Document:

RESTRICTED STOCK AGREEMENT

 EXHIBIT 10.5 
 RESTRICTED STOCK AWARDS 
 FOR NAMED EXECUTIVE OFFICERS 
  

					
	  	  	AWARD DATE	  	SHARES AWARDED
	 John P. McGrath
	  	2/11/08	  	4,000

 Employee 
 You have been
granted a Restricted Stock Award for              shares of Common Stock of the Company, subject to the terms and conditions (i) in the Company’s 2007 Stock Incentive Plan,
as amended from time to time (the “Plan”), and (ii) as set forth in Exhibit A, attached hereto and made a part hereof (together with this letter, the “Agreement”), as follows: 
  

			
	 Date of Agreement/ Grant:
	  	[date of grant]
	 Restricted Shares Granted:
	  	[number of shares granted]
	 Expiration Date:
	  	[to be determined]
	 Vesting Schedule:
	  	As defined in Exhibit A
		
		  	            on            
		
		  	            on            
		
		  	            on            
		
		  	            on            

 Please indicate your acceptance by executing two (2) original copies of this Agreement and returning one

	(1)	original copy by U.S. Mail to Cindy Freeze. 

 Very truly yours, 
 Martin L. Vaughan, III 
 By my signature below, I hereby acknowledge receipt of this Award on the date shown above, which has been issued to me under the terms and conditions of the Plan. I further acknowledge receipt of the copy of the Plan
and agree to conform to all of the terms and conditions of the Award and the Plan. 
  

							
	 Signature:
	 	  
	  	Date:	  	  

		 	Grantee’s Name	  		  	

 Note: If there are any discrepancies in the name or address shown above, please make the appropriate corrections
on this form. 
  

 2 

 EXHIBIT A 
 TERMS AND CONDITIONS 
 RESTRICTED STOCK AGREEMENT 
 FOR EXECUTIVE GROUP 
 1.    Time and Operational Vesting of Restricted Stock. Except as provided in these Terms and Conditions, the Restricted Stock shall vest and become nonforfeitable in accordance with the Vesting Schedule for each
full year, up to a total of five (5) full years that the Employee continues to be employed by the Company after the date of this Agreement, with the first vesting date being for 25% of the grant two (2) years after the date of grant and an
additional 25% each year thereafter, subject to the additional qualifications, applied on each such vesting date, based on Company’s operations described below. The period from the date hereof until the shares of Restricted Stock would have
become 100% vested if time were the only criterion shall be referred to as the “Restricted Period.” 
 This award of Restricted
Stock to employee is intended to encourage Employee to cause the operating earnings of Company to grow by the Target each calendar year. At each of the vesting dates set forth in the Vesting Schedule, Restricted Stock will be eligible to vest only
if the Employee continues to be fully employed by the Company and the Company achieves the Minimum in the calendar year preceding such vesting date. 
 If such conditions are met, then the eligible shares shall vest as follows: 
  

			
	 PERFORMANCE
	  	VESTING PERCENTAGE
	 Target achieved in one or both preceding calendar years
	  	100%
	 Target not achieved in either of preceding calendar years
	  	At discretion of Human Resources &     Compensation Committee

 Minimum means for any calendar year of the Company such percentage of budgeted profit, as approved
by the Human Resources & Compensation Committee, being attained. 
 Target means for any calendar year the percentage operating
earnings growth approved by the Human Resources & Compensation Committee, with reference to the estimated prospects of the Company’s Industry Peers (as defined below) for that calendar year. 
 In all events the Human Resources & Compensation Committee reserves authority to increase or decrease any such vesting by 20% of the eligible
shares to vest on such date. Without limitation, one factor which may be considered in such exercise of discretion will be total shareholder return (“TSR”) versus the total shareholder returns of the peer group (“Peers”). The
Peers shall be comprised from two distinct groups, one from the Company’s competitors for SEC and Human Resources & Compensation Committee purposes (“Industry Peers”) and the other from the S & P 600, with Industry Peers
accounting for 2/3 of the weight and the S & P 600 accounting for 1/3 of the weight of the Peers measurements. 
 2.    Issuance of Certificates. The stock certificate(s) evidencing the Restricted Stock shall be issued and registered on the Company’s books and records in the name of the
Employee as soon as practicable following the date of this Agreement. The Company shall retain control of each award representing the Restricted Stock until such time as the Restricted Stock becomes vested in accordance with the terms herein.
Company is granted a power of attorney, coupled with an interest, to administer these shares in accordance with the terms of this award and the 2007 Stock Incentive Plan (Plan). 
 Upon the written request of the Employee following the vesting of any portion of the shares of Restricted Stock prior to any event of forfeiture
hereunder, the Company will cause a stock certificate to be issued, without 

  

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such restrictive legend, with respect to the vested portion of the shares of the Restricted Stock registered on the Company’s books and records in the
name of the Employee. Following the expiration of the Restricted Period, the Company will cause a stock certificate to be issued for any shares of Restricted Stock that have vested prior to any event of forfeiture hereunder and have not been
reissued without the restrictions described above. 
 3.    Transferability. During the Restricted Period, the
Employee shall not sell, assign, transfer, pledge, exchange, hypothecate, or otherwise dispose of unvested Restricted Stock. Upon receipt by the Employee of stock certificate(s) representing vested shares without a restrictive legend pursuant to the
Agreement, the Employee may hold or dispose of the shares represented by such certificate(s), subject to compliance with (i) the terms and conditions of the Plan and this Agreement and (ii) applicable securities laws of the United States
of America and the Commonwealth of Virginia. 
 4.    Shareholder Rights. Prior to any forfeiture of the shares of
Restricted Stock and while the shares are Restricted Stock, the Employee shall, subject to the terms of this Agreement and the restrictions of the Plan, have all rights of a shareholder with respect to the shares of Restricted Stock awarded
hereunder, including the right to receive dividends and other distributions as and when declared by the Board of Directors of the Company and the right to vote the shares of Restricted Stock. 
 5.    Tax Withholding. The Company shall have the right to retain and withhold from any award of the Restricted Stock, the
amount of taxes required by any government to be withheld or otherwise deducted and paid with respect to such award. At its discretion, the Company may require the Employee receiving shares of Restricted Stock to pay or otherwise reimburse the
Company in cash for any such taxes required to be withheld by the Company and withhold any distribution in whole or in part until the Company is so paid or reimbursed. In lieu thereof, the Company shall have the unrestricted right to withhold, from
any other cash amounts due (or to become due) from the Company to the Employee, an amount equal to such taxes required to be withheld by the Company to reimburse the Company for any such taxes (or retain and withhold a number of shares of vested
Restricted Stock, having a market value not less than the amount of such taxes, and cancel in whole or in part any such shares so withheld, in order to reimburse the Company for any such taxes). 
 6.    Death; Disability; Retirement; Termination of Employment. The shares of Restricted Stock not yet vested shall become
100% vested and transferable in the event that the Employee dies or becomes Disabled while employed by the Company or an Affiliate during the Restricted Period. Upon attaining age 62 with 10 consecutive years of service with the Company or an
Affiliate, or in any other circumstance approved by the Committee in its sole discretion, the shares of Restricted Stock shall become 100% vested and transferable. In all events other than those previously addressed in this paragraph, if the
Employee ceases to be an employee of the Company or an Affiliate, the Employee shall be vested only as to that percentage of shares of Restricted Stock which are vested at the time of the termination of his employment and the Employee shall forfeit
the right to the shares of Restricted Stock which are not yet vested on the termination date. 
 7.    No Right to
Continued Employment. This Agreement does not confer upon the Employee any right with respect to continuance of employment by the Company or an Affiliate, nor shall it interfere in any way with the right of the Company or an Affiliate to
terminate his or her employment at any time. 
 8.    Change of Control or Capital Structure. Subject to any
required action by the shareholders of the Company, the number of shares of Restricted Stock covered by this award shall be proportionately adjusted and the terms of the restrictions on such shares shall be adjusted as the Committee shall determine
to be equitably required for any increase or decrease in the number of issued and outstanding shares of Common Stock of the Company resulting from any stock dividend (but only on the Common Stock), stock split, subdivision, combination,
reclassification, recapitalization or general issuance to the holders of Common Stock of rights to purchase Common Stock at substantially below its then fair market value or any change in the number of shares of Common Stock outstanding effected
without receipt of cash, property, labor or services by the Company or for any spin-off or other distribution of assets to shareholders. 
  

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 In the event of a Change of Control, this award of Restricted Stock shall immediately vest pursuant to
the provisions of Section 12.03 of the Plan. In the event of a change in the Common Stock of the Company as presently constituted, which is limited to a change of all or part of its authorized shares without par value into the same number of
shares with a par value, or any subsequent change into the same number of shares with a different par value, the shares resulting from any such change shall be deemed to be the Common Stock within the meaning of the Plan. 
 The award of Restricted Stock pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications,
reorganizations or changes of its capital or business structure or to merge or to consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets. 
 9.    Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the
Commonwealth of Virginia, except to the extent that federal law shall be deemed to apply. 
 10.    Conflicts. In
the event of any conflict between the provisions of the Plan as in effect on the date hereof and the provisions of this Agreement, the provisions of the Plan shall govern. All references herein to the Plan shall mean the Plan as in effect on the
date hereof. 
 11.    Employee Bound by Plan. The Employee hereby acknowledges receipt of a copy of the Plan and
agrees to be bound by all the terms and provisions thereof. 
 12.    Binding Effect. Subject to the limitations
stated herein and in the Plan, this Agreement shall be binding upon and inure to the benefit of the legatees, distributees, and personal representatives of the Employee and the successors of the Company. 
 13.    Forfeiture of Certain Gains. 
 (a)    Termination for Cause. If Employee’s employment is terminated for “Cause” within one year
of any vesting of Restricted Stock herein, the Employee shall pay to the Company an amount equal to the Fair Market Value of such Restricted Stock on the date of vesting without regard to any subsequent market price increase or decrease. For
purposes of this paragraph, “Cause” shall have the meaning ascribed to it in any employment agreement between the Employee and the Company that is in effect at the time of termination and, if no such agreement exists, it shall mean:

 (i)    the willful and continued failure of the Employee to perform substantially the Employee’s
duties with the Company or one of its affiliates (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to the Employee by the Company which
specifically identifies the manner in which the Company believes that the Employee has not substantially performed the Employee’s duties, or 
 (ii)    the willful engaging by the Employee in illegal conduct or gross misconduct which is materially and demonstrably injurious to the Company. 
 (b)    Forfeiture if Employee Engages in Certain Activities. If Employee engages in any activity in competition
with any activity of the Company, or inimical, contrary or harmful to the interests of the Company, including but not limited to (i) accepting employment with or serving as a consultant advisor or in any other capacity to an employer that is in
competition with or acting against the interests of the Company, (ii) disclosing or misusing any confidential information or material concerning the Company or (iii) participating in any hostile takeover attempt, then (1) any unvested
Restricted Stock shall be forfeited and cancelled and (2) the Employee shall pay to the Company an amount equal to the Fair Market Value on the date of vesting, without regard to any subsequent market price increase or decrease, of any
Restricted Stock that vested within one year of the date such activity began. 
 (c)    Right of
Set-off. Employee hereby consents to a deduction from any amounts owed by the Company to Employee from time to time (including amounts owed as wages or other compensation, fringe 

  

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benefits or vacation pay, to the extent of any amounts Employee owes the Company under paragraph 13(a) and (b). Whether or not the Company elects to make any
set-off in whole or in part, if Company does not recover by means of set-off the full amount owed by Employee under paragraphs 13(a) and (b), Employee agrees to immediately pay the unpaid balance to the Company. 
 14.    Notice and Consent to Electronic Delivery. The Company expects to deliver notices and certain documents relating
to its employee benefit plans by posting the information on the Company’s web site, intranet or electronic bulletin board or transmitting the material to employees by e-mail. These documents include employee benefits plans and any
amendments thereto, election forms, prospectuses, supplements to prospectuses, annual reports to shareholders, informational brochures and similar information. The Company will provide you with e-mail notification of the posting of any of the
foregoing documents. This method of notification and access to documents relating to employee benefit plans will be in lieu of paper delivery of the same documents. To satisfy legal requirements, your signature is an affirmative election to
accept electronic notification and delivery of these documents in lieu of paper delivery, as well as all other terms of the award. 
 15.    Defined Terms. All terms used herein that are defined in the Plan shall have the meanings given to them in the Plan. 
  

 6Amended and Restated Dividend Reinvestment and Common Stock Purchase Plan

 EXHIBIT 4.3 
 THE COLONIAL BANCGROUP, INC. 
 AMENDED AND RESTATED 
 DIVIDEND REINVESTMENT AND COMMON STOCK PURCHASE PLAN 
 DATED MAY 2, 2008 
 1. PARTICIPATION. 
 All record owners of The Colonial BancGroup, Inc. (“BancGroup”), Common Stock, par value $2.50 per share (“Common Stock”) may participate in the BancGroup Dividend Reinvestment and Common Stock
Purchase Plan (“Plan”). Beneficial owners whose shares are registered in names other than their own (for example, in the name of a broker or a bank nominee) must become owners of record by having the number of shares in which they wish to
participate transferred into their names or make arrangements with the nominees or other holders of record to participate in the Plan on behalf of such beneficial owners. 
 Under the Plan, cash dividends on all or less than all shares of Common Stock registered in a participant’s name may be reinvested in additional Common Stock. Participants also may make optional cash payments
from $50.00 to $120,000 per year at any time after the participant begins his or her participation in the Plan, provided participants are also participating in the dividend reinvestment portion of the Plan. 
 2. ENROLLMENT. 
 Any record owner of Common Stock may enroll
in the plan by signing and returning the Plan Authorization Card at any time prior to the record date for the next dividend payment. Reinvestment of dividends will begin with the next dividend payment subsequent to receipt of the Authorization Card.

 The Authorization Card appoints BancGroup, or its duly authorized agent (the Plan Administrator), as agent for each participant and
directs the Plan Administrator to apply cash dividends as directed by the participant, and any optional cash payment the participant might make, to the purchase of additional shares of Common Stock in accordance with the terms of the Plan.

 3. CASH DIVIDEND REINVESTMENT. 
 Participants
may have cash dividends paid on all shares of Common Stock registered in their names automatically reinvested in additional shares of Common Stock at a price equal to 100 percent of the market price average, as defined in Section 6 below.
Participants may also have dividends on less than all of the shares registered in their names automatically reinvested at a price equal to 100 percent of the market price average and continue to receive the remainder of their cash dividends. In
either case, participants may make optional cash payments for investment in additional shares of Common Stock at a price equal to 100 percent of the market price average. No commission, service charge or management fee is paid by a participant in
connection with purchases under the Plan. 
 4. OPTIONAL CASH PAYMENTS. 
 Record owners of Common Stock who have chosen to participate in the dividend reinvestment aspect of the Plan may also make optional cash payments in the amounts specified in Section 1 above. Optional cash
payments received from a participant not later than three days before an Optional Acquisition Date (as defined below) will be applied to the purchase of additional shares of Common Stock on the next occurring Optional Acquisition Date. The
“Optional Acquisition Date” will be the first business day of each month. Such purchases will be made at market prices (using a weighted averaging system as described in Section 6 below) if bought on the open market or at 100 percent
of the Market Price Average (as defined below) if bought from BancGroup. Interest will not be paid on uninvested optional cash payments. Any amount received as an optional cash payment will be returned by mail to the participant if BancGroup
receives written notice requesting such return at least 48 hours 

 
prior to the next Optional Acquisition Date. At the discretion of the Plan Administrator, participants may be allowed to make optional cash payments through
automatic account drafts or by similar means. 
 5. SHARES SUBJECT TO PLAN. 
 All reinvested dividends and optional cash payments under the Plan will be used to acquire authorized and previously unissued Common Stock, or shares of Common Stock held by BancGroup as treasury stock, or shares of
Common Stock purchased for Plan participants in the open market, or a combination of the foregoing. 
 6. PURCHASES OF STOCK. 
 The purchase price per share of shares acquired from BancGroup under the Plan with reinvested dividends or optional cash payments on any dividend payment
date or Optional Acquisition Date will be the Market Price Average. The “Market Price Average” will be 100 percent of the average of the daily closing prices of BancGroup’s Common Stock reported by the New York Stock Exchange
(“NYSE”) for the period of five trading days immediately preceding either the dividend payment date or the Optional Acquisition Date, as applicable. No shares will be sold by BancGroup to participants in the Plan at less than the par value
of such shares ($2.50 per share). 
 The purchase price per share of shares purchased with reinvested dividends or optional cash payments in
the open market will be the weighted average price of the Common Stock purchased in the open market for all Plan participants in respect of a particular dividend payment date or a particular Optional Acquisition Date, as applicable. Dividend
reinvestment amounts will be invested once each quarter on the dividend payment date for that quarter. Optional cash payments will be invested once each month on the first business day. 
 The number of shares purchased for a participant depends on the amount of a participant’s dividend and the amounts of optional cash payments, if
any, and the purchase price per share. 
 The participant’s account, maintained by the Plan Administrator, will be credited with the
number of shares, including fractional shares computed to three decimal places, equal to the sum of (1) the total amount of dividends to be reinvested divided by 100 percent of the applicable purchase price and (2) the total amount of any
optional cash payments to be invested divided by 100 percent of the applicable purchase price. Shares purchased under the Plan will be credited to the participant’s account but will not be registered in the participant’s name nor will
certificates be issued to the participant unless requested in writing or upon termination of the Plan. 
 7. COSTS. 
 Participants will incur no brokerage commissions or service charges for purchases made under the Plan. All costs of administration of the Plan will be
paid by BancGroup. However, if you request the Plan Administrator to sell your Plan shares, you will pay related brokerage fees, commissions and applicable transfer tax. 
 8. REPORTS TO PARTICIPANTS. 
 As soon as practicable after each purchase, each participant will receive a
statement of their account showing amounts invested, purchase prices, shares purchased, and other information for the year to date. This statement will provide a record of the cost of purchases under the Plan and should be retained for tax purposes.
At the end of each year, the Plan Administrator will report to each participant the dividends credited to his or her account for that year on the shares held for him or her and on the shares registered in his or her name. The number of shares
credited to a participant’s account will also be shown on the statement. 

 9. CERTIFICATES. 
 Certificates for shares of Common Stock purchased under the Plan will not be issued to participants unless requested in writing. A participant may, from time to time, make written request of the Plan Administrator to issue full shares in
his or her name or to electronically transfer shares to the participant’s broker. The shares represented by that certificate will be withdrawn from the participant’s account. Any remaining full shares and fractions of a share will continue
to be credited to the participant’s account. Certificates for fractions of a share will not be issued. 
  

	10.	VOTING OF SHARES. 

 Participants in the Plan will receive
one or more proxies, or be directed to internet availability of proxies, indicating the total number of shares credited to the participant’s account under the Plan. All properly executed proxies received by BancGroup will be voted at
shareholders’ meetings as directed by the participants. Properly executed proxies that do not indicate instruction as to the manner in which the shares are to be voted will be voted in accordance with the recommendations of the Board of
Directors of BancGroup. Shares represented by proxies that are not returned, or are improperly voted, will not be included unless the participant votes those shares in person. 
  

	11.	STOCK DIVIDENDS AND STOCK SPLITS. 

 Any stock dividends or
stock splits distributed by BancGroup on shares credited to the account of a participant under the Plan will be credited to the participant’s account. Stock dividends or split shares distributed on shares registered in the name of the
participant will be distributed to the shareholder in the same manner as to shareholders who are not participating in the Plan. 
  

	12.	RIGHTS OFFERINGS 

 If a participant is entitled to
participate in a rights offering, his or her entitlement will be based upon the participant’s total holdings, including the shares of Common Stock credited to him or her under the Plan. Rights certificates will, however, be issued for the
number of whole shares only. 
  

	13.	TRANSFER OF RECORD SHARES. 

 Shares credited to the account
of a participant under the Plan may not be sold, pledged or assigned without first requesting in writing that a certificate for such shares be issued to the participant or provide written instructions to electronically transfer shares to
participants’ brokers. If a participant has disposed of all shares registered in his or her name but continues to have shares credited to his or her account under the Plan, the participant’s participation in the Plan will be terminated,
and certificates (or cash for fractional shares) will be distributed in accordance with Section 15 hereof. If a participant disposes of only a portion of the shares registered in his or her name the Plan Administrator will continue to reinvest
dividends on the remaining shares. If a participant who is reinvesting cash dividends on a portion of the shares registered in his or her name disposes of some but not all of those shares, the Plan Administrator will continue to reinvest the
dividends on the remainder of the shares up to the number of shares originally authorized. 
  

	14.	CHANGING INVESTMENT OPTION. 

 A participant may change his
or her investment option at any time by signing a new Authorization Card and returning it to the Plan Administrator. An Authorization Card indicating a change of options must be received by the Plan Administrator prior to a particular dividend
record date in order to stop or change the reinvestment of dividends paid on the related dividend payment date. 

	15.	TERMINATION OF ACCOUNT. 

 A participant may terminate his
or her account at any time by notifying the Plan Administrator of such desire in writing. Any such notice received subsequent to the record date for a dividend shall not be effective until dividends have been reinvested and credited to his or her
account. Optional cash payments sent to the Plan Administrator may be withdrawn if a written notice of withdrawal is received by the Plan Administrator at least 48 hours prior to the next Optional Acquisition Date. 
 Within a reasonable time after termination, a certificate for the stock purchased and credited to the participant’s account under the Plan will be
issued and delivered to the participant for all full shares. Any fractional interest in a share will be converted to cash based on the closing price of BancGroup’s Common Stock reported on the NYSE on the day the notice of termination is
received by the Plan Administrator or the next day on which the NYSE is open if it is closed when the notice is received. Alternatively, the participant may elect to receive a check for the proceeds from the sale of all shares purchased and credited
to the participant’s account, including any fractional share, less any brokerage fees, commissions and any applicable transfer tax. The sale will be made as soon as possible after receipt of the notification of termination. 
  

	16.	AMENDMENT AND TERMINATION OF THE PLAN. 

 Notwithstanding
any other provision of the Plan, the Board of Directors of BancGroup or any designated committee thereof reserves the right to amend, suspend, modify or terminate the Plan at any time. All participants will receive notice of any such amendments,
suspensions or modifications. Upon a termination of the Plan any uninvested optional cash payments will be returned; certificates for full shares credited to a participant’s account under the Plan will be issued to the participant, and payment
will be made in cash for any fractional share credited to a participant’s account. 
  

	17.	TAXES. 

 Under Internal Revenue Service rulings provided
with similar plans, dividends which the participant reinvests in additional shares of Common Stock under the Plan, will be treated for federal income tax purposes either (1) as having been received by the participant in the form of cash dividends,
if such shares are acquired in the open market, or (2) as a taxable stock dividend if such shares are acquired from BancGroup. The participant will not realize any taxable income upon purchase of shares with optional cash payments. 
 The Internal Revenue Service requires that brokerage commissions and service charges paid by a corporation in connection with the open market purchase of
shares pursuant to a dividend reinvestment plan are includible in the gross income of plan participants. If shares are purchased for the participant’s Plan account in the open market, the participant must include in his or her gross income a
dividend equal to that portion of any brokerage commissions and service charges paid by BancGroup which are attributable to the purchase of the participant’s shares. 
 The participant will not realize any taxable income when he or she receive certificates for whole shares credited to their account, either upon their request for such certificates or upon withdrawal from or
termination of the Plan. However, the participant will recognize tax gain or loss (which, for most participants, will be capital gain or loss) when whole shares acquired under the Plan are sold or exchanged -either by the Plan Administrator at the
participant’s request or by the participant. The participant also will recognize gain or loss when he or she receives a cash payment for a fractional share credited to their account. The amount of such gain or loss will be the difference
between the amount that he or she receives for their shares or fractional share and the tax basis. 
 The tax basis of shares acquired from
BancGroup under the Plan by reinvestment of dividends will be equal to the purchase price of the shares acquired. The tax basis of shares acquired by the Plan Administrator in the open market with reinvested dividends will be the purchase price
thereof paid by the Plan Administrator plus an allocable share of any brokerage commissions paid by BancGroup. The tax basis of shares purchased with an 

 
optional cash payment will be the amount of such optional cash payment plus allocable brokerage commissions. The holding period of shares of Common Stock
acquired under the Plan, whether purchased with dividends or optional cash payments, will begin on the day following the date on which the shares are purchased for the participant. 
 In the case of foreign participants who elect to have their dividends reinvested and whose dividends are subject to United States income tax withholding,
dividends reinvested for the participant under the Plan will be reduced by the amount of tax withheld. 
 Federal tax laws impose certain
reporting obligations upon brokers and other middlemen. As a result, the Plan Administrator will be required to report to the participant and to the Internal Revenue Service any sales of Common Stock by the Plan Administrator for the
participant’s Plan account. If the participant’s dividends become subject to backup withholding taxes, dividends reinvested for him or her under the Plan will be reduced by the amount of tax required to be withheld. 
 The foregoing is only an outline of BancGroup’s understanding of some of the applicable tax provisions. For further information as to the tax
consequences of participation in the Plan, including any future changes in applicable law or interpretations thereof, the participant should consult with his or her own tax advisor. 
  

	18.	NOT A BANK ACCOUNT. 

 The participant shall have no right
to draw checks or drafts against his or her account. 
  

	19.	DUTIES AND RESPONSIBILITIES. 

 BancGroup shall not have any
responsibility beyond the exercise of ordinary care for any action taken or omitted pursuant to this Plan, nor shall BancGroup have any duties, responsibilities or liabilities except such as are expressly set forth herein. BancGroup shall not be
liable hereunder for any act done in good faith, or any good faith omission to act, including, without limitation, any claims of liability (a) with respect to the time or prices at which shares are purchased or sold for a participant’s
account, or any inability to purchase or sell shares, for any reason, (b) for any fluctuation in the market value after purchase or sale of shares, or (c) arising out of failure to terminate the participant’s account upon such
participant’s death prior to receipt of notice in writing of such death. 
  

	20.	GOVERNING LAW. 

 This Plan is governed by the laws of the
State of Alabama. 
 21. RISK. 
 Your direct
investment in Common Stock credited to your Plan account is no different than any other investment in Common Stock. You alone bear the risk of fluctuations in the market value of the Common Stock. You bear the risk of loss in value and you enjoy the
benefits of gains from market price changes with respect to all of your shares. 
 BancGroup cannot guarantee that the value of the shares
purchased under the Plan will, at any particular time, be more than your original investment. You need to make independent investment and participation decisions based on your own judgment, self interest and research. 
 BancGroup cannot guarantee liquidity in the market, thus your investments and the marketability of your securities may be adversely affected by any
future adverse market conditions.

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