| In      the Matter of:First      National Bank of The SouthSpartanburg,      South Carolina | ))) |  AA-EC-2009-20 |
|---------------------------------------------------------------------------------------------|-----|---------------------|

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|   | (a) | a      description of the actions needed to achieve full compliance with each      Article of this Order; |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

|   | (b) | actions      taken to comply with each Article of this Order;  and |
|--------|-----|--------------------------------------------------------------------|

|   | (c) | the      results and status of thoseactions. |
|--------|-----|----------------------------------------------|

| Director      for Special Supervision          | with      a copy to:        |
|------------------------------------------------|-----------------------------|
| Office      of the Comptroller of the Currency | Carolinas      Field Office |
| Mail      Stop 6-4                             | 212      South Tryon Street |
| 250      E Street, S.W.                        | Suite      700              |
| Washington,      DC  20219           | Charlotte,      NC 28281    |

----

|   | (a) | a      mission statement that forms the framework for the establishment of      strategic goals and objectives; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (b) | a      description of the Bank's targeted market(s) and an assessment of the      current and projected risks and competitive factors in its identified      target market(s); |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the      strategic goals and objectives to be accomplished and actions to be taken      to achieve identified goals and objectives, including specific time      frames; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | specific      actions to improve Bank earnings and asset quality, to reduce the level of      concentrations of credit and funding costs, and to reduce reliance on      non-core funding; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | identification      of Bank personnel to be responsible and accountable for achieving each      goal and objective of the Strategic Plan, including specific time      frames; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (f) | a      financial forecast, to include projections for major balance sheet and      income statement accounts, targeted financial ratios, and growth      projections over the period covered by the Strategic  Plan; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | a      description of the assumptions used to determine financial projections and      growth targets; |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | (h) | an      identification and risk assessment of the Bank's present and planned      future product lines (assets and liabilities) that will be utilized to      accomplish the strategic goals and objectives established in the Strategic      Plan, with the requirement that the risk assessment of new product lines      must be completed prior to the offering of such product    lines; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | a      description of control systems to mitigate risks associated with planned      new products, growth, or any proposed changes in the Bank's operating      environment; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | an      evaluation of the Bank's internal operations, staffing requirements, board      and management information systems, and policies and procedures for their      adequacy and contribution to the accomplishment of the goals and      objectives established in the StrategicPlan; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | a      management employment and succession program to promote the retention and      continuity of capable management; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------|

|   | (l) | assigned      responsibilities and accountability for the strategic planning process,      new products, growth goals, and proposed changes in the Bank's operating      environment; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | a      description of systems to monitor the Bank's progress in meeting the      Strategic Plan's goals andobjectives. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | Tier      1 capital at least equal to eleven percent (11%) of risk-weighted      assets; |
|--------|-----|------------------------------------------------------------------------------------------|

|   | (b) | Tier      1 capital at least equal to nine percent (9%) of adjusted total      assets.2 |
|--------|-----|-----------------------------------------------------------------------------------------|

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|   | (a) | specific      plans for the achievement and maintenance of adequate capital, which may      in no event be less than the requirements of paragraph (1) of this      Article; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | projections      for growth and capital requirements, based upon a detailed analysis of the      Bank's assets, liabilities, earnings, fixed assets, and off-balance sheet      activities; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | projections      of the sources and timing of additional capital to meet the Bank's future      needs, as set forth in the StrategicPlan; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | identification      of the primary sources from which the Bank will maintain an appropriate      capital structure to meet the Bank's future needs, as set forth in the      Strategic Plan; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | specific      plans detailing how the Bank will comply with restrictions or requirements      set forth in this Order and with 12 U.S.C. § 1831o, including      the restrictions against brokered deposits in 12 C.F.R. § 337.6;      and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | contingency      plans that identify alternative methods to strengthen capital, should the      primary source(s) under paragraph (d) of this Article not be      available. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | when      the Bank is in compliance with its approved Capital Plan and would remain      in compliance with its approved Capital Plan immediately following the      payment of any dividend; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | when      the Bank is in compliance with 12 U.S.C. §§ 56 and 60;      and |
|--------|-----|-----------------------------------------------------------------------------------------------|

|   | (c) | following      the prior written determination of no supervisory objection by the      Director. |
|--------|-----|--------------------------------------------------------------------------------------------------|

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----

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|   | (a) | strategies      to maintain sufficient liquidity at reasonable costs including, but not      limited to, the following: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------|

|   | (i) | better      diversification of funding sources, reducing reliance on high cost      providers; |
|--------|-----|------------------------------------------------------------------------------------------------|

|   | (ii) | reducing      rollover risk; |
|--------|------|------------------------------|

|   | (iii) | increasing      liquidity through such actions as obtaining additional capital, placing      limits on asset growth, aggressive collection of problem loans and      recovery of charged-off assets, and asset sales;  and |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | monitoring      the projected impact on reputation, economic and credit conditions in the      Bank's market(s). |
|--------|------|------------------------------------------------------------------------------------------------------------------|

|   | (b) | The      preparation of liquidity reports which shall be reviewed by the Board on      at least a monthly basis, to include, at a minimum, the      following: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (i)    | a      certificate of deposit maturity schedule, including separate line items      for brokered deposits and uninsured deposits, depicting maturities on a      weekly basis for the next two months and monthly for the following four      months, which schedule shall be updated at leastweekly; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                  |

|   | (ii)   | a      schedule of all funding obligations, including money market accounts,      unfunded loan commitments, outstanding lines of credit and outstanding      letters of credit, showing the obligations that can be drawn immediately,      and on a weekly basis for the next two months and monthly for the      following four months, which schedule shall be prepared and updated at      least weekly; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                          |

|   | (iii)  | a      listing of funding sources, prepared and updated on a weekly basis for the      next two months and monthly for the following four months, including      federal funds sold; unpledged assets and assets available for sale; and      borrowing lines by lender, including original amount, remaining      availability, type and book value of collateral pledged, terms, and      maturity date, if applicable. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                      |

|   | (iv)   | a      monthly sources and uses of funds report for a minimum period of six      months, updated monthly, which reflects known and projected changes in      asset and liability accounts, and the assumptions used in developing the      projections.  Such reports shall include, at a      minimum: |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                              |

|   | 1. | the      funding obligations and sources required by (b) and (c) of this      paragraph; |
|--------|----|------------------------------------------------------------------------------------------|

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|   | 2.     | projected      additional funding sources, including loan payments, loan      sales/participations, or deposit increases; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                          |

|   | 3.     | projected      additional funding requirements from a reduction in deposit accounts      including uninsured and brokered deposits, inability to acquire federal      funds purchased, or availability limitations or reductions associated with      borrowing relationships. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                           |

|   | (c)    | A      contingency funding plan that, on a monthly basis, forecasts funding      needs, and funding sources under different stress scenarios which      represent management's best estimate of balance sheet changes that may      result from a liquidity or credit event.  The contingency      funding plan shall include: |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                     |

|   | (i)    | specific      plans detailing how the Bank will comply with restrictions or requirements      set forth in this Order and 12 U.S.C. §1831o, including the      restrictions against brokered deposits in 12 C.F.R. §337.6 (which      plans may be subject to revision as may be appropriate upon the adoption,      if any, of currently-proposed changes to 12  C.F.R.337.6); |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                |

|   | (ii)   | the      preparation of reports which identify and quantify all sources of funding      and funding obligations under best case and worst case scenarios,      including asset funding, liability funding and off-balance sheet funding;      and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                              |

|   | (iii) | procedures      which ensure that the Bank's contingency funding practices are consistent      with the Board's guidance and risktolerances. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a)    | a      description of the types of credit information required from borrowers and      guarantors, including (but not limited to) annual audited statements,      interim financial statements, personal financial statements, and tax      returns with supporting schedules; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                           |

|   | (b)    | procedures      that require any extension of credit (new, maturity extension, or renewal)      is made only after obtaining and validating current credit information      about the borrower and any guarantor sufficient to fully assess and      analyze the borrower’s and guarantor’s cash flow, debt service      requirements, contingent liabilities, and global liquidity condition, and      only after the credit officer prepares a documented credit      analysis; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

|   | (c) | procedures      that require any extension of credit (new, maturity extension, or renewal)      is made only after obtaining and documenting the current valuation of any      supporting collateral, and that reasonable limits are established on      credit advances against collateral, based on a consideration of (but not      limited to) a realistic assessment of the value of collateral, the ratio      of loan to value, and overall debt service  requirements; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d)    | procedures      and controls to periodically verify the existence and lien position of      collateral; |
|--------|--------|---------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                    |

|   | (e)    | procedures      to ensure that loans made for the purpose of constructing or developing      real estate include (but are not limited to) requirements    to: |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                          |

|   | (i)    | obtain      and evaluate detailed project plans; detailed project budget; time frames      for project completion; detailed market analysis; and sales projections,      including projected absorption rates; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                           |

|   | (ii)   | conduct      stress testing of significant project and lending; and |
|--------|--------|---------------------------------------------------------------------|
|   |   |                                                                |

|   | (iii)  | obtain      current documentation sufficient to support a detailed analysis of the      financial condition of borrowers and significant    guarantors. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                    |

|   | (f)    | a      requirement that borrowers and/or guarantors maintain any collateral      margins established in the credit approval process; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                 |

|   | (g)    | procedures      that prohibit the capitalization of accrued interest on any loan renewal      or extension; |
|--------|--------|-------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                        |

|   | (h)    | procedures      that prohibit, on any loan renewal, extension or modification, the      establishment of an interest reserve using the proceeds of any Bank loan      to the same borrower or guarantor; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                     |

|   | (i)    | procedures      to ensure that all exceptions to the credit policy shall be clearly      documented on the loan offering sheet, problem loan report, and other MIS;      and approved by the Board or a committee thereof before the loan is funded      or renewed; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                 |

|   | (j) | credit      risk rating definitions consistent with applicable regulatory      guidance; |
|--------|-----|------------------------------------------------------------------------------------------|

----

|   | (k)    | procedures      for early problem loan identification, to ensure that credits are      accurately risk rated at least monthly; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                               |

|   | (l) | prudent      lending and approval limits for lending officers that are commensurate      with their experience and qualifications, and that prohibit combining      individual lending officers’ lending authority to increase      limits. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a)    | where      the loan’s appraisal was found to violate 12 C.F.R. Part 34;      or |
|--------|--------|--------------------------------------------------------------------------------------------|
|   |   |                                                                                       |

|   | (b)    | where      the loan was criticized in the most recent ROE or by the Bank's internal      or external loan review and the most recent independent appraisal is more      than twelve (12) months old; or |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                    |

|   | (c) | where      the borrower has failed to comply with the contractual terms of the loan      agreement and the loan officer’s analysis of current financial information      does not support the ongoing ability of the borrower or guarantor(s) to      perform in accordance with the contractual terms of the loan agreement and      the most recent independent appraisal is more than twelve (12) months      old. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | performed      in accordance with 12 C.F.R. Part34; |
|--------|-----|-----------------------------------------------------|

|   |   |                                                                                                                                                                                                                           |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b)    | consistent      with the guidance in OCC Bulletin 2005-6, "Appraisal Regulations and the      Interagency Statement on Independent Appraisal and Evaluation Functions:      Frequently Asked Questions" (March 22, 2005);  and |

|   |   |                                                                                                                      |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|
|   | (c)    | consistent      with OCC Advisory Letter 2003-9, "Independent Appraisal and Evaluation      Function" (October 28, 2003). |

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|   | (a)    | detail      the valuation analysis and accounting for each OREO property, including      the appraisal and all supporting documentation; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                     |

|   | (b)    | contain      an analysis of the OREO property, which compares the cost to carry against      the financial benefits of near term sale; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                   |

|   | (c)    | detail      the marketing strategy and targeted time frames for disposing of each OREO      property; |
|--------|--------|-------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                  |

|   | (d)    | identify      the Bank officer responsible for managing and authorizing transactions      relating to each OREO property; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                      |

|   | (e)    | establish      procedures to require periodic market valuations of each property, and the      methodology to be used; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                   |

|   | (f)    | establish      targeted write-downs at periodic intervals if marketing strategies are      unsuccessful; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                         |

|   | (g) | provide      for reports to the Board on the status of each OREO property and its      disposition, on at least a monthlybasis. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | policy      guidelines and an overall CRE and C&D lending strategy, addressing the      level and nature of CRE and C&D exposures acceptable to the      institution and setting concentration limits, including limits on      commitments to individual borrowers and appropriate sub-limits (for      example, by property types); |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | procedures      and controls to monitor compliance with the Bank’s lending policies and      the Strategic Plan; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | (c) | procedures      to identify and quantify the nature and level of risk presented by CRE and      C&D concentrations, including review of reports describing changes in      conditions in the Bank’s CRE and C&D  markets; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | procedures      to periodically review and revise, as appropriate, CRE and C&D risk      exposure limits and sub-limits to conform to any changes in the      institution’s strategies and to respond to changes in market      conditions; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | periodic      portfolio-level stress tests or sensitivity analysis to quantify the      impact of changing economic conditions on asset quality, earnings, and      capital; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | ongoing      market analyses for the various property types and geographic markets      represented in its portfolio; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------|

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|   | (g) | appropriate      strategies for managing CRE and C&D concentration levels, including a      contingency plan to reduce or mitigate concentrations in the event of      adverse CRE or C&D market conditions;and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | periodic      reports to the Board, to include the following, as      appropriate: |
|--------|-----|------------------------------------------------------------------------------------|

|   | (i)    | a      summary of concentration levels, by type and subtype; |
|--------|--------|--------------------------------------------------------------|
|   |   |                                                         |

|   | (ii)   | a      synopsis of the Bank’s market analysis; |
|--------|--------|------------------------------------------------------|
|   |   |                                                 |

|   | (iii)  | a      discussion of recommended strategy (for example, revise limits or change      underwriting criteria) when concentrations approach or exceed      Board-approved limits; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                           |

|   | (iv) | a      synopsis of changes in risk levels by concentration type and subtype, with      discussion of recommended changes in credit administration procedures (for      example, underwriting practices, risk rating, monitoring, and      training). |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a)    | documenting      the specific reason or purpose for the extension of  credit; |
|--------|--------|-------------------------------------------------------------------------------|
|   |   |                                                                          |

|   | (b)    | identifying      the expected source of repayment in writing; |
|--------|--------|---------------------------------------------------------------|
|   |   |                                                          |

|   | (c)    | structuring      the repayment terms to coincide with the expected source of      repayment; |
|--------|--------|----------------------------------------------------------------------------------------------|
|   |   |                                                                                         |

|   | (d)    | documenting,      with adequate supporting material, the value of collateral and properly      perfecting the Bank's lien on it where applicable; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                  |

|   | (e) | obtaining      and analyzing current and complete credit information, including cash flow      analysis, where loans are to be repaid from operations and global cash      flow analysis, where loan repayment is expected from other sources such as      Guarantors; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (a)    | conclusions      regarding the overall quality of the loan and lease      portfolios; |
|--------|--------|---------------------------------------------------------------------------------------|
|   |   |                                                                                  |

|   | (b)    | the      identification, type, rating, and amount of problem loans and      leases; |
|--------|--------|-------------------------------------------------------------------------------------|
|   |   |                                                                                |

|   | (c)    | the      identification and amount of delinquent loans and  leases; |
|--------|--------|---------------------------------------------------------------------|
|   |   |                                                                |

|   | (d)    | credit      and collateral documentation exceptions; |
|--------|--------|------------------------------------------------------|
|   |   |                                                 |

|   | (e)    | loans      meeting the criteria for nonaccrual status; |
|--------|--------|--------------------------------------------------------|
|   |   |                                                   |

|   | (f)    | the      identity of the loan officer of each loan reported in accordance with      subparagraphs (b) through (e); |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                               |

|   | (g) | the      identification and status of credit-related violations of law, rule, or      regulation; |
|--------|-----|---------------------------------------------------------------------------------------------------|

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|   | (h) | concentrations      of credit; |
|--------|-----|--------------------------------|

|   |   |                                                                                                                                           |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (i)    | loans      and leases to the directors, executive officers, and principal      shareholders of the Bank and to their related interests;    and |
|   |   |                                                                                                                                           |

|   | (j)    | loans      and leases in nonconformance with the Bank's lending and leasing policies,      and exceptions to the Bank’s lending and leasing  policies. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                         |

|   |   |                                 |
|--------|--------|--------------------------------------|
|   | (a)    | internal      risk ratings of loans; |

|   |   |                                               |
|--------|--------|----------------------------------------------------|
|   | (b)    | results      of the Bank's independent loanreview; |

|   |   |                                                                                                                                                                                                                                                  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (c)    | criteria      for determining which loans will be reviewed under Financial Accounting      Standard ("FAS") 114, how impairment will be determined, and procedures to      ensure that the analysis of loans complies with FAS 114      requirements; |
|   |   |                                                                                                                                                                                                                                                  |

|   | (d) | criteria      for determining FAS 5 loan pools and an analysis of those loan      pools; |
|--------|-----|------------------------------------------------------------------------------------------|

----

|   | (e)    | recognition      of non-accrual loans in conformance with generally accepted accounting      principles (“GAAP”) and regulatory guidance; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                  |

|   | (f)    | loan      loss experience; |
|--------|--------|----------------------------|
|   |   |                       |

|   | (g)    | trends      of delinquent and non-accrual loans; |
|--------|--------|--------------------------------------------------|
|   |   |                                             |

|   | (h)    | concentrations      of credit in the Bank; and |
|--------|--------|------------------------------------------------|
|   |   |                                           |

|   | (i)    | present      and projected economic and market conditions. |
|--------|--------|------------------------------------------------------------|
|   |   |                                                       |

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|   | (a)    | the      origination date and any renewal or extension dates, amount, purpose of      the loan, and the originating and current loan  officer(s); |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                              |

|   | (b)    | the      expected primary and secondary sources of repayment, and an analysis of      the adequacy of the repayment source; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                        |

|   | (c)    | the      appraised value of supporting collateral and the position of the Bank's      lien on such collateral, where applicable, as well as other necessary      documentation to support the current collateral  valuation; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                         |

|   | (d)    | an      analysis of current and complete credit information, including cash flow      analysis where loans are to be repaid from operations; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                         |

|   | (e)    | results      of any FAS 114 impairment analysis; |
|--------|--------|--------------------------------------------------|
|   |   |                                             |

|   | (f)    | significant      developments, including a discussion of changes since the prior CAR, if      any; and |
|--------|--------|--------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                   |

|   | (g)    | the      proposed action to eliminate the basis of criticism and the time frame for      its accomplishment, including an appropriate exit  strategy. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                  |

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|   | (a) | the      Board, or a designated committee thereof, finds that the extension of      additional credit is necessary to promote the best interests of the Bank      and that prior to renewing, extending, or capitalizing any additional      credit, a majority of the full Board (or designated committee) approves      the credit extension and records, in writing, why such extension is      necessary to promote the best interests of the Bank.  A copy of      the findings and approval of the Board or designated committee shall be      maintained in the credit file of the affected borrower and made available      for review by National BankExaminers; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |                                                                                                                                                                                                                                                  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b)    | the      Bank performs a written credit and collateral analysis as required by      paragraph (1)(d) of this Article and, if necessary, the proposed action      referred to in paragraph (1)(g) of this Article is revised, as      appropriate; and |
|   |   |                                                                                                                                                                                                                                                  |

|   | (c)    | the      Board's formal plan to collect or strengthen the criticized asset will not      be compromised by the extension of additional credit. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                           |

|   | (a) | the      establishment of adequate management reports on which to base sound      interest rate risk managementdecisions; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------|

|   |   |                                                                                                               |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|
|   | (b)    | establishment      and guidance of the Bank’s strategic direction and tolerance for interest      rate risk; |
|   |   |                                                                                                               |

|   | (c) | implementation      of effective tools to measure and monitor the Bank’s performance and      overall interest rate riskprofile; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d) | employment      of competent personnel to manage interest rate  risk; |
|--------|-----|-----------------------------------------------------------------------|

|   |   |                                                                                                                                    |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
|   | (e)    | prudent      limits on the nature and amount of interest rate risk that can be taken,      and strategies to reduce excessive risk; and |
|   |   |                                                                                                                                    |

|   | (f)    | periodic      review of the Bank's adherence to the program. |
|--------|--------|--------------------------------------------------------------|
|   |   |                                                         |

----

|   |   |                                                                                                                                                                              |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (a)    | authorize      and adopt such actions on behalf of the Bank as may be necessary for the      Bank to perform its obligations and undertakings under the terms of this      Order; |
|   |   |                                                                                                                                                                              |

|   | (b) | require      the timely reporting by Bank management of such actions directed by the      Board to be taken under the terms of thisOrder; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |                                                                                                |
|--------|--------|-----------------------------------------------------------------------------------------------------|
|   | (c)    | follow      up on any non-compliance with such actions in a timely and appropriate      manner; and |
|   |   |                                                                                                |

|   | (d)    | require      corrective action be taken in a timely manner of any non-compliance with      such actions. |
|--------|--------|----------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                     |

----

| /s/      Ronald G. Schneck     |
|----------------------------------------------------|
| Ronald      G. Schneck                             |
| Director      for SpecialSupervision               |

----

| In      the Matter of:First      National Bank of The SouthSpartanburg,      South Carolina | ))) | AA-EC-2009-20  |
|---------------------------------------------------------------------------------------------|-----|---------------------|

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|   | (a) | the      Bank is not an “eligible bank” pursuant to 12 C.F.R. § 5.3(g)(4) for the      purposes of 12 C.F.R. Part 5 regarding rules, policies and procedures for      corporate activities, and is not an “eligible Bank” pursuant to 12 C.F.R.      § 24.2(e)(4) for the purposes of 12 C.F.R. Part 24 regarding public      welfare investments, unless, in either case, the Bank is informed in      writing by the Comptroller; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |                                                                                                                                                                                                                                                                               |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b)    | the      Bank is subject to the limitation of 12 C.F.R. § 5.51(c)(6)(ii) for the      purposes of 12 C.F.R. § 5.51 requiring OCC approval of a change in      directors and senior executive officers, unless otherwise informed in      writing by the Comptroller; and |
|   |   |                                                                                                                                                                                                                                                                               |

|   | (c) | the      Bank is subject to the limitation on golden parachute and indemnification      payments provided by 12 C.F.R. § 59.1(f)(1)(ii)(C) and 12 C.F.R. §      5.51(c)(6)(ii), unless otherwise informed in writing by the      Comptroller. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   |                                                                                          |
|--------|--------|-----------------------------------------------------------------------------------------------|
|   | (a)    | the      issuance of a Notice of Charges pursuant to 12 U.S.C.      § 1818(b); |

|   |   |                                                                                            |
|--------|--------|-------------------------------------------------------------------------------------------------|
|   | (b)    | any      and all procedural rights available in connection with the issuance of the      Order; |
|   |   |                                                                                            |

|   | (c) | all      rights to a hearing and a final agency decision pursuant to 12 U.S.C.      § 1818(i) or 12 C.F.R. Part19; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|   |   |                                                                                         |
|--------|--------|----------------------------------------------------------------------------------------------|
|   | (d)    | all      rights to seek any type of administrative or judicial review of the Order;      and |
|   |   |                                                                                         |

|   | (e) | any      and all rights to challenge or contest the validity of the      Order. |
|--------|-----|---------------------------------------------------------------------------------|

| /s/ Ronald G. Schneck                                        |   | April 27, 2009 |
|-------------------------------------------------------------------|--------|----------------|
| Ronald      G. SchneckDirector,      Special Supervision Division |   | Date           |

----

| /s/      C. Dan Adams           |   | April      27, 2009 |
|---------------------------------|--------|---------------------|
| C.      Dan Adams               |   | Date                |
|                            |   |                |
| /s/      Mellnee G. Buchheit    |   | April      27, 2009 |
| Mellnee      G. Buchheit        |   | Date                |
|                            |   |                |
| /s/      Jerry Calvert          |   | April      27, 2009 |
| Jerry      Calvert              |   | Date                |
|                            |   |                |
| /s/      Martha C. Chapman      |   | April      27, 2009 |
| Martha      C. Chapman          |   | Date                |
|                            |   |                |
| /s/      W. Russel Floyd, Jr.   |   | April      27, 2009 |
| W.      Russel Floyd, Jr.       |   | Date                |
|                            |   |                |
| /s/      C. Tyrone Gilmore, Sr. |   | April      27, 2009 |
| C.      Tyrone Gilmore, Sr.     |   | Date                |
|                            |   |                |
| /s/      I.S. Leevy Johnson     |   | April      27, 2009 |
| I.S.      Leevy Johnson         |   | Date                |
|                            |   |                |
| /s/      Norman F. Pulliam      |   | April      27, 2009 |
| Norman      F. Pulliam          |   | Date                |
|                            |   |                |
| /s/      Joel A. Smith, III     |   | April      27, 2009 |
| Joel      A. Smith, III         |   | Date                |
|                            |   |                |
| /s/      Robert E. Staton       |   | April      27, 2009 |
| Robert      E. Staton           |   | Date                |
|                            |   |                |
| /s/      William H. Stern       |   | April      27, 2009 |
| William      H. Stern           |   | Date                |
|                            |   |                |
| /s/      Peter E. Weisman       |   | April      27, 2009 |
| Peter      E. Weisman           |   | Date                |
|                            |   |                |
| /s/      Donald Wildman         |   | April      27, 2009 |
| Donald      Wildman             |   | Date                |
|                            |   |                |
| /s/      Coleman Young, Jr.     |   | April      27, 2009 |
| Coleman      Young, Jr.         |   | Date                |

----