| A. | 12      CFR § 560.160(a)(1) (classify assets in accordance with regulatory      requirements); |
|----|-----------------------------------------------------------------------------------------------------|

| B. | 12      CFR § 560.160(b) (establish adequate allowances for loan and lease losses      (ALLL)); |
|----|------------------------------------------------------------------------------------------------------|

|         C.  | 12      CFR § 560.170(a) (establish and maintain adequate loan documentation to      allow the Bank to appropriately assess lending risks and make informed      lending decisions); |
|----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D.  | 12      CFR § 560.170(b) (establish and maintain loan documentation to allow the      Bank to identify all sources of repayment and to assess the ability of the      borrower(s) and any guarantor(s) to repay the indebtedness in a timely      manner); |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| E. | 12      CFR § 560.170(d) (properly administer and monitor the Bank’s      loans); |
|----|----------------------------------------------------------------------------------------------|

| F. | 12      CFR § 560.170(e) (obtain adequate loan documentation in light of the size      and complexity of some of the Bank’sloans); |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------|

| G. | 12      CFR § 562.1(b)(2) and § 562.2(b) (follow regulatory requirements regarding      the reporting of classified assets, allowance for loan and lease losses      (ALLL), and specific valuation allowances (SVAs) on its thrift financial      reports (TFRs); |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| H. | 12      CFR § 564.4(a) and (c) (conform appraisals to generally accepted appraisal      standards and analyze and report appropriate deductions and      discounts); |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| I. | 12      CFR § 564.8 (management’s review of appraisals to ensure that appraisers      follow the required procedures); |
|----|-----------------------------------------------------------------------------------------------------------------------------------|

| J. | 12      CFR § 229.10(c)(1)(i), § 229.13(b), and § 229.13(e)(1) (proper deposit      hold requirements); |
|----|------------------------------------------------------------------------------------------------------------------------|

| K. | 12      CFR § 226.18(n) and (o) ( disclosure form  requirements); |
|----|------------------------------------------------------------------------|

| L. | 24      CFR § 3500.8(b) ( HUD-1 disclosure form  requirements); |
|----|----------------------------------------------------------------------|

| M. | Appendix      to 12 CFR § 560.101 (adequately monitor loans with high loan-to value      ratios); and |
|----|------------------------------------------------------------------------------------------------------------|

| N. | Interagency      Guidelines Establishing Standards for Safety and Soundness, Appendix A to      12 CFR Part 570 (conform to the safety and soundness guidelines with      respect to (i) operational and managerial standards (Section II.A), (ii)      loan documentation (Section II.C), (iii) credit underwriting (Section      II.D), (iv) asset quality (Section II.G), and (v) compensation programs      that could lead to material financial loss (Sections II.I and      III). |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A.   | Effective      immediately, the Bank shall continue to maintain a core capital ratio of      8.50 percent and a risk-based capital ratio of 11.00    percent. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B.   | Within      45 calendar days of the end of each calendar quarter, beginning with the      quarter ending December 31, 2008, the Board shall review a report (Capital      Report), which shall reflect the Bank’s regulatory capital for the      immediately preceding quarter end, from the Bank’s management      that: |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | sets      forth the Bank’s capital ratios; |
|-----------------|--------------------------------------------------|

|        (ii)   | addresses      the steps that the Bank will take to maintain the capital requirements set      forth in Paragraph 2A hereof;and |
|------------------------------|---------------------------------------------------------------------------------------------------------------------------------|

----

|        (iii)   | summarizes      its other capital raising activities including, but not limited to,      requests for capital infusions from its holding company, TierOne      Corporation, Lincoln, Nebraska (Holding Company); contacts with investment      bankers and parties undertaking due diligence; contacts with third parties      regarding the purchase of debt and equity securities;  the      receipt of offers to engage in a merger with, or acquisition of, the Bank;      the execution of letters of intent, a merger agreement, or an investment      agreement by the Bank or the Holding Company; or the termination of      negotiations with parties considering a merger of the Bank, the      acquisition of the Bank, the purchase of subordinated debt, or the      acquisition of five (5) percent or more of common or preferred stock      of  the Holding Company. |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        C.   | The      Board’s review of the matters required by this Paragraph shall be fully      detailed in the Board meeting minutes.  Within 15 calendar days      after the Board meeting, the Bank shall submit a copy of management’s      Capital Report to OTS. |
|----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A.   | By      January 31, 2009, the Bank shall  submit to OTS the 2009-2011      Corporate Strategic Plan (Strategic Plan) adopted by the Board for OTS’s      review and a written notice of non-objection.  The Strategic      Plan shall specifically address the Bank’s operations with or without the      Bank’s participation in any federal government program for which the Bank      is specifically eligible. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B.   | The      Board shall review the Strategic Plan at least semi-annually and make      appropriate amendments. At least 30 days prior to the implementation of an      amendment to the Strategic Plan or the adoption of a revised Strategic      Plan, the Board shall submit the revised or amended Strategic Plan,      including the pro forma financial statements and supporting assumptions,      to OTS for a notice of prior written non-objection, unless OTS waives such      time period. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C.   | The      Board shall direct management to implement the Strategic Plan, including      any amendment thereto, after receiving a written notice of non-objection      from OTS. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D.   | By      January 31, 2009, the Board shall approve and submit to OTS pro forma      financial statements for calendar years 2009 through 2011 that: (i)      reflect the implementation of the Strategic Plan; (ii) set forth quarterly      projections, utilizing TFR reporting categories and line items; (iii) set      forth balance sheet composition, operating projections, and core and      risk-based capital ratios; and (iv) are based on realistic and      well-supported assumptions.  The submission to OTS shall also      include a detailed description of all assumptions used to prepare the pro      forma statements, including, but not limited to: (i) the assumed interest      rate scenarios; (ii) assumptions used for non-interest income and      non-interest expense; (iii) assumptions for forecasting loan losses or      charge-offs and the disposition of problem assets; (iv) assumptions used      for loan origination rates, taking into consideration current national and      regional economic conditions; (v) assumptions used to determine the      appropriate portfolio mix, including the consideration of credit,      liquidity, interest rate, operational, reputation, and compliance risks;      (vi) assumptions for the start-up costs, volumes,  and |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | expected      returns on any new branches or new products or services; and (vii)      assumptions used to measure the Bank’s liquidity position, including, but      not limited to, the solicitation of deposits in accordance with 12 CFR §      337.6(a)(5)(iii), and  its borrowing capacities at, and      collateral requirements of the Federal Home Loan Bank and the Federal      Reserve Bank. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| E.   | Within      60 days of the end of each calendar quarter, beginning with the quarter      ending March 31, 2009, management shall prepare and submit to the Board,      with a copy to OTS, quarterly variance reports on the Bank’s compliance      with the Strategic Plan and the Bank’s operating results in comparison      with its pro forma financial statements.  Such variance reports      shall: (i) compare actual operating results with projected results; (ii)      compare actual balance sheet composition with projections; (iii) discuss      any changes required in the Bank’s business strategy due to a change in      market conditions or other factors; and (iv) include detailed explanations      of any material deviations from the Strategic Plan or the pro forma      financial statements and the corrective actions or measures implemented,      proposed, or under consideration to correct any material deviation. The      Board, on at least a quarterly basis, shall also review and address the      external and internal risks that may affect the Bank’s ability to      implement the Strategic Plan.  This review shall include, but      not be limited to, adverse scenarios relating to asset or liability mixes,      interest rates, staffing levels and expertise, operating expenses,      marketing costs, and economic conditions in the markets where the Bank is      operating. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| F.   | A      deviation shall be considered material under this Paragraph 3 when the      Bank engages in (i) any material activity, business line, or operation      that is inconsistent with the Strategic Plan or (ii) any new activity,      business line, or operation that is inconsistent with the Strategic Plan      and the corresponding pro forma financial statements.  A      deviation also shall be considered material if the Bank (i) exceeds the      level of any activity or growth contemplated in the pro forma financial      statements by more than 10 percent, or (ii) falls below or fails to meet      targets established in the pro forma financial statements by more than 10      percent. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| G.   | Notwithstanding      the foregoing, none of the following deviations shall be deemed to be      material: (i) a change of 10 percent or less in any balance sheet category      or (ii) a change of 10 percent or less in any income statement      category.  For purposes of this Paragraph, a balance sheet      category is defined as cash, investments, 1-4 family permanent mortgage      loans, consumer loans, nonhomogeneous loans, mortgage-backed securities,      other investment securities,  fixed assets, retail deposits,      wholesale deposits, advances from the Federal Home Loan Bank, other      borrowed money, other liabilities, and equity capital.  For      purposes of this Paragraph, an income statement category is defined as      interest income, interest expense, noninterest income, noninterest      expense, and extraordinary items.  In addition, a change of 20      percent or less in net income or 20 percent or less in the amount of real      estate owned shall not be deemed to be material for purposes of Paragraph      3 hereof. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| H.   | The      Board’s review of the Strategic Plan, pro forma financial statements, and      related variance reports shall be fully documented in the Board      minutes. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| A.   | The      Bank shall not accept brokered deposits, including deposits covered by 12      CFR § 337.6(a)(5) except in compliance with 12 CFR § 337.6(b)(2), unless a      waiver is granted by the Federal Deposit Insurance Corporation      (FDIC). |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B.   | The      Bank shall provide to OTS:  (i) written notice if the Bank      requests a waiver from the FDIC, and (ii) a copy of the FDIC’s      correspondence indicating its disposition of any request for such a      waiver. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A.   | The      Bank shall not declare or pay a capital distribution, as defined in 12 CFR      § 563.141, without the written prior approval of  OTS. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| B.   | The      Bank shall not declare or submit an application to make a capital      distribution unless at the time of such declaration or application (i) the      Bank has or exceeds a core capital ratio of 8.50 percent and a risk-based      capital ratio of 11.00 percent, and (ii) the Bank can demonstrate that it      will have or exceed these core capital and risk-based capital ratios after      the payment of the capitaldistribution. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A.   | By      January 31, 2009, the Board shall adopt a plan (CRE Stress Test Plan) for      the commencement of the stress testing of its commercial real estate      portfolio in accordance with the guidelines in OTS CEO Letter No. 252,      entitled “Guidance on Commercial Real Estate (CRE) Concentration Risks”,      and dated December 14, 2006 (CEO Letter No. 252).  The Plan      shall, at a minimum, address thefollowing: |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | Completion      of portfolio level stress tests or sensitivity analyses to quantify the      impact of changing economic conditions, including, but not limited to      those affecting certain relevant industries or sectors on asset quality,      earnings, and capital; and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | Revisions      to the Bank’s commercial real estate loan policy and the internal asset      review function, to the extent necessary, to reflect the results of the      risk analysis and the guidelines set forth in CEO Letter No.      252. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B.   | By      January 31, 2009, the Board shall submit to OTS the CRE Stress Test      Plan. |
|----------------|----------------------------------------------------------------------------------------|

----

| A.   | By      December 31, 2008, the Board shall adopt and submit to OTS a certified      resolution stating that: (i) management reviewed the loan portfolio and      identified all high loan-to-value loans, as defined in Appendix to 12 CFR      § 560.101, and presented the list of such loans to the Board for its      review, and (ii) the Board will require management to submit an accurate      list of high loan-to-value loans to the Board for review each      quarter. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B.   | By      December 31, 2008, the Board shall adopt and submit to OTS a written plan      for the establishment of a system of internal controls, including the      designation of responsible personnel and the provision of quarterly      reports to the Board, to ensure that the Bank complies with the Appendix      to 12 CFR  § 560.101. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A.   | Effective      immediately, the Bank shall establish reserves for losses on impaired      loans either by establishing a specific valuation allowance or recording a      charge-off in accordance with SFAS114. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B.   | By      November 30, 2008, the Board shall adopt a system of internal controls to      verify that management is timely recognizing losses on impaired loans in      accordance with SFAS 114 and submit documentation of the implementation of      such system to OTS. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C.   | By      October 31, 2008, the Board shall review the requirements and guidelines      set forth in: (I) 12 CFR § 560.160, (ii) Section 260 (Classification of      Assets) of the OTS Examination      Handbook, (iii) Section II.G of Appendix A to 12 CFR Part 570, and      (iv) OTS CEO Letter No. 250, dated December 13, 2006, and entitled      “Interagency Policy Statement on the Allowance for Loan and Lease Losses      and Questions and Answers on Accounting for Loan and Lease Losses” (CEO      Letter No. 250).  By December 31, 2008, the Board, by a      certified resolution, shall direct enhancements to the Bank’s asset      classification process to ensure compliance with 12 CFR § 560.160, Section      260 (Classification of Assets) of the OTS Examination      Handbook, Section II.G of Appendix A to 12 CFR Part 570, OTS CEO      Letter No. 250, and generally accepted accounting principles, including      but not limited to the requirements of SFAS Nos. 5 and 114, with respect      to troubled debt restructuring.  Within five (5) business days      of the adoption of the resolution, the Board shall submit a copy of the      certified board resolution to OTS. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D.   | By      the forty-fifth (45th)      calendar day after the end of each calendar quarter, beginning with the      quarter ending March,  2009, the Board shall      review  and submit to OTS a quarterly report (ALLL Report)      analyzing the adequacy of the Bank’s ALLL  based on the factors      noted in: (I) the Bank’s asset classification policy, (ii) 12 CFR §      560.160, (iii) Section 261 (Adequacy of Valuation Allowances) of the OTS Examination      Handbook, (iv) Section II.G of Appendix A to 12 CFR Part 570, (v)      OTS CEO Letter No. 250, and  (vi)  generally |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | accepted      accounting principles. The ALLL Report shall set forth all assumptions      used to determine the adequacy of the ALLL.  The Board’s review      of the ALLL Report and approval of the adequacy of the Bank’s ALLL shall      be fully documented in the Board meeting  minutes. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A.   | By      December 31, 2008, the Board shall adopt and submit to OTS for written      notice of non-objection a revised written Internal Asset Review (IAR)      Program that is consistent with: (i) CEO Letters No. 140, dated May 31,      2001 and entitled “Effective Internal Asset Review Systems”; (ii) CEO      Letter No. 250; and (iii) CEO Letter No. 280, dated September 17, 2008,      and entitled “Documentation and Underwriting Standards”.  The      IAR Program shall: (i) assess the overall asset quality; (ii) determine      problem assets; (iii) identify weaknesses in the Bank’s loan underwriting,      documentation, and administration policies and procedures; (iv) violations      of applicable regulations or the Bank’s policies; (v) assess the adherence      to internal loan policies; (vi) provide information in determining the      adequacy of the ALLL; (vii) identify relevant trends that affect the      collectability of the portfolio; and (viii) review the lending personnel’s      activities. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B.   | The      IAR Program shall be conducted by either a qualified independent third      party consultant and/or an adequately staffed department of qualified and      independent personnel. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C.   | The      IAR Program shall: (i) set forth the frequency, scope, and depth of the      reviews; (ii) require a review by senior executive management and the      Board of the IAR findings; and (iii) require the oversight of follow-up      corrective actions by a committee composed of Outside Directors (as      defined in Paragraph 19C hereof) or the Audit      Committee.  Management shall not change or alter the findings of      an IAR report. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A.   | By      December 31, 2008, the Board shall adopt and submit to OTS for notice of      written non-objection a plan (Underwriting and      Documentation  Plan) to address the credit underwriting and      administration deficiencies noted in the exception sheets and the loan      review findings provided to management during the June 2, 2008      examination, including, but not limited to, the  following: |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        (i)   | Documentation      of disbursements and a review to determine whether the conditions for the      disbursements have been satisfied; |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | Preparation      of  progress inspection reports that fully document the      percentage of completion of development or construction activities, and      compliance with plans andspecifications; |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | Establishment      of procedures to appropriately monitor third-party inspectors or review      third-party inspection reports foraccuracy; |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

----

| (iv)   | Establishment      of procedures for the appropriate oversight of the construction budgeting      process, including the implementation of procedures to ensure the      prevention of the use of budgeted hard cost funds to enhance or replenish      the soft costs budget; |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | Review      of excessive front-end fees (soft costs) in construction loans paid to the      borrower for job organization and setup, general and administrative      expense, supervision, marketing, and undocumented contingencies to ensure      that they were commensurate with the work  performed; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vi)   | Prohibition      of the payment of interest due to the Bank from loan proceeds, when an      appraised loss exists; |
|------------------|---------------------------------------------------------------------------------------------------------------------|

| (vii)   | Establishment      of procedures to appropriately analyze periodic financial and operating      information; |
|-------------------|--------------------------------------------------------------------------------------------------------------|

| (viii)   | Establishment      of procedures to  maintain current financial data on borrowers      and guarantors; |
|--------------------|------------------------------------------------------------------------------------------------------------------|

| (ix)   | Establishment      of procedures to require current collateral property lease      agreements; |
|------------------|------------------------------------------------------------------------------------------------|

| (x)   | Performance      of global analyses and analyses of contingent liabilities for certain      borrowers/guarantors; |
|-----------------|-------------------------------------------------------------------------------------------------------------------|

| (xi)   | Establishment      of procedures that require the reliance  upon appraisals based      on gross sales valuations instead of discounted cash flow valuations for      credit underwriting and for valuation of certain projects where      development or construction hasceased; |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (xii)   | Establishment      of procedures that require current and well-supported appraisals on      applicable loans; |
|-------------------|---------------------------------------------------------------------------------------------------------------|

| (xiii)   | Establishment      of procedures that require appraisals to document (a) conclusions      regarding the reasonableness and (b) the existence      of  independent documented reviews in other    cases; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (xiv)   | Establishment      of procedures requiring the performance of internal loan      reviews; |
|-------------------|-------------------------------------------------------------------------------------------|

| (xv)   | Establishment      of procedures that require agreed-upon performance standards be satisfied      as a condition to pre-approved loanextensions; |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (xvi)   | Establishment      of procedures for the formal extension or modification ofmatured      loans; |
|-------------------|-------------------------------------------------------------------------------------------------|

----

| (xvii) | Establishment      of procedures to ensure that loan terms on the loan information systems      that are consistent with      the  terms  set  forth in the loan      documents; and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (xviii)   | Establishment      of procedures that require that any volume driven compensation program for      loan officers considers the asset quality of the loans in establishing the      level of compensation thereunder. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B.   | The      Board shall require monthly reports from a designated senior executive      officer regarding the implementation of the Underwriting and Documentation      Plan until each deficiency is resolved or the relevant activity is      terminated or ceased.  The Board’s review of these reports shall      be fully documented in the Board meeting  minutes. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A.   |  Management      t shall complete a comprehensive review of each nonhomogeneous loan or      loan relationship exceeding $1,000,000.  The review of      approximately 50% of such loans and loan relationships will be completed      by January 31, 2009, with the review of the remainder being completed by      March 31, 2009.  This evaluation, at a minimum, shall: (i)      identify significant loan underwriting, documentation, or administration      deficiencies, if any; (ii) set forth the most recent collateral or      appraisal valuations; (iii) determine the appropriate asset classification      category; (iv) effectively identify the  risks with respect to      the asset;  (v) identify whether the loan is impaired and, if      impaired, provide an estimate of the loan impairment; (vi) recommend any      required SVAs, charge-offs, or ALLL allocation; and (vii) provide a      resolution plan, if appropriate. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B.   | By      February 28, 2009, the Board shall review results of management’s loan      portfolio review completed by January 31, 2009 pursuant to Paragraph 12A      hereof, approve the resolution plans, and submit to OTS: (i) a certified      board resolution stating the loan review has been completed in accordance      with the requirements of this Paragraph, and (ii) a copy of a report      containing a summary of the findings of the comprehensive review and the      actions taken to address potential or actual losses, if any, on the loans.      By April 30, 2009, the Board shall review results of management’s loan      portfolio review completed by March 31, 2009 pursuant to Paragraph 12A      hereof, approve the resolution plans, and submit to OTS: (i) a certified      board resolution stating the loan review has been completed in accordance      with the requirements of this Paragraph, and (ii) a copy of a report      containing a summary of the findings of the comprehensive review and the      actions taken to address potential or actual losses, if any, on the      loans. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C.   | By      the sixtieth (60th) calendar      day after the close of each calendar quarter, commencing with the December      31, 2008 quarter, the Board shall review and submit to OTS a status report      from the Bank’s management on all nonhomogeneous special mention,      classified assets, and nonperforming assets that are $500,000 or greater      in amount.  The status reports, at a minimum, shall set forth:      (i) the date(s) of next payment due and the last payment made; (ii) the      amount of interest reserve remaining; (iii) the contractually required      debt service; (iv) most recent appraised value of the collateral      and  the date of this valuation; (v) the      borrower’s  and/or guarantor’s current financial condition at      least annually; (vi) the asset |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | classification      and any allocated allowances; (vii) the rationale for the classification;      and (viii) information regarding the  current status of the      asset.. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D.   | The      Board’s review of the quarterly problem asset report shall be fully      documented in the Board meetingminutes. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------|

| E.   | By      the sixtieth (60th)      calendar day after the close of each calendar quarter, commencing with the      December 31, 2008 quarter, the Board shall review and submit to OTS a      report from management on all delinquent loans categorized by the type of      loan and the geographic market or state.  The report also shall      delineate trends in delinquencies and set forth      any  recommendations whether a  modification of the      Bank’s Loan Concentration Policy adopted pursuant to Paragraph 7 hereof or      the Bank’s loan policies isappropriate. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A.   | By      February 28, 2009, the Outside Directors (as defined in Paragraph 19C)      shall prepare and submit to the Board a written report (Corporate      Governance Report)that  evaluates: |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | The      performance of the Bank’s senior executive officers that includes an      assessment of the responsibility and involvement of each senior executive      officer for, in the opinion of OTS, the violations and unsafe and unsound      practices set forth in the ROE; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | The      ability of the management team to effectively address the concerns      disclosed in the ROE and to operate the Bank in a safe and sound manner in      compliance with all applicable laws and regulations;  and |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | The      performance of the Board in overseeing the activities of senior executive      officers and the Bank’s compliance with applicable laws and regulations      and engagement in practices about which regulatory concerns were set forth      in the ROE. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B.   | Based      on the findings of the review, the Corporate Governance Report shall set      forth recommendations, if any, for improving the Board’s oversight and the      Bank’s compliance with applicable laws and regulations, safe and sound      practices, and its policies. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C.   | After      reviewing the findings of the Corporate Governance Report and by March 31,      2009, the Board shall submit to OTS, for review and written notice      of  non-objection, an acceptable written plan designed: (i) to      ensure management’s observance of sound lending and credit administration      practices and adherence to regulatory requirements for lending, asset      classification, maintenance of ALLL, and incentive compensation      (Compliance Oversight Plan); and (ii) to strengthen and improve the      Board’s oversight of the Bank’s operations, including, but not limited to,      its oversight of the Bank’s lending activities and senior executive      officers’ performance of their duties and  responsibilities. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| D.   | In      adopting the Compliance Oversight Plan, the Board shall consider: (i)      whether the Board should receive training on corporate governance,      oversight of lending and asset classification practices, and business      planning; (ii) whether any changes in management personnel and      management’s duties and responsibilities  are appropriate,      subject to the requirements of Paragraph 15 hereof; (iii) whether the      composition and the term of the charter of any Board Committee should be      revised and whether additional Board Committees should be formed to      enhance the Board’s oversight of the Bank’s operations; (iv) whether the      Bank’s compensation policy, including incentive compensation, should be      revised; and (v) whether the Bank’s  information systems should      be enhanced to ensure that comprehensive and accurate information is      available for the Board in its deliberations.  To be acceptable      to OTS, the Compliance Oversight Plan must (i) set forth specific actions      with corresponding due dates and (ii) assign an Outside Director (as      defined in Paragraph 19C) to monitor compliance with each corrective      action. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| E.   | The      Board’s review of the Corporate Governance Report shall be fully      documented in the Board meeting minutes.  The Bank shall submit      to OTS a copy of the Corporate Governance  Report. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| F.   | To      assist in the preparation of the Corporate Governance Report, the Outside      Directors may consider the utilization of the services of a qualified      third party consultant that is independent of management  (as      defined in Paragraph 19B) and acceptable to OTS pursuant to Paragraph 18      hereof. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| G.   | Immediately      following receipt of written notice of non-objection from OTS to the      Compliance Oversight Plan (with such revisions as may be required by OTS),      the Bank and its Board shall implement and adhere to the Compliance      Oversight Plan. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| H.   | Effective      immediately, the Board shall require Board minutes and Board Committee      minutes are complete and accurate descriptions of all matters presented      to, and discussed by the Board at all Board and Committee meetings, in      accordance with 12 CFR § 563.170(c).  Each Board and Committee      member shall ensure that the minutes clearly and accurately reflect his or      her actions, discussions, dissensions, abstentions, absences, presence,      and votes before approving the minutes.  The Board and Board      Committee members shall review and approve or modify the minutes of each      meeting at the next regular Board or Board Committee meeting and submit a      copy of such minutes to OTS within ten (10) business days after such      meeting. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14. |  Employment Contracts      and CompensationArrangements. |
|-----|---------------------------------------------------------------|

| A.   | Effective      immediately, the Bank shall not enter into, renew, extend, or revise any      contractual arrangement relating to compensation or benefits for any      senior executive officer or director of the institution, unless it first      provides OTS with not less than thirty (30) days prior written notice of      the proposed transaction. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| B.      . | Notwithstanding      the foregoing, the Bank may amend: (i) any compensation or benefit      arrangement which is subject to the provisions of Section 409A of the      Internal Revenue Code of 1986, as amended, by December 31, 2008, provided      such amendment is solely to achieve compliance with Section 409A or this      Agreement and will not result in an increase in the benefits due the      individual(s) subject to such compensation arrangement or (ii) any      tax-qualified benefit plan in order to comply with changes in applicable      law or regulations, in each case without the prior non-objection      of  OTS.  A copy of any such amendment adopted by the      Bank will be provided to the OTS with fifteen (15) days of the adoption of      such amendment. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C.   | Effective      immediately, the Bank’s notice to OTS shall include a copy of the proposed      employment contract or compensation arrangement, or a detailed, written      description of the compensation arrangement to be offered to such officer      or director, including all benefits and perquisites.  The Board      shall ensure that any contract, agreement, or arrangement submitted to OTS      fully complies with the requirements, to the extent applicable, of: (i) 12      CFR Part 359, (ii) 12 CFR § 563.39, (iii) 12 CFR § 563.161(b), (iv) the      guidelines set forth in Sections II.I and III of Appendix A to 12 CFR Part      570, and (v) Section 310 of the OTS Examination      Handbook. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D.   | By      February 28, 2009, the Board shall review the bonuses that they authorized      for executive officers in 2007 and provide to OTS a detailed written      analysis regarding the appropriateness of the bonuses in light of the      Bank’s significant asset quality problems and poor financial      performance.  The written report shall address: (i) the specific      factors considered by the Board, and (ii) whether the Board considered the      financial condition of the Bank; the combined value of all cash and      noncash benefits provided to the officer, and the involvement, if any, of      the officer with respect to any of the matters about which concerns were      raised in the ROE. |
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| E.   | Effective      immediately, the Board shall not increase the directors’ compensation for      attendance at Board and Committee meetings during the term of this      Agreement.  The Board shall review and determine the      appropriateness of management’s receipt of fees to attend Board and      Committee meetings, and at no time shall such fees exceed what was set      forth in the ROE.  By January 31, 2009, the Board shall submit      to OTS the results of its review. |
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| F.   | Effective      immediately, the Board shall limit the directors’ remuneration      to  (i) no more than   $56,250 annually      (excluding therefrom the value (a) of the payment of life, health and      dental premiums (or the equivalent cash value thereof) as provided in      subclause (ii) hereof and (b) resulting from the vesting or exercise of      stock option and restricted stock awards granted prior to October 1, 2008)      and  (ii) the continued payment (with respect to non-employee      directors) of life, health and dental premiums (or the equivalent cash      value thereof with respect to those non-employee directors covered by      other employer plans) in accordance with existing policy and practice;      provided, however,      no individual director’s remuneration will exceed the amount of      remuneration received thereby for the year ended December 31, 2007, except      for the most recently appointed director whose remuneration will not      exceed $56,250. |
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| A.   | Effective      immediately, the Bank shall comply with the prior notification      requirements for changes in its directors and senior executive officers,      including changes in responsibilities of senior executive officers, as set      forth in 12 CFR Part 563, SubpartH. |
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| B.   | By      February 28, 2009, the Board shall review the current board composition in      light of the findings of the ROE and the Bank’s current financial      condition and shall adopt and submit to OTS either (i) a written plan to      expand the current board membership to add directors with community      banking, financial management, or accounting experience and who are      independent of management (as defined in Paragraph 19B hereof), or (ii) a      justification as to why the Board should not be expanded.  The      appointment of new directors shall be subject to the requirements of      Paragraph 15A hereof. The Outside Directors (as defined in Paragraph 19C      hereof) shall be responsible for identifying and nominating candidates who      have community banking, financial management, or accounting      experience. |
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| A.   | The      term “acceptable” means the Regional Director, the Regional Deputy      Director, or assigned Assistant Director, has stated in writing that it is      acceptable or has provided a written notice of non-objection to      it. |
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| B.   | The      term “independent of management” means that the person: (i) is not, and      within the preceding three (3) years has not served as, a consultant,      advisor, or legal counsel to the Bank, its affiliates or subsidiaries,      excepted as approved by OTS; (ii) is not, either by blood or marriage,      related to any existing or former Bank officer or their attorneys or      consultants; (iii) does not have a business or professional relationship      with any existing or former Bank officers or their attorneys or      consultants, except as approved by OTS; and (iv) to the extent not      inconsistent with the foregoing, meets the criteria set forth at 12 CFR      Part 363 and Appendix A thereof. |
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| C.   | The      term “Outside Director” means that the director (i) is not, and within the      preceding     three years has not been, an      officer or employee of the Bank or any subsidiary or affiliate or the      Bank; or (ii) is not related by blood or marriage to any officer or      employee of the Bank or any subsidiarythereof. |
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| D.   | The      term “Regional Director” means the OTS “Regional Director for the Midwest      Region, and includes any OTS official designated by him to act on his      behalf with respect to matters relating to this  Agreement. |
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| E.   | The      term “senior executive officer” shall have the meaning set forth in 12 CFR      § 563.555. |
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| A.   | All      policies, procedures, corrective actions, plans, programs, systems of      internal controls, and reviews required by this Agreement (collectively      referred to as Plans and Policies) shall conform to all applicable      statutes, regulations, and written OTS policy and guidance that has been      published by OTS or distributed by OTS to OTS-related      institutions.  The Board shall revise such Plans and Policies as      required by OTS.  The Bank shall comply with all Plans and      Policies required by this Agreement, including any revisions or amendments      required by OTS or which OTS provided written notice of      non-objection.  The Bank’s failure to comply with a Plan or      Policy required by this Agreement is considered a violation of this      Agreement. |
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| B.   | The      Board and management of the Bank shall take immediate action to cause the      Bank to comply with the provisions of this  Agreement. |
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| C.   | This      Agreement requires the Bank to receive approval, a notice of      non-objection, or a notice of acceptability from OTS for certain Board      actions.  The Board affirms that such regulatory oversight does      not derogate or supplant each individual member’s continuing fiduciary      duty.  The Board shall have the ultimate responsibility for      overseeing the safe and sound operation of the  Bank. |
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|        D.   | By      the sixtieth (60th)      calendar day after the end of each calendar quarter, beginning      with the quarter ending December 31, 2008, the Board shall adopt and      submit to OTS a certified copy of a board resolution formally resolving      that, following a careful review of relevant information (including a      report from Bank’s management regarding the Bank’s compliance with each      provision of this Agreement), to the best of its knowledge and belief,      during the immediately preceding calendar quarter, the Bank complied with      each provision of this Agreement currently in effect, except as otherwise      stated.  The Compliance Resolution shall: (i) specify in detail      how, if at all, full compliance was found not to exist; and (ii) identify      all notices of exemption or non-objection issued by OTS that were      outstanding as of the date of its adoption.  In the event that      one or more directors do not agree with the representations set forth in a      Compliance Resolution, such disagreement shall be noted in the Board      meeting minutes. |
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| E.   | With      respect to any plan, policy, or procedure that is timely filed and      prepared by the Bank, but nevertheless requires modification to address      OTS’s comments occurring after the due date, no violation will be found to      exist for so long as the Bank (i) incorporates such modifications and (ii)      implements the modified plan, policy, or  procedures. |
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| A.   | All      submissions, including progress reports, to OTS that are required by or      contemplated by this Agreement shall be submitted within the specified      timeframes; |
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| B.   | Except      as otherwise provided herein, all submissions, requests, communications,      consents or other documents relating to this Agreement shall be in writing      and sent by first class U.S mail (or by reputable overnight carrier,      electronic facsimile transmission or hand delivery by messenger) addressed      as follows: |
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| A.  | Calculation      of time limitations for compliance with the terms of this Agreement run      from the Effective Date and shall be calendar based, unless otherwise      noted; and |
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| B.   | The      Regional Director, Regional Deputy Director, or assigned Assistant      Director may extend any of the deadlines set forth in the provisions of      this Agreement upon written request by the Bank that includes reasons in      support for any such extension.  Any OTS extension shall be made      in writing. |
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| A.   | Nothing      in this Agreement shall be construed as allowing the Bank to violate any      law, rule, regulation, or policy statement to which it is      subject. |
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| B.   | The      paragraph headings herein are for convenience only and shall not affect      the construction hereof. |
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| C.   | In      case any provision in this Agreement is ruled to be invalid, illegal, or      unenforceable by the decision of any court of competent jurisdiction, the      validity, legality, and enforceability of the remaining provisions hereof      shall not in any way be affected or impaired thereby, unless OTS      determines otherwise in the exercise of its  discretion. |
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