-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 VboqnXIvDEn6yBoTJDVgY2r+i+OITL8aIOnNxAwB7nJyWD+zeVbJGj4iwKT8uQQI
 VIew8SKl9IjeR1IUJ6aDeA==

<SEC-DOCUMENT>0001104659-04-001546.txt : 20040122
<SEC-HEADER>0001104659-04-001546.hdr.sgml : 20040122
<ACCEPTANCE-DATETIME>20040122172723
ACCESSION NUMBER:		0001104659-04-001546
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20040122
ITEM INFORMATION:		Other events
ITEM INFORMATION:		Financial statements and exhibits
FILED AS OF DATE:		20040122

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INTERNATIONAL BANCSHARES CORP
		CENTRAL INDEX KEY:			0000315709
		STANDARD INDUSTRIAL CLASSIFICATION:	STATE COMMERCIAL BANKS [6022]
		IRS NUMBER:				742157138
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-09439
		FILM NUMBER:		04538484

	BUSINESS ADDRESS:	
		STREET 1:		12OO SAN BERNARDO AVE
		STREET 2:		PO BOX 1359
		CITY:			LAREDO
		STATE:			TX
		ZIP:			78040-1359
		BUSINESS PHONE:		9567227611

	MAIL ADDRESS:	
		STREET 1:		P O BOX 1359
		STREET 2:		1200 SAN BERNARDO
		CITY:			LAREDO
		STATE:			TX
		ZIP:			78040
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a04-1502_28k.htm
<DESCRIPTION>8-K
<TEXT>
<html>

<head>



</head>

<body>

<div style="font-family:'Times New Roman';">

<div style="border:none;border-top:double windowtext 9.0pt;padding:0in 0in 0in 0in;">

<p align="center" style="border:none;margin:0in 0in .0001pt;padding:0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">UNITED STATES</font></b><font size="5" style="font-size:18.0pt;"><br>
<b><font style="font-weight:bold;">SECURITIES
AND EXCHANGE COMMISSION</font></b></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Washington, D.C.&#160; 20549</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="1" width="25%" noshade color="black" align="center">

</font></div>


<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">FORM 8-K</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">CURRENT REPORT</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Pursuant to Section 13 or 15 (d) of the Securities Exchange
Act of 1934</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date of Report (Date of earliest event reported): <b><font style="font-weight:bold;">January 22, 2004</font></b></font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">INTERNATIONAL BANCSHARES
CORPORATION</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact Name of Registrant as Specified in its Charter)</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="31%" valign="top" style="padding:0in 0in 0in 0in;width:31.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Texas</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.64%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">0-9439</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.64%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="30%" valign="top" style="padding:0in 0in 0in 0in;width:30.72%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">74-2157138</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in 0in 0in 0in;width:31.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or other jurisdiction<br>
  of incorporation)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.64%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission File<br>
  Number)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.64%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="30%" valign="top" style="padding:0in 0in 0in 0in;width:30.72%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(IRS Employer<br>
  Identification No.)</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in 0in 0in 0in;width:31.98%;">
  <p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.64%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.02%;">
  <p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.64%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="30%" valign="top" style="padding:0in 0in 0in 0in;width:30.72%;">
  <p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="66%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:66.64%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1200 San Bernardo,
  Laredo, Texas</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.64%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="30%" valign="top" style="padding:0in 0in 0in 0in;width:30.72%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">78040-1359</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="66%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:66.64%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of principal executive offices)</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.64%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="30%" valign="top" style="padding:0in 0in 0in 0in;width:30.72%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ZIP Code)</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in 0in 0in 0in;width:31.98%;">
  <p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.64%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.02%;">
  <p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.64%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="30%" valign="top" style="padding:0in 0in 0in 0in;width:30.72%;">
  <p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Registrant&#146;s telephone number, including area code):&nbsp;&nbsp;<b><font style="font-weight:bold;">(210)
  722-7611</font></b></font></p>
  </td>
 </tr>
 <tr>
  <td width="66%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:66.64%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt .1in;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.64%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="30%" valign="top" style="padding:0in 0in 0in 0in;width:30.72%;">
  <p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="padding:0in 0in 0in 0in;width:31.98%;">
  <p align="center" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.64%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.02%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">None</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.64%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="30%" valign="top" style="padding:0in 0in 0in 0in;width:30.72%;">
  <p align="center" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="100%" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Former name or former address, if changed since last report.)</font></p>
  </td>
 </tr>
</table>

</div>

<div style="border:none;border-bottom:double windowtext 9.0pt;padding:0in 0in 0in 0in;">

<p align="center" style="border:none;margin:0in 0in .0001pt;padding:0in;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-am.htm',USER='sgutthi',CD='Jan 22 16:15 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 5</font></u>.&#160; <u>Other Events</u></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On January 22, 2004,
International Bancshares Corporation (NASDAQ:&nbsp;&nbsp;IBOC) jointly
announced with Local Financial Corporation (NASDAQ:&nbsp;&nbsp;LFIN) that they
have entered into an agreement and plan of merger pursuant to which Local
Financial Corporation would merge with and into LFC Acquisition Corp., a
wholly-owned subsidiary of International Bancshares Corporation.&#160; The Agreement and Plan of Merger dated as of
January 22, 2004, and the joint press release issued January 22, 2004,
regarding the events outlined above appear as exhibits to this report and are
herein incorporated by reference. The foregoing is qualified in its entirety by
reference to such documents.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 7</font></u>.&#160; <u>Financial Statements and Exhibits</u></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.7%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c.</font></p>
  </td>
  <td width="94%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:94.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibits</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.7%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.98%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.76%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="86%" valign="top" style="padding:0in 0in 0in 0in;width:86.58%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.7%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="86%" valign="top" style="padding:0in 0in 0in 0in;width:86.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Press Release dated January
  22, 2004</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.7%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.98%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.76%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="86%" valign="top" style="padding:0in 0in 0in 0in;width:86.58%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.7%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.2</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="86%" valign="top" style="padding:0in 0in 0in 0in;width:86.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Agreement and Plan of Merger
  dated as of January 22, 2004, among International Bancshares Corporation, LFC
  Acquisition Corp. and Local Financial Corporation</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='2',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-am.htm',USER='sgutthi',CD='Jan 22 16:15 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SIGNATURES</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 2.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="55%" valign="top" style="padding:0in .7pt 0in .7pt;width:55.68%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="44%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:44.32%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">INTERNATIONAL BANCSHARES<br>
  CORPORATION</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in .7pt 0in .7pt;width:55.68%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="44%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:44.32%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Registrant)</font></p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in .7pt 0in .7pt;width:55.68%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.02%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="40%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:40.3%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in .7pt 0in .7pt;width:55.68%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.02%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="40%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:40.3%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in .7pt 0in .7pt;width:55.68%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="28%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:28.56%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ DENNIS E. NIXON</font></p>
  </td>
  <td width="11%" valign="top" style="padding:0in .7pt 0in .7pt;width:11.74%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in .7pt 0in .7pt;width:55.68%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.02%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="40%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:40.3%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DENNIS E. NIXON, President,</font></p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in .7pt 0in .7pt;width:55.68%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.02%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="40%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:40.3%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and Chief Executive Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in .7pt 0in .7pt;width:55.68%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.02%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="40%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:40.3%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in .7pt 0in .7pt;width:55.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:&#160; January 22, 2004.</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.02%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="40%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:40.3%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='3',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-am.htm',USER='sgutthi',CD='Jan 22 16:15 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT INDEX</font></u></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="11%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:11.36%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit<br>
  Number</font></b></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.56%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="84%" valign="bottom" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:84.08%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:11.36%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.56%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="84%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:84.08%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.56%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="84%" valign="top" style="padding:0in 0in 0in 0in;width:84.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Press Release dated January
  22, 2004</font></p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.36%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.56%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="84%" valign="top" style="padding:0in 0in 0in 0in;width:84.08%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.2</font></p>
  </td>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.56%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="84%" valign="top" style="padding:0in 0in 0in 0in;width:84.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Agreement and Plan of Merger
  dated as of January 22, 2004, among International Bancshares Corporation, LFC
  Acquisition Corp. and Local Financial Corporation</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>


<!-- SEQ.=1,FOLIO='4',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-am.htm',USER='sgutthi',CD='Jan 22 16:15 2004' -->
</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>a04-1502_2ex99d1.htm
<DESCRIPTION>EX-99.1
<TEXT>
<html>

<head>



</head>

<body link="blue" vlink="purple">

<div style="font-family:'Courier New';"><p style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 99.1</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">INTERNATIONAL BANCSHARES CORPORATION AGREES TO ACQUIRE</font></b><font face="Times New Roman"><br>
</font><b><font face="Times New Roman" style="font-weight:bold;">LOCAL FINANCIAL CORPORATION</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">LAREDO, TEXAS, January 22, 2004
- - International Bancshares Corporation (Nasdaq: IBOC) and Local Financial
Corporation (Nasdaq: LFIN) today announced that they have signed a definitive
agreement pursuant to which IBOC will acquire LFIN for approximately $385
million in cash and stock.&#160; The
acquisition will increase IBOC&#146;s assets to approximately $9.4 billion on a pro
forma basis from $6.5 billion as of December 31, 2003, and will increase its
number of branches from 109 to 161.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;We&#146;re truly
excited about our strategic acquisition of LFIN,&#148; said IBOC&#146;s Chairman, CEO
&amp; President, Dennis E. Nixon. &#147;This transaction will dramatically increase
our presence along the NAFTA - IH 35 corridor, and it fits ideally with our
plans to deploy capital strategically and continue to expand our franchise.
Both companies have shown a determination to maintain asset quality as well as
a strong commitment to their customers and communities.&#160; This merger presents a great opportunity for
IBOC to expand its market presence, improve its earnings, and add earnings
growth and stockholder value.&#148;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Edward A.
Townsend, LFIN&#146;s Chairman and CEO, commented, &#147;We believe our stockholders and
customers will find great value in this transaction. IBOC brings strong
resources, commercial lending, a strong international group and good community
banking ideals that will add tremendous competitive strength in our
marketplace.&#160; Mr. Nixon and I share a
similar philosophy that the success of organizations is dependent on the
quality of their people and the value of their relationships.&#148;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under the terms of the merger
agreement, LFIN stockholders will be entitled to elect to receive either cash
or shares of IBC common stock valued at $22.00 (subject to adjustment in
certain circumstances) for each share of LFIN common stock they own.&#160; The election of LFIN&#146;s stockholders will be
subject to the requirement that 75% of LFIN&#146;s shares be exchanged for cash and
25% be exchanged for IBC stock.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
transaction is expected to be immediately accretive to IBOC&#146;s earnings per
share.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
transaction is expected to close in the summer of 2004 and is subject to
various closing conditions, including receipt of all requisite regulatory
approvals and the approval of LFIN&#146;s stockholders. The Boards of Directors of
both IBOC and LFIN have approved the transaction.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IBC is a $6.5
billion multi-bank financial holding company headquartered in Laredo, Texas,
with more than 100 facilities and over 200 ATMs serving 34 communities
including Houston, San Antonio, Corpus Christi, McAllen, Brownsville, Port
Lavaca, Zapata, Eagle Pass and several others in the central, southern and Gulf
Coast regions of Texas.</font></p>

<p style="margin:0in 0in .0001pt;"><font style="color:black;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">LFIN is the $2.9 billion parent company of Local Oklahoma
Bank, which provides a full range of commercial and personal banking services
at 52 locations across Oklahoma. Its</font></font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font style="color:black;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></font></p>


<div style="margin:0in 0in .0001pt;"><font style="color:black;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></font></div>

<font style="color:black;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-ba.htm',USER='sgutthi',CD='Jan 22 16:17 2004' -->
<br clear="all" style="page-break-before:always;">
</font></font>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font style="color:black;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">&nbsp;</font></font></p>

<p style="margin:0in 0in .0001pt;"><font style="color:black;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">primary markets include Oklahoma&#146;s largest population and
business centers: Oklahoma City, Tulsa and Lawton, as well as cities from Miami
in the northeastern corner of the state, to Elk City in the west and Ardmore in
southern Oklahoma.</font></font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Other
Information</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IBOC and LFIN
intend to file certain materials with the SEC, including a registration
statement on Form S-4 concerning the transaction.&#160; The Form S-4 registration statement will include a proxy
statement/prospectus which IBOC and LFIN intend to mail to LFIN stockholders in
connection with the transaction.&#160;
Investors and security holders of IBOC and LFIN are urged to read the
proxy statement/prospectus when it becomes available because it contains
important information about IBOC, LFIN and the transaction.&#160; Investors and security holders may obtain a
free copy of the proxy statement/prospectus (when it is available) at the SEC&#146;s
web site at www.sec.gov.&#160; IBOC and its
executive officers and directors may be deemed to be participants in the
solicitation of proxies from the stockholders of LFIN in favor of the
transaction.&#160; Information regarding the
interests of IBOC&#146;s officers and directors and the interests of LFIN&#146;s officers
and directors in the transaction will be included in the proxy
statement/prospectus.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This document
and information on IBOC&#146;s and/or LFIN&#146;s website may contain forward-looking
information (including information related to plans, projections or future
performance of IBOC and its subsidiaries and planned market opportunities,
employment opportunities and synergies from the acquisition of LFIN), the
occurrence of which involve certain risks, uncertainties, assumptions and other
factors which could materially affect future results.&#160; If any of these risks or uncertainties materializes or any of
these assumptions proves incorrect, IBOC&#146;s results could differ materially from
IBOC&#146;s and/or LFIN&#146;s expectations in these statements.&#160; Neither IBOC nor LFIN assumes any obligation
and does not intend to update these forward- looking statements.&#160; For further information, please see IBOC&#146;s
and LFIN&#146;s reports filed with the SEC pursuant to the Securities Exchange Act of
1934, which are available at the SEC&#146;s website at www.sec.gov .</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">* * * * * * *</font></p><p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="76%" style="border-collapse:collapse;margin-left:108.7pt;width:76.24%;">
 <tr>
  <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;"><p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For more information, contact:</font></p></td>
 </tr>
 <tr>
  <td width="100%" valign="top" style="font-size:10.0pt;padding:0in .7pt 0in .7pt;width:100.0%;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;"><p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dennis E. Nixon</font></p></td>
 </tr>
 <tr>
  <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;"><p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chairman, CEO and President</font></p></td>
 </tr>
 <tr>
  <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;"><p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">International Bancshares Corporation</font></p></td>
 </tr>
 <tr>
  <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;"><p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(956) 722-7611</font></p></td>
 </tr>
 <tr>
  <td width="100%" valign="top" style="font-size:10.0pt;padding:0in .7pt 0in .7pt;width:100.0%;"><p style="margin:0in 0in .0001pt;">&nbsp;</p></td>
 </tr>
 <tr>
  <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Richard L. Park</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Executive Vice President</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Local Financial Corporation</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(405)
  841-2298</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font style="color:black;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></font></div>

</div>


<!-- SEQ.=1,FOLIO='',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-ba.htm',USER='sgutthi',CD='Jan 22 16:17 2004' -->
</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>4
<FILENAME>a04-1502_2ex99d2.htm
<DESCRIPTION>EX-99.2
<TEXT>
<html>

<head>



</head>

<body>

<div style="font-family:'Times New Roman';">

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
99.2</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="border:none;border-top:double windowtext 1.5pt;padding:1.0pt 0in 0in 0in;">

<p style="border:none;margin:0in 0in .0001pt;padding:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXECUTION COPY</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AGREEMENT
AND PLAN OF MERGER</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Dated as of
January 22, 2004</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">among</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">INTERNATIONAL
BANCSHARES CORPORATION,</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">LFC
ACQUISITION CORP.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">and</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">LOCAL
FINANCIAL CORPORATION</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="border:none;border-bottom:double windowtext 1.5pt;padding:0in 0in 1.0pt 0in;">

<p style="border:none;margin:0in 0in .0001pt;padding:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AGREEMENT
AND PLAN OF MERGER</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AGREEMENT
AND PLAN OF MERGER</font></b>,
dated as of January 22, 2004 (this &#147;<u>Agreement</u>&#148;), among INTERNATIONAL
BANCSHARES CORPORATION, a Texas corporation (&#147;<u>IBC</u>&#148;), LFC ACQUISITION
CORP., a Delaware corporation and an indirect wholly owned subsidiary of IBC (&#147;<u>Acquisition
Sub</u>&#148;), and LOCAL FINANCIAL CORPORATION, a Delaware corporation (&#147;<u>LFC</u>&#148;).</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">W</font></u>  <u>I</u>  <u>T</u>  <u>N</u>  <u>E</u>  <u>S</u>
<u>S</u>  <u>E</u>  <u>T</u>  <u>H</u>:</b></p>

<p style="margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b>, the respective Boards of Directors of IBC,
Acquisition Sub and LFC deem it advisable and in the best interests of each
corporation and its respective stockholders that Acquisition Sub merge with,
and in to, LFC (the &#147;<u>Merger</u>&#148;), with LFC as the surviving corporation
(the &#147;<u>Surviving Corporation</u>&#148;) in the Merger;</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b>, the respective Boards of Directors of each
of IBC, Acquisition Sub and LFC have adopted resolutions approving the Merger,
this Agreement and the transactions contemplated hereby to which each such
party is a party, and the Board of Directors of LFC has agreed, upon the terms
and subject to the conditions set forth herein, to recommend that LFC&#146;s
stockholders approve the Merger and this Agreement;</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b>, the parties have agreed (subject to the
terms and conditions of this Agreement), as soon as practicable following the
approval by the stockholders of LFC of this Agreement and the Merger, to effect
the Merger, as more fully described herein;</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b>, IBC, Acquisition Sub and LFC desire to make
certain representations, warranties, covenants and agreements in connection
with the Merger and also to prescribe various conditions to the Merger;</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b>, certain terms used herein have the meanings
ascribed to them in the respective Sections of this Agreement set forth in
Appendix A;</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NOW,
THEREFORE</font></b>, in
consideration of the foregoing premises and the representations, warranties and
agreements contained herein the parties hereto agree as follows:</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE
I</font></b></p>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;"><br>
THE MERGER</font></u></b></h1>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.1&#160; <u>The
Merger</u>.</font></b>&#160; Upon the terms and subject to the conditions
hereof, at the Effective Time, Acquisition Sub shall be merged with and into
LFC and the separate existence of Acquisition Sub shall thereupon cease, and
LFC, as the Surviving Corporation, shall by virtue of the Merger continue its
corporate existence under the laws of the State of Delaware.</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.2&#160; <u>Effective
Time of the Merger</u>. </font></b>&#160;The Merger shall become effective at the date
and time (the &#147;<u>Effective Time</u>&#148;) when a Certificate of Merger meeting the
requirements of the</h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Delaware General Corporation
Law (the &#147;<u>DGCL</u>&#148;) shall have been duly executed and filed in accordance
with the DGCL, or at such other time as is specified in such Certificate of
Merger in accordance with the DGCL, which Certificate of Merger shall be filed
as soon as practicable following fulfillment of the conditions set forth in
Article VII hereof.</font></h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.3&#160; <u>Closing</u>.
</font></b>&#160;The closing of the transactions contemplated
by this Agreement (the &#147;<u>Closing</u>&#148;) shall take place at the offices of Cox
&amp; Smith Incorporated, San Antonio, Texas, at 10:00 a.m. local time on the
day which is no later than five (5) Business Days after the day on which the
last of the conditions set forth in Article VII (other than those that can only
be fulfilled at the Effective Time) is fulfilled or waived or at such other
time and place as IBC and LFC shall agree in writing.&#160; The date on which the Closing is held is sometimes referred to herein
as the &#147;<u>Closing Date</u>.&#148;</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE
II</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">THE
SURVIVING CORPORATION</font></u></b></h1>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.1&#160; <u>Certificate
of Incorporation</u>.</font></b>&#160; The Certificate of Incorporation of LFC as
in effect at the Effective Time shall be the Certificate of Incorporation of
the Surviving Corporation, until further amended in accordance with its terms
and as provided by law and this Agreement.</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.2&#160; <u>By-laws</u>.&#160; </font></b>The By-laws of Acquisition Sub, as in effect at the Effective Time,
shall be the By-laws of the Surviving Corporation, and thereafter may be
amended in accordance with their terms and as provided by law and this
Agreement.</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.3&#160; <u>Board
of Directors and Officers</u>.&#160; </font></b>The directors of Acquisition Sub immediately
prior to the Effective Time shall be the directors of the Surviving Corporation
and the officers of the Acquisition Sub immediately prior to the Effective Time
shall be the officers of the Surviving Corporation, in each case until their
respective successors are duly elected and qualified.</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.4&#160; <u>Effects
of Merger</u>.&#160; </font></b>The Merger shall have the effects set forth
in the DGCL.</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;text-transform:uppercase;">ARTICLE III<br><br></font></b></p>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;">CONVERSION
OF SHARES</font></u></b></h1>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.1&#160; <u>Effect
on Capital Stock</u>. </font></b>&#160;As of the Effective Time, by virtue of the
Merger and without any action on the part of IBC, Acquisition Sub, LFC or any
holder of capital stock of LFC:</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160; <b><font style="font-weight:bold;">Capital Stock of Acquisition Sub</font></b>.&#160; Each issued and outstanding share of the capital stock of
Acquisition Sub shall be converted into and become one fully paid and
nonassessable share of common stock, par value $.01 per share, of the Surviving
Corporation.</font></h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='2',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160; <b><font style="font-weight:bold;">Cancellation of Treasury Shares and IBC Owned Shares</font></b>.&#160; All shares of common stock of LFC, par value
$.01 per share (the &#147;<u>Shares</u>&#148;), that are owned directly or indirectly by
LFC as treasury stock or by any wholly owned subsidiary of LFC (other than
Shares held in a fiduciary capacity or in satisfaction of a debt previously
contracted) and any Shares owned by IBC, Acquisition Sub or any other wholly
owned subsidiary of IBC shall be canceled and cease to exist, and no
consideration shall be delivered in exchange therefor.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160; <b><font style="font-weight:bold;">Conversion of Shares</font></b>.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Subject to other applicable provisions of this Agreement,
including Section 3.2, each issued and outstanding Share (other than Shares to
be canceled in accordance with Section&nbsp;3.1(b) and Dissenters&#146; Shares) shall
be converted into the right to receive, at the election of the holder thereof,
either: (A)&nbsp;a number of fully paid and nonassessable shares of common
stock, par value $1.00 per share, of IBC (&#147;<u>IBC Common Stock</u>&#148;) equal to the Exchange Ratio (the &#147;<u>Per Share Stock Consideration</u>&#148;),
or (B)&nbsp;the Per Share Cash Consideration. As used herein, the following
terms have the respective meanings set forth below:</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:85.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Exchange Ratio</u>&#148;
means the Per Share Merger Consideration divided by the IBC Common Stock Value.</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Per Share Merger Consideration</u>&#148; means $22.00; provided,
however, that if the Effective Time shall not have occurred on or prior to
August 15, 2004, then the &#147;Per Share Merger Consideration&#148; shall mean the sum
of (x) $22.00 <u>plus</u> (y) the Per Share Adjustment Amount.</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Per Share Adjustment Amount</u>&#148; means an amount equal to the
quotient of (x) the Aggregate Adjustment Amount <u>divided by</u> (y) the sum
of (1) the aggregate number of Shares
issued and outstanding immediately prior to the Effective Time <u>plus</u> (2)
the aggregate number of Shares issuable with respect to the LFC Stock Options
outstanding immediately prior to the Effective Time, assuming for purposes of
this calculation that all outstanding LFC Stock Options are immediately
exercisable and fully vested.</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Aggregate Adjustment Amount</u>&#148; means an
amount equal to the product of (x) $76,667 multiplied by (y) the number of days
in the period commencing on August 16, 2004, and ending on the date on which
the Effective Time occurs (including, for purposes of such calculation, August
16, 2004, and the date on which the Effective Time occurs)</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>IBC Common Stock Value</u>&#148;
means the average of the closing sale prices for a share of IBC Common Stock as
reported on the NASDAQ Stock Market, Inc. National Market System (as reported
by The Wall Street Journal, or, if not reported thereby, as reported by any
other authoritative source) during the ten (10) consecutive Business Days
beginning fifteen (15) Business Days before the Effective Time (the &#147;<u>Determination</u></font></h4>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='3',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h4 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt 1.5in;text-align:left;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Period</font></u>&#148;); provided, however, that (i) if the IBC
Common Stock Value as otherwise determined pursuant to the preceding provisions
of this sentence would be less than $46.00, then the IBC Common Stock Value
shall be $46.00, and (ii) if the IBC Common Stock Value as otherwise determined
pursuant to the preceding provisions of this sentence would be greater than
$56.00, then the IBC Common Stock Value shall be $56.00.&nbsp; The Exchange
Ratio shall be calculated to the nearest one-ten-thousandth of a share of IBC
Common Stock.</h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Merger Consideration</u>&#148;
means the aggregate Per Share Cash Consideration and the aggregate Per Share
Stock Consideration into which all outstanding Shares are converted pursuant to
this Section 3.1(c); provided, however, that the term &#147;Merger Consideration&#148;
when used with respect to any Shares, holder(s) of Shares, and/or
Certificate(s) representing Shares means the aggregate Per Share Cash
Consideration and/or Per Share Stock Consideration into which such Shares are converted
pursuant to this Section 3.1(c).</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Per Share Cash
Consideration</u>&#148; means an amount in cash equal to the Per Share Merger
Consideration.</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt 1.5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i><font style="font-style:italic;">Anti-Dilution
Adjustments.</font></i>&nbsp;&nbsp;&nbsp;&nbsp;Should IBC change (or establish
a record date for changing) the number of shares of IBC Common Stock issued and
outstanding prior to the Effective Time of the Merger by way of a split,
dividend, combination, recapitalization, exchange of shares or similar
transaction with respect to the outstanding IBC Common Stock having a record date
preceding the Effective Time of the Merger, then, to the extent necessary to
provide to the holders of Shares the same economic effect as contemplated by
this Agreement prior to such split, dividend, combination, recapitalization,
exchange of shares or similar transaction, the IBC Common Stock Value (or the
prices for the IBC Common Stock used in determining the IBC Common Stock Value)
shall be appropriately adjusted.</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:85.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i><font style="font-style:italic;">Fractional Shares.&nbsp;
</font></i>Fractional shares shall not be issued under this Subsection (c), or
otherwise, and any amount otherwise attributable to fractional shares shall be
paid in cash in an amount equal to the product of the IBC Common Stock Value
multiplied by the fraction of a share of IBC Common Stock that would otherwise
have been issued, rounded to the nearest whole cent.</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:85.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.2&#160; <u>Election
and Allocation Procedures</u>.</font></b></h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160; Subject to the allocation procedures set forth in
Subsection&nbsp;3.2(b), each record holder of Shares will be entitled
(i)&nbsp;to elect (a &#147;<u>Stock Election</u>&#148;) to receive shares of IBC Common
Stock for all of the Shares (&#147;<u>Stock
Election Shares</u>&#148;) held by such record holder, (ii)&nbsp;to elect (a
&#147;<u>Cash Election</u>&#148;) to receive cash for all of the Shares (&#147;<u>Cash Election Shares</u>&#148;) held by
such record holder; or (iii)&nbsp;to elect (a &#147;<u>Mixed Election</u>&#148;) to
receive part shares of IBC Common Stock (such portion of the Shares
attributable to the election to receive shares being included in Stock Election
Shares) and part cash (such portion of the Shares attributable to the election
to</font></h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='4',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">receive cash being included
in Cash Election Shares) for his, her or its Shares; or (iv) to indicate (a &#147;<u>Non-Election</u>&#148;)
that such holder makes no such election for all of the Shares (&#147;<u>No-Election Shares</u>&#148;) held by such
record holder, provided, that
notwithstanding anything in this Agreement to the contrary, the number of
Shares to be converted into the right to receive the Per Share Stock
Consideration in the Merger (the &#147;<u>Stock
Number</u>&#148;) will equal as nearly as possible the product of (i) 25% <u>multiplied
by</u> (ii) the total number of Shares outstanding immediately prior to the
Effective Time of the Merger (excluding Shares to be canceled as provided in
Section 3.1(b) but including Dissenters&#146; Shares). All such elections (each, an &#147;<u>Election</u>&#148;) shall be made on an
Election Form. Any Shares for which the record holder has not, as of the
Election Deadline, properly submitted to IBC or the Exchange Agent a properly
completed Election Form (excluding any Dissenters&#146; Shares) will be deemed
No-Election Shares. Notwithstanding anything else to the contrary herein, all
Dissenters&#146; Shares will be deemed Cash Election Shares.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160; The allocation among the holders of Shares of rights to receive
the Per Share Stock Consideration or the Per Share Cash Consideration in the
Merger will be made as follows:</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i><font style="font-style:italic;">Number
of Stock Election Shares Less Than 25%</font></i>. If the number of Stock
Election Shares (on the basis of Election Forms received as of the Election
Deadline) is less than 25% of the number of issued and outstanding Shares
immediately prior to the Effective Time, then (1)&nbsp;each Stock Election
Share will be, as of the Effective Time of the Merger, converted into the right
to receive the Per Share Stock Consideration; (2)&nbsp;the Exchange Agent will
allocate from among the No-Election Shares, pro rata to the holders of
No-Election Shares in accordance with their respective numbers of No-Election
Shares, a sufficient number of No-Election Shares so that the sum of such
number and the number of Stock Election Shares equals as closely as
practicable, but not less than, 25% of the Shares, and each such allocated
No-Election Share (each, a &#147;<u>Stock-Selected No-Election Share</u>&#148;) will be,
as of the Effective Time of the Merger, converted into the right to receive the
Per Share Stock Consideration, provided that if the sum of all No-Election
Shares and Stock Election Shares is less than or equal to 25% of the Shares,
all No-Election Shares will be Stock-Selected No-Election Shares; (3)&nbsp;if
the sum of Stock Election Shares and No-Election Shares is less than 25% of the
Shares, the Exchange Agent will allocate from among the Cash Election Shares
(other than Dissenters&#146; Shares, which shall in no event be deemed to be or
treated as Converted Cash Election Shares), pro rata to the holders of such
Cash Election Shares in accordance with their respective numbers of Cash
Election Shares, a sufficient number of such Cash Election Shares so that the
sum of such number, the number of all Stock Election Shares and the number of
all No-Election Shares equals as closely as practicable, but not less than, 25%
of the Shares, and each such allocated Cash Election Share (each, a &#147;<u>Converted
Cash Election Share</u>&#148;) will be, as of the Effective Time of the Merger,
converted into the right to receive the Per Share Stock Consideration; and
(4)&nbsp;each No-Election Share and Cash Election Share that is not a
Stock-Selected No-Election Share or a Converted Cash Election Share (as the
case may be) will be, as of the Effective Time of the Merger, converted into
the right to receive the Per Share Cash Consideration; or</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:85.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i><font style="font-style:italic;">Number
of Stock Election Shares Greater Than or Equal to 25%</font></i>. If the number
of Stock Election Shares (on the basis of Election Forms received by the
Election Deadline) is greater than or equal to 25% of the issued and
outstanding Shares</font></h4>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='5',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">immediately prior
to the Effective Time, then (1)&nbsp;each Cash Election Share and No-Election
Share will be, as of the Effective Time of the Merger, converted into the right
to receive the Per Share Cash Consideration; and (2)&nbsp;the Exchange Agent
will allocate from among the Stock Election Shares, pro rata to the holders of
Stock Election Shares in accordance with their respective numbers of Stock
Election Shares, a sufficient number of Stock Election Shares so that the sum
of such number and the number of Cash Election Shares and No-Election Shares
equals as closely as practicable 75% of the Shares, and each such allocated
Stock-Election Share (each, a &#147;<u>Converted Stock Election Share</u>&#148;) will be,
as of the Effective Time of the Merger, converted into the right to receive the
Per Share Cash Consideration.&nbsp; The remaining Stock Election Shares (which
are not Converted Stock Election Shares) will be, as of the Effective Time of
the Merger, converted into the right to receive the Per Share Stock
Consideration.</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:85.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160; An election form (an &#147;<u>Election Form</u>&#148;) and other appropriate
and customary transmittal materials, which shall specify that delivery shall be
effected, and risk of loss and title to the certificates theretofore
representing Shares (&#147;<u>Certificates</u>&#148;) shall pass, only upon proper
delivery of such Certificates to a bank or trust company designated by IBC and
reasonably satisfactory to LFC (the &#147;<u>Exchange Agent</u>&#148;) in such form as
LFC and IBC shall mutually agree shall be mailed on the Mailing Date to each
holder of record of Shares as of a record date (the &#147;<u>Election Form Record
Date</u>&#148;) five (5) Business Days prior to the Mailing Date. The &#147;<u>Mailing
Date</u>&#148; shall be a date to be mutually agreed upon by IBC and LFC that is at
least thirty five (35) days prior to the anticipated Effective Time (or such
other date as IBC and LFC may mutually agree).&#160;
LFC shall make available one or more Election Forms as may be reasonably
requested by all Persons who become holders (or beneficial owners) of Shares
after the Election Form Record Date and prior to the Election Deadline, and LFC
shall provide to the Exchange Agent all information reasonably necessary for it
to perform its obligations as specified herein.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160; Each Election Form shall entitle the holder of Shares (or the
beneficial owner through appropriate and customary documentation and
instructions) to make either a Stock Election, Cash Election, Mixed Election or
Non-Election.&#160; Holders of record of
Shares who hold such Shares as nominees, trustees or in other representative
capacities (a &#147;<u>Representative</u>&#148;) may submit multiple Election Forms,
provided that such Representative certifies that each such Election Form covers
all the Shares held by that Representative for a particular beneficial owner.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160; To be effective, a properly completed Election Form shall be
submitted to the Exchange Agent on or before 5:00 p.m., New York City time, on
the date that is thirty (30) days after the Mailing Date (or such other time
and date as LFC and IBC may mutually agree) (the &#147;<u>Election Deadline</u>&#148;).
An election shall have been properly made only if the Exchange Agent shall have
actually received a properly completed Election Form by the Election Deadline.
An Election Form shall be deemed properly completed only if accompanied by one
or more Certificates (or customary affidavits and, if required by IBC pursuant
to Section 3.3(i), indemnification regarding the loss or destruction of such
Certificates or the guaranteed delivery of such Certificates) representing all
Shares covered by such Election Form, together with duly executed transmittal
materials included with the Election Form. Any LFC stockholder may at any time
prior to the Election Deadline change his or her election by written notice
received by the Exchange Agent prior to the Election Deadline accompanied by a
properly completed and signed revised Election Form. Any LFC stockholder may,
at any time prior to the Election </font></h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='6',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Deadline, revoke his or her
election by written notice received by the Exchange Agent prior to the Election
Deadline or by withdrawal prior to the Election Deadline of his or her
Certificates, or of the guarantee of delivery of such Certificates, previously
deposited with the Exchange Agent. All elections shall be revoked automatically
if the Exchange Agent is notified in writing by IBC and LFC that this Agreement
has been terminated. If a stockholder either (i) does not submit a properly
completed Election Form by the Election Deadline, or (ii) revokes its Election
Form prior to the Election Deadline and does not submit a new properly executed
Election Form prior to the Election Deadline, the Shares held by such
stockholder shall be designated No-Election Shares. IBC shall cause the
Certificates representing Shares described in (ii) to be promptly returned
without charge to the Person submitting the Election Form upon written request
to that effect from the Person who submitted the Election Form. Subject to the
terms of this Agreement and of the Election Form, the Exchange Agent shall have
reasonable discretion to determine whether any election, revocation or change
has been properly or timely made and to disregard immaterial defects in any
Election Form, and any good faith decisions of the Exchange Agent regarding
such matters shall be binding and conclusive.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.3&#160; <u>Exchange
Procedures.</u></font></b></h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160; Appropriate transmittal materials (&#147;<u>Letter of Transmittal</u>&#148;)
in a form satisfactory to IBC and LFC shall be mailed within three Business
Days after the Effective Time to each holder of record of Shares as of the
Effective Time who did not previously submit a completed Election Form. A
Letter of Transmittal will be deemed properly completed only if accompanied by
certificates representing all Shares to be converted thereby.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160; At and after the Effective Time, each Certificate shall represent
only the right to receive the Merger Consideration payable with respect
thereto.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160; Prior to the Effective Time, IBC shall deposit, or shall cause to
be deposited, with the Exchange Agent, for the benefit of the holders of
Shares, for exchange in accordance with this Section 3.3, an amount of cash
sufficient to pay the aggregate Per Share Cash Consideration and the aggregate
amount of cash in lieu of fractional shares to be paid pursuant to Section 3.1,
and IBC shall reserve for issuance with its transfer agent and registrar a
sufficient number of shares of IBC Common Stock to provide for payment of the
aggregate Per Share Stock Consideration.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160; The Letter of Transmittal shall (i) specify that delivery shall be
effected, and risk of loss and title to the Certificates shall pass, only upon
delivery of the Certificates to the Exchange Agent, (ii) be in a form and
contain any other provisions as IBC may reasonably determine and (iii) include
instructions for use in effecting the surrender of the Certificates in exchange
for the Merger Consideration. Upon the proper surrender of the Certificates to
the Exchange Agent, together with a properly completed and duly executed Letter
of Transmittal, the holder of such Certificates shall be entitled to receive in
exchange therefor (m) a certificate representing that number of whole shares of
IBC Common Stock that such holder has the right to receive pursuant to this
Article III, if any, and (n) a check in the amount equal to the cash that such
holder has the right to receive pursuant to this Article III, if any (including
any cash in lieu of fractional shares, if any, that such holder has the right
to receive pursuant to Section 3.1) and any dividends or other distributions to
which such holder is entitled pursuant to this Section 3.3.</font></h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='7',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Certificates so surrendered
shall forthwith be canceled. As soon as practicable following receipt of the
properly completed Letter of Transmittal and any necessary accompanying
documentation, the Exchange Agent shall distribute IBC Common Stock and cash as
provided herein. The Exchange Agent shall not be entitled to vote or exercise
any rights of ownership with respect to the shares of IBC Common Stock held by
it from time to time hereunder, except that it shall receive and hold all
dividends or other distributions paid or distributed with respect to such
shares for the account of the Persons entitled thereto. If there is a transfer
of ownership of any Shares not registered in the transfer records of LFC, the
Merger Consideration shall be issued to the transferee thereof if the
Certificates representing such Shares are presented to the Exchange Agent,
accompanied by all documents required, in the reasonable judgment of IBC and
the Exchange Agent, (x) to evidence and effect such transfer and (y) to
evidence that any applicable stock transfer taxes have been paid.&#160; The Merger Consideration and any additional
amounts paid upon the surrender for exchange of certificates representing
Shares in accordance with the terms of this Article III shall be deemed to have
been paid in full satisfaction of all rights pertaining to the Shares
theretofore represented by such certificates.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160; No dividends or other distributions declared or made after the
Effective Time with respect to IBC Common Stock issued pursuant to this
Agreement shall be remitted to any Person entitled to receive shares of IBC
Common Stock hereunder until such Person surrenders his or her Certificates in
accordance with this Section 3.3.&#160; Upon
the surrender of such Person&#146;s Certificates, such Person shall be entitled to
receive any dividends or other distributions, without interest thereon, which
subsequent to the Effective Time had become payable but not paid with respect
to shares of IBC Common Stock represented by such Person&#146;s Certificates.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160; The stock transfer books of LFC shall be closed immediately upon
the Effective Time and from and after the Effective Time there shall be no
transfers on the stock transfer records of LFC of any Shares. If, after the
Effective Time, Certificates are presented to IBC, they shall be canceled and
exchanged for the Merger Consideration deliverable in respect thereof pursuant
to this Agreement in accordance with the procedures set forth in this Section
3.3.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160; Any portion of the aggregate amount of cash to be paid pursuant to
Section 3.1, any dividends or other distributions to be paid pursuant to this
Section 3.3 or any proceeds from any investments thereof that remains unclaimed
by the stockholders of LFC for six months after the Effective Time shall be
repaid by the Exchange Agent to IBC upon the written request of IBC. After such
request is made, any stockholders of LFC who have not theretofore complied with
this Section 3.3 shall look only to IBC for the Merger Consideration
deliverable in respect of each share of Shares such stockholder holds, as determined
pursuant to this Article III of this Agreement, without any interest thereon.
If outstanding Certificates are not surrendered prior to the date on which such
payments would otherwise escheat to or become the property of any governmental
unit or agency, the unclaimed items shall, to the extent permitted by any
abandoned property, escheat or other applicable laws, become the property of
IBC (and, to the extent not in its possession, shall be paid over to it), free
and clear of all claims or interest of any Person previously entitled to such
claims. Notwithstanding the foregoing, neither the Exchange Agent nor any party
to this Agreement (or any affiliate thereof) shall be liable to any former
holder of Shares for any amount delivered to a public official pursuant to
applicable abandoned property, escheat or similar laws.</font></h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='8',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160; IBC and the Exchange Agent shall be entitled to rely upon LFC&#146;s
stock transfer books to establish the identity of those Persons entitled to
receive the Merger Consideration, which books shall be conclusive with respect
thereto. In the event of a dispute with respect to ownership of stock
represented by any Certificate, IBC and the Exchange Agent shall be entitled to
deposit any Merger Consideration represented thereby in escrow with an
independent third party and thereafter be relieved with respect to any claims
thereto.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160; If any Certificate shall have been lost, stolen or destroyed,
upon the making of an affidavit of that fact by the Person claiming such
Certificate to be lost, stolen or destroyed and, if required by the Exchange
Agent of IBC, the posting by such Person of a bond in such amount as the
Exchange Agent may direct as indemnity against any claim that may be made against
it with respect to such Certificate, the Exchange Agent will issue in exchange
for such lost, stolen or destroyed Certificate the Merger Consideration
deliverable in respect thereof pursuant to this Article III.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.4&#160; <u>Dissenters&#146;
Shares</u>.</font></b>&#160; Notwithstanding any other provision of this
Agreement to the contrary, Shares that are outstanding immediately prior to the
Effective Time and which are held by stockholders who shall have not voted in
favor of the Merger or consented thereto in writing and who properly shall have
demanded appraisal for such shares in accordance with the DGCL (collectively,
the &#147;<u>Dissenters&#146; Shares</u>&#148;) shall not be converted into or represent the
right to receive the Merger Consideration. Such stockholders instead shall be
entitled to receive payment of the appraised value of such shares held by them
in accordance with the provisions of the DGCL, except that all Dissenters&#146;
Shares held by stockholders who shall have failed to perfect or who effectively
shall have withdrawn or otherwise lost their rights to appraisal of such shares
under the DGCL shall thereupon be deemed to have been converted into and to
have become exchangeable, as of the Effective Time, for the right to receive,
without any interest thereon, the Merger Consideration upon surrender in the
manner provided in Section 3.3 of the Certificate or Certificates that,
immediately prior to the Effective Time, evidenced such Shares. LFC shall give
IBC (i) prompt notice of any written demands for appraisal of any Shares,
attempted withdrawals of such demands and any other instruments served pursuant
to the DGCL and received by LFC relating to stockholders&#146; rights of appraisal,
and (ii) the opportunity to participate in all negotiations and proceedings
with respect to demands under the DGCL consistent with the obligations of LFC
thereunder. LFC shall not, except with the prior written consent of IBC, (x)
make any payment with respect to such demand, (y) offer to settle or settle any
demand for appraisal or (z) waive any failure to timely deliver a written
demand for appraisal or timely take any other action to perfect appraisal
rights in accordance with the DGCL.</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.5&#160; <u>Further
Assurances</u>.</font></b>&#160; If at any time after the Effective Time, the
Surviving Corporation shall consider or be advised that any deeds, bills of
sale, assignments or assurances or any other acts or things are necessary,
desirable or proper (a)&nbsp;to vest, perfect or confirm, of record or
otherwise, in the Surviving Corporation, its right, title or interest in, to or
under any of the rights, privileges, powers, franchises, properties or assets
of either of the constituent corporations to the Merger or (b)&nbsp;otherwise
to carry out the purposes of this Agreement, the Surviving Corporation and its
appropriate officers and directors or their designees shall be authorized to
execute and deliver, in the name and on behalf of either of the constituent
corporations to the Merger, all such deeds, bills of sale, assignments and
assurances and do, in</h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='9',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the name and on behalf of
such constituent corporations, all such other acts and things necessary,
desirable or proper to vest, perfect or confirm its right, title or interest
in, to or under any of the rights, privileges, powers, franchises, properties
or assets of such constituent corporation and otherwise to carry out the
purposes of this Agreement.</font></h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.6&#160; <u>Withholding
Taxes</u></font></b>.&#160; IBC and the Surviving Corporation shall be
entitled to deduct and withhold, or cause the Exchange Agent to deduct and
withhold, from the consideration otherwise payable to a holder of Shares
pursuant to the Merger any stock transfer taxes and such amounts as are
required under the Internal Revenue Code of 1986, as amended (the &#147;<u>Code</u>&#148;),
or any applicable provision of state, local or foreign tax law.&#160; To the extent that amounts are so withheld
by IBC or the Surviving Corporation, such withheld amounts shall be treated for
all purposes of this Agreement as having been paid to the holder of the Shares
in respect of which such deduction and withholding was made by IBC or the
Surviving Corporation, and IBC shall provide, or cause the Exchange Agent to
provide, to the holders of such Certificates written notice of the amounts so
deducted or withheld.</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.7&#160; <u>Subsidiary
Mergers</u></font></b>.&nbsp;
LFC shall take, and shall cause each of its Subsidiaries to take, in advance of
the Effective Time, any action requested by IBC to facilitate the merger (the &#147;<u>Holding
Company Merger</u>&#148;) of LFC into IBC and the merger (the &#147;<u>Bank Merger</u>&#148;
and, together with the Holding Company Merger, the &#147;<u>Subsidiary Mergers</u>&#148;)
of Local Oklahoma Bank, an Oklahoma banking association and wholly-owned
subsidiary of LFC (&#147;<u>LFC Bank</u>&#148;), into International Bank of Commerce,
Laredo, Texas, a Texas banking association and indirect wholly-owned subsidiary
of IBC (&#147;IBC Bank&#148;), including execution and delivery of any required or
appropriate regulatory filings, Articles of Merger, Certificates of Merger, any
requested certificates of officers, and such other documents as may be required
to cause such mergers to become effective immediately following the Effective
Time.</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.8&#160; <u>Alternative
Structure</u></font></b>.
Notwithstanding anything to the contrary contained in this Agreement, prior to
the Effective Time, IBC may specify that the structure of the transactions
contemplated by this Agreement be revised and the parties shall enter into such
alternative transactions as IBC may determine to effect the purposes of this
Agreement, subject to the prior written consent of LFC, which consent shall not
be unreasonably withheld or delayed; provided, however, that such revised
structure shall not (i) alter or change the amount or kind of the Merger
Consideration, (ii) adversely change the intended federal income tax
consequences of the transactions contemplated by this Agreement, or (iii)
materially impede, delay, or reduce the likelihood of, the receipt of any
regulatory approval referred to in, or the consummation of the transactions
contemplated by, this Agreement.&#160; The
parties agree to enter into such amendments of this Agreement and any related
documents, and to take such other actions, as IBC may request to reflect any
such revised structure.</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE
IV</font></b></p>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;"><br>
REPRESENTATIONS AND WARRANTIES</font></u></b></h1>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.1&#160; <u>Representations
and Warranties of LFC</u>.</font></b>&#160; Except as set forth in the
Disclosure Schedule delivered by LFC to IBC prior to the execution of this
Agreement (the &#147;<u>LFC Disclosure Schedule</u>&#148;), LFC represents and warrants
to IBC as follows:</h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='10',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160; <u>Organization and Operation of LFC</u>.&#160; LFC is a Delaware corporation, duly
organized, validly existing and in good standing under the laws of the state of
Delaware, and, except as would not reasonably be expected to result in a
Material Adverse Effect on LFC, has the full power and authority (including all
licenses, franchises, permits and other governmental authorizations which are
legally required) to own its properties and to engage in the business and
activities now conducted by it.&#160;
Section&nbsp;4.1(a) of the LFC Disclosure Schedule sets forth a true and
complete list of all of LFC&#146;s direct and indirect subsidiaries (the &#147;<u>LFC
Subsidiaries</u>&#148;) and the percentage of the capital stock of each such
subsidiary owned by LFC and its subsidiaries.&#160;
LFC has not filed a declaration electing to be a financial holding
company pursuant to the Bank Holding Company Act of 1956, as amended (the &#147;<u>BHC
Act</u>&#148;).True and complete copies of the Certificate of Incorporation and
Bylaws of LFC and each of the LFC Subsidiaries, as amended to date, have been
delivered to IBC.&#160; The only material business
of LFC is its ownership and operation of the LFC Subsidiaries.&#160; Except as specified on Section&nbsp;4.1(a)
of the LFC Disclosure Schedule, neither LFC nor any of the LFC Subsidiaries is
a member of any joint venture or partnership and neither LFC nor any of the LFC
Subsidiaries owns any securities of any other entity (other than portfolio
securities held in the ordinary course of business) other than as herein
described.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160; <u>Organization and Operation of LFC Subsidiaries.</u><i><font style="font-style:italic;">&#160; </font></i>Each of the LFC Subsidiaries is a
corporation or a trust, duly organized, validly existing and in good standing
under the laws of the state set forth in Section&nbsp;4.1(b) of the LFC
Disclosure Schedule, and except as would not reasonably be expected to result
in a Material Adverse Effect on LFC, has full power and authority (including
all licenses, franchises, permits and other governmental authorizations which
are legally required) to own its properties and to engage in the business and
activities presently conducted by it.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160; <u>Capitalization and Ownership</u>.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The authorized capital stock of LFC consists exclusively of
25,000,000 Shares and 5,000,000 shares of Preferred Stock, $.01 par value per
share, of which as of the date of this Agreement, 16,536,773 Shares were
outstanding and no shares of Preferred Stock were outstanding.&#160; Since September 8, 1997, LFC has not issued
any Shares or any shares of Preferred Stock, other than the issuance of Shares
upon the valid exercise of LFC Stock Options and warrants.&#160; All issued and outstanding Shares are duly
authorized, validly issued, fully paid and nonassessable and free of any
preemptive rights and have not been issued in violation of any preemptive
rights of any Person.&#160; No holders of
Shares have any rights of rescission or other claims against LFC under the
Securities Act of 1933, as amended (the &#147;<u>1933 Act</u>&#148;), resulting from any
failure of such Shares to have been sold by LFC pursuant to a valid exemption
under the 1933 Act or otherwise in compliance therewith.&#160; Neither LFC nor any of the LFC Subsidiaries
has issued or otherwise has any liability or obligation with respect to any
stock appreciation rights, phantom stock or other similar rights or interests.</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:48.95pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The authorized capital stock of each of the LFC Subsidiaries
is set forth on Section&nbsp;4.1(c) of the LFC Disclosure Schedule.&#160; All of the issued and outstanding shares of
capital stock of each of the LFC Subsidiaries are duly authorized, validly
issued and</font></h4>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='11',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">outstanding, fully paid, nonassessable, and
are owned beneficially and of record by the Person set forth in such Section
4.1(c).</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:48.95pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160; There are no outstanding options, warrants, conversion
rights, calls or commitments of any kind obligating LFC or any of the LFC
Subsidiaries to issue, deliver or sell or cause to be issued, delivered or
sold, directly or indirectly, additional shares of capital stock or any other
securities convertible into or exercisable for, or evidencing the right to
subscribe for any capital stock of LFC, and no authorization therefor has been
given, except that as of the date of this Agreement, there are outstanding
options to acquire an aggregate of 1,755,490 Shares (the &#147;<u>LFC Stock Options</u>&#148;).&#160; Since October 23, 2002, LFC has not granted
any LFC Stock Options.&#160; Neither LFC nor
any LFC Subsidiary has any outstanding commitment or obligation to repurchase,
reacquire or redeem any of its outstanding capital stock or any LFC Stock
Options.</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:48.95pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160; There are no voting trusts or stockholder agreements to which
LFC is a party with respect to the voting of the capital stock of LFC.</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:48.95pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160; <u>Financial Statements</u>.&#160;
LFC has delivered to IBC (i)&nbsp;the audited consolidated statements of
financial condition of LFC and its subsidiaries as of December&nbsp;31, 2002
and 2001, and (ii)&nbsp;the related audited consolidated statements of income,
shareholders&#146; equity and cash flows for the years ended December 31, 2002, 2001
and 2000, together with the notes thereto, accompanied by the report thereon of
the independent certified public accountant who examined such statements
(collectively, the &#147;<u>Audited Financial Statements</u>&#148;).&#160; Except to the extent qualified by footnotes
contained in the Audited Financial Statements and the report of the independent
accountant thereon, the Audited Financial Statements fairly present in all
material respects the financial position of LFC and the LFC Subsidiaries as of
the dates thereof and the results of LFC&#146;s operations for the periods indicated
in conformity with United States generally accepted accounting principles (&#147;<u>GAAP</u>&#148;)
applied on a consistent basis.&#160; In
addition, LFC has delivered to IBC the unaudited consolidated statements of
financial condition of LFC and its Subsidiaries as of September 30, 2003, and
the related unaudited statements of operations for the nine-month period then
ended (collectively, the &#147;<u>Unaudited Financial Statements</u>&#148;).&#160; The Unaudited Financial Statements fairly
present in all material respects the financial position of LFC as of the date
thereof and the results of their respective operations for the period indicated
in conformity with GAAP applied on a consistent basis, except (i) as described
in the footnotes to such Unaudited Financial Statements, (ii) for year end
closing adjustments that have not been applied, and (iii) the Unaudited Financial
Statements may not include all footnote disclosures required by GAAP.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160; <u>Loans</u>.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; To the knowledge of LFC, each loan reflected on the books
of LFC or any LFC Subsidiary, including, without limitation, each loan in which
LFC and/or any LFC Subsidiary holds a participation interest (collectively, &#147;<u>Loans</u>&#148;),
is the legal, valid and binding obligation of the obligor of each Loan,
enforceable in accordance with its terms, subject to the effect of bankruptcy,
insolvency, reorganization, moratorium, or other similar laws relating to
creditors&#146; rights generally and to general equitable principles; provided,
however, that no representation or warranty is made as to the collectibility of</font></h4>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='12',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">such Loans.&#160;
All such Loans were made in the ordinary course of LFC&#146;s or applicable
LFC Subsidiary&#146;s business and have been made in accordance with reasonable and
prudent banking practices.&#160; Any LFC
Subsidiary which is a financial institution does not have in its portfolio any Loan
exceeding its legal lending limit.&#160;
Section 4.1(e)(i) of the LFC Disclosure Schedule sets forth, as of
September 30, 2003, a list of all of LFC&#146;s and LFC Subsidiary&#146;s outstanding
Loans that were classified as delinquent 60 days or more, substandard, doubtful
or loss, in connection with LFC&#146;s and LFC Subsidiary&#146;s most recent regulatory
examination or were considered to be so classified at September 30, 2003 under
the LFC Subsidiaries&#146; policies and procedures (it being understood that no
representation is being made that the applicable regulatory authorities would
agree with the loan classification pursuant to the LFC Subsidiaries&#146;s policies
and procedures).</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:48.95pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All loans to directors, executive officers and beneficial
owners of 5% or more of the outstanding capital stock of LFC or any LFC
Subsidiary, and, to the knowledge of LFC, loans to any affiliate thereof, as
defined in Rule&nbsp;12b-2 promulgated under the Securities Exchange Act of
1934, as amended (the &#147;<u>1934 Act</u>&#148;), are listed on Section&nbsp;4.1(e)(ii)
of the LFC Disclosure Schedule.</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:48.95pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160; <u>Absence of Certain Changes</u>.&#160; Except (i) as expressly contemplated by this Agreement or the
transactions contemplated hereby, (ii) as discussed in documents filed with the
Securities Exchange Commission (the &#147;<u>SEC</u>&#148;) by LFC prior to the date of
this Agreement, (iii) as set forth in Section&nbsp;4.1(f) of the LFC Disclosure
Schedule or (iv) to the extent the following items, individually, or in the
aggregate, would not reasonably be expected to result in a Material Adverse Effect
on LFC, since the date of the Audited Financial Statements, LFC and the LFC
Subsidiaries have not (A)&nbsp;incurred or assumed any obligations or
liabilities (absolute or contingent), other than obligations or liabilities
incurred in the ordinary course of business and consistent with past practices
and obligations or liabilities incurred in carrying out the transactions
contemplated by this Agreement; (B)&nbsp;discharged or satisfied any lien or
encumbrance or paid any obligation or liability (absolute or contingent), other
than in the ordinary course of business and consistent with past practices;
(C)&nbsp;sold, exchanged or otherwise disposed of any of its capital assets
other than in the ordinary course of business and consistent with past
practices; (D)&nbsp;suffered any damage, destruction or loss, whether or not
covered by insurance, materially and adversely affecting its business, property
of assets or waived any rights of value which in the aggregate are material;
(E) materially increased, or experienced any material change in any material
assumptions underlying or methods of calculating, any bad debt, contingency,
tax or other reserves or materially changed its accounting practices, methods
or assumptions (including changes in estimates or valuation methods);or (F)&nbsp;made
any material change in the conduct of its business.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160; <u>Environmental Matters</u>.&#160;
LFC and LFC Subsidiaries have made available to IBC copies of all
environmental assessments reports prepared by or for, or in the possession or
control of LFC and the LFC Subsidiaries relating to the Real Property, a
complete and correct list of which is contained in Section&nbsp;4.1(g) of the
LFC Disclosure Schedule.&#160; In addition,
LFC represents and warrants to IBC as follows:</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160; To the knowledge of LFC, each of LFC and the LFC Subsidiaries is
in compliance with all Environmental Laws applicable to the ownership of its
properties and the</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='13',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">operations of the business and activities now
conducted by it, and has obtained all Environmental Permits needed to operate
the business and occupy the Real Property.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160; Without in any manner limiting the generality of (a) above, except
as expressly set forth in Section&nbsp;4.1(g) of the LFC Disclosure Schedule
and as any of the following would not have Material Adverse Effect on LFC:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; no
Materials of Environmental Concern have been disposed of or have been released
(and no release is threatened) in connection with the ownership, use,
maintenance, operation or conduct of the business or the Real Property except
in compliance with Environmental Laws (including, without limitation, by
obtaining necessary Environmental Permits);</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:114.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; LFC
and the LFC Subsidiaries are not and have not been subject to any claim or
notice, respecting Environmental Laws in connection with the ownership, use,
maintenance, operation or conduct of their business or the Real Property;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:114.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; LFC
and the LFC Subsidiaries and all of the Real Property have been and are in
material compliance with all terms and conditions of any and all required
Environmental Permits.&#160; LFC and the LFC
Subsidiaries have timely filed applications for renewal of any Environmental
Permit if such application submission is required prior to the Closing;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:114.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; LFC
and the LFC Subsidiaries have not undertaken, remediation or other cleanup of
any facility or site or entered into any agreement for the payment of costs
associated with such activity associated with a release or threatened release
of Materials of Environmental Concern with respect to any of the Real Property;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:114.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; LFC
and the LFC Subsidiaries and all of the Real Property have all environmental
and pollution control equipment necessary to comply with all Environmental Laws
applicable to the operation of the business as presently conducted; and.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:114.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; no
underground storage tanks exist at or under any of the Real Property.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:114.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Environmental Law(s)</u>&#148; means any federal,
state, or local law, statute, ordinance, rule, regulation, code, license,
permit, authorization, approval, consent, legal doctrine, document, order,
consent agreement, order or consent judgment, decree, injunction, requirement
or agreement with any governmental entity or any judicial or administrative
decision relating to (x)&nbsp;the protection, preservation or restoration of
the environment (including, without limitation, air, water, vapor, surface
water, groundwater, drinking water supply, surface land, subsurface land, plant
and animal life or any other natural resource) or to human health or safety,
(y)&nbsp;the exposure to, or the use, storage, recycling, treatment,
generation, transportation, processing, handling, labeling, application,
production, release or disposal of Materials of Environmental Concern, in each
case as amended from time to time, or (z)&nbsp;health, worker protection or
community&#146;s right to know.&#160; The term
&#147;Environmental Law&#148; includes, without limitation, (i)&nbsp;the Federal
Comprehensive Environmental Response Compensation and Liability Act of 1980,
the Superfund Amendments and Reauthorization Act, the Federal Water Pollution
Control Act of 1972, the Federal Clean Air Act, the Federal Clean Water Act,
the Federal Resource</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='14',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Conservation and Recovery Act of 1976
(including the Hazardous and Solid Waste Amendments thereto), the Federal Solid
Waste Disposal Act and the Federal Toxic Substances Control Act, the Federal
Insecticide, Fungicide and Rodenticide Act, the Federal Safe Drinking Water Act
and the Federal Occupational Safety and Health Act of 1970, each as amended
from time to time, and (ii)&nbsp;any common law or equitable doctrine
(including, without limitation, injunctive relief and tort doctrines such as
negligence, nuisance, trespass and strict liability) that may impose liability
or obligations for injuries or damages due to, or threatened as a result of,
the presence of, effects of or exposure to any Materials of Environmental
Concern.</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Environmental Permit(s)</u>&#148; means all
permits, licenses, certificates, registrations, variances, notices of intent,
and exemptions necessary for the ownership, use and/or operation of any current
Real Property or to conduct the business as currently conducted in compliance
with Environmental Laws.</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Materials of Environmental Concern</u>&#148;
means (i)&nbsp;those substances included within the statutory and/or regulatory
definitions or listings of &#147;hazardous substance,&#148; &#147;special waste,&#148; &#147;hazardous
waste,&#148; &#147;extremely hazardous substance,&#148; &#147;regulated substance,&#148; &#147;solid waste,&#148;
&#147;hazardous materials,&#148; &#147;pollutant,&#148; &#147;contaminant&#148; or &#147;toxic substances,&#148; under
any Environmental Law; (ii)&nbsp;any material, waste or substance which is or
contains:&#160; (A)&nbsp;explosives or
(B)&nbsp;radioactive materials (including naturally occurring radioactive
materials); (iii)&nbsp;petroleum products, oil or any fraction thereof; and
(iv)&nbsp;such other substances, materials, or wastes that are or become
classified or regulated as hazardous or toxic under any applicable federal,
state or local law or regulation.</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Real Property</u>&#148; means the real and
personal property owned, leased, or used by LFC or LFC Subsidiaries (including
property or other real estate owned or acquired by LFC or the LFC Subsidiaries
through or in-lieu of foreclosure), provided that the representations and
warranties contained in this Section 4.1(g) are qualified in their entirety to
the knowledge of LFC with respect to any Real Property leased, as lessee, by
LFC or any LFC Subsidiary.</font></p>

<p align="left" style="line-height:normal;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160; <u>Authority; No Violations</u>.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160; LFC has all requisite corporate power and authority to enter
into this Agreement and to consummate the transactions contemplated hereby,
subject in the case of the consummation of the Merger to the approval of this
Agreement by the Required LFC Vote.&#160; The
execution, delivery and performance of this Agreement and the consummation of
the transactions contemplated hereby have been duly authorized by all necessary
corporate action on the part of LFC and no other corporate action or other
corporate proceedings on the part of LFC is necessary to authorize this
Agreement or the transactions hereby contemplated, subject in the case of the
consummation of the Merger to the approval of this Agreement by the Required
LFC Vote.&#160; This Agreement has been duly
executed and delivered by LFC and constitutes a valid and binding agreement of
LFC, enforceable against it in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium and similar laws relating to or affecting creditors generally, by
general equity principles (regardless of whether such enforceability is
considered in a proceeding in equity or at law) or by an</font></h4>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='15',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">implied covenant of good faith and fair
dealing.&#160; Based on the representation
and warranty of IBC contained in <u>Section 4.2(h)</u> of this Agreement, no
&#147;moratorium&#148;, &#147;control share&#148;, &#147;fair price&#148; or other antitakeover laws and
regulations of any state, including, without limitation, the provisions of
Section 203 of the DGCL, are applicable to the Merger or other transactions
contemplated by this Agreement.</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:58.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160; The execution, delivery and performance of this Agreement by LFC
does not and will not, as the case may be, and the consummation of the Merger
by LFC and the other transactions contemplated hereby will not, result in any
violation of, or constitute a default (with or without notice or lapse of time,
or both) under, or give rise to a right of termination, amendment, cancellation
or acceleration of any obligation or the loss of a material benefit under, or
the creation of a lien, pledge, security interest, charge or other encumbrance
on any assets (any such conflict, violation, default, right of termination,
amendment, cancellation or acceleration, loss or creation, a &#147;<u>Violation</u>&#148;)
pursuant to:&#160; (A)&nbsp;any provision of
the certificate of incorporation or by-laws of LFC or any LFC Subsidiary or
(B)&nbsp;except as would not reasonably be expected to result in a Material
Adverse Effect on LFC or as set forth in Section 4.1(h) of the LFC Disclosure
Schedule, subject to obtaining or making the consents, approvals, orders,
authorizations, registrations, declarations and filings referred to in
paragraph&nbsp;(iii) below, any loan or credit agreement, note, mortgage, bond,
indenture, lease, benefit plan or other agreement, obligation, instrument,
permit, concession, franchise, license, judgment, order, decree, statute, law,
ordinance, rule or regulation applicable to LFC or any LFC Subsidiary or their
respective properties or assets.</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:58.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:.65in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160; No consent, approval, order or authorization of, or registration,
declaration or filing with, any supranational, national, state, municipal or
local government, any instrumentality, subdivision, court, administrative
agency or commission or other authority thereof, or any quasi-governmental or
private body exercising any regulatory, or other governmental authority (a &#147;<u>Governmental
Entity</u>&#148;), is required by or with respect to LFC or any LFC Subsidiary in
connection with the execution, delivery and performance of this Agreement by
LFC or the consummation of the Merger and the Subsidiary Mergers, except for
those required under or in relation to (A)&nbsp;the BHC Act, (B) the DGCL with
respect to the filing of the Certificate of Merger, (C)&nbsp;laws, rules,
regulations, practices and orders of any applicable federal or state banking
departments or of any federal or state regulatory body having jurisdiction over
banking matters, (D)&nbsp;the SEC and state securities authorities, as
applicable, in connection with the submission of this Agreement for the
approval of the holders of the Shares and the issuance of IBC Common Stock in
the Merger, (E) antitrust or other competition laws of other jurisdictions,
(F)&nbsp;such consents and approvals specified in Section&nbsp;4.1(h) of the
LFC Disclosure Schedule and (G)&nbsp;such consents, approvals, orders,
authorizations, registrations, declarations and filings the failure of which to
make or obtain would not reasonably be expected to result in a Material Adverse
Effect on LFC.&#160; Consents, approvals,
orders, authorizations, registrations, declarations and filings required under
or in relation to clauses (A), (B), (C), (D), (E) and (F) above are hereinafter
referred to as the &#147;<u>LFC Required Consents</u>.&#148;</font></h4>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='16',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160; <u>Reports</u>.&#160; LFC has
filed all reports, schedules, forms, statements and other documents required to
be filed by it with the SEC since January&nbsp;1, 2000 (collectively, including
all exhibits thereto, the &#147;<u>LFC SEC Reports</u>&#148;).&#160; Except as set forth in <u>Section 4.1(i)</u> of the LFC
Disclosure Schedule, no LFC Subsidiary is or has been required to file any
form, report or other document with the SEC.&#160;
None of the LFC SEC Reports, including, without limitation, any
financial statements or schedules included therein, as of their respective
dates or, in the case of any registration statements, at the time of
effectiveness (and, if amended or superseded by a filing prior to the date of
this Agreement or the Closing, then on the date of such filing), contained or
will contain any untrue statement of a material fact or omitted or will omit to
state a material fact required to be stated therein or necessary to make the
statements made therein, in light of the circumstances under which they were
made, not misleading.&#160; All of such LFC
SEC Reports, as of their respective dates (and as of the date of any amendment
to the respective LFC SEC Report), complied as to form in all material respects
with the applicable requirements of the 1933 Act and the 1934 Act and the rules
and regulations promulgated thereunder, including, without limitation, each of
the consolidated financial statements of LFC (including any related notes
thereto) included within the LFC SEC Reports comply as to form in all material
respects with applicable accounting requirements and the published rules and
regulations of the SEC with respect thereto.&#160;
LFC has heretofore furnished or made available to IBC complete and
correct copies of all amendments and modifications that have not been filed by
LFC with the SEC to all agreements, documents and other instruments that
previously had been filed by LFC with the SEC and are currently in effect.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160; <u>Board Approval</u>.&#160;
The Board of Directors of LFC, by resolutions duly adopted at a meeting
duly called and held, and not subsequently rescinded or modified in any way
(the &#147;<u>LFC Board Approval</u>&#148;), has duly (i)&nbsp;determined that this
Agreement and the Merger are advisable and in the best interests of LFC and its
stockholders, (ii)&nbsp;approved the execution, delivery and performance of
this Agreement and the Merger and (iii)&nbsp;subject to <u>Section 6.1(a),</u>
recommended that the stockholders of LFC approve this Agreement and the Merger.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160;&#160; <u>Vote Required</u>.&#160; The
affirmative vote of the holders of a majority of the outstanding Shares to
adopt this Agreement and approve the Merger (the &#147;<u>Required LFC Vote</u>&#148;) is
the only vote of the holders of any class or series of capital stock of LFC
necessary to adopt this Agreement and approve the transactions contemplated
hereby.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)&#160;&#160;&#160; <u>Brokers or Finders</u>.&#160;
No agent, broker, investment banker, financial advisor or other firm or
Person is or will be entitled to any broker&#146;s or finder&#146;s fee or any other
similar commission or fee in connection with any of the transactions
contemplated by this Agreement based upon arrangements made by or on behalf of
LFC or any of its Subsidiaries, except Sandler O&#146;Neill &amp; Partners, L.P., whose
fees and expenses will be paid by LFC in accordance with LFC&#146;s agreement with
such firm, based upon arrangements made by or on behalf of LFC and previously
disclosed to IBC.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)&#160; &#160; <u>Opinion of LFC
Financial Advisers</u>.&#160; The Board of
Directors of LFC has received the opinion of Sandler O&#146;Neill &amp; Partners,
L.P., dated the date of this Agreement, to the effect that, as of such date,
the consideration to be received in the Merger by the holders of Shares is
fair, from a financial point of view, to such holders and such opinion has not
been</font></h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='17',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">withdrawn or modified in any
material respect as of the date of this Agreement, a copy of such opinion has
been made available to IBC.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)&#160;&#160; <u>Taxes</u>.&#160; Except as
disclosed in Section 4.1(n) of the LFC Disclosure Schedule, LFC and each of the
LFC Subsidiaries (i) have timely filed all federal, state and local Tax Returns
required to be filed by LFC or any of the LFC Subsidiaries for Tax years ended
prior to the date of this Agreement, except for those Tax Returns for which
requests for extensions have been timely filed, and all such returns are true,
correct and complete in all material respects, (ii) have paid all Taxes shown
to be due and payable on such Tax Returns other than Taxes which (x) are
currently payable without penalty or interest or (y) are being contested in
good faith and for which adequate reserves have been established on the books
and records of LFC or one or more of the LFC Subsidiaries, as the case may be,
in accordance with GAAP, (iii) have accrued all such Taxes for such periods
subsequent to the periods covered by such returns that are required by GAAP and
(iv) have not waived any statute of limitations in respect of Taxes or agreed
to any extension of time with respect to a Tax assessment or deficiency.&#160; LFC and the LFC Subsidiaries have withheld
and paid all Taxes required to have been withheld and paid in connection with
amounts paid or owing to any LFC or LFC Subsidiary employee, creditor,
independent contractor or other third party; and LFC and the LFC Subsidiaries
have collected and paid all Taxes required to have been collected and paid in
connection with any amounts received from any customer or third party.&#160; There are no liens for Taxes on the assets
of LFC or any of the LFC Subsidiaries, except for liens for Taxes not yet due
and payable and except as set for in Section 4.1(n) of the LFC Disclosure
Schedule, there is no pending, nor has LFC or any of the LFC Subsidiaries
received notice of any threatened audit, examination, notice of deficiency or
assessment, refund litigation or adjustment in controversy with respect to any
Tax.&#160; Except as disclosed in <u>Section
4.1(n)</u> of the LFC Disclosure Schedule, neither LFC nor any of the LFC
Subsidiaries is a party to any agreement providing for the allocation, sharing
or indemnification of Taxes.&#160; Neither
LFC nor any of the LFC Subsidiaries has made any payments, or is obligated to
make any payments, or is a party any agreement which could obligate it to make
any payments that will not be deductible under Code Section 280G.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)&#160;&#160; <u>Employee Benefit Plans.</u></font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Section 4.1(o)(i) of the LFC
Disclosure Schedule lists each &#147;employee welfare benefit plan&#148; (as defined in
Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended
(&#147;<u>ERISA</u>&#148;)) maintained by LFC or any of the LFC Subsidiaries or to which
LFC or any of the LFC Subsidiaries contribute or are required to contribute,
including any multiemployer welfare plan (such employee welfare benefit plans
being hereinafter collectively referred to as the &#147;<u>Welfare Benefit Plans</u>&#148;)
and sets forth the amount of any liability of LFC or any of the LFC
Subsidiaries for contributions more than thirty days past due with respect to
each Welfare Benefit Plan as of the date hereof and as of the end of any
subsequent month ending prior to the Closing; except as set forth in Section
4.1(o)(i) of the LFC Disclosure Schedule, no Welfare Benefit Plan provides for
continuing benefits or coverage for any participant, beneficiary or former
employee after such participant&#146;s or former employee&#146;s termination of
employment except as may be required by Section 4980B of the Code and Sections
601-608 of ERISA;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='18',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Section 4.1(o)(ii) of the LFC
Disclosure Schedule lists each &#147;employee pension benefit plan&#148; (as defined in
Section 3(2) of ERISA and not exempted under Section 4(b) or 201 of ERISA)
maintained by LFC or any of the LFC Subsidiaries or to which LFC or any of the
LFC Subsidiaries contribute or are required to contribute, including any
multiemployer plan (as defined in Section 3(37) of ERISA) (such employee
pension benefit plans being hereinafter collectively referred to as the &#147;<u>Pension
Benefit Plans</u>&#148;);</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except as set forth on Section
4.1(o)(iii) of the LFC Disclosure Schedule, neither LFC nor any of the LFC
Subsidiaries maintains, has or is a party to any plan, program, agreement,
arrangement, understanding or commitment, whether written or oral, for the
benefit of any of its employees, directors or officers relating to any of the
following: severance pay, deferred compensation, bonuses, stock options,
employee stock purchases, restricted stock, excess benefits, incentive
compensation, stock bonuses, cash bonuses, golden parachutes, life insurance,
rabbi trusts, cafeteria plans, dependent care, unfunded plans or any other
employee-related plans, programs, agreements, arrangements or commitments
(other than normal policies concerning holidays, vacations and salary
continuation during short absences for illness or other reasons), or any
program, plan, commitments, or practice of purchasing or otherwise compensating
employees, including officers, for accrued vacation or sick leave upon
termination of employment (such other compensatory programs being hereinafter
collectively referred to as &#147;<u>Other Programs</u>&#148;);</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All of the Pension Benefit Plans and
Welfare Benefit Plans and any related trust agreements or insurance or annuity
contracts (or any other funding instruments) and all Other Programs comply
currently, and have complied in the past, both as to form and operation, with
the provisions of ERISA, the Code and with all other applicable laws, rules and
regulations governing the establishment and operation of the Pension Benefit Plans,
Welfare Benefit Plans and all Other Programs; except as set forth on Section
4.1(o)(iv) of the LFC Disclosure Schedule, all necessary governmental approvals
relating to the establishment of the Pension Benefit Plans have been obtained;
and with respect to each Pension Benefit Plan that is intended to be
tax-qualified under Section 401(a) or 403(a) of the Code, a favorable
determination letter as to the qualification under the Code of each such
Pension Benefit Plan and each material amendment thereto has been issued by the
Internal Revenue Service (and nothing has occurred since the date of the last
such determination letter which resulted in, or is likely to result in the
revocation of such determination);</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except as set forth on Section
4.1(o)(v) of the LFC Disclosure Schedule, each Welfare Benefit Plan, each
Pension Benefit Plan and each Other Program has been administered in compliance
with the requirements of the Code, ERISA, the Health Insurance Portability and
Accountability Act of 1996 (&#147;HIPAA&#148;) and all other applicable laws, and all
reports and disclosures required by ERISA, the Code and any other applicable
laws with respect to each Welfare Benefit Plan, each Pension Benefit Plan and
each Other Program have been timely filed;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except as set forth on Section
4.1(o)(vi) of the LFC Disclosure Schedule, neither LFC nor any LFC Subsidiary
nor any plan fiduciary of any Welfare Benefit Plan or Pension Benefit Plan has
engaged in a breach of fiduciary duty (as defined in Section 404</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='19',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of
ERISA) with respect to any Welfare Benefit Plan, Pension Benefit Plan or Other
Program or in any transaction in violation of Section 406 of ERISA (for which
transaction no exemption exists under Section 408 of ERISA) or in any
&#147;prohibited transaction&#148; as defined in Section 4975(c)(1) of the Code (for
which no exemption exists under Section 4975(c)(2) or 4975(d) of the Code);</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except as set forth on Section
4.1(o)(vii) of the LFC Disclosure Schedule, neither LFC nor any LFC Subsidiary
nor any corporation or other trade or business controlled by or under common
control with LFC (as determined under Sections 414(b) and 414(c) of the Code)
(&#147;<u>Common Control Entity</u>&#148;) is, or has been within the past three years, a
contributing sponsor (as defined in Section 4001(a)(13) of ERISA) of a Pension
Benefit Plan subject to the provisions of Title IV of ERISA, nor has LFC, any
LFC Subsidiary or a Common Control Entity maintained or participated in any
employee pension benefit plan (defined in Section 3(2) of ERISA) subject to the
provision of Title IV of ERISA.&#160; In
addition, except as set forth on Section 4.1(o)(vii) of the LFC Disclosure
Schedule, neither LFC nor any LFC Subsidiary nor a Common Control Entity (i) is
a party to a collective bargaining agreement, (ii) has maintained or
contributed to, or has participated in or agreed to participate in, a
multiemployer plan (as defined in Section 3(37) of ERISA), or (iii) has made a
complete or partial withdrawal from a multiemployer plan (as defined in Section
3(37) of ERISA) so as to incur withdrawal liability as defined in Section 4201
of ERISA (without regard to subsequent reduction or waiver of such liability
under Section 4207 or 4208 of ERISA);</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(viii)&#160;&#160;&#160;&#160;&#160;&#160;&#160; True and complete copies of each Welfare
Benefit Plan, each Pension Benefit Plan and each Other Program, related trust
agreements or insurance or annuity contracts (or any other funding
instruments), summary plan descriptions, the most recent determination letter
issued by the Internal Revenue Service with respect to each Pension Benefit
Plan, the most recent application for a determination letter from the Internal
Revenue Service with respect to each Pension Benefit Plan, the Annual Reports
on Form 5500 Series filed with any governmental agency for each Welfare Benefit
Plan, Pension Benefit Plan and Other Program for the three most recent plan
years, the Summary Annual Report provided to participants with respect to each
Welfare Benefit Plan, Pension Benefit Plan, and Other Program for the three
most recent plan years, and any correspondence to or from the IRS, Department
of Labor, or bank examiner with respect to any Welfare Benefit Plan, Pension
Benefit Plan, or Other Program during the three most recent plan years, have
been furnished to IBC;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ix)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All Welfare Benefit Plans, Pension
Benefit Plans, and Other Programs related trust agreements or insurance or
annuity contracts (or any other funding instruments), are legally valid and
binding and in full force and effect and, except as set forth on Section
4.1(o)(ix) of the LFC Disclosure Schedule, there are no promised increases in
benefits (whether expressed, implied, oral or written) under any of these plans
nor any obligations, commitments or understandings to continue any of these
plans, (whether expressed, implied, oral or written) except as required by
Section 4980B of the Code and Sections 601-608 of ERISA or under the terms of
such plans; except as set forth on Section 4.1(o)(ix) of the LFC Disclosure
Schedule, LFC, its subsidiaries, or a Common Control Entity has the right to
modify, amend, or terminate each Welfare Benefit Plan, Pension Benefit Plan,
and Other Program at any time; except as set forth on Section 4.1(o)(ix) of the
LFC Disclosure Schedule, the termination of any</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='20',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Welfare
Benefit Plan, Pension Benefit Plan, or Other Program would not accelerate or
increase any benefits payable under such plan; and except as set forth on
Section 4.1(o)(ix) of the LFC Disclosure Schedule, in the event of termination
of any Welfare Benefit Plan, Pension Benefit Plan, or Other Program, neither
LFC, nor its subsidiaries, would have any liability with respect to such plan,
other than the payment of benefits pursuant to such plan;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(x)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except as set forth on Section
4.1(o)(x) of the LFC Disclosure Schedule, there are no claims pending with
respect to, or under, any Pension Benefit Plan, Welfare Benefit Plan or any
Other Program, other than routine claims for plan benefits, and there are no
disputes or litigation pending or threatened with respect to any such plans;
and all contributions, premiums, or other payments due from LFC or any of the
LFC Subsidiaries have been fully paid or adequately provided for and disclosed
on the books and financial statements of LFC and the LFC Subsidiaries;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except as set forth on Section
4.1(o)(xi) of the LFC Disclosure Schedule, no action has been taken, nor has
there been a failure to take any action that would subject any Person or entity
to any liability for any income, excise or other tax or penalty in connection
with any Pension Benefit Plan, Welfare Benefit Plan or any Other Program, other
than for income taxes due with respect to benefits paid; and</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except as otherwise set forth in Section
4.1(o)(xii) of the LFC Disclosure Schedule, neither the execution and delivery
of this Agreement nor the consummation of the transactions contemplated hereby
will (i) result in any payment to be made by LFC or any of the LFC Subsidiaries
(including, without limitation, severance, unemployment compensation, golden
parachute (defined in Section 280G of the Code), or otherwise) becoming due to
any employee, director or consultant, or (ii) increase any benefits otherwise
payable under any Welfare Benefit Plan, Pension Benefit Plan, or any Other
Program.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)&#160;&#160; <u>Litigation</u>.&#160; Except
as disclosed in the LFC SEC Reports or Section 4.1(p) of the LFC Disclosure
Schedule, there are no, actions, suits, proceedings, arbitrations, claims or
investigations pending or, to LFC&#146;s knowledge, threatened against LFC or any of
the LFC Subsidiaries, or any properties or rights of LFC or any of the LFC
Subsidiaries.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(q)&#160;&#160; <u>No IBC Capital Stock</u>.&#160;
LFC does not own or hold directly or indirectly any shares of common
stock of IBC or any other capital stock of IBC, or any options, warrants or
other rights to acquire any shares of common stock of IBC or any other capital
stock of IBC, or in each case, any interests therein.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(r)&#160;&#160;&#160; <u>Employment Matters</u>.&#160;
Except as disclosed on Section 4.1(r) of the LFC Disclosure Schedule,
neither LFC nor any LFC Subsidiary is a party to (i) any oral or written
contracts, agreements, understandings or commitments, express or implied,
granting any material benefits or rights to any employee(s), (ii) any collective
bargaining agreement, or (iii) any conciliation agreement with the Department
of Labor, the Equal Employment Opportunity Commission or any federal, state or
local agency which requires equal employment opportunities or affirmative
action in employment. There are no unfair labor practice complaints pending
against LFC or any LFC Subsidiary before the National Labor Relations Board and
no similar claims pending before any similar state, local or foreign agency. To
the knowledge of LFC, there</font></h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='21',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">is no activity or proceeding
of any labor organization (or representative thereof) or employee group to
organize any employees of LFC or any LFC Subsidiary, nor of any strikes,
slowdowns, work stoppages, lockouts, or threats thereof, by or with respect to
any such employees. LFC and each LFC Subsidiary are in compliance in all
material respects with all applicable laws respecting employment and employment
practices, terms and conditions of employment and wages and hours, and neither
LFC or any LFC Subsidiary are engaged in any unfair labor practice.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(s)&#160;&#160; <u>Regulatory Matters and Examination Reports</u>. Neither LFC nor
any of the LFC Subsidiaries has any formal or informal agreements, arrangements
or understandings with the Federal Reserve Board, the Federal Deposit Insurance
Corporation, the Office of the Comptroller of the Currency, the Oklahoma State
Banking Department, the Oklahoma State Insurance Commissioner, the SEC, the
Oklahoma State Securities Board or any other regulatory authority
(collectively, the &#147;<u>Regulatory Authorities</u>&#148;).&#160; To the extent permitted by law, LFC has made available to IBC
complete and correct copies of (i)&nbsp;all examination reports by Regulatory
Authorities forwarded to LFC or any LFC Subsidiary since December&nbsp;31,
1999; (ii)&nbsp;any correspondence between LFC or any LFC Subsidiary, on the
one hand, and any Regulatory Authority, on the other hand, relating to
examination issues during such periods, and (iii)&nbsp;any agreements,
arrangements or understandings between LFC or any LFC Subsidiary and such
Regulatory Authority, including any agreements, arrangements or understandings
arising out of or related to any such examinations.&#160; Except as set forth in Section 4.1(s) of the LFC Disclosure
Schedule, LFC and the LFC Subsidiaries have not received or been made aware of
any complaints or inquiries under the Community Reinvestment Act, the Fair
Housing Act, the Equal Credit Opportunity Act or any other state or federal
anti-discriminate fair lending law.&#160;
Each of the LFC&#146;s insured depository institution subsidiaries is
&#147;well-capitalized&#148; (as that term is defined at 12 C.F.R. 225.2(r)(2)(i)) and
&#147;well managed&#148; (as that term is defined at 12 C.F.R. 225.81(c)), and each
institution&#146;s examination rating under the Community Reinvestment Act of 1977
is satisfactory or outstanding.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(t)&#160;&#160;&#160; <u>Title to Properties; Encumbrances</u>.&#160; Except as set forth in Section 4.1(t) of the
LFC Disclosure Schedule, LFC and each LFC Subsidiary has unencumbered, good,
legal, and indefeasible title to all their respective material properties and
assets, real and personal, including, without limitation, all the material
properties and assets reflected in the Audited Financial Statements and
Unaudited Financial Statements, except for (i) those properties and assets
disposed of for fair market value in the ordinary course of business and
consistent with prudent banking practice since the date of the Financial
Statements, (ii) properties where the failure to have such title would not have
a Material Adverse Effect, (iii) liens for current taxes not yet due or
payable, (iv) pledges to secure deposits and borrowings and other liens
incurred in the ordinary course of its banking business and (v) liens reflected
on the statement of financial condition of LFC included in the Unaudited
Financial Statements. LFC has made available to IBC all of the files and
information in the possession of LFC or the LFC Subsidiaries concerning such
properties, including any title exceptions which might affect indefeasible
title or value of such property. LFC and the LFC Subsidiaries each hold good
and legal title or good and valid leasehold rights to all assets that are
necessary for them to conduct their respective businesses as they are currently
being conducted.</font></h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='22',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(u)&#160;&#160; <u>Patents, Trademarks and Copyrights</u>.&#160; Except as set forth in Section 4.1(u) of the
LFC Disclosure Schedule, neither LFC nor any of the LFC Subsidiaries requires
the use of any material patent, patent application, invention, process,
trademark (whether registered or unregistered), trademark application, trade
name, service mark, copyright, or any material trade secret for the business or
operations of LFC or any LFC Subsidiary.&#160;
LFC and/or the LFC Subsidiaries own or are licensed or otherwise have
the right to use the items listed in Section 4.1(u) of the LFC Disclosure
Schedule.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160; <u>Fiduciary Responsibilities</u>.&#160; LFC and the LFC Subsidiaries have performed in all respects all
of their respective duties as a trustee, custodian, guardian or as an escrow
agent in a manner which complies in all material respects with all applicable
laws, regulations, orders, agreements, instruments and common law standards,
except where the failure to so perform or comply would not have a Material
Adverse Effect.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(w)&#160; <u>Insurance</u>.&#160; LFC and
the LFC Subsidiaries have in effect the insurance coverage (including fidelity
bonds) described in Section 4.1(w) of the LFC Disclosure Schedule and have had
similar insurance in force for the last 5 years.&#160; Except as set forth on Section 4.1(w) of the LFC Disclosure
Schedule, there have been no claims under such fidelity bonds within the last 5
years and to the knowledge of LFC no facts exist which would form the basis of
a claim under such bonds.&#160; To the
knowledge of LFC, there is no reason to believe that the existing fidelity
coverage would not be renewed by its carrier on substantially the same terms
unless such failure to renew is based upon any pending claim.</font></h3>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(x)&#160;&#160;&#160; <u>Leases, Contracts and Agreements</u>.&#160; Section 4.1(x) of the LFC Disclosure
Schedule sets forth an accurate and complete list of all leases, subleases,
licenses, contracts and agreements to which LFC or any LFC Subsidiary is a
party or by which LFC or any LFC Subsidiary is bound which obligate or may obligate
LFC or any LFC Subsidiary for an amount in excess of $100,000 over the entire
term of any such agreement or related contracts of a similar nature which in
the aggregate obligate or may obligate LFC or any LFC Subsidiary in the
aggregate for an amount in excess of $100,000 over the entire term of such
related contracts (the &#147;<u>Contracts</u>&#148;). LFC has delivered or made available
to IBC true and correct copies of all Contracts.&#160; For the purposes of this Agreement, the Contracts shall be deemed
not to include loans (including agreements covering same) made by, repurchase
agreements made by, spot foreign exchange transactions of, bankers acceptances
of, agreements with Bank customers for trust services, or deposits by LFC and
any LFC Subsidiary, but shall include unfunded loan commitments and letters of
credit issued by LFC or any LFC Subsidiary where the borrowers&#146; total direct
and indirect indebtedness to the Bank is in excess of $100,000. Except as set
forth in Section 4.1(x) of the LFC Disclosure Schedule, no participations or
loans have been sold which have buy back, recourse or guaranty provisions which
create contingent or direct liabilities of LFC or any LFC Subsidiary.&#160; To the knowledge of LFC, all of the
Contracts are legal, valid and binding obligations of the parties to the
Contracts enforceable in accordance with their terms, subject to the effect of
bankruptcy, insolvency, reorganization, moratorium, or other similar laws
relating to creditors&#146; rights generally and to general equitable principles, and
are in full force and effect. To the knowledge of LFC, except as described in
Section 4.1(x) of the LFC Disclosure Schedule, all rent and other payments by
LFC and any LFC Subsidiary under the Contracts are current, except for defaults
which would not reasonably be expected to result in a Material Adverse Effect
on LFC, there are no existing defaults by LFC or any LFC Subsidiary under the</font></h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='23',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Contracts
and no termination, condition or other event has occurred which (whether with
or without notice, lapse of time or the happening or occurrence of any other
event) would constitute a default. LFC and any LFC Subsidiary has a good and
valid leasehold interest in each parcel of real property leased by it free and clear
of all mortgages, pledges, liens, encumbrances and security interests.&#160; Except for deposit accounts entered into
with LFC or an LFC Subsidiary in the ordinary course of business or as set
forth on Section 4.1(x) of the LFC Disclosure Schedule, neither LFC nor any LFC
Subsidiary is a party to or bound by any contract, agreement, commitment,
arrangement or understanding with (i) any director or officer of LFC or any LFC
Subsidiary or any beneficial owner of 5% or more of the outstanding capital
stock of LFC, or (ii) any affiliate, as defined in Section&nbsp;12b-2 of the
1934 Act, of any of the foregoing.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(y)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Knowledge</u>.&#160; Neither LFC nor any LFC Subsidiary has any
knowledge of a fact or circumstance that could impede or delay the ability to
obtain any of the LFC Required Consents or the IBC Required Consents.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(z)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Information Provided</u>.&#160; None of the information supplied or to be
supplied by or on behalf of LFC for inclusion in (i) the Proxy
Statement-Prospectus or the Registration Statement (each as defined in Section
6.1 hereof), (ii) any other applications or documents to be filed with the SEC,
the Nasdaq Stock Market, Inc. (&#147;<u>Nasdaq</u>&#148;),
the Federal Reserve Board and any other regulatory authority seeking approval
or providing notification of the transactions herein described, or (iii) any
other filing with any banking, securities regulatory or other authority in
connection with the transactions contemplated hereby, will, at the respective
times such applications, notices or documents are filed, and, in the case of
the Registration Statement, when it becomes effective, and with respect to such
Proxy Statement-Prospectus, when first mailed to the stockholders of LFC,
contain any untrue statement of a material fact, or omit to state any material
fact necessary in order to make the statements made therein, in light of the
circumstances under which they are made, not misleading.&nbsp; All information
concerning LFC or its Subsidiaries, or for which it is responsible, that is
included in documents that IBC is responsible for filing with the SEC, Nasdaq
or any other regulatory authority in connection with the transactions
contemplated hereby, will, to the best of LFC&#146; knowledge, comply in all
material respects with the provisions of applicable law and any rules and
regulations thereunder.&#160; Notwithstanding
the foregoing or anything to the contrary set forth in this Agreement, LFC
makes no representation or warranty with respect to any information supplied by
or on behalf of IBC or Acquisition Sub which is contained in any of the foregoing
documents.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(aa)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Absence of Certain Payments</u>.
Neither LFC nor any of the LFC Subsidiaries, nor, to the knowledge of LFC or
any of the LFC Subsidiaries, any of their respective directors, officers,
agents, representatives or employees (in their capacity as directors, officers,
agents, representatives or employees of LFC or any such subsidiary) has used
any corporate or other funds for unlawful contributions, payments, gifts, or
entertainment, or made any unlawful expenditures relating to political activity
to government officials or others or established or maintained any unlawful
funds. Neither LFC nor any of the LFC Subsidiaries, nor, to the knowledge of
LFC or any of the LFC Subsidiaries, any of their respective directors,
officers, agents, representatives or employees (in their capacity as directors,
officers, agents, representatives or employees of LFC or any such subsidiary)
has accepted or received any unlawful contributions, payments, gifts, or
expenditures.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='24',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(bb)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Certain Agreements</u>.&#160; Neither LFC nor any of the LFC Subsidiaries
is a party to, or bound by, any contract or agreement that materially limits
the ability of LFC or any LFC Subsidiary, directly or indirectly, to compete in
any line of business or with any Person in any geographic area during any
period of time.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(cc)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Compliance with Law</u>.&#160; Except as set forth in Section 4.1(cc) of
the LFC Disclosure Schedule, neither LFC nor any of the LFC Subsidiaries is in
violation of any applicable statute, rule, regulation, decree or order of any
governmental or regulatory authority applicable to LFC or any of the LFC
Subsidiaries, except for violations which would not have a Material Adverse
Effect on LFC.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(dd)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Derivative Transactions</u>.&#160; All Derivative Transactions entered into by LFC or any of its Subsidiaries were entered into in accordance with applicable rules, regulations and policies of any regulatory authority, and in accordance with the investment, securities, commodities, risk management and other policies, practices and procedures employed by LFC and its Subsidiaries, and were entered into with counter parties believed at the time to be financially responsible and able to understand (either alone or in consultation with their advisers) and to bear the risks of such Derivative Transactions; and LFC and each of its Subsidiaries have duly performed all of their obligations under the Derivative Transactions to the extent that such obligations to perform have accrued, and, to LFC&#146;s knowledge, there are no material breaches, vio
lations or defaults or allegations or assertions of such by any party thereunder.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Derivative Transactions</u>&#148; means any swap transaction, option, warrant, forward purchase or sale transaction, futures transaction, cap transaction, floor transaction or collar transaction relating to one or more currencies, commodities, bonds, equity securities, loans, interest rates, credit-related events or conditions or any indexes, or any other similar transaction or combination of any of these transactions, including collateralized mortgage obligations or other similar instruments or any debt or equity instruments evidencing or embedding any such types of transactions, and any related credit support, collateral or other similar arrangements related to such transactions; provided that the term &#147;Derivative Transactions&#148; shall not include any of the LFC Stock Options.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ee)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>ESOP</u>.&#160; The Local Oklahoma Bank Employee Stock
Ownership Plan, as amended, effective November 1, 1999 (the &#147;<u>ESOP</u>&#148;), is
an employee stock ownership plan within the meaning of Code Section 4975(e)(7)
and is qualified under Code Section 401(a).&#160;
The trust forming part of the ESOP has been duly constituted in
accordance with a valid and binding trust instrument, is validly existing and
qualified under Code Section 401(a) and tax-exempt under Code Section
501(a).&#160; The Administrator of the ESOP
has been duly and lawfully appointed by the board of directors of the LFC Bank
and has the power and authority to administer the ESOP.&#160; The Trustee of the ESOP is duly-authorized,
and has all requisite power and authority necessary, to enter into and perform
its obligations as trustee under the ESOP and the Trust Agreement.&#160; The ESOP has not incurred any indebtedness
or other obligations or liabilities, and as of the Closing, will not have
incurred any indebtedness or other obligations or liabilities.&#160; Except as disclosed in Section 4.1(ee) of
the LFC Disclosure Schedule, the ESOP constitutes an &#147;employee stock ownership
plan&#148; as defined in Code Section 4975(e)(7) and</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='25',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
407(d)(6) of ERISA.&#160; Contributions by
LFC or any of the LFC Subsidiaries to the ESOP are deductible by LFC pursuant
to (but subject to the limitations of) Code Section 404.&#160; For the purposes of this Section 4.1(ee)
capitalized terms used herein shall have the meaning ascribed to them in the
ESOP plan document, as amended.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.2&#160; <u>Representations
and Warranties of IBC</u></font></b>.&#160; Except as set forth in the
Disclosure Schedule delivered by IBC to LFC prior to the execution of this
Agreement (the &#147;<u>IBC Disclosure Schedule</u>&#148;), IBC represents and warrants
to LFC as follows:</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160; <u>Organization, Standing and Power</u>.&#160; IBC is a corporation duly organized, validly existing and in good
standing under the laws of the state of Texas, and, except as would not
reasonably be expected to result in a Material Adverse Effect on IBC, has the
full power and authority (including all licenses, franchises, permits and other
governmental authorizations which are legally required) to own its properties
and to engage in the business and activities now conducted by it.&#160; Each of IBC&#146;s Subsidiaries is duly
organized, validly existing and in good standing under the laws of the state of
its organization, and except as would not reasonably be expected to result in a
Material Adverse Effect on IBC, has full power and authority (including all
licenses, franchises, permits and other governmental authorizations which are
legally required) to own its properties and to engage in the business and
activities presently conducted by it.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160; <u>Capitalization and Ownership</u>.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The authorized capital stock of IBC consists exclusively of
105,000,000 shares of IBC Common Stock, of which as of January 19, 2004,
38,711,713 shares were outstanding.&#160; All
issued and outstanding shares of IBC Common Stock are duly authorized, validly
issued, fully paid and nonassessable and free of any preemptive rights and have
not been issued in violation of any preemptive rights of any Person.&#160; No holders of shares of IBC Common Stock
have any rights of rescission or other claims against IBC under the 1933 Act
resulting from any failure of such shares to have been sold by IBC pursuant to
a valid exemption under the 1933 Act or otherwise in compliance therewith.</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:48.95pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Except as set forth in Section 4.2(b) of the IBC
Disclosure Schedule, all of the issued and outstanding shares of capital stock
of each of the IBC Subsidiaries are duly authorized, validly issued and
outstanding, fully paid, nonassessable, and are owned directly or indirectly by
IBC.</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:48.95pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>There are no outstanding options, warrants, conversion
rights, calls or commitments of any kind obligating IBC or any of the IBC
Subsidiaries to issue, deliver or sell or cause to be issued, delivered or
sold, directly or indirectly, additional shares of capital stock or any other
securities convertible into or exercisable for, or evidencing the right to
subscribe for any capital stock of IBC, and no authorization therefor has been
given, except that as of January 19, 2004, there were outstanding options to
acquire an aggregate </font>of
1,444,900 shares of IBC Common Stock (the &#147;<u>IBC Stock Options</u>&#148;).&#160; Neither IBC nor any IBC Subsidiary has any
outstanding commitment or obligation to</h4>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">26</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='26',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">repurchase, reacquire or redeem any of its outstanding capital stock or
any IBC Stock Options.</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:48.95pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>There are no voting trusts or stockholder agreements
to which IBC is a party with respect to the voting of the capital stock of IBC.</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:48.95pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The shares of IBC Common Stock to be issued in
exchange for Shares in the Merger, when issued in accordance with the terms of
this Agreement, will be duly authorized, validly issued, fully paid and
nonassessable and the issuance thereof is not subject to any preemptive right.</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:48.95pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160; <u>Authority; No Violations</u>.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; IBC has all requisite corporate power and authority to
enter into this Agreement and to consummate the transactions contemplated
hereby.&#160; The execution, delivery and
performance of this Agreement and the consummation of the transactions
contemplated hereby have been duly authorized by all necessary corporate action
on the part of IBC and no other corporate action or other corporate proceedings
on the part of IBC is necessary to authorize this Agreement or the transactions
hereby contemplated.&#160; This Agreement has
been duly executed and delivered by IBC and constitutes a valid and binding
agreement of IBC, enforceable against it in accordance with its terms, except as
such enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium and similar laws relating to or affecting creditors generally, by
general equity principles (regardless of whether such enforceability is
considered in a proceeding in equity or at law) or by an implied covenant of
good faith and fair dealing.</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:48.95pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The execution and delivery of this Agreement by IBC does not
and will not, as the case may be, and the consummation by IBC of the Merger and
the other transactions contemplated hereby will not, result in a Violation
pursuant to:&#160; (A)&nbsp;any provision of
the articles of incorporation or by-laws of IBC or any Subsidiary of IBC or
(B)&nbsp;except as would not reasonably be expected to result in a Material
Adverse Effect on IBC, subject to obtaining or making the consents, approvals,
orders, authorizations, registrations, declarations and filings referred to in
paragraph&nbsp;(iii) below, any loan or credit agreement, note, mortgage, bond,
indenture, lease, benefit plan or other agreement, obligation, instrument,
permit, concession, franchise, license, judgment, order, decree, statute, law,
ordinance, rule or regulation applicable to IBC or any Subsidiary of IBC or
their respective properties or assets.</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:48.95pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160; No consent, approval, order or authorization of, or
registration, declaration or filing with, any Governmental Entity is required
by or with respect to IBC or any Subsidiary of IBC in connection with the
execution, delivery and performance of this Agreement by IBC and Acquisition
Sub or the consummation of the Merger and the Subsidiary Mergers, except for
those required under or in relation to (A)&nbsp;the BHC Act, (B) the DGCL with
respect to the filing of the Certificate of Merger, (C)&nbsp;laws, rules,
regulations, practices and orders of any applicable federal or state banking
departments or of any federal or state regulatory body having jurisdiction over
banking matters, (D)&nbsp;antitrust or other competition laws of other
jurisdictions, (E)&nbsp;the registration under</font></h4>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">27</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='27',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the 1933 Act of the shares of IBC Common
Stock to be issued in the Merger, (F) the registration or qualification of the
shares of IBC Common Stock to be issued in the Merger under state securities or
&#147;blue sky&#148; laws, (G) the listing of the shares of IBC Common Stock to be issued
in the Merger on the Nasdaq National Market System, subject to official notice
of issuance, (H) such consents and approvals specified in Section&nbsp;4.2(c)
of the IBC Disclosure Schedule and (I)&nbsp;such consents, approvals, orders,
authorizations, registrations, declarations and filings the failure of which to
make or obtain would not reasonably be expected to result in a Material Adverse
Effect on IBC.&#160; Consents, approvals,
orders, authorizations, registrations, declarations and filings required under
or in relation to clauses (A)-(H) above are hereinafter referred to as the &#147;<u>IBC
Required Consents</u>.&#148;</font></h4>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:48.95pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(d)&#160;&#160; </font><u>Financial Statements</u>.&#160; IBC has delivered to LFC (i) the audited consolidated statements
of condition of IBC and its Subsidiaries as of December 31, 2002 and 2001 and
(ii) the related audited consolidated statements of income, shareholders&#146;
equity and cash flows for the years ended December 31, 2002, 2001 and 2000,
together with the notes thereto, accompanied by the report thereon of the
independent certified public accountant who examined such statements
(collectively, the &#147;<u>IBC Audited Financial Statements</u>&#148;).&#160; Except to the extent qualified by footnotes
contained in the IBC Audited Financial Statements and the report of the
independent accountant thereon, the IBC Audited Financial Statements fairly
present in all material respects the financial position of IBC and the IBC
Subsidiaries as of the dates thereof and the results of IBC&#146;s operations for
the periods indicated in conformity with GAAP applied on a consistent
basis.&#160; In addition, IBC has delivered
to LFC the unaudited consolidated statements of condition of IBC and its
Subsidiaries as of September 30, 2003, and the related unaudited statements of
income for the nine-month period then ended (collectively, the &#147;<u>IBC
Unaudited Financial Statements</u>&#148;).&#160;
The IBC Unaudited Financial Statements fairly present in all material
respects the financial position of IBC as of the date thereof and the results
of its operations for the period indicated in conformity with GAAP applied on a
consistent basis, except (i) as described in the footnotes to such IBC
Unaudited Financial Statements, (ii) for year end closing adjustments that have
not been applied, and (iii) the IBC Unaudited Financial Statements may not
include all footnote disclosures required by GAAP.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160; <u>Reports</u>.&#160; IBC has
filed all reports, schedules, forms, statements and other documents required to
be filed by it with the SEC since January&nbsp;1, 2000 (collectively, including
all exhibits thereto, the &#147;<u>IBC SEC Reports</u>&#148;).&#160; None of the IBC SEC Reports, including, without limitation, any
financial statements or schedules included therein, as of their respective
dates or, in the case of any registration statements, at the time of effectiveness
(and, if amended or superseded by a filing prior to the date of this Agreement
or the Closing, then on the date of such filing), contained or will contain any
untrue statement of a material fact or omitted or will omit to state a material
fact required to be stated therein or necessary to make the statements made
therein, in light of the circumstances under which they were made, not
misleading.&#160; All of such IBC SEC
Reports, as of their respective dates (and as of the date of any amendment to
the respective IBC SEC Report), complied as to form in all material respects
with the applicable requirements of the 1933 Act and the 1934 Act and the rules
and regulations promulgated thereunder, including, without limitation, each of
the consolidated financial statements of IBC (including any related notes
thereto) included within the IBC SEC Reports comply as to form in</font></h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">28</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='28',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">all material respects with
applicable accounting requirements and the published rules and regulations of
the SEC with respect thereto.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160; <u>Brokers or Finders</u>.&#160;
No agent, broker, investment banker, financial advisor or other firm or
Person is or will be entitled to any broker&#146;s or finder&#146;s fee or any other
similar commission or fee in connection with any of the transactions contemplated
by this Agreement based upon arrangements made by or on behalf of IBC or any of
its Subsidiaries.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160; <u>Litigation</u>.&#160; There
are no actions, suits, proceedings, arbitrations, claims or investigations
pending or, to IBC&#146;s knowledge, threatened against IBC or any of its
Subsidiaries, or any properties or rights of IBC or any of its Subsidiaries,
before any Governmental Entity that (i)&nbsp;seek to question, delay or prevent
the consummation of the Merger or the other transactions contemplated hereby,
(ii)&nbsp;would reasonably be expected to affect adversely the ability of IBC
to fulfill its obligations hereunder, including without limitation, IBC&#146;s
obligations under Article I, Article II and Article III, or (iii) would
reasonably be expected to result in a Material Adverse Effect on IBC.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(h)&#160;&#160; </font><u>No LFC Capital Stock</u>.&#160; IBC does not own or hold directly or indirectly any shares of
common stock of LFC or any other capital stock of LFC, or any options, warrants
or other rights to acquire any shares of common stock of LFC or any other
capital stock of LFC, or in each case, any interests therein.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(i)&#160;&#160;&#160; </font><u>Regulatory Matters and Examination Reports</u>. Neither
IBC nor any of the IBC Subsidiaries has any formal or informal agreements,
arrangements or understandings with the Federal Reserve Board, the Federal
Deposit Insurance Corporation, the Office of the Comptroller of the Currency,
the Texas State Banking Department, the Texas State Insurance Commission, the
SEC, the Texas State Securities Board or any other regulatory authority.&#160; Each of IBC&#146;s insured depository institution
subsidiaries is &#147;well-capitalized&#148; (as that term is defined at 12 C.F.R.
225.2(r)(2)(i)) and &#147;well managed&#148; (as that term is defined at 12 C.F.R.
225.81(c)), and each institution&#146;s examination rating under the Community
Reinvestment Act of 1977 is satisfactory or outstanding.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(j)&#160;&#160;&#160; </font><u>Knowledge</u>.&#160;
Neither IBC nor any IBC Subsidiary has any knowledge of a fact or
circumstance that could impede or delay the ability to obtain any of the IBC
Required Consents or the LFC Required Consents.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160;&#160; <u>Information Provided</u>.&#160;
None of the information supplied or to be supplied by or on behalf of
IBC for inclusion in (i) the Proxy Statement-Prospectus or the Registration
Statement, (ii) any other applications or documents to be filed with the SEC, Nasdaq, the Federal Reserve Board and
any other regulatory authority seeking approval or providing notification of
the transactions herein described, or (iii) any other filing with any banking,
securities regulatory or other authority in connection with the transactions
contemplated hereby, will, at the respective times such applications, notices
or documents are filed, and, in the case of the Registration Statement, when it
becomes effective, and with respect to such Proxy Statement-Prospectus, when
first mailed to the stockholders of LFC, contain any untrue statement of a
material fact, or omit to state any material fact necessary in order to make
the statements made therein, in light of the circumstances under which they are
made, not misleading.&nbsp; All information concerning IBC</font></h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">29</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='29',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or its Subsidiaries, or for which it is responsible, that is included
in documents that LFC is responsible for filing with the SEC, Nasdaq or any
other regulatory authority in connection with the transactions contemplated
hereby, will, to the best of IBC&#146;s knowledge, comply in all material respects
with the provisions of applicable law and any rules and regulations
thereunder.&#160; Notwithstanding the
foregoing or anything to contrary set forth in this Agreement, IBC makes no
representation or warranty with respect to any information supplied by or on
behalf of LFC which is contained in any of the foregoing documents.</font></p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160; </font><u>Compliance with Law</u>.&#160; Neither IBC nor any of the IBC Subsidiaries
is in violation of any applicable statute, rule, regulation, decree or order of
any governmental or regulatory authority applicable to IBC or any of the IBC
Subsidiaries, except for violations which would not have a Material Adverse
Effect on IBC.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)</font><font size="1" style="font-size:8.5pt;">&#160; </font><u>Financing</u>.&#160; IBC has cash, cash equivalents and/or
available lines of credit sufficient to pay the aggregate Per Share Cash
Consideration at the Effective Time, and through the date of payment of the
Merger Consideration by IBC, IBC will have all funds necessary to pay the
aggregate Per Share Cash Consideration.&#160;
Each of IBC and IBC Bank is, and immediately following completion of the
Merger and the Subsidiary Mergers will be, in compliance with all capital
requirements applicable to it.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.3</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Representations and Warranties of Acquisition Sub</font></u></b>.&#160;
Acquisition Sub represents and warrants to LFC as follows:</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Organization, Standing and Power</u>.&#160; Acquisition Sub is a
corporation duly incorporated, validly existing and in good standing under the
laws of Delaware.&#160; Acquisition Sub is an
indirect wholly-owned subsidiary of IBC.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Authority; No Violations</u>.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160; </font>Acquisition Sub has all requisite corporate power and authority to
enter into this Agreement and to consummate the transactions contemplated hereby.&#160; The execution, delivery and performance by
Acquisition Sub of this Agreement and the consummation by Acquisition Sub of
the transactions contemplated hereby have been duly authorized by all necessary
corporate and stockholder action on the part of Acquisition Sub.&#160; This Agreement has been duly executed and
delivered by Acquisition Sub and constitutes a valid and binding agreement of
Acquisition Sub, enforceable against it in accordance with its terms, except as
such enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium and other similar laws relating to or affecting creditors generally,
by general equity principles (regardless or whether such enforceability is
considered in a proceeding in equity or at law) or by an implied covenant of
good faith and fair dealing.</h3>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:48.95pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>The execution and delivery of this Agreement by Acquisition Sub does
not or will not, as the case may be, and the consummation by Acquisition Sub of
the and the other transactions contemplated hereby will not, result in a
Violation pursuant to:&#160; any provision of
the certificate of incorporation or by-laws of Acquisition Sub or any loan or
credit agreement, note, mortgage, bond, indenture, lease, benefit plan or other
agreement,</h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">30</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='30',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">obligation, instrument,
permit, concession, franchise, license, judgment, order, decree, statute, law,
ordinance, rule or regulation applicable to Acquisition Sub or its properties
or assets.</font></h3>

<h4 align="left" style="font-weight:normal;margin:0in 0in .0001pt .5in;text-align:left;text-indent:48.95pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h4>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>No Business Activities</u>.&#160; Acquisition Sub has not conducted any
activities or operations other than in connection with the organization of
Acquisition Sub, the negotiation and execution of this Agreement and the
consummation of the transactions contemplated hereby. Acquisition Sub has no Subsidiaries.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE
V</font></b></p>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;"><br>
COVENANTS RELATING TO CONDUCT OF BUSINESS</font></u></b></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.1</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Covenants of LFC</font></u></b><b><font style="font-weight:bold;">.</font></b>&#160;
During the period from the date of this Agreement and continuing until
the Effective Time, LFC agrees as to itself and the LFC Subsidiaries that
(except as expressly contemplated or permitted by this Agreement or as
otherwise indicated on the LFC Disclosure Schedule or as required by a
Governmental Entity of competent jurisdiction or to the extent that IBC shall
otherwise consent in writing):</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Ordinary Course</u>.&#160; LFC and the LFC Subsidiaries shall carry on
their respective businesses in the usual, regular and ordinary course in all
material respects, in substantially the same manner as heretofore conducted,
and shall use all commercially reasonable efforts to preserve intact their
present lines of business, maintain their rights and franchises and preserve
their relationships with customers, suppliers and others having business
dealings with them to the end that their ongoing businesses shall not be
impaired in any material respect at the Effective Time; <u>provided</u>, <u>however</u>,
that no action by LFC or its Subsidiaries with respect to matters specifically
addressed by any other provision of this <u>Section&nbsp;5.1</u> shall be
deemed a breach of this <u>Section&nbsp;5.1(a)</u> unless such action would
constitute a breach of one or more of such other provisions.&#160; In furtherance of the foregoing, LFC shall,
and shall cause each of the LFC Subsidiaries to:</h3>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160; extend
credit in accordance with existing lending policies, except that it shall not,
without the prior written consent of IBC, (A) make any new loan (except
pursuant to commitments made prior to the date of this Agreement) to any Person
if the amount of the new loan, when aggregated with all other loans or
extensions of credit (including, without limitation, amounts funded pursuant to
clause (B) below) made to such Person from and after the date of this
Agreement, would exceed $1.5 million, or (B) modify, restructure or renew any
existing loan (except pursuant to commitments made prior to the date of this
Agreement) if either (1) the modification, restructuring or renewal of the
existing loan requires additional amounts to be funded which exceed in the
aggregate $1.5 million or (2) the loan to be modified, restructured or renewed
is classified substandard, doubtful or loss and the modification, restructuring
or renewal changes in any material respect the terms of the loan or requires
the advancement of additional funds;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;
maintain in a manner consistent with past practices all of LFC&#146;s and the
LFC Subsidiaries&#146; properties in good repair, order and condition,</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">31</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='31',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">reasonable
wear and tear excepted, and maintain the insurance coverages described in
Section 4.1(w) of the LFC Disclosure Schedule or obtain comparable insurance
coverages from reputable insurers which, in respect to amounts, types and risks
insured, are adequate for the business conducted by LFC and the LFC
Subsidiaries and consistent with the existing insurance coverages;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160; timely
file with all appropriate regulatory authorities all financial statements and
other reports required to be so filed by LFC and/or the LFC Subsidiaries and to
the extent permitted by applicable law, promptly thereafter deliver to IBC
copies of all financial statements and other reports required to be so filed;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160; comply
in all respects with all applicable laws and regulations, domestic and foreign,
except where the failure to so comply would not have a Material Adverse Effect
on LFC;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160; promptly
give written notice to IBC upon obtaining knowledge of any event or fact that
would cause any of the representations or warranties of LFC contained in or
referred to in this Agreement to be untrue or misleading in any material
respect;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)&#160; deliver
to IBC a list, dated as of the Closing Date, showing (i) the name of each bank
or institution where LFC and/or the LFC Subsidiaries have accounts or safe
deposit boxes, (ii) the name(s) in which such accounts or boxes are held and
(iii) the name of each Person authorized to draw thereon or have access
thereto;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii) deliver to IBC a list, dated as of the Closing
Date, showing all liabilities and obligations of LFC and/or the LFC
Subsidiaries in excess of $200,000, except those arising in the ordinary course
of their respective businesses, incurred since September 30, 2003, certified by
an officer of LFC;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(viii)&#160;
promptly notify IBC of the knowledge on the part of LFC of any material
change or inaccuracies in any data previously given or made available to IBC or
Acquisition Sub pursuant to this Agreement; and</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ix)&#160; provide
access, to the extent that LFC or the LFC Subsidiaries have the right to
provide access, to any or all properties and facilities so as to enable IBC to
physically inspect any structure or components of any structure on such
property, including without limitation surface and subsurface testing and
analyses.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Dividends; Changes in Share Capital</u>.&#160; LFC shall not, and shall not
permit any of the LFC Subsidiaries to, and shall not propose to, (i)&nbsp;declare
or pay any dividends on or make other distributions in respect of any of its
capital stock, except dividends by wholly owned Subsidiaries of LFC to LFC and
except as set forth in Section 5.1(b) of the LFC Disclosure Schedule,
(ii)&nbsp;split, combine or reclassify any of its capital stock or issue or
authorize or propose the issuance of any other securities in respect of, in
lieu of or in substitution for, shares of its capital stock, except for any
such transaction by a wholly owned Subsidiary of LFC which remains a wholly
owned Subsidiary of LFC after consummation of such transaction or</h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">32</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='32',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&nbsp;repurchase,
redeem or otherwise acquire any shares of its capital stock or any securities
convertible into or exercisable for any shares of its capital stock except for
the purchase from time to time by LFC of Shares in the ordinary course of
business consistent with past practice in connection with LFC&#146;s employee
benefit plans.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Issuance of Securities</u>.&#160; LFC shall not, and shall not permit any of
the LFC Subsidiaries to, issue, grant, deliver or sell, or authorize or propose
the issuance, grant, delivery or sale of, any shares of its capital stock of
any class, or any securities convertible into or exercisable for, or any
rights, warrants or options to acquire any such shares or enter into any
agreement with respect to any of the foregoing, or any stock appreciation
rights or any phantom stock other than (i)&nbsp;the issuance of Shares upon the
exercise of stock options granted prior to the date of this Agreement,
(ii)&nbsp;issuances by a wholly owned Subsidiary of LFC of capital stock to
such Subsidiary&#146;s parent or another wholly owned Subsidiary of LFC,
(iii)&nbsp;issuances of shares, options, rights or other awards and amendments
to equity-related awards in numbers not greater than those set forth in
Section&nbsp;5.1(c) of the LFC Disclosure Schedule and (iv)&nbsp;issuances in
connection with actions permitted by Section&nbsp;5.1(e).</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Governing Documents</u>.&#160; Except to the extent required to comply with
their respective obligations hereunder, required by law or required by the
rules and regulations of Nasdaq, LFC and the LFC Subsidiaries shall not amend,
in the case of the LFC Subsidiaries, in any material respect, or propose to so
amend their respective certificates of incorporation, by-laws or other
governing documents.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>No Acquisitions</u>.&#160; LFC shall not, and shall not permit any of
the LFC Subsidiaries to, acquire or agree to acquire by merging or
consolidating with, or by purchasing a substantial equity interest in or a
substantial portion of the assets of, or by any other manner, any business or
any corporation, partnership, association or other business organization or
division thereof or otherwise acquire or agree to acquire any assets (other
than the acquisition of assets used in the operations of the business of LFC
and its Subsidiaries in the ordinary course); <u>provided</u>, <u>however</u>,
that the foregoing shall not prohibit (x)&nbsp;internal reorganizations or
consolidations involving existing Subsidiaries of LFC or (y)&nbsp;the creation
of new Subsidiaries of LFC organized to conduct or continue activities
otherwise permitted by this Agreement.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160; </font><u>No Dispositions</u>.&#160; Other than (i)&nbsp;internal reorganizations
or consolidations involving existing Subsidiaries of LFC,
(ii)&nbsp;dispositions referred to in the LFC SEC Reports filed prior to the
date of this Agreement, (iii)&nbsp;as may be required by or in conformance with
law or regulation in order to permit or facilitate the consummation of the
transactions contemplated hereby, or (iv)&nbsp;in the ordinary course of
business (including, without limitation, sales of &#147;other real estate owned&#148; in
the ordinary course of business), LFC shall not, and shall not permit any
Subsidiary of LFC to, sell, lease, encumber or otherwise dispose of, or agree
to sell, lease, encumber or otherwise dispose of, any of its assets (including
capital stock of Subsidiaries of LFC) which are material to LFC.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Investments; Indebtedness</u>.&#160; LFC shall not, and shall not
permit any of its Subsidiaries to, other than deposit liabilities owed to
deposit customers in the ordinary course of business, including Certificates of
Deposit, trade accounts payable incurred in the ordinary course of business,
federal funds purchased, Federal Home Loan Bank borrowings and securities</h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">33</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='33',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">sold under agreements to
repurchase, in each case (x) that mature within one year and (y) are incurred
in the ordinary course of business consistent with past practice, other than in
connection with actions permitted by <u>Section&nbsp;5.1(e)</u>, create, incur,
assume or suffer to exist any indebtedness, issuances of debt securities,
guarantees, loans or advances not in existence as of the date of this Agreement
except pursuant to the credit facilities, indentures and other arrangements in
existence on the date of this Agreement and in the ordinary course of business,
and any other indebtedness existing on the date of this Agreement, in each case
as such credit facilities, indentures, other arrangements and other existing
indebtedness may be amended, extended, modified, refunded, renewed, refinanced
or replaced after the date of this Agreement, but only if the aggregate
principal amount thereof is not increased thereby, the term thereof is not extended
thereby and the other terms and conditions thereof, taken as a whole, are not
less advantageous to LFC and its Subsidiaries than those in existence as of the
date of this Agreement.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Compensation</u>.&#160; Other than as contemplated by <u>Section&nbsp;6.5</u>
or as set forth in Section 5.1(h) of the LFC Disclosure Schedule, LFC shall
not, and shall not permit any of the LFC Subsidiaries to, except in the
ordinary course of business consistent with past practice or as required by an
existing agreement or plan, increase the amount of compensation of, or pay or
agree to pay or accrue any bonus or like benefit to or for the credit of, any
director, officer, employee or other Person (provided that nothing herein shall
preclude LFC and the LFC Subsidiaries from increasing the amount of
compensation or paying any bonuses to employees who are not executive officers
to the extent such increases or bonuses are in the ordinary course of business
and consistent with past practices), make any increase in or commitment to
increase any employee benefits or change or modify the period of vesting or
retirement age for any participant in any employee benefit plan, enter into or
amend any employment, consulting or severance agreement or other agreement with
any director, officer or employee, issue any LFC Stock Options or any stock
appreciation rights or phantom stock, adopt, amend, terminate or make any
commitment to adopt any additional employee benefit plan or make any
contribution, other than regularly scheduled contributions, to any Benefit
Plan.&#160; Further, unless IBC shall
otherwise agree in writing, LFC shall, and shall cause each of the LFC
Subsidiaries to, not permit the term of any employment agreement to which it is
a party to be renewed or extended (including, without limitation, pursuant to
any &#147;evergreen&#148; or similar provision) and shall take all actions necessary
(including, without limitation, giving of any required notices) under the terms
of any such employment agreement to ensure that the term of no such employment
agreement is (or is permitted to be) renewed or extended.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160; </font><u>Other Actions</u>.&#160; LFC shall not, and shall not permit any of
its Subsidiaries to, take any action that would, or fail to take any
commercially reasonable action which failure would, or that could reasonably be
expected to, result in, except as otherwise permitted by <u>Section&nbsp;6.4</u>,
any of the conditions to the Merger set forth in Article&nbsp;VII not being
satisfied.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160; </font><u>Further Negative Covenants</u>.&#160; Except with the prior written
consent of IBC or as otherwise specifically permitted by this Agreement, LFC
shall not and shall cause the LFC Subsidiaries not to, from the date of this
Agreement to the Closing:</h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">34</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='34',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160; make any
change in the methods used in allocating and charging costs, except as may be
required by applicable law, regulation or GAAP, prompt notice of which shall be
given to IBC;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160; cancel
any debts, waive any claims or rights of value or sell, transfer, or otherwise
dispose of any of its material properties or assets, except in the ordinary
course of business and consistent with past practices;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;
dispose of or permit to lapse any rights to the use of any material
trademark, service mark, trade name or copyright, or dispose of or disclose to any
Person other than its employees any material trade secret not theretofore a
matter of public knowledge;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160; except
through settlement of indebtedness, foreclosure, acquisition in lieu of
foreclosure, the exercise of creditors&#146; remedies or in a fiduciary capacity,
acquire the capital stock or other equity securities or interest of any Person;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160; except
for capital expenditures which are in process as of the date of this Agreement
or are otherwise required pursuant to agreements in existence as of the date of
this Agreement, make any capital expenditure or a series of expenditures of a
similar nature in excess of $500,000 in the aggregate;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)&#160; make
any income tax or franchise tax election or settle or compromise any federal,
state, local or foreign income tax or franchise tax liability, or, except in
the ordinary course of business consistent with past practices, make any other
tax election or settle or compromise any other federal, state, local or foreign
tax liability;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)&#160; except
for negotiations and discussions between the parties hereto relating to the
transactions contemplated by this Agreement or as otherwise permitted
hereunder, enter into any transaction, or enter into, extend, modify or amend
any lease, contract or commitment by which any such transaction, contract, or
commitment would obligate LFC in an amount which would either (x) have a term
of greater than a year or (y) exceed $100,000, alone or in the aggregate, over
the life thereof, other than transactions entered into in the ordinary course
of business and consistent with past practices;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(viii)&#160; make
any investments except in the ordinary course of business and in accordance
with past practices;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ix)&#160; change
any fiscal year or the length thereof;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(x) alter the size or composition of the LFC
Subsidiaries&#146; deposit base, securities portfolio, loan portfolio or asset mix,
except in the ordinary course of business.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.2</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Covenants of IBC</font></u></b><b><font style="font-weight:bold;">.</font></b>&#160;
During the period from the date of this Agreement and continuing until
the Effective Time, IBC agrees as to itself and its Subsidiaries that (except
as expressly contemplated or permitted by this Agreement or as otherwise
indicated on the IBC</h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">35</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='35',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Disclosure Schedule or as
required by a Governmental Entity of competent jurisdiction or to the extent
that LFC shall otherwise consent in writing):</font></h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Financin</u>g.&#160; IBC shall not, and shall not permit any of
its Subsidiaries to, take any action that would, or fail to take any action
which failure would, impair IBC&#146;s source of funds to pay the aggregate Per
Share Cash Consideration pursuant to this Agreement and otherwise to satisfy
its obligations hereunder.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Regulatory Approvals</u>.&#160; IBC shall not, and shall not permit any of
its Subsidiaries to, take any action that would, or fail to take any
commercially reasonable action which failure would, reasonably be expected to
impede or delay any LFC Required Consent or IBC Required Consent or otherwise
impede or delay the consummation of the Merger and the other transactions
contemplated by this Agreement.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Other Actions</u>.&#160; IBC shall not, and shall not permit any of
its Subsidiaries to, take any action that would, or fail to take any
commercially reasonable action which failure would, or that could reasonably be
expected to, result in any of the conditions to the Merger set forth in
Article&nbsp;VII not being satisfied.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.3</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Advice of Changes; Governmental Filings</font></u></b><b><font style="font-weight:bold;">.</font></b>&#160; Each party shall (a)&nbsp;confer on a
regular and frequent basis with the other and (b)&nbsp;report (to the extent
permitted by law or regulation or any applicable confidentiality agreement) on
operational matters.&#160; LFC shall file all
reports required to be filed by it with the SEC (and all other Governmental
Entities) between the date of this Agreement and the Effective Time and shall
(to the extent permitted by law or regulation or any applicable confidentiality
agreement) deliver to IBC copies of all such reports, announcements and
publications promptly after the same are filed.&#160; Subject to applicable laws relating to the exchange of
information, each of LFC and IBC shall have the right to review in advance, and
will consult with the other with respect to, all the information relating to
the other party and each of their respective Subsidiaries, which appears in any
filings, announcements or publications made with, or written materials
submitted to, any third party or any Governmental Entity in connection with the
transactions contemplated by this Agreement.&#160;
In exercising the foregoing right, each of the parties hereto agrees to
act reasonably and as promptly as practicable.&#160;
Each party agrees that, to the extent practicable and as timely as
practicable, it will consult with, and provide all appropriate and necessary
assistance to, the other party with respect to the obtaining of all permits,
consents, approvals and authorizations of all third parties and Governmental
Entities necessary or advisable to consummate the transactions contemplated by
this Agreement and each party will keep the other party apprised of any material
developments relating to completion of the transactions contemplated hereby.</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.4</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Data Processing Conversion</font></u></b>.&#160;
From and after the date hereof, IBC and LFC shall meet on a regular
basis to discuss and plan for the conversion of LFC&#146;s and its Subsidiaries&#146;
data processing and related electronic informational systems to those used by
IBC and its Subsidiaries with the goal of conducting such conversion
simultaneously with the consummation of the Bank Merger.</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.5</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Establishment of Accruals</font></u></b><b><font style="font-weight:bold;">.</font></b> If requested by IBC, at or prior to the
Effective Time, LFC shall, consistent with GAAP, establish such additional
accruals and reserves as may</h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">36</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='36',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">be necessary to conform its
accounting and credit loss reserve practices and methods to those of IBC and
its Subsidiaries (as such practices and methods are to be applied to LFC from
and after the Effective Time) and reflect IBC&#146;s plans with respect to the
conduct of LFC&#146;s business following the Merger and to provide for the costs and
expenses relating to the consummation by LFC of the transactions contemplated
by this Agreement, provided, however, that no such accruals or reserves need to
be established prior to the satisfaction of the conditions set forth in Section
7.1 and 7.3. The establishment of such accrual and reserves shall not, in and
of itself, constitute a breach of any representation, warranty, covenant,
agreement or condition of LFC contained in the Agreement or otherwise be
considered in determining whether any such breach shall have occurred.</font></h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.6</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Control of LFC&#146;s Business</font></u></b><b><font style="font-weight:bold;">.</font></b>&#160;
Nothing contained in this Agreement shall be deemed to give IBC,
directly or indirectly, the right to control or direct LFC&#146;s operations prior
to the Effective Time.&#160; Prior to the
Effective Time, LFC shall exercise, consistent with the terms and conditions of
this Agreement, complete control and supervision over its operations.</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE
VI</font></b></p>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;"><br>
ADDITIONAL AGREEMENTS</font></u></b></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.1</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">LFC Stockholders Meeting; Preparation of Proxy Statement</font></u></b><b><font style="font-weight:bold;">.</font></b></h2>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>LFC shall, as promptly as practicable following the execution of this
Agreement, duly call, give notice of, convene and hold a meeting of its
stockholders (the &#147;<u>LFC Stockholders Meeting</u>&#148;) for the purpose of
obtaining the Required LFC Vote with respect to the transactions contemplated
by this Agreement, shall take all lawful action to solicit the approval of this
Agreement by the Required LFC Vote and the Board of Directors of LFC shall
recommend approval of this Agreement by the stockholders of LFC, provided that
nothing in this Agreement shall prevent the Board of Directors of LFC from
withholding, withdrawing, amending or modifying its recommendation if the Board
of Directors of LFC determines, after consultation with its outside counsel,
that such action is legally required in order for the directors to comply with
their fiduciary duties under applicable law.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>IBC and LFC shall cooperate in preparing, and LFC shall cause to be
filed with the SEC, as promptly as reasonably practicable following the date
hereof, mutually acceptable proxy materials which shall constitute the proxy
statement-prospectus relating to the matters to be submitted to the LFC
stockholders at the LFC Stockholders Meeting (such proxy statement-prospectus,
and any amendments or supplements thereto, the &#147;<u>Proxy Statement-Prospectus</u>&#148;),
and IBC shall prepare and file with the SEC a registration statement on Form
S-4 with respect to the issuance of IBC Common Stock in the Merger (such Form
S-4, and any amendments or supplements thereto, the &#147;<u>Registration Statement</u>&#148;).
The Proxy Statement-Prospectus will be included as a prospectus in and will
constitute a part of the Registration Statement as IBC&#146;s prospectus. Each of
IBC and LFC shall use its reasonable best efforts to have the Proxy
Statement-Prospectus cleared by the SEC and the Registration Statement declared
effective by the SEC and to keep the Registration Statement effective as long
as is necessary to consummate the Merger and the transactions contemplated
hereby. IBC and LFC shall, as promptly as practicable after receipt thereof,
provide the other party copies of any written</h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">37</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='37',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">comments and advise the
other party of any oral comments, received from the SEC with respect to the
Proxy Statement-Prospectus or Registration Statement. The parties shall
cooperate and provide the other with a reasonable opportunity to review and
comment on any amendment or supplement to the Proxy Statement-Prospectus and
the Registration Statement prior to filing such with the SEC, and will provide
each other with a copy of all such filings made with the SEC. Notwithstanding
any other provision herein to the contrary, no amendment or supplement
(including by incorporation by reference) to the Proxy Statement-Prospectus or the
Registration Statement shall be made without the approval of both parties,
which approval shall not be unreasonably withheld or delayed; provided that
with respect to documents filed by a party which are incorporated by reference
in the Registration Statement or Proxy Statement-Prospectus, this right of
approval shall apply only with respect to information relating to the other
party or its business, financial condition or results of operations.&#160; LFC will use reasonable best efforts to
cause the Proxy Statement-Prospectus to be mailed to LFC&#146;s stockholders as
promptly as practicable after the Registration Statement is declared effective
under the 1933 Act. Each party will advise the other party, promptly after it
receives notice thereof, of the time when the Registration Statement has become
effective, the issuance of any stop order, the suspension of the qualification
of the IBC Common Stock issuable in connection with the Merger for offering or
sale in any jurisdiction, or any request by the SEC for amendment of the Proxy
Statement-Prospectus or the Registration Statement. If at any time prior to the
Effective Time any information relating to IBC or LFC, or any of their
respective affiliates, officers or directors, should be discovered by IBC or
LFC which should be set forth in an amendment or supplement to any of the
Registration Statement or the Proxy Statement-Prospectus so that any of such
documents would not include any misstatement of a material fact or omit to
state any material fact necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading, the party which
discovers such information shall promptly notify the other party hereto and, to
the extent required by law, rules or regulations, an appropriate amendment or
supplement describing such information shall be promptly filed with the SEC and
disseminated to the stockholders of LFC.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>IBC shall also take any action required to be taken under any
applicable state securities laws in connection with the Merger and each of LFC
and IBC shall furnish all information concerning it and the holders of LFC
Common Stock as may be reasonably requested in connection with any such action.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>IBC shall use its reasonable best efforts to cause the shares of IBC
Common Stock to be issued in the Merger to be approved for listing on the
NASDAQ Stock Market, Inc. National Market System, subject to official notice of
issuance, prior to the Closing Date.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.2</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Access to Information and Confidentiality</font></u></b><b><font style="font-weight:bold;">.</font></b></h2>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>Upon reasonable notice, LFC and IBC shall each (and shall each cause
its Subsidiaries to) use its commercially reasonable efforts to afford to the
officers, employees, accountants, counsel, financial advisors and other
representatives of the other party reasonable access during normal business
hours, during the period prior to the Effective Time, to all its properties,
books, contracts, commitments, records, documents, employees, vendors,
suppliers and service providers, and all other information with respect to their
business affairs, financial condition, assets and liabilities, and, during such
period, LFC and IBC shall each (and shall each</h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">38</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='38',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">cause its Subsidiaries to)
furnish promptly to the other party (a)&nbsp;a copy of each report, schedule,
registration statement and other document filed, published, announced or
received by it during such period pursuant to the requirements of Federal or
state securities laws, as applicable (other than documents which such party is not
permitted to disclose under applicable law), and (b)&nbsp;consistent with its
legal obligations, all other information concerning its business, properties
and personnel as the other party may reasonably request.&#160; LFC and IBC shall each permit the other party,
its officers, employees, accountants, counsel, financial advisors and other
representatives to make copies of such books, records and other documents and
to discuss its business affairs, condition (financial and otherwise),
operations, assets and liabilities with such third Persons, including, without
limitation, its directors, officers, employees, accountants, counsel,
creditors, vendors, suppliers and service providers, as the other party
considers necessary or appropriate for any purpose, including, without
limitation, familiarizing itself with its businesses and operations, obtaining
any necessary orders, consents or approvals of the transactions contemplated by
this Agreement, conducting an evaluation of its assets and liabilities and
facilitating the integration of the business and operations of LFC and its
Subsidiaries after the Effective Time.&#160;
LFC and IBC will each cause its outside accountants to make available to
the other party, its officers, employees, accountants, counsel, financial
advisor and other representatives, such personnel, work papers and other
documentation of such firm relating to its work papers and its audits of the
books and records of such party as may be requested by the other party in
connection with its review of the foregoing matters.&#160; Without limiting the generality of the foregoing, during the
period of time beginning on the date of this Agreement and continuing to the
Effective Time, LFC shall promptly provide (and in any case within one week
after the relevant meeting) complete and accurate minutes of all meetings of
the Board of Directors (or any committee of the Board of Directors) of LFC
and/or any LFC Subsidiary.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>IBC and LFC shall each, and shall each cause its affiliates (as defined
in Rule 12b-2 of the 1934 Act) and its and their employees, agents,
accountants, legal counsel and other representatives and advisers to, hold in
strict confidence all, and not divulge or disclose any information of any kind
concerning the other party and its business; <u>provided</u>, <u>however</u>,
that the foregoing obligation of confidence shall not apply to (i) information
that is or becomes generally available to the public other than as a result of
a disclosure by such party, any of its affiliates or any of its employees,
agents, accountants, legal counsel or other representatives or advisers,
(ii)&nbsp;information that is or becomes available to such party, any of its
affiliates or any of its employees, agents, accountants, legal counsel or other
representatives or advisers on a nonconfidential basis, and (iii) information
that is required to be disclosed by such party, any of its affiliates or any of
its employees, agents, accountants, legal counsel or other representatives or
advisers as a result of any applicable law, rule or regulation of any Governmental
Entity; and <u>provided</u>  <u>further</u>, <u>however</u>, that each party
shall promptly notify the other party of any disclosure by it pursuant to
clause (iii) of this <u>Section 6.2(b)</u>. Promptly after any termination of
this Agreement, each party and its representatives shall return to the other
party or destroy all copies of documentation with respect to the other party
that were supplied by or on behalf of such party pursuant to this Agreement,
without retaining any copy thereof, and destroy any notes or analyses such
party and/or its representatives may have prepared containing information
derived from such materials</h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">39</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='39',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.3</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Commercially Reasonable Efforts</font></u></b><b><font style="font-weight:bold;">.</font></b></h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>Subject to the terms and conditions of this Agreements each party will
use all commercially reasonable efforts to take, or cause to be taken, all
actions and to do, or cause to be done, all things necessary, proper or
advisable under applicable laws and regulations to consummate the Merger and
the other transactions contemplated by this Agreement as soon as practicable
after the date hereof, including, without limitation, obtaining the LFC
Required Consents and the IBC Required Consents in a timely manner.&#160; In
furtherance and not in limitation of the foregoing, each party hereto agrees to
make any appropriate filings pursuant to the BHC Act with respect to the
transactions contemplated hereby as promptly as practicable after the date
hereof and to supply as promptly as practicable any additional information and
documentary material that may be requested pursuant to the BHC Act and to take
all other actions reasonably necessary to cause the approval of the
transactions contemplated hereby under the BHC Act and the expiration or
termination of the applicable waiting periods under the BHC Act as soon as
practicable.&#160; Nothing in this <u>Section&nbsp;6.3(a)</u>
shall require any of IBC and its Subsidiaries to sell or otherwise dispose of,
or permit the sale or other disposition of, any assets of IBC, LFC or their
respective Subsidiaries, whether as a condition to obtaining any approval from
a Governmental Entity or any other Person or for any other reason.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>Each of IBC and LFC shall, in connection with the efforts referenced in
<u>Section&nbsp;6.3(a)</u> to obtain all requisite approvals and authorizations
for the transactions contemplated by this Merger Agreement (including, without
limitation, the Merger and the Subsidiary Mergers) under the BHC Act or any
other applicable law or regulation, use all commercially reasonable efforts to (i)&nbsp;make
all appropriate filings and submissions with any Governmental Entity that may
be necessary, proper or advisable under applicable laws or regulations in
respect of any of the transactions contemplated by this Agreement,
(ii)&nbsp;cooperate in all respects with each other in connection with any such
filing or submission and in connection with any investigation or other inquiry,
including any proceeding initiated by a private party, (iii)&nbsp;promptly
inform the other party of any communication received by such party from, or
given by such party to the Federal Reserve Board or any other Governmental
Entity and of any material communication received or given in connection with
any proceeding by a private party, in each case regarding any of the
transactions contemplated hereby and (iv)&nbsp;permit the other party to review
any communication given by it to, and consult with each other in advance of any
meeting or conference with, the Federal Reserve Board or any such other
Governmental Entity or, in connection with any proceeding by a private party,
with any other Person, and to the extent permitted by the Federal Reserve Board
or such other applicable Governmental Entity or other Person, give the other
party the opportunity to attend and participate in such meetings and
conferences.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>In furtherance and not in limitation of the covenants of the parties
contained in <u>Sections&nbsp;6.3(a)</u> and <u>6.3(b)</u>, if any
administrative or judicial action or proceeding, including any proceeding by a
private party, is instituted (or threatened to be instituted) challenging any
transaction contemplated by this Agreement as violative of any applicable law
or regulation, each of IBC and LFC shall cooperate in all respects with each
other and use all commercially reasonable efforts to contest and resist any
such action or proceeding and to have vacated, lifted, reversed or overturned
any decree, judgment, injunction or other order, whether temporary, preliminary
or permanent that is in effect and that prohibits, prevents or restricts
consummation</h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">40</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='40',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of the transactions
contemplated by this Agreement.&#160;
Notwithstanding the foregoing or any other provision of this Agreement,
nothing in this <u>Section&nbsp;6.3</u> shall limit a party&#146;s right to
terminate this Agreement pursuant to <u>Section&nbsp;8.1</u> so long as such
party has up to then complied in all respects with its obligations under this <u>Section&nbsp;6.3</u>.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>If any objections are asserted with respect to the transactions
contemplated hereby under any applicable law or regulation or if any suit is
instituted by any Governmental Entity or any private party challenging any of
the transactions contemplated hereby as violative of any applicable law or
regulation, each of IBC and LFC shall use all commercially reasonable efforts
to resolve any such objections or challenge as such Governmental Entity or
private party may have to such transactions under such law or regulation so as
to permit consummation of the transactions contemplated by this Agreement.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.4</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Acquisition Proposals</font></u></b><b><font style="font-weight:bold;">. </font></b>&#160;LFC
shall not directly or indirectly, and it shall use all commercially reasonable
efforts to cause its officers, directors, employees, representatives, agents or
affiliates, including any investment bankers, attorneys or accountants retained
by LFC or any of its Subsidiaries or affiliates, not to, (i)&nbsp;solicit,
initiate, encourage or otherwise facilitate (including by way of furnishing
information) any inquiries or proposals that constitute, or could reasonably be
expected to lead to, a proposal or offer for a merger, recapitalization,
consolidation, business combination, sale of a substantial portion of the
assets of LFC and its Subsidiaries, taken as a whole, sale of 15% or more of
the shares of capital stock (including by way of a tender offer, share exchange
or exchange offer) or similar or comparable transactions involving LFC or any
of its Subsidiaries, other than the transactions contemplated by this Agreement
(any such proposal or offer (other than a proposal or offer made by IBC or an
affiliate thereof) being herein referred to as an &#147;<u>Acquisition Proposal</u>&#148;),
or (ii)&nbsp;engage in negotiations or discussions concerning, or provide any
non-public information to any Person relating to, any Acquisition
Proposal.&#160; Notwithstanding any other
provision of this Agreement, the Board of Directors of LFC may, at any time
prior to approval of this Agreement by the stockholders of LFC, furnish
information pursuant to a confidentiality agreement to, or engage in
discussions or negotiations with, any Person in response to an unsolicited bona
fide written Acquisition Proposal of such Person if, (a) LFC has not violated
any of the restrictions set forth in this Section 6.4, (b) the Board of
Directors of LFC or any committee thereof concludes in good faith after consultation
with its outside legal counsel, that such action is reasonably necessary in
order for the Board of Directors of LFC to comply with its fiduciary obligation
to the stockholders of LFC under applicable law and (c) only to the extent
that, the Board of Directors of LFC determines in good faith by a majority
vote, after consultation with its financial advisors, that such Acquisition
Proposal constitutes a Superior Proposal.&#160;
From and after the execution of this Agreement, LFC shall immediately
advise IBC in writing of the receipt, directly or indirectly, of any inquiries,
discussions, negotiations or proposals relating to an Acquisition Proposal
(including the specific terms thereof and the identity of the other party or
parties involved) and furnish to IBC within 24 hours of such receipt an
accurate description of all material terms (including any changes or
adjustments to such terms as a result of negotiations or otherwise) of any such
written proposal in addition to any information provided to any third party
relating thereto.&#160; Upon execution of
this Agreement, LFC and the LFC Subsidiaries shall immediately cease any and
all existing activities, discussions or negotiations with any parties conducted
heretofore with respect to any Acquisition Proposal.&#160; Notwithstanding any other provision of this Agreement, in
response to an unsolicited Acquisition Proposal, LFC&#146;s Board of</h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">41</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='41',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Directors shall be
permitted, at any time prior to the approval of this Agreement by the
stockholders of LFC, (i)&nbsp;to withdraw, modify or change, or propose to
withdraw, modify or change, the approval or recommendation by the Board of
Directors of this Agreement, the Merger or the other transactions contemplated
by this Agreement or (ii)&nbsp;to approve or recommend, or propose to approve
or recommend, any Acquisition Proposal, but only if, in each case referred to
in clauses&nbsp;(i) and (ii), the Board of Directors of LFC concludes in good
faith that (a) such Acquisition Proposal would, if consummated, constitute a
Superior Proposal and such proposal has not been withdrawn and (b) in light of
such Superior Proposal, the failure to withdraw, withhold, amend, modify or
change such recommendation would constitute a breach of the fiduciary duties of
the Board of Directors of LFC to the stockholders of LFC under applicable
law.&#160; LFC shall immediately advise IBC
in writing, if the Board of Directors shall make any determination as to any
Acquisition Proposal as contemplated by the preceding sentence.&#160; Nothing contained in this <u>Section&nbsp;6.4</u>
shall prohibit LFC or its Board of Directors (i)&nbsp;from taking and
disclosing to its stockholders a position contemplated by Rule&nbsp;14d-9 and
Rule 14e-2(a) promulgated under the 1934 Act or from making any legally
required disclosure to the stockholders of LFC with regard to an Acquisition
Proposal or (ii)&nbsp;prior to the approval of this Agreement by the
stockholders of LFC, from taking any action as contemplated by <u>Section&nbsp;8.1(f)</u>.</font></h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.5</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Treatment of LFC Stock Options; Other Stock Plans; Employee
Benefits Matters</font></u></b><b><font style="font-weight:bold;">.</font></b></h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Stock Options</u>.&#160; The treatment of the LFC Stock Options in
the Merger shall be as follows:</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>As to all LFC Stock Options represented by
agreements not expressly requiring the Surviving Corporation, IBC or any of the
IBC Subsidiaries to assume such LFC Stock Options or to substitute equivalent
options (&#147;<u>Terminating Options</u>&#148;), such Terminating Options shall
terminate and be canceled immediately prior to the Effective Time (subject to
the actual occurrence of the Effective Time), and the holder thereof shall have
no further rights thereunder except as expressly provided herein.&#160; Notwithstanding such termination of the
Terminating Options, promptly after the Effective Time, the Surviving
Corporation shall pay to each holder of a Terminating Option an amount in cash
equal to the product of (x) the excess, if any, of the Per Share Cash
Consideration over the exercise price of each such Terminating Option, and (y)
the number of Shares subject to such Terminating Option immediately prior to
the Effective Time (such payment to be net of applicable withholding taxes).</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>As to all LFC Stock Options other than Terminating Options, LFC shall,
effective as of the Effective Time, (A) cause each such outstanding LFC Stock
Option, whether or not exercisable or vested, to become fully exercisable and
vested, (B) cause each such outstanding LFC Stock Option to be canceled and (C)
in consideration of such cancellation, and, except to the extent IBC and the
holder of any such LFC Stock Option otherwise agree, cause LFC to pay the
holders of such LFC Stock Options an amount in respect thereof equal to the
product of (x) the excess, if any, of the Per Share Cash Consideration over the
exercise price of each such LFC Stock Option, and (y) the number of Shares
subject to such LFC Stock Option immediately prior to its cancellation (such
payment to be net of applicable withholding taxes).</h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">42</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='42',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Section 16(b) of the 1934 Act</u>.<font size="1" style="font-size:8.5pt;">&#160;&#160;&#160; </font>The Board of Directors of each of LFC and IBC
shall each grant all approvals and take all other actions required pursuant to
Rules 16b-3(d)&nbsp;and 16(b)-3(e)&nbsp;under the 1934 Act to cause the
disposition in the Merger of the Shares and the LFC Stock Options and the
acquisition in the Merger of shares of IBC Common Stock or options to purchase
the common stock of the Surviving Corporation awards pertaining to and applying
to the common stock of the Surviving Corporation to be exempt from the
provisions of Section&nbsp;16(b)&nbsp;of the 1934 Act.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Employee Issues</u>.&#160; Between the date hereof and the Closing, IBC shall be afforded the reasonable opportunity
to interview and meet with the employees of LFC and the LFC Subsidiaries and to
provide training to, and such information as is reasonably necessary with
respect to terms of continued employment for, such employees of LFC and the LFC
Subsidiaries who will remain or are expected to remain employees immediately
after the Effective Time, which terms of employment may be amended thereafter by
IBC in its sole discretion.&#160; LFC
shall terminate the 401(k) Plan maintained by LFC effective as of the day prior
to the Effective Time.&#160; All of the other
employee benefit plans and programs maintained by LFC and any of its
Subsidiaries shall be terminated effective as of the Effective Time.&#160; Prior to the Effective Time, LFC shall amend
the ESOP to provide that distributions to participants from such plan may be
made in lump sum payments in the form of cash and/or employer stock as defined
in such plan.&#160; IBC presently intends
that, except to the extent that may be required by law, after the Merger,
neither IBC or its Subsidiaries, LFC, the LFC Subsidiaries nor the Surviving
Corporation will make additional contributions to the employee benefit plans or
other programs that were sponsored by LFC or any of the LFC Subsidiaries at any
time prior to the Merger.&#160; At and
following the Effective Time, IBC shall take all actions necessary to complete
the dissolution and winding up of the employee benefit plans maintained by LFC
and the LFC Subsidiaries which are terminated at or before the Effective Time;
provided, however, that with respect to terminated deferred compensation plans,
IBC shall distribute accrued vested benefits according to the terms of such
plans; provided further; that with respect to the Section 125 Plan maintained
by LFC or the LFC Subsidiaries, IBC agrees to maintain such plan from the
Effective Time through December 31, 2004, for the benefit of the employees of
LFC and the LFC Subsidiaries who are employed by IBC or any of its Subsidiaries
after the Effective Time.&#160; IBC agrees
that the employees of LFC and the LFC Subsidiaries who are retained as
employees of IBC will be entitled effective as of the Effective Time to
participate as newly hired employees in the employee benefit plans and programs
maintained for employees of IBC and its affiliates, in accordance with the
respective terms of such plans and programs; provided, however, that within
thirty days following the Effective Time, such employees will be entitled to
participate in the profit sharing plan sponsored by IBC and shall receive
credit for service with LFC or LFC Subsidiaries for vesting and eligibility
purposes with respect to the profit sharing plan sponsored by IBC; provided
further, however, that with respect to the welfare benefit plans of IBC such
employees shall receive credit for service with LFC or LFC Subsidiaries solely
for purposes of eligibility, and IBC shall take all actions necessary or
appropriate (including amending plans, if necessary) to facilitate such
participation; provided further that any preexisting condition exclusion or
waiting period applicable to any health care plan sponsored by IBC shall be
waived with respect to any LFC or LFC Subsidiary employee.&#160; IBC agrees that the employees and former
employees of LFC and the LFC Subsidiaries who are entitled to elect, or who
have already elected, continuation of health insurance coverage pursuant to
Code Section 4980B shall be entitled to elect continuation of health insurance
coverage pursuant to Code Section 4980B</h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">43</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='43',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">under the IBC health
plan.&#160; For purposes of determining each
LFC or LFC Subsidiary&#146;s employee&#146;s benefit for the year in which the Merger
occurs under IBC&#146;s vacation or sick leave program, any vacation or sick leave
taken by a LFC or LFC Subsidiary employee preceding the Effective Time for the
year in which the Merger occurs will be deducted from the total IBC vacation or
sick leave benefits available to such employee for such year.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Employment Agreements and
Severance Policy</u>.&#160; At and following
the Effective Time, IBC and the IBC Subsidiaries shall honor, and IBC and the
IBC Subsidiaries shall continue to be obligated to perform, in accordance with
their terms, all contractual obligations under the employment agreements and/or
severance agreements set forth in Section 6.5(e)(i) of the LFC Disclosure
Schedules.&#160; An employee of LFC or an LFC
Subsidiary (other than an employee who is a party to an employment agreement or
a severance agreement) whose employment is involuntarily terminated within six
months following the Effective Time, shall be entitled to receive severance
payments which shall be no less favorable that LFC&#146;s existing
severance/separation policy which is set forth as Section 6.5(e)(ii) of the LFC
Disclosure Schedule.</h3>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.6</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Fees and Expenses</font></u></b><b><font style="font-weight:bold;">.</font></b>&#160;
Whether or not the Merger is consummated, all Expenses incurred in
connection with this Agreement and the transactions contemplated hereby shall
be paid by the party incurring such Expenses, except (a)&nbsp;if the Merger is
consummated, the Surviving Corporation shall pay, or cause to be paid, any and
all property or transfer taxes imposed on LFC or its Subsidiaries resulting
from the Merger, (b)&nbsp;as provided in <u>Section&nbsp;8.2</u> and (c) the
expenses of printing the Proxy Statement-Prospectus shall be shared equally
between Local and IBC.&#160; As used in this
Agreement, &#147;<u>Expenses</u>&#148; includes all out-of-pocket expenses (including all
fees and expenses of counsel, accountants, investment bankers, experts and
consultants to a party hereto and its affiliates) incurred by a party or on its
behalf in connection with or related to the authorization, preparation,
negotiation, execution and performance of this Agreement and the transactions
contemplated hereby, including the preparation, printing, filing and mailing of
the Proxy Statement and the solicitation of stockholder approvals and all other
matters related to the transactions contemplated hereby.</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.7</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Directors&#146; and Officers&#146; Indemnification and Insurance</font></u></b><b><font style="font-weight:bold;">.</font></b></h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>After the Effective Time IBC and the Surviving Corporation shall,
jointly and severally, indemnify and hold harmless each present (as of the
Effective Time) or former officer, director or employee of LFC and the LFC
Subsidiaries (the &#147;<u>Indemnified Parties</u>&#148;), against all claims, losses,
liabilities, damages, judgments, fines and reasonable fees, costs and expenses
(including attorneys&#146; fees and expenses) incurred in connection with any claim,
action, proceeding or investigation, whether civil, criminal, administrative or
investigative, arising out of or pertaining to (i)&nbsp;the fact that the
Indemnified Party is or was an officer, director or employee of LFC or any of
the LFC Subsidiaries or (ii)&nbsp;matters existing or occurring at or prior to
the Effective Time (including this Agreement and the transactions and actions
contemplated hereby), whether asserted or claimed prior to, at or after the
Effective Time, solely to the same extent required under any indemnification
provisions included in LFC&#146;s or LFC Subsidiary&#146;s, as the case may be,
constituent or organizational documents as in effect on the date of this
Agreement; <u>provided</u> that no Indemnified Party may settle any such claim
without the prior approval of IBC (which approval shall not be unreasonably
withheld or delayed).</h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">44</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='44',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>The Surviving Corporation shall (i) cause to be maintained in effect in
its articles of incorporation and by-laws for a period of six years after the
Effective Time, provisions regarding elimination of liability of directors and
indemnification of, and advancement of expenses to, officers, directors and
employees that are at least as favorable to the Indemnified Parties as those
contained in the articles of incorporation and by-laws of LFC as in effect on
the date hereof and (ii)&nbsp;for a period of six years after the Effective
Time, shall use its reasonable best efforts to maintain the current policies of
directors&#146; and officers&#146; liability insurance and fiduciary liability insurance
maintained by LFC (<u>provided</u> that the Surviving Corporation may
substitute therefor policies of at least the same coverage and amounts
containing terms and conditions which are, in the aggregate, no less
advantageous to the insured) with respect to claims arising from facts or
events that occurred on or before the Effective Time; <u>provided</u>, <u>however</u>,
that in no event shall the Surviving Corporation be required to expend in any
one year an amount in excess of 150% of the annual premiums currently paid by
LFC for such insurance (which premiums LFC represents to be $185,000 per year
in the aggregate); and, <u>provided</u>, <u>further</u>, that if the Surviving
Corporation is unable to obtain the insurance required by this Section 6.7 or
the annual premiums of such insurance coverage exceed such amount, the
Surviving Corporation shall be obligated to obtain a policy with the greatest
coverage available for a cost not exceeding such amount.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>Notwithstanding anything herein to the contrary, if any claim, action,
proceeding or investigation (whether arising before, at or after the Effective
Time) is made against any Indemnified Party on or prior to the sixth
anniversary of the Effective Time, the provisions of this <u>Section&nbsp;6.7</u>
shall continue in effect until the final disposition of such claim, action,
proceeding or investigation.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>In the event that the Surviving Corporation or any of its successors or
assigns (i)&nbsp;consolidates with or merges into any other Person and shall
not be the continuing or surviving corporation or entity of such consolidation
or merger or (ii)&nbsp;transfers or conveys all or substantially all of its
properties and assets to any Person, then, and in each such case, proper
provision shall be made so that the successors or assigns of the Surviving
Corporation shall succeed to the obligations set forth in <u>Section&nbsp;6.5</u>
and this <u>Section&nbsp;6.7</u>.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.8</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Public Announcements</font></u></b><b><font style="font-weight:bold;">.</font></b>&#160; LFC
and IBC shall use all commercially reasonable efforts to develop a joint
communications plan and each party shall use all commercially reasonable
efforts (i)&nbsp;to ensure that all press releases and other public statements
with respect to the transactions contemplated hereby shall be consistent with
such joint communications plan, and (ii)&nbsp;unless otherwise required by applicable
law or by obligations pursuant to any listing agreement with or rules of any
securities exchange, to consult with each other before issuing any press
release or otherwise making any public statement with respect to this Agreement
or the transactions contemplated hereby.</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.9</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Affiliate Letters</font></u></b><b><font style="font-weight:bold;">.</font></b>&#160; LFC
shall use its reasonable best efforts to cause each director, executive officer
and other Person, if any, who is an &#147;affiliate&#148; of LFC under Rule 145 of the
1933 Act to deliver to IBC as soon as practicable and prior to the mailing of
the Proxy Statement-Prospectus executed letter agreements, each in the form
designated by IBC, providing that such Person will comply with Rule 145.</h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">45</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='45',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE
VII</font></b></p>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;"><br>
CONDITIONS PRECEDENT</font></u></b></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.1</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Conditions to Each Party&#146;s Obligation to Effect the Merger</font></u></b><b><font style="font-weight:bold;">.</font></b>&#160; The obligations of LFC, IBC and Acquisition
Sub to effect the Merger are subject to the satisfaction or waiver on or prior
to the Closing of the following conditions:</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Stockholder Approval</u>.&#160; LFC shall have obtained the Required LFC
Vote for the approval of this Agreement by the stockholders of LFC.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>No Injunctions or Restraints; Illegality</u>.&#160; No
federal, state, local or foreign, if any, law, statute, regulation, code,
ordinance or decree shall have been adopted or promulgated, and no temporary
restraining order, preliminary or permanent injunction or other order issued by
a court or other Governmental Entity of competent jurisdiction shall be in
effect, having the effect of making the Merger illegal or otherwise prohibiting
consummation of the Merger; <u>provided</u>, <u>however</u>, that the
provisions of this <u>Section&nbsp;7.1(b)</u> shall not be available to any
party whose failure to fulfill its obligations pursuant to <u>Section&nbsp;6.3</u>
shall have been the cause of, or shall have resulted in, such order or
injunction.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Governmental Approvals</u>.&#160; All approvals required for the Merger and
the Subsidiary Mergers from Governmental Entities shall have been obtained (and
any applicable waiting periods with respect thereto shall have expired) other
than those the failure of which to be obtained would not reasonably be expected
to result in a Material Adverse Effect on IBC and its Subsidiaries (including
the Surviving Corporation and its Subsidiaries), taken together, and such
approvals shall not have imposed any condition or requirement which in the
reasonable judgment of the party or parties affected by such condition or
requirement would adversely impact in a material respect the intended economic
benefits to such party of the transactions contemplated by this Agreement or
otherwise would in the reasonable judgment of such party be so burdensome as to
render reasonably inadvisable the consummation of the Merger.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Registration Statement; Blue Sky Laws</u>. The Registration Statement shall have been declared effective by the
SEC and shall be effective and not subject to any stop order, and no
proceedings shall be pending or threatened by the SEC to suspend the
effectiveness of the Registration Statement, and IBC shall have received all
required approvals by state securities or &#147;blue sky&#148; authorities with respect
to the transactions contemplated by this Agreement.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Listing</u>.&#160; The shares of IBC Common Stock to be issued
in the Merger shall have been approved for listing on Nasdaq, subject to
official notice of issuance.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.2</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Additional Conditions to Obligations of IBC and Acquisition
Sub</font></u></b><b><font style="font-weight:bold;">.</font></b>&#160; The
obligations of IBC and Acquisition Sub to effect the Merger are subject to the
satisfaction of, or waiver by IBC, on or prior to the Closing of the following
additional conditions:</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Representations and Warranties</u>.&#160; Each of the representations
and warranties of LFC set forth in this Agreement shall have been true and
correct in all material respects (except for representations and warranties
qualified by materiality or &#147;Material Adverse Effect&#148;, which shall be true and
correct in all respects) both on the date of this Agreement and at and as</h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">46</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='46',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of the Closing Date, with
the same force and effect as though made on and as of the Closing Date (except
to the extent that any such representation and warranty speaks as of another
date, in which case such representation and warranty shall be true and correct
as of such other date), and IBC shall have received a certificate of the chief
executive officer and the chief financial officer of LFC to such effect.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Performance of Obligations of LFC</u>.&#160; LFC shall have performed or
complied in all material respects with all agreements and covenants required to
be performed by it under this Agreement at or prior to the Closing, and IBC
shall have received a certificate of the chief executive officer and the chief
financial officer of LFC to such effect.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Officers Certificate</u>.&#160; IBC shall have received such certificates of
LFC, dated the Closing Date, signed by an executive officer of LFC to evidence
satisfaction of the conditions set forth in this Article VII (insofar as each
relates to LFC) and as may be reasonably requested by IBC.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>No Material Adverse Effect</u>.&#160; There shall not have occurred
after the date hereof any Material Adverse Effect on LFC or any event that is
likely to result in or cause any Material Adverse Effect on LFC.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Resignations</u>.&#160; Each of the individuals named in Section 7.2(e)
of the LFC Disclosure Schedule shall have resigned from all officer positions
(but not as employees) held by such individual with LFC and any of the LFC
Subsidiaries, effective as of a date certain that is on or prior to the date
that is fourteen (14) days prior to the Closing Date.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.3</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Additional Conditions to Obligations of LFC</font></u></b><b><font style="font-weight:bold;">.</font></b>&#160; The obligations of LFC to effect the Merger
are subject to the satisfaction of, or waiver by LFC, on or prior to the
Closing of the following additional conditions:</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Representations and Warranties</u>.&#160; Each of the representations
and warranties of IBC and Acquisition Sub set forth in this Agreement shall
have been true and correct in all material respects (except for representations
and warranties qualified by materiality or &#147;Material Adverse Effect,&#148; which
shall be true and correct in all respects) both on the date of this Agreement
and at and as of the Closing Date, with the same force and effect as though
made on and as of the Closing Date (except to the extent that any such
representation and warranty speaks as of another date, in which case such
representation and warranty shall be true and correct as of such other date),
and LFC shall have received a certificate of the chief executive officer and
the chief financial officer of IBC to such effect.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Performance of Obligations of IBC</u>.&#160; IBC shall have performed or
complied in all material respects with all agreements and covenants required to
be performed by it under this Agreement at or prior to the Closing, and LFC shall
have received a certificate of the chief executive officer and the chief
financial officer of IBC to such effect.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Officers Certificate</u>.&#160; LFC shall have received such certificates of
IBC, dated the Closing Date, signed by an executive officer of IBC to evidence
satisfaction of the conditions set forth in this Article VII (insofar as each
relates to IBC) and as may be reasonably requested by LFC.</h3>

<h3 align="center" style="font-weight:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="center" style="font-weight:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">47</font></h3>


<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></h3>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='47',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<h3 align="center" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:center;">&nbsp;</h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>No Material Adverse Effect</u>.&#160; There shall not have occurred after the date
hereof any Material Adverse Effect on IBC or any event that is likely to result
in or cause any Material Adverse Effect on IBC.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font><u>Assumption of Indenture
Obligation</u>.&#160; IBC shall have taken
all necessary and required actions to assume LFC&#146;s obligations pursuant to
Section 8.1 of the Indenture dated September 8, 1997, between LFC and the Bank
of New York, as trustee, with respect to LFC&#146;s 11% Senior Notes due 2004.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE
VIII</font></b></p>

<h1 style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;text-transform:none;"><br>
TERMINATION AND AMENDMENT</font></u></b></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">8.1</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Termination</font></u></b><b><font style="font-weight:bold;">.</font></b>&#160; This
Agreement may be terminated at any time prior to the Effective Time, by action
taken or authorized by the Board of Directors of the terminating party or
parties, and except as provided below, whether before or after approval of the
matters presented in connection with the Merger by the stockholders of LFC or
Acquisition Sub:</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>By the mutual written consent of IBC and LFC, by action of their
respective Boards of Directors;</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>By either LFC or IBC if the Effective Time shall not have occurred on
or before October 31, 2004 (the &#147;<u>Termination Date</u>&#148;); <u>provided</u>, <u>however</u>,
that the right to terminate this Agreement under this <u>Section&nbsp;8.1(b)</u>
shall not be available to any party whose failure to fulfill any obligation
under this Agreement (including without limitation <u>Section&nbsp;6.3</u>) has
to any extent been the cause of, or resulted in, the failure of the Effective
Time to occur on or before the Termination Date;</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>By either LFC or IBC if any Governmental Entity (i)&nbsp;shall have
issued an order, decree or ruling or taken any other action (which the parties
shall have used all commercially reasonable efforts to resist, resolve or lift,
as applicable, in accordance with <u>Section&nbsp;6.3</u>) permanently
restraining, enjoining or otherwise prohibiting the Merger, and such order, decree,
ruling or other action shall have become final and nonappealable or
(ii)&nbsp;shall have failed to issue an order, decree or ruling or to take any
other action (which order, decree, ruling or other action the parties shall
have used all commercially reasonable efforts to obtain, in accordance with <u>Section&nbsp;6.3</u>),
that is necessary to fulfill the conditions set forth in
subsections&nbsp;7.1(c) and (d), as applicable, and such failure to issue such
order, decree, ruling or take such other action shall have become final and
nonappealable; <u>provided</u>, <u>however</u>, that the right to terminate
this Agreement under this <u>Section&nbsp;8.1(c)</u> shall not be available to
any party whose failure to comply with <u>Section&nbsp;6.3</u> has to any
extent been the cause of such action or inaction;</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>By either LFC or IBC if the approval by the stockholders of LFC
required for the consummation of the Merger shall not have been obtained by
reason of the failure to obtain the Required LFC Vote upon the taking of such
vote at a duly held meeting of stockholders of LFC, or at any adjournment
thereof;</h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">48</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='48',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>By IBC if the Board of Directors of LFC, or any committee thereof,
prior to approval of this Agreement by the stockholders of LFC, (i)&nbsp;shall
withhold, withdraw, change, modify or amend in any manner adverse to the LFC
Board Approval, (ii)&nbsp;shall approve or recommend a Superior Proposal
pursuant to <u>Section&nbsp;6.4,</u> (iii) shall resolve to take any of the
actions specified in clauses&nbsp;(i) or&nbsp;(ii) above, (iv) LFC shall fail
to include in the Proxy Statement-Prospectus the recommendation of the Board of
Directors of LFC in favor of the approval this Agreement and the Merger and the
transactions contemplated hereby, or shall have taken any action inconsistent
with such recommendation, or (v) a tender or exchange offer relating to 15% or
more of the capital stock of LFC shall have been commenced by a Person
unaffiliated with IBC, and LFC shall not have sent to its stockholders pursuant
to Rule 14e-2 promulgated under the 1933 Act, within ten (10) Business Days
after such tender or exchange offer is first published, sent or given, a
statement disclosing that LFC recommends rejection of such tender or exchange
offer;</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160; </font>By LFC at any time prior to approval of this Agreement by the Required
LFC Vote of stockholders of LFC at a duly held meeting of the stockholders of
LFC if the Board of Directors of LFC shall approve a Superior Proposal; <u>provided</u>,
<u>however</u>, that prior to any such termination, LFC shall, and shall cause
its financial and legal advisors to, provide IBC with a reasonable opportunity
(not to exceed a period of three Business Days unless otherwise agreed in
writing) to make adjustments in the terms and conditions of this Agreement
sufficient to cause the Board of Directors of LFC to determine that such
Superior Proposal no longer constitutes a Superior Proposal; or</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>By IBC, if LFC shall have breached any representation, warranty,
covenant or agreement contained in this Agreement, or if any representation or
warranty of LFC shall have become untrue, in either case such that the
conditions set forth in Section 7.2(a) or (b) hereof would not be satisfied as
of the time of such breach or as of the time such representation or warranty
shall have become untrue.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>By LFC, if IBC shall have
breached any representation, warranty, covenant or agreement contained in this
Agreement, or if any representation or warranty of IBC shall have become
untrue, in either case such that the conditions set forth in Section 7.3(a) or (b)
hereof would not be satisfied as of the time of such breach or as of the time
such representation or warranty shall have become untrue.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">8.2</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Effect of Termination</font></u></b><b><font style="font-weight:bold;">.</font></b></h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>In the event of termination of this Agreement by either LFC or IBC as
provided in <u>Section&nbsp;8.1</u>, this Agreement shall forthwith become void
and there shall be no liability or obligation on the part of IBC or LFC or
their respective officers or directors except with respect to the second
sentence of <u>Section&nbsp;6.2</u>, <u>Section 6.6</u>, this <u>Section&nbsp;8.2</u>
and Article&nbsp;IX.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>IBC and LFC agree that, (i) if IBC shall terminate this Agreement
pursuant to <u>Section 8.1(e),</u> (ii) if either IBC or LFC shall terminate
this Agreement pursuant to Section 8.1(d) or pursuant to Section 8.1(b) without
the meeting of LFC&#146;s stockholders to consider the transactions contemplated by
this Agreement having occurred, and at the time of such termination an
Acquisition Proposal shall exist and within 12 months of such termination LFC</h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">49</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='49',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">enters into a definitive
agreement with respect to, or consummates, any Acquisition Proposal (for
purposes of this clause (ii) &#147;Acquisition Proposal&#148; shall have the meaning
assigned to such term in <u>Section&nbsp;6.4</u> except that (x)&nbsp;the
references to &#147;15%&#148; in the definition of &#147;Acquisition Proposal&#148; shall each be
deemed to be a reference to &#147;50%&#148; and (y)&nbsp;&#148;Acquisition Proposal&#148; shall
only be deemed to refer to a transaction involving LFC, or with respect to
assets (including the shares of any Subsidiary of LFC) of LFC and its
Subsidiaries, taken as a whole, and not any of its Subsidiaries alone, or (iii)
if LFC shall terminate this Agreement pursuant to <u>Section&nbsp;8.1(f)</u>,
then, in any such case, LFC shall pay to IBC cash in the amount of $12,000,000
(the &#147;<u>Termination Fee</u>&#148;). The Termination Fee required to be paid to IBC
pursuant to this <u>Section&nbsp;8.2(b)</u> shall be paid prior to, and shall
be a condition precedent to the effectiveness of the termination of, this
Agreement by LFC pursuant to <u>Section&nbsp;8.1(f)</u>.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>All payments under this <u>Section&nbsp;8.2</u> shall be made by wire
transfer of immediately available funds to an account designated by the party
entitled to receive payment.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">8.3</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Amendment</font></u></b><b><font style="font-weight:bold;">.</font></b>&#160; This
Agreement may be amended by the parties hereto, by action taken or authorized
by their respective Boards of Directors, at any time before or after approval
of the matters presented in connection with the Merger by the stockholders of
LFC and Acquisition Sub, but, after any such approval, no amendment shall be
made which by law or in accordance with the rules of any relevant stock
exchange requires further approval by such stockholders without such further
approval.&#160; This Agreement may not be
amended except by an instrument in writing signed on behalf of each of the
parties hereto.</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">8.4</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Extension; Waiver</font></u></b><b><font style="font-weight:bold;">.</font></b>&#160; At
any time prior to the Effective Time, the parties hereto, by action taken or
authorized by their respective Boards of Directors, may, to the extent legally
allowed, (i)&nbsp;extend the time for the performance of any of the obligations
or other acts of the other parties hereto, (ii)&nbsp;waive any inaccuracies in
the representations and warranties contained herein or in any document
delivered pursuant hereto and (iii)&nbsp;waive compliance with any of the
agreements or conditions contained herein.&#160;
Any agreement on the part of a party hereto to any such extension or
waiver shall be valid only if set forth in a written instrument signed on
behalf of such party.&#160; The failure of
any party to this Agreement to assert any of its rights under this Agreement or
otherwise shall not constitute a waiver of those rights.</h2>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ARTICLE
IX</font></b></p>

<h1 style="font-size:10.0pt;font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;text-decoration:underline;text-transform:uppercase;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;text-decoration:none;text-transform:none;"><br>
</font></b><font style="text-transform:none;">GENERAL
PROVISIONS</font></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.1</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Non-Survival of Representations, Warranties and Agreements</font></u></b><b><font style="font-weight:bold;">.</font></b>&#160; None of the representations, warranties,
covenants and other agreements in this Agreement or in any instrument delivered
pursuant to this Agreement, including any rights arising out of any breach of
such representations, warranties, covenants and other agreements, shall survive
the Effective Time, except for those covenants and agreements contained herein
and therein that by their terms apply or are to be performed in whole or in
part after the Effective Time (including, without limitation, Sections 6.2,
6.5, 6.7 and 8.2) and this Article&nbsp;IX.&#160;
Nothing in this <u>Section&nbsp;9.1</u> shall relieve any party for any
breach of any representation, warranty, covenant or other agreement in this
Agreement occurring prior to termination.</h2>

<h2 align="center" style="font-weight:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="center" style="font-weight:normal;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">50</font></h2>


<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></h2>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='50',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.2</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Notices</font></u></b><b><font style="font-weight:bold;">.</font></b>&#160; All
notices and other communications hereunder shall be in writing and shall be
deemed duly given (a)&nbsp;on the date of delivery if delivered personally, or
by telecopy or telefacsimile, upon confirmation of receipt, (b)&nbsp;on the
first Business Day following the date of dispatch if delivered by a recognized
next-day courier service, or (c)&nbsp;on the tenth Business Day following the
date of mailing if delivered by registered or certified mail, return receipt
requested, postage prepaid.&#160; All notices
hereunder shall be delivered as set forth below, or pursuant to such other instructions
as may be designated in writing by the party to receive such notice:</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<table border="0" cellspacing="0" cellpadding="0" width="45%" style="border-collapse:collapse;margin-left:1.0in;width:45.0%;">
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font></p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">if to IBC or Acquisition
  Sub, to:</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">International Bancshares
  Corporation</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1200 San Bernardo Ave.</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Laredo, Texas&#160; 78040</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax:&#160; (956) 726-6616</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:&#160; Dennis E. Nixon, President</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">with a copy to:</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cox &amp; Smith
  Incorporated</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">112 E. Pecan, Suite 1800</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">San Antonio, Texas 78205</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax:&#160; (210) 226-8395</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:&#160; Cary Plotkin Kavy</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font></p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">if to LFC or the LFC
  Subsidiaries, to</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Local Financial
  Corporation</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3601 N.W. 63RD</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Oklahoma City, Oklahoma
  73116</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax: (405) 841-2289</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:&#160; Edward A. Townsend</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">with a copy to:</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Patton Boggs LLP</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2550 M Street, NW</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Washington, DC 20037</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="87%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:87.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax: (202) 457-6315</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.12%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attn:</font></p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.22%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Norman B. Antin</font></p>
  </td>
 </tr>
 <tr>
  <td width="12%" valign="top" style="padding:0in .7pt 0in .7pt;width:12.66%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="13%" valign="top" style="padding:0in .7pt 0in .7pt;width:13.12%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="74%" valign="top" style="padding:0in .7pt 0in .7pt;width:74.22%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jeffrey D. Haas</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.3</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Interpretation</font></u></b><b><font style="font-weight:bold;">.</font></b>&#160; When
a reference is made in this Agreement to Sections, Exhibits or Schedules, such
reference shall be to a Section of or Exhibit or Schedule to this Agreement
unless otherwise indicated.&#160; The table
of contents, glossary of defined terms and headings contained in this Agreement
are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.&#160;
Whenever the words &#147;include&#148;, &#147;includes&#148;</h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">51</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='51',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or &#147;including&#148; are used in
this Agreement, they shall be deemed to be followed by the words &#147;without
limitation&#148;.</font></h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.4</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Counterparts</font></u></b><b><font style="font-weight:bold;">.</font></b>&#160; This
Agreement may be executed in one or more counterparts, all of which shall be
considered one and the same agreement and shall become effective when one or
more counterparts have been signed by each of the parties and delivered to the
other parties, it being understood that the parties need not sign the same
counterpart.</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.5</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Entire Agreement; Third Party Beneficiaries</font></u></b><b><font style="font-weight:bold;">.</font></b></h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>This Agreement constitutes the entire agreement and supersedes all
prior agreements and understandings, both written and oral, among the parties
with respect to the subject matter hereof.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>This Agreement shall be binding upon and inure solely to the benefit of
each party hereto, and nothing in this Agreement, express or implied, is
intended to or shall confer upon any other Person any right, benefit or remedy
of any nature whatsoever under or by reason of this Agreement, other than <u>Section&nbsp;6.5</u>
and <u>Section&nbsp;6.7</u> (which is intended to be for the benefit of the
Persons covered thereby and may be enforced by such Persons).</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.6</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Governing Law</font></u></b><b><font style="font-weight:bold;">.</font></b>&#160; All
aspects of the relationship between the parties hereto, including, without
limitation, the construction and interpretation of this Agreement and all
claims arising out of the relationship between the parties, shall be governed
and construed in accordance with the laws of the State of Texas, without regard
to the conflicts of laws principles thereof.</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.7</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Severability</font></u></b><b><font style="font-weight:bold;">.</font></b> &#160;If
any term or other provision of this Agreement is invalid, illegal or incapable
of being enforced by any law or public policy, all other terms and provisions
of this Agreement shall nevertheless remain in full force and effect so long as
the economic or legal substance of the transactions contemplated hereby is not
affected in any manner materially adverse to any party.&#160; Upon such determination that any term or
other provision is invalid, illegal or incapable of being enforced, the parties
hereto shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the parties as closely as possible in an acceptable
manner in order that the transactions contemplated hereby are consummated as
originally contemplated to the greatest extent possible.</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.8</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Assignment</font></u></b><b><font style="font-weight:bold;">.</font></b>&#160;
Neither this Agreement nor any of the rights, interests or obligations
hereunder shall be assigned by any of the parties hereto, in whole or in part
(whether by operation of law or otherwise), without the prior written consent
of the other parties, and any attempt to make any such assignment without such
consent shall be null and void.&#160; Subject
to the preceding sentence, this Agreement will be binding upon, inure to the
benefit of and be enforceable by the parties and their respective successors
and assigns.</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.9</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><u><font style="font-weight:bold;">Enforcement</font></u></b><b><font style="font-weight:bold;">.</font></b>&#160; The
parties agree that irreparable damage would occur in the event that any of the
provisions of this Agreement were not performed in accordance with their
specific terms.&#160; It is accordingly
agreed that the parties shall be entitled to specific performance of the terms
hereof, this being in addition to any other remedy to which they are entitled
at law or in equity.</h2>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">52</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='52',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.10</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><u><font style="font-weight:bold;">Definitions</font></u></b><b><font style="font-weight:bold;">.</font></b>&#160; As
used in this Agreement:</h2>

<h2 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h2>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font> &#147;<u>Board of Directors</u>&#148; means the Board of Directors of any
specified Person and any committees thereof.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>&#147;<u>Business Day</u>&#148; means any day on which banks are not required or
authorized to close in the states of Oklahoma and Texas.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>&#147;<u>knowledge</u>&#148; when used with respect to any party means the
knowledge of any senior executive officer of such party.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>&#147;<u>Material Adverse Effect</u>&#148; means, with respect to any entity, any
adverse change, circumstance or effect that is materially adverse to the business,
financial condition or results of operations of such entity and its
Subsidiaries taken as a whole, other than any change, circumstance or effect
relating to (i)&nbsp;the economy or securities markets in general,
(ii)&nbsp;regional economic conditions that have a similar effect on other
participants in such region in the industries which IBC or LFC, as the case may
be, operates, (iii)&nbsp;the industries in which IBC or LFC, as the case may
be, operates and not specifically relating to (or having the effect of specifically
relating to or having a materially disproportionate effect (relative to most
other industry participants) on ) IBC or LFC, as the case may be,
(iv)&nbsp;changes in any tax laws or regulations or applicable accounting
regulations or principles in each case not specifically relating to IBC or LFC,
as the case may be, (v)&nbsp;actions or omissions by either IBC or LFC, or any
of their Subsidiaries, as the case may be, taken with the written permission of
the other party in connection with the transactions contemplated hereby or as
otherwise contemplated by this Agreement or (vi) any modification or changes to
valuation policies and practices, or expenses incurred, in connection with the
Merger or restructuring charges taken in connection with the Merger, in each
case in accordance with GAAP.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>&#147;<u>the other party</u>&#148; means, with respect to LFC, IBC and means,
with respect to IBC, LFC.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160; </font>&#147;<u>Person</u>&#148; means an individual, corporation, limited liability
company, partnership, association, trust, unincorporated organization, other
entity or group (as defined in the 1934 Act).</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>&#147;<u>Subsidiary</u>&#148; when used with respect to any party means any
corporation or other organization, whether incorporated or unincorporated,
(i)&nbsp;of which such party or any other Subsidiary of such party is a general
partner (excluding partnerships, the general partnership interests of which
held by such party or any Subsidiary of such party do not have a majority of
the voting interests in such partnership) or (ii)&nbsp;at least a majority of
the securities or other interests of which having by their terms ordinary
voting power to elect a majority of the Board of Directors or others performing
similar functions with respect to such corporation or other organization is
directly or indirectly owned or controlled by such party or by any one or more
of its Subsidiaries, or by such party and one or more of its Subsidiaries.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:8.5pt;">&#160;&#160; </font>&#147;<u>Superior Proposal</u>&#148; means a bona fide Acquisition Proposal the
terms of which the Board of Directors of LFC concludes in good faith (after consultation
with its financial advisors and legal counsel), taking into account all legal,
financial, regulatory and other aspects</h3>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">53</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='53',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of such proposal, including
any condition to the consummation of such proposal, and the Person making the
proposal, (i)&nbsp;would, if consummated, result in a transaction that is more
favorable to holders of the Shares (in their capacity as stockholders) from a
financial point of view than the transactions contemplated by this Agreement
and (ii)&nbsp;is reasonably capable of being completed (provided that for
purposes of this definition the term Acquisition Proposal shall have the
meaning assigned to such term in <u>Section&nbsp;6.4</u> except that
(x)&nbsp;the references to &#147;15%&#148; in the definition of &#147;Acquisition Proposal&#148;
shall each be deemed to be a reference to &#147;50%&#148; and (y)&nbsp;&#148;Acquisition
Proposal&#148; shall only be deemed to refer to a transaction involving LFC, or with
respect to assets (including the shares of any Subsidiary of LFC) of LFC and
its Subsidiaries, taken as a whole, and not any of its Subsidiaries alone.</font></h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160; </font>&#147;Tax&#148; (and with correlative meaning, &#147;Taxes&#148;) means any U.S. federal,
state, local or foreign income, gross receipts, license, payroll, employment,
excise, severance, stamp, occupation, premium, windfall profits, environmental
(including taxes under Code Section 59A), customs duties, capital stock,
franchise, profits, withholding, social security (or similar), unemployment,
disability, real property, personal property, sales, use, transfer,
registration, value added, alternative or add-on minimum, estimated or other
tax of any kind whatsoever, including any interest, penalty or addition
thereto, whether disputed or not.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h3 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160; </font>&#147;Tax Return&#148; means any return, declaration,
report, claim for refund or information return or statement relating to Taxes,
including any schedule or attachment thereto, and any amendment thereof.</h3>

<h3 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h3>

<h2 align="left" style="font-size:10.0pt;font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.11</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><u><font style="font-weight:bold;">Other Agreements</font></u></b><b><font style="font-weight:bold;">.&#160; </font></b>The parties hereto acknowledge and agree that, except as otherwise
expressly set forth in this Agreement, the rights and obligations of LFC and
IBC under any other agreement between the parties shall not be affected by any
provision of this Agreement.</h2>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[Intentionally Left Blank]</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">54</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='54',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, IBC, LFC
and Acquisition Sub have caused this Agreement to be signed by their respective
officers thereunto duly authorized, all as of the day and year first above
written.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.94%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:auto;">&nbsp;</p>
  </td>
  <td width="47%" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:47.06%;">
  <p style="margin:0in 0in .0001pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">INTERNATIONAL BANCSHARES<br>
  CORPORATION</font></p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.94%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;">&nbsp;</p>
  </td>
  <td width="47%" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:47.06%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.94%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.08%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="33%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:33.3%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ DENNIS E. NIXON</font></p>
  </td>
  <td width="10%" valign="top" style="padding:0in 0in 0in 0in;width:10.7%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.94%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.08%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="37%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:37.24%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dennis E. Nixon</font></p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.94%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.08%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:6.76%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="37%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:37.24%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chairman, Chief Executive
  Officer<br>
  and President</font></p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.94%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.08%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.0%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.94%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.08%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.0%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.94%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;page-break-after:auto;">&nbsp;</p>
  </td>
  <td width="47%" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:47.06%;">
  <p style="margin:0in 0in .0001pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">LFC ACQUISITION CORP.</font></p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.94%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;">&nbsp;</p>
  </td>
  <td width="47%" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:47.06%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.94%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.08%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.0%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.94%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.08%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="33%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:33.3%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ DENNIS E. NIXON</font></p>
  </td>
  <td width="10%" valign="top" style="padding:0in 0in 0in 0in;width:10.7%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.94%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.08%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.66%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="37%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:37.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dennis E. Nixon</font></p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.94%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.08%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.66%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="37%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:37.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President</font></p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.94%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.08%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.0%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.94%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.08%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.0%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.94%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="47%" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:47.06%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">LOCAL FINANCIAL CORPORATION</font></p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.94%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.08%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.0%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.94%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.08%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.0%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.94%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.08%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="33%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:33.26%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ EDWARD A. TOWNSEND</font></p>
  </td>
  <td width="10%" valign="top" style="padding:0in 0in 0in 0in;width:10.72%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.94%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.08%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.66%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="37%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:37.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Edward A. Townsend</font></p>
  </td>
 </tr>
 <tr>
  <td width="52%" valign="top" style="padding:0in 0in 0in 0in;width:52.94%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.08%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-indent:0in;">&nbsp;</p>
  </td>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.66%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="37%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:37.34%;">
  <p style="margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chairman and Chief
  Executive<br>
  Officer</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="382" style="border:none;"></td>
  <td width="22" style="border:none;"></td>
  <td width="48" style="border:none;"></td>
  <td width="1" style="border:none;"></td>
  <td width="191" style="border:none;"></td>
  <td width="77" style="border:none;"></td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">55</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='55',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">APPENDIX&nbsp;A</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Defined Terms in the Agreement</font></u></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="49%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Definition</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p align="center" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:47.84%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Section</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1933
  Act</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.l(c)(i)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1934
  Act</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.l(e)(ii)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Acquisition
  Proposal</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  6.4</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Acquisition
  Sub</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Preamble</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Aggregate Adjustment Amount</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.1(c)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Agreement</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Preamble</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Audited
  Financial Statements</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.l(d)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Bank
  Merger</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.7</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">BHC
  Act</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.l(a)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Board
  of Directors</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  9.11(a)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Business
  Day</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  9.11(b)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cash
  Election</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.2(a)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cash
  Election Shares</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.2(a)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Certificates</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.2(c)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Closing</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  1.3</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Closing
  Date</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  1.3</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Code</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.6</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Common
  Control Entity</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.l(o)(vii)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Contracts</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.1(x)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Converted
  Cash Election Share</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.2(b)(i)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Converted
  Stock Election Share</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.2(b)(ii)</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="49%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Definition</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p align="center" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:47.84%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Section</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Derivative
  Transactions</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.1(dd)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Determination
  Period</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.1(c)(i)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DGCL</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  1.2</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dissenters&#146;
  Shares</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.4</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Effective
  Time</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  1.2</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Election</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.2(a)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Election
  Deadline</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.2(e)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Election
  Form</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.2(c)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Election
  Form Record Date</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.2(c)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Environmental
  Law(s)</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.1(g)(ii)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Environmental
  Permit(s)</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.1(g)(ii)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ERISA</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.1(o)(i)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ESOP</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.1(ee)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exchange
  Agent</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.2(c)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exchange
  Ratio</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.1(c)(i)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Expenses</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  6.6</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">GAAP</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.1(d)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Governmental
  Entity</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.1(h)(iii)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">HIPAA</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.1(o)(v)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Holding
  Company Merger</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.7</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IBC</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Preamble</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IBC
  Audited Financial Statements</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.2(d)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IBC
  Common Stock</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.1(c)(i)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IBC
  Common Stock Value</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.1(c)(i)</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="49%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Definition</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p align="center" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:47.84%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Section</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IBC
  Disclosure Schedule</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.2</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IBC
  Required Consents</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.2(c)(iii)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IBC
  SEC Reports</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.2(e)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IBC
  Stock Options</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.2(b)(iii)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IBC
  Unaudited Financial Statements</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.2(d)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Indemnified
  Parties</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  6.7(a)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">knowledge</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  9.11(c)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Letter
  of Transmittal</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.3(a)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">LFC</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Preamble</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">LFC
  Bank</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.7</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">LFC
  Board Approval</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.1(j)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">LFC
  Disclosure Schedule</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.1</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">LFC
  Required Consents</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.l(h)(iii)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">LFC
  SEC Reports</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.1(i)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">LFC
  Stock Options</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.l(c)(iii)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">LFC
  Stockholders Meeting</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  6.1(a)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">LFC
  Subsidiaries</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.l(a)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Loans</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.l(e)(i)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mailing
  Date</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.2(c)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Material
  Adverse Effect</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  9.11(d)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Materials
  of Environmental Concern</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.1(g)(ii)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Merger</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Recitals</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Merger
  Consideration</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.1(c)(i)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mixed
  Election</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.2(a)</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="49%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Definition</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p align="center" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:47.84%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Section</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Nasdaq</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.1(z)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No-Election
  Shares</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.2(a)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Non-Election</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.2(a)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Other
  Programs</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.l(o)(iii)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pension
  Benefit Plans</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.l(o)(ii)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Per
  Share Cash Consideration</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.1(c)(i)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Per
  Share Stock Consideration</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.1(c)(i)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Person</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  9.11(f)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Proxy
  Statement-Prospectus</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  6.1(b)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Real
  Property</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.l(g)(ii)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Registration
  Statement</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  6.1(b)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Regulatory
  Authorities</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.l(s)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Required
  LFC Vote</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.1(k)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Representative</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.2(d)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SEC</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.1(f)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Shares</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.1(b)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Stock
  Election</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.2(a)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Stock
  Election Shares</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.2(a)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Stock
  Number</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.2(a)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Stock-Selected
  No-Election Share</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.2(b)(i)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subsidiary</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  9.11(g)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subsidiary
  Mergers</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  3.7</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Superior
  Proposal</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  9.11(h)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Surviving
  Corporation</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Recitals</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
<br clear="all" style="page-break-before:always;">
</font>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="49%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Definition</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p align="center" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:47.84%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Section</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tax</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  9.11(i)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Tax
  Return</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  9.11(j)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Terminating
  Options</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  6.5(a)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Termination
  Date</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  8.1(b)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Termination
  Fee</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  8.2(b)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the
  other party</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  9.11(e)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unaudited
  Financial Statements</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.1(d)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Violation</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.l(h)(ii)</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.12%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Welfare
  Benefit Plans</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.04%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="47%" valign="top" style="padding:0in .7pt 0in .7pt;width:47.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section
  4.1(o)(i)</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>


<!-- SEQ.=1,FOLIO='',FILE='C:\jms\sgutthi\04-1502-2\task65548\1502-2-mn.htm',USER='sgutthi',CD='Jan 22 16:19 2004' -->
</body>

</html>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
