant is the
         later of 24 months from the date of the Deed or twelve months from
         the Termination Date, this "Restriction Period" shall expire on 16
         March 2002 after which time clauses 4.1 and 4.2 of the Deed of
         Covenant shall no longer apply.

11.      Having resigned as a director of the Company and from such other
         offices which you hold within the Group, you will not conduct
         yourself in any way which is inconsistent with having surrendered
         your authority, whether in matters of the internal administration
         of any Group Company or externally. You will not represent
         yourself as being a director of, employed by or connected in any
         way with, any Group Company.

<PAGE>

12.      Both parties agree:

         (a)     to keep the terms of this Agreement and all discussions and
                 other correspondence on this subject confidential and not
                 to disclose them to any other person, except to a
                 professional adviser who has agreed to be bound by this
                 restriction (and in your case your immediate family) and
                 except as may be required by law or regulatory authorities
                 or with the other party's prior written consent;

         (b)     not (except where legally required to do so as part of any
                 legal or regulatory investigation or proceedings) to make,
                 publish or issue or cause to be made, published or issued
                 any untrue or disparaging or derogatory statements
                 whatsoever concerning you or the Company and/or any Group
                 Company or its or their business, products, practices,
                 policies or any other internal Company or Group matter or
                 otherwise in respect of the Company or any Group Company
                 in its or their relations with its/their suppliers,
                 customers, clients, investors, shareholders, bankers,
                 brokers or advisers or concerning any of the officers,
                 directors, agents or employees of the Company or any Group
                 Company.

         (c)     not (except where legally required to do so as part of
                 any legal or regulatory investigation or proceedings) to
                 make any statement which may have the effect of damaging
                 or lowering the reputation of either party (in the
                 Company's case this includes any Group Company or any of
                 its officers or employees).

13.      You further agree that you will not:

         (a)     (except where legally required to do so by any legal or
                 regulatory investigation or proceedings) make, publish or
                 issue or cause to be made, published or issued any
                 statement whatsoever (whether to the Company's
                 shareholders or to investors, investment analysts or to
                 journalists or to the press or to any other person
                 whatsoever) concerning the private affairs of the Company
                 and any Group Company including, without limitation,
                 finances or business dealings (including previous business
                 negotiations and/or strategic discussions with any party)
                 dealings, accounts, accounting policies, reporting
                 methods, forecasts, business plans or any similar
                 confidential information concerning or belonging to the
                 Company or any Group Company of which you were aware by
                 reason of your employment by or office within the Company
                 or any Group Company.

<PAGE>

14.      You confirm that:

         (a)      in so far as you are aware you have not withheld any
                  material information concerning matters of which you were
                  solely aware on behalf of the Company up to the
                  Termination Date where withholding such information would
                  reasonably be expected to be materially detrimental to
                  the financial results of the Company;

         (b)      to the best of your knowledge and belief you are not in
                  breach and have not breached any material term (express or
                  implied) of your contract of employment;

         (c)      your advisers have given the Company's advisers brief
                  details of every complaint that you have or may have
                  against the Company or any Group Company or any of its
                  officers or employees arising out of your employment or
                  its termination, or otherwise about which you are aware
                  at the date of the Agreement ("the Complaints");

         (d)      you have not presented an originating application to an
                  office of the employment tribunals or issued a claim form
                  in the High Court or County Court in connection with your
                  employment or its termination,

         and you undertake that neither you nor anyone acting on your
         behalf will present any further such complaint or present or issue
         an originating application or claim form.

15.1     These terms are offered without any admission of liability
         whatsoever (save as to the basis upon which the Notice Payment is
         made, namely as a payment in lieu of notice) and are in full and
         final settlement of all claims in all jurisdictions that you may
         have as at the date hereof against any Group Company (or any of
         its officers or employees) arising out of or in connection with
         your position as a director of any Group Company, any other
         offices you hold within the Group and your contract of employment
         with any Group Company or its termination or in any other respect
         save as provided for in paragraphs 15.2 and 15.3 below and with
         the exception of accrued pension. Specifically you acknowledge
         that you have carefully considered the facts and circumstances
         relating to your employment by the Company and its termination and
         you accept that the Payment is paid as compensation in full and
         final settlement of any costs, claims, expenses and/or rights of
         action you have or may have arising against the Company and any
         Group Company howsoever arising (whether under common law, statute
         or otherwise and whether arising in the United Kingdom or

<PAGE>

         elsewhere in the world) and including but not limited to a claim
         for unfair dismissal arising from the fact and/or the manner of
         your dismissal and/or any other claims under the Equal Pay Act
         1970, Sex Discrimination Act 1975, Race Relations Act 1976, Trade
         Union and Labour Relations (Consolidation) Act 1992, Employment
         Rights Act 1996, Disability Discrimination Act 1995, Working Time
         Regulations 1998, Human Rights Act 1998, Public Interest
         Disclosure Act 1998, Employment Relations Act 1999 and/or in
         respect of which a Conciliation Officer is authorised to act or
         any claims arising as a consequence of the United Kingdom's
         membership of the European Union, any claim for payment or pension
         loss, payment in lieu of notice, holiday pay, or any other benefit
         or remuneration accrued during your employment which you have or
         may have against the Company and any Group Company and any
         directors, employees and/or consultants of such parties whether
         arising directly or indirectly out of your employment or its
         termination and you hereby waive such costs, claims, expenses
         and/or rights of action.

15.2     The waiver of rights given by you in paragraph 15.1 includes any
         rights of action that you have or may have against the Company,
         any Group Company or any of its officers or employees in
         connection with the Complaints.

15.3     The waiver of rights given by you in paragraph 15.1 above does not
         include any rights of action that you have or may have as a
         shareholder of ACE Limited or of any Group Company against any
         Group Company or any of its or their officers or employees), save
         in relation to the Complaints, where your rights as a shareholder
         of ACE Limited and any Group Company are hereby waived. In all
         other respects, your rights as a shareholder of ACE Limited are
         unaffected by this Agreement.

15.4     It is the understanding of both parties that as at 17 March 2001
         the known shareholdings in ACE Limited of yourself and your family
         trusts are as follows:

         (a)      your personal holding is 844,420 shares, including the
                  tranche of 5000 Restricted Stock Awards vested on 18
                  November 2000 and excluding all of the other unvested
                  Restricted Stock Awards and all of the Stock Options
                  (whether exercised or not) granted to you under the ACE
                  1995 Long-Term Incentive Plan referred to in paragraph 18
                  of this agreement;

         (b)      the holding of Dragon Holdings Trust (account reference JT49)
                  is 1,713,688 shares; and

<PAGE>

         (c)      the holding of the JRC Children's Settlement Trust (account
                  reference JT48) is 259, 969 shares.

16.      The Company confirms to you that it has notified you in writing of
         all complaints and that it is not aware of any claims that it or
         any Group Company or any of its or their officers or employees has
         or may have against you as at the date hereof.

17.      The Company agrees to pay your legal fees up to (pound)86,000 plus
         the VAT thereon in connection with taking advice on the
         termination of your employment and the terms of this Agreement to
         be paid directly to your lawyer (after receipt by the Company of
         an invoice addressed to you and marked payable by the Company
         within 14 days of the receipt of that invoice).

18.      Both parties acknowledge that you have been awarded stock options
         and restricted stock awards in respect of ACE Limited under the
         ACE 1995 Long-Term Incentive Plan (as amended) ("Plan").

         (a)     We will procure that the Board of ACE Limited will
                 exercise its discretion under the Plan to procure that the
                 restricted stock in ACE Limited awarded to you and
                 summarised below will, notwithstanding the termination of
                 your employment, continue to vest (which for the avoidance
                 of doubt shall mean that the Restricted Period in relation
                 to each award of such restricted stock will cease and such
                 stock may be dealt with by you in accordance with the
                 terms of the awards of such restricted stock) as if your
                 employment with the Company were to continue until and
                 including 8 July 2003. Any restricted stock awards that
                 have not vested on 8 July 2003 shall lapse and be
                 forfeited with immediate effect on that date. The decision
                 to and the exercise of this discretion shall be
                 unconditional and irrevocable and evidenced by the
                 delivery to you of a certified copy extract of the minutes
                 of the board meeting of ACE Limited dated 11 May 2001 to
                 that effect on which you may rely for these purposes
                 together with an agreement (in the form approved by you as
                 annexed to this Agreement as Appendix 3) executed by or on
                 behalf of ACE Limited, you and the Company on the date of
                 this Agreement which varies the agreements pursuant to
                 which awards of restricted stock have been granted to you.

         (b)     We will procure that the board of ACE Limited will
                 exercise its discretion to procure that the stock options
                 in ACE Limited awarded to you and summarised below will,
                 notwithstanding the termination of your employment,
                 continue to vest and may be exercisable by you in full
                 without restriction under the rules of the Plan either in
                 relation to exercise or once exercised in relation to
                 dealings or otherwise and may be exercised by you in

<PAGE>

                 accordance with their terms after vesting, as if your
                 employment with the Company were to continue until and
                 including 8 July 2003. Any stock option awards that have
                 not vested on 8 July 2003 shall lapse and be forfeited on
                 that date. The period for the exercise of all stock
                 options awarded to you that have become exercisable shall
                 be extended to any time on or before the tenth anniversary
                 of the date of grant of each such option. The decision to
                 and the exercise of this discretion shall be unconditional
                 and irrevocable and evidenced by the delivery to you of a
                 certified copy extract of the minutes of the board meeting
                 of ACE Limited dated 11 May 2001 to that effect on which
                 you may rely for these purposes together with an agreement
                 (in the form approved by you as annexed to this Agreement
                 as Appendix 3) executed by or on behalf of ACE Limited,
                 you and the Company on the date of this Agreement which
                 varies the agreements pursuant to which awards of stock
                 options have been granted to you.

         (c)     You acknowledge that you will incur an income tax
                 liability for which the Company may be liable in whole or
                 in part to account to the Inland Revenue upon the
                 exercise of your stock option(s) and/or on the vesting of
                 your restricted stock award(s). For the avoidance of
                 doubt any liability for secondary class 1 National
                 Insurance Contributions shall be borne by the Company.

         (d)     This paragraph (d) will apply if you do not wish to
                 utilise ACE Limited's and the Company's cashless exercise
                 facility in respect of your stock options. At the same
                 time as you give any notice to ACE Limited to exercise
                 some or all of your stock options(s) (the "Exercise
                 Notice") accompanied by a remittance in US dollars for the
                 full exercise price, you will provide a copy of the
                 Exercise Notice to the Company together with a remittance
                 in pounds sterling in favour of the Company of an amount
                 equal to your best estimate of the amount in respect of
                 your income tax liability arising as a result of that
                 exercise for which the Company is required to account to
                 the Inland Revenue ("the Estimated Tax Amount"). Subject
                 to any changes in the law or the published practice of the
                 Inland Revenue after the date of this agreement, the
                 Estimated Tax Amount will be computed by reference to the
                 basic rate of UK income tax prevailing at the time of the
                 Exercise Notice and your gain on exercise of the relevant
                 stock option(s) determined by reference to the latest

<PAGE>

                 quoted price of the relevant underlying shares on the day
                 of the Exercise Notice available to you after consulting
                 the most up to date sources and the rate of exchange from
                 US dollars to Sterling based on the spot rate quoted by
                 Barclays Bank on that day for amounts exceeding
                 (pound)50,000. If the Company's liability to
                 account in respect of your income tax in respect of the
                 exercise of your stock option(s) falls to be computed on a
                 different basis at the time of the Exercise Notice from
                 the basis set out above you will provide a remittance to
                 the Company based on your best estimate of the amount the
                 Company is liable to account for to the Inland Revenue in
                 respect of your income tax liability arising as a result
                 of the exercise in place of the remittance computed on the
                 basis set out above. If the Estimated Tax Amount is less
                 or greater than the actual amount of tax for which the
                 Company is required to account to the Inland Revenue you
                 will pay the difference to the Company, or the Company
                 will refund the difference to you (the "Adjustment
                 Payment"), as appropriate, within 10 business days of
                 demand. The Company will account to the Inland Revenue for
                 the amount for which the Company is required to account to
                 the Revenue in respect of your income tax liability
                 arising as a result of the exercise of your relevant stock
                 options. The Company will account to the Inland Revenue in
                 respect of your income tax liability arising on exercise
                 of your stock option(s) even if you claim that you are not
                 resident in the United Kingdom at the time of exercise and
                 the Estimated Tax Amount (and actual tax amount) will be
                 so computed. If, as a consequence of a change in the law
                 or a change in the published Inland Revenue practice, it
                 is established that the Company is not liable to account
                 to the Inland Revenue in respect of the exercise of your
                 stock option(s) if you are not resident in the United
                 Kingdom and you provide satisfactory evidence to the
                 Company that the Inland Revenue accepts that you are not
                 United Kingdom resident at the time of exercise, then you
                 will not be required to account to the Company for the
                 Estimated Tax Amount (or actual tax amount) under this
                 paragraph (d).

         (e)     This paragraph (e) will apply if you wish to utilise ACE
                 Limited's and the Company's cashless exercise facility in
                 respect of your stock options. At the same time as you
                 give any notice to ACE Limited of your intention to
                 exercise some or all of your stock options(s) (the "
                 Notice of Intention to Exercise"), you will provide a copy
                 of the Notice of Intention to Exercise to the Company
                 together with several signed but undated formal notices of
                 exercise and a remittance in favour of the Company of an
                 amount equal to your best estimate of the tax liability
                 which would arise if the relevant stock options were
                 exercised at the time of the Notice of Intention to
                 Exercise and for which the Company would have been

<PAGE>

                 required to account to the Inland Revenue (the "Estimated
                 Tax Amount"). Subject to any changes in the law or the
                 published practice of the Inland Revenue after the date of
                 this agreement the Estimated Tax Amount will be computed
                 by reference to the basic rate of UK income tax prevailing
                 at the time of the Notice of Intention to Exercise and
                 your gain on exercise of the relevant stock option(s)
                 determined by reference to the latest available quoted
                 price of the relevant underlying shares on the day of the
                 Notice of Intention to Exercise and the rate of exchange
                 from US dollars to Sterling based on the spot rate quoted
                 by Barclays Bank on that day for amounts
                 exceeding(pound)50,000. If the Company's liability to
                 account in respect of your income tax in respect of the
                 exercise of your stock option(s) falls to be computed on a
                 different basis at the time you give the Notice of
                 Intention to Exercise from the basis set out above you
                 will provide a remittance to the Company based on your
                 best estimate of the amount of the Company's liability to
                 account to the Inland Revenue in respect of your income
                 tax liability arising as a result of such exercise in
                 place of the remittance computed on the basis set out
                 above. When ACE Limited and/or the Company confirms that
                 the relevant stock option(s) will be treated as being
                 exercised in one or more tranches and notifies ACE
                 Limited's and/or your agents to that effect, the relevant
                 stock option(s) shall be exercised in one or more tranches
                 (and the relevant formal notice(s) of exercise will be
                 dated accordingly) and the aggregate amount in respect of
                 your income tax liability in respect of the exercise of
                 the relevant stock options for which the Company is
                 required to account to the Inland Revenue will be
                 recomputed based on the achieved sale price(s)
                 (representing the market value(s)) on the relevant day or
                 days on which each tranche was exercised and the Company
                 will account to the Inland Revenue for that amount as
                 being the amount which the Company is required to account
                 in respect of your income tax liability arising on the
                 exercise of the relevant stock options. If the aggregate
                 tax liability exceeds the Estimated Tax Amount remitted to
                 the Company on the day the Notice of Intention to Exercise
                 was given, you will remit the additional tax liability to
                 the Company within 10 business days of demand. If the
                 aggregate tax liability is less than the Estimated Tax
                 Amount remitted to the Company on the day the Notice of
                 Intention to Exercise was given the Company will reimburse
                 you for that difference within 10 business days of demand.
                 The Company will provide you with details of the aggregate
                 tax liability. The Company will account to the Inland
                 Revenue in respect of your income tax liability arising on
                 the exercise of your stock option(s) even if you claim
                 that you are not resident in the United Kingdom at the
                 time of exercise and, the Estimated Tax Amount (and actual
                 tax amount) will be so computed. If, as a consequence of a
                 change in the law or a change in the published Inland
                 Revenue practice, it is established that the Company is
                 not liable to account to the Inland Revenue in respect of
                 the exercise of your stock option(s) if you are not
                 resident in the United Kingdom and you provide

<PAGE>

                 satisfactory evidence to the Company that the Inland
                 Revenue accepts you are not United Kingdom resident at the
                 time of exercise, then you will not be required to account
                 to the Company for the Estimated Tax Amount (or actual tax
                 amount) under this paragraph (e). If ACE Limited and/or
                 the Company establishes arrangements for its employees and
                 former employees generally under which the cashless
                 exercise facility may be used to recoup an amount equal to
                 the amount for which the Company is liable to account to
                 the Inland Revenue in respect of the tax liability arising
                 on exercise of the stock option(s), the Company and/or ACE
                 Limited will notify you of such arrangements promptly and
                 they will be extended to you at your request.

         (f)     Unless paragraph (g) below applies ACE Limited and the
                 Company shall operate all their normal procedures in
                 respect of restricted stock award(s) so as to recoup an
                 amount equal to the amount of your income tax arising on
                 the vesting of your restricted stock awards for which the
                 Company is required to account to the Inland Revenue.
                 This would be the retention or cancellation or non-issue
                 to you of such proportion of the shares underlying the
                 restricted stock award which has vested with a market
                 value (on the date of vesting) equal to the amount for
                 which the Company is required by law to account to the
                 Inland Revenue in respect of your income tax liability
                 arising on the vesting of the relevant restricted stock
                 award.

         (g)     This paragraph (g) applies if you give notice in writing
                 to the Company and ACE Limited not later than the
                 thirtieth day before the date on which any of your
                 restricted stock awards is due to vest that you wish to
                 receive the gross number of shares comprised in the
                 restricted stock award on vesting (rather than the net
                 amount after tax in accordance with paragraph (f)) ("Gross
                 Vesting Notice"). If you give a Gross Vesting Notice you
                 shall remit to the Company an amount equal to your best
                 estimate the amount in respect of your income tax
                 liability arising as a result of that vesting for which
                 the Company is required to account to the Inland Revenue
                 (the "Estimated Tax Amount"). Subject to any changes in
                 the law or the published practice of the Inland Revenue
                 after the date of this Agreement the Estimated Tax Amount
                 will be computed by reference to the basic rate of UK
                 income tax prevailing at the time the relevant restricted
                 stock award vests and the latest available quoted price of
                 the shares comprised in the relevant stock award and the
                 latest available rate of exchange from US dollars to

<PAGE>

                 sterling based on the spot rate quoted by Barclays Bank
                 for amounts exceeding(pound)50,000. Provided the Company
                 receives the Estimated Tax Amount on or before the date on
                 which the relevant restricted stock award vests paragraph
                 (f) above shall not apply and you shall be entitled to the
                 gross amount of the restricted stock award on the relevant
                 vesting date (but if the Estimated Tax Amount has not been
                 received by that date the normal procedures for recouping
                 the Company's liability to account for income tax in
                 respect of the restricted stock award that vests shall
                 apply). All necessary adjustments shall apply as at the
                 date on which the relevant restricted stock award vests
                 and shall be based on the market value of the underlying
                 stock concerned and the appropriate exchange rate on that
                 day (and you shall account to the Company for any
                 deficiency and the Company shall account to you for any
                 excess compared to the Estimated Tax Amount) and the
                 Company shall account to the Inland Revenue accordingly.
                 The Company will account to the Inland Revenue in respect
                 of your income tax liability arising on the vesting of
                 your restricted stock award(s) even if you claim that you
                 are not resident in the United Kingdom at the time of
                 vesting and the Estimated Tax Amount (and actual tax
                 amount) will be so computed. If, as a consequence of a
                 change in the law or a change in the published Inland
                 Revenue practice, it is established that the Company is
                 not liable to account to the Inland Revenue in respect of
                 the vesting of your restricted stock award(s) if you are
                 not resident in the United Kingdom and you provide
                 satisfactory evidence to the Company that the Inland
                 Revenue accepts that you are not United Kingdom resident
                 at the time of vesting, then you will not be required to
                 account to the Company for the Estimated Tax Amount (or
                 actual tax amount) under this paragraph (g).

         (h)     If the Company's liability to account for any amount in
                 respect of your income tax in respect of the exercise of
                 stock option(s) or the vesting of restricted stock
                 award(s) exceeds the amount which the Company recoups
                 under the procedures set out above in this clause you
                 agree to indemnify, and keep indemnified, the Company
                 against any such excess liability. The Company shall not
                 be entitled to recover twice from you in respect of the
                 same liability.

         (i)     If you use the cashless exercise facility in respect of
                 any of your stock option(s) or if you wish to retain any
                 shares you acquire on exercise of your stock option(s) or
                 any of your restricted stock after it has vested and you
                 consider that there has been delay by any agent acting on
                 behalf of ACE Limited in implementing any of the
                 procedures required to deal with your instructions, you
                 may notify us in writing of your concerns. If you so
                 notify us we will transmit your concerns to that agent and
                 use all reasonable endeavours to encourage that agent to
                 carry out your instructions efficiently and without
                 further delay. Any such agent operates its own procedures
                 over which ACE Limited does not have any control.

<PAGE>

         (j)     Both parties agree that the following table summarises
                 the stock options and restricted stock to which you are
                 entitled and to which this paragraph 18 applies:

              Stock Options                                 Vesting
              -------------                                 -------

  Date of      No. of    Exercise Price      No.                     Date
  Grant        Shares

  12           100,000    $29.625            33,333        12 November, 1999
  November,
  1998                                       33,333        12 November, 2000
                                             33,334        12 November, 2001

  18           60,000     $19.3125           20,000        18 November, 2000
  November,
  1999                                       20,000        18 November, 2001
                                             20,000        18 November, 2002

  22           66,000     $36.30             22,000        22 February, 2002
  February,
  2001                                       22,000        22 February, 2003
                                             22,000        22 February 2004

                       Restricted Stock Awards
                       -----------------------               Vesting
                                                             -------

  Date of Award         No. of Shares            No.              Date

  18 November, 1999     20,000                   5,000      18 November, 2000
                                                 5,000      18 November, 2001
                                                 5,000      18 November, 2002
                                                 5,000      18 November, 2003

  22 February, 2001     27,500                   6,875      22 February, 2002

                                                 6,875      22 February, 2003
                                                 6,875      22 February, 2004
                                                 6,875      22 February, 2005

<PAGE>

                 For the avoidance of doubt, the table on Stock Options
                 includes all Stock Options whether vested or unvested and
                 the table on Restricted Stock Awards includes all
                 Restricted Stock awards whether vested or unvested.

         (k)     We have provided duplicate copies of each of the
                 agreements reflecting the awards of restricted stock and
                 stock options referred to above.

         (l)     The Company confirms to you that the exercise price of
                 $36.30 for the stock options which were granted to you on
                 22 February 2001 is the same exercise price for all
                 employees of the Company who were granted stock options at
                 that time.

         (m)     The Company confirms that you have not been granted
                 options under the ACE Limited Approved UK Stock Option
                 Programme approved on 24 November 1997.

19.      You will be liable for and will indemnify and hold harmless the
         Company in respect of any liability incurred by the Company to
         account for any of your income tax in respect of the Payment under
         or by virtue of any regulations made under Section 203 Income and
         Corporation Tax Act 1988 or otherwise and/or any penalty, fine
         and/or amount of any interest payable by the Company to the Inland
         Revenue as a result of any delay, non-disclosure or other fault by
         you arising from any liability for such taxation, whether arising
         under or by virtue of the said Section 203 Income and Corporation
         Tax Act 1988 or otherwise provided that before meeting any
         assessment raised against the Company by any competent authority,
         the Company will inform you of any such assessment within 21 days
         of receiving the same and will provide you with its reasonable
         co-operation to challenge any such assessment

20.      It is confirmed that, subject to any relevant restrictions at
         law, you are free and unrestricted to deal in stock of ACE
         Limited.

21.      You agree to give all reasonable assistance (at all reasonable
         times on reasonable notice save where a witness order has been
         served at short notice) to the Group upon request, with disputes
         which may arise or have arisen (whether or not proceedings of any
         kind have been instituted) with any Group Company where you have
         relevant knowledge in relation to that dispute, including without
         limitation, attending meetings, providing statements and acting as
         a witness for the Company or any Group Company, as appropriate.
         The Company agrees to meet your reasonable expenses incurred in
         providing such assistance and in addition shall pay you a daily
         rate of (pound)5,000 plus VAT for any day or part of a day spent
         providing such assistance save that if you spend less than one
         hour on one occasion in any 24 hour period providing such

<PAGE>

         assistance then the fee for this time spent shall be(pound)1,000
         plus VAT. For the avoidance of doubt, the obligation to pay for
         assistance shall extend to any case where you are named as a
         representative party in proceedings (whether in court or in
         arbitration) arising out of or in connection with the operation of
         any Group Company's business.

22.      You warrant that at the time of entering into this Agreement save
         for the Complaints you are not aware of any reason why any other
         matter could represent a "protected and qualifying disclosure" for
         the purposes of the provisions of the Public Interest Disclosure
         Act 1998, or of the Employment Rights Act 1996 which (1) arose or
         may have arisen during the period of your employment with the
         Company and (2) could be the subject of any claim on your part.

23.      The Company will on any reasonable request by a prospective
         employer or employment agency or regulatory authority or
         prospective business partner or prospective investor provide a
         written reference in the form attached as Appendix 4 and will
         respond to any oral or written enquiries in a manner consistent
         with this reference and without adding a gloss of any kind.

24.      The Company will maintain in force on a continuing basis
         Directors' and Officers' liability insurance in respect of the
         period during which you were a director of the Company or any
         Group Company at the same level of cover as that enjoyed by
         members of the Board of ACE Limited or the relevant Group Company,
         as appropriate. You shall not be required to pay any part of the
         Company's retention or aggregate deductible relating to this
         insurance.

25.      Except as expressly stated in paragraphs 15.1 and 28.1 of this
         letter, a person who is not a party to this agreement may not
         enforce any of its terms under the Contracts (Rights of Third
         Parties) Act 1999.

26.      There are in place various employee trusts and schemes (the
         "trusts"), for the benefit of employees of Group Companies. For
         the avoidance of doubt such trusts include the Charman Group
         Limited 1993 Executive Share Option Scheme, the Methuen Employee
         Trust and any of their successors or assigns. You do not qualify
         as a beneficiary of and you confirm that you waive all rights and
         entitlements which you may have to receive, or otherwise seek, any
         payment or benefit in relation to those trusts.

<PAGE>

27.      These terms are governed by English law. You and the Company agree
         to submit to the exclusive jurisdiction of the English courts as
         regards any claim or matter arising in connection with these
         terms.

28.1.    The provisions of these paragraphs 28.1 and 28.2 are recited
         here for the avoidance of doubt, and do not limit the foregoing
         provisions of this Agreement. Except for a claim based upon a
         breach of this Agreement, you, on behalf of yourself and the other
         Employee Releasors, release and forever discharge the Company and
         the other Company Releasees from any and all Claims which you now
         have or claim, or might hereafter have or claim (or the other
         Employee Releasors may have, to the extent that it is derived from
         a Claim which you may have), against the Company Releasees based
         upon or arising out of any matter or thing whatsoever, occurring
         or arising on or before the date of this Agreement, to the extent
         that the Claim arises out of or relates to your employment by any
         Group Company (including your service as a director of any of the
         Group Companies) and/or your termination or resignation therefrom
         (with the exception of accrued pension rights), and shall include,
         without limitation, Claims arising out of or related to the
         Service Agreement, and Claims arising under (or alleged to have
         arisen under) the following laws or requirements of the United
         States (including the states therein) (a) Title VII of the Civil
         Rights Act of 1964, as amended; (b) The Civil Rights Act of 1991;
         (c) Section 1981 through 1988 of Title 42 of the United States
         Code, as amended; (d) the Employee Retirement Income Security Act
         of 1974, as amended; (e) The Immigration Reform Control Act, as
         amended; (f) The Americans with Disabilities Act of 1990, as
         amended; (g) The National Labor Relations Act, as amended; (h) The
         Fair Labor Standards Act, as amended; (I) The Occupational Safety
         and Health Act, as amended; (j) The Family and Medical Leave Act
         of 1993; (k) any state anti-discrimination law; (l) any state wage
         and hour law; (m) any other local, state or federal law,
         regulation or ordinance; (n) any public policy, contract, tort, or
         common law; or (o) any allegation for costs, fees, or other
         expenses including attorneys' fees incurred in these matters. For
         the avoidance of doubt this waiver of rights by you does not
         include any claim which you have or may have (or the Employee
         Releasors may have to the extent that it is derived from a claim
         which you may have) as a shareholder of ACE Limited against any
         Group Company or any of the Company Releasees, save in relation to
         the Complaints where your rights as a shareholder are waived.

<PAGE>

28.2     For purposes of the General Release and Waiver, the terms set
         forth below shall have the following meanings:

                   o  the term "Claims" shall include any and all rights,
                      claims, demands, debts, dues, sums of money,
                      accounts, attorneys' fees, complaints, judgements,
                      executions, actions and causes of action of any
                      nature whatsoever, cognizable at law or equity;

                   o  the term "Company Releasees" shall include each of
                      the Group Companies and their officers, directors,
                      trustees, members, representatives, agents,
                      employees, shareholders, partners, attorneys,
                      assigns, administrators and fiduciaries under any
                      employee benefit plan of any of the Group Companies,
                      and insurers, and their predecessors and successors;
                      and

                   o  the term "Employee Releasors" shall include you and
                      your family, heirs, executors, representatives,
                      agents, insurers, administrators, successors,
                      assigns, and any other person claiming through you.

29       To the extent that you are entitled to continuing benefit under
         clause 100 of the Articles of Association of ACE Limited and any
         indemnity on similar terms contained in the Articles of
         Association, Bye Laws or other constitutional documents of any
         Group Company the Company will procure that you shall continue to
         enjoy that benefit.

30.      The Company is entering into this Agreement on behalf of itself
         and its Group Companies. The Company warrants that the signature
         and performance of the Agreement are within the corporate powers
         of the Company, have been duly authorised by all necessary
         corporate action and do not contravene either the Memorandum or
         Articles of Association of the Company nor any law, rule,
         regulation or requirement applicable to the Company.

Please signify your agreement to these terms by signing and returning to me
the enclosed duplicate of this letter.

Yours sincerely,

BRIAN DUPERREAULT
Brian Duperreault
Director of ACE London Services Limited and of ACE Limited
For and on behalf of the Company and all of the Group Companies

<PAGE>

I agree to the terms set out in the Company's letter above and confirm that
the conditions regulating compromise agreements under the Employment Rights
Act 1996, the Disability Discrimination Act 1995, the Sex Discrimination
Act 1975, the Race Relations Act 1976, the Equal Pay Act 1970, the Trade
Union and Labour Relations (Consolidation) Act 1992, the Working Time
Regulations 1998, the Human Rights Act 1998, the Public Interest Disclosure
Act 1998 have been satisfied in relation to this Agreement.

In particular I confirm that I have taken independent legal advice from
Jane Mann of Fox Williams on the terms and effect of this letter and my
rights against the Company and any other Group Company and on the basis of
that advice I accept those terms. Ms Mann has confirmed to me that she is a
qualified solicitor holding a current practising certificate and that she
or her firm has an insurance policy in force covering the risk of a claim
by me in respect of any loss arising in consequence of her advice, less any
deductible, uninsurable or excess.

Signature:        JOHN CHARMAN

Date:             16TH MAY 2001

<PAGE>

                                 APPENDIX 1
16 May 2001

FORM OF SOLICITOR'S LETTER

I , Jane Mann. of Fox Williams refer to the letter dated 16 May 2001 from
Ace London Services Limited to John Charman (the "Letter"). I am a
qualified solicitor holding a current practising certificate as a partner
in the firm of Fox Williams. The firm has an insurance policy in force
covering the risk of a claim by Mr Charman in respect of any loss arising
in consequence of my advice, less any deductible, uninsurable or excess. I
have advised Mr Charman regarding his rights against the Company (and any
Group company as referred to in the Letter) (including his rights under the
statutes referred to in the Letter) and the effect of agreeing to the terms
set out in the Letter.

<PAGE>

                                 APPENDIX 2

          [Resignation of directorships and other offices letter]

                                                                 16 May, 2001

To whom it may concern:

Resignation of directorships and other offices letter

Without claim for compensation for loss of office or otherwise (but without
prejudice to any claim I may have for damages for breach of my employment
agreement with ACE London Services Limited dated 9 July 1998), I hereby
resign and if requested by the Company will at the cost of the Company do
all things reasonably necessary to resign, effective from 17 March, 2001,
from all positions I currently hold (including directorships, officerships,
trusteeships, active underwriter positions and powers-of-attorney) with all
subsidiaries and managed syndicates of ACE Limited, a Cayman Islands
company, including, without limitation, the following companies and
syndicates:

ACE London Aviation Limited
ACE London Underwriting Limited
ACE Underwriting Agencies Limited
ACE UK Underwriting Limited
ACE Capital Limited
ACE Capital II Limited
ACE Capital III Limited
ACE Capital IV Limited
ACE Capital V Limited
ACE Capital VI Limited
ACE Capital VII Limited
ACE European Markets Reinsurance Limited
ACE European Markets Insurance Limited
ACE Financial Services Limited
ACE London Holdings Limited
ACE London Investments Limited
ACE London Group Limited
ACE (CG) Limited
ACE Group Holdings Limited
ACE Global Markets Limited
ACE Insurance SA NV
ACE UK Limited
ACE UK Holdings Limited
ACE Tarquin
ACE Tempest Reinsurance Limited
ACE London Services Limited
ACE Underwriting Services Limited
ACE (PM) Limited
AGM Underwriting Limited
ACE Trustees Limited
ACE (CR) Holdings

<PAGE>

ACE (RGB) Holdings Limited
Ridge Underwriting Agencies Limited
ACE Holdings (Gibraltar) Limited
ACE Underwriting Agencies Limited Retirement Benefits Scheme
Charman Underwriting Agencies Retirement Benefits Scheme
All ACE managed Lloyd's syndicates including but not limited to 488, 2488,
483, 375, 112, 490, 47, 122, 219, 484, 1171, 48, 925, 960, and any
predecessor or incidental syndicate.

------------------------------------
John Charman

<PAGE>

                                 APPENDIX 3

DATED                                                                    2001
-------------------------------------------------------------------------------

                              ACE LIMITED (1)

                              JOHN CHARMAN (2)

                                  - and -

                      ACE LONDON SERVICES LIMITED (3)

-------------------------------------------------------------------------------

                       DEED OF VARIATION IN RELATION
                         TO AWARDS OF STOCK OPTIONS
                    AND RESTRICTED STOCK IN ACE LIMITED

-------------------------------------------------------------------------------

<PAGE>

                             TABLE OF CONTENTS

1.   INTERPRETATION.......................................................3
2.   VARIATIONS...........................................................4
3.   WARRANTIES...........................................................5
4.   NO WAIVER............................................................6
5.   MISCELLANEOUS........................................................6
6.   THIRD PARTY RIGHTS...................................................6
7.   VARIATION............................................................6
8.   COUNTERPARTS.........................................................6
9.   ENGLISH LAW..........................................................6

<PAGE>

THIS DEED OF VARIATION  is made                                           2001
BETWEEN:

(1)      ACE LIMITED a company incorporated under the laws of the Cayman
         Islands whose address is The ACE Building, 30 Woodbourne Avenue,
         Hamilton HM08 Bermuda ("ACE");

(2)      JOHN CHARMAN of Dell House, Wildernesse Avenue, Sevenoaks, Kent
         TN15 OEA ("Mr Charman"); and

(3)      ACE LONDON SERVICES LIMITED a company incorporated in England and
         Wales (Company no: 3205604) whose registered office is at Crosby
         Court, 38 Bishopsgate, London EC2N 4DL ("Ace London").

INTRODUCTION

(A)      Mr Charman has been awarded stock options in ACE in accordance
         with the terms of the Plan (as defined below) and pursuant to the
         provisions of the relevant stock option agreement, brief
         particulars of which are summarised in Schedule 1 ("Stock Option
         Awards"). Copies of such stock option agreements are annexed
         hereto ("Stock Option Agreements").

(B)      Mr Charman has been awarded restricted stock in ACE in accordance
         with the terms of the Plan (as defined below) and pursuant to the
         provisions of the relevant restricted stock agreement, brief
         particulars of which are summarised in Schedule 2 ("Restricted
         Stock Awards"). Copies of such restricted stock agreements are
         annexed hereto ("Restricted Stock Agreements").

(C)      This Deed of Variation is entered into pursuant and is
         supplemental to the provisions of a compromise agreement entered
         into today between ACE London and Mr Charman which sets out the
         terms relating to the termination of Mr Charman's employment with
         ACE London ("Compromise Agreement").

(D)      Amongst other things, it is a requirement of the Compromise
         Agreement that the terms on which the Stock Option Awards and the
         Restricted Stock Awards have been granted are varied in accordance
         with this Deed of Variation.

(E)      The Board of ACE, acting by its Compensation Committee, has
         exercised its discretions under the Plan to procure that the terms
         on which the Stock Option Awards and the Restricted Stock Awards
         have been granted are varied in accordance with the terms of the
         Compromise Agreement and this Deed of Variation.

NOW THIS DEED WITNESSES
IT IS AGREED as follows:

1.       INTERPRETATION

1.1      In this Deed of Variation and its recitals and schedules, save
         where otherwise expressly provided or unless the context provides
         otherwise:-

         "Compromise Agreement"         has the meaning given in recital (C);

         "Plan"                         means the ACE Limited 1995 Long-Term
                                        Incentive Plan dated 15 February
                                        1996 as amended;

<PAGE>

         "Restricted Stock Agreements"  has the meaning given in recital (B);

         "Restricted Stock Awards"      has the meaning given in recital (B);

         "Stock Option Agreements"      has the meaning given in recital (A);

         "Stock Option Awards"          has the meaning given in recital (A);

1.2      In this Deed of Variation and its recitals and schedules, save
         where otherwise expressly provided or unless the context provides
         otherwise:

         1.2.1    words importing one gender shall be treated as importing
                  any gender, words importing individuals shall be treated
                  as importing bodies corporate, corporations,
                  unincorporated associations and partnerships and vice
                  versa, words importing the singular include the plural
                  and vice versa and words importing the whole shall be
                  treated as including a reference to any part;

         1.2.2    clause, schedule and annexe headings and the list of
                  contents are inserted for ease of reference only and
                  shall not affect construction;

         1.2.3    references to recitals, clauses, schedules and annexures
                  are to the recitals and clauses of and the schedules and
                  annexures to this Deed of Variation.

2.       VARIATIONS

2.1      Notwithstanding the earlier termination of the employment of Mr
         Charman, it is agreed that for the purposes of the Stock Option
         Awards and the Restricted Stock Awards, the Date of Termination
         (as such expression is defined and used in the Plan, Stock Option
         Agreements and the Restricted Stock Agreements) of Mr Charman's
         employment with ACE London shall be deemed to be 8 July 2003 to
         the effect that:-

2.2      all Stock Option Awards shall continue to vest in accordance with
         the terms of the Stock Option Agreements as if Mr Charman's
         employment with Ace London continues until and including 8 July
         2003; and

2.3      all Restricted Stock Awards shall continue to vest (which for the
         avoidance of doubt shall mean that the Restricted Period (as such
         expression is defined in the Plan and used in the Restricted Stock
         Agreements) in relation to each award of such restricted stock
         will cease and such stock may be dealt with by Mr Charman at that
         time) in accordance with the terms of the Restricted Stock
         Agreements as if Mr Charman's employment with ACE London continues
         until and including 8 July 2003.

2.4      For the avoidance of doubt, no restrictions will be imposed under
         the rules of the Plan on Mr Charman's dealings or otherwise in
         relation to stock in ACE comprising restricted stock that has
         vested or stock options that have been exercised.

<PAGE>

2.5      Once exercisable in accordance with their terms, all Stock Option
         Awards may be exercised at any time within the period of ten years
         from the date of grant of each such Stock Option Award.

2.6      The Stock Option Agreements and the Restricted Stock Agreements
         shall in each case, to the extent relevant, be varied in
         accordance with the provisions referred to above, but in all other
         respects the terms on which the Stock Option Awards and Restricted
         Stock Awards have been granted shall be unchanged. The variation
         of each such Stock Option Agreement and Restricted Stock Agreement
         (as applicable) is made unconditionally and irrevocably as from
         the date of this Deed of Variation.

2.7      For the avoidance of doubt, all Restricted Stock Awards that have
         not vested and Stock Option Awards that have not become
         exercisable by 8 July 2003 shall be forfeited on that date and
         shall lapse.

3.       WARRANTIES

3.1      ACE and ACE London jointly and severally warrant to Mr Charman in
         the following terms:-

3.1.1    the Board of ACE, acting by its Compensation Committee, has
         lawfully and properly exercised its discretion under the Plan and
         the Stock Option Agreements to vary the terms on which the Stock
         Option Awards have been granted in accordance with the provisions
         of clause 2 above;

3.1.2    the Board of ACE, acting by its compensation committee, has
         lawfully and properly exercised its discretion under the Plan and
         the Restricted Stock Agreements to vary the terms on which
         Restricted Stock Awards have been granted in accordance with the
         provisions of clause 2 above;

3.1.3    the information given in the Schedules to this Deed of Variation
         is a true and accurate summary of all the awards of restricted
         stock and stock options in ACE that have been granted to Mr
         Charman under the Plan and he has not been granted restricted
         Stock and Stock options in ACE under any other plan of ACE;

3.1.4    as at the date hereof each of them has full authority, power and
         capacity under their respective memorandum and articles of
         association or other constitutional documents to enter into and
         perform the terms of this Deed of Variation;

3.1.5    the execution and performance by each of them of the terms of this
         Deed of Variation have been duly authorised by all necessary
         corporate action on their respective parts without any further
         proceedings or action being required;

3.1.6    this Deed of Variation has been duly executed and delivered by
         each of them and constitutes a valid, legal and binding legal
         obligation enforceable against each of them in accordance with the
         terms of this Deed of Variation;

3.1.8    each of their Directors or other persons executing on their behalf
         this Deed of Variation are duly authorised;

3.1.8    the execution and performance by each of them of this Deed of
         Variation is not subject to the approval or consent of any third
         party, governmental authority or regulatory body or otherwise, or
         if such approval or consent is required, it has been duly
         obtained.

<PAGE>

4.       NO WAIVER

4.1.     No failure to exercise and no delay in exercising on the part of
         any party any right, power of privilege under this Deed of
         Variation shall operate as a waiver, nor shall any single or
         partial exercise of any right, power or privilege preclude any
         other or further exercise of it or the exercise of any other
         right, power or privilege.

4.2      In the event that any party shall expressly waive any breach,
         default or omission under this Deed of Variation, no such waiver
         shall apply to, or shall operate as, a waiver of similar breaches,
         defaults or omissions or be deemed a waiver of any other breach,
         default or omission under this Deed of Variation.

4.3      The rights and remedies of each of the parties in connection with
         this Deed of Variation are cumulative and are not exclusive of any
         rights or remedies provided by law.

5.       MISCELLANEOUS

5.1      ACE and ACE London shall jointly and severally do all such things
         as may be within their power to ensure that the provisions of this
         Deed of Variation are observed and performed and shall indemnify
         and keep Mr Charman indemnified against any costs or losses
         suffered by him as a result of any failure so to do.

5.2      In the event of any provision contained in this Deed of Variation
         or any part of it being declared invalid or unenforceable, all
         other clauses contained in this Deed of Variation shall remain in
         full force and effect and shall not be affected by it.

5.3      Save in the case of fraud, this Deed of Variation, the Compromise
         Agreement, the Stock Option Agreements, the Restricted Stock
         Agreements and the Plan embody the entire understanding between
         the parties in relation to their subject matter and there are no
         promises, terms, conditions or obligations, oral or written,
         expressed or implied, other than those contained herein or therein
         and together they supersede any prior agreement between the
         parties.

6.       THIRD PARTY RIGHTS

6.1      A person who is not a party to this Deed of Variation has no right
         under the Contracts (Rights of Third Parties) Act 1999 to enforce
         any term of this Deed of Variation. This clause does not affect
         any right or remedy of a third party which exists or is available
         otherwise than by operation of that Act.

7.       VARIATION

7.1      This Deed of Variation may only be varied in writing signed by all
         the parties or their respective duly authorised representatives.

8.       COUNTERPARTS

8.1      This Deed of Variation may be executed in any number of
         counterparts all of which when executed shall constitute one and
         the same agreement.

<PAGE>

9.       ENGLISH LAW

9.1      This Deed of Variation shall be governed by and construed in
         accordance with English Law and the parties submit to the
         non-exclusive jurisdiction of the English courts in relation to
         all matters, claims and disputes arising out of or in connection
         with this Deed of Variation or any document supplemental to it.

EXECUTED AS A DEED the day and year first before written

<PAGE>

                                 SCHEDULE 1

              Stock Options                                 Vesting
              -------------                                 -------

  Date of      No. of    Exercise Price      No.                     Date
  Grant        Shares

  12th         100,000    $29.625            33,333        12th November, 1999
  November,
  1998                                       33,333        12th November, 2000
                                             33,334        12th November, 2001

  18th         60,000     $19.3125           20,000        18th November, 2000
  November,
  1999                                       20,000        18th November, 2001
                                             20,000        18th November, 2002

  22th         66,000     $36.30             22,000        22th February, 2002
  February,
  2001                                       22,000        22th February, 2003
                                             22,000        22th February 2004

For the avoidance of doubt, the table of Stock Options includes all Stock
Options whether vested or unvested.

The awards of stock options were made pursuant to the Stock Option
Agreements under the Plan made between Mr Charman and ACE dated 12 November
1998, 18 November 1999 and 22 February 2001.

<PAGE>

                                 SCHEDULE 2

                       Restricted Stock Awards
                       -----------------------               Vesting
                                                             -------

  Date of Award         No. of Shares            No.              Date

  18 November, 1999     20,000                   5,000      18 November, 2000

                                                 5,000      18 November, 2001
                                                 5,000      18 November, 2002
                                                 5,000      18 November 2003

  22 February, 2001     27,500                   6,875      22 February, 2002

                                                 6,875      22 February, 2003
                                                 6,875      22 February 2004
                                                 6,875      22 February 2005

For the avoidance of doubt, the table of Restricted Stock awards includes
all Restricted Stock awards whether vested or unvested.

The awards of restricted stock were made pursuant to Restricted Stock
Agreements under the Plan made between Mr Charman and ACE and dated 18
November 1999 and 22 February 2001.

<PAGE>

EXECUTED and DELIVERED by ACE        )
Limited by means of these signatures )
and delivered:                       )

                                           Director

                                           Director/Secretary

EXECUTED and DELIVERED by ACE       )
London Services Limited by means of )
these signatures and delivered:     )

                                          Director

                                          Director/Secretary

EXECUTED as a DEED by              )
John Charman in the presence of:   )

<PAGE>

                                 APPENDIX 4

                              Agreed Reference

John Charman was employed by ACE London Services Limited as Chief Executive
Officer from 9 July 1988 (when ACE Limited acquired Charman Underwriting
Agencies Limited) until 17 March 2001. During this time he was responsible
for the management of the Lloyd's operations. He was appointed President,
ACE International and assumed responsibility for all of the ACE Group's
operations outside Bermuda and the US with effect from 1 February 2001.

ACE Limited and ACE London Services Limited have no reason to doubt Mr
Charman's honesty and integrity and are not aware of any impropriety in his
financial or other dealings.

This reference is given without liability on the part of ACE Limited and
ACE London Services Limited and the writer.

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