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Exhibit 10.22
 

AGREEMENT BY AND BETWEEN
AB & T National Bank
Dothan, Alabama
and
The Comptroller of the Currency

AB & T National Bank, Dothan, Alabama (“Bank”) and the Comptroller of the
Currency of the United States of America (“Comptroller”) wish to protect the
interests of the depositors, other customers, and shareholders of the Bank, and,
toward that end, wish the Bank to operate safely and soundly and in accordance
with all applicable laws, rules and regulations.
The Comptroller, through his National Bank Examiner, has examined the Bank and
identified deficiencies in the Bank's operations including unsafe and unsound
banking practices and violations of law. His findings are contained in the
Report of Examination dated October 3, 2005 (“ROE”).
In consideration of the above premises, it is agreed, between the Bank, by and
through its duly elected and acting Board of Directors (“Board”), and the
Comptroller, through his authorized representative, that the Bank shall operate
at all times in compliance with the articles of this Agreement.
ARTICLE I -- JURISDICTION
(1)    This Agreement shall be construed to be a “written agreement entered into
with the agency” within the meaning of 12 U.S.C. § 1818(b)(1).
(2)    This Agreement shall be construed to be a “written agreement between such
depository institution and such agency” within the meaning of 12 U.S.C.
§ 1818(e)(1) and 12 U.S.C. § 1818(i)(2).
(3)    This Agreement shall be construed to be a “formal written agreement”
within the meaning of 12 C.F.R. § 5.51(c)(6)(ii). See 12 U.S.C. § 1831i.

 

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(4)    This Agreement shall be construed to be a “written agreement” within the
meaning of 12 U.S.C. § 1818(u)(1)(A).
(5)    This Agreement shall cause the Bank to be designated as in “troubled
condition,” as set forth in 12 C.F.R. § 5.51(c)(6), unless otherwise informed in
writing by the Comptroller. In addition, this Agreement shall cause the Bank not
to be designated as an “eligible bank” for purposes of 12 C.F.R. § 5.3(g),
unless otherwise informed in writing by the Comptroller.
(6)    All reports or plans which the Bank or Board has agreed to submit to the
Assistant Deputy Comptroller (ADC) pursuant to this Agreement shall be forwarded
to:
Tommy Tucker
Assistant Deputy Comptroller
Birmingham Office
100 Concourse Parkway, Suite 240
Birmingham, Alabama 35244

ARTICLE II -- COMPLIANCE COMMITTEE
(1)    Within thirty (30) days of the date of this Agreement, the Board shall
appoint a Compliance Committee of at least three (3) directors, all of which
shall be outside directors (i.e., not employees of the Bank or any of its
affiliates, as the term “affiliate” is defined in 12 U.S.C. § 371c(b)(1). Upon
appointment, the names of the members of the Compliance Committee and, in the
event of a change of the membership, the name of any new member shall be
submitted in writing to the ADC. The Compliance Committee shall be responsible
for monitoring and coordinating the Bank's adherence to the provisions of this
Agreement.
(2)    The Compliance Committee shall meet at least monthly.
(3)    Within sixty(60) days of the date of this Agreement and every thirty (30)
days thereafter, the Compliance Committee shall submit a written progress report
to the Board setting forth in detail:

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(a)    a description of the action needed to achieve full compliance with each
Article of this Agreement;
(b)    actions taken to comply with each Article of this Agreement; and
(c)    the results and status of those actions.
(4)    The Board shall forward a copy of the Compliance Committee's report, with
any additional comments by the Board, to the ADC within ten (10) days of
receiving such report.
ARTICLE III -- BOARD TO ENSURE COMPETENT MANAGEMENT
(1)    Within ninety (90) days, the Board shall ensure that the Bank has
competent management in place on a full-time basis in its Chief Executive
Officer, President, and Senior Loan Officer positions to carry out the Board’s
policies, ensure compliance with this Agreement, applicable laws, rules and
regulations, and manage the day-to-day operations of the Bank in a safe and
sound manner.
(2)    Within sixty (60) days, the Board shall review the capabilities of the
Bank’s management to perform present and anticipated duties and the Board will
determine whether management changes will be made, including the need for
additions to or deletions from current management.
(3)    For incumbent officers in the positions mentioned in this Article, the
Board shall within sixty (60) days assess each of these officers’ experience,
other qualifications and performance compared to the position’s description,
duties and responsibilities.
(4)    If the Board determines that an officer will continue in his/her position
but that the officer’s depth of skills needs improvement, the Board will, within
ninety (90) days, develop and implement a written program, with specific time
frames, to improve the officer’s supervision and management of the Bank. At a
minimum the written program shall include:

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(a)    an education program designed to ensure that the officer has skills and
abilities necessary to supervise effectively;
(b)    a program to improve the effectiveness of the officer;
(c)    objectives by which the officer’s effectiveness will be measured; and
(d)    a performance appraisal program for evaluating performance according to
the position’s description and responsibilities and for measuring performance
against the Bank’s goals and objectives.
Upon completion, a copy of the written program shall be submitted to the ADC.
(5)    If a position mentioned in this Article is vacant now or in the future,
including if the Board realigns an existing officer’s responsibilities and a
position mentioned in this Article becomes vacant, the Board shall within ninety
(90) days of such vacancy appoint a capable person to the vacant position who
shall be vested with sufficient executive authority to ensure the Bank’s
compliance with this Agreement and the safe and sound operation of functions
within the scope of that position’s responsibility.
(6)    Prior to the appointment of any individual to an executive officer
position, the Board shall submit to the ADC the following information:
(a)    the information sought in the “Changes in Directors and Senior Executive
Officers” and “Background Investigations” booklets of the Comptroller’s
Licensing Manual, together with a legible fingerprint card for the proposed
individual;
(b)    a written statement of the Board's reasons for selecting the proposed
officer; and
(c)    a written description of the proposed officer's duties and
responsibilities.

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(7)    The ADC shall have the power to disapprove the appointment of the
proposed new officer. However, the lack of disapproval of such individual shall
not constitute an approval or endorsement of the proposed officer.
(8)    The requirement to submit information and the prior disapproval
provisions of this Article are based on the authority of 12 U.S.C.
§ 1818(b)(6)(E) and do not require the Comptroller to complete his review and
act on any such information or authority within ninety (90) days.
ARTICLE IV -- ALLOWANCE FOR LOAN AND LEASE LOSSES
(1)    The Board shall review the adequacy of the Bank's Allowance for Loan and
Lease Losses (“Allowance”) and shall establish a program for the maintenance of
an adequate Allowance. This review and program shall be designed in light of the
comments on maintaining a proper Allowance found in the “Allowance for Loan and
Lease Losses” booklet of the Comptroller’s Handbook, and shall focus particular
attention on the following factors:
(a)    results of the Bank's internal loan review;
(b)    results of the Bank's external loan review;
(c)    an estimate of inherent loss exposure on each credit in excess of
seventy-five thousand dollars ($75,000);
(d)    loan loss experience;
(e)    trends of delinquent and nonaccrual loans;
(f)    concentrations of credit in the Bank; and,
(g)    present and prospective economic conditions.
(2)    The program shall provide for a review of the Allowance by the Board at
least once each calendar quarter. Any deficiency in the Allowance shall be
remedied in the quarter it

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is discovered, prior to the filing of the Consolidated Reports of Condition and
Income, by additional provisions from earnings. Written documentation shall be
maintained indicating the factors considered and conclusions reached by the
Board in determining the adequacy of the Allowance.
(3)    A copy of the Board's program shall be submitted to the ADC for review
and prior written determination of no supervisory objection. Upon receiving a
determination of no supervisory objection from the ADC, the Bank shall implement
and adhere to the program.
ARTICLE V -- CAPITAL PLAN AND HIGHER MINIMUMS
(1)    The Bank shall achieve by September 30, 2006, and thereafter maintain the
following capital levels (as defined in 12 C.F.R. Part 3):
(a)    Tier 1 capital at least equal to eleven percent (11 %) of risk-weighted
assets;
(b)    Tier 1 capital at least equal to eight percent (8 %) of adjusted total
assets.
(2)    The requirement in this Agreement to meet and maintain a specific capital
level means that the Bank may not be deemed to be “well capitalized” for
purposes of 12 U.S.C. § 1831o and 12 C.F.R. Part 6 pursuant to 12 C.F.R.
§ 6.4(b)(1)(iv).
(3)    Within ninety (90) days, the Board shall develop, implement, and
thereafter ensure Bank adherence to a three year capital program. The program
shall include:
(a)    specific plans for the maintenance of adequate capital that may in no
event be less than the requirements of subparagraph (1);
(b)    projections for growth and capital requirements based upon a detailed
analysis of the Bank's assets, liabilities, earnings, fixed assets, and
off-balance sheet activities;

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(c)    projections of the sources and timing of additional capital to meet the
Bank's current and future needs;
(d)    the primary source(s) from which the Bank will strengthen its capital
structure to meet the Bank's needs;
(e)    contingency plans that identify alternative methods should the primary
source(s) under (d) above not be available; and
(f)    a dividend policy that permits the declaration of a dividend only:
(i)     when the Bank is in compliance with its approved capital program;
(ii)    when the Bank is in compliance with 12 U.S.C. §§ 56 and 60; and,
(iii)    with the prior written determination of no supervisory objection by the
ADC.
(4)    Upon receiving a determination of no supervisory objection from the ADC,
the Bank shall implement and adhere to the dividend policy.
(5)    Upon completion, the Bank's capital program shall be submitted to the ADC
for prior determination of no supervisory objection. Upon receiving a
determination of no supervisory objection from the ADC, the Bank shall implement
and adhere to the capital program. The Board shall review and update the Bank's
capital program on an annual basis, or more frequently if necessary. Copies of
the reviews and updates shall be submitted to the ADC.
ARTICLE VI -- CREDIT AND COLLATERAL EXCEPTIONS
(1)    Within sixty (60) days the Board shall obtain current and satisfactory
credit information on all loans lacking such information, including those listed
in the ROE, in any subsequent Report of Examination, in any internal or external
loan review, or in any listings of

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loans lacking such information provided to management by the National Bank
Examiners at the conclusion of an examination.
(2)    Within sixty (60) days the Board shall ensure proper collateral
documentation is maintained on all loans and correct each collateral exception
listed in the ROE, in any subsequent Report of Examination, in any internal or
external loan review, or in any listings of loans lacking such information
provided to management by the National Bank Examiners at the conclusion of an
examination.
(3)    Effective immediately, the Bank may grant, extend, renew, alter or
restructure any loan or other extension of credit only after:
(a)    documenting the specific reason or purpose for the extension of credit;
(b)    identifying the expected source of repayment in writing;
(c)    structuring the repayment terms to coincide with the expected source of
repayment;
(d)    obtaining and analyzing current and satisfactory credit information,
including cash flow analysis, where loans are to be repaid from operations;
(i)    Failure to obtain the information in (3)(d) shall require a majority of
the full Board (or a delegated committee thereof) to certify in writing the
specific reasons why obtaining and analyzing the information in (3)(d) would be
detrimental to the best interests of the Bank, and,
(ii)    A copy of the Board certification shall be maintained in the credit file
of the affected borrower(s). The certification will be reviewed by this Office
in subsequent examinations of the Bank;

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(e)    documenting, with adequate supporting material, the value of collateral
and properly perfecting the Bank's lien on it where applicable.
ARTICLE VII -- CREDIT RISK
(1)    Within sixty (60) days, the Board shall develop, implement, and
thereafter ensure Bank adherence to a written program to reduce the high level
of credit risk in the Bank.
(2)    The program shall include, but not be limited to:
(a)    procedures to strengthen credit underwriting, particularly in the
commercial real estate loan portfolio;
(b)    procedures to strengthen management of loan operations and to maintain an
adequate, qualified staff in all lending functional areas;
(c)    procedures for strengthening collections; and
(d)    an action plan to control loan growth.
The Board shall promptly submit a copy of the program to the ADC.
(3)    At least quarterly, the Board shall prepare a written assessment of the
bank’s credit risk, which shall evaluate the Bank’s progress under the
aforementioned program. The Board shall submit a copy of this assessment to the
ADC.
ARTICLE VIII -- INTEREST RATE RISK POLICY
(1)    Within sixty (60) days, the Board shall adopt, implement, and thereafter
ensure Bank adherence to a written interest rate risk policy. In formulating
this policy, the Board shall refer to the “Interest Rate Risk” booklet of the
Comptroller’s Handbook. The policy shall provide for a coordinated interest rate
risk strategy and, at a minimum, address:
(a)    the establishment of adequate management reports on which to base sound
interest rate risk management decisions;

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(b)    establishment and guidance of the Bank’s strategic direction and
tolerance for interest rate risk;
(c)    implementation of effective tools to measure and monitor the Bank’s
performance and overall interest rate risk profile;
(d)    employment of competent personnel to manage interest rate risk;
(e)    prudent limits on the nature and amount of interest rate risk that can be
taken; and,
(f)    periodic review of the Bank's adherence to the policy.
(2)    Upon adoption, a copy of the written policy shall be forwarded to the ADC
for review.
ARTICLE IX -- INTERNAL AUDIT
(1)    Within sixty (60) days, the Board shall adopt, implement, and thereafter
ensure Bank adherence to an independent, internal audit program sufficient to:
(a)    detect irregularities and weak practices in the Bank's operations;
(b)    determine the Bank's level of compliance with all applicable laws, rules
and regulations;
(c)    assess and report the effectiveness of policies, procedures, controls,
and management oversight relating to accounting and financial reporting;
(d)    evaluate the Bank's adherence to established policies and procedures,
with particular emphasis directed to the Bank's adherence to its loan policies
concerning underwriting standards and problem loan identification and
classification;
(e)    review and provide an opinion regarding whether regulatory reports

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beginning with the quarter ending June 30, 2006, contain “material
misstatements” within thirty (30) days of filing; for purposes of this Article,
“material misstatements” has the same meaning as the term is used in the SEC’s
Staff Accounting Bulletin No. 99 on Materiality (“SAB  99”).
(f)    adequately cover all areas; and
(g)    establish an annual audit plan using a risk based approach sufficient to
achieve these objectives.
(2)    As part of this audit program, the Board shall evaluate the audit reports
of any party providing services to the Bank, and shall assess the impact on the
Bank of any audit deficiencies cited in such reports.
(3)    The Board shall ensure that the audit function is supported by an
adequately staffed department or outside firm, with respect to both the
experience level and number of the individuals employed.
(4)    The Board shall ensure that the audit program is independent. The persons
responsible for implementing the internal audit program described above shall
report directly to the Board, which shall have the sole power to direct their
activities. All reports prepared by the audit staff shall be filed directly with
the Audit Committee of the Board and not through any intervening party. All
audit reports shall be in writing. The Board shall ensure that immediate actions
are undertaken to remedy deficiencies cited in audit reports, and that auditors
maintain a written record describing those actions.
(5)    The audit staff shall have access to any records necessary for the proper
conduct of its activities. National bank examiners shall have access to all
reports and work papers of the

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audit staff and any other parties working on its behalf.
(6)    Upon adoption, a copy of the internal audit program shall be promptly
submitted to the ADC.
ARTICLE X -- INVESTMENT POLICY
(1)    Within sixty (60) days, the Board shall review and revise the Bank's
investment policy and implement the revised policy, and thereafter ensure Bank
adherence to the policy. The policy shall contain the basic elements of a sound
investment policy consistent with regulatory guidance provided in An Examiner’s
Guide to Investment Products and Practices (Dec., 1992), 12 C.F.R. Part 1, and
OCC Bulletin 98-20 (Apr. 27, 1998) and shall include:
(a)    an investment portfolio strategy that is consistent with Board approved
Bank asset and liability management policies and interest rate risk tolerances;
(b)    individual and committee investment portfolio purchase and sale
authority;
(c)    approval procedures that will include dollar size limits, quality
limitations, maturity limitations, and concentration or diversification
guidelines;
(d)    a requirement that investment securities be supported by adequate credit
and interest rate risk measurement information as described in the “Interest
Rate Risk” booklet of the Comptroller’s Handbook and in OCC Bulletin 98-20 (Apr.
27, 1998);
(e)    required reviews and use of securities dealers;
(f)    periodic reports to and approval by the Board for all investment
portfolio purchases and sales and strategy changes; and

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(g)    monthly review by the Board's investment committee of the Bank's
investment portfolio activity to ensure adherence to the investment policy and
to applicable banking and securities laws and regulations.
(2)    The revised investment policy shall be implemented and a copy shall be
forwarded to the ADC.
ARTICLE XI -- LOAN REVIEW
(1)    The Board shall employ or designate a sufficiently experienced and
qualified person(s) or firm to ensure the timely and independent identification
of problem loans and leases.
(2)    Within sixty (60) days from the effective date of this Agreement, the
Board shall establish an effective, independent and on-going loan review system
to review, at least quarterly, the Bank's loan and lease portfolios to assure
the timely identification and categorization of problem credits. The system
shall provide for a written report to be filed with the Board after each review
and shall use a loan and lease grading system consistent with the guidelines set
forth in Rating Credit Risk, A-RCR, of the Comptroller’s Handbook. Such reports
shall, at a minimum, include:
(a)    conclusions regarding the overall quality of the loan and lease
portfolios;
(b)    the identification, type, rating, and amount of problem loans and leases;
(c)    the identification and amount of delinquent loans and leases;
(d)    the identification of credit and collateral documentation exceptions;
(e)    the identification of loans meeting the criteria for nonaccrual

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status;
(f)    the identification and status of credit related violations of law, rule
or regulation;
(g)    the identification of loans and leases not in conformance with the Bank's
lending and leasing policies, including approved exceptions to the Bank’s
lending and leasing policies;
(h)    the identity of the loan officer who originated or is responsible for
each loan reported in accordance with subparagraphs (b) through (g) of this
paragraph;
(i)    the identification of concentrations of credit; and
(j)    the identification of loans and leases to executive officers, directors,
principal shareholders (and their related interests) of the Bank.
(3)    The Board shall evaluate the loan review report(s) and shall ensure that
immediate, adequate, and continuing remedial action, if appropriate, is taken
upon all findings noted in the report(s).
(4)    A copy of the reports submitted to the Board, as well as documentation of
the action taken by the Bank to collect or strengthen assets identified as
problem credits, shall be preserved in the Bank.
ARTICLE XII -- LENDING POLICY
(1)    Within sixty (60) days, the Board shall review and revise the Bank's
written loan policy. In revising this policy, the Board shall refer to “Loan
Portfolio Management” booklet of the Comptroller’s Handbook. This policy shall
incorporate, but not necessarily be limited to, the

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following: 
(a)    a description of acceptable types of loans;
(b)    a provision that current and satisfactory credit information will be
obtained on each borrower;
(c)    maturity scheduling related to the anticipated source of repayment, the
purpose of the loan, and the useful life of the collateral;
(d)    maximum ratio of loan value to appraised value or acquisition costs of
collateral securing the loan;
(e)    collection procedures, to include follow-up efforts, that are
systematically and progressively stronger;
(f)    a pricing policy that takes into consideration costs, general overhead,
and probable loan losses, while providing for a reasonable margin of profit;
(g)    a definition of the Bank's trade area;
(h)    guidelines and limitations for loans originating outside of the Bank's
trade area;
(i)    a limitation on aggregate outstanding loans in relation to other balance
sheet accounts;
(j)    distribution of loans by category;
(k)    a prohibition regarding the use of brokered deposits to fund loan growth
or support criticized loans;
(l)    guidelines for loans to insiders, including a statement that such loans
will not be granted on terms more favorable than those offered to similar
outside borrowers;

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(m)    guidelines and limitations on concentrations of credit;
(n)    a limitation on the type and size of loans that may be made by loan
officers without prior approval by the Board or a committee established by the
Board for this purpose;
(o)    measures to correct the deficiencies in the Bank's lending procedures
noted in any ROE; and,
(p)    guidelines designed to improve Board oversight of the loan approval
process, specifically with regard to credits exhibiting significant risk. At a
minimum, the policy shall:
(i)    establish dollar limits on extensions of credit to any one borrower,
above which the prior approval of the Board, or a committee thereof, would be
required;
(ii)    establish dollar limits on aggregate extensions of credit to any one
borrower, above which any new extensions of credit to that borrower, regardless
of amount, would require the prior approval of the Board, or a committee
thereof; and
(iii)    require that all credits which deviate from the Bank’s normal course of
business, including all credits which deviate from the Bank’s written strategic
plan, receive the prior approval of the Board, or a committee thereof;
(iv)     require that all new, renewed, extended, restructured or altered
credits in excess of fifty thousand dollars ($50,000) which deviate from the
Bank’s lending policy receive the prior approval of the

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Board, or a committee thereof. A copy of the Board or committee approval shall
be maintained in the credit file of the affected borrower(s), and shall state
the reason for deviating from the lending policy to include an assessment of why
the deviation is in the best interest of the bank.
(v)     require that all new, renewed, extended, restructured or altered credits
in the amount of fifty thousand dollars ($50,000) or less which deviate from the
Bank’s lending policy receive the prior written approval of the bank’s senior
lending officer. A copy of the written approval shall be maintained in the
credit file of the affected borrower(s), and shall state the reason for
deviating from the lending policy to include an assessment of why the deviation
is in the best interest of the bank.
(q)    guidelines consistent with Banking Circular 255, setting forth the
criteria under which renewals of extensions of credit may be approved. At a
minimum the policy shall:
(i)    ensure that renewals are not made for the sole purpose of reducing the
volume of loan delinquencies; and
(ii)    provide guidelines and limitations on the capitalization of interest;
(r)    charge-off guidelines, by type of loan or other asset, including Other
Real Estate Owned, addressing the circumstances under which a charge-off would
be appropriate and ensuring the recognition of losses within the quarter of
discovery; and

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(s)    guidelines for periodic review of the Bank's adherence to the revised
lending policy.
(2)    Upon adoption, the policy shall be implemented, the Board shall
thereafter ensure Bank adherence to the policy, and a copy of the policy shall
be forwarded to the ADC for review.
ARTICLE XIII -- LIQUIDITY
(1)    The Board shall immediately increase the liquidity of the Bank to a level
that is sufficient to sustain the Bank's current operations and to withstand any
anticipated or extraordinary demand against its funding base. Such actions may
include, but are not necessarily limited to:
(a)    selling assets;
(b)    obtaining lines of credit from the Federal Reserve Bank;
(c)    obtaining lines of credit from correspondent banks;
(d)    recovering charged-off assets; and
(e)    injecting additional equity capital.
(2)    The Board shall review the Bank's liquidity on a monthly basis. Such
reviews shall consider:
(a)    a maturity schedule of certificates of deposit, including large uninsured
deposits;
(b)    the volatility of demand deposits including escrow deposits;
(c)    the amount and type of loan commitments and standby letters of credit;
(d)    an analysis of the continuing availability and volatility of present
funding sources;
(e)    an analysis of the impact of decreased cash flow from the Bank's loan

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portfolio resulting from delinquent and non-performing loans;
(f)    an analysis of the impact of decreased cash flow from the sale of loans
or loan participations; and
(g)    geographic disbursement of and risk from brokered deposits.
(3)    The Board shall take appropriate action to ensure adequate sources of
liquidity in relation to the Bank's needs. Monthly reports shall set forth
liquidity requirements and sources and establish a contingency plan. Copies of
these reports shall be forwarded to the ADC in the Bank’s monthly report to the
ADC.
ARTICLE XIV -- LOAN PORTFOLIO MANAGEMENT
(1)    The Board shall, within sixty (60) days, develop, implement, and
thereafter ensure Bank adherence to a written program to improve the Bank's loan
portfolio management. The program shall include, but not be limited to:
(a)    procedures to ensure satisfactory and perfected collateral documentation;
(b)    procedures to ensure that extensions of credit are granted, by renewal or
otherwise, to any borrower only after obtaining and analyzing current and
satisfactory credit information;
(c)    procedures to ensure conformance with loan approval requirements;
(d)    a system to track and analyze exceptions;
(e)    procedures to ensure conformance with Call Report instructions;
(f)    procedures to ensure the accuracy of internal management information
systems;
(g)    a performance appraisal process, including performance appraisals, job
descriptions, and incentive programs for loan officers, which adequately

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consider their performance relative to policy compliance, documentation
standards, accuracy in credit grading, and other loan administration matters;
and
(h)    procedures to track and analyze concentrations of credit, significant
economic factors, and general conditions and their impact on the credit quality
of the Bank’s loan and lease portfolios.
Upon completion, a copy of the program shall be forwarded to the ADC.
(2)    Within sixty (60 ) days, the Board shall develop, implement, and
thereafter ensure Bank adherence to systems which provide for effective
monitoring of:
(a)    early problem loan identification to assure the timely identification and
rating of loans and leases based on lending officer submissions;
(b)    statistical records that will serve as a basis for identifying sources of
problem loans and leases by industry, size, collateral, division, group,
indirect dealer, and individual lending officer;
(c)    previously charged-off assets and their recovery potential;
(d)    compliance with the Bank's lending policies and laws, rules, and
regulations pertaining to the Bank's lending function;
(e)    adequacy of credit and collateral documentation; and
(f)    concentrations of credit.
(3)    Beginning August 31, 2006, on a monthly basis management will provide the
Board with written reports including, at a minimum, the following information:
(a)    the identification, type, rating, and amount of problem loans and leases;
(b)    the identification and amount of delinquent loans and leases;

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(c)    credit and collateral documentation exceptions;
(d)    the identification and status of credit related violations of law, rule
or regulation;
(e)    the identity of the loan officer who originated each loan reported in
accordance with subparagraphs (a) through (d) of this Article and Paragraph;
(f)    an analysis of concentrations of credit, significant economic factors,
and general conditions and their impact on the credit quality of the Bank’s loan
and lease portfolios;
(g)    the identification and amount of loans and leases to executive officers,
directors, principal shareholders (and their related interests) of the Bank; and
(h)    the identification of loans and leases not in conformance with the Bank's
lending and leasing policies, and exceptions to the Bank’s lending and leasing
policies.
ARTICLE XV -- MANAGEMENT FEES TO AFFILIATES
(1)    Prior to the payment of any management and other fees to any affiliate of
the Bank as defined in 12 U.S.C. § 221a and 12 U.S.C. § 371c (“Affiliate”), the
Board, or delegated committee of the Board, shall document and support, in
writing, that such fees:
(a)    are reasonable;
(b)    have a direct relationship to, and are based solely upon, the fair value
of goods and services received by the Bank; and
(c)    compensate the Affiliate only for providing goods and services which

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meet the legitimate needs of the Bank.
(2)    All documentation supporting the payment of management and other fees to
an Affiliate, shall be preserved in the Bank.
ARTICLE XVI -- TRANSACTIONS BETWEEN AFFILIATES
(1)    The Bank may, directly or indirectly, pay money or its equivalent to or
for the benefit of, or extend credit in any form to or for the benefit of, its
affiliates, or transfer assets between the Bank and its affiliates, or enter
into or engage in any transaction that obligates the Bank to do the same
only after:
(a)    the Board has conducted an independent review of the action, which review
is documented in writing; and,
(b)    the Board has determined in writing that it is advantageous for the Bank
to engage in such action, and that the action complies with all applicable laws,
rules, regulations, and Comptroller’s issuances, including, but not limited to
12 C.F.R. Part 223.
(2)    For purposes of this Article, “affiliate” shall have the meaning set
forth in and 12 C.F.R. Part 223.
ARTICLE XVII -- STRATEGIC PLAN
(1)    Within one hundred and twenty (120) days, the Board shall adopt,
implement, and thereafter ensure Bank adherence to a written strategic plan for
the Bank covering at least a three-year period. The strategic plan shall
establish objectives for the Bank's overall risk profile, earnings performance,
growth, balance sheet mix, off-balance sheet activities, liability structure,
capital adequacy, reduction in the volume of nonperforming assets, product line
development and market segments that the Bank intends to promote or develop,
together with strategies to

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achieve those objectives and, at a minimum, include:
(a)    a mission statement that forms the framework for the establishment of
strategic goals and objectives;
(b)    an assessment of the Bank's present and future operating environment;
(c)    the development of strategic goals and objectives to be accomplished over
the short and long term;
(d)    an identification of the Bank’s present and future product lines (assets
and liabilities) that will be utilized to accomplish the strategic goals and
objectives established in (1 )(c) of this Article;
(e)    an evaluation of the Bank's internal operations, staffing requirements,
board and management information systems and policies and procedures for their
adequacy and contribution to the accomplishment of the goals and objectives
developed under (1)(c) of this Article;
(f)    a management employment and succession program to promote the retention
and continuity of capable management;
(g)    product line development and market segments that the Bank intends to
promote or develop;
(h)    an action plan to improve bank earnings and accomplish identified
strategic goals and objectives, including individual responsibilities,
accountability and specific time frames;
(i)    a financial forecast to include projections for major balance sheet and
income statement accounts and desired financial ratios over the period covered
by the strategic plan;
 
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(j)    control systems to mitigate risks associated with planned new products,
growth, or any proposed changes in the Bank’s operating environment;
specific plans to establish responsibilities and accountability for the
strategic planning process, new products, growth goals, or proposed changes in
the Bank’s operating environment; and
(k)    systems to monitor the Bank’s progress in meeting the plan’s goals and
objectives.
(2)    Upon adoption, a copy of the plan shall be forwarded to the ADC for
review and prior written determination of no supervisory objection. Upon
receiving a determination of no supervisory objection from the ADC, the Bank
shall implement and adhere to the strategic plan.
ARTICLE XVIII -- BOOKS AND RECORDS
(1)    The Board shall immediately take all necessary actions to ensure that,
within thirty (30) days, the Bank’s books, records and management information
systems (MIS) are in a complete and accurate condition.
(2)    Within sixty (60) days, the Board shall submit to the ADC an action plan
detailing how the Board will maintain the Bank’s books, records and MIS in a
complete and accurate condition, setting forth a timetable for the plan. In the
event the ADC recommends changes to the action plan, the Board shall immediately
incorporate those changes into the plan.
(3)    The Board shall ensure that the Bank’s books, records and MIS are
maintained in a complete and accurate condition.
ARTICLE XIX -- INFORMATION TECHNOLOGY
(1)    The Board shall immediately take all steps necessary to improve the
management of the Bank’s Information Technology (“IT”) activities and to correct
each deficiency cited in the

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Report of Examination (“ROE”) or any supervisory communication.
(2)    Within sixty (60) days, the Board shall ensure that the information
technology manager has the necessary skills and experience to supervise
effectively the IT area.
(3)    Within sixty (60) days, the Board shall develop, implement, and
thereafter adhere to a written, well-documented, risk-based, internal IT audit
program. At a minimum, the IT audit program shall be performed by an independent
and qualified party, and shall include fundamental elements of a sound audit
program as described in the “Audit” booklet of the FFIEC Information Technology
Examination Handbook.
(4)    Within sixty (60) days, the Board shall develop, implement, and
thereafter ensure adherence to a comprehensive, written information security
program to ensure the safety and soundness of its operations and to support the
Bank’s efforts to comply with 12 C.F.R. Part 30, Appendix B, Safeguarding
Customer Information. The information security program shall include
administrative, technical, and physical safeguards to protect the security,
confidentiality, and integrity of customer information. The information security
program shall be consistent with the security process described in the
“Information Security” booklet of the FFIEC Information Technology Examination
Handbook. At a minimum, the information security program shall include:
(a)    a corporate-wide assessment of the risks to its customer information or
customer information systems and a written report evidencing such assessment.
The assessment shall include:
(i)    the identification of reasonably foreseeable internal and external
threats that could result in unauthorized disclosure, misuse, alteration, or
destruction of customer

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information or customer information systems;
(ii)    an assessment of the likelihood and potential damage of these threats,
taking into consideration the sensitivity of customer information; and
(iii)    an assessment of the sufficiency of policies, procedures, customer
information systems, and other arrangements in place to control risks.
(b)    a process to monitor and control the identified risks, commensurate with
the sensitivity of the information as well as the complexity and scope of bank
activities;
(c)    a test plan that provides for regular testing of key controls, systems
and procedures of its information security program. The frequency and nature of
such tests shall be determined by the risk assessment. Such tests shall be
conducted or reviewed by independent third parties or staff independent of those
who develop or maintain the information security program.
(5)    Within sixty (60) days, the Board shall develop, implement, and
thereafter adhere to, a written program to oversee and manage risks associated
with outsourcing any services to third party servicers, including technology
service providers and vendors. This third party management program shall be
consistent with OCC Bulletin 2001-47, “Third Party Relationships,” dated
November 1, 2001, and OCC Advisory Letter 2000-12, “Risk Management of
Outsourcing Technology Services” dated November 28, 2000.
(6)    Within sixty (60) days, the Board shall develop and implement a formal
enterprise-wide business continuity process that complies with the requirements
set forth in the

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“Business Continuity Planning” booklet of the FFIEC Information Technology
Examination Handbook. At a minimum, the business continuity process shall
include:
(a)    a business impact analysis that includes:
(i)    the identification of the potential impact of uncontrolled, non-specific
events on the institution’s business processes and its customers; and
(ii)    an estimation of the maximum allowable downtime and acceptable levels of
data, operations, and financial losses.
(b)    a risk assessment process that includes:
(i)    the prioritization of potential business disruptions based upon severity
and likelihood of occurrence;
(ii)    a gap analysis comparing the institution’s existing business resumption
plans, if any, to what is necessary to achieve recovery time and point
objectives; and
(iii)    an analysis of threats based upon the impact on the institution, its
customers, and the financial markets, not just the nature of the treat.
(c)    a risk management process that includes the development of a written,
enterprise-wide business continuity plan (BCP); and
(d)    a risk monitoring process that includes:
(i)    testing of the BCP on at least an annual basis;
(ii)    independent audit and review of the BCP; and
(iii)    updating the BCP based upon changes to personnel and the internal

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and external environments.
(7)    The Board shall provide a quarterly written progress report on each of
the requirements of this Article to the ADC.
(8)    The Board shall ensure that the Data Center has processes, personnel and
control systems sufficient to ensure implementation of and adherence to the
procedures and programs developed pursuant to this Article.
ARTICLE XX -- DEPENDENCE ON CREDIT SENSITIVE LIABILITIES
(1)    Within forty-five (45) days the Bank shall improve the Bank’s liquidity
position and maintain adequate sources of stable funding given the Bank’s
anticipated liquidity and funding needs. Such actions shall include, but not be
limited to:
(a)    reduction of wholesale or credit sensitive liabilities and/or increase of
liquid assets; and
(b)    revision of the Bank's strategic plan in light of the requirement of this
Article.
ARTICLE XXI -- VIOLATIONS OF LAW
(1)    The Board shall immediately take all necessary steps to ensure that Bank
management corrects each violation of law, rule or regulation cited in the ROE
and in any subsequent Report of Examination. The monthly progress reports
required by this Agreement shall include the date and manner in which each
correction has been effected during that reporting period.
(2)    Within sixty (60) days, the Board shall adopt, implement, and thereafter
ensure Bank adherence to specific procedures to prevent future violations as
cited in the ROE and shall adopt, implement, and ensure Bank adherence to
general procedures addressing compliance

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management which incorporate internal control systems and education of employees
regarding laws, rules and regulations applicable to their areas of
responsibility.
(3)    Upon adoption, a copy of these procedures shall be promptly forwarded to
the ADC.
ARTICLE XXII -- CLOSING
(1)    Although the Board has agreed to submit certain programs and reports to
the ADC for review or prior written determination of no supervisory objection,
the Board has the ultimate responsibility for proper and sound management of the
Bank.
(2)    The Board shall ensure that the Bank has processes, personnel, and
control systems to ensure implementation of and adherence to the programs
developed pursuant to this Agreement.
(3)    It is expressly and clearly understood that if, at any time, the
Comptroller deems it appropriate in fulfilling the responsibilities placed upon
him/her by the several laws of the United States of America to undertake any
action affecting the Bank, nothing in this Agreement shall in any way inhibit,
estop, bar, or otherwise prevent the Comptroller from so doing.
(4)    Any time limitations imposed by this Agreement shall begin to run from
the effective date of this Agreement. Such time requirements may be extended in
writing by the ADC for good cause upon written application by the Board.
(5)    The provisions of this Agreement shall be effective upon execution by the
parties hereto and its provisions shall continue in full force and effect unless
or until such provisions are amended in writing by mutual consent of the parties
to the Agreement or excepted, waived, or terminated in writing by the
Comptroller.
(6)    In each instance in this Agreement in which the Board is required to
ensure

 
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adherence to, and undertake to perform certain obligations of the Bank, it is
intended to mean that the Board shall:
(a)    authorize and adopt such actions on behalf of the Bank as may be
necessary for the Bank to perform its obligations and undertakings under the
terms of this Agreement;
(b)    require the timely reporting by Bank management of such actions directed
by the Board to be taken under the terms of this Agreement;
(c)    follow-up on any non-compliance with such actions in a timely and
appropriate manner; and
(d)    require corrective action be taken in a timely manner of any
non-compliance with such actions.
(7)    This Agreement is intended to be, and shall be construed to be, a
supervisory “written agreement entered into with the agency” as contemplated by
12 U.S.C. § 1818(b)(1), and expressly does not form, and may not be construed to
form, a contract binding on the Comptroller or the United States.
Notwithstanding the absence of mutuality of obligation, or of consideration, or
of a contract, the Comptroller may enforce any of the commitments or obligations
herein undertaken by the Bank under his supervisory powers, including 12 U.S.C.
§ 1818(b)(1), and not as a matter of contract law. The Bank expressly
acknowledges that neither the Bank nor the Comptroller has any intention to
enter into a contract. The Bank also expressly acknowledges that no officer or
employee of the Office of the Comptroller of the Currency has statutory or other
authority to bind the United States, the U.S. Treasury Department, the
Comptroller, or any other federal bank regulatory agency or entity, or any
officer or employee of any of those entities to a contract affecting the
Comptroller’s exercise of his supervisory

30

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responsibilities. The terms of this Agreement, including this paragraph, are not
subject to amendment or modification by any extraneous expression, prior
agreements or prior arrangements between the parties, whether oral or written.
 
IN TESTIMONY WHEREOF, the undersigned, authorized by the Comptroller, has
hereunto set his hand on behalf of the Comptroller.
 

  /s/ Tommy Tucker

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

Tommy Tucker
Assistant Deputy Comptroller
Birmingham Office
 
  July 27, 2006

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

Date

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AND IN FURTHER TESTIMONY WHEREOF, the undersigned, as the duly elected and
acting Board of Directors of the Bank, have hereunto set their hands on behalf
of the Bank.

  /s/ Keith Beckham

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

Keith Beckham
 
  July 27, 2006

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Date
     
  /s/ Malcolm Dunaway

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

Malcolm Dunaway
 
  July 27, 2006

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

Date
     
  /s/ Paul Joiner

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

Paul Joiner
 
  July 27, 2006

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

Date
     
/s/ Charles M. Jones, III

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

Charles M. Jones, III
 
  July 27, 2006

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

Date
     
  /s/ William Matthews

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

William Matthews
 
  July 27, 2006

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

Date
     
  /s/ Forrest Register

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

Forrest Register
 
  July 27, 2006

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

Date
     
  /s/ Joseph C. Sorrells

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

Joseph C. Sorrells
 
  July 27, 2006

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

Date
     
  /s/ Levy Ward

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

Levy Ward
 
  July 27, 2006

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

Date
     

 
 
 
 
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