PURCHASE AND ASSUMPTION AGREEMENT

 WHOLE BANK

 ALL DEPOSITS

 AMONG 

 FEDERAL DEPOSIT INSURANCE CORPORATION, 

 RECEIVER OF HORIZON BANK, 

BRADENTON, FLORIDA 

 FEDERAL DEPOSIT INSURANCE CORPORATION 

and 

BANK OF THE OZARKS
 

DATED AS OF
 

SEPTEMBER 10, 2010 

Module 1 – Whole Bank w/ Loss Share – P&A Horizon Bank 

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TABLE OF CONTENTS
 

ARTICLE I 

ARTICLE II 

2.1 

2.2 

2.3 

2.4 

ARTICLE III 

3.1 

3.2 

3.3 

3.4 

3.5 

3.6 

3.7 

ARTICLE IV 

4.1 

4.2 

4.3 

4.4 

4.5 

4.6 

4.7 

4.8 

4.9 

4.10 

4.11 

4.12 

4.13 

4.14 

4.15 

DEFINITIONS ...........................................................................................2 

ASSUMPTION OF LIABILITIES...........................................................9 

Liabilities Assumed by Assuming Institution..............................................9 

Interest on Deposit Liabilities....................................................................10 

 Unclaimed Deposits...................................................................................10 

 Employee Plans..........................................................................................11 

PURCHASE OF ASSETS .......................................................................11 

Assets Purchased by Assuming Institution................................................11 

Asset Purchase Price..................................................................................11 

Manner of Conveyance; Limited Warranty; 

 Nonrecourse; Etc............................................................................12 

Puts of Assets to the Receiver....................................................................12 

Assets Not Purchased by Assuming Institution.........................................15 

Assets Essential to Receiver ......................................................................16 

Receiver’s Offer to Sell Withheld Loan ....................................................17 

ASSUMPTION OF CERTAIN DUTIES AND OBLIGATIONS........17 

Continuation of Banking Business.............................................................17 

Agreement with Respect to Credit Card Business.....................................18 

Agreement with Respect to Safe Deposit Business ...................................18 

Agreement with Respect to Safekeeping Business....................................18 

Agreement with Respect to Trust Business ...............................................19 

Agreement with Respect to Bank Premises...............................................19 

Agreement with Respect to Data 

 Processing Equipment and Leases.................................................23 

Agreement with Respect to Certain 

 Existing Agreements......................................................................24 

Informational Tax Reporting .....................................................................24 

Insurance ....................................................................................................24 

Office Space for Receiver and Corporation...............................................25 

Agreement with Respect to Continuation of Group 

Health Plan Coverage for Former Employees ...........................................26 

Agreement with Respect to Interim Asset Servicing ................................27 

Reserved ....................................................................................................27 

Agreement with Respect to Loss Sharing .................................................27 

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ARTICLE V 

5.1 

5.2 

5.3 

ARTICLE VI 

6.1 

6.2 

6.3 

6.4 

ARTICLE VII 

ARTICLE VIII 

8.1 

8.2 

8.3 

8.4 

8.5 

ARTICLE IX 

9.1 

9.2 

9.3 

9.4 

9.5 

9.6 

9.7 

ARTICLE X 

ARTICLE XI 

ARTICLE XII 

12.1 

12.2 

12.3 

12.4 

12.5 

DUTIES WITH RESPECT TO DEPOSITORS 

 OF THE FAILED BANK........................................................................27 

Payment of Checks, Drafts and Orders......................................................27 

Certain Agreements Related to Deposits ...................................................27 

Notice to Depositors ..................................................................................27 

RECORDS ................................................................................................28 

Transfer of Records....................................................................................28 

Delivery of Assigned Records ...................................................................28 

Preservation of Records .............................................................................28 

Access to Records; Copies.........................................................................28 

BID; INITIAL PAYMENT .....................................................................29 

ADJUSTMENTS......................................................................................30 

Pro Forma Statement..................................................................................30 

Correction of Errors and Omissions; Other Liabilities 

Payments....................................................................................................30 

Interest........................................................................................................31 

Subsequent Adjustments............................................................................31 

CONTINUING COOPERATION..........................................................31 

 General Matters..........................................................................................31 

 Additional Title Documents.......................................................................31 

Claims and Suits ........................................................................................31 

Payment of Deposits ..................................................................................32 

 Withheld Payments ....................................................................................32 

Proceedings with Respect to Certain Assets 

 and Liabilities.................................................................................32 

 Information ................................................................................................33 

CONDITION PRECEDENT ..................................................................33 

REPRESENTATIONS AND WARRANTIES OF THE 

 ASSUMING INSTITUTION ..................................................................34 

INDEMNIFICATION .............................................................................35 

Indemnification of Indemnitees .................................................................35 

Conditions Precedent to Indemnification...................................................38 

No Additional Warranty ............................................................................39 

Indemnification of Corporation and Receiver ...........................................39 

Obligations Supplemental..........................................................................39 

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 12.6 

12.7 

12.8 

ARTICLE XIII 

13.1 

13.2 

13.3 

13.4 

13.5 

13.6 

13.7 

13.8 

13.9 

13.10 

13.11 

13.12 

13.13 

SCHEDULES 

2.1(a) 

3.2 

3.5(l) 

4.15A 

4.15B 

4.15C 

4.15D 

6.3 

7 

EXHIBITS 

2.3A 

2.3B 

3.2(c) 

4.13 

4.15A 

4.15B 

Criminal Claims.........................................................................................40 

Limited Guaranty of the Corporation ........................................................40 

Subrogation................................................................................................40 

MISCELLANEOUS ................................................................................40 

Entire Agreement.......................................................................................40 

Headings ....................................................................................................40 

Counterparts...............................................................................................41 

Governing Law ..........................................................................................41 

Successors..................................................................................................41 

Modification; Assignment .........................................................................41 

Notice ........................................................................................................41 

Manner of Payment....................................................................................42 

Costs, Fees and Expenses ..........................................................................42 

Waiver........................................................................................................42 

Severability ................................................................................................42 

Term of Agreement....................................................................................42 

Survival of Covenants, Etc. .......................................................................43 

Excluded Deposit Liability Accounts ........................................................45 

Purchase Price of Assets or Assets ............................................................46 

 Excluded Securities....................................................................................48 

Single Family Shared-Loss Loans .............................................................49 

Commercial Shared-Loss Loans................................................................50 

Shared-Loss Securities...............................................................................51 

Shared-Loss Subsidiaries...........................................................................52 

Data Retention Catalog..............................................................................53 

Calculation of Deposit Premium................................................................55 

Final Notice Letter .....................................................................................66 

Affidavit of Mailing...................................................................................68 

Valuation of Certain Qualified Financial Contracts ..................................69 

Interim Asset Servicing Arrangement .......................................................71 

Single Family Shared-Loss Agreement .....................................................75 

 Commercial Shared-Loss Agreement......................................................122 

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PURCHASE AND ASSUMPTION AGREEMENT

 WHOLE BANK

 ALL DEPOSITS

 THIS AGREEMENT, made and entered into as of the 10th day of September, 2010, by 

and among the FEDERAL DEPOSIT INSURANCE CORPORATION, RECEIVER of 

HORIZON BANK, BRADENTON, FLORIDA (the "Receiver"), BANK OF THE OZARKS, 

organized under the laws of the State of Arkansas, and having its principal place of business in 

LITTLE ROCK, ARKANSAS (the "Assuming Institution"), and the FEDERAL DEPOSIT 

INSURANCE CORPORATION, organized under the laws of the United States of America and 

having its principal office in Washington, D.C., acting in its corporate capacity (the 

"Corporation"). 

 WITNESSETH: 

WHEREAS, on Bank Closing, the Chartering Authority closed Horizon Bank (the 

"Failed Bank") pursuant to applicable law and the Corporation was appointed Receiver thereof; 

and 

WHEREAS, the Assuming Institution desires to purchase certain assets and assume 

certain deposit and other liabilities of the Failed Bank on the terms and conditions set forth in 

this Agreement; and 

WHEREAS, pursuant to 12 U.S.C. Section 1823(c)(2)(A), the Corporation may provide 

assistance to the Assuming Institution to facilitate the transactions contemplated by this 

Agreement, which assistance may include indemnification pursuant to Article XII; and 

WHEREAS, the Board of Directors of the Corporation (the "Board") has determined to 

provide assistance to the Assuming Institution on the terms and subject to the conditions set forth 

in this Agreement; and 

WHEREAS, the Board has determined pursuant to 12 U.S.C. Section 1823(c)(4)(A) that 

such assistance is necessary to meet the obligation of the Corporation to provide insurance 

coverage for the insured deposits in the Failed Bank. 

 NOW THEREFORE, in consideration of the mutual promises herein set forth and other 

valuable consideration, the parties hereto agree as follows: 

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ARTICLE I 

 DEFINITIONS
 

Capitalized terms used in this Agreement shall have the meanings set forth in this Article 

I, or elsewhere in this Agreement. As used herein, words imparting the singular include the 

plural and vice versa. 

"Accounting Records" means the general ledger and subsidiary ledgers and 

supporting schedules which support the general ledger balances. 

"Acquired Subsidiaries" means Subsidiaries of the Failed Bank acquired 

pursuant to Section 3.1. 

"Affiliate" of any Person means any director, officer, or employee of that Person 

and any other Person (i) who is directly or indirectly controlling, or controlled by, or under direct 

or indirect common control with, such Person, or (ii) who is an affiliate of such Person as the 

term "affiliate" is defined in Section 2 of the Bank Holding Company Act of 1956, as amended, 

12 U.S.C. Section 1841. 

"Agreement" means this Purchase and Assumption Agreement by and among 

the Assuming Institution, the Corporation and the Receiver, as amended or otherwise modified 

from time to time. 

"Assets" means all assets of the Failed Bank purchased pursuant to Section 3.1. 

Assets owned by Subsidiaries of the Failed Bank are not "Assets" within the meaning of this 

definition. 

"Assumed Deposits" means Deposits. 

"Bank Closing" means the close of business of the Failed Bank on the date on 

which the Chartering Authority closed such institution. 

"Bank Premises" means the banking houses, drive-in banking facilities, and 

teller facilities (staffed or automated) together with adjacent parking, storage and service 

facilities and structures connecting remote facilities to banking houses, and land on which the 

foregoing are located, and unimproved land that are owned or leased by the Failed Bank and that 

have formerly been utilized, are currently utilized, or are intended to be utilized in the future by 

the Failed Bank as shown on the Accounting Record of the Failed Bank as of Bank Closing. 

"Bid Amount" has the meaning provided in Article VII. 

"Bid Valuation Date" means August 25, 2010. 

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 "Book Value" means, with respect to any Asset and any Liability Assumed, the 

dollar amount thereof stated on the Accounting Records of the Failed Bank. The Book Value of 

any item shall be determined as of Bank Closing after adjustments made by the Receiver for 

differences in accounts, suspense items, unposted debits and credits, and other similar 

adjustments or corrections and for setoffs, whether voluntary or involuntary. The Book Value of 

a Subsidiary of the Failed Bank acquired by the Assuming Institution shall be determined from 

the investment in subsidiary and related accounts on the "bank only" (unconsolidated) balance 

sheet of the Failed Bank based on the equity method of accounting. Without limiting the 

generality of the foregoing, (i) the Book Value of a Liability Assumed shall include all accrued 

and unpaid interest thereon as of Bank Closing, and (ii) the Book Value of a Loan shall reflect 

adjustments for earned interest, or unearned interest (as it relates to the "rule of 78s" or add-oninterest loans, as applicable), if any, as of Bank Closing, adjustments for the portion of earned or 

unearned loan-related credit life and/or disability insurance premiums, if any, attributable to the 

Failed Bank as of Bank Closing, and adjustments for Failed Bank Advances, if any, in each case 

as determined for financial reporting purposes. The Book Value of an Asset shall not include any 

adjustment for loan premiums, discounts or any related deferred income, fees or expenses, or 

general or specific reserves on the Accounting Records of the Failed Bank. For Shared-Loss 

Securities, Book Value means the value of the security provided in the Information Package. 

"Business Day" means a day other than a Saturday, Sunday, Federal legal 

holiday or legal holiday under the laws of the State where the Failed Bank is located, or a day on 

which the principal office of the Corporation is closed. 

"Chartering Authority" means (i) with respect to a national bank, the Office of 

the Comptroller of the Currency, (ii) with respect to a Federal savings association or savings 

bank, the Office of Thrift Supervision, (iii) with respect to a bank or savings institution chartered 

by a State, the agency of such State charged with primary responsibility for regulating and/or 

closing banks or savings institutions, as the case may be, (iv) the Corporation in accordance with 

12 U.S.C. Section 1821(c), with regard to self appointment, or (v) the appropriate Federal 

banking agency in accordance with 12 U.S.C. 1821(c)(9). 

"Commitment" means the unfunded portion of a line of credit or other 

commitment reflected on the books and records of the Failed Bank to make an extension of 

credit (or additional advances with respect to a Loan) that was legally binding on the Failed Bank 

as of Bank Closing, other than extensions of credit pursuant to the credit card business and 

overdraft protection plans of the Failed Bank, if any. 

"Credit Documents" mean the agreements, instruments, certificates or other 

documents at any time evidencing or otherwise relating to, governing or executed in connection 

with or as security for, a Loan, including without limitation notes, bonds, loan agreements, letter 

of credit applications, lease financing contracts, banker's acceptances, drafts, interest protection 

agreements, currency exchange agreements, repurchase agreements, reverse repurchase 

agreements, guarantees, deeds of trust, mortgages, assignments, security agreements, pledges, 

subordination or priority agreements, lien priority agreements, undertakings, security 

instruments, certificates, documents, legal opinions, participation agreements and intercreditor 

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agreements, and all amendments, modifications, renewals, extensions, rearrangements, and 

substitutions with respect to any of the foregoing. 

"Credit File" means all Credit Documents and all other credit, collateral, or 

insurance documents in the possession or custody of the Assuming Institution, or any of its 

Subsidiaries or Affiliates, relating to an Asset or a Loan included in a Put Notice, or copies of 

any thereof. 

“Data Processing Equipment” means any equipment, computer hardware, or 

computer software (and the lease or licensing agreements related thereto) other than Personal 

Computers, owned or leased by the Failed Bank at Bank Closing, which is, was, or could have 

been used by the Failed Bank in connection with data processing activities. 

"Deposit" means a deposit as defined in 12 U.S.C. Section 1813(l), including 

without limitation, outstanding cashier's checks and other official checks and all uncollected 

items included in the depositors' balances and credited on the books and records of the Failed 

Bank; provided, that the term "Deposit" shall not include all or any portion of those deposit 

balances which, in the discretion of the Receiver or the Corporation, (i) may be required to 

satisfy it for any liquidated or contingent liability of any depositor arising from an unauthorized 

or unlawful transaction, or (ii) may be needed to provide payment of any liability of any 

depositor to the Failed Bank or the Receiver, including the liability of any depositor as a director 

or officer of the Failed Bank, whether or not the amount of the liability is or can be determined 

as of Bank Closing. 

"Deposit Secured Loan" means a loan in which the only collateral securing the 

loan is Assumed Deposits or deposits at other insured depository institutions 

“Electronically Stored Information” means any system backup tapes, any 

electronic mail (whether on an exchange or other similar system), any data on personal 

computers and any data on server hard drives. 

"Failed Bank Advances" means the total sums paid by the Failed Bank to (i) 

protect its lien position, (ii) pay ad valorem taxes and hazard insurance, and (iii) pay credit life 

insurance, accident and health insurance, and vendor's single interest insurance. 

"Fair Market Value" means (i)(a) “Market Value” as defined in the regulation 

prescribing the standards for real estate appraisals used in federally related transactions, 12 

C.F.R. § 323.2(g), and accordingly shall mean the most probable price which a property should 

bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and 

seller each acting prudently and knowledgeably, and assuming the price is not affected by undue 

stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the 

passing of title from seller to buyer under conditions whereby: 

(1) Buyer and seller are typically motivated; 

(2) Both parties are well informed or well advised, and acting in what they consider their 

own best interests; 

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

(4) Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements 

comparable thereto; and 

(5) The price represents the normal consideration for the property sold unaffected by 

special or creative financing or sales concessions granted by anyone associated with the 

sale; 

as determined as of Bank Closing by an appraiser chosen by the Assuming Institution from a list 

of acceptable appraisers provided by the Receiver; any costs and fees associated with such 

determination shall be shared equally by the Receiver and the Assuming Institution, and (b) 

which, with respect to Bank Premises (to the extent, if any, that Bank Premises are purchased 

utilizing this valuation method), shall be determined not later than sixty (60) days after Bank 

Closing by an appraiser selected by the Receiver and the Assuming Institution within seven (7) 

days after Bank Closing; or (ii) with respect to property other than Bank Premises purchased 

utilizing this valuation method, the price therefore as established by the Receiver and agreed to 

by the Assuming Institution, or in the absence of such agreement, as determined in accordance 

with clause (i)(a) above. 

"Fixtures" means those leasehold improvements, additions, alterations and 

installations constituting all or a part of Bank Premises and which were acquired, added, built, 

installed or purchased at the expense of the Failed Bank, regardless of the holder of legal title 

thereto as of Bank Closing. 

"Furniture and Equipment" means the furniture and equipment (other than 

Safe Deposit Boxes, motor vehicles, Personal Computers, and Data Processing Equipment), 

leased or owned by the Failed Bank and reflected on the books of the Failed Bank as of Bank 

Closing and located on or at Bank Premises, including without limitation automated teller 

machines, carpeting, furniture, office machinery, shelving, office supplies, telephone, 

surveillance and security systems, ancillary equipment, and artwork. Furniture and equipment 

located at a storage facility not adjacent to a Bank Premises are excluded from this definition. 

"Indemnitees" means, except as provided in paragraph (11) of Section 12.1(b), 

(i) the Assuming Institution, (ii) the Subsidiaries and Affiliates of the Assuming Institution other 

than any Subsidiaries or Affiliates of the Failed Bank that are or become Subsidiaries or 

Affiliates of the Assuming Institution, and (iii) the directors, officers, employees and agents of 

the Assuming Institution and its Subsidiaries and Affiliates who are not also present or former 

directors, officers, employees or agents of the Failed Bank or of any Subsidiary or Affiliate of 

the Failed Bank. 

"Information Package" means the most recent compilation of financial and 

other data with respect to the Failed Bank, including any amendments or supplements thereto, 

provided to the Assuming Institution by the Corporation on the web site used by the Corporation 

to market the Failed Bank to potential acquirers. 

"Initial Payment" means the payment made pursuant to Article VII (based on 

the best information available as of the Bank Closing Date), the amount of which shall be either 

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(i) if the Bid Amount is positive, the aggregate Book Value of the Liabilities Assumed minus the 

sum of the aggregate purchase price of the Assets and assets purchased and the positive Bid 

Amount, or (ii) if the Bid Amount is negative, the sum of the aggregate Book Value of the 

Liabilities Assumed and the negative Bid Amount minus the aggregate purchase price of the 

Assets and assets purchased. The Initial Payment shall be payable by the Corporation to the 

Assuming Institution if (i) the Liabilities Assumed are greater than the sum of the positive Bid 

Amount and the Assets and assets purchased, or if (ii) the sum of the Liabilities Assumed and the 

negative Bid Amount are greater than the Assets and assets purchased. The Initial Payment shall 

be payable by the Assuming Institution to the Corporation if (i) the Liabilities Assumed are less 

than the sum of the positive Bid Amount and the Assets and assets purchased, or if (ii) the sum 

of the Liabilities Assumed and the negative Bid Amount is less than the Assets and assets 

purchased. Such Initial Payment shall be subject to adjustment as provided in Article VIII. 

"Legal Balance" means the amount of indebtedness legally owed by an Obligor 

with respect to a Loan, including principal and accrued and unpaid interest, late fees, attorneys' 

fees and expenses, taxes, insurance premiums, and similar charges, if any. 

"Liabilities Assumed" has the meaning provided in Section 2.1. 

"Lien" means any mortgage, lien, pledge, charge, assignment for security 

purposes, security interest, or encumbrance of any kind with respect to an Asset, including any 

conditional sale agreement or capital lease or other title retention agreement relating to such 

Asset. 

"Loans" means all of the following owed to or held by the Failed Bank as of 

Bank Closing: 

(i) loans (including loans which have been charged off the Accounting 

Records of the Failed Bank in whole or in part prior to and including the Bid Valuation Date), 

participation agreements, interests in participations, overdrafts of customers (including but not 

limited to overdrafts made pursuant to an overdraft protection plan or similar extensions of credit 

in connection with a deposit account), revolving commercial lines of credit, home equity lines of 

credit, Commitments, United States and/or State-guaranteed student loans, and lease financing 

contracts; 

(ii) all Liens, rights (including rights of set-off), remedies, powers, privileges, 

demands, claims, priorities, equities and benefits owned or held by, or accruing or to accrue to or 

for the benefit of, the holder of the obligations or instruments referred to in clause (i) above, 

including but not limited to those arising under or based upon Credit Documents, casualty 

insurance policies and binders, standby letters of credit, mortgagee title insurance policies and 

binders, payment bonds and performance bonds at any time and from time to time existing with 

respect to any of the obligations or instruments referred to in clause (i) above; and 

(iii) all amendments, modifications, renewals, extensions, refinancings, and 

refundings of or for any of the foregoing. 

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 "Obligor" means each Person liable for the full or partial payment or 

performance of any Loan, whether such Person is obligated directly, indirectly, primarily, 

secondarily, jointly, or severally. 

"Other Real Estate" means all interests in real estate (other than Bank Premises 

and Fixtures), including but not limited to mineral rights, leasehold rights, condominium and 

cooperative interests, air rights and development rights that are owned by the Failed Bank. 

"Payment Date" means the first Business Day after the Bank Closing Date. 

"Person" means any individual, corporation, partnership, joint venture, 

association, joint-stock company, trust, unincorporated organization, or government or any 

agency or political subdivision thereof, excluding the Corporation. 

“Personal Computer(s)” means computers based on a microprocessor generally 

designed to be used by one person at a time and which usually store informational data on that 

computer’s internal hard drive or attached peripheral. A personal computer can be found in 

various configurations such as laptops, net books, and desktops. 

"Primary Indemnitor" means any Person (other than the Assuming Institution 

or any of its Affiliates) who is obligated to indemnify or insure, or otherwise make payments 

(including payments on account of claims made against) to or on behalf of any Person in 

connection with the claims covered under Article XII, including without limitation any insurer 

issuing any directors and officers liability policy or any Person issuing a financial institution 

bond or banker's blanket bond. 

“Pro forma” means producing a balance sheet that reflects a reasonably accurate 

financial statement of the Failed bank through the date of closing. The pro forma financial 

statements serve as a basis for the opening entries of both the Assuming Institution and the 

Receiver. 

"Put Date" has the meaning provided in Section 3.4. 

"Put Notice" has the meaning provided in Section 3.4. 

"Qualified Financial Contract" means a qualified financial contract as defined 

in 12 U.S.C. Section 1821(e)(8)(D). 

"Record" means any document, microfiche, microfilm and Electronically Stored 

Information (including but not limited to magnetic tape, disc storage, card forms and printed 

copy) of the Failed Bank generated or maintained by the Failed Bank that is owned by or in the 

possession of the Receiver at Bank Closing. 

"Related Liability" with respect to any Asset means any liability existing and 

reflected on the Accounting Records of the Failed Bank as of Bank Closing for (i) indebtedness 

secured by mortgages, deeds of trust, chattel mortgages, security interests or other liens on or 

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affecting such Asset, (ii) ad valorem taxes applicable to such Asset, and (iii) any other obligation 

determined by the Receiver to be directly related to such Asset. 

"Related Liability Amount" with respect to any Related Liability on the books 

of the Assuming Institution, means the amount of such Related Liability as stated on the 

Accounting Records of the Assuming Institution (as maintained in accordance with generally 

accepted accounting principles) as of the date as of which the Related Liability Amount is being 

determined. With respect to a liability that relates to more than one asset, the amount of such 

Related Liability shall be allocated among such assets for the purpose of determining the Related 

Liability Amount with respect to any one of such assets. Such allocation shall be made by 

specific allocation, where determinable, and otherwise shall be pro rata based upon the dollar 

amount of such assets stated on the Accounting Records of the entity that owns such asset. 

"Repurchase Price" means, with respect to any Loan, first taking the Book 

Value of the Asset at Bank Closing and either subtracting the Asset discount or adding the Asset 

premium, and subsequently adjusting that total by (i) adding any advances and interest on such 

Loan after Bank Closing, (ii) subtracting the total amount received by the Assuming Institution 

for such Loan after Bank Closing, regardless of how applied, and (iii) adding total disbursements 

of principal made by Receiver not otherwise included in the Book Value. 

"Safe Deposit Boxes" means the safe deposit boxes of the Failed Bank, if any, 

including the removable safe deposit boxes and safe deposit stacks in the Failed Bank's vault(s), 

all rights and benefits under rental agreements with respect to such safe deposit boxes, and all 

keys and combinations thereto. 

"Settlement Date" means the first Business Day immediately prior to the day 

which is three hundred sixty-five (365) days after Bank Closing, or such other date prior thereto 

as may be agreed upon by the Receiver and the Assuming Institution. The Receiver, in its 

discretion, may extend the Settlement Date. 

"Settlement Interest Rate" means, for the first calendar quarter or portion 

thereof during which interest accrues, the rate determined by the Receiver to be equal to the 

Investment Rate on twenty-six (26)-week United States Treasury Bills as published the week of 

Bank Closing by the United States Treasury on the TreasuryDirect.gov website; provided, that if 

no such Investment Rate is published the week of Bank Closing, the Investment Rate for such 

Treasury Bills most recently published by the United States Treasury on TreasuryDirect.gov 

prior to Bank Closing shall be used. Thereafter, the rate shall be adjusted to the rate determined 

by the Receiver to be equal to the Investment Rate on such Treasury Bills in effect as of the first 

day of each succeeding calendar quarter during which interest accrues as published by The 

United States Treasury on the TreasuryDirect.gov website. 

"Shared-Loss Securities" means those securities and other assets listed on 

Schedule 4.15C. 

"Subsidiary" has the meaning set forth in Section 3(w)(4) of the Federal Deposit 

Insurance Act, 12 U.S.C. Section 1813(w)(4), as amended. 

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 ARTICLE II 

ASSUMPTION OF LIABILITIES

 2.1 Liabilities Assumed by Assuming Institution. The Assuming Institution 

expressly assumes at Book Value (subject to adjustment pursuant to Article VIII) and agrees to 

pay, perform, and discharge all of the following liabilities of the Failed Bank as of Bank Closing, 

except as otherwise provided in this Agreement (such liabilities referred to as "Liabilities 

Assumed"): 

(a) Assumed Deposits, except those Deposits specifically listed on Schedule 

2.1(a); provided, that as to any Deposits of public money which are Assumed 

Deposits, the Assuming Institution agrees to properly secure such Deposits with 

such Assets as appropriate which, prior to Bank Closing, were pledged as 

security by the Failed Bank, or with assets of the Assuming Institution, if such 

securing Assets, if any, are insufficient to properly secure such Deposits; 

(b) liabilities for indebtedness secured by mortgages, deeds of trust, chattel 

mortgages, security interests or other liens on or affecting any Assets, if any; 

provided, that the assumption of any liability pursuant to this paragraph shall be 

limited to the market value of the Assets securing such liability as determined by 

the Receiver; 

(c) borrowings from Federal Reserve Banks and Federal Home Loan Banks, 

if any, provided, that the assumption of any liability pursuant to this paragraph 

shall be limited to the market value of the assets securing such liability as 

determined by the Receiver; and overdrafts, debit balances, service charges, 

reclamations, and adjustments to accounts with the Federal Reserve Banks as 

reflected on the books and records of any such Federal Reserve Bank within 

ninety (90) days after Bank Closing, if any; 

(d) ad valorem taxes applicable to any Asset, if any; provided, that the 

assumption of any ad valorem taxes pursuant to this paragraph shall be limited to 

an amount equal to the market value of the Asset to which such taxes apply as 

determined by the Receiver; 

(e) liabilities, if any, for federal funds purchased, repurchase agreements and 

overdrafts in accounts maintained with other depository institutions (including 

any accrued and unpaid interest thereon computed to and including Bank 

Closing); provided, that the assumption of any liability pursuant to this paragraph 

shall be limited to the market value of the Assets securing such liability as 

determined by the Receiver; 

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

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(g) liabilities for any acceptance or commercial letter of credit provided, that 

the assumption of any liability pursuant to this paragraph shall be limited to the 

market value of the Assets securing such liability as determined by the Receiver; 

(h) liabilities for any "standby letters of credit" as defined in 12 C.F.R. 

Section 337.2(a) issued on the behalf of any Obligor of a Loan acquired hereunder 

by the Assuming Institution, but excluding any other standby letters of credit; 

(i) duties and obligations assumed pursuant to this Agreement including 

without limitation those relating to the Failed Bank's Records, credit card 

business, debit card business, stored value and gift card business, overdraft 

protection plans, safe deposit business, safekeeping business, or trust business, if 

any; and 

(j) liabilities, if any, for Commitments; 

(k) liabilities, if any, for amounts owed to any Subsidiary of the Failed Bank 

acquired under Section 3.1; 

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

(m) liabilities, if any, under any contract pursuant to which mortgage servicing 

is provided to the Failed Bank by others; and 

(n) all asset-related offensive litigation liabilities and all asset-related 

defensive litigation liabilities, but only to the extent such liabilities relate to assets 

subject to a shared-loss agreement, and provided that all other defensive litigation 

and any class actions with respect to credit card business are retained by the 

Receiver. 

2.2 Interest on Deposit Liabilities. The Assuming Institution agrees that, from and 

after Bank Closing, it will accrue and pay interest on Deposit liabilities assumed pursuant to 

Section 2.1 at a rate(s) it shall determine; provided, that for non-transaction Deposit liabilities 

such rate(s) shall not be less than the lowest rate offered by the Assuming Institution to its 

depositors for non-transaction deposit accounts. The Assuming Institution shall permit each 

depositor to withdraw, without penalty for early withdrawal, all or any portion of such 

depositor's Deposit, whether or not the Assuming Institution elects to pay interest in accordance 

with any deposit agreement formerly existing between the Failed Bank and such depositor; and 

further provided, that if such Deposit has been pledged to secure an obligation of the depositor or 

other party, any withdrawal thereof shall be subject to the terms of the agreement governing such 

pledge. The Assuming Institution shall give notice to such depositors as provided in Section 5.3 

of the rate(s) of interest which it has determined to pay and of such withdrawal rights. 

2.3 Unclaimed Deposits. Fifteen (15) months following the Bank Closing Date, the 

Assuming Institution will provide the Receiver a listing of all deposit accounts, including the 

type of account, not claimed by the depositor. The Receiver will review the list and authorize 

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the Assuming Institution to act on behalf of the Receiver to send a “Final Legal Notice” in a 

form substantially similar to Exhibit 2.3A to the owner(s) of the unclaimed deposits reminding 

them of the need to claim or arrange to continue their account(s) with the Assuming Institution. 

The Assuming Institution will send the “Final Legal Notice” to the depositors within thirty (30) 

days following notification of the Receiver’s authorization. The Assuming Institution will 

prepare an Affidavit of Mailing and will forward the Affidavit of Mailing to the Receiver after 

mailing out the “Final Legal Notice” in a form substantially similar to Exhibit 2.3B to the 

owner(s) of unclaimed deposit accounts. 

If, within eighteen (18) months after Bank Closing, any depositor of the Failed Bank does 

not claim or arrange to continue such depositor’s Deposit assumed pursuant to Section 2.1 at the 

Assuming Institution, the Assuming Institution shall, within fifteen (15) Business Days after the 

end of such eighteen (18) month period, (i) refund to the Receiver the full amount of each such 

deposit (without reduction for service charges), (ii) provide to the Receiver a schedule of all such 

refunded Deposits in such form as may be prescribed by the Receiver, and (iii) assign, transfer, 

convey, and deliver to the Receiver, all right, title, and interest of the Assuming Institution in and 

to the Records previously transferred to the Assuming Institution and other records generated or 

maintained by the Assuming Institution pertaining to such Deposits. During such eighteen (18) 

month period, at the request of the Receiver, the Assuming Institution promptly shall provide to 

the Receiver schedules of unclaimed deposits in such form as may be prescribed by the Receiver. 

2.4 Employee Plans. Except as provided in Section 4.12, the Assuming Institution 

shall have no liabilities, obligations or responsibilities under the Failed Bank's health care, 

bonus, vacation, pension, profit sharing, deferred compensation, 401K or stock purchase plans or 

similar plans, if any, unless the Receiver and the Assuming Institution agree otherwise 

subsequent to the date of this Agreement. 

ARTICLE III 

PURCHASE OF ASSETS

 3.1 Assets Purchased by Assuming Institution. With the exception of certain assets 

expressly excluded in Sections 3.5 and 3.6, the Assuming Institution hereby purchases from the 

Receiver, and the Receiver hereby sells, assigns, transfers, conveys, and delivers to the 

Assuming Institution, all right, title, and interest of the Receiver in and to all of the assets (real, 

personal and mixed, wherever located and however acquired) including all subsidiaries, joint 

ventures, partnerships, and any and all other business combinations or arrangements, whether 

active, inactive, dissolved or terminated, of the Failed Bank whether or not reflected on the 

books of the Failed Bank as of Bank Closing. Assets are purchased hereunder by the Assuming 

Institution subject to all liabilities for indebtedness collateralized by Liens affecting such Assets 

to the extent provided in Section 2.1. 

3.2 Asset Purchase Price. 

(a) All Assets and assets of the Failed Bank subject to an option to purchase by the 

Assuming Institution shall be purchased for the amount, or the amount resulting from the method 

specified for determining the amount, as specified on Schedule 3.2, except as otherwise may be 

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provided herein. Any Asset, asset of the Failed Bank subject to an option to purchase or other 

asset purchased for which no purchase price is specified on Schedule 3.2 or otherwise herein 

shall be purchased at its Book Value. Loans or other assets charged off the Accounting Records 

of the Failed Bank before the Bid Valuation Date shall be purchased at a price of zero. 

(b) The purchase price for securities (other than the capital stock of any Acquired 

Subsidiary, Shared-Loss Securities, and FHLB stock) purchased under Section 3.1 by the 

Assuming Institution shall be the market value thereof as of Bank Closing, which market value 

shall be (i) the market price for each such security quoted at the close of the trading day effective 

on Bank Closing as published electronically by Bloomberg, L.P., or alternatively, at the 

discretion of the Receiver, IDC/Financial Times (FT) Interactive Data; (ii) provided, that if such 

market price is not available for any such security, the Assuming Institution will submit a bid for 

each such security within three days of notification/bid request by the Receiver (unless a 

different time period is agreed to by the Assuming Institution and the Receiver) and the 

Receiver, in its sole discretion will accept or reject each such bid; and (iii) further provided in the 

absence of an acceptable bid from the Assuming Institution, each such security shall not pass to 

the Assuming Institution and shall be deemed to be an excluded asset hereunder. 

(c) Qualified Financial Contracts shall be purchased at market value determined in 

accordance with the terms of Exhibit 3.2(c). Any costs associated with such valuation shall be 

shared equally by the Receiver and the Assuming Institution. 

3.3 Manner of Conveyance; Limited Warranty; Nonrecourse; Etc. THE 

CONVEYANCE OF ALL ASSETS, INCLUDING REAL AND PERSONAL PROPERTY 

INTERESTS, PURCHASED BY THE ASSUMING INSTITUTION UNDER THIS 

AGREEMENT SHALL BE MADE, AS NECESSARY, BY RECEIVER'S DEED OR 

RECEIVER'S BILL OF SALE, "AS IS", "WHERE IS", WITHOUT RECOURSE AND, 

EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED IN THIS AGREEMENT, 

WITHOUT ANY WARRANTIES WHATSOEVER WITH RESPECT TO SUCH ASSETS, 

EXPRESS OR IMPLIED, WITH RESPECT TO TITLE, ENFORCEABILITY, 

COLLECTIBILITY, DOCUMENTATION OR FREEDOM FROM LIENS OR 

ENCUMBRANCES (IN WHOLE OR IN PART), OR ANY OTHER MATTERS. 

3.4 Puts of Assets to the Receiver. 

(a) Puts Within 30 Days After Bank Closing. During the thirty (30)-day period 

following Bank Closing and only during such period (which thirty (30)-day period may be 

extended in writing in the sole absolute discretion of the Receiver for any Loan), in accordance 

with this Section 3.4, the Assuming Institution shall be entitled to require the Receiver to 

purchase any Deposit Secured Loan transferred to the Assuming Institution pursuant to Section 

3.1 which is not fully secured by Assumed Deposits or deposits at other insured depository 

institutions due to either insufficient Assumed Deposit or deposit collateral or deficient 

documentation regarding such collateral; provided with regard to any Deposit Secured Loan 

secured by an Assumed Deposit, no such purchase may be required until any Deposit setoff 

determination, whether voluntary or involuntary, has been made; and, 

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at the end of the thirty (30)-day period following Bank Closing and at that time only, in 

accordance with this Section 3.4, the Assuming Institution shall be entitled to require the 

Receiver to purchase any remaining overdraft transferred to the Assuming Institution pursuant to 

3.1 which both was made after the Bid Valuation Date and was not made pursuant to an 

overdraft protection plan or similar extension of credit. 

Notwithstanding the foregoing, the Assuming Institution shall not have the right to require the 

Receiver to purchase any Loan if (i) the Obligor with respect to such Loan is an Acquired 

Subsidiary, or (ii) the Assuming Institution has: 

(A) made any advance in accordance with the terms of a Commitment or 

otherwise with respect to such Loan; 

(B) taken any action that increased the amount of a Related Liability with 

respect to such Loan over the amount of such liability immediately prior to 

the time of such action; 

(C) created or permitted to be created any Lien on such Loan which secures 

indebtedness for money borrowed or which constitutes a conditional sales 

agreement, capital lease or other title retention agreement; 

(D) entered into, agreed to make, grant or permit, or made, granted or 

permitted any modification or amendment to, any waiver or extension 

with respect to, or any renewal, refinancing or refunding of, such Loan or 

related Credit Documents or collateral, including, without limitation, any 

act or omission which diminished such collateral; or 

(E) sold, assigned or transferred all or a portion of such Loan to a third party 

(whether with or without recourse). 

The Assuming Institution shall transfer all such Assets to the Receiver without recourse, and 

shall indemnify the Receiver against any and all claims of any Person claiming by, through or 

under the Assuming Institution with respect to any such Asset, as provided in Section 12.4. 

(b) Puts Prior to the Settlement Date. During the period from the Bank Closing 

Date to and including the Business Day immediately preceding the Settlement Date, the 

Assuming Institution shall be entitled to require the Receiver to purchase any Asset which the 

Assuming Institution can establish is evidenced by forged or stolen instruments as of the Bank 

Closing Date; provided, that, the Assuming Institution shall not have the right to require the 

Receiver to purchase any such Asset with respect to which the Assuming Institution has taken 

any action referred to in Section 3.4(a)(ii) with respect to such Asset. The Assuming Institution 

shall transfer all such Assets to the Receiver without recourse, and shall indemnify the Receiver 

against any and all claims of any Person claiming by, through or under the Assuming Institution 

with respect to any such Asset, as provided in Section 12.4. 

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 (c) Notices to the Receiver. In the event that the Assuming Institution elects to 

require the Receiver to purchase one or more Assets, the Assuming Institution shall deliver to the 

Receiver a notice (a "Put Notice") which shall include: 

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

purchase; 

(ii)	 a list of all Related Liabilities with respect to the Assets identified 

pursuant to (i) above; and 

(iii) a statement of the estimated Repurchase Price of each Asset identified 

pursuant to (i) above as of the applicable Put Date. 

Such notice shall be in the form prescribed by the Receiver or such other form to which the 

Receiver shall consent. As provided in Section 9.6, the Assuming Institution shall deliver to the 

Receiver such documents, Credit Files and such additional information relating to the subject 

matter of the Put Notice as the Receiver may request and shall provide to the Receiver full access 

to all other relevant books and records. 

(d) Purchase by Receiver. The Receiver shall purchase Assets that are specified in 

the Put Notice and shall assume Related Liabilities with respect to such Assets, and the transfer 

of such Assets and Related Liabilities shall be effective as of a date determined by the Receiver 

which date shall not be later than thirty (30) days after receipt by the Receiver of the Put Notice 

(the "Put Date"). 

(e) Purchase Price and Payment Date. Each Asset purchased by the Receiver 

pursuant to this Section 3.4 shall be purchased at a price equal to the Repurchase Price of such 

Asset less the Related Liability Amount applicable to such Asset, in each case determined as of 

the applicable Put Date. If the difference between such Repurchase Price and such Related 

Liability Amount is positive, then the Receiver shall pay to the Assuming Institution the amount 

of such difference; if the difference between such amounts is negative, then the Assuming 

Institution shall pay to the Receiver the amount of such difference. The Assuming Institution or 

the Receiver, as the case may be, shall pay the purchase price determined pursuant to this Section 

3.4(d) not later than the twentieth (20th) Business Day following the applicable Put Date, 

together with interest on such amount at the Settlement Interest Rate for the period from and 

including such Put Date to and including the day preceding the date upon which payment is 

made. 

(f) Servicing. The Assuming Institution shall administer and manage any Asset 

subject to purchase by the Receiver in accordance with usual and prudent banking standards and 

business practices until such time as such Asset is purchased by the Receiver. 

(g) Reversals. In the event that the Receiver purchases an Asset (and assumes the 

Related Liability) that it is not required to purchase pursuant to this Section 3.4, the Assuming 

Institution shall repurchase such Asset (and assume such Related Liability) from the Receiver at 

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a price computed so as to achieve the same economic result as would apply if the Receiver had 

never purchased such Asset pursuant to this Section 3.4. 

3.5 Assets Not Purchased by Assuming Institution. The Assuming Institution does 

not purchase, acquire or assume, or (except as otherwise expressly provided in this Agreement) 

obtain an option to purchase, acquire or assume under this Agreement: 

(a) any financial institution bonds, banker's blanket bonds, or public liability, fire, 

extended coverage insurance policy, bank owned life insurance or any other insurance policy of 

the Failed Bank, or premium refund, unearned premium derived from cancellation, or any 

proceeds payable with respect to any of the foregoing; 

(b) any interest, right, action, claim, or judgment against (i) any officer, director, 

employee, accountant, attorney, or any other Person employed or retained by the Failed Bank or 

any Subsidiary of the Failed Bank on or prior to Bank Closing arising out of any act or omission 

of such Person in such capacity, (ii) any underwriter of financial institution bonds, banker's 

blanket bonds or any other insurance policy of the Failed Bank, (iii) any shareholder or holding 

company of the Failed Bank, or (iv) any other Person whose action or inaction may be related to 

any loss (exclusive of any loss resulting from such Person's failure to pay on a Loan made by the 

Failed Bank) incurred by the Failed Bank; provided, that for the purposes hereof, the acts, 

omissions or other events giving rise to any such claim shall have occurred on or before Bank 

Closing, regardless of when any such claim is discovered and regardless of whether any such 

claim is made with respect to a financial institution bond, banker's blanket bond, or any other 

insurance policy of the Failed Bank in force as of Bank Closing; 

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

(d) legal or equitable interests in tax receivables of the Failed Bank, if any, including 

any claims arising as a result of the Failed Bank having entered into any agreement or otherwise 

being joined with another Person with respect to the filing of tax returns or the payment of taxes; 

(e) amounts reflected on the Accounting Records of the Failed Bank as of Bank 

Closing as a general or specific loss reserve or contingency account, if any; 

(f) leased or owned Bank Premises and leased or owned Furniture and Equipment 

and Fixtures and Data Processing Equipment located on leased or owned Bank Premises, if any; 

provided, that the Assuming Institution does obtain an option under Section 4.6, Section 4.7 or 

Section 4.8, as the case may be, with respect thereto; 

(g) owned Bank Premises which the Receiver, in its discretion, determines may 

contain environmentally hazardous substances; 

(h) any "goodwill," as such term is defined in the instructions to the report of 

condition prepared by banks examined by the Corporation in accordance with 12 C.F.R. Section 

304.3, and other intangibles (other than intellectual property); 

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

(j) (1) BBHB, LLC subsidiary; 

(2) 1.27 acre real estate parcel – commonly known as 2508-2516 North Gulf 

Drive, Bradenton, Florida 

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

(l) the securities listed on the attached Schedule 3.5(l); 

(m)	 Federal Reserve Bank stock and its cash equivalent; 

(n) prepaid accounts associated with any contract or agreement that the Assuming 

Institution either does not directly assume pursuant to the terms of this Agreement nor 

has an option to assume under Section 4.8; and 

(o) any contract pursuant to which the Failed Bank provides mortgage servicing for 

others. 

3.6	 Retention or Repurchase of Assets Essential to Receiver. 

(a) The Receiver may refuse to sell to the Assuming Institution, or the Assuming 

Institution agrees, at the request of the Receiver set forth in a written notice to the Assuming 

Institution, to assign, transfer, convey, and deliver to the Receiver all of the Assuming 

Institution's right, title and interest in and to, any Asset or asset essential to the Receiver as 

determined by the Receiver in its discretion (together with all Credit Documents evidencing or 

pertaining thereto), which may include any Asset or asset that the Receiver determines to be: 

(i) made to an officer, director, or other Person engaging in the affairs of the 

Failed Bank, its Subsidiaries or Affiliates or any related entities of any of 

the foregoing; 

(ii) the subject of any investigation relating to any claim with respect to any 

item described in Section 3.5(a) or (b), or the subject of, or potentially the 

subject of, any legal proceedings; 

(iii) made to a Person who is an Obligor on a loan owned by the Receiver or 

the Corporation in its corporate capacity or its capacity as receiver of any 

institution; 

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

or 

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 (v)	 related to any asset of the Failed Bank not purchased by the Assuming 

Institution under this Article III or any liability of the Failed Bank not 

assumed by the Assuming Institution under Article II. 

(b) Each such Asset or asset purchased by the Receiver shall be purchased at a price 

equal to the Repurchase Price thereof less the Related Liability Amount with respect to any 

Related Liabilities related to such Asset or asset, in each case determined as of the date of the 

notice provided by the Receiver pursuant to Section 3.6(a). The Receiver shall pay the Assuming 

Institution not later than the twentieth (20th) Business Day following receipt of related Credit 

Documents and Credit Files together with interest on such amount at the Settlement Interest Rate 

for the period from and including the date of receipt of such documents to and including the day 

preceding the day on which payment is made. The Assuming Institution agrees to administer and 

manage each such Asset or asset in accordance with usual and prudent banking standards and 

business practices until each such Asset or asset is purchased by the Receiver. All transfers with 

respect to Asset or assets under this Section 3.6 shall be made as provided in Section 9.6. The 

Assuming Institution shall transfer all such Asset or assets and Related Liabilities to the Receiver 

without recourse, and shall indemnify the Receiver against any and all claims of any Person 

claiming by, through or under the Assuming Institution with respect to any such Asset or asset, 

as provided in Section 12.4. 

3.7 Receiver’s Offer to Sell Withheld Loans. For the period of 30 days 

commencing the day after the Bank Closing Date, the Receiver may sell, in its sole discretion, 

and the Assuming Institution, may purchase, in its sole discretion, at Book Value as of the Bank 

Closing Date, any Loans initially withheld from sale to the Assuming Institution pursuant to 

Sections 3.5 or 3.6 of this Agreement. Except for the sales price, Loans sold under this section 

will be treated as if initially sold under Section 3.1 of this Agreement, and will be subject to all 

relevant terms of this Agreement as similarly situated Loans sold and transferred pursuant to this 

Agreement, provided that, no Loan shall be a Shared Loss Loan pursuant to the Shared Loss 

Agreements as defined in Section 4.15 hereof if it does not meet the definition of Shared Loss 

Loan in the applicable Shared Loss Agreement. Payment for Loans sold under this section will 

be handled through the Settlement process. 

 ARTICLE IV 

ASSUMPTION OF CERTAIN DUTIES AND OBLIGATIONS
 

The Assuming Institution agrees with the Receiver and the Corporation as follows: 

4.1 Continuation of Banking Business. For the period commencing the first banking 

Business Day after Bank Closing and ending no earlier than the first anniversary of Bank 

Closing, the Assuming Institution will provide full service banking in the trade area of the Failed 

Bank; provided however, the Assuming Institution may close the Failed Bank’s Brandon branch 

within the 120-day period following Bank Closing (subject to applicable rules, regulations and 

notice requirements regarding branch closings). Thereafter, the Assuming Institution may cease 

providing such banking services in the trade area of the Failed Bank, provided the Assuming 

Institution has received all necessary regulatory approvals. At the option of the Assuming 

Institution, such banking services may be provided at any or all of the Bank Premises, or at other 

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premises within such trade area. The trade area shall be determined by the Receiver. For the 

avoidance of doubt, the foregoing shall not restrict the Assuming Institution from opening, 

closing or selling branches upon receipt of the necessary regulatory approvals, if the Assuming 

Institution or its successors continue to provide banking services in the trade area. Assuming 

Institution will pay to the Receiver, upon the sale of a branch or branches within the year 

following the date of this agreement, fifty percent (50%) of any franchise premium in excess of 

the franchise premium paid by the Assuming Institution with respect to such branch or branches. 

4.2 Agreement with Respect to Credit Card Business. The Assuming Institution 

agrees to honor and perform, from and after Bank Closing, all duties and obligations with respect 

to the Failed Bank's credit card business (including issuer or merchant acquirer) debit card 

business, stored value and gift card business, and/or processing related to credit cards, if any, and 

assumes all outstanding extensions of credit or balances with respect to these lines of business. 

4.3 Agreement with Respect to Safe Deposit Business. The Assuming Institution 

assumes and agrees to discharge, from and after Bank Closing, in the usual course of conducting 

a banking business, the duties and obligations of the Failed Bank with respect to all Safe Deposit 

Boxes, if any, of the Failed Bank and to maintain all of the necessary facilities for the use of such 

boxes by the renters thereof during the period for which such boxes have been rented and the 

rent therefore paid to the Failed Bank, subject to the provisions of the rental agreements between 

the Failed Bank and the respective renters of such boxes; provided, that the Assuming Institution 

may relocate the Safe Deposit Boxes of the Failed Bank to any office of the Assuming Institution 

located in the trade area of the Failed Bank. The Safe Deposit Boxes shall be located and 

maintained in the trade area of the Failed Bank for a minimum of one year from Bank Closing. 

The trade area shall be determined by the Receiver. Fees related to the safe deposit business 

earned prior to the Bank Closing Date shall be for the benefit of the Receiver and fees earned 

after the Bank Closing Date shall be for the benefit of the Assuming Institution. 

4.4 Agreement with Respect to Safekeeping Business. The Receiver transfers, 

conveys and delivers to the Assuming Institution and the Assuming Institution accepts all 

securities and other items, if any, held by the Failed Bank in safekeeping for its customers as of 

Bank Closing. The Assuming Institution assumes and agrees to honor and discharge, from and 

after Bank Closing, the duties and obligations of the Failed Bank with respect to such securities 

and items held in safekeeping. The Assuming Institution shall be entitled to all rights and 

benefits heretofore accrued or hereafter accruing with respect thereto. The Assuming Institution 

shall provide to the Receiver written verification of all assets held by the Failed Bank for 

safekeeping within sixty (60) days after Bank Closing. The assets held for safekeeping by the 

Failed Bank shall be held and maintained by the Assuming Institution in the trade area of the 

Failed Bank for a minimum of one year from Bank Closing. At the option of the Assuming 

Institution, the safekeeping business may be provided at any or all of the Bank Premises, or at 

other premises within such trade area. The trade area shall be determined by the Receiver. Fees 

related to the safekeeping business earned prior to the Bank Closing Date shall be for the benefit 

of the Receiver and fees earned after the Bank Closing Date shall be for the benefit of the 

Assuming Institution. 

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 4.5 Agreement with Respect to Trust Business. 

(a) The Assuming Institution shall, without further transfer, substitution, act or deed, 

to the full extent permitted by law, succeed to the rights, obligations, properties, assets, 

investments, deposits, agreements, and trusts of the Failed Bank under trusts, executorships, 

administrations, guardianships, and agencies, and other fiduciary or representative capacities, all 

to the same extent as though the Assuming Institution had assumed the same from the Failed 

Bank prior to Bank Closing; provided, that any liability based on the misfeasance, malfeasance 

or nonfeasance of the Failed Bank, its directors, officers, employees or agents with respect to the 

trust business is not assumed hereunder. 

(b) The Assuming Institution shall, to the full extent permitted by law, succeed to, 

and be entitled to take and execute, the appointment to all executorships, trusteeships, 

guardianships and other fiduciary or representative capacities to which the Failed Bank is or may 

be named in wills, whenever probated, or to which the Failed Bank is or may be named or 

appointed by any other instrument. 

(c) In the event additional proceedings of any kind are necessary to accomplish the 

transfer of such trust business, the Assuming Institution agrees that, at its own expense, it will 

take whatever action is necessary to accomplish such transfer. The Receiver agrees to use 

reasonable efforts to assist the Assuming Institution in accomplishing such transfer. 

(d) The Assuming Institution shall provide to the Receiver written verification of the 

assets held in connection with the Failed Bank's trust business within sixty (60) days after Bank 

Closing. 

4.6 Agreement with Respect to Bank Premises. 

(a) Option to Purchase. Subject to Section 3.5, the Receiver hereby grants to the 

Assuming Institution an exclusive option for the period of ninety (90) days commencing the day 

after Bank Closing to purchase any or all owned Bank Premises, including all Fixtures, Furniture 

and Equipment located on the Bank Premises. The Assuming Institution shall give written notice 

to the Receiver within the option period of its election to purchase or not to purchase any of the 

owned Bank Premises. Any purchase of such premises shall be effective as of the date of Bank 

Closing and such purchase shall be consummated as soon as practicable thereafter, and in no 

event later than the Settlement Date. If the Assuming Institution gives notice of its election not 

to purchase one or more of the owned Bank Premises within seven (7) days of Bank Closing, 

then, not withstanding any other provision of this Agreement to the contrary, the Assuming 

Institution shall not be liable for any of the costs or fees associated with appraisals for such Bank 

Premises and associated Fixtures, Furniture and Equipment. 

(b) Option to Lease. The Receiver hereby grants to the Assuming Institution an 

exclusive option for the period of ninety (90) days commencing the day after Bank Closing to 

cause the Receiver to assign to the Assuming Institution any or all leases for leased Bank 

Premises, if any, which have been continuously occupied by the Assuming Institution from Bank 

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Closing to the date it elects to accept an assignment of the leases with respect thereto to the 

extent such leases can be assigned; provided, that the exercise of this option with respect to any 

lease must be as to all premises or other property subject to the lease. If an assignment cannot be 

made of any such leases, the Receiver may, in its discretion, enter into subleases with the 

Assuming Institution containing the same terms and conditions provided under such existing 

leases for such leased Bank Premises or other property. The Assuming Institution shall give 

notice to the Receiver within the option period of its election to accept or not to accept an 

assignment of any or all leases (or enter into subleases or new leases in lieu thereof). The 

Assuming Institution agrees to assume all leases assigned (or enter into subleases or new leases 

in lieu thereof) pursuant to this Section 4.6. If the Assuming Institution gives notice of its 

election not to accept an assignment of a lease for one or more of the leased Bank Premises 

within seven (7) days of Bank Closing, then, not withstanding any other provision of this 

Agreement to the contrary, the Assuming Institution shall not be liable for any of the costs or 

fees associated with appraisals for the Fixtures, Furniture and Equipment located on such leased 

Bank Premises. 

(c) Facilitation. The Receiver agrees to facilitate the assumption, assignment or 

sublease of leases or the negotiation of new leases by the Assuming Institution; provided, that 

neither the Receiver nor the Corporation shall be obligated to engage in litigation, make 

payments to the Assuming Institution or to any third party in connection with facilitating any 

such assumption, assignment, sublease or negotiation or commit to any other obligations to third 

parties. 

(d) Occupancy. The Assuming Institution shall give the Receiver fifteen (15) days' 

prior written notice of its intention to vacate prior to vacating any leased Bank Premises with 

respect to which the Assuming Institution has not exercised the option provided in Section 

4.6(b). Any such notice shall be deemed to terminate the Assuming Institution's option with 

respect to such leased Bank Premises. 

(e) Occupancy Costs. 

(i) The Assuming Institution agrees to pay to the Receiver, or to appropriate 

third parties at the direction of the Receiver, during and for the period of any occupancy by it of 

(x) owned Bank Premises the market rental value, as determined by the appraiser selected in 

accordance with the definition of Fair Market Value, and all operating costs, and (y) leased Bank 

Premises, all operating costs with respect thereto and to comply with all relevant terms of 

applicable leases entered into by the Failed Bank, including without limitation the timely 

payment of all rent. Operating costs include, without limitation all taxes, fees, charges, utilities, 

insurance and assessments, to the extent not included in the rental value or rent. If the Assuming 

Institution elects to purchase any owned Bank Premises in accordance with Section 4.6(a), the 

amount of any rent paid (and taxes paid to the Receiver which have not been paid to the taxing 

authority and for which the Assuming Institution assumes liability) by the Assuming Institution 

with respect thereto shall be applied as an offset against the purchase price thereof. 

(ii) The Assuming Institution agrees during the period of occupancy by it of 

owned or leased Bank Premises, to pay to the Receiver rent for the use of all owned or leased 

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Furniture and Equipment and all owned or leased Fixtures located on such Bank Premises for the 

period of such occupancy. Rent for such property owned by the Failed Bank shall be the market 

rental value thereof, as determined by the Receiver within sixty (60) days after Bank Closing. 

Rent for such leased property shall be an amount equal to any and all rent and other amounts 

which the Receiver incurs or accrues as an obligation or is obligated to pay for such period of 

occupancy pursuant to all leases and contracts with respect to such property. If the Assuming 

Institution purchases any owned Furniture and Equipment or owned Fixtures in accordance with 

Section 4.6(f) or 4.6(h), the amount of any rents paid by the Assuming Institution with respect 

thereto shall be applied as an offset against the purchase price thereof. 

(f) Certain Requirements as to Fixtures, Furniture and Equipment. If the 

Assuming Institution purchases owned Bank Premises or accepts an assignment of the lease (or 

enters into a sublease or a new lease in lieu thereof) for leased Bank Premises as provided in 

Section 4.6(a) or 4.6(b), or if the Assuming Institution does not exercise such option but within 

twelve (12) months following Bank Closing obtains the right to occupy such premises (whether 

by assignment, lease, sublease, purchase or otherwise), other than in accordance with Section 

4.6(a) or (b), the Assuming Institution shall (i) effective as of the date of Bank Closing, purchase 

from the Receiver all Fixtures, Furniture and Equipment owned by the Failed Bank at Fair 

Market Value and located thereon as of Bank Closing, (ii) accept an assignment or a sublease of 

the leases or negotiate new leases for all Fixtures, Furniture and Equipment leased by the Failed 

Bank and located thereon, and (iii) if applicable, accept an assignment or a sublease of any 

ground lease or negotiate a new ground lease with respect to any land on which such Bank 

Premises are located; provided, that the Receiver shall not have disposed of such Fixtures, 

Furniture and Equipment or repudiated the leases specified in clause (ii) or (iii). 

(g) Vacating Premises. 

(i) If the Assuming Institution elects not to purchase any owned Bank 

Premises, the notice of such election in accordance with Section 4.6(a) shall specify the date 

upon which the Assuming Institution's occupancy of such premises shall terminate, which date 

shall not be later than ninety (90) days after the date of the Assuming Institution's notice not to 

exercise such option. The Assuming Institution shall promptly be responsible for relinquishing 

and releasing to the Receiver such premises and the Fixtures, Furniture and Equipment located 

thereon which existed at the time of Bank Closing, in the same condition as at Bank Closing and 

at the premises where it was inventoried at Bank Closing, normal wear and tear excepted. Any of 

the aforementioned which is missing will be charged to the Assuming Institution at the item’s 

Fair Market Value as set out in accordance with this Agreement. By occupying any such 

premises after the expiration of such ninety (90)-day period, the Assuming Institution shall, at 

the Receiver's option, (x) be deemed to have agreed to purchase such Bank Premises, and to 

assume all leases, obligations and liabilities with respect to leased Furniture and Equipment and 

leased Fixtures located thereon and any ground lease with respect to the land on which such 

premises are located, and (y) be required to purchase all Fixtures, Furniture and Equipment 

owned by the Failed Bank and located on such premises as of Bank Closing. 

(ii) If the Assuming Institution elects not to accept an assignment of the lease 

or sublease any leased Bank Premises, the notice of such election in accordance with Section 

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4.6(b) shall specify the date upon which the Assuming Institution's occupancy of such leased 

Bank Premises shall terminate, which date shall not be later than ninety (90) days after the date 

of the Assuming Institution's notice not to exercise such option. Upon vacating such premises, 

the Assuming Institution shall be liable for relinquishing and releasing to the Receiver such 

premises and the Fixtures, Furniture and Equipment located thereon which existed at the time of 

Bank Closing, in the same condition as at Bank Closing, and at the premises where it was 

inventoried at Bank closing, normal wear and tear excepted. Any of the aforementioned which is 

missing will be charged to the Assuming Institution at the item’s Fair Market Value as set out in 

accordance with this Agreement. By failing to provide notice of its intention to vacate such 

premises prior to the expiration of the option period specified in Section 4.6(b), or by occupying 

such premises after the one hundred eighty (180)-day period specified above in this paragraph 

(ii), the Assuming Institution shall, at the Receiver's option, (x) be deemed to have assumed all 

leases, obligations and liabilities with respect to such premises (including any ground lease with 

respect to the land on which premises are located), and leased Furniture and Equipment and 

leased Fixtures located thereon in accordance with this Section 4.6 (unless the Receiver 

previously repudiated any such lease), and (y) be required to purchase all Fixtures, Furniture and 

Equipment owned by the Failed Bank at Fair Market Value and located on such premises as of 

Bank Closing. 

(h) Furniture and Equipment and Certain Other Equipment. The Receiver 

hereby grants to the Assuming Institution an option to purchase all Furniture and Equipment 

and/or all telecommunications and check processing equipment owned by the Failed Bank at Fair 

Market Value and located at any leased Bank Premises that the Assuming Institution elects to 

vacate or which it could have, but did not occupy, pursuant to this Section 4.6; provided, that, the 

Assuming Institution shall give the Receiver notice of its election to purchase such property at 

the time it gives notice of its intention to vacate such Bank Premises or within ten (10) days after 

Bank Closing for Bank Premises it could have, but did not, occupy. 

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

Equipment. 

(i) For a period of ninety (90) days following Bank Closing, the Assuming 

Institution shall be entitled to require the Receiver to purchase any Bank Premises that is owned, 

directly or indirectly, by an Acquired Subsidiary and the purchase price paid by the Receiver 

shall be the Fair Market Value of the Bank Premises. 

(ii) If the Assuming Institution elects to require the Receiver to purchase any 

Bank Premises that is owned, directly or indirectly, by an Acquired Subsidiary, the Assuming 

Institution shall also have the option, exercisable within the same ninety (90) day time period, to 

require the Receiver to purchase any Fixtures, Furniture and Equipment that is owned, directly or 

indirectly, by an Acquired Subsidiary and which is located on such Bank Premises. The 

purchase price paid by the Receiver shall be the Fair Market Value of the Fixtures, Furniture and 

Equipment. 

(iii) In the event the Assuming Institution elects to exercise its option under 

this subparagraph, the Assuming Institution shall pay to the Receiver occupancy costs in 

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accordance with Section 4.6(e) and shall vacate the Bank Premises in accordance with Section 

4.6(g)(i). 

(iv) Regardless of whether the Assuming Institution exercises any of its option 

under this subparagraph, the purchase price for the Acquired Subsidiary shall be adjusted by the 

difference between the Fair Market Value of the Bank Premises and Fixtures, Furniture and 

Equipment and their respective Book Value as reflected of the books and records of the Acquired 

Subsidiary. Such adjustment shall be made in accordance with Article VIII of this Agreement. 

4.7 Agreement with Respect to Data Processing Equipment and Leases 

(a) The Receiver hereby grants to the Assuming Institution an exclusive option for 

the period of ninety (90) days commencing the day after Bank Closing to: (i) accept an 

assignment from the Receiver of all leased Data Processing Equipment and (ii) purchase at Fair 

Market Value from the Receiver all owned Data Processing Equipment. The Assuming 

Institution’s election under this option applies to both owned and leased Data Processing 

Equipment. 

(b) The Assuming Institution shall (i) give written notice to the Receiver within the 

option period specified in Section 4.7(a) of its intent to accept or decline an assignment or 

sublease of all leased Data Processing Equipment and promptly accept an assignment or sublease 

of such Data Processing Equipment, (ii) give written notice to the appropriate lessor(s) that it has 

accepted an assignment or sublease of any such Data Processing Equipment that is subject to a 

lease, and (iii) give written notice to the Receiver within the option period specified in Section 

4.7(a) of its intent to purchase all owned Data Processing Equipment and promptly pay the 

Receiver for the purchase of such Data Processing Equipment. 

(c) The Receiver agrees to facilitate the assignment or sublease of Data Processing 

Leases or the negotiation of new leases or license agreements by the Assuming Institution; 

provided, that neither the Receiver nor the Corporation shall be obligated to engage in litigation 

or make payments to the Assuming Institution or to any third party in connection with 

facilitating any such assumption, assignment, sublease or negotiation. 

(d) The Assuming Institution agrees, during its period of use of any Data Processing 

Equipment, to pay to the Receiver or to appropriate third parties at the direction of the Receiver 

all operating costs with respect thereto and to comply with all relevant terms of any existing data 

processing leases entered into by the Failed Bank, including without limitation the timely 

payment of all rent, taxes, fees, charges, utilities, insurance and assessments. 

(e) The Assuming Institution shall, not later than fifty (50) days after giving the 

notice provided in Section 4.7(b), (i) relinquish and release to the Receiver all Data Processing 

Equipment, in the same condition as at Bank Closing, normal wear and tear excepted, or (ii) 

accept an assignment or a sublease of any existing data processing lease or negotiate a new lease 

or license agreement under this Section 4.7 with respect to leased Data Processing Equipment, 

and (iii) accept ownership of all Data Processing Equipment purchased from the Receiver. 

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4.8 Agreement with Respect to Certain Existing Agreements. 

(a) Subject to the provisions of Section 4.8(b), with respect to agreements existing as 

of Bank Closing which provide for the rendering of services by or to the Failed Bank, within 

thirty (30) days after Bank Closing, the Assuming Institution shall give the Receiver written 

notice specifying whether it elects to assume or not to assume each such agreement. Except as 

may be otherwise provided in this Article IV, the Assuming Institution agrees to comply with the 

terms of each such agreement for a period commencing on the day after Bank Closing and 

ending on: (i) in the case of an agreement that provides for the rendering of services by the 

Failed Bank, the date which is ninety (90) days after Bank Closing, and (ii) in the case of an 

agreement that provides for the rendering of services to the Failed Bank, the date which is thirty 

(30) days after the Assuming Institution has given notice to the Receiver of its election not to 

assume such agreement; provided, that the Receiver can reasonably make such service 

agreements available to the Assuming Institution. The Assuming Institution shall be deemed by 

the Receiver to have assumed agreements for which no notification is timely given. The Receiver 

agrees to assign, transfer, convey, and deliver to the Assuming Institution all right, title and 

interest of the Receiver, if any, in and to agreements the Assuming Institution assumes 

hereunder. In the event the Assuming Institution elects not to accept an assignment of any lease 

(or sublease) or negotiate a new lease for leased Bank Premises under Section 4.6 and does not 

otherwise occupy such premises, the provisions of this Section 4.8(a) shall not apply to service 

agreements related to such premises. The Assuming Institution agrees, during the period it has 

the use or benefit of any such agreement, promptly to pay to the Receiver or to appropriate third 

parties at the direction of the Receiver all operating costs with respect thereto and to comply with 

all relevant terms of such agreement. 

(b) The provisions of Section 4.8(a) regarding the Assuming Institution’s election to assume 

or not assume certain agreements shall not apply to (i) agreements pursuant to which the Failed 

Bank provides mortgage servicing for others or mortgage servicing is provided to the Failed 

Bank by others, (ii) agreements that are subject to Sections 4.1 through 4.7 and any insurance 

policy or bond referred to in Section 3.5(a) or other agreement specified in Section 3.5, and (iii) 

consulting, management or employment agreements, if any, between the Failed Bank and its 

employees or other Persons. Except as otherwise expressly set forth elsewhere in this 

Agreement, the Assuming Institution does not assume any liabilities or acquire any rights under 

any of the agreements described in this Section 4.8(b). 

4.9 Informational Tax Reporting. The Assuming Institution agrees to perform all 

obligations of the Failed Bank with respect to Federal and State income tax informational 

reporting related to (i) the Assets and the Liabilities Assumed, (ii) deposit accounts that were 

closed and loans that were paid off or collateral obtained with respect thereto prior to Bank 

Closing, (iii) miscellaneous payments made to vendors of the Failed Bank, and (iv) any other 

asset or liability of the Failed Bank, including, without limitation, loans not purchased and 

Deposits not assumed by the Assuming Institution, as may be required by the Receiver. 

4.10 Insurance. The Assuming Institution agrees to obtain insurance coverage 

effective from and after Bank Closing, including public liability, fire and extended coverage 

insurance acceptable to the Receiver with respect to owned or leased Bank Premises that it 

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occupies, and all owned or leased Furniture and Equipment and Fixtures and leased data 

processing equipment (including hardware and software) located thereon, in the event such 

insurance coverage is not already in force and effect with respect to the Assuming Institution as 

the insured as of Bank Closing. All such insurance shall, where appropriate (as determined by 

the Receiver), name the Receiver as an additional insured. 

4.11 Office Space for Receiver and Corporation. 

(a) Office Space for Receiver and Corporation. 

(i) For the period commencing on the day following Bank Closing 

and ending on the one hundred eightieth (180th) day following Bank Closing, the Assuming 

Institution will provide to the Receiver and the Corporation, without charge, adequate and 

suitable office space (including parking facilities and vault space), furniture, equipment 

(including photocopying and telecopying machines), email accounts, network access and 

technology resources (such as shared drive), and utilities (including local telephone service and 

fax machines) (collectively, “FDIC Office Space”) at the Bank Premises occupied by the 

Assuming Institution for the Receiver use in the discharge of their respective functions with 

respect to the Failed Bank. 

(ii) Upon written notice by the Receiver or the Corporation, for the 

period commencing on the one hundred eighty first (181st) day following Bank Closing and 

ending no later than the three hundred and sixty-fifth (365th) day following Bank Closing, the 

Assuming Institution will continue to provide to the Receiver and the Corporation FDIC Office 

Space at the Bank Premises. During the period from the 181st day following Bank Closing until 

the day the FDIC and the Corporation vacate FDIC Office Space, the Receiver and the 

Corporation will pay to the Assuming Institution their respective pro rata share (based on square 

footage occupied) of (A) the market rental value for the applicable owned Bank Premises or (B) 

actual rent paid for applicable leased Bank Premises. 

(iii) If the Receiver or the Corporation determine that the space 

provided by the Assuming Institution is inadequate or unsuitable, the Receiver and the 

Corporation may relocate to other quarters having adequate and suitable FDIC Office Space and 

the costs of relocation and any rental and utility costs for the balance of the period of occupancy 

by the Receiver and the Corporation shall be borne by the Assuming Institution. 

(b) Certain Payments on behalf of Receiver and Corporation. The Assuming Institution 

will pay such bills and invoices on behalf of the Receiver and the Corporation as the Receiver or 

the Corporation may direct for the period beginning on the date of 

Bank Closing and ending on Settlement Date. The Assuming Institution shall submit its requests 

for reimbursement of such expenditures pursuant to Article VIII of this Agreement. 

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4.12 Agreement with Respect to Continuation of Group Health Plan Coverage for 

Former Employees of the Failed Bank. 

(a) The Assuming Institution agrees to assist the Receiver, as provided in this Section 

4.12, in offering individuals who were employees or former employees of the Failed Bank, or 

any of its Subsidiaries, and who, immediately prior to Bank Closing, were receiving, or were 

eligible to receive, health insurance coverage or health insurance continuation coverage from the 

Failed Bank ("Eligible Individuals"), the opportunity to obtain health insurance coverage in the 

Corporation's FIA Continuation Coverage Plan which provides for health insurance continuation 

coverage to such Eligible Individuals who are qualified beneficiaries of the Failed Bank as 

defined in Section 607 of the Employee Retirement Income Security Act of 1974, as amended 

(respectively, "qualified beneficiaries" and "ERISA"). The Assuming Institution shall consult 

with the Receiver and not later than five (5) Business Days after Bank Closing shall provide 

written notice to the Receiver of the number (if available), identity (if available) and addresses (if 

available) of the Eligible Individuals who are qualified beneficiaries of the Failed Bank and for 

whom a "qualifying event" (as defined in Section 603 of ERISA) has occurred and with respect 

to whom the Failed Bank's obligations under Part 6 of Subtitle B of Title I of ERISA have not 

been satisfied in full, and such other information as the Receiver may reasonably require. The 

Receiver shall cooperate with the Assuming Institution in order to permit it to prepare such 

notice and shall provide to the Assuming Institution such data in its possession as may be 

reasonably required for purposes of preparing such notice. 

(b) The Assuming Institution shall take such further action to assist the Receiver in 

offering the Eligible Individuals who are qualified beneficiaries of the Failed Bank the 

opportunity to obtain health insurance coverage in the Corporation's FIA Continuation Coverage 

Plan as the Receiver may direct. All expenses incurred and paid by the Assuming Institution (i) 

in connection with the obligations of the Assuming Institution under this Section 4.12, and (ii) in 

providing health insurance continuation coverage to any Eligible Individuals who are hired by 

the Assuming Institution and such employees' qualified beneficiaries shall be borne by the 

Assuming Institution. 

(c) No later than five (5) Business Days after Bank Closing, the Assuming Institution 

shall provide the Receiver with a list of all Failed Bank employees the Assuming Institution will 

not hire. Unless otherwise agreed, the Assuming Institution pays all salaries and payroll costs 

for all Failed Bank Employees until the list is provided to the Receiver. The Assuming 

Institution shall be responsible for all costs and expenses (i.e. salary, benefits, etc.) associated 

with all other employees not on that list from and after the date of delivery of the list to the 

Receiver. The Assuming Institution shall offer to the Failed Bank employees it retains 

employment benefits comparable to those the Assuming Institution offers its current employees. 

(d) This Section 4.12 is for the sole and exclusive benefit of the parties to this 

Agreement, and for the benefit of no other Person (including any former employee of the Failed 

Bank or any Subsidiary thereof or qualified beneficiary of such former employee). Nothing in 

this Section 4.12 is intended by the parties, or shall be construed, to give any Person (including 

any former employee of the Failed Bank or any Subsidiary thereof or qualified beneficiary of 

such former employee) other than the Corporation, the Receiver and the Assuming Institution 

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any legal or equitable right, remedy or claim under or with respect to the provisions of this 

Section. 

4.13 Agreement with Respect to Interim Asset Servicing. At any time after Bank 

Closing, the Receiver may establish on its books an asset pool(s) and may transfer to such asset 

pool(s) (by means of accounting entries on the books of the Receiver) all or any assets and 

liabilities of the Failed Bank which are not acquired by the Assuming Institution, including, 

without limitation, wholly unfunded Commitments and assets and liabilities which may be 

acquired, funded or originated by the Receiver subsequent to Bank Closing. The Receiver may 

remove assets (and liabilities) from or add assets (and liabilities) to such pool(s) at any time in its 

discretion. At the option of the Receiver, the Assuming Institution agrees to service, administer, 

and collect such pool assets in accordance with and for the term set forth in Exhibit 4.13 "Interim 

Asset Servicing Arrangement". 

4.14 Reserved. 

4.15 Agreement with Respect to Loss Sharing. The Assuming Institution shall be 

entitled to require reimbursement from the Receiver for loss sharing on certain loans in 

accordance with the Single Family Shared-Loss Agreement attached hereto as Exhibit 4.15A and 

the Commercial Shared-Loss Agreement attached hereto as Exhibit 4.15B, collectively, the 

“Shared-Loss Agreements.” The assets that shall be subject to the Shared-Loss Agreements are 

identified on the Schedules 4.15A through 4.15D, attached hereto. 

 ARTICLE V 

DUTIES WITH RESPECT TO DEPOSITORS OF THE FAILED BANK

 5.1 Payment of Checks, Drafts and Orders. Subject to Section 9.5, the Assuming 

Institution agrees to pay all properly drawn checks, drafts and withdrawal orders of depositors of 

the Failed Bank presented for payment, whether drawn on the check or draft forms provided by 

the Failed Bank or by the Assuming Institution, to the extent that the Deposit balances to the 

credit of the respective makers or drawers assumed by the Assuming Institution under this 

Agreement are sufficient to permit the payment thereof, and in all other respects to discharge, in 

the usual course of conducting a banking business, the duties and obligations of the Failed Bank 

with respect to the Deposit balances due and owing to the depositors of the Failed Bank assumed 

by the Assuming Institution under this Agreement. 

5.2 Certain Agreements Related to Deposits. Subject to Section 2.2, the Assuming 

Institution agrees to honor the terms and conditions of any written escrow or mortgage servicing 

agreement or other similar agreement relating to a Deposit liability assumed by the Assuming 

Institution pursuant to this Agreement. 

5.3 Notice to Depositors. 

(a) Within seven (7) days after Bank Closing, the Assuming Institution shall give 

notice by mail to each depositor of the Failed Bank of (i) the assumption of the Deposit liabilities 

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of the Failed Bank, and (ii) the procedures to claim Deposits (the Receiver shall provide item (ii) 

to Assuming Institution). The Assuming Institution shall also publish notice of its assumption of 

the Deposit liabilities of the Failed Bank in a newspaper of general circulation in the county or 

counties in which the Failed Bank was located. 

(b) Within seven (7) days after Bank Closing, the Assuming Institution shall give 

notices by mail to each depositor of the Failed Bank, as required under Section 2.2. 

(c) If the Assuming Institution proposes to charge fees different from those fees 

formerly charged by the Failed Bank, the Assuming Institution shall include its fee schedule in 

its mailed notice. 

(d) The Assuming Institution shall obtain approval of all notices and publications 

required by this Section 5.3 from counsel for the Receiver prior to mailing or publication. 

 ARTICLE VI 

RECORDS

 6.1 Transfer of Records. In accordance with Sections 2.1 and 3.1, the Receiver 

assigns, transfers, conveys and delivers to the Assuming Institution, whether located on Bank 

Premises occupied or not occupied by the Assuming Institution or at any other location, any and 

all Records of the Failed Bank, other than the following: 

(a) Records pertaining to former employees of the Failed Bank who were no longer 

employed by the Failed Bank as of Bank Closing and Records pertaining to employees of the 

Failed Bank who were employed by the Failed Bank as of Bank Closing and for whom the 

Receiver is unable to obtain a waiver to release such Records to the Assuming Institution; 

(b) Records pertaining to (i) any asset or liability of the Failed Bank retained by the 

Receiver, or (ii) any asset of the Failed Bank acquired by the Receiver pursuant to this 

Agreement; and 

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

6.2 Delivery of Assigned Records. The Receiver shall deliver to the Assuming 

Institution all Records described in Section 6.1 as soon as practicable on or after the date of this 

Agreement. 

6.3 Preservation of Records. 

(a) The Assuming Institution agrees that it will preserve and maintain for the joint benefit 

of the Receiver, the Corporation and the Assuming Institution, all Records of which it has 

custody. The Assuming Institution shall have the primary responsibility to respond to subpoenas, 

discovery requests, and other similar official inquiries and customer requests for lien releases 

with respect to the Records of which it has custody. With respect to its obligations under this 

Section regarding Electronically Stored Information, the Assuming Institution will complete the 

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Data Retention Catalog attached hereto as Schedule 6.3 and submit it to the Receiver for the 

Receiver’s approval of the Assuming Institution’s data retention plan. 

(b) With regard to all Records of which it has custody which are ten (10) years old as of 

the date of the appointment of the Receiver, the Assuming Institution agrees to request written 

permission to destroy such records by submitting a written request to destroy, specifying 

precisely which records are included in the request, to DRR– Records Manager, 

CServiceFDICDAL@FDIC.gov ; and 

(c) With regard to all Records of which it has custody which have been maintained in the 

custody of the Assuming Institution after six (6) years from the date of the appointment of the 

Receiver, the Assuming Institution agrees to request written permission to destroy such records 

by submitting a written request to destroy, specifying precisely which records are included in the 

request, to DRR– Records Manager, CServiceFDICDAL@FDIC.gov . 

6.4 Access to Records; Copies. The Assuming Institution agrees to permit the Receiver 

and the Corporation access to all Records of which the Assuming Institution has custody, and to 

use, inspect, make extracts from or request copies of any such Records in the manner and to the 

extent requested, and to duplicate, in the discretion of the Receiver or the Corporation, any 

Record in the form of microfilm or microfiche pertaining to Deposit account relationships; 

provided, that in the event that the Failed Bank maintained one or more duplicate copies of such 

microfilm or microfiche Records, the Assuming Institution hereby assigns, transfers, and 

conveys to the Corporation one such duplicate copy of each such Record without cost to the 

Corporation, and agrees to deliver to the Corporation all Records assigned and transferred to the 

Corporation under this Article VI as soon as practicable on or after the date of this Agreement. 

The party requesting a copy of any Record shall bear the cost (based on standard accepted 

industry charges to the extent applicable, as determined by the Receiver) for providing such 

duplicate Records. A copy of each Record requested shall be provided as soon as practicable by 

the party having custody thereof. 

ARTICLE VII 

BID; INITIAL PAYMENT

 The Assuming Institution has submitted to the Receiver a Deposit premium bid of 

0.00% and an Asset premium (discount) bid of $(27,000,000) (the “Bid Amount”). The Deposit 

premium bid will be applied to the total of all Assumed Deposits except for brokered, CDARS, 

and any market place or similar subscription services Deposits. On the Payment Date, the 

Assuming Institution will pay to the Corporation, or the Corporation will pay to the Assuming 

Institution, as the case may be, the Initial Payment, together with interest on such amount (if the 

Payment Date is not the day following the day of the Bank Closing Date) from and including the 

day following the Bank Closing Date to and including the day preceding the Payment Date at the 

Settlement Interest Rate. 

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ARTICLE VIII 

 ADJUSTMENTS 

8.1 Pro Forma Statement. The Receiver, as soon as practicable after Bank Closing, 

in accordance with the best information then available, shall provide to the Assuming Institution 

a pro forma statement reflecting any adjustments of such liabilities and assets as may be 

necessary. Such pro forma statement shall take into account, to the extent possible, (i) liabilities 

and assets of a nature similar to those contemplated by Section 2.1 or Section 3.1, respectively, 

which at Bank Closing were carried in the Failed Bank's suspense accounts, (ii) accruals as of 

Bank Closing for all income related to the assets and business of the Failed Bank acquired by the 

Assuming Institution hereunder, whether or not such accruals were reflected on the Accounting 

Records of the Failed Bank in the normal course of its operations, and (iii) adjustments to 

determine the Book Value of any investment in an Acquired Subsidiary and related accounts on 

the "bank only" (unconsolidated) balance sheet of the Failed Bank based on the equity method of 

accounting, whether or not the Failed Bank used the equity method of accounting for 

investments in subsidiaries, except that the resulting amount cannot be less than the Acquired 

Subsidiary's recorded equity as of Bank Closing as reflected on the Accounting Records of the 

Acquired Subsidiary. Any Loan purchased by the Assuming Institution pursuant to Section 3.1 

which the Failed Bank charged off during the period beginning the day after the Bid Valuation 

Date to the date of Bank Closing shall be deemed not to be charged off for the purposes of the 

pro forma statement, and the purchase price shall be determined pursuant to Section 3.2. 

8.2 Correction of Errors and Omissions; Other Liabilities. 

(a) In the event any bookkeeping omissions or errors are discovered in preparing any 

pro forma statement or in completing the transfers and assumptions contemplated hereby, the 

parties hereto agree to correct such errors and omissions, it being understood that, as far as 

practicable, all adjustments will be made consistent with the judgments, methods, policies or 

accounting principles utilized by the Failed Bank in preparing and maintaining Accounting 

Records, except that adjustments made pursuant to this Section 8.2(a) are not intended to bring 

the Accounting Records of the Failed Bank into accordance with generally accepted accounting 

principles. 

(b) If the Receiver discovers at any time subsequent to the date of this Agreement that 

any claim exists against the Failed Bank which is of such a nature that it would have been 

included in the liabilities assumed under Article II had the existence of such claim or the facts 

giving rise thereto been known as of Bank Closing, the Receiver may, in its discretion, at any 

time, require that such claim be assumed by the Assuming Institution in a manner consistent with 

the intent of this Agreement. The Receiver will make appropriate adjustments to the pro forma 

statement provided by the Receiver to the Assuming Institution pursuant to Section 8.1 as may 

be necessary. 

8.3 Payments. The Receiver agrees to cause to be paid to the Assuming Institution, 

or the Assuming Institution agrees to pay to the Receiver, as the case may be, on the Settlement 

Date, a payment in an amount which reflects net adjustments (including any costs, expenses and 

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fees associated with determinations of value as provided in this Agreement) made pursuant to 

Section 8.1 or Section 8.2, plus interest as provided in Section 8.4. The Receiver and the 

Assuming Institution agree to effect on the Settlement Date any further transfer of assets to or 

assumption of liabilities or claims by the Assuming Institution as may be necessary in 

accordance with Section 8.1 or Section 8.2. 

8.4 Interest. Any amounts paid under Section 8.3 or Section 8.5, shall bear interest 

for the period from and including the day following Bank Closing to and including the day 

preceding the payment at the Settlement Interest Rate. 

8.5 Subsequent Adjustments. In the event that the Assuming Institution or the 

Receiver discovers any errors or omissions as contemplated by Section 8.2 or any error with 

respect to the payment made under Section 8.3 after the Settlement Date, the Assuming 

Institution and the Receiver agree to promptly correct any such errors or omissions, make any 

payments and effect any transfers or assumptions as may be necessary to reflect any such 

correction plus interest as provided in Section 8.4. 

 ARTICLE IX 

 CONTINUING COOPERATION 

9.1 General Matters. The parties hereto agree that they will, in good faith and with 

their best efforts, cooperate with each other to carry out the transactions contemplated by this 

Agreement and to effect the purposes hereof. 

9.2 Additional Title Documents. The Receiver, the Corporation and the Assuming 

Institution each agree, at any time, and from time to time, upon the request of any party hereto, to 

execute and deliver such additional instruments and documents of conveyance as shall be 

reasonably necessary to vest in the appropriate party its full legal or equitable title in and to the 

property transferred pursuant to this Agreement or to be transferred in accordance herewith. The 

Assuming Institution shall prepare such instruments and documents of conveyance (in form and 

substance satisfactory to the Receiver) as shall be necessary to vest title to the Assets in the 

Assuming Institution. The Assuming Institution shall be responsible for recording such 

instruments and documents of conveyance at its own expense. 

9.3 Claims and Suits. 

(a) The Receiver shall have the right, in its discretion, to (i) defend or settle any claim 

or suit against the Assuming Institution with respect to which the Receiver has indemnified the 

Assuming Institution in the same manner and to the same extent as provided in Article XII, and 

(ii) defend or settle any claim or suit against the Assuming Institution with respect to any 

Liability Assumed, which claim or suit may result in a loss to the Receiver arising out of or 

related to this Agreement, or which existed against the Failed Bank on or before Bank Closing. 

The exercise by the Receiver of any rights under this Section 9.3(a) shall not release the 

Assuming Institution with respect to any of its obligations under this Agreement. 

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(b) In the event any action at law or in equity shall be instituted by any Person against 

the Receiver and the Corporation as codefendants with respect to any asset of the Failed Bank 

retained or acquired pursuant to this Agreement by the Receiver, the Receiver agrees, at the 

request of the Corporation, to join with the Corporation in a petition to remove the action to the 

United States District Court for the proper district. The Receiver agrees to institute, with or 

without joinder of the Corporation as coplaintiff, any action with respect to any such retained or 

acquired asset or any matter connected therewith whenever notice requiring such action shall be 

given by the Corporation to the Receiver. 

9.4 Payment of Deposits. In the event any depositor does not accept the obligation of 

the Assuming Institution to pay any Deposit liability of the Failed Bank assumed by the 

Assuming Institution pursuant to this Agreement and asserts a claim against the Receiver for all 

or any portion of any such Deposit liability, the Assuming Institution agrees on demand to 

provide to the Receiver funds sufficient to pay such claim in an amount not in excess of the 

Deposit liability reflected on the books of the Assuming Institution at the time such claim is 

made. Upon payment by the Assuming Institution to the Receiver of such amount, the Assuming 

Institution shall be discharged from any further obligation under this Agreement to pay to any 

such depositor the amount of such Deposit liability paid to the Receiver. 

9.5 Withheld Payments. At any time, the Receiver or the Corporation may, in its 

discretion, determine that all or any portion of any deposit balance assumed by the Assuming 

Institution pursuant to this Agreement does not constitute a "Deposit" (or otherwise, in its 

discretion, determine that it is the best interest of the Receiver or Corporation to withhold all or 

any portion of any deposit), and may direct the Assuming Institution to withhold payment of all 

or any portion of any such deposit balance. Upon such direction, the Assuming Institution agrees 

to hold such deposit and not to make any payment of such deposit balance to or on behalf of the 

depositor, or to itself, whether by way of transfer, set-off, or otherwise. The Assuming Institution 

agrees to maintain the "withheld payment" status of any such deposit balance until directed in 

writing by the Receiver or the Corporation as to its disposition. At the direction of the Receiver 

or the Corporation, the Assuming Institution shall return all or any portion of such deposit 

balance to the Receiver or the Corporation, as appropriate, and thereupon the Assuming 

Institution shall be discharged from any further liability to such depositor with respect to such 

returned deposit balance. If such deposit balance has been paid to the depositor prior to a demand 

for return by the Corporation or the Receiver, and payment of such deposit balance had not been 

previously withheld pursuant to this Section, the Assuming Institution shall not be obligated to 

return such deposit balance to the Receiver or the Corporation. The Assuming Institution shall be 

obligated to reimburse the Corporation or the Receiver, as the case may be, for the amount of 

any deposit balance or portion thereof paid by the Assuming Institution in contravention of any 

previous direction to withhold payment of such deposit balance or return such deposit balance 

the payment of which was withheld pursuant to this Section. 

9.6 Proceedings with Respect to Certain Assets and Liabilities. 

(a) In connection with any investigation, proceeding or other matter with respect to 

any asset or liability of the Failed Bank retained by the Receiver, or any asset of the Failed Bank 

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acquired by the Receiver pursuant to this Agreement, the Assuming Institution shall cooperate to 

the extent reasonably required by the Receiver. 

(b) In addition to its obligations under Section 6.4, the Assuming Institution shall 

provide representatives of the Receiver access at reasonable times and locations without other 

limitation or qualification to (i) its directors, officers, employees and agents and those of the 

Subsidiaries acquired by the Assuming Institution, and (ii) its books and records, the books and 

records of such Subsidiaries and all Credit Files, and copies thereof. Copies of books, records 

and Credit Files shall be provided by the Assuming Institution as requested by the Receiver and 

the costs of duplication thereof shall be borne by the Receiver. 

(c) Not later than ten (10) days after the Put Notice pursuant to Section 3.4 or the date 

of the notice of transfer of any Loan by the Assuming Institution to the Receiver pursuant to 

Section 3.6, the Assuming Institution shall deliver to the Receiver such documents with respect 

to such Loan as the Receiver may request, including without limitation the following: (i) all 

related Credit Documents (other than certificates, notices and other ancillary documents), (ii) a 

certificate setting forth the principal amount on the date of the transfer and the amount of 

interest, fees and other charges then accrued and unpaid thereon, and any restrictions on transfer 

to which any such Loan is subject, and (iii) all Credit Files, and all documents, microfiche, 

microfilm and computer records (including but not limited to magnetic tape, disc storage, card 

forms and printed copy) maintained by, owned by, or in the possession of the Assuming 

Institution or any Affiliate of the Assuming Institution relating to the transferred Loan. 

9.7 Information. The Assuming Institution promptly shall provide to the Corporation 

such other information, including financial statements and computations, relating to the 

performance of the provisions of this Agreement as the Corporation or the Receiver may request 

from time to time, and, at the request of the Receiver, make available employees of the Failed 

Bank employed or retained by the Assuming Institution to assist in preparation of the pro forma 

statement pursuant to Section 8.1. 

 ARTICLE X 

 CONDITION PRECEDENT
 

The obligations of the parties to this Agreement are subject to the Receiver and the 

Corporation having received at or before Bank Closing evidence reasonably satisfactory to each 

of any necessary approval, waiver, or other action by any governmental authority, the board of 

directors of the Assuming Institution, or other third party, with respect to this Agreement and the 

transactions contemplated hereby, the closing of the Failed Bank and the appointment of the 

Receiver, the chartering of the Assuming Institution, and any agreements, documents, matters or 

proceedings contemplated hereby or thereby. 

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 ARTICLE XI 

REPRESENTATIONS AND WARRANTIES OF THE ASSUMING INSTITUTION
 

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

follows: 

(a) Corporate Existence and Authority. The Assuming Institution (i) is duly 

organized, validly existing and in good standing under the laws of its Chartering Authority and 

has full power and authority to own and operate its properties and to conduct its business as now 

conducted by it, and (ii) has full power and authority to execute and deliver this Agreement and 

to perform its obligations hereunder. The Assuming Institution has taken all necessary corporate 

action to authorize the execution, delivery and performance of this Agreement and the 

performance of the transactions contemplated hereby. 

(b) Third Party Consents. No governmental authority or other third party consents 

(including but not limited to approvals, licenses, registrations or declarations) are required in 

connection with the execution, delivery or performance by the Assuming Institution of this 

Agreement, other than such consents as have been duly obtained and are in full force and effect. 

(c) Execution and Enforceability. This Agreement has been duly executed and 

delivered by the Assuming Institution and when this Agreement has been duly authorized, 

executed and delivered by the Corporation and the Receiver, this Agreement will constitute the 

legal, valid and binding obligation of the Assuming Institution, enforceable in accordance with 

its terms. 

(d) Compliance with Law. 

(i) Neither the Assuming Institution nor any of its Subsidiaries is in violation 

of any statute, regulation, order, decision, judgment or decree of, or any restriction imposed by, 

the United States of America, any State, municipality or other political subdivision or any agency 

of any of the foregoing, or any court or other tribunal having jurisdiction over the Assuming 

Institution or any of its Subsidiaries or any assets of any such Person, or any foreign government 

or agency thereof having such jurisdiction, with respect to the conduct of the business of the 

Assuming Institution or of any of its Subsidiaries, or the ownership of the properties of the 

Assuming Institution or any of its Subsidiaries, which, either individually or in the aggregate 

with all other such violations, would materially and adversely affect the business, operations or 

condition (financial or otherwise) of the Assuming Institution or the ability of the Assuming 

Institution to perform, satisfy or observe any obligation or condition under this Agreement. 

(ii) Neither the execution and delivery nor the performance by the Assuming 

Institution of this Agreement will result in any violation by the Assuming Institution of, or be in 

conflict with, any provision of any applicable law or regulation, or any order, writ or decree of 

any court or governmental authority. 

(e) Insured or Guaranteed Loans. If any Loans being transferred pursuant to this 

Agreement, including the Shared-Loss Agreements, are insured or guaranteed by any department 

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or agency of any governmental unit, federal, state or local, Assuming Institution represents that 

Assuming Institution has been approved by such agency and is an approved lender or mortgagee, 

as appropriate, if such approval is required. Assuming Institution further assumes full 

responsibility for determining whether or not such insurance or guarantees are in full force and 

effect on the date of this Agreement and with respect to those Loans whose insurance or guaranty 

is in full force and effect on the date of this Agreement, Assuming Institution assumes full 

responsibility for doing all things necessary to insure such insurance or guarantees remain in full 

force and effect. Assuming Institution agrees to assume all of the obligations under the 

contract(s) of insurance or guaranty, agrees to cooperate with the Receiver where necessary to 

complete forms required by the insuring or guaranteeing department or agency to effect or 

complete the transfer to Assuming Institution. 

(f) Representations Remain True. The Assuming Institution represents and 

warrants that it has executed and delivered to the Corporation a Purchaser Eligibility 

Certification and Confidentiality Agreement and that all information provided and 

representations made by or on behalf of the Assuming Institution in connection with this 

Agreement and the transactions contemplated hereby, including, but not limited to, the Purchaser 

Eligibility Certification and Confidentiality Agreement (which are affirmed and ratified hereby) 

are and remain true and correct in all material respects and do not fail to state any fact required to 

make the information contained therein not misleading. 

 ARTICLE XII 

 INDEMNIFICATION 

12.1 Indemnification of Indemnitees. From and after Bank Closing and subject to 

the limitations set forth in this Section and Section 12.6 and compliance by the Indemnitees with 

Section 12.2, the Receiver agrees to indemnify and hold harmless the Indemnitees against any 

and all costs, losses, liabilities, expenses (including attorneys' fees) incurred prior to the 

assumption of defense by the Receiver pursuant to paragraph (d) of Section 12.2, judgments, 

fines and amounts paid in settlement actually and reasonably incurred in connection with claims 

against any Indemnitee based on liabilities of the Failed Bank that are not assumed by the 

Assuming Institution pursuant to this Agreement or subsequent to the execution hereof by the 

Assuming Institution or any Subsidiary or Affiliate of the Assuming Institution for which 

indemnification is provided hereunder in (a) of this Section 12.1, subject to certain exclusions as 

provided in (b) of this Section 12.1: 

(a) 

(1) claims based on the rights of any shareholder or former shareholder as such of 

(x) the Failed Bank, or (y) any Subsidiary or Affiliate of the Failed Bank; 

(2) claims based on the rights of any creditor as such of the Failed Bank, or any 

creditor as such of any director, officer, employee or agent of the Failed Bank, with respect to 

any indebtedness or other obligation of the Failed Bank arising prior to Bank Closing; 

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(3) claims based on the rights of any present or former director, officer, employee 

or agent as such of the Failed Bank or of any Subsidiary or Affiliate of the Failed Bank; 

(4) claims based on any action or inaction prior to Bank Closing of the Failed 

Bank, its directors, officers, employees or agents as such, or any Subsidiary or Affiliate of the 

Failed Bank, or the directors, officers, employees or agents as such of such Subsidiary or 

Affiliate; 

(5) claims based on any malfeasance, misfeasance or nonfeasance of the Failed 

Bank, its directors, officers, employees or agents with respect to the trust business of the Failed 

Bank, if any; 

(6) claims based on any failure or alleged failure (not in violation of law) by the 

Assuming Institution to continue to perform any service or activity previously performed by the 

Failed Bank which the Assuming Institution is not required to perform pursuant to this 

Agreement or which arise under any contract to which the Failed Bank was a party which the 

Assuming Institution elected not to assume in accordance with this Agreement and which neither 

the Assuming Institution nor any Subsidiary or Affiliate of the Assuming Institution has assumed 

subsequent to the execution hereof; 

(7) claims arising from any action or inaction of any Indemnitee, including for 

purposes of this Section 12.1(a)(7) the former officers or employees of the Failed Bank or of any 

Subsidiary or Affiliate of the Failed Bank that is taken upon the specific written direction of the 

Corporation or the Receiver, other than any action or inaction taken in a manner constituting bad 

faith, gross negligence or willful misconduct; and 

(8) claims based on the rights of any depositor of the Failed Bank whose deposit 

has been accorded "withheld payment" status and/or returned to the Receiver or Corporation in 

accordance with Section 9.5 and/or has become an "unclaimed deposit" or has been returned to 

the Corporation or the Receiver in accordance with Section 2.3; 

(b) provided, that, with respect to this Agreement, except for paragraphs (7) and (8) 

of Section 12.1(a), no indemnification will be provided under this Agreement for any: 

(1) judgment or fine against, or any amount paid in settlement (without the written 

approval of the Receiver) by, any Indemnitee in connection with any action that seeks damages 

against any Indemnitee (a "counterclaim") arising with respect to any Asset and based on any 

action or inaction of either the Failed Bank, its directors, officers, employees or agents as such 

prior to Bank Closing, unless any such judgment, fine or amount paid in settlement exceeds the 

greater of (i) the Repurchase Price of such Asset, or (ii) the monetary recovery sought on such 

Asset by the Assuming Institution in the cause of action from which the counterclaim arises; and 

in such event the Receiver will provide indemnification only in the amount of such excess; and 

no indemnification will be provided for any costs or expenses other than any costs or expenses 

(including attorneys' fees) which, in the determination of the Receiver, have been actually and 

reasonably incurred by such Indemnitee in connection with the defense of any such 

counterclaim; and it is expressly agreed that the Receiver reserves the right to intervene, in its 

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discretion, on its behalf and/or on behalf of the Receiver, in the defense of any such 

counterclaim; 

(2) claims with respect to any liability or obligation of the Failed Bank that is 

expressly assumed by the Assuming Institution pursuant to this Agreement or subsequent to the 

execution hereof by the Assuming Institution or any Subsidiary or Affiliate of the Assuming 

Institution; 

(3) claims with respect to any liability of the Failed Bank to any present or former 

employee as such of the Failed Bank or of any Subsidiary or Affiliate of the Failed Bank, which 

liability is expressly assumed by the Assuming Institution pursuant to this Agreement or 

subsequent to the execution hereof by the Assuming Institution or any Subsidiary or Affiliate of 

the Assuming Institution; 

(4) claims based on the failure of any Indemnitee to seek recovery of damages 

from the Receiver for any claims based upon any action or inaction of the Failed Bank, its 

directors, officers, employees or agents as fiduciary, agent or custodian prior to Bank Closing; 

(5) claims based on any violation or alleged violation by any Indemnitee of the 

antitrust, branching, banking or bank holding company or securities laws of the United States of 

America or any State thereof; 

(6) claims based on the rights of any present or former creditor, customer, or 

supplier as such of the Assuming Institution or any Subsidiary or Affiliate of the Assuming 

Institution; 

(7) claims based on the rights of any present or former shareholder as such of the 

Assuming Institution or any Subsidiary or Affiliate of the Assuming Institution regardless of 

whether any such present or former shareholder is also a present or former shareholder of the 

Failed Bank; 

(8) claims, if the Receiver determines that the effect of providing such 

indemnification would be to (i) expand or alter the provisions of any warranty or disclaimer 

thereof provided in Section 3.3 or any other provision of this Agreement, or (ii) create any 

warranty not expressly provided under this Agreement; 

(9) claims which could have been enforced against any Indemnitee had the 

Assuming Institution not entered into this Agreement; 

(10) claims based on any liability for taxes or fees assessed with respect to the 

consummation of the transactions contemplated by this Agreement, including without limitation 

any subsequent transfer of any Assets or Liabilities Assumed to any Subsidiary or Affiliate of the 

Assuming Institution; 

(11) except as expressly provided in this Article XII, claims based on any action 

or inaction of any Indemnitee, and nothing in this Agreement shall be construed to provide 

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indemnification for (i) the Failed Bank, (ii) any Subsidiary or Affiliate of the Failed Bank, or (iii) 

any present or former director, officer, employee or agent of the Failed Bank or its Subsidiaries 

or Affiliates; provided, that the Receiver, in its discretion, may provide indemnification 

hereunder for any present or former director, officer, employee or agent of the Failed Bank or its 

Subsidiaries or Affiliates who is also or becomes a director, officer, employee or agent of the 

Assuming Institution or its Subsidiaries or Affiliates; 

(12) claims or actions which constitute a breach by the Assuming Institution of 

the representations and warranties contained in Article XI; 

(13) claims arising out of or relating to the condition of or generated by an Asset 

arising from or relating to the presence, storage or release of any hazardous or toxic substance, or 

any pollutant or contaminant, or condition of such Asset which violate any applicable Federal, 

State or local law or regulation concerning environmental protection; and 

(14) claims based on, related to or arising from any asset, including a loan, 

acquired or liability assumed by the Assuming Institution, other than pursuant to this Agreement. 

12.2 Conditions Precedent to Indemnification. It shall be a condition precedent to 

the obligation of the Receiver to indemnify any Person pursuant to this Article XII that such 

Person shall, with respect to any claim made or threatened against such Person for which such 

Person is or may be entitled to indemnification hereunder: 

(a) give written notice to the Regional Counsel (Litigation Branch) of the 

Corporation in the manner and at the address provided in Section 13.7 of such claim as soon as 

practicable after such claim is made or threatened; provided, that notice must be given on or 

before the date which is six (6) years from the date of this Agreement; 

(b) provide to the Receiver such information and cooperation with respect to such 

claim as the Receiver may reasonably require; 

(c) cooperate and take all steps, as the Receiver may reasonably require, to preserve 

and protect any defense to such claim; 

(d) in the event suit is brought with respect to such claim, upon reasonable prior 

notice, afford to the Receiver the right, which the Receiver may exercise in its sole discretion, to 

conduct the investigation, control the defense and effect settlement of such claim, including 

without limitation the right to designate counsel and to control all negotiations, litigation, 

arbitration, settlements, compromises and appeals of any such claim, all of which shall be at the 

expense of the Receiver; provided, that the Receiver shall have notified the Person claiming 

indemnification in writing that such claim is a claim with respect to which the Person claiming 

indemnification is entitled to indemnification under this Article XII; 

(e) not incur any costs or expenses in connection with any response or suit with 

respect to such claim, unless such costs or expenses were incurred upon the written direction of 

the Receiver; provided, that the Receiver shall not be obligated to reimburse the amount of any 

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such costs or expenses unless such costs or expenses were incurred upon the written direction of 

the Receiver; 

(f) not release or settle such claim or make any payment or admission with respect 

thereto, unless the Receiver consents in writing thereto, which consent shall not be unreasonably 

withheld; provided, that the Receiver shall not be obligated to reimburse the amount of any such 

settlement or payment unless such settlement or payment was effected upon the written direction 

of the Receiver; and 

(g) take reasonable action as the Receiver may request in writing as necessary to 

preserve, protect or enforce the rights of the indemnified Person against any Primary Indemnitor. 

12.3 No Additional Warranty. Nothing in this Article XII shall be construed or 

deemed to (i) expand or otherwise alter any warranty or disclaimer thereof provided under 

Section 3.3 or any other provision of this Agreement with respect to, among other matters, the 

title, value, collectibility, genuineness, enforceability or condition of any (x) Asset, or (y) asset 

of the Failed Bank purchased by the Assuming Institution subsequent to the execution of this 

Agreement by the Assuming Institution or any Subsidiary or Affiliate of the Assuming 

Institution, or (ii) create any warranty not expressly provided under this Agreement with respect 

thereto. 

12.4 Indemnification of Receiver and Corporation. From and after Bank Closing, 

the Assuming Institution agrees to indemnify and hold harmless the Corporation and the 

Receiver and their respective directors, officers, employees and agents from and against any and 

all costs, losses, liabilities, expenses (including attorneys' fees), judgments, fines and amounts 

paid in settlement actually and reasonably incurred in connection with any of the following: 

(a) claims based on any and all liabilities or obligations of the Failed Bank assumed 

by the Assuming Institution pursuant to this Agreement or subsequent to the execution hereof by 

the Assuming Institution or any Subsidiary or Affiliate of the Assuming Institution, whether or 

not any such liabilities subsequently are sold and/or transferred, other than any claim based upon 

any action or inaction of any Indemnitee as provided in paragraph (7) or (8) of Section 12.1(a); 

and 

(b) claims based on any act or omission of any Indemnitee (including but not limited 

to claims of any Person claiming any right or title by or through the Assuming Institution with 

respect to Assets transferred to the Receiver pursuant to Section 3.4 or 3.6), other than any action 

or inaction of any Indemnitee as provided in paragraph (7) or (8) of Section 12.1(a); and 

(c) claims based on any failure to preserve, maintain or provide reasonable access to 

Records transferred to the Assuming Institution pursuant to Article VI. 

12.5 Obligations Supplemental. The obligations of the Receiver, and the Corporation 

as guarantor in accordance with Section 12.7, to provide indemnification under this Article XII 

are to supplement any amount payable by any Primary Indemnitor to the Person indemnified 

under this Article XII. Consistent with that intent, the Receiver agrees only to make payments 

pursuant to such indemnification to the extent not payable by a Primary Indemnitor. If the 

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aggregate amount of payments by the Receiver, or the Corporation as guarantor in accordance 

with Section 12.7, and all Primary Indemnitors with respect to any item of indemnification under 

this Article XII exceeds the amount payable with respect to such item, such Person being 

indemnified shall notify the Receiver thereof and, upon the request of the Receiver, shall 

promptly pay to the Receiver, or the Corporation as appropriate, the amount of the Receiver's (or 

Corporation's) payments to the extent of such excess. 

12.6 Criminal Claims. Notwithstanding any provision of this Article XII to the 

contrary, in the event that any Person being indemnified under this Article XII shall become 

involved in any criminal action, suit or proceeding, whether judicial, administrative or 

investigative, the Receiver shall have no obligation hereunder to indemnify such Person for 

liability with respect to any criminal act or to the extent any costs or expenses are attributable to 

the defense against the allegation of any criminal act, unless (i) the Person is successful on the 

merits or otherwise in the defense against any such action, suit or proceeding, or (ii) such action, 

suit or proceeding is terminated without the imposition of liability on such Person. 

12.7 Limited Guaranty of the Corporation. The Corporation hereby guarantees 

performance of the Receiver's obligation to indemnify the Assuming Institution as set forth in 

this Article XII. It is a condition to the Corporation's obligation hereunder that the Assuming 

Institution shall comply in all respects with the applicable provisions of this Article XII. The 

Corporation shall be liable hereunder only for such amounts, if any, as the Receiver is obligated 

to pay under the terms of this Article XII but shall fail to pay. Except as otherwise provided 

above in this Section 12.7, nothing in this Article XII is intended or shall be construed to create 

any liability or obligation on the part of the Corporation, the United States of America or any 

department or agency thereof under or with respect to this Article XII, or any provision hereof, it 

being the intention of the parties hereto that the obligations undertaken by the Receiver under 

this Article XII are the sole and exclusive responsibility of the Receiver and no other Person or 

entity. 

12.8 Subrogation. Upon payment by the Receiver, or the Corporation as guarantor in 

accordance with Section 12.7, to any Indemnitee for any claims indemnified by the Receiver 

under this Article XII, the Receiver, or the Corporation as appropriate, shall become subrogated 

to all rights of the Indemnitee against any other Person to the extent of such payment. 

ARTICLE XIII 

MISCELLANEOUS 

13.1 Entire Agreement. This Agreement, the Single Family Shared-Loss Agreement, 

and the Commercial Shared-Loss Agreement, including the Schedules and Exhibits thereto, 

embodies the entire agreement of the parties hereto in relation to the subject matter herein and 

supersedes all prior understandings or agreements, oral or written, between the parties. 

13.2 Headings. The headings and subheadings of the Table of Contents, Articles and 

Sections contained in this Agreement, except the terms identified for definition in Article I and 

elsewhere in this Agreement, are inserted for convenience only and shall not affect the meaning 

or interpretation of this Agreement or any provision hereof. 

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 13.3 Counterparts. This Agreement may be executed in any number of counterparts 

and by the duly authorized representative of a different party hereto on separate counterparts, 

each of which when so executed shall be deemed to be an original and all of which when taken 

together shall constitute one and the same Agreement. 

13.4 GOVERNING LAW. THIS AGREEMENT, THE SINGLE FAMILY SHAREDLOSS AGREEMENT, AND THE COMMERCIAL SHARED-LOSS AGREEMENT AND THE 

RIGHTS AND OBLIGATIONS HEREUNDER AND THEREUNDER SHALL BE 

GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE FEDERAL LAW OF 

THE UNITED STATES OF AMERICA, AND IN THE ABSENCE OF CONTROLLING 

FEDERAL LAW, IN ACCORDANCE WITH THE LAWS OF THE STATE IN WHICH THE 

MAIN OFFICE OF THE FAILED BANK IS LOCATED. 

13.5 Successors. All terms and conditions of this Agreement shall be binding on the 

successors and assigns of the Receiver, the Corporation and the Assuming Institution. Except as 

otherwise specifically provided in this Agreement, nothing expressed or referred to in this 

Agreement is intended or shall be construed to give any Person other than the Receiver, the 

Corporation and the Assuming Institution any legal or equitable right, remedy or claim under or 

with respect to this Agreement or any provisions contained herein, it being the intention of the 

parties hereto that this Agreement, the obligations and statements of responsibilities hereunder, 

and all other conditions and provisions hereof are for the sole and exclusive benefit of the 

Receiver, the Corporation and the Assuming Institution and for the benefit of no other Person. 

13.6 Modification; Assignment. No amendment or other modification, rescission, 

release, or assignment of any part of this Agreement, the Single Family Shared-Loss Agreement, 

and the Commercial Shared-Loss Agreement shall be effective except pursuant to a written 

agreement subscribed by the duly authorized representatives of the parties hereto. 

13.7 Notice. Any notice, request, demand, consent, approval or other communication 

to any party hereto shall be effective when received and shall be given in writing, and delivered 

in person against receipt therefore, or sent by certified mail, postage prepaid, courier service, 

telex, facsimile transmission or email to such party (with copies as indicated below) at its address 

set forth below or at such other address as it shall hereafter furnish in writing to the other parties. 

All such notices and other communications shall be deemed given on the date received by the 

addressee. 

Assuming Institution 

Bank of the Ozarks 

17901 Chenal Parkway 

Little Rock, AR 72223 

Attention: Mark Ross, President 

with a copy to: Greg McKinney 

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Receiver and Corporation 

Federal Deposit Insurance Corporation, 

Receiver of Horizon Bank 

7777 Baymeadows Way West 

Jacksonville, FL 32256 

Attention: Settlement Agent 

In addition, with respect to notices under Article 4.6: 

cc: Resolutions and Closings Manager, ORE Department 

In addition, with respect to notice under Article XII: 

cc: Managing Counsel (Legal Division) 

13.8 Manner of Payment. All payments due under this Agreement shall be in lawful 

money of the United States of America in immediately available funds as each party hereto may 

specify to the other parties; provided, that in the event the Receiver or the Corporation is 

obligated to make any payment hereunder in the amount of $25,000.00 or less, such payment 

may be made by check. 

13.9 Costs, Fees and Expenses. Except as otherwise specifically provided herein, 

each party hereto agrees to pay all costs, fees and expenses which it has incurred in connection 

with or incidental to the matters contained in this Agreement, including without limitation any 

fees and disbursements to its accountants and counsel; provided, that the Assuming Institution 

shall pay all fees, costs and expenses (other than attorneys' fees incurred by the Receiver) 

incurred in connection with the transfer to it of any Assets or Liabilities Assumed hereunder or in 

accordance herewith. 

13.10 Waiver. Each of the Receiver, the Corporation and the Assuming Institution may 

waive its respective rights, powers or privileges under this Agreement; provided, that such 

waiver shall be in writing; and further provided, that no failure or delay on the part of the 

Receiver, the Corporation or the Assuming Institution to exercise any right, power or privilege 

under this Agreement shall operate as a waiver thereof, nor will any single or partial exercise of 

any right, power or privilege under this Agreement preclude any other or further exercise thereof 

or the exercise of any other right, power or privilege by the Receiver, the Corporation, or the 

Assuming Institution under this Agreement, nor will any such waiver operate or be construed as 

a future waiver of such right, power or privilege under this Agreement. 

13.11 Severability. If any provision of this Agreement is declared invalid or 

unenforceable, then, to the extent possible, all of the remaining provisions of this Agreement 

shall remain in full force and effect and shall be binding upon the parties hereto. 

13.12 Term of Agreement. This Agreement shall continue in full force and effect until 

the tenth (10th) anniversary of Bank Closing; provided, that the provisions of Section 6.3 and 6.4 

shall survive the expiration of the term of this Agreement; and provided further, that the 

receivership of the Failed Bank may be terminated prior to the expiration of the term of this 

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Agreement, and in such event, the guaranty of the Corporation, as provided in and in accordance 

with the provisions of Section 12.7 shall be in effect for the remainder of the term of this 

Agreement. Expiration of the term of this Agreement shall not affect any claim or liability of any 

party with respect to any (i) amount which is owing at the time of such expiration, regardless of 

when such amount becomes payable, and (ii) breach of this Agreement occurring prior to such 

expiration, regardless of when such breach is discovered. 

13.13 Survival of Covenants, Etc. The covenants, representations, and warranties in 

this Agreement shall survive the execution of this Agreement and the consummation of the 

transactions contemplated hereunder. 

 [Signature Page Follows] 

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Redacted

Redacted

Redacted

Redacted

Redacted Redacted
SCHEDULE 2.1(a) - Excluded Deposit Liabilty Accounts 

Accounts Excluded from P&A Transaction 

Horizon Bank 

Horizon Bank, Bradenton, FL 

Horizon Bank has deposits assiated with the Depository Organization (DO) Cede & Co as 

Nominee for DTC. The DO accunts do not pass to the Assuming Bank and are excluded from 

the transaction as descrbe in seion 2.1 of the P&A Agreement. The attched Schedule 2.1.a 

DO Detail Report identifies the DO accunt as of March 31, 2010. This scedule will be updated 

post closing with data as of Bank Closing date. 

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SCHEDULE 3.2 - Purchase Price of Assets or assets 

(a) cash and receivables from depository 

institutions, including cash items in the 

process of collection, plus 

 interest thereon: 

Book Value 

(b) securities (exclusive of the capital stock of 

Acquired Subsidiaries, Shared-Loss 

Securities, and FHLB stock), plus interest 

thereon: 

As provided in Section 3.2(b) 

(c) federal funds sold and repurchase 

agreements, if any, including interest 

thereon: 

Book Value 

(d) Loans: Book Value 

(e) credit card business: Book Value 

(f) Safe Deposit Boxes and related business, 

safekeeping business and trust business, if 

any: 

Book Value 

(g) Records and other documents: Book Value 

(h) Other Real Estate Book Value 

(i) boats, motor vehicles, aircraft, trailers, fire 

arms, and repossessed collateral 

Book Value 

(j) capital stock of any Acquired Subsidiaries 

and FHLB stock: 

Book Value 

(k) 

(l) 

amounts owed to the Failed Bank by any 

Acquired Subsidiary: 

assets securing Deposits of public money, 

to the extent not otherwise purchased 

hereunder: 

Book Value 

Book Value 

(m) Overdrafts of customers: Book Value 

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(n) rights, if any, with respect to Qualified 

Financial Contracts. 

(o) rights of the Failed Bank to have mortgage 

servicing provided to the Failed Bank by 

others and related contracts. 

(p) Shared-Loss Securities 

(q) Personal Computers 

assets subject to an option to purchase: 

(a) Bank Premises: 

(b) Furniture and Equipment: 

(c) Fixtures: 

(d) Other Equipment: 

As provided in Section 3.2(c) 

Book Value 

Book Value 

Fair Market Value 

Fair Market Value 

Fair Market Value 

Fair Market Value 

Fair Market Value 

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SCHEDULE 3.5(1) - Excluded Securities 

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SCHEDULE 4.15A 

LOANS SUBJECT TO LOSS SHARING UNDER THE 

SINGLE FAMILY SHARED-LOSS AGREEMENT 

TO BE PROVIDED
 

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SCHEDULE 4.15B 

LOANS SUBJECT TO LOSS SHARING UNDER THE 

COMMERCIAL SHARED-LOSS AGREEMENT 

TO BE PROVIDED
 

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SCHEDULE 4.15C 

SHARED-LOSS SECURITIES
 

NONE
 

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SCHEDULE 4.15D 

SHARED-LOSS SUBSIDIARIES
 

NONE
 

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SCHEDULE 6.3- Data Retention Catalog 

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SCHEDULE 7 -Accounts Excluded from Calculation of Deposit Franchise Bid Premium 

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Non-DO Deposits
 

As of 3/31/2010
 

TOTALS 21 $1,935,000.00 $283.240 

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Marketplace Deposits
 

As of 3/31/2010 

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TOTALS 394 $36,856,456.45 $6,676.170 

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EXHIBIT 2.3A 

FINAL NOTICE LETTER 

FINAL LEGAL NOTICE 

Claiming Requirements for Deposits 

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

[Date] 

[Name of Unclaimed Depositor] 

[Address of Unclaimed Depositor] 

[Anytown, USA] 

Subject: [XXXXX – Name of Bank 

City, State] – In Receivership 

Dear [Sir/Madam]: 

As you may know, on [Date: Closing Date], the [Name of Bank (“The Bank”)] was 

closed and the Federal Deposit Insurance Corporation (“FDIC”) transferred [The Bank’s] accounts to 

[Name of Acquiring Institution]. 

According to federal law under 12 U.S.C., 1822(e), on [Date: eighteen months from the 

Closing Date], [Name of Acquiring Institution] must transfer the funds in your account(s) back to the 

FDIC if you have not claimed your account(s) with [Name of Acquiring Institution]. Based on the 

records recently supplied to us by [Name of Acquiring Institution], your account(s) currently fall into 

this category. 

This letter is your formal Legal Notice that you have until [Date: eighteen months from 

the Closing Date], to claim or arrange to continue your account(s) with [Name of Acquiring 

Institution]. There are several ways that you can claim your account(s) at [Name of Acquiring 

Institution]. It is only necessary for you to take any one of the following actions in order for your 

account(s) at [Name of Acquiring Institution] to be deemed claimed. In addition, if you have more than 

one account, your claim to one account will automatically claim all accounts: 

1.	 Write to [Name of Acquiring Institution] and notify them that you wish to keep your account(s) 

active with them. Please be sure to include the name of the account(s), the account number(s), the 

signature of an authorized signer on the account(s), name, and address. [Name of Acquiring 

Institution] address is: 

[123 Main Street 

 Anytown, USA] 

2.	 Execute a new signature card on your account(s), enter into a new deposit agreement with [Name of 

Acquiring Institution], change the ownership on your account(s), or renegotiate the terms of your 

certificate of deposit account(s) (if any). 

3.	 Provide [Name of Acquiring Institution] with a change of address form. 

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4.	 Make a deposit to or withdrawal from your account(s). This includes writing a check on any account 

or having an automatic direct deposit credited to or an automatic withdrawal debited from an account. 

If you do not want to continue your account(s) with [Name of Acquiring Institution] for 

any reason, you can withdraw your funds and close your account(s). Withdrawing funds from one or 

more of your account(s) satisfies the federal law claiming requirement. If you have time deposits, such as 

certificates of deposit, [Name of Acquiring Institution] can advise you how to withdraw them without 

being charged an interest penalty for early withdrawal. 

If you do not claim ownership of your account(s) at [Name of Acquiring Institution by 

Date: eighteen months from the Closing Date] federal law requires [Name of Acquiring Institution] 

to return your deposits to the FDIC, which will deliver them as unclaimed property to the State indicated 

in your address in the Failed Institution’s records. If your address is outside of the United States, the 

FDIC will deliver the deposits to the State in which the Failed Institution had its main office. 12 U.S.C. § 

1822(e). If the State accepts custody of your deposits, you will have 10 years from the date of delivery to 

claim your deposits from the State. After 10 years you will be permanently barred from claiming your 

deposits. However, if the State refuses to take custody of your deposits, you will be able to claim them 

from the FDIC until the receivership is terminated. If you have not claimed your insured deposits before 

the receivership is terminated, and a receivership may be terminated at any time, all of your rights in those 

deposits will be barred. 

If you have any questions or concerns about these items, please contact [Bank 

Employee] at [Name of Acquiring Institution] by phone at [(XXX) XXX-XXXX]. 

Sincerely, 

[Name of Claims Specialist] 

[Title] 

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 ______________________________________ 

______________________ ________________________________

 

 

 

EXHIBIT 2.3B 

AFFIDAVIT OF MAILING 

AFFIDAVIT OF MAILING 

State of 

COUNTY OF 

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

This will attest that on [Date of mailing], I caused a true and correct copy of the Final Legal Notice, 

attached hereto, to owners of unclaimed deposits of [Name of Failed Bank], City, State, to be prepared 

for deposit in the mail of the United States of America on behalf of the Federal Deposit Insurance 

Corporation. A list of depositors to whom the notice was mailed is attached. This notice was mailed to 

the depositor's last address as reflected on the books and records of the [Name of Failed Bank] as of the 

date of failure. 

[Name] 

[Title of Office] 

[Name of Acquiring Institution] 

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

My commission expires: 

 [Name], Notary Public 

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EXHIBIT 3.2(c) -- VALUATION OF CERTAIN 

QUALIFIED FINANCIAL CONTRACTS 

A. Scope 

Interest Rate Contracts - All interest rate swaps, forward rate agreements, interest rate 

futures, caps, collars and floors, whether purchased or written. 

Option Contracts - All put and call option contracts, whether purchased or written, on 

marketable securities, financial futures, foreign currencies, foreign exchange or foreign 

exchange futures contracts. 

Foreign Exchange Contracts - All contracts for future purchase or sale of foreign 

currencies, foreign currency or cross currency swap contracts, or foreign exchange 

futures contracts. 

B. Exclusions 

All financial contracts used to hedge assets and liabilities that are acquired by the 

Assuming Institution but are not subject to adjustment from Book Value. 

C. Adjustment 

The difference between the Book Value and market value as of Bank Closing. 

D. Methodology 

1. The price at which the Assuming Institution sells or disposes of Qualified 

Financial Contracts will be deemed to be the fair market value of such contracts, 

if such sale or disposition occurs at prevailing market rates within a predefined 

timetable as agreed upon by the Assuming Institution and the Receiver. 

2. In valuing all other Qualified Financial Contracts, the following principles will 

apply: 

(i) All known cash flows under swaps or forward exchange contracts shall be 

present valued to the swap zero coupon interest rate curve. 

(ii)	 All valuations shall employ prices and interest rates based on the actual 

frequency of rate reset or payment. 

(iii) Each tranche of amortizing contracts shall be separately valued. The total 

value of such amortizing contract shall be the sum of the values of its 

component tranches. 

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 (iv) For regularly traded contracts, valuations shall be at the midpoint of the 

bid and ask prices quoted by customary sources (e.g., The Wall Street 

Journal, Telerate, Reuters or other similar source) or regularly traded 

exchanges. 

(v)	 For all other Qualified Financial Contracts where published market quotes 

are unavailable, the adjusted price shall be the average of the bid and ask 

price quotes from three (3) securities dealers acceptable to the Receiver 

and Assuming Institution as of Bank Closing. If quotes from securities 

dealers cannot be obtained, an appraiser acceptable to the Receiver and the 

Assuming Institution will perform a valuation based on modeling, 

correlation analysis, interpolation or other techniques, as appropriate. 

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EXHIBIT 4.13 

INTERIM ASSET SERVICING ARRANGEMENT 

(a) With respect to each asset or liability designated from time to time by the 

Receiver to be serviced by the Assuming Institution pursuant to this Arrangement, including any 

assets or liabilities sold or conveyed by the Receiver to any party other than the Assuming 

Institution (any such party, a “Successor Owner”) but with respect to which the Receiver has an 

obligation to service or provide servicing support (such assets and liabilities, the "Pool Assets"), 

during the term of this Arrangement the Assuming Institution shall, with respect to the Pool 

Assets: 

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

record; 

(ii) reverse and return insufficient funds checks; 

(iii) pay (A) participation payments to participants in Loans, as and when 

received; (B) tax and insurance bills, as they come due, out of escrow funds maintained for such 

purposes; and (C) unfunded commitments and protective advances out of escrow funds created 

for that purpose; 

(iv) process funding draws under Loans and protective advances in connection 

with collateral and acquired property, in each case, as and to the extent authorized and funded by 

the Receiver; 

(v) maintain in use all data processing equipment and systems and other 

systems of record on which any activity with respect to any Pool Assets are or, prior to Bank 

Closing were recorded, and maintain all historical data on any such systems as of Bank Closing 

and may not, without the express written consent of the Receiver (which consent must be sought 

at least 60 days prior to taking any action), deconvert, remove, transfer or otherwise discontinue 

use of any of the Failed Bank’s systems of record with respect to any Pool Asset; 

(vi) maintain accurate records reflecting (A) payments received by the 

Assuming Institution, (B) information received by the Assuming Institution concerning changes 

in the address or identity of any obligor, and (C) other servicing actions taken by the Assuming 

Institution, including checks returned for insufficient funds; 

(vii) send (A) billing statements to Obligors on Pool Assets (to the extent that 

such statements were sent by the Failed Bank or as are requested by the Receiver) and (B) 

notices to Obligors who are in default on Loans (in the same manner as the Failed Bank or as are 

requested by the Receiver); 

(viii) employ a sufficient number of qualified employees to provide the services 

required to be provided by the Assuming Institution pursuant to this Arrangement (with the 

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number and qualifications of such employees not to be less than the number and qualifications of 

employees employed by the Failed Bank to perform such functions as of Bank Closing); 

(ix) any Credit Files and any servicing files in the possession or on the 

premises of the Assuming Institution shall be held in trust by the Assuming Institution for the 

Receiver or the Successor Owner (as applicable) and shall be segregated from the other books 

and records of the Assuming Institution and be appropriately marked to clearly reflect the 

ownership interest of the Receiver or the Successor Owner (as applicable); 

(x) send to the Receiver (indicating closed bank name and number), Attn: 

Interim Servicing Manager, at the email address provided in Section 13.7 of the Agreement, or to 

such other person at such address as the Receiver may designate, via overnight delivery: (A) on 

a weekly basis, weekly reports, including, without limitation, reports reflecting collections, trial 

balances, and (B) any other reports, copies or information as may be requested from time to time 

by the Receiver, including, if requested, copies of (1) checks or other remittances received, (2) 

insufficient funds checks returned, (3) checks or other remittances for payment to participants or 

for taxes, insurance, funding advances and protective advances, (4) pay-off requests, and (5) 

notices to defaulted Obligors; 

(xi) remit on a weekly basis to the Receiver (indicating closed bank name and 

number), Attn: DRR Cashier Unit, Business Operations Support Branch, at the address in (vii), 

via wire transfer to the account designated by the Receiver, or to such other person at such other 

address and/or account as the Receiver may designate, all payments received; 

(xii) prepare and timely file all information reports with appropriate tax 

authorities, and, if requested by the Receiver, prepare and file tax returns and remit taxes due on 

or before the due date; and 

(xiii) provide and furnish such other services, operations or functions, including, 

without limitation, with regard to any business, enterprise or agreement which is a Pool Asset, as 

may be requested by the Receiver; 

(xiv) establish a custodial account for the Receiver and for each Successor 

Owner at the Assuming Institution, each of which may be interest bearing, titled in the name of 

Assuming Institution, in trust for the Receiver or the Successor Owner (as applicable), in each case 

as the owner, and segregate and hold all funds collected and received with respect to the Pool Assets 

separate and apart from any of the Assuming Institution’s own funds and general assets; and 

(xv) no later than the end of the second Business Day following receipt thereof, 

deposit into the applicable custodial account and retain therein all funds collected and received 

with respect to the Pool Assets. 

Notwithstanding anything to the contrary in this Exhibit, the Assuming Institution shall not be 

required to initiate litigation or other collection proceedings against any Obligor or any collateral 

with respect to any defaulted Loan. The Assuming Institution shall promptly notify the 

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Receiver, at the address provided above in subparagraph (a)(x), of any claims or legal actions 

regarding any Pool Asset. 

(b) In consideration for the provision of the services provided pursuant to this 

Arrangement, the Receiver agrees to reimburse the Assuming Institution for actual, reasonable 

and necessary expenses incurred in connection with the performance of its duties pursuant to this 

Arrangement, including expenses of photocopying, postage and express mail, and data 

processing and employee services (based upon the number of hours spent performing servicing 

duties). 

(c) The Assuming Bank shall provide the services described herein for a term of up to 

three hundred sixty-five (365) days after Bank Closing. The Receiver may terminate the 

Arrangement at any time upon not less than sixty (60) days notice to the Assuming Institution 

without any liability or cost to the Receiver other than the fees and expenses due to the 

Assuming Institution as of the termination date pursuant to paragraph (b) above. 

(d) At any time during the term of this Arrangement, the Receiver may, upon not less 

than thirty (30) days prior written notice to the Assuming Institution, remove one or more Pool 

Assets, and at the time of such removal the Assuming Institution's responsibility with respect 

thereto shall terminate. 

(e) At the expiration of this Arrangement or upon the termination of the Assuming 

Institution's responsibility with respect to any Pool Asset pursuant to paragraph (d) hereof, the 

Assuming Institution shall: 

(i) deliver to the Receiver (or its designee) all of the Credit Documents and 

records relating to the Pool Assets; and 

(ii) cooperate with the Receiver to facilitate the orderly transition of managing 

the Pool Assets to the Receiver or its designees (including, without limitation, its contractors and 

persons to which any Pool Assets are conveyed). 

(f) At the request of the Receiver, the Assuming Institution shall perform such 

transitional services with regard to the Pool Assets as the Receiver may request. Transitional 

services may include, without limitation, assisting in any due diligence process deemed 

necessary by the Receiver and providing to the Receiver and its designees (including, without 

limitation, its contractors and any actual or potential Successor Owners) (x) information and data 

regarding the Pool Assets, including, without limitation, system reports and data downloads 

sufficient to transfer the Pool Assets to another system or systems and to facilitate due diligence 

by actual and potential Successor Owners, and (y) access to employees of the Assuming 

Institution involved in the management of, or otherwise familiar with, the Pool Assets. 

(g) Until such time as the Arrangement expires or is terminated, without limitation of 

its obligations set forth above or in the Agreement and without any additional consideration 

(other than that set forth in paragraph (b) above), the Assuming Institution shall provide the 

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Receiver and its designees (including, without limitation, its contractors and actual and potential 

Successor Owners) with the following, as the same may be requested: 

(i) access to and the ability to obtain assistance and information from 

personnel of the Assuming Institution, including former personnel of the Failed Bank and 

personnel of third party consultants; 

(ii) access to and the ability to use and download information from data 

processing systems and other systems of record on which information regarding Pool Assets or 

any assets transferred to or liabilities assumed by the Assuming Institution is stored or 

maintained (regardless of whether information with respect to other assets or liabilities is also 

stored or maintained thereon); and 

(iii) access to and the ability to use and occupy office space (including parking 

facilities and vault space), facilities, utilities (including local telephone service and facsimile 

machines), furniture, equipment (including photocopying and facsimile machines), and 

technology and connectivity (including email accounts, network access and technology resources 

such as shared drives) in the Bank Premises occupied by the Assuming Institution. 

(h) Capitalized terms used and not otherwise defined in this Exhibit 4.13 shall have 

the meanings assigned to such terms in the Agreement. 

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EXHIBIT 4.15A 

SINGLE FAMILY SHARED-LOSS AGREEMENT 

This agreement for the reimbursement of loss sharing on certain single family residential 

mortgage loans (the “Single Family Shared-Loss Agreement”) shall apply when the Assuming 

Institution purchases Single Family Shared-Loss Loans as that term is defined herein. The terms 

hereof shall modify and supplement, as necessary, the terms of the Purchase and Assumption 

Agreement to which this Single Family Shared-Loss Agreement is attached as Exhibit 4.15A and 

incorporated therein. To the extent any inconsistencies may arise between the terms of the 

Purchase and Assumption Agreement and this Single Family Shared-Loss Agreement with 

respect to the subject matter of this Single Family Shared-Loss Agreement, the terms of this 

Single Family Shared-Loss Agreement shall control. References in this Single Family SharedLoss Agreement to a particular Section shall be deemed to refer to a Section in this Single 

Family Shared-Loss Agreement, unless the context indicates that it is intended to be a reference 

to a Section of the Purchase and Assumption Agreement. 

ARTICLE I -- DEFINITIONS 

The capitalized terms used in this Single Family Shared-Loss Agreement that are not defined in 

this Single Family Shared-Loss Agreement are defined in the Purchase and Assumption 

Agreement. In addition to the terms defined above, defined below are certain additional terms 

relating to loss-sharing, as used in this Single Family Shared-Loss Agreement. 

“Accounting Records” means the subsidiary system of record on which the loan 

history and balance of each Single Family Shared-Loss Loan is maintained; individual loan files 

containing either an original or copies of documents that are customary and reasonable with 

respect to loan servicing, including management and disposition of Other Real Estate; the 

records documenting alternatives considered with respect to loans in default or for which a 

default is reasonably foreseeable; records of loss calculations and supporting documentation with 

respect to line items on the loss calculations; and, monthly delinquency reports and other 

performance reports customarily utilized by the Assuming Institution in management of loan 

portfolios. 

“Accrued Interest” means, with respect to Single Family Shared-Loss Loans, the 

amount of earned and unpaid interest at the note rate specified in the applicable loan documents, 

limited to 90 days. 

“Affiliate” shall have the meaning set forth in the Purchase and Assumption 

Agreement; provided, that, for purposes of this Single Family Shared-Loss Agreement, no Third 

Party Servicer shall be deemed to be an Affiliate of the Assuming Institution. 

“Applicable Percentage” means, the percentage of shared-loss the Receiver will 

incur with respect to this Single Family Shared-Loss Agreement, which is eighty percent (80%) 

for the SF Tranche 1 Amount; thirty percent (30%) for the SF Tranche 2 Amount; and eighty 

percent (80%), for the SF Tranche 3 Amount. 

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“Commencement Date” means the first calendar day following the Bank 

Closing. 

“Commercial Shared-Loss Agreement” means the Commercial Shared-Loss 

Agreement attached to the Purchase and Assumption Agreement as Exhibit 4.15B. 

“Cumulative Loss Amount” means the sum of all Monthly Loss Amounts less 

the sum of all Recovery Amounts. 

“Customary Servicing Procedures” means procedures (including collection 

procedures) that the Assuming Institution (or, to the extent a Third Party Servicer is engaged, the 

Third Party Servicer) customarily employs and exercises in servicing and administering 

mortgage loans for its own accounts and the servicing procedures established by FNMA or 

FHLMC (as in effect from time to time), which are in accordance with accepted mortgage 

servicing practices of prudent lending institutions. 

“Deficient Loss” means the determination by a court in a bankruptcy proceeding 

that the value of the collateral is less than the amount of the loan in which case the loss will be 

the difference between the then unpaid principal balance (or the NPV of a modified loan that 

defaults) and the value of the collateral so established. 

“Examination Criteria” means the loan classification criteria employed by, or 

any applicable regulations of, the Assuming Institution’s Chartering Authority at the time such 

action is taken, as such criteria may be amended from time to time. 

“Final Shared-Loss Month” means the calendar month in which the tenth 

anniversary of the Commencement Date occurs. 

“Foreclosure Loss” means the loss realized when the Assuming Institution has 

completed the foreclosure on a Single Family Shared-Loss Loan and realized final recovery on 

the collateral through liquidation and recovery of all insurance proceeds. Each Foreclosure Loss 

shall be calculated in accordance with the form and methodology specified in Exhibits 2c(1)-(3). 

“Holding Company” means any company owning Shares of the Assuming 

Institution that is a holding company pursuant to the Bank Holding Company Act 0f 1956, 12 

U.S.C. 1841 et seq. or the Home Owner’s Loan Act, 12 U.S.C. 1461 et seq. 

“Home Equity Loan” means a loan or funded or unfunded portions of a line of 

credit secured by a mortgage on a one-to four-family residences or stock of cooperative housing 

association, where the Failed Bank did not have a first lien on the same property as collateral. 

“Investor-Owned Residential Loan” means a Loan, excluding advances made 

pursuant to a Home Equity Loan, that is secured by a mortgage on a one- to four family 

residences or stock of cooperative housing associations that is not owner-occupied or the 

borrower’s primary residence. 

“Loss” means a Foreclosure Loss, Restructuring Loss, Short Sale Loss, Portfolio 

Loss, Modification Default Loss or Deficient Loss. 

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“Loss Amount” means the dollar amount of loss incurred and reported on the 

Monthly Certificate for a Shared-Loss Loan. 

“Modification Default Loss” means the loss calculated in Exhibits 2a(1)-(3) for 

single family loans previously modified pursuant to this Single Family Shared-Loss Agreement 

that subsequently default and result in a foreclosure, short sale or Deficient Loss. 

“Modification Guidelines” has the meaning provided in Section 2.1(a) of this 

Single Family Shared-Loss Agreement. 

“Monthly Certificate” has the meaning provided in Section 2.1(b) of this Single 

Family Shared-Loss Agreement. 

“Monthly Loss Amount” means the sum of all Foreclosure Losses, Restructuring 

Losses, Short Sale Losses, Portfolio Losses, Modification Default Losses and Deficient Losses 

realized by the Assuming Institution for any Shared Loss Month. 

“Monthly Shared-Loss Amount” means the change in the Cumulative SharedLoss Amount from the beginning of each month to the end of each month. 

“Net Loss Amount” means the sum of Cumulative Loss Amounts under this 

Single Family Shared-Loss Agreement and Aggregate Net Charge-Offs under the Commercial 

Shared-Loss Agreement. 

“Neutral Member” has the meaning provided in Section 2. 1(f)(ii) of this Single 

Family Shared-Loss Agreement. 

“Portfolio Loss” means the loss realized on either (i) a portfolio sale of Single 

Family Shared-Loss Loans in accordance with the terms of Article IV or (ii) the sale of a loan 

with the consent of the Receiver as provided in Section 2.7. 

“Recovery Amount” means, with respect to any period prior to the Termination 

Date, the amount of collected funds received by the Assuming Institution that (i) are applicable 

against a Foreclosure Loss calculated in accordance with Exhibits 2c(1)-(3), or (iii) gains 

realized from a Section 4.1 sale of Single Family Shared-Loss Loans for which the Assuming 

Institution has previously received a Restructuring Loss payment from the Receiver (iv) or any 

incentive payments from national programs paid to an investor or borrower on loans that have 

been modified or otherwise treated (short sale or foreclosure) in accordance with Exhibit 5. 

“Related Loans” has the meaning set forth in Section 3.1. 

“Restructuring Loss” means the loss on a modified or restructured loan 

measured by the difference between (a) the principal, Accrued Interest, tax and insurance 

advances, third party or other fees due on a loan prior to the modification or restructuring, and 

(b) the net present value of estimated cash flows on the modified or restructured loan, discounted 

at the Then-Current Interest Rate. Each Restructuring Loss shall be calculated in accordance with 

the form and methodology attached as Exhibits 2a(1)-(3), as applicable. 

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“Restructured Loan” means a Single Family Shared-Loss Loan for which the 

Assuming Institution has received a Restructuring Loss payment from the Receiver. This applies 

to owner occupied and investor owned residences. 

“Servicing Officer” has the meaning provided in Section 2.1(b) of this Single 

Family Shared-Loss Agreement. 

“SF1-4 Intrinsic Loss Estimate” means total losses under this Single Family 

Shared-Loss Agreement in the amount of eighteen million dollars ($18,000,000.00). 

“SF Tranche 1 Amount” means a Cumulative Loss Amount under this Single 

Family Shared-Loss Agreement up to and including eleven million seven hundred eighty-one 

thousand seven hundred twenty-seven dollars and ninety-nine cents ($11,781,727.99). 

“SF Tranche 2 Amount” means a Cumulative Loss Amount under this Single 

Family Shared-Loss Agreement greater than the SF Tranche 1 Amount up to and including 

seventeen million nine hundred twenty-five thousand eight hundred seventy-nine dollars 

($17,925,879.00). 

“SF Tranche 3 Amount” means a Cumulative Loss Amount under this Single 

Family Shared-Loss Agreement exceeding seventeen million nine hundred twenty-five thousand 

eight hundred seventy-nine ($17,925,879.00). 

“Shared Loss Loan” means a Single Family Shared-Loss Loan, Investor-Owned 

Residential Loan, Restructured Loan or Home Equity Loan, and any Commitment with respect 

to those loans. 

“Shared-Loss Month” means each calendar month between the Commencement 

Date and the last day of the month in which the tenth anniversary of the Commencement Date 

occurs, provided that, the first Shared-Loss Month shall begin on the Commencement Date and 

end on the last day of that month. 

“Shares” means common stock and any instrument which by its terms is currently 

convertible into common stock, or which may become convertible into common stock. 

“Short-Sale Loss” means the loss resulting from the Assuming Institution’s 

agreement with the mortgagor to accept a payoff in an amount less than the balance due on the 

loan (including the costs of any cash incentives to borrower to agree to such sale or to maintain 

the property pending such sale), further provided, that each Short-Sale Loss shall be calculated in 

accordance with the form and methodology specified in Exhibits 2b(1)-(3). 

“Single Family Shared-Loss Loan” means a single family one-to-four owneroccupied residential mortgage loan, excluding Home Equity Loans, that is secured by a mortgage 

on a one-to four family residence or stock of a cooperative housing association. 

“Termination Date” means the last day of the Final Shared-Loss Month. 

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“Then-Current Interest Rate” means the most recently published Freddie Mac 

survey rate for 30-year fixed-rate loans for Investor-Owned Loans or such other interest rate 

approved by the Receiver. 

“Third Party Servicer” means any servicer appointed from time to time by the 

Assuming Institution or any Affiliate of the Assuming Institution to service the Shared-Loss 

Loans on behalf of the Assuming Institution, the identity of which shall be given to the Receiver 

prior to or concurrent with the appointment thereof. 

“Total Intrinsic Loss Estimate” means the sum of the SF1-4 Intrinsic Loss 

Estimate in the Single Family Shared-Loss Agreement, and the Commercial Intrinsic Loss 

Estimate in the Commercial Shared-Loss Agreement, expressed in dollars. 

ARTICLE II -- SHARED-LOSS ARRANGEMENT 

2.1 Shared-Loss Arrangement. 

(a) Loss Mitigation and Consideration of Alternatives. 

(i) For each Single Family Shared-Loss Loan in default or for which a default is 

reasonably foreseeable, the Assuming Institution shall undertake reasonable and customary loss 

mitigation efforts, in accordance with any of the following programs selected by Assuming 

Institution in its sole discretion, Exhibit 5 (FDIC Mortgage Loan Modification Program), the 

United States Treasury's Home Affordable Modification Program Guidelines or any other 

modification program approved by the United States Treasury Department, the Corporation, the 

Board of Governors of the Federal Reserve System or any other governmental agency (it being 

understood that the Assuming Institution can select different programs for the various Single 

Family Shared-Loss Loans) (such program chosen, the “Modification Guidelines”). After 

selecting the applicable Modification Guideline for each such Single Family Shared-Loss Loan, 

the Assuming Institution shall document its consideration of foreclosure, loan restructuring under 

the applicable Modification Guideline chosen, and short-sale (if short-sale is a viable option) 

alternatives and shall select the alternative the Assuming Institution believes, based on its 

estimated calculations, will result in the least Loss. If unemployment or underemployment is the 

primary cause for default or for which a default is reasonably foreseeable, the Assuming 

Institution may consider the borrower for a temporary forbearance plan which reduces the loan 

payment to an affordable level for at least six (6) months. 

(ii) Losses on Home Equity Loans shall be shared under the charge-off policies 

of the Assuming Institution’s Examination Criteria as if they were Single Family Shared-Loss 

Loans. 

(iii) Losses on Investor-Owned Residential Loans shall be treated as Restructured 

Loans, and with the consent of the Receiver can be restructured under terms separate from the 

Exhibit 5 standards. Please refer to Exhibits 2(a)(1)-(2) for guidance in Calculation of Loss for 

Restructured Loans. Losses on Investor-Owned Residential Loans will be treated as if they were 

Single Family Shared-Loss Loans. 

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(iv) The Assuming Institution shall retain its loss calculations for the Shared Loss 

Loans and such calculations shall be provided to the Receiver upon request. For the avoidance 

of doubt and notwithstanding anything herein to the contrary, (x) the Assuming Institution is not 

required to modify or restructure any Shared-Loss Loan on more than one occasion and (y) the 

Assuming Institution is not required to consider any alternatives with respect to any Shared-Loss 

Loan in the process of foreclosure as of the Bank Closing if the Assuming Institution can 

document that a loan modification is not cost effective and shall be entitled to continue such 

foreclosure measures and recover the Foreclosure Loss as provided herein, and (z) the Assuming 

Institution shall have a transition period of up to 90 days after Bank Closing to implement the 

Modification Guidelines, during which time, the Assuming Institution may submit claims under 

such guidelines as may be in place at the Failed Bank. 

(b) Monthly Certificates. 

Not later than fifteen (15) days after the end of each Shared-Loss Month, 

beginning with the month in which the Commencement Date occurs and ending in the Final 

Shared-Loss Month, the Assuming Institution shall deliver to the Receiver a certificate, signed 

by an officer of the Assuming Institution involved in, or responsible for, the administration and 

servicing of the Shared-Loss Loans whose name appears on a list of servicing officers furnished 

by the Assuming Institution to the Receiver, (a “Servicing Officer”) setting forth in such form 

and detail as the Receiver may reasonably specify (a “Monthly Certificate”): 

(i) (A) a schedule substantially in the form of Exhibit 1 listing: 

(i) each Shared-Loss Loan for which a Loss Amount (calculated in 

accordance with the applicable Exhibit) is being claimed, the related Loss 

Amount for each Shared-Loss Loan, and the total Monthly Loss Amount 

for all Shared-Loss Loans; 

(ii) each Shared-Loss Loan for which a Recovery Amount was received, 

the Recovery Amount for each Shared-Loss Loan, and the total Recovery 

Amount for all Shared-Loss Loans; 

(iii) the total Monthly Loss Amount for all Shared-Loss Loans minus the 

total monthly Recovery Amount for all Shared-Loss Loans; 

(iv) the Cumulative Loss Amount as of the beginning and end of the 

month; 

(v) the Monthly Shared Loss Amount; 

(vi) the result obtained in (v) times the Applicable Percentage, which is 

the amount to be paid under Section 2.1(d) of this Single Family SharedLoss Agreement by the Receiver to the Assuming Institution if the amount 

is a positive number, or by the Assuming Institution to the Receiver if the 

amount is a negative number; 

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(ii)	 for each of the Shared-Loss Loans for which a Loss is claimed for that 

Shared-Loss Month, a schedule showing the calculation of the Loss 

Amount using the form and methodology shown in Exhibits 2a(1)-(3), 

Exhibit 2b, or Exhibits 2c(1)-(2), as applicable. 

(iii)	 For each of the Restructured Loans where a gain or loss is realized in a 

sale under Section 4.1 or 4.2, a schedule showing the calculation using the 

form and methodology shown in Exhibits 2d(1)-(2). 

(iv)	 a portfolio performance and summary schedule substantially in the form 

shown in Exhibit 3. 

(c) Monthly Data Download. Not later than fifteen (15) days after the end of 

each month, beginning with the month in which the Commencement Date occurs and ending 

with the Final Shared-Loss Month, Assuming Institution shall provide Receiver: 

(i) the servicing file in machine-readable format including but not limited to 

the fields shown on Exhibit 2.1(c) for each outstanding Single Family SharedLoss Loan, as applicable; and 

(ii) an Excel file for ORE held as a result of foreclosure on a Single Family 

Shared-Loss Loan listing: 

(A) Foreclosure date 

(B) Unpaid loan principal balance 

(C) Appraised value or BPO value, as applicable 

(D) Projected liquidation date 

Notwithstanding the foregoing, the Assuming Institution shall not be required to provide 

any of the foregoing information to the extent it is unable to do so as a result of the Failed Bank’s 

or Receiver’s failure to provide information required to produce the information set forth in this 

Section 2.1(c); provided, that the Assuming Institution shall, consistent with Customary 

Servicing Procedures seek to produce any such missing information or improve any inaccurate 

information previously provided to it. 

(d) Payments With Respect to Shared-Loss Assets. Not later than fifteen 

(15) days after the date on which the Receiver receives the Monthly Certificate, the Receiver 

shall pay to the Assuming Institution, in immediately available funds, an amount equal to the 

Applicable Percentage of the Monthly Shared-Loss Amount reported on the Monthly Certificate. 

If the total Monthly Shared-Loss Amount reported on the Monthly Certificate is a negative 

number, the Assuming Institution shall pay to the Receiver in immediately available funds the 

Applicable Percentage of that amount. 

(e) Limitations on Shared-Loss Payment. The Receiver shall not be 

required to make any payments pursuant to Section 2.1(d) with respect to any Foreclosure Loss, 

Restructuring Loss, Short Sale Loss, Deficient Loss, or Portfolio Loss that the Receiver 

determines, based upon the criteria set forth in this Single Family Shared-Loss Agreement 

(including the analysis and documentation requirements of Section 2.1(a)) or Customary 

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Servicing Procedures, should not have been effected by the Assuming Institution; provided, 

however, (x) the Receiver must provide notice to the Assuming Institution detailing the grounds 

for not making such payment, (y) the Receiver must provide the Assuming Institution with a 

reasonable opportunity to cure any such deficiency and (z) (1) to the extent curable, if cured, the 

Receiver shall make payment with respect to the properly effected Loss, and (2) to the extent not 

curable, shall not constitute grounds for the Receiver to withhold payment as to all other Losses 

(or portion of Losses) that are properly payable pursuant to the terms of this Single Family 

Shared-Loss Agreement. In the event that the Receiver does not make any payment with respect 

to Losses claimed pursuant to Section 2.1(d), the Receiver and Assuming Institution shall, upon 

final resolution, make the necessary adjustments to the Monthly Shared-Loss Amount for that 

Monthly Certificate and the payment pursuant to Section 2.1(d) above shall be adjusted 

accordingly. 

(f) Payments by Wire-Transfer. All payments under this Single Family 

Shared-Loss Agreement shall be made by wire-transfer in accordance with the wire-transfer 

instructions on Exhibit 4. 

 (g) Payment in the Event Losses Fail to Reach Expected Level. If the asset 

premium (discount) bid expressed in dollars is a five per cent (5%) or more discount to the 

purchase price of the Assets determined in accordance with Article III, then on the date that is 45 

days following the last day (such day, the “True-Up Measurement Date”) of the calendar month 

in which the tenth anniversary of the calendar day following the Bank Closing occurs, or upon 

the final disposition of all Shared Loss Assets under the Single Family Shared-Loss Agreement 

at any time after the termination of this Commercial Shared-Loss Agreement, the Assuming 

Institution shall pay to the Receiver fifty percent (50%) of any positive amount resulting from 

the following calculation: 

A - (B + C + D), where 

A equals 20% of the Total Intrinsic Loss Estimate; 

B equals 20% of the Net Loss Amount; 

C equals 25% of the asset premium (discount) bid, expressed in dollars, of total Shared 

Loss Assets on Schedules 4.15A, 4.15B, and 4.15D at Bank Closing; and 

D equals 3.5% of total Shared Loss Assets on Schedules 4.15A, 4.15B and 4.15D at Bank 

Closing. 

The Assuming Institution shall deliver to the Receiver not later than 30 days following the TrueUp Measurement Date, a schedule, signed by an officer of the Assuming Institution, setting forth 

in reasonable detail the foregoing calculation, including the calculation of the Net Loss Amount. 

(h) Payments as Administrative Expenses. Payments from the Receiver 

with respect to this Single Family Shared-Loss Agreement are administrative expenses of the 

Receiver. To the extent the Receiver needs funds for shared-loss payments respect to this Single 

Family Shared-Loss Agreement, the Receiver shall request funds under the Master Loan and 

Security Agreement, as amended (“MLSA”), from FDIC in its corporate capacity. The Receiver 

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will not agree to any amendment of the MLSA that would prevent the Receiver from drawing on 

the MLSA to fund shared-loss payments. 

2.2 Auditor Report; Right to Audit. 

(a) Within the time period permitted for the examination audit pursuant to 12 

CFR Section 363 after the end of each fiscal year during which the Receiver makes any payment 

to the Assuming Institution under this Single Family Shared-Loss Agreement, the Assuming 

Institution shall deliver to the Receiver a report signed by its independent public accountants 

stating that they have reviewed the terms of this Single Family Shared-Loss Agreement and that, 

in the course of their annual audit of the Assuming Institution’s books and records, nothing has 

come to their attention suggesting that any computations required to be made by the Assuming 

Institution during such fiscal year pursuant to this Article II were not made by the Assuming 

Institution in accordance herewith. In the event that the Assuming Institution cannot comply with 

the preceding sentence, it shall promptly submit to the Receiver corrected computations together 

with a report signed by its independent public accountants stating that, after giving effect to such 

corrected computations, nothing has come to their attention suggesting that any computations 

required to be made by the Assuming Institution during such year pursuant to this Article II were 

not made by the Assuming Institution in accordance herewith. In such event, the Assuming 

Institution and the Receiver shall make all such accounting adjustments and payments as may be 

necessary to give effect to each correction reflected in such corrected computations, retroactive 

to the date on which the corresponding incorrect computation was made. 

(b) The Assuming Institution shall perform on an annual basis an internal 

audit of its compliance with the provisions of this Article II and shall provide the Receiver and 

the Corporation with copies of the internal audit reports and access to internal audit workpapers 

related to such internal audit. 

(c) The Receiver or the FDIC in its corporate capacity (“Corporation”), its 

contractors and their employees, and its agents may perform an audit or audits to determine the 

Assuming Institution’s compliance with the provisions of this Single Family Shared-Loss 

Agreement, including this Article II, by providing not less than ten (10) Business Days’ prior 

written notice. Assuming Institution shall provide access to pertinent records and proximate 

working space in Assuming Institution’s facilities. The scope and duration of any such audit 

shall be within the reasonable discretion of the Receiver or the Corporation, but shall in no event 

be administered in a manner that unreasonably interferes with the operation of the Assuming 

Institution’s business. The Receiver or the Corporation, as the case may be, shall bear the 

expense of any such audit. In the event that any corrections are necessary as a result of such an 

audit or audits, the Assuming Institution and the Receiver shall make such accounting 

adjustments and payments as may be necessary to give retroactive effect to such corrections. 

2.3 Withholdings. Notwithstanding any other provision in this Article II, the 

Receiver, upon the direction of the Director (or designee) of the Federal Deposit Insurance 

Corporation’s Division of Resolutions and Receiverships, may withhold payment for any 

amounts included in a Monthly Certificate delivered pursuant to Section 2.1, if in its good faith 

and reasonable judgment there is a reasonable basis under the requirements of this Single Family 

Shared-Loss Agreement for denying the eligibility of an item for which reimbursement or 

payment is sought under such Section. In such event, the Receiver shall provide a written notice 

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to the Assuming Institution detailing the grounds for withholding such payment. At such time as 

the Assuming Institution demonstrates to the satisfaction of the Receiver, in its reasonable 

judgment, that the grounds for such withholding of payment, or portion of payment, no longer 

exist or have been cured, then the Receiver shall pay the Assuming Institution the amount 

withheld which the Receiver determines is eligible for payment, within fifteen (15) Business 

Days. 

2.4 Books and Records. The Assuming Institution shall at all times during the term 

of this Single Family Shared-Loss Agreement keep books and records sufficient to ensure and 

document compliance with the terms of this Single Family Shared-Loss Agreement, including 

but not limited to (a) documentation of alternatives considered with respect to defaulted loans or 

loans for which default is reasonably foreseeable, (b) documentation showing the calculation of 

loss for claims submitted to the Receiver, (c) retention of documents that support each line item 

on the loss claim forms, and (d) documentation with respect to the Recovery Amount on loans 

for which the Receiver has made a loss-share payment 

2.5 Information. The Assuming Institution shall promptly provide to the Receiver 

such other information, including but not limited to, financial statements, computations, and 

bank policies and procedures, relating to the performance of the provisions of this Single Family 

Shared-Loss Agreement, as the Receiver may reasonably request from time to time. 

2.6 Tax Ruling. The Assuming Institution shall not at any time, without the 

Receiver’s prior written consent, seek a private letter ruling or other determination from the 

Internal Revenue Service or otherwise seek to qualify for any special tax treatment or benefits 

associated with any payments made by the Receiver pursuant to this Single Family Shared-Loss 

Agreement. 

2.7 Loss of Shared-Loss Coverage on Shared-Loss Loans. The Receiver shall be 

relieved of its obligations with respect to a Shared-Loss Loan upon payment of a Foreclosure 

Loss amount, or a Short Sale Loss amount with respect to such Single Family Shared-Loss Loan, 

or upon the sale without FDIC consent of a Single Family Shared-Loss Loan by Assuming 

Institution to a person or entity that is not an Affiliate. The Assuming Institution shall provide 

the Receiver with timely notice of any such sale. Failure to administer any Shared-Loss Loan or 

Loans in accordance with Article III shall at the discretion of the Receiver constitute grounds for 

the loss of shared loss coverage with respect to such Shared-Loss Loan or Loans. 

Notwithstanding the foregoing, a sale of the Single Family Shared-Loss Loan, for purposes of 

this Section 2.7, shall not be deemed to have occurred as the result of (i) any change in the 

ownership or control of Assuming Institution or the transfer of any or all of the Single Family 

Shared-Loss Loan(s) to any Affiliate of Assuming Institution, (ii) a merger by Assuming 

Institution with or into any other entity, or (iii) a sale by Assuming Institution of all or 

substantially all of its assets. 

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ARTICLE III - RULES REGARDING THE ADMINISTRATION OF 

SHARED-LOSS LOANS 

3.1 Agreement with Respect to Administration. The Assuming Institution shall 

(and shall cause any of its Affiliates to which the Assuming Institution transfers any Shared-Loss 

Loans to) manage, administer, and collect the Shared-Loss Loans while owned by the Assuming 

Institution or any Affiliate thereof during the term of this Single Family Shared-Loss Agreement 

in accordance with the rules set forth in this Article III. The Assuming Institution shall be 

responsible to the Receiver in the performance of its duties hereunder and shall provide to the 

Receiver such reports as the Receiver reasonably deems advisable, including but not limited to 

the reports required by Sections 2.1, 2.2 and 3.3 hereof, and shall permit the Receiver to monitor 

the Assuming Institution’s performance of its duties hereunder. 

3.2 Duties of the Assuming Institution. 

(a) In the performance of its duties under this Article III, the Assuming 

Institution shall: 

(i) manage and administer each Shared-Loss Loan in accordance with Assuming Institution’s 

usual and prudent business and banking practices and Customary Servicing Procedures; 

(ii) exercise its best business judgment in managing, administering and collecting amounts 

owed on the Shared-Loss Loans; 

(iii) use commercially reasonable efforts to maximize Recoveries with respect to Losses on 

Shared-Loss Loans without regard to the effect of maximizing collections on assets held by 

the Assuming Institution or any of its Affiliates that are not Shared-Loss Loans; 

(iv) retain sufficient staff (in Assuming Institution’s discretion) to perform its duties 

hereunder; and 

(v) other than as provided in Section 2.1(a), comply with the terms of the Modification 

Guidelines for any Single Family Shared-Loss Loans meeting the requirements set forth 

therein. For the avoidance of doubt, the Assuming Institution may propose exceptions to 

Exhibit 5 (the FDIC Loan Modification Program) for a group of Loans with similar 

characteristics, with the objectives of (1) minimizing the loss to the Assuming Institution and 

the FDIC and (2) maximizing the opportunity for qualified homeowners to remain in their 

homes with affordable mortgage payments. 

(b) Any transaction with or between any Affiliate of the Assuming Institution 

with respect to any Shared-Loss Loan including, without limitation, the execution of any contract 

pursuant to which any Affiliate of the Assuming Institution will manage, administer or collect 

any of the Shared-Loss Loans will be provided to FDIC for informational purposes and if such 

transaction is not entered into on an arm’s length basis on commercially reasonable terms such 

transaction shall be subject to the prior written approval of the Receiver. 

3.3 Shared-Loss Asset Records and Reports. The Assuming Institution shall 

establish and maintain such records as may be appropriate to account for the Single Family 

Shared-Loss Loans in such form and detail as the Receiver may reasonably require, and to enable 

the Assuming Institution to prepare and deliver to the Receiver such reports as the Receiver may 

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from time to time request regarding the Single Family Shared-Loss Loans and the Monthly 

Certificates required by Section 2.1 of this Single Family Shared-Loss Agreement. 

3.4 Related Loans. 

(a) Assuming Institution shall use its best efforts to determine which loans are 

“Related Loans,” as hereinafter defined. The Assuming Institution shall not manage, administer 

or collect any “Related Loan” in any manner that would have the effect of increasing the amount 

of any collections with respect to the Related Loan to the detriment of the Shared-Loss Loan to 

which such loan is related. A “Related Loan” means any loan or extension of credit to an Obligor 

of a Shared-Loss Loan held by the Assuming Institution at any time on or prior to the end of the 

Final Shared-Loss Month. 

(b) The Assuming Institution shall prepare and deliver to the Receiver with 

the Monthly Certificates for the calendar months ending June 30 and December 31, a schedule of 

all Related Loans on the Accounting Records of the Assuming Institution as of the end of each 

such semi-annual period. 

3.5 Legal Action; Utilization of Special Receivership Powers. The Assuming 

Institution shall notify the Receiver in writing (such notice to be given in accordance with Article 

V below and to include all relevant details) prior to utilizing in any legal action any special legal 

power or right which the Assuming Institution derives as a result of having acquired an asset 

from the Receiver, and the Assuming Institution shall not utilize any such power unless the 

Receiver shall have consented in writing to the proposed usage. The Receiver shall have the right 

to direct such proposed usage by the Assuming Institution and the Assuming Institution shall 

comply in all respects with such direction. Upon request of the Receiver, the Assuming 

Institution will advise the Receiver as to the status of any such legal action. The Assuming 

Institution shall immediately notify the Receiver of any judgment in litigation involving any of 

the aforesaid special powers or rights. 

3.6 Third Party Servicer. The Assuming Institution may perform any of its 

obligations and/or exercise any of its rights under this Single Family Shared-Loss Agreement 

through or by one or more Third Party Servicers, who may take actions and make expenditures 

as if any such Third Party Servicer was the Assuming Institution hereunder (and, for the 

avoidance of doubt, such expenses incurred by any such Third Party Servicer on behalf of the 

Assuming Institution shall be included in calculating Losses to the extent such expenses would 

be included in such calculation if the expenses were incurred by Assuming Institution); provided, 

however, that the use thereof by the Assuming Institution shall not release the Assuming 

Institution of any obligation or liability hereunder. 

ARTICLE IV – PORTFOLIO SALE 

4.1 Assuming Institution Portfolio Sales of Remaining Shared-Loss Loans. The 

Assuming Institution shall have the right, with the consent of the Receiver, to liquidate for cash 

consideration, from time to time in one or more transactions, all or a portion of Shared-Loss 

Loans held by the Assuming Institution at any time prior to the Termination Date (“Portfolio 

Sales”). If the Assuming Institution exercises its option under this Section 4.1, it must give sixty 

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(60) days notice in writing to the Receiver setting forth the details and schedule for the Portfolio 

Sale, which shall be conducted by means of sealed bid sales to third parties, not including any of 

the Assuming Institution’s affiliates, contractors, or any affiliates of the Assuming Institution’s 

contractors. Sales of Restructured Loans shall be sold in a separate pool from Shared-Loss Loans 

that have not been restructured. Other proposals for the sale of a Shared-Loss Loan or SharedLoss Loans submitted by the Assuming Institution will be considered by the Receiver on a caseby-case basis. 

4.2 Assuming Institution’s Liquidation of Remaining Shared-Loss Loans. In the 

event that the Assuming Institution does not conduct a Portfolio Sale pursuant to Section 4.1, the 

Receiver shall have the right, exercisable in its sole and absolute discretion, to require the 

Assuming Institution to liquidate for cash consideration, any Shared-Loss Loans held by the 

Assuming Institution at any time after the date that is six months prior to the Termination Date. 

If the Receiver exercises its option under this Section 4.2, it must give notice in writing to the 

Assuming Institution, setting forth the time period within which the Assuming Institution shall 

be required to liquidate the Shared-Loss Loans. The Assuming Institution will comply with the 

Receiver’s notice and must liquidate the Shared-Loss Loans as soon as reasonably practicable by 

means of sealed bid sales to third parties, not including any of the Assuming Institution’s 

affiliates, contractors, or any affiliates of the Assuming Institution’s contractors. The selection of 

any financial advisor or other third party broker or sales agent retained for the liquidation of the 

remaining Shared-Loss Loans pursuant to this Section shall be subject to the prior approval of 

the Receiver, such approval not to be unreasonably withheld, delayed or conditioned. 

4.3 Calculation of Sale Gain or Loss. For Shared-Loss Loans that are not 

Restructured Loans, gain or loss on the sales under Section 4.1 or Section 4.2 will be calculated 

as the sale price received by the Assuming Institution less the unpaid principal balance of the 

remaining Shared-Loss Loans. For any Restructured Loan included in the sale gain or loss on 

sale will be calculated as (a) the sale price received by the Assuming Institution less (b) the net 

present value of estimated cash flows on the Restructured Loan that was used in the calculation 

of the related Restructuring Loss plus (c) Loan principal payments collected by the Assuming 

Institution from the date the Loan was restructured to the date of sale. (See Exhibits 2d(1)-(2) for 

example calculations). 

ARTICLE V -- LOSS-SHARING NOTICES GIVEN TO RECEIVER AND PURCHASER 

All notices, demands and other communications hereunder shall be in writing and shall 

be delivered by hand, or overnight courier, receipt requested, addressed to the parties as follows: 

If to Receiver, to: Federal Deposit Insurance Corporation as Receiver 

for Horizon Bank 

Division of Resolutions and Receiverships 

550 17th Street, N.W. 

Washington, D.C. 20429 

Attention: Ralph Malami, Manager, Capital Markets 

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with a copy to: Federal Deposit Insurance Corporation 

as Receiver for Horizon Bank 

Room E7056 

3501 Fairfax Drive 

Arlington, VA 22226 

Attn: Special Issues Unit 

With respect to a notice under Section 3.5 of this Single Family Shared-Loss Agreement, 

copies of such notice shall be sent to: 

Federal Deposit Insurance Corporation 

Legal Division 

7777 Baymeadows Way West 

Jacksonville, FL 32256 

Attention: Managing Counsel 

If to Assuming Institution, to: 

Bank of the Ozarks 

17901 Chenal Parkway 

Little Rock, AR 72223 

Attention: Mark Ross, President 

Such Persons and addresses may be changed from time to time by notice given pursuant to 

the provisions of this Article V. Any notice, demand or other communication delivered 

pursuant to the provisions of this Article V shall be deemed to have been given on the date 

actually received. 

ARTICLE VI -- MISCELLANEOUS 

6.1. Expenses. Except as otherwise expressly provided herein, all costs and expenses 

incurred by or on behalf of a party hereto in connection with this Single Family Shared-Loss 

Agreement shall be borne by such party whether or not the transactions contemplated herein 

shall be consummated. 

6.2 Successors and Assigns; Specific Performance. This Single Family SharedLoss Agreement, and all of the terms and provisions hereof shall be binding upon and shall inure 

to the benefit of the parties hereto and their respective permitted successors and assigns only. 

The Receiver may assign or otherwise transfer this Single Family Shared-Loss Agreement and 

the rights and obligations of the Receiver hereunder (in whole or in part) to the Federal Deposit 

Insurance Corporation in its corporate capacity without the consent of Assuming Institution. 

Notwithstanding anything to the contrary contained in this Single Family Shared-Loss 

Agreement, except as is expressly permitted in this Section 6.2, the Assuming Institution may 

not assign or otherwise transfer this Single Family Shared-Loss Agreement or any of the 

Assuming Institution’s rights or obligations hereunder (in whole or in part), or sell or transfer of 

any subsidiary of the Assuming Institution holding title to Shared-Loss Assets or Shared-Loss 

Securities, without the prior written consent of the Receiver, which consent may be granted or 

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withheld by the Receiver in its sole and absolute discretion. An assignment or transfer of this 

Single Family Shared-Loss Agreement includes: 

(i) a merger or consolidation of the Assuming Institution with or into another company, 

if the shareholders of the Assuming Institution will own less than sixty-six and two/thirds percent 

(66.66 %) of the equity of the consolidated entity; 

(ii) a merger or consolidation of the Assuming Institution’s Holding Company with or 

into another company, if the shareholders of the Holding Company will own less than sixty-six 

and two/thirds percent (66.66 %) of the equity of the consolidated entity; 

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

company or person; or 

(iv) a sale of shares by any one or more shareholders that will effect a change in control 

of the Assuming Institution, as determined by the Receiver with reference to the standards set 

forth in the Change in Bank Control Act, 12 U.S.C. 1817(j). 

 For the avoidance of doubt, any transaction under this Section 6.2 that requires the Receiver’s 

consent that is made without consent of the Receiver hereunder will relieve the Receiver of any 

of its obligations under this Single Family Shared-Loss Agreement. 

No Loss shall be recognized under this Single Family Shared-Loss Agreement as a result of any 

accounting adjustments that are made due to or as a result of any assignment or transfer of this 

Single Family Shared-Loss Agreement or any merger, consolidation, sale or other transaction to 

which the Assuming Institution, its Holding Company or any Affiliate is a party, regardless of 

whether the Receiver consents to such assignment or transfer in connection with such transaction 

pursuant to this Section 6.2. 

6.3 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY 

IRREVOCABLY AND UNCONDITIONALLY WAIVES ALL RIGHT TO TRIAL BY JURY 

IN OR TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, ACTION, 

PROCEEDING OR COUNTERCLAIM, WHETHER SOUNDING IN CONTRACT, TORT OR 

OTHERWISE, ARISING OUT OF OR RELATING TO OR IN CONNECTION WITH THIS 

SINGLE FAMILY SHARED-LOSS AGREEMENT OR ANY OF THE TRANSACTIONS 

CONTEMPLATED HEREBY. 

6.4 No Third Party Beneficiary. This Single Family Shared-Loss Agreement and 

the Exhibits hereto are for the sole and exclusive benefit of the parties hereto and their respective 

permitted successors and permitted assigns and there shall be no other third party beneficiaries, 

and nothing in this Single Family Shared-Loss Agreement or the Exhibits shall be construed to 

grant to any other Person any right, remedy or Claim under or in respect of this Single Family 

Shared-Loss Agreement or any provision hereof. 

6.5 Consent. Except as otherwise provided herein, when the consent of a party is 

required herein, such consent shall not be unreasonably withheld or delayed. 

6.6 Rights Cumulative. Except as otherwise expressly provided herein, the rights of 

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each of the parties under this Single Family Shared-Loss Agreement are cumulative, may be 

exercised as often as any party considers appropriate and are in addition to each such party’s 

rights under the Purchase and Sale Agreement and any of the related agreements or under law. 

Except as otherwise expressly provided herein, any failure to exercise or any delay in exercising 

any of such rights, or any partial or defective exercise of such rights, shall not operate as a 

waiver or variation of that or any other such right. 

ARTICLE VII 

DISPUTE RESOLUTION 

7.1 Dispute Resolution Procedures. 

(a) In the event a dispute arises about the interpretation, application, calculation of 

Loss, or calculation of payments or otherwise with respect to this Single Family Shared-Loss 

Agreement (“SF Shared-Loss Dispute Item”), then the Receiver and the Assuming Institution 

shall make every attempt in good faith to resolve such items within sixty (60) days following the 

receipt of a written description of the SF Shared-Loss Dispute Item, with notification of the 

possibility of taking the matter to arbitration (the date on which such 60-day period expires, or 

any extension of such period as the parties hereto may mutually agree to in writing, herein called 

the “Resolution Deadline Date”). If the Receiver and the Assuming Institution resolve all such 

items to their mutual satisfaction by the Resolution Deadline Date, then within thirty (30) days 

following such resolution, any payment due as a result of such resolution shall be made arising 

from the settlement of the SF Shared-Loss Dispute. 

(b) If the Receiver and the Assuming Institution fail to resolve any outstanding SF 

Shared-Loss Dispute Items by the Resolution Deadline Date, then either party may notify the 

other of its intent to submit the SF Shared-Loss Dispute Item to arbitration pursuant to the 

provisions of this Article VII. Failure of either party to submit pursuant to paragraph (c) hereof 

any unresolved SF Shared-Loss Dispute Item to arbitration within thirty (30) days following the 

Resolution Deadline Date (the date on which such thirty (30) day period expires is herein called 

the “Arbitration Deadline Date”) shall extinguish that party’s right to submit the non-submitted 

SF Shared-Loss Dispute Item to arbitration, and constitute a waiver of the submitting party’s 

right to dispute such non-submitted SF Shared-Loss Dispute Item (but not a waiver of any 

similar claim which may arise in the future). 

(c) If a SF Shared-Loss Dispute Item is submitted to arbitration, it shall be governed 

by the rules of the American Arbitration Association (the “AAA”), except as otherwise provided 

herein. Either party may submit a matter for arbitration by delivering a notice, prior to the 

Arbitration Deadline Date, to the other party in writing setting forth: 

(i) A brief description of each SF Shared-Loss Dispute Item submitted for 

arbitration; 

(ii) A statement of the moving party’s position with respect to each SF 

Shared-Loss Dispute Item submitted for arbitration; 

(iii) The value sought by the moving party, or other relief requested regarding 

each SF Shared-Loss Dispute Item submitted for arbitration, to the extent 

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reasonably calculable; and 

(iv) The name and address of the arbiter selected by the moving party (the 

“Moving Arbiter”), who shall be a neutral, as determined by the AAA. 

Failure to adequately include any information above shall not be deemed to be a 

waiver of the parties right to arbitrate so long as after notification of such failure the moving 

party cures such failure as promptly as reasonably practicable. 

(d) The non-moving party shall, within thirty (30) days following receipt of a notice 

of arbitration pursuant to this Section 7.1, deliver a notice to the moving party setting forth: 

(i) The name and address of the arbiter selected by the non-moving party (the 

“Respondent Arbiter”), who shall be a neutral, as determined by the AAA; 

(ii) A statement of the position of the respondent with respect to each Dispute 

Item; and 

(iii) The ultimate resolution sought by the respondent or other relief, if any, the 

respondent deems is due the moving party with respect to each SF Shared-Loss 

Dispute Item. 

Failure to adequately include any information above shall not be deemed to be a 

waiver of the non-moving party’s right to defend such arbitration so long as after notification of 

such failure the non-moving party cures such failure as promptly as reasonably practicable 

(e) The Moving Arbiter and Respondent Arbiter shall select a third arbiter from a list 

furnished by the AAA. In accordance with the rules of the AAA, the three (3) arbiters shall 

constitute the arbitration panel for resolution of each SF Loss-Share Dispute Item. The 

concurrence of any two (2) arbiters shall be deemed to be the decision of the arbiters for all 

purposes hereunder. The arbitration shall proceed on such time schedule and in accordance with 

the Rules of Commercial Arbitration of the AAA then in effect, as modified by this Section 7.1. 

The arbitration proceedings shall take place at such location as the parties thereto may mutually 

agree, but if they cannot agree, then they will take place at the offices of the Corporation in 

Washington, DC, or Arlington, Virginia. 

(f) The Receiver and Assuming Institution shall facilitate the resolution of each 

outstanding SF Shared-Loss Dispute Item by making available in a prompt and timely manner to 

one another and to the arbiters for examination and copying, as appropriate, all documents, 

books, and records under their respective control and that would be discoverable under the 

Federal Rules of Civil Procedure. 

(g) The arbiters designated pursuant to subsections (c), (d) and (e) hereof shall select, 

with respect to each Dispute Item submitted to arbitration pursuant to this Section 7.1, either (i) 

the position and relief submitted by the Assuming Institution with respect to each SF SharedLoss Dispute Item, or (ii) the position and relief submitted by the Receiver with respect to each 

SF Shared-Loss Dispute Item, in either case as set forth in its respective notice of arbitration. The 

arbiters shall have no authority to select a value for each Dispute Item other than the 

determination set forth in Section 7.1(c) and Section 7.1(d). The arbitration shall be final, 

binding and conclusive on the parties. 

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(h) Any amounts ultimately determined to be payable pursuant to such award shall 

bear interest at the Settlement Interest Rate from and including the date specified for the arbiters 

decisions specified in this Section 7.1, without regard to any extension of the finality of such 

award, to but not including the date paid. All payments required to be made under this Section 

7.1 shall be made by wire transfer. 

(i) For the avoidance of doubt, to the extent any notice of a SF Shared-Loss Dispute 

Item(s) is provided prior to the Termination Date, the terms of this Single Family Shared-Loss 

Agreement shall remain in effect with respect to the Single Family Shared-Loss Loans that are 

the subject of such SF Shared-Loss Dispute Item(s) until such time as any such dispute is finally 

resolved. 

7.2 Fees and Expenses of Arbiters. The aggregate fees and expenses of the arbiters 

shall be borne equally by the parties. The parties shall pay the aggregate fees and expenses 

within thirty (30) days after receipt of the written decision of the arbiters (unless the arbiters 

agree in writing on some other payment schedule). 

 Exhibit 1 

Monthly Certificate 

SEE FOLLOWING PAGE 

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Calculation of Amount Due from (to) FDIC 

FDIC % Share 0% 80% Total 

Carry forward from other types of assets: 

1. Cumulative losses from single family pool 0 0 0 

2. Cumulative losses from securities 0 0 0 

3. Cumulative loss from commercial and other pool 0 0 0 

4. Total cumulative losses at beg of period 0 0 0 

5. Covered single family losses (gains) during period 0 0 0 

6. Cumulative loss at end of period 0 0 0

 FDIC % Share x 0% x 80% 

7. Amount Due from (to) FDIC 0+ 0+ = -

Memo: threshold for recovery percentage 0 0 

Preparer name: _________________________ ______________________________ 

Preparer signature 

Preparer title: _________________________ 

Officer name: _________________________ ______________________________ 

Officer signature 

Officer title: _________________________ 

Date: _________________________ 

Page 1 of 3 

Shared-Loss Period Ended: __________________ 

(Dollars) 

CERTIFICATE 

MONTHLY SUMMARY 

FOR SINGLE FAMILY ASSETS 

FDIC - RECEIVER FOR XXXXXXX BANK 

PURCHASE AND ASSUMPTION AGREEMENT DATED: Jan 1, 2009 
 

 

 

 

 

CERTIFICATE 

MONTHLY SUMMARY 

FOR SINGLE FAMILY ASSETS 

FDIC - RECEIVER FOR XXXXXXX BANK 

PURCHASE AND ASSUMPTION AGREEMENT DATED: Jan 1, 2009 

Shared-Loss Period Ended: __________________ 

(Dollars) 

Calculation of Amount Due from (to) FDIC 

FDIC % Share 

Carry forward from other types of assets: 

1. Cumulative losses from single family pool 

2. Cumulative losses from securities 

3. Cumulative loss from commercial and other pool 

4. Total cumulative losses at beg of period 

5. Covered single family losses (gains) during period 

6. Cumulative loss at end of period 

 FDIC % Share 

7. Amount Due from (to) FDIC 

Memo: threshold for recovery percentage 

0% 

0 

0 

0 

0 

0 

0 

x 0% 

0+ 

0 

80% 

0 

0 

0 

0 

0 

0 

x 80% 

0+ 

0 

= 

Total 

-

0 

0 

0 

0 

0 

0

Preparer name: _________________________ 

Preparer title: _________________________ 

______________________________ 

Preparer signature 

Officer name: _________________________ 

Officer title: _________________________ 

______________________________ 

Officer signature 

Date: _________________________ 

Page 1 of 3 

Module 1 – Whole Bank w/ Loss Share – P&A Horizon Bank 

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- - - - - - - - - - 

 

- - - - - - - - - - 

 

- - - - - - - - - - 

 

- - - - - - - - - - 

 

 

XXXXXXXXX Bank 

FIN No. __________ 

Schedule 4.15B Date: 

Non-Single Family Shared-Loss Agreement 

Proforma Net Balance* Unfunded 

Schedule 4.15B as provided $ - $ -

Loan Explanation 

Number Name Net Balance Unfunded (Loan Description) 

Add the following loans currently included in Schedule 4.15A Single Family Shared-Loss Agreement: 

Subtotal - -

Subtract the following loans currently included in Schedule 4.15B Non-Single Family Shared-Loss Agreement: 

Subtotal - -

Add the following loan not included in either Schedule 4.15A or 4.15B Asset Detail (Must provide documentation) 

Subtotal - -

Add the following Unfunded Commitments (Must provide documentation) 

Subtotal - -

Total Adjustments - -

Schedule 4.15B Revised Totals $ - $ -

Note: Total adjustments should also be reflected in the Certificate filing for the quarter this form is submitted. 

* Net Balance agrees with amount noted on Schedule 4.15A Single Family Shared-Loss Agreement, or Revised Totals

 if this form has already been submitted previously. 

Module 1 – Whole Bank w/ Loss Share – P&A Horizon Bank 

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 - -

 - -

 - -

 - -

 - -

 

 

 - -

 - -

 - -

 - -

 - -

 

 

 - -

 - -

 - -

 - -

 - -

 

 - -

 - -

 - -

 - -

 - -

 

 

 

XXXXXXXXX Bank 

FIN No. __________ 

Schedule 4.15A 

Single Family Shared-Loss Agreement 

Date: 

Schedule 4.15A as provided 

Proforma Net Balance* 

$ - $ 

Unfunded 

-

Loan 

Number Name Net Balance Unfunded 

Explanation 

(Loan Description) 

Add the following loans currently included in Schedule 4.15B Non-Single Family Shared-Loss Agreement: 

Subtotal - -

Subtract the following loans currently included in Schedule 4.15A Single Family Shared-Loss Agreement: 

Subtotal - -

Add the following loan not included in either Schedule 4.15A or 4.15B Asset Detail (Must provide documentation) 

Subtotal - -

Add the following Unfunded Commitments (Must provide documentation) 

Subtotal - -

Total Adjustments - -

Schedule 4.15A Revised Totals $ - $ -

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5 

10 

 

15 

20 

25 

30 

35 

 

Exhibit 2.1(c) 

1 Shared-Loss Month 

2 Loan ID 

3 First payment date 

4 Property type 

Lien 

6 Original loan amount 

7 Documentation 

8 Original FICO 

9 Original LTV 

Original combined LTV 

11 Original front-end DTI 

12 Original back-end DTI 

13 Negative Amortization cap 

14 Property city 

Property state 

16 Property street address 

17 Property zip 

18 Maturity date 

19 MI Coverage 

Occupancy 

21 Interest rate type 

22 Product Type 

23 Loan amortization type 

24 Lookback 

Margin 

26 Interest rate index 

27 Interest rate cap 

28 Interest rate floor 

29 First interest cap 

Periodic interest cap 

31 Periodic interest floor 

32 Pay Cap 

33 UPB 

34 Interest rate 

Paid-to date 

36 Next payment due date 

37 Scheduled payment 

38 Escrow payment 

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39 Escrow balance 

40 Next interest rate reset date 

41 Next payment reset date 

42 Rate reset period 

43 Payment reset period 

44 Payment History 

45 Exceptional Loan Status 

46 Valuation date 

47 Valuation amount 

48 Valuation type 

49 Household income 

50 Current FICO 

51 Maximum Draw Amount 

52 Draw period 

53 Superior Lien Balance 

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Exhibit 2a (1)
 

CALCULATION OF RESTRUCTURING LOSS - HAMP or FDIC LOAN
 

MODIFICATION 

1 Shared-Loss Month 20090531 

2 Loan no: 123456 

3 Modification Program: HAMP 

Loan before Restructuring 

4 Unpaid principal balance 450000 

5 Remaining term 298 

6 Interest rate 0.06500 

7 Next ARM reset rate (if within next 4 months) 0.00000 

8 Interest Paid-To-Date 20081230 

9 Delinquency Status FC 

10 Monthly payment - P&I 3047 

11 Monthly payment - T&I 1000

 Total monthly payment 4047 

12 Household current annual income 95000 

13 Valuation Date 20090121 

14 Valuation Amount 425000 

Valuation Type (Interior/exterior appraisal, BPO, 

15 AVM, etc) AVM 

Terms of Modified/Restructured Loan 

16 1st Trial Payment Due Date 20090119 

17 Modification Effective Date 20090419 

Net Unpaid Principal Balance (net of forbearance & 

18 principal reduction) 467188 

19 Principal forbearance 0 

20 Principal reduction 0 

21 Product (fixed or step) step 

22 Remaining amortization term 480 

23 Maturity date 20490119 

24 Interest rate 0.02159 

25 Next Payment due date 20090601 

26 Monthly payment - P&I 1454 

27 Monthly payment - T&I 1000

 Total monthly payment 2454 

28 Next reset date 20140501 

29 Interest rate change per adjustment 0.01000 

30 Lifetime interest rate cap 0.05530 

31 Back end DTI 0.45000 

Restructuring Loss Calculation 

same as Unpaid Principal Balance before 

4 above restructuring/modification 450000 

34 Accrued interest, limited to 90 days 7313 

35 Attorney's fees 0 

 Foreclosure costs, including title search, filing fees, 

36 advertising, etc. 500 

37 Property protection costs, maint. and repairs 0 

38 Tax and insurance advances 2500

 Other Advances 

39 Appraisal/Broker's Price Opinion fees 100 

40 Inspections 0 

41 Other 0

 Total loan balance due before restructuring 460413 

Cash Recoveries: 

42 MI contribution 0 

43 Other credits 0 

44 T & I escrow account balances, if positive 

Total Cash Recovery 0 

Assumptions for Calculating Loss Share Amount, Restructured Loan: 

45 Discount rate for projected cash flows 0.05530 

46 Loan prepayment in full 120 

47 NPV of projected cash flows (see amort schd1) 386927 

48 Gain/Loss Amount 73485 

Line item definitions can be found in SFR Data Submission Handbook. 

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Exhibit 2a(2) 

CALCULATION OF RESTRUCTURING LOSS - 2nd FDIC MODIFICATION 

1 Shared-Loss Month 20090531 

2 Loan no: 123456 

3 Modification Program: FDIC 

Loan before Restructuring 

4 Unpaid principal balance 450000 

5 Remaining term 298 

6 Interest rate 0.06500 

7 Next ARM reset rate (if within next 4 months) 0.00000 

8 Interest Paid-To-Date 20081230 

9 Delinquency Status FC 

10 Monthly payment - P&I 3047 

11 Monthly payment - T&I 1000

 Total monthly payment 4047 

12 Household current annual income 95000 

13 Valuation Date 20090121 

14 Valuation Amount 425000 

Valuation Type (Interior/exterior appraisal, BPO, 

15 AVM, etc) AVM 

Terms of Modified/Restructured Loan 

16 1st Trial Payment Due Date 20090201 

17 Modification Effective Date 20090501 

Net Principal balance (net of forbearance & principal 

18 reduction) 467188 

19 Principal forbearance 0 

20 Principal reduction 0 

21 Product (fixed or step) step 

22 Remaining amortization term 480 

23 Maturity date 20490501 

24 Interest rate 0.02159 

25 Next Payment due date 20090601 

26 Monthly payment - P&I 1454 

27 Monthly payment - T&I 1000

 Total monthly payment 2454 

28 Next reset date 20140501 

29 Interest rate change per adjustment 0.01000 

30 Lifetime interest rate cap 0.05530 

31 Back end DTI 0.45000 

Restructuring Loss Calculation 

32 Previous NPV of loan modification 458740 

33 Less: Post modification principal payments 2500 

Plus: 

35 Attorney's fees 0 

 Foreclosure costs, including title search, filing fees, 

36 advertising, etc. 500 

37 Property protection costs, maint. and repairs 0 

38 Tax and insurance advances 2500

 Other Advances 

39 Appraisal/Broker's Price Opinion fees 100 

40 Inspections 0 

41 Other 0

 Total loan balance due before restructuring 459340 

Cash Recoveries: 

42 MI contribution 0 

43 Other credits 0 

44 T & I escrow account balances, if positive 

Total Cash Recovery 0 

Assumptions for Calculating Loss Share Amount, Restructured Loan: 

45 Discount rate for projected cash flows 0.05530 

46 Loan prepayment in full 120 

47 NPV of projected cash flows (see amort schd1) 386927 

48 Gain/Loss Amount 72413 

Line item definitions can be found in SFR Data Submission Handbook. 

Module 1 – Whole Bank w/ Loss Share – P&A Horizon Bank 

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1. 

2. 

3. 

4. 

5. 

6. 

7. 

Notes to Exhibits 2a (restructuring) 

The data shown are for illustrative purpose. The figures will vary for actual 

restructurings. 

For purposes of loss sharing, losses on restructured loans are calculated as the difference 

between: 

a.	 The principal, accrued interest, advances due on the loan, and allowable 3rd party 

fees prior to restructuring (2a(1) lines 34-41, 2a(2) lines 33-41), and 

b.	 The Net Present Value (NPV) of the estimated cash flows (line 47). The cash 

flows should assume no default or prepayment for 10 years, followed by 

prepayment in full at the end of 10 years (120 months). 

For owner-occupied residential loans, the NPV is calculated using the most recently 

published Freddie Mac survey rate on 30-year fixed rate loans as of the restructure date. 

For investor owned or non-owner occupied residential loans, the NPV is calculated using 

commercially reasonable rate on 30-year fixed rate loans as of the restructure date. 

If the new loan is an adjustable-rate loan, interest rate resets and related cash flows 

should be projected based on the index rate in effect at the date of the loan restructuring. 

If the restructured loan otherwise provides for specific charges in monthly P&I payments 

over the term of the loan, those changes should be reflected in the projected cash flows. 

Assuming Institution must retain supporting schedule of projected cash flows as required 

by Section 2.1 of the Single Family Shared-Loss Agreement and provide it to the FDIC if 

requested for a sample audit. 

Do not include late fees, prepayment penalties, or any similar lender fees or charges by 

the Failed Bank or Assuming Institution to the loan account, any allocation of Assuming 

Institution’s servicing costs, or any allocations of Assuming Institution’s general and 

administrative (G&A) or other operating costs. 

The amount of accrued interest that may be added to the balance of the loan is limited to 

the lesser of: 

a.	 90 days 

b.	 The number of days that the loan is delinquent at the time of restructuring 

c. The number of days between the resolution date and the restructuring 

To calculate accrued interest, apply the note interest rate that would have been in effect if 

the loan were performing to the principal balance after application of the last payment 

made by the borrower. 

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Exhibit 2b(1)

CALCULATION OF LOSS FOR SHORT SALE LOANS
 

Loan written down to book value prior to Loss Share
 

1 Shared-Loss Month:
 

2 Loan #
 

3 Interest Paid-to-Date
 

4 Short Payoff Date
 

5 Note Interest rate
 

6 Occupancy
 

If owner occupied:
 

7 Household current annual income
 

8 Estimated NPV of loan mod
 

9 Valuation Date
 

10 Valuation Amount 

Valuation Type (Interior/exterior appraisal, 

11 BPO, AVM, etc) 

Short-Sale Loss calculation 

13 Book Value 

14 Less: Post closing principal payments 

17 Accrued interest, limited to 90 days 

18 Attorney's fees 

Foreclosure costs, including title search, 

19 filing fees, advertising, etc. 

Property protection costs, maint., repairs 

and any costs or expenses relating to 

20 environmental conditions 

21 Tax and insurance advances 

Other Advances 

22 Appraisal/Broker’s Price Opinion fees 

23 Inspections 

24 Other 

25 Incentive to borrower 

 Gross balance recoverable by Purchaser 

26 Amount accepted in Short-Sale (net proceeds) 

27 Hazard Insurance 

28 Mortgage Insurance 

29 T & I escrow account balance, if positive 

30 Other credits, if any (itemize) 

 Total Cash Recovery 

31 Gain/Loss Amount 

20090531 

62201 

20071130 

20090522 

0.08500 

Owner 

45000 

220000 

20090121 

300000 

Ext Appraisal 

300000 

0 

6375 

75 

0 

0 

0 

250 

600 

0 

5000

312300 

275000 

0 

0 

0 

0

275000 

37300 

1 Costs with respect to environmental remediation activities 

are limited to $200,000 unless prior consent of the FDIC 

Line item definitions located in SF Data Submission Handbook 

Module 1 – Whole Bank w/ Loss Share – P&A Horizon Bank 

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Exhibit 2b(2)

CALCULATION OF LOSS FOR SHORT SALE LOANS
 

No Preceeding Loan Mod under Loss Share
 

1 Shared-Loss Month:
 

2 Loan #
 

3 Interest Paid-to-Date
 

4 Short Payoff Date
 

5 Note Interest rate
 

6 Occupancy
 

If owner occupied:
 

7 Household current annual income
 

8 Estimated NPV of loan mod
 

9 Valuation Date
 

10 Valuation Amount 

Valuation Type (Interior/exterior appraisal, 

11 BPO, AVM, etc) 

Short-Sale Loss calculation 

12 Loan UPB 

17 Accrued interest, limited to 90 days 

18 Attorney's fees 

Foreclosure costs, including title search, 

19 filing fees, advertising, etc. 

Property protection costs, maint., repairs 

and any costs or expenses relating to 

20 environmental conditions 

21 Tax and insurance advances 

Other Advances 

22 Appraisal/Broker’s Price Opinion fees 

23 Inspections 

24 Other 

25 Incentive to borrower 

 Gross balance recoverable by Purchaser 

26 Amount accepted in Short-Sale (net proceeds) 

27 Hazard Insurance 

28 Mortgage Insurance 

T & I escrow account balance, if positive 

29 

30 Other credits, if any (itemize) 

 Total Cash Recovery 

31 Gain/Loss Amount 

20090531 

58776 

20080731 

20090417 

0.07750 

Owner 

38500 

200000 

20090121 

300000 

Ext Appraisal 

375000 

7266 

0 

400 

1450 

0 

350 

600 

0 

2000

387066 

255000 

0 

0 

0 

0

255000 

132066 

1 Costs with respect to environmental remediation activities 

are limited to $200,000 unless prior consent of the FDIC 

Line item definitions located in SF Data Submission Handbook 

Module 1 – Whole Bank w/ Loss Share – P&A Horizon Bank 

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Exhibit 2b(3) 

CALCULATION OF LOSS FOR SHORT SALE LOANS 

Short Sale after a Covered Loan Mod 

1 Shared-Loss Month: 20090531 

2 Loan # 20076 

3 Interest paid-to-date 20080930 

4 Short Payoff Date 20090402 

5 Note Interest rate 0.07500 

9 Valuation Date 20090121 

10 Valuation Amount 230000 

Ext 

11 Valuation Type (Interior/exterior appraisal, BPO, AVM, etc) Appraisal 

Short-Sale Loss calculation 

15 NPV of projected cash flows at first loan mod 311000 

16 Less: Post modification principal payments 1000 

Plus: 

18 Attorney's fees 0 

Foreclosure costs, including title search, filing fees, 

19 advertising, etc. 0 

Property protection costs, maint., repairs and any costs or 

20 expenses relating to environmental conditions 0 

21 Tax and insurance advances 0 

 Other advances 

22 Appraisal/Broker’s Price Opinion fees 350 

23 Inspections 600 

24 Other 0 

25 Incentive to borrower 3500 

Gross balance recoverable by Purchaser 314450 

26 Amount accepted in Short-Sale (net proceeds) 210000 

27 Hazard Insurance 0 

28 Mortgage Insurance 0 

29 T & I escrow account balance, if positive 400 

30 Other credits, if any (itemize) 0 

 Total Cash Recovery 210400 

31 Loss Amount 104050 

Costs with respect to environmental remediation activities 

are limited to $200,000 unless prior consent of the FDIC 

Line item definitions located in SF Data Submission Handbook 

Module 1 – Whole Bank w/ Loss Share – P&A Horizon Bank 

Version 2.09A Bradenton, Florida 

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1. 

2. 

3. 

4. 

5. 

6. 

7. 

Notes to Exhibits 2b (short sale) 

The data shown are for illustrative purpose. The figures will vary for actual short sales. 

The covered loss is the difference between the gross balance recoverable by Purchaser 

and the total cash recovery. There are two methods of calculation for covered losses 

from short sales, depending upon the circumstances. They are shown below: 

a.	 If the loan was restructured when the Loss Share agreement was in place, and 

then the short sale occurred, use Exhibit 2b(3). This version uses the Net Present 

Value (NPV) of the modified loan as the starting point for the covered loss. 

b.	 Otherwise, use Exhibit 2b(2). This version uses the unpaid balance of the loan as 

of the last payment as the starting point for the covered loss. 

c.	 Use Exhibit 2b(1) for loans written down to book value prior to the shared-loss 

agreement. 

For Exhibit 2b(2), the gross balance recoverable by the purchaser is calculated as the sum 

of lines 12 – 25; it is shown after line 25. For Exhibit 2b(3), the gross balance recoverable 

by the purchaser is calculated as line 15 minus line 16 plus lines 18 – 25; it is shown after 

line 25. 

For Exhibit 2b(2), the total cash recovery is calculated as the sum of lines 26 – 30; it is 

shown in line 31. For Exhibit 2b(3), the total cash recovery is calculated as the sum of 

lines 26 – 30; it is shown after line 30. 

Reasonable and customary third party attorney’s fees and expenses incurred by or on 

behalf of Assuming Institution in connection with any enforcement procedures, or 

otherwise with respect to such loan, are reported under Attorney’s fees. 

Do not include late fees, prepayment penalties, or any similar lender fees or charges by 

the Failed Bank or Assuming Institution to the loan account, any allocation of Assuming 

Institution’s servicing costs, or any allocations of Assuming Institution’s general and 

administrative (G&A) or other operating costs. 

If Exhibit 2b(3) is used, then no accrued interest may be included as a covered loss. 

Otherwise, the amount of accrued interest that may be included as a covered loss is 

limited to the lesser of: 

a.	 90 days 

b.	 The number of days that the loan is delinquent when the property was sold 

c.	 The number of days between the resolution date and the date when the property 

was sold 

To calculate accrued interest, apply the note interest rate that would have been in effect if 

the loan were performing to the principal balance after application of the last payment 

made by the borrower. 

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Exhibit 2c(1)

CALCULATION OF FORECLOSURE LOSS
 

ORE or Foreclosure Occurred Prior to Loss Share Agreement
 

1 Shared-Loss Month 20090630 

2 Loan no: 364574 

3 Interest Paid-To-Date 20071001 

4 Foreclosure sale date 20080202 

5 Liquidation date 20090412 

6 Note Interest rate 0.08100 

10 Valuation Date 20090121 

11 Valuation Amount 228000 

Valuation Type (Interior/exterior appraisal, BPO, 

12 AVM, etc) Int Appr 

Foreclosure Loss calculation 

13 Book value at date of Loss Share agreement 244900 

14 Less: Post closing principal payments 0 

3306 

Costs incurred after Loss Share agreement in 

place: 

19 Attorney's fees 0 

 Foreclosure costs, including title search, filing 

20 fees, advertising, etc. 0 

21 Property protection costs, maint. and repairs 6500 

22 Tax and insurance advances 0

 Other Advances 

23 Appraisal/Broker's Price Opinion fees 0 

24 Inspections 0 

25 Other 0 

Gross balance recoverable by Purchaser 254706 

Cash Recoveries: 

26 Net liquidation proceeds (from HUD-1 settl stmt) 219400 

27 Hazard Insurance proceeds 0 

28 Mortgage Insurance proceeds 0 

29 T & I escrow account balances, if positive 0 

30 Other credits, if any (itemize) 0

 Total Cash Recovery 219400 

31 Gain/Loss Amount 35306 

Line item definitions located in SF Data Submission Handbook 

Module 1 – Whole Bank w/ Loss Share – P&A Horizon Bank 

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Exhibit 2c(2)

CALCULATION OF FORECLOSURE LOSS
 

During Term of the Agreement 

No Preceeding Loan Mod under Loss 

Share
 

1 Shared-Loss Month
 

2 Loan no:
 

3 Interest Paid-to-Date
 

4 Foreclosure sale date
 

5 Liquidation date
 

6 Note Interest rate
 

7 Occupancy
 

If owner occupied:
 

8 Household current annual income
 

9 Estimated NPV of loan mod
 

10 Valuation Date 

11 Valuation Amount 

Valuation Type (Interior/exterior appraisal, BPO, AVM, 

12 etc) 

Foreclosure Loss calculation 

14 Loan Principal balance at property reversion 

Plus: 

18 Accrued interest, limited to 90 days 

19 Attorney's fees 

Foreclosure costs, including title search, filing fees, 

20 advertising, etc. 

21 Property protection costs, maint. and repairs 

22 Tax and insurance advances 

Other Advances 

23 Appraisal/Broker's Price Opinion fees 

24 Inspections 

25 Other 

Gross balance recoverable by Purchaser 

Cash Recoveries: 

26 Net liquidation proceeds (from HUD-1 settl stmt) 

27 Hazard Insurance proceeds 

28 Mortgage Insurance proceeds 

29 T & I escrow account balances, if positive 

30 Other credits, if any (itemize) 

 Total Cash Recovery 

31 Gain/Loss Amount 

20090531 

292334 

20080430 

20090115 

20090412 

0.08000 

Owner 

42000 

195000 

20090121 

235000 

Ext BPO 

300000 

6000 

0 

4000 

5500 

1500 

0 

50 

0 

317050 

205000 

0 

0 

0 

0

205000 

112050 

Line item definitions located in SF Data Submission Handbook 

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Exhibit 2c(3) 

CALCULATION OF FORECLOSURE LOSS 

Foreclosure after a Covered Loan Mod 

1 Shared-Loss Month 20090531 

2 Loan no: 138554 

3 Interest Paid-to-Date 20080430 

4 Foreclosure sale date 20090115 

5 Liquidation date 20090412 

6 Note Interest rate 0.04000 

10 Valuation Date 20081215 

11 Valuation Amount 210000 

12 Valuation Type (Interior/exterior appraisal, BPO, AVM, etc) Ext Appr 

Foreclosure Loss calculation 

16 NPV of projected cash flows at loan mod 285000 

17 Less: Post modification principal payments 2500 

Plus: 

19 Attorney's fees 0 

Foreclosure costs, including title search, filing fees, 

20 advertising, etc. 4000 

21 Property protection costs, maint. and repairs 7000 

22 Tax and insurance advances 2000 

Other Advances 

23 Appraisal/Broker's Price Opinion fees 0 

24 Inspections 0 

25 Other 0 

Gross balance recoverable by Purchaser 295500 

Cash Recoveries: 

26 Net liquidation proceeds (from HUD-1 settl stmt) 201000 

27 Hazard Insurance proceeds 0 

28 Mortgage Insurance proceeds 0 

29 T & I escrow account balances, if positive 0 

30 Other credits, if any (itemize) 0

 Total Cash Recovery 201000 

31 Gain/Loss Amount 94500 

Line item definitions located in SF Data Submission Handbook 

Module 1 – Whole Bank w/ Loss Share – P&A Horizon Bank 

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2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

Notes to Exhibits 2c (foreclosure) 

The data shown are for illustrative purpose. The figures will vary for actual 

restructurings. 

The covered loss is the difference between the gross balance recoverable by Purchaser 

and the total cash recovery. There are three methods of calculation for covered losses 

from foreclosures, depending upon the circumstances. They are shown below: 

a.	 If foreclosure occurred prior to the beginning of the Loss Share agreement, use 

Exhibit 2c(1). This version uses the book value of the REO as the starting point 

for the covered loss. 

b.	 If foreclosure occurred after the Loss Share agreement was in place, and if the 

loan was not restructured when the Loss Share agreement was in place, use 

Exhibit 2c(2). This version uses the unpaid balance of the loan as of the last 

payment as the starting point for the covered loss. 

c.	 If the loan was restructured when the Loss Share agreement was in place, and 

then foreclosure occurred, use Exhibit 2c(3). This version uses the Net Present 

Value (NPV) of the modified loan as the starting point for the covered loss. 

For Exhibit 2c(1), the gross balance recoverable by the purchaser is calculated as the sum 

of lines 13 – 25; it is shown after line 25. For Exhibit 2c(2), the gross balance recoverable 

by the purchaser is calculated as the sum of lines 14 – 25; it is shown after line 25. For 

Exhibit 2c(3), the gross balance recoverable by the purchaser is calculated as line 16 

minus line 17 plus lines 17 – 25; it is shown after line 25. 

For Exhibit 2c(1), the total cash recovery is calculated as the sum of lines 26 – 30; it is 

shown in line 31. For Exhibit 2c(2), the total cash recovery is calculated as the sum of 

lines 26 – 30; it is shown in line 31. For Exhibit 2c(3), the total cash recovery is 

calculated as the sum of lines 26 – 30; it is shown in line 31. 

Reasonable and customary third party attorney’s fees and expenses incurred by or on 

behalf of Assuming Institution in connection with any enforcement procedures, or 

otherwise with respect to such loan, are reported under Attorney’s fees. 

Assuming Institution’s (or Third Party Servicer’s) reasonable and customary out-ofpocket costs paid to either a third party or an affiliate (if affiliate is pre-approved by the 

FDIC) for foreclosure, property protection and maintenance costs, repairs, assessments, 

taxes, insurance and similar items are treated as part of the gross recoverable balance, to 

the extent they are not paid from funds in the borrower’s escrow account. Allowable 

costs are limited to amounts per Freddie Mac and Fannie Mae guidelines (as in effect 

from time to time), where applicable, provided that this limitation shall not apply to costs 

or expenses relating to environmental conditions. 

Do not include late fees, prepayment penalties, or any similar lender fees or charges by 

the Failed Bank or Assuming Institution to the loan account, any allocation of Assuming 

Institution’s servicing costs, or any allocations of Assuming Institution’s general and 

administrative (G&A) or other operating costs. 

If Exhibit 2c(3) is used, then no accrued interest may be included as a covered loss. The 

amount of accrued interest that may be included as a covered loss on Exhibit 2c(2)is 

limited to the lesser of: 

a.	 90 days 

b.	 The number of days that the loan is delinquent when the property was sold 

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c. The number of days between the resolution date and the date when the property 

was sold 

To calculate accrued interest, apply the note interest rate that would have been in effect if 

the loan were performing to the principal balance after application of the last payment 

made by the borrower. 

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Exhibit 2d(1)
 

CALCULATION OF LOSS FOR UNRELATED 2ND LIEN
 

CHARGE-OFF 

1 Shared-Loss Month: 20090531 

2 Loan # 58776 

3 Interest paid-to-date 20081201 

4 Charge-Off Date 20090531 

5 Note Interest rate 0.03500 

6 Occupancy Owner

 If owner occupied: 

7 Household current annual income 0 

8 Valuation Date 20090402 

9 Valuation Amount 230000 

Valuation Type (Interior/exterior appraisal, 

10 BPO, AVM, etc) BPO 

11 Balance of superior liens 210000 

Charge-Off Loss calculation 

12 Loan Principal balance 55000 

13 Charge-off amount (principal only) 55000

 Plus: 

14 Accrued interest, limited to 90 days 481 

15 Attorney's fees 0 

Foreclosure costs, including title search, 

16 filing fees, advertising, etc. 250 

Property protection costs, maint., repairs 

and any costs or expenses relating to 

17 environmental conditions 0 

18 Tax and insurance advances 0 

Other Advances 

19 Appraisal/Broker’s Price Opinion fees 75 

20 Inspections 0 

21 Other 0

 Gross balance recoverable by Purchaser 55806 

22 Foreclosure sale proceeds 0 

23 Hazard Insurance proceeds 0 

24 Mortgage Insurance proceeds 0 

25 Tax overage 0 

26 Short sale payoff 1500 

27 Other credits, if any (itemize) 0 

Total Cash Recovery 1500 

28 Loss Amount 54306 

1 Costs with respect to environmental remediation activities 

are limited to $200,000 unless prior consent of the FDIC 

Line item definitions located in SF Data Submission Handbook 

Module 1 – Whole Bank w/ Loss Share – P&A Horizon Bank 

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Exhibit 2d(2) 

Shared-Loss Month: [input month] 

Loan no.: [input loan no.) 

NOTE 

The calculation of recovery on a loan for which a Restructuring Loss has been paid will only apply if the 

loan is sold. 

EXAMPLE CALCULATION 

Restructuring Loss Information 

Loan principal balance before restructuring $ 200,000 A 

NPV, restructured loan 165,000 B 

Loss on restructured loan $ 35,000 A – B 

Times FDIC applicable loss share % (80%) 80% 

Loss share payment to purchaser $ 28,000 C 

Calculation – Recovery amount due to Receiver 

Loan sales price $ 190,000 

NPV of restructured loan at mod date 165,000 

Gain - step 1 25,000 D 

PLUS 

Loan UPB after restructuring (1) 200,000 

Loan UPB at liquidation date 192,000 

Gain - step 2 (principal collections after restructuring) 8,000 E 

Recovery amount 33,000 D + E 

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Times FDIC loss share % 80% 

Recovery due to FDIC $ 26,400 F 

Net loss share paid to purchaser (C – F) $ 1,600 

Proof Calculation (2) 

Loan principal balance $ 200,000 G 

Principal collections on loan 8,000 

Sales price for loan 190,000 

Total collections on loan 198,000 H 

Net loss on loan $ 2,000 G – H 

Times FDIC applicable loss share % (80%) 80% 

Loss share payment to purchaser $ 1,600 

(1) This example assumes that the FDIC loan modification program as shown in Exhibit 5 is applied and 

the loan restructuring does not result in a reduction in the loan principal balance due from the 

borrower. 

(2) This proof calculation is provided to illustrate the concept and the Assuming Institution is not required 

to provide this with its Recovery calculations. 

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Exhibit 3 

Portfolio Performance and Summary Schedule 

SHARED-LOSS LOANS 

PORTFOLIO PERFORMANCE AND SUMMARY SCHEDULE 

MONTH ENDED: [input report month] 

POOL SUMMARY

Loans at Sale Date 

#

xx 

$ 

xx 

Loans as of this month-end xx xx 

Percent of Total 

PORTFOLIO PERFORMANCE STATUS # $ # 

Current 

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30 – 59 days past due 

60 – 89 days past due 

90 – 119 days past due 

120 and over days past due 

In foreclosure 

ORE 

Total 

Memo Item: 

Loans in process of restructuring – total 

Loans in bankruptcy 

Loans in process of restructuring by delinquency status 

Current 

30 - 59 days past due 

60 - 89 days past due 

90 - 119 days past due 

120 and over days past due In foreclosure 

Total 

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List of Loans Paid Off During Month 

Principal 

Loan # Balance 

List of Loans Sold During Month 

Principal 

Loan # Balance 

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Exhibit 4 

Wire Transfer Instructions 

PURCHASER WIRING INSTRUCTIONS 

BANK RECEIVING WIRE 

9 DIGIT ABA ROUTING NUMBER 

ACCOUNT NUMBER 

NAME OF ACCOUNT 

ATTENTION TO WHOM 

PURPOSE OF WIRE 

FDIC RECEIVER WIRING INSTRUCTIONS 

BANK RECEIVING WIRE 

SHORT NAME 

ADDRESS OF BANK RECEIVING WIRE 

9 DIGIT ABA ROUTING NUMBER 

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ACCOUNT NUMBER 

NAME OF ACCOUNT 

ATTENTION TO WHOM 

PURPOSE OF WIRE 

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EXHIBIT 5
 

FDIC MORTGAGE LOAN MODIFICATION PROGRAM
 

Objective 

The objective of this FDIC Mortgage Loan Modification Program (“Program”) is to modify the terms of 

certain residential mortgage loans so as to improve affordability, increase the probability of performance, 

allow borrowers to remain in their homes and increase the value of the loans to the FDIC and assignees. The 

Program provides for the modification of Qualifying Loans (as defined below) by reducing the borrower’s 

monthly housing debt to income ratio (“DTI Ratio”) to no more than 31% at the time of the modification and 

eliminating adjustable interest rate and negative amortization features. 

Qualifying Mortgage Loans 

In order for a mortgage loan to be a Qualifying Loan it must meet all of the following criteria, which must be 

confirmed by the lender: 

 The collateral securing the mortgage loan is owner-occupied and the owner’s primary residence; and 

 The mortgagee has a first priority lien on the collateral; and 

 Either the borrower is at least 60 days delinquent or a default is reasonably foreseeable. 

Modification Process 

The lender shall undertake a review of its mortgage loan portfolio to identify Qualifying Loans. For each 

Qualifying Loan, the lender shall determine the net present value (“NPV”) of the modified loan and shall 

provide the methodology employed to determine the NPV, and a certification that the lender’s model 

assumptions are documented and validated through periodic independent reviews. A sound model validation 

process includes the lender’s modeling assumptions, consideration of industry standards and results and the 

lender’s own portfolio experiences, other available models or predictors, and any model validation 

requirements of the lender’s chartering authority. 

If the NPV of a Qualifying Loan will exceed the value of the foreclosed collateral upon disposition, then the 

Qualifying Loan shall be modified so as to reduce the borrower’s monthly DTI Ratio to no more than 31% at 

the time of the modification. To achieve this, the lender shall use a combination of interest rate reduction, 

term extension and principal forbearance, as necessary. 

The borrower’s monthly DTI Ratio shall be a percentage calculated by dividing borrower’s gross monthly 

housing payment (including principal, interest, taxes and insurance, any HOA dues, and PITIA) by the 

borrower’s monthly income. For the purpose of the foregoing calculation: 

(1) the borrower’s monthly income shall be defined as the borrower’s (along with any co-borrowers’) 

income amount before any payroll deductions and includes wages and salaries, overtime pay, commissions, 

fees, tips, bonuses, housing allowances, other compensation for personal services, Social Security payments, 

including Social Security received by adults on behalf of minors or by minors intended for their own support, 

and monthly income from annuities, insurance policies, retirement funds, pensions, disability or death 

benefits, unemployment benefits, rental income and other income. All income information must be 

documented and verified. If the borrower receives public assistance or collects unemployment, the 

Assuming Institution must determine whether the public assistance or unemployment income will continue 

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for at least nine (9) months. 

(2) the borrower’s monthly housing payment shall be the amount required to pay monthly principal 

and interest plus one-twelfth of the then current annual amount required to pay real property taxes and 

homeowner’s insurance with respect to the collateral. 

In order to calculate the monthly principal payment, the lender shall capitalize to the outstanding principal 

balance of the Qualifying Loan the amount of all delinquent interest, delinquent taxes, past due insurance 

premiums, third party fees and (without duplication) escrow advances (such amount, the “Capitalized 

Balance”). 

In order to achieve the goal of reducing the DTI Ratio to 31%, the lender shall take the following steps in the 

following order of priority with respect to each Qualifying Loan: 

1.	 Reduce the interest rate to the then current Freddie Mac Survey Rate for 30-year fixed rate 

mortgage loans, and adjust the term to 30 years. 

2.	 If the DTI Ratio is still in excess of 31%, reduce the interest rate further, but no lower than 3%, 

until the DTI ratio of 31% is achieved, for a period of five (5) years. 

3.	 If the DTI Ratio is still in excess of 31% after adjusting the interest rate to 3%, extend the 

remaining term of the loan by 10 years. 

4.	 If the DTI Ratio is still in excess of 31%, calculate a new monthly payment (the “Adjusted 

Payment Amount”) that will result in the borrower’s monthly DTI Ratio not exceeding 31%. 

After calculating the Adjusted Payment Amount, the lender shall bifurcate the Capitalized 

Balance into two portions – the amortizing portion and the non-amortizing portion. The 

amortizing portion of the Capitalized Balance shall be the mortgage amount that will fully 

amortize over a 40-year term at an annual interest rate of 3% and monthly payments equal to the 

Adjusted Payment Amount. The non-amortizing portion of the Capitalized Balance shall be the 

difference between the Capitalized Balance and the amortizing portion of the Capitalized 

Balance. If the amortizing portion of the Capitalized Balance is less than 75% of the current 

estimated value of the collateral, then the lender may choose not to restructure the loan. If the 

lender chooses to restructure the loan, then the lender shall forbear on collecting the nonamortizing portion of the Capitalized Balance, and such amount shall be due and payable only 

upon the earlier of (i) maturity of the modified loan, (ii) a sale of the property or (iii) a pay-off or 

refinancing of the loan. No interest shall be charged on the non-amortizing portion of the 

Capitalized Balance, but repayment shall be secured by a first lien on the collateral. 

At the end of the five (5) year period in paragraph 2, above, the interest rate on the modified loan shall adjust 

to the Freddie Mac Survey Rate as of the date of the loan modification, but subject to an annual adjustment 

cap of one percent (1%) per year. At that time, the monthly amount due by the borrower will also adjust to 

amortize fully the remaining Capitalized Balance (or, in any case in which the Capitalized Balance was 

bifurcated, the amortizing portion thereof) over the remaining term of the modified loan. 

Special Note: 

The net present value calculation used to determine whether a loan should be modified based on the 

modification process above is distinct and different from the net present value calculation used to determine 

Module 1 – Whole Bank w/ Loss Share – P&A Horizon Bank 

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the covered loss if the loan is modified. Please refer only to the net present value calculation described in 

this exhibit for the modification process, with its separate assumptions, when determining whether to provide 

a modification to a borrower. Separate assumptions may include, without limitation, Assuming Institution’s 

determination of a probability of default without modification, a probability of default with modification, 

home price forecasts, prepayment speeds, and event timing. These assumptions are applied to different 

projected cash flows over the term of the loan, such as the projected cash flow of the loan performing or 

defaulting without modification and the projected cash flow of the loan performing or defaulting with 

modification. 

By contrast, the net present value for determining the covered loss is based on a 10 year period. While the 

assumptions in the net present value calculation used in the modification process may change, the net present 

value calculation for determining the covered loss remains constant. 

Related Junior Lien Mortgage Loans 

In cases where the lender holds a junior lien mortgage loan that is collateralized by the same property that 

collateralizes a Qualifying Loan that is modified as described above, the junior lien mortgage loan shall also 

be modified to enhance overall affordability to the borrower. At a minimum, the lender shall reduce the 

interest rate on the junior lien mortgage loan to no more than 2% per annum. Further modifications may be 

made at the lender’s discretion as needed to support affordability and performance of the modified first lien 

Qualifying Loan. 

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EXHIBIT 4.15B 

COMMERCIAL SHARED-LOSS AGREEMENT 

This agreement for reimbursement of loss sharing expenses on certain loans and other assets (the 

“Commercial Shared-Loss Agreement”) shall apply when the Assuming Institution purchases Shared-Loss 

Assets as that term is defined herein. The terms hereof shall modify and supplement, as necessary, the terms 

of the Purchase and Assumption Agreement to which this Commercial Shared-Loss Agreement is attached as 

Exhibit 4.15B and incorporated therein. To the extent any inconsistencies may arise between the terms of the 

Purchase and Assumption Agreement and this Commercial Shared-Loss Agreement with respect to the 

subject matter of this Commercial Shared-Loss Agreement, the terms of this Commercial Shared-Loss 

Agreement shall control. References in this Commercial Shared-Loss Agreement to a particular Section 

shall be deemed to refer to a Section in this Commercial Shared-Loss Agreement unless the context indicates 

that a Section of the Purchase and Assumption Agreement is intended. 

ARTICLE I -- DEFINITIONS 

Capitalized terms used in this Commercial Shared-Loss Agreement that are not defined in this 

Commercial Shared-Loss Agreement are defined in the Purchase and Assumption Agreement In addition to 

the terms defined above, defined below are certain additional terms relating to loss-sharing, as used in this 

Commercial Shared-Loss Agreement. 

“AAA” means the American Arbitration Association as provided in Section 2.1(f)(iii) of this 

Commercial Shared-Loss Agreement. 

“Accrued Interest” means, with respect to any Shared-Loss Loan, Permitted Advance or 

Shared-Loss Loan Commitment Advance at any time, the amount of earned and unpaid interest, taxes, credit 

life and/or disability insurance premiums (if any) payable by the Obligor accrued on or with respect to such 

Shared-Loss Loan, Permitted Advance or Shared-Loss Loan Commitment Advance, all as reflected on the 

Accounting Records of the Failed Bank or the Assuming Institution (as applicable); provided, that Accrued 

Interest shall not include any amount that accrues on or with respect to any Shared-Loss Loan, Permitted 

Advance or Shared-Loss Loan Commitment Advance after that Asset has been placed on non-accrual or 

nonperforming status by either the Failed Bank or the Assuming Institution (as applicable). 

“Additional ORE” means Shared-Loss Loans that become Other Real Estate after Bank 

Closing Date. 

“Affiliate” shall have the meaning set forth in the Purchase and Assumption Agreement; 

provided, that, for purposes of this Commercial Shared-Loss Agreement, no Third Party Servicer shall be 

deemed to be an Affiliate of the Assuming Institution. 

“Aggregate Net Charge-Offs” means the total amount of Charge-Offs, less the total amount 

of Recoveries, for all Shared-Loss Quarters and all Recovery Quarters. 

“Applicable Anniversary of the Commencement Date” means the fifth (5th) anniversary of 

the Commencement Date. 

“Applicable Percentage” means, the percentage of shared-loss the Receiver will incur with 

respect to this Commercial Shared-Loss Agreement, which is eighty percent (80%) for the Commercial 

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Tranche 1 Amount; zero percent (0%) for the Commercial Tranche 2 Amount; and eighty percent (80%) for 

the Commercial Tranche 3 Amount. 

“Calendar Quarter” means a quarterly period (a) for the first such period, beginning on the 

Commencement Date and ending on the last calendar day of either March, June, September or December, 

whichever is the first to occur after the Commencement Date, and (b) for quarterly periods thereafter, 

beginning on the first calendar day of the calendar month immediately after the month that ended the prior 

period and ending on the last calendar day of each successive three-calendar-month period thereafter (i.e., 

each March, June, September and December, starting in the applicable order depending on the ending date of 

first such period) of any year. 

“Capitalized Expenditures” means those expenditures that (i) would be capitalized under 

generally accepted accounting principles, and (ii) are incurred with respect to Shared-Loss Loans, Other Real 

Estate, or Additional ORE. Capitalized Expenditures shall not include expenses related to environmental 

conditions including, but not limited to, remediation, storage or disposal of any hazardous or toxic 

substances or any pollutant or contaminant. 

“Charge-Offs” means, with respect to any Shared-Loss Assets for any period, an amount 

equal to the aggregate amount of loans or portions of loans classified as “Loss” under the Examination 

Criteria, including 

(a) charge-offs of 

(i) the principal amount of such assets net of unearned interest (including write-downs 

associated with Other Real Estate, Additional ORE, or loan modification(s)); and 

(ii) Accrued Interest; and 

(iii) Capitalized Expenditures; plus 

(b) Pre-Charge-Off Expenses incurred on the respective Shared-Loss Loans, all as effected by 

the Assuming Institution during such period and reflected on the Accounting Records of the Assuming 

Institution; provided, that: 

(i) the aggregate amount of Accrued Interest (including any reversals thereof) for the 

period after Bank Closing that shall be included in determining the amount of Charge-Offs for any SharedLoss Loan shall not exceed ninety (90) days Accrued Interest; and 

(ii) no Charge-Off shall be taken with respect to any anticipated expenditure by the 

Assuming Institution until such expenditure is actually incurred; and 

(iii) any financial statement adjustments made in connection with the purchase of any 

Assets pursuant to this Purchase and Assumption Agreement or any future purchase, merger, consolidation 

or other acquisition of the Assuming Institution shall not constitute “Charge-Offs;” and 

(c) except for Portfolio Sales, the sale or other disposition of Other Real Estate, or Additional 

ORE to a Person other than an Affiliate of the Assuming Institution conducted in a commercially reasonable 

and prudent manner, or any other sales or dispositions consented to by the Receiver, losses incurred on the 

sale or other disposition of Shared-Loss Assets or Shared-Loss Securities to any Person shall not constitute 

Charge-Offs. 

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

“Commercial Intrinsic Loss Estimate” means total losses under this Commercial SharedLoss Agreement in the amount of forty-two million dollars ($42,000,000.00). 

“Commercial Tranche 1 Amount” means total positive Shared Loss Amounts under this 

Commercial Shared-Loss Agreement up to and including thirty-two million two hundred ninety-eight 

thousand nine hundred twenty dollars and ninety-nine cents ($32,298,920.99). 

“Commercial Tranche 2 Amount” means total positive Shared Loss Amounts under this 

Commercial Shared-Loss Agreement in excess of the Commercial Tranche 1 Amount up to and including 

forty-two million eight hundred thirty thousand three hundred sixty-nine dollars ($42,830,369.00). 

“Commercial Tranche 3 Amount” means total positive Shared Loss Amounts under this 

Commercial Shared-Loss Agreement of in excess of forty-two million eight hundred thirty thousand three 

hundred sixty-nine dollars ($42,830,369.00). 

“Consumer Loans” means loans to individuals for household, family and other personal 

expenditures, not secured by real estate, including but not limited to loans for (i) purchase of private 

automobiles, pickup trucks, household appliances, furniture, trailers and boats; (ii)repairs or improvements to 

the borrower’s residence not secured by real estate; (iii) educational expenses, including student loans, 

whether or not guaranteed by the United States or any state; (iv) medical expenses; (v) taxes; (v) vacations; 

(vi) personal (non business) debt consolidation; (vii) purchases of mobile homes not combined with real 

property to be used as a residence; and (viii) other personal expenditures. Consumer Loans can be 

installment loans, demand loans, single payment time loans, regardless of size or maturity, and regardless of 

whether the loans are made by the consumer loan department or by any other department within the Failed 

Bank. Consumer Loans also include retail installment sales paper purchased by the Failed Bank from 

merchants or dealers, finance companies and others, and extensions of credit pursuant to a credit card plan or 

debit card plan. 

“Environmental Assessment” means an assessment of the presence, storage or release of 

any hazardous or toxic substance, pollutant or contaminant with respect to the collateral securing a Sharedloss Loan that has been fully or partially charged off. 

“Examination Criteria” means the loan classification criteria employed by, or any 

applicable regulations of, the Assuming Institution’s Chartering Authority at the time such action is taken, as 

such criteria may be amended from time to time. 

“Failed Bank Charge-Offs/Write-Downs” means, with respect to any Asset, an amount 

equal to the aggregate amount of reversals or charge-offs of Accrued Interest and charge-offs and writedowns of principal effected by the Failed Bank with respect to that Asset as reflected on the Accounting 

Records of the Failed Bank. 

“FDIC Party” has the meaning provided in Section 2.1(f)(ii) of this Commercial SharedLoss Agreement. 

“Holding Company” means any company owning Shares of the Assuming Institution that is 

a holding company pursuant to the Bank Holding Company Act 0f 1956, 12 U.S.C. 1841 et seq. or the Home 

Owner’s Loan Act, 12 U.S.C. 1461 et seq. 

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“Net Charge-Offs” means, with respect to any period, an amount equal to the aggregate 

amount of Charge-Offs for such period less the amount of Recoveries for such period. 

“Net Loss Amount” means the sum of all Aggregate Net Charge-Offs under this Commercial 

Shared-Loss Agreement and the Cumulative Loss Amounts under the Single Family Shared-Loss 

Agreement. 

“Neutral Member” has the meaning provided in Section 2.1(f)(ii) of this Commercial 

Shared-Loss Agreement. 

“New Shared-Loss Loans” means loans that would otherwise be subject to loss sharing 

under this Commercial Shared-Loss Agreement that were originated after the Bid Valuation Date and before 

Bank Closing. 

“Notice of Dispute” has the meaning provided in Section 2.1(f)(iii) of this Commercial 

Shared-Loss Agreement. 

“Other Real Estate” means all of the following (including any of the following fully or 

partially charged off the books and records of the Failed Bank or the Assuming Institution) that (i) are owned 

by the Failed Bank as of Bank Closing and are purchased pursuant to the Purchase and Assumption 

Agreement or (ii) have arisen subsequent to Bank Closing from the collection or settlement by the Assuming 

Institution of a Shared-Loss Loan: 

(A) all interests in real estate (other than Bank Premises and Fixtures), including but not 

limited to mineral rights, leasehold rights, condominium and cooperative interests, air rights and 

development rights; and 

(B) all other assets (whether real or personal property) acquired by foreclosure or in full or 

partial satisfaction of judgments or indebtedness. 

“OTTI Adjustment” means any other than temporary impairment of the Shared-Loss 

Securities, determined pursuant to FAS 115, expressed as a positive number, or reversals of other than 

temporary impairment, expressed as a negative number (for the avoidance of doubt, normal and customary 

unrealized mark-to-market changes by reason of the application of fair value accounting do not qualify for 

loss sharing payments). 

“OTTI Loss” means any other than temporary impairment of the Shared-Loss Securities, 

determined pursuant to FAS 115, expressed as a positive number (for the avoidance of doubt, normal and 

customary unrealized mark-to-market changes by reason of the application of fair value accounting do not 

qualify for loss sharing payments). 

“Permitted Advance” means an advance of funds by the Assuming Institution with respect 

to a Shared-Loss Loan, or the making of a legally binding commitment by the Assuming Institution to 

advance funds with respect to a Shared-Loss Loan, that 

(i) in the case of such an advance, is actually made, and, in the case of such a commitment, is 

made and all of the proceeds thereof actually advanced, within one (1) year after the Commencement Date; 

and 

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 (ii) does not cause the sum of 

(A) the book value of such Shared-Loss Loan as reflected on the Accounting Records 

of the Assuming Institution after any such advance has been made by the Assuming Institution; plus

 (B) the unfunded amount of any such commitment made by the Assuming Institution 

related thereto, to exceed 110% of the Book Value of such Shared-Loss Loan; and 

(iii) is not made with respect to a Shared-Loss Loan with respect to which 

(A) there exists a related Shared-Loss Loan Commitment; or 

(B) the Assuming Institution has taken a Charge-Off; and 

(iv) is made in good faith, is supported at the time it is made by documentation in the Credit 

Files and conforms to and is in accordance with the applicable requirements set forth in Article III of this 

Commercial Shared-Loss Agreement and with the then effective written internal credit policy guidelines of 

the Assuming Institution; provided, that the limitations in subparagraphs (i), (ii) and (iii) of this definition 

shall not apply to any such action (other than to an advance or commitment related to the remediation, 

storage or final disposal of any hazardous or toxic substance, pollutant or contaminant) that is taken by 

Assuming Institution in its reasonable discretion to preserve or secure the value of the collateral for such 

Shared-Loss Loan. 

“Permitted Amendment” means, with respect to any Shared-Loss Loan Commitment or 

Shared-Loss Loan, any amendment, modification, renewal or extension thereof, or any waiver of any term, 

right, or remedy thereunder, made by the Assuming Institution in good faith and otherwise in accordance 

with the applicable requirements set forth in Article III of this Commercial Shared-Loss Agreement and the 

then effective written internal credit policy guidelines of the Assuming Institution; provided, that: 

(i) with respect to a Shared-Loss Loan Commitment or a Shared-Loss Loan that is not a 

revolving line of credit, no such amendment, modification, renewal, extension, or waiver, except as allowed 

under the definition of Permitted Advance, shall operate to increase the amount of principal (A) then 

remaining available to be advanced by the Assuming Institution under the Shared-Loss Loan Commitment or 

(B) then outstanding under the Shared-Loss Loan; 

(ii) with respect to a Shared-Loss Loan Commitment or a Shared-Loss Loan that is a 

revolving line of credit, no such amendment, modification, renewal, extension, or waiver, except as allowed 

under the definition of Permitted Advance, shall operate to increase the maximum amount of principal 

authorized as of Bank Closing to be outstanding at any one time under the underlying revolving line of credit 

relationship with the debtor (regardless of the extent to which such revolving line of credit may have been 

funded as of Bank Closing or may subsequently have been funded and/or repaid); and 

(iii) no such amendment, modification, renewal, extension or waiver shall extend the term of 

such Shared-Loss Loan Commitment or Shared-Loss Loan beyond the end of the final Shared-Loss Quarter 

unless the term of such Shared-Loss Loan Commitment or Shared-Loss Loan as existed on Bank Closing 

was beyond the end of the final Shared-Loss Quarter, in which event no such amendment, modification, 

renewal, extension or waiver shall extend such term beyond the term as existed as of Bank Closing. 

“Pre-Charge-Off Expenses” means those expenses incurred in the usual and prudent 

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management of a Shared-Loss Loan that would qualify as a Reimbursable Expense or Recovery Expense if 

incurred after a Charge-Off of the related Shared-Loss Asset had occurred. 

“Quarterly Certificate” has the meaning provided in Section 2.1(a)(i) of this Commercial 

Shared-Loss Agreement. 

“Recoveries” shall mean the following: 

(i) Generally. 

(A) In addition to any sums to be applied as Recoveries pursuant to subparagraph (ii) below, 

“Recoveries” means, with respect to any period, the sum of (without duplication): 

(1) the amount of collections during such period by the Assuming Institution on Charge-Offs 

of Shared-Loss Assets effected by the Assuming Institution prior to the end of the final Shared-Loss Quarter; 

plus 

(2) the amount of collections during such period by the Assuming Institution on Failed Bank 

Charge-Offs/Write-Downs; plus 

(3) the amount of gain on any sale or other disposition during such period by the Assuming 

Institution of Shared Loss Loans, Other Real Estate, or Additional ORE (provided, that the amount of any 

such gain included in Recoveries shall not exceed the aggregate amount of the related Failed Bank ChargeOffs/Write-Downs and Charge-Offs taken and any related Reimbursable Expenses and Recovery Expenses); 

plus 

(4) the amount of collections during such period by the Assuming Institution of any 

Reimbursable Expenses or Recovery Expenses; plus 

(5) the amount of any fee or other consideration received by the Assuming Institution during 

or prior to such period in connection with any amendment, modification, renewal, extension, refinance, 

restructure, commitment or other similar action taken by the Assuming Institution with respect to a SharedLoss Asset with respect to which there exists a Failed Bank Charge-Off/Write-Down or a Shared-Loss Loan 

as to which a Charge-Off has been effected by the Assuming Institution during or prior to such period 

(provided, that the amount of any such fee or other consideration included in Recoveries shall not exceed the 

aggregate amount of the related Failed Bank Charge-Offs/Write-Downs and Charge-Offs taken and any 

related Reimbursable Expenses and Recovery Expenses). 

(B) Order of Application. For the purpose of determining the amounts to be applied as 

Recoveries pursuant to subparagraph (A) above, the Assuming Institution shall apply amounts received on 

the Assets that are not otherwise applied to reduce the book value of principal of a Shared-Loss Loan (or, in 

the case of Other Real Estate, Additional ORE, and Capitalized Expenditures, that are not otherwise applied 

to reduce the book value thereof) in the following order: first to Charge-Offs and Failed Bank ChargeOffs/Write Downs; then to Reimbursable Expenses and Recovery Expenses; then to interest income; and 

then to other expenses incurred by the Assuming Institution. 

(ii) Interest Income as Recoveries. If there occurs an amendment, modification, renewal, 

extension, refinance, restructure, commitment, sale or other similar action with respect to a Shared-Loss 

Loan as to which there exists a Failed Bank Charge-Off/Write Down or as to which a Charge-Off has been 

effected by the Assuming Institution during or prior to such period, and if, as a result of such occurrence, the 

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Assuming Institution recognizes any interest income for financial accounting purposes on that Shared-Loss 

Loan, then “Recoveries” shall also include the portion of the total amount of any such interest income 

recognized by the Assuming Institution which is derived by multiplying: 

(A) the total amount of any such interest income recognized by the Assuming Institution during such 

period with respect to that Shared-Loss Loan as described above, by 

(B) a fraction, the numerator of which is the aggregate principal amount (excluding reversals or 

charge-offs of Accrued Interest) of all such Failed Bank Charge-Offs/Write-Downs and Charge-Offs 

effected by the Assuming Institution with respect to that Shared-Loss Loan plus the principal amount 

of that Shared-Loss Loan that has not yet been charged-off but has been placed on nonaccrual status, 

all of which occurred at any time prior to or during the period in which the interest income referred to 

in subparagraph (II)(A) immediately above was recognized, and the denominator of which is the total 

amount of principal indebtedness (including all such prior Failed Bank Charge-Offs/Write-Downs 

and Charge-Offs as described above) due from the Obligor on that Shared-Loss Loan as of the end of 

such period; 

provided, however, that the amount of any interest income included as Recoveries for a particular SharedLoss Loan shall not exceed the aggregate amount of (x) Failed Bank Charge-Offs/Write-Downs, (y) ChargeOffs effected by the Assuming Institution during or prior to the period in which the amount of Recoveries is 

being determined, plus (z) any Reimbursable Expenses and Recovery Expenses paid to the Assuming 

Institution pursuant to this Commercial Shared-Loss Agreement during or prior to the period in which the 

amount of Recoveries is being determined, all with respect to that particular Shared-Loss Loan; and, 

provided, further, that any collections on any such Shared-Loss Loan that are not applied to reduce book 

value of principal or recognized as interest income shall be applied pursuant to subparagraph (i) above. 

(iii) Exceptions to Recoveries. Notwithstanding subparagraphs (i) and (ii) above, the term 

“Recoveries” shall not include: 

(A) any amounts paid to the Assuming Institution by the Receiver pursuant to Section 2.1 of this 

Commercial Shared-Loss Agreement; 

(B) amounts received with respect to Charge-Offs effected by the Assuming Institution after the final 

Shared-Loss Quarter; 

(C) after the final Shared-Loss Quarter, income received by the Assuming Institution from the 

operation of, and any gains recognized by the Assuming Institution on the disposition of, Other Real Estate, 

or Additional ORE (such income and gains being hereinafter together referred to as “ORE Income”), except 

to the extent that aggregate ORE Income exceeds the aggregate expenses paid to third parties by or on behalf 

of the Assuming Institution after the final Shared-Loss Quarter to manage, operate and maintain Other Real 

Estate, or Additional ORE (such expenses being hereinafter referred to as “ORE Expenses”). In determining 

the extent aggregate ORE Income exceeds aggregate ORE Expenses for any Recovery Quarter, the 

Assuming Institution will subtract 

(1) ORE Expenses paid to third parties during such Recovery Quarter (provided, that, in the 

case of the final Recovery Quarter only, the Assuming Institution will subtract ORE Expenses paid to third 

parties from the beginning of the final Recovery Quarter up to the date the Assuming Institution is required 

to deliver the final Quarterly Certificate pursuant to this Commercial Shared-Loss Agreement), from 

(2) ORE Income received during such Recovery Quarter, to calculate net ORE income (“Net 

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ORE Income”) for that Recovery Quarter. If the amount of Net ORE Income so calculated for a Recovery 

Quarter is positive, such amount shall be reported as Recoveries on the Quarterly Certificate for such 

Recovery Quarter. 

If the amount of Net ORE Income so calculated for a Recovery Quarter is negative (“Net ORE Loss 

Carryforward”), such amount shall be added to any ORE Expenses paid to third parties in the next 

succeeding Recovery Quarter, which sum shall then be subtracted from ORE Income for that next 

succeeding Recovery Quarter, for the purpose of determining the amount of Net ORE Income (or, if 

applicable, Net ORE Loss Carryforward) for that next succeeding Recovery Quarter. If, as of the end of the 

final Recovery Quarter, a Net ORE Loss Carryforward exists, then the amount of the Net ORE Loss 

Carryforward that does not exceed the aggregate amount of Net ORE Income reported as Recoveries on 

Quarterly Certificates for all Recovery Quarters may be included as a Recovery Expense on the Quarterly 

Certificate for the final Recovery Quarter. 

“Recovery Amount” has the meaning provided in Section 2.1(b)(ii) of this Commercial 

Shared-Loss Agreement. 

“Recovery Expenses” means, for any Recovery Quarter, the amount of actual, reasonable 

and necessary out-of-pocket expenses (other than Capitalized Expenditures) paid to third parties (other than 

Affiliates of the Assuming Institution) by or on behalf of the Assuming Institution, as limited by Sections 

3.2(c) and (d) of Article III to this Commercial Shared-Loss Agreement, to recover amounts owed with 

respect to: 

(i) any Shared-Loss Asset as to which a Charge-Off was effected prior to the end of the final 

Shared-Loss Quarter (provided that such amounts were incurred no earlier than the date the first Charge-Off 

on such Shared-Loss Asset could have been reflected on the Accounting Records of the Assuming 

Institution); and 

(ii) Failed Bank Charge-Offs/Write-Downs (including, in each case, all costs and expenses 

related to an Environmental Assessment and any other costs or expenses related to any environmental 

conditions with respect to the Shared-Loss Assets (it being understood that any remediation expenses for any 

such pollutant or contaminant are not recoverable if in excess of $200,000 per Shared-Loss Asset, without 

the Assuming Institution having obtained the prior consent of the Receiver for such expenses). 

Provided, that, so long as income with respect to a Shared-Loss Loan is being prorated 

pursuant to the arithmetical formula in subsection (ii) of the definition of “Recoveries”, the term “Recovery 

Expenses” shall not include that portion of any such expenses paid during such Recovery Quarter to recover 

any amounts owed on that Shared-Loss Loan that is derived by: 

subtracting (1) the product derived by multiplying: 

(A) the total amount of any such expenses paid by or on behalf of the Assuming Institution 

during such Recovery Quarter with respect to that Shared-Loss Loan, by 

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(B) a fraction, the numerator of which is the aggregate principal amount (excluding reversals 

or charge-offs of Accrued Interest) of all such Failed Bank Charge-Offs/Write-Downs and 

Charge-Offs effected by the Assuming Institution with respect to that Shared-Loss Loan plus 

the principal amount of that Shared-Loss Loan that has not yet been charged-off but has been 

placed on nonaccrual status, all of which occurred at any time prior to or during the period in 

which the interest income referred to in subparagraph (ii)(A) of the definition of “Recoveries” 

was recognized, and the denominator of which is the total amount of principal indebtedness 

(including all such prior Failed Bank Charge-Offs/Write-Downs and Charge-Offs as 

described above) due from the Obligor on that Shared-Loss Loan as of the end of such period; 

from (2) the total amount of any such expenses paid during that Recovery Quarter with respect to that 

Shared-Loss Loan. 

“Recovery Quarter” has the meaning provided in Section 2.1(a)(ii) of this Commercial 

Shared-Loss Agreement. 

“Reimbursable Expenses” means, for any Shared-Loss Quarter, the amount of actual, 

reasonable and necessary out-of-pocket expenses (other than Capitalized Expenditures), paid to third parties 

(other than Affiliates of the Assuming Institution) by or on behalf of the Assuming Institution, as limited by 

Sections 3.2(c) and (d) of Article III of this Commercial Shared-Loss Agreement, to: 

(i) recover amounts owed with respect to any Shared-Loss Asset as to which a Charge-Off has 

been effected prior to the end of the final Shared-Loss Quarter (provided that such amounts were incurred no 

earlier than the date the first Charge-Off on such Shared-Loss Asset could have been reflected on the 

Accounting Records of the Assuming Institution) and recover amounts owed with respect to Failed Bank 

Charge-Offs/Write-Downs (including, in each case, all costs and expenses related to an Environmental 

Assessment and any other costs or expenses related to any environmental conditions with respect to the 

Shared-Loss Assets (it being understood that any such remediation expenses for any such pollutant or 

contaminant are not recoverable if in excess of $200,000 per Shared-Loss Asset, without the Assuming 

Institution having obtained the prior consent of the Receiver for such expenses); provided, that, so long as 

income with respect to a Shared-Loss Loan is being pro-rated pursuant to the arithmetical formula in 

subsection (II) of the definition of “Recoveries”, the term “Reimbursable Expenses” shall not include that 

portion of any such expenses paid during such Shared-Loss Quarter to recover any amounts owed on that 

Shared-Loss Loan that is derived by: 

subtracting (1) the product derived by multiplying: 

(A) the total amount of any such expenses paid by or on behalf of the Assuming Institution 

during such Shared-Loss Quarter with respect to that Shared-Loss Loan, by 

(B) a fraction, the numerator of which is the aggregate principal amount (excluding reversals 

or charge-offs of Accrued Interest) of all such Failed Bank Charge-Offs/Write-Downs and 

Charge-Offs effected by the Assuming Institution with respect to that Shared-Loss Loan plus 

the principal amount of that Shared-Loss Loan that has not yet been charged-off but has been 

placed on nonaccrual status, all of which occurred at any time prior to or during the period in 

which the interest income referred to in subparagraph (II)(A) of the definition of “Recoveries” 

was recognized, and the denominator of which is the total amount of principal indebtedness 

(including all such prior Failed Bank Charge-Offs/Write-Downs and Charge-Offs as 

described above) due from the Obligor on that Shared-Loss Loan as of the end of such period; 

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from (2) the total amount of any such expenses paid during that Shared-Loss Quarter with respect to 

that Shared-Loss Loan; 

(ii) manage, operate or maintain Other Real Estate, or Additional ORE less the amount of any 

income received by the Assuming Institution during such Shared-Loss Quarter with respect to such Other 

Real Estate, or Additional ORE (which resulting amount under this clause (ii) may be negative); 

(iii) litigation expenses with respect to Shared-Loss Assets. 

“Review Board” has the meaning provided in Section 2.1(f)(i) of this Commercial SharedLoss Agreement. 

“Shared-Loss Amount” has the meaning provided in Section 2.1(b)(i) of this Commercial 

Shared-Loss Agreement. 

“Shared-Loss Asset Repurchase Price” means, with respect to any Shared-Loss Asset, the 

principal amount thereof plus any other fees or penalties due from an Obligor (including, subject to the 

limitations discussed below, the amount of any Accrued Interest) stated on the Accounting Records of the 

Assuming Institution, as of the date as of which the Shared-Loss Asset Repurchase Price is being determined 

(regardless, in the case of a Shared-Loss Loan, of the Legal Balance thereof) plus all Reimbursable Expenses 

and Recovery Expenses incurred up to and through the date of consummation of purchase of such SharedLoss Asset; provided, that (i) in the case of a Shared-Loss Loan there shall be excluded from such amount 

the amount of any Accrued Interest accrued on or with respect to such Shared-Loss Loan prior to the ninety 

(90)-day period ending on the day prior to the purchase date determined pursuant to Sections 2.1(e)(i) or 

2.1(e)(iii) of this Commercial Shared-Loss Agreement, except to the extent such Accrued Interest was 

included in the Book Value of such Shared-Loss Loan, and (ii) any collections on a Shared-Loss Loan 

received by the Assuming Institution after the purchase date applicable to such Shared-Loss Loan shall be 

applied (without duplication) to reduce the Shared-Loss Asset Repurchase Price of such Shared-Loss Loan 

on a dollar-for-dollar basis. For purposes of determining the amount of unpaid interest which accrued during 

a given period with respect to a variable-rate Shared-Loss Loan, all collections of interest shall be deemed to 

be applied to unpaid interest in the chronological order in which such interest accrued. 

“Shared-Loss Assets” means Shared-Loss Loans, Other Real Estate purchased by the 

Assuming Institution, Additional ORE, Shared-Loss Subsidiaries, and Capitalized Expenditures, but does not 

include Shared-Loss Securities. 

“Shared-Loss Loan Commitment” means: 

(i) any Commitment to make a further extension of credit or to make a further advance with respect 

to an existing Shared-Loss Loan; and 

(ii) any Shared-Loss Loan Commitment (described in subparagraph (i) immediately preceding) with 

respect to which the Assuming Institution has made a Permitted Amendment. 

“Shared-Loss Loan Commitment Advance” means an advance pursuant to a Shared-Loss 

Loan Commitment with respect to which the Assuming Institution has not made a Permitted Advance. 

“Shared-Loss Loans” means: 

(i) (A) Loans purchased by the Assuming Institution pursuant to the Purchase and 

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Assumption Agreement set forth on Schedule 4.15(b) to the Purchase and Assumption Agreement; 

(B) New Shared-Loss Loans purchased by the Assuming Institution pursuant to the 

Purchase and Assumption Agreement; 

(C) Permitted Advances; 

(D) Shared-Loss Loan Commitment Advances, if any; provided, that Shared-Loss 

Loans shall not include Loans, New Shared-Loss Loans, Permitted Advances and Shared-Loss Loan 

Commitment Advances with respect to which an Acquired Subsidiary, or a constituent Subsidiary thereof, is 

an Obligor; 

(E) but does not include Consumer Loans; and 

(ii) any Shared-Loss Loans (described in subparagraph (i) immediately preceding) with 

respect to which the Assuming Institution has made a Permitted Amendment. 

“Shared-Loss Securities” means those securities and other assets listed on Exhibit 4.15(C). 

“Shared-Loss Subsidiaries” means those subsidiaries listed on Exhibit 4.15D. 

“Shared-Loss Quarter” has the meaning provided in Section 2.1(a)(i) of this Commercial 

Shared-Loss Agreement. 

“Shares” means common stock and any instrument which by its terms is currently convertible 

into common stock, or which may become convertible into common stock. 

“SLS Net Realized Gain” means the net realized gain on the sale of a Shared Loss Security 

determined pursuant to FAS 115, expressed as a negative number on the Quarterly Certificate. 

“SLS Net Realized Loss” means the net realized loss on the sale of a Shared Loss Security 

determined pursuant to FAS 115, expressed as a positive number on the Quarterly Certificate. 

“Termination Date” means the eighth (8th) anniversary of the Commencement Date. 

“Total Intrinsic Loss Estimate” means the sum of the Commercial Intrinsic Loss Estimate 

in this Commercial Shared-Loss Agreement and the SF1-4 Intrinsic Loss Estimate in the Single Family 

Shared-Loss Agreement, expressed in dollars. 

“Third Party Servicer” means any servicer appointed from time to time by the Assuming 

Institution or any Affiliate of the Assuming Institution to service the Shared-Loss Assets on behalf of the 

Assuming Institution, the identity of which shall be given to the Receiver prior to or concurrent with the 

appointment thereof. 

ARTICLE II -- SHARED-LOSS ARRANGEMENT 

2.1 Shared-Loss Arrangement. 

(a) Quarterly Certificates. (i) Not later than thirty (30) days after the end of each 

Calendar Quarter from and including the initial Calendar Quarter to and including the Calendar Quarter in 

which the Applicable Anniversary of the Commencement Date falls (each of such Calendar Quarters being 

referred to herein as a “Shared-Loss Quarter”), the Assuming Institution shall deliver to the Receiver a 

certificate, signed by the Assuming Institution’s chief executive officer and its chief financial officer, setting 

forth in such form and detail as the Receiver may specify (a “Quarterly Certificate”)(an example of a 

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Quarterly Certificate is attached as Exhibit 1): 

(A) the amount of Charge-Offs, the amount of Recoveries and the amount of Net 

Charge-Offs (which amount may be negative) during such Shared-Loss Quarter with respect 

to the Shared-Loss Assets (and for Recoveries, with respect to the Assets for which a chargeoff was effected by the Failed Bank prior to Bank Closing); and 

(B) the aggregate amount of Reimbursable Expenses (which amount may be 

negative) during such Shared-Loss Quarter; and 

(C) SLS Net Realized Loss and SLS Net Realized Gain, if any; and 

(D) any OTTI Adjustment. 

(ii) Not later than thirty (30) days after the end of each Calendar Quarter from and 

including the first Calendar Quarter following the final Shared-Loss Quarter to and including the Calendar 

Quarter in which the Termination Date falls (each of such Calendar Quarters being referred to herein as a 

“Recovery Quarter”), the Assuming Institution shall deliver to the Receiver a Quarterly Certificate setting 

forth, in such form and detail as the Receiver may specify 

(A) the amount of Recoveries and Recovery Expenses during such Recovery 

Quarter. On the Quarterly Certificate for the first Recovery Quarter only, the Assuming 

Institution may report as a separate item, in such form and detail as the Receiver may specify, 

the aggregate amount of any Reimbursable Expenses that: (a) were incurred prior to or during 

the final Shared-Loss Quarter, and (b) had not been included in any Quarterly Certificate for 

any Shared-Loss Quarter because they had not been actually paid by or on behalf of the 

Assuming Institution (in accordance with the terms of this Commercial Shared-Loss 

Agreement) during any Shared-Loss Quarter and (c) were actually paid by or on behalf of the 

Assuming Institution (in accordance with the terms of this Commercial Shared-Loss 

Agreement) during the first Recovery Quarter; and 

(B) SLS Net Realized Gain, and any reversals of OTTI Loss. 

(b) Payments With Respect to Shared-Loss Assets. 

(i) For purposes of this Section 2.1(b), the Assuming Institution shall initially record the 

Shared-Loss Assets on its Accounting Records at Book Value, and initially record the Shared-Loss Securities 

on its Accounting Records at Book Value, and adjust such amounts as such values may change after the 

Bank Closing. If the amount of all Net Charge-Offs during any Shared-Loss Quarter plus Reimbursable 

Expenses, plus SLS Net Realized Gain and SLS Net Realized Loss, plus the OTTI Adjustment during such 

Shared-Loss Quarter (the “Shared-Loss Amount”) is positive, then, except as provided in Sections 2.1(c) and 

(e) below, and subject to the provisions of Section 2.1(b)(iii) below, not later than fifteen (15) days after the 

date on which the Receiver receives the Quarterly Certificate with respect to such Shared-Loss Quarter, the 

Receiver shall pay to the Assuming Institution an amount equal to the Applicable Percentage of the SharedLoss Amount for such Shared-Loss Quarter. If the Shared-Loss Amount during any Shared-Loss Quarter is 

negative, the Assuming Institution shall pay to the Receiver an amount equal to the Applicable Percentage of 

the Shared-Loss Amount for such Shared-Loss Quarter, which payment shall be delivered to the Receiver 

together with the Quarterly Certificate for such Shared-Loss Quarter. 

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(ii) (A) If the amount of gross Recoveries during any Recovery Quarter less Recovery 

Expenses during such Recovery Quarter plus SLS Net Realized Gains and reversals of OTTI Loss on 

Shared-Loss Securities (the “Recovery Amount”) is positive, then, simultaneously with its delivery of the 

Quarterly Certificate with respect to such Recovery Quarter, the Assuming Institution shall pay to the 

Receiver an amount equal to the Applicable Percentage of the Recovery Amount for such Recovery Quarter. 

(B) If the Recovery Amount is negative, then such negative amount shall be 

subtracted from the amount of gross Recoveries during the next succeeding Recovery Quarter in determining 

the Recovery Amount in such next succeeding Recovery Quarter; provided, that this Section 2.1(b)(ii) shall 

operate successively in the event that the Recovery Amount (after giving effect to this Section 2.1(b)(ii)) in 

such next succeeding Recovery Quarter is negative. 

(C) The Assuming Institution shall specify, in the Quarterly Certificate for the final 

Recovery Quarter, the aggregate amount for all Recovery Quarters only, as of the end of, and including, the 

final Recovery Quarter of (A) Recoveries plus SLS Net Realized Gains and reversals of OTTI Loss on 

Shared-Loss Securities (“Aggregate Recovery Period Recoveries”), (B) Recovery Expenses (“Aggregate 

Recovery Expenses”), and (C) only those Recovery Expenses that have been actually “offset” against 

Aggregate Recovery Period Recoveries (including those so “offset” in that final Recovery Quarter) 

(“Aggregate Offset Recovery Expenses”); as used in this sentence, the term “offset” means the amount that 

has been applied to reduce gross Recoveries in any Recovery Quarter pursuant to the methodology set forth 

in this Section 2.1(b)(ii). If, at the end of the final Recovery Quarter the amount of Aggregate Recovery 

Expenses exceeds the amount of Aggregate Recovery Period Recoveries, the Receiver shall have no 

obligation to pay to the Assuming Institution all or any portion of such excess. 

(D) Subsequent to the Assuming Institution’s calculation of the Recovery Amount 

(if any) for the final Recovery Quarter, the Assuming Institution shall also show on the Quarterly Certificate 

for the final Recovery Quarter the results of the following three mathematical calculations: (i) Aggregate 

Recovery Period Recoveries minus Aggregate Offset Recovery Expenses; (ii) Aggregate Recovery Expenses 

minus Aggregate Offset Recovery Expenses; and (iii) the lesser of the two amounts calculated in (i) and (ii) 

immediately above (“Additional Recovery Expenses”) multiplied by the Applicable Percentage (the amount 

so calculated in (iii) being defined as the “Additional Recovery Expense Amount”). If the Additional 

Recovery Expense Amount is greater than zero, then the Assuming Institution may request in the Quarterly 

Certificate for the final Recovery Quarter that the Receiver reimburse the Assuming Institution the amount of 

the Additional Recovery Expense Amount and the Receiver shall pay to the Assuming Institution the 

Additional Recovery Expense Amount within fifteen (15) days after the date on which the Receiver receives 

that Quarterly Certificate. 

(E) On the Quarterly Certificate for the final Recovery Quarter only, the Assuming 

Institution may include, in addition to any Recovery Expenses for that Recovery Quarter that were paid by or 

on behalf of the Assuming Institution in that Recovery Quarter, those Recovery Expenses that: (a) were 

incurred prior to or during the final Recovery Quarter, and (b) had not been included in any Quarterly 

Certificate for any Recovery Quarter because they had not been actually paid by or on behalf of the 

Assuming Institution (in accordance with the terms of this Commercial Shared-Loss Agreement) during any 

Recovery Quarter, and (c) were actually paid by or on behalf of the Assuming Institution (in accordance with 

the terms of this Commercial Shared-Loss Agreement) prior to the date the Assuming Institution is required 

to deliver that final Quarterly Certificate to the Receiver under the terms of Section 2.1(a)(ii). 

(iii) With respect to each Shared-Loss Quarter and Recovery Quarter, collections by or on 

behalf of the Assuming Institution on any charge-off effected by the Failed Bank prior to Bank Closing on an 

Asset other than a Shared-Loss Asset or Shared-Loss Securities shall be reported as Recoveries under this 

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Section 2.1 only to the extent such collections exceed the Book Value of such Asset, if any. For any SharedLoss Quarter or Recovery Quarter in which collections by or on behalf of the Assuming Institution on such 

Asset are applied to both Book Value and to a charge-off effected by the Failed Bank prior to Bank Closing, 

the amount of expenditures incurred by or on behalf of the Assuming Institution attributable to the collection 

of any such Asset, that shall be considered a Reimbursable Expense or a Recovery Expense under this 

Section 2.1 will be limited to a proportion of such expenditures which is equal to the proportion derived by 

dividing (A) the amount of collections on such Asset applied to a charge-off effected by the Failed Bank 

prior to Bank Closing, by (B) the total collections on such Assets. With respect to Assets that were 

completely charged off by the Failed Bank and had a zero Book Value at Bank Closing, for the purpose of 

calculating the payments under this Section 2.1(b) for Recoveries on those Assets for each such quarter, the 

Assuming Institution shall pay an amount equal to fifty percent (50%) of the Recoveries on Failed Bank 

Charge-Offs/Write-Downs with respect to such Assets, and shall separately account for the other 

computations on those Recoveries under this Section 2.1(b) using fifty percent (50%) (and not the 

Applicable Percentage). 

(iv) If the Assuming Institution has duly specified an amount of Reimbursable Expenses 

on the Quarterly Certificate for the first Recovery Quarter as described above in Section 2.1(a)(ii)(E), then, 

not later than fifteen (15) days after the date on which the Receiver receives that Quarterly Certificate, the 

Receiver shall pay to the Assuming Institution an amount equal to the Applicable Percentage of the amount 

of such Reimbursable Expenses. 

(v) Payments from the Receiver with respect to this Commercial Shared-Loss Agreement 

are administrative expenses of the Receiver. To the extent the Receiver needs funds for shared-loss payments 

respect to this Commercial Shared-Loss Agreement, the Receiver shall request funds under the Master Loan 

and Security Agreement, as amended (“MLSA”), from FDIC in its corporate capacity. The Receiver will not 

agree to any amendment of the MLSA that would prevent the Receiver from drawing on the MLSA to fund 

shared-loss payments. 

(c) Limitation on Shared-Loss Payment. The Receiver shall not be required to make 

any payments pursuant to this Section 2.1 with respect to any Charge-Off of a Shared-Loss Asset that the 

Receiver or the Corporation determines, based upon the Examination Criteria, should not have been effected 

by the Assuming Institution; provided, (x) the Receiver must provide notice to the Assuming Institution 

detailing the grounds for not making such payment, (y) the Receiver must provide the Assuming Institution 

with a reasonable opportunity to cure any such deficiency and (z) (1) to the extent curable, if cured, the 

Receiver shall make payment with respect to any properly effected Charge-Off and (2) to the extent not 

curable, the Receiver shall make a payment as to all Charge-Offs (or portion of Charge-Offs) that were 

effected which would have been payable as a Charge-Off if the Assuming Institution had properly effected 

such Charge-Off. In the event that the Receiver does not make any payments with respect to any Charge-Off 

of a Shared-Loss Asset pursuant to this Section 2.1 or determines that a payment was improperly made, the 

Assuming Institution and the Receiver shall, upon final resolution, make such accounting adjustments and 

payments as may be necessary to give retroactive effect to such corrections. Failure to administer any 

Shared-Loss Asset or Assets, or Shared-Loss Securities, in accordance with Article III shall at the discretion 

of the Receiver constitute grounds for the loss of shared loss coverage with respect to such Shared-Loss Loan 

or Loans. 

(d) Sale of, or Additional Advances or Amendments with Respect to, Shared-Loss 

Loans and Administration of Related Loans. No Shared-Loss Loan shall be treated as a Shared-Loss 

Asset pursuant to this Section 2.1 (i) if the Assuming Institution sells or otherwise transfers such SharedLoss Loan or any interest therein (whether with or without recourse) to any Person, (ii) after the Assuming 

Institution makes any additional advance, commitment or increase in the amount of a commitment with 

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respect to such Shared-Loss Loan that does not constitute a Permitted Advance or a Shared-Loss Loan 

Commitment Advance, (iii) after the Assuming Institution makes any amendment, modification, renewal or 

extension to such Shared-Loss Loan that does not constitute a Permitted Amendment, or (iv) after the 

Assuming Institution has managed, administered or collected any “Related Loan” (as such term is defined in 

Section 3.4 of Article III of this Commercial Shared-Loss Agreement) in any manner which would have the 

effect of increasing the amount of any collections with respect to the Related Loan to the detriment of such 

Shared-Loss Asset to which such loan is related; provided, that any such Shared-Loss Loan that has been the 

subject of Charge-Offs prior to the taking of any action described in clause (i), (ii), (iii) or (iv) of this 

Section 2.1(d) by the Assuming Institution shall be treated as a Shared-Loss Asset pursuant to this Section 

2.1 solely for the purpose of treatment of Recoveries on such Charge-Offs until such time as the amount of 

Recoveries with respect to such Shared-Loss Asset equals such Charge-Offs. 

(e) Option to Purchase. 

(i) In the event that the Assuming Institution determines that there is a substantial 

likelihood that continued efforts to collect a Shared-Loss Asset or an Asset for which a charge-off was 

effected by the Failed Bank with, in either case, a Legal Balance of $5,000,000 or more on the Accounting 

Records of the Assuming Institution will result in an expenditure, after Bank Closing, of funds by on behalf 

of the Assuming Institution to a third party for a specified purpose (the expenditure of which, in its best 

judgment, will maximize collections), which do not constitute Reimbursable Expenses or Recovery 

Expenses, and such expenses will exceed ten percent (10%) of the then book value thereof as reflected on the 

Accounting Records of the Assuming Institution, the Assuming Institution shall (i) promptly so notify the 

Receiver and (ii) request that such expenditure be treated as a Reimbursable Expense or Recovery Expense 

for purposes of this Section 2.1. (Where the Assuming Institution determines that there is a substantial 

likelihood that the previously mentioned situation exists with respect to continued efforts to collect a SharedLoss Asset or an Asset for which a charge-off was effected by the Failed Bank with, in either case, a Legal 

Balance of less than $1,000,000 on the Accounting Records of the Assuming Institution, the Assuming 

Institution may so notify the Receiver and request that such expenditure be treated as a Reimbursable 

Expense or Recovery Expense.) Within thirty (30) days after its receipt of such a notice, the Receiver will 

advise the Assuming Institution of its consent or denial, that such expenditures shall be treated as a 

Reimbursable Expense or Recovery Expense, as the case may be. Notwithstanding the failure of the Receiver 

to give its consent with respect to such expenditures, the Assuming Institution shall continue to administer 

such Shared-Loss Asset in accordance with Section 2.2, except that the Assuming Institution shall not be 

required to make such expenditures. At any time after its receipt of such a notice and on or prior to the 

Termination Date the Receiver shall have the right to purchase such Shared-Loss Asset or Asset as provided 

in Section 2.1(e)(iii), notwithstanding any consent by the Receiver with respect to such expenditure. 

(ii) During the period prior to the Termination Date, the Assuming Institution shall notify 

the Receiver within fifteen (15) days after any of the following becomes fully or partially charged-off: 

(A) a Shared-Loss Loan having a Legal Balance (or, in the case of more than one (1) 

Shared-Loss Loan made to the same Obligor, a combined Legal Balance) of $5,000,000 or 

more in circumstances in which the legal claim against the relevant Obligor survives; or 

(B) a Shared-Loss Loan to a director, an “executive officer” as defined in 12 C.F.R. 

215.2(d), a “principal shareholder” as defined in 12 C.F.R.  215.2(l), or an Affiliate of the 

Assuming Institution. 

During the period prior to the Termination Date, the Assuming Institution shall notify the 

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Receiver within fifteen (15) days after any complete or partial charge-off of a Shared-Loss Loan to a 

director, an “executive officer” as defined in 12 C.F.R.  215.2(d), a “principal shareholder” as defined in 12 

C.F.R.  215.2(l), or an Affiliate of the Assuming Institution. 

(iii) If the Receiver determines in its discretion that the Assuming Institution is not 

diligently pursuing collection efforts with respect to any Shared-Loss Asset which has been fully or partially 

charged-off or written-down (including any Shared-Loss Asset which is identified or required to be 

identified in a notice pursuant to Section 2.1(e)(ii)) or any Asset for which there exists a Failed Bank ChargeOff/Write-Down, the Receiver may at its option, exercisable at any time on or prior to the Termination Date, 

require the Assuming Institution to assign, transfer and convey such Shared-Loss Asset or Asset to and for 

the sole benefit of the Receiver for a price equal to the Shared-Loss Asset Repurchase Price thereof less the 

Related Liability Amount with respect to any Related Liabilities related to such Shared-Loss Asset or Asset. 

(iv) Not later than ten (10) days after the date upon which the Assuming Institution 

receives notice of the Receiver’s intention to purchase or require the assignment of any Shared-Loss Asset or 

Asset pursuant to Section 2.1(e)(i) or (iii), the Assuming Institution shall transfer to the Receiver such 

Shared-Loss Asset or Asset and any Credit Files relating thereto and shall take all such other actions as may 

be necessary and appropriate to adequately effect the transfer of such Shared-Loss Asset or Asset from the 

Assuming Institution to the Receiver. Not later than fifteen (15) days after the date upon which the Receiver 

receives such Shared-Loss Asset or Asset and any Credit Files relating thereto, the Receiver shall pay to the 

Assuming Institution an amount equal to the Shared-Loss Asset Repurchase Price of such Shared-Loss Asset 

or Asset less the Related Liability Amount. 

(v) The Receiver shall assume all Related Liabilities with respect to any Shared-Loss 

Asset or Asset set forth in the notice described in Section 2.1(e)(iv). 

(f) Dispute Resolution. 

(i) (A) Any dispute as to whether a Charge-Off of a Shared-Loss Asset was made in 

accordance with Examination Criteria shall be resolved by the Assuming Institution’s Chartering Authority. 

(B) With respect to any other dispute arising under the terms of this Commercial Shared-Loss Agreement 

which the parties hereto cannot resolve after having negotiated such matter, in good faith, for a thirty (30) 

day period, other than a dispute the Corporation is not permitted to submit to arbitration under the 

Administrative Dispute Resolution Act of 1996 (“ADRA”), as amended, such other dispute shall be resolved 

by determination of a review board (a “Review Board”) established pursuant to Section 2.1(f). Any Review 

Board under this Section 2.1(f) shall follow the provisions of the Federal Arbitration Act and shall follow the 

provisions of the ADRA. (C) Any determination by the Assuming Institution’s Chartering Authority or by a 

Review Board shall be conclusive and binding on the parties hereto and not subject to further dispute, and 

judgment may be entered on said determination in accordance with applicable arbitration law in any court 

having jurisdiction thereof. 

(ii) A Review Board shall consist of three (3) members, each of whom shall have such 

expertise as the Corporation and the Assuming Institution agree is relevant. As appropriate, the Receiver or 

the Corporation (the “FDIC Party”) will select one member, one member will be selected by the Assuming 

Institution and the third member (the “Neutral Member”) will be selected by the other two members. The 

member of the Review Board selected by a party may be removed at any time by such party upon two (2) 

days’ written notice to the other party of the selection of a replacement member. The Neutral Member may 

be removed by unanimous action of the members appointed by the FDIC Party and the Assuming Institution 

after two (2) days’ prior written notice to the FDIC Party and the Assuming Institution of the selection of a 

replacement Neutral Member. In addition, if a Neutral Member fails for any reason to serve or continue to 

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serve on the Review Board, the other remaining members shall so notify the parties to the dispute and the 

Neutral Member in writing that such Neutral Member will be replaced, and the Neutral Member shall 

thereafter be replaced by the unanimous action of the other remaining members within twenty (20) business 

days of that notification. 

(iii) No dispute may be submitted to a Review Board by any of the parties to this 

Commercial Shared-Loss Agreement unless such party has provided to the other party a written notice of 

dispute (“Notice of Dispute”). During the forty-five (45)-day period following the providing of a Notice of 

Dispute, the parties to the dispute will make every effort in good faith to resolve the dispute by mutual 

agreement. As part of these good faith efforts, the parties should consider the use of less formal dispute 

resolution techniques, as judged appropriate by each party in its sole discretion. Such techniques may 

include, but are not limited to, mediation, settlement conference, and early neutral evaluation. If the parties 

have not agreed to a resolution of the dispute by the end of such forty-five (45)-day period, then, subject to 

the discretion of the Corporation and the written consent of the Assuming Institution as set forth in Section 

2.1(f)(i)(B) above, on the first day following the end of such period, the FDIC Party and the Assuming 

Institution shall notify each other of its selection of its member of the Review Board and such members shall 

be instructed to promptly select the Neutral Member of the Review Board. If the members appointed by the 

FDIC Party and the Assuming Institution are unable to promptly agree upon the initial selection of the 

Neutral Member, or a timely replacement Neutral Member as set forth in Section 2.1(f)(ii) above, the two 

appointed members shall apply to the American Arbitration Association (“AAA”), and such Neutral Member 

shall be appointed in accordance with the Commercial Arbitration Rules of the AAA. 

(iv) The resolution of a dispute pursuant to this Section 2.1(f) shall be governed by the 

Commercial Arbitration Rules of the AAA to the extent that such rules are not inconsistent with this Section 

2.1(f). The Review Board may modify the procedures set forth in such rules from time to time with the prior 

approval of the FDIC Party and the Assuming Institution. 

(v) Within fifteen (15) days after the last to occur of the final written submissions of both 

parties, the presentation of witnesses, if any, and oral presentations, if any, the Review Board shall adopt the 

position of one of the parties and shall present to the parties a written award regarding the dispute. The 

determination of any two (2) members of a Review Board will constitute the determination of such Review 

Board. 

(vi) The FDIC Party and the Assuming Institution will each pay the fees and expenses of 

the member of the Review Board selected by it. The FDIC Party and Assuming Institution will share equally 

the fees and expenses of the Neutral Member. No such fees or expenses incurred by or on behalf of the 

Assuming Institution shall be subject to reimbursement by the FDIC Party under this Commercial SharedLoss Agreement or otherwise. 

(vii) Each party will bear all costs and expenses incurred by it in connection with the 

submission of any dispute to a Review Board. No such costs or expenses incurred by or on behalf of the 

Assuming Institution shall be subject to reimbursement by the FDIC Party under this Commercial SharedLoss Agreement or otherwise. The Review Board shall have no authority to award costs or expenses incurred 

by either party to these proceedings. 

(viii) Any dispute resolution proceeding held pursuant to this Section 2.1(f) shall not be 

public. In addition, each party and each member of any Review Board shall strictly maintain the 

confidentiality of all issues, disputes, arguments, positions and interpretations of any such proceeding, as 

well as all information, attachments, enclosures, exhibits, summaries, compilations, studies, analyses, notes, 

documents, statements, schedules and other similar items associated therewith, except as the parties agree in 

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writing or such disclosure is required pursuant to law, rule or regulation. Pursuant to ADRA, dispute 

resolution communications may not be disclosed either by the parties or by any member of the Review board 

unless: 

(1) all parties to the dispute resolution proceeding agree in writing; 

(2) the communication has already been made public; 

(3) the communication is required by statute, rule or regulation to be made public; 

or 

(4) a court determines that such testimony or disclosure is necessary to prevent a manifest 

injustice, help establish a violation of the law or prevent harm to the public health or safety, or 

of sufficient magnitude in the particular case to outweigh the integrity of dispute resolution 

proceedings in general by reducing the confidence of parties in future cases that their 

communications will remain confidential. 

(ix) Any dispute resolution proceeding pursuant to this Section 2.1(f) (whether as a matter 

of good faith negotiations, by resort to a Review Board, or otherwise) is a compromise negotiation for 

purposes of the Federal Rules of Evidence and state rules of evidence. The parties agree that all proceedings, 

including any statement made or document prepared by any party, attorney or other participants are 

privileged and shall not be disclosed in any subsequent proceeding or document or construed for any purpose 

as an admission against interest. Any document submitted and any statements made during any dispute 

resolution proceeding are for settlement purposes only. The parties further agree not to subpoena any of the 

members of the Review Board or any documents submitted to the Review Board. In no event will the Neutral 

Member voluntarily testify on behalf of any party. 

(x) No decision, interpretation, determination, analysis, statement, award or other 

pronouncement of any Review Board shall constitute precedent as regards any subsequent proceeding 

(whether or not such proceeding involves dispute resolution under this Commercial Shared-Loss Agreement) 

nor shall any Review Board be bound to follow any decision, interpretation, determination, analysis, 

statement, award or other pronouncement rendered by any previous Review Board or any other previous 

dispute resolution panel which may have convened in connection with a transaction involving other failed 

financial institutions or Federal assistance transactions. 

(xi) The parties may extend any period of time in this Section 2.1(f) by mutual agreement. 

Notwithstanding anything above to the contrary, no dispute shall be submitted to a Review Board until each 

member of the Review Board, and any substitute member, if applicable, agrees to be bound by the provisions 

of this Section 2.1(f) as applicable to members of a Review Board. Prior to the commencement of the 

Review Board proceedings, or, in the case of a substitute Neutral Member, prior to the re-commencement of 

such proceedings subsequent to that substitution, the Neutral Member shall provide a written oath of 

impartiality. 

(xii) For the avoidance of doubt, and notwithstanding anything herein to the contrary, in the 

event any notice of dispute is provided to a party under this Section 2.1(g) prior to the Termination Date, the 

terms of this Commercial Shared-Loss Agreement shall remain in effect with respect to any such items set 

forth in such notice until such time as any such dispute with respect to such item is finally resolved. 

 (g) Payment in the Event Losses Fail to Reach Expected Level. If the asset premium 

(discount) bid expressed in dollars is a five per cent (5%) or more discount to the purchase price of the 

Assets determined in accordance with Article III, then on the date that is 45 days following the last day (such 

day, the “True-Up Measurement Date”) of the calendar month in which the tenth anniversary of the calendar 

day following the Bank Closing occurs, or upon the final disposition of all Shared Loss Assets under the 

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Single Family Shared-Loss Agreement at any time after the termination of this Commercial Shared-Loss 

Agreement, the Assuming Institution shall pay to the Receiver fifty percent (50%) of any positive amount 

resulting from the following calculation: 

A - (B + C + D), where 

A equals 20% of the Total Intrinsic Loss Estimate; 

B equals 20% of the Net Loss Amount; 

C equals 25% of the asset premium (discount) bid, expressed in dollars, of total Shared Loss Assets 

on Schedules 4.15A,4.15B, and 4.15D at Bank Closing; and 

D equals 3.5% of total Shared Loss Assets on Schedules 4.15A, 4.15B and 4.15D at Bank Closing. 

The Assuming Institution shall deliver to the Receiver not later than 30 days following the True-Up 

Measurement Date, a schedule, signed by an officer of the Assuming Institution, setting forth in reasonable 

detail the foregoing calculation, including the calculation of the Net Loss Amount. 

2.2 Administration of Shared-Loss Assets. The Assuming Institution shall at all times prior to 

the Termination Date comply with the Rules Regarding the Administration of Shared-Loss Assets as set 

forth in Article III of this Commercial Shared-Loss Agreement. 

2.3 Auditor Report; Right to Audit. 

(a) Within the time period permitted for the examination audit pursuant to 12 CFR 

Section 363 after the end of each fiscal year from and including the fiscal year during which Bank Closing 

falls to and including the calendar year during which the Termination Date falls, the Assuming Institution 

shall deliver to the Corporation and to the Receiver a report signed by its independent public accountants 

stating that they have reviewed the terms of this Commercial Shared-Loss Agreement and that, in the course 

of their annual audit of the Assuming Institution’s books and records, nothing has come to their attention 

suggesting that any computations required to be made by the Assuming Institution during such year by this 

Article II were not made by the Assuming Institution in accordance herewith. In the event that the Assuming 

Institution cannot comply with the preceding sentence, it shall promptly submit to the Receiver corrected 

computations together with a report signed by its independent public accountants stating that, after giving 

effect to such corrected computations, nothing has come to their attention suggesting that any computations 

required to be made by the Assuming Institution during such year by this Article II were not made by the 

Assuming Institution in accordance herewith. In such event, the Assuming Institution and the Receiver shall 

make all such accounting adjustments and payments as may be necessary to give effect to each correction 

reflected in such corrected computations, retroactive to the date on which the corresponding incorrect 

computation was made. It is the intention of this provision to align the timing of the audit required under this 

Commercial Shared-Loss Agreement with the examination audit required pursuant to 12 CFR Section 363. 

(b) The Assuming Institution shall perform on an annual basis an internal audit of its 

compliance with the provisions of this Article II and shall provide the Receiver and the Corporation with 

copies of the internal audit reports and access to internal audit workpapers related to such internal audit. 

(c) The Receiver or the Corporation, their agents, contractors and their employees, may 

perform an audit to determine the Assuming Institution’s compliance with the provisions of this Commercial 

Shared-Loss Agreement, including this Article II, at any time by providing not less than ten (10) Business 

Days prior written notice. The scope and duration of any such audit shall be within the discretion of the 

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Receiver or the Corporation, as the case may be, but shall in no event be administered in a manner that 

unreasonably interferes with the operation of the Assuming Institution’s business. The Receiver or the 

Corporation, as the case may be, shall bear the expense of any such audit. In the event that any corrections 

are necessary as a result of such an audit, the Assuming Institution and the Receiver shall make such 

accounting adjustments and payments as may be necessary to give retroactive effect to such corrections. 

2.4 Withholdings. Notwithstanding any other provision in this Article II, the Receiver, upon the 

direction of the Director (or designee) of the Corporation’s Division of Resolutions and Receiverships, may 

withhold payment for any amounts included in a Quarterly Certificate delivered pursuant to Section 2.1, if, in 

its judgment, there is a reasonable basis under the terms of this Commercial Shared-Loss Agreement for 

denying the eligibility of an item for which reimbursement or payment is sought under such Section. In such 

event, the Receiver shall provide a written notice to the Assuming Institution detailing the grounds for 

withholding such payment. At such time as the Assuming Institution demonstrates to the satisfaction of the 

Receiver that the grounds for such withholding of payment, or portion of payment, no longer exist or have 

been cured, then the Receiver shall pay the Assuming Institution the amount withheld which the Receiver 

determines is eligible for payment, within fifteen (15) Business Days. In the event the Receiver or the 

Assuming Institution elects to submit the issue of the eligibility of the item for reimbursement or payment for 

determination under the dispute resolution procedures of Section 2.1(f), then (i) if the dispute is settled by the 

mutual agreement of the parties in accordance with Section 2.1(f)(iii), the Receiver shall pay the amount 

withheld (to the extent so agreed) within fifteen (15) Business Days from the date upon which the dispute is 

determined by the parties to be resolved by mutual agreement, and (ii) if the dispute is resolved by the 

determination of a Review Board, the Receiver shall pay the amount withheld (to the extent so determined) 

within fifteen (15) Business Days from the date upon which the Receiver is notified of the determination by 

the Review Board of its obligation to make such payment. Any payment by the Receiver pursuant to this 

Section 2.4 shall be made together with interest on the amount thereof from the date the payment was agreed 

or determined otherwise to be due, at the interest rate per annum determined by the Receiver to be equal to 

the coupon equivalent of the three (3)-month U.S. Treasury Bill Rate in effect as of the first Business Day of 

each Calendar Quarter during which such interest accrues as reported in the Federal Reserve Board’s 

Statistical Release for Selected Interest Rates H.15 opposite the caption “Auction Average - 3-Month” or, if 

not so reported for such day, for the next preceding Business Day for which such rate was so reported. 

2.5 Books and Records. The Assuming Institution shall at all times during the term of this 

Commercial Shared-Loss Agreement keep books and records which fairly present all dealings and 

transactions carried out in connection with its business and affairs. Except as otherwise provided for in the 

Purchase and Assumption Agreement or this Commercial Shared-Loss Agreement, all financial books and 

records shall be kept in accordance with generally accepted accounting principles, consistently applied for 

the periods involved and in a manner such that information necessary to determine compliance with any 

requirement of the Purchase and Assumption Agreement or this Commercial Shared-Loss Agreement will be 

readily obtainable, and in a manner such that the purposes of the Purchase and Assumption Agreement or 

this Commercial Shared-Loss Agreement may be effectively accomplished. Without the prior written 

approval of the Corporation, the Assuming Institution shall not make any change in its accounting principles 

adversely affecting the value of the Shared-Loss Assets except as required by a change in generally accepted 

accounting principles. The Assuming Institution shall notify the Corporation of any change in its accounting 

principles affecting the Shared-Loss Assets which it believes are required by a change in generally accepted 

accounting principles. 

2.6 Information. The Assuming Institution shall promptly provide to the Corporation such other 

information, including financial statements and computations, relating to the performance of the provisions 

of the Purchase and Assumption Agreement or otherwise relating to its business and affairs or this 

Commercial Shared-Loss Agreement, as the Corporation or the Receiver may request from time to time. 

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2.7 Tax Ruling. The Assuming Institution shall not at any time, without the Corporation’s prior 

written consent, seek a private letter ruling or other determination from the Internal Revenue Service or 

otherwise seek to qualify for any special tax treatment or benefits associated with any payments made by the 

Corporation pursuant to the Purchase and Assumption Agreement or this Commercial Shared-Loss 

Agreement. 

ARTICLE III - RULES REGARDING THE ADMINISTRATION OF SHARED-LOSS ASSETS AND 

SHARED-LOSS SECURITIES 

3.1 Agreement with Respect to Administration. The Assuming Institution shall (and shall 

cause any of its Affiliates to which the Assuming Institution transfers any Shared-Loss Assets or SharedLoss Securities), or shall cause a Third Party Servicer to, manage, administer, and collect the Shared-Loss 

Assets and Shared-Loss Securities while owned by the Assuming Institution or any Affiliate thereof during 

the term of this Commercial Shared-Loss Agreement in accordance with the rules set forth in this Article III 

(“Rules”). The Assuming Institution shall be responsible to the Receiver and the Corporation in the 

performance of its duties hereunder and shall provide to the Receiver and the Corporation such reports as the 

Receiver or the Corporation reasonably deems advisable, including but not limited to the reports required by 

Section 3.3 hereof, and shall permit the Receiver and the Corporation at all times to monitor the Assuming 

Institution’s performance of its duties hereunder. 

3.2 Duties of the Assuming Institution with Respect to Shared-Loss Assets. 

(a) In the performance of its duties under these Rules, the Assuming Institution shall: 

(i) manage, administer, collect and effect Charge-Offs and Recoveries with respect to 

each Shared-Loss Asset in a manner consistent with (A) usual and prudent business and banking practices; 

(B) the Assuming Institution’s (or, in the case a Third Party Servicer is engaged, the Third Party Servicer’s) 

practices and procedures including, without limitation, the then-effective written internal credit policy 

guidelines of the Assuming Institution, with respect to the management, administration and collection of and 

taking of charge-offs and write-downs with respect to loans, other real estate and repossessed collateral that 

do not constitute Shared Loss Assets; 

(ii) exercise its best business judgment in managing, administering, collecting and 

effecting Charge-Offs with respect to Shared-Loss Assets; 

(iii) use its best efforts to maximize collections with respect to Shared-Loss Assets 

and, if applicable for a particular Shared-Loss Asset, without regard to the effect of maximizing collections 

on assets held by the Assuming Institution or any of its Affiliates that are not Shared-Loss Assets; 

(iv) adopt and implement accounting, reporting, record-keeping and similar systems 

with respect to the Shared-Loss Assets, as provided in Section 3.4 hereof; 

(v) retain sufficient staff to perform its duties hereunder; and 

(vi) provide written notification in accordance with Article IV of this Commercial 

Shared-Loss Agreement immediately after the execution of any contract pursuant to which any third party 

(other than an Affiliate of the Assuming Institution) will manage, administer or collect any of the SharedLoss Assets, together with a copy of that contract. 

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(b) Any transaction with or between any Affiliate of the Assuming Institution with respect to 

any Shared-Loss Asset including, without limitation, the execution of any contract pursuant to which any 

Affiliate of the Assuming Institution will manage, administer or collect any of the Shared-Loss Assets, or 

any other action involving self-dealing, shall be subject to the prior written approval of the Receiver or the 

Corporation. 

(c) The following categories of expenses shall not be deemed to be Reimbursable Expenses 

or Recovery Expenses: 

(i) Federal, State, or local income taxes and expenses related thereto; 

(ii) salaries or other compensation and related benefits of Assuming Institution 

employees and the employees of its Affiliates including, without limitation, any bonus, commission or 

severance arrangements, training, payroll taxes, dues, or travel- or relocation-related expenses,; 

(iii) the cost of space occupied by the Assuming Institution, any Affiliate thereof and 

their staff, the rental of and maintenance of furniture and equipment, and expenses for data processing 

including the purchase or enhancement of data processing systems; 

(iv) except as otherwise provided herein, fees for accounting and other independent 

professional consultants (other than consultants retained to assess the presence, storage or release of any 

hazardous or toxic substance, or any pollutant or contaminant with respect to the collateral securing a 

Shared-Loss Asset that has been fully or partially charged-off); provided, that for purposes of this Section 

3.2(c)(iv), fees of attorneys and appraisers engaged as necessary to assist in collections with respect to 

Shared-Loss Assets shall not be deemed to be fees of other independent consultants; 

(v) allocated portions of any other overhead or general and administrative expense 

other than any fees relating to specific assets, such as appraisal fees or environmental audit fees, for services 

of a type the Assuming Institution does not normally perform internally; 

(vi) any expense not incurred in good faith and with the same degree of care that the 

Assuming Institution normally would exercise in the collection of troubled assets in which it alone had an 

interest; and 

(vii) any expense incurred for a product, service or activity that is of an extravagant 

nature or design. 

(d) Subject to Section 3.7, the Assuming Institution shall not contract with third parties to 

provide services the cost of which would be a Reimbursable Expense or Recovery Expense if the Assuming 

Institution would have provided such services itself if the relevant Shared-Loss Assets were not subject to 

the loss-sharing provisions of Section 2.1 of this Commercial Shared-Loss Agreement. 

3.3 Duties of the Assuming Institution with Respect to Shared-Loss Securities. 

(a) In the performance of its duties under these Rules, the Assuming Institution shall: 

(i) manage, administer, collect and each Shared-Loss Security in a manner consistent 

with (A) usual and prudent business and banking practices; (B) the Assuming Institution’s practices and 

procedures including, without limitation, the then-effective written internal credit policy guidelines of the 

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Assuming Institution, with respect to the management, administration and collection of similar assets that are 

not Shared-Loss Securities; 

(ii) exercise its best business judgment in managing, administering, collecting and 

effecting Charge-Offs with respect to Shared-Loss Securities; 

(iii) use its best efforts to maximize collections with respect to Shared-Loss Securities 

and, if applicable for a particular Shared-Loss Security, without regard to the effect of maximizing 

collections on assets held by the Assuming Institution or any of its Affiliates that are not Shared-Loss 

Securities, provided that, any sale of a Shared-Loss Security shall only be made with the prior approval of 

the Receiver or the Corporation; 

(iv) adopt and implement accounting, reporting, record-keeping and similar systems 

with respect to the Shared-Loss Securities, as provided in Section 3.4 hereof; 

(v) retain sufficient staff to perform its duties hereunder; and 

(vi) provide written notification in accordance with Article IV of this Commercial 

Shared-Loss Agreement immediately after the execution of any contract pursuant to which any third party 

(other than an Affiliate of the Assuming Institution) will manage, administer or collect any of the SharedLoss Securities, together with a copy of that contract. 

(b) Any transaction with or between any Affiliate of the Assuming Institution with respect to 

any Shared-Loss Security including, without limitation, the execution of any contract pursuant to which any 

Affiliate of the Assuming Institution will manage, administer or collect any of the Shared-Loss Assets, or 

any other action involving self-dealing, shall be subject to the prior written approval of the Receiver or the 

Corporation. 

(c) The Assuming Institution shall not contract with third parties to provide services the cost 

of which would be a Reimbursable Expense or Recovery Expense if the Assuming Institution would have 

provided such services itself if the relevant Shared-Loss Assets were not subject to the loss-sharing 

provisions of Section 2.1 of this Commercial Shared-Loss Agreement. 

3.4 Records and Reports. The Assuming Institution shall establish and maintain records on a 

separate general ledger, and on such subsidiary ledgers as may be appropriate to account for the Shared-Loss 

Assets and the Shared-Loss Securities, in such form and detail as the Receiver or the Corporation may 

require, to enable the Assuming Institution to prepare and deliver to the Receiver or the Corporation such 

reports as the Receiver or the Corporation may from time to time request regarding the Shared-Loss Assets, 

the Shared-Loss Securities and the Quarterly Certificates required by Section 2.1 of this Commercial SharedLoss Agreement. 

3.5 Related Loans. 

(a) The Assuming Institution shall not manage, administer or collect any “Related Loan” 

in any manner which would have the effect of increasing the amount of any collections with respect to the 

Related Loan to the detriment of the Shared-Loss Asset to which such loan is related. A “Related Loan” 

means any loan or extension of credit held by the Assuming Institution at any time on or prior to the end of 

the final Recovery Quarter that is: (i) made to the same Obligor with respect to a Loan that is a Shared-Loss 

Asset or with respect to a Loan from which Other Real Estate, or Additional ORE derived, or (ii) attributable 

to the same primary Obligor with respect to any Loan described in clause (i) under the rules of the Assuming 

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Institution’s Chartering Authority concerning the legal lending limits of financial institutions organized 

under its jurisdiction as in effect on the Commencement Date, as applied to the Assuming Institution. 

(b) The Assuming Institution shall prepare and deliver to the Receiver with the Quarterly 

Certificates for the Calendar Quarters ending June 30 and December 31 for all Shared-Loss Quarters and 

Recovery Quarters, a schedule of all Related Loans which are commercial loans or commercial real estate 

loans with Legal Balances of $5,000,000 or more on the Accounting Records of the Assuming Institution as 

of the end of each such semi-annual period, and all other commercial loans or commercial real estate loans 

attributable to the same Obligor on such loans of $5,000,000 or more. 

3.6 Legal Action; Utilization of Special Receivership Powers. The Assuming Institution shall 

notify the Receiver in writing (such notice to be given in accordance with Article IV below and to include all 

relevant details) prior to utilizing in any legal action any special legal power or right which the Assuming 

Institution derives as a result of having acquired a Shared-Loss Asset from the Receiver, and the Assuming 

Institution shall not utilize any such power unless the Receiver shall have consented in writing to the 

proposed usage. The Receiver shall have the right to direct such proposed usage by the Assuming Institution 

and the Assuming Institution shall comply in all respects with such direction. Upon request of the Receiver, 

the Assuming Institution will advise the Receiver as to the status of any such legal action. The Assuming 

Institution shall immediately notify the Receiver of any judgment in litigation involving any of the aforesaid 

special powers or rights. 

3.7 Third Party Servicer. The Assuming Institution may perform any of its obligations and/or 

exercise any of its rights under this Commercial Shared-Loss Agreement through or by one or more Third 

Party Servicers, who may take actions and make expenditures as if any such Third Party Servicer was the 

Assuming Institution hereunder (and, for the avoidance of doubt, such expenses incurred by any such Third 

Party Servicer on behalf of the Assuming Institution shall be Reimbursable Expenses or Recovery Expenses, 

as the case may be, to the same extent such expenses would so qualify if incurred by the Assuming 

Institution); provided, however, that the use thereof by the Assuming Institution shall not release the 

Assuming Institution of any obligation or liability hereunder. 

ARTICLE IV -- PORTFOLIO SALE 

4.1 Assuming Institution Portfolio Sales of Remaining Shared-Loss Assets. The Assuming 

Institution shall have the right with the consent of the Receiver, commencing as of the first day of the third to 

last Shared-Loss Quarter, to liquidate for cash consideration, in one or more transactions, all or a portion of 

Shared-Loss Assets held by the Assuming Institution (“Portfolio Sales”). If the Assuming Institution 

exercises its option under this Section 4.1, it must give thirty (30) days notice in writing to the Receiver 

setting forth the details and schedule for the Portfolio Sale which shall be conducted by means of sealed bid 

sales to third parties, not including any of the Assuming Institution’s affiliates, contractors, or any affiliates 

of the Assuming Institution’s contractors. 

4.2 Calculation of Sale Gain or Loss. For Shared-Loss Assets gain or loss on the sales under 

Section 4.1 will be calculated as the aggregate sales price received by the Assuming Institution less the 

aggregate book value of the remaining Shared-Loss Assets. 

ARTICLE V -- LOSS-SHARING NOTICES GIVEN TO CORPORATION AND/OR RECEIVER 

As a supplement to the notice provisions contained in Section 13.7 of the Purchase and Assumption 

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Agreement, any notice, request, demand, consent, approval, or other communication (a “Notice”) given to 

the Corporation and/or the Receiver in the loss-sharing context shall be given as follows: 

5.1 With respect to a Notice under Section 2 and Sections 3.1-3.5 of this Commercial SharedLoss Agreement: 

Federal Deposit Insurance Corporation 

Division of Resolutions and Receiverships 

550 17th Street, N.W.
 

Washington, D.C. 20429 

Attention: Assistant Director, Franchise and Asset Marketing 

5.2 With respect to a Notice under Section 3.6 of this Commercial Shared-Loss Agreement: 

Federal Deposit Insurance Corporation Legal Division 

7777 Baymeadows Way West 

Jacksonville, FL 32256 

Attention: Managing Counsel 

with a copy to: 

Federal Deposit Insurance Corporation Legal Division 

550 17th Street, N.W.
 

Washington, D.C. 20429 

Attention: Senior Counsel (Special Issues Group) 

ARTICLE VI – MISCELLANEOUS 

6.1 Expenses. Except as otherwise expressly provided herein, all costs and expenses incurred by 

a party hereto in connection with this Commercial Shared-Loss Agreement shall be borne by such party 

whether or not the transactions contemplated herein shall be consummated. 

6.2 Successors and Assigns; Specific Performance. This Commercial Shared-Loss Agreement, 

and all of the terms and provisions hereof shall be binding upon and shall inure to the benefit of the parties 

hereto and their respective permitted successors and assigns only. The Receiver may assign or otherwise 

transfer this Commercial Shared-Loss Agreement and the rights and obligations of the Receiver hereunder 

(in whole or in part) to the Federal Deposit Insurance Corporation in its corporate capacity without the 

consent of Assuming Institution. Notwithstanding anything to the contrary contained in this Commercial 

Shared-Loss Agreement, except as is expressly permitted in this Section 6.2, the Assuming Institution may 

not assign or otherwise transfer this Commercial Shared-Loss Agreement or any of the Assuming 

Institution’s rights or obligations hereunder (in whole or in part), or sell or transfer of any subsidiary of the 

Assuming Institution holding title to Shared-Loss Assets or Shared-Loss Securities, without the prior written 

consent of the Receiver, which consent may be granted or withheld by the Receiver in its sole and absolute 

discretion. An assignment or transfer of this Commercial Shared-Loss Agreement includes: 

(i) a merger or consolidation of the Assuming Institution with or into another company, if the 

shareholders of the Assuming Institution will own less than sixty-six and two/thirds percent (66.66 %) of the 

equity of the consolidated entity; 

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(ii) a merger or consolidation of the Assuming Institution’s Holding Company with or into another 

company, if the shareholders of the Holding Company will own less than sixty-six and two/thirds percent 

(66.66 %) of the equity of the consolidated entity; 

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

person; or

 (iv) a sale of shares by any one or more shareholders that will effect a change in control of the 

Assuming Institution, as determined by the Receiver with reference to the standards set forth in the Change 

in Bank Control Act, 12 U.S.C. 1817(j). 

For the avoidance of doubt, any transaction under this Section 6.2 that requires the Receiver’s consent that is 

made without consent of the Receiver hereunder will relieve the Receiver of any of its obligations under this 

Commercial Shared-Loss Agreement. 

No Loss shall be recognized under this Commercial Shared-Loss Agreement as a result of any accounting 

adjustments that are made due to or as a result of any assignment or transfer of this Commercial Shared-Loss 

Agreement or any merger, consolidation, sale or other transaction to which the Assuming Institution, its 

Holding Company or any Affiliate is a party, regardless of whether the Receiver consents to such assignment 

or transfer in connection with such transaction pursuant to this Section 6.2. 

6.3 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY AND 

UNCONDITIONALLY WAIVES ALL RIGHT TO TRIAL BY JURY IN OR TO HAVE A JURY 

PARTICIPATE IN RESOLVING ANY DISPUTE, ACTION, PROCEEDING OR COUNTERCLAIM, 

WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, ARISING OUT OF OR RELATING 

TO OR IN CONNECTION WITH THIS COMMERCIAL SHARED-LOSS AGREEMENT OR ANY OF 

THE TRANSACTIONS CONTEMPLATED HEREBY. 

6.4 No Third Party Beneficiary. This Commercial Shared-Loss Agreement and the Exhibits 

hereto are for the sole and exclusive benefit of the parties hereto and their respective permitted successors 

and permitted assigns and there shall be no other third party beneficiaries, and nothing in Commercial 

Shared-Loss Agreement or the Exhibits shall be construed to grant to any other Person any right, remedy or 

claim under or in respect of this Commercial Shared-Loss Agreement or any provision hereof. 

6.5 Consent. Except as otherwise provided herein, when the consent of a party is required herein, 

such consent shall not be unreasonably withheld or delayed. 

6.6 Rights Cumulative. Except as otherwise expressly provided herein, the rights of each of the 

parties under this Commercial Shared-Loss Agreement are cumulative, may be exercised as often as any 

party considers appropriate and are in addition to each such party’s rights under the Purchase and Sale 

Agreement and any of the related agreements or under law. Except as otherwise expressly provided herein, 

any failure to exercise or any delay in exercising any of such rights, or any partial or defective exercise of 

such rights, shall not operate as a waiver or variation of that or any other such right. 

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Exhibit 1 

For the commercial and other pool, the FDIC reporting requirement includes the following: 

o	 A quarterly loan level download for all loans in the asset pool 

o	 A quarterly asset level download of commercial ORE 

o	 A quarterly certificate report that includes 3 sections: 

o	 1: A summary report of total covered losses for the quarter and the derivation of the FDIC 

portion of the covered loss 

o	 2: A summary report on the commercial and other portfolio and covered losses and 

recoveries 

o	 3: A performance report on the outstanding commercial and other pool assets under loss 

share 

o	 A quarterly listing of assets with covered losses 

A blank version of the quarterly certificate report is shown below. 

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