Document:

Description of Mosaic Management Incentive Program

 Exhibit 10.iii.d. 

Pursuant to the Management Incentive Plan (“MIP”) of The Mosaic Company (the “Company”), key managers of the Company and its
subsidiaries, including executive officers, are eligible for annual cash incentive compensation based upon the attainment of business performance goals that are pre-established by the Board of Directors of the Company, upon the recommendation of the
Compensation Committee or a subcommittee of outside directors. Attainment of the performance measures determines the amount of the incentive payment for executive officers and all or a portion of the amount of the incentive payment for other
participants. Threshold, target and maximum payout levels are set based upon the extent to which the specified performance measures are attained. The performance measures for the fiscal year ending May 31, 2011 (“Fiscal 2011”) are
based on financial results, operational excellence measures and achievement of strategic priorities. 
 For executive officers, the weighting of
the performance measures is 50% for the financial results measure, 25% for the operational excellence measure and 25% for the strategic priorities measures. The financial results measure is based on consolidated operating earnings. The operational
excellence measure is based on controllable operating costs per tonne of products sold, based on the level of cost of goods sold at specified levels of sales tonnes plus adjusted selling, general and administrative expenses and minus the costs of
purchased commodities, income-based royalties and taxes and costs paid by third parties. Adjusted selling, general and administrative expenses are selling, general and administrative expenses exclusive of incentive, stock option and other employee
benefit expenses. The strategic priorities measures include both a safety measure and an adjusted selling, general and administrative expense measure, each with an overall weighting of 12.5%. The safety measure is based on two equally-weighted
factors: (1) the OSHA recordable injury frequency rate for employees and contractors and (2) an internally-developed safety index that is intended to measure the severity of injuries as reflected by lost time, lost days, fatalities and number of
injuries. The performance measures for some categories of other employees include different factors that are more specific to their roles for the Company. 

The plan has a minimum level for each performance measure at which payments begin under that measure. In addition, the plan has a funding condition, or
threshold, for the payout of any performance measure, requiring that consolidated operating earnings for the fiscal year equal or exceed thirty-five percent of target operating earnings. The maximum payout percent for Management Incentive Plan
awards for Fiscal 2011 is 250% of the target award.Summary of Board of Director Compensation of Mosaic

 Exhibit 10.iii.f. 

THE MOSAIC COMPANY 

SUMMARY OF BOARD OF DIRECTOR COMPENSATION 

Non-Employee Directors 

The policy adopted by the Board of Directors (the “Board”) of The Mosaic Company (“Mosaic”) for fiscal 2010 provides
for cash compensation to non-employee directors as follows: 
  

	 	•	 	 an annual cash retainer of $170,000 to the Chairman of the Board and $85,000 to each other director; 

 

	 	•	 	 an annual cash retainer of $20,000 to the Chairman of the Audit Committee and $10,000 to other members of this Committee; 

 

	 	•	 	 an annual cash retainer of $15,000 to the Chairman of the Compensation Committee and $5,000 to other members of this Committee;

  

	 	•	 	 an annual cash retainer of $10,000 to each director who serves as Chair of the Corporate Governance and Nominating Committee, Environmental, Health and
Safety Committee and Cargill Transactions Subcommittee of the Corporate Governance and Nominating Committee; and 

  

	 	•	 	 an annual cash stipend of $25,000 to the Chair of a special committee comprised of all of the independent directors on the Board to consider governance
matters relating to the expiration of the Amended and Restated Investor Rights Agreement Mosaic entered into with Cargill on August 17, 2006. 

In addition, the policy in effect during fiscal 2010 provided for an annual grant of restricted stock units providing grants of Mosaic
common stock, valued at $170,000 for the Chairman of the Board and $85,000 for each other director. 
 Mosaic does not pay
meeting fees or provide any perquisites to our directors. Mosaic does reimburse directors for travel and business expenses incurred in connection with meeting attendance. 

Employee Directors 
 Directors who are
employees receive no director fees or other separate compensation for service on the Board or any committee of the Board for the period during which they are employees.Stipulation to the Issuance of a Consent Order

 Exhibit 10.1 

FEDERAL DEPOSIT INSURANCE CORPORATION 

WASHINGTON, D.C. 
  

					
	 	 	)	  	
	In the Matter of	 	)	  	STIPULATION
		 	)	  	TO THE ISSUANCE OF A
	METRO UNITED BANK	 	)	  	CONSENT ORDER
	SAN DIEGO, CALIFORNIA	 	)	  	
		 	)	  	FDIC 10-379b
		 	)	  	
	(Insured State Nonmember Bank)	 	)	  	
	 	 	)	  	

 Subject to the acceptance of this STIPULATION TO THE ISSUANCE OF A CONSENT ORDER
(“STIPULATION”) by the Federal Deposit Insurance Corporation (“FDIC”) and the California Department of Financial Institutions (“CDFI”) , it is hereby stipulated and agreed by and between a representative of the Legal
Division of the FDIC, a representative of the CDFI, and Metro United Bank, San Diego, California, (“Bank”) as follows: 

1. The Bank has been advised of its right to the issuance and service of 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) of the Federal Deposit Insurance Act (“FDI
Act”), 12 U.S.C. § 1818(b) and the Bank has waived those rights. 
 2. The Bank, solely for the purpose of this
proceeding and without admitting or denying any of the charges of unsafe or unsound banking practices and violations of law and/or regulations, hereby consents and agrees to the issuance of a CONSENT ORDER (“ORDER”) by the FDIC and the
CDFI. The Bank further stipulates and agrees that such ORDER shall be deemed to be a final ORDER and that said ORDER shall become effective upon its issuance by the FDIC and the CDFI and shall be fully enforceable by the FDIC pursuant to the
provisions of section 8(i) of the Act, 12 U.S.C. § 1818(i), and by the CDFI pursuant to the provisions of State law, subject only to the conditions set forth in paragraph 3 of this STIPULATION. 

 

 1 

 3. In the event the FDIC and the CDFI accept this STIPULATION and issue the ORDER, it is
agreed that no action will be taken by the FDIC or the CDFI to enforce said ORDER in a United States District Court, or the appropriate court of the State of California, unless the Bank or any institution-affiliated party has violated or is about to
violate any provision of the ORDER. 
 4. Solely for the purpose of this proceeding, the Bank hereby waives: 

 

	 	(a)	The issuance and service of a NOTICE OF CHARGES AND OF HEARING; 

  

	 	(b)	All defenses to the alleged charges in the NOTICE OF CHARGES AND OF HEARING; 

 

	 	(c)	A hearing for the purpose of taking evidence on such alleged charges; 

  

	 	(d)	The filing of PROPOSED FINDINGS OF FACT AND CONCLUSIONS OF LAW; 

  

	 	(e)	A RECOMMENDED DECISION of an Administrative Law Judge; 

  

	 	(f)	The filing of exceptions and briefs with respect to such RECOMMENDED DECISION; and 

 

	 	(g)	Review of the ORDER by any Federal court. 

  

 2 

 Dated this
22nd day of July, 2010. 

 

									
	 FEDERAL DEPOSIT INSURANCE

CORPORATION
 LEGAL DIVISION
	 		 	 METRO UNITED BANK

SAN DIEGO, CALIFORNIA

					
		 		 		 	BY:	 	 /s/    Cary Ching

	BY:	 	 /s/    Martin H. Silver
	 		 		 	Cary Ching
		 	 Martin H. Silver
 Senior
Attorney
	 		 		 	
		 		 		 	BY:	 	 /s/    May P. Chu

		 		 		 		 	May P. Chu
				
	CALIFORNIA DEPARTMENT OF FINANCIAL INSTITUTIONS	 		 	BY:	 	 /s/    Peter Darwin Chu

		 		 		 		 	Peter Darwin Chu
					
	BY:	 	 /s/    Scott Cameron
	 		 	BY:	 	 /s/    Shirley Clayton

		 	Scott Cameron	 		 		 	Shirley Clayton
		 	Chief Examiner	 		 		 	
					
		 		 		 	BY:	 	 /s/    George M. Lee

		 		 		 		 	George M. Lee
					
		 		 		 	BY:	 	 /s/    David Tai

		 		 		 		 	David Tai

  

 3Consent Order

 Exhibit 10.2 

FEDERAL DEPOSIT INSURANCE CORPORATION 

WASHINGTON, D.C. 
  

					
	 	 	)	  	
	In the Matter of	 	)	  	CONSENT ORDER
		 	)	  	
	METRO UNITED BANK	 	)	  	
	SAN DIEGO, CALIFORNIA	 	)	  	FDIC 10-379b
		 	)	  	
	(Insured State Nonmember Bank)	 	)	  	
	 	 	)	  	

 The Federal Deposit Insurance Corporation (“FDIC”) is the appropriate Federal banking
agency for Metro United Bank, San Diego, California (“Bank”), under Section 3q of the Federal Deposit Insurance Act (“FDI Act”), 12 U.S.C. § 1813(q). 

The California Department of Financial Institutions (“CDFI”) is the appropriate state banking agency for the Bank under
Division 1 (commencing with Section 99) of the California Financial Code. 
 The Bank, by and through its duly elected and
acting Board of Directors, has executed a “STIPULATION TO THE ISSUANCE OF A CONSENT ORDER” (“STIPULATION”), dated July 22, 2010, that is accepted by the FDIC and the CDFI. With the STIPULATION, the Bank has consented,
without admitting or denying any charges of unsafe or unsound banking practices or violations of law or regulation pertaining to capital adequacy, asset quality, management, and earnings, to the issuance of this CONSENT ORDER (“ORDER”) by
the FDIC and the CDFI pursuant to Section 8(b)(1) of the FDI Act, 12 U.S.C. § 1818(b)(1), and Section 1913 of the California Financial Code. 
  

 1 

 Having determined that the requirements for issuance of an order under Section 8(b) of
the FDI Act, 12 U.S.C. § 1818(b) and Section 1913 of the California Financial Code, have been satisfied, the FDIC and the CDFI hereby order that: 

MANAGEMENT – BOARD SUPERVISION 

1. Within 30 days after the effective date of this ORDER, the Bank’s board of directors shall increase its participation in the
affairs of the Bank by assuming full responsibility for the approval of the Bank’s policies and objectives and for the supervision of the Bank’s management, including all the Bank’s activities. The Bank’s board of directors’
participation in the Bank’s affairs shall include, at a minimum, regularly scheduled meetings in which the following areas shall be reviewed and approved by the board: reports of income and expenses; new, overdue, renewed, insider, charged-off,
delinquent, nonaccrued, and recovered loans; investment activities; operating policies; and individual committee actions. The Bank’s board of directors’ minutes shall document the board’s reviews and approvals, including the names of
any dissenting directors. 
  

 2 

 MANAGEMENT – SPECIFIC POSITIONS 

2. (a) Within 90 days after the effective date of this ORDER, the Bank shall assess and retain qualified management. At a minimum, such
management shall include: 
  

	 	(1)	A chief executive officer with a demonstrated ability in managing a bank of comparable size and shall have prior experience in upgrading a low quality loan portfolio;
and 

  

	 	(2)	A senior lending officer with an appropriate level of lending, collection, and loan supervision experience for the type and quality of the Bank’s loan portfolio;
and 

  

	 	(3)	A chief financial officer with a demonstrated ability in managing a bank of comparable size and shall have prior experience in addressing safety and soundness issues
and financial problems within the institution; 

  

	 	(4)	Such persons shall be provided the necessary written authority to implement the provisions of this ORDER. 

The qualifications of management shall be assessed on its ability to: 
  

	 	(1)	Comply with the requirements of this ORDER; 

  

	 	(2)	Operate the Bank in a safe and sound manner; 

  

	 	(3)	Comply with applicable laws and regulations; and 

  

 3 

	 	(4)	Restore all aspects of the Bank to a safe and sound condition, including asset quality, capital adequacy, earnings, management effectiveness, and liquidity.

 (b) While this ORDER is in effect, the Bank shall notify the FDIC Regional Director, Dallas Regional Office
(“Regional Director”) and the CDFI Commissioner (“Commissioner”) in writing of any changes in any of the Bank’s directors or Senior Executive Officers. For purposes of this ORDER, “Senior Executive Officer” is
defined as in Section 303.101(b) of the FDIC’s Rules and Regulations, 12 C.F.R. § 303.101(b). Prior to the addition of any individual to the Bank’s board of directors or the employment of any individual as a Senior Executive
Officer, the Bank shall comply with the requirements of Section 32 of the FDI Act, 12 U.S.C. § 1831i, and Subpart F of Part 303 of the FDIC’s Rules and Regulations, 12 C.F.R. §§ 303.100 -303.103. 

CLASSIFIED ASSETS - CHARGE-OFF AND PLAN FOR REDUCTION 

3. (a) Within 30 days after the effective date of this ORDER, the Bank shall, to the extent that it has not previously done so, eliminate
from its books, by charge-off or collection, all assets or portions of assets classified Loss by the FDIC or the CDFI as a result of its examination of the Bank as of March 8, 2010. Elimination or reduction of these assets through proceeds of
loans made by the Bank shall not be considered “collection” for the purpose of this paragraph. 
  

 4 

 (b) Within 60 days after the effective date of this ORDER, the Bank shall submit a written
plan to the Regional Director and the Commissioner to reduce the remaining assets classified Doubtful and Substandard as of March 8, 2010 (“Classified Assets Reduction Plan”). The Classified Assets Reduction Plan shall address each
asset so classified with a balance of $1,000,000 or greater and provide the following: 
  

	 	(1)	The name under which the asset is carried on the books of the Bank; 

  

	 	(2)	Type of asset; 

  

	 	(3)	Actions to be taken in order to reduce the classified asset; and 

  

	 	(4)	Timeframes for accomplishing the proposed actions. 

The Classified Assets Reduction Plan shall also include, at a minimum: 
  

	 	(1)	Review the financial position of each such borrower, including the source of repayment, repayment ability, and alternate repayment sources; and

  

	 	(2)	Evaluate the available collateral for each such credit, including possible actions to improve the Bank’s collateral position. 

In addition, the Bank’s Classified Assets Reduction Plan shall contain a schedule detailing the projected reduction of total
classified assets on a quarterly basis. Further, the plan shall contain a provision requiring the submission of monthly progress reports to the Bank’s board of directors and a provision mandating a review by the Bank’s board of directors.

  

 5 

 (c) The Bank shall present the Classified Assets Reduction Plan to the Regional Director and
the Commissioner for review. Within 30 days after the Regional Director’s and the Commissioner’s response, the Classified Assets Reduction Plan, including any requested modifications or amendments shall be adopted by the Bank’s board
of directors which approval shall be recorded in the minutes of the meeting of the Bank’s board of directors. The Bank shall then immediately initiate measures detailed in the Classified Assets Reduction Plan to the extent such measures have
not been initiated. 
 (d) For purposes of the Classified Assets Reduction Plan, the reduction of adversely classified assets as
of March 8, 2010 shall be detailed using quarterly targets expressed as a percentage of the Bank’s Tier 1 Capital plus the Bank’s Allowance for Loan and Lease Losses (“ALLL”) and may be accomplished by: 

 

	 	(1)	Charge-off; 

  

	 	(2)	Collection; 

  

	 	(3)	Sufficient improvement in the quality of adversely classified assets so as to warrant removing any adverse classification, as determined by the FDIC or the CDFI; or

  

	 	(4)	Increase in the Bank’s Tier 1 Capital. 

(e) While this ORDER is in effect, the Bank shall eliminate from its books, by charge-off or collection, all assets or portions of assets
classified Loss as determined at any future examination conducted by the FDIC or the CDFI. 
  

 6 

 RESTRICTION ON ADVANCES TO CLASSIFIED BORROWERS 

4. (a) While this ORDER is in effect, the Bank shall not extend, directly or indirectly, any additional credit to or for the benefit of
any borrower whose existing credit has been classified Loss by the FDIC or the CDFI as the result of its examination of the Bank, either in whole or in part, and is uncollected, or to any borrower who is already obligated in any manner to the Bank
on any extension of credit, including any portion thereof, that has been charged off the books of the Bank and remains uncollected. The requirements of this paragraph shall not prohibit the Bank from renewing credit already extended to a borrower
after full collection, in cash, of interest due from the borrower. 
 (b) While this ORDER is in effect, the Bank shall not
extend, directly or indirectly, any additional credit to or for the benefit of any borrower whose extension of credit is classified Doubtful and/or Substandard by the FDIC or the CDFI as the result of its examination of the Bank, either in whole or
in part, and is uncollected, unless the Bank’s board of directors has signed a detailed written statement giving reasons why failure to extend such credit would be detrimental to the best interests of the Bank. The statement shall be placed in
the appropriate loan file and included in the minutes of the applicable Bank’s board of directors’ meeting. 
  

 7 

 CONCENTRATIONS – PLAN FOR REDUCTION 

5. (a) Within 60 days after the effective date of this ORDER, the Bank shall formulate and submit to the Regional Director and the
Commissioner for review and comment a written plan to reduce the total commercial real estate concentration of credit identified in the Report of Examination as of March 8, 2010 (“Concentration Reduction Plan”). The Concentration
Reduction Plan shall prohibit any additional advances that would increase the concentrations or create new concentrations and shall include, but not be limited to: 
  

	 	(1)	Dollar levels to which the Bank shall reduce each concentration; and 

  

	 	(2)	Provisions for the submission of written progress reports to the Bank’s board of directors for review and notation in minutes of the each regular board meeting of
the Bank’s board of directors. 

 (b) For purposes of the Concentration Reduction Plan, “reduce”
means to: 
  

	 	(1)	Charge-off; 

  

	 	(2)	Collect; or 

  

	 	(3)	Increase Tier 1 Capital. 

 (c)
After the Regional Director and the Commissioner have responded to the Concentration Reduction Plan, the Bank’s board of directors shall adopt the plan as amended or modified by the Regional Director and the Commissioner. The Concentration
Reduction Plan shall be implemented immediately to the extent that the provisions of the plan are not already in effect at the Bank. 
  

 8 

 ALLOWANCE FOR LOAN AND LEASE LOSSES 

6. (a) The Bank shall ensure provisions to the ALLL are calculated in accordance with generally accepted accounting standards and ALLL
supervisory guidance. The bank shall maintain a reasonable ALLL. Prior to the end of each calendar quarter, the Bank’s board of directors shall review the adequacy of the Bank’s ALLL. Such quarterly reviews shall include, at a minimum, the
Bank’s loan loss experience, an estimate of potential loss exposure in the portfolio, trends of delinquent and non-accrual loans and prevailing and prospective economic conditions. The minutes of the Bank’s board of directors’
meetings at which such reviews are undertaken shall include complete details of the reviews and the resulting recommended increases in the ALLL. 

(b) Within 30 days after the effective date of this ORDER, the Bank shall review Consolidated Reports of Condition and Income filed with
the FDIC and ensure such reports contain a reasonable ALLL. Reports filed after the effective date of this ORDER shall also accurately reflect the financial condition of the Bank as of the reporting date. 

(c) The Bank must use Financial Accounting Standards Board Statements Numbers 5 and 114 for determining the Bank’s ALLL adequacy.
Provisions for loan losses must be based on the inherent risk in the Bank’s loan portfolio. The directorate must document with written reasons any decision not to require provisions for loan losses in the board minutes. Such written
documentation by the board should be done on at least a quarterly basis. 
  

 9 

 CAPITAL PLAN 

7. (a) Within 90 days after the effective date of this ORDER, the Bank shall submit a written capital plan (“Capital Plan”) to
the Regional Director and the Commissioner to increase its Tier 1 Capital to nine (9) percent of the Bank’s Average Total Assets. The capital plan shall also require the Bank, after establishing an ALLL, to achieve and maintain its Tier 1
Leverage Capital ratio equal to, or greater than, nine (9) percent of the Bank’s Average Total Assets; and to achieve and maintain its Total Risk-Based Capital ratio equal to, or greater than, thirteen (13) percent of the Bank’s
Total Risk Weighted Assets by no later than December 31, 2010. 
 (b) After the Regional Director and the Commissioner
respond to the Capital Plan, the Bank’s board of directors shall adopt the capital plan, including any modifications or amendments requested by the Regional Director and the Commissioner. Thereafter, the Bank shall immediately initiate measures
detailed in the Capital Plan, to the extent such measures have not previously been initiated, to effect compliance with the plan. 

(c) Such increase in Tier 1 Capital necessary to meet the capital ratios required by this ORDER may be accomplished by: 

 

	 	(1)	The sale of securities in the form of common stock; or 

  

	 	(2)	The direct contribution of cash subsequent to March 8, 2010, by the directors and/or shareholders of the Bank or by the Bank’s holding company; or

  

	 	(3)	Receipt of an income tax refund or the capitalization subsequent to March 8, 2010, of a bona fide tax refund certified as being accurate by a certified public
accounting firm; or 

  

 10 

	 	(4)	Any other method approved by the Regional Director and the Commissioner. 

(d) If any such capital ratios are less than required by the ORDER, as determined as of the date of any Report of Condition and Income or
at an examination by the FDIC or the CDFI, the Bank shall, within 30 days after receipt of a written notice of the capital deficiency from the Regional Director or the Commissioner, present to the Regional Director and the Commissioner a new Capital
Plan to increase the Bank’s Tier 1 Capital of the Bank or to take such other measures to bring all the capital ratios to the percentages required by this ORDER. After the Regional Director and the Commissioner respond to the new Capital Plan,
the Bank’s board of directors shall adopt the new Capital Plan, including any modifications or amendments requested by the Regional Director and the Commissioner. 

(e) Thereafter, the Bank shall immediately initiate measures detailed in the plan, to the extent such measures have not previously been
initiated, to increase its Tier 1 Capital by an amount sufficient to bring all the Bank’s capital ratios to the percentages required by this ORDER within 60 days after the Regional Director and the Commissioner respond to the new capital plan.

 (f) In addition, the Bank shall comply with the FDIC’s Statement of Policy on Risk-Based Capital found in Appendix A to
Part 325 of the FDIC Rules and Regulations, 12 C.F.R. Part 325, App. A. 
 (g) For purposes of this ORDER, all terms relating to
capital shall be calculated according to the methodology set forth in Part 325 of the FDIC’s Rules and Regulations, 12 C.F.R. Part 325. 
  

 11 

 (h) In addition, the Capital Plan must include a Contingency Plan in the event that the Bank
has failed to maintain the minimum capital ratios required; failed to submit an acceptable Capital Plan as required by this subparagraph; or failed to implement or adhere to a Capital Plan to which the FDIC and the CDFI have taken no written
objection. Said Contingency Plan shall include a plan to sell or merge the Bank. The Bank shall implement the Contingency Plan upon written notice from the FDIC or the CDFI. 

DIVIDEND RESTRICTION 

8. As of the effective date of this ORDER, the Bank shall not declare or pay any cash dividend without the prior written consent of the
Regional Director and the Commissioner. 
 BUDGET AND PROFIT PLAN 

9. (a) Within 60 days after the effective date of this ORDER, the Bank shall formulate and submit to the Regional Director and the
Commissioner for review and comment a written Profit Plan and a realistic, comprehensive Budget for all categories of income and expense for calendar year 2010. The Profit Plan and Budget required by this paragraph shall contain formal goals and
strategies, be consistent with sound banking practices, reduce discretionary expenses, improve the Bank’s overall earnings and net interest income, and shall contain a description of the operating assumptions that form the basis for major
projected income and expense components. 
  

 12 

 (b) The written Profit Plan shall address, at a minimum: 

 

	 	(1)	An analysis of the Bank’s pricing structure; and 

  

	 	(2)	A recommendation for reducing the Bank’s cost of funds. 

(c) Within 30 days after the end of each calendar quarter following completion of the Profit Plan and Budget required by this paragraph,
the Bank’s board of directors shall evaluate the Bank’s actual performance in relation to the written Profit Plan and Budget, record the results of the evaluation, and note any actions taken by the Bank in the minutes of the board of
directors’ meeting when such evaluation is undertaken. 
 (d) A written Profit Plan and Budget shall be prepared for each
calendar year for which this ORDER is in effect and shall be submitted to the Regional Director and the Commissioner for review and comment within 30 days after the end of each year. Within 30 days after receipt of all such comments from the
Regional Director and the Commissioner and after adoption of any recommended changes, the Bank shall approve the written Profit Plan and Budget, which approval shall be recorded in the minutes of a board of directors’ meeting. Thereafter, the
Bank shall implement and follow the Profit Plan and Budget. 
 LIQUIDITY AND INTEREST RATE RISK MANAGEMENT

 10. (a) Within 60 days after the effective date of this ORDER, the Bank shall develop and submit to the Regional
Director and the Commissioner for review and comment a written plan addressing liquidity, asset/liability management, and interest rate risk management. Annually thereafter, while this ORDER is in effect, the Bank shall review the plans for adequacy
and, based upon such review, shall make necessary revisions to the plan to maintain adequate liquidity, contingency funding plans, and interest rate risk management. The initial plan shall include, at a minimum, provisions: 

 

	 	(1)	Establishing a minimum liquidity ratio and defining how the ratio is to be calculated; 

 

 13 

	 	(2)	Establishing contingency plans in accordance with FIL-84-2008 and FIL-13-2010 by identifying alternative courses of action designed to meet the Bank’s liquidity
needs; 

  

	 	(3)	Establishing provisions to maintain a minimum level of liquid assets to total deposits and borrowings. 

 

	 	(4)	Establishing a reasonable range for its net non-core funding ratio as computed in the Uniform Bank Performance Report; 

 

	 	(5)	Identifying the source and use of borrowed and/or volatile funds; 

  

	 	(6)	Establishing procedures for managing the Bank’s sensitivity to interest rate risk which comply with FDIC Financial Institution Letters 2-2010 and 52-1996, the
Joint Agency Statement of Policy on Interest Rate Risk. 

 (b) Within 30 days after the receipt of all such
comments from the Regional Director and the Commissioner, and after revising the plan as necessary, the Bank shall adopt the plan, which adoption shall be recorded in the minutes of a board of directors’ meeting. Thereafter, the Bank shall
implement the plan. 
  

 14 

 CORRECTION OF VIOLATIONS 

11. (a) Within 30 days after the effective date of this ORDER, the Bank shall eliminate and/or correct all violations of law and
regulation noted in the Report of Examination with the exception of those violations referenced in provision 12 below. 
 (b)
Within 60 days after the effective date of this ORDER, the Bank shall implement procedures to ensure future compliance with all applicable laws and regulations. 

(c) Within 30 days after the effective date of this ORDER, the Bank shall address any contraventions of policy noted in the Report of
Examination. 
 BANK SECRECY ACT 

12. (a) Within 90 days from the effective date of this ORDER, the Bank shall complete and implement any and all enhancements to its
system of internal controls necessary to ensure full compliance with BSA (“BSA Internal Controls”) and correct the violation listed in the Report of Examination, taking into consideration its size and risk profile. At a minimum, such
system of BSA Internal Controls shall include policies, procedures, and processes addressing the areas set forth in paragraph (b) below. 

(b) Provide for a system of internal controls sufficient to comply in all material respects with the BSA and its implementing rules and
regulations and establish a plan for implementing such internal controls. The system of internal controls shall provide, at a minimum: 
  

	 	(1)	Procedures for conducting a risk-based assessment of the Bank’s customer base to identify the categories of customers whose transactions and banking activities are
routine and usual; and determine the appropriate level of enhanced due diligence necessary for those categories of customers whose transactions and banking activities are not routine and/or usual (“high-risk accounts”);

  

 15 

	 	(2)	Policies and procedures with respect to high-risk accounts and customers identified through the risk assessment conducted pursuant to paragraph 1(a)(1), including the
adoption of adequate methods for conducting enhanced due diligence on high-risk accounts and customers at account opening and on an ongoing basis, and for monitoring high-risk client relationships on a transaction basis, as well as by account and
customer; 

  

	 	(3)	Policies, procedures, and systems for identifying, evaluating, monitoring, investigating, and reporting suspicious activity in the Bank’s products, accounts,
customers, services, and geographic areas, including: 

  

	 	a.	Establishment of meaningful thresholds for identifying accounts and customers for further monitoring, review, and analyses; 

 

	 	b.	Periodic testing and monitoring of such thresholds for their appropriateness to the Bank’s products, customers, accounts, services, and geographic areas;

  

 16 

	 	c.	Review of existing systems to ensure adequate referral of information about potentially suspicious activity through appropriate levels of management, including a policy
for determining action to be taken in the event of multiple filings of Suspicious Activity Reports (“SARs”) on the same customer, or in the event a correspondent or other customer fails to provide due diligence information. Such procedures
shall describe the circumstances under which an account should be closed and the processes and procedures to be followed in doing so; 

  

	 	d.	Procedures and/or systems for each subsidiary and business area of the Bank to produce periodic reports designed to identify unusual or suspicious activity, to monitor
and evaluate unusual or suspicious activity, and to maintain accurate information needed to produce these reports with the following features: 

  

	 	i.	The Bank’s procedures and/or systems should be able to identify related accounts, countries of origin, location of the customer’s businesses and residences to
evaluate patterns of activity; and 

  

	 	ii.	The periodic reports should cover a broad range of time frames, including individual days, a number of days, and a number of months, as appropriate, and should
segregate transactions that pose a greater than normal risk for non-compliance with the BSA; 

  

 17 

	 	e.	Documentation of management’s decisions to file or not to file an SAR; and 

 

	 	f.	Systems to ensure the timely, accurate, and complete filing of required SARs and any other similar or related reports required by law. 

BRANCHING 

13. During the life of this ORDER, the Bank shall not establish any new branches or other offices of the Bank without the prior
written consent of the Regional Director and the Commissioner. 
 COMPLIANCE COMMITTEE 

14. Within 30 days after the effective date of this ORDER, the Bank’s board of directors shall establish a committee of the board of
directors charged with the responsibility of ensuring that the Bank complies with the provisions of this ORDER. The committee shall report to the entire board of directors of the Bank at each regular board meeting, and a copy of the report and any
discussion related to the report or the ORDER shall be included in the minutes of the Bank’s board of directors’ meeting. The establishment of this committee shall not diminish the responsibility or liability of the entire board of
directors of the Bank to ensure compliance with the provisions of this ORDER. 
  

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 SHAREHOLDER NOTIFICATION 

15. After the effective date of this ORDER, the Bank shall send a copy of this ORDER, or otherwise furnish a description of this ORDER,
to its shareholders (1) in conjunction with the Bank’s next shareholder communication, and also (2) in conjunction with its notice or proxy statement preceding the Bank’s next shareholder meeting. The description shall fully
describe the ORDER in all material respects. The description and any accompanying communication, statement, or notice shall be sent to the FDIC Accounting and Securities Disclosure Section, Washington, D.C. 20429, for review at least 20 days prior
to dissemination to shareholders. Any changes requested by the FDIC shall be made prior to dissemination of the description, communication, notice, or statement. 

PROGRESS REPORTS 

16. Within 30 days after the end of each calendar quarter following the effective date of this ORDER, the Bank shall furnish to the
Regional Director and the Commissioner written progress reports signed by each member of the Bank’s board of directors, detailing the actions taken to secure compliance with the ORDER and the results thereof. Such reports may be discontinued
when the corrections required by this ORDER have been accomplished and the Regional Director and the Commissioner have released, in writing, the Bank from making further reports. 

The provisions of this ORDER shall not bar, stop, or otherwise prevent the FDIC, the CDFI, or any other federal or state agency or
department from taking any other action against the Bank or any of the Bank’s current or former institution affiliated parties. 
  

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 The provisions of this ORDER shall be binding upon the Bank, its institution affiliated
parties and any successors and assigns thereof. 
 The provisions of this ORDER shall remain effective and enforceable except to
the extent that and until such time as any provision has been modified, terminated, suspended or set aside by the FDIC and the CDFI. 

This ORDER shall be effective on the date of issuance. 

Issued pursuant to delegated authority this 22nd day of July, 2010. 

 

	
	 /s/ Kristie K. Elmquist

	Kristie K. Elmquist
	Acting Regional Director
	Dallas Region
	Division of Supervision and Consumer Protection
	Federal Deposit Insurance Corporation

  

 20 

	
	 /s/ Scott Cameron

	Scott Cameron
	Chief Examiner
	California Department of Financial Institutions

  

 21

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