Document:

EX-10.5 MANAGEMENT INCENTIVE PLAN

 

EXHIBIT
10.5

UNITED COMMUNITY BANKS, INC.

MANAGEMENT ANNUAL INCENTIVE PLAN

Effective as of January 1, 2007

	1.	 	ESTABLISHMENT AND EFFECTIVE DATE OF PLAN

     United Community Banks, Inc. (the “Company”) hereby adopts the United Community Banks,
Inc. Management Annual Incentive Plan (the “Plan”) for its executive officers and certain
other executives and employees of the Company, its Subsidiaries and affiliates who are in
management positions designated as eligible for participation by the Compensation Committee
(the “Committee”) of the Board of Directors of the Company or its designee. The Plan shall
be effective as of January 1, 2007 and shall remain in effect for an indefinite term,
subject to the rights of amendment and termination in Section 13. Unless the Committee
determines otherwise, payments shall only be made to the Chief Executive Officer (and such
other Named Executive Officers as the Committee may determine) pursuant to the Plan after
the Plan is approved by the stockholders of the Company.

	2.	 	PURPOSE OF THE PLAN

     The purpose of the Plan is to further the growth and financial success of the Company
by offering performance incentives to designated executives and other employees who have
significant responsibility for such success.

	3.	 	DEFINITIONS

	 	(a)	 	“Base Annual Salary” means the actual base salary paid to a Participant during
the applicable Plan Year, increased by the amount of any pre-tax deferrals or other
pre-tax payments made by the Participant to the Company’s deferred compensation or
welfare plans (whether qualified or non-qualified).
	 
	 	(b)	 	“Board of Directors” means the Board of Directors of the Company.
	 
	 	(c)	 	“Change in Control” shall have the meaning ascribed to such term in the United
Community Banks, Inc. 2000 Key Employee Stock Option Plan.
	 
	 	(d)	 	“Chief Executive Officer” means the chief executive officer of the Company,
unless otherwise specified.
	 
	 	(e)	 	“Code” means the Internal Revenue Code of 1986, as amended.
	 
	 	(f)	 	“Committee” means the Compensation Committee of the Board of Directors or any
other committee designated by the Board of Directors which is responsible for
administering the Plan.
	 
	 	(g)	 	“Company” means United Community Banks, Inc., a Georgia corporation, and its
successors.
	 
	 	(h)	 	“Incentive Award” or “Award” means the bonus awarded to a Participant under the
terms of the Plan.

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	 	(i)	 	“Maximum Award” means the maximum percentage of Base Annual Salary which may be
paid based upon the Relative Performance during the Plan Year.
	 
	 	(j)	 	“Named Executive Officer” means for each calendar year the Chief Executive
Officer and the four other most highly compensated executive officers whose
compensation would be reportable in the “summary compensation table” in the Proxy
Statement, if the report was prepared as of the last day of the calendar year.
	 
	 	(k)	 	“Operating Unit” means a business operating unit of the Company with respect to
which separate performance goals may be established hereunder. An Operating Unit may
consist of one or more Subsidiaries or affiliates of the Company, or an unincorporated
business unit.
	 
	 	(l)	 	“Participant” means an employee of the Company, an Operating Unit or an
affiliate who is designated by the Committee or its designee to participate in the
Plan.
	 
	 	(m)	 	“Plan Rules” means the guidelines established annually by the Committee
pursuant to Section 4, subject, where applicable, to ratification by the Board of
Directors.
	 
	 	(n)	 	“Plan Year” means the twelve month period which is the same as the Company’s
fiscal year. The initial Plan Year for the Plan shall be January 1, 2007 through
December 31, 2007.
	 
	 	(o)	 	“Relative Performance” means the extent to which the Company, or designated
Operating Unit, or both, as applicable, achieves the performance measurement criteria
set forth in the Plan Rules.
	 
	 	(p)	 	“Subsidiary” means any corporation in an unbroken chain of corporations
starting with the Company if each of the corporations in the chain (other than the last
corporation) owns stock possessing 50% or more of the voting power of all classes of
stock in one of the other corporations in such chain.
	 
	 	(q)	 	“Target Award” means the percentage (which may vary among Participants and from
Plan Year to Plan Year) of Base Annual Salary which will be paid to a Participant as an
Incentive Award if the performance measurement criteria applicable to the Participant
for the Plan Year is achieved, as reflected in the Plan Rules for such Plan Year.
	 
	 	(r)	 	“Threshold Award” means the percentage of Base Annual Salary which corresponds
to the minimum acceptable Relative Performance during the Plan Year.

	4.	 	ADMINISTRATION OF THE PLAN

     The Plan will be administered by the Committee, subject to its right to delegate
responsibility for administration of the Plan as it applies to Participants other than the
Chief Executive Officer (and such other Named Executive Officers as the Committee may
determine) pursuant to Section 7. The Committee will have authority to adopt or to
establish Plan Rules with respect to the following matters for each Plan Year, subject to
the right of the Board of Directors to ratify such Plan Rules as provided in this Section 4:

	 	(a)	 	the employees of the Company, its Operating Units and affiliates who are
eligible to participate in the Plan;

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	 	(b)	 	the Target Award, Maximum Award (if any) and Threshold Award that can be
granted to each Participant and the method for determining such award, which the
Committee may amend from time to time;
	 
	 	(c)	 	the performance targets and the qualitative measurement criteria to be used in
determining the Company’s or an Operating Unit’s Relative Performance, which will
include one or more of the following targets or measures, as determined by the
Committee or its designee each year: net operating income or the growth in such net
operating income; operating earnings per share or the growth in such operating earnings
per share; annual growth in consolidated total revenue, loans and deposits; changes
or increases in market share; earnings before taxes or the growth in such earnings;
stock price or the growth in such price; return on equity, tangible equity, and assets
or the growth on such returns; total shareholders’ return or the growth in such return;
level of expenses or the reduction of expenses, overhead ratios or changes in such
ratios, efficiency ratios or changes in such ratios; loan quality or the changes in the
level of loan quality or changes in the ratios of net charge-offs to loans or
non-performing assets to assets; customer satisfaction scores or changes in scores;
and/or, economic value added or changes in such value added; and
	 
	 	(d)	 	the time or times, the form of payment, and the conditions subject to which any
Incentive Award may become payable.

     The Plan Rules will be adopted by the Committee prior to, or as soon as practical
after, the commencement of each Plan Year. Subject to the provisions of the Plan and the
Committee’s right to delegate its responsibilities, the Committee will also have the
discretionary authority to interpret the Plan, to prescribe, amend and rescind rules and
regulations relating to it, and to make all other determinations deemed necessary or
advisable in administering the Plan. The determinations of the Committee on the matters
referred to in paragraphs (a) through (d) of this Section 4 with respect to the Chief
Executive Officer (and such other Named Executive Officers as the Committee may determine)
shall be submitted at least annually to the Board of Directors for its consideration and
ratification. For Participants other than the Chief Executive Officer (and such other Named
Executive Officers as the Committee may determine), the Committee may in its discretion (i)
establish performance measures and criteria not listed in this Section 4 without obtaining
stockholder approval; and (ii) during a Plan Year revise the performance targets and
measurement criteria to the extent the Committee believes necessary to achieve the purposes
of the Plan in light of any unexpected or unusual circumstances.

	5.	 	PARTICIPATION

     Eligibility for participation in the Plan is limited to executive officers of the
Company and certain other executives and employees of the Company and its Operating Units or
affiliates who hold key management and staff positions. From among those eligible and based
upon the recommendations of the Chief Executive Officer and other designees, the Committee
will designate by name or position the Participants each Plan Year. Any employee who is a
Participant in one Plan Year may be excluded from participation in any other Plan Year. If,
during the Plan Year, a Participant other than the Chief Executive Officer (and such other
Named Executive Officers as the Committee may determine) changes employment positions to a
new position which corresponds to a different award level, the Committee may, in its
discretion, adjust the Participant’s award level for such Plan Year. The Committee may, in
its discretion, designate employees who are hired after the beginning of the Plan Year as
Participants for such Plan Year and as eligible to receive full or partial Incentive Awards
for such year.

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	6.	 	INCENTIVE AWARDS

6.1 Determination of the Amount of Incentive Awards

     At the end of each Plan Year, the Committee or its designee shall certify the extent to
which the performance targets and measurement criteria established pursuant to Section 4
have been achieved for such Plan Year based upon financial information provided by the
Company. A Participant’s Incentive Award shall be computed by the Committee based upon the
achievement of the established performance targets, qualitative measurement criteria and the
requirements of the Plan. In addition to any adjustments provided by the Incentive Award,
the Committee, in determining whether performance targets and qualitative measures have been
met, may adjust the Corporation’s financial results to exclude the effect of unusual charges
or income items or other events, including acquisitions or dispositions of businesses or
assets, recapitalizations, reorganizations, restructurings, reductions in force, changes in
accounting rules, which are distortive of results for the year (either on a segment or
consolidated basis); provided, that for purposes of determining the Incentive Awards of the
Chief Executive Officer (and such other Named Executive Officers as the Committee may
determine), that are intended to qualify as performance-based compensation under Code
Section 162(m), the Committee shall (in addition to such specific adjustments as may be
provided in the award) exclude unusual items whose exclusion has the effect of increasing
Relative Performance only if such items constitute “extraordinary items” under generally
accepted accounting principles or are unusual or non-recurring events or items. In
addition, the Committee will adjust its calculations to exclude the unanticipated effect on
financial results of changes in the Code or other tax laws, or the regulations relating
thereto.

     The Committee may, in its discretion, decrease the amount of a Participant’s Incentive
Award for any reason, including the Committee’s judgment that the performance targets and
qualitative measures have become an inappropriate measure of achievement, a change in the
employment status, position or duties of the Participant, unsatisfactory performance of the
Participant, or for such other reasons as the Committee deems appropriate.

     In the event that the Company’s or an Operating Unit’s performance is below the
anticipated performance thresholds for the Plan Year and the Incentive Awards are below
expectations or not earned at all, the Committee may in its discretion grant Incentive
Awards (or increase the otherwise earned Incentive Awards) to deserving Participants, except
for Incentive Awards to the Chief Executive Officer and other Named Executive Officers that
are intended to qualify as performance-based compensation under Code Section 162(m).

     The Plan Rules and Incentive Awards under the Plan shall be administered in a manner to
qualify payments under the Plan to the Chief Executive Officer (and such other Named
Executive Officers as the Committee may determine) for the performance-based exception under
Code Section 162(m) and the regulations thereunder, except where the Compensation Committee
or the Board of Directors determines such compliance is not necessary. The maximum
Incentive Award that may be paid to an individual Participant for a Plan Year shall be $2
million.

6.2 Eligibility for Payment of Incentive Award

     No Participant will have any vested right to receive any Incentive Award until such
date as the Board of Directors has ratified the Committee’s determination with respect to
the payment of individual Incentive Awards, except where the Committee determines such
ratification is not necessary. No Incentive Award will be paid to any Participant who is
not an active employee of

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the Company, an Operating Unit or an affiliate at the end of the Plan Year to which the
Incentive Award relates; provided, however, at the discretion of the Committee or its
designee (subject to ratification by the Board of Directors, where required, and the
limitations of Code Section 162(m)), partial Incentive Awards may be paid to Participants
(or their beneficiaries) who are terminated without cause (as determined by the Committee or
its designee) or who retire, die or become permanently and totally disabled during the Plan
Year. No Participant entitled to receive an Incentive Award shall have any interest in any
specific asset of the Company, and such Participant’s rights shall be equivalent to that of
a general unsecured creditor of the Company.

6.3 Payment of Awards

     Payment of the Incentive Awards will be made as soon as practicable after their
determination pursuant to Sections 6.1 and 6.2, subject to the Committee’s right to allow a
Participant to defer payment pursuant to an applicable deferred compensation plan of the
Company, if applicable. Payment under the Plan will generally be made in a lump sum in
cash, in restricted stock units, in options to purchase Common Stock of the Company (which
would be in addition to any options separately granted to the Participant under the
Company’s 2000 Key Employee Stock Option Plan), or in a combination of cash, restricted
stock units and stock options, as determined by the Committee, either at the time Awards are
established or when they are paid (which may be different for different groups of
Participants). In addition, the Committee may provide some or all of the Participants the
right to elect, within the time frames provided by the Committee, to receive a portion or
all of an Incentive Award in restricted stock units or in options to purchase Common Stock
of the Company, rather than cash

	7.	 	DELEGATION OF AUTHORITY BY THE COMMITTEE

     Notwithstanding the responsibilities of the Committee set forth herein, the Committee
may delegate to the Chief Executive Officer or others all or any portion of its
responsibility for administration of the Plan as it relates to Participants other than the
Chief Executive Officer. Such delegation may include, without limitation, the authority to
designate employees who can participate in the Plan, to establish Plan Rules, to interpret
the Plan, to determine the extent to which performance criteria have been achieved, and to
adjust any Incentive Awards that are payable. In the case of each such delegation, the
administrative actions of the delegate shall be subject to the approval of the person within
the Corporation to whom the delegate reports (or, in the case of a delegation to the Chief
Executive Officer, to the approval of the Committee).

	8.	 	CHANGE IN CONTROL

     Upon the occurrence of a Change in Control, unless the Participant otherwise elects in
writing in accordance with such rules as the Committee may establish, the Participant’s
Incentive Award for the Plan Year during which the Change in Control occurs shall be
determined as if the Target Award level of performance has been achieved (without any
reductions under Section 6.1) and shall be deemed to have been fully earned for the Plan
Year, provided that` the Participant shall only be entitled to a pro rata portion of the
Incentive Award based upon the number of days within the Plan Year that had elapsed as of
the effective date of the Change in Control. The Incentive Award amount shall be paid only
in cash within thirty (30) days of the effective date of the Change in Control. The
Incentive Award payable for the Plan Year during which a Change in Control occurs shall be
the greater of the amount provided for under this Section 8 or the amount of the Incentive
Award payable for such Plan Year to the Participant under the terms of any employment
agreement or severance agreement with the Corporation, its Operating Units or affiliates,
provided that the Participant shall not receive a duplicate Incentive Award for the same

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Plan Year (or portion of a Plan Year). Notwithstanding the above, the Committee may
provide in the Plan Rules for alternative consequences upon a Change in Control, which may
apply to some or all Participants and which may vary among Participants.

	9.	 	BENEFICIARY

     To the extent provided by the Committee or its designee, each Participant will
designate a person or persons to receive, in the event of death, any Incentive Award to
which the Participant would then be entitled under Section 6.2. Such designation will be
made in the manner determined by the Committee and may be revoked by the Participant in
writing. If the Committee does not provide for a designation of a beneficiary or if a
Participant fails effectively to designate a beneficiary, then the estate of the Participant
will be deemed to be the beneficiary.

	10.	 	WITHHOLDING OF TAXES

     The Company shall deduct from each Incentive Award the amount of any taxes required to
be withheld by any governmental authority.

	11.	 	EMPLOYMENT

     Nothing in the Plan or in any Incentive Award shall confer (or be deemed to confer)
upon any Participant the right to continue in the employ of the Company, an Operating Unit
or an affiliate, or interfere with or restrict in any way the rights of the Company, an
Operating Unit or an affiliate to discharge any Participant at any time for any reason
whatsoever, with or without cause.

	12.	 	SUCCESSORS

     All obligations of the Company under the Plan with respect to Incentive Awards granted
hereunder shall be binding upon any successor to the Corporation, whether such successor is
the result of an acquisition of stock or assets of the Company, a merger, a consolidation or
otherwise.

	13.	 	TERMINATION AND AMENDMENT OF THE PLAN; GOVERNING LAW

     The Committee, subject to the ratification rights of the Board of Directors, has the
right to suspend or terminate the Plan at any time, or to amend the Plan in any respect,
provided that no such action will, without the consent of a Participant, adversely affect
the Participant’s rights under an Incentive Award that has been approved under Section 6.2.
The Plan shall be interpreted and construed under the laws of the State of Georgia.

AS APPROVED BY THE BOARD OF DIRECTORS OF THE COMPANY ON THE 14th DAY OF DECEMBER,
2006.

6EX-10.1 AGREEMENT DATED 1/18/07, NEIL MCCURRY, JR.

 

Exhibit (10) - 1

AGREEMENT

     This Agreement (“Agreement”), dated as of January 18, 2007, is between Superior Bank, its
successors, assigns and affiliated companies (the “Company”) and Neil D. McCurry, Jr. (the
“Executive”).

     1. Replacement of Prior Agreements. This Agreement replaces and supersedes any prior
compensation agreement or benefit arrangement between the Company and the Executive which is
affected by a change in control of People’s Community Bancshares, Inc. or People’s Community Bank
of the West Coast or any other predecessor to the Company, including without limitation the
Employment Agreement dated January 3, 2006, as the same may have been amended (the “Employment
Agreement”) and the Supplemental Life Insurance Agreement dated December 6, 2004, as the same may
have been amended (the “Supplemental Life Agreement”), but does not supersede the Salary
Continuation Agreement dated December 6, 2004, which shall remain in full force and effect, except
as may be modified by Executive and People’s Community Bank of the West Coast with the consent of
the Company. The Executive acknowledges and agrees that in the instant immediately prior to the
consummation of the merger of People’s Community Bancshares, Inc. with and into Superior Bancorp
(the “Merger”), the Employment Agreement and the Supplemental Life Agreement shall no longer be in
effect and the Executive shall have no remaining rights under those agreements. As consideration
for the termination of the Employment Agreement and the Supplemental Life Agreement, the Company
shall pay to the Executive $1,100,000 in the first payroll next following the Effective Date of the
Merger. The Company shall make deductions from the payment hereunder in accordance with its
customary payroll practices. The compensation payable to Executive under this Section 1 shall be
absolute, subject to no contingencies, including but not limited to continued employment with the
Company, and shall survive the Executive’s death or disability.

     2. Continued Employment of Executive. Following the date of the consummation of the Merger
(the “Effective Date of the Merger”), Executive shall be employed on an at-will basis as the
Chairman and Chief Executive Officer of People’s Community Bank, a division of Superior Bank during
the post-closing period and will report to the Company’s President. Upon integration into the
Company’s system and name change, Executive will become the Company’s Southwest Florida Regional
Executive with direct management responsibility for all banking activities south of Tampa Bay.
Executive’s annual base salary shall be $225,000 and Executive will be eligible for a bonus of up
to 30% of base salary and shall also be eligible to participate in the Company’s long-term
incentive compensation plan. At the first meeting of the Compensation Committee of Superior
Bancorp’s Board of Directors following the Effective Date of the Merger, the Company shall
recommend that Executive receive a one-time grant of options to purchase the number of shares of
Superior Bancorp common stock calculated by dividing $100,000 by the exercise price therefor which
shall be the closing price for such shares on the NASDAQ National Market on the grant date.
Executive shall also be eligible for all welfare benefit, pension benefit, and bonus and incentive
compensation plans maintained by the Company on the same basis as other

 

 

employees at Executive’s level within the Company. Executive shall perform those duties as are
customarily associated with Executive’s positions and such other reasonable duties as may be
assigned to Executive. The Company may terminate Executive’s employment at any time for any
reason; provided however, if the Company terminates Executive’s employment, other than For Cause
(as defined in Section 4 below) or on account of the Executive’s death or total disability (as
defined in this Section), prior to the third anniversary of the Effective Date of the Merger,
Executive shall, within thirty (30) days following the termination of Executive’s employment,
receive a lump sum payment as soon as practical following such termination (but in no event later
than March 15th of the calendar year immediately following the calendar year in which
such termination occurs), unreduced for early receipt, equal to Executive’s base salary for the
period from the date of termination of Executive’s employment to the third anniversary of the
Effective Date of the Merger. For purposes of this Agreement, the term “total disability” shall
mean the Executive’s inability, as a result of illness or injury, to perform the normal duties of
his employment for a period of ninety (90) consecutive days.

     3. Additional Payments. In consideration for the covenants contained in Section 6, the
Company shall pay the Executive $1,500,000 in five equal annual installments with the first
installment payable in the first payroll following the Effective Date of the Merger and subsequent
installments payable on the anniversary of the Effective Date of the Merger. The Company shall
make deductions from the payment hereunder in accordance with its customary payroll practices. The
compensation payable to Executive under this Section 3(a) shall be absolute, subject to no
contingencies, including but not limited to continued employment, and shall survive the Executive’s
death or disability.

     4. For Cause Defined. “For Cause” shall mean (i) abuse of or addiction to intoxicating drugs
(including alcohol), which has adversely affected or may adversely affect the business or
reputation of the Company; (ii) any act or omission on the part of the Executive which constitutes
fraud, misrepresentation, embezzlement, misappropriation of corporate assets or theft; (iii) a
felony indictment of the Executive; (iv) a request by federal or state banking regulatory
authorities to terminate the Executive’s services hereunder; or (v) a material breach by the
Executive of any of the terms of this Agreement. Provided, however, that in the case of (v) above,
such conduct shall not constitute Cause unless the Company shall have delivered to the Executive
notice setting forth with specificity (A) the conduct deemed to qualify as Cause, (B) reasonable
action that would remedy such objection, and (c) a reasonable time (not less than thirty (30) days)
within which the Executive may take such remedial action, and the Executive shall not have taken
such specified remedial action within such specified reasonable time.

     5. Non-Disclosure of Information. The Executive acknowledges that any documents and
information, whether written or not, that came or come into the Executive’s possession or knowledge
during the Executive’s employment by the Company, including without limitation the financial and
business conditions, business methods, goals, operations, sales techniques or services of the
Company and its affiliates or subsidiaries as the same may exist from time to time (collectively,
“Confidential

 

 

Information”), are valuable, special and unique assets of the Company’s business. The Executive
will not, during or after the term of this Agreement: (a) disclose any written Confidential
Information to any person, firm, corporation, association, or other entity not employed by or
affiliated with the Company for any reason or purpose whatsoever, or (b) use any written
Confidential Information for any reason other than to further the business of the Company. The
Executive agrees to return immediately any written Confidential Information, and all copies
thereof, upon the termination of the Executive’s employment. In the event of a breach or threatened
breach by the Executive of the provisions of this Section 5, in addition to all other remedies
available to the Company, the Company shall be entitled to an injunction restraining the Executive
from disclosing any written Confidential Information or from rendering any services to any person,
firm, corporation, association or other entity to whom any written Confidential Information has
been disclosed or is threatened to be disclosed, without the need to post bond or other security.
In the event of any suit or arbitration with respect to the Executive’s obligations in this Section
5, the Executive shall pay all costs incurred by the Company in securing an injunction (or other
equitable remedy) and/or damages, including reasonable attorneys’ fees and expenses; provided,
however, in the event the Company is unsuccessful in obtaining any such remedy, the Executive shall
have no liability for the Company’s costs in connection with such suit or arbitration.

6. Competition.

     (a) During the period beginning on the Effective Date and ending on the fifth anniversary of
the Effective Date, Executive shall not, directly or indirectly: (i) form or acquire a five percent
(5%) or greater equity ownership, voting or profit participation interest in, or actively
participate in, control, manage or finance a five percent (5%) or greater interest of, or invest a
five percent (5%) or greater interest in, a Competitor (as defined below); (ii) associate
(including as an officer, employee, partner, director, consultant, agent, representative or
advisor) with any Competitor; (iii) solicit or do banking or similar business with any customer of
Company or any of its subsidiaries in the Territory (as defined below); or (iv) solicit any
employee of Company or any of its subsidiaries to leave his or her employment with Company or any
of its subsidiaries for any reason, or hire any such employee of Company or any of its
subsidiaries, without the prior written consent of Company. As used herein, “Competitor” shall
mean any bank or bank holding company, savings and loan or savings and loan holding company or
other financial institution that has a physical location within the Territory. As used herein,
“Territory” shall mean the Florida counties of Sarasota and Manatee.

     (b) In the event of any suit or arbitration with respect to the Executive’s obligations set
forth in Section 6(a), the Executive shall pay all costs incurred by the Company in securing an
injunction (or other equitable remedy) and/or damages, including reasonable attorneys’ fees and
expenses; provided, however, in the event the Company is unsuccessful in obtaining any such remedy,
the Executive shall have no liability for the Company’s costs in connection with such suit or
arbitration.

 

 

     (c) The Executive and the Company recognize that any subsidiaries or affiliates of the Company
are third-party beneficiaries to this Agreement that are intended to be protected by the covenants
in this Agreement and that any successor or assign of the Company or one of the third-party
beneficiaries to this Agreement may enforce the covenants in this Agreement as if it were a party
to these covenants. Moreover, the Executive and the Company acknowledge and agree that the Company
has legitimate business interests to protect relative to Executive, including trade secrets, other
valuable confidential and proprietary business information, substantial relationships with specific
customers, substantial relationships with other employees of the Company, the Company and customer
goodwill associated with the Company’s trade name, and the Company’s servicing of specific markets
provided to the Executive. The Executive agrees that the restrictions contained in this Section 6
are necessary and reasonable for the protection of the legitimate business interests and goodwill
of the Company described above, and the Executive agrees to waive any objection to the enforcement
of this covenant and that any breach of this Section 6 will cause the Company substantial and
irrevocable damage and, therefore, the Company shall have the right, in addition to any other
remedies it may have, to seek specific performance and injunctive relief, without the need to post
a bond or other security. The Executive agrees that the period during which the covenant contained
in this Section 6 shall be effective shall be computed by excluding from such computation any time
during which the Employee is in violation of any provision of Section 6. The Executive agrees that
if any covenant contained in Section 6 of this Agreement is found by a court of competent
jurisdiction to contain limitations as to time, geographical area, or scope of activity that are
not reasonable and impose a greater restraint than is necessary to protect the goodwill or other
business interest of the Company, then the court shall reform the covenant to the extent necessary
to cause the limitations contained in the covenant as to time, geographical area, and scope of
activity to be restrained to be reasonable and to impose a restraint that is not greater than
necessary to protect the goodwill and other business interests of the Company and to enforce the
covenant as reformed.

     (d) The Executive specifically recognizes and affirms that each of the covenants contained in
Sections 5 and 6 of this Agreement is a material and important term of this Agreement which has
induced the Company to provide for the award of the compensation and benefits provided hereunder
and the other promises made by Company herein.

     7. Enforcement
of the Company’s Obligations. In the event of any suit or arbitration with
respect to the Company’s obligations under this Agreement, the Company shall pay all costs incurred
by the Executive in securing an injunction (or other equitable remedy) and/or damages, including
reasonable attorneys’ fees and expenses; provided, however, in the event the Executive is
unsuccessful in obtaining any such remedy, the Company shall have no liability for the Executive’s
costs in connection with such suit or arbitration.

     8. Choice of Law. This Agreement shall be governed by, and interpreted in accordance with,
the laws of the State of Florida. The exclusive venue for disputes

 

 

arising out of this Agreement shall be the courts of the State of Florida located in Sarasota
County, Florida.

     9. Amendments. This Agreement may not be modified, amended or terminated except by a written
document executed by the Executive and a duly authorized representative of the Company.

     10. Entire Agreement. This Agreement sets forth the entire agreement between the Company and
the Executive with respect to the payments provided for herein.

     11. Binding Effect. This Agreement shall be binding upon, and inure to the benefit of, the
Company and the Executive, their respective heirs, successors, assigns, personal representatives
and affiliates; provided, however, that the Executive may not assign his right to any payment
hereunder.

     12. Severability. If any one or more of the provisions of this Agreement is held to be
invalid, illegal or unenforceable for any reason, then the invalidity, illegality or
unenforceability of that provision shall not affect any other provision of this Agreement. The
Company and the Executive intend that this Agreement shall be interpreted as if any invalid,
illegal or unenforceable provision were never included herein.

     13. Change in Control. In the event of a Change in Control of Superior Bancorp (the
“Parent”) all unpaid payments pursuant to this Agreement shall be paid at the effective time of the
Change in Control and Executive shall in no event be subject to the restrictions contained in
Section 6(a) longer than one year following the Change in Control. For purposes of this Agreement,
a “Change in Control” is hereby defined to be:

     (a) a merger, consolidation or other corporate reorganization of the Parent in which the
Parent does not survive, or, if it survives, the shareholders of the Parent before such transaction
do not own more than 50% of, respectively: (i) the Common Stock of the surviving entity, and (ii)
the combined voting power of any other outstanding securities entitled to vote on the election of
directors of the surviving entity;

     (b) the acquisition, other than from the Parent, by any individual, entity or group (within
the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended from
time to time (the “Exchange Act”) or any successor provision) of beneficial ownership of 25% or
more of either: (i) the then outstanding shares of Common Stock of the Parent, or (ii) the combined
voting power of the then outstanding voting securities of the Parent entitled to vote generally in
the election of directors; provided, however, that neither of the following shall constitute a
Change in Control:

     (A) any acquisition by the Parent, any of its subsidiaries, or any employee benefit
plan (or related trust) of the Parent or its subsidiaries, or

     (B) any acquisition by any corporation, entity, or group, if, following such
acquisition, more than 50% of the then outstanding voting rights of such

 

 

corporation, entity or group are owned, directly or indirectly, by all or
substantially all of the persons who were the owners of the Common Stock of the Parent
immediately prior to such acquisition;

     (c) individuals who, as of the effective date of this Agreement, constitute the Board of
Directors of the Parent (the “Incumbent Parent Board”) cease for any reason to constitute at least
a majority of such Board of Directors (the “Parent Board”), provided that any individual becoming a
director subsequent to such date, whose election, or nomination for election by the Parent’s
shareholders, was approved by a vote of at least a majority of the directors then comprising the
Incumbent Parent Board, shall be considered as though such individual were a member of the
Incumbent Parent Board, but excluding, for this purpose, any individual whose initial assumption of
office is in connection with an actual or threatened election contest relating to the election of
the directors of the Parent (as such terms are used in Rule 14a-11 of Regulation 14A promulgated
under the Exchange Act or any successor provision); or

     (d) approval by the shareholders of the Parent of:

     (i) a complete liquidation or dissolution of the Parent, or

     (ii) the sale or other disposition of all or substantially all the assets of the Parent, other
than to a corporation, with respect to which immediately following such sale or other disposition
more than 50%, respectively, of the then outstanding shares of common stock of such corporation,
and the combined voting power of the then outstanding voting securities of such corporation
entitled to vote generally in the election of directors, is then beneficially owned, directly or
indirectly, by all or substantially all of the individuals and entities who were the beneficial
owners, respectively, of the outstanding Common Stock of the Parent, and the outstanding voting
securities of the Parent immediately prior to such sale or other disposition, in substantially the
same proportions as their ownership, immediately prior to such sale or disposition, of the
outstanding Common Stock of the Parent and outstanding securities of the Parent, as the case may
be.

     14. Taxes. Executive agrees to be solely responsible for all federal, state and local
taxes and penalties which may be imposed on payments made pursuant to this Agreement, including but
not limited to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as
amended.

	 	 	 	 	 	 	 	 	 
	NEIL D. McCURRY, JR.	 	 	 	SUPERIOR BANK	 	 
	 
	 	 	 	 	 	 	 	 
	/s/
Neil D. McCurry, Jr.

	 	 	 	By:	 	/s/ C. Stanley Bailey	 	 
	 

Executive

	 	 
	 	 	 	 

	 	 
	 	 	 	 	CEO
	 	 
	 

	 	 	 	Title	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	1/18/07
	 	 	 	1/18/07
	 	 
	Date

	 	 	 	Date

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