Document:

Board Services Agreement between the Registrant and its director

 Exhibit 10.61 
 BOARD SERVICES AGREEMENT 
 The Board of Directors of LookSmart, Ltd., a Delaware corporation (the “Board”),
and Jean-Yves Dexmier, a member of the Board, hereby enter into this Board Services Agreement effective July 1, 2008 (the “Agreement”). 
 RECITALS 
 WHEREAS: The Board believes that it is in the best interests of the Company and its
stockholders to investigate the possibility of a potential strategic transaction involving the Company and a third party (the “Potential Strategic Transaction”) and the Potential Strategic Transaction may involve a change of control
of the Company and its merger with another entity; 
 WHEREAS: The Board believes that it may be in the best interests of the Company and its
stockholders to commence negotiations regarding the Potential Strategic Transaction and currently anticipates that such negotiations will continue for the next 4 to 8 weeks; 
 WHEREAS: The Board wishes to retain the services of one of its members who is experienced with assessing mergers and acquisitions to assist the Board in fulfilling its fiduciary duties with respect to
the Potential Strategic Transaction; 
 WHEREAS: Jean-Yves Dexmier, a member of the Board, has experience with transactions such as the
Potential Strategic Transaction; 
 NOW therefore, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the parties agree as follows: 
 1. Jean-Yves Dexmier will assist the Board in the investigation, review and analysis related to the Potential Strategic
Transaction, which appointment may include (but is not limited to) the following: (a) providing support in the development of a business model and business plan for the Combined Company; (b) advising in the determination of the
Company’s valuation, (c) consulting with the Company’s senior executives concerning the proposed terms of the Potential Strategic Transaction; (d) advising in, and if the Board deems it advisable participating in, negotiations
with the third party; and (e) making reports and recommendations to the Board related to the Potential Strategic Transaction. 
 2. In consideration for
his services pursuant to this Agreement, the Company will pay to Mr. Dexmier the equivalent of Three Thousand Dollars ($3,000) per day in either cash or shares of the Company’s restricted stock to be at Mr. Dexmier’s option.

 3. The term of this Agreement will be a period of four (4) weeks from the effective date (the “Term”). At the end of the Term, the parties
may extend this Agreement as necessary. 
  

			
		
	 /s/ Edward F. West
	 	 /s/ Jean-Yves Dexmier

	Edward F. West, Chair	 	Jean-Yves DexmierStipulation and Consent to the Issuance of an order to Cease and Desist

 Exhibit 10.1 
 FEDERAL DEPOSIT INSURANCE CORPORATION 
 WASHINGTON, D.C. 
  

					
	 	  	)	  	
	 In the Matter of
	  	)	  	
		  	)	  	STIPULATION AND CONSENT TO
	 APPALACHIAN COMMUNITY BANK
	  	)	  	THE ISSUANCE OF AN ORDER TO
	 ELLIJAY, GEORGIA
	  	)	  	CEASE AND DESIST
		  	)	  	
	 (Insured State Nonmember Bank
	  	)	  	FDIC-09-010b
	 	  	)	  	

 Subject to the acceptance of this STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER TO CEASE AND
DESIST (“CONSENT AGREEMENT”) by the Federal Deposit Insurance Corporation (“FDIC”), it is hereby stipulated and agreed by and between a representative of the Legal Division of the FDIC, a representative of the Georgia Department
of Banking and Finance (the “Department”) and Appalachian Community Bank, Ellijay, Georgia (“Bank”), through its board of directors, as follows. 
 1. The Bank has been advised of its right to receive a written Notice of Charges and of Hearing (“Notice”) detailing the unsafe or unsound banking practices and violations of law and/or regulations alleged
to have been committed by the Bank and of its right to a hearing on the alleged charges under section 8(b)(1) of the Federal Deposit Insurance Act (“Act”), 12 U.S.C. § 1818(b)(1), and the FDIC’s Rules of Practice and Procedure
(“Rules”), 12 C.F.R. Part 308, and has waived those rights. 
 2. The Bank, solely for the purpose of this proceeding and without
admitting or denying any of the alleged charges of unsafe or unsound banking practices and any violations of law and/or regulations, hereby consents and agrees to the issuance of an ORDER TO CEASE AND DESIST (“ORDER”) by the FDIC and the
Department in the form attached hereto. The 

 
Bank further stipulates and agrees that such ORDER shall become effective immediately after its issuance by the FDIC and the Department and be fully
enforceable by the FDIC pursuant to the provisions of section 8(i)(1) of the Act, 12 U.S.C. § 1818(i)(1), and the Rules, and by the Commissioner subject only to the conditions set forth in paragraph 3 of this CONSENT AGREEMENT. 
 3. In the event the FDIC accepts this CONSENT AGREEMENT and issues the ORDER, it is agreed that no action to enforce said ORDER in the United States
District Court will be taken by the FDIC unless the Bank or any “institution-affiliated party”, as such term is defined in section 3(u) of the Act, 12 U.S.C. § 1813(u), has violated or is about to violate any provision of the ORDER.

 4. The Bank hereby waives: 
  

	 	(a)	the receipt of a written Notice; 

  

	 	(b)	all defenses to the charges to be set forth in the Notice; 

  

	 	(c)	a hearing for the purpose of taking evidence regarding the allegations to be set forth in the Notice; 

  

	 	(d)	the filing of Proposed Findings of Fact and Conclusions of Law; 

  

	 	(e)	a Recommended Decision of an Administrative Law Judge; and 

  

	 	(f)	exceptions and briefs with respect to such Recommended Decision. 

 Dated:
April 17, 2009 
 FEDERAL DEPOSIT INSURANCE CORPORATION 
 LEGAL DIVISION 
 BY: 
 /s/ Alesia N. Black 

 
 Alesia N. Black 
 Senior Attorney 
  

 2 

 GEORGIA DEPARTMENT OF BANKING AND FINANCE 
 BY: 
  

	
	
	/s/ Robert M. Braswell
	 Robert M. Braswell
 Commissioner

 APPALACHIAN COMMUNITY BANK 
 ELLIJAY, GEORGIA 
 BY: 

	
	
	/s/ Alan S. Dover
	Alan S. Dover

	
	
	/s/ Charles A. Edmondson
	Charles A. Edmondson

	
	
	/s/ Roger E. Futch
	Roger E. Futch

	
	
	/s/ Joseph C. Hensley
	Joseph C. Hensley

	
	
	/s/ Frank E. Jones
	Frank E. Jones

	
	
	/s/ J. Ronald Knight
	J. Ronald Knight

	
	
	/s/ Tracy R. Newton
	Tracy R. Newton

	
	
	/s/ Kenneth D. Warren
	Kenneth D. Warren

 THE BOARD OF DIRECTORS 
  

 3Order to Cease and Desist

 Exhibit 10.2 
 FEDERAL DEPOSIT INSURANCE CORPORATION 
 WASHINGTON, D.C. 
  

					
	 	  	)	  	
	 In the Matter of
	  	)	  	
		  	)	  	ORDER TO
	 APPALACHIAN COMMUNITY BANK
	  	)	  	CEASE AND DESIST
	 ELLIJAY, GEORGIA
	  	)	  	
		  	)	  	FDIC-09-010b
	 (Insured State Nonmember Bank)
	  	)	  	
	 	  	)	  	

 Appalachian Community Bank, Ellijay,
Georgia (“Bank”), having been advised of its right to a NOTICE OF CHARGES AND OF HEARING detailing the unsafe or unsound banking practices and violations of law and/or regulations alleged to have been committed by the Bank and of its right
to a hearing on the alleged charges under section 8(b)(1) of the Federal Deposit Insurance Act (“Act”), 12 U.S.C. § 1818(b)(1), and having waived those rights, entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER TO
CEASE AND DESIST (“CONSENT AGREEMENT”) with a representative for the Legal Division of the Federal Deposit Insurance Corporation (“FDIC”) and the Commissioner (the “Commissioner”) for the State of Georgia, Department of
Banking and Finance (the “Department”), dated the 17th day of April, 2009, whereby solely for the purpose of this proceeding and without
admitting or denying the alleged charges of unsafe or unsound banking practices and violations of law and/or regulations, the Bank consented to the issuance of an ORDER TO CEASE AND DESIST (“ORDER”) by the FDIC and the Commissioner. The
Commissioner may issue an order to cease and desist pursuant to section 7-1-91 of the Official Code of Georgia Annotated, GA Code Ann. Section 7-1-91(1985). 

 The FDIC and the Commissioner considered the matter and determined that they have reason to believe that
the Bank has engaged in unsafe or unsound banking practices and has committed violations of law and/or regulations. The FDIC and the Commissioner, therefore, accepted the CONSENT AGREEMENT and issued the following: 
 ORDER TO CEASE AND DESIST 
 IT
IS HEREBY ORDERED, that the Bank, its institution-affiliated parties, as that term is defined in section 3(u) of the Act, 12 U.S.C. § 1813(u), and its successors and assigns cease and desist from the following unsafe and unsound banking
practices and violations of law and/or regulation: 
  

	 	(a)	operating with a board of directors (“Board) that has failed to provide adequate supervision over and direction to the management of the Bank; 

  

	 	(b)	operating with management whose policies and practices are detrimental to the Bank and jeopardize the safety of its deposits; 

  

	 	(c)	operating with a large volume of poor quality loans; 

  

	 	(d)	following hazardous lending and lax collection policies and practices; 

  

	 	(e)	operating in such a manner as to produce operating losses; 

  

	 	(f)	operating with inadequate equity capital in relation to the volume and quality of assets held by the Bank; 

  

	 	(g)	operating with inadequate provisions for liquidity and funds management; 

  

	 	(h)	operating with inadequate allowance for loan and lease losses (“ALLL”); 

  

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	 	(i)	operating with excessive concentrations of commercial real estate (“CRE”) and acquisition, development, and construction (“ADC”) loans; 

 

	 	(j)	operating in violation of laws and/or regulations, and in contravention of statements of policy and guidance as more fully described on pages 13 through 18 of the Report of
Examination of the Bank dated September 29, 2008 (“Report”). 

 IT IS FURTHER ORDERED, that the Bank, its
institution-affiliated parties, and its successors and assigns, take affirmative action as follows: 
 BOARD OF DIRECTORS

 1. Beginning with the effective date of this ORDER, the Board shall increase its participation in the affairs of the Bank, assuming full
responsibility for the approval of sound policies and objectives and for the supervision of all of the Bank’s activities, consistent with the role and expertise commonly expected for directors of banks of comparable size. This participation
shall include meetings to be held no less frequently than monthly at which, at a minimum, the following areas shall be reviewed and approved: reports of income and expenses; new, overdue, renewal, insider, charged-off, and recovered loans;
investment activity; operating policies; and individual committee actions. Board minutes shall document these reviews and approvals, including the names of any dissenting directors. 
 COMPLIANCE WITH ORDER 
 2. Within 30 days from the effective date of this ORDER, the
Board shall establish a Board committee (“Directors’ Committee”), consisting of at least four members, to oversee the Bank’s compliance with the ORDER. Three of the members of the 

  

 3 

 
Directors’ Committee shall not be officers of the Bank. The Directors’ Committee shall receive from Bank management monthly reports detailing the
Bank’s actions with respect to compliance with the ORDER. The Directors’ Committee shall present a report detailing the Bank’s adherence to the ORDER to the Board at each regularly scheduled Board meeting. Such report shall be
recorded in the appropriate minutes of the Board’s meeting and shall be retained in the Bank’s records. Establishment of this committee does not in any way diminish the responsibility of the entire Board to ensure compliance with the
provisions of this ORDER. 
 MANAGEMENT 
 3. (a) Within 60 days from the effective date of this ORDER, the Bank shall have and retain qualified management. Each member of management shall have qualifications and experience commensurate with his or her duties and responsibilities at
the Bank. Each member of management shall be provided appropriate written authority from the Bank’s Board, with such authority recorded in the Board minutes, to implement the provisions of this ORDER. Management shall include: 
 (i) a chief executive officer with proven ability in managing a bank of comparable size and complexity and in effectively implementing lending, investment
and operating policies in accordance with sound banking practices; 
 (ii) a senior lending officer with a significant amount of appropriate
lending, collection, and loan supervision experience, and experience in upgrading a low quality loan portfolio; and 
  

 4 

 (iii) a chief operations officer with a significant amount of appropriate experience in managing the
operations of a bank of similar size and complexity in accordance with sound banking practices. 
 (b) The qualifications of management shall
be assessed on its ability to: 
 (i) comply with the requirements of this ORDER; 
 (ii) operate the Bank in a safe and sound manner; 
 (iii) comply with applicable laws and regulations; and 
 (iv) restore all aspects of the Bank to a safe and sound condition,
including asset quality, earnings, capital adequacy, earnings, management effectiveness, risk management, liquidity and sensitivity to market risk. 
 (c) During the life of this ORDER, the Bank shall notify the Supervisory Authorities in writing when it proposes to add any individual to the Bank’s Board or employ any individual as a senior executive officer, as that term is defined
in section 303.102 of the FDIC’s Rules and Regulations, 12 C.F.R. § 303.102. The notification should include a description of the background and experience of the individual or individuals to be added or employed and must be received at
least 30 days before such addition or employment is intended to become effective. If the Regional Director issues a notice of disapproval pursuant to section 32 of the Act, 12 U.S.C. § 1831i, with respect to any proposed individual, then such
individual may not be added or employed by the Bank. 
 CAPITAL 
 4. (a) Within 90 days from the effective date of this ORDER, the Bank shall have Tier 1 capital in such an amount as to equal or exceed eight percent (8%) of the 

  

 5 

 
Bank’s total assets and a total risk based capital in such an amount as to equal or exceed ten percent (10%) of the Bank’s total risk-weighted
assets. Thereafter, during the life of this ORDER, the Bank shall maintain Tier 1 capital in such an amount as to equal or exceed eight percent (8%) of the Bank’s total assets and a total risk based capital in such an amount as to equal or
exceed ten percent (10%) of the Bank’s total risk-weighted assets. 
 (b) Within 30 days from the effective date of this ORDER, the
Bank shall develop and adopt a plan to meet the minimum risk-based capital requirements for a well-capitalized bank, as described in the FDIC Statement of Policy on Risk-Based Capital contained in Appendix A to Part 325 of the FDIC’s Rules and
Regulations, 12 C.F.R. Part 325, Appendix A. The Plan shall be in a form and manner acceptable to the Supervisory Authorities as determined at subsequent examinations and/or visitations. 
 (c) The level of Tier 1 capital to be maintained during the life of this ORDER pursuant to Subparagraph 4(a) shall be in addition to a fully funded ALLL,
the adequacy of which shall be satisfactory to the Supervisory Authorities as determined at subsequent examinations and/or visitations. 
 (d) Any increase in Tier 1 capital necessary to meet the requirements of Paragraph 4(a) of this ORDER may not be accomplished through a reduction from the Bank’s ALLL. 
 (e) For the purposes of this ORDER, the terms “Tier 1 capital,” “risk-weighted assets,” and “total assets” shall have, the
meanings ascribed to them in Part 325 of the FDIC’s Rules and Regulations, 12 C.F.R. §§ 325.2(s), 325.2(v), and 325.2(x). 
  

 6 

 ALLOWANCE FOR LOAN AND LEASE LOSSES 
 5. Within 30 days from the effective date of this ORDER, the Board shall review the adequacy of the ALLL and shall revise its policy for determining the adequacy of the
ALLL, and such policy shall be comprehensive. For the purpose of this determination, the adequacy of the ALLL shall be determined after the charge-off of all loans or other items classified “Loss”. The policy shall provide for a review of
the allowance at least once each calendar quarter. Said review should be completed at least twenty-one (21) days after the end of each calendar quarter, in order that the findings of the Board with respect to the ALLL may be properly reported
in the quarterly Reports of Condition and Income. The review should focus on the results of the Bank’s internal loan review, loan and lease loss experience, trends of delinquent and non-accrual loans, an estimate of potential loss exposure of
significant credits, concentrations of credit, and present and prospective economic conditions. A deficiency in the ALLL shall be remedied in the calendar quarter it is discovered, prior to submitting the Report of Condition, by a charge to current
operating earnings. The minutes of the Board meeting at which such review is undertaken shall indicate the results of the review. The Bank’s policy for determining the adequacy of the ALLL and its implementation shall be satisfactory to the
Supervisory Authorities as determined at subsequent examinations and/or visitations. 
 LIQUIDITY AND FUNDS MANAGEMENT

 6. (a) Within 60 days from the effective date of this ORDER, the Bank shall review, revise, and adopt its written liquidity, contingency funding,
and funds management policy to provide effective guidance and control over the Bank’s funds management activities, which policy shall include, at a minimum, revisions to address all 

  

 7 

 
items of criticism enumerated on page 11 of the Report. Such policy and its implementation shall be in a form and manner acceptable to the Supervisory
Authorities as determined at subsequent examinations and/or visitations. The revised policy shall provide for a periodic review of the Bank’s deposit structure. 
 (b) Within 60 days from the effective date of this ORDER, the Bank shall implement adequate models for managing liquidity. 
 (c) The Bank shall calculate monthly the liquidity and dependency ratios, following the format utilized internally, and provide the calculations to the Board for review with such review noted in the Board minutes.

 BROKERED DEPOSITS 
 7. While
this ORDER is in effect, the Bank shall give written notice to the Supervisory Authorities at such time as the Bank intends to make use of brokered deposits or increase the amount of brokered deposits above the amount outstanding on the date of the
Report. The notification should indicate how the brokered deposits are to be utilized with specific reference to credit quality or investments/loans and the effect on the Bank’s fund position and asset/liability matching. The Supervisory
Authorities shall have the right to reject the Bank’s plan for utilizing brokered deposits and may request periodic progress reports on the level, source, and use of brokered deposits within the Bank’s plan. For purposes of this ORDER,
brokered deposits are defined as described in section 337.6(a)(2) of the FDIC’s Rules and Regulations, 12 C.F.R. § 337.6(a)(2), to include any deposits funded by third party agents or nominees for depositors, including deposits managed by
a trustee or custodian when each individual beneficial interest is entitled to or asserts a right to federal deposit insurance. 
  

 8 

 CASH DIVIDENDS 
  

	8.	The Bank shall not pay cash dividends without the prior written consent of the Supervisory Authorities. 

 CHARGE-OFF AND REDUCTION OF CLASSIFIED ITEMS 
 9. (a) Within 10 days from the effective
date of this ORDER, the Bank shall eliminate from its books, by charge-off or collection, all assets or portions of assets classified “Loss” and fifty percent (50%) of all assets or portions of assets classified “Doubtful”
in the Report that have not been previously collected or charged off. (If an asset classified “Doubtful” is a loan or a lease, the Bank may, in the alternative, increase its ALLL by an amount equal to fifty percent (50%) of the loan
or lease classified “Doubtful.”) Elimination of these assets through proceeds of other loans made by the Bank is not considered collection for purposes of this paragraph. 
 (b) Additionally, while this ORDER remains in effect, the Bank shall, within 30 days of the receipt of any official Report of Examination of the Bank
from the Supervisory Authorities, eliminate from its books, by collection, charge-off, or other proper entries, the remaining balance of any assets classified “Loss” and fifty percent (50%) of those classified “Doubtful”,
unless otherwise approved in writing by the Supervisory Authorities. 
 (c) This provision shall further require a reduction in the aggregate
balance of assets classified “Substandard” and “Doubtful” in the Report in accordance with the following schedule. For purposes of this paragraph, “number of days” means number of days from the effective date of this
ORDER. 
  

 9 

 (i) Within 180 days, a reduction of twenty percent (20%) in the balance of assets classified
“Substandard” or “Doubtful.” 
 (ii) Within 360 days, a reduction of forty percent (40%) in the balance of assets
classified “Substandard” or “Doubtful.” 
 (iii) Within 540 days, a reduction of sixty percent (60%) in the balance
of assets classified “Substandard” or “Doubtful;” 
 (iv) Within 720 days, a reduction of seventy-five percent
(75%) in the balance of assets classified “Substandard” or “Doubtful.” 
 (d) The requirements of subparagraph 9(c)
of this ORDER are not to be construed as standards for future operations and, in addition to the foregoing, the Bank shall eventually reduce the total of all adversely classified assets. Reduction of these assets through proceeds of other loans made
by the Bank is not considered collection for the purpose of this paragraph. As used in subparagraph 9(c) the word “reduce” means: 
 (i) to collect; 
 (ii) to charge-off; or 
 (iii) to sufficiently improve the quality of assets adversely classified to warrant removing any adverse classification, as determined by the Supervisory Authorities. 
 NO ADDITIONAL CREDIT 
 10. (a) Beginning with
the effective date of this ORDER, the Bank shall not extend, directly or indirectly, any additional credit to, or for the benefit of, any borrower who has a loan or other extension of credit from the Bank that has been charged off or classified, in
whole or in part, “Loss” or “Doubtful” and is uncollected. The requirements of this paragraph shall not prohibit the Bank from renewing (after collection in cash of interest due from the borrower) any credit already extended to
any borrower. 
  

 10 

 (b) Additionally, during the life of this ORDER, the Bank shall not extend, directly or indirectly, any
additional credit to, or for the benefit of, any borrower who has a loan or other extension of credit from the Bank that has been classified, in whole or part, “Substandard” and is uncollected. 
 (c) Subparagraph 10(b) shall not apply if the Bank’s failure to extend further credit to a particular borrower would be detrimental to the best
interests of the Bank. Prior to the extending of any additional credit pursuant to this paragraph, either in the form of a renewal, extension, or further advance of funds, such additional credit shall be approved by a majority of the Board, or a
designated committee thereof, who shall certify, in writing: 
 (i) why the failure of the Bank to extend such credit would be detrimental to
the best interests of the Bank; 
 (ii) that the Bank’s position would be improved thereby; including an explanatory statement of how the
Bank’s position would be improved; and 
 (iii) an appropriate workout plan has been developed and will be implemented in conjunction
with the additional credit to be extended. 
 The signed certification shall be made a part of the minutes of the Board or designated
committee, and a copy of the signed certification shall be retained in the borrower’s credit file. 
  

 11 

 LOAN REVIEW 
 11. (a) Within 60 days of the effective date of this ORDER the Board shall revise, adopt, and implement an independent loan review program that will provide for a periodic review of the Bank’s loan portfolio and
the identification and categorization for problem credits. At a minimum, the system shall provide for: 
 (i) prompt identification of loans
with credit weaknesses that warrant the special attention of management, including the name of the borrower, amount of the loan, reason why the loan warrants special attention; and assessment of the degree of risk that the loan will not be repaid
according to its terms: 
 (ii) action plans to reduce the Bank’s risk exposure from each identified relationship; 
 (iii) prompt identification of all outstanding balances and commitments attributable to each obligor identified under the requirements of Subparagraph
11(i), including outstanding balances and commitments attributable to related interests of such obligors, including the obligor of record, relationship to the primary obligor identified under Subparagraph 11(i), and an assessment of the risk
exposure from the aggregate relationship; 
 (iv) identification of trends affecting the quality of the loan portfolio, potential problem
areas, and action plans to reduce the Bank’s risk exposure; 
 (v) assessment of the overall quality of the loan portfolio; 

(vi) identification of credit and collateral documentation exceptions and an action plan to address the identified deficiencies; 
  

 12 

 (vii) identification and status of violations of laws or regulations with respect to the lending function
and an action plan to address the identified violations; 
 (viii) identification of loans that are not in conformance with the Bank’s
lending policy and an action plan to address the identified deficiencies; 
 (ix) identification of loans to directors, officers, principal
shareholders, and their related interests; 
 (x) an assessment of the ability of individual members of the lending staff to operate within
the framework of the Bank’s loan policy and applicable laws, rules, and regulations; and an action plan to address the identified deficiencies; and 
 (xi) a mechanism for reporting periodically, but in no event less than quarterly, the information developed in Subparagraphs 11(a)(i) through 11(a)(x) above to the Board and the audit committee. The report should also
describe the action(s) taken by management with respect to problem credits. 
 The Bank shall submit the program to the Supervisory
Authorities for review and comment. Within 30 days from receipt of any comment from the Supervisory Authorities, and after due consideration of any recommended changes, the Bank shall approve the program, which approval shall be recorded in the
minutes of the Board meeting. Thereafter, the Bank shall implement and fully comply with the program. Upon implementation, a copy of each report shall be submitted to the Board, as well as documentation of the actions taken by the Bank or
recommendations to the Board that address identified deficiencies in specific loan relationships or the Bank’s policies, procedures, strategies, or other elements of the Bank’s lending activities. Such reports and recommendations, as well
as any resulting determinations, shall be recorded and retained in the minutes of the meeting of the Board. 
  

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 LENDING AND COLLECTION POLICIES 
 12. (a) Within 90 days from the effective date of this ORDER, the Bank shall revise, adopt, and implement a written lending, underwriting and collection policy to
provide effective guidance and control over the Bank’s lending function, which policy shall include, at a minimum, revisions to address criticisms and recommendations enumerated on page 2 through 5 of the Report pertaining to the administration
of ADC loans as well as CRE lending and specific guidelines for placing loans on a nonaccrual basis. In addition, the Bank shall obtain adequate and current documentation for all loans in the Bank’s loan portfolio and adopt procedures for
leverage financing. Such policy and its implementation shall be in a form and manner acceptable to the Supervisory Authorities as determined at subsequent examinations and/or visitations. 
 (b) Within 30 days from the effective date of this ORDER, the Board shall adopt and implement a policy limiting the use of loan interest reserves. Such
policy shall confine the use of interest reserves to properly underwritten ADC loans where development or building plans have specific timetables that commence within a reasonable time of the loan’s approval and that include realistic
completion dates. Interest reserves shall be used only for payment of interest on ADC loans for projects that are progressing according to their timetables. Interest reserves may be supplemented only with the prior written approval of the Board or a
committee thereof, so long as the approval documents a prudent reason for the supplement. 
  

 14 

 REDUCE CONCENTRATIONS OF CREDIT 
 13. (a) Within 60 days from the effective date of this ORDER, the Bank shall perform a risk segmentation analysis with respect to concentrations of credit.
Concentrations should be stratified as the Board deems appropriate, but shall include concentrations identified by industry, geographic distribution, underlying collateral, direct or indirect extensions of credit to or for the benefit of any
borrowers dependent upon the performance of a single developer or builder, and other asset groups that are considered economically related. The Board should refer to the interagency guidance on Concentrations in Commercial Real Estate Lending,
Sound Risk Management Practices, for information regarding risk segmentation analysis. A copy of the analysis shall be provided to the Supervisory Authorities. The analysis shall be in a form and manner acceptable to the Supervisory Authorities
as determined at subsequent examinations and/or visitations. 
 (b) Within 90 days from the effective date of this ORDER, the Bank shall
adopt and submit to the Supervisory Authorities a plan to reduce the Bank’s concentration of credit in ADC and CRE loans. 
 PLAN
FOR EXPENSES AND PROFITABILITY 
 14. (a) Within 60 days from the effective date of this ORDER, the Bank shall formulate and fully implement a
written plan and a comprehensive budget for all categories of income and expense. The plan and budget required by this paragraph shall include formal goals and strategies, consistent with sound banking practices and taking into account the
Bank’s other written policies, to improve the Bank’s net interest margin, increase interest income, reduce discretionary expenses, control overhead, and improve 

  

 15 

 
and sustain earnings of the Bank. The plan shall include a projected balance sheet and a description of the operating assumptions that form the basis for and
adequately support major projected income and expense components. Thereafter, the Bank shall formulate such a plan and budget by November 30 of each subsequent year. The plan and budget required by Subparagraph 14(a) of this ORDER shall be
acceptable to the Supervisory Authorities as determined at subsequent examinations and/or visitations. 
 (b) Following the end of each
calendar quarter, the Board shall evaluate the Bank’s actual performance in relation to the plan and budget required by Subparagraph 14(a) of this ORDER and shall record the results of the evaluation, and any actions taken by the Bank, in the
minutes of the Board meeting at which such evaluation is undertaken. 
 VIOLATIONS OF LAW AND 
 CONTRAVENTIONS OF STATEMENTS OF POLICY 
 15.
Within 60 days from the effective date of this ORDER, the Bank shall eliminate and/or correct all violations of law, which are more fully set out on pages 13 through 17 of the Report. Within 60 days from the effective date of this ORDER, the Bank
shall also correct all contraventions of FDIC Statements of Policy and Interagency Guidance which are more fully set out on pages 17 and 18 of the Report. In addition, the Bank shall take all necessary steps to ensure future compliance with all
applicable laws, regulations, statements of policy, and regulatory guidance. 
 DISCLOSURE 
 16. Following the effective date of this ORDER, the Bank shall send to its shareholders or otherwise furnish a description of this ORDER in conjunction with the
Bank’s next shareholder communication and also in conjunction with its notice or proxy statement preceding the Bank’s next shareholder meeting. The description shall fully 

  

 16 

 
describe the ORDER in all material respects. The description and any accompanying communication, statement, or notice shall be sent to the FDIC, Division of
Supervision and Consumer Protection, Accounting and Securities Disclosure Section, 550 17th Street, N.W., Room F-6066, Washington, D.C. 20429 and to
the Commissioner, Georgia Department of Banking and Finance, 2990 Brandywine Road, Suite 200, Atlanta, Georgia 30341-5565, at least fifteen (15) days prior to dissemination to shareholders. Any changes requested to be made by the FDIC and
Commissioner shall be made prior to dissemination of the description, communication, notice, or statement. 
 PROGRESS REPORTS 

 17. Within 30 days of the end of the first calendar quarter following the effective date of this ORDER, and within 30 days of the end of each calendar
quarter thereafter, the Bank shall furnish written progress reports to the Supervisory Authorities detailing the form and manner of any actions taken to secure compliance with this ORDER and the results thereof. Such reports shall include a copy of
the Bank’s Report of Condition and the Bank’s Report of Income. Such reports may be discontinued when the corrections required by this ORDER have been accomplished and the Supervisory Authorities have released the Bank in writing from
making further reports. 
  

 17 

 This ORDER shall become effective immediately upon the date of its issuance. The provisions of this ORDER
shall remain effective and enforceable except to the extent that, and until such time as, any provisions of this ORDER shall have been modified, terminated, suspended, or set aside by the FDIC. Pursuant to delegated authority. 
 Dated at Atlanta, Georgia, this 24th day of April, 2009. 
  

	
	
	/s/ Mark S. Schmidt
	 Mark S. Schmidt
 Regional Director
 Atlanta Region
 Federal Deposit Insurance Corporation

 The Georgia Department of Banking and Finance (“Department”), having duly approved
the foregoing ORDER, and the Bank, through its Board, agree that the issuance of said ORDER by the FDIC shall be binding as between the Bank and the Georgia Commissioner of Banking and Finance to the same degree and to the same legal effect that
such ORDER would be binding if the Department had issued a separate ORDER that included and incorporated all of the provisions of the foregoing ORDER, pursuant to section 7-1-91 of the Official Code of Georgia Annotated, GA Code Ann. §
7-1-91(1985). 
 Dated this 24th of April, 2009. 
  

	
	
	/s/ Robert M. Braswell
	 Robert M. Braswell
 Commissioner
 Department of Banking and Finance
 State of Georgia

  

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