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SETTLEMENT AND RELEASE AGREEMENT

This Settlement and Release Agreement (“Agreement”) is made by, between, and among

the following undersigned parties:

The plaintiff Federal Deposit Insurance Corporation as Receiver for Community Bank of

West Georgia (“FDIC-R”), and defendants Richard C. Hayden (“Hayden”), Delmas L. Lindsey

(“Lindsey”), Dwayne H. Myrick (“Myrick”), W. Kenneth Blair (“Blair”), Loretta M. Griffin

(“Griffin”), Robert G. Harris (“Harris”), R. Bryant Hightower, Jr. (“Hightower”), J. Paul

McWilliams (“McWilliams”), Mark K. Schrews (“Schrews”) H. Boyd Stephens (“Stephens”),

and Robyn S. Worley (“Worley”) (collectively the “Settling Defendants”). Individually, each of

the FDIC-R and Settling Defendants may be referred to herein as a “Party” and collectively as

“Parties.”

RECITALS

WHEREAS:

Prior to June 26, 2009, Community Bank of West Georgia (“Bank”) was a depository

institution organized and existing under the laws of Georgia.

On that date, the Georgia Department of Banking and Finance closed the Bank, and

pursuant to 12 U.S.C. § 1821(c), the Federal Deposit Insurance Corporation was appointed

Receiver. In accordance with 12 U.S.C. § 1821(d), the FDIC-R succeeded to all rights, titles,

powers and privileges of the Bank, including those with respect to its assets.

Among the assets to which the FDIC-R succeeded were all of the Bank’s claims,

demands, and causes of action against its former directors, officers, and employees arising from

the performance, nonperformance, and manner of performance of their respective functions,

duties and acts as directors, officers, and employees of the Bank.
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On November 15, 2012, the FDIC-R filed a complaint for money damages against the

Settling Defendants, each of whom served at various times as a director and/or officer of the

Bank.

Those claims for damages are now pending in the United States District Court for the

Northern District of Georgia in Federal Deposit Insurance Corporation as Receiver for

Community Bank of West Georgia v. Hayden, Civil No. 3:12-cv-0165-TCB (“D&O Action”).

The Settling Defendants have denied any and all allegations of negligence and gross negligence,

or liability of any kind in the D&O Action.

The undersigned Parties acknowledge this is a settlement of disputed claims and defenses

and deem it in their best interests to enter into this Agreement to avoid the uncertainty and

expense of further litigation.

Defendants Hayden, Griffin and Schrews (the “Bankrupt Defendants”) have each filed

for bankruptcy protection and have received a discharge pursuant to Chapter 7 of the United

States Bankruptcy Code (each, a “Discharge”).

NOW, THEREFORE, in consideration of the promises, undertakings, payments, and

releases stated herein, the sufficiency of which consideration is hereby acknowledged, the

undersigned Parties agree, each with the other, as follows:

SECTION I: Payment to FDIC-R

A. As an essential covenant and condition to this Agreement, on or before thirty (30)

calendar days after complete execution of this Agreement by the Parties (the “Execution Date”),

the Settling Defendants, jointly and severally, agree to pay the FDIC-R, or to have paid to the

FDIC-R on their behalf, the sum of Two Million Four Hundred Thousand and 00/100 dollars

($2,400,000.00) (“the Settlement Payment”).
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B. The Settlement Payment shall be delivered by or on behalf of the Settling

Defendants on or before the date determined by subsection A above (the “Payment Date”) to the

FDIC-R by direct wire transfer into an account designated by the FDIC-R, the wiring

instructions for which the FDIC have provided to counsel for the Settling Defendants before the

Execution Date.

C. If the FDIC-R does not receive the Settlement Payment in full on or before the

Payment Date, then the FDIC-R, in its sole discretion, shall have the right at any time prior to

receipt of the Settlement Payment in full (including all accrued interest) to:

1. Extend the period of time for the Settlement Payment, including interest

accruing from the Payment Date, through the date of payment at a rate calculated in accordance

with 26 U.S.C. § 6621(a)(3); or

2. Enforce this Agreement, in which event the Settling Defendants agree to

jurisdiction in United States District Court in Georgia and to pay all of the FDIC-R’s reasonable

attorney’s fees and costs expended in enforcing the terms of this Agreement; or

3. Terminate the Agreement, move to vacate any dismissal order, to which

the Settling Defendants agree to consent, and re-institute an action on the FDIC-R’s claims. The

Settling Defendants further agree to waive any defense based on any statute of limitations that

would bar any of the FDIC-R’s claims and waive all objections, defenses, claims or

counterclaims based on or arising out of this Agreement, and covenant and agree not to assert

any objections, defenses, claims or counterclaims that did not exist or were otherwise

unavailable as of the Execution Date; and/or

4. Seek any other relief available to it in law or equity.
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Any extension of time under Section I.C.1 for delivery of the Settlement Payment or

acceptance of a portion of the Settlement Payment shall not prejudice the FDIC-R’s rights to take

any of the actions set forth in Section I.C.2 through I.C.4 at any time prior to receipt of

Settlement Payment (including all accrued interest) in full.

SECTION II: Stipulation and Dismissal

Within ten business days after the latter of (1) full execution of this Agreement by all of

the Parties, and (2) receipt of the Settlement Payment, plus any accrued interest, the FDIC-R

shall file a Joint Motion for Dismissal with Prejudice, executed by the attorneys for all Parties

hereto, along with a proposed Agreed Order of Dismissal with Prejudice, in the forms attached

hereto as Exhibit A, in the D&O Action.

SECTION III: Releases

A. The FDIC-R’s Releases.

Upon receipt of the Settlement Payment in full and except as provided in Section III.C.,

the FDIC-R, for itself and its successors and assigns, hereby releases and discharges the Settling

Defendants and their respective heirs, executors, trustees, administrators, representatives,

insurers, successors, and assigns, from any and all claims, demands, obligations, damages,

actions, and causes of action, direct or indirect, in law or in equity, belonging to the FDIC-R, that

arise from or relate to, the performance, nonperformance, or manner of performance of the

Settling Defendants’ respective functions, duties and actions as officers and/or directors of the

Bank including without limitation the causes of action alleged in the D&O Action.

B. The Settling Defendants’ Release.

Effective simultaneously with the release granted in Section III.A. above, the Settling

Defendants, on behalf of themselves individually, and their respective heirs, executors, trustees,

administrators, agents, representatives, attorneys, insurers, successors, and assigns, hereby
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release and discharge the FDIC-R, and its employees, officers, directors, representatives,

attorneys, successors and assigns, from any and all claims, demands, obligations, damages,

actions, and causes of action, direct or indirect, in law or in equity, that arise from or relate to,

the Bank or to the performance, nonperformance, or manner of performance of the Settling

Defendants’ respective functions, duties and actions as officers and/or directors of the Bank

including without limitation the causes of action alleged in the D&O Action.

C. Exceptions from Releases by FDIC-R.

1. Notwithstanding any other provision of this Agreement, the FDIC-R does

not release, and expressly preserves fully and to the same extent as if this Agreement had not

been executed, any claims or causes of action:

a. Against the Settling Defendants or any other person or entity for

liability, if any, incurred as the maker, endorser or guarantor of any promissory note or

indebtedness payable or owed by them to FDIC-R, the Bank, other financial institutions, or any

other person or entity, including without limitation any such claims acquired by FDIC-R as

successor in interest to the Bank or any person or entity other than Bank; and

b. Against any person or entity not expressly released by the FDIC-R

in this Agreement.

2. Notwithstanding any other provision of this Agreement, nothing in this

Agreement shall be construed or interpreted as limiting, waiving, releasing, or compromising the

jurisdiction and authority of the Federal Deposit Insurance Corporation in the exercise of its

supervisory or regulatory authority or to diminish its ability to institute administrative

enforcement or other proceedings seeking removal, prohibition, or any other relief it is

authorized to seek pursuant to its supervisory or regulatory authority against any person.
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3. Notwithstanding any other provision of this Agreement, this Agreement

does not purport to waive, or intend to waive, any claims that could be brought by the United

States through the Department of Justice, the United States Attorney’s Office for any federal

judicial district, or any other department or agency of the United States as defined by 18 U.S.C. §

6. In addition, the FDIC-R specifically reserves the right to seek court-ordered restitution

pursuant to the relevant provisions of the Mandatory Victims Restitution Act, 18 U.S.C. §§ 3322

and 3663 et. seq., if appropriate.

SECTION IV: Waiver of Dividends and Proceeds from Litigation

To the extent, if any, that Settling Defendants are or were shareholders of the Bank or its

holding company and by virtue thereof are or may be entitled to a dividend, payment, or other

distribution upon resolution of the receivership of the Bank or proceeds in any litigation that has

been or could be brought against the Federal Deposit Insurance Corporation in any capacity or

against the United States based on or arising out of, in whole or in part, the closing of the Bank,

or any alleged acts or omissions by the Federal Deposit Insurance Corporation in any capacity,

the United States government, or any agency or department of the United States government in

connection with the Bank, its conservatorship, or receivership, Settling Defendants hereby

knowingly assign to the FDIC-R any and all rights, titles, and interest in and to any and all such

dividends, payments, or other distributions, or proceeds.

SECTION V: Representations and Acknowledgements

A. Authorized Signatories. All of the undersigned persons represent and warrant that

they are Parties hereto or are authorized to sign this Agreement on behalf of the respective Party,

and that they have the full power and authority to bind such Party to each and every applicable

provision of this Agreement. This Agreement shall be binding upon and inure to the benefit of
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the undersigned Parties and their respective heirs, executors, trustees, administrators,

representatives, successors and assigns.

B. Advice of Counsel. Each Party hereby acknowledges that he, she, or it has

consulted with and obtained the advice of counsel prior to executing this Agreement, and that

this Agreement has been explained to that Party by his or her counsel.

C. Financial Disclosure Representation. Each Settling Defendant, other than Hayden,

Griffin, and Schrews, has submitted financial information to the FDIC-R including sworn

Personal Financial Statements provided to FDIC-R on various dates between October and

December 2014, and herein affirms that his/her financial information was true and accurate as of

the date of submission. Each Settling Defendant expressly acknowledges that, in determining to

settle the claims released herein, the FDIC-R has reasonably and justifiably relied upon the

accuracy of the financial information submitted by the Settling Defendants. The FDIC-R has no

obligation to independently verify the completeness or accuracy of that financial information. If

the FDIC-R establishes via a final adjudication in an appropriate judicial forum that a Settling

Defendant failed to disclose any material interest, legal, equitable, or beneficial, in any asset, that

Settling Defendant agrees to cooperate fully with the FDIC-R to provide updated financial

information and to pay to the FDIC-R the lesser of (1) the value of the Settling Defendant’s

undisclosed material interest in such asset(s); or (2) the amount of unpaid damages alleged

against that Settling Defendant.

SECTION VI: Reasonable Cooperation

A. The Parties agree to cooperate in good faith to effectuate all the terms and

conditions of this Agreement, including doing, or causing their agents and attorneys to do,

whatever is reasonably necessary to effectuate the signing, delivery, execution, filing, recording,
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and entry, of any documents necessary to conclude the D&O Action, and to otherwise perform

the terms of this Agreement.

B. The Settling Defendants agree to cooperate fully with the FDIC-R in connection

with any action required under this Agreement. Such cooperation, without waiving any

potentially applicable privileges, shall consist of:

1. Producing all documents requested by the FDIC-R, without the necessity

of subpoena, as determined by the FDIC-R, in its sole discretion, to be relevant to the Bank;

2. Appearing as requested by the FDIC-R at reasonable times and places for

interviews regarding facts, as determined by the FDIC-R in its sole discretion, to be relevant to

the Bank;

3. Testifying as requested by the FDIC-R, without the necessity of a

subpoena, in any matter relevant to the Bank, as determined by the FDIC-R;

4. Signing truthful affidavits, regarding any matter, as determined by the

FDIC-R in its sole discretion, to be relevant to the Bank.

SECTION VII: Other Matters

A. No Admission of Liability. The undersigned Parties each acknowledge and agree

that the matters set forth in this Agreement constitute the settlement and compromise of disputed

claims and defenses, that this Agreement is not an admission or evidence of liability or infirmity

by any of them regarding any claim or defense, and that the Agreement shall not be offered or

received in evidence by or against any Party except to enforce its terms.

B. Execution in Counterparts. This Agreement may be executed in counterparts by

one or more of the Parties and all such counterparts when so executed shall together constitute

the final Agreement, as if one document had been signed by all Parties; and each such
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counterpart, upon execution and delivery, shall be deemed a complete original, binding the

Parties subscribed thereto upon the execution by all Parties to this Agreement.

C. Choice of Law. This Agreement shall be interpreted, construed and enforced

according to applicable federal law, or in its absence, the laws of the State of Georgia.

D. Notices. Any notices required hereunder shall be sent by registered mail, first

class, return receipt requested, and by email, to the following:

If to the FDIC-R: Mark A. Black, Counsel

Federal Deposit Insurance Corporation

3501 N. Fairfax Dr. B7039

Arlington, VA 22226

Telephone: (703) 516-5273

If to the Settling Defendants Hayden,

Myrick, Blair, Griffin, Harris, Jr.,

Hightower, Jr., McWilliams, Schrews,

Stephens and Worley

Robert R. Ambler, Jr.

Womble Carlyle Sandridge & Rice, LLP

271 17th Street, NW, Suite 2400

Atlanta, GA 30363-1017

Telephone: (404) 872-7000 phone

If to Settling Defendant Lindsey Michael E. Johnson

Troutman Sanders LLP

600 Peachtree St. NE, Suite 5200

Atlanta, GA 30308

Telephone:

E. Entire Agreement and Amendments. This Agreement constitutes the entire

agreement and understanding between and among the undersigned Parties concerning the matters

set forth herein and supersedes any prior agreements or understandings. This Agreement may not

be amended or modified, nor may any of its provisions be waived, except in writing signed by

the Parties bound thereby, or by their respective authorized attorney(s), or other

representative(s).

F. Titles and Captions. All section titles and captions contained in this Agreement

are for convenience only and shall not affect the interpretation of this Agreement.
G. No Confidentiality. The undersigned Parties acknowledge that this Agreement 

shall not be confidential and will be disclosed pursuant to the Federal Deposit Insurance 

Corporation's applicable policies, procedures, and other legal requirements. 

H. Additional Provisions Applicable to Bankrupt Defendants. Notwithstanding any 

other provision of this Agreement, by execution hereof, (i) the Bankrupt Defendants personally 

do not undertake or assume any affirmative liability, obligation or indebtedness, including, 

without limitation, any liability to make any portion of the Settlement Payment, but instead are 

liable only to the extent of liability insurance, and (ii) the Bankrupt Defendants do not waive, 

condition, limit or otherwise modify the discharge injunction and other benefits of their 

respective Discharges, each of which is acknowledged by all Parties. 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed 

by each of them or their duly authorized representatives on the dates hereinafter subscribed. 

Date: -----------------

Date: ________________ _ 

FEDERAL DEPOSIT INSURANCE 

CORPORATION AS RECEIVER FOR 

COM1f!NITY BANK V>EST : EORGIA 

By: vtJ e {1.2 

Mark A. Black 

Counsel - Federal Deposit Insurance Corporation 

BY: ______________________________ __ 

RICHARD C. HAYDEN 

BY: ____________________________ ___ 

DWAYNE H. MYRICK 

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G. No Confidentiality. The undersigned Parties acknowledge that this Agreement 

shall not be confidential and will be disclosed pursuant to the Federal Deposit Insurance 

Corporation's applicable policies, procedures, and other legal requirements. 

H. Additional Provisions Applicable to Bankrupt Defendants. Notwithstanding any 

other provision of this Agreement, by execution hereof, (i) the Bankrupt Defendants personally 

do not undertake or assume any affirmative liability, obligation or indebtedness, including, 

without limitation, any liability to make any portion of the Settlement Payment, but instead are 

liable only to the extent of liability insurance, and (ii) the Bankrupt Defendants do not waive, 

condition, limit or otherwise modify the discharge injunction and other benefits of their 

respective Discharges, each of which is acknowledged by all Parties. 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed 

by each of them or their duly authorized representatives on the dates hereinafter subscribed. 

Date: ________ _ 

Date: ________ _ 

FEDERAL DEPOSIT INSURANCE 

CORPORATION AS RECEIVER FOR 

COMMUNITY BANK OF WEST GEORGIA 

By: ________________________________ _ 

Mark A. Black 

Counsel - ~--< Pnlf'= 

BY: ____________________________ ___ 

DWAYNE H. MYRICK 

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G. No Confidentiality. The undersigned Parties acknowledge that this Agreement 

shall not be confidential and will be disclosed pursuant to the Federal Deposit Insurance 

Corporation's applicable policies, procedures, and other legal requirements. 

H. Additional Provisions Applicable to Banlaupt Defendants. Notwithstanding any 

other provision of this Agreement, by execution hereof, (i) the Banlaupt Defendants personally 

do not undertake or assume any affirmative liability, obligation or indebtedness, including, 

without limitation, any liability to make any portion of the Settlement Payment, but instead are 

liable only to the extent of liability insurance, and (ii) the Banlaupt Defendants do not waive, 

condition, limit or otherwise modify the discharge injunction and other benefits of their 

respective Discharges, each of which is acknowledged by all Parties. 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed 

by each of them or their duly authorized representatives on the dates hereinafter subscribed. 

Date: ________ _ 

Date: ________ _ 

FEDERAL DEPOSIT INSURANCE 

CORPORATION AS RECEIVER FOR 

COMMUNITY BANK OF WEST GEORGIA 

By: ____________________________ ___ 

Mark A. Black 

Counsel- Federal Deposit Insurance Corporation 

BY: ____________________________ _ 

RICHARD C. HAYDEN 

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~ W. KENNETH BLAIR 

Date: ______ _ BY: _______________ ___ 

LORETTA M. GRIFFIN 

Date: ______ _ BY: ___________________ ___ 

ROBERT G. HARRIS 

Date: ______ _ BY: ____________________ ___ 

R. BRYANTHIGHTOWER,JR 

Date: ------- BY: ____________________ ___ 

I. PAUL MCWILLIAMS 

Date: ------- BY: _____________________ ___ 

MARK K. SCHREWS 

Date: ______ _ BY: ____________________ ___ 

H. BOYD STEPHENS 

Date: ------- BY: ________________________ ___ 

ROBYN S. WORLEY 

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Date: ______ _ 

Date: ______ _ 

Date: ______ _ 

Date: ______ _ 

Date : ______ _ 

Date : ______ _ 

Date : _______ , 

BY:-------------- W. KENNETH BLAIR 

BY: _____________ ___ 

ROBERT G. HARRIS 

BY: _____________ ___ 

R. BRYANT HIGHTOWER, JR 

BY: _____________ ___ 

J. PAUL MCWILLIAMS 

BY: _____________ __ 

MARK K. SCHREWS 

BY: _____________ ___ 

H. BOYD STEPHENS 

BY: ______________ ___ 

ROBYN S. WORLEY 

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Date: ______ _ BY: _ ______ __________ _ 

W. KENNETH BLAIR 

Date: ________ _ BY: _________________ _ 

LORETTA M. GRIFFIN 

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Date: ___________ _ BY: __________________________ _ 

H. BOYD STEPHENS 

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ROBYN S. WORLEY 

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Date: ______ _ BY: _____________ _ 

W. KENNETH BLAIR 

Date: ______ _ BY: _____________ ___ 

LORETTA M. GRIFFIN 

Date: ______ _ BY: _____________ ___ 

ROBERT G. HARRIS 

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Date: ------- BY: _____________ ___ 

J. PAUL MCWILLIAMS 

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ROBYN S. WORLEY 

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Date: ______ _ BY: _____________ ___ 

W. KENNETH BLAIR 

Date: ______ _ BY: _____________ ___ 

LORETTA M. GRIFFIN 

Date: ______ _ BY: _____________ ___ 

ROBERT G. HARRIS 

Date: ______ _ BY: _____________ ___ 

R. BRYANT HIGHTOWER, JR 

Date: ______ _ BY: _____________ ___ 

MARK K. SCHREWS 

Date: ------- BY: _____________ ___ 

H. BOYD STEPHENS 

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ROBYN S. WORLEY 

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Date: ______ _ BY: _____________ __ 

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Date: ___ ___ _ BY: _ ______________ ______ __ 

LORETTA M. GRIFFIN 

Date: ___________ _ BY: _______________________ __ 

ROBERT G. HARRIS 

Date: __________ _ BY: ________ ______________ __ 

R. BRYANT HIGHTOWER, JR 

Date: ____________ _ BY: _ _____________________ __ 

J. PAUL MCWILLIAMS 

Date:---------- BY: ______________________ __ 

H. BOYD STEPHENS 

Date: ____________ _ BY: _______ _________________ __ 

ROBYN S. WORLEY 

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