exv10w12






Exhibit 10.12




 




PURCHASE AND ASSUMPTION AGREEMENT



WHOLE BANK



ALL DEPOSITS



AMONG



FEDERAL DEPOSIT INSURANCE CORPORATION,

RECEIVER OF CORTEZ COMMUNITY BANK, 

BROOKSVILLE, FLORIDA



FEDERAL DEPOSIT INSURANCE CORPORATION 



and



PREMIER AMERICAN BANK, NATIONAL ASSOCIATION

MIAMI, FLORIDA



DATED AS OF



APRIL 29, 2011



 




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Purchase and Assumption Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






 









 






PURCHASE AND ASSUMPTION AGREEMENT




TABLE OF CONTENTS







	 	 	 	 	 

	ARTICLE I. GENERAL
	 	 	1	 
	 
	 	 	 	 
	1.1 Purpose
	 	 	1	 
	1.2 Shared-Loss Agreements
	 	 	1	 
	1.3 Defined Terms
	 	 	2	 
	 
	 	 	 	 
	ARTICLE II. ASSUMPTION OF LIABILITIES
	 	 	9	 
	 
	 	 	 	 
	2.1 Liabilities Assumed by Assuming Institution
	 	 	9	 
	2.2 Interest on Deposit Liabilities
	 	 	10	 
	2.3 Unclaimed Deposits
	 	 	10	 
	2.4 Employee Plans
	 	 	11	 
	 
	 	 	 	 
	ARTICLE III. PURCHASE OF ASSETS
	 	 	11	 
	 
	 	 	 	 
	3.1 Assets Purchased by the Assuming Institution
	 	 	11	 
	3.2 Asset Purchase Price
	 	 	11	 
	3.3 Manner of Conveyance; Limited Warranty;
Nonrecourse; Etc.
	 	 	12	 
	3.4 Puts of Assets to the Receiver
	 	 	12	 
	3.5 Assets Not Purchased by Assuming Institution
	 	 	14	 
	3.6 Retention or Repurchase of Assets Essential to
Receiver
	 	 	16	 
	3.7 Receiver’s Offer to Sell Withheld Loans
	 	 	17	 
	 
	 	 	 	 
	ARTICLE IV. ASSUMPTION OF CERTAIN DUTIES
AND OBLIGATIONS
	 	 	17	 
	 
	 	 	 	 
	4.1 Continuation of Banking Business
	 	 	17	 
	4.2 Credit Card Business
	 	 	17	 
	4.3 Safe Deposit Business
	 	 	17	 
	4.4 Safekeeping Business
	 	 	18	 
	4.5 Trust Business
	 	 	18	 
	4.6 Bank Premises
	 	 	18	 
	4.7 Agreement with Respect to Leased Data
Management Equipment
	 	 	22	 
	4.8 Certain Existing Agreements
	 	 	23	 
	4.9 Informational Tax Reporting
	 	 	23	 
	4.10 Insurance
	 	 	24	 
	4.11 Office Space for Receiver and Corporation; Certain
Payments
	 	 	24	 
	4.12 Continuation of Group Health Plan Coverage for
Former Employees of the Failed Bank
	 	 	25	 
	4.13 Interim Asset Servicing
	 	 	26	 
	4.14 [RESERVED]
	 	 	26	 
	4.15 Loss Sharing
	 	 	26	 
	 
	 	 	 	 
	ARTICLE V. DUTIES WITH RESPECT TO
DEPOSITORS OF THE FAILED BANK
	 	 	26	 
	 
	 	 	 	 
	5.1 Payment of Checks, Drafts, Orders and Deposits
	 	 	26	 
	5.2 Certain Agreements Related to Deposits
	 	 	26	 
	5.3 Notice to Depositors
	 	 	27	 
	 
	 	 	 	 
	ARTICLE VI. RECORDS
	 	 	27	 













	 	 	 	 	 
	6.1 Transfer of Records
	 	 	27	 
	6.2 Transfer of Assigned Records
	 	 	27	 
	6.3 Preservation of Records
	 	 	27	 
	6.4 Access to Records; Copies
	 	 	28	 
	6.5 Right of Receiver or Corporation to Audit
	 	 	28	 
	 
	 	 	 	 
	ARTICLE VIII. BID; INITIAL PAYMENT
	 	 	28	 
	 
	 	 	 	 
	ARTICLE VIII. ADJUSTMENTS
	 	 	29	 
	 
	 	 	 	 
	8.1 Pro Forma Statement
	 	 	29	 
	8.2 Correction of Errors and Omissions; Other
Liabilities
	 	 	29	 
	8.3 Payments
	 	 	29	 
	8.4 Interest
	 	 	30	 
	8.5 Subsequent Adjustments
	 	 	30	 
	 
	 	 	 	 
	ARTICLE IX. CONTINUING COOPERATION
	 	 	30	 
	 
	 	 	 	 
	9.1 General Matters
	 	 	30	 
	9.2 Additional Title Documents
	 	 	30	 
	9.3 Claims and Suits
	 	 	30	 
	9.4 Payment of Deposits
	 	 	31	 
	9.5 Withheld Payments
	 	 	31	 
	9.6 Proceedings with Respect to Certain Assets
and Liabilities
	 	 	31	 
	9.7 Information
	 	 	32	 
	9.8 Tax Ruling
	 	 	32	 
	 
	 	 	 	 
	ARTICLE X. CONDITION PRECEDENT
	 	 	32	 
	 
	 	 	 	 
	ARTICLE XL REPRESENTATIONS AND
WARRANTIES OF THE ASSUMING INSTITUTION
	 	 	32	 
	 
	 	 	 	 
	11.1 Corporate Existence and Authority
	 	 	32	 
	11.2 Third Party Consent
	 	 	33	 
	11.3 Execution and Enforceability
	 	 	33	 
	11.4 Compliance with Law
	 	 	33	 
	11.5 Insured or Guaranteed Loans
	 	 	33	 
	11.6 Representations Remain True
	 	 	33	 
	11.7 No Reliance; Independent Advice
	 	 	34	 
	 
	 	 	 	 
	ARTICLE XII INDEMNIFICATION
	 	 	34	 
	 
	 	 	 	 
	12.1 Indemnification of Indemnitees
	 	 	34	 
	12.2 Conditions Precedent to Indemnification
	 	 	37	 
	12.3 No Additional Warranty
	 	 	37	 
	12.4 Indemnification of Receiver and Corporation
	 	 	37	 
	12.5 Obligations Supplemental
	 	 	38	 
	12.6 Criminal Claims
	 	 	38	 
	12.7 Limited Guaranty of the Corporation
	 	 	38	 
	12.8 Subrogation
	 	 	39	 
	 
	 	 	 	 
	ARTICLE XIII. MISCELLANEOUS
	 	 	39	 
	 
	 	 	 	 
	13.1 Expenses
	 	 	39	 












	 	 	 	 	 

	Module I — Whole Bank w/ Optional Shared Loss Agreements

	 	 
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Purchase and Assumption Agreement

	 	 	 	BROOKS VILLE, FLORIDA
	December 8, 2010
	 	 	 	 






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	13.2 Waiver of Jury Trial

	 	 	39	 
	13.3 Consent; Determination or Discretion

	 	 	39	 
	13.4 Rights Cumulative

	 	 	39	 
	13.5 References

	 	 	39	 
	13.6 Notice

	 	 	39	 
	13.7 Entire Agreement

	 	 	40	 
	13.8 Counterparts

	 	 	40	 
	13.9 Governing Law

	 	 	40	 













	 	 	 	 	 

	13.10 Successors

	 	 	41	 
	13.11 Modification

	 	 	41	 
	13.12 Manner of Payment

	 	 	41	 
	13.13 Waiver

	 	 	41	 
	13.14 Severability

	 	 	41	 
	13.15 Term of Agreement

	 	 	41	 
	13.16 Survival of Covenants, Etc.

	 	 	42	 











SCHEDULES




	 	 	 	 	 	     	 
	 	 	 	 	 	 	Page
	Excluded Deposit Liability Accounts
	 	Schedule 2.1(a)	 	44
	Purchase Price of Assets or any other assets
	 	Schedule 3.2	 	45
	Excluded Securities
	 	Schedule 3.5(1)	 	47
	Data Retention Catalog
	 	Schedule 6.3	 	48
	Accounts Excluded from Calculation of Deposit Franchise
Bid Premium
	 	Schedule 7	 	50






EXHIBITS




	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	Final Legal Notice
	 	Exhibit 2.3A	 	51
	Affidavit of Mailing
	 	Exhibit 2.3B	 	53
	Valuation of Certain Qualified Financial Contracts
	 	Exhibit 3.2(c)	 	54
	Interim Asset Servicing Arrangement
	 	Exhibit 4.13	 	56
	Single Family Shared-Loss Agreement
	 	Exhibit 4.15A	 	60
	Commercial Shared-Loss Agreement
	 	Exhibit 4.15B	 	80






			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Purchase and Assumption Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






ii









 






PURCHASE AND ASSUMPTION AGREEMENT



WHOLE BANK



ALL DEPOSITS



     THIS AGREEMENT, made and entered into as of the 29th day of APRIL 2011,
by and
among the FEDERAL DEPOSIT INSURANCE CORPORATION, RECEIVER of CORTEZ COMMUNITY BANK, BROOKSVILLE,
FLORIDA (the “Receiver”), PREMIER AMERICAN BANK, NATIONAL ASSOCIATION, organized under the laws of
the United States of America, and having its principal place of business in MIAMI, FLORIDA (the
"Assuming Institution”), and the FEDERAL DEPOSIT INSURANCE CORPORATION, organized under the laws of
the United States of America and having its principal office in Washington, D.C., acting in its
corporate capacity (the “Corporation”).



R E C I T A L S



A. On the Bank Closing Date, the Chartering Authority closed CORTEZ COMMUNITY BANK (the “Failed
Bank”) pursuant to applicable law and the Corporation was appointed Receiver thereof.



B. The Assuming Institution desires to purchase certain assets and assume certain deposits and
other liabilities of the Failed Bank on the terms and conditions set forth in this Agreement.



C. Pursuant to 12 U.S.C. § 1823(c)(2)(A), the Corporation may provide assistance to the Assuming
Institution to facilitate the transactions contemplated by this Agreement, which assistance may
include indemnification pursuant to Article XII.



D. The Board of Directors of the Corporation (the “Board”) has determined to provide assistance to
the Assuming Institution on the terms and subject to the conditions set forth in this Agreement.



E. The Board has determined pursuant to 12 U.S.C. § 1823(c)(4)(A) that such assistance is necessary
to meet the obligation of the Corporation to provide insurance coverage for the insured deposits in
the Failed Bank and is the least costly to the deposit insurance fund of all possible methods for
meeting such obligation.




     NOW, THEREFORE, in consideration of the mutual promises herein set forth and other valuable
consideration, the parties hereto agree as follows:



			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Purchase and Assumption Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






1









 






A G R E E M E N T




ARTICLE I. GENERAL.




     1.1. Purpose. The purpose of this Agreement is to set forth requirements regarding, among
other things, the terms and conditions on which the Assuming Institution purchases certain assets
and assumes certain liabilities of the Failed Bank.



     1.2. Shared-Loss Agreements. If the Receiver and the Assuming Institution desire to share
losses and recoveries on certain acquired assets, a Shared-Loss Agreement or Shared-Loss Agreements
are attached hereto as Exhibit 4.15A and/or Exhibit 4.15B, as applicable, and will
govern the terms of any such shared-loss arrangement. To the extent that any inconsistencies may
arise between the terms of this Agreement and a Shared-Loss Agreement with respect to the subject
matter of a Shared-Loss Agreement, the terms of the applicable Shared-Loss Agreement shall control.



     1.3 Defined Terms. Capitalized terms used in this Agreement shall have the meanings set
forth or referenced in this Section 1.3. As used herein, words imparting the singular include the
plural and vice versa.



     “Acquired Subsidiary” or “Acquired Subsidiaries” means one or more, as applicable,
Subsidiaries of the Failed Bank acquired pursuant to Section 3.1.



     “Affiliate” of any Person means any director, officer, or employee of that Person and any
other Person (i) who is directly or indirectly controlling, or controlled by, or under direct or
indirect common control with, such Person, or (ii) who is an affiliate of such Person as the term
“affiliate” is defined in § 2(k) of the Bank Holding Company Act of 1956, as amended, 12 U.S.C. §
1841.



     “Agreement” means this Purchase and Assumption Agreement by and among the Assuming
Institution, the Corporation and the Receiver, as amended or otherwise modified from time to time.



     “Assets” means all assets of the Failed Bank purchased pursuant to Section 3.1. Assets owned
by Subsidiaries of the Failed Bank are not “Assets” within the meaning of this definition by virtue
of being owned by such Subsidiaries.



     “Assumed Deposits” means Deposits.



     “Assuming Institution” has the meaning set forth in the introduction to this Agreement.



     “Bank Closing Date” means the close of business of the Failed Bank on the date on which the
Chartering Authority closed such institution.



     “Bank Premises” means the banking buildings, drive-in banking facilities, teller facilities
(staffed or automated), storage and service facilities, structures connecting remote facilities to
banking houses, land on which the foregoing are located and unimproved land, together with any
adjacent parking, that are owned or leased by the Failed Bank and that have



			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Purchase and Assumption Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






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formerly been utilized, are currently utilized, or are intended to be utilized in the future
by the Failed Bank as shown on the Failed Bank Records as of the Bank Closing Date.




     “Bid Amount” has the meaning set forth in Article VII.



     “Bid Valuation Date” means March 7, 2011.



     “Board” has the meaning set forth in Recital D.



     “Book Value” means, with respect to any Asset and any Liability Assumed, the dollar amount
thereof stated on the Failed Bank Records. The Book Value of any item shall be determined as of the
Bank Closing Date after adjustments made by the Receiver for differences in accounts, suspense
items, unposted debits and credits and other similar adjustments or corrections and for setoffs,
whether voluntary or involuntary. The Book Value of an Acquired Subsidiary shall be determined from
the investment in subsidiary and related accounts on the “bank only” (unconsolidated) balance sheet
of the Failed Bank based on the equity method of accounting. Without limiting the generality of the
foregoing, (i) the Book Value of a Liability Assumed shall include all accrued and unpaid interest
thereon as of the Bank Closing Date, and (ii) the Book Value of a Loan shall reflect adjustments
for earned interest, or unearned interest (as it relates to the “rule of 78s” or add-on-interest
loans, as applicable), if any, as of the Bank Closing Date, adjustments for the portion of earned
or unearned loan-related credit life and/or disability insurance premiums, if any, attributable to
the Failed Bank as of the Bank Closing Date, and adjustments for Failed Bank Advances, if any, in
each case as determined for financial reporting purposes. The Book Value of an Asset shall not
include any adjustment for loan premiums, discounts or any related deferred income, fees or
expenses, or general or specific reserves on the Failed Bank Records.



     “Business Day” means a day other than a Saturday, Sunday, Federal legal holiday or legal
holiday under the laws of the State where the Failed Bank is located, or a day on which the
principal office of the Corporation is closed.



     “Chartering Authority” means (i) with respect to a national bank, the Office of the
Comptroller of the Currency, (ii) with respect to a Federal savings association or savings bank,
the Office of Thrift Supervision, (iii) with respect to a bank or savings institution chartered by
a State, the agency of such State charged with primary responsibility for regulating and/or closing
banks or savings institutions, as the case may be, (iv) the Corporation in accordance with 12
U.S.C. § 1821(c)(4), with regard to self appointment, or (v) the appropriate Federal banking agency
in accordance with 12 U.S.C. § 1821(c)(9).



     “Commitment” means the unfunded portion of a line of credit or other commitment reflected on
the books and records of the Failed Bank to make an extension of credit (or additional advances
with respect to a Loan) that was legally binding on the Failed Bank as of the Bank Closing Date,
other than extensions of credit pursuant to the credit card business and overdraft protection plans
of the Failed Bank, if any.



     “Corporation” has the meaning set forth in the introduction to this Agreement.



     “Counterclaim” has the meaning set forth in Section 12.1(b).



			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Purchase and Assumption Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






3









 






     “Credit Documents” means the agreements, instruments, certificates or other documents at any
time evidencing or otherwise relating to, governing or executed in connection with or as security
for, a Loan, including without limitation notes, bonds, loan agreements, letter of credit
applications, lease financing contracts, banker’s acceptances, drafts, interest protection
agreements, currency exchange agreements, repurchase agreements, reverse repurchase agreements,
guarantees, deeds of trust, mortgages, assignments, security agreements, pledges, subordination or
priority agreements, lien priority agreements, undertakings, security instruments, certificates,
documents, legal opinions, participation agreements and intercreditor agreements, and all
amendments, modifications, renewals, extensions, rearrangements, and substitutions with respect to
any of the foregoing.



     “Credit File” means all Credit Documents and all other credit, collateral or insurance
documents in the possession or custody of the Assuming Institution, or any of its Subsidiaries or
Affiliates, relating to an Asset or a Loan included in a Put Notice, or copies of any such
documents.



     “Deposit” means a deposit as defined in 12 U.S.C. § 1813(l), including without limitation,
outstanding cashier’s checks and other official checks and all uncollected items included in the
depositors’ balances and credited on the books and records of the Failed Bank; provided that the
term “Deposit” shall not include all or any portion of those deposit balances which, in the
discretion of the Receiver or the Corporation, (i) may be required to satisfy it for any liquidated
or contingent liability of any depositor arising from an unauthorized or unlawful transaction, or
(ii) may be needed to provide payment of any liability of any depositor to the Failed Bank or the
Receiver, including the liability of any depositor as a director or officer of the Failed Bank,
whether or not the amount of the liability is or can be determined as of the Bank Closing Date.



     “Deposit Secured Loan” means a loan in which the only collateral securing the loan is Assumed
Deposits or deposits at other insured depository institutions.



     “Electronically Stored Information” means any system backup tapes, any electronic mail
(whether on an exchange or other similar system), any data on personal computers and any data on
server hard drives.



     “Eligible Individuals” has the meaning set forth in Section 4.12.



     “ERISA” has the meaning set forth in Section 4.12.



     “Failed Bank” has the meaning set forth in Recital A.



     “Failed Bank Advances” means the total sums paid by the Failed Bank to (i) protect its lien
position, (ii) pay ad valorem taxes and hazard insurance and (iii) pay premiums for credit life
insurance, accident and health insurance and vendor’s single interest insurance.



     “Failed Bank Records” means Records of the Failed Bank, including but not limited to, its
corporate minutes, general ledger and subsidiary ledgers and schedules which support the general
ledger balances.



			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Purchase and Assumption Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






4









 






     “Fair Market Value” means:



          (a) “Market Value” as defined in the regulation prescribing the standards for real estate
appraisals used in federally related transactions, 12 C.F.R. § 323.2(g), and accordingly shall mean
the most probable price which a property should bring in a competitive and open market under all
conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably,
and assuming the price is not affected by undue stimulus. Implicit in this definition is the
assumed consummation of a sale as of a specified date and the passing of title from seller to buyer
under conditions whereby:





          (i) Buyer and seller are typically motivated;




          (ii) Both parties are well informed or well advised, and acting in what they consider
their own best interests;




          (iii) A reasonable time is allowed for exposure in the open market;




          (iv) Payment is made in terms of cash in U.S. dollars or in terms of financial
arrangements comparable thereto; and




          (v) The price represents the normal consideration for the property sold unaffected by
special or creative financing or sales concessions granted by anyone associated with the
sale;



as determined as of the Bank Closing Date by an appraiser chosen by the Assuming
Institution from a list of acceptable appraisers provided by the Receiver; any costs and
fees associated with such determination shall be shared equally by the Receiver and the
Assuming Institution, and


          with respect to Bank Premises (to the extent, if any, that Bank
Premises are purchased utilizing this valuation method), shall be determined not later than
sixty (60) days after the Bank Closing Date by an appraiser selected by the Receiver and the
Assuming Institution within seven (7) days after the Bank Closing Date; or



          (b) with respect to property other than Bank Premises purchased utilizing this valuation
method, the price therefore as established by the Receiver and agreed to by the Assuming
Institution, or in the absence of such agreement, as determined in accordance with clause (a)
above.




     “FDIC Office Space” has the meaning set forth in Section 4.11.



     “Final Legal Notice” has the meaning set forth in Section 2.3(a).



     “Fixtures” means those leasehold improvements, additions, alterations and installations
constituting all or a part of Bank Premises and which were acquired, added, built, installed or
purchased at the expense of the Failed Bank, regardless of the holder of legal title thereto as of
the Bank Closing Date.



     “Furniture and Equipment” means the furniture and equipment (other than Safe Deposit Boxes,
Personal Computers, Owned Data Management Equipment and motor vehicles), leased or owned by the
Failed Bank and reflected on the Failed Bank Records as of the Bank



			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Purchase and Assumption Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






5









 





Closing Date and located on or at Bank Premises, including without limitation automated teller
machines, carpeting, furniture, office machinery, shelving, office supplies, telephone,
surveillance and security systems, ancillary equipment and artwork. Furniture and equipment located
at a storage facility not adjacent to a Bank Premises are excluded from this definition.




     “GSE” means a government sponsored enterprise.



     “Indemnitees” means, except as provided in Section 12.1(b)(xi), (i) the Assuming Institution,
(ii) the Subsidiaries and Affiliates of the Assuming Institution other than any Subsidiaries or
Affiliates of the Failed Bank that are or become Subsidiaries or Affiliates of the Assuming
Institution and (iii) the directors, officers, employees and agents of the Assuming Institution and
its Subsidiaries and Affiliates who are not also present or former directors, officers, employees
or agents of the Failed Bank or of any Subsidiary or Affiliate of the Failed Bank.



     “Information Package” means the most recent compilation of financial and other data with
respect to the Failed Bank, including any amendments or supplements thereto, provided to the
Assuming Institution by the Corporation on the web site used by the Corporation to market the
Failed Bank to potential acquirers.



     “Initial Payment” means the payment made pursuant to Article VII (based on the best
information available as of the Bank Closing Date), the amount of which shall be either (i) if the
Bid Amount is positive, the aggregate Book Value of the Liabilities Assumed minus the sum of the
aggregate purchase price of the Assets as determined pursuant to Section 3.2 and assets purchased
and the positive Bid Amount, or (ii) if the Bid Amount is negative, the sum of the aggregate Book
Value of the Liabilities Assumed and the negative Bid Amount minus the aggregate purchase price of
the Assets and assets purchased. The Initial Payment shall be payable by the Corporation to the
Assuming Institution if (i) the Liabilities Assumed are greater than the sum of the positive Bid
Amount and the Assets and any other assets purchased, or if (ii) the sum of the Liabilities Assumed
and the negative Bid Amount are greater than the Assets and assets purchased. The Initial Payment
shall be payable by the Assuming Institution to the Corporation if (i) the Liabilities Assumed are
less than the sum of the positive Bid Amount and the Assets and assets purchased, or if (ii) the
sum of the Liabilities Assumed and the negative Bid Amount is less than the Assets and assets
purchased. Such Initial Payment shall be subject to adjustment as provided in Article VIII.



     “Leased Data Management Equipment” means any equipment, computer hardware, computer software
(and the lease or licensing agreements related thereto), computer networking equipment, printers,
fax machines, copiers, document scanners, data tape systems, data tapes, DVDs, CDs, flash drives,
telecommunications and check processing equipment and any other electronic storage media leased by
the Failed Bank at Bank Closing which is, was, or could have been used by the Failed Bank in
connection with data management activities.



     “Legal Balance” means the amount of indebtedness legally owed by an Obligor with respect to a
Loan, including principal and accrued and unpaid interest, late fees, attorneys’ fees and expenses,
taxes, insurance premiums, and similar charges, if any.



			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Purchase and Assumption Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






6









 






     “Liabilities Assumed” has the meaning provided in Section 2.1.



     “Lien” means any mortgage, lien, pledge, charge, assignment for security purposes, security
interest or encumbrance of any kind with respect to an Asset, including any conditional sale
agreement or capital lease or other title retention agreement relating to such Asset.



     “Loan” or “Loans” means, individually or collectively, all of the following owed to or held by
the Failed Bank as of the Bank Closing Date:




     (a) loans (including loans which have been charged off the Failed Bank Records in whole
or in part prior to and including the Bid Valuation Date), participation agreements,
interests in participations, overdrafts of customers (including but not limited to
overdrafts made pursuant to an overdraft protection plan or similar extensions of credit in
connection with a deposit account), revolving commercial lines of credit, home equity lines
of credit, Commitments, United States and/or State-guaranteed student loans and lease
financing contracts;




     (b) all Liens, rights (including rights of set-off), remedies, powers, privileges,
demands, claims, priorities, equities and benefits owned or held by, or accruing or to
accrue to or for the benefit of, the holder of the obligations or instruments referred to in
clause (a) above, including but not limited to those arising under or based upon Credit
Documents, casualty insurance policies and binders, standby letters of credit, mortgagee
title insurance policies and binders, payment bonds and performance bonds at any time and
from time to time existing with respect to any of the obligations or instruments referred to
in clause (a) above; and




     (c) all amendments, modifications, renewals, extensions, refinancings and refundings of
or for any of the foregoing.



     “Obligor” means each Person liable for the full or partial payment or performance of any Loan,
whether such Person is obligated directly, indirectly, primarily, secondarily, jointly or
severally.



     “Other Real Estate” means all interests in real estate (other than Bank Premises and
Fixtures), including but not limited to mineral rights, leasehold rights, condominium and
cooperative interests, easements, air rights and development rights that are owned by the Failed
Bank.



     “Owned Data Management Equipment” means any equipment, computer hardware, computer software
(and the lease or licensing agreements related thereto), computer networking equipment, printers,
fax machines, copiers, document scanners, data tape systems, data tapes, DVDs, CDs, flash drives,
telecommunications and check processing equipment and any other electronic storage media owned by
the Failed Bank at Bank Closing which is, was, or could have been used by the Failed Bank in
connection with data management activities.



     “Payment Date” means the first Business Day after the Bank Closing Date.



			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Purchase and Assumption Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






7









 






     “Person” means any individual, corporation, partnership, joint venture, association, limited
liability company, limited liability partnership, joint-stock company, trust, unincorporated
organization, or government or any agency or political subdivision thereof, excluding the
Corporation.



     “Personal Computer(s)” means computers based on a microprocessor generally designed to be used
by one person at a time and which usually store informational data on that computer’s internal hard
drive or attached peripheral, and associated peripherals (such as keyboard, mouse, etc.). A
personal computer can be found in various configurations such as laptops, net books, and desktops.



     “Primary Indemnitor” means any Person (other than the Assuming Institution or any of its
Affiliates) who is obligated to indemnify or insure, or otherwise make payments (including payments
on account of claims made against) to or on behalf of any Person in connection with the claims
covered under Article XII, including without limitation any insurer issuing any directors and
officers liability policy or any Person issuing a financial institution bond or banker’s blanket
bond.



     “Pro Forma” means a balance sheet that reflects a reasonably accurate financial statement of
the Failed Bank through the Bank Closing Date and serves as a basis for the opening entries of both
the Assuming Institution and the Receiver.



     “Put Date” has the meaning set forth in Section 3.4(d).



     “Put Notice” has the meaning set forth in Section 3.4(c).



     “Qualified Beneficiaries” has the meaning set forth in Section 4.12.



     “Qualified Financial Contract” means a qualified financial contract as defined in 12 U.S.C. §
1821(e)(8)(D).



     “Record” means any document, microfiche, microfilm or Electronically Stored Information
(including but not limited to magnetic tape, disc storage, card forms and printed copy) of the
Failed Bank generated or maintained by the Failed Bank that is owned by or in the possession of the
Receiver at the Bank Closing Date.



     “Receiver” has the meaning set forth in the introduction to this Agreement.



     “Related Liability” with respect to any Asset means any liability existing and reflected on
the Failed Bank Records as of the Bank Closing Date for (i) indebtedness secured by mortgages,
deeds of trust, chattel mortgages, security interests or other liens on or affecting such Asset,
(ii) ad valorem taxes applicable to such Asset and (iii) any other obligation determined by the
Receiver to be directly related to such Asset.



     “Related Liability Amount” with respect to any Related Liability on the books of the Assuming
Institution, means the amount of such Related Liability as stated on the Failed Bank Records of the
Assuming Institution (as maintained in accordance with generally accepted accounting principles) as
of the date as of which the Related Liability Amount is being



			
	 	 	 
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determined. With respect to a liability that relates to more than one Asset, the amount of
such Related Liability shall be allocated among such Assets for the purpose of determining the
Related Liability Amount with respect to any one of such Assets.




     Such allocation shall be made by specific allocation, where determinable, and otherwise shall
be pro rata based upon the dollar amount of such Assets stated on the Failed Bank Records of the
entity that owns such Asset.



     “Repurchase Price” means, with respect to any Asset, first taking the Book Value of the Asset
at the Bank Closing Date and either subtracting the pro rata Asset discount or adding the pro rata
Asset premium, and subsequently adjusting that amount (i) for any advances and interest on such
Asset after the Bank Closing Date, (ii) by subtracting the total amount received by the Assuming
Institution for such Asset after the Bank Closing Date, regardless of how applied and (iii) by
adding total disbursements of principal made by the Receiver not otherwise included in the Book
Value.



     “Safe Deposit Boxes” means the safe deposit boxes of the Failed Bank, if any, including the
removable safe deposit boxes and safe deposit stacks in the Failed Bank’s vault(s), all rights and
benefits under rental agreements with respect to such safe deposit boxes, and all keys and
combinations thereto.



     “Settlement Date” means the first Business Day immediately prior to the day which is three
hundred sixty-five (365) days after the Bank Closing Date, or such other date prior thereto as may
be agreed upon by the Receiver and the Assuming Institution. The Receiver, in its discretion, may
extend the Settlement Date.



     “Settlement Interest Rate” means, for the first calendar quarter or portion thereof during
which interest accrues, the rate determined by the Receiver to be equal to the investment rate on
twenty-six (26)-week United States Treasury Bills as published on the Bank Closing Date by the
United States Treasury on the TreasuryDirect.gov website; provided, that if no such Investment Rate
is published the week of the Bank Closing Date, the investment rate for such Treasury Bills most
recently published by the United States Treasury on TreasuryDirect.gov prior to the Bank Closing
Date shall be used. Thereafter, the rate shall be adjusted to the rate determined by the Receiver
to be equal to the Investment Rate on such Treasury Bills in effect as of the first day of each
succeeding calendar quarter during which interest accrues as published by the United States
Treasury on the TreasuryDirect.gov website.



     “Shared-Loss Agreements” means, if any, the Single Family Shared-Loss Agreement attached
hereto as Exhibit 4.15A and, if any, the Commercial Shared-Loss Agreement, attached hereto
as Exhibit 4.15B.



     “Subsidiary” has the meaning set forth in § 3(w)(4) of the Federal Deposit Insurance Act, 12
U.S.C. § 1813(w)(4), as amended.



ARTICLE II. ASSUMPTION OF LIABILITIES.




     2.1. Liabilities Assumed by Assuming Institution. The Assuming Institution expressly
assumes at Book Value (subject to adjustment pursuant to Article VIII) and agrees to



			
	 	 	 
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pay, perform and discharge, all of the following liabilities of the
Failed Bank as of the Bank Closing Date, except as otherwise provided in this Agreement (such
liabilities referred to as “Liabilities Assumed”):




          (a) Assumed Deposits, except those Deposits specifically listed on Schedule 2.1;
provided, that as to any Deposits of public money which are Assumed Deposits, the Assuming
Institution agrees to properly secure such Deposits with such Assets as appropriate which, prior to
the Bank Closing Date, were pledged as security by the Failed Bank, or with assets of the Assuming
Institution, if such securing Assets, if any, are insufficient to properly secure such Deposits;




          (b) liabilities for indebtedness secured by mortgages, deeds of trust, chattel mortgages,
security interests or other liens on or affecting any Assets, if any; provided, that the amount of
any liability assumed pursuant to this Section 2.1(b) shall be limited to the market value of the
Assets securing such liability as determined by the Receiver;




          (c) all borrowings from, and obligations and indebtedness to, Federal Reserve Banks and
Federal Home Loan Banks, if any, whether currently owed, or conditional or not yet matured,
including but not limited to, if applicable, (i) advances, including principal, interest, and any
prepayment fees, costs and expenses; (ii) letters of credit, including any reimbursement
obligations; (iii) acquired member assets programs, including representations, warranties, credit
enhancement obligations and servicing obligations; (iv) affordable housing programs, including
retention agreements and other contracts and monitoring obligations; (v) swaps and other
derivatives; and (vi) safekeeping and custody agreements, provided, that the assumption of any
liability pursuant to this Section 2.1(c) shall be limited to the market value of the assets
securing such liability as determined by the Receiver; and overdrafts, debit balances, service
charges, reclamations and adjustments to accounts with the Federal Reserve Banks as reflected on
the books and records of any such Federal Reserve Bank within ninety (90) days after the Bank
Closing Date, if any;




          (d) ad valorem taxes applicable to any Asset, if any; provided, that the assumption of any ad
valorem taxes pursuant to this Section 2.1(d) shall be limited to an amount equal to the market
value of the Asset to which such taxes apply as determined by the Receiver;




          (e) liabilities, if any, for federal funds purchased, repurchase agreements and overdrafts in
accounts maintained with other depository institutions (including any accrued and unpaid interest
thereon computed to and including the Bank Closing Date); provided, that the assumption of any
liability pursuant to this Section 2.1(e) shall be limited to the market value of the Assets
securing such liability as determined by the Receiver;




          (f) United States Treasury tax and loan note option accounts, if any;




          (g) liabilities for any acceptance or commercial letter of credit provided, that the
assumption of any liability pursuant to this Section 2.1(g) shall be limited to the market value of
the Assets securing such liability as determined by the Receiver;




			
	 	 	 
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          (h) liabilities for any “standby letters of credit” as defined in 12 C.F.R. § 337.2(a) issued
on the behalf of any Obligor of a Loan acquired hereunder by the Assuming Institution, but
excluding any other standby letters of credit;




          (i) duties and obligations assumed pursuant to this Agreement including without limitation
those relating to the Failed Bank’s Records, credit card business, debit card business, stored
value and gift card business, overdraft protection plans, safe deposit business, safekeeping
business and trust business, if any;




          (j) liabilities, if any, for Commitments;




          (k) liabilities, if any, for amounts owed to any Acquired Subsidiary;




          (l) liabilities, if any, with respect to Qualified Financial Contracts;




          (m) liabilities, if any, under any contract pursuant to which mortgage servicing is provided
to the Failed Bank by others; and




          (n) all asset-related offensive litigation liabilities and all asset-related defensive
litigation liabilities, but only to the extent such liabilities relate to assets subject to a
Shared-Loss Agreement, and provided that all other defensive litigation and any class actions with
respect to credit card business are retained by the Receiver.




     2.2. Interest on Deposit Liabilities. The Assuming Institution agrees that, from and after the Bank Closing Date, it will accrue
and pay interest on Assumed Deposits pursuant to Section 2.1 at a rate(s) it shall determine;
provided, that for non-transaction Deposit liabilities such rate(s) shall not be less than the
lowest rate offered by the Assuming Institution to its depositors for non-transaction deposit
accounts. The Assuming Institution shall permit each depositor to withdraw, without penalty for
early withdrawal, all or any portion of such depositor’s Deposit, whether or not the Assuming
Institution elects to pay interest in accordance with any deposit agreement formerly existing
between the Failed Bank and such depositor; and further provided, that if such Deposit has been
pledged to secure an obligation of the depositor or other party, any withdrawal thereof shall be
subject to the terms of the agreement governing such pledge. The Assuming Institution shall give
notice to such depositors as provided in Section 5.3 of the rate(s) of interest which it has
determined to pay and of such withdrawal rights.




     2.3. Unclaimed Deposits.



          (a) Final Legal Notice. Fifteen (15) months following the Bank Closing Date, the
Assuming Institution will provide the Receiver a listing of all deposit accounts, including the
type of account, not claimed by the depositor. The Receiver will review the list and authorize the
Assuming Institution to act on behalf of the Receiver to send a Final Legal Notice in a form
substantially similar to Exhibit 2.3A (the “Final Legal Notice”) to the owner(s) of the
unclaimed deposits reminding them of the need to claim or arrange to continue their account(s) with
the Assuming Institution. The Assuming Institution will send the Final Legal Notice to the
depositors within thirty (30) days following notification of the Receiver’s authorization. The
Assuming Institution will prepare an Affidavit of Mailing in a form substantially similar to




			
	 	 	 
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Exhibit 2.3B and will forward the Affidavit of Mailing to the Receiver after mailing out
the Final Legal Notice to the owner(s) of unclaimed deposit accounts.




          (b) Unclaimed Deposits. If, within eighteen (18) months after the Bank Closing Date,
any depositor of the Failed Bank does not claim or arrange to continue such depositor’s Assumed
Deposits at the Assuming Institution, the Assuming Institution shall, within fifteen (15) Business
Days after the end of such eighteen (18) month period, (i) refund to the Receiver the full amount
of each such Deposit (without reduction for service charges), (ii) provide to the Receiver a
schedule of all such refunded Deposits in such form as may be prescribed by the Receiver, and (iii)
assign, transfer, convey, and deliver to the Receiver, all right, title and interest of the
Assuming Institution in and to the Records previously transferred to the Assuming Institution and
other records generated or maintained by the Assuming Institution pertaining to such Deposits.
During such eighteen (18) month period, at the request of the Receiver, the Assuming Institution
promptly shall provide to the Receiver schedules of unclaimed Deposits in such form as may be
prescribed by the Receiver.




     2.4. Employee Plans. Except as provided in Section 4.12, the Assuming Institution shall have no liabilities,
obligations or responsibilities under the Failed Bank’s health care, bonus, vacation, pension,
profit sharing, deferred compensation, 401k or stock purchase plans or similar plans, if any,
unless the Receiver and the Assuming Institution agree otherwise subsequent to the date of this
Agreement.



ARTICLE III. PURCHASE OF ASSETS.




     3.1. Assets Purchased by Assuming Institution. With the exception of certain assets expressly excluded in Sections 3.5 and 3.6 and, if
applicable, listed on Schedule 3.5(l) the Assuming Institution hereby purchases from the Receiver,
and the Receiver hereby sells, assigns, transfers, conveys and delivers to the Assuming
Institution, all right, title and interest of the Receiver in and to all of the assets (real,
personal and mixed, wherever located and however acquired) including all subsidiaries, joint
ventures, partnerships and any and all other business combinations or arrangements, whether active,
inactive, dissolved or terminated, of the Failed Bank whether or not reflected on the books of the
Failed Bank as of the Bank Closing Date. Assets are purchased hereunder by the Assuming Institution
subject to all liabilities for indebtedness collateralized by Liens affecting such Assets to the
extent provided in Section 2.1.



     3.2. Asset Purchase Price.




          (a) Determination of Asset Purchase Price. All Assets and assets of the Failed Bank
subject to an option to purchase by the Assuming Institution shall be purchased for the
amount, or the amount resulting from the method specified for determining the amount, as
specified on Schedule 3.2, except as otherwise may be provided herein. Any Asset, asset of
the Failed Bank subject to an option to purchase or other asset purchased for which no purchase
price is specified on Schedule 3.2 or otherwise herein shall be purchased at its Book
Value. Loans or other assets charged off on the Failed Bank Records before the Bid Valuation Date
shall be purchased at a price of zero. The purchase price for Acquired Subsidiaries shall be
adjusted pursuant to Section 4.6(i)(iv), if applicable.




			
	 	 	 
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          (b) Purchase Price for Securities. The purchase price for securities (other than the
capital stock of any Acquired Subsidiary and Federal Home Loan Bank stock) purchased under Section
3.1 by the Assuming Institution shall be the market value thereof as of the Bank Closing Date,
which market value shall be (i) the market price for each such security quoted at the close of the
trading day effective on the Bank Closing Date as published electronically by Bloomberg, L.P., or
alternatively, at the discretion of the Receiver, IDC/Financial Times (FT) Interactive Data; (ii)
provided that if such market price is not available for any such security, the Assuming Institution
will submit a bid for each such security within three days of notification/bid request by the
Receiver (unless a different time period is agreed to by the Assuming Institution and the Receiver)
and the Receiver, in its sole and absolute discretion, will accept or reject each such bid; and
(iii) further provided that in the absence of an acceptable bid from the Assuming Institution, each
such security shall not pass to the Assuming Institution and shall be deemed to be an excluded
asset hereunder and listed on Schedule 3.5(l).




          (c) Purchase Price for Qualified Financial Contracts. Qualified Financial Contracts
shall be purchased at market value determined in accordance with the terms of Exhibit
3.2(c). Any costs associated with such valuation shall be shared equally by the Receiver and
the Assuming Institution.




     3.3. Manner of Conveyance; Limited Warranty; Nonrecourse; Etc.
THE CONVEYANCE OF ALL ASSETS, INCLUDING REAL AND PERSONAL PROPERTY INTERESTS, PURCHASED BY THE
ASSUMING INSTITUTION UNDER THIS AGREEMENT SHALL BE MADE, AS NECESSARY, BY RECEIVER’S DEED OR
RECEIVER’S BILL OF SALE, "AS IS", "WHERE IS", WITHOUT RECOURSE AND, EXCEPT AS OTHERWISE
SPECIFICALLY PROVIDED IN THIS AGREEMENT, WITHOUT ANY WARRANTIES WHATSOEVER WITH RESPECT TO SUCH
ASSETS, EXPRESS OR IMPLIED, WITH RESPECT TO TITLE, VALUE, COLLECTIBILITY, GENUINENESS,
ENFORCEABILITY, DOCUMENTATION, CONDITION OR FREEDOM FROM LIENS OR
ENCUMBRANCES (IN-WHOLE OR IN-PART), OR ANY OTHER MATTERS.



     3.4.
Puts of Assets to the Receiver.



          (a) Puts Within 30 Days After the Bank Closing Date. During the thirty (30) day period
following the Bank Closing Date and only during such period (which thirty (30)-day period may be
extended in writing in the sole and absolute discretion of the Receiver for any
Loan), in accordance with this Section 3.4, the Assuming Institution shall be entitled to
require the Receiver to purchase any Deposit Secured Loan transferred to the Assuming Institution
pursuant to Section 3.1 which is not fully secured by Assumed Deposits or deposits at other insured
depository institutions due to either insufficient Assumed Deposit or deposit collateral or
deficient documentation regarding such collateral; provided that with regard to any Deposit Secured
Loan secured by an Assumed Deposit:





          (i) no such purchase may be required until any Deposit setoff determination, whether
voluntary or involuntary, has been made; and



			
	 	 	 
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          (ii) the Assuming Institution shall be entitled to require the Receiver to purchase,
within a reasonable time, any remaining overdraft transferred to the Assuming Institution
pursuant to Section 3.1 which existed on the thirtieth (30th) day following the Bank Closing
Date and which was made after the Bid Valuation Date and not made pursuant to an overdraft
protection plan or similar extension of credit.



               Notwithstanding the foregoing, the Assuming Institution shall not have the right to
require the Receiver to purchase any Loan if (i) the Obligor with respect to such Loan is an
Acquired Subsidiary, or (ii) the Assuming Institution has:




          (A) made any advance in accordance with the terms of a Commitment or otherwise
with respect to such Loan;




          (B) taken any action that increased the amount of a Related Liability with
respect to such Loan over the amount of such liability immediately prior to the
time of such action;




          (C) created or permitted to be created any Lien on such Loan which secures
indebtedness for money borrowed or which constitutes a conditional sales agreement,
capital lease or other title retention agreement;




          (D) entered into, agreed to make, grant or permit, or made, granted or
permitted any modification or amendment to, any waiver or extension with respect
to, or any renewal, refinancing or refunding of, such Loan or related Credit
Documents or collateral, including, without limitation, any act or omission which
diminished such collateral; or




          (E) sold, assigned or transferred all or a portion of such Loan to a third
party (whether with or without recourse).




          (iii) The Assuming Institution shall transfer all such Assets to the Receiver without
recourse, and shall indemnify the Receiver against any and all claims of any Person claiming
by, through or under the Assuming Institution with respect to any such Asset, as provided in
Section 12.4.



          (b) Puts Prior to the Settlement Date. During the period from the Bank Closing Date
to and including the Business Day immediately preceding the Settlement Date, the Assuming
Institution shall be entitled to require the Receiver to purchase any Asset which the
Assuming Institution can establish is evidenced by forged or stolen instruments as of the Bank
Closing Date; provided that the Assuming Institution shall not have the right to require
the Receiver to purchase any such Asset with respect to which the Assuming Institution has taken
any action referred to in Section 3.4(a)(ii) with respect to such Asset. The Assuming Institution
shall transfer all such Assets to the Receiver without recourse, and shall indemnify the Receiver
against any and all claims of any Person claiming by, through or under the Assuming Institution
with respect to any such Asset, as provided in Section 12.4.




			
	 	 	 
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          (c) Notices to the Receiver. In the event that the Assuming Institution elects to
require the Receiver to purchase one or more Assets, the Assuming Institution shall deliver to the
Receiver a notice (a “Put Notice”) which shall include:





          (i) a list of all Assets that the Assuming Institution requires the Receiver to
purchase;




          (ii) a list of all Related Liabilities with respect to the Assets identified pursuant
to (i) above; and




          (iii) a statement of the estimated Repurchase Price of each Asset identified pursuant
to (i) above as of the applicable Put Date.



               Such notice shall be in the form prescribed by the Receiver or such other form to which the
Receiver shall consent. As provided in Section 9.6, the Assuming Institution shall deliver to the
Receiver such documents, Credit Files and such additional information relating to the subject
matter of the Put Notice as the Receiver may request and shall provide to the Receiver full access
to all other relevant books and Records.



          (d) Purchase by Receiver. The Receiver shall purchase Assets that are specified in
the Put Notice and shall assume Related Liabilities with respect to such Assets, and the transfer
of such Assets and Related Liabilities shall be effective as of a date determined by the Receiver
which date shall not be later than thirty (30) days after receipt by the Receiver of the Put Notice
(the “Put Date”).




          (e) Purchase Price and Payment Date. Each Asset purchased by the Receiver pursuant to
this Section 3.4 shall be purchased at a price equal to the Repurchase Price of such Asset less the
Related Liability Amount applicable to such Asset, in each case determined as of the applicable Put
Date. If the difference between such Repurchase Price and such Related Liability Amount is
positive, then the Receiver shall pay to the Assuming Institution the amount of such difference; if
the difference between such amounts is negative, then the Assuming Institution shall pay to the
Receiver the amount of such difference. The Assuming Institution or the Receiver, as the case may
be, shall pay the purchase price determined pursuant to this Section 3.4(e) not later than the
twentieth (20th) Business Day following the applicable Put Date, together with interest on such
amount at the Settlement Interest Rate for the period from and including such Put Date to and
including the day preceding the date upon which payment is made.




          (f) Servicing. The Assuming Institution shall administer and manage any Asset subject
to purchase by the Receiver in accordance with usual and prudent banking standards and business
practices until such time as such Asset is purchased by the Receiver.




          (g) Reversals. In the event that the Receiver purchases an Asset (and assumes the
Related Liability) that it is not required to purchase pursuant to this Section 3.4, the Assuming
Institution shall repurchase such Asset (and assume such Related Liability) from the Receiver at a
price computed so as to achieve the same economic result as would apply if the Receiver had never
purchased such Asset pursuant to this Section 3.4.




			
	 	 	 
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     3.5. Assets Not Purchased by Assuming Institution. The Assuming Institution does not purchase, acquire or assume, or (except as
otherwise
expressly provided in this Agreement) obtain an option to purchase, acquire or assume under this
Agreement:



          (a) any financial institution bonds, banker’s blanket bonds, or public liability, fire,
extended coverage insurance policy, bank owned life insurance or any other insurance policy of the
Failed Bank, or premium refund, unearned premium derived from cancellation, or any proceeds payable
with respect to any of the foregoing;




          (b) any interest, right, action, claim, or judgment against (i) any officer, director,
employee, accountant, attorney, or any other Person employed or retained by the Failed Bank or any
Subsidiary of the Failed Bank on or prior to the Bank Closing Date arising out of any act or
omission of such Person in such capacity, (ii) any underwriter of financial institution bonds,
banker’s blanket bonds or any other insurance policy of the Failed Bank, (iii) any shareholder or
holding company of the Failed Bank, or (iv) any other Person whose action or inaction may be
related to any loss (exclusive of any loss resulting from such Person’s failure to pay on a Loan
made by the Failed Bank) incurred by the Failed Bank; provided that for the purposes hereof, the
acts, omissions or other events giving rise to any such claim shall have occurred on or before the
Bank Closing Date, regardless of when any such claim is discovered and regardless of whether any
such claim is made with respect to a financial institution bond, banker’s blanket bond, or any
other insurance policy of the Failed Bank in force as of the Bank Closing Date;




          (c) prepaid regulatory assessments of the Failed Bank, if any;




          (d) legal or equitable interests in tax receivables of the Failed Bank, if any, including any
claims arising as a result of the Failed Bank having entered into any agreement or otherwise being
joined with another Person with respect to the filing of tax returns or the payment of taxes;




          (e) amounts reflected on the Failed Bank Records as of the Bank Closing Date as a general or
specific loss reserve or contingency account, if any;




          (f) leased or owned Bank Premises and leased or owned Fixtures, Furniture and Equipment
located on leased or owned Bank Premises, if any; provided that the Assuming
Institution does obtain an option under Sections 4.6, 4.7 or 4.8, as the case may be, with
respect thereto;




          (g) owned Bank Premises which the Receiver, in its discretion, determines may contain
environmentally hazardous substances;




          (h) any “goodwill,” as such term is defined in the instructions to the report of condition
prepared by banks examined by the Corporation in accordance with 12 C.F.R. § 304.3, and other
intangibles (other than intellectual property);




          (i) any criminal restitution or forfeiture orders issued in favor of the Failed Bank;




			
	 	 	 
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          (j) any and all prepaid fees or any other income as shown on the books and Records of the
Failed Bank, but not taken into income as of the Bank Closing Date, associated with a line of
business of the Failed Bank which is not assumed pursuant to this Agreement;




          (k) assets essential to the Receiver in accordance with Section 3.6;




          (l) any banker’s bank stock, and the securities listed on the attached Schedule
3.5(l);




          (m) reserved;




          (n) prepaid accounts associated with any contract or agreement that the Assuming Institution
either does not directly assume pursuant to the terms of this Agreement nor has an option to assume
under Section 4.8; and




          (o) except with respect to any Federal Home Loan Bank loans, any contract pursuant to which
the Failed Bank provides mortgage servicing for others.




     3.6. Retention or Repurchase of Assets Essential to Receiver.




          (a) The Receiver may refuse to sell to the Assuming Institution, or the Assuming Institution
agrees, at the request of the Receiver set forth in a written notice to the Assuming Institution,
to sell, assign, transfer, convey, and deliver to the Receiver, all of the Assuming Institution’s
right, title and interest in and to, any Asset or asset essential to the Receiver as determined by
the Receiver in its discretion (together with all Credit Documents evidencing or pertaining
thereto), which may include any Asset or asset that the Receiver determines to be:





          (i) made to an officer, director, or other Person engaging in the affairs of the Failed
Bank, its Subsidiaries or Affiliates or any related entities of any of the foregoing;




          (ii) the subject of any investigation relating to any claim with respect to any item
described in Section 3.5(a) or (b), or the subject of, or potentially the subject of, any
legal proceedings;




          (iii) made to a Person who is an Obligor on a loan owned by the Receiver or the
Corporation in its corporate capacity or its capacity as receiver of any institution;




          (iv) secured by collateral which also secures any asset owned by the Receiver; or




          (v) related to any asset of the Failed Bank not purchased by the
Assuming Institution under this Article III or any liability of the Failed Bank not
assumed by the Assuming Institution under Article II.



			
	 	 	 
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          (vi) Each such Asset or asset purchased by the Receiver shall be purchased at a price
equal to the Repurchase Price thereof less the Related Liability Amount with respect to any
Related Liabilities related to such Asset or asset, in each case determined as of the date
of the notice provided by the Receiver pursuant to Section 3.6(a). The Receiver shall pay
the Assuming Institution not later than the twentieth (20th) Business Day following receipt
of related Credit Documents and Credit Files together with interest on such amount at the
Settlement Interest Rate for the period from and including the date of receipt of such
documents to and including the day preceding the day on which payment is made. The Assuming
Institution agrees to administer and manage each such Asset or asset in accordance with
usual and prudent banking standards and business practices until each such Asset or asset is
purchased by the Receiver. All transfers with respect to Asset or assets under this Section
3.6 shall be made as provided in Section 9.6. The Assuming Institution shall transfer all
such Assets or assets and Related Liabilities to the Receiver without recourse, and shall
indemnify the Receiver against any and all claims of any Person claiming by, through or
under the Assuming Institution with respect to any such Asset or asset, as provided in
Section 12.4.



     3.7. Receiver’s Offer to Sell Withheld Loans. For the period of thirty (30) days commencing the day after the Bank Closing
Date, the
Receiver may sell, in its sole and absolute discretion, and the Assuming Institution, may purchase,
in its sole and absolute discretion, at Book Value as of the Bank Closing Date, any Loans initially
withheld from sale to the Assuming Institution pursuant to Sections 3.5 or 3.6 of this Agreement.
Except for the sales price, Loans sold under this section will be treated as if initially sold
under Section 3.1 of this Agreement, and will be subject to all relevant terms of this Agreement as
similarly situated Loans sold and transferred pursuant to this Agreement, provided that, no Loan
shall be a Shared-Loss Loan pursuant to the Shared-Loss Agreements if it does not meet the
definition of Shared-Loss Loan in the applicable Shared-Loss Agreement. Payment for Loans sold
under this Section 3.7 will be handled through the settlement process pursuant to Article VIII.



ARTICLE
IV. ASSUMPTION OF CERTAIN DUTIES AND OBLIGATIONS.




     4.1. Continuation of Banking Business. For the period commencing on the first banking Business Day after the Bank Closing Date and
ending on the first anniversary of the Bank Closing Date, the Assuming Institution will provide
full service banking in the trade area of the Failed Bank. Thereafter, the Assuming Institution may
cease providing such banking services in the trade area of the Failed Bank, provided the Assuming
Institution has received all necessary regulatory approvals, including the approval of the Receiver
and, if applicable, the Corporation. At the option of the Assuming Institution, such banking
services may be provided at any or all of the Bank Premises, or at other premises within such trade
area, as determined by the Receiver. The Assuming Institution may open, close or sell branches upon
receipt of the necessary regulatory approvals, provided that the Assuming Institution or its
successors continue to provide banking services in the trade area during the period specified in
this Section 4.1. The Assuming Institution will pay to the Receiver, upon the sale of a branch or
branches within the year following the date of this Agreement, fifty percent (50%) of any franchise
premium in excess of the franchise premium paid by the Assuming Institution with respect to such
branch or branches.



			
	 	 	 
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     4.2. Credit Card Business. The Assuming Institution agrees to honor and perform, from and after the Bank Closing Date,
all duties and obligations with respect to the Failed Bank’s credit card business (including issuer
or merchant acquirer) debit card business, stored value and gift card business, and/or processing
related to credit cards, if any, and assumes all extensions of credit or balances outstanding as of
the Bank Closing Date with respect to these lines of business.



     4.3. Safe Deposit Business. The Assuming Institution assumes and agrees to discharge, from and after the Bank Closing
Date, in the usual course of conducting a banking business, the duties and obligations of the
Failed Bank with respect to all Safe Deposit Boxes, if any, of the Failed Bank and to maintain all
of the necessary facilities for the use of such boxes by the renters thereof during the period for
which such boxes have been rented and the rent therefor paid to the Failed Bank, subject to the
provisions of the rental agreements between the Failed Bank and the respective renters of such
boxes; provided, that the Assuming Institution may relocate the Safe Deposit Boxes of the Failed
Bank to any office of the Assuming Institution located in the trade area of the branch of the
Failed Bank in which such Safe Deposit Boxes were located, as determined by the Receiver. The Safe
Deposit Boxes shall be located and maintained in such trade area for a minimum of one year from the
Bank Closing Date.



     4.4. Safekeeping Business. The Receiver transfers, conveys and delivers to the Assuming Institution and the Assuming
Institution accepts all securities and other items, if any, held by the Failed Bank in safekeeping
for its customers as of the Bank Closing Date. The Assuming Institution assumes and agrees to honor
and discharge, from and after the Bank Closing Date, the duties and obligations of the Failed Bank
with respect to such securities and items held in safekeeping. The
Assuming Institution shall provide to the Receiver written verification of all assets held by
the Failed Bank for safekeeping within sixty (60) days after the Bank Closing Date. The assets held
for safekeeping by the Failed Bank shall be held and maintained by the Assuming Institution in the
trade area of the Failed Bank for a minimum of one year from the Bank Closing Date. At the option
of the Assuming Institution, the safekeeping business may be provided at any or all of the Bank
Premises, or at other premises within such trade area, as determined by the Receiver. The Assuming
Institution shall be entitled to all rights and benefits which accrue after the Bank Closing Date
with respect to securities and other items held in safekeeping.



     4.5. Trust Business.



          (a) Assuming Institution as Successor. The Assuming Institution shall, without
further transfer, substitution, act or deed, to the full extent permitted by law, succeed to the
rights, obligations, properties, assets, investments, deposits, agreements, and trusts of the
Failed Bank under trusts, executorships, administrations, guardianships, and agencies, and other
fiduciary or representative capacities, all to the same extent as though the Assuming Institution
had assumed the same from the Failed Bank prior to the Bank Closing Date; provided, that any
liability based on the misfeasance, malfeasance or nonfeasance of the Failed Bank, its directors,
officers, employees or agents with respect to the trust business is not assumed hereunder.




          (b) Wills and Appointments. The Assuming Institution shall, to the full extent
permitted by law, succeed to, and be entitled to take and execute, the appointment to all




			
	 	 	 
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executorships, trusteeships, guardianships and other fiduciary or representative capacities to
which the Failed Bank is or may be named in wills, whenever probated, or to which the Failed Bank
is or may be named or appointed by any other instrument.




          (c) Transfer of Trust Business. In the event additional proceedings of any kind are
necessary to accomplish the transfer of such trust business, the Assuming Institution agrees that,
at its own expense, it will take whatever action is necessary to accomplish such transfer. The
Receiver agrees to use reasonable efforts to assist the Assuming Institution in accomplishing such
transfer.




          (d) Verification of Assets. The Assuming Institution shall provide to the Receiver
written verification of the assets held in connection with the Failed Bank’s trust business within
sixty (60) days after the Bank Closing Date.




     4.6. Bank Premises.




          (a) Option to Purchase. Subject to Section 3.5, the Receiver hereby grants to the
Assuming Institution an exclusive option for the period of ninety (90) days commencing the day
after the Bank Closing Date to purchase any or all owned Bank Premises, including all Fixtures,
Furniture and Equipment located on the Bank Premises. The Assuming Institution shall give written
notice to the Receiver within the option period of its election to purchase or not to purchase any
of the owned Bank Premises. Any purchase of such premises shall be effective as
of the date of the Bank Closing Date and such purchase shall be consummated as soon as
practicable thereafter, and in no event later than the Settlement Date. If the Assuming Institution
gives notice of its election not to purchase one or more of the owned Bank Premises within seven
(7) days of the Bank Closing Date, then, notwithstanding any other provision of this Agreement to
the contrary, the Assuming Institution shall not be liable for any of the costs or fees associated
with Fair Market Value appraisals for such Bank Premises and associated Fixtures, Furniture and
Equipment.




          (b) Option to Lease. The Receiver hereby grants to the Assuming Institution an
exclusive option for the period of ninety (90) days commencing the day after the Bank Closing Date
to cause the Receiver to assign to the Assuming Institution any or all leases for leased Bank
Premises, if any, which have been continuously occupied by the Assuming Institution from the Bank
Closing Date to the date it elects to accept an assignment of the leases with respect thereto to
the extent such leases can be assigned; provided that the exercise of this option with respect to
any lease must be as to all premises or other property subject to the lease. The Assuming
Institution shall give notice to the Receiver within the option period of its election to accept or
not to accept an assignment of any or all leases (or enter into new leases in lieu thereof). The
Assuming Institution agrees to assume all leases assigned (or enter into new leases in lieu
thereof) pursuant to this Section 4.6. If the Assuming Institution gives notice of its election not
to accept an assignment of a lease for one or more of the leased Bank Premises within seven (7)
days of the Bank Closing Date, then, notwithstanding any other provision of this Agreement to the
contrary, the Assuming Institution shall not be liable for any of the costs or fees associated with
Fair Market Value appraisals for the Fixtures, Furniture and Equipment located on such leased Bank
Premises.




			
	 	 	 
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          (c) Facilitation. The Receiver agrees to facilitate the assumption, assignment or
sublease of leases or the negotiation of new leases by the Assuming Institution; provided that
neither the Receiver nor the Corporation shall be obligated to engage in litigation, make payments
to the Assuming Institution or to any third party in connection with facilitating any such
assumption, assignment, sublease or negotiation or commit to any other obligations to third
parties.




          (d) Occupancy. The Assuming Institution shall give the Receiver fifteen (15) days
prior written notice of its intention to vacate prior to vacating any leased Bank Premises with
respect to which the Assuming Institution has not exercised the option provided in Section 4.6(b).
Any such notice shall be deemed to terminate the Assuming Institution’s option with respect to such
leased Bank Premises.




          (e) Occupancy Costs.





          (i) The Assuming Institution agrees to pay to the Receiver, or to appropriate third
parties at the direction of the Receiver, during and for the period of any occupancy by it
of (x) owned Bank Premises the market rental value, as determined by the appraiser selected
in accordance with the definition of Fair Market Value, and all operating costs, and (y)
leased Bank Premises, all operating costs with respect thereto and to comply with all
relevant terms of applicable leases entered into by the Failed Bank, including without
limitation the timely payment of all rent. Operating costs include,
without limitation all taxes, fees, charges, maintenance, utilities, insurance and
assessments, to the extent not included in the rental value or rent. If the Assuming
Institution elects to purchase any owned Bank Premises in accordance with Section 4.6(a),
the amount of any rent paid (and taxes paid to the Receiver which have not been paid to the
taxing authority and for which the Assuming Institution assumes liability) by the Assuming
Institution with respect thereto shall be applied as an offset against the purchase price
thereof.



          (ii) The Assuming Institution agrees during the period of occupancy by it of owned or
leased Bank Premises, to pay to the Receiver rent for the use of all owned or leased
Furniture and Equipment and all owned or leased Fixtures located on such Bank Premises for
the period of such occupancy. Rent for such property owned by the Failed Bank shall be the
market rental value thereof, as determined by the Receiver within sixty (60) days after the
Bank Closing Date. Rent for such leased property shall be an amount equal to any and all
rent and other amounts which the Receiver incurs or accrues as an obligation or is obligated
to pay for such period of occupancy pursuant to all leases and contracts with respect to
such property. If the Assuming Institution purchases any owned Furniture and Equipment or
owned Fixtures in accordance with Section 4.6(f) or 4.6(h), the amount of any rents paid by
the Assuming Institution with respect thereto shall be applied as an offset against the
purchase price thereof.



          (f) Certain Requirements as to Fixtures, Furniture and Equipment. If the Assuming
Institution purchases owned Bank Premises or accepts an assignment of the lease (or enters into a
sublease or a new lease in lieu thereof) for leased Bank Premises as provided in Section 4.6(a) or
4.6(b), or if the Assuming Institution does not exercise such option but within




			
	 	 	 
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twelve (12) months
following the Bank Closing Date obtains the right to occupy such premises (whether by assignment,
lease, sublease, purchase or otherwise), other than in accordance with Section 4.6(a) or 4.6(b),
the Assuming Institution shall (i) effective as of the Bank Closing Date, purchase from the
Receiver all Fixtures, Furniture and Equipment owned by the Failed Bank at Fair Market Value and
located thereon as of the Bank Closing Date, (ii) accept an assignment or a sublease of the leases
or negotiate new leases for all Fixtures, Furniture and Equipment leased by the Failed Bank and
located thereon, and (iii) if applicable, accept an assignment or a sublease of any ground lease or
negotiate a new ground lease with respect to any land on which such Bank Premises are located;
provided that the Receiver shall not have disposed of such Fixtures, Furniture and Equipment or
repudiated the leases referred to in clause (ii) or (iii).




          (g) Vacating Premises.





          (i) If the Assuming Institution elects not to purchase any owned Bank Premises, the
notice of such election in accordance with Section 4.6(a) shall specify the date upon which
the Assuming Institution’s occupancy of such premises shall terminate, which date shall not
be later than ninety (90) days after the date of the Assuming Institution’s notice not to
exercise such option. The Assuming Institution shall be responsible for promptly
relinquishing and releasing to the Receiver such premises and the Fixtures, Furniture and
Equipment located thereon which existed at the time of the Bank Closing Date, in the same
condition as at the Bank Closing Date and at the premises where they were inventoried at the
Bank Closing Date, normal wear and tear
excepted. Any of the aforementioned which is missing will be charged to the Assuming
Institution at the item’s Fair Market Value as determined in accordance with this Agreement.
By occupying any such premises after the expiration of such ninety (90)-day period, the
Assuming Institution shall, at the Receiver’s option, (x) be deemed to have agreed to
purchase such Bank Premises, and to assume all leases, obligations and liabilities with
respect to leased Furniture and Equipment and leased Fixtures located thereon and any ground
lease with respect to the land on which such premises are located, and (y) be required to
purchase all Fixtures, Furniture and Equipment owned by the Failed Bank and located on such
premises as of the Bank Closing Date.




          (ii) If the Assuming Institution elects not to accept an assignment of the lease or
sublease any leased Bank Premises, the notice of such election in accordance with Section
4.6(b) shall specify the date upon which the Assuming Institution’s occupancy of such leased
Bank Premises shall terminate, which date shall not be later than ninety (90) days after the
date of the Assuming Institution’s notice not to exercise such option. Upon vacating such
premises, the Assuming Institution shall be liable for relinquishing and releasing to the
Receiver such premises and the Fixtures and the Furniture and Equipment located thereon
which existed at the time of the Bank Closing Date, in the same condition as at the Bank
Closing Date, and at the premises where they were inventoried at Bank closing, normal wear
and tear excepted. Any of the aforementioned which is missing will be charged to the
Assuming Institution at the item’s Fair Market Value as determined in accordance with this
Agreement. By failing to provide notice of its intention to vacate such premises prior to
the expiration of the option period specified in Section 4.6(b), or by occupying such
premises after the ninety (90)day period specified above in this Section 4.6(g)(ii), the
Assuming Institution shall, at the



			
	 	 	 
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Receiver’s option, (x) be deemed to have assumed all
leases, obligations and liabilities with respect to such premises (including any ground
lease with respect to the land on which premises are located), and leased Furniture and
Equipment and leased Fixtures located thereon in accordance with this Section 4.6 (unless
the Receiver previously repudiated any such lease), and (y) be required to purchase all
Fixtures, Furniture and Equipment owned by the Failed Bank at Fair Market Value and located
on such premises as of the Bank Closing Date.



          (h) Furniture and Equipment and Certain Other Equipment. The Receiver hereby grants
to the Assuming Institution an option to purchase all Furniture and Equipment owned by the Failed
Bank at Fair Market Value and located at any leased or owned Bank Premises that the Assuming
Institution elects to vacate or which it could have, but did not occupy, pursuant to this Section
4.6; provided that, the Assuming Institution shall give the Receiver notice of its election to
purchase such property at the time it gives notice of its intention to vacate such Bank Premises or
within ten (10) days after the Bank Closing Date for Bank Premises it could have, but did not,
occupy.




          (i) Option to Put Bank Premises and Related Fixtures, Furniture and Equipment.





          (i) For a period of ninety (90) days following the Bank Closing Date, the Assuming
Institution shall be entitled to require the Receiver to purchase any Bank
Premises that is owned, directly or indirectly, by an Acquired Subsidiary and the
purchase price paid by the Receiver shall be the Fair Market Value of the Bank Premises.




          (ii) If the Assuming Institution elects to require the Receiver to purchase any Bank
Premises that is owned, directly or indirectly, by an Acquired Subsidiary, the Assuming
Institution shall also have the option, exercisable within the same ninety (90) day time
period, to require the Receiver to purchase any Fixtures, Furniture and Equipment that is
owned, directly or indirectly, by an Acquired Subsidiary which is located on such Bank
Premises and was utilized by the Failed Bank for banking purposes. The purchase price paid
by the Receiver shall be the Fair Market Value of the Fixtures, Furniture and Equipment
purchased.




          (iii) In the event the Assuming Institution elects to exercise its options under this
Section 4.6(i), the Assuming Institution shall pay to the Receiver occupancy costs in
accordance with Section 4.6(e) and shall vacate the Bank Premises in accordance with Section
4.6(g)(i).




          (iv) Regardless of whether the Assuming Institution exercises any of its options under
this Section 4.6(i), the purchase price for the Acquired Subsidiary shall be adjusted by the
difference between the Fair Market Value of the Bank Premises and Fixtures, Furniture and
Equipment utilized by the Failed Bank for banking purposes and their respective Book Value
as reflected of the books and records of the Acquired Subsidiary. Such adjustment shall be
made in accordance with Article VIII of this Agreement.



			
	 	 	 
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     4.7. Agreement with Respect to Leased Data Management Equipment.



          (a) Option. The Receiver hereby grants to the Assuming Institution an exclusive
option for the period of ninety (90) days commencing the day after Bank Closing to accept an
assignment from the Receiver of all Leased Data Management Equipment.




          (b) Notices Regarding Leased Data Management Equipment. The Assuming Institution
shall (i) give written notice to the Receiver within the option period specified in Section 4.7(a)
of its intent to accept or decline an assignment or sublease of all Leased Data Management
Equipment and promptly accept an assignment or sublease of such Leased Data Management Equipment,
and (ii) give written notice to the appropriate lessor(s) that it has accepted an assignment or
sublease of any such Leased Data Management Equipment that is subject to a lease.




          (c) Facilitation by Receiver. The Receiver agrees to facilitate the assignment or
sublease of Leased Data Management Equipment or the negotiation of new leases or license agreements
by the Assuming Institution; provided, that neither the Receiver nor the Corporation shall be
obligated to engage in litigation, make payments to the Assuming Institution or to any third party
in connection with facilitating any such assumption, assignment, sublease or negotiation or commit
to any other obligations to third parties.




          (d) Operating Costs. The Assuming Institution agrees, during its period of use of any
Leased Data Management Equipment, to pay to the Receiver or to appropriate third parties at the
direction of the Receiver all operating costs with respect thereto and to comply with all relevant
terms of any existing Leased Data Management Equipment leases entered into by the Failed Bank,
including without limitation the timely payment of all rent, taxes, fees, charges, maintenance,
utilities, insurance and assessments.




          (e) Assuming Institution’s Obligation. The Assuming Institution shall, not later than
fifty (50) days after giving the notice provided in Section 4.7(b), (i) relinquish and release to
the Receiver or, at the direction of the Receiver, to a third party, all Leased Data Management
Equipment, in the same condition as at Bank Closing, normal wear and tear excepted, or (ii) accept
an assignment or a sublease of any existing Leased Data Management lease or negotiate a new lease
or license agreement under this Section 4.7 with respect to Leased Data Management Equipment.




          (f) Data Removal. The Assuming Institution shall, prior to returning any Leased Data
Management Equipment, and unless otherwise requested by the Receiver, (i) remove all data from the
Leased Data Management Equipment and (ii) provide a written statement to the Receiver that all data
has been removed in a manner that renders it unrecoverable.




     4.8. Certain Existing Agreements.




          (a) Assumption of Agreements. Subject to the provisions of Section 4.8(b), with
respect to agreements existing as of the Bank Closing Date which provide for the rendering of
services by or to the Failed Bank, within thirty (30) days after the Bank Closing Date, the
Assuming Institution shall give the Receiver written notice specifying whether it elects to



			
	 	 	 
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assume
or not to assume each such agreement. Except as may be otherwise provided in this Article IV, the
Assuming Institution agrees to comply with the terms of each such agreement for a period commencing
on the day after the Bank Closing Date and ending on: (i) in the case of an agreement that provides
for the rendering of services by the Failed Bank, the date which is ninety (90) days after the Bank
Closing Date, and (ii) in the case of an agreement that provides for the rendering of services to
the Failed Bank, the date which is thirty (30) days after the Assuming Institution has given notice
to the Receiver of its election not to assume such agreement; provided that the Receiver can
reasonably make such service agreements available to the Assuming Institution. The Assuming
Institution shall be deemed by the Receiver to have assumed agreements for which no notification is
timely given. The Receiver agrees to assign, transfer, convey and deliver to the Assuming
Institution all right, title and interest of the Receiver, if any, in and to agreements the
Assuming Institution assumes hereunder. In the event the Assuming Institution elects not to accept
an assignment of any lease (or sublease) or negotiate a new lease for leased Bank Premises under
Section 4.6 and does not otherwise occupy such premises, the provisions of this Section 4.8(a)
shall not apply to service agreements related to such premises. The Assuming Institution agrees,
during the period it has the use or benefit of any such agreement, promptly to pay to the Receiver
or to appropriate third parties at the
direction of the Receiver all operating costs with respect thereto and to comply with all
relevant terms of such agreement.




          (b) Excluded Agreements. The provisions of Section 4.8(a) regarding the Assuming
Institution’s election to assume or not assume certain agreements shall not apply to (i) agreements
pursuant to which the Failed Bank provides mortgage servicing for others or mortgage servicing is
provided to the Failed Bank by others, (ii) agreements  that are subject to Sections 4.1 through 4.7 and any insurance policy or bond
referred to in Section 3.5(a) or other agreement specified in
Section 3.5 and (iii) consulting,
management or employment agreements, if any, between the Failed Bank and its employees or other
Persons. Except as otherwise expressly set forth elsewhere in this Agreement, the Assuming
Institution does not assume any liabilities or acquire any rights under any of the agreements
described in this Section 4.8(b).




     4.9. Informational Tax Reporting. The Assuming Institution agrees to perform all obligations of the Failed Bank with respect
to Federal and State income tax informational reporting related to (i) the Assets and the
Liabilities Assumed, (ii) deposit accounts that were closed and loans that were paid off or
collateral obtained with respect thereto prior to the Bank Closing Date, (iii) miscellaneous
payments made to vendors of the Failed Bank, and (iv) any other asset or liability of the Failed
Bank, including, without limitation, loans not purchased and Deposits not assumed by the Assuming
Institution, as may be required by the Receiver.



     4.10. Insurance.



            (a) Assuming Institution to Insure. The Assuming Institution will obtain and maintain
insurance coverage acceptable to the Receiver (including public liability, fire, and extended
coverage insurance) naming the Assuming Institution as the insured and the Receiver as additional
insured, effective from and after the Bank Closing Date, with respect to all (i) Bank



			
	 	 	 
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Premises that
the Assuming Institution occupies, and (ii) Fixtures, Furniture and Equipment and Leased Data
Management Equipment located on those Bank Premises.




          (b) Rights of Receiver. If the Assuming Institution at any time from or after Bank
Closing Date fails to (i) obtain or maintain any of the insurance policies required by Section
4.10(a), (ii) pay any premium in whole or in part related to those insurance policies, or (iii)
provide evidence of those insurance policies acceptable to the Receiver, then the Receiver may in
its sole and absolute discretion, without notice, and without waiving or releasing any obligation
or liability of the Assuming Institution, obtain and maintain insurance policies, pay insurance
premiums and take any other actions with respect to the insurance coverage as the Receiver deem
advisable. The Assuming Institution will reimburse the Receiver for all sums disbursed in
connection with this Section 4.10(b).




     4.11. Office Space for Receiver and Corporation; Certain Payments.



          (a) FDIC Office Space. For the period commencing on the day following the Bank
Closing Date and ending on the one hundred eightieth (180th) day following the Bank Closing Date,
the Assuming Institution will provide to the Receiver and the Corporation, without charge, adequate
and suitable office space (including parking facilities and vault space), furniture, equipment
(including photocopying and telecopying machines), email accounts, network access and technology
resources (such as shared drive), and utilities (including local telephone service and fax
machines) (collectively, “FDIC Office Space”) at the Bank Premises occupied by the Assuming
Institution for the Receiver and the Corporation to use in the discharge of their respective
functions with respect to the Failed Bank.




          (b) Receiver’s Right to Extend. Upon written notice by the Receiver or the
Corporation, for the period commencing on the one hundred eighty first (181st) day following the
Bank Closing Date and ending no later than the three hundred and sixty-fifth (365th) day following
the Bank Closing Date, the Assuming Institution will continue to provide to the Receiver and the
Corporation FDIC Office Space at the Bank Premises. During the period from the 181st day following
the Bank Closing Date until the day the FDIC and the Corporation vacate FDIC Office Space, the
Receiver and the Corporation will pay to the Assuming Institution their respective pro rata share
(based on square footage occupied) of (A) the market rental value for the applicable owned Bank
Premises or (B) actual rent paid for applicable leased Bank Premises.




          (c) Receiver’s Relocation Right. If the Receiver or the Corporation determine that
the space provided by the Assuming Institution is inadequate or unsuitable, the Receiver and the
Corporation may relocate to other quarters having adequate and suitable FDIC Office Space and the
costs of relocation and any rental and utility costs for the balance of the period of occupancy by
the Receiver and the Corporation shall be borne by the Assuming Institution.




          (d) Expenditures. The Assuming Institution will pay such bills and invoices on behalf
of the Receiver and the Corporation as the Receiver or the Corporation may direct for the period
beginning on the date of the Bank Closing Date and ending on Settlement Date. The Assuming
Institution shall submit its requests for reimbursement of such expenditures pursuant to Article
VIII of this Agreement.




			
	 	 	 
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     4.12. Continuation of Group Health Plan Coverage for Former Employees of the Failed
Bank.




          (a) Continuation Coverage. The Assuming Institution agrees to assist the Receiver, as
provided in this Section 4.12, in offering individuals who were employees or former employees of
the Failed Bank, or any of its Subsidiaries, and who, immediately prior to the Bank Closing Date,
were receiving, or were eligible to receive, health insurance coverage or health insurance
continuation coverage from the Failed Bank (“Eligible Individuals”), the opportunity to obtain
health insurance coverage in the Corporation’s Federal Insurance Administration Continuation
Coverage Plan which provides for health insurance continuation coverage to such
Eligible Individuals and other persons who are qualified beneficiaries of the Failed Bank
(“Qualified Beneficiaries”) as defined in the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”) § 607, 29 U.S.C. § 1167. The Assuming Institution shall consult with the Receiver
and not later than five (5) Business Days after the Bank Closing Date shall provide written notice
to the Receiver of the number (if available), identity (if available) and addresses (if available)
of the Eligible Individuals who are Qualified Beneficiaries of the Failed Bank and for whom a
“qualifying event” (as defined in ERISA § 603, 29 U.S.C. § 1163) has occurred and with respect to
whom the Failed Bank’s obligations under Part 6 of Subtitle B of Title I of ERISA, 29 U.S.C. §§
1161-1169 have not been satisfied in full, and such other information as the Receiver may
reasonably require. The Receiver shall cooperate with the Assuming Institution in order to permit
it to prepare such notice and shall provide to the Assuming Institution such data in its possession
as may be reasonably required for purposes of preparing such notice.




          (b) Qualified Beneficiaries; Expenses. The Assuming Institution shall take such
further action to assist the Receiver in offering the Eligible Individuals who are Qualified
Beneficiaries of the Failed Bank the opportunity to obtain health insurance coverage in the
Corporation’s Federal Insurance Administration Continuation Coverage Plan as the Receiver may
direct. All expenses incurred and paid by the Assuming Institution (i) in connection with the
obligations of the Assuming Institution under this Section 4.12, and (ii) in providing health
insurance continuation coverage to any Eligible Individuals who are hired by the Assuming
Institution and such employees’ Qualified Beneficiaries shall be borne by the Assuming Institution.




          (c) Employee List. No later than five (5) Business Days after the Bank Closing Date,
the Assuming Institution shall provide the Receiver with a list of all Failed Bank employees the
Assuming Institution will not hire. Unless otherwise agreed, the Assuming Institution shall pay all
salaries and payroll costs for all Failed Bank employees until the list is provided to the
Receiver. The Assuming Institution shall be responsible for all costs and expenses (i.e., salary,
benefits, etc.) associated with all other employees not on that list from and after the date of
delivery of the list to the Receiver. The Assuming Institution shall offer to the Failed Bank
employees it retains employment benefits comparable to those the Assuming Institution, offers its
current employees.




          (d) No Third Party Beneficiaries. This Section 4.12 is for the sole and exclusive
benefit of the parties to this Agreement, and for the benefit of no other Person (including any
former employee of the Failed Bank or any Subsidiary thereof, Eligible Individual




			
	 	 	 
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or Qualified
Beneficiary of such former employee). Nothing in this Section 4.12 is intended by the parties, or
shall be construed, to give any Person (including any former employee of the Failed Bank or any
Subsidiary thereof, Eligible Individual or Qualified Beneficiary of such former employee) other
than the Corporation, the Receiver and the Assuming Institution, any legal or equitable right,
remedy or claim under or with respect to the provisions of this Section 4.12.




     4.13. Interim Asset Servicing. At any time after the Bank Closing Date, the Receiver may establish on its books an asset
pool(s) and may transfer to such asset pool(s) (by means of accounting entries on the books of the
Receiver) all or any assets and liabilities of the Failed Bank which are not acquired by the
Assuming Institution, including, without limitation, wholly unfunded Commitments and assets and
liabilities which may be acquired, funded or originated by the Receiver subsequent to the Bank
Closing Date. The Receiver may remove assets (and liabilities) from or add assets (and liabilities)
to such pool(s) at any time in its discretion. At the option of the Receiver, the Assuming
Institution agrees to service, administer and collect such pool assets in accordance with, and for
the term set forth in, Exhibit 4.13.



     4.14. Reserved.




     4.15. Loss Sharing. This Agreement includes a Single Family Shared-Loss Agreement attached hereto as
Exhibit 4.15A and a Commercial Shared-Loss Agreement attached hereto as Exhibit
4.15B. The Assuming Institution shall be entitled to require reimbursement from the Receiver
for shared losses, and shall share recoveries, on certain loans and assets in accordance with the
Shared-Loss Agreements.



ARTICLE V. DUTIES WITH RESPECT TO DEPOSITORS OF THE FAILED BANK.




     5.1. Payment of Checks, Drafts, Orders and Deposits. Subject to Section 9.5, the Assuming Institution agrees to pay all
properly drawn checks,
drafts, withdrawal orders and Assumed Deposits of depositors of the Failed Bank presented for
payment, whether drawn on the check or draft forms provided by the Failed Bank or by the Assuming
Institution, to the extent that the Deposit balances to the credit of the respective makers or
drawers assumed by the Assuming Institution under this Agreement are sufficient to permit the
payment thereof, and in all other respects to discharge, in the usual course of conducting a
banking business, the duties and obligations of the Failed Bank with respect to the Deposit
balances due and owing to the depositors of the Failed Bank assumed by the Assuming Institution
under this Agreement.



     5.2. Certain Agreements Related to Deposits. Except as may be modified pursuant to Section 2.2, the Assuming Institution agrees
to honor
the terms and conditions of any written escrow or mortgage servicing agreement or other similar
agreement relating to a Deposit liability assumed by the Assuming Institution pursuant to this
Agreement.



     5.3. Notice to Depositors.



     (a) Assumption of Deposits. Within seven (7) days after the Bank Closing Date, the
Assuming Institution shall give notice by mail to each depositor of the Failed Bank of (i) the
assumption of the Deposit liabilities of the Failed Bank, and (ii) the procedures to claim Deposits
(the Receiver shall provide item (ii) to Assuming Institution). The Assuming Institution



			
	 	 	 
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shall also
publish notice of its assumption of the Deposit liabilities of the Failed Bank in a newspaper of
general circulation in the county or counties in which the Failed Bank was located.




          (b) Notice to Depositors. Within seven (7) days after the Bank Closing Date, the
Assuming Institution shall give notices by mail to each depositor of the Failed Bank, as required
under Section 2.2.




          (c) Fee Schedule. If the Assuming Institution proposes to charge fees different from
those fees formerly charged by the Failed Bank, the Assuming Institution shall include its fee
schedule in its mailed notice.




          (d) Approval of Notices and Publications. The Assuming Institution shall obtain
approval of all notices and publications required by this Section 5.3 from counsel for the Receiver
prior to mailing or publication.




ARTICLE
VI. RECORDS.




     6.1. Transfer of Records. In accordance with Sections 2.1 and 3.1, the Receiver assigns, transfers, conveys and
delivers to the Assuming Institution, whether located on Bank Premises occupied or not occupied by
the Assuming Institution or at any other location, any and all Records of the Failed Bank, other
than the following:



          (a) Records pertaining to former employees of the Failed Bank who were no longer employed by
the Failed Bank as of the Bank Closing Date and Records pertaining to employees of the Failed Bank
who were employed by the Failed Bank as of the Bank Closing Date and for whom the Receiver is
unable to obtain a waiver to release such Records to the Assuming Institution;




          (b) Records pertaining to (i) any asset or liability of the Failed Bank retained by the
Receiver, or (ii) any asset of the Failed Bank acquired by the Receiver pursuant to this Agreement;
and




          (c) any other Records as determined by the Receiver.




     6.2. Transfer of Assigned Records. The Receiver shall transfer to the Assuming Institution all Records described in Section
6.1 as soon as practicable on or after the date of this Agreement.



     6.3. Preservation of Records.



     (a) Assuming Institution Records Retention. The Assuming Institution agrees that it
will preserve and maintain for the joint benefit of the Receiver, the Corporation and the Assuming
Institution, all Records of which it has custody. The Assuming Institution shall have the primary
responsibility to respond to subpoenas, discovery requests, and other similar official inquiries
and customer requests for lien releases with respect to the Records of which it has custody. With
respect to its obligations under this Section 6.3 regarding Electronically Stored Information, the
Assuming Institution will complete the Data Retention Catalog attached hereto



			
	 	 	 
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as Schedule
6.3 and submit it to the Receiver within thirty (30) days following the Bank Closing Date.




          (b) Destruction of Certain Records. With regard to all Records of which it has
custody which are at least ten (10) years old as of the date of the appointment of the Receiver,
the Assuming Institution agrees to request written permission to destroy such records by submitting
a written request to destroy, specifying precisely which records are included in the request, to
DRR— Records Manager, CServiceFDICDAL@FDIC.gov.




          (c) Destruction of Records After Six Years. With regard to all Records of which it
has custody which have been maintained in the custody of the Assuming Institution after six (6)
years from the date of the appointment of the Receiver, the Assuming Institution agrees to request
written permission to destroy such records by submitting a written request to destroy, specifying
precisely which records are included in the request, to DRR— Records Manager,
CServiceFDICDAL@FDIC.gov.




     6.4. Access to Records; Copies. The Assuming Institution agrees to permit the Receiver and the Corporation access to all
Records of which the Assuming Institution has custody, and to use, inspect, make extracts from or
request copies of any such Records in the manner and to the extent requested, and to duplicate, in
the discretion of the Receiver or the Corporation, any Record pertaining to Deposit account
relationships; provided that in the event that the Failed Bank maintained one or more duplicate
copies of such Records, the Assuming Institution hereby assigns, transfers, and conveys to the
Corporation one such duplicate copy of each such Record without cost to the Corporation, and agrees
to deliver to the Corporation all Records assigned and transferred to the Corporation under this
Article VI as soon as practicable on or after the date of this Agreement. The party requesting a
copy of any Record shall bear the cost (based on standard accepted industry charges to the extent
applicable, as determined by the Receiver) for providing such duplicate Records. A copy of each
Record requested shall be provided as soon as practicable by the party having custody thereof.



     6.5. Right of Receiver or Corporation to Audit. The Receiver or the Corporation, their respective agents, contractors and employees, may
(but are not required to) perform an audit to determine the Assuming Institution’s compliance with
this Agreement at any time, by providing not less than ten (10) Business Days prior notice. The
scope and duration of any such audit shall be at the discretion of the Receiver or the Corporation,
as the case may be. The Receiver or the Corporation, as the case may be, shall bear the expense of
any such audit. In the event that any corrections are necessary as a
result of such an audit, the Assuming Institution and the Receiver shall make such accounting
adjustments, payments and withholdings as may be necessary to give retroactive effect to such
corrections.



ARTICLE VII. BID; INITIAL PAYMENT.




     The Assuming Institution has submitted to the Receiver a Deposit premium bid of 0.0% and an
Asset discount bid of ($4,500,000.00) (the “Bid Amount”). The Deposit premium bid will be
applied to the total of all Assumed Deposits except for brokered, CDARS®, and any market
place or similar subscription services Deposits as reflected on Schedule 7. On the Payment
Date, the Assuming Institution will pay to the Corporation, or the Corporation will



			
	 	 	 
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pay to the Assuming Institution, as the case may be, the Initial Payment, together with interest on
such amount (if the Payment Date is not the day following the Bank Closing Date) from and including
the day following the Bank Closing Date to and including the day preceding the Payment Date at the
Settlement Interest Rate.




ARTICLE VIII. ADJUSTMENTS.




     8.1. Pro Forma Statement. The Receiver, as soon as practicable after the Bank Closing
Date, in accordance with the best information then available, shall provide to the Assuming
Institution a Pro Forma statement reflecting any adjustments of such liabilities and assets as may
be necessary. Such Pro Forma statement shall take into account, to the extent possible, (a)
liabilities and assets of a nature similar to those contemplated by Section 2.1 or Section 3.1,
respectively, which on the Bank Closing Date were carried in the Failed Bank’s suspense accounts,
(b) accruals as of the Bank Closing Date for all income related to the assets and business of the
Failed Bank acquired by the Assuming Institution hereunder, whether or not such accruals were
reflected on the Failed Bank Records in the normal course of its operations, and (c) adjustments to
determine the Book Value of any investment in an Acquired Subsidiary and related accounts on the
“bank only” (unconsolidated) balance sheet of the Failed Bank based on the equity method of
accounting, whether or not the Failed Bank used the equity method of accounting for investments in
subsidiaries, except that the resulting amount cannot be less than the Acquired Subsidiary’s
recorded equity as of the Bank Closing Date as reflected on the Failed Bank Records of the Acquired
Subsidiary. Any Loan purchased by the Assuming Institution pursuant to Section 3.1 which the
Failed Bank  charged off during the period beginning the day after the Bid
Valuation Date to the date of the Bank Closing Date shall be deemed not to be charged off for the
purposes of the Pro Forma statement, and the purchase price shall be determined pursuant to Section
3.2.



     8.2. Correction of Errors and Omissions; Other Liabilities.



          (a) Adjustments to Correct Errors. In the event any bookkeeping omissions or errors
are discovered in preparing any Pro Forma statement or in completing the transfers and assumptions
contemplated hereby, the parties hereto agree to correct such errors and omissions, it being
understood that, as far as practicable, all adjustments will be made consistent with the judgments,
methods, policies or accounting principles utilized by the Failed Bank in preparing and maintaining
Failed Bank Records, except that adjustments made pursuant to this Section 8.2(a) are not intended
to bring the Failed Bank Records into accordance with generally accepted accounting principles.




          (b) Receiver’s Rights Regarding Other Liabilities. If the Receiver discovers at any
time subsequent to the date of this Agreement that any claim exists against the Failed Bank which
is of such a nature that it would have been included in the liabilities assumed under Article II
had the existence of such claim or the facts giving rise thereto been known as of the Bank Closing
Date, the Receiver may, in its discretion, at any time, require that such claim be assumed by the
Assuming Institution in a manner consistent with the intent of this Agreement. The Receiver will
make appropriate adjustments to the Pro Forma statement provided by the Receiver to the Assuming
Institution pursuant to Section 8.1 as may be necessary.




			
	 	 	 
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     8.3. Payments. he Receiver agrees to cause to be paid to the Assuming Institution, or
the Assuming Institution agrees to pay to the Receiver, as the case may be, on the Settlement Date,
a payment in an amount which reflects net adjustments (including any costs, expenses and fees
associated with determinations of value as provided in this Agreement) made pursuant to Section 8.1
or Section 8.2, plus interest as provided in Section 8.4. The Receiver and the Assuming Institution
agree to effect on the Settlement Date any further transfer of assets to or assumption of
liabilities or claims by the Assuming Institution as may be necessary in accordance with Section
8.1 or Section 8.2.



     8.4. Interest. Any amounts paid under Section 8.3 or Section 8.5 shall bear interest
for the period from and including the day following the Bank Closing Date to and including the day
preceding the payment at the Settlement Interest Rate.



     8.5. Subsequent Adjustments. In the event that the Assuming Institution or the
Receiver discovers any errors or omissions as contemplated by Section 8.2 or any error with respect
to the payment made under Section 8.3 after the Settlement Date, the Assuming Institution and the
Receiver agree to promptly correct any such errors or omissions, make any payments and effect any
transfers or assumptions as may be necessary to reflect any such correction plus interest as
provided in Section 8.4.



ARTICLE IX. CONTINUING COOPERATION.




     9.1. General Matters. The parties hereto will, in good faith and with their best
efforts, cooperate with each other to carry out the transactions contemplated by this Agreement and
to effect the purposes hereof.



     9.2. Additional Title Documents. The Receiver, the Corporation and the Assuming
Institution each shall, at any time, and from time to time, upon the request of any party hereto,
execute and deliver such additional instruments and documents of conveyance as shall be reasonably
necessary to vest in the appropriate party its full legal or equitable title in and to the property
transferred pursuant to this Agreement or to be transferred in accordance herewith. The Assuming
Institution shall prepare such instruments and documents of conveyance (in form and substance
satisfactory to the Receiver) as shall be necessary to vest title to the Assets in the Assuming
Institution. The Assuming Institution shall be responsible for recording such instruments and
documents of conveyance at its own expense.



     9.3. Claims and Suits.



          (a) Defense and Settlement. The Receiver shall have the right, in its discretion, to
(i) defend or settle any claim or suit against the Assuming Institution with respect to which the
Receiver has indemnified the Assuming Institution in the same manner and to the same extent as
provided in Article XII, and (ii) defend or settle any claim or suit against the Assuming
Institution with respect to any Liability Assumed, which claim or suit may result in a loss to the
Receiver arising out of or related to this Agreement, or which existed against the Failed Bank on
or before the Bank Closing Date. The exercise by the Receiver of any rights under this Section
9.3(a) shall not release the Assuming Institution with respect to any of its obligations under this
Agreement.




			
	 	 	 
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          (b) Removal of Actions. In the event any action at law or in equity shall be
instituted by any Person against the Receiver and the Corporation as codefendants with respect to
any asset of the Failed Bank retained or acquired pursuant to this Agreement by the Receiver, the
Receiver agrees, at the request of the Corporation, to join with the Corporation in a petition to
remove the action to the United States District Court for the proper district. The Receiver agrees
to institute, with or without joinder of the Corporation as co-plaintiff, any action with respect
to any such retained or acquired asset or any matter connected therewith whenever notice requiring
such action shall be given by the Corporation to the Receiver.




     9.4. Payment of Deposits. In the event any depositor does not accept the obligation
of the Assuming Institution to pay any Deposit liability of the Failed Bank assumed by the Assuming
Institution pursuant to this Agreement and asserts a claim against the Receiver for all or any
portion of any such Deposit liability, the Assuming Institution agrees on demand to provide to the
Receiver funds sufficient to pay such claim in an amount not in excess of the Deposit liability
reflected on the books of the Assuming Institution at the time such claim is made. Upon payment by
the Assuming Institution to the Receiver of such amount, the Assuming Institution shall be
discharged from any further obligation under this Agreement to pay to any such depositor the amount
of such Deposit liability paid to the Receiver.



     9.5. Withheld Payments. At any time, the Receiver or the Corporation may, in its
discretion, determine that all or any portion of any deposit balance assumed by the Assuming
Institution pursuant to this Agreement does not constitute a “Deposit” (or otherwise, in its
discretion, determine that it is the best interest of the Receiver or Corporation to withhold all
or any portion of any deposit), and may direct the Assuming Institution to withhold payment of all
or any portion of any such deposit balance. Upon such direction, the Assuming Institution agrees to
hold such deposit and not to make any payment of such deposit balance to or on behalf of the
depositor, or to itself, whether by way of transfer, set-off or otherwise. The Assuming Institution
agrees to maintain the “withheld payment” status of any such deposit balance until directed in
writing by the Receiver or the Corporation as to its disposition. At the direction of the Receiver
or the Corporation, the Assuming Institution shall return all or any portion of such deposit
balance to the Receiver or the Corporation, as appropriate, and thereupon the Assuming Institution
shall be discharged from any further liability to such depositor with respect to such returned
deposit balance. If such deposit balance has been paid to the depositor prior to a demand for
return by the Corporation or the Receiver, and payment of such deposit balance had not been
previously withheld pursuant to this Section 9.5, the Assuming Institution shall not be obligated
to return such deposit balance to the Receiver or the Corporation. The Assuming Institution shall
be obligated to reimburse the Corporation or the Receiver, as the case may be, for the amount of
any deposit balance or portion thereof paid by the Assuming Institution in contravention of any
previous direction to withhold payment of such deposit balance or return such deposit balance the
payment of which was withheld pursuant to this Section 9.5.



     9.6. Proceedings with Respect to Certain Assets and Liabilities.



          (a) Cooperation by Assuming Institution. In connection with any investigation,
proceeding or other matter with respect to any asset or liability of the Failed Bank retained by
the Receiver, or any asset of the Failed Bank acquired by the Receiver pursuant to




			
	 	 	 
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this Agreement, the Assuming Institution shall cooperate to the extent reasonably required by
the Receiver.




          (b) Access to Records. In addition to its obligations under Section 6.4, the Assuming
Institution shall provide representatives of the Receiver access at reasonable times and locations
without other limitation or qualification to (i) its directors, officers, employees and agents and
those of the Acquired Subsidiaries, and (ii) its books and Records, the books and Records of such
Acquired Subsidiaries and all Credit Files, and copies thereof. Copies of books, Records and Credit
Files shall be provided by the Assuming Institution as requested by the Receiver and the costs of
duplication thereof shall be borne by the Receiver.




          (c) Loan Documents. Not later than ten (10) days after the Put Notice pursuant to
Section 3.4 or the date of the notice of transfer of any Loan by the Assuming Institution to the
Receiver pursuant to Section 3.6, the Assuming Institution shall deliver to the Receiver such
documents with respect to such Loan as the Receiver may request, including without limitation the
following: (i) all related Credit Documents (other than certificates, notices and other ancillary
documents), (ii) a certificate setting forth the principal amount on the date of the transfer and
the amount of interest, fees and other charges then accrued and unpaid thereon, and any
restrictions on transfer to which any such Loan is subject, and (iii) all Credit Files, and all
documents, microfiche, microfilm and computer records (including but not limited to magnetic tape,
disc storage, card forms and printed copy) maintained by, owned by, or in the possession of the
Assuming Institution or any Affiliate of the Assuming Institution relating to the transferred Loan.




     9.7. Information. The Assuming Institution promptly shall provide to the Corporation
such other information, including financial statements and computations, relating to the
performance of the provisions of this Agreement as the Corporation or the Receiver may request from
time to time, and, at the request of the Receiver, make available employees of the Failed Bank
employed or retained by the Assuming Institution to assist in preparation of the Pro Forma
statement pursuant to Section 8.1.



     9.8. Tax Ruling. The Assuming Institution shall not at any time, without the
Corporation’s prior consent, seek a private letter ruling or other determination from the Internal
Revenue Service or otherwise seek to qualify for any special tax treatment or benefits associated
with any payments made by the Receiver or Corporation pursuant to this Agreement.



ARTICLE X. CONDITION PRECEDENT.




     The obligations of the parties to this Agreement are subject to the Receiver and the
Corporation having received at or before the Bank Closing Date evidence reasonably satisfactory to
each of any necessary approval, waiver, or other action by any governmental authority, the board of
directors of the Assuming Institution, or other third party, with respect to this Agreement and the
transactions contemplated hereby, the closing of the Failed Bank and the appointment of the
Receiver, the chartering of the Assuming Institution, and any agreements, documents, matters or
proceedings contemplated hereby or thereby.



			
	 	 	 
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ARTICLE XI. REPRESENTATIONS AND WARRANTIES OF THE ASSUMING INSTITUTION.




     The Assuming Institution represents and warrants to the Corporation and the Receiver as
follows:



     11.1. Corporate Existence and Authority. The Assuming Institution (a) is duly
organized, validly existing and in good standing under the laws of its Chartering Authority and has
full power and authority to own and operate its properties and to conduct its business as now
conducted by it, and (b) has full power and authority to execute and deliver this Agreement and to
perform its obligations hereunder. The Assuming Institution has taken all necessary corporate (or
other applicable governance) action to authorize the execution, delivery and performance of this
Agreement and the performance of the transactions contemplated hereby.



     11.2. Third Party Consents. No governmental authority or other third party consents
(including but not limited to approvals, licenses, registrations or declarations) are required in
connection with the execution, delivery or performance by the Assuming Institution of this
Agreement, other than such consents as have been duly obtained and are in full force and effect.



     11.3. Execution and Enforceability. This Agreement has been duly executed and
delivered by the Assuming Institution and when this Agreement has been duly authorized, executed
and delivered by the Corporation and the Receiver, this Agreement will constitute the legal, valid
and binding obligation of the Assuming Institution, enforceable in accordance with its terms.



     11.4. Compliance with Law.



          (a) No Violations. Neither the Assuming Institution nor any of its Subsidiaries is in
violation of any statute, regulation, order, decision, judgment or decree of, or any restriction
imposed by, the United States of America, any State, municipality or other political subdivision or
any agency of any of the foregoing, or any court or other tribunal having jurisdiction over the
Assuming Institution or any of its Subsidiaries or any assets of any such Person, or any foreign
government or agency thereof having such jurisdiction, with respect to the conduct of the business
of the Assuming Institution or of any of its Subsidiaries, or the ownership of the properties of
the Assuming Institution or any of its Subsidiaries, which, either individually or in the aggregate
with all other such violations, would materially and adversely affect the business, operations or
condition (financial or otherwise) of the Assuming Institution or the ability of the Assuming
Institution to perform, satisfy or observe any obligation or condition under this Agreement.




          (b) No Conflict. Neither the execution and delivery nor the performance by the
Assuming Institution of this Agreement will result in any violation by the Assuming Institution of,
or be in conflict with, any provision of any applicable law or regulation, or any order, writ or
decree of any court or governmental authority.




     11.5. Insured or Guaranteed Loans. If any Loans being transferred pursuant to this
Agreement are insured or guaranteed by any department or agency of any governmental unit, federal,
state or local, Assuming Institution represents that Assuming Institution has been



			
	 	 	 
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approved by such agency and is an approved lender or mortgagee, as appropriate, if such
approval is required. The Assuming Institution further assumes full responsibility for determining
whether or not such insurance or guarantees are in full force and effect on the date of this
Agreement and with respect to those Loans whose insurance or guaranty is in full force and effect
on the date of this Agreement, Assuming Institution assumes full responsibility for doing all
things necessary to insure such insurance or guarantees remain in full force and effect. Assuming
Institution agrees to assume all of the obligations under the contract(s) of insurance or guaranty
and agrees to cooperate with the Receiver where necessary to complete forms required by the
insuring or guaranteeing department or agency to effect or complete the transfer to Assuming
Institution.




     11.6. Representations Remain True. The Assuming Institution represents and warrants
that it has executed and delivered to the Corporation a Purchaser Eligibility Certification and
Confidentiality Agreement and that all information provided and representations made by or on
behalf of the Assuming Institution in connection with this Agreement and the transactions
contemplated hereby, including, but not limited to, the Purchaser Eligibility Certification and
Confidentiality Agreement (which are affirmed and ratified hereby) are and remain true and correct
in all material respects and do not fail to state any fact required to make the information
contained therein not misleading.



     11.7. No Reliance; Independent Advice. The Assuming Institution is not relying on the
Receiver or the Corporation for any business, legal, tax, accounting, investment or other advice in
connection with this Agreement and the Exhibits hereto and documents delivered in connection with
the foregoing, and has had adequate opportunity to consult with advisors of its choice in
connection therewith.



ARTICLE XII. INDEMNIFICATION.




     12.1. Indemnification of Indemnitees. From and after the Bank Closing Date and
subject to the limitations set forth in this Section 12.1 and Section 12.6 and compliance by the
Indemnitees with Section 12.2, the Receiver agrees to indemnify and hold harmless the Indemnitees
against any and all costs, losses, liabilities, expenses (including attorneys’ fees) incurred prior
to the assumption of defense by the Receiver pursuant to Section 12.2(d), judgments, fines and
amounts paid in settlement actually and reasonably incurred in connection with claims against any
Indemnitee based on liabilities of the Failed Bank that are not assumed by the Assuming Institution
pursuant to this Agreement or subsequent to the execution hereof by the Assuming Institution or any
Subsidiary or Affiliate of the Assuming Institution for which indemnification is provided:



          (a) hereunder in this Section 12.1, subject to certain exclusions as provided in Section
12.1(b):





          (i) claims based on the rights of any shareholder or former shareholder as such of (A)
the Failed Bank, or (B) any Subsidiary or Affiliate of the Failed Bank;



			
	 	 	 
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          (ii) claims based on the rights of any creditor as such of the Failed Bank, or any
creditor as such of any director, officer, employee or agent of the Failed Bank, with
respect to any indebtedness or other obligation of the Failed Bank arising prior to the Bank
Closing Date;




          (iii) claims based on the rights of any present or former director, officer, employee
or agent as such of the Failed Bank or of any Subsidiary or Affiliate of the Failed Bank;




          (iv) claims based on any action or inaction prior to the Bank Closing Date of the
Failed Bank, its directors, officers, employees or agents as such, or any Subsidiary or
Affiliate of the Failed Bank, or the directors, officers, employees or agents as such of
such Subsidiary or Affiliate;




          (v) claims based on any malfeasance, misfeasance or nonfeasance of the Failed Bank, its
directors, officers, employees or agents with respect to the trust business of the Failed
Bank, if any;




          (vi) claims based on any failure or alleged failure (not in violation of law) by the
Assuming Institution to continue to perform any service or activity previously performed by
the Failed Bank which the Assuming Institution is not required to perform pursuant to this
Agreement or which arise under any contract to which the Failed Bank was a party which the
Assuming Institution elected not to assume in accordance with this Agreement and which
neither the Assuming Institution nor any Subsidiary or Affiliate of the Assuming Institution
has assumed subsequent to the execution hereof;




          (vii) claims arising from any action or inaction of any Indemnitee, including for
purposes of this Section 12.1(a)(vii) the former officers or employees of the Failed Bank or
of any Subsidiary or Affiliate of the Failed Bank that is taken upon the specific written
direction of the Corporation or the Receiver, other than any action or inaction taken in a
manner constituting bad faith, gross negligence or willful misconduct; and




          (viii) claims based on the rights of any depositor of the Failed Bank whose deposit has
been accorded “withheld payment” status and/or returned to the Receiver or Corporation in
accordance with Section 9.5 and/or has become an “unclaimed deposit” or has been returned to
the Corporation or the Receiver in accordance with Section 2.3;



          (b) provided that with respect to this Agreement, except for Section 12.1(a)(vii) and (viii),
no indemnification will be provided under this Agreement for any:





          (i) judgment or fine against, or any amount paid in settlement without the written
approval of the Receiver) by, any Indemnitee in connection with any action that seeks
damages against any Indemnitee (a “Counterclaim”) arising with respect to any Asset and
based on any action or inaction of either the Failed Bank, its directors, officers,
employees or agents as such prior to the Bank Closing Date, unless any such judgment, fine
or amount paid in settlement exceeds the greater of (A) the Repurchase



			
	 	 	 
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Price of such Asset, or (B) the monetary recovery sought on such Asset by the Assuming
Institution in the cause of action from which the Counterclaim arises; and in such event the
Receiver will provide indemnification only in the amount of such excess; and no
indemnification will be provided for any costs or expenses other than any costs or expenses
(including attorneys’ fees) which, in the determination of the Receiver, have been actually
and reasonably incurred by such Indemnitee in connection with the defense of any such
Counterclaim; and it is expressly agreed that the Receiver reserves the right to intervene,
in its discretion, on its behalf and/or on behalf of the Receiver, in the defense of any
such Counterclaim;




          (ii) claims with respect to any liability or obligation of the Failed Bank that is
expressly assumed by the Assuming Institution pursuant to this Agreement or subsequent to
the execution hereof by the Assuming Institution or any Subsidiary or Affiliate of the
Assuming Institution;




          (iii) claims with respect to any liability of the Failed Bank to any resent or former
employee as such of the Failed Bank or of any Subsidiary or Affiliate of the Failed Bank,
which liability is expressly assumed by the Assuming Institution pursuant to this Agreement
or subsequent to the execution hereof by the Assuming Institution or any Subsidiary or
Affiliate of the Assuming Institution;




          (iv) claims based on the failure of any Indemnitee to seek recovery of damages from the
Receiver for any claims based upon any action or inaction of the Failed Bank, its directors,
officers, employees or agents as fiduciary, agent or custodian prior to the Bank Closing
Date;




          (v) claims based on any violation or alleged violation by any Indemnitee of the
antitrust, branching, banking or bank holding company or securities laws of the United
States of America or any State thereof;




          (vi) claims based on the rights of any present or former creditor, customer, or
supplier as such of the Assuming Institution or any Subsidiary or Affiliate of the Assuming
Institution;




          (vii) claims based on the rights of any present or former shareholder as such of the
Assuming Institution or any Subsidiary or Affiliate of the Assuming Institution regardless
of whether any such present or former shareholder is also a present or former shareholder of
the Failed Bank;




          (viii) claims, if the Receiver determines that the effect of providing such
indemnification would be to (A) expand or alter the provisions of any warranty or disclaimer
thereof provided in Section 3.3 or any other provision of this Agreement, or (B) create any
warranty not expressly provided under this Agreement;




          (ix) claims which could have been enforced against any Indemnitee had the Assuming
Institution not entered into this Agreement;



			
	 	 	 
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          (x) claims based on any liability for taxes or fees assessed with respect to the
consummation of the transactions contemplated by this Agreement, including without
limitation any subsequent transfer of any Assets or Liabilities Assumed to any Subsidiary or
Affiliate of the Assuming Institution;




          (xi) except as expressly provided in this Article XII, claims based on any action or
inaction of any Indemnitee, and nothing in this Agreement shall be construed to provide
indemnification for (i) the Failed Bank, (ii) any Subsidiary or Affiliate of the Failed
Bank, or (iii) any present or former director, officer, employee or agent of the Failed Bank
or its Subsidiaries or Affiliates; provided that the Receiver, in its sole and absolute
discretion, may provide indemnification hereunder for any present or former director,
officer, employee or agent of the Failed Bank or its Subsidiaries or Affiliates who is also
or becomes a director, officer, employee or agent of the Assuming Institution or its
Subsidiaries or Affiliates;




          (xii) claims or actions which constitute a breach by the Assuming Institution of the
representations and warranties contained in Article XI;




          (xiii) claims arising out of or relating to the condition of or generated by an Asset
arising from or relating to the presence, storage or release of any hazardous or toxic
substance, or any pollutant or contaminant, or condition of such Asset which violate any
applicable Federal, State or local law or regulation concerning environmental protection;
and




          (xiv) claims based on, related to or arising from any asset, including a loan, acquired
or liability assumed by the Assuming Institution, other than pursuant to this Agreement.



     12.2. Conditions Precedent to Indemnification. It shall be a condition precedent to
the obligation of the Receiver to indemnify any Person pursuant to this Article XII that such
Person shall, with respect to any claim made or threatened against such Person for which such
Person is or may be entitled to indemnification hereunder:



          (a) give written notice to the Regional Counsel (Litigation Branch) of the Corporation in the
manner and at the address provided in Section 13.6 of such claim as soon as practicable after such
claim is made or threatened; provided that notice must be given on or before the date which is six
(6) years from the date of this Agreement;




          (b) provide to the Receiver such information and cooperation with respect to such claim as the
Receiver may reasonably require;




          (c) cooperate and take all steps, as the Receiver may reasonably require, to preserve and
protect any defense to such claim;




          (d) in the event suit is brought with respect to such claim, upon reasonable prior notice,
afford to the Receiver the right, which the Receiver may exercise in its sole and absolute
discretion, to conduct the investigation, control the defense and effect settlement of such claim,
including without limitation the right to designate counsel and to control all negotiations,




			
	 	 	 
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litigation, arbitration, settlements, compromises and appeals of any such claim, all of which
shall be at the expense of the Receiver; provided that the Receiver shall have notified the Person
claiming indemnification in writing that such claim is a claim with respect to which such Person is
entitled to indemnification under this Article XII;




          (e) not incur any costs or expenses in connection with any response or suit with respect to
such claim, unless such costs or expenses were incurred upon the written direction of the Receiver;
provided that the Receiver shall not be obligated to reimburse the amount of any such costs or
expenses unless such costs or expenses were incurred upon the written direction of the Receiver;




          (f) not release or settle such claim or make any payment or admission with respect thereto,
unless the Receiver consents thereto; provided that the Receiver shall not be obligated to
reimburse the amount of any such settlement or payment unless such settlement or payment was
effected upon the written direction of the Receiver; and




          (g) take such reasonable action as the Receiver may request in writing as necessary to
preserve, protect or enforce the rights of the Indemnitee against any Primary Indemnitor.




     12.3. No Additional Warranty. Nothing in this Article XII shall be construed or
deemed to (a) expand or otherwise alter any warranty or disclaimer thereof provided under Section
3.3 or any other provision of this Agreement with respect to, among other matters, the title,
value, collectability, genuineness, enforceability, documentation, condition or freedom from liens
or encumbrances, of any (i) Asset, or (ii) asset of the Failed Bank purchased by the Assuming
Institution subsequent to the execution of this Agreement by the Assuming Institution or any
Subsidiary or Affiliate of the Assuming Institution, or (b) create any warranty not expressly
provided under this Agreement with respect thereto.



     12.4. Indemnification of Receiver and Corporation. From and after the Bank Closing
Date, the Assuming Institution agrees to indemnify and hold harmless the Corporation and the
Receiver and their respective directors, officers, employees and agents from and against any and
all costs, losses, liabilities, expenses (including attorneys’ fees), judgments, fines and amounts
paid in settlement actually and reasonably incurred in connection with any of the following:



          (a) claims based on any and all liabilities or obligations of the Failed Bank assumed by the
Assuming Institution pursuant to this Agreement or subsequent to the execution hereof by the
Assuming Institution or any Subsidiary or Affiliate of the Assuming Institution, whether or not any
such liabilities subsequently are sold and/or transferred, other than any claim based upon any
action or inaction of any Indemnitee as provided in Section 12.1(a)(vii) or (viii);




          (b) claims based on any act or omission of any Indemnitee (including but not limited to claims
of any Person claiming any right or title by or through the Assuming Institution with respect to
Assets transferred to the Receiver pursuant to Section 3.4 or Section 3.6), other than any action
or inaction of any Indemnitee as provided in (vii) or (viii) of Section 12.1(a); and




			
	 	 	 
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          (c) claims based on any failure to preserve, maintain or provide reasonable access to Records
transferred to the Assuming Institution pursuant to Article VI.




     12.5. Obligations Supplemental. The obligations of the Receiver, and the Corporation
as guarantor in accordance with Section 12.7, to provide indemnification under this Article XII are
to supplement any amount payable by any Primary Indemnitor to the Person indemnified under this
Article XII. Consistent with that intent, the Receiver agrees only to make payments pursuant to
such indemnification to the extent not payable by a Primary Indemnitor. If the aggregate amount of
payments by the Receiver, or the Corporation as guarantor in accordance with Section 12.7, and all
Primary Indemnitors with respect to any item of indemnification under this Article XII exceeds the
amount payable with respect to such item, such Person being indemnified shall notify the Receiver
thereof and, upon the request of the Receiver, shall promptly pay to the Receiver, or the
Corporation as appropriate, the amount of the Receiver’s (or Corporation’s) payments to the extent
of such excess.



     12.6. Criminal Claims. Notwithstanding any provision of this Article XII to the
contrary, in the event that any Person being indemnified under this Article XII shall become
involved in any criminal action, suit or proceeding, whether judicial, administrative or
investigative, the Receiver shall have no obligation hereunder to indemnify such Person for
liability with respect to any criminal act or to the extent any costs or expenses are attributable
to the defense against the allegation of any criminal act, unless (a) the Person is successful on
the merits or otherwise in the defense against any such action, suit or proceeding, or (b) such
action, suit or proceeding is terminated without the imposition of liability on such Person.



     12.7. Limited Guaranty of the Corporation. The Corporation hereby guarantees
performance of the Receiver’s obligation to indemnify the Assuming Institution as set forth in this
Article XII. It is a condition to the Corporation’s obligation hereunder that the Assuming
Institution shall comply in all respects with the applicable provisions of this Article XII. The
Corporation shall be liable hereunder only for such amounts, if any, as the Receiver is obligated
to pay under the terms of this Article XII but shall fail to pay. Except as otherwise provided
above in this Section 12.7, nothing in this Article XII is intended or shall be construed to create
any liability or obligation on the part of the Corporation, the United States of America or any
department or agency thereof under or with respect to this Article XII, or any provision hereof, it
being the intention of the parties hereto that the obligations undertaken by the Receiver under
this Article XII are the sole and exclusive responsibility of the Receiver and no other Person or
entity.



     12.8. Subrogation. Upon payment by the Receiver, or the Corporation as guarantor in
accordance with Section 12.7, to any Indemnitee for any claims indemnified by the Receiver under
this Article XII, the Receiver, or the Corporation as appropriate, shall become subrogated to all
rights of the Indemnitee against any other Person to the extent of such payment.



ARTICLE XIII. MISCELLANEOUS.




     13.1. Costs, Fees, and Expenses. All fees, costs and expenses incurred by a party in
connection with this Agreement (including the performance of any obligations or the exercise of any
rights hereunder) shall be borne by such party unless expressly otherwise provided; provided



			
	 	 	 
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that the Assuming Institution shall pay all fees, costs and expenses (other than attorneys’
fees incurred by the Receiver) incurred in connection with the transfer to it of any Assets or
Liabilities Assumed hereunder or in accordance herewith.




     13.2. WAIVER OF JURY TRIAL. EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES,
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, ALL RIGHT TO TRIAL BY JURY IN OR TO HAVE A JURY
PARTICIPATE IN RESOLVING ANY DISPUTE, ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER SOUNDING IN
CONTRACT, TORT OR OTHERWISE, ARISING OUT OF OR RELATING TO OR IN CONNECTION WITH THIS AGREEMENT OR
ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.



     13.3. Consent; Determination or Discretion. When the consent or approval of a party
is required under this Agreement, such consent or approval shall be obtained in writing and unless
expressly otherwise provided, shall not be unreasonably withheld or delayed. When a determination
or decision is to be made by a party under this Agreement, that party shall make such determination
or decision in its reasonable discretion unless expressly otherwise provided.



     13.4. Rights Cumulative. Except as expressly otherwise provided herein, the rights of
each of the parties under this Agreement are cumulative, may be exercised as often as any party
considers appropriate and are in addition to each such party’s rights under this Agreement, any of
the agreements related thereto or under applicable law. Any failure to exercise or any delay in
exercising any of such rights, or any partial or defective exercise of such rights, shall not
operate as a waiver or variation of that or any other such right, unless expressly otherwise
provided.



     13.5. References. References in this Agreement to Recitals, Articles, Sections,
Schedules and Exhibits are to Recitals, Articles, Sections, Schedules and Exhibits of this
Agreement, respectively, unless the context indicates that a Shared-Loss Agreement is intended.
References to parties are to the parties to this Agreement. Unless expressly otherwise provided,
references to days and months are to calendar days and months respectively. Article and Section
headings are for convenient reference and shall not affect the meaning of this Agreement.
References to the singular shall include the plural, as the context may require, and vice versa.



     13.6. Notice.



          (a) Form of Notices. All notices shall be given in writing and provided in accordance
with the provisions of this Section 13.6, unless expressly otherwise provided.




          (b) Notice to the Receiver or the Corporation. With respect to a notice under this
Agreement:



Federal Deposit Insurance Corporation

1601 Bryan Street, Suite 1700

Dallas, Texas 75201

Attention: Settlement Agent



In addition, with respect to notices under Section 4.6, with a copy to:




			
	 	 	 
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Attention: Resolutions and Closings Manager, ORE Department
Iwona E. Blazewski

IBlazewski@fdic.gov and BankPremiseNotice@fdic.gov




In addition, with respect to notice under Article XII:



Attention: Regional Counsel

Federal Deposit Insurance Corporation, Legal Division

1601 Bryan Street

Dallas, Texas 75201



In addition, with respect to communications under Exhibit 4.13, a copy to:





			
	                    Attention:	 	Interim Servicing Manager

FDIC as Receiver for Cortez Community Bank





          (c) Notice to Assuming Institution. With respect to a notice under this Agreement:





			
	                     Attention:	 	Daniel M. Healy

Chief Executive Officer

5301 Blue Lagoon Drive

Suite 200

Miami, FL 33126






			
	                    with a copy to:	 	Kent Ellert

President and Chief Operating Officer





     13.7. Entire Agreement. This Agreement and the Shared-Loss Agreements, if any,
including the Schedules and Exhibits hereto and thereto, embody the entire agreement of the parties
hereto in relation to the subject matter herein and supersede all prior understandings or
agreements, oral or written, between the parties.



     13.8. Counterparts. This Agreement may be executed in any number of counterparts and
by the duly authorized representative of a different party hereto on separate counterparts, each of
which when so executed shall be deemed to be an original and all of which when taken together shall
constitute one and the same Agreement.



     13.9. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS HEREUNDER SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE FEDERAL LAW OF THE UNITED STATES OF AMERICA, AND
IN THE ABSENCE OF CONTROLLING FEDERAL LAW, IN ACCORDANCE WITH THE LAWS OF THE STATE IN WHICH THE
MAIN OFFICE OF THE FAILED BANK IS LOCATED.



     13.10. Successors. All terms and conditions of this Agreement shall be binding on the
successors and assigns of the Receiver, the Corporation and the Assuming Institution. Except as
otherwise specifically provided in this Agreement, nothing expressed or referred to in this



			
	 	 	 
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Agreement is intended or shall be construed to give any Person other than the Receiver, the
Corporation and the Assuming Institution any legal or equitable right, remedy or claim under or
with respect to this Agreement or any provisions contained herein, it being the intention of the
parties hereto that this Agreement, the obligations and statements of responsibilities hereunder,
and all other conditions and provisions hereof are for the sole and exclusive benefit of the
Receiver, the Corporation and the Assuming Institution and for the benefit of no other Person.




     13.11. Modification. No amendment or other modification, rescission or release of any
part of this Agreement or a Shared-Loss Agreement, if any, shall be effective except pursuant to a
written agreement subscribed by the duly authorized representatives of the parties.



     13.12. Manner of Payment. All payments due under this Agreement shall be in lawful
money of the United States of America in immediately available funds as each party hereto may
specify to the other parties; provided that in the event the Receiver or the Corporation is
obligated to make any payment hereunder in the amount of $25,000.00 or less, such payment may be
made by check.



     13.13. Waiver. Each of the Receiver, the Corporation and the Assuming Institution may
waive its respective rights, powers or privileges under this Agreement; provided that such waiver
shall be in writing; and further provided that no failure or delay on the part of the Receiver, the
Corporation or the Assuming Institution to exercise any right, power or privilege under this
Agreement shall operate as a waiver thereof, nor will any single or partial exercise of any right,
power or privilege under this Agreement preclude any other or further exercise thereof or the
exercise of any other right, power or privilege by the Receiver, the Corporation or the Assuming
Institution under this Agreement, nor will any such waiver operate or be construed as a future
waiver of such right, power or privilege under this Agreement.



     13.14. Severability. If any provision of this Agreement is declared invalid or
unenforceable, then, to the extent possible, all of the remaining provisions of this Agreement
shall remain in full force and effect and shall be binding upon the parties hereto.



     13.15. Term of Agreement. This Agreement shall continue in full force and effect
until the tenth (10th) anniversary of the Bank Closing Date; provided that the provisions of
Sections 6.3 and 6.4 shall survive the expiration of the term of this Agreement; and provided
further that the receivership of the Failed Bank may be terminated prior to the expiration of the
term of this Agreement, and in such event, the guaranty of the Corporation, as provided in and in
accordance with the provisions of Section 12.7, shall be in effect for the remainder of the term of
this Agreement. Expiration of the term of this Agreement shall not affect any claim or liability of
any party with respect to any (a) amount which is owing at the time of such expiration, regardless
of when such amount becomes payable, and (b) breach of this Agreement occurring prior to such
expiration, regardless of when such breach is discovered.



     13.16. Survival of Covenants, Etc. The covenants, representations, and warranties in
this Agreement shall survive the execution of this Agreement and the consummation of the
transactions contemplated hereunder.



[Signature
Page Follows]




			
	 	 	 
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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly
authorized representatives as of the date first above written.



	 	 	 	 	 	 	 	 	 

	 	 	 	 	FEDERAL DEPOSIT INSURANCE CORPORATION,

RECEIVER OF CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	BY:
	 	/s/ Ann G. Hill
 

ANN G. HILL
	 	 
	 

	 	 	 	 	 	RECEIVER-IN-CHARGE	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Margretta J. Garnett
 


	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	FEDERAL DEPOSIT INSURANCE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	BY:
	 	/s/ Ann G. Hill
 

ANN G. HILL
	 	 
	 

	 	 	 	 	 	ATTORNEY-IN-FACT	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Margretta J. Garnett
 


	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	PREMIER AMERICAN BANK, N.A.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	BY:
	 	/s/ Kent S. Ellert
 

KENT S. ELLERT
	 	 
	 

	 	 	 	 	 	CHIEF OPERATING OFFICER	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Scott Tkacz
 


	 	 	 	 	 	 	 	 






			
	 	 	 
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SCHEDULE 2.1(a)




EXCLUDED
DEPOSIT LIABILITY ACCOUNTS


Cortez Community Bank has deposits associated with the Depository Organization (DO) Cede & Co as
Nominee for DTC. The DO accounts do not pass to the Assuming Bank and are excluded from the
transaction as described in section 2.1 of the P&A Agreement. The DO Detail Report identifies six
DO accounts with a balance of $6,373,000 as of March 7, 2011. This Schedule will be updated post
closing with data as of Bank Closing date.




			
	 	 	 
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SCHEDULE 3.2




PURCHASE PRICE OF ASSETS OR ANY OTHER ASSETS



	 	 	 	 	 

	(a)

	 	cash and receivables from depository
institutions, including cash items in
the
process of collection,
plus interest thereon:
	 	Book Value
	 
	 	 	 	 
	(b)

	 	securities (exclusive of the capital
stock of Acquired Subsidiaries and FHLB
stock),
plus interest thereon:
	 	As provided in Section 3.2(b)
	 
	 	 	 	 
	(c)

	 	federal funds sold and repurchase
agreements, if any, including interest
thereon:
	 	Book Value
	 
	 	 	 	 
	(d)

	 	Loans;
	 	Book Value
	 
	 	 	 	 
	(e)

	 	credit card business:
	 	Book Value
	 
	 	 	 	 
	(f)

	 	Safe Deposit Boxes and related business,
safekeeping business and trust business,
if
any:
	 	Book Value
	 
	 	 	 	 
	(g)

	 	Records and other documents:
	 	Book Value
	 
	 	 	 	 
	(h)

	 	Other Real Estate:
	 	Book Value
	 
	 	 	 	 
	(i)

	 	boats, motor vehicles, aircraft,
trailers, fire arms, and repossessed
collateral
	 	Book Value
	 
	 	 	 	 
	(j)

	 	capital stock of any Acquired
Subsidiaries (subject to Section 3.2(b),
and FHLB stock:
	 	Book Value
	 
	 	 	 	 
	(k)

	 	amounts owed to the Failed Bank by any
Acquired Subsidiaries:
	 	Book Value
	 
	 	 	 	 
	(l)

	 	assets securing Deposits of public money,
to the extent not otherwise purchased
hereunder:
	 	Book Value
	 
	 	 	 	 
	(m)

	 	overdrafts of customers:
	 	Book Value
	 
	 	 	 	 
	(n)

	 	rights, if any, with respect to
Qualified Financial Contracts:
	 	As provided in Section 3.2(c)






			
	 	 	 
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	(o)

	 	rights of the Failed Bank to have
mortgage servicing provided to the
Failed Bank by
others and related contracts:
	 	Book Value
	 
	 	 	 	 
	(q)

	 	Personal Computers and Owned Data
Management Equipment:
	 	Fair Market Value






Assets subject to an option to purchase:




	 	 	 	 	 

	(a)

	 	Bank Premises:
	 	Fair Market Value
	 
	 	 	 	 
	(b)

	 	Furniture and Equipment:
	 	Fair Market Value
	 
	 	 	 	 
	(c)

	 	Fixtures:
	 	Fair Market Value
	 
	 	 	 	 
	(d)

	 	Other Equipment:
	 	Fair Market Value






			
	 	 	 
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SCHEDULE 3.5(l)




EXCLUDED SECURITIES


NONE



			
	 	 	 
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SCHEDULE 6.3




DATA RETENTION CATALOG






FDIC_Acquirer_Data_Retention_Catalog_v2.0








FDIC Data Management Services (DMS)




Acquirer Data Retention Catalog

Version 2.0



Failed Institution



Name

Data Center Address




Assuming Institution



Name

Address




DRC




DRC Preparer’s Contact



Name

Designation

Phone

Email




Alternate Contact for Subsequent Data Request (if different from above)



Name

Designation

Phone

Email




Instructions




	1.	 	Provide preparer’s contact information and bank information on the “Cover Page” tab.
	 
	2.	 	Provide point of contact and desired procedure for data requests on the “Data Request Procedure” Tab.
	 
	3.	 	Provide the requested application retention details on “Data Retention” tab of this workbook.






	 	a.	 	Update provided application list with any additional systems that were not included
	 
	 	b.	 	Select the most appropriate value from the drop down list when the list is provided with applicable column.




If you need additional clarification while recording the information, please call Kevin Sheehan (FDIC) at
703-562-2012 or Leslie Bowie (FDIC) at 703-562-6262. Send the final copy of this document to Leslie Dailey
LDaley@FDIC.gov.






					
	 	 	 	 	 
	FDIC Confidential
	 	5/25/2010
	 	 






			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Purchase and Assumption Agreement
	 	BROOKSVILLE, FLORIDA
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	APPLICATION CLASSIFICATION	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Explain if partial	 	 	 	Time Duration for	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Data exists in the	 	data exists in the	 	 	 	Application in	 	Time Duration for	 	Time Duration for	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Core Banking	 	Core Banking	 	Hosting	 	Operating	 	Online Data	 	Offline Date	 	 	 	 	 	 	 	 	 	 
	Application Name	 	Sub-Category	 	Business Usage	 	Vendor	 	application	 	application	 	Platform	 	From	 	To	 	From	 	To	 	From	 	To	 	Office Data Details	 	Acquirer Plan	 	Migration Details	 	Documentation Schedules	 	Comments
	Provide the
name of the
applications

	 	Select the most

appropriate

category

represented the

applications
	 	Describe the
business users and
key processes
supported by the
application
	 	Provide the
name of the vendor
	 	Indicate whether

the application

data also exists in

the core banking

application
	 	Provide an

explanation if

partial date exist

in the core banking

application
	 	Select the
deployment model of
the application
	 	Provide the time duration
(Month & Year) for which
the application is
operation.
	 	Provide the time duration
(Month & Year) for which
data is available online.
	 	Provide the time duration
(Month & Year) for which
data is available
offline.
	 	Select the
appropriate
mechanism
representing the
offline data.
	 	Select the most
appropriate option
that defines the
acquirer plan for
the application.
	 	Provide the
 details
of data
 being
migrated
 to the
target
 system (type
of 
data, volume
 and
date range)
	 	Provide details of
the data not being
migrated to the
target system
	 	Select the appropriate
timeline if
application
decommissioning is
planned in future
	 	Provide any
additional comments
related to the
retention plans
associated with the
application’s data

	Core Banking Application	 	 	 	 	 	 	 	 	 	Insert more rows as needed	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 		 	 	 	 	 		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	• Maintaining As-Is	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	o   Loan Servicing	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	o   Loan History	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	• Migrating	 	 	 	 	 	 
	 	 	 	o   Deposit Accounts	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	o  Active Accounts
	 	 	 	 	 	 
	 	 	 	o   Account Balances	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	o  Inactive Accounts
	 	 	 	 	 	 
	 	 	 	o   Customer Information	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	o  Closed Accounts
	 	 	 	 	 	 
	 	 	 	o   ACH Details	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	o  Transaction History
	 	 	 	 	 	 
	 	 	 	o   Wire Transfer Details	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	o  Other (Provide Comments)
	 	 	 	 
	 	 	 	o   General Ledger	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	o   Accounts Payable	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	• Not Maintaining	 	 	 	 	 	 
	 	 	 	o   Other:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	o  Tape Backups
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	o  Data With Servicer
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	o  Data Not Available
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	o  Data Deleted
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	o   Other (Provide Comments)
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Applications Category: Loans	 	 	 	 	 	 	 	 	 	Insert more rows as needed	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Applications Category: Deposits	 	 	 	 	 	 	 	 	 	Insert more rows as needed	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Applications Category: Financials	 	 	 	 	 	 	 	 	 	Insert more rows as needed	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Applications Category: HR	 	 	 	 	 	 	 	 	 	Insert more rows as needed	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Applications Category: Corporate	 	 	 	 	 	 	 	 	 	Insert more rows as needed	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Applications Category: Imaging	 	 	 	 	 	 	 	 	 	Insert more rows as needed	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Applications Category; Email	 	 	 	 	 	 	 	 	 	Insert more rows as needed	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Production
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Tape Backup

Schedule:	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 <Provide
details>
Retention Policy:	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 <Provide
details>
Deletion Policy:	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 <Provide
details>	 	 	 	 	 	 	 	 	 	 	 	 
	Applications Category: File Shares	 	 	 	 	 	 	 	 	 	Insert more rows as needed	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	User Share	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Application	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Line of Business	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Line of Business	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 






			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Purchase and Assumption Agreement
	 	BROOKSVILLE, FLORIDA
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SCHEDULE 7




Accounts Excluded from Calculation of Deposit Franchise Bid Premium



Cortez Community Bank

Brooksville, FL


The accounts identified below will pass to the Assuming Bank (unless otherwise noted). When
calculating the premium to be paid on Assumed Deposits in a P&A transaction, the FDIC will exclude
the following categories of deposit accounts:




	 	 	 	 	 	 	 	 	 
	Category	 	 	Description	 	Amount	 
	 	I	 	 	Non- DO Brokered Deposits
	 	$	113,322	 
	 	II	 	 	CDARS
	 	 	 None	 
	 	III	 	 	Market Place Deposits
	 	$	12,542,000	 
	 	 	 	 	 
	 	 	 
	 	 	 	 	Total deposits excluded from Calculation of premium
	 	$	12,655,322	 
	 	 	 	 	 
	 	 	 






Category Description




I. Brokered Deposits



Brokered deposit accounts are accounts for which the “depositor of record” is an agent, nominee, or
custodian who deposits funds for a principal or principals to whom “pass-through” deposit insurance
coverage may be extended. The FDIC separates brokered deposit accounts into 2 categories: 1)
Depository Organization (DO) Brokered Deposits and 2) Non-Depository Organization (Non-DO) Brokered
Deposits. This distinction is made by the FDIC to facilitate our role as Receiver and Insurer.
These terms will not appear on other “brokered deposit” reports generated by the institution.



Non-DO Brokered Deposits pass to the Assuming Bank, but are excluded from Assumed Deposits when the
deposit premium is calculated. Please see the attached “Schedule 7 Non-DO Broker Deposit Detail
Report” for a listing of these accounts. This list will be updated post closing with balances as of
Bank Closing date.



DO Brokered Deposits (Cede & Co as Nominee for DTC), are typically excluded from Assumed Deposits
in the P&A transaction. A list of these accounts is provided on “Schedule 2.1 DO Brokered Deposit
Detail Report.” If, however, the terms of a particular transaction are altered and the DO Brokered
Deposits pass to the Assuming Bank, they will not be included in Assumed Deposits for purposes of
calculating the deposit premium.




II. CDARS



CDARS deposits pass to the Assuming Bank, but are excluded from Assumed Deposits when the deposit
premium is calculated.



Cortez Community Bank did not participate in the CDARS program as of the date of the deposit
download. If CDARS deposits are taken between the date of the deposit download and the Bank




			
	 	 	 
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	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Purchase and Assumption Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






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Closing Date, they will be identified post closing and made part of Schedule 7 to the P&A
Agreement.




III. Market Place Deposits



“Market Place Deposits” is a description given to deposits that may have been solicited via a money
desk, internet subscription service (for example, Qwickrate), or similar programs.



This schedule provides a snapshot of account categories and balances as of March 7, 2011, which is
the date of the deposit download. The deposit franchise bid premium will be calculated using
account categories and balances as of Bank Closing Date that are reflected in the general ledger or
subsystem as described above. The final numbers for Schedule 7 will be provided post closing.




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Purchase and Assumption Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






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EXHIBIT 2.3A




FINAL LEGAL NOTICE

Claiming Requirements for Deposits

Under 12 U.S.C. 1822(e)



[Date]



[Name of Unclaimed Depositor]

[Address of Unclaimed Depositor]

[Anytown, USA]





			
	Subject:	 	[XXXXX — Name of Bank

City, State] — In Receivership




Dear [Sir/Madam]:




          As you may know, on [Date: Closing Date], the [Name of Bank (“The Bank”)]
was closed and the
Federal Deposit Insurance Corporation (“FDIC”) transferred [The Bank’s] accounts to [Name of
Acquiring Institution].




          According to federal law under 12 U.S.C., 1822(e), on [Date: eighteen months from the Closing
Date], [Name of Acquiring Institution] must transfer the funds in your account(s) back to the FDIC
if you have not claimed your account(s) with [Name of Acquiring Institution]. Based on the records
recently supplied to us by [Name of Acquiring Institution], your account(s) currently fall into
this category.




          This letter is your formal Legal Notice that you have until [Date: eighteen months from the
Closing Date], to claim or arrange to continue your account(s) with [Name of Acquiring
Institution]. There are several ways that you can claim your account(s) at [Name of Acquiring
Institution]. It is only necessary for you to take any one of the following actions in order for
your account(s) at [Name of Acquiring Institution] to be deemed claimed. In addition, if you have
more than one account, your claim to one account will automatically claim all accounts:





	1.	 	Write to [Name of Acquiring Institution] and notify them that you wish to keep your
account(s) active with them. Please be sure to include the name of the account(s), the account
number(s), the signature of an authorized signer on the account(s), name, and address. [Name
of Acquiring Institution] address is:





          [123 Main Street




          Anytown, USA]





	2.	 	Execute a new signature card on your account(s), enter into a new deposit agreement with
[Name of Acquiring Institution], change the ownership on your account(s), or renegotiate the
terms of your certificate of deposit account(s) (if any).
	 
	3.	 	Provide [Name of Acquiring Institution] with a change of address form.





			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Purchase and Assumption Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






54









 






	4.	 	Make a deposit to or withdrawal from your account(s). This includes writing a check on any
account or having an automatic direct deposit credited to or an automatic withdrawal debited
from an account.





          If you do not want to continue your account(s) with [Name of Acquiring Institution] for any
reason, you can withdraw your funds and close your account(s). Withdrawing funds from one or more
of your account(s) satisfies the federal law claiming requirement. If you have time deposits, such
as certificates of deposit, [Name of Acquiring Institution] can advise you how to withdraw them
without being charged an interest penalty for early withdrawal.




          If you do not claim ownership of your account(s) at [Name of Acquiring Institution by Date:
eighteen months from the Closing Date] federal law requires [Name of Acquiring Institution] to
return your deposits to the FDIC, which will deliver them as unclaimed property to the State
indicated in your address in the Failed Institution’s records. If your address is outside of the
United States, the FDIC will deliver the deposits to the State in which the Failed Institution had
its main office. 12 U.S.C. § 1822(e). If the State accepts custody of your deposits, you will have
10 years from the date of delivery to claim your deposits from the State. After 10 years you will
be permanently barred from claiming your deposits. However, if the State refuses to take custody of
your deposits, you will be able to claim them from the FDIC until the receivership is terminated.
If you have not claimed your insured deposits before the receivership is terminated, and a
receivership may be terminated at any time, all of your rights in those deposits will be barred.




     If you have any questions or concerns about these items, please contact [Bank Employee] at
[Name of Acquiring Institution] by phone at [(XXX) XXX-XXXX].



Sincerely,




[Name of Claims

Specialist]

[Title]




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Purchase and Assumption Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






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EXHIBIT 2.3B




AFFIDAVIT OF MAILING


AFFIDAVIT OF MAILING



State of



COUNTY OF



I am employed as a [Title of Office] by the [Name of Acquiring Institution].



This will attest that on [Date of mailing], I caused a true and correct copy of the Final Legal
Notice, attached hereto, to owners of unclaimed deposits of [Name of Failed Bank], City, State, to
be prepared for deposit in the mail of the United States of America on behalf of the Federal
Deposit Insurance Corporation. A list of depositors to whom the notice was mailed is attached. This
notice was mailed to the depositor’s last address as reflected on the books and records of the
[Name of Failed Bank] as of the date of failure.









	 	 	 	 	 

	 

	 	 
 

	 	 
	 

	 	[Name]	 	 
	 

	 	[Title of Office]	 	 
	 

	 	[Name of Acquiring Institution]	 	 





Subscribed and sworn to before me this                      day of
[Month, Year].



My commission expires:












	 	 	 	 	 	 	 

	 
 


	 	 
	 	  

          [Name],
Notary Public
	 	 





			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Purchase and Assumption Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






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EXHIBIT 3.2(c)




VALUATION OF CERTAIN



QUALIFIED FINANCIAL CONTRACTS




	A.	 	Scope
	 
	 	 	Interest Rate Contracts — All interest rate swaps, forward rate agreements, interest rate
futures, caps, collars and floors, whether purchased or written.
	 
	 	 	Option Contracts — All put and call option contracts, whether purchased or written, on
marketable securities, financial futures, foreign currencies, foreign exchange or foreign
exchange futures contracts.
	 
	 	 	Foreign Exchange Contracts — All contracts for future purchase or sale of foreign
currencies, foreign currency or cross currency swap contracts, or foreign exchange futures
contracts.
	 
	B.	 	Exclusions
	 
	 	 	All financial contracts used to hedge assets and liabilities that are acquired by the
Assuming Institution but are not subject to adjustment from Book Value.
	 
	C.	 	Adjustment
	 
	 	 	The difference between the Book Value and market value as of the Bank Closing Date.
	 
	D.	 	Methodology






	 	1.	 	The price at which the Assuming Institution sells or disposes of Qualified
Financial Contracts will be deemed to be the fair market value of such contracts, if
such sale or disposition occurs at prevailing market rates within a predefined
timetable as agreed upon by the Assuming Institution and the Receiver.
	 
	 	2.	 	In valuing all other Qualified Financial Contracts, the following principles
will apply:






	 	(i)	 	All known cash flows under swaps or forward exchange contracts
shall be present valued to the swap zero coupon interest rate curve.
	 
	 	(ii)	 	All valuations shall employ prices and interest rates based on
the actual frequency of rate reset or payment.





			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Purchase and Assumption Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






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	 	(iii)	 	Each tranche of amortizing contracts shall be separately
valued. The total value of such amortizing contract shall be the sum of the
values of its component tranches.
	 
	 	(iv)	 	For regularly traded contracts, valuations shall be at the
midpoint of the bid and ask prices quoted by customary sources (e.g., The Wall
Street Journal, Telerate, Reuters or other similar source) or regularly traded
exchanges.
	 
	 	(v)	 	For all other Qualified Financial Contracts where published
market quotes are unavailable, the adjusted price shall be the average of the
bid and ask price quotes from three (3) securities dealers acceptable to the
Receiver and Assuming Institution as of the Bank Closing Date. If quotes from
securities dealers cannot be obtained, an appraiser acceptable to the Receiver
and the Assuming Institution will perform a valuation based on modeling,
correlation analysis, interpolation or other techniques, as appropriate.





			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Purchase and Assumption Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






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EXHIBIT 4.13 




INTERIM ASSET SERVICING ARRANGEMENT



     This Interim Asset Servicing Arrangement is made pursuant to and as of the date of that
certain Purchase and Assumption Agreement (the “Purchase and Assumption Agreement”) among the
Receiver, the Assuming Institution and the Corporation, to which this Arrangement is attached.
Capitalized terms used and not otherwise defined in this Exhibit 4.13 shall have the meanings
assigned to such terms in the Agreement.



     (a) With respect to each asset or liability designated from time to time by the Receiver to
be serviced by the Assuming Institution pursuant to this Interim Asset Servicing Arrangement (the
"Arrangement”), including any assets or liabilities sold or conveyed by the Receiver to any party
other than the Assuming Institution (any such party, a “Successor Owner”) but with respect to
which the Receiver has an obligation to service or provide servicing support (such assets and
liabilities, the “Pool Assets”), during the term of this Arrangement the Assuming Institution
shall, with respect to the Pool Assets:



          (i) promptly post and apply payments received to the applicable system of record;




          (ii) reverse and return insufficient funds checks;




          (iii) pay (A) participation payments to participants in Loans, as and when received; (B) tax
and insurance bills, as they come due, out of any escrow funds maintained for such purposes; and
(C) unfunded commitments and protective advances out of any escrow funds created for such
purposes;




          (iv) process funding draws under Loans and protective advances in connection with collateral
and acquired property, in each case, as and to the extent authorized and funded by the Receiver;




          (v) maintain in use all data processing equipment and systems and other systems of record on
which any activity with respect to any Pool Assets are, or prior to the Bank Closing Date, were,
recorded, and maintain all historical data on any such systems as of the Bank Closing Date and
not, without the express consent of the Receiver (which consent must be sought at least sixty (60)
days prior to taking any action), deconvert, remove, transfer or otherwise discontinue use of any
of the Failed Bank’s systems of record with respect to any Pool Asset;




          (vi) maintain accurate records reflecting (A) payments received by the Assuming Institution,
(B) information received by the Assuming Institution concerning changes in the address or identity
of any Obligor and (C) other servicing actions taken by the Assuming Institution, including checks
returned for insufficient funds;




          (vii) send (A) billing statements to Obligors on Pool Assets (to the extent that such
statements were sent by the Failed Bank or as are requested by the Receiver) and (B)




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Purchase and Assumption Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






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notices to Obligors who are in default on Loans (in the same manner as the Failed Bank or as
are requested by the Receiver);




          (viii) employ a sufficient number of qualified employees to provide the services required to
be provided by the Assuming Institution pursuant to this Arrangement (with the number and
qualifications of such employees to be not less than the number and qualifications of employees
employed by the Failed Bank to perform such functions as of the Bank Closing Date);




          (ix) hold in trust any Credit Files and any servicing files in the possession or on the
premises of the Assuming Institution for the Receiver or the Successor Owner (as applicable) and
segregate from the other books and records of the Assuming Institution and appropriately mark such
Credit Files and servicing files to clearly reflect the ownership interest of the Receiver or the
successor owner (as applicable);




          (x) send to the Receiver (indicating closed bank name and number), Attn: Interim Servicing
Manager, at the email address provided in Section 13.6 of the Purchase and Assumption Agreement, or
to such other person at such address as the Receiver may designate, via overnight delivery: (A) on
a weekly basis, weekly reports, including, without limitation, reports reflecting collections and
trial balances, and (B) any other reports, copies or information as may be requested from time to
time by the Receiver, including, if requested, copies of (1) checks or other remittances received,
(2) insufficient funds checks returned, (3) checks or other remittances for payment to participants
or for taxes, insurance, funding advances and protective advances, (4) pay-off requests, and (5)
notices to defaulted Obligors;




          (xi) remit on a weekly basis to the Receiver (indicating closed bank name and number), Attn:
DRR Cashier Unit, Business Operations Support Branch, in the same manner as provided in paragraph
(a)(x), via wire transfer to the account designated by the Receiver, or to such other person at
such other address and/or account as the Receiver may designate, all payments received;




          (xii) prepare and timely file all information reports with appropriate tax authorities, and,
if requested by the Receiver, prepare and file tax returns and remit taxes due on or before the due
date;




          (xiii) provide and furnish such other services, operations or functions, including, without
limitation, with regard to any business, enterprise or agreement which is a Pool Asset, as may be
requested by the Receiver;




          (xiv) establish a custodial account for the Receiver and for each successor owner at the
Assuming Institution, each of which shall be interest bearing, titled in the name of Assuming
Institution, in trust for the Receiver or the successor owner (as applicable), in each case as the
owner, and segregate and hold all funds collected and received with respect to the Pool Assets
separate and apart from any of the Assuming Institution’s own funds and general assets; and




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Purchase and Assumption Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 







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          (xv) no later than the end of the second Business Day following receipt thereof, deposit
into the applicable custodial account and retain therein all funds collected and received with
respect to the Pool Assets.



Notwithstanding anything to the contrary in this Exhibit, the Assuming Institution shall not be
required to initiate litigation or other collection proceedings against any Obligor or any
collateral with respect to any defaulted Loan. The Assuming Institution shall promptly notify the
Receiver, at the address referred to above in paragraph (a)(x), of any claims or legal actions
regarding any Pool Asset.




     (b) In consideration for the provision of the services provided pursuant to this Arrangement,
the Receiver agrees to reimburse the Assuming Institution for actual, reasonable and necessary
expenses incurred in connection with the performance of its duties pursuant to this Arrangement,
including expenses of photocopying, postage and express mail, data processing and amounts paid for
employee services (based upon the number of hours spent performing servicing duties).



     (c) The Assuming Institution shall provide the services described herein for a term of up to
three hundred sixty-five (365) days after the Bank Closing Date. The Receiver may terminate the
Arrangement at any time upon not less than sixty (60) days notice to the Assuming Institution
without any liability or cost to the Receiver other than the fees and expenses due to the Assuming
Institution as of the termination date pursuant to paragraph (b) above.



     (d) At any time during the term of this Arrangement, the Receiver may, upon not less than
thirty (30) days prior written notice to the Assuming Institution, remove one or more Pool Assets,
and at the time of such removal the Assuming Institution’s responsibility with respect thereto
shall terminate.



     (e) At the expiration of this Arrangement or upon the termination of the Assuming
Institution’s responsibility with respect to any Pool Asset pursuant to paragraph (d) hereof, the
Assuming Institution shall:




     (i) deliver to the Receiver (or its designee) all of the Credit Documents and records
relating to the Pool Assets; and




     (ii) cooperate with the Receiver to facilitate the orderly transition of managing the
Pool Assets to the Receiver or its designees (including, without limitation, its contractors
and persons to which any Pool Assets are conveyed).



     (f) At the request of the Receiver, the Assuming Institution shall perform such transitional
services with regard to the Pool Assets as the Receiver may request. Transitional services may
include, without limitation, assisting in any due diligence process deemed necessary by the
Receiver and providing to the Receiver and its designees (including, without limitation, its
contractors and any actual or potential successor owners) (i) information and data regarding the
Pool Assets, including, without limitation, system reports and data downloads sufficient to
transfer the Pool Assets to another system or systems and to facilitate due diligence by actual and



			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 —
Purchase and Assumption
Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






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potential successor owners, and (ii) access to employees of the Assuming Institution involved
in the management of, or otherwise familiar with, the Pool Assets.




     (g) Until such time as the Arrangement expires or is terminated, without limitation of its
obligations set forth above or in the Purchase and Assumption Agreement and without any additional
consideration (other than that set forth in paragraph (b) above), the Assuming Institution shall
provide the Receiver and its designees (including, without limitation, its contractors and actual
and potential successor owners) with the following, as the same may be requested:




     (i) access to and the ability to obtain assistance and information from personnel of
the Assuming Institution, including former personnel of the Failed Bank and personnel of
third party consultants;




     (ii) access to and the ability to use and download information from data processing
systems and other systems of record on which information regarding Pool Assets or any assets
transferred to or liabilities assumed by the Assuming Institution is stored or maintained
(regardless of whether information with respect to other assets or liabilities is also
stored or maintained thereon); and




     (iii) access to and the ability to use and occupy office space (including parking
facilities and vault space), facilities, utilities (including local telephone service and
facsimile machines), furniture, equipment (including photocopying and facsimile machines),
and technology and connectivity (including email accounts, network access and technology
resources such as shared drives) in the Bank Premises occupied by the Assuming Institution.



			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Purchase and Assumption Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 











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EXHIBIT 4.15A




SINGLE FAMILY SHARED-LOSS AGREEMENT



 









			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 —
Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 





 









 





EXHIBIT 4.15A 

SINGLE FAMILY SHARED-LOSS AGREEMENT




TABLE OF CONTENTS





	 	 	 	 	 
	ARTICLE 1. GENERAL
	 	 	1	 
	 
	 	 	 	 
	1.1 Purpose
	 	 	1	 
	1.2 Relationship with Purchase and Assumption
Agreement
	 	 	1	 
	1.3 Defined Terms
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2. SHARED-LOSS ARRANGEMENT
	 	 	1	 
	 
	 	 	 	 
	2.1 Accounting for and Management of Shared-Loss
Loans
	 	 	1	 
	2.2 Payments with Respect to Shared-Loss Loans
	 	 	2	 
	2.3 Payments Applicable to Shared-Loss Months
	 	 	2	 
	2.4 Loss Mitigation and Loan Modification
	 	 	2	 
	2.5 True-Up Payment and Calculation
	 	 	4	 
	2.6 Limitation on Payments
	 	 	5	 
	2.7 Treatment as a Shared-Loss Loan
	 	 	6	 
	 
	 	 	 	 
	ARTICLE 3. ADMINISTRATION OF SHARED-LOSS LOANS
	 	 	7	 
	 
	 	 	 	 
	3.1 Management Standards Regarding Administration.
	 	 	7	 
	3.2 Assuming Institution’s Responsibilities and Duties.
	 	 	7	 
	3.3 Third Party Servicers and Affiliates
	 	 	9	 
	3.4 Utilization by Assuming Institution of Special
Receivership Powers
	 	 	10	 
	3.5 Tax Ruling
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 4. SALE OF CERTAIN SHARED-LOSS
LOANS AND ORE
	 	 	10	 
	 
	 	 	 	 
	4.1 Sales of Shared-Loss Loans
	 	 	10	 
	4.2 Calculation of Gain or Loss on Sale
	 	 	11	 
	4.3 Sale of ORE
	 	 	11	 
	 
	 	 	 	 
	ARTICLE 5. CERTIFICATES, REPORTS AND
RECORDS
	 	 	11	 
	 
	 	 	 	 
	5.1 Reporting Obligations of the Assuming Institution
	 	 	11	 
	5.2 Monthly Certificates
	 	 	12	 
	5.3 Monthly Data
	 	 	13	 
	5.4 Notification of Related Loans
	 	 	13	 
	5.5 Auditor’s Report; Right to Audit
	 	 	14	 
	5.6 Accounting Principles
	 	 	15	 
	5.7 Records and Reports
	 	 	15	 










	 	 	 	 	 
	ARTICLE 6. MISCELLANEOUS
	 	 	16	 
	 
	 	 	 	 
	6.1 Expenses
	 	 	16	 
	6.2 Successors and Assigns
	 	 	16	 
	6.3 Waiver of Jury Trial
	 	 	17	 
	6.4 No Third Party Beneficiary
	 	 	17	 
	6.5 Consent, Determination or Discretion
	 	 	17	 
	6.6 Rights Cumulative
	 	 	17	 
	6.7 References
	 	 	17	 
	6.8 Notice
	 	 	18	 
	 
	 	 	 	 
	ARTICLE 7. DISPUTE RESOLUTION
	 	 	18	 
	 
	 	 	 	 
	7.1 Methods of Resolution
	 	 	18	 
	7.2 Informal Resolution
	 	 	18	 
	7.3 Resolution by Non-Binding Dispute Resolution
Proceeding
	 	 	19	 
	7.4 Confidentiality of Compromise Negotiations
	 	 	19	 
	7.5 Payment Resulting from Compromise
Negotiations
	 	 	19	 
	7.6 Formal Resolution
	 	 	19	 
	7.7 Limitation on FDIC Party
	 	 	20	 
	7.8 Effectiveness of Agreement Pending Dispute
	 	 	20	 
	7.9 Governing Rules and Law
	 	 	20	 
	7.10 Review Board Proceedings
	 	 	20	 
	7.11 Impartiality
	 	 	22	 
	7.12 Schedule
	 	 	22	 
	7.13 Written Award
	 	 	22	 
	7.14 Interest Rate on Award
	 	 	23	 
	7.15 Payments
	 	 	23	 
	7.16 Fees, Costs and Expenses
	 	 	23	 
	7.17 Binding and Conclusive Nature
	 	 	23	 
	7.18 No Precedent
	 	 	23	 
	7.19 Confidentiality; Proceedings, Information and
Documents
	 	 	23	 
	7.20 Confidentiality of Arbitration Award
	 	 	24	 
	7.21 Extension of Time Periods
	 	 	24	 
	7.22 Venue
	 	 	24	 
	 
	 	 	 	 
	ARTICLE 8. DEFINITIONS
	 	 	24	 











					
	 	 	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	SF-i
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	 	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 	 	 



















 








EXHIBITS




	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	Monthly Certificate
	 	Exhibit 1	 	 	32	 
	 
	 	 	 	 	 	 	 	 
	Calculation of Restructuring Loss
	 	 	 	 	 	 	 	 
	HAMP or FDIC Loan Modification (Loan Written Down)
	 	Exhibit 2a(1)	 	 	34	 
	HAMP or FDIC Loan Modification (No Preceding Loan Restructure)
	 	Exhibit 2a(2)	 	 	36	 
	2nd FDIC Modification
	 	Exhibit 2a(3)	 	 	38	 
	 
	 	 	 	 	 	 	 	 
	Calculation of Short-Sale Loss
	 	 	 	 	 	 	 	 
	Written Down to Book Value
	 	Exhibit 2b(1)	 	 	42	 
	No Preceding Loan Modification Under Loss Share
	 	Exhibit 2b(2)	 	 	44	 
	After a Covered Loan Modification
	 	Exhibit 2b(3)	 	 	46	 
	 
	 	 	 	 	 	 	 	 
	Calculation of Foreclosure Loss
	 	 	 	 	 	 	 	 
	ORE or Foreclosure Occurred Prior to Loss Share Agreement
	 	Exhibit 2c(1)	 	 	50	 
	During the Term of the Agreement, No Preceding Loan Modification Under Loss Share
	 	Exhibit 2c(2)	 	 	52	 
	Foreclosure After Covered Loan Modification
	 	Exhibit 2c(3)	 	 	54	 
	 
	 	 	 	 	 	 	 	 
	Calculation of Home Equity Loan Loss
	 	Exhibit 2d(1)	 	 	58	 
	Calculation of Recovery When a Restructuring Loss Has Been Paid
	 	Exhibit 2d(2)	 	 	60	 
	 
	 	 	 	 	 	 	 	 
	Calculation of Loan Sale Loss
	 	 	 	 	 	 	 	 
	Loan Written Down to Book Value Prior to Loss Share
	 	Exhibit 2e(1)	 	 	63	 
	No Preceding Loan Modification under Loss Share
	 	Exhibit 2e(2)	 	 	64	 
	Loan Sale after a Covered Loan Modification
	 	Exhibit 2e(3)	 	 	65	 
	 
	 	 	 	 	 	 	 	 
	True-Up
	 	Exhibit 2.5	 	 	67	 
	Portfolio Performance and Summary Schedule
	 	Exhibit 3	 	 	68	 
	Wire Transfer Instructions
	 	Exhibit 4	 	 	70	 
	FDIC Mortgage Loan Modification Program
	 	Exhibit 5	 	 	71	 
	Single Family Shared-Loss Loans
	 	Exhibit 5.3(a)	 	 	74	 






SCHEDULE




	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	Loans Subject to Loss Sharing under the Single Family Shared-Loss Agreement
	 	Schedule 4.15A	 	 	79	 






			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 











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EXHIBIT 4.15A




SINGLE FAMILY SHARED-LOSS AGREEMENT


A. This Single Family Shared-Loss Agreement and the Exhibits attached hereto and incorporated
herein by this reference (collectively, the “Agreement”) is made pursuant to and as of the date of
that certain Purchase and Assumption Agreement (the “Purchase and Assumption Agreement”) among the
Receiver, the Assuming Institution and the Corporation, to which this Agreement is attached.



B. This Agreement shall apply only if the Assuming Institution has purchased Shared-Loss Loans (as
defined herein) pursuant to the Purchase and Assumption Agreement. Subject to the provisions of
this Agreement, it is the intention of the parties that the Receiver and the Assuming Institution
shall share certain losses and gains in respect of such Shared-Loss Loans.




A G R E E M E N T




ARTICLE 1. GENERAL.




     1.1. Purpose. The purpose of this Agreement is to set forth requirements regarding,
among other things, management of Shared-Loss Loans by the Assuming Institution and procedures for
notices, consents, reporting and payments. In administering the Shared-Loss Loans, the Assuming
Institution shall at all times comply with the Management Standards set forth in Article 3.



     1.2. Relationship with Purchase and Assumption Agreement. To the extent that any
inconsistencies may arise between the terms of the Purchase and Assumption Agreement and this
Agreement with respect to the subject matter of this Agreement, the terms of this Agreement shall
control.



     1.3. Defined Terms. The capitalized terms used in this Agreement have the meanings
defined or referenced in Article 8.



ARTICLE 2. SHARED-LOSS ARRANGEMENT.




     2.1. Accounting for and Management of Shared-Loss Loans.



          (a) Initial Values. The Assuming Institution shall record the Shared-Loss Loans on
its Accounting Records at their respective Book Values as of the Commencement Date.




          (b) Adjustments. After the Commencement Date, the Assuming Institution shall adjust
the Book Values of the Shared-Loss Loans in accordance with this Agreement, the Examination
Criteria and Article VIII of the Purchase and Assumption Agreement.




          (c) Management. Thereafter, the Assuming Institution shall manage and account for the
Shared-Loss Loans in accordance with this Agreement.




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






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     2.2. Payments with Respect to Shared-Loss Loans.



          (a) Calculation and Method of Payments. Subject to the conditions of this Agreement,
the parties shall make the payments set forth in this Article 2. All payments made by a party under
this Agreement shall be made by wire transfer.




          (b) Timing of Payments.





          (i) Payments by the Receiver under this Article 2 shall be made within thirty (30) days
following the date on which the Receiver receives each Monthly Certificate, provided that
the Monthly Certificate is complete, accurate, timely and in compliance with the
requirements of this Agreement.




          (ii) Payments by the Assuming Institution under this Article 2 shall be made on or
before the due date for each Monthly Certificate.



          (c) Source of Receiver’s Funds. Payment obligations of the Receiver with respect to
this Agreement shall be treated as administrative expenses of the Receiver pursuant to 12 U.S.C
§1821(d)(11). To the extent that the Receiver requires funds to make payments relating to
Shared-Loss Loans pursuant to this Agreement, the Receiver shall request funds under the Master
Loan and Security Agreement between the FDIC in its corporate capacity and the FDIC in its
receivership capacity, with respect to any receivership, dated as of May 21, 2009, as amended.




     2.3. Payments Applicable to Shared-Loss Months. For each Shared-Loss Month, pursuant
to the applicable Monthly Certificate, one of the payments described at (a) or (b) below shall be
made, as appropriate, with respect to Shared-Loss Loans.



          (a) Covered Loss Payments by the Receiver. The Receiver shall pay to the Assuming
Institution the “Covered Loss” for the period, which is an amount equal to:





          (i) the Applicable Percentage of the sum of:




          (A) the total Monthly Loss Amount for all Shared-Loss Loans; less




          (B) the total monthly Recovery Amount for all Shared-Loss Loans; less




          (C) the total monthly Collections on Fully Charged-Off Assets.



          (b) Covered Gain Payments by the Assuming Institution. If the result of the
calculation in Section 2.3(a) is a negative amount (the “Covered Gain”), the Assuming Institution
shall pay such amount to the Receiver.




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






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     2.4. Loss Mitigation, Loan Modification and Loss Calculations.



          (a) Loss Mitigation Programs. The Assuming Institution shall administer and undertake
reasonable and customary loss mitigation efforts and act in accordance with usual and prudent
banking practices and the provisions of this Agreement with respect to Shared-Loss Loans.




          (b) Single Family Shared-Loss Loans. For each Single Family Shared-Loss Loan in
default or for which a default is reasonably foreseeable, the Assuming Institution shall undertake
loss mitigation efforts in accordance with one of the following programs, as amended from time to
time, selected by the Assuming Institution in its discretion:





          (i) FDIC Mortgage Loan Modification Program as set forth in Exhibit 5;




          (ii) the United States Treasury’s Home Affordable Modification Program Guidelines; or




          (iii) any other modification program approved by the United States Treasury Department,
the Corporation, the Board of Governors of the Federal Reserve System or any other Federal
governmental agency.



          (c) Other Shared-Loss Loans. For each Shared-Loss Loan which is not a Single Family
Shared-Loss Loan and which is in default, or for which a default is reasonably foreseeable, the
Assuming Institution shall adopt loss mitigation procedures in accordance with its own Examination
Criteria and all applicable laws and regulations and shall undertake loss mitigation efforts
substantially similar to loss mitigation efforts with respect to, and without favoring, any assets
held by the Assuming Institution or any of its Affiliates that are not Shared-Loss Loans.




          (d) Loan Modification Guidelines. In undertaking loss mitigation efforts for each
Shared-Loss Loan (the method adopted for each Shared-Loss Loan as required by Sections 2.4(b) and
2.4(c) being referred to as the “Modification Guidelines”), the Assuming Institution:





          (i) shall implement the Modification Guidelines within ninety (90) days following Bank
Closing;




          (ii) may submit claims during the period described in paragraph (i) for payments
relating to Shared-Loss Loans under any guidelines which may have been in place at the
Failed Bank. If no such guidelines were in place at the Failed Bank, the Assuming
Institution may use its own guidelines for submission of such claims;



			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






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          (iii) shall, in implementing the Modification Guidelines, (A) consider and document its
consideration of foreclosure, loan restructuring, short-sale and any other appropriate
methods of loss mitigation and (B) select the method that the Assuming Institution
determines will result in the least Loss, based on its estimated calculations. If
unemployment or underemployment of the Obligor with respect to a Shared-Loss Loan is the
primary cause of default, or of a reasonably foreseeable default, the Assuming Institution
may consider entering into a temporary forbearance plan with the Obligor to reduce loan
payments to an affordable level for at least six (6) months; and




          (iv) shall not be required to modify or restructure any Shared-Loss Loan on more than
one occasion or to consider any alternatives with respect to any Shared-Loss Loan that was
in the process of foreclosure as of the Bank Closing Date if the Assuming Institution
considers, and so documents, that a loan modification is not cost-effective pursuant to the
standards set forth in Exhibit 5. In such circumstances, the Assuming Institution
may continue such foreclosure measures in compliance with all applicable laws and
regulations, and recover any Foreclosure Loss as provided in this Agreement.



          (e) Loss Calculations. Losses on Shared-Loss Loans shall be calculated in the form,
and determined in accordance with, the methodologies set forth in the respective Exhibits attached
to this Agreement as follows:





          (i) Restructuring Losses shall be determined in accordance with Exhibits
2a(1)-(3);




          (ii) Deficiency Losses shall be reported as Restructuring Losses and, if applicable,
the net present value of a modified Shared-Loss Loan shall be determined in accordance with
Exhibits 2a(1)-(3), as applicable;




          (iii) Modification Default Losses shall be determined in accordance with Exhibits
2a(1)-(3), as applicable;




          (iv) Short-Sale Losses shall be determined in accordance with Exhibits
2b(1)-(3);




          (v) Foreclosure Losses shall be determined in accordance with Exhibits
2c(1)-(3);




          (vi) Home Equity Loan Losses shall be determined in accordance with the charge-off
policies of the loan classification criteria employed by the Assuming Institution’s
Chartering Authority as set forth in Exhibit 2d(1);




          (vii) Losses, if applicable, on Restructured Loans shall be determined in accordance
with Exhibit 2d(2);




          (viii) Loan Sale Losses shall be determined in accordance with Exhibits
2e(1)-(3);



			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






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          (ix) Losses on Investor-Owned Residential Loans shall be determined in the same manner
as Restructuring Losses. With the consent of the Receiver, Investor-Owned Residential Loans
may be restructured under terms different from the standards set forth in Exhibit 5.



     2.5. True-Up Payment and Calculation.



          (a) Payment Obligation of the Assuming Institution. If the Assuming Institution’s Bid
Amount, as set forth in Article VII of the Purchase and Assumption Agreement, includes an “Asset
discount bid” which represents five percent (5%) or more of the purchase price of the Assets
determined in accordance with Article III of the Purchase and Assumption Agreement, the Assuming
Institution shall pay to the Receiver on the True-Up Date any positive amount resulting from the
calculation set forth in Exhibit 2.5.




          (b) Reporting of Calculation. On or before the True-Up Date the Assuming Institution
shall deliver to the Receiver a schedule, signed by the chief executive officer or the chief
financial officer of the Assuming Institution, setting forth in reasonable detail the calculation
described in Exhibit 2.5, including the calculation of the Net Loss Amount.




     2.6. Limitation on Payments.



          (a) Failure to Administer. If the Assuming Institution fails to administer any
Shared-Loss Loan in accordance with the provisions of Article 3, the Receiver may determine that
such asset will not be treated as a Shared-Loss Loan pursuant to this Agreement.




          (b) Receiver’s Right to Withhold Payment. Notwithstanding any other provision of this
Article 2, the Receiver may withhold all or any portion of a payment to the Assuming Institution of
the amount requested in a Monthly Certificate if the Receiver or the Corporation determines that:





          (i) a Monthly Certificate is incomplete, inaccurate or untimely;




          (ii) based upon the criteria set forth in this Agreement, including, without
limitation, the requirements set forth in Section 2.4, or Customary Servicing Procedures, a
Loss should not have been effected by the Assuming Institution;




          (iii) based upon the Examination Criteria, a Charge-Off of a Shared-Loss Loan should
not have been effected by the Assuming Institution;




          (iv) there is a reasonable basis under the terms of this Agreement for denying the
eligibility of amounts included in a Monthly Certificate for which reimbursement or payment
is sought;




          (v) with respect to a particular Shared-Loss Loan, the Assuming Institution has not
complied, or is not complying, with the Management Standards;




          (vi) the Assuming Institution has failed to comply with the requirements set forth in
Section 5.5 including, but not limited to, permitting the



			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-5









 







Receiver, its agents, contractors and/or employees to determine compliance with this
Agreement pursuant to Section 5.5(c); or




          (vii) a retroactive accounting adjustment is to be made by the Receiver pursuant to
Section 5.5(c).



          (c) Opportunity to Cure; Payment.





          (i) In the event that a determination is made to withhold an amount pursuant to Section
2.6(b), the Receiver shall provide the Assuming Institution with notice detailing the
grounds for withholding such amount and the Assuming Institution shall cure any deficiency
within a reasonable period of time.




          (ii) If the Assuming Institution demonstrates to the satisfaction of the Receiver that
the grounds for withholding a payment, or any part thereof, no longer exist or have been
cured, the Receiver shall pay the Assuming Institution the amount which the Receiver
determines is eligible for payment within thirty (30) days following the date of such
determination.




          (iii) If the Assuming Institution does not cure any such deficiency within a reasonable
period of time, the Receiver may withhold payment as described in Section 2.6(b) with
respect to the affected Shared-Loss Loan(s), but such withholding will not affect the
Receiver’s obligation to make any other payment properly due pursuant to this Agreement.



          (d) Adjustments. In the event that the Receiver withholds payment with respect to
Losses claimed or determines pursuant to Section 2.6(b) that a payment was improperly made, the
Assuming Institution and the Receiver shall, upon final resolution of such issue, make such
accounting adjustments and payments as may be necessary to give retroactive effect to such actions,
including making the necessary adjustments to the Covered Loss or Covered Gain for the affected
Monthly Certificate(s).




          (e) Interest on Payments. Any payment by the Receiver pursuant to Section 2.6(c)(ii)
shall be made together with interest on the amount thereof that accrues with effect from five (5)
Business Days after the date on which payment was agreed or determined to be due until such amount
is paid. The annual interest rate shall be determined by the Receiver based on the coupon
equivalent of the three (3)-month U.S. Treasury Bill Rate in effect as of the first Business Day of
each three-month period during which such interest accrues as reported in the Federal Reserve Board
Statistical Release for Selected Interest Rates H.15 opposite the caption “Treasury bills
(secondary market), 3-month” or, if not so reported for such day, for the next preceding Business
Day for which such rate was so reported.




          (f) Determination of Disputes. Any dispute arising under this Section 2.6 shall be
resolved pursuant to the dispute resolution procedures of Article 7.




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-6









 






     2.7. Treatment as a Shared-Loss Loan.



          (a) Payment of Foreclosure Loss or Short-Sale Loss. The Receiver shall be relieved of
its obligations with respect to a Shared-Loss Loan upon payment to the Assuming Institution of
amounts in respect of a Foreclosure Loss or a Short-Sale Loss on that Shared-Loss Loan.




          (b) Loss of Right to Receive Shared-Loss Loan Payments. The Assuming Institution shall
not be entitled to payments relating to a Shared-Loss Loan pursuant to Section 2.3 if the Assuming
Institution or any Affiliate of the Assuming Institution:





          (i) sells or otherwise transfers that Shared-Loss Loan or any interest therein (whether
with or without recourse) to any Person, other than in compliance with this Agreement;




          (ii) makes any additional advance, commitment or increase in the amount of a Commitment
with respect to that Shared-Loss Loan;




          (iii) makes any amendment, modification, renewal or extension of a Shared-Loss Loan,
other than in compliance with this Agreement;




          (iv) manages, administers or collects any Related Loan in a manner which would increase
the amount of any collections with respect to that Related Loan to the detriment of the
Shared-Loss Loan to which such loan is related; or




          (v) fails to administer that Shared-Loss Loan pursuant to the Management Standards,
including, without limitation, consistent failure to provide complete, accurate and timely
certificates and reports pursuant to Article 5.



          (c) Effective Date of Loss of Shared-Loss Loan Treatment. If any of the actions described in
Section 2.7(b) occur with respect to a Shared-Loss Loan, the Receiver shall not be obligated to
make any payments to the Assuming Institution with respect to any affected Shared-Loss Loan after
the date of occurrence of such action.




ARTICLE 3. ADMINISTRATION OF SHARED-LOSS LOANS.




     3.1. Management Standards Regarding Administration. During the term of this Agreement
the Assuming Institution shall manage, administer and collect all Shared-Loss Loans while owned by
it or any of its Affiliates in accordance with the rules, requirements and standards regarding
management, administration and collection of Shared-Loss Loans set forth in this Article 3 (the
“Management Standards”). Failure to comply with the Management Standards shall constitute a
material breach of this Agreement. If the Receiver determines, in its sole and absolute discretion,
that the Assuming Institution is not in compliance with the Management Standards, it may notify the
Assuming Institution of the breach and may take action pursuant to this Agreement including,
without limitation, withholding all or any portion of a payment, as provided in Section 2.6(b).



			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-7









 






     3.2. Assuming Institution’s Responsibilities and Duties.



          (a) Covenants of the Assuming Institution. The Assuming Institution shall:





          (i) be responsible to the Receiver and the Corporation in the performance of this
Agreement, whether performed by the Assuming Institution, an Affiliate or a Third Party
Servicer;




          (ii) provide to the Receiver and the Corporation such certificates, notifications and
reports as the Receiver or the Corporation reasonably deems advisable, including but not
limited to the certificates, notifications and reports required by Article 5; and




          (iii) permit the Receiver and the Corporation to monitor the Assuming Institution’s
performance of its duties hereunder at all times.



          (b) Duties of the Assuming Institution with Respect to Shared-Loss Loans. In the
performance of duties in accordance with the Management Standards, the Assuming Institution shall
at all times exercise its best business judgment and shall:





          (i) manage, administer and collect amounts owed on each Shared- Loss Loan in a manner
consistent with the following:




          (A) usual and prudent business and banking practices and Customary Servicing
Procedures; and




          (B) the Assuming Institution’s (or, if applicable, a Third Party Servicer’s)
practices and procedures including, without limitation, all applicable laws and
regulations, the written internal credit policy guidelines of the Assuming
Institution (or, if applicable, of a Third Party Servicer) in effect from time to
time, with respect to the management, administration and collection of loans, ORE
and repossessed collateral that do not constitute Shared-Loss Loans;




          (ii) use its best efforts to maximize collections with respect to, and manage and
administer, Shared-Loss Loans without favored treatment for any assets owned by the Assuming
Institution or any of its Affiliates that are not Shared-Loss Loans;




          (iii) adopt and implement accounting, reporting, record-keeping and similar systems
with respect to the Shared-Loss Loans, as provided in Sections 5.6 and 5.7;




          (iv) retain sufficient staff to perform its duties hereunder;




          (v) not manage, administer or collect a Related Loan in a manner which would have the
effect of increasing the amount of any collections with respect to the Related Loan to the
detriment of the Shared-Loss Loan to which such loan is related;



			
	 	 	 
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          (vi) cause any of its Affiliates to which it transfers any Shared-Loss Loans and any
Third Party Servicer to act in accordance with the Management Standards; and




          (vii) other than as provided in Section 2.4, comply with the Modification Guidelines
for any Single Family Shared-Loss Loans meeting the requirements set forth in such
guidelines and may propose exceptions to Exhibit 5 (FDIC Loan Modification Program)
for a group of Shared-Loss Loans with similar characteristics, with the objectives of (A)
minimizing the loss to the Assuming Institution and the Receiver and (B) maximizing the
opportunity for qualified homeowners to remain in their homes with affordable mortgage
payments.




          (viii) in connection with the review of loss mitigation options such as loan
modifications on shared-loss loans, have sufficient designated loss mitigation staff so that
(A) borrowers are apprised of loss mitigation options, (B) each borrower who is being
considered for a loan modification or other loss mitigation options will have a single point
of contact with the AI to respond to borrower inquiries and questions regarding the process,
and (C) foreclosure actions are not taken while a borrower’s request for a loan modification
or other loss mitigation option is pending, or if the borrower is current on a trial or
permanent modification.



     3.3. Third Party Servicers and Affiliates.



          (a) Appointment of Third Party Servicers.





          (i) With the prior consent of the Receiver, the Assuming Institution may perform any of
its obligations and/or exercise any of its rights under this Agreement through one or more
Third Party Servicers. The Assuming Institution shall notify the Receiver at least forty
(40) days prior to the proposed appointment of a Third Party Servicer. Such notice will
include information regarding the Third Party Servicer’s relevant experience,
qualifications, financial strength and any pending litigation in relation to its servicing
activities. In the case of a Third Party Servicer that is an Affiliate of the Assuming
Institution, the notice shall include an express statement that the Third Party Servicer is
an Affiliate. The Receiver may object to the proposed appointment of a Third Party Servicer
by giving the Assuming Institution notice that it so objects within thirty (30) days
following the Receiver’s receipt of the notice of the proposed appointment. The appointment
of a Third Party Servicer by the Assuming Institution shall not release the Assuming
Institution from any obligation or liability hereunder.




          (ii) The Assuming Institution shall provide to the Receiver written notification
immediately following the execution of any contract pursuant to which a Third Party Servicer
or any third party (other than an Affiliate of the Assuming Institution) will manage,
administer or collect any of the Shared-Loss Loans.



          (b) Actions of and Expenses Incurred by Third Party Servicers. The Assuming
Institution shall ensure that the practices, procedures and guidelines of any Third Party Servicer
comply with the obligations of the Assuming Institution under this Agreement. The




			
	 	 	 
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Assuming Institution shall provide to the Receiver a copy of the Assuming Institution’s
written agreement with each Third Party Servicer and shall ensure compliance by each Third Party
Servicer with the Assuming Institution’s obligations under this Agreement, including, without
limitation, amending such agreement with each Third Party Servicer to the extent necessary. Subject
to the foregoing and to the other provisions of this Agreement, a Third Party Servicer may take
actions and incur expenditures in the same manner as the Assuming Institution, and out-of-pocket
expenses incurred by a Third Party Servicer on behalf of the Assuming Institution shall be treated
as if incurred by the Assuming Institution.




          (c) Duties with Respect to Affiliates. The Assuming Institution may transfer any
Shared-Loss Loan to an Affiliate of the Assuming Institution for administrative convenience,
provided that such transfer is for no consideration. The Assuming Institution shall provide to the
Receiver prior written notification of any transaction with or by any Affiliate of the Assuming
Institution with respect to any Shared-Loss Loan including, without limitation, the execution of
any contract pursuant to which an Affiliate of the Assuming Institution will own, manage,
administer or collect amounts owing with respect to a Shared-Loss Loan. The Assuming Institution
shall notify the Receiver at least forty (40) days prior to a proposed transaction with an
Affiliate which is not on an arm’s length basis or commercially reasonable terms. Such notice will
include information regarding the Affiliate’s relevant experience, qualifications and financial
strength. The Receiver may object to the proposed transaction with an Affiliate in such
circumstances by giving the Assuming Institution notice that it so objects within thirty (30) days
following the Receiver’s receipt of the notice of the proposed transaction.




     3.4. Utilization by the Assuming Institution of Special Receivership Powers.



          (a) Notice and Request to Receiver. Upon timely notice to and with the prior consent
of the Receiver, which may be granted or withheld in its sole discretion, to the extent permitted
by applicable law, the Assuming Institution may utilize in a legal action any special legal power
or right which the Assuming Institution derives as a result of having acquired a Shared-Loss Loan
from the Receiver.




          (b) Use of Special Legal Powers. The Receiver may direct usage by the Assuming
Institution of any special legal powers of the Receiver or the Corporation. The Assuming
Institution shall:





          (i) comply in all respects with any direction from the Receiver or the Corporation and
with any protocols, directives or interpretive memoranda issued from time to time by the
Receiver or the Corporation;




          (ii) upon request of the Receiver, notify the Receiver of the status of any legal
action in which any special legal power or right is utilized; and




          (iii) immediately notify the Receiver of any judgment or significant order in any legal
action involving any of such special powers or rights.



     3.5. Tax Ruling. The Assuming Institution shall not at any time, without the
Corporation’s prior consent, seek a private letter ruling or other determination from the Internal



			
	 	 	 
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Revenue Service or otherwise seek to qualify for any special tax treatment or benefits
associated with any payments made by the Receiver pursuant to this Agreement.




ARTICLE 4. SALE OF CERTAIN SHARED-LOSS LOANS AND ORE.




     4.1. Sales of Shared-Loss Loans. All sales of Shared-Loss Loans are subject to the
prior written approval of the Receiver, except as provided in Section 4.3:



          (a) Sales with the Receiver’s Consent. At any time following the Commencement Date
and with the prior consent of the Receiver, the Assuming Institution may conduct sales to liquidate
for cash consideration, in one or more transactions, all or a portion of the Shared-Loss Loans
(individually or in portfolio transactions) then held by the Assuming Institution. The Assuming
Institution shall provide the Receiver with at least sixty (60) days notice prior to any such
proposed sale and the notice shall set forth the sale details and the proposed sale schedule.
Restructured Loans shall be sold in a separate pool or transaction (as applicable) from Shared-Loss
Loans that have not been restructured. Proposals by the Assuming Institution for the sale of any
Shared-Loss Loans other than as provided in this Section 4.1(a) may be considered by the Receiver
on a case-by-case basis.




          (b) Sales Required by the Receiver. During the twelve (12) month period immediately
prior to the Termination Date the Receiver may, in its sole and absolute discretion, require the
Assuming Institution to liquidate for cash consideration, in one or more transactions, all
Shared-Loss Loans then held by the Assuming Institution. If the Receiver exercises such right, it
shall give notice to the Assuming Institution setting forth the time period within which the
Assuming Institution shall be required to offer to sell the Shared-Loss Loans and the Assuming
Institution shall make a good faith effort to sell the Shared-Loss Loans and to otherwise comply
with the provisions of the Receiver’s notice.




          (c) Conduct of Sales. Any sale pursuant to this Section 4.1 shall be conducted by
means of sealed bid, to third parties, which may not include any Affiliates of the Assuming
Institution, any contractors of the Assuming Institution or any Affiliates of contractors of the
Assuming Institution. The Assuming Institution shall notify the Receiver prior to the proposed
appointment of any financial advisor or other third party broker or sales agent for the liquidation
of the remaining Shared-Loss Loans pursuant to Section 4.1(b). The Receiver may object to such
proposed appointment by giving the Assuming Institution notice that it so objects within thirty
(30) days following the Receiver’s receipt of the notice of the proposed appointment.




     4.2. Calculation of Gain or Loss on Sale.



          (a) Shared-Loss Loans. For Shared-Loss Loans that are not Restructured Loans, any
gain or loss on sales conducted in accordance with the provisions of Section 4.1 will be calculated
based on the gross sale price received by the Assuming Institution minus the aggregate
unpaid principal balance of the Shared-Loss Loans which are sold, using the methodologies set forth
in Exhibits 2e(1)-(3).




          (b) Restructured Loans. For any Restructured Loan included in a sale under Section
4.1, a gain or loss will be calculated as follows:




			
	 	 	 
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          (i) the sale price received by the Assuming Institution; minus




          (ii) the net present value of estimated cash flows on the Restructured Loan that was
used in the calculation of the related Restructuring Loss; plus




          (iii) loan principal payments collected by the Assuming Institution from the effective
date on which the Loan was restructured to the date of sale, in accordance with the
methodologies set forth in Exhibits 2e(1)-(3).



     4.3. Sale of ORE. Notwithstanding the provisions of Section 4.1, the Assuming
Institution may sell or otherwise dispose of ORE at any time to a person other than an Affiliate, a
contractor of the Assuming Institution or any Affiliate of a contractor of the Assuming
Institution, provided that such sale is conducted in an arm’s length, commercially reasonable and
prudent manner.



ARTICLE 5. CERTIFICATES, REPORTS AND RECORDS.




     5.1. Reporting Obligations of the Assuming Institution.



          (a) Records, Notifications and Reports. The Assuming Institution shall maintain such
records, provide such notifications and deliver such reports as are required pursuant to this
Agreement, including, without limitation, the records, notifications and reports as provided in the
following provisions of this Article 5. Nothing contained in this Agreement shall be deemed to
modify any laws, regulations or orders that are otherwise applicable to the Assuming Institution.




          (b) Certification of Accuracy and Completeness. Every submission by the Assuming
Institution to the Receiver of a Monthly Certificate and any other document or information shall
constitute a certification from the Assuming Institution that the information provided in such
submission is correct, complete and in compliance with this Agreement.




     5.2. Monthly Certificates. Within fifteen (15) days following the end of each
Shared-Loss Month, the Assuming Institution shall deliver to the Receiver a Monthly Certificate
setting forth in such form and detail as the Receiver may reasonably specify from time to time:



          (a) Shared-Loss Loans. For each Shared-Loss Loan, a completed schedule, substantially
in the form of Exhibit 1, which provides for the following items, among others:





          (i) the Applicable Percentage of the sum of:




          (A) the total Monthly Loss Amount for all Shared-Loss Loans; and




          (B) the total monthly Recovery Amount for all Shared-Loss Loans;




          (ii) the total monthly Collections on Fully Charged-Off Assets;




          (iii) the total Covered Loss or Covered Gain;



			
	 	 	 
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          (iv) the Cumulative Loss Amount as of the beginning and as of the end of the
Shared-Loss Month;




          (v) a summary of Shared-Loss Loans for which Loss Amounts (calculated in accordance
with the applicable Exhibit) are claimed, of the related Loss Amount for each Shared-Loss
Loan and of the total Monthly Loss Amount for all Shared-Loss Loans; and




          (vi) a summary of Shared-Loss Loans for which Recovery Amounts were received by the
Assuming Institution, of the Recovery Amount for each Shared-Loss Loan and of the total
Recovery Amount for all Shared-Loss Loans.



          (b) Calculation of Loss Amount. For each of the Shared-Loss Loans for which a Loss is
claimed for a Shared-Loss Month, a schedule showing the calculation of the Loss Amount in the form
and in accordance with the methodology set forth in Exhibits
2a(1)-(3), Exhibits
2b(1)-(3), Exhibits 2c(1)-(3) or Exhibit 2d(1) as applicable.




          (c) Home Equity Loans. For each of the Restructured Loans where a gain or loss is
realized in a sale under Sections 4.1 or 4.2, a schedule showing the calculation in the form and in
accordance with the methodology set forth in Exhibit 2d(1).




          (d) Restructured Loans. For each of the Restructured Loans where a gain or loss is
realized in a sale under Sections 4.1 or 4.2, a schedule showing the calculation in the form and in
accordance with the methodology set forth in Exhibit 2d(2).




          (e) Portfolio Performance and Summary Schedule. A portfolio performance and summary
schedule substantially in the form shown in Exhibit 3.




     5.3. Monthly Data.



          (a) Monthly Data Download. Within fifteen (15) days following the end of each
Shared-Loss Month, the Assuming Institution shall provide to the Receiver:





          (i) the servicing file in machine-readable format including but not limited to the
fields shown on Exhibit 5.3(a) for each outstanding Shared-Loss Loan, as applicable;
and




          (ii) an Excel file for ORE held as a result of foreclosure on a Shared-Loss Loan
listing for each item of ORE:




          (A) the foreclosure date;




          (B) the unpaid loan principal balance;




          (C) the broker price opinion value or, if required by the Receiver in its
discretion, the appraised value; and




          (D) the projected liquidation date.



			
	 	 	 
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          (b) Completeness of Information. The Assuming Institution shall, consistent with
Customary Servicing Procedures, provide to the Receiver complete and accurate information, except
to the extent that it is unable to do so as a result of the failure of the Failed Bank or the
Receiver to provide information required to produce any of the items listed at Section 5.3(a)(ii).




          (c) Limitations. The Assuming Institution may claim each item of expenditure, income,
gain or loss only on the Monthly Certificate for the period in which such expenditure, income, gain
or loss was incurred. The inclusion of information regarding any expenses in a Monthly Certificate
or other documentation does not create any reimbursement obligation of the Receiver if the Assuming
Institution is not otherwise in compliance with this Agreement.




          (d) True-Up Date. The Assuming Institution shall deliver the schedule required
pursuant to Section 2.5(b) on or before the True-Up Date.




     5.4. Notification of Related Loans. In addition to maintaining records of all Related
Loans, the Assuming Institution shall prepare and deliver to the Receiver a schedule of all Related
Loans on a semi-annual basis, together with the Monthly Certificates for the months ending June 30
and December 31, which specify all Related Loans on the Loan Records of the Assuming Institution as
of the end of each such semi-annual period.



     5.5. Auditor’s Report; Right to Audit.



          (a) Independent Auditor’s Report.





          (i) Within the time period permitted for the examination audit pursuant to 12 C.F.R.
§363 following the end of each fiscal year, from and including the fiscal year during which
the Bank Closing Date occurs, up to and including the calendar year during which the
Termination Date occurs, the Assuming Institution shall deliver to the Receiver and the
Corporation a report signed by its independent public accountants stating that such
accountants have reviewed this Agreement and that, in the course of their annual audit of
the Assuming Institution’s books and records, nothing has come to their attention suggesting
that any computations required to be made by the Assuming Institution during each such year
were not made in accordance with this Agreement.




          (ii) In the event that the Assuming Institution cannot comply with the provisions of
Section 5.5(a)(i), within seven (7) days following the end of the time period permitted for
the examination audit pursuant to 12 C.F.R. §363, the Assuming Institution shall submit to
the Receiver corrected computations together with a report signed by its independent public
accountants stating that, after giving effect to such corrected computations, nothing has
come to the attention of such accountants suggesting that any computations required to be
made by the Assuming Institution during such year were not made by the Assuming Institution
in accordance with this Agreement. In such event, the Assuming Institution and the Receiver
shall make all such accounting adjustments and payments as may be necessary to give effect
to each correction reflected in such corrected computations, retroactive to the date on
which the corresponding incorrect computation



			
	 	 	 
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was made. It is the intention of this provision to align the timing of the audit
required under this Agreement with the examination audit required pursuant to 12 C.F.R.
§363.



          (b) Assuming Institution’s Internal Audit. The Assuming Institution shall perform on
an annual basis an internal audit of its compliance with this Agreement and shall provide the
Receiver and the Corporation with:





          (i) copies of all internal audit reports and access to all related internal audit work
papers; and




          (ii) a certificate signed by the chief executive officer or chief financial officer of
the Assuming Institution certifying that the Assuming Institution is in compliance with this
Agreement or identifying any areas of non-compliance.



          (c) Right of Receiver or Corporation to Audit. The Receiver or the Corporation, their
respective agents, contractors and employees, may (but are not required to) perform an audit to
determine the Assuming Institution’s compliance with this Agreement at any time, by providing not
less than ten (10) Business Days prior notice. The scope, duration and location of any such audit
shall be at the discretion of the Receiver or the Corporation, as the case may be, and may be
conducted at the Assuming Institution’s place or places of business or otherwise. The Receiver or
the Corporation, as the case may be, shall bear the expense of any such audit. In the event that
any corrections are necessary as a result of such an audit, the Assuming Institution and the
Receiver shall make such accounting adjustments, payments and withholdings as may be necessary to
give retroactive effect to such corrections.




          (d) Authority to Advisors and Representatives. The Assuming Institution shall, and
shall cause its Affiliates, contractors and Third Party Servicers to, allow its advisors and
representatives to discuss its (and any Affiliates’, contractors’ or Third Party Servicers’)
affairs, finances and accounts as they relate to Shared-Loss Loans, or any other matters relating
to this Agreement or the rights and obligations hereunder, with the Receiver and authorizes such
advisors and representatives to so discuss such affairs, finances and accounts with the Receiver.




     5.6. Accounting Principles.



          (a) Maintenance of Books and Records. The Assuming Institution shall at all times
during the term of this Agreement keep books and records which fairly present all dealings and
transactions carried out in connection with its business and affairs.




          (b) Accounting Principles. Except as otherwise provided for in the Purchase and
Assumption Agreement or this Agreement, the Assuming Institution shall keep all financial books and
records in accordance with generally accepted accounting principles, which shall be consistently
applied for the periods involved.




          (c) Change in Accounting Principles. The Assuming Institution shall not make any
change in its accounting principles which adversely affects the value of the Shared-Loss Loans,
unless it obtains the prior written approval of the Corporation or if required by a change in
generally accepted accounting principles. The Assuming Institution shall notify the Corporation of
any change in its accounting principles that is required by a change in generally




			
	 	 	 
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accepted accounting principles which would affect any Shared-Loss Loan, the accounting for any
Shared-Loss Loan or the amount of any loss, gain, expense, cost or other item of reimbursement that
may be due to or from the Assuming Institution.




     5.7. Records and Reports.



          (a) Content of Records. The Assuming Institution shall establish and maintain records
on a separate general ledger, and on such subsidiary ledgers as may be appropriate, in such form
and detail as the Receiver or the Corporation may specify, to account for the Shared-Loss Loans and
to enable the Assuming Institution to prepare and deliver such reports as the Receiver or the
Corporation may from time to time request pursuant to this Article 5. Without limitation, such
books and records shall be kept in such a manner that information will be readily obtainable to
determine and document compliance with this Agreement and the Purchase and Assumption Agreement,
including but not limited to documentation which shows or supports the following:





          (i) alternatives considered by the Assuming Institution with respect to defaulted Loans
or Loans for which default is reasonably foreseeable;




          (ii) the calculation of Loss for claims submitted to the Receiver;




          (iii) each line item on the Loss claim forms; and




          (iv) the Recovery Amount on Loans for which the Receiver has made a payment pursuant to
this Agreement.



          (b) Retention of Calculations. The Assuming Institution shall provide its loss
calculations for Shared-Loss Loans to the Receiver upon request.




          (c) Additional Information. The Assuming Institution shall promptly provide to the
Receiver or the Corporation such information as the requesting party may request from time to time,
including financial statements, computations and information as the Receiver or the Corporation
deems necessary or appropriate in connection with monitoring compliance with this Agreement,
certified as correct by the chief executive officer or chief financial officer of the Assuming
Institution if so requested. The Assuming Institution shall provide to the Receiver all such
loan-level data and cumulative information regarding the Shared-Loss Loans as the Receiver may
request from time to time.




ARTICLE 6. MISCELLANEOUS.




     6.1. Expenses. All costs and expenses incurred by a party in connection with this
Agreement (including the performance of any obligations or the exercise of any rights hereunder)
shall be borne by such party unless expressly otherwise provided, whether or not the transactions
contemplated herein are consummated.



     6.2. Successors and Assigns.



			
	 	 	 
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          (a) Binding on Successors and Assigns; Assignment. This Agreement, and all of the
terms and provisions hereof shall be binding upon and shall inure to the benefit of the parties
hereto and their respective permitted successors and assigns only. The Receiver may assign or
otherwise transfer this Agreement and the rights and obligations of the Receiver hereunder (in
whole or in part) to the Corporation in its corporate capacity without the consent of Assuming
Institution. Notwithstanding anything to the contrary contained in this Agreement, the Assuming
Institution may not assign or otherwise transfer this Agreement or any of the Assuming
Institution’s rights or obligations hereunder (in whole or in part) or sell or transfer any
subsidiary of the Assuming Institution holding title to Shared-Loss Loans without the prior written
consent of the Receiver, which consent may be granted or withheld by the Receiver in its sole and
absolute discretion. An assignment or transfer of this Agreement includes:





          (i) a merger or consolidation of the Assuming Institution with or into another Person,
if the shareholders of the Assuming Institution will own less than sixty-six and two/thirds
percent (66.66%) of the equity of the consolidated entity;




          (ii) a merger or consolidation of the Assuming Institution’s Holding Company with or
into another Person, if the shareholders of the Holding Company will own less than sixty-six
and two/thirds percent (66.66%) of the equity of the consolidated entity;




          (iii) the sale of all or substantially all of the assets of the Assuming Institution to
another Person; or




          (iv) a sale of Shares by any one or more shareholders that will effect a change in
control of the Assuming Institution, as determined by the Receiver with reference to the
standards set forth in the Change in Bank Control Act, 12 U.S.C. 1817(j).



               Any transaction under this Section 6.2 that requires the Receiver’s consent that is made
without such consent will relieve the Receiver of its obligations under this Agreement.



          (b) No Recognition of Loss. No loss shall be recognized under this Agreement as a
result of any accounting adjustments that are made due to or as a result of any assignment or
transfer of this Agreement or any merger, consolidation, sale or other transaction to which the
Assuming Institution, its Holding Company or any Affiliate is a party, regardless of whether the
Receiver consents to such assignment or transfer in connection with such transaction pursuant to
this Section 6.2.




     6.3. WAIVER OF JURY TRIAL. EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES,
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, ALL RIGHT TO TRIAL BY JURY IN, OR TO HAVE A JURY
PARTICIPATE IN RESOLVING, ANY DISPUTE, ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER SOUNDING IN
CONTRACT, TORT OR OTHERWISE, ARISING OUT OF OR RELATING TO OR IN CONNECTION WITH THIS AGREEMENT OR
ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.



			
	 	 	 
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     6.4. No Third Party Beneficiary. This Agreement is for the sole and exclusive benefit
of the parties and their respective permitted successors and permitted assigns and there shall be
no other third party beneficiaries. Nothing in this Agreement shall be construed to grant to any
other Person any right, remedy or claim under or in respect of this Agreement or any provision
hereof.



     6.5. Consent; Determination or Discretion. When the consent or approval of a party is
required under this Agreement, such consent or approval shall be obtained in writing and unless
expressly otherwise provided, shall not be unreasonably withheld or delayed. When a determination
or decision is to be made by a party under this Agreement, that party shall make such determination
or decision in its reasonable discretion unless expressly otherwise provided.



     6.6. Rights Cumulative. Except as expressly otherwise provided herein, the rights of
each of the parties under this Agreement are cumulative, may be exercised as often as any party
considers appropriate and are in addition to each such party’s rights under the Purchase and
Assumption Agreement, any of the agreements related thereto or under applicable law. Any failure
to exercise or any delay in exercising any of such rights, or any partial or defective exercise of
such rights, shall not operate as a waiver or variation of that or any other such right, unless
expressly otherwise provided.



     6.7. References. References in this Agreement to Recitals, Articles, Sections and
Exhibits are to Recitals, Articles, Sections and Exhibits of this Agreement, respectively, unless
the context indicates that the Purchase and Assumption Agreement is intended. References to
parties are to the parties to this Agreement. Unless expressly otherwise provided, references to
days and months are to calendar days and months respectively. Article and Section headings are for
convenient reference and shall not affect the meaning of this Agreement. References to the
singular shall include the plural, as the context may require, and vice versa.



     6.8. Notice.



          (a) Form of Notices. All notices shall be given in writing to the parties at the
addresses set forth in Sections 6.8(b) and 6.8(c) and sent in accordance with the provisions of
Section 13.6 of the Purchase and Assumption Agreement, unless expressly otherwise provided.




          (b) Notice to FDIC (Division of Resolutions and Receiverships). With respect to a
notice under this Agreement, other than pursuant to Section 3.4(a):



Federal Deposit Insurance Corporation

Division of Resolutions and Receiverships

550 17th Street, N.W.

Washington, D.C. 20429

Attention: Assistant Director, Franchise and Asset Marketing




          (c) Notice to FDIC (Legal Division). With respect to a notice under Section 3.4(a):



Federal Deposit Insurance Corporation Legal Division

1601 Bryan Street




			
	 	 	 
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Dallas, Texas 75201

Attention: Regional Counsel



with a copy to:



Federal Deposit Insurance Corporation Legal Division

Virginia Square, L.William Seidman Center

3501 Fairfax Drive, VS-E-7056

Arlington, Virginia 22226

Attention: Senior Counsel (Special Issues Group)




ARTICLE 7. DISPUTE RESOLUTION.




     7.1. Methods of Resolution. The methods of resolving a dispute arising pursuant to
this Agreement shall be as follows:



          (a) Charge-Offs. Any dispute as to whether a Charge-Off of a Shared-Loss Asset was
made in accordance with the Examination Criteria shall be finally resolved by the Assuming
Institution’s Chartering Authority.




          (b) Other Disputes. Any other dispute (a “Dispute Item”) shall be resolved in
accordance with the following provisions of this Article 7.




     7.2. Informal Resolution. The Receiver or the Corporation, as appropriate, (the “FDIC
Party”) and the Assuming Institution shall negotiate in good faith to resolve any Dispute Item
within thirty (30) Business Days following receipt of information concerning the Dispute Item.



     7.3. Resolution by Non-Binding Dispute Resolution Proceeding. If informal resolution
of the Dispute Item pursuant to Section 7.2 is unsuccessful, the FDIC Party, on the one hand, and
the Assuming Institution, on the other hand, may submit to the other party written notification of
a Dispute Item (a “Notice of Dispute”). The Notice of Dispute shall contain a description of the
dispute, an estimate of the amount in issue and any other information required pursuant to this
Article 7. The parties shall make good faith efforts to resolve the dispute by mutual agreement
within thirty-five (35) Business Days following receipt of the Notice of Dispute. In furtherance
of these efforts, the parties should consider the mutually agreed upon use of less formal dispute
resolution techniques, which may include, but are not limited to, mediation, settlement conference,
early neutral evaluation and any other dispute resolution proceedings (as defined in § 571(6) of
the Administrative Dispute Resolution Act (“ADRA”), 5 U.S.C. § 571 et seq.), as amended).



     7.4. Confidentiality of Compromise Negotiations. All good faith attempts to resolve
or compromise a dispute pursuant to Sections 7.2 or 7.3 will be confidential. All such compromise
negotiations, including any statements made or documents prepared by any party, attorney or other
participant, are inadmissible as evidence in other proceedings and may not be construed for any
purpose as admissions against interest.



			
	 	 	 
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     7.5. Payment Resulting from Compromise Negotiations. If the FDIC Party and the
Assuming Institution resolve a Dispute Item to their mutual satisfaction pursuant to Sections 7.2
or 7.3, including any dispute pursuant to Section 2.6, then within thirty (30) days following such
resolution, the appropriate party shall make payment or take action as agreed by the parties.



     7.6. Formal Resolution.



          (a) Arbitration Matters. Any Dispute Item which has an estimated amount in issue not
exceeding $500,000 per Asset may be proposed by the party seeking relief (the “Claimant Party”) for
arbitration pursuant to the provisions of this Section 7.6. No more than three Dispute Items may
be submitted for any single arbitration, provided that, by mutual agreement pursuant to Section
7.6(c), the parties may agree to submit any Dispute Item(s) to arbitration.




          (b) Proposal to Arbitrate. If the FDIC Party and the Assuming Institution do not
resolve a Dispute Item pursuant to Sections 7.2 and 7.3, then within ten (10) Business Days
following the expiration of the period provided in Section 7.3, the Claimant Party may propose to
submit the unresolved Dispute Item to arbitration by notifying the other party (the “Respondent
Party”) in writing.




          (c) Submission to Arbitration. The Respondent Party may agree to the Claimant Party’s
proposal of arbitration by responding in writing within ten (10) Business Days following receipt of
such proposal. Within five (5) Business Days following receipt of the Respondent Party’s agreement
to arbitrate, the Claimant Party may submit the Dispute Item to the American Arbitration
Association (“AAA”) for arbitration. No Dispute Item may be submitted for arbitration without the
consent of both parties.




          (d) Waiver of Arbitration. If the Claimant Party does not (i) propose to submit the
Dispute Item to arbitration within the period set forth in Section 7.6(b) or (ii) submit the
Dispute Item to AAA within the period set forth in Section 7.6(c), then the Claimant Party shall be
deemed to have waived submission of the Dispute Item to arbitration.




          (e) Litigation Matters. If the FDIC Party and the Assuming Institution do not agree
to submit the Dispute Item to arbitration, the Dispute Item may be resolved by litigation in
accordance with Federal or state law, as provided in Section 13.10 of the Purchase and Assumption
Agreement. Any litigation shall be filed in a United States District Court in the proper district.




          (f) Arbitration Administrator. The FDIC Party may, in its discretion, appoint an
organization other than AAA for administration of arbitration pursuant to this Section 7.6, in
which case this Article 7 and the rules and procedures set forth herein, including the Commercial
Arbitration Rules as referred to in Section 7.9, shall govern the arbitration. AAA or such other
organization appointed pursuant to this Section 7.6(f) shall be referred to in this Agreement as
the “Arbitration Administrator.”




     7.7. Limitation on FDIC Party. Nothing in this Article 7 shall be interpreted as
obligating the FDIC Party to submit to a dispute resolution proceeding (as defined in ADRA at §
571(6)) any Dispute Item described in (i) ADRA, § 572(b) or (ii) the FDIC’s Statement of



			
	 	 	 
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Policy Regarding Binding Arbitration, 66 Fed. Reg.18632 (April 10, 2001), as amended, as a dispute
for which an agency shall consider not using a dispute resolution proceeding.




     7.8. Effectiveness of Agreement Pending Dispute. Notwithstanding anything in this
Agreement to the contrary, in the event that a Notice of Dispute is provided to a party under this
Article 7 prior to the Termination Date, the terms of this Agreement shall remain in effect with
respect to the items set forth in such notice until the dispute with respect to such items has been
finally resolved, and such dispute shall be resolved in accordance with the provisions of this
Agreement even if that resolution occurs after the Termination Date.



     7.9. Governing Rules and Law for Arbitration. Any arbitration shall be substantively
governed by the Federal law of the United States of America, and in the absence of controlling
Federal law, in accordance with the laws of the state in which the main office of the Failed Bank
is located. The arbitration shall be procedurally governed by the Commercial Arbitration Rules
(the “Commercial Arbitration Rules”) established by AAA to the extent that such rules are not
inconsistent with this Article 7, the Federal Arbitration Act, 9 U.S.C. § 1 et seq. (“Federal
Arbitration Act”), and ADRA., as each may be in effect at the time that the arbitration is
initiated, except that the Commercial Arbitration Rules’ Expedited Procedures shall not apply
unless the FDIC Party and Claimant Party otherwise agree in writing. The Review Board (as defined
below) may modify the procedures set forth in such rules from time to time with the prior written
approval of the Claimant Party and the Respondent Party.



     7.10. Review Board Proceedings. The arbitration of a dispute shall be conducted by a
review board (a “Review Board”) which shall consist of either one (1) or three (3) members (each, a
“Member”) with such expertise as the Claimant Party and Respondent Party agree is relevant. The
Claimant Party shall specify, in its Notice of Dispute, the number of Members which it proposes for
the Review Board.



          (a) Selection of Members.





          (i) Claimant Party Proposes One Member. If the Dispute Item(s) are less than
$250,000 in total, the Claimant Party may propose that the Review Board shall consist of one
Member, and shall state, in its Notice of Dispute, the name and address of the Member that
it proposes for the Review Board. If the Respondent Party agrees, in its response to the
Notice of Dispute, the Member suggested by the Claimant Party shall comprise the Review
Board. If the Respondent Party agrees, in its response to the Notice of Dispute, that the
Review Board shall consist of one Member, but states the name and address of a different
proposed Member for the Review Board, then that Member shall be deemed acceptable to the
Claimant Party if it submits the Notice of Dispute to the Arbitration Administrator,
provided that, before the Respondent Party responds to the Notice of Dispute with a
different proposed Member, the parties may also mutually agree upon one Member. If the
Respondent Party proposes that the Review Board shall consist of three Members, then the
Members shall be selected in accordance with Section 7.10(a)(iv).



          (ii) Claimant Party Proposes Three Members. If the Dispute Items exceed
$250,000 in total, or if the Respondent Party proposes that the Review Board shall



			
	 	 	 
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consist of three Members, then the Claimant Party shall state the name and address of
the first of three Members in its Notice of Dispute. If the Respondent Party agrees that
the Review Board shall consist of three Members, the Respondent Party shall state the name
and address of the second Member in its response to the Notice of Dispute. Each such Member
shall be considered a “Party-Appointed Arbitrator” (“Party-Appointed Arbitrator”),
consistent with Commercial Arbitration Rule R-12. If the Claimant Party subsequently
submits the Notice of Dispute to the Arbitration Administrator as provided in Section
7.6(c), then within ten (10) Business Days of such submission, the Party-Appointed
Arbitrators shall select a neutral third Member (the “Neutral Member”) in accordance with
Commercial Arbitration Rules R-11 and R-13, except that the Neutral Member need not be from
the National Roster of Commercial Arbitrators. If the Respondent Party proposes that the
Review Board shall consist of one Member, then the Member shall be selected in accordance
with Section 7.10(a)(iii).




          (iii) Respondent Party Proposes One Member. If the Claimant Party proposes
that the Review Board shall consist of three Members, but the Respondent Party proposes that
the Review Board shall consist of one Member in its response to the Notice of Dispute, then
the Member proposed by the Claimant Party in the Notice of Dispute shall comprise the Review
Board unless the Respondent Party states the name and address of a different proposed Member
in its response to the Notice of Dispute. If the Respondent Party proposes a different
Member in its response to the Notice of Dispute, then that Member shall be deemed acceptable
to the Claimant Party if it submits the Notice of Dispute to the Arbitration Administrator.




          (iv) Respondent Party Proposes Three Members. If the Claimant Party proposes
that the Review Board shall consist of one Member, but the Respondent Party proposes, in its
response to the Notice of Dispute, that the Review Board shall consist of three Members,
then the Member proposed by the Claimant Party in the Notice of Dispute shall comprise the
first Member of the Review Board. The Respondent Party shall state the name and address of
the second Member in its response to the Notice of Dispute. Each such Member shall be
considered a Party-Appointed Arbitrator. If the Claimant Party subsequently submits the
Notice of Dispute to the Arbitration Administrator, a Neutral Member shall be selected in
accordance with the procedure set forth in Section 7.10(a)(ii).



          (b) Removal of Members. A Party-Appointed Arbitrator may be removed at any time by
the party who appointed that Member upon five (5) Business Days notice to the other party of the
selection of a replacement Member. The Neutral Member may be removed by unanimous action of the
Party-Appointed Arbitrators or unanimous action of the parties after five (5) Business Days notice
to the Claimant Party and the Respondent Party and the Arbitration Administrator of the selection
of a replacement Neutral Member.




          (c) Vacancies. Any vacancy on the Review Board prior to or after the commencement of
the hearing of evidence and argument (the “Arbitration Hearing”) shall be handled in accordance
with Commercial Arbitration Rule R-19, except that if a vacancy arises after the Arbitration
Hearing has commenced, a substitute Member shall be selected in accordance with the rules under
which the original Member was selected.




			
	 	 	 
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     7.11. Impartiality. As a condition of serving on the Review Board, within five (5)
Business Days after being selected, each Member shall provide a written oath, under penalty of
perjury, containing a statement that the Member does not have any conflicts of interest (whether
official, financial, personal or otherwise) with respect to the issues or parties in controversy,
and that each Member agrees to be bound by the provisions of this Article 7 as applicable to the
Members. If a Member has any potential conflict of interest, the Member shall fully disclose such
interest in writing to the Claimant Party and the Respondent Party and the Member shall not serve
on the Review Board, unless the Claimant Party and the Respondent Party agree otherwise. The
Conflicts Committee of the Legal Division of the Corporation shall review any potential conflicts
of interest for potential waiver. None of the Members may serve as counsel, advisor, witness or
representative to any party to the arbitration.



     7.12. Schedule. The Review Board shall assume control of the arbitration process and
shall schedule all events as expeditiously as possible. The Arbitration Hearing shall commence
within ninety (90) Business Days after receipt of the Notice of Dispute by the Arbitration
Administrator.



     7.13. Written Award. Within twenty (20) Business Days following closing of the
Arbitration Hearing, as determined by Commercial Arbitration Rule R-35, the Review Board shall
determine the prevailing party and award the prevailing party its proposed award or award any
remedy or relief that the arbitrator deems just and equitable and within the scope of this Article
7, but in no event may an award of the Review Board (inclusive of all claims and counterclaims)
exceed the maximum amount set forth in Section 7.6(a). If the Review Board consists of three (3)
Members, the determination of any two (2) Members shall constitute the Review Board’s
determination. The Review Board shall present to the Claimant Party and the Respondent Party a
written award regarding the dispute. The written award shall contain a brief, informal discussion
of the factual and legal basis for the award and need not contain formal findings of facts and law.



     7.14. Interest Rate on Award. Any award amounts ultimately determined to be payable
pursuant to the Review Board’s written award shall bear interest at the Settlement Interest Rate
from a beginning date specified by the Review Board in its written award and until the date on
which payment is made.



     7.15. Payments. All payments required to be made under this Article 7 shall be made
by wire transfer and within fifteen (15) Business Days following the date on which the award
becomes final, as provided by ADRA at § 580(b). The Review Board will have no authority to award
any punitive, consequential, special or exemplary damages.



     7.16. Fees, Costs and Expenses. The Review Board will have no authority to award
attorneys’ fees or costs incurred by either party to the arbitration. Each party will bear the
fees, costs, and expenses which it incurs in connection with the submission of any dispute to a
Review Board, including the fees and expenses of the Member which it selected in accordance with
the Arbitration Administrator’s fee schedule. The Claimant Party and the Respondent Party will
share equally the fees and expenses of the Neutral Member and any administrative fees of the
arbitration (which shall not include the fees and expenses of the Members). No fees, costs or



			
	 	 	 
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expenses incurred by or on behalf of the Assuming Institution shall be subject to
reimbursement by the Receiver under this Article 7 or otherwise.




     7.17. Binding and Conclusive Nature. Arbitration of a dispute pursuant to this
Article 7 shall be final, conclusive and binding on the parties and not subject to further dispute
or review, and judgment upon the award made by the Review Board may be entered in accordance with
applicable law in any court having jurisdiction thereof. Other than as provided by the Federal
Arbitration Act and ADRA, no review, appeal or reconsideration of the Review Board’s determination
shall be permitted, including review, appeal or reconsideration by the Review Board or any other
arbitrators. The parties agree to faithfully observe the provisions of this Article 7 and the
Commercial Arbitration Rules, and the parties agree to abide by and perform any award rendered by
the Review Board.



     7.18. No Precedent. No decision, interpretation, determination, analysis, statement,
award or other pronouncement of a Review Board shall constitute precedent in regard to any
subsequent proceeding (whether or not such proceeding involves dispute resolution under this
Agreement), nor shall any Review Board be bound to follow any decision, interpretation,
determination, analysis, statement, award or other pronouncement rendered by any previous Review
Board or any other previous dispute resolution panel that may have convened in connection with a
transaction involving other failed financial institutions or Federal assistance transactions.



     7.19. Confidentiality; Proceedings, Information and Documents. No arbitration held
pursuant to this Article 7 shall be public or accessible to any person other than the parties and
their representatives, the Review Board and witnesses participating in the arbitration (and then,
only to the extent of their participation). Each party and each Member shall strictly maintain the
confidentiality of all issues, disputes, arguments, positions and interpretations of any such
proceeding, as well as all testimony, pleadings, filings, discovery, information, attachments,
enclosures, exhibits, summaries, compilations, studies, analyses, notes, documents, statements,
schedules and other similar items associated therewith (“Confidential Information”), in accordance
with the provisions of ADRA. In the event that disclosure of Confidential Information is required
pursuant to law, rule or regulation, or in the event that disclosure is required pursuant to
statute or court determination as provided by ADRA, then to the extent reasonably practicable, the
person required to make the disclosure shall provide the other party or parties with written notice
of such disclosure within one (1) Business Day following the request that it make such disclosure,
and in any event prior to making such disclosure, so that the other party or parties may seek a
protective order.



     7.20. Confidentiality of Arbitration Award. Notwithstanding the provisions of Section
7.19, no party has any duty of confidentiality with respect to any arbitration award made pursuant
to this Article 7.



     7.21. Extension of Time Periods. The parties may extend any period of time provided
in this Article 7 by mutual agreement.



			
	 	 	 
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     7.22. Venue. The arbitration shall take place at such location as the parties thereto
may mutually agree, but if they cannot agree, then it will take place at the offices of the
Corporation in Washington, D.C., or Arlington, Virginia.



ARTICLE
8. DEFINITIONS. The capitalized terms used in this Agreement shall have the
meanings defined or referenced in this Article 8.




     “AAA” has the meaning set forth in Section 7.6(c).



     “Accounting Records” means Records including, but not limited to, corporate minutes, general
ledger and subsidiary ledgers and schedules which support general ledger balances.



     “Accrued Interest” means, for any Shared-Loss Loan, the amount of accrued earned and unpaid
interest, taxes, credit life and/or disability insurance premiums (if any) payable by the Obligor,
all as reflected on the Accounting Records of the Failed Bank or the Assuming Institution (as
applicable) at the note rate specified in the applicable loan documents, for no more than a maximum
of ninety (90) days.



     “ADRA” has the meaning set forth in Section 7.3.



     “Affiliate” has the meaning set forth in the Purchase and Assumption Agreement; provided that,
for purposes of this Agreement, no Third Party Servicer appointed by an Affiliate shall be deemed
to be an Affiliate of the Assuming Institution solely by virtue of that appointment.



     “Agreement” has the meaning set forth in Recital A.



     “Applicable Percentage” is eighty percent 80% for the Tranche 1 Amount and eighty percent 80%
for the Tranche 2 Amount.



     “Arbitration Administrator” has the meaning set forth in Section 7.6(f).



     “Arbitration Hearing” has the meaning set forth in Section 7.10(c).



     “Assets” has the meaning set forth in the Purchase and Assumption Agreement.



     “Assuming Institution” has the meaning set forth in the Purchase and Assumption Agreement.



     “Bank Closing Date” has the meaning set forth in the Purchase and Assumption Agreement.



     “Bank Premises” has the meaning set forth in the Purchase and Assumption Agreement.



     “Book Value” has the meaning set forth in the Purchase and Assumption Agreement.



     “Business Day” has the meaning set forth in the Purchase and Assumption Agreement.



			
	 	 	 
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     “Charge-Off” means, for any period with respect to a particular Shared-Loss Loan, the
amount of a loan or portion of a loan classified as “Loss” under the Examination Criteria as
effected by the Assuming Institution and reflected on its Accounting Records for such period,
consisting solely of a charge-off of the following:



          (a) the principal amount of such Shared-Loss Loan net of unearned interest;




          (b) a write-down associated with Shared-Loss Loans, ORE or loan modification(s);




          (c) Accrued Interest for no more than a maximum of ninety (90) days; plus




          (d) capitalized expenditures.




          Losses incurred on the sale or other disposition of Shared-Loss Loans to any Person shall not
constitute Charge-Offs except for: (i) sales duly conducted in accordance with the provisions of
Sections 4.1(a) and 4.1(b), (ii) the sale or other disposition of ORE to a Person other than an
Affiliate of the Assuming Institution which was conducted in a commercially reasonable and prudent
manner and (iii) other sales or dispositions, if any, with respect to which the Receiver granted
prior consent.




     “Chartering Authority” has the meaning set forth in the Purchase and Assumption Agreement.



     “Claimant Party” has the meaning set forth in Section 7.6(a).



     “Collections on Fully Charged-Off Assets” means fifty per cent (50%) of collections on Fully
Charged-Off Assets less fifty per cent (50%) of any expenses attributable to Fully Charged-Off
Assets.



     “Commencement Date” means the first day following the Bank Closing Date.



     “Commercial Agreement” means, if any, the Commercial Shared-Loss Agreement and the Exhibits
thereto attached to the Purchase and Assumption Agreement as Exhibit 4.15B and entered into of even
date with this Agreement between among Receiver, Corporation and the Assuming Institution.



     “Commercial Arbitration Rules” has the meaning set forth in Section 7.9.



     “Commitment” has the meaning set forth in the Purchase and Assumption Agreement.



     “Confidential Information” has the meaning set forth in Section 7.19.



     “Corporation” has the meaning set forth in the Purchase and Assumption Agreement.



     “Covered Gain” has the meaning set forth in Section 2.3(b).



     “Covered Loss” has the meaning set forth in Section 2.3(a).



			
	 	 	 
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     “Cumulative Loss Amount” means the sum of all Monthly Loss Amounts minus the sum of
(a) all Recovery Amounts plus (b) all Collections on Fully Charged-Off Assets.



     “Customary Servicing Procedures” means procedures (including collection procedures) that the
Assuming Institution (or, to the extent that a Third Party Servicer is appointed in accordance with
Section 3.3, the Third Party Servicer) customarily employs and exercises in servicing and
administering mortgage loans for its own accounts and the servicing procedures established by the
Federal National Mortgage Association or Federal Home Loan Mortgage Corporation (as in effect from
time to time), which are in accordance with accepted mortgage servicing practices of prudent
lending institutions and all applicable laws and regulations.



     “Deficiency Loss” means, pursuant to the final determination by a court in a bankruptcy
proceeding that the value of the collateral is less than the amount of the related Shared-Loss
Loan, the difference between the then unpaid principal balance on the Shared-Loss Loan (or the net
present value of a modified Shared-Loss Loan that defaults) and the value of the collateral so
established.



     “Dispute Item” has the meaning set forth in Section 7.1(b).



     “Examination Criteria” means the loan classification criteria employed by, and any applicable
regulations of, the Assuming Institution’s Chartering Authority at the time an action is taken, as
such criteria may be amended from time to time.



     “Failed Bank” has the meaning set forth in the Purchase and Assumption Agreement.



     “Failed Bank Charge-Offs” means, with respect to any Asset, an amount equal to the aggregate
reversals or charge-offs of Accrued Interest and charge-offs and write-downs of principal effected
by the Failed Bank with respect to that Asset as reflected on the Accounting Records of the Failed
Bank.



     “Federal Arbitration Act” has the meaning set forth in Section 7.9.



     “FDIC” means the Federal Deposit Insurance Corporation, in any capacity, as appropriate.



     “FDIC Party” has the meaning set forth in Section 7.2.



     “Final Shared-Loss Month” means the calendar month in which the Termination Date occurs.



     “Fixtures” has the meaning set forth in the Purchase and Assumption Agreement.



     “Foreclosure Loss” means the loss realized when the Assuming Institution has completed the
foreclosure on a Shared-Loss Loan and has realized final recovery on the collateral through
liquidation and recovery of all insurance proceeds. Each Foreclosure Loss shall be calculated in
the form and determined in accordance with the methodologies set forth in Exhibits
2c(1)-(3).



			
	 	 	 
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     “Fully Charged-Off Assets” means Assets subject to Failed Bank Charge-Offs that were
completely charged-off by the Failed Bank and had a Book Value of zero on the Bank Closing Date.



     “Holding Company” means any company owning Shares of the Assuming Institution that is a
holding company pursuant to the Bank Holding Company Act of 1956, 12 U.S.C. 1841 et seq. or the
Home Owners’ Loan Act, 12 U.S.C. 1461 et seq.



     “Home Equity Loan” means a Loan or the funded or unfunded portions of a line of credit secured
by a mortgage on a one-to-four-family residence or stock of a cooperative housing association in
respect of which the Failed Bank did not have a first lien on the same property as collateral.



     “Home Equity Loan Loss” means the loss on a Home Equity Loan calculated in the form and
determined in accordance with the charge-off policies of and the loan classification criteria
employed by the Assuming Institution’s Chartering Authority as set forth in Exhibit 2d(1).



     “Investor-Owned Residential Loan” means a Loan, excluding advances made pursuant to a Home
Equity Loan, that is secured by a mortgage on a one-to-four family residence or stock of a
cooperative housing association that is not owner-occupied or the borrower’s primary residence.



     “Intrinsic Loss Estimate” is twenty-three million dollars ($23,000,000.00).



     “Loan” has the meaning set forth in the Purchase and Assumption Agreement.



     “Loan Records” means the subsidiary systems of record on which the loan history and balance of
each Shared-Loss Loan is maintained; individual loan files containing either an original or copies
of documents that are customary and reasonable with respect to loan servicing, including management
and disposition of ORE; the records documenting alternatives considered with respect to loans in
default or for which a default is reasonably foreseeable; records of loss calculations and
supporting documentation with respect to line items on the loss calculations; and monthly
delinquency reports and other performance reports customarily utilized by the Assuming Institution
in management of loan portfolios.



     “Loan Sale Loss” means the loss realized on a sale of a Shared-Loss Loan in pursuant to
Section 4.1(a).



     “Loss” means a Foreclosure Loss, Restructuring Loss, Short-Sale Loss, Loan Sale Loss,
Modification Default Loss, Deficiency Loss or Home Equity Loan Loss.



     “Loss Amount” means the dollar amount of any Loss incurred and reported on the Monthly
Certificate for a Shared-Loss Loan.



     “Management Standards” has the meaning set forth in Section 3.1.



     “Member” has the meaning set forth in Section 7.10.



			
	 	 	 
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     “Modification Default Loss” means the loss calculated in the form and determined accordance
with the methodologies set forth in Exhibits 2a(1)-(3) for Single Family Shared-Loss Loans
previously modified pursuant to this Agreement that subsequently default and result in a
Foreclosure Loss, a Short Sale Loss or a Deficiency Loss.



     “Modification Guidelines” has the meaning set forth in Section 2.4(c).



     “Monthly Certificate” means a certificate or certificates, signed by an officer of the
Assuming Institution involved in, or responsible for, the administration and servicing of the
Shared-Loss Loans, whose name appears on a list provided to the Receiver (as updated by the
Assuming Institution as needed from time to time) of servicing officers and the related supporting
documentation, setting forth in such form and detail as the Receiver may specify from time to time
the items set forth in Section 5.2.



     “Monthly Loss Amount” means the sum of all Restructuring Losses, Deficiency Losses,
Modification Default losses, Short-Sale Losses, Foreclosure Losses, Home Equity Loan Losses, Loan
Sale Losses and losses on Investor-Owned Residential Loans realized by the Assuming Institution for
any Shared-Loss Month.



     “Net Loss Amount” means the sum of all Covered Losses less all Covered Gains pursuant to the
Commercial Shared-Loss Agreement, plus the Cumulative Loss Amount under and as defined in the
Single Family Agreement.



     “Neutral Member” has the meaning set forth in Section 7.10(a)(ii).



     “Notice of Dispute” has the meaning set forth in Section 7.3.



     “Obligor” has the meaning set forth in the Purchase and Assumption Agreement.



     “ORE” means the following Assets that (a) are owned by the Failed Bank as of the Bank Closing
Date and purchased pursuant to the Purchase and Assumption Agreement or (b) have been acquired
subsequent to the Bank Closing Date from the collection or settlement by the Assuming Institution
of a Shared-Loss Loan, including, without limitation, any assets which have been fully or partially
charged-off on the books and records of the Failed Bank or the Assuming Institution:




               (i) interests in real estate (other than Bank Premises and Fixtures), including but
not
limited to mineral rights, leasehold rights, condominium and cooperative interests, air
rights and development rights; and




               (ii) other assets (whether real property, furniture, fixtures or equipment and, at
the
option of the Receiver, other personal property) acquired by foreclosure of ORE or in full
or partial satisfaction of judgments or indebtedness.



     “Party-Appointed Arbitrator” has the meaning set forth in Section 7.10(a)(ii).



     “Person” has the meaning set forth in the Purchase and Assumption Agreement.



			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-29









 






     “Receiver” has the meaning set forth in the Purchase and Assumption Agreement.



     “Record” has the meaning set forth in the Purchase and Assumption Agreement.



     “Recovery Amount” means, with respect to any period prior to the Termination Date, the amount
of funds received by the Assuming Institution that are (i) gains on a Foreclosure Loss or
Short-Sale Loss calculated in accordance with the methodology set forth in Exhibits 2c(1)-(3)
or Exhibits 2b(1)-(3) respectively, (ii) gains realized from a sale of Shared-Loss
Loans pursuant to Sections 4.1(a) and 4.1(b) for which the Assuming Institution has previously
received a Restructuring Loss payment from the Receiver or (iii) incentive payments from national
programs paid to an investor or borrower on loans that have been modified or otherwise treated in
accordance with Exhibit 5.



     “Related Loan” means a loan or extension of credit held by the Assuming Institution at any
time on or prior to the end of the Final Shared-Loss Month that is:



          (a) made to an Obligor of a Shared-Loss Loan; or




          (b) attributable to the same primary Obligor with respect to any Loan described at paragraph
(a) under the applicable rules of the Assuming Institution’s Chartering Authority concerning the
legal lending limits of financial institutions organized under its jurisdiction as in effect on the
Commencement Date.




     “Respondent Party” has the meaning set forth in Section 7.6(b).



     “Restructured Loan” means a Shared-Loss Loan for which the Assuming Institution has received a
Restructuring Loss payment from the Receiver, and may apply to owner-occupied and investor-owned
residences.



     “Restructuring Loss” means the loss on a modified Loan or a Restructured Loan represented by
the difference between (a) the principal, Accrued Interest, tax and insurance advances, third party
or other fees due on such loan prior to the modification or restructuring and (b) the net present
value of estimated cash flows on the modified or restructured loan, discounted at the Then-Current
Interest Rate. Each Restructuring Loss shall be calculated in the form and determined in accordance
with the methodologies set forth in Exhibits 2a(1)-(3), as applicable.



     “Review Board” has the meaning set forth in Section 7.10.



     “Settlement Interest Rate” has the meaning set forth in the Purchase and Assumption Agreement.



     “Shared-Loss Loan” means any or all of a Single Family Shared-Loss Loan, Investor-Owned
Residential Loan, Restructured Loan or Home Equity Loan and any Commitment with respect to those
loans or any ORE resulting from foreclosure on such loans, as applicable.



     “Shared-Loss Month” means each calendar month commencing on the first day of each month
following the Commencement Date and ending on the Termination Date, except that the



			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-30









 





first Shared-Loss Month shall begin on the Commencement Date and end on the last day of that
month.




     “Shares” means common stock and any instrument which is, or may become, convertible into
common stock.



     “Short-Sale Loss” means the loss resulting from the Assuming Institution’s acceptance from a
mortgagor of a payoff in an amount less than the balance due on a Loan (including the costs of any
cash incentives to the borrower to agree to such sale or to maintain the property pending such
sale), provided that each Short-Sale Loss shall be calculated in the form and determined in
accordance with the methodologies set forth in Exhibits 2b(1)-(3).



     “Single Family Shared-Loss Loan” means a single family one-to-four owner-occupied residential
mortgage loan, excluding a Home Equity Loan, that is secured by a mortgage on a one-to four family
residence or stock of a cooperative housing association.



     “Termination Date” means the last day of the month in which the tenth (10th)
anniversary of the Commencement Date occurs.



     “Then-Current Interest Rate” means the most recently published Primary Mortgage Market
Survey® (PMMS) for 30-year fixed-rate loans, or such other interest rate approved by the
Receiver.



     “Third Party Servicer” means any servicer appointed from time to time by the Assuming
Institution, which may include an Affiliate of the Assuming Institution, to service the Shared-Loss
Loans on behalf of the Assuming Institution.



     “Tranche 1 Amount” means a Net Loss Amount up to and including twenty-three million dollars
($23,000,000.00).



     “Tranche 2 Amount” means a Net Loss Amount in excess of the Tranche 1 Amount.



     “Tranche 3 Amount” means a Net Loss Amount in excess of the Tranche 2 Amount.



     “True-Up Date” means the date which is forty-five (45) days after the latest to occur of the
Termination Date of this Agreement, the Termination Date of the Commercial Agreement or disposition
of all Assets pursuant to this Agreement or the Commercial Agreement.



			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-31









 





EXHIBIT 1




MONTHLY CERTIFICATE



Note: This is an example only and not representative of any transaction.









			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-32









 










			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-33









 











			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-34









 






EXHIBIT 2a(1)




CALCULATION OF RESTRUCTURING LOSS



HAMP OR FDIC LOAN MODIFICATION



(Loan Written Down to Book Value Prior to Loss Share)



Note: This is an example only and not representative of any transaction.




	 	 	 	 	 	 	 

	1
	 	Shared-Loss Month	 	 	20100831	 
	2
	 	Loan no:	 	 	123456	 
	3
	 	Modification Program:	 	 	HAMP	 
	 
	 	 	 	 	 	 
	 
	 	Loan before Restructuring	 	 	 	 
	4
	 	Unpaid principal balance	 	 	450000	 
	50
	 	Net Book Value per Schedule 4.15A	 	 	375000	 
	51
	 	Less:  Post closing principal payments	 	 	2500	 
	5
	 	Remaining term	 	 	298	 
	6
	 	Interest rate	 	 	0.06500	 
	7
	 	Next ARM reset rate (if within next 4 months)	 	 	0.00000	 
	8
	 	Interest Paid-To-Date	 	 	20091230	 
	9
	 	Delinquency Status	 	 	F	 
	10
	 	Monthly payment - P&I	 	 	2539	 
	11
	 	Monthly payment - T&I	 	 	200	 
	 
	 	Total monthly payment
	 	 	2739	 
	12
	 	Household current annual income	 	 	55000	 
	13
	 	Valuation Date	 	 	20100901	 
	14
	 	Valuation Amount	 	 	350000	 
	 
	 	 	 	 	 	 
	15
	 	Valuation Type (INT, EXTP, AVM, BPO, DA, DB, FA, PAU and TV)	 	 	AVM	 
	 
	 	 	 	 	 	 
	 
	 	Terms of
Modified/Restructured Loan	 	 	 	 
	16
	 	1st Trial Payment Due Date	 	 	20090119	 
	17
	 	Modification Effective Date	 	 	20090419	 
	18
	 	Net Unpaid Principal Balance (net of forbearance & principal reduction)	 	 	403147	 
	19
	 	Principal forbearance	 	 	60040	 
	20
	 	Principal reduction	 	 	0	 
	21
	 	Product (fixed or step)	 	 	Step	 
	22
	 	Remaining amortization term	 	 	480	 
	23
	 	Maturity date	 	 	20490119	 






			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-35









 






	 	 	 	 	 	 	 

	24
	 	Interest rate	 	 	0.02000	 
	25
	 	Next Payment due date	 	 	20090601	 
	26
	 	Monthly payment - P&I	 	 	1221	 
	27
	 	Monthly payment - T&I	 	 	200	 
	 
	 	Total monthly payment
	 	 	1421	 
	28
	 	Next reset date	 	 	20140501	 
	29
	 	Interest rate change per adjustment	 	 	0.01000	 
	30
	 	Lifetime interest rate cap	 	 	0.05530	 
	31
	 	Back end DTI	 	 	0.45000	 
	 
	 	 	 	 	 	 
	 
	 	Restructuring Loss Calculation	 	 	 	 
	 
	 	 	 	 	 	 
	50-
	 	 	 	 	 	 
	51
	 	Net Book Value Less Principal Payments	 	 	372500	 
	35
	 	Attorneys’ fees	 	 	0	 
	 
	 	 	 	 	 	 
	36
	 	Foreclosure costs, including title search, filing fees, advertising, etc.	 	 	500	 
	37
	 	Property protection costs, maint. and repairs	 	 	0	 
	38
	 	Tax and insurance advances	 	 	2500	 
	 
	 	Other Advances	 	 	 	 
	39
	 	Appraisals/Broker’s Price Opinion fees	 	 	100	 
	40
	 	Inspections	 	 	0	 
	41
	 	Other	 	 	0	 
	 
	 	Gross balance recoverable by Assuming Institution	 	 	375600	 
	 
	 	 	 	 	 	 
	 
	 	Cash Recoveries:	 	 	 	 
	52
	 	MI Claim Date	 	 	20090119	 
	53
	 	MI Claim Amount	 	 	252000	 
	54
	 	MI Response Date	 	 	20090519	 
	42
	 	MI Contribution	 	 	0	 
	43
	 	Other credits	 	 	0	 
	44
	 	T & I escrow account balances, if positive	 	 	0	 
	 
	 	Total Cash Recovery	 	 	0	 
	 
	 	 	 	 	 	 
	 
	 	Assumptions for Calculating Loss Share Amount, Restructured Loan:	 	 	 	 
	45
	 	Discount rate for projected cash flows	 	 	0.05530	 
	46
	 	Loan prepayment in full	 	 	120	 
	47
	 	NPV of projected cash flows (see amort schd1)	 	 	364556	 
	 
	 	 	 	 	 	 
	48
	 	Loss Amount	 	 	11044	 






			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-36









 





Note: If the calculated Loss Amount is negative, meaning loss event proceeds are greater than
the gross balance recoverable by the Assuming Institution, the claim is considered a recovery and
reduces the total reported loss claim amount prior to applying the Applicable Percentage. If the
total amount of the Certificate loss claim is negative, the payment amount due the FDIC is
calculated by applying the Applicable Percentage.




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-37









 






EXHIBIT 2a(2)




CALCULATION OF RESTRUCTURING LOSS



HAMP OR FDIC LOAN MODIFICATION



(No proceeding Loan Restructure Under Loss Share)



Note: This is an example only and not representative of any transaction.




	 	 	 	 	 	 	 

	1
	 	Shared-Loss Month	 	 	20090531	 
	2
	 	Loan no:	 	 	123456	 
	3
	 	Modification Program:	 	 	HAMP	 
	 
	 	 	 	 	 	 
	 
	 	Loan before Restructuring	 	 	 	 
	4
	 	Unpaid principal balance	 	 	450000	 
	5
	 	Remaining term	 	 	298	 
	6
	 	Interest rate	 	 	0.06500	 
	7
	 	Next ARM reset rate (if within next 4 months)	 	 	0.00000	 
	8
	 	Interest Paid-To-Date	 	 	20091230	 
	9
	 	Delinquency Status	 	 	F	 
	10
	 	Monthly payment - P&I	 	 	3047	 
	11
	 	Monthly payment - T&I	 	 	200	 
	 
	 	Total monthly payment
	 	 	3247	 
	12
	 	Household current annual income	 	 	55000	 
	13
	 	Valuation Date	 	 	20100901	 
	14
	 	Valuation Amount	 	 	350000	 
	15
	 	Valuation Type (INT, EXTP, AVM, BPO, DA, DB, FA, PAU and TV)	 	 	AVM	 
	 
	 	 	 	 	 	 
	 
	 	Terms of
Modified/Restructured Loan	 	 	 	 
	16
	 	1st Trial Payment Due Date	 	 	20090119	 
	17
	 	Modification Effective Date	 	 	20090419	 
	18
	 	Net Unpaid Principal Balance (net of forbearance & principal reduction)	 	 	403147	 
	19
	 	Principal forbearance	 	 	60040	 
	20
	 	Principal reduction	 	 	0	 
	21
	 	Product (fixed or step)	 	 	step	 
	22
	 	Remaining amortization term	 	 	480	 
	23
	 	Maturity date	 	 	20490119	 
	24
	 	Interest rate	 	 	0.02000	 
	25
	 	Next Payment due date	 	 	20090601	 
	26
	 	Monthly payment - P&I	 	 	1221	 






			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-38









 






	 	 	 	 	 	 	 

	27
	 	Monthly payment - T&I	 	 	200	 
	 
	 	Total
monthly payment
	 	 	1421	 
	28
	 	Next reset date	 	 	20140501	 
	29
	 	Interest rate change per adjustment	 	 	0.01000	 
	30
	 	Lifetime interest rate cap	 	 	0.05530	 
	31
	 	Back end DTI	 	 	0.45000	 
	 
	 	 	 	 	 	 
	 
	 	Restructuring Loss Calculation	 	 	 	 
	Same
 as 4
 above
	 	Unpaid Principal Balance before restructuring/modification	 	 	450000	 
	34
	 	Accrued interest, limited to 90 days	 	 	7313	 
	35
	 	Attorneys’ fees	 	 	0	 
	36
	 	Foreclosure costs, including title search, filing fees, advertising etc.	 	 	500	 
	37
	 	Property protection costs, maint. and repairs	 	 	0	 
	38
	 	Tax and insurance advances	 	 	2500	 
	 
	 	Other Advances	 	 	 	 
	39
	 	Appraisals/Broker’s Price Opinion fees	 	 	100	 
	40
	 	Inspections	 	 	0	 
	41
	 	Other	 	 	0	 
	 
	 	Gross balance recoverable by Assuming Institution	 	 	460413	 
	 
	 	 	 	 	 	 
	 
	 	Cash Recoveries:	 	 	 	 
	52
	 	MI Claim Date	 	 	20090119	 
	53
	 	MI Claim Amount	 	 	370000	 
	54
	 	MI Response Date	 	 	20090519	 
	42
	 	MI Contribution	 	 	0	 
	43
	 	Other credits	 	 	0	 
	44
	 	T & I escrow account balances, if positive	 	 	0	 
	 
	 	Total Cash Recovery	 	 	0	 
	 
	 	 	 	 	 	 
	 
	 	Assumptions for Calculating Loss Share Amount, Restructured Loan:	 	 	 	 
	45
	 	Discount rate for projected cash flows	 	 	0.05530	 
	46
	 	Loan prepayment in full	 	 	120	 
	47
	 	NPV of projected cash flows (see amort schd2)	 	 	364556	 
	 
	 	 	 	 	 	 
	48
	 	Loss Amount	 	 	95856	 






			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-39









 





Note: If the calculated Loss Amount is negative, meaning loss event proceeds are greater than
the gross balance recoverable by the Assuming Institution, the claim is considered a recovery and
reduces the total reported loss claim amount prior to applying the Applicable Percentage. If the
total amount of the Certificate loss claim is negative, the payment amount due the FDIC is
calculated by applying the Applicable Percentage.




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-40









 






EXHIBIT 2a(3)




CALCULATION OF RESTRUCTURING LOSS



2ND FDIC RESTRUCTURING



Note: This is an example only and not representative of any transaction.




	 	 	 	 	 	 	 

	1
	 	Shared-Loss Month	 	 	20090531	 
	2
	 	Loan no:	 	 	123456	 
	3
	 	Modification Program:	 	FDIC	 
	 
	 	 	 	 	 	 
	 
	 	Loan before
Restructuring	 	 	 	 
	4
	 	Unpaid principal balance	 	 	450000	 
	5
	 	Remaining term	 	 	298	 
	6
	 	Interest rate	 	 	0.06500	 
	7
	 	Next ARM reset rate (if within next 4 months)	 	 	0.00000	 
	8
	 	Interest Paid-To-Date	 	 	20091230	 
	9
	 	Delinquency Status	 	 	F	 
	10
	 	Monthly payment - P&I	 	 	3047	 
	11
	 	Monthly payment - T&I	 	 	200	 
	 
	 	Total monthly payment
	 	 	3247	 
	12
	 	Household current annual income	 	 	55000	 
	13
	 	Valuation Date	 	 	20100901	 
	14
	 	Valuation Amount	 	 	350000	 
	 
	 	 	 	 	 	 
	15
	 	Valuation Type (INT, EXTP, AVM, BPO, DA, DB, FA, PAU and TV)	 	 	AVM	 
	 
	 	 	 	 	 	 
	 
	 	Terms of
Modified/Restructured Loan	 	 	 	 
	16
	 	1st Trial Payment Due Date	 	 	20090119	 
	17
	 	Modification Effective Date	 	 	20090419	 
	18
	 	Net Unpaid Principal Balance (net of forbearance & principal reduction)	 	 	403147	 
	19
	 	Principal forbearance	 	 	60040	 
	20
	 	Principal reduction	 	 	0	 
	21
	 	Product (fixed or step)	 	 	step	 
	22
	 	Remaining amortization term	 	 	480	 
	23
	 	Maturity date	 	 	20490119	 
	24
	 	Interest rate	 	 	0.02000	 
	25
	 	Next Payment due date	 	 	20090601	 
	26
	 	Monthly payment - P&I	 	 	1221	 
	27
	 	Monthly payment - T&I	 	 	200	 






			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-41









 






	 	 	 	 	 	 	 

	 
	 	Total monthly payment
	 	 	1421	 
	28
	 	Next reset date	 	 	20140501	 
	29
	 	Interest rate change per adjustment	 	 	0.01000	 
	30
	 	Lifetime interest rate cap	 	 	0.05530	 
	31
	 	Back end DTI	 	 	0.45000	 
	 
	 	 	 	 	 	 
	 
	 	Restructuring Loss Calculation	 	 	 	 
	32
	 	Previous NPV of loan modification	 	 	458740	 
	33
	 	Less:  Post modification principal payments	 	 	2500	 
	 
	 	Plus:	 	 	 	 
	35
	 	Attorneys’ fees	 	 	0	 
	 
	 	 	 	 	 	 
	36
	 	Foreclosure costs, including title search, filing fees, advertising, etc.	 	 	500	 
	37
	 	Property protection costs, maint. and repairs	 	 	0	 
	38
	 	Tax and insurance advances	 	 	2500	 
	 
	 	Other Advances	 	 	 	 
	39
	 	Appraisals/Broker’s Price Opinion fees	 	 	100	 
	40
	 	Inspections	 	 	0	 
	41
	 	Other	 	 	0	 
	 
	 	Gross balance recoverable by Assuming Institution	 	 	459340	 
	 
	 	 	 	 	 	 
	 
	 	Cash Recoveries:	 	 	 	 
	52
	 	MI Claim Date	 	 	20090119	 
	53
	 	MI Claim Amount	 	 	0	 
	54
	 	MI Response Date	 	 	20090519	 
	42
	 	MI Contribution	 	 	0	 
	43
	 	Other credits	 	 	0	 
	44
	 	T & I escrow account balances, if positive	 	 	0	 
	 
	 	Total Cash Recovery
	 	 	0	 
	 
	 	 	 	 	 	 
	 
	 	Assumptions for Calculating Loss Share Amount, Restructured Loan:	 	 	 	 
	45
	 	Discount rate for projected cash flows	 	 	0.05530	 
	46
	 	Loan prepayment in full	 	 	120	 
	47
	 	NPV of projected cash flows (see amort schd3)	 	 	364556	 
	 
	 	 	 	 	 	 
	48
	 	Loss Amount	 	 	94784	 





Note: If the calculated Loss Amount is negative, meaning loss event proceeds are greater than
the gross balance recoverable by the Assuming Institution, the claim is considered a recovery and
reduces the total reported loss claim




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-42









 





amount prior to applying the Applicable Percentage. If the total amount of the Certificate loss
claim is negative, the payment amount due the FDIC is calculated by applying the Applicable
Percentage.




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-43









 






Notes to Exhibits 2a (Restructuring)





	1.	 	The data shown are for illustrative purposes.
	 
	2.	 	The Covered Loss is the difference between the gross balance recoverable by the Assuming
Institution and the total cash recovery. There are three methods of calculation for
Restructuring Loss:






	 	a.	 	Use Exhibit 2a(1) for loans written down to book value prior to the
Bank Closing Date (based on the loan balance specified on Schedule 4.15A) less
any post closing principal payments.
	 
	 	b.	 	If a Restructuring Loss has already been processed for the loan, use
Exhibit 2a(3). This version uses the Net Present Value (NPV) of the modified
loan as the starting point for the Covered Loss.
	 
	 	c.	 	Otherwise, use Exhibit 2a(2). The unpaid balance of the loan as of the
last payment date is the starting point for this Restructuring Loss calculation.






	3.	 	The gross balance recoverable by the Assuming Institution (shown after line 41) is calculated
as: the sum of lines 50-51, and 35-41 for Exhibit 2a(1), the sum of lines 4, and 34-41
for Exhibit 2a(2), line 32 minus line 33 plus lines 35-41 for Exhibit 2a(3).
Costs specified in lines 35-41 must be related to the second restructuring.
	 
	4.	 	For all Exhibits 2a, the Assuming Institution’s (or Third Party Servicer’s)
reasonable and customary out-of-pocket costs paid to either a third party or an Affiliate for
foreclosure, property protection and maintenance costs, repairs, assessments, taxes, insurance
and similar items are treated as part of the gross recoverable balance, to the extent they are
not paid from funds in the borrower’s escrow account, and are limited to amounts specified in
Federal National Mortgage Association or Federal Home Loan Mortgage Corporation guidelines (as
in effect from time to time).
	 
	5.	 	For all Exhibits 2a, the total cash recovery is calculated as the sum of the lines
52-54 and 42-44.
	 
	6.	 	For purposes of loss sharing, Losses on Restructured Loans are calculated as the difference
between the gross balance recoverable by the Assuming Institution and the Net Present Value
(NPV) of the estimated cash flows (line 47). The cash flows should assume no default or
prepayment for ten years, followed by prepayment in full at the end of ten (10) years (one
hundred twenty (120) months).
	 
	7.	 	Reasonable and customary third party attorneys’ fees and expenses incurred by or on behalf of
the Assuming Institution in connection with any enforcement procedures, or otherwise with
respect to such loan, are reported under attorneys’ fees.
	 
	8.	 	For owner-occupied residential loans, the NPV is calculated using then current Primary
Mortgage Market Survey® (PMMS) for 30-year fixed-rate loans as of the restructuring
date.





			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-44









 






	9.	 	For Investor-Owned Residential Loans or non-owned occupied residential loans, the Assuming
Institution may propose a commercially reasonable discount rate for the NPV calculation.
	 
	10.	 	If the new loan is an adjustable-rate loan, interest rate resets and related cash flows
should be projected based on the index rate in effect at the date of the loan restructuring.
If the restructured loan otherwise provides for specific changes in monthly principal and
interest (“P&I”) payments over the term of the loan, those changes should be reflected in the
NPV. The Assuming Institution must retain the supporting schedules of NPV as required by
Section 5.2 of the Single Family Shared-Loss Agreement and provide it to the FDIC if requested
for a sample audit.
	 
	11.	 	Do not include late fees, prepayment penalties, or any similar lender fees or charges by the
Failed Bank or Assuming Institution to the loan account, any allocation of the Assuming
Institution’s servicing costs, or any allocations of the Assuming Institution’s general and
administrative (G&A) or other operating costs.
	 
	12.	 	If Exhibit 2a(1) or 2a(3) is used, then no Accrued Interest may be included
as a Covered Loss. Otherwise, the amount of Accrued Interest that may be added to the balance
of the loan is limited to the minimum of:






	 	a.	 	ninety (90) days;
	 
	 	b.	 	the number of days that the loan is delinquent at the time of restructuring; or
	 
	 	c.	 	the number of days between the resolution date and the restructuring.






	 	 	To calculate Accrued Interest, apply the note interest rate that would have been in effect
if the loan were performing to the principal balance after application of the last payment
made by the borrower.





			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-45









 






EXHIBIT 2b(1)

CALCULATION OF SHORT-SALE LOSS

(WRITTEN DOWN TO BOOK VALUE)




Note: This is an example only and not representative of any transaction.




Exhibit 2b(1)

CALCULATION OF LOSS FOR SHORT SALE LOANS

Loan written down to book value prior to Loss Share




	 	 	 	 	 	 	 

	1
	 	Shared-Loss Month:	 	 	20090531	 
	2
	 	Loan #	 	 	62201	 
	 
	 	 	 	 	 	 
	3
	 	Interest Paid-to-Date	 	 	20071130	 
	4
	 	Short Payoff Date	 	 	20090522	 
	5
	 	Note Interest rate	 	 	0.08500	 
	6
	 	Occupancy	 	 	Owner	 
	 
	 	If owner occupied:	 	 	 	 
	7
	 	Household current annual income	 	 	45000	 
	8
	 	Estimated NPV of loan mod	 	 	220000	 
	9
	 	Valuation Date	 	 	20090121	 
	10
	 	Valuation Amount	 	 	300000	 
	 
	 	 	 	 	 	 
	11
	 	Valuation Type (INT, EXTP, AVM, BPO, DA, DB, FA, PAU and TV)	 	 	EXT	 
	 
	 	 	 	 	 	 
	 
	 	Short-Sale Loss
calculation	 	 	 	 
	13
	 	Net Book Value per Schedule 4.15A	 	 	300000	 
	14
	 	Less:  Post closing principal payments	 	 	0	 
	17
	 	Accrued interest, limited to 90 days	 	 	6375	 
	18
	 	Attorneys’ fees	 	 	75	 
	 
	 	 	 	 	 	 
	19
	 	Foreclosure costs, including title search, filing fees, advertising, etc.	 	 	0	 
	20
	 	Property protection costs, maint., repairs and any costs or expenses  relating to environmental conditions	 	 	0	 
	21
	 	Tax and insurance advances	 	 	0	 
	 
	 	Other Advances	 	 	 	 
	22
	 	Appraisal/Broker’s Price Opinion fees	 	 	250	 
	23
	 	Inspections	 	 	600	 
	24
	 	Other	 	 	0	 
	25
	 	Incentive to borrower	 	 	5000	 






			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-46









 






	 	 	 	 	 	 	 

	 
	 	Gross balance recoverable by Assuming Institution	 	 	312300	 
	 
	 	 	 	 	 	 
	 
	 	Cash Recoveries:	 	 	 	 
	26
	 	Amount accepted in Short-Sale (proceeds gross of claimed amounts)	 	 	275000	 
	27
	 	Hazard Insurance	 	 	0	 
	33
	 	MI Claim Date	 	 	20090119	 
	34
	 	MI Claim Amount	 	 	0	 
	35
	 	MI Response Date	 	 	20090519	 
	28
	 	Mortgage Insurance	 	 	0	 
	29
	 	T & I escrow account balance, if positive	 	 	0	 
	30
	 	Other credits, if any (itemize)	 	 	0	 
	 
	 	Total Cash Recovery	 	 	275000	 
	 
	 	 	 	 	 	 
	31
	 	Loss Amount	 	 	37300	 








 




			
	1	 	Costs with respect to environmental remediation activities are limited to
$200,000 unless prior consent of the FDIC






	Note: If the calculated Loss Amount is negative, meaning loss event proceeds are greater than
the gross balance recoverable by the Assuming Institution, the claim is considered a recovery
and reduces the total reported loss claim amount prior to applying the Applicable Percentage.
If the total amount of the Certificate loss claim is negative, the payment amount due the FDIC
is calculated by applying the Applicable Percentage.





			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-47









 






EXHIBIT 2b(2)




CALCULATION OF LOSS FOR SHORT-SALE LOANS



(NO PRECEDING LOAN MODIFICATION UNDER LOSS SHARE)



Note: This is an example only and not representative of any transaction.




Exhibit 2b(2)

CALCULATION OF LOSS FOR SHORT SALE LOANS

No preceding Loan Restructure under Loss Share




	 	 	 	 	 	 	 

	1
	 	Shared-Loss Month:	 	 	20090531	 
	2
	 	Loan #	 	 	58776	 
	 
	 	 	 	 	 	 
	3
	 	Interest Paid-to-Date	 	 	20080731	 
	4
	 	Short Payoff Date	 	 	20090417	 
	5
	 	Note Interest rate	 	 	0.07750	 
	6
	 	Occupancy	 	 	Owner	 
	 
	 	If owner occupied:	 	 	 	 
	7
	 	Household current annual income	 	 	38500	 
	8
	 	Estimated NPV of loan mod	 	 	200000	 
	9
	 	Valuation Date	 	 	20090121	 
	10
	 	Valuation Amount	 	 	300000	 
	 
	 	 	 	 	 	 
	11
	 	Valuation Type (INT, EXTP, AVM, BPO, DA, DB, FA, PAU and TV)	 	 	EXT	 
	 
	 	 	 	 	 	 
	 
	 	Short-Sale Loss
calculation	 	 	 	 
	12
	 	Loan UPB	 	 	375000	 
	17
	 	Accrued interest, limited to 90 days	 	 	7266	 
	18
	 	Attorneys’ fees	 	 	0	 
	 
	 	 	 	 	 	 
	19
	 	Foreclosure costs, including title search, filing fees, advertising, etc.	 	 	400	 
	20
	 	Property protection costs, maint., repairs and any costs or expenses relating to environmental conditions	 	 	1450	 
	21
	 	Tax and insurance advances	 	 	0	 
	 
	 	Other Advances	 	 	 	 
	22
	 	Appraisal/Broker’s Price Opinion fees	 	 	350	 
	23
	 	Inspections	 	 	600	 
	24
	 	Other	 	 	0	 
	25
	 	Incentive to borrower	 	 	2000	 






			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-48









 






	 	 	 	 	 	 	 

	 
	 	Gross balance recoverable by Assuming Institution	 	 	387066	 
	 
	 	 	 	 	 	 
	 
	 	Cash Recoveries:	 	 	 	 
	26
	 	Amount accepted in Short-Sale (proceeds gross of claimed amounts)	 	 	275000	 
	27
	 	Hazard Insurance	 	 	0	 
	33
	 	MI Claim Date	 	 	20090119	 
	34
	 	MI Claim Amount	 	 	0	 
	35
	 	MI Response Date	 	 	20090519	 
	28
	 	Mortgage Insurance	 	 	0	 
	29
	 	T & I escrow account balance, if positive	 	 	0	 
	30
	 	Other credits, if any (itemize)	 	 	0	 
	 
	 	Total Cash Recovery	 	 	275000	 
	 
	 	 	 	 	 	 
	31
	 	Loss Amount	 	 	112066	 








 




			
	1 	 	Costs with respect to environmental remediation activities are limited to
$200,000 unless prior consent of the FDIC




Note: If the calculated Loss Amount is negative, meaning loss event proceeds are greater than
the gross balance recoverable by the Assuming Institution, the claim is considered a recovery
and reduces the total reported loss claim amount prior to applying the Applicable Percentage.
If the total amount of the Certificate loss claim is negative, the payment amount due the FDIC
is calculated by applying the Applicable Percentage.




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-49









 






EXHIBIT 2b(3)




CALCULATION OF LOSS FOR SHORT-SALE LOANS 



(AFTER A COVERED LOAN MODIFICATION) 



Note: This is an example only and not representative of any transaction.




Exhibit 2b(3)

CALCULATION OF LOSS FOR SHORT SALE LOANS

Short-Sale after Covered Loan Restructuring




	 	 	 	 	 	 	 

	1
	 	Shared-Loss Month:	 	 	20090531	 
	2
	 	Loan #	 	 	20076	 
	 
	 	 	 	 	 	 
	3
	 	Interest paid-to-date	 	 	20080930	 
	4
	 	Short Payoff Date	 	 	20090402	 
	5
	 	Note Interest rate	 	 	0.07500	 
	9
	 	Valuation Date	 	 	20090121	 
	10
	 	Valuation Amount	 	 	230000	 
	11
	 	Valuation Type (INT, EXTP, AVM, BPO, DA, DB, FA, PAU and TV)	 	 	EXT	 
	 
	 	 	 	 	 	 
	 
	 	Short-Sale Loss
calculation	 	 	 	 
	15
	 	NPV of projected cash flows at first loan mod	 	 	311000	 
	16
	 	Less: Post modification principal payments	 	 	1000	 
	 
	 	Plus:	 	 	 	 
	18
	 	Attorneys’ fees	 	 	0	 
	19
	 	Foreclosure costs, including title search, filing fees, advertising, etc.	 	 	0	 
	20
	 	Property protection costs, maint., repairs and any costs or expenses relating to environmental conditions	 	 	0	 
	21
	 	Tax and insurance advances	 	 	0	 
	 
	 	Other advances	 	 	 	 
	22
	 	Appraisal/Broker’s Price Opinion fees	 	 	350	 
	23
	 	Inspections	 	 	600	 
	24
	 	Other	 	 	0	 
	25
	 	Incentive to borrower	 	 	3500	 
	 
	 	 	 	 	 	 
	 
	 	Gross balance recoverable by Assuming Institution	 	 	314450	 
	 
	 	 	 	 	 	 
	 
	 	Cash Recoveries:	 	 	 	 
	 
	 	 	 	 	 	 
	26
	 	Amount accepted in Short-Sale (proceeds gross of claimed amounts)	 	 	210000	 
	27
	 	Hazard Insurance	 	 	0	 






			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-50









 






	 	 	 	 	 	 	 

	33
	 	MI Claim Date	 	 	19000100	 
	34
	 	MI Claim Amount	 	 	0	 
	35
	 	MI Response Date	 	 	19000100	 
	28
	 	Mortgage Insurance	 	 	0	 
	29
	 	T & I escrow account balance, if positive	 	 	400	 
	30
	 	Other credits, if any (itemize)	 	 	0	 
	 
	 	Total Cash Recovery
	 	 	210400	 
	 
	 	 	 	 	 	 
	31
	 	Loss Amount	 	 	104050	 








 




			
	1	 	Costs with respect to environmental remediation activities are limited
to $200,000 unless prior consent of the FDIC




Note: If the calculated Loss Amount is negative, meaning loss event proceeds are greater
than the
gross balance recoverable by the Assuming Institution, the claim is
considered a recovery and reduces the total reported loss claim amount prior
to applying the Applicable Percentage. If the total amount of the
Certificate loss claim is negative, the payment amount due the FDIC is
calculated by applying the Applicable Percentage.




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-51









 







Notes to Exhibits 2b (Short-Sale)





	1.	 	The data shown are for illustrative purposes.
	 
	2.	 	The Covered Loss is the difference between the gross balance recoverable by Assuming
Institution and the total cash recovery. There are three methods of calculation for Short-Sale
Loss, depending upon the circumstances:






	 	a.	 	Use Exhibit 2b(1) for loans written down to book value prior to bank
failure (based on the loan balance specified on Schedule 4.15A) less any post
closing principal payments.
	 
	 	b.	 	If a Restructuring Loss was submitted prior to the short sale, use Exhibit
2b(3). This version uses the Net Present Value (NPV) of the modified loan as the
starting point for the Covered Loss less post-modification principal payments.
	 
	 	c.	 	Otherwise, use Exhibit 2b(2). The unpaid balance of the loan as of the
last payment date is the starting point for this Short-Sale Loss calculation.






	3.	 	The gross balance recoverable by the Assuming Institution (shown after line 25) is calculated
as: line 13 minus line 14 plus lines 18-25 for Exhibit 2b(1), the sum of lines 12,
17-25 for Exhibit 2b(2), line 15 minus line 16 plus lines 18-25 for Exhibit
2b(3).
	 
	4.	 	For all Exhibits 2b, the Assuming Institution’s (or Third Party Servicer’s)
reasonable and customary out-of-pocket costs paid to either a third party or an Affiliate for
foreclosure, property protection and maintenance costs, repairs, assessments, taxes, insurance
and similar items are treated as part of the gross recoverable balance, to the extent they are
not paid from funds in the borrower’s escrow account, and are limited to amounts specified in
Federal National Mortgage Association or Federal Home Loan Mortgage Corporation guidelines (as
in effect from time to time).
	 
	5.	 	The total cash recovery is calculated as the sum of lines 26-30 for all Exhibits 2b
and is shown after line 30.
	 
	6.	 	Reasonable and customary third party attorneys’ fees and expenses incurred by on or behalf of
the Assuming Institution in connection with any enforcement procedures, or otherwise with
respect to such loan, are reported under attorneys’ fees.
	 
	7.	 	Do not include late fees, prepayment penalties or any similar lender fees or charges by the
Failed Bank or the Assuming Institution to the loan account, any allocation of the Assuming
Institution’s servicing costs, or any allocations of the Assuming Institution’s general and
administrative (G&A) or other operating costs.
	 
	8.	 	Net liquidation proceeds are gross of any claimed amounts and Accrued Interest amounts.
	 
	9.	 	If Exhibit 2b(1) or 2b(3) is used, then no Accrued Interest may be included
as a Covered Loss. Otherwise, the amount of Accrued Interest that may be included as a Covered
Loss is limited to the minimum of:





			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-52









 






	 	a.	 	ninety (90) days;
	 
	 	b.	 	the number of days that the loan is delinquent when the property was sold; or
	 
	 	c.	 	the number of days between the resolution date and the date when the property
was sold.




To calculate Accrued Interest, apply the note interest rate that would have been in effect if the
loan were performing to the principal balance after application of the last payment made by the
borrower.




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-53









 






EXHIBIT 2c(1)




CALCULATION OF FORECLOSURE LOSS



(ORE OR FORECLOSURE OCCURRED PRIOR TO LOSS SHARE AGREEMENT)



     Note: This is an example only and not representative of any transaction.



Exhibit 2c(1)

CALCULATION OF FORECLOSURE LOSS

Loan written down to book value prior to Loss Share




	 	 	 	 	 	 	 

	1
	 	Shared-Loss Month	 	 	20090630	 
	2
	 	Loan no:	 	 	364574	 
	 
	 	 	 	 	 	 
	3
	 	Interest Paid-To-Date	 	 	20071001	 
	4
	 	Foreclosure sale date	 	 	20080202	 
	5
	 	Liquidation date	 	 	20090412	 
	6
	 	Note Interest rate	 	 	0.08100	 
	10
	 	Valuation Date	 	 	20090121	 
	11
	 	Valuation Amount	 	 	228000	 
	 
	 	 	 	 	 	 
	12
	 	Valuation Type (INT, EXTP, AVM, BPO, DA, DB, FA, PAU and TV)	 	 	INT	 
	 
	 	 	 	 	 	 
	 
	 	Foreclosure Loss
calculation	 	 	 	 
	13
	 	Net Book Value per Schedule 4.15A	 	 	244900	 
	14
	 	Less: Post closing principal payments	 	 	0	 
	 
	 	 	 	 	 	 
	 
	 	Costs incurred after Loss Share agreement in place:	 	 	 	 
	19
	 	Attorneys’ fees	 	 	0	 
	20
	 	Foreclosure costs, including title search, filing fees, advertising, etc.	 	 	0	 
	21
	 	Property protection costs, maint. and repairs	 	 	6500	 
	22
	 	Tax and insurance advances	 	 	0	 
	 
	 	Other Advances	 	 	 	 
	23
	 	Appraisal/Broker’s Price Opinion fees	 	 	0	 
	24
	 	Inspections	 	 	0	 
	25
	 	Other	 	 	0	 
	 
	 	Gross balance recoverable by Assuming Institution	 	 	251400	 
	 
	 	 	 	 	 	 
	 
	 	Cash Recoveries:	 	 	 	 
	26
	 	Net liquidation proceeds (from HUD-1 settl stmt)	 	 	219400	 
	27
	 	Hazard Insurance proceeds	 	 	0	 
	33
	 	MI Claim Date	 	 	19000100	 
	34
	 	MI Claim Amount	 	 	0	 
	35
	 	MI Response Date	 	 	19000100	 
	28
	 	Mortgage Insurance proceeds	 	 	0	 
	29
	 	T & I escrow account balances, if positive	 	 	0	 
	30
	 	Other credits, if any (itemize)	 	 	0	 
	 
	 	Total Cash Recovery
	 	 	219400	 






			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-54









 






	 	 	 	 	 	 	 

	31
	 	Loss Amount	 	 	32000	 





Note: If the calculated Loss Amount is negative, meaning loss event proceeds
are greater than the gross balance recoverable by the Assuming Institution,
the claim is considered a recovery and reduces the total reported loss claim
amount prior to applying the Applicable Percentage. If the total amount of the
Certificate loss claim is negative, the payment amount due the FDIC is
calculated by applying the Applicable Percentage.




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements 

Version 3.01 — Single Family Shared-Loss Agreement
	 	CORTEZ COMMUNITY BANK

BROOKSVILLE, FLORIDA
	December 8, 2010	 	 







SF-55











 





EXHIBIT 2c(2) 

CALCULATION OF FORECLOSURE LOSS 

(DURING THE TERM OF THE AGREEMENT, 

NO PRECEDING LOAN MODIFICATION UNDER LOSS SHARE)




Note: This is an example only and not representative of any transaction.




Exhibit 2c(2)

CALCULATION OF FORECLOSURE LOSS

No Preceding Loan Restructuring under Loss Share



	 	 	 	 	 	 	 

	1
	 	Shared-Loss Month	 	 	20090531	 
	2
	 	Loan no:	 	 	292334	 
	 
	 	 	 	 	 	 
	3
	 	Interest Paid-to-Date	 	 	20080430	 
	4
	 	Foreclosure sale date	 	 	20090115	 
	5
	 	Liquidation date	 	 	20090412	 
	6
	 	Note Interest rate	 	 	0.08000	 
	7
	 	Occupancy	 	 	Owner	 
	 
	 	If owner occupied:	 	 	 	 
	8
	 	Household current annual income	 	 	42000	 
	9
	 	Estimated NPV of loan mod	 	 	195000	 
	10
	 	Valuation Date	 	 	20090121	 
	11
	 	Valuation Amount	 	 	235000	 
	 
	 	 	 	 	 	 
	12
	 	Valuation Type (INT, EXTP, AVM, BPO, DA, DB, FA, PAU and TV)	 	 	EXT BPO	 
	 
	 	 	 	 	 	 
	 
	 	Foreclosure Loss
calculation	 	 	 	 
	15
	 	Loan Principal balance at property reversion	 	 	300000	 
	 
	 	Plus:	 	 	 	 
	18
	 	Accrued interest, limited to 90 days	 	 	6000	 
	19
	 	Attorneys' fees	 	 	0	 
	20
	 	Foreclosure costs, including title search, filing fees, advertising, etc.	 	 	500	 
	21
	 	Property protection costs, maint. and repairs	 	 	5500	 
	22
	 	Tax and insurance advances	 	 	1500	 
	 
	 	Other Advances	 	 	 	 
	23
	 	Appraisal/Broker's Price Opinion fees	 	 	0	 
	24
	 	Inspections	 	 	50	 
	25
	 	Other	 	 	0	 
	 
	 	 	 	 	 	 
	 
	 	Gross balance recoverable by Assuming Institution	 	 	313550	 
	 
	 	 	 	 	 	 
	 
	 	Cash Recoveries:	 	 	 	 
	26
	 	Net liquidation proceeds (from HUD-1 settl stmt)	 	 	205000	 
	27
	 	Hazard Insurance proceeds	 	 	0	 
	33
	 	MI Claim Date	 	 	19000100	 
	34
	 	MI Claim Amount	 	 	0	 






			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-56









 





	 	 	 	 	 	 	 

	35
	 	MI Response Date	 	 	19000100	 
	28
	 	Mortgage Insurance proceeds	 	 	0	 
	29
	 	T & I escrow account balances, if positive	 	 	0	 
	30
	 	Other credits, if any (itemize)	 	 	0	 
	 
	 	Total Cash Recovery	 	 	205000	 
	31
	 	Loss Amount	 	 	108550	 





Note: If the calculated Loss Amount is negative, meaning loss event
proceeds are greater than the gross balance recoverable by the Assuming
Institution, the claim is considered a recovery and reduces the total
reported loss claim amount prior to applying the Applicable Percentage.
If the total amount of the Certificate loss claim is negative, the
payment amount due the FDIC is calculated by applying the Applicable
Percentage.




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-57









 





EXHIBIT 2c(3)

CALCULATION OF FORECLOSURE LOANS

(FORECLOSURE AFTER COVERED LOAN MODIFICATION)




Note: This is an example only and not representative of any transaction.




Exhibit 2c(3)

CALCULATION OF FORECLOSURE LOSS

Foreclosure after a Covered Loan Restructuring




	 	 	 	 	 	 	 

	1
	 	Shared-Loss Month	 	 	20090531	 
	2
	 	Loan no:	 	 	138554	 
	 
	 	 	 	 	 	 
	3
	 	Interest Paid-to-Date	 	 	20080430	 
	4
	 	Foreclosure sale date	 	 	20090115	 
	5
	 	Liquidation date	 	 	20090412	 
	6
	 	Note Interest rate	 	 	0.04000	 
	10
	 	Valuation Date	 	 	20081215	 
	11
	 	Valuation Amount	 	 	210000	 
	 
	 	 	 	 	 	 
	12
	 	Valuation Type (INT, EXTP, AVM, BPO, DA, DB, FA, PAU and TV)	 	 	EXT	 
	 
	 	 	 	 	 	 
	 
	 	Foreclosure Loss
calculation	 	 	 	 
	16
	 	NPV of projected cash flows at loan mod	 	 	285000	 
	17
	 	Less: Post modification principal payments	 	 	2500	 
	 
	 	Plus:	 	 	 	 
	19
	 	Attorneys' fees	 	 	0	 
	 
	 	 	 	 	 	 
	20
	 	Foreclosure costs, including title search, filing fees, advertising, etc.	 	 	500	 
	21
	 	Property protection costs, maint. and repairs	 	 	7000	 
	22
	 	Tax and insurance advances	 	 	2000	 
	 
	 	Other Advances	 	 	 	 
	23
	 	Appraisal/Broker's Price Opinion fees	 	 	0	 
	24
	 	Inspections	 	 	0	 
	25
	 	Other	 	 	0	 
	 
	 	 	 	 	 	 
	 
	 	Gross balance recoverable by Assuming Institution	 	 	292000	 
	 
	 	 	 	 	 	 
	 
	 	Cash Recoveries:	 	 	 	 
	26
	 	Net liquidation proceeds (from HUD-1 settl stmt)	 	 	201000	 
	27
	 	Hazard Insurance proceeds	 	 	0	 
	33
	 	MI Claim Date	 	 	19000100	 
	34
	 	MI Claim Amount	 	 	0	 
	35
	 	MI Response Date	 	 	19000100	 
	28
	 	Mortgage Insurance proceeds	 	 	0	 
	29
	 	T & I escrow account balances, if positive	 	 	0	 
	30
	 	Other credits, if any (itemize)	 	 	0	 
	 
	 	Total Cash Recovery
	 	 	201000	 
	 
	 	 	 	 	 	 
	31
	 	Loss Amount	 	 	91000	 





Note: If the calculated Loss Amount is negative, meaning loss event proceeds are
greater than the gross balance recoverable by the Assuming Institution, the claim is
considered a recovery and reduces




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-58









 





the total reported loss claim amount prior to
applying the Applicable Percentage. If the total amount of the Certificate loss claim
is negative, the payment amount due the FDIC is calculated by applying the Applicable
Percentage.




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-59









 






Notes to Exhibits 2c (Foreclosure)





	1.	 	The data shown are for illustrative purposes.
	 
	2.	 	The Covered Loss is the difference between the gross balance recoverable by Assuming
Institution and the total cash recovery. There are three methods of calculation for
Foreclosure Loss, depending upon the circumstance:






	 	a.	 	Use Exhibit 2c(1) for loans written down to book value prior to bank
failure (based on the loan balance specified on Schedule 4.15A) less any post
closing principal payments.
	 
	 	b.	 	If a Restructuring Loss was submitted prior to the foreclosure liquidation, use
Exhibit 2c(3). This version uses the Net Present Value (NPV) of the modified
loan as the starting point for the Covered Loss less post modification principal
payments.
	 
	 	c.	 	Otherwise, use Exhibit 2c(2). The unpaid balance of the loan as of the
last payment date is the starting point for this Foreclosure Loss calculation.






	3.	 	The gross balance recoverable by the Assuming Institution (shown after line 25) is calculated
as: line 13 minus line 14 plus lines 19-25 for Exhibit 2c(1), the sum of lines 15,
18-25 for Exhibit 2c(2), line 13 minus line 14 plus lines 19-25 for Exhibit
2c(3).
	 
	4.	 	For all Exhibits 2c, the Assuming Institution’s (or Third Party Servicer’s)
reasonable and customary out-of-pocket costs paid to either a third party or an Affiliate for
foreclosure, property protection and maintenance costs, repairs, assessments, taxes, insurance
and similar items are treated as part of the gross recoverable balance, to the extent they are
not paid from funds in the borrower’s escrow account, and are limited to amounts specified in
Federal National Mortgage Association or Federal Home Loan Mortgage Corporation guidelines (as
in effect from time to time).
	 
	5.	 	The total cash recovery is calculated as the sum of lines 26-30, 33-35 for all Exhibits
2c and is shown after line 30.
	 
	6.	 	Reasonable and customary third party attorneys’ fees and expenses incurred by or on behalf of
the Assuming Institution in connection with any enforcement procedures, or otherwise with
respect to such loan, are reported under attorneys’ fees.
	 
	7.	 	Do not include late fees, prepayment penalties or any similar lender fees or charges by the
Failed Bank or the Assuming Institution to the loan account, any allocation of the Assuming
Institution’s servicing costs, or any allocations of the Assuming Institution’s general and
administrative (G&A) or other operating costs.
	 
	8.	 	Net liquidation proceeds are gross of any claimed amounts and Accrued Interest amounts.





			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-60









 







	9.	 	If Exhibit 2c(1) or 2c(3) is used, then no Accrued Interest may be included
as a Covered Loss. Otherwise, the amount of Accrued Interest that may be included as a Covered
Loss is limited to the minimum of:






	 	a.	 	ninety (90) days;
	 
	 	b.	 	the number of days that the loan is delinquent when the property was sold; or
	 
	 	c.	 	the number of days between the resolution date and the date when the property
was sold.






To calculate Accrued Interest, apply the note interest rate that would have been in effect
if the loan were performing to the principal balance after application of the last payment
made by the borrower.



			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-61









 





EXHIBIT 2(d)(1)




CALCULATION OF HOME EQUITY LOAN LOSS




Note: This is an example only and not representative of any transaction.




	 	 	 	 	 	 	 
	1
	 	Shared-Loss Month:	 	 	20090531	 
	2
	 	Loan #	 	 	58776	 
	 
	 	 	 	 	 	 
	3
	 	Interest paid-to-date	 	 	20081201	 
	4
	 	Charge-Off Date	 	 	20090531	 
	5
	 	Note Interest rate	 	 	0.03500	 
	6
	 	Occupancy	 	 	Owner	 
	 
	 	If owner occupied:	 	 	 	 
	7
	 	Household current annual income	 	 	0	 
	8
	 	Valuation Date	 	 	20090402	 
	9
	 	Valuation Amount	 	 	230000	 
	 
	 	 	 	 	 	 
	10
	 	Valuation Type (INT, EXTP, AVM, BPO, DA, DB, FA, PAU and TV)	 	 	BPO	 
	11
	 	Balance of superior liens	 	 	300000	 
	 
	 	 	 	 	 	 
	 
	 	Charge-Off Loss
calculation	 	 	 	 
	12
	 	Loan Principal balance	 	 	55000	 
	13
	 	Charge-off amount (principal only)	 	 	55000	 
	 
	 	Plus:	 	 	 	 
	14
	 	Accrued interest, limited to 90 days	 	 	481	 
	15
	 	Attorneys' fees	 	 	0	 
	16
	 	Foreclosure costs, including title search, filing fees, advertising, etc.	 	 	250	 
	17
	 	Property protection costs, maint., repairs and any costs or expenses relating to environmental conditions	 	 	0	 
	18
	 	Tax and insurance advances	 	 	0	 
	 
	 	Other Advances	 	 	 	 
	19
	 	Appraisal/Broker's Price Opinion fees	 	 	75	 
	20
	 	Inspections	 	 	0	 
	21
	 	Other	 	 	0	 
	 
	 	 	 	 	 	 
	 
	 	Gross balance recoverable by Assuming Institution	 	 	55806	 
	 
	 	 	 	 	 	 
	22
	 	Foreclosure sale proceeds	 	 	0	 
	23
	 	Hazard Insurance proceeds	 	 	0	 
	31
	 	MI Claim Date	 	 	19000100	 
	32
	 	MI Claim Amount	 	 	0	 
	33
	 	MI Response Date	 	 	19000100	 
	24
	 	Mortgage Insurance proceeds	 	 	0	 
	25
	 	Tax overage	 	 	0	 
	26
	 	First lien payoff	 	 	1500	 
	27
	 	Other credits, if any (itemize)	 	 	0	 
	 
	 	 	 	 	 	 
	 
	 	Total Cash Recovery	 	 	1500	 
	 
	 	 	 	 	 	 
	28
	 	Loss Amount	 	 	54306	 






			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-62









 








 




			
	1	 	Costs with respect to environmental remediation activities
are limited to $200,000 unless prior consent of the FDIC




Note: If the calculated Loss Amount is negative, meaning loss event proceeds
are greater than the gross balance recoverable by the Assuming Institution,
the claim is considered a recovery and reduces the total reported loss claim
amount prior to applying the Applicable Percentage. If the total amount of the
Certificate loss claim is negative, the payment amount due the FDIC is
calculated by applying the Applicable Percentage.




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-63









 






EXHIBIT 2d(2)




CALCULATION OF RECOVERY




WHEN A RESTRUCTURING LOSS HAS BEEN PAID




Note: This is an example only and not representative of any transaction.




	 	 	 

	Shared-Loss Month:

	 	[input month]
	Loan No.:

	 	[input loan no.)






NOTE




The calculation of recovery on a loan for which a Restructuring Loss has been paid will only apply
if the loan is sold.




	 	 	 	 	 	 	 

	EXAMPLE
CALCULATION
	 	 	 	 	 	 
	Restructuring
Loss Information
	 	 	 	 	 	 
	Loan principal balance before restructuring NPV,
	 	$	200,000	 	 	A
	restructured loan
	 	 	165,000	 	 	B
	 
	 	 	 	 	 
	Loss on restructured loan
	 	$	35,000	 	 	A — B
	Times FDIC applicable loss share % (80%)
	 	 	80	%	 	 
	 
	 	 	 	 	 
	Loss share payment to Assuming Institution
	 	$	28,000	 	 	C
	Calculation
— Recovery amount due to Receiver
	 	 	 	 	 	 
	Loan sales price
	 	$	190,000	 	 	 
	NPV of restructured loan at mod date
	 	 	165,000	 	 	 
	 
	 	 	 	 	 
	Gain — step 1
	 	 	25,000	 	 	D
	 
	 	 	 	 	 
	PLUS
	 	 	 	 	 	 
	Loan UPB after restructuring
	(1)	 	200,000	 	 	 
	Loan UPB at liquidation date
	 	 	192,000	 	 	 
	 
	 	 	 	 	 
	Gain — step 2 (principal collections after restructuring)
	 	 	8,000	 	 	E
	 
	 	 	 	 	 
	Recovery amount
	 	 	33,000	 	 	D + E
	Times FDIC loss share %
	 	 	80	%	 	 
	 
	 	 	 	 	 
	Recovery due to FDIC
	 	$	26,400	 	 	F
	 
	 	 	 	 	 	 
	Net loss share paid to Assuming Institution (C — F)
	 	$	1,600	 	 	 
	 
	 	 	 	 	 	 
	Proof
Calculation
	(2)	 	 	 	 	 
	Loan principal balance
	 	$	200,000	 	 	G
	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Principal collections on loan
	 	 	8,000	 	 	 
	Sales price for loan
	 	 	190,000	 	 	 
	 
	 	 	 	 	 
	Total collections on loan
	 	 	198,000	 	 	H
	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Net loss on loan
	 	$	2,000	 	 	G — H
	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Times FDIC applicable loss share % (80%)
	 	 	80	%	 	 
	 
	 	 	 	 	 
	Loss share payment to Assuming
Institution
	 	$	1,600	 	 	 






			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-64









 








 




			
	(1)	 	This example assumes that the FDIC loan modification program as shown in
Exhibit 5 is applied and the loan restructuring does not result in a
reduction in the loan principal balance due from the borrower.
	 
	(2)	 	This proof calculation is provided to illustrate the concept and
the Assuming Institution is not required to provide this with its Recovery
calculations.





			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-65









 





Notes to Exhibits 2d (Charge-Off)





	1.	 	The data shown are for illustrative purposes.
	 
	2.	 	The Covered Loss is the difference between the gross loss recoverable by Assuming Institution
and the total cash recovery. The gross balance recoverable by the Assuming Institution is
calculated as the charge-off amount plus permissible third party fees (sum of lines 13-21). If
a charge-off occurred prior to bank failure, the charge-off amount is limited to the loan
balance specified on Schedule 4.15A less post closing principal payments. Otherwise
the charge-off amount is limited to the outstanding principal balance at the time of the last
payment made.
	 
	3.	 	For all Exhibits 2d, the Assuming Institution’s (or Third Party Servicer’s)
reasonable and customary out-of-pocket costs paid to either a third party or an Affiliate for
foreclosure, property protection and maintenance costs, repairs, assessments, taxes, insurance
and similar items are treated as part of the gross recoverable balance, to the extent they are
not paid from funds in the borrower’s escrow account, and are limited to amounts specified in
Federal National Mortgage Association or Federal Home Loan Mortgage Corporation guidelines (as
in effect from time to time).
	 
	4.	 	The total cash recovery is calculated as the sum of lines 23-27, and is shown after line 27.
	 
	5.	 	Reasonable and customary attorneys’ fees and expenses incurred by or on behalf of the
Assuming Institution in connection with any enforcement procedures, or otherwise with respect
to such loan, are reported under attorneys’ fees.
	 
	6.	 	Do not include late fees, prepayment penalties, or any similar lender fees or charges by the
Failed Bank or the Assuming Institution to the loan account, any allocation of the Assuming
Institution’s servicing costs or any allocations of the Assuming Institution’s general and
administrative (G&A) or other operating costs.
	 
	7.	 	If a Charge-Off occurred prior to bank failure, no Accrued Interest may be claimed.
Otherwise, the amount of Accrued Interest that may be included as a Covered Loss is limited to
the minimum of:






	 	a.	 	ninety (90) days;
	 
	 	b.	 	the number of days that the loan is delinquent when the Charge-Off occurred; or
	 
	 	c.	 	the number of days between the resolution date and the Charge-Off date.






To calculate Accrued Interest, apply the note interest rate that would have been in effect
if the loan were performing to the principal balance after application of the last payment
made by the borrower.



			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-66









 






EXHIBIT 2(e)(1)




CALCULATION OF LOAN SALE LOSS




(LOAN WRITTEN DOWN TO BOOK VALUE PRIOR TO LOSS SHARE)




Note: This is an example only and not representative of any transaction.




Exhibit 2e(1)

CALCULATION OF LOAN SALE LOSS

Loan written down to book value prior to Loss Share




	 	 	 	 	 	 	 
	1
	 	Shared-Loss Month	 	 	20100930	 
	22
	 	FDIC Asset ID:	 	 	4587999	 
	2
	 	Loan No:	 	 	 	 
	7
	 	Valuation Date	 	 	20100330	 
	8
	 	Valuation Amount	 	 	250000	 
	9
	 	Valuation Type (INT, EXTP, AVM, BPO, DA, DB, FA, PAU and TV)	 	 	INT	 
	10
	 	Delinquency Status	 	 	F	 
	 
	 	Loan Sale Loss
calculation	 	 	 	 
	11
	 	Net Book Value per Schedule 4.15A	 	 	250000	 
	12
	 	Less: Post closing principal payments	 	 	1000	 
	 
	 	Gross balance recoverable by Assuming Institution
	 	 	249000	 
	 
	 	Cash Recoveries:	 	 	 	 
	3
	 	Sale Date	 	 	20100920	 
	4
	 	Gross Sale Proceeds	 	 	220000	 
	16
	 	Other credits, if any (itemize)	 	 	0	 
	 
	 	Total Cash Recovery
	 	 	220000	 
	5
	 	Loss Amount	 	 	29000	 





Note: If the calculated Loss Amount is negative, meaning loss event proceeds are
greater than the gross balance recoverable by the Assuming Institution, the claim is
considered a recovery and reduces the total reported loss claim amount prior to applying
the Applicable Percentage. If the total amount of the Certificate loss claim is
negative, the payment amount due the FDIC is calculated by applying the Applicable
Percentage.




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-67









 






EXHIBIT 2(e)(2)




CALCULATION OF LOAN SALE LOSS




(NO PRECEDING LOAN MODIFICATION UNDER LOSS SHARE)




Note: This is an example only and not representative of any transaction.




Exhibit 2e(2)

CALCULATION OF LOAN SALE LOSS

No Preceding Loan restructuring under Loss Share




	 	 	 	 	 	 	 
	1
	 	Shared-Loss Month	 	 	20100930	 
	21
	 	FDIC Loan ID:	 	 	8877050	 
	2
	 	Loan No:	 	 	 	 
	 
	 	 	 	 	 	 
	7
	 	Valuation Date	 	 	20100330	 
	8
	 	Valuation Amount	 	 	210000	 
	 
	 	 	 	 	 	 
	9
	 	Valuation Type (INT, EXTP, AVM, BPO, DA, DB, FA, PAU and TV)	 	 	INT	 
	10
	 	Delinquency Status	 	 	F	 
	 
	 	 	 	 	 	 
	 
	 	Loan Sale Loss calculation	 	 	 	 
	 
	 	 	 	 	 	 
	13
	 	UPB	 	 	285000	 
	 
	 	Gross balance recoverable by Assuming Institution
	 	 	285000	 
	 
	 	 	 	 	 	 
	 
	 	Cash Recoveries:	 	 	 	 
	3
	 	Sale Date	 	 	20100920	 
	4
	 	Gross Sale Proceeds	 	 	200000	 
	16
	 	Other credits, if any (itemize)	 	 	0	 
	 
	 	Total Cash Recovery
	 	 	200000	 
	 
	 	 	 	 	 	 
	5
	 	Loss Amount	 	 	85000	 





Note: If the calculated Loss Amount is negative, meaning loss event
proceeds are greater than the gross balance recoverable by the Assuming
Institution, the claim is considered a recovery and reduces the total
reported loss claim amount prior to applying the Applicable Percentage. If
the total amount of the Certificate loss claim is negative, the payment
amount due the FDIC is calculated by applying the Applicable Percentage.




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-68









 






EXHIBIT 2(e)(3)




CALCULATION OF LOAN SALE LOSS




(LOAN SALE AFTER A COVERED LOAN MODIFICATION)




Note: This is an example only and not representative of any transaction.




Exhibit 2e(3)

CALCULATION OF LOAN SALE LOSS

Loan Sale after a Covered Loan Restructuring




	 	 	 	 	 	 	 

	1
	 	Shared-Loss Month	 	 	20100930	 
	21
	 	FDIC Loan ID:	 	 	222512	 
	2
	 	Loan No:	 	 	 	 
	 
	 	 	 	 	 	 
	7
	 	Valuation Date	 	 	20100330	 
	8
	 	Valuation Amount	 	 	230000	 
	 
	 	 	 	 	 	 
	9
	 	Valuation Type (INT, EXTP, AVM, BPO, DA, DB, FA, PAU and TV)	 	 	INT	 
	10
	 	Delinquency Status	 	 	F	 
	 
	 	 	 	 	 	 
	 
	 	Loan Sale Loss calculation	 	 	 	 
	14
	 	NPV of projected cash flows at loan mod	 	 	265000	 
	15
	 	Less: Post modification principal payments	 	 	2500	 
	 
	 	Gross balance recoverable by Assuming Institution
	 	 	262500	 
	 
	 	 	 	 	 	 
	 
	 	Cash Recoveries:	 	 	 	 
	3
	 	Sale Date	 	 	20100920	 
	4
	 	Gross Sale Proceeds	 	 	205000	 
	16
	 	Other credits, if any (itemize)	 	 	0	 
	 
	 	Total Cash Recovery
	 	 	205000	 
	 
	 	 	 	 	 	 
	5
	 	Loss Amount	 	 	57500	 





Note: If the calculated Loss Amount is negative, meaning loss event
proceeds are greater than the gross balance recoverable by the Assuming
Institution, the claim is considered a recovery and reduces the total
reported loss claim amount prior to applying the Applicable Percentage. If
the total amount of the Certificate loss claim is negative, the payment
amount due the FDIC is calculated by applying the Applicable Percentage.




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-69









 






Notes to Exhibits 2e (Loan Sale)





	1.	 	The data shown are for illustrative purposes.
	 
	2.	 	The Covered Loss is the difference between the outstanding loan balance and the gross sales
proceeds. There are three methods of calculation for Loan Sale Loss, depending upon the
circumstances:






	 	a.	 	Use Exhibit 2e(1) for loans written down to book value prior to bank
failure (based on the loan balance specified on Schedule 4.15A) less any
post-closing principal payments.
	 
	 	b.	 	If a Restructuring Loss was submitted prior to the loan sale, use Exhibit
2e(3). This version uses the Net Present Value (NPV) of the modified loan as the
starting point for the Covered Loss less post modification principal payments.
	 
	 	c.	 	Otherwise, use Exhibit 2e(2). The unpaid balance of the loan as of the
last payment date is the starting point for this Loan Sale Loss calculation.






	3.	 	All loan sales require FDIC approval.





			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-70









 






EXHIBIT 2.5




TRUE-UP


Pursuant to Section 2.5(a) of this Agreement, the following calculation applies to determine any
payment due by the Assuming Institution to the Receiver on the True-Up Date. All capitalized terms
used in this Exhibit 2.5 have the meanings defined or referenced in Article 8 of this
Agreement.



X = A-(B+C+D)




              2



Where:



X = the amount payable to the Receiver pursuant to Section 2.5(a)



A = 20% of the Intrinsic Loss Estimate



B = 20% of the Net Loss Amount



C = 25% of the Asset discount bid, expressed in dollars, of total Shared-Loss Loans on Schedules
4.15A and 4.15B as of the Bank Closing Date



D = 3.5% of total Shared-Loss Loans on Schedules 4.15A and 4.15B as of the Bank
Closing Date




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-71









 






EXHIBIT 3




PORTFOLIO PERFORMANCE AND SUMMARY SCHEDULE



SHARED-LOSS LOANS

PORTFOLIO PERFORMANCE AND SUMMARY SCHEDULE




	 	 	 

	MONTH ENDED:

	 	[input report month]






 POOL SUMMARY




	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Loans at Sale Date
	 	# xx	 	$ xx
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Loans as of this month-end
	 	xx	 	xx
	 
	 	 	 	 	 	 





Percent of Total




	 	 	 	 	 	 	 	 	 
	PORTFOLIO PERFORMANCE STATUS	 	#	 	$	 	#	 
	 
	 	 	 	 	 	 	 	 





Current

30 — 59 days past due

60 — 89 days past due

90 — 119 days past due

120 and over days past due

In foreclosure

ORE

Total




Memo Item:

Loans in process of restructuring — total

Loans in bankruptcy




Loans in process of restructuring by delinquency status

Current

30 — 59 days past due

60 — 89 days past due

90 — 119 days past due

120 and over days past due In foreclosure

     Total




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-72









 






List of Loans Paid Off During Month




	 	 	 	 	 
	 	 	Principal	 
	Loan #	 	Balance	 
	 
	 	 	 	 





List of Loans Sold During Month




	 	 	 	 	 
	 	 	Principal	 
	Loan #	 	Balance	 
	 
	 	 	 	 





			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






SF-73









 





EXHIBIT 4




WIRE TRANSFER INSTRUCTIONS



	 	 	 	 	 	 	 

	BANK RECEIVING WIRE

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	9 DIGIT ABA ROUTING NUMBER

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	ACCOUNT NUMBER

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	NAME OF ACCOUNT

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	ATTENTION TO WHOM

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	PURPOSE OF WIRE

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	FDIC RECEIVER WIRING INSTRUCTIONS	 	 	 	 
	 
	 	 	 	 	 	 
	BANK RECEIVING WIRE

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	SHORT NAME

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	ADDRESS OF BANK RECEIVING WIRE

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	9 DIGIT ABA ROUTING NUMBER

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	ACCOUNT NUMBER

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	NAME OF ACCOUNT

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	ATTENTION TO WHOM

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	PURPOSE OF WIRE

	 	 	 	 

	 	 






			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 










SF-74









 








EXHIBIT 5




FDIC MORTGAGE LOAN MODIFICATION PROGRAM


Objective



The objective of this FDIC Mortgage Loan Modification Program (“Program”) is to modify the terms of
certain residential mortgage loans so as to improve affordability, increase the probability of
performance, allow borrowers to remain in their homes and increase the value of the loans to the
FDIC and assignees. The Program provides for the modification of Qualifying Loans (as defined
below) by reducing the borrower’s monthly housing debt to income ratio (“DTI Ratio”) to no more
than 31% at the time of the modification and eliminating adjustable interest rate and negative
amortization features.



Qualifying Loans



In order for a mortgage loan to be a Qualifying Loan it must meet all of the following criteria,
which must be confirmed by the lender:





	 	•	 	The collateral securing the mortgage loan is owner-occupied and the owner’s primary
residence; and
	 
	 	•	 	The mortgagee has a first priority lien on the collateral; and
	 
	 	•	 	Either the borrower is at least 60 days delinquent or a default is reasonably
foreseeable.




Modification Process



The lender shall undertake a review of its mortgage loan portfolio to identify Qualifying Loans.
For each Qualifying Loan, the lender shall determine the net present value (“NPV”) of the modified
loan and shall provide the methodology employed to determine the NPV, and a certification that the
lender’s model assumptions are documented and validated through periodic independent reviews. A
sound model validation process includes the lender’s modeling assumptions, consideration of
industry standards and results and the lender’s own portfolio experiences, other available models
or predictors, and any model validation requirements of the lender’s chartering authority.



If the NPV of a Qualifying Loan will exceed the value of the foreclosed collateral upon
disposition, then the Qualifying Loan shall be modified so as to reduce the borrower’s monthly DTI
Ratio to 31% at the time of the modification. To achieve this, the lender shall use a combination
of interest rate reduction, term extension and principal forbearance, as necessary.



The borrower’s monthly DTI Ratio shall be a percentage calculated by dividing borrower’s gross
monthly housing payment (including principal, interest, taxes and insurance, any homeowners’
association dues, i.e., PITIA) by the borrower’s monthly income. For the purpose of the foregoing
calculation:




     (1) the borrower’s monthly income shall be defined as the borrower’s (along with any
co-borrowers’) income amount before any payroll deductions and includes wages and salaries,



			
	 	 	 
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	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






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overtime pay, commissions, fees, tips, bonuses, housing allowances, other compensation for
personal services, Social Security payments, including Social Security received by adults on behalf
of minors or by minors intended for their own support, and monthly income from annuities, insurance
policies, retirement funds, pensions, disability or death benefits, unemployment benefits, rental
income and other income. All income information must be documented and verified. If the borrower
receives public assistance or collects unemployment, the Assuming Institution must determine
whether the public assistance or unemployment income will continue for at least nine (9) months.




     (2) the borrower’s monthly housing payment shall be the amount required to pay monthly
principal and interest plus one-twelfth of the then current annual amount required to pay real
property taxes and homeowner’s insurance with respect to the collateral.


In order to calculate the monthly principal payment, the lender shall capitalize to the outstanding
principal balance of the Qualifying Loan the amount of all delinquent interest, delinquent taxes,
past due insurance premiums, third party fees and (without duplication) escrow advances (such
amount, the “Capitalized Balance”).



In order to achieve the goal of reducing the DTI Ratio to 31%, the lender shall take the following
steps in the following order of priority with respect to each Qualifying Loan:





	 	1.	 	Reduce the interest rate to the then current Primary Mortgage Market
Survey® (PMMS) for 30-year fixed-rate loans, and adjust the term to 30
years.
	 
	 	2.	 	If the DTI Ratio is still in excess of 31%, reduce the interest rate further,
but no lower than 3%, until the DTI ratio of 31% is achieved, for a period of five
(5) years.
	 
	 	3.	 	If the DTI Ratio is still in excess of 31% after adjusting the interest rate
to 3%, extend the remaining term of the loan by 10 years.
	 
	 	4.	 	If the DTI Ratio is still in excess of 31%, calculate a new monthly payment
(the “Adjusted Payment Amount”) that will result in the borrower’s monthly DTI Ratio
not exceeding 31%. After calculating the Adjusted Payment Amount, the lender shall
bifurcate the Capitalized Balance into two portions — the amortizing portion and the
non-amortizing portion. The amortizing portion of the Capitalized Balance shall be
the mortgage amount that will fully amortize over a 40-year term at an annual
interest rate of 3% and monthly payments equal to the Adjusted Payment Amount. The
non-amortizing portion of the Capitalized Balance shall be the difference between the
Capitalized Balance and the amortizing portion of the Capitalized Balance. If the
amortizing portion of the Capitalized Balance is less than 75% of the current
estimated value of the collateral, then the lender may choose not to restructure the
loan. If the lender chooses to restructure the loan, then the lender shall forbear on
collecting the non-amortizing portion of the Capitalized Balance, and such amount
shall be due and payable only upon the earlier of (i) maturity of the modified loan,
(ii) a sale of the property or (iii) a pay-off or refinancing of the loan. No
interest shall be charged on the non-amortizing portion of the Capitalized Balance,
but repayment shall be secured by a first lien on the collateral.





			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 











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At the end of the five (5) year period in paragraph 2, above, the interest rate on the modified
loan shall adjust to the Primary Mortgage Market Survey® (PMMS) for 30-year fixed-rate
loans as of the date of the loan modification, but subject to an annual adjustment cap of one
percent (1%) per year. At that time, the monthly amount due by the borrower will also adjust to
amortize fully the remaining Capitalized Balance (or, in any case in which the Capitalized Balance
was bifurcated, the amortizing portion thereof) over the remaining term of the modified loan.



Special Note:



The NPV calculation used to determine whether a loan should be modified based on the modification
process above is distinct and different from the net present value calculation used to determine
the Covered Loss if the loan is modified. Please refer only to the net present value calculation
described in this exhibit for the modification process, with its separate assumptions, when
determining whether to provide a modification to a borrower. Separate assumptions may include,
without limitation, the Assuming Institution’s determination of a probability of default without
modification, a probability of default with modification, home price forecasts, prepayment speeds,
and event timing. These assumptions are applied to different projected cash flows over the term of
the loan, such as the projected cash flow of the loan performing or defaulting without modification
and the projected cash flow of the loan performing or defaulting with modification.



By contrast, the net present value for determining the Covered Loss is based on a 10 year period.
While the assumptions in the net present value calculation used in the modification process may
change, the net present value calculation for determining the Covered Loss remains constant.



Related Junior Lien Mortgage Loans



In cases where the lender holds a junior lien mortgage loan that is collateralized by the same
property that collateralizes a Qualifying Loan that is modified as described above, the junior lien
mortgage loan shall also be modified to enhance overall affordability to the borrower. At a
minimum, the lender shall reduce the interest rate on the junior lien mortgage loan to no more than
2% per annum. Further modifications may be made at the lender’s discretion as needed to support
affordability and performance of the modified first lien Qualifying Loan.




			
	 	 	 
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	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
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EXHIBIT 5.3(a)




SINGLE FAMILY SHARED-LOSS LOANS



Single Family Active Loan Listing



1. Property type

2. Lien Status

3. Original loan amount

4. Documentation

5. Original Credit Score

6. Original LTV

7. Original combined LTV

8. Original front-end DTI

9. Original back-end DTI

10. Negative Amortization cap

11. Property city

12. Property state

13. Property street address

14. Property zip

15. Maturity date

16. MI Coverage

17. Occupancy

18. Interest rate type

19. Product Type

20. Loan amortization type

21. Lookback

22. Interest Rate Spread

23. Interest rate index

24. Lifetime Interest Rate Cap

25. Interest rate floor

26. First interest cap

27. Periodic interest rate cap

28. Periodic interest floor

29. Payment Adjustment Cap

30. Outstanding Unpaid Principal Balance

31. Interest rate

32. Interest Paid to Date

33. Next payment due date

34. Scheduled Principal and Interest Amount

35. Escrow Taxes and Insurance Payment

36. Escrow balance

37. Next interest rate reset date

38. Next payment reset date

39. Rate reset period

40. Payment reset period

41. Payment History

42. Exceptional Loan Status

43. Valuation date




			
	 	 	 
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	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
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44. Valuation amount

45. Valuation Type

46. Household income

47. Current Credit Score

48. HELOC Maximum Draw Amount

49. HELOC Draw Period End Date

50. Superior Lien Balance

51. FDIC Asset ID

52. Origination Date

53. Last Renewal Date

54. Number of Renewals

55. Guarantor

56. Nonaccrual

57. Last Payment Date

58. LSBO

59. Undisbursed Commitment availability

60. Credit Line Status

61. HELOC Amount Advanced




Non-Single Family Active Loan Listing




1. Borrower ID

2. Short Name

3. Long Name

4. Address line 1

5. Address line 2

6. Address line 3

7. City

8. State

9. Zip Code

10. Taxpayer ID

11. Business Type

12. Relationship Name

13. Relationship ID

14. Credit Score

15. Stock symbol

16. Out of Territory

17. Insiders and Employees

18. Lending Division

19. Lending Officer

20. Branch ID

21. Note number

22. Balance outstanding

23. Undisbursed Commitment availability

24. Original Amount

25. Origination Date

26. Last renewal date

27. Maturity Date




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 











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28. Last extension date

29. Number of renewals

30. Number of extensions

31. Note purpose

32. Collateral Code

33. Interest Rate

34. Interest Rate Index

35. Interest Rate Spread

36. Interest earned not collected

37. Borrower’s internal rating

38. Borrower’s rating date

39. Note risk rating

40. Note balance rated pass

41. Note balance rated special mention

42. Note balance rated substandard

43. Note balance rated doubtful

44. Charge off amount

45. Specific Reserve

46. Shared National Credit

47. Guarantor

48. Days Past Due

49. Interest paid-to date

50. Nonaccrual

51. Times Past Due 30 59

52. Times Past Due 60 89

53. Times Past Due 90+

54. Loan Type

55. FFIEC Code

56. Participation indicator

57. Amount Sold

58. Participation Sold Original Amount

59. Collateral description

60. Loan for sale

61. Next due date

62. Payment frequency

63. Variable Rate

64. Periodic Interest Rate Cap

65. Interest Rate Reset Interval

66. Lifetime Interest Rate Cap

67. Troubled Debt Restructured

68. Amortizing/Non-amortizing status

69. Payment amount

70. Last Payment Date

71. Capitalized Interest

72. Number of payments in contract

73. Collateral Value

74. Collateral Valuation/Appraisal Date




			
	 	 	 
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	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






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75. Lien Status

76. Block Numbering Area or Census Tract

77. MSA Code

78. Dealer Code

79. Dealer Reserve Balance

80. Escrow Balance

81. Co-maker/Joint-maker

82. Late Charges

83. FDIC Asset ID

84. FDIC Asset Type

85. Share-Loss Quarter

86. Collateral Property street address

87. Collateral Property city

88. Collateral Property state

89. Collateral Property zip

90. Payment reset period

91. First payment date

92. Interest rate floor

93. First interest cap

94. Original LTV

95. Original combined LTV

96. Next interest rate reset date

97. Exceptional Loan Status

98. Valuation Type

99. Superior Loan Balance

100. Modification

101. Other Adjustments

102. Assumed Commitment Advances

103. Permitted Advances

104. Capital Expenditures

105. Interest Reserve

106. Net Operating Income




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
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SCHEDULE 4.15A




LOANS SUBJECT TO LOSS SHARING UNDER THE

SINGLE FAMILY SHARED-LOSS AGREEMENT



			
	 	 	 
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	Version 3.01 — Single Family Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






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EXHIBIT 4.15B




COMMERCIAL SHARED-LOSS AGREEMENT



 




			
	 	 	 
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	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Commercial Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 




















 





EXHIBIT 4.15B 

COMMERCIAL SHARED-LOSS AGREEMENT




TABLE OF CONTENTS






	 	 	 	 	 

	ARTICLE 1. GENERAL
	 	 	1	 
	 
	 	 	 	 
	1.1 Purpose
	 	 	1	 
	1.2 Relationship with Purchase and Assumption Agreement
	 	 	1	 
	1.3 Defined Terms
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2. SHARED-LOSS ARRANGEMENT
	 	 	1	 
	 
	 	 	 	 
	2.1 Accounting for and Management of Shared-Loss Assets
	 	 	1	 
	2.2 Payments with Respect to Shared-Loss Assets
	 	 	2	 
	2.3 Payments Applicable to Shared-Loss Quarters
	 	 	2	 
	2.4 Payments Applicable to Recovery Quarters
	 	 	3	 
	2.5 True-Up Payment and Calculation
	 	 	3	 
	2.6 Limitation on Payments
	 	 	4	 
	2.7 Expenses
	 	 	5	 
	2.8 Permitted Advances and Amendments
	 	 	8	 
	2.9 Recovery
	 	 	9	 
	2.10 Treatment as a Shared-Loss Asset
	 	 	12	 
	2.11 Receiver’s Option to Purchase
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 3. ADMINISTRATION OF SHARED-LOSS ASSETS	 	 	14	 
	 
	 	 	 	 
	3.1 Management Standards Regarding Administration
	 	 	14	 
	3.2 Assuming Institution’s Responsibilities and Duties
	 	 	14	 
	3.3 Third Party Servicers and Affiliates
	 	 	15	 
	3.4 Utilization by the Assuming Institution of Special
Receivership Powers
	 	 	16	 
	3.5 Tax Ruling
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 4 SALE OF CERTAIN SHARED-LOSS ASSETS	 	 	17	 
	 
	 	 	 	 
	4.1 Sales of Shared-Loss Assets
	 	 	17	 
	4.2 Calculation of Gain or Loss on Sale
	 	 	17	 
	4.3 Sale of ORE, Additional ORE or Subsidiary ORE
	 	 	18	 
	 
	 	 	 	 
	ARTICLE 5. CERTIFICATES, REPORTS AND RECORDS	 	 	18	 
	 
	 	 	 	 
	5.1 Reporting Obligations of the Assuming Institution
	 	 	18	 
	5.2 Quarterly Certificates
	 	 	18	 
	5.3 Notification of Certain Transactions
	 	 	19	 
	5.4 Notification of Related Loans
	 	 	20	 
	5.5 Auditor’s Report; Right to Audit
	 	 	20	 









	 	 	 	 	 
	5.6 Accounting Principles
	 	 	21	 
	5.7 Records and Reports
	 	 	21	 
	 
	 	 	 	 
	ARTICLE 6. MISCELLANEOUS
	 	 	22	 
	 
	 	 	 	 
	6.1 Expenses
	 	 	22	 
	6.2 Successors and Assigns
	 	 	22	 
	6.3 Waiver of Jury Trial
	 	 	23	 
	6.4 No Third Party Beneficiary
	 	 	23	 
	6.5 Consent; Determination of Discretion
	 	 	23	 
	6.6 Rights Cumulative
	 	 	23	 
	6.7 References
	 	 	23	 
	6.8 Notice
	 	 	23	 
	 
	 	 	 	 
	ARTICLE 7. DISPUTE RESOLUTION
	 	 	24	 
	 
	 	 	 	 
	7.1 Methods of Resolution
	 	 	24	 
	7.2 Informal Resolution
	 	 	24	 
	7.3 Resolution by Non-Binding Dispute Resolution Proceeding
	 	 	24	 
	7.4 Confidentiality of Compromise Negotiations
	 	 	25	 
	7.5 Payment Resulting from Compromise Negotiations
	 	 	25	 
	7.6 Formal Resolution
	 	 	25	 
	7.7 Limitation on FDIC Party
	 	 	26	 
	7.8 Effectiveness of Agreement Pending Dispute
	 	 	26	 
	7.9 Governing Rules and Law
	 	 	26	 
	7.10 Review Board Proceedings
	 	 	26	 
	7.11 Impartiality
	 	 	28	 
	7.12 Schedule
	 	 	28	 
	7.13 Written Award
	 	 	28	 
	7.14 Interest Rate on Award
	 	 	28	 
	7.15 Payments
	 	 	29	 
	7.16 Fees, Costs and Expenses
	 	 	29	 
	7.17 Binding and Conclusive Nature
	 	 	29	 
	7.18 No Precedent
	 	 	29	 
	7.19 Confidentiality; Proceedings, Information and Documents
	 	 	29	 
	7.20 Confidentiality of Arbitration Award
	 	 	30	 
	7.21 Extension of Time Periods
	 	 	30	 
	7.22 Venue
	 	 	30	 
	 
	 	 	 	 
	ARTICLE 8. DEFINITIONS
	 	 	30	 











	 	 	 	 	 

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	Version 3.01 —  Commercial Shared-Loss Agreement

	 	 	 	BROOKSVILLE, FLORIDA
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EXHIBITS




	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	True-Up
	 	Exhibit 2.5	 	 	38	 
	Exclusion from Reimbursable Expenses
	 	Exhibit 2.7	 	 	39	 
	Interest Income as a Recovery
	 	Exhibit 2.9	 	 	40	 
	Form of Quarterly Certificates
	 	Exhibit 5.2	 	 	41	 






SCHEDULES




	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	Loans Subject to Loss-Sharing under the Commercial Shared-Loss Agreement
	 	Schedule 4.15B	 	 	45	 
	Shared-Loss Subsidiaries
	 	Schedule 4.15D	 	 	46	 






			
	 	 	 
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	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Commercial Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 










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EXHIBIT 4.15B




COMMERCIAL SHARED-LOSS AGREEMENT


A. This Commercial Shared-Loss Agreement and the Exhibits attached hereto and incorporated herein
by this reference (collectively, the “Agreement”) is made pursuant to and as of the date of that
certain Purchase and Assumption Agreement (the “Purchase and Assumption Agreement”) among the
Receiver, the Assuming Institution and the Corporation, to which this Agreement is attached.



B. This Agreement shall apply only if the Assuming Institution has purchased Shared-Loss Assets (as
defined herein) pursuant to the Purchase and Assumption Agreement. Subject to the provisions of
this Agreement, it is the intention of the parties that the Receiver and the Assuming Institution
shall share certain losses, expenses and Recoveries (as defined herein).




A G R E E M E N T



ARTICLE I.        GENERAL.




     1.1. Purpose. The purpose of this Agreement is to set forth requirements regarding, among other things,
management of Shared-Loss Assets by the Assuming Institution and procedures for notices, consents,
reporting and payments. In administering the Shared-Loss Assets, the Assuming Institution shall at
all times comply with the Management Standards set forth in Article 3.



     1.2. Relationship with Purchase and Assumption Agreement. To the extent that any inconsistencies may arise between the terms of the
Purchase and
Assumption Agreement and this Agreement with respect to the subject matter of this Agreement, the
terms of this Agreement shall control.



     1.3. Defined Terms. The capitalized terms used in this Agreement have the meanings defined or referenced in
Article 8.



ARTICLE II.     SHARED-LOSS ARRANGEMENT.




     2.1. Accounting for and Management of Shared-Loss Assets.



          (a) Initial Values. The Assuming Institution shall record the Shared-Loss Assets on
its Accounting Records at their respective Book Values as of the Commencement Date.




          (b) Adjustments. After the Commencement Date, the Assuming Institution shall adjust
the Book Values of the Shared-Loss Assets in accordance with this Agreement, the Examination
Criteria and Article VIII of the Purchase and Assumption Agreement.




          (c) Management. The Assuming Institution shall manage and account for the Shared-Loss
Assets in accordance with this Agreement.




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
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	Version 3.01 — Commercial Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






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     2.2. Payments with Respect to Shared-Loss Assets.



          (a) Calculation and Method of Payments. Subject to the conditions of this Agreement,
the parties shall make the payments set forth in this Article 2. All payments made by a party under
this Agreement shall be made by wire transfer.




          (b) Timing of Payments.





          (i) Payments by the Receiver under this Article 2 shall be made within thirty (30) days
following the date on which the Receiver receives the Quarterly Certificate with respect to
each Shared-Loss Quarter or Recovery Quarter, provided that the Quarterly Certificate is
complete, accurate, timely and in compliance with the requirements of this Agreement.




          (ii) Payments by the Assuming Institution under this Article 2 shall be made on or
before the due date for the Quarterly Certificate for each Shared-Loss Quarter or Recovery
Quarter, as applicable.



          (c) Source of Receiver’s Funds. Payment obligations of the Receiver with respect to
this Agreement shall be treated as administrative expenses of the Receiver pursuant to 12 U.S.C §
1821(d)(11). To the extent that the Receiver requires funds to make payments relating to
Shared-Loss Assets pursuant to this Agreement, the Receiver shall request funds under the Master
Loan and Security Agreement between the FDIC in its corporate capacity and the FDIC in its
receivership capacity, with respect to any receivership, dated as of May 21, 2009, as amended.




          (d) Shared-Loss Subsidiaries. Covered Losses with respect to Subsidiary Shared-Loss
Loans and Subsidiary ORE shall not exceed the Applicable Percentage of the Investment in Subsidiary
of each Shared-Loss Subsidiary, if any, identified on
Schedule 4.15D as the owner of each
such Subsidiary Shared-Loss Loans or Subsidiary ORE.




     2.3. Payments Applicable to Shared-Loss Quarters. For each Shared-Loss Quarter, pursuant to the applicable Quarterly Certificate, one of
the payments described at (a) or (b) below shall be made, as appropriate, with respect to
Shared-Loss Assets:



          (a) Covered Loss Payments by the Receiver. The Receiver shall pay to the Assuming
Institution the “Covered Loss” which is an amount equal to:





          (i) the sum of the Applicable Percentage of:




          (A) charge-Offs; plus



			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
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	Version 3.01 — Commercial Shared-Loss Agreement
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          (B) Reimbursable Expenses attributable to Shared-Loss Assets; minus




          (C) Recoveries; and




          (ii) fifty per cent (50%) of collections on Fully Charged-Off Assets less fifty per
cent (50%) of any expenses attributable to such Fully Charged-Off Assets, provided and only
to the extent that such expenses would be Reimbursable Expenses if such Fully Charged-Off
Assets were Shared-Loss Assets.



          (b) Covered Gain Payments by the Assuming Institution. If the result of the
calculation described in Section 2.3(a) is a negative amount (the “Covered Gain”), the Assuming
Institution shall pay such amount to the Receiver.




     2.4. Payments Applicable to Recovery Quarters. For each Recovery Quarter, pursuant to
the applicable Quarterly Certificate, the payments described at (a) and (b) below shall be made, as
appropriate, with respect to Shared-Loss Assets:



          (a) Payments by the Receiver. The Receiver shall pay to the Assuming Institution an
amount equal to the Applicable Percentage of any Reimbursable Expenses, for the period through and
including the last Shared-Loss Quarter, which are specified on the Quarterly Certificate for the
first Recovery Quarter.




          (b) Payments by the Assuming Institution. The Assuming Institution shall pay to the
Receiver:





          (i) an amount equal to the Applicable Percentage of Net Recoveries for each Recovery
Quarter; plus




          (ii) an amount equal to fifty per cent (50%) of any collections on Fully Charged-Off
Assets minus fifty per cent (50%) of any Reimbursable Expenses attributable to such
Fully Charged-Off Assets.



          (c) Net Recoveries. “Net Recoveries” means gross Recoveries during any Calendar
Quarter minus Reimbursable Expenses during such Calendar Quarter.




          (d) Negative Net Recoveries. If Net Recoveries received in a Recovery Quarter is a
negative amount, then the amount of such Net Recoveries shall be offset against the amount of gross
Recoveries received in the following Recovery Quarter to determine the amount of Net Recoveries for
that following Recovery Quarter. If, after applying the preceding provisions, Net Recoveries
received in any subsequent Recovery Quarter is also a negative amount, the provisions of this
Section 2.4(d) shall continue to apply to determine the amount of Net Recoveries in each such
subsequent Recovery Quarter.




     2.5. True-Up Payment and Calculation.



          (a) Payment Obligation of the Assuming Institution. If the Assuming Institution’s Bid
Amount, as set forth in Article VII of the Purchase and Assumption Agreement,




			
	 	 	 
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includes an “Asset
discount bid” which represents five percent (5%) or more of the purchase price of the Assets
determined in accordance with Article III of the Purchase and Assumption Agreement, the Assuming
Institution shall pay to the Receiver on the True-Up Date any positive amount resulting from the
calculation set forth in Exhibit 2.5.




          (b) Reporting of Calculation. On or before the True-Up Date the Assuming Institution
shall deliver to the Receiver a schedule, signed by the chief executive officer or the chief
financial officer of the Assuming Institution, setting forth in reasonable detail the calculation
described in Exhibit 2.5, including the calculation of the Net Loss Amount.




     2.6. Limitation on Payments.



          (a) Failure to Administer. If the Assuming Institution fails to administer any
Shared-Loss Asset in accordance with the provisions of Article 3, the Receiver may determine that
such asset will not be treated as a Shared-Loss Asset pursuant to this Agreement.




          (b) Receiver’s Right to Withhold Payment. Notwithstanding any other provision of this
Article 2, the Receiver may withhold all or any portion of a payment to the Assuming Institution of
the amount requested in a Quarterly Certificate if the Receiver determines that:





          (i) the Quarterly Certificate is incomplete, inaccurate or untimely;




          (ii) based upon the Examination Criteria, a Charge-Off of a Shared-Loss Asset should
not have been effected by the Assuming Institution;




          (iii) there is a reasonable basis under the terms of this Agreement for denying the
eligibility of amounts included in a Quarterly Certificate for which reimbursement or
payment is sought;




          (iv) with respect to a particular Shared-Loss Asset, the Assuming Institution has not
complied or is not complying with the Management Standards;




          (v) the Assuming Institution has failed to comply with the requirements set forth in
Section 5.5 including, but not limited to permitting the Receiver,
its agents, contractors and/or employees to determine compliance with this Agreement
pursuant to Section 5.5(c); or




          (vi) a retroactive accounting adjustment is to be made by the Receiver pursuant to
Section 5.5(c).



          (c) Opportunity to Cure; Payment.




          (i) In the event that a determination is made to withhold an amount pursuant to Section
2.6(b), the Receiver shall provide the Assuming Institution with notice detailing the
grounds for withholding such amount and the Assuming Institution shall cure any deficiency
within a reasonable period of time.



			
	 	 	 
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	 	CORTEZ COMMUNITY BANK
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          (ii) If the Assuming Institution demonstrates to the satisfaction of the Receiver that
the grounds for withholding a payment, or any part thereof, no longer exist or have been
cured, the Receiver shall pay the Assuming Institution the amount which the Receiver
determines is eligible for payment within thirty (30) days following the date of such
determination.




          (iii) If the Assuming Institution does not cure any such deficiency within a reasonable
period of time, the Receiver may withhold payment as described in Section 2.6 (b) with
respect to the affected Shared-Loss Asset(s), but such withholding will not affect the
Receiver’s obligation to make any other payment properly due pursuant to this Agreement.



          (d) Adjustments. In the event that the Receiver withholds payment with respect to a
Charge-Off of a Shared-Loss Asset or determines pursuant to Section 2.6(b) that a payment was
improperly made, the Assuming Institution and the Receiver shall, upon final resolution of such
issue, make such accounting adjustments and payments as may be necessary to give retroactive effect
to such actions.




          (e) Interest on Payments. Any payment by the Receiver pursuant to Section 2.6(d)
shall be made together with interest on the amount thereof that accrues with effect from five (5)
Business Days after the date on which payment was agreed or determined to be due until such amount
is paid. The annual interest rate shall be determined by the Receiver based on the coupon
equivalent of the three (3)-month U.S. Treasury Bill Rate in effect as of the first Business Day of
each Calendar Quarter during which such interest accrues as reported in the Federal Reserve Board
Statistical Release for Selected Interest Rates H.15 opposite the caption “Treasury bills
(secondary market), 3-Month” or, if not so reported for such day, for the next preceding Business
Day for which such rate was so reported.




          (f) Determination of Disputes. Any dispute arising under this Section 2.6 shall be
resolved pursuant to the dispute resolution procedures of Article 7.




     2.7. Expenses.



          (a) Reimbursable Expenses. Reimbursable Expenses incurred by the Assuming Institution
for a product, service or activity may be reimbursable or recoverable by the
Assuming Institution and may be included for the purpose of calculating payments relating to
Shared-Loss Assets. “Reimbursable Expenses” means
actual, reasonable and necessary out-of-pocket
expenses incurred in the usual, prudent and lawful management of a Shared-Loss Asset which are paid
to third parties by or on behalf of the Assuming Institution or its Affiliates for a Shared-Loss
Quarter or a Recovery Quarter, as applicable, in respect of the following expenditure:





          (i) expenses to recover amounts owed with respect to:




          (A) Shared-Loss Assets as to which a Charge-Off was effected prior to the end
of the final Shared-Loss Quarter as reflected on the Accounting Records of the
Assuming Institution; and



			
	 	 	 
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          (B) Failed Bank Charge-Offs;




          (ii) expenses to recover amounts described in paragraph (i) which relate to an
Environmental Assessment and any environmental conditions relating to the Shared-Loss
Assets, including remediation expenses for any pollutant or contaminant and fees for
consultants retained to assess the presence, storage or release of any hazardous or toxic
substance or any pollutant or contaminant relating to the collateral securing a Shared-Loss
Asset that has been fully or partially charged-off, in each case up to a maximum of $200,000
per Shared-Loss Asset, except as provided in the last paragraph of this Section 2.7(a);




          (iii) ORE Expenses to the extent that such amount exceeds any ORE Income;




          (iv) reasonable and necessary litigation expenses with respect to maximizing Recoveries
of Shared-Loss Assets but excluding amounts, if any, incurred with respect to any alleged
improper conduct of the Assuming Institution;




          (v) fees incurred for attorneys, appraisers and other independent professional
consultants engaged as necessary to assist in collections of Shared-Loss Assets, up to a
maximum of $100,000 per Shared-Loss Asset, except as provided in the last paragraph of this
Section 2.7(a);




          (vi) a proportion of expenses for collections by or on behalf of the Assuming
Institution on an Asset other than a Shared-Loss Asset with a Book Value greater than zero
which are applied to both that Book Value and to a Failed Bank Charge-Off, equal to the
collections on such Asset which are applied to the Failed Bank Charge-Off divided by the
total collections on such Asset; and




          (vii) with respect to the final Recovery Quarter, Reimbursable Expenses may include (A)
a Net ORE Loss Carryforward if applicable and to the extent set forth in Section 2.9(g)(iii)
and (B) any ORE Expenses to the extent that such amount exceeds ORE Income.



          If the Assuming Institution estimates in good faith that required expenditures for the
purposes described (A) in paragraph (ii) may exceed $200,000 or (B) in paragraph (v) may exceed
$100,000 with respect to a particular Shared-Loss Asset, and provides the Receiver with advance
notice and details thereof prior to incurring any such expenditure, the Receiver may, in its sole
and absolute discretion, consent to such greater amount being deemed a Reimbursable Expense for
purposes of this Agreement.




          (b) Exclusions. Reimbursable Expenses do not include the following:





          (i) Capitalized Expenditures;




          (ii) amounts paid to Affiliates of the Assuming Institution;



			
	 	 	 
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          (iii) with respect to Shared-Loss Assets with prior Failed Bank Charge-Offs or
Charge-Offs or write-downs for which the Assuming Institution is recognizing interest income
as described in Section 2.9(d), the portion of the expense attributable to that Shared-Loss
Loan which is derived by applying the calculation set forth in Exhibit 2.7;




          (iv) Federal, State or local income taxes and expenses related thereto;




          (v) salaries, other compensation and related benefits of employees of the Assuming
Institution and its Affiliates including, without limitation, bonus, commission or severance
arrangements, training, payroll taxes, dues and travel- or relocation-related expenses;




          (vi) the cost of space occupied by the Assuming Institution or its Affiliates and their
respective staff and the rental and maintenance of furniture and equipment;




          (vii) expenses for data processing, including the purchase or enhancement of data
processing systems;




          (viii) except as expressly permitted in Sections 2.7(a)(ii) and 2.7(a)(v), fees for
accounting and other independent professional consultants;




          (ix) allocated portions of any other overhead or general and administrative expense for
services of a type which the Assuming Institution does not normally perform internally;




          (x) expenses not incurred in good faith and/or with the same degree of care that the
Assuming Institution normally would exercise in the collection of troubled assets in which
it alone had an interest;




          (xi) servicing fees payable to a third party (including a Third Party Servicer which is
an Affiliate of the Assuming Institution), if the Assuming Institution would have provided
those services had the relevant Shared-Loss Assets not been subject to this Agreement;




          (xii) in a Recovery Quarter, ORE Expenses to the extent that such amount exceeds ORE
Income; and




          (xiii) expenses which exceed the amount of Recoveries made in any Recovery Quarter.



          (c) Reimbursable Expenses Incurred in Shared-Loss Quarters. Reimbursable Expenses for
Shared-Loss Quarters shall be submitted to the Receiver in each Quarterly Certificate, and in any
event on or before the end of the first Recovery Quarter.




			
	 	 	 
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	Version 3.01 — Commercial Shared-Loss Agreement
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          (d) Reimbursable Expenses Incurred in Recovery Quarters. Reimbursable Expenses for
Recovery Quarters shall be submitted to the Receiver in the Quarterly Certificate for each Recovery
Quarter, and in any event on or before the Termination Date.




          (e) Notification of Certain Expenditures.





          (i) Under certain circumstances the Assuming Institution may determine that, in order
to maximize collection of a Shared-Loss Asset or an Asset on which a Failed Bank Charge-Off
has been effected, there is a substantial likelihood that funds will need to be expended
after the Bank Closing Date by or on behalf of the Assuming Institution to a third party for
a specified purpose, which do not otherwise constitute Reimbursable Expenses. If such
expenditure is estimated to exceed ten percent (10%) of the Book Value of such Shared-Loss
Asset or Asset, respectively, and that Shared-Loss Asset or Asset has a Legal Balance on the
Accounting Records of the Assuming Institution of $1,000,000 or more, then the Assuming
Institution shall promptly report such proposed expenditure to the Receiver, and may request
that such expenditure be treated as a Permitted Expense.




          (ii) Within thirty (30) days following receipt of a notice pursuant to Section
2.7(e)(i), the Receiver will advise the Assuming Institution whether the Receiver grants or
withholds its consent to the qualification of the proposed expenditures as a Reimbursable
Expense. If consent is withheld, the Assuming Institution shall not be required to make such
expenditures and otherwise shall continue to administer such Shared-Loss Asset in accordance
with the Management Standards.



     2.8. Permitted Advances and Amendments. Pursuant to this Agreement, certain advances in respect of a Shared-Loss Loan and certain
amendments in respect of a Shared-Loss Loan or a Shared-Loss Loan Commitment made by the Assuming
Institution may be permissible additions to the Book Value of the Shared-Loss Assets, and entitle
such Shared-Loss Assets to retain their status as such, if they satisfy certain criteria, as set
forth below:



          (a) Permitted Advance. A “Permitted Advance” is an advance on a Shared- Loss Loan
which is made by the Assuming Institution in good faith, justified by contemporaneous supporting
documentation in the Credit File, in accordance with the applicable requirements set forth in
Article 3 and with the then effective written internal credit policy guidelines of the Assuming
Institution and which meets the following criteria:





          (i) it is an advance made by the Assuming Institution, or a legally binding commitment
by the Assuming Institution to advance funds and, in either case, funds are advanced fully
within one (1) year from the Commencement Date; and




          (A) the sum of the following is less than 110% of the Book Value of such
Shared-Loss Loan after such advance has been made:




          (1) the Book Value of such Shared-Loss Loan; plus



			
	 	 	 
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          (2) the unfunded amount of the legally binding commitment
referred to at Section 2.8(a)(i) with respect to that
Shared-Loss Loan;




          (B) the Assuming Institution has not taken a Charge-Off with respect to that
Shared-Loss Loan; and




          (C) no Shared-Loss Loan Commitment exists for such Shared- Loss Loan; or




          (ii) it is an advance made by the Assuming Institution which the Assuming Institution
determines is necessary to preserve or secure the value of the collateral for a Shared-Loss
Loan. In making such determination, the Assuming Institution shall apply the same criteria
as it would if the Shared-Loss Assets were owned by the Assuming Institution or any of its
Affiliates, and subject to the limitation on expenses related to the remediation, presence,
storage or release of any hazardous or toxic substance, pollutant or contaminant as set
forth in Section 2.7(a)(ii).



          (b) Permitted Amendment. A “Permitted Amendment” is, with respect to any Shared-Loss
Loan Commitment or Shared-Loss Loan, any amendment, modification, renewal or extension thereof, or
any waiver of any term, right or remedy thereunder which is made by the Assuming Institution in
good faith, justified by contemporaneous supporting documentation in the Credit File, in accordance
with the applicable requirements set forth in Article 3 and with the then effective written
internal credit policy guidelines of the Assuming Institution. A Permitted Amendment must also
satisfy the following criteria:





          (i) the sum of the following is less than 110% of the Book Value of such Shared-Loss
Loan after such amendment or modification has been made:




          (A) the Book Value of such Shared-Loss Loan; plus




          (B) the unfunded amount of any applicable Shared-Loss Loan Commitment,
inclusive of amounts advanced pursuant to such amendment, modification, renewal or
extension; and




          (ii) with respect to a Shared-Loss Loan Commitment or Shared-Loss Loan which is not a
revolving line of credit, it does not increase the amount of principal (A) then remaining
available to be advanced by the Assuming Institution under the
Shared-Loss Loan Commitment or (B) then outstanding under the Shared-Loss Loan beyond
the limit provided in Section 2.8(b)(i); or




          (iii) with respect to a Shared-Loss Loan Commitment or Shared-Loss Loan which is a
revolving line of credit, it does not increase the maximum amount of principal authorized as
of the Bank Closing Date to be outstanding at any one time under the underlying revolving
line of credit relationship with the debtor beyond the limit provided in Section 2.8(b)(i)
(regardless of the extent to which such revolving line of credit may have been funded as of
the Bank Closing Date or may subsequently have been funded and/or repaid); and



			
	 	 	 
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          (iv) it does not extend the term of such Shared-Loss Loan Commitment or Shared-Loss
Loan beyond the end of the final Shared-Loss Quarter or, if later, beyond the term which
existed as of the Bank Closing Date.



     2.9. Recovery.



          (a) Calculation of a Recovery. A “Recovery” is the sum of the following amounts
(without duplication) for any period, subject to the limitations and exceptions set forth in
Section 2.9(b):





          (i) collections by or on behalf of the Assuming Institution on Charge-Offs of a
Shared-Loss Asset effected by the Assuming Institution prior to the end of the final
Shared-Loss Quarter;




          (ii) collections by or on behalf of the Assuming Institution on Failed Bank
Charge-Offs;




          (iii) collections by or on behalf of the Assuming Institution on any Asset on which a
Failed Bank Charge-Off has been effected, to the extent that such collections exceed the
Book Value of such Asset;




          (iv) ORE Income;




          (v) collections by or on behalf of the Assuming Institution of any Reimbursable
Expenses;




          (vi) any gain received on a sale or other disposition of a Shared-Loss Loan or
Shared-Loss Subsidiary by or on behalf of the Assuming Institution;




          (vii) the amount of any fee or other consideration received by or on behalf of the
Assuming Institution for any amendment, modification, renewal, extension, refinance,
restructure, commitment, sale or other similar action with respect to a Shared-Loss Loan as
to which there exists a Failed Bank Charge-Off or as to which a Charge-Off has been effected
by the Assuming Institution during or prior to such period, not exceeding the total of any
related Failed Bank Charge-Offs, Charge-Offs and Reimbursable Expenses made with respect to
the particular Shared-Loss Loan; and




          (viii) interest income, if any, pursuant to Section 2.9(d).



          (b) Limitations and Exceptions. In calculating a Recovery, the following shall not be
included:





          (i) amounts paid to the Assuming Institution by the Receiver pursuant to Article 2;




          (ii) amounts received by or on behalf of the Assuming Institution with respect to
Charge-Offs effected by the Assuming Institution after the final Shared-Loss Quarter;



			
	 	 	 
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          (iii) the amount of any gain with respect to Shared-Loss Loans, ORE, Additional ORE or
Subsidiary ORE included in a Recovery which exceeds the total amount of any Failed Bank
Charge-Offs, Charge-Offs and Reimbursable Expenses made with respect to the particular
Shared-Loss Asset; and




          (iv) after the final Shared-Loss Quarter, ORE Income except to the extent that
aggregate ORE Income exceeds ORE Expenses.



          (c) Order of Application. For the purpose of calculating Recoveries, the Assuming
Institution shall apply any collections received on an Asset not otherwise applied to reduce the
Book Value of such Asset, if applicable, in the following order:





          (i) to Charge-Offs and Failed Bank Charge-Offs;




          (ii) to Reimbursable Expenses;




          (iii) to interest income; and




          (iv) to other expenses incurred by the Assuming Institution which are not Reimbursable
Expenses.



          (d) Interest Income as a Recovery. In the event that (i) there is any amendment,
modification, renewal, extension, refinance, restructure, commitment, sale or other similar action
with respect to a Shared-Loss Loan as to which there exists a Failed Bank Charge-Off or as to which
a Charge-Off has been effected by the Assuming Institution during or prior to a Recovery Period and
(ii) as a result, the Assuming Institution recognizes interest income for financial accounting
purposes on that Shared-Loss Loan, then a Recovery shall also include the portion of such interest
income recognized by the Assuming Institution which is derived by applying the calculation set
forth in Exhibit 2.9, subject to the limitations set forth in Section 2.9(e).




          (e) Maximum Amount of Interest Income. The amount of any interest income included as
a Recovery with respect to a Shared-Loss Loan subject to Section 2.9(d) shall not exceed the total
of the following:





          (i) Failed Bank Charge-Offs;




          (ii) Charge-Offs effected by the Assuming Institution during or prior to the period in
which the amount of a Recovery is being determined; and




          (iii) Reimbursable Expenses paid to the Assuming Institution pursuant to this Agreement
during or prior to the period in which the amount of a Recovery is being determined, all
with respect to that particular Shared-Loss Loan.



          (f) Application of Collections. Any collections on a Shared-Loss Loan that are not
applied to reduce Book Value of principal or recognized as interest income shall be applied
pursuant to Section 2.9(c).




			
	 	 	 
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          (g) Treatment of Net ORE Loss Carryforward. To determine whether the Assuming
Institution is entitled to apply a Net ORE Loss Carryforward at the end of the final Recovery
Quarter, the Assuming Institution shall calculate and report the following information with respect
to Recovery Quarters:





          (i) For any Recovery Quarter other than the final Recovery Quarter, Net ORE Income is
calculated as the amount of ORE Income received during such Recovery Quarter less (A) ORE
Expenses paid to third parties during such Recovery Quarter and (B) if applicable, Net ORE
Loss Carryforward. Any positive Net ORE Income shall be reported as a Recovery on the
Quarterly Certificate for such Recovery Quarter.




          (ii) For the final Recovery Quarter, Net ORE Income is calculated as the amount of ORE
Income received during the final Recovery Quarter less ORE Expenses from the beginning of
the final Recovery Quarter up to the date the Assuming Institution is required to deliver
the Final Recovery Certificate pursuant to this Agreement.




          (iii) If there is a Net ORE Loss Carryforward at the end of the final Recovery Quarter,
an amount equal to the Net ORE Loss Carryforward up to but not exceeding the total Net ORE
Income reported as a Recovery on Quarterly Certificates for all Recovery Quarters may be
included as a Recovery Expense on the Final Recovery Certificate.



     2.10. Treatment as a Shared-Loss Asset.



          (a) Loss of Right to Receive Shared-Loss Asset Payments. The Assuming Institution
shall not be entitled to payments relating to a Shared-Loss Asset pursuant to Section 2.2 if the
Assuming Institution or any Affiliate of the Assuming Institution:





          (i) sells or otherwise transfers that Shared-Loss Asset or any interest therein
(whether with or without recourse) to any Person, other than in compliance with this
Agreement;




          (ii) makes any additional advance, commitment or increase in the amount of a commitment
with respect to that Shared-Loss Loan that does not constitute a
Permitted Advance or a Shared-Loss Loan Commitment Advance, in which case the entire
Shared-Loss Loan will not be entitled to such payments;




          (iii) makes any amendment, modification, renewal or extension of that Shared-Loss Loan
that does not constitute a Permitted Amendment;




          (iv) manages, administers or collects any Related Loan in a manner which would increase
the amount of any collections with respect to that Related Loan to the detriment of the
Shared-Loss Asset to which such loan is related; or



			
	 	 	 
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	 	CORTEZ COMMUNITY BANK
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          (v) fails to administer that Shared-Loss Asset pursuant to the Management Standards,
including, without limitation, consistent failure to provide complete, accurate and timely
certificates and reports pursuant to Article 5.



          (b) Effective Date of Loss of Shared-Loss Asset Treatment. If any of the actions
described in Section 2.10(a) occur with respect to a Shared-Loss Asset, the Receiver shall not be
obligated to make any payments to the Assuming Institution with respect to any affected Shared-Loss
Loan after the date of occurrence of such action. In the event that the Receiver withholds payment
pursuant to the foregoing provisions, the Assuming Institution and the Receiver shall make such
accounting adjustments and payments as may be necessary to give retroactive effect to such actions.




          (c) Treatment of Recoveries. Notwithstanding Sections 2.10(a) and (b), a Shared-Loss
Loan which has been the subject of Charge-Offs prior to the occurrence of any action described in
Section 2.10(a) shall be treated as a Shared-Loss Asset for the purpose of calculating Recoveries
on such Charge-Offs, provided that the amount of Recoveries shall be limited to the amount of such
Charge-Offs.




     2.11. Receiver’s Option to Purchase.



          (a) Exercise of Option to Purchase. At any time on or prior to the Termination Date,
the Receiver shall have the option, exercisable by notice to the Assuming Institution, to purchase
a Shared-Loss Asset or an Asset on which a Failed Bank Charge-Off has been effected which meets any
of the following criteria:





          (i) if the Shared-Loss Asset has been fully or partially charged-off or written down
and the Receiver determines that the Assuming Institution is not diligently pursuing
collection efforts with respect to such Shared-Loss Asset;




          (ii) if the Shared-Loss Asset is the subject of a request pursuant to Section 2.7(e),
notwithstanding any prior consent by the Receiver with respect to any requested
expenditures;




          (iii) if it is an Asset on which a Failed Bank Charge-Off has been effected; and




          (iv) if the Shared-Loss Asset is a Related Loan required to be included in a schedule
pursuant to Section 5.4.



          (b) Transfer by the Assuming Institution. Within ten (10) Business Days following the
date upon which the Assuming Institution receives notice pursuant to Section 2.11(a), the Assuming
Institution shall transfer to the Receiver such Shared-Loss Asset or Asset and all Credit Files and
Accounting Records relating thereto and shall take all such other actions as may be necessary and
appropriate to assign, transfer and convey such Shared-Loss Asset or Asset to the Receiver.




			
	 	 	 
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          (c) Payment by the Receiver. Within fifteen (15) Business Days after the date upon
which the Assuming Institution transfers the Shared-Loss Asset or Asset pursuant to Section
2.11(b), the Receiver shall pay to the Assuming Institution a purchase price equal to:





          (i) the principal amount of such Shared-Loss Asset, any fees or penalties due from an
Obligor and any Accrued Interest (subject to the limitations set forth at Section 2.11(d)),
as stated on the Accounting Records of the Assuming Institution, as of the date such price
is determined (in the case of a Shared-Loss Loan, regardless of the Legal Balance thereof)
plus all Reimbursable Expenses incurred up to and through the transfer date of such
Shared-Loss Asset pursuant to Section 2.11(b) which have not previously been paid to the
Assuming Institution; minus




          (ii) the Related Liability Amount applicable to any Related Liabilities related to such
Shared-Loss Asset or Asset.



          (d) Limitations on Payment by the Receiver. In the case of the purchase of a
Shared-Loss Loan:





          (i) the price paid pursuant to Section 2.11(c) shall not include any Accrued Interest
accruing during the ninety (90) day period prior to the purchase date pursuant to Section
2.11(b), except to the extent that such Accrued Interest is included in the Book Value of
such Shared-Loss Loan;




          (ii) the Receiver shall be entitled to any collections received by the Assuming
Institution after the purchase date, which shall be paid by the Assuming Institution
forthwith upon receipt and in any event no later than simultaneously with delivery of the
next Quarterly Certificate; and




          (iii) for the purposes of determining the amount of unpaid interest which accrued
during a given period with respect to a variable-rate Shared-Loss Loan, all collections of
interest shall be deemed to be applied to unpaid interest in the chronological order (oldest
first) in which such interest accrued.



          (e) Receiver’s Assumption of Related Liabilities. The Receiver shall assume all
Related Liabilities with respect to any Shared-Loss Asset or Asset repurchased pursuant to this
Section 2.11 with effect from the date of transfer of such Shared-Loss Asset or Asset.




ARTICLE III.        ADMINISTRATION OF SHARED-LOSS ASSETS. 




     3.1.  Management Standards Regarding Administration  . During the term of this Agreement the Assuming Institution shall manage, administer
and
collect all Shared-Loss Assets while owned by it or any of its Affiliates in accordance with the
rules, requirements and standards regarding management, administration and collection of
Shared-Loss Assets set forth in this Article 3 (the “Management Standards”). Failure to comply with
the Management Standards shall constitute a material breach of this Agreement. If the Receiver
determines in its sole and absolute discretion that the Assuming Institution is not in compliance
with the Management Standards, it may notify the Assuming Institution of the breach and may take
action pursuant to this Agreement including, without limitation, as provided in Sections 2.6(a) and
(b).



			
	 	 	 
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     3.2. Assuming Institution’s Responsibilities and Duties.



          (a) Covenants of the Assuming Institution. The Assuming Institution shall:





          (i) be responsible to the Receiver and the Corporation in the performance of this
Agreement, whether performed by the Assuming Institution, an Affiliate or a Third Party
Servicer;




          (ii) provide to the Receiver and the Corporation such certificates, notifications and
reports as the Receiver or the Corporation reasonably deems advisable, including but not
limited to the certificates, notifications and reports required by Article 5; and




          (iii) permit the Receiver and the Corporation to monitor the Assuming Institution’s
performance of its duties hereunder at all times.



          (b) Duties of the Assuming Institution with Respect to Shared-Loss Assets. In the
performance of duties in accordance with the Management Standards, the Assuming Institution shall
at all times exercise its best business judgment and shall:





          (i) manage, administer, collect and effect Charge-Offs and Recoveries with respect to
each Shared-Loss Asset in a manner consistent with the following:




          (A) usual and prudent business and banking practices; and




          (B) the Assuming Institution’s (or, if applicable, a Third Party Servicer’s)
practices and procedures including, without limitation, all applicable law, the
written internal credit policy guidelines of the Assuming Institution (or, if
applicable, of a Third Party Servicer) in effect from time to time, with respect to
the management, administration and collection of and taking of Charge-Offs and
write-downs with respect to loans, ORE and repossessed collateral that do not
constitute Shared-Loss Assets;




          (ii) use its best efforts to maximize collections with respect to, and manage and
administer, Shared-Loss Assets without favored treatment for any assets owned by the
Assuming Institution or any of its Affiliates that are not Shared-Loss Assets;




          (iii) adopt and implement accounting, reporting, record-keeping and similar systems
with respect to the Shared-Loss Assets, as provided in Sections 5.6 and 5.7;




          (iv) retain sufficient staff to perform its duties hereunder;




          (v) not manage, administer or collect a Related Loan in a manner which would have the
effect of increasing the amount of any collections with respect to the Related Loan to the
detriment of the Shared-Loss Asset to which such loan is related; and




			
	 	 	 
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          (vi) cause any of its Affiliates to which it transfers any Shared-Loss Assets and any
Third Party Servicer to act in accordance with the Management Standards.



     3.3. Third Party Servicers and Affiliates.



          (a) Appointment of Third Party Servicers.





          (i) With the prior consent of the Receiver, the Assuming Institution may perform any of
its obligations and/or exercise any of its rights under this Agreement through one or more
Third Party Servicers. The Assuming Institution shall notify the Receiver at least forty
(40) days prior to the proposed appointment of a Third Party Servicer. Such notice will
include information regarding the Third Party Servicer’s relevant experience,
qualifications, financial strength and any pending litigation in relation to servicing
activities. In the case of a Third Party Servicer that is an Affiliate of the Assuming
Institution, the notice shall include an express statement that the Third Party Servicer is
an Affiliate. The Receiver may object to the proposed appointment of a Third Party Servicer
by giving the Assuming Institution notice that it so objects within thirty (30) days
following the Receiver’s receipt of the notice of the proposed appointment. The appointment
of a Third Party Servicer by the Assuming Institution shall not release the Assuming
Institution from any obligation or liability hereunder.




          (ii) The Assuming Institution shall provide to the Receiver written notification
immediately following the execution of any contract pursuant to which a Third Party Servicer
or any third party (other than an Affiliate of the Assuming Institution) will manage,
administer or collect any of the Shared-Loss Assets.



          (b) Actions of and Expenses Incurred by Third Party Servicers. The Assuming
Institution shall ensure that the practices, procedures and guidelines of any Third Party Servicer
comply with the obligations of the Assuming Institution under this Agreement. The Assuming
Institution shall provide to the Receiver a copy of the Assuming Institution’s written agreement
with each Third Party Servicer and shall ensure compliance by each Third Party Servicer with the
Assuming Institution’s obligations under this Agreement, including, without limitation, amending
such agreement with each Third Party Servicer to the extent necessary. Subject to the foregoing and
to the other provisions of this Agreement, a Third Party Servicer may take actions and incur
expenditures in the same manner as the Assuming Institution, and out-of-pocket expenses incurred by
a Third Party Servicer on behalf of the Assuming Institution shall be Reimbursable Expenses if such
out-of-pocket expenses would qualify as Reimbursable Expenses if incurred by the Assuming
Institution.




          (c) Duties with Respect to Affiliates. The Assuming Institution shall provide to the
Receiver prior written notification of any transaction with or by any Affiliate of the Assuming
Institution with respect to any Shared-Loss Asset including, without limitation, the execution of
any contract pursuant to which an Affiliate of the Assuming Institution will own, manage,
administer or collect amounts owing with respect to a Shared-Loss Asset. The Assuming Institution
shall notify the Receiver at least forty (40) days prior to a proposed transaction with an
Affiliate which is not on an arm’s length basis or commercially reasonable







			
	 	 	 
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terms. Such notice will include information regarding the Affiliate’s relevant experience,
qualifications and financial strength. The Receiver may object to the proposed transaction with an
Affiliate in such circumstances by giving the Assuming Institution notice that it so objects within
thirty (30) days following the Receiver’s receipt of the notice of the proposed transaction.




     3.4. Utilization by the Assuming Institution of Special Receivership Powers.



          (a) Notice and Request to Receiver. Upon timely notice to and with the prior consent
of the Receiver, which may be granted or withheld in its sole discretion, to the extent permitted
by applicable law, the Assuming Institution may utilize in a legal action any special legal power
or right which the Assuming Institution derives as a result of having acquired a Shared-Loss Asset
from the Receiver.




          (b) Use of Special Legal Powers. The Receiver may direct usage by the Assuming
Institution of any special legal powers of the Receiver or the Corporation. The Assuming
Institution shall:





          (i) comply in all respects with any direction from the Receiver or the Corporation and
with any protocols, directives or interpretive memoranda issued from time to time by the
Receiver or the Corporation;




          (ii) upon request of the Receiver, notify the Receiver of the status of any legal
action in which any special legal power or right is utilized; and




          (iii) immediately notify the Receiver of any judgment or significant order in any legal
action involving any of such special powers or rights.



     3.5. Tax Ruling. The Assuming Institution shall not at any time, without the
Corporation’s prior consent, seek a private letter ruling or other determination from the Internal
Revenue Service or otherwise seek to qualify for any special tax treatment or benefits associated
with any payments made by the Receiver pursuant to this Agreement.



ARTICLE IV. SALE OF CERTAIN SHARED-LOSS ASSETS.




     4.1. Sales of Shared-Loss Assets. All sales of Shared-Loss Assets are subject to the
prior written approval of the Receiver, except as provided in Section 4.3:



          (a) Sales with the Receiver’s Consent. After the fourth anniversary of the
Commencement Date and with the prior consent of the Receiver, the Assuming Institution may conduct
sales to liquidate for cash consideration, in one or more transactions, all or a portion of the
Shared-Loss Assets (individually or in portfolio transactions) then held by the Assuming
Institution. The Assuming Institution shall provide the Receiver with at least sixty (60) days
notice prior to any such proposed sale and the notice shall set forth the sale details and the
proposed sale schedule.




          (b) Sales Required by the Receiver. During the twelve (12) month period immediately
prior to the Termination Date the Receiver may, in its sole and absolute discretion, require the
Assuming Institution to liquidate for cash consideration, in one or more transactions,







			
	 	 	 
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all Shared-Loss Assets then held by the Assuming Institution. If the Receiver exercises such
right, it shall give notice to the Assuming Institution setting forth the time period within which
the Assuming Institution shall be required to offer to sell the Shared-Loss Assets. The Assuming
Institution shall make a good faith effort to sell the Shared-Loss Assets and to otherwise comply
with the provisions of the Receiver’s notice.




          (c) Conduct of Sales. Any sale pursuant to this Section 4.1 shall be conducted by
means of sealed bid, to third parties, which may not include any Affiliates of the Assuming
Institution, any contractors of the Assuming Institution or any Affiliates of contractors of the
Assuming Institution. The Assuming Institution shall notify the Receiver prior to the proposed
appointment of any financial advisor or other third party broker or sales agent for the liquidation
of the remaining Shared-Loss Assets pursuant to Section 4.1(b). The Receiver may object to such
proposed appointment by giving the Assuming Institution notice that it so objects within thirty
(30) days following the Receiver’s receipt of the notice of the proposed appointment.




     4.2. Calculation of Gain or Loss on Sale. The gain or loss on sales conducted in
accordance with the provisions of Section 4.1 will be calculated based on the gross sale price
received by the Assuming Institution less the Book Value of the Shared-Loss Assets which are sold.



     4.3. Sale of ORE, Additional ORE or Subsidiary ORE. Notwithstanding the provisions of
Section 4.1, the Assuming Institution may sell or otherwise dispose of ORE, Additional ORE or
Subsidiary ORE at any time to a Person other than an Affiliate, a contractor of the Assuming
Institution or any Affiliate of a contractor of the Assuming Institution, provided that such sale
is conducted in an arm’s length, commercially reasonable and prudent manner.



ARTICLE V. CERTIFICATES, REPORTS AND RECORDS.




     5.1. Reporting Obligations of the Assuming Institution.



          (a) Records, Notifications and Reports. The Assuming Institution shall maintain such
records, provide such notifications and deliver such reports as are required pursuant to this
Agreement, including, without limitation, the records, notifications and reports as provided in the
following provisions of this Article 5. Nothing contained in this Agreement shall be deemed to
modify any laws, regulations or orders that are otherwise applicable to the Assuming Institution.




          (b) Certification of Accuracy and Completeness. Every submission by the Assuming
Institution to the Receiver of a Quarterly Certificate, the Final Recovery Certificate and any
other document or information shall constitute a certification from the Assuming Institution that
the information provided in such submission is correct, complete and in compliance with this
Agreement.




     5.2. Quarterly Certificates.



          (a) Shared-Loss Quarters. Within thirty (30) days after the end of each Shared-Loss
Quarter, the Assuming Institution shall deliver to the Receiver a Quarterly







			
	 	 	 
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Certificate setting forth the following information with respect to each such Shared-Loss
Quarter, in such form and detail as the Receiver may specify from time to time:





          (i) Charge-Offs with respect to Shared-Loss Assets;




          (ii) Recoveries;




          (iii) collections on Assets on which a Failed Bank Charge-Off has been effected;




          (iv) aggregate Charge-Offs less Recoveries;




          (v) Reimbursable Expenses; and




          (vi) ORE Income.



          (b) Recovery Quarters. Not later than thirty (30) days after the end of each Recovery
Quarter, the Assuming Institution shall deliver to the Receiver a Quarterly Certificate setting
forth the information specified in Section 5.2(a) and the following information with respect to
each Recovery Quarter, in such form and detail as the Receiver may specify from time to time:





          (i) Recoveries and Reimbursable Expenses;




          (ii) on the Quarterly Certificate for the first Recovery Quarter only, the Assuming
Institution may report as a separate item any Reimbursable Expenses which were: (A) paid
prior to or during the final Shared-Loss Quarter, (B) not included in a Quarterly
Certificate for any Shared-Loss Quarter because they were not paid by or on behalf of the
Assuming Institution during a Shared-Loss Quarter and (C) paid by or on behalf of the
Assuming Institution during the first Recovery Quarter; and




          (iii) ORE Income, ORE Expenses and Net ORE Income.



          (c) Final Recovery Certificate. In addition to the information specified in Sections
5.2(a) and 5.2(b), in the Final Recovery Certificate the Assuming Institution shall include any
Recoveries which were not included in a Quarterly Certificate for a Recovery Quarter and may
include any Reimbursable Expenses which were: (A) incurred prior to or during the final Recovery
Quarter, (B) not included in a Quarterly Certificate for any Recovery Quarter because they were not
paid by or on behalf of the Assuming Institution during a Recovery Quarter and (C) paid by or on
behalf of the Assuming Institution prior to the date the Assuming Institution is required to
deliver the Final Recovery Certificate to the Receiver pursuant to Section 5.2(b).




          (d) Completeness of Information. The Assuming Institution shall provide to the
Receiver complete and accurate information, except to the extent that it is unable to do so as a
result of the failure of the Failed Bank or the Receiver to provide requested information.








			
	 	 	 
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          (e) Limitations. The Assuming Institution may claim each Charge-Off and each item of
expenditure, income, gain or loss only on the Quarterly Certificate for the period in which such
Charge-Off, expenditure, income, gain or loss was incurred. The inclusion of information regarding
Reimbursable Expenses in a Quarterly Certificate or other documentation does not create any
reimbursement obligation of the Receiver if the Assuming Institution is not otherwise in compliance
with this Agreement.




          (f) True-Up Date. The Assuming Institution shall deliver the schedule required
pursuant to Section 2.5(b) on or before the True-Up Date.




     5.3. Notification of Certain Transactions. Prior to the Termination Date the Assuming
Institution shall notify the Receiver within fifteen (15) days following any of the following
becoming fully or partially charged-off:



          (a) a Shared-Loss Loan having a Legal Balance (or, in the case of more than one (1)
Shared-Loss Loan made to the same Obligor, a combined Legal Balance) of $5,000,000 or more in
circumstances in which a legal claim against the relevant Obligor survives; and




          (b) a Shared-Loss Loan made to a director, an “executive officer” as defined in 12 C.F.R. §
215.2(d), a “principal shareholder” as defined in 12 C.F.R. § 215.2(l), or an Affiliate of the
Assuming Institution.




     5.4. Notification of Related Loans. In addition to maintaining records of all Related
Loans, the Assuming Institution shall prepare and deliver to the Receiver, on a semi-annual basis,
together with the Quarterly Certificates for all Shared-Loss Quarters and Recovery Quarters ending
on June 30 and December 31, schedules of all Related Loans which are commercial loans or commercial
real estate loans which have Legal Balances of $5,000,000 or more on the Accounting Records of the
Assuming Institution as of June 30 and December 31, to the extent that more than one of such loans
are to the same Obligor on Related Loans of $5,000,000 or more.



          5.5. Auditor’s Report; Right to Audit.




          (a) Independent Auditor’s Report.





          (i) Within the time period permitted for the examination audit pursuant to 12 C.F.R. §
363 following the end of each fiscal year, from and including the fiscal year during which
the Bank Closing Date occurs, up to and including the calendar year during which the
Termination Date occurs, the Assuming Institution shall deliver to the Receiver and the
Corporation a report signed by its independent public accountants stating that such
accountants have reviewed this Agreement and that, in the course of their annual audit of
the Assuming Institution’s books and records, nothing has come to their attention suggesting
that any computations required to be made by the Assuming Institution during each such year
were not made in accordance with this Agreement.




          (ii) In the event that the Assuming Institution cannot comply with the provisions of
Section 5.5(a)(i), within seven (7) days following the end of the time period permitted for
the examination audit pursuant to 12 C.F.R. § 363, the Assuming Institution




			
	 	 	 
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shall submit to the Receiver corrected computations together with a report signed by
its independent public accountants stating that, after giving effect to such corrected
computations, nothing has come to the attention of such accountants suggesting that any
computations required to be made by the Assuming Institution during such year were not made
by the Assuming Institution in accordance with this Agreement. In such event, the Assuming
Institution and the Receiver shall make all such accounting adjustments and payments as may
be necessary to give effect to each correction reflected in such corrected computations,
retroactive to the date on which the corresponding incorrect computation was made. It is the
intention of this provision to align the timing of the audit required under this Agreement
with the examination audit required pursuant to 12 C.F.R. § 363.



          (b) Assuming Institution’s Internal Audit. The Assuming Institution shall perform on
an annual basis an internal audit of its compliance with this Agreement and shall provide the
Receiver and the Corporation with:





          (i) copies of all internal audit reports and access to all related internal audit work
papers; and




          (ii) a certificate signed by the chief executive officer or chief financial officer of
the Assuming Institution certifying that the Assuming Institution is in compliance with this
Agreement or identifying any areas of non-compliance.



          (c) Right of Receiver or Corporation to Audit. The Receiver or the Corporation, their
respective agents, contractors and employees, may (but are not required to) perform an audit to
determine the Assuming Institution’s compliance with this Agreement at any time, by providing not
less than ten (10) Business Days prior notice. The scope and duration of any such audit shall be at
the discretion of the Receiver or the Corporation, as the case may be. The Receiver or the
Corporation, as the case may be, shall bear the expense of any such audit. In the event that any
corrections are necessary as a result of such an audit, the Assuming Institution and the Receiver
shall make such accounting adjustments, payments and withholdings as may be necessary to give
retroactive effect to such corrections.




          (d) Authority to Advisors and Representatives. The Assuming Institution shall, and
shall cause its Affiliates, contractors and Third Party Servicers to, allow its advisors and
representatives to discuss its (and any Affiliates’, contractors’ or Third Party Servicers’)
affairs, finances and accounts as they relate to Shared-Loss Assets, or any other matters relating
to this Agreement or the rights and obligations hereunder, with the Receiver and authorizes such
advisors and representatives to so discuss such affairs, finances and accounts with the Receiver.




     5.6. Accounting Principles.



          (a) Maintenance of Books and Records. The Assuming Institution shall at all times
during the term of this Agreement keep books and records which fairly present all dealings and
transactions carried out in connection with its business and affairs.




          (b) Accounting Principles. Except as otherwise provided for in the Purchase and
Assumption Agreement or this Agreement, the Assuming Institution shall keep all financial







			
	 	 	 
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books and records in accordance with generally accepted accounting principles, which shall be
consistently applied for the periods involved.




          (c) Change in Accounting Principles. The Assuming Institution shall not make any
change in its accounting principles which adversely affects the value of the Shared-Loss Assets,
unless it obtains the prior written approval of the Corporation or if required by a change in
generally accepted accounting principles. The Assuming Institution shall notify the Corporation of
any change in its accounting principles that is required by a change in generally accepted
accounting principles which would affect any Shared-Loss Asset, the accounting for any Shared-Loss
Asset or the amount of any loss, gain, expense, cost or other item of reimbursement that may be due
to or from the Assuming Institution.




     5.7. Records and Reports.



          (a) Content of Records. The Assuming Institution shall establish and maintain records
on a separate general ledger, and on such subsidiary ledgers as may be appropriate, in such form
and detail as the Receiver or the Corporation may specify, to account for the Shared-Loss Assets
and to enable the Assuming Institution to prepare and deliver such reports as the Receiver or the
Corporation may from time to time request pursuant to this Article 5. Without limitation, such
books and records shall be kept in such a manner that information will be readily available to
determine and document compliance with this Agreement and the Purchase and Assumption Agreement.




          (b) Additional Information. The Assuming Institution shall promptly provide to the
Receiver or the Corporation such information as the requesting party may request from time to time,
including financial statements, computations and information as the Receiver or the Corporation
deems necessary or appropriate in connection with monitoring compliance with this Agreement,
certified as correct by the chief executive officer or chief financial officer of the Assuming
Institution if so requested. The Assuming Institution shall provide to the Receiver all such
loan-level data and cumulative information regarding the Shared-Loss Assets as the Receiver may
request from time to time.




ARTICLE VI. MISCELLANEOUS.




     6.1. Expenses. All costs and expenses incurred by a party in connection with this
Agreement (including the performance of any obligations or the exercise of any rights hereunder)
shall be borne by such party unless expressly otherwise provided, whether or not the transactions
contemplated herein are consummated.



     6.2. Successors and Assigns.



          (a) Binding on Successors and Assigns; Assignment. This Agreement, and all of the
terms and provisions hereof shall be binding upon and shall inure to the benefit of the parties
hereto and their respective permitted successors and assigns only. The Receiver may assign or
otherwise transfer this Agreement and the rights and obligations of the Receiver hereunder (in
whole or in part) to the Corporation in its corporate capacity without the consent of the Assuming
Institution. Notwithstanding anything to the contrary contained in this Agreement, the Assuming
Institution may not assign or otherwise transfer this Agreement or any of the







			
	 	 	 
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Assuming Institution’s rights or obligations hereunder (in whole or in part) or sell or
transfer any subsidiary of the Assuming Institution holding title to Shared-Loss Assets without the
prior written consent of the Receiver, which consent may be granted or withheld by the Receiver in
its sole and absolute discretion. An assignment or transfer of this Agreement includes:





          (i) a merger or consolidation of the Assuming Institution with or into another Person,
if the shareholders of the Assuming Institution will own less than sixty-six and two/thirds
percent (66.66%) of the equity of the consolidated entity;




          (ii) a merger or consolidation of the Assuming Institution’s Holding Company with or
into another Person, if the shareholders of the Holding Company will own less than sixty-six
and two/thirds percent (66.66%) of the equity of the consolidated entity;




          (iii) the sale of all or substantially all of the assets of the Assuming Institution to
another Person; or




          (iv) a sale of Shares by any one or more shareholders that will effect a change in
control of the Assuming Institution, as determined by the Receiver with reference to the
standards set forth in the Change in Bank Control Act, 12 U.S.C. 1817(j).



          Any transaction under this Section 6.2 that requires the Receiver’s consent that is made
without such consent will relieve the Receiver of its obligations under this Agreement.




          (b) No Recognition of Loss. No loss shall be recognized under this Agreement as a
result of any accounting adjustments that are made due to or as a result of any assignment or
transfer of this Agreement or any merger, consolidation, sale or other transaction to which the
Assuming Institution, its Holding Company or any Affiliate is a party, regardless of whether the
Receiver consents to such assignment or transfer in connection with such transaction pursuant to
this Section 6.2.




     6.3. WAIVER OF JURY TRIAL. EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES,
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, ALL RIGHT TO TRIAL BY JURY IN, OR TO HAVE A JURY
PARTICIPATE IN RESOLVING ANY DISPUTE, ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER SOUNDING IN
CONTRACT, TORT OR OTHERWISE, ARISING OUT OF OR RELATING TO OR IN CONNECTION WITH THIS AGREEMENT OR
ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.



     6.4. No Third Party Beneficiary. This Agreement is for the sole and exclusive benefit
of the parties and their respective permitted successors and permitted assigns and there shall be
no other third party beneficiaries. Nothing in this Agreement shall be construed to grant to any
other Person any right, remedy or claim under or in respect of this Agreement or any provision
hereof.



     6.5. Consent; Determination or Discretion. When the consent or approval of a party is
required under this Agreement, such consent or approval shall be obtained in writing and unless
expressly otherwise provided, shall not be unreasonably withheld or delayed. When a




			
	 	 	 
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determination or decision is to be made by a party under this Agreement, that party shall make
such determination or decision in its reasonable discretion unless expressly otherwise provided.




     6.6. Rights Cumulative. Except as expressly otherwise provided herein, the rights of
each of the parties under this Agreement are cumulative, may be exercised as often as any party
considers appropriate and are in addition to each such party’s rights under the Purchase and
Assumption Agreement, any of the agreements related thereto or under applicable law. Any failure to
exercise or any delay in exercising any of such rights, or any partial or defective exercise of
such rights, shall not operate as a waiver or variation of that or any other such right, unless
expressly otherwise provided.



     6.7. References. References in this Agreement to Recitals, Articles, Sections and
Exhibits are to Recitals, Articles, Sections and Exhibits of this Agreement, respectively, unless
the context indicates that the Purchase and Assumption Agreement is intended. References to parties
are to the parties to this Agreement. Unless expressly otherwise provided, references to days and
months are to calendar days and months respectively. Article and Section headings are for
convenient reference and shall not affect the meaning of this Agreement. References to the
singular shall include the plural, as the context may require, and vice versa.



     6.8. Notice.



          (a) Form of Notices. All notices shall be given in writing to the parties at the
addresses set forth in Sections 6.8(b) and 6.8(c) and sent in accordance with the provisions of
Section 13.6 of the Purchase and Assumption Agreement, unless expressly otherwise provided.




          (b) Notice to FDIC (Division of Resolutions and Receiverships). With respect to a
notice under this Agreement, other than pursuant to Section 3.4(a):



Federal Deposit Insurance Corporation

Division of Resolutions and Receiverships

550 17th Street, N.W.

Washington, D.C. 20429

Attention: Assistant Director, Franchise and Asset Marketing




          (c) Notice to FDIC (Legal Division). With respect to a notice under Section 3.4(a):



Federal Deposit Insurance Corporation Legal Division

1601 Bryan Street

Dallas, Texas 75201

Attention: Regional Counsel



with a copy to:



Federal Deposit Insurance Corporation Legal Division

Virginia Square, L.William Seidman Center

3501 Fairfax Drive, VS-E-7056

Arlington, Virginia 22226

Attention: Senior Counsel (Special Issues Group)








			
	 	 	 
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ARTICLE VII. DISPUTE RESOLUTION.




     7.1. Methods of Resolution. The methods of resolving a dispute arising pursuant to
this Agreement shall be as follows:



          (a) Charge-Offs. Any dispute as to whether a Charge-Off of a Shared-Loss Asset was
made in accordance with the Examination Criteria shall be finally resolved by the Assuming
Institution’s Chartering Authority.




          (b) Other Disputes. Any other dispute (a “Dispute Item”) shall be resolved in
accordance with the following provisions of this Article 7.




     7.2. Informal Resolution. The Receiver or the Corporation, as appropriate, (the “FDIC
Party”) and the Assuming Institution shall negotiate in good faith to resolve any Dispute Item
within thirty (30) Business Days following receipt of information concerning the Dispute Item.



     7.3. Resolution by Non-Binding Dispute Resolution Proceeding. If informal resolution
of the Dispute Item pursuant to Section 7.2 is unsuccessful, the FDIC Party, on the one hand, and
the Assuming Institution, on the other hand, may submit to the other party written notification of
a Dispute Item (a “Notice of Dispute”). The Notice of Dispute shall contain a description of the
dispute, an estimate of the amount in issue and any other information required pursuant to this
Article 7. The parties shall make good faith efforts to resolve the dispute by mutual agreement
within thirty-five (35) Business Days following receipt of the Notice of Dispute. In furtherance
of these efforts, the parties should consider the mutually agreed upon use of less formal dispute
resolution techniques, which may include, but are not limited to, mediation, settlement conference,
early neutral evaluation and any other dispute resolution proceedings (as defined in § 571(6) of
the Administrative Dispute Resolution Act (“ADRA”), 5 U.S.C. § 571 et seq.), as amended).



     7.4. Confidentiality of Compromise Negotiations. All good faith attempts to resolve
or compromise a dispute pursuant to Sections 7.2 or 7.3 will be confidential. All such compromise
negotiations, including any statements made or documents prepared by any party, attorney or other
participant, are inadmissible as evidence in other proceedings and may not be construed for any
purpose as admissions against interest.



     7.5. Payment Resulting from Compromise Negotiations. If the FDIC Party and the
Assuming Institution resolve a Dispute Item to their mutual satisfaction pursuant to Sections 7.2
or 7.3, including any dispute pursuant to Section 2.6, then within thirty (30) days following such
resolution, the appropriate party shall make payment or take action as agreed by the parties.




			
	 	 	 
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     7.6. Formal Resolution.



          (a) Arbitration Matters. Any Dispute Item which has an estimated amount in issue not
exceeding $1,000,000 per Asset may be proposed by the party seeking relief (the
“Claimant Party”) for arbitration pursuant to the provisions of this Section 7.6. No more
than three Dispute Items may be submitted for any single arbitration, provided that, by mutual
agreement pursuant to Section 7.6(c), the parties may agree to submit any Dispute Item(s) to
arbitration.




          (b) Proposal to Arbitrate. If the FDIC Party and the Assuming Institution do not
resolve a Dispute Item pursuant to Sections 7.2 and 7.3, then within ten (10) Business Days
following the expiration of the period provided in Section 7.3, the Claimant Party may propose to
submit the unresolved Dispute Item to arbitration by notifying the other party (the “Respondent
Party”) in writing.




          (c) Submission to Arbitration. The Respondent Party may agree to the Claimant Party’s
proposal of arbitration by responding in writing within ten (10) Business Days following receipt of
such proposal. Within five (5) Business Days following receipt of the Respondent Party’s agreement
to arbitrate, the Claimant Party may submit the Dispute Item to the American Arbitration
Association (“AAA”) for arbitration. No Dispute Item may be submitted for arbitration without the
consent of both parties.




          (d) Waiver of Arbitration. If the Claimant Party does not (i) propose to submit the
Dispute Item to arbitration within the period set forth in Section 7.6(b) or (ii) submit the
Dispute Item to AAA within the period set forth in Section 7.6(c), then the Claimant Party shall be
deemed to have waived submission of the Dispute Item to arbitration.




          (e) Litigation Matters. If the FDIC Party and the Assuming Institution do not agree
to submit the Dispute Item to arbitration, the Dispute Item may be resolved by litigation in
accordance with Federal or state law, as provided in Section 13.10 of the Purchase and Assumption
Agreement. Any litigation shall be filed in a United States District Court in the proper district.




          (f) Arbitration Administrator. The FDIC Party may, in its discretion, appoint an
organization other than AAA for administration of arbitration pursuant to this Section 7.6, in
which case this Article 7 and the rules and procedures set forth herein, including the Commercial
Arbitration Rules as referred to in Section 7.9, shall govern the arbitration. AAA or such other
organization appointed pursuant to this Section 7.6(f) shall be referred to in this Agreement as
the “Arbitration Administrator.”




     7.7. Limitation on FDIC Party. Nothing in this Article 7 shall be interpreted as
obligating the FDIC Party to submit to a dispute resolution proceeding (as defined in ADRA at §
571(6)) any Dispute Item described in (i) ADRA, § 572(b) or (ii) the FDIC’s Statement of Policy
Regarding Binding Arbitration, 66 Fed. Reg. 18632 (April 10, 2001), as amended, as a dispute for
which an agency shall consider not using a dispute resolution proceeding.



     7.8. Effectiveness of Agreement Pending Dispute. Notwithstanding anything in this
Agreement to the contrary, in the event that a Notice of Dispute is provided to a party under this




			
	 	 	 
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Article 7 prior to the Termination Date, the terms of this Agreement shall remain in effect with
respect to the items set forth in such notice until the dispute with respect to such items has been
finally resolved, and such dispute shall be resolved in accordance with the provisions of this
Agreement even if that resolution occurs after the Termination Date.



     7.9. Governing Rules and Law for Arbitration. Any arbitration shall be substantively
governed by the Federal law of the United States of America, and in the absence of controlling
Federal law, in accordance with the laws of the state in which the main office of the Failed Bank
is located. The arbitration shall be procedurally governed by the Commercial Arbitration Rules (the
“Commercial Arbitration Rules”) established by AAA to the extent that such rules are not
inconsistent with this Article 7, the Federal Arbitration Act, 9 U.S.C. § 1 et seq. (“Federal
Arbitration Act”), and ADRA., as each may be in effect at the time that the arbitration is
initiated, except that the Commercial Arbitration Rules’ Expedited Procedures shall not apply
unless the FDIC Party and Claimant Party otherwise agree in writing. The Review Board (as defined
below) may modify the procedures set forth in such rules from time to time with the prior written
approval of the Claimant Party and the Respondent Party.



     7.10. Review Board Proceedings. The arbitration of a dispute shall be conducted by a
review board (a “Review Board”) which shall consist of either one (1) or three (3) members (each, a
“Member”) with such expertise as the Claimant Party and Respondent Party agree is relevant. The
Claimant Party shall specify, in its Notice of Dispute, the number of Members which it proposes for
the Review Board.



          (a) Selection of Members.





          (i) Claimant Party Proposes One Member. If the Dispute Item(s) are less than
$500,000 in total, the Claimant Party may propose that the Review Board shall consist of one
Member, and shall state, in its Notice of Dispute, the name and address of the Member that
it proposes for the Review Board. If the Respondent Party agrees, in its response to the
Notice of Dispute, the Member suggested by the Claimant Party shall comprise the Review
Board. If the Respondent Party agrees, in its response to the Notice of Dispute, that the
Review Board shall consist of one Member, but states the name and address of a different
proposed Member for the Review Board, then that Member shall be deemed acceptable to the
Claimant Party if it submits the Notice of Dispute to the Arbitration Administrator,
provided that, before the Respondent Party responds to the Notice of Dispute with a
different proposed Member, the parties may also mutually agree upon one Member. If the
Respondent Party proposes that the Review Board shall consist of three Members, then the
Members shall be selected in accordance with Section 7.10(a)(iv).




          (ii) Claimant Party Proposes Three Members. If the Dispute Items exceed
$500,000 in total, or if the Respondent Party proposes that the Review Board shall consist
of three Members, then the Claimant Party shall state the name and address of the first of
three Members in its Notice of Dispute. If the Respondent Party agrees that the Review
Board shall consist of three Members, the Respondent Party shall state the name and address
of the second Member in its response to the Notice of Dispute. Each such Member shall be
considered a “Party-Appointed Arbitrator” (“Party-Appointed




			
	 	 	 
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Arbitrator”), consistent with
Commercial Arbitration Rule R-12. If the Claimant Party subsequently submits the Notice of
Dispute to the Arbitration Administrator as provided
in Section 7.6(c), then within ten (10) Business Days of such submission, the
Party-Appointed Arbitrators shall select a neutral third Member (the “Neutral Member”) in
accordance with Commercial Arbitration Rules R-11 and R-13, except that the Neutral Member
need not be from the National Roster of Commercial Arbitrators. If the Respondent Party
proposes that the Review Board shall consist of one Member, then the Member shall be
selected in accordance with Section 7.10(a)(iii).




          (iii) Respondent Party Proposes One Member. If the Claimant Party proposes
that the Review Board shall consist of three Members, but the Respondent Party proposes that
the Review Board shall consist of one Member in its response to the Notice of Dispute, then
the Member proposed by the Claimant Party in the Notice of Dispute shall comprise the Review
Board unless the Respondent Party states the name and address of a different proposed Member
in its response to the Notice of Dispute. If the Respondent Party proposes a different
Member in its response to the Notice of Dispute, then that Member shall be deemed acceptable
to the Claimant Party if it submits the Notice of Dispute to the Arbitration Administrator.




          (iv) Respondent Party Proposes Three Members. If the Claimant Party proposes
that the Review Board shall consist of one Member, but the Respondent Party proposes, in its
response to the Notice of Dispute, that the Review Board shall consist of three Members,
then the Member proposed by the Claimant Party in the Notice of Dispute shall comprise the
first Member of the Review Board. The Respondent Party shall state the name and address of
the second Member in its response to the Notice of Dispute. Each such Member shall be
considered a Party-Appointed Arbitrator. If the Claimant Party subsequently submits the
Notice of Dispute to the Arbitration Administrator, a Neutral Member shall be selected in
accordance with the procedure set forth in Section 7.10(a)(ii).




          (b) Removal of Members. A Party-Appointed Arbitrator may be removed at any time by
the party who appointed that Member upon five (5) Business Days notice to the other party of the
selection of a replacement Member. The Neutral Member may be removed by unanimous action of the
Party-Appointed Arbitrators or unanimous action of the parties after five (5) Business Days notice
to the Claimant Party and the Respondent Party and the Arbitration Administrator of the selection
of a replacement Neutral Member.




          (c) Vacancies. Any vacancy on the Review Board prior to or after the commencement of
the hearing of evidence and argument (the “Arbitration Hearing”) shall be handled in accordance
with Commercial Arbitration Rule R-19, except that if a vacancy arises after the Arbitration
Hearing has commenced, a substitute Member shall be selected in accordance with the rules under
which the original Member was selected.



     7.11. Impartiality. As a condition of serving on the Review Board, within five (5)
Business Days after being selected, each Member shall provide a written oath, under penalty of
perjury, containing a statement that the Member does not have any conflicts of interest (whether
official, financial, personal or otherwise) with respect to the issues or parties in controversy,
and




			
	 	 	 
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that each Member agrees to be bound by the provisions of this Article 7 as applicable to the
Members. If a Member has any potential conflict of interest, the Member shall fully disclose
such interest in writing to the Claimant Party and the Respondent Party and the Member shall
not serve on the Review Board, unless the Claimant Party and the Respondent Party agree otherwise.
The Conflicts Committee of the Legal Division of the Corporation shall review any potential
conflicts of interest for potential waiver. None of the Members may serve as counsel, advisor,
witness or representative to any party to the arbitration.



     7.12. Schedule. The Review Board shall assume control of the arbitration process and
shall schedule all events as expeditiously as possible. The Arbitration Hearing shall commence
within ninety (90) Business Days after receipt of the Notice of Dispute by the Arbitration
Administrator.



     7.13. Written Award. Within twenty (20) Business Days following closing of the
Arbitration Hearing, as determined by Commercial Arbitration Rule R-35, the Review Board shall
determine the prevailing party and award the prevailing party its proposed award/award any remedy
or relief that the arbitrator deems just and equitable and within the scope of this Article 7, but
in no event may an award of the Review Board (inclusive of all claims and counterclaims) exceed the
maximum amount set forth in Section 7.6(a) of this Agreement. If the Review Board consists of three
(3) Members, the determination of any two (2) Members shall constitute the Review Board’s
determination. The Review Board shall present to the Claimant Party and the Respondent Party a
written award regarding the dispute. The written award shall contain a brief, informal discussion
of the factual and legal basis for the award and need not contain formal findings of facts and law.



     7.14. Interest Rate on Award. Any award amounts ultimately determined to be payable
pursuant to the Review Board’s written award shall bear interest at the Settlement Interest Rate
from a beginning date specified by the Review Board in its written award and until the date on
which payment is made.



     7.15. Payments. All payments required to be made under this Article 7 shall be made
by wire transfer and within fifteen (15) Business Days following the date on which the award
becomes final, as provided by ADRA at § 580(b). The Review Board will have no authority to award
any punitive, consequential, special or exemplary damages.



     7.16. Fees, Costs and Expenses. The Review Board will have no authority to award
attorneys’ fees or costs incurred by either party to the arbitration. Each party will bear the
fees, costs, and expenses which it incurs in connection with the submission of any dispute to a
Review Board, including the fees and expenses of the Member which it selected in accordance with
the Arbitration Administrator’s fee schedule. The Claimant Party and the Respondent Party will
share equally the fees and expenses of the Neutral Member and any administrative fees of the
arbitration (which shall not include the fees and expenses of the Members). No fees, costs or
expenses incurred by or on behalf of the Assuming Institution shall be subject to reimbursement by
the Receiver under this Article 7 or otherwise.



     7.17. Binding and Conclusive Nature. Arbitration of a dispute pursuant to this
Article 7 shall be final, conclusive and binding on the parties and not subject to further dispute
or




			
	 	 	 
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review, and judgment upon the award made by the Review Board may be entered in accordance with
applicable law in any court having jurisdiction thereof. Other than as provided by the Federal
Arbitration Act and ADRA, no review, appeal or reconsideration of the Review Board’s
determination shall be permitted, including review, appeal or reconsideration by the Review Board
or any other arbitrators. The parties agree to faithfully observe the provisions of this Article 7
and the Commercial Arbitration Rules, and the parties agree to abide by and perform any award
rendered by the Review Board.



     7.18. No Precedent. No decision, interpretation, determination, analysis, statement,
award or other pronouncement of a Review Board shall constitute precedent in regard to any
subsequent proceeding (whether or not such proceeding involves dispute resolution under this
Agreement), nor shall any Review Board be bound to follow any decision, interpretation,
determination, analysis, statement, award or other pronouncement rendered by any previous Review
Board or any other previous dispute resolution panel that may have convened in connection with a
transaction involving other failed financial institutions or Federal assistance transactions.



     7.19. Confidentiality; Proceedings, Information and Documents. No arbitration held
pursuant to this Article 7 shall be public or accessible to any person other than the parties and
their representatives, the Review Board and witnesses participating in the arbitration (and then,
only to the extent of their participation). Each party and each Member shall strictly maintain the
confidentiality of all issues, disputes, arguments, positions and interpretations of any such
proceeding, as well as all testimony, pleadings, filings, discovery, information, attachments,
enclosures, exhibits, summaries, compilations, studies, analyses, notes, documents, statements,
schedules and other similar items associated therewith (“Confidential Information”), in accordance
with the provisions of ADRA. In the event that disclosure of Confidential Information is required
pursuant to law, rule or regulation, or in the event that disclosure is required pursuant to
statute or court determination as provided by ADRA, then to the extent reasonably practicable, the
person required to make the disclosure shall provide the other party or parties with written notice
of such disclosure within one (1) Business Day following the request that it make such disclosure,
and in any event prior to making such disclosure, so that the other party or parties may seek a
protective order.



     7.20. Confidentiality of Arbitration Award. Notwithstanding the provisions of Section
7.19, no party has any duty of confidentiality with respect to any arbitration award made pursuant
to this Article 7.



     7.21. Extension of Time Periods. The parties may extend any period of time provided
in this Article 7 by mutual agreement.



     7.22. Venue. The arbitration shall take place at such location as the parties thereto
may mutually agree, but if they cannot agree, then it will take place at the offices of the
Corporation in Washington, D.C., or Arlington, Virginia.




			
	 	 	 
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ARTICLE VIII. DEFINITIONS. The capitalized terms used in this Agreement have the meanings defined
or referenced in this Article 8.




     “AAA” has the meaning set forth in Section 7.6(c).



     “Accounting Records” means Records including, but not limited to, corporate minutes, general
ledger and subsidiary ledgers and schedules which support general ledger balances.



     “Accrued Interest” means, for any Shared-Loss Loan, Permitted Advance or Shared-Loss Loan
Commitment Advance at any time, the amount of accrued earned and unpaid interest, taxes, credit
life and/or disability insurance premiums (if any) payable by the Obligor, all as reflected on the
Accounting Records of the Failed Bank or the Assuming Institution (as applicable), but excluding
any amount accrued after the applicable Asset has been placed on non-accrual or nonperforming
status by either the Failed Bank or the Assuming Institution (as applicable), for no more than a
maximum of ninety (90) days.



     “Additional ORE” means Shared-Loss Loans that become ORE after the Bank Closing Date.



     “ADRA” has the meaning set forth in Section 7.3.



     “Affiliate” has the meaning set forth in the Purchase and Assumption Agreement; provided that,
for purposes of this Agreement, no Third Party Servicer appointed by an Affiliate shall be deemed
to be an Affiliate of the Assuming Institution solely by virtue of that appointment.



     “Agreement” has the meaning set forth in Recital A.



     “Applicable Percentage” is eighty percent 80% for the Tranche 1 Amount and eighty percent 80%
for the Tranche 2 Amount.



     “Arbitration Administrator” has the meaning set forth in Section 7.6(f).



     “Arbitration Hearing” has the meaning set forth in Section 7.10(a)(iii).



     “Assets” has the meaning set forth in the Purchase and Assumption Agreement.



     “Assuming Institution” has the meaning set forth in the Purchase and Assumption Agreement.



     “Bank Closing Date” has the meaning set forth in the Purchase and Assumption Agreement.



     “Bank Premises” has the meaning set forth in the Purchase and Assumption Agreement.



     “Bid Valuation Date” has the meaning set forth in the Purchase and Assumption Agreement.



     “Book Value” has the meaning set forth in the Purchase and Assumption Agreement.




			
	 	 	 
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     “Business Day” has the meaning set forth in the Purchase and Assumption Agreement.



     “Calendar Quarter” means a period of three months in any year, commencing on the first day of
each January, April, July or October, and each successive three-month period
thereafter, except that the first such period shall commence on the Commencement Date and end
on the last day of March, June, September or December, whichever is the first to occur after the
Commencement Date.



     “Capitalized Expenditures” means those expenditures that (a) would be capitalized under
generally accepted accounting principles and (b) are incurred with respect to Shared-Loss Loans,
ORE, Additional ORE or Subsidiary ORE, but excluding expenses related to environmental conditions
including, but not limited to, remediation, storage or disposal of any hazardous or toxic
substances or any pollutant or contaminant.



     “Charge-Off” means, for any period with respect to a particular Shared-Loss Asset, the amount
of a loan or portion of a loan classified as “Loss” under the Examination Criteria as effected by
the Assuming Institution and reflected on its Accounting Records for such period, consisting solely
of a charge-off of the following:



          (a) the principal amount of such Shared-Loss Asset net of unearned interest;




          (b) a write-down associated with Shared-Loss Assets, ORE or Additional ORE or loan
modification(s);




          (c) Accrued Interest for no more than a maximum of ninety (90) days; plus




          (d) Capitalized Expenditures.




          Losses incurred on the sale or other disposition of Shared-Loss Assets to any Person shall not
constitute Charge-Offs except for: (i) sales duly conducted in accordance with the provisions of
Sections 4.1(a) and 4.1(b), (ii) the sale or other disposition of ORE or Additional ORE to a Person
other than an Affiliate of the Assuming Institution which was conducted in a commercially
reasonable and prudent manner and (iii) other sales or dispositions, if any, with respect to which
the Receiver granted prior consent.




     “Chartering Authority” has the meaning set forth in the Purchase and Assumption Agreement.



     “Claimant Party” has the meaning set forth in Section 7.6(a).



     “Commencement Date” means the first day following the Bank Closing Date.



     “Commercial Arbitration Rules” has the meaning set forth in Section 7.9.



     “Commitment” has the meaning set forth in the Purchase and Assumption Agreement.



     “Confidential Information” has the meaning set forth in Section 7.19.




			
	 	 	 
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     “Consumer Loans” means loans to individuals for household, family and other personal
expenditures, that are not secured by real estate, including but not limited to loans for (a)
purchase of private automobiles, pickup trucks, household appliances, furniture, trailers and
boats; (b) repairs or improvements to a borrower’s residence; (c) educational expenses, including
student loans, whether or not guaranteed by the United States or any state; (d) medical
expenses; (e) taxes; (f) vacations; (g) personal (non-business) debt consolidation; and (h)
purchase of a mobile home to be used as a residence which is not combined with real property.
Consumer Loans may be installment loans, demand loans or single payment time loans, regardless of
size or maturity and regardless of whether the loans are made by the consumer loan department or by
any other department of the Failed Bank. Consumer Loans also include retail installment sales paper
purchased by the Failed Bank from merchants or dealers, finance companies and others and extensions
of credit pursuant to a credit card plan or debit card plan.



     “Corporation” has the meaning set forth in the Purchase and Assumption Agreement.



     “Covered Gain” has the meaning set forth in Section 2.3(b).



     “Covered Loss” has the meaning set forth in Section 2.3(a).



     “Credit File” has the meaning set forth in the Purchase and Assumption Agreement.



     “Dispute Item” has the meaning set forth in Section 7.1(b).



     “Environmental Assessment” means an assessment relating to the presence, storage or release of
any hazardous or toxic substance, pollutant or contaminant with respect to the collateral securing
a Shared-Loss Loan that has been fully or partially charged-off.



     “Examination Criteria” means the loan classification criteria employed by, and any applicable
regulations of, the Assuming Institution’s Chartering Authority at the time an action is taken, as
such criteria may be amended from time to time.



     “Failed Bank” has the meaning set forth in the Purchase and Assumption Agreement.



     “Failed Bank Charge-Offs” means, with respect to any Asset, an amount equal to the aggregate
reversals or charge-offs of Accrued Interest and charge-offs and write-downs of principal effected
by the Failed Bank with respect to that Asset as reflected on the Accounting Records of the Failed
Bank, excluding any Fully-Charged-Off Assets.



     “Federal Arbitration Act” has the meaning set forward in Section 7.9.



     “Final Recovery Certificate” means the Quarterly Certificate for the final Recovery Quarter.



     “Fixtures” has the meaning set forth in the Purchase and Assumption Agreement.



     “FDIC” means the Federal Deposit Insurance Corporation, in any capacity, as appropriate.




			
	 	 	 
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     “FDIC Party” has the meaning set forth in Section 7.2.



     “Fully Charged-Off Assets” means Assets subject to Failed Bank Charge-Offs that were
completely charged-off by the Failed Bank and had a Book Value of zero on the Bank Closing Date.



     “Holding Company” means any company owning Shares of the Assuming Institution that is a
holding company pursuant to the Bank Holding Company Act of 1956, 12 U.S.C. 1841 et seq. or the
Home Owners’ Loan Act, 12 U.S.C. 1461 et seq.



     “Investment in Subsidiary” means the amount of the Failed Bank’s direct and indirect
investment in a Shared-Loss Subsidiary, including any amounts due from that Shared-Loss Subsidiary
to the Failed Bank that were acquired by the Assuming Institution, calculated as of the
Commencement Date.



     “Intrinsic Loss Estimate” is twenty-three million dollars ($23,000,000.00).



     “Legal Balance” has the meaning set forth in the Purchase and Assumption Agreement.



     “Loan” has the meaning set forth in the Purchase and Assumption Agreement.



     “Management Standards” has the meaning set forth in Section 3.1.



     “Member” has the meaning set forth in Section 7.10.



     “Net Loss Amount” means the sum of all Covered Losses less all Covered Gains and, if the
Purchase and Assumption Agreement includes a Single Family Agreement, the Cumulative Loss Amount
under and as defined in the Single Family Agreement.



     “Net ORE Income” means the extent to which aggregate ORE Income exceeds ORE Expenses, as
described in Section 2.9(g)(i) or (ii), as appropriate.



     “Net ORE Loss Carryforward” means the amount of any ORE Income in any Recovery Quarter that is
a negative number.



     “Net Recoveries” has the meaning set forth in Section 2.4(c).



     “Neutral Member” has the meaning set forth in Section 7.10(a)(ii).



     “New Shared-Loss Loans” means loans that would otherwise be subject to loss sharing under this
Agreement that were originated after the Bid Valuation Date and before the Bank Closing Date.



     “Notice of Dispute” has the meaning set forth in Section 7.3.



     “Obligor” has the meaning set forth in the Purchase and Assumption Agreement.



     “ORE” means the following that (a) are owned by the Failed Bank as of the Bank Closing Date
and purchased pursuant to the Purchase and Assumption Agreement or (b) have




			
	 	 	 
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been acquired
subsequent to the Bank Closing Date from the collection or settlement by the Assuming Institution
of a Shared-Loss Loan, including, without limitation, any assets which
have been fully or partially charged-off on the books and records of the Failed Bank or the
Assuming Institution:



          (a) interests in real estate (other than Bank Premises and Fixtures), including but not
limited to mineral rights, leasehold rights, condominium and cooperative interests, air rights and
development rights; and




          (b) other assets (whether real property, furniture, fixtures or equipment and, at the option
of the Receiver, other personal property) acquired by foreclosure of ORE or in full or partial
satisfaction of judgments or indebtedness.




     “ORE Expenses” means the aggregate expenses paid to third parties by or on behalf of the
Assuming Institution after the final Shared-Loss Quarter to manage, operate and maintain ORE,
Additional ORE and Subsidiary ORE, which may include property taxes, insurance and sales
commissions, provided that such commissions are of an amount customary for the type and location of
the asset.



     “ORE Income” means income received by or on behalf of the Assuming Institution or its
Affiliate(s) from the operation, and any gains recognized by the Assuming Institution on the
disposition, of ORE, Additional ORE and Subsidiary ORE.



     “Party-Appointed Arbitrator” has the meaning set forth in Section 7.10(a)(ii).



     “Permitted Advance” has the meaning set forth in Section 2.8(a).



     “Permitted Amendment” has the meaning set forth in Section 2.8(b).



     “Person” has the meaning set forth in the Purchase and Assumption Agreement.



     “Purchase and Assumption Agreement” has the meaning set forth in Recital A.



     “Quarterly Certificate” means a certificate or certificates, signed by an officer of the
Assuming Institution involved in, or responsible for, the administration and servicing of the
Shared-Loss Assets, whose name appears on a list provided to the Receiver (as updated by the
Assuming Institution as needed from time to time) of servicing officers and the related supporting
documentation setting forth in such form and detail as the Receiver may specify from time to time
the items listed at Section 5.2(a), in the form set forth in Exhibit 5.2 and delivered as
set forth in Article 5 of this Agreement.



     “Receiver” has the meaning set forth in the Purchase and Assumption Agreement.



     “Record” has the meaning set forth in the Purchase and Assumption Agreement.



     “Recovery” has the meaning set forth in Section 2.9.




			
	 	 	 
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     “Recovery Quarter” means a Calendar Quarter commencing with and including the first Calendar
Quarter following the final Shared-Loss Quarter and ending on the Termination Date.



     “Reimbursable Expenses” has the meaning set forth in Section 2.7(a).



     “Related Liability” has the meaning set forth in the Purchase and Assumption Agreement.



     “Related Liability Amount” has the meaning set forth in the Purchase and Assumption Agreement.



     “Related Loan” means a loan or extension of credit held by the Assuming Institution at any
time on or prior to the end of the final Recovery Quarter that is:



          (a) made to the same Obligor with respect to a Loan that is a Shared-Loss Asset or with
respect to a Loan from which ORE, Additional ORE or Subsidiary ORE derived; or




          (b) attributable to the same primary Obligor with respect to any Loan described at paragraph
(a) under the applicable rules of the Assuming Institution’s Chartering Authority concerning the
legal lending limits of financial institutions organized under its jurisdiction as in effect on the
Commencement Date.




     “Respondent Party” has the meaning set forth in Section 7.6(b).



     “Review Board” has the meaning set forth in Section 7.10.



     “Settlement Interest Rate” has the meaning set forth in the Purchase and Assumption Agreement.



     “Shared-Loss Assets” means Shared-Loss Loans, Subsidiary Shared-Loss Loans, ORE, Additional
ORE, Subsidiary ORE and Capitalized Expenditures.



     “Shared-Loss Loan Commitment” means (a) a Commitment to make a further extension of credit or
a further advance with respect to an existing Shared-Loss Loan or (b) a Shared-Loss Loan in respect
of which the Assuming Institution has made a Permitted Amendment.



     “Shared-Loss Loan Commitment Advance” means an advance pursuant to a Shared-Loss Loan
Commitment with respect to which the Assuming Institution has not made a Permitted Advance.



     “Shared-Loss Loans” means the following:



          (a) Loans purchased by the Assuming Institution pursuant to the Purchase and Assumption
Agreement set forth on Schedule 4.15B thereto;





			
	 	 	 
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          (b) New Shared-Loss Loans purchased by the Assuming Institution pursuant to the Purchase and
Assumption Agreement;




          (c) Permitted Advances;




          (d) Shared-Loss Loan Commitment Advances, if any; and




          (e) Shared-Loss Loans (as described at paragraphs (b) through (d) above) with respect to which
the Assuming Institution has made a Permitted Amendment;



but does not include:





          (i) Consumer Loans; or




          (ii) Loans, New Shared-Loss Loans, Permitted Advances or Shared-Loss Loan Commitment
Advances with respect to which a Shared-Loss Subsidiary is an Obligor.



     “Shared-Loss Quarter” means a Calendar Quarter commencing with the initial Calendar Quarter
and ending with and including the Calendar Quarter in which the fifth (5th) anniversary
of the Commencement Date occurs.



     “Shared-Loss Subsidiary” and “Shared-Loss Subsidiaries” mean the Subsidiary or Subsidiaries,
if any, listed on Schedule 4.15D, as applicable.



     “Shares” means common stock and any instrument which by is, or which may become, convertible
into common stock.



     “Single Family Agreement” means, if any, the Single Family Shared-Loss Agreement and the
Exhibits thereto attached as Exhibit 4.15A to the Purchase and Assumption Agreement and entered
into of even date with this Agreement among the Receiver, the Corporation and the Assuming
Institution.



     “Subsidiary” has the meaning set forth in the Purchase and Assumption Agreement.



     “Subsidiary ORE” means ORE listed on Schedule 4.15D and owned by the Shared-Loss
Subsidiary identified on that Schedule 4.15D as the owner of such ORE.



     “Subsidiary
Shared-Loss Loans” means Shared-Loss Loans listed on Schedule 4.15 Downed
by the Shared-Loss Subsidiary identified on that Schedule 4.15D as the owner of such
Shared-Loss Loans.



     “Termination Date” means the last day of the Calendar Quarter in which the eighth (8th)
anniversary of the Commencement Date occurs.



     “Third Party Servicer” means any servicer appointed from time to time by the Assuming
Institution, which may include an Affiliate of the Assuming Institution, to service the Shared-Loss
Assets on behalf of the Assuming Institution.




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Commercial Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






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     “Tranche 1 Amount” means a Net Loss Amount up to and including twenty-three million dollars
($23,000,000.00)



     “Tranche 2 Amount” means a Net Loss Amount in excess of the Tranche 1 Amount.




     “Tranche
3 Amount” means a Net Loss Amount in excess of the Tranche 2
Amount.


     “True-Up Date” means the date which is forty-five (45) days after the latest to occur of the
Termination Date of this Agreement, the Termination Date of the Single Family Agreement, if
applicable, or disposition of all Assets pursuant to this Agreement or the Single Family Agreement,
if applicable.




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Commercial Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






C-38









 





EXHIBIT 2.5




TRUE-UP


Pursuant to Section 2.5 of this Agreement, the following calculation applies to determine any
payment due by the Assuming Institution to the Receiver on the True-Up Date. All capitalized terms
used in this Exhibit 2.5 have the meanings defined or referenced in Article 8 of this
Agreement.



X = A-(B+C+D)






          2

Where:



X = the amount payable to the Receiver pursuant to Section 2.5



A = 20% of the Intrinsic Loss Estimate



B = 20% of the Net Loss Amount



C = 25% of the Asset discount bid, expressed in dollars, of total Shared-Loss Assets on
Schedules 4.15A and 4.15B as of the Bank Closing Date



D = 3.5% of total Shared-Loss Assets on Schedules 4.15A and 4.15B as of the Bank
Closing Date









			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Commercial Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






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EXHIBIT 2.7




EXCLUSION FROM REIMBURSABLE EXPENSES


Pursuant to Section 2.7(b)(iii) of this Agreement, the following calculation applies to determine
the proportion of the expense attributable, for financial accounting purposes, to the reduction of
the Book Value of a Shared-Loss Loan which may not be included as a Permitted Expense. All
capitalized terms used in this Exhibit 2.7 have the meanings defined or referenced in
Article 8 of this Agreement.




X = E * [1- (A+B+C)]





      (A+B+D)


Where:



X = the proportion of expense not allowed as a Permitted Expense pursuant to Section 2.7(b)(iii)



A = the total amount of all Failed Bank Charge-Offs of principal on the Shared-Loss Loan (excluding
reversals or charge-offs of Accrued Interest)



B = the total of all Charge-Offs effected by the Assuming Institution of principal on the
Shared-Loss Loan amount (excluding reversals or charge-offs of Accrued Interest)



C = the amount of principal on the Shared-Loss Loan that has not yet been charged-off but has been
placed on non-accrual status, all of which occurred during the period in which the expenses
represented by E were recognized



D = the total amount of principal indebtedness due from the Obligor on the Shared-Loss Loan after
any amendment, modification, renewal, extension, refinance, restructure, commitment, sale or other
similar action



E = the portion of the expense attributable, for financial accounting purposes, to the reduction of
the Book Value of the Shared-Loss Loan



However, in the event that the portion derived from the calculation represented by:




[1- (A+B+C)]

(A+B+D)




is a negative number, the value of: (A+B+C)






      (A+B+D)


shall be deemed to be 1 and accordingly the value of X shall be zero.









			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Commercial Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






C-40









 








EXHIBIT 2.9




INTEREST INCOME AS A RECOVERY


Pursuant to Section 2.9(d) of this Agreement, the following calculation applies to determine the
proportion of interest income recognized by the Assuming Institution for financial accounting
purposes with respect to a Shared-Loss Loan which may be included as a Recovery subject to the
limit in Section 2.9(e). All capitalized terms used in this Exhibit 2.9 have the meanings
defined or referenced in Article 8 of this Agreement.




X = ((A + B+C)/D) * E




Where:


X = the allowable proportion of interest income recognized by the Assuming Institution on the
Shared-Loss Loan pursuant to Section 2.9(d) provided that such portion may not exceed one hundred
percent (100%) of E.



A = the total amount of all Failed Bank Charge-Offs of principal on the Shared-Loss Loan (excluding
reversals or charge-offs of Accrued Interest)



B = the total amount of all Charge-Offs effected by the Assuming Institution of principal on the
Shared-Loss Loan (excluding reversals or charge-offs of Accrued Interest)



C = the amount of principal on the Shared-Loss Loan that has not yet been charged-off but has been
placed on non-accrual status, all of which occurred at any time prior to or during the period in
which the interest income represented by E was recognized



D = the total amount of principal indebtedness (including all Failed Bank Charge-Offs and
Charge-Offs as described at A and B) due from the Obligor on the Shared-Loss Loan after any
amendment, modification, renewal, extension, refinance, restructure, commitment, sale or other
similar action



E = the total amount of interest income recognized by the Assuming Institution for financial
accounting purposes with respect to the Shared-Loss Loan








			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Commercial Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






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EXHIBIT 5.2











			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Commercial Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






C-42









 


















			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Commercial Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






C-43









 

















			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Commercial Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






C-44









 














			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Commercial Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






C-45









 








SCHEDULE 4.15B




LOANS SUBJECT TO LOSS SHARING UNDER THE

COMMERCIAL SHARED-LOSS AGREEMENT




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Commercial Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 






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SCHEDULE 4.15D




SHARED-LOSS SUBSIDIARIES




			
	 	 	 
	Module 1 — Whole Bank w/ Optional Shared Loss Agreements
	 	CORTEZ COMMUNITY BANK
	Version 3.01 — Commercial Shared-Loss Agreement
	 	BROOKSVILLE, FLORIDA
	December 8, 2010	 	 







C-47