1st United Bancorp, Inc.
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<TYPE>EX-10.2
<SEQUENCE>5
<FILENAME>q20836_ex10-2.htm
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<B><FONT size=2 face="Arial">LOAN AND STOCK PLEDGE AGREEMENT</FONT></B></TD></TR></TABLE>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="Arial">THIS LOAN AND STOCK PLEDGE AGREEMENT </FONT></B><FONT size=2 face="Arial">(the "Agreement"), entered into as of July 2, 2008,
by and between </FONT><B><FONT size=2 face="Arial">1</FONT></B><B><SUP><FONT size=2 face="Arial">ST </FONT></SUP></B><B><FONT size=2 face="Arial">UNITED BANCORP, INC., a Florida corporation </FONT></B><FONT size=2 face="Arial">(the "Borrower"), and </FONT><B><FONT size=2 face="Arial">SILVERTON BANK</FONT></B><FONT size=2 face="Arial">, </FONT><B><FONT size=2 face="Arial">N.A. </FONT></B><FONT size=2 face="Arial">(the "Lender").</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial">On the date hereof the Borrower is borrowing up to the principal amount of </FONT><B><FONT size=2 face="Arial">Five Million and
00/100 Dollars (&#36;5,000,000.00) </FONT></B><FONT size=2 face="Arial">from the Lender (the "Loan"), which will be evidenced by the Note as defined herein below. The Lender is willing to make the Loan to the Borrower on
the terms and conditions described below. The Borrower and Lender agree that the payment and performance of all obligations relating to the Loan will be secured through the pledge to the Lender of one hundred percent (100%) of the issued and
outstanding shares of capital stock owned or hereafter acquired by the Borrower (the "Stock") in 1</FONT><SUP><FONT size=2 face="Arial">st </FONT></SUP><FONT size=2 face="Arial">United Bank,
a Florida banking corporation, having its main office at One North Federal Highway, Boca Raton, Florida 33432 (the &#147;Bank&#148;). Certain capitalized terms used in this Agreement are defined in Section 22 of this Agreement.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial">In consideration of the premises and the mutual agreements and representations in this Agreement, the Lender and the Borrower agree as follows:</FONT></P>
<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><font size=2 face="Arial">1.</font></b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u><font size=2 face="Arial">Security
Interest</font></u></b><b><font size=2 face="Arial">.</font></b></P>
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<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><font size=2 face="Arial"></font></b>(a) &nbsp;&nbsp;&nbsp;The
Borrower hereby unconditionally grants and assigns to the Lender and its successors
and assigns a continuing security interest in and security title to the Stock.
The Borrower hereby delivers to the Lender all of its right, title and interest
in and to the Stock,
together with certificates representing the Stock and stock powers endorsed in
blank, as security for (i) all obligations of the Borrower to the Lender hereunder,
and (ii) payment and performance of all obligations of the Borrower to the Lender
 under the Note, whether direct or indirect, absolute or contingent, now or hereafter
existing, or due or to become due. If the Borrower receives, for any reason whatsoever,
any additional shares of the capital stock of the Bank, such shares shall
thereupon constitute Stock to be held by the Lender under the terms of this Agreement
and the Borrower shall immediately deliver such shares to the Lender, together
with stock powers endorsed in blank by the Borrower. Beneficial ownership of
the  Stock, including all voting, consensual and dividend rights, shall remain
in the Borrower until the occurrence of a Default.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial">(b) &nbsp;&nbsp;&nbsp;The Amount of the Loan shall not exceed twenty five percent (25%) of Bank&#146;s total equity. If, prior to repayment in full of the Loan, the amount of the
Loan exceeds twenty five percent (25%) of Bank&#146;s total equity, the Borrower shall either pay down the outstanding principal balance of the Loan or promptly deliver to the Lender on demand additional collateral of a type and value acceptable to
the Lender (and the Lender's judgment in valuing same shall be conclusive) so that the sum of the value of such additional collateral plus the Stock is equal to or in excess of the aforementioned twenty five percent (25%). The Borrower shall also
execute any security documents the Lender may request to evidence and perfect the Lender's rights in such additional collateral. If at any time such additional collateral is no longer required pursuant to this Section 1(b), the Lender shall release
its security interest in such additional collateral upon the request of the Borrower.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="Arial">2.&nbsp;&nbsp;&nbsp; </FONT></B><B><U><FONT size=2 face="Arial">Representations and Warranties</FONT></U></B><B><FONT size=2 face="Arial">. </FONT></B><FONT size=2 face="Arial">The Borrower represents and warrants to the Lender as follows:</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial">(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower is a corporation duly organized, validly existing, and in good standing under the laws of the State of Florida and is qualified to do business in
all jurisdictions where such qualification is necessary. The Borrower is registered as a bank holding company with the Board of Governors of the Federal Reserve System and the Florida Department of Banking and Finance. The chief executive office of
the Borrower and the principal place of business of the Borrower where the records of the Borrower are kept is One North Federal Highway, Boca Raton, Florida 33432 and the Borrower's U.S. employer identification number is 65-0925265.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial">(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Bank is a corporation duly organized, validly existing, and in good standing
under the laws of the State of Florida. The Borrower owns 100% of the Stock
(consisting 537,710 Shares of 1<SUP>st </SUP>United Bank, represented by certificate
Nos. 1) and there are no other outstanding shares of capital stock and no outstanding
options, warrants or other rights, which can be converted into shares of capital
stock of the Bank, and the Bank shall not issue any additional shares without
the prior written consent of Lender, which shall not be unreasonably withheld.
The Bank has all requisite corporate power and authority and possesses all licenses,</FONT></P>

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<FONT size=2 face="Arial">permits and authorizations necessary for it to own its properties and conduct its business as presently conducted.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial">(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each financial statement of the Borrower or any Subsidiary which has been delivered to the Lender presents fairly in all material respects the financial
condition of the Borrower or such Subsidiary as of the date indicated therein and the results of its operations for the periods shown therein. There has been no material adverse change, either existing or threatened, in the financial condition or
operations of the Borrower or any Subsidiary since the date of such financial statement.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial">(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower has full power and authority to execute and perform the Financing Documents. The execution, delivery, and performance by the Borrower of the
Financing Documents (i) have been duly authorized by all requisite action by the Borrower, (ii) do not violate any provision of law, and (iii) do not result in a breach of or constitute a default under any agreement or other instrument to which the
Borrower or any Subsidiary is a party or which the Borrower or any Subsidiary is bound. Each of the Financing Documents constitutes the legal, valid, and binding obligation of the Borrower enforceable in accordance with its terms.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except for the security interest created by this Agreement, the Borrower owns the Stock free and clear of all liens, charges, and encumbrances. The Stock is
duly issued, fully paid and non-assessable, and the Borrower has the unencumbered right to pledge the Stock.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; There is no action, arbitration, or other proceeding at law or in equity, or by or before any court, agency, or arbitrator, nor is there any judgment, order, or
other decree pending, anticipated, or threatened against the Borrower or any Subsidiary or against any of their properties or assets which might have a material adverse effect on the Borrower, any Subsidiary, or their respective properties or
assets, or which might call into question the validity or enforceability of the Financing Documents, or which might involve the alleged violation by the Borrower or any Subsidiary of any law, rule or regulation.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial"></FONT>&nbsp;<FONT size=2 face="Arial">(g) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial"></FONT>No consent or other authorization or filing with or of any governmental authority or other public body on the part of the Borrower or any Subsidiary is required
in connection with the Borrower's execution, delivery, or performance of the Financing Documents; or if required, all such prerequisites have been fully satisfied.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial"></FONT>&nbsp;&nbsp;<FONT size=2 face="Arial">(h) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial"></FONT>None of the transactions contemplated in this Agreement (including, without limitation, the use of the proceeds of the Loan) will violate or result in a
violation of Section 7 of the Securities Exchange Act of 1934, or any regulations issued pursuant thereto.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial"></FONT><FONT size=2 face="Arial">(i)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial"></FONT>The following are attached as exhibits hereto: true, correct and complete copies
of (i) the Borrower's and the Bank's Articles of Incorporation as in effect as
 of the date hereof; (ii) certificates of existence/evidence of active status
for the Borrower and the Bank issued by the Florida Secretary of State; (iii)
the bylaws of the Borrower in effect immediately prior to the adoption of the
resolutions
referred to below (and such bylaws have not been further altered or amended and
have been in full force and effect at all times since the adoption of such resolutions
through the date hereof); (iv) the bylaws of the Bank as of the date hereof;
(v)
resolutions (the "Resolutions") of the Board of Directors of the Borrower duly
adopted as of even date herewith via an Action By Written Consent. A quorum for
the transaction of business has signed same and the Resolutions have been since
adoption  and are now in full force and effect and have not been modified in
any respect. There have been no further amendments or other documents affecting
or altering the Borrower's or the Bank's articles of incorporation since the
date of the
certifications referred to above through the date hereof except with respect
to the acquisition of Equitable Financial Group, Inc., and the Borrower and the
Bank have remained in valid existence under the laws of the State of Florida
since such
dates.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="Arial">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B><B><U><FONT size=2 face="Arial">Affirmative Covenants</FONT></U></B><B><FONT size=2 face="Arial">. </FONT></B><FONT size=2 face="Arial">The Borrower agrees that so long as the Note is outstanding or this Agreement is in effect:</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial">(a) &nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall provide on a quarterly basis, as soon as practicable, and in any event within forty-five (45) days after the end of each quarter of
Borrower&#146;s fiscal year: (i) an internally generated consolidated financial statement of Borrower and Subsidiaries (consisting of profit and loss statement, balance sheet, cash flow statement and report on changes in stockholder&#146;s equity),
certified to the Lender by an authorized financial officer of the Borrower acceptable to the Lender; (ii) a Covenant Compliance Certificate as more particularly</FONT></P>
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<FONT size=2 face="Arial">2</FONT></P>

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<FONT size=2 face="Arial">set forth herein below; and (iii) a copy of the quarterly and annual call report and any other quarterly regulatory reports and filings as required by any Governmental Authority having
supervisory authority over the Borrower or any Depository Institution Subsidiary for each Depository Institution Subsidiary for the most recent calendar quarter and year. &#147;Covenant Compliance Certificate&#148; shall mean a certificate, in form
and content satisfactory to the Lender, which shall: (a) set forth the various financial covenants and ratios which the Borrower and the Depository Institution Subsidiaries are required to comply with during the term of this Agreement; (b) contain
calculations reflecting whether or not the Borrower or each Depository Institution Subsidiary, as the case may be, is in compliance with each such financial covenant or ratio requirement; (c) contain a statement as to whether or not the Borrower is
in default under the Loan Agreement or any of the other Loan Documents, and, if the Borrower is in default, such statement shall indicate the nature thereof as well as the steps which Borrower proposes to take in order to cure said default; and (d)
be certified to be true and correct by an authorized financial officer of the Borrower acceptable to the Lender.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial"></FONT><FONT size=2 face="Arial">(b) &nbsp;&nbsp;&nbsp;&nbsp;Borrower
shall provide as soon as practicable and in any event within one hundred twenty
(120) days after the end of each fiscal year, year end audited  consolidated
financial statements of the Borrower (consisting of profit and loss statement,
balance sheet, cash flow statement and report on changes in stockholders equity)
that are examined and reviewed by a certified public accountant selected by
Borrower and reasonably acceptable to Lender (Lender acknowledges Crowe Chizek
as acceptable), together with the unqualified opinion of such accountant.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial"></FONT><FONT size=2 face="Arial">(c) &nbsp;&nbsp;&nbsp;&nbsp;Borrower
will provide copies of all internal and external loan reviews within 30 days
of issuance. Promptly upon receipt thereof, a copy of each other report  submitted
to the Borrower or any Subsidiary by independent accountants in connection with
any annual, interim or special audit made by them of the books of the Borrower
or any Subsidiary.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial"></FONT><FONT size=2 face="Arial">(d) &nbsp;&nbsp;&nbsp;&nbsp;Promptly
upon transmission thereof, Borrower shall provide copies of all such financial
statements, proxy statements, notices, and reports as it shall send to  its stockholders
and of all registration statements (with exhibits) and all reports which it is
or may be required to file with the Securities and Exchange Commission or any
governmental body or agency succeeding to the functions of such
Commission.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial"></FONT><FONT size=2 face="Arial">(e) &nbsp;&nbsp;&nbsp;&nbsp;Promptly
upon receipt thereof, Borrower shall provide a copy of each other report submitted
to the Borrower or any subsidiary by independent accountants in  connection with
any annual, interim or special audit made by them of the books of the Borrower
or any Subsidiary.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial"></FONT><FONT size=2 face="Arial">(f) &nbsp;&nbsp;&nbsp;&nbsp;The
Borrower and each Subsidiary shall punctually pay and discharge all taxes, assessments
and other governmental charges or levies imposed upon it or upon its  income
or upon any of its property unless contested in good faith by appropriate proceedings.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial"></FONT><FONT size=2 face="Arial">(g) &nbsp;&nbsp;&nbsp;&nbsp;The
Borrower and each Subsidiary shall comply in all material respects with all requirements
of constitutions, statutes, rules, regulations, and orders and all  orders and
decrees of courts and arbitrators applicable to it or its properties.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial"></FONT><FONT size=2 face="Arial">(h) &nbsp;&nbsp;&nbsp;&nbsp;The
Borrower shall quarterly notify the Lender of any change in executive management
or the beneficial ownership of the Borrower's stock by executive officers,  directors
or 25% or greater shareholder of the Borrower.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial"></FONT><FONT size=2 face="Arial">(i) &nbsp;&nbsp;&nbsp;&nbsp;Upon
Lender&#146;s reasonable request, during regular business hours, and upon reasonable
prior notice, the Borrower will allow the Lender to inspect its Books,  to perform
a review of the loan portfolio of each Subsidiary as deemed necessary, and to
review internal and external loan review reports in a manner which is not unduly
disruptive to the business of Borrower.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial"></FONT><FONT size=2 face="Arial">(j) &nbsp;&nbsp;&nbsp;&nbsp;The
Borrower will maintain Debt Service Coverage of at least 1.25x calculated as
set forth in Paragraph 22(d) herein below. This covenant shall be measured
quarterly.</FONT></P>
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<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;(k) &nbsp;&nbsp;&nbsp;&nbsp;Bank
must maintain regulatory approval to provide dividends to Borrower necessary
to adequately
service
the Loan.</FONT></P>
<P align="justify"><font size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;(l)</font>&nbsp;<FONT size=2 face="Arial"> &nbsp;&nbsp;&nbsp;&nbsp;</FONT><font size=2 face="Arial">Bank
is to maintain a pass rating from all of its governing regulatory</font>&nbsp;<font size=2 face="Arial">agencies.</font>&nbsp; </P>
<P align="justify"><font size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;(m) &nbsp;&nbsp;&nbsp;&nbsp;In
the event a trust preferred is issued, proceeds of the trust preferred are not
expected to repay the principal of the Loan.</font></P>
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<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;(n) &nbsp;&nbsp;&nbsp;&nbsp;Upon
the Lender's written request, the Borrower shall provide any financial information,
and/or other information and/or documentation as reasonably requested by the
Lender, including without limitation, copies of SEC reports, including but not
limited to, 10K
reports, 10Q reports.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="Arial">4.&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B><B><U><FONT size=2 face="Arial">Negative Covenants</FONT></U></B><B><FONT size=2 face="Arial">. </FONT></B><FONT size=2 face="Arial">The Borrower agrees that so long as the Note is outstanding or this Agreement is in effect:</FONT></P>
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<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(a) &nbsp;&nbsp;&nbsp;&nbsp;Borrower&#146;s
Tier 1 Capital Leverage Ratio shall be &#147;Adequately Capitalized&#148;, and
shall be measured quarterly.</FONT></P>
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<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(b) &nbsp;&nbsp;&nbsp;&nbsp;Borrower&#146;s
Tier 1 Risk Based Capital Ratio shall be &#147;Adequately Capitalized&#148;,
and shall be measured quarterly.</FONT></P>
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<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(c) &nbsp;&nbsp;&nbsp;&nbsp;Subsidiary&#146;s
Tier 1 Capital Leverage Ratio shall be maintained as &#147;Well Capitalized&#148;,
and shall be measured quarterly.</FONT></P>
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<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(d) &nbsp;&nbsp;&nbsp;&nbsp;Subsidiary&#146;s
Tier 1 Risk Based Capital Ratio shall be &#147;Well Capitalized&#148;, to be
measured quarterly.</FONT></P>
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<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(e) &nbsp;&nbsp;&nbsp;&nbsp;Borrower&#146;s
Non-Performing Assets (defined as the sum of bank subsidiaries of (i) cash basis
loans, (ii) loans 90 days or more past due, (iii) renegotiated  loans plus, (iv)
other real estate, plus (iv) other assets described as &#147;other non-performing
assets&#148; on Borrower&#146;s consolidated financial statements divided by
the sum of (i) loans plus, (ii) other real estate, shall be less than  1.50%,
measured quarterly.</FONT></P>
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<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(f) &nbsp;&nbsp;&nbsp;&nbsp;The
Borrower will notify the Lender immediately of all significant changes in executive
management.</FONT></P>
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<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(g) &nbsp;&nbsp;&nbsp;&nbsp;No
dividend shall be paid by the Borrower if the Loan is in default or if the dividend
would create a default without prior Lender approval.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(h) &nbsp;&nbsp;&nbsp;&nbsp;The
Borrower shall not, directly or indirectly, become a guarantor of any obligation
of, or an endorser of, or otherwise assume or become liable upon any notes,
obligations, or other indebtedness of any other Person (other than a Subsidiary)
except in connection with the depositing of checks in the normal and ordinary
course of business.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;The
Borrower shall not create, incur, assume or suffer to exist any indebtedness or Liabilities (other than this facility) for borrowed money, any indebtedness evidenced by notes, debentures or similar obligations or any conditional sales or title retention
agreements or capitalized leases, which in any single case, or in aggregate, exceed One Million and 00/100 Dollars (&#36;1,000,000.00), without the prior written consent of the Lender, which shall not be unreasonably withheld.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(j) &nbsp;&nbsp;&nbsp;&nbsp;The
Borrower shall not permit any Subsidiary to issue, sell or otherwise dispose
or part with control of any shares of any class of its stock (other than
directors&#146; qualifying shares) except to the Borrower or a wholly-owned Subsidiary
of the Borrower.</FONT></P>
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<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(k) &nbsp;&nbsp;&nbsp;&nbsp;The
Borrower shall not sell or otherwise dispose or part with control of any of the
Stock or any other securities or indebtedness of any Subsidiary, and the  Borrower
shall not pledge or otherwise transfer or grant a security interest in any of
the capital stock or other securities or of its Subsidiary, except to Lender.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(l) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Borrower shall not outside the ordinary course of business, and shall not permit
the Bank&#146;s Subsidiary to, pledge any assets to any other Person
without the prior written consent of the Lender.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;(m) &nbsp;&nbsp;&nbsp;The
Borrower and Subsidiary must not be in a situation requiring a material formal
enforcement action by its Regulators as it relates to the financial condition
of the Borrower and/or the Subsidiary.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="Arial">5.&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B><B><U><FONT size=2 face="Arial">Advances Under the Loan</FONT></U></B><B><FONT size=2 face="Arial">. </FONT></B><FONT size=2 face="Arial">The Lender shall not be obligated to make any advance of the Loan to the Borrower unless in each instance, at the time of each
advance:</FONT></P>
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<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(a)  &nbsp;&nbsp;&nbsp;&nbsp;All representations and warranties of the Borrower contained in this Agreement or the Note shall be true in all material respects on and as of the date of each
advance of the Loan.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(b) &nbsp;&nbsp;&nbsp;&nbsp;The
Borrower and each Subsidiary shall have performed in all material respects all
their agreements and obligations required by the Financing
Documents.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(c) &nbsp;&nbsp;&nbsp;&nbsp;No
material adverse change shall have occurred in the Borrower's or any Subsidiary's
condition (financial or otherwise), or in the business, properties, assets,
liabilities, prospects, or management of the Borrower or any Subsidiary since
the date of this Agreement.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(d) &nbsp;&nbsp;&nbsp;&nbsp;No
Default or event which, with the giving of notice or passage of time (or both),
would constitute a Default under the terms of this Agreement shall have
occurred.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;All
other matters incidental to the Loan shall be satisfactory to the Lender.</FONT></P>
<P align="justify"><b><font size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.</font></b>&nbsp; &nbsp; &nbsp;<b><u><font size=2 face="Arial">Default</font></u></b><b><font size=2 face="Arial">. </font></b><font size=2 face="Arial">A "Default" shall
exist if any of the following occurs:</font></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;Failure
of the Borrower
punctually to make any payment of any amount payable, whether principal or interest
or other amount, on any of the Liabilities, whether at maturity, or at a date
fixed for any prepayment or partial prepayment, or by acceleration, or  otherwise,
subject to applicable grace or cure periods.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(b) &nbsp;&nbsp;&nbsp;&nbsp;Any
statement, representation, or warranty of the Borrower made in any of the Financing
Documents or at any time furnished by or on behalf of the Borrower to  the Lender
shall be false or misleading in any material respect as of the date made.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(c) &nbsp;&nbsp;&nbsp;&nbsp;Failure
of the Borrower punctually and fully to comply with (i) any of the covenants
in Section 4 of this Agreement or (ii) any of the other covenants set forth
in this Agreement if such failure under this clause (ii) is not remedied within
thirty (30) days after notice from the Lender to the Borrower.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(d) &nbsp;&nbsp;&nbsp;&nbsp;The
occurrence of a default under any other agreement to which the Borrower and the
Lender are parties or under any other instrument executed by the Borrower in

favor of the Lender.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(e) &nbsp;&nbsp;&nbsp;&nbsp;If
the Borrower or any Subsidiary becomes insolvent as defined in the Georgia Uniform
Commercial Code or makes an assignment for the benefit of creditors; or if  any
action is brought by the Borrower or any Subsidiary seeking dissolution of the
Borrower or such Subsidiary or liquidation of its assets or seeking the appointment
of a trustee, interim trustee, receiver, or other custodian for any of its
property; or if the Borrower or any Subsidiary commences a voluntary case under
the Federal Bankruptcy Code; or if any reorganization or arrangement proceeding
is instituted by the Borrower or any Subsidiary for the settlement, readjustment,
 composition or extension of any of its debts upon any terms; or if any action
or petition is otherwise brought by the Borrower or any Subsidiary seeking similar
relief or alleging that it is insolvent or unable to pay its debts as they
mature.</FONT></P>
<P align="center">
<FONT size=2 face="Arial">5</FONT></P>

<HR noshade align="center" width="100%" size=2 >
<page>


<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(f) &nbsp;&nbsp;&nbsp;&nbsp;Any
action is brought against the Borrower or any Subsidiary seeking dissolution
of the Borrower or such Subsidiary or liquidation of any of its assets or  seeking
the appointment of a trustee, interim trustee, receiver, or other custodian for
any of its property, and such action is consented to or acquiesced in by the
Borrower or such Subsidiary or is not dismissed within ninety (90) days of the
date
upon which it was instituted; or any proceeding under the Federal Bankruptcy
Code is instituted against the Borrower or any Subsidiary and (i) an order for
relief is entered in such proceeding or (ii) such proceeding is consented to
or acquiesced in  by the Borrower or such Subsidiary or is not dismissed within
ninety (90) days of the date upon which it was instituted; or any reorganization
or arrangement proceeding is instituted against the Borrower or any Subsidiary
for the settlement,
readjustment, composition, or extension of any of its debts upon any terms, and
such proceeding is consented to or acquiesced in by the Borrower or such Subsidiary
or is not dismissed within ninety (90) days of the date upon which it was instituted;
 or any action or petition is otherwise brought against the Borrower or any Subsidiary
seeking similar relief or alleging that it is insolvent, unable to pay its debts
as they mature, or generally not paying its debts as they become due, and such

action or petition is consented to or acquiesced in by the Borrower or such Subsidiary
or is not dismissed within ninety (90) days of the date upon which it was brought.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(g) &nbsp;&nbsp;&nbsp;&nbsp;The
Borrower or any Subsidiary is in default (or an event has occurred which, with
the giving of notice or passage of time, or both, will cause the Borrower or
 any Subsidiary to be in default) on indebtedness to another Person, and the
amount of such indebtedness exceeds Twenty Five Thousand and 00/100 Dollars (&#36;25,000.00)
or the acceleration of the maturity of such indebtedness would have a material

adverse effect upon the Borrower or such Subsidiary.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(h) &nbsp;&nbsp;&nbsp;&nbsp;Any
other material adverse change occurs in the Borrower's financial condition or
means or ability to pay the Liabilities.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
cease and desist or other order has been threatened, noticed, or entered against
the Borrower or any Subsidiary by any bank or bank holding company  regulatory
agency or body, or the Borrower or any Subsidiary enters into any form of memorandum
of understanding, plan of corrective action, or letter agreement with any such
regulatory agency or body, or any other regulatory enforcement action is
taken against the Borrower or any Subsidiary relating to the capitalization,
management, or operation of the Borrower or any Subsidiary.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(j) &nbsp;&nbsp;&nbsp;&nbsp;The
Borrower or any Subsidiary is indicted or convicted or pleads guilty or </FONT><U><FONT size=2 face="Arial">nolo
contendere
</FONT></U><FONT size=2 face="Arial">or regulatory
enforcement actions are initiated regarding any charge that the Borrower or such
Subsidiary has violated any drug, controlled substances, money laundering, currency
 reporting, racketeering, or racketeering-influenced-and-corrupt-organization
statute or regulations other forfeiture statute.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(k) &nbsp;&nbsp;&nbsp;&nbsp;The
Borrower ceases to own one hundred percent (100%) of the issued and outstanding
capital stock of the Bank.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(l) &nbsp;&nbsp;&nbsp;&nbsp;The
Borrower or Subsidiary are placed under any regulatory enforcement action.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="Arial">7.&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B><B><U><FONT size=2 face="Arial">Remedies Upon Default</FONT></U></B><B><FONT size=2 face="Arial">. </FONT></B><FONT size=2 face="Arial">Upon the occurrence of a Default, the Lender shall be entitled, without limitation, to exercise the following rights at any time and
from time to time, which the Borrower hereby agrees to be commercially reasonable, provided however, Borrower shall have thirty (30) days to cure said Default upon written notice:</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(a) &nbsp;&nbsp;&nbsp;&nbsp;declare
any of the Liabilities due and payable, whereupon they immediately will become
due and payable (notwithstanding any provisions to the contrary, and  without
presentment, demand, notice or protest of any kind (all of which are expressly
waived by the Borrower));</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(b) &nbsp;&nbsp;&nbsp;&nbsp;(i) receive all amounts payable in respect of the Collateral otherwise payable to the Borrower; (ii) settle all accounts, claims, and controversies relating to
the Collateral; (iii) transfer all or any part of the Collateral into the Lender's or any nominee's name; and (iv) execute all agreements and other instruments; bring, defend and abandon all actions and other proceedings; and take all actions in
relation to the Collateral as the Lender in its sole discretion may determine;</FONT></P>
<P align="center">
<FONT size=2 face="Arial">6</FONT></P>

<HR noshade align="center" width="100%" size=2 >
<page>



<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(c) &nbsp;&nbsp;&nbsp;&nbsp;enforce
the payment of the Stock and exercise all of the rights, powers and remedies
of the Borrower thereunder, including the exercise of all voting rights and
other ownership or consensual rights of the Stock (but the Lender is not hereby
obligated to exercise such rights), and in connection therewith the Borrower
hereby appoints the Lender to be the Borrower's true and lawful attorney-in-fact
and
IRREVOCABLE PROXY to vote the Stock in any manner the Lender deems advisable
for or against all matters submitted to a vote of shareholders, and such power-of-attorney
is coupled with an interest and irrevocable;</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(d) &nbsp;&nbsp;&nbsp;&nbsp;sell,
assign and deliver, or grant options to purchase, all or any part of or interest
in the Collateral in one or more parcels, at any public or private sale  at any
exchange, any of the Lender's offices, or elsewhere, without demand of performance,
advertisement, or notice of intention to sell or of the time or place of sale
or adjournment thereof or to redeem or otherwise (all of which are hereby
expressly and irrevocably waived by the Borrower), for cash, on credit, or for
other property, for immediate or future delivery without any assumption of credit
risk, and for such price and on such terms as the Lender in its sole discretion
may  determine; the Borrower agrees that to the extent that notice of sale shall
be required by law that at least five (5) business days' notice to the Borrower
of the time and place of any public sale or the time after which any private
sale is to be
made shall constitute reasonable notification; the Lender shall not be obligated
to make any sale of Collateral regardless of notice of sale having been given;
the Lender may adjourn any public or private sale from time to time by announcement
at  the time and place fixed therefor, and any such sale may, without further
notice, be made at the time and place to which it was so adjourned; the Borrower
hereby waives and releases to the fullest extent permitted by law any right or
equity of
redemption with respect to the Collateral, whether before or after sale hereunder,
and all rights, if any, of marshalling the Collateral and any other security
for the Loan or otherwise; at any such sale, unless prohibited by applicable
law, the  Lender may bid for and purchase all or any part of the Collateral so
sold free from any such right or equity of redemption; and the Lender shall not
be liable for failure to collect or realize upon any or all of the Collateral
or for any delay in so
doing nor shall any of them be under any obligation to take any action whatsoever
with regard thereto;</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(e) &nbsp;&nbsp;&nbsp;&nbsp;appoint
and dismiss managers or other agents for any of the purposes mentioned in the
foregoing provisions of this Section 7, all as the Lender in its sole  discretion
may determine; and</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(f) &nbsp;&nbsp;&nbsp;&nbsp;generally,
take all such other action as the Lender in its sole discretion may determine
as incidental or conducive to any of the matters or powers mentioned in  this
Section 7 and which the Lender may or can do lawfully and use the name of the
Borrower for such purposes and in any proceedings arising therefrom.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="Arial">8.&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B><B><U><FONT size=2 face="Arial">Application of Proceeds</FONT></U></B><FONT size=2 face="Arial">. The proceeds of the public or private sale or other disposition of any Collateral hereunder shall be applied to (i) the costs incurred in connection with the sale, expressly including, without limitation,
any costs under Section 11(a) hereof; (ii) any unpaid interest which may have accrued on any obligations secured hereby; (iii) any unpaid principal on any obligations secured hereby; and (iv) damages incurred by the Lender by reason of any breach
secured against hereby, in such order as the Lender may determine, and any remaining proceeds shall be paid over to the Borrower or others as by law provided. If the proceeds of the sale or other disposition of the Stock are insufficient to pay all
such amounts, the Borrower shall remain liable to the Lender for the deficiency.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="Arial">9.&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B><B><U><FONT size=2 face="Arial">Additional Rights of Secured Parties</FONT></U></B><B><FONT size=2 face="Arial">. </FONT></B><FONT size=2 face="Arial">In addition to its other rights and privileges under this Agreement, the Lender may exercise from time to time any and all other
rights and remedies available to a secured party when a debtor is in default under a security agreement as provided in the Uniform Commercial Code of Georgia, or available to the Lender under any other applicable law or in equity, including without
limitation the right to any deficiency remaining after disposition of the Collateral. The Borrower shall pay all of the reasonable costs and expenses (including reasonable attorneys' fees) incurred by the Lender in enforcing its rights under this
Agreement.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="Arial">10.&nbsp;&nbsp;&nbsp; </FONT></B><B><U><FONT size=2 face="Arial">Return of Stock to Borrower</FONT></U></B><B><FONT size=2 face="Arial">. </FONT></B><FONT size=2 face="Arial">Upon payment in full of all principal and interest on the Note, the Lender shall return to the Borrower (i) all of the then remaining
Stock and (ii) all rights received by the Lender as agent for the Borrower as a result of its possessory interest in the Stock.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="Arial">11.&nbsp;&nbsp;&nbsp; </FONT></B><B><U><FONT size=2 face="Arial">Disposition of Stock by Agent</FONT></U></B><B><FONT size=2 face="Arial">. </FONT></B><FONT size=2 face="Arial">The Stock is not registered under the various federal or state securities laws and disposition thereof after default may be subject to
prior</FONT></P>
<P align="center">
<FONT size=2 face="Arial">7</FONT></P>

<HR noshade align="center" width="100%" size=2 >
<page>



<P align="justify">
<FONT size=2 face="Arial">regulatory approval and may be restricted to one or more private (instead of public) sales in view of the lack of such registration. The Borrower acknowledges that upon such disposition, the
Lender may approach only a restricted number of potential purchasers and that a sale under such circumstances may yield a lower price for the Stock than if the Stock were registered pursuant to federal and state securities laws and sold on the open
market. The Borrower, therefore, agrees that:</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(a) &nbsp;&nbsp;&nbsp;&nbsp;if
the Lender shall, pursuant to the terms of this Agreement, sell or cause any
of the Stock to be sold at a private sale, the Lender shall have the right to
 rely upon the advice and opinion of any national brokerage or investment firm
having recognized expertise and experience in connection with shares of companies
in the banking industry (but shall not be obligated to seek such advice and the
failure
to do so shall not be considered in determining the commercial reasonableness
of the Lender's action) as to the best manner in which to expose the Stock for
sale and as to the best price reasonably obtainable at the private sale thereof;

and</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(b) &nbsp;&nbsp;&nbsp;&nbsp;such
reliance shall be conclusive evidence that the Lender has handled such disposition
in a commercially reasonable manner.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="Arial">12.&nbsp;&nbsp;&nbsp; </FONT></B><B><U><FONT size=2 face="Arial">Borrower's Obligations Absolute</FONT></U></B><B><FONT size=2 face="Arial">. </FONT></B><FONT size=2 face="Arial">The obligations of the Borrower under this Agreement shall be direct and immediate and not conditional or contingent upon the pursuit
of any other remedies against the Borrower or any other Person, nor against other security or liens available to the Lender or its successors, assigns or agents. The Borrower hereby waives any right to require that an action be brought against any
other Person or require that resort be had to any security or to any balance of any deposit account or credit on the books of the Lender in favor of any other Person prior to any exercise of rights or remedies hereunder, or to require resort to
rights or remedies of the Lender in connection with the Loan.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="Arial">13.&nbsp;&nbsp;&nbsp; </FONT></B><B><U><FONT size=2 face="Arial">Notices</FONT></U></B><B><FONT size=2 face="Arial">. </FONT></B><FONT size=2 face="Arial">Except as provided otherwise in this Agreement, all notices and other communications under this Agreement are to be in writing and are
to be deemed to have been duly given and to be effective upon receipt by the party to whom they are directed. If sent by U.S. mail, first class, certified, return receipt requested, postage prepaid, and addressed to the Lender or to the Borrower at
their respective addressees set forth below, such communications are deemed to have been delivered upon receipt.</FONT></P>
<P align="left">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
  <TR valign="top"><TD width="15%" nowrap>&nbsp;
</TD>
    <TD width="20%" nowrap><font size=2 face="Arial">If to the
    Lender:</font></TD>
    <TD nowrap><font size=2 face="Arial">SILVERTON
        BANK, N.A.</font><br>
      <font size=2 face="Arial">3284 Northside Parkway</font><br>
      <font size=2 face="Arial">Atlanta, Georgia
      30327</font><br>
      <font size=2 face="Arial">Attn: Jeffrey S.
    Neale, Senior Vice President</font></TD>
</TR>
  <TR valign="top">
    <TD nowrap>&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
  </TR>
  <TR valign="top">
    <TD nowrap>&nbsp;</TD>
    <TD nowrap><font size=2 face="Arial">If to the
    Borrower:</font></TD>
    <TD nowrap><font size=2 face="Arial">1</font><sup><font size=2 face="Arial">ST </font></sup><font size=2 face="Arial">UNITED
        BANCORP, INC.,</font><br>
      <font size=2 face="Arial">a Florida corporation
      (Borrower)</font><br>
      <font size=2 face="Arial">One North Federal
      Hwy.</font><br>
      <font size=2 face="Arial">Boca Raton, Florida
      33432</font><br>
      <font size=2 face="Arial">Attn: John Marino,
    President</font></TD>
  </TR>
</TABLE>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial">Either the Lender or the Borrower may, by written notice to the other, designate a different address for receiving notices under this Agreement; provided, however,
that no such change of address will be effective until written notice thereof is actually received by the party to whom such change of address is sent.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="Arial">14.&nbsp;&nbsp;&nbsp; </FONT></B><B><U><FONT size=2 face="Arial">Binding Agreement</FONT></U></B><B><FONT size=2 face="Arial">. </FONT></B><FONT size=2 face="Arial">The provisions of this Agreement shall be construed and interpreted, and all rights and obligations of the parties hereto determined,
in accordance with the laws of the State of Georgia. This Agreement, together with all documents referred to herein, constitutes the entire Agreement between the Borrower and the Lender with respect to the matters addressed herein and may not be
modified except by a writing executed by the Lender and delivered by the Lender to the Borrower. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original but all of which, taken together, shall constitute
one and the same instrument.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="Arial">15.&nbsp;&nbsp;&nbsp; </FONT></B><B><U><FONT size=2 face="Arial">Participations</FONT></U></B><B><FONT size=2 face="Arial">. </FONT></B><FONT size=2 face="Arial">The Lender may at any time grant participations in or sell, assign, transfer or otherwise dispose of all or any portion of the
indebtedness of the Borrower outstanding pursuant to the Financing Documents. The Borrower hereby agrees that any holder of a participation in, and any assignee or transferee of, all or any portion of any amount owed by the</FONT></P>
<P align="center">
<FONT size=2 face="Arial">8</FONT></P>

<HR noshade align="center" width="100%" size=2 >
<page>


<P align="justify">
<FONT size=2 face="Arial">Borrower under the Financing Documents (i) shall be entitled to the benefits of the provisions of this Agreement as the Lender hereunder and (ii) may exercise any and all rights of the banker's
lien, set-off or counterclaim with respect to any and all amounts owed by the Borrower to such assignee, transferee or holder as fully as if such assignee, transferee or holder had made the Loan in the amount of the obligation in which it holds a
participation or which is assigned or transferred to it. Notwithstanding the foregoing, in the event Lender decides to participate the Loan, Lender shall only participate with non-Florida lenders.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="Arial">16.&nbsp;&nbsp;&nbsp; </FONT></B><B><U><FONT size=2 face="Arial">Loan Fee/Expenses</FONT></U></B><B><FONT size=2 face="Arial">. </FONT></B><FONT size=2 face="Arial">Borrower shall pay to Lender a Loan Fee in the annual amount of one-eighth of one percent (1/8%) which will be assessed quarterly on a
per-annum basis based on the average unused portion of the Loan. Additionally, all reports and other documents or information furnished to the Lender under this Agreement shall be supplied by the Borrower without cost to the Lender. Further, the
Borrower shall reimburse the Lender on demand for all reasonable out-of-pocket costs and expenses (including legal fees) incurred by the Lender in connection with the preparation, interpretation, operation, and enforcement of the Financing Documents
or the protection or preservation of any right or claim of the Lender with respect to such agreements. The Borrower will pay all taxes (if any) in connection with the Financing Documents. The obligations of the Borrower under this section shall
survive the payment of the Liabilities and the termination of this Agreement.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="Arial">17.&nbsp;&nbsp;&nbsp; </FONT></B><B><U><FONT size=2 face="Arial">Indemnification</FONT></U></B><B><FONT size=2 face="Arial">. </FONT></B><FONT size=2 face="Arial">In addition to any other amounts payable by the Borrower under this Agreement, the Borrower shall pay and indemnify the Lender from
and against all claims, liabilities, losses, costs, and expenses (including, without limitation, reasonable attorneys' fees and expenses) which the Lender may (other than as a result of the gross negligence or willful misconduct of the Lender) incur
or be subject to as a consequence, directly or indirectly, of (i) any breach by the Borrower of any warranty, term or condition in, or the occurrence of any default under, any of the Financing Documents, including all fees or expenses resulting from
the settlement or defense of any claims or liabilities arising as a result of any such breach or default, (ii) the Lender's making, holding, or administering the Loan or the Collateral, (iii) allegations of participation or interference by the
Lender in the management, contractual relations or other affairs of the Borrower or any Subsidiary, (iv) allegations that the Lender has joint liability with the Borrower or any Subsidiary for any reason, and (v) any suit, investigation, or
proceeding as to which the Lender or such participant is involved as a consequence, directly or indirectly, of its execution of any of the Financing Documents, or any other event or transaction contemplated by any of the foregoing. The obligations
of Borrower under this Section 17 shall survive the termination of this Agreement.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="Arial">18.&nbsp;&nbsp;&nbsp; </FONT></B><B><U><FONT size=2 face="Arial">Right to Set-Off</FONT></U></B><B><FONT size=2 face="Arial">. </FONT></B><FONT size=2 face="Arial">Upon the occurrence of a Default hereunder, the Lender, without notice or demand of any kind, may hold and set off against such of the
Liabilities (whether matured or unmatured) as the Lender may elect any balance or amount to the credit of the Borrower in any deposit, agency, reserve, holdback or other account of any nature whatsoever maintained by or on behalf of the Borrower
with the Lender at any of its offices, regardless of whether such accounts are general or special and regardless of whether such accounts are individual or joint. Any Person purchasing an interest in debt obligations under this Agreement held by the
Lender may exercise all rights of offset with respect to such interest as fully as if such Person were a holder of debt obligations hereunder in the amount of such interest.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="Arial">19.&nbsp;&nbsp;&nbsp; </FONT></B><B><U><FONT size=2 face="Arial">Further Assurances</FONT></U></B><B><FONT size=2 face="Arial">. </FONT></B><FONT size=2 face="Arial">If at any time the Lender upon advice of its counsel shall determine that any further document shall be required to effect this
Agreement and the transactions and other agreements contemplated thereby, the Borrower shall, and shall cause its Subsidiary to, execute and deliver such document and otherwise carry out the purposes of this Agreement.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="Arial">20.&nbsp;&nbsp;&nbsp; </FONT></B><B><U><FONT size=2 face="Arial">Severability</FONT></U></B><B><FONT size=2 face="Arial">. </FONT></B><FONT size=2 face="Arial">If any paragraph or part thereof shall for any reason be held or adjudged to be invalid, illegal, or unenforceable by any court of
competent jurisdiction, such paragraph or part thereof shall be deemed separate, distinct, and independent, and the remainder of this Agreement shall remain in full force and effect and shall not be affected by such holding or
adjudication.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="Arial">21.&nbsp;&nbsp;&nbsp; </FONT></B><B><U><FONT size=2 face="Arial">Binding Effect</FONT></U></B><B><FONT size=2 face="Arial">. </FONT></B><FONT size=2 face="Arial">All rights of the Lender under the Financing Documents shall inure to the benefit of its transferees, successors and assigns. All
obligations of the Borrower under the Financing Documents shall bind its heirs, legal representatives, successors, and assigns.</FONT></P>
<P align="center">
<FONT size=2 face="Arial">9</FONT></P>

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<page>


<P align="left"><b><font size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.&nbsp;&nbsp;&nbsp;</font></b>&nbsp;<b><u><font size=2 face="Arial">Definitions</font></u></b><b><font size=2 face="Arial">.</font></b></P>
<P align="justify"><FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;"Bank
    Subsidiary" means
  each banking Subsidiary of Borrower, now or hereafter in existence, including
  but not limited to the Bank.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(b) &nbsp;&nbsp;&nbsp;&nbsp;"Capital" means all capital or all components of capital, other than any allowance for loan and lease losses and net of any intangible assets, as defined from
time to time by the primary federal regulator of the Borrower, the Bank, or the Subsidiary (as the case may be).</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(c) &nbsp;&nbsp;&nbsp;&nbsp;"Collateral" means and includes all property assigned or pledged to the Lender or in which the Lender has been granted security interest or to which the Lender
has been granted security title, whether under any of the Financing Documents or any other agreement, instrument, or document, and the proceeds thereof.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(d) &nbsp;&nbsp;&nbsp;&nbsp;&#147;Debt Service Coverage&#148; shall be calculated as the maximum dividend that may be paid by Bank to Borrower divided by the interest expense of the Loan.
The maximum dividend is that which is permissible under any applicable federal regulatory constraints, and which also allows Borrower&#146;s Subsidiary/Bank to maintain Tier 1 Capital Leverage and Tier 1 Risk Based Capital ratings of &#147;Well
Capitalized&#148; (as defined by federal regulators).</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(e) &nbsp;&nbsp;&nbsp;&nbsp;"Financing Documents" means and includes this Agreement, the Note, and all other associated loan and collateral documents including, without limitation, all
guaranties, suretyship agreements, stock powers, security agreements, security deeds, subordination agreements, exhibits, schedules, attachments, financing statements, notices, consents, waivers, opinions, letters, reports, records, assignments,
documents, instruments, information and other writings related thereto, or furnished by the Borrower to the Lender in connection therewith or in connection with any of the Collateral, and any amendments, extensions, renewals, modifications or
substitutions thereof or therefor.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(f) &nbsp;&nbsp;&nbsp;&nbsp;"Liabilities" means all indebtedness, liabilities, and obligations of the Borrower of any nature whatsoever which the Lender may now or hereafter have, own or
hold, and which are now or hereafter owing to the Lender regardless of however and whenever created, arising or evidenced, whether now, heretofore or hereafter incurred, whether now, heretofore or hereafter due and payable, whether alone or together
with another or others, whether direct or indirect, primary or secondary, absolute or contingent, or joint or several, and whether as principal, maker, endorser, guarantor, surety or otherwise, and also regardless of whether such Liabilities are
from time to time reduced and thereafter increased or entirely extinguished and thereafter reincurred, including without limitation the Note and any amendments, extensions, renewals, modifications or substitutions thereof or therefor.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(g) &nbsp;&nbsp;&nbsp;&nbsp;"Note" shall mean that certain Promissory Note With Revolving Feature dated as of July, 2 2008 in the maximum principal amount of Five Million and 00/100
Dollars (&#36;5,000,000.00) and any amendments, extensions, renewals, modifications, or substitutions thereof or therefor in effect at any particular time.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(h) &nbsp;&nbsp;&nbsp;&nbsp;"Person" means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization or government or
any agency or political subdivision thereof.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(i) &nbsp;&nbsp;&nbsp;&nbsp;"Subsidiary" means the Bank Subsidiary and each other corporation for which the Borrower has the power, directly or indirectly, to direct its management or
policies or to vote 25% or more of any class of its voting securities.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(j) &nbsp;&nbsp;&nbsp;&nbsp;"Tier 1 Risk Based Capital" means Tier 1 Risk Based Capital as defined by the capital maintenance regulations of the primary federal bank regulatory
agency.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(k) &nbsp;&nbsp;&nbsp;&nbsp;"Tier 1 Capital Leverage" means the Tier 1 Capital Leverage as defined by the capital maintenance regulations of the primary federal bank regulatory
agency.</FONT></P>
<P align="justify">
<FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="Arial">(l) &nbsp;&nbsp;&nbsp;&nbsp;All
accounting terms not otherwise defined herein have the meanings assigned to them
in accordance with generally accepted accounting principles in effect from  time
to time.</FONT></P>
<P align="center">
<FONT size=2 face="Arial">10</FONT></P>

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<page>


<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="Arial">IN WITNESS WHEREOF, the undersigned have hereunto set their hands and affixed their seals by and through their duly authorized officers, as of the day and year
first above written.</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="45%">&nbsp;</td>
    <td colspan="2"><b><font size=2 face="Arial">BORROWER:</font></b></td>
    <td width="10%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><font size=2 face="Arial">1</font><sup><font size=2 face="Arial">ST </font></sup><font size=2 face="Arial">UNITED
        BANCORP, INC., a Florida corporation</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="40%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size=2 face="Arial">By: </font></td>
    <td style="border-bottom:solid black 1px"><font size="2" face="Arial, Helvetica, sans-serif">/s/ John Marino</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size=2 face="Arial">John Marino, President</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align="center"><font size=2 face="Arial">[CORPORATE SEAL]</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<P align="left">
<TABLE><TR><TD nowrap>
<FONT size=2 face="Arial">Witness: <u>&nbsp;/s/ Karen Chandler&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT><BR>
<FONT size=2 face="Arial">Name:</FONT> <FONT size=2 face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;Karen Chandler</FONT><BR>
<BR>
<FONT size=2 face="Arial">Witness:</FONT><FONT size=2 face="Arial"> <u>&nbsp;/s/
Patricia A. Labelle&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT><BR>
<FONT size=2 face="Arial">Name: &nbsp;&nbsp;&nbsp;&nbsp;Patricia A. Labelle</FONT></TD>
</TR></TABLE>

<P align="left">
<FONT size=2 face="Arial">I hereby certify that the representation and warranty contained in Section 2(i)(v) of this Agreement is true and correct.</FONT></P>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="45%"><font size="2">&nbsp;</font></td>
    <td width="5%"><font size=2 face="Arial">By:</font></td>
    <td width="40%" style="border-bottom:solid black 1px"><font size="2" face="Arial, Helvetica, sans-serif">/s/ John Marino</font></td>
    <td width="10%">&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size=2 face="Arial">NAME: </font></td>
    <td><font size="2" face="Arial, Helvetica, sans-serif">John Marino</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size=2 face="Arial">TITLE:</font></td>
    <td><font size="2" face="Arial, Helvetica, sans-serif">CFO</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<P align="center">
<B><FONT size=2 face="Arial">(Signatures continue on following page)</FONT></B></P>
<P align="center">
<FONT size=2 face="Arial">11</FONT></P>

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<page>


<P align="left">
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="45%">&nbsp;</td>
    <td colspan="2"><b><FONT size=2 face="Arial">LENDER:</FONT></b></td>
    <td width="10%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><FONT size=2 face="Arial">SILVERTON
    BANK, N.A.</FONT></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><FONT size=2 face="Arial">BY:</FONT></td>
    <td style="border-bottom:solid black 1px"><font size="2" face="Arial, Helvetica, sans-serif">/s/ Jeffrey S. Neale</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><FONT size=2 face="Arial">Jeffrey S. Neale,
    Senior Vice President</FONT></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>

<TABLE><TR><TD nowrap>
<FONT size=2 face="Arial">Witness: _________________</FONT><BR>
<FONT size=2 face="Arial">Name:</FONT><BR>
<BR>
<FONT size=2 face="Arial">Witness: _________________</FONT><BR>
<FONT size=2 face="Arial">Name:</FONT></TD></TR></TABLE>

<P align="center">
<FONT size=2 face="Arial">12</FONT></P>

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<page>


<P align="center">
</P>
<div align="center"><b><font size=2 face="Arial">EXHIBIT A</font></b>
</div>
<P align="center"><B><FONT size=2 face="Arial">ARTICLES OF INCORPORATION <br>
  OF<br>
1</FONT></B><B><SUP><FONT size=2 face="Arial">ST </FONT></SUP></B><B><FONT size=2 face="Arial">UNITED BANCORP, INC., a
Florida corporation</FONT></B></P>
<P align="center">
<FONT size=2 face="Arial">13</FONT></P>

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<page>


<P align="center">
</P>
<p align="center"><b><font size=2 face="Arial">EXHIBIT B</font></b></p>
<P align="center">
<B><FONT size=2 face="Arial">CERTIFICATE OF GOOD STANDING <br>
OF<br>
1<SUP>ST </SUP>UNITED
      BANCORP, INC., a Florida corporation</FONT></B></P>
<P align="center">
<FONT size=2 face="Arial">14</FONT></P>

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<page>


<P align="center">
</P>
<div align="center"><b><font size=2 face="Arial">EXHIBIT C</font></b>
</div>
<P align="center">
<B><FONT size=2 face="Arial">BYLAWS <br>
OF<br>
1</FONT></B><B><SUP><FONT size=2 face="Arial">ST </FONT></SUP></B><B><FONT size=2 face="Arial">UNITED BANCORP, INC., a
Florida corporation</FONT></B></P>
<P align="center">
<FONT size=2 face="Arial">15</FONT></P>

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<page>


<P align="center">
</P>
<div align="center"><b><font size=2 face="Arial">EXHIBIT D</font></b>
</div>
<P align="center">
<B><FONT size=2 face="Arial">RESOLUTIONS <br>
OF<br>
1</FONT></B><B><SUP><FONT size=2 face="Arial">ST </FONT></SUP></B><B><FONT size=2 face="Arial">UNITED BANCORP, INC., a
Florida corporation</FONT></B></P>
<P align="center">
<FONT size=2 face="Arial">16</FONT></P>

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<page>


<P align="center">
<B><FONT size=2 face="Arial">EXHIBIT E</FONT></B></P>
<P align="center">
<B><FONT size=2 face="Arial">ARTICLES OF INCORPORATION <br>
OF<br>
1</FONT></B><B><SUP><FONT size=2 face="Arial">ST </FONT></SUP></B><B><FONT size=2 face="Arial">UNITED BANK, A FLORIDA
BANKING CORPORATION</FONT></B></P>
<P align="center">
<FONT size=2 face="Arial">17</FONT></P>

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<page>



<P align="center">
<B><FONT size=2 face="Arial">EXHIBIT F</FONT></B></P>
<P align="center">
<B><FONT size=2 face="Arial">CERTIFICATE OF CORPORATE EXISTENCE <br>
OF<br>
1</FONT></B><B><SUP><FONT size=2 face="Arial">ST </FONT></SUP></B><B><FONT size=2 face="Arial">UNITED BANK, A FLORIDA
BANKING CORPORATION</FONT></B></P>
<P align="center">
<FONT size=2 face="Arial">18</FONT></P>

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<page>


<TABLE border=0 width=100% cellspacing=0 cellpadding=0>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center width=100%>
<B><FONT size=2 face="Arial">EXHIBIT G</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center width=100%>
<B><FONT size=2 face="Arial">BYLAWS</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center width=100%>
<B><FONT size=2 face="Arial">OF</FONT></B>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center width=100% nowrap>
<B><FONT size=2 face="Arial">1</FONT></B><B><SUP><FONT size=2 face="Arial">ST </FONT></SUP></B><B><FONT size=2 face="Arial">UNITED BANK, A FLORIDA
BANKING CORPORATION</FONT></B>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="Arial">19</FONT></P>

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