Document:

Employment Agreement

 Exhibit 10.2 
 EMPLOYMENT AGREEMENT 
 This EMPLOYMENT AGREEMENT (the
“Agreement”) is entered into effective this February 1, 2012, by and between Learning Tree International, Inc., a Delaware corporation (hereinafter referred to as “Company”) and Dr. David C. Collins
(hereinafter referred to as “Employee”) and the parties hereto desire to enter into this Agreement to set forth the terms and conditions of such employment effective February 1, 2012. 

NOW, THEREFORE, in consideration of the mutual promises set forth herein and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 
 1. STATEMENT OF WORK.
Employee is engaged as the Chief Executive Officer of the Company and agrees to perform the duties described in the attached “Job Description” and such duties as are needed for the proper functioning of the Company, as directed from
time to time, at the Company’s main office and at other geographical locations serviced by the Company. The Chief Executive Officer of the Company shall report to the Company’s Board of Directors. The Company hereby employs Employee or
continues his employment and Employee hereby accepts employment upon the terms and conditions stated herein. Employee shall do his utmost to further enhance and develop the best interests and welfare of the Company. Employee shall perform no acts
contrary to the best interests of the Company and the Company shall be entitled to all of the benefits, profits or other results arising from or incident to all work, services and advice of Employee. It is understood and agreed that Employee is also
a member of the Company’s Board of Directors and serves as the Chairman of the Company’s Board of Directors. 

Employee agrees to fully comply with the rules and procedures as may be promulgated by the Company in the Company’s sole and
absolute discretion. 
 2. PAYMENT. As full consideration for the services rendered by Employee hereunder, the
Company agrees to pay Employee the sum of $29,166.66/Month, payable in accordance with the Company’s payroll practices from time to time semi-monthly, subject to withholding and deductions in accordance with all applicable laws.

 a. Said compensation is paid (i) for Employee’s advice and availability as advisor to the Company; (ii) for
substantially full-time services at one of the corporate premises; and (iii) for the covenants described below. 
 b. The
Employee Manual, as amended from time to time by the Company and delivered to Employee, is an integral part of the employment relationship, but does not form a contract or contract-based rights, nor does it serve to alter the at-will nature of
Employee’s employment. Employee’s initials affixed below signify Employee’s receipt of the Employee Manual, Employee’s understanding that it is his responsibility to read the Employee Manual, and to comply fully with the terms
set forth therein. 
  

	
	DCC
	(Employee’s Initials)

 3. COPYRIGHTS. Employee agrees that all writings produced by him or her while employed
under this Agreement, whether or not conceived or developed during Employee’s working hours and with respect to which the equipment, supplies, facilities or trade secret information of the Company were used, or that relate to the business of
the Company, or that result from any work performed by Employee for the Company, are works done for hire and shall be the sole property of the 

  
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Company and the Company shall have the exclusive right to copyright such writings in any country or countries. Employee further agrees to assign to the Company all interest in any such writings,
whether copyrightable or not, which Employee develops or helps develop during his employment with the Company. 
 4.
PATENTS. Employee shall disclose promptly to the Company all ideas, inventions, discoveries, improvements, whether or not patentable, relative to the field of work set forth in the “Job Description”, or otherwise assigned
to Employee, and conceived or first reduced to practice by Employee in connection with work under this Agreement with the Company. Employee agrees that all such ideas, inventions, discoveries and improvements including, but not limited to papers,
books and publications, shall become the sole and absolute property of the Company and that Employee will at any time, at the request and expense of the Company, execute any and all documents, including, but not limited to, patent applications and
assignments to protect the same against infringement by others, and do whatever is reasonably required to be done to insure that the Company shall obtain title to such ideas, inventions, discoveries and improvements. Such services will be without
additional compensation if Employee is then employed by the Company and for reasonable compensation and subjected to his reasonable availability if he is not. If the Company cannot, after reasonable effort, secure Employee’s signature on any
document or documents needed to apply for or prosecute any patent, copyright, or other right or protection relating to an Invention, whether because of his physical or mental incapacity or for any other reason whatsoever, Employee hereby irrevocably
designates and appoints the Company and its duly authorized officers and agents as his agent and attorney-in-fact, to act for and in his behalf and in his name and stead for the purpose of executing and filing any such application or applications
and taking all other lawfully permitted actions to further the prosecution and issuance of patents, copyrights, or similar protections thereon, with the same legal force and effect as if executed by him. 

For purposes of this paragraph, an invention is based on the trade secrets of the Company if the invention incorporates any such secrets
in principle or design, and if the invention was conceived or first actually reduced to practice during the period of Employee’s employment with the Company. 
 Employee also agrees that the Company shall have the right to keep any inventions covered by this Agreement as trade secrets and Employee agrees not to disclose any such invention to third parties, except
as specifically authorized by the Company. 
 Employee further agrees to assign to the Company all rights in any other
inventions made by Employee if the Company is required to grant those rights to the United States Government or any of its agencies. Moreover, Employee agrees to render assistance, advice and counsel to the Company at its request regarding any
matter, dispute or controversy with which the Company may become involved and of which Employee has or may have reason to have knowledge, information or expertise. Such services will be without additional compensation if Employee is then employed by
the Company and for reasonable compensation and subject to his reasonable availability otherwise. 
 5. SECRECY.

 a. Security Clearance. As to any Company information made available to Employee during the course of his employment,
Employee agrees to cooperate in establishing and maintaining any security clearance and to execute whatever forms and joint agreements are required by law. Employee agrees to provide and maintain a system of security controls in accordance with the
requirements of the U.S. Government or as may be required by law. 
 b. Non-Disclosure of Confidential Information.
Confidential and Proprietary Information (hereinafter Confidential Information) is defined to include, but is not limited to, Company 

  
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books; records; compilations of information; processes; teaching methods and techniques; secret inventions and specifications; information about computer programs or systems; names; usages and
requirements of past, present and prospective customers of the Company; processes or methods by which the Company promotes its services and products and obtains customers; customers’ buying habits and special needs; profits; sales; suppliers;
personnel; pricing policies; operational methods; technical processes and other business affairs and methods, and plans for future developments and other information which is not readily available to the public. Confidential Information also
includes, but is not limited to, any information and material relating to any customer, vendor, licensor, licensee or other party transacting business with the Company. Confidential Information is developed and will be developed by or for the
Company at great expense. 
 Employee agrees, during the term of employment and forever thereafter, to keep confidential all
information provided by the Company, excepting only such information as is already known to the public. Employee agrees not to release, use or disclose any Confidential Information or permit any person to examine and/or make copies of any documents
which contain or are derived from Confidential Information, except with the prior written permission of the Company. Employee shall not make use of any Confidential Information for his own purposes or the benefit of anyone other than the Company.

 Employee recognizes and acknowledges that the list of the Company’s customers, as it may exist from time to time, is a
valuable, confidential, special, and unique asset of the Company’s business. Employee will not, during or after the term of his employment, use or disclose the list of the Company’s customers or any part thereof to any person, firm,
corporation, association, or other entity for any reason or purpose whatsoever. 
 c. Return of Property. Employee agrees
that upon request by the Company, and in any event upon termination of employment, Employee shall turn over to the Company all documents, papers or other material in Employee’s possession or under his control which may contain or be derived
from Confidential Information, together with all documents, notes or other work product which is connected with or derived from Employee’s services to the Company whether or not such material is at the date hereof in Employee’s possession.

 Employee agrees that he or she shall have no proprietary interest in any work product developed or used by Employee arising out of his
employment by the Company. Employee shall, from time to time as may be requested by the Company, do all things which may be necessary to establish or document the Company’s ownership interest in any such work product, including, but not limited
to execution of appropriate copyright applications or assignments. 
 6. EXCLUSIVITY. While an employee of the
Company, Employee will use best efforts to promote the success of the Company’s business and shall not enter the employ of or serve as a consultant to, or in any way perform any services with or without compensation for, any other person,
enterprise, business, company, corporation, partnership, firm, association without the prior written consent of the Company and shall not own any interest (other than up to 1% of the voting securities of a publicly traded corporation) in any entity
or individual that competes with the Company or that is a material supplier or vendor to the Company. 
 7.
NON-COMPETITION. During the term of this Agreement and until the expiration of one year after the termination of the employment relationship (regardless of the reason the employment is terminated), Employee shall not, directly or
indirectly, (1) enter into the employ of, assume an interest in (in any capacity) or render any services to, any person or entity engaged in any business competitive with the business of the Company within a 50 mile radius of any location where
the Company is actively engaged, or proposes to engage in business on or prior to the termination of employment; or (2) engage in 

  
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any such business on his own account. Employee and Company agree and stipulate that the period of time and geographical area specified in the above paragraph are fair and reasonable in view of
the nature of the business of the Company, and the Employee’s access to the Company’s Confidential Information and knowledge of the Company’s business. However, in the event that a court should decline to enforce these provisions,
Employee and the Company agree that the provisions shall be deemed to be modified to restrict Employee’s competition with the Company to the maximum extent, in both time and geography, which the court shall find enforceable. In no event will
the covenant be interpreted as more restrictive to Employee. 
 8. SOLICITING. Employee shall not, either during
his employment with the Company, or for a period of two (2) years immediately thereafter, either directly or indirectly: 

a. Make known to any person, firm or corporation, the names or addresses of any customers of the Company or any other information
pertaining to them; 
 b. Call on, solicit, or attempt to take away or do business with any customers of the Company on whom
Employee called or with whom Employee became acquainted during the term of his employment with the Company, either for Employee or for any other person, firm or corporation in competition with the Company; or 

c. Hire, subcontract, employ, engage, contact or solicit, for the purpose of hiring, any person or entity who is an employee or
subcontractor of the Company on the date of Employee’s termination of employment or at any time during the six (6) month period prior to the termination of Employee’s employment. 

9. TRADE SECRETS. During the term of this Agreement, Employee will have access to and become acquainted with various trade
secrets consisting of items such as books, records, compilations of information, processes, teaching methods and techniques, devices, secret inventions, and specifications, which are owned by the Company and are regularly used in the operation of
the business of the Company, which the Company desires to protect and preserve as secrets for its own use. Employee shall not disclose indirectly, or use them in any way, either during the term of this Agreement or at any time thereafter, except as
required in the course of his employment with the Company. All files, records, documents, drawings, specifications, equipment, products and other items relating to the Company, whether prepared by Employee or otherwise coming into his possession,
shall remain the exclusive property of the Company and shall not be removed from the premises of the Company under any circumstances whatsoever, without the prior written consent of Employee’s supervisor, specifically setting forth the
documents involved, the person receiving the permission, and the location of the items and the period of time for which the permission is granted. 
 10. VIOLATION OF COVENANTS. Notwithstanding paragraph 13 of this Agreement, if Employee violates or threatens to violate any of the provisions of paragraphs 3 through 9 of this Agreement,
the Company shall be entitled (without the need to post any bond) to a restraining order and/or an injunction to be issued by any court of competent jurisdiction, enjoining and restraining Employee, and each and every other person, partnership,
corporation, association or other entity concerned therein, from continuing such violations or from rendering any services to any person, firm, corporation, association or other entity to whom such Confidential Information, in whole or in part, has
been disclosed or is threatened to be disclosed. Employee recognizes that the violation or threatened violation of the provisions of paragraphs 3 through 9 of the Agreement may give rise to irreparable injury to the Company, which may not be
adequately compensated by damages. Nothing herein shall be construed as prohibiting the Company from pursuing any other remedies available to the Company for such breach or threatened breach, including the recovery of damages from Employee. These
obligations shall survive the termination of Employee’s employment. 

  
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 11. AT-WILL EMPLOYMENT. Employee’s employment with the Company is
“at-will” and may be terminated at any time, with or without Cause, for any or no reason, and with or without notice. In conjunction with this policy of at-will employment, Employee may also be disciplined, demoted or have his job
responsibilities reassigned by the Company for any reason at the Company’s sole discretion. No individual within the Company can modify this “at-will” status, except in a written agreement signed by the Board of Directors or
their designated executive officer of the Company. No oral or written modifications, express or implied, may alter or vary the terms of this Agreement. Any representations to the contrary are hereby disclaimed. Upon Employee’s termination of
employment with the Company for any or no reason, and with or without notice, the Company shall pay to Employee all amounts accrued and unpaid as of the date of termination in respect of (i) Employee’s salary for periods through such date
and (ii) PTO (“Paid Time Off”) pay to the extent consistent with the Company’s policies in effect from time to time. “Cause” shall exist if any one or more of the following should occur: Employee’s
(a) material failure to perform his duties under, or material breach of, this Agreement which remains uncured for more than thirty (30) days (which shall be reduced to ten (10) days if (i) there is no reasonable expectation that
a cure can be completed during such thirty day period or (ii) the Company reasonably believes that such delay could be seriously detrimental to it) after a written warning (except in the case of a willful failure to perform his duties, or a
willful breach, which shall require no warning), (b) failure to comply with a reasonable direction of the Company’s Board of Directors, which remains uncured for more than thirty (30) days (which shall be reduced to ten (10) days
if (a) there is no reasonable expectation that a cure can be completed during such detrimental to it) after a written warning, (c) breach of his fiduciary duty to the Company, or (d) indictment (or equivalent) for a felony or other
serious crime. Employee agrees that the rights and entitlements set forth in this Section 11 are Employee’s exclusive rights and entitlements from the Company and any affiliated entity upon and as a result of the termination of
Employee’s employment with the Company. 
 12. AUTHORSHIP AND OUTSIDE INCOME. Except as otherwise approved in
writing by the Company, while employed under this Agreement, any income earned by Employee in any work of the type performed by the Company shall be deemed earned on behalf of the Company and shall be promptly remitted to the Company. Any articles
or other works published by Employee shall be first approved by the Board of Directors of the Company or their designated executive officer of the Company, in writing, and may be published only if approved by the Company. Any approval given under
this paragraph shall be deemed valid for only the specific event and time set forth in the approval. 
 13.
ARBITRATION. Any and all disputes between Employee and the Company that arise out of Employee’s employment, including disputes involving the terms of this Agreement, shall be resolved through final and binding arbitration. This shall
include, without limitation, disputes relating to this Agreement, Employee’s employment by the Company or the termination thereof, claims for breach of contract or breach of the covenant of good faith and fair dealing, and any claims of
discrimination or other claims under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans With Disabilities Act, or any other federal, state or local law or regulation now in existence or hereinafter
enacted and as amended from time to time concerning in any way the subject of Employee’s employment with the Company or his termination. The only claims not covered by this Agreement are claims for benefits under the workers’ compensation
or unemployment insurance laws, which will be resolved pursuant to those laws. Notices of requests to arbitrate a covered claim must be made within the applicable statute of limitations. Binding arbitration will be conducted in Fairfax

  
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County, Virginia in accordance with the rules and regulations of the American Arbitration Association (“AAA”). Discovery may be carried out under the supervision of the
arbitrator appointed pursuant to the rules of the AAA. Employee will be responsible for paying the same fee to initiate the arbitration that he or she would pay to file a civil lawsuit. The Company will pay any remaining cost of the arbitration
filing and hearing fees, including the cost of the arbitrator; each side will bear its own attorneys’ fees, that is, the arbitrator will not have authority to award attorneys’ fees unless a statutory section at issue in the dispute
authorizes the award of attorneys’ fees to the prevailing party, in which case the arbitrator has authority to make such award as permitted by the statute in question. Employee understands and agrees that the arbitration shall be instead of any
civil litigation and that this means that he is waiving his right to a jury trial as to such claims. The parties further understand and agree that the arbitrator will issue a written decision and that the arbitrator’s decision shall be final
and binding to the fullest extent permitted by law and enforceable by any court having jurisdiction. This arbitration section does not in any way alter Employee’s at-will status. 

14. WRITTEN PERMISSION. Any “written permission” required by this Agreement is only valid if signed by a Company
officer. 
 15. WAIVER. The delay or failure of the Company to insist upon Employee’s punctual performance of
any of the provisions of this Agreement, or the failure of the Company to exercise any right or remedy available to it under this Agreement, shall not constitute in any manner a waiver by the Company of any subsequent default or breach by Employee.

 16. NOTICES. All notices, requests, demands or other communications under this Agreement shall be in writing
and shall be deemed to have been duly given on the date of service, if served personally on the party to whom notice is being given, or on the third (3rd) day after mailing, if mailed to the party to whom notice is to be given, by first class
mail, postage prepaid, and properly addressed as follows: 
 LEARNING TREE INTERNATIONAL, INC. 

1805 Library Street, Suite 300 
 Reston, Virginia 20190-5304 
 Notice shall be given to Employee at the most recent address
reflected in Employee’s employment records. Any party may change its address for purposes of this paragraph by giving the other party a written notice of the new address. 
 17. GOVERNING LAW. This Agreement shall be construed in accordance with, and governed by, the laws of the state of Virginia. 

18. ENTIRE AGREEMENT. This Agreement constitutes the entire Agreement between the parties and supersedes all prior or
contemporaneous agreement and statements between the parties, whether written or oral, with respect to the subject matter hereof, and may not be contradicted by evidence of any prior or contemporaneous statements or agreements between Employee and
the Company concerning the subject matter hereof. The parties herein represent that no other Agreement, oral or otherwise, exists or binds any of the parties hereto. The parties hereto acknowledge that they have not executed this Agreement in
reliance upon any other or further representation or promise of any party. No change, modification, waiver, or amendment of this Agreement shall be of any effect unless in writing signed by Employee and by the Chairman of the Board of Directors or
Chief Administrative Officer of the Company. 

  
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 19. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and shall
inure to the benefit of the successors or assigns of the Company. 
 20. ASSIGNMENT. This Agreement is not
assignable by Employee. 
 21. SEVERABILITY. The provisions of this Agreement are severable. Should any provision
be for any reason unenforceable, the remainder of the provisions shall remain in full force and effect. The provisions of this Agreement shall be interpreted, to the extent possible, to give full effect to the intent of the parties. By signing
below, I acknowledge that I have read this Agreement carefully, understand it, and will comply with the provisions set forth herein. I have had the opportunity to seek independent legal advice before signing this Agreement, and enter into this
Agreement freely and voluntarily, based on my own judgment and not on any representations or promises other than those contained in this Agreement. 
  

							
	EMPLOYEE:	 		 	EMPLOYER:
			
	Dr. David C. Collins	 		 	Learning Tree International, Inc.
			
	 /s/ Dr. David C. Collins
	 		 	 Max Shevitz

		 		 	By:	 	Max Shevitz
	  
	 		 	Title:	 	President
	Date: February 1, 2012	 		 		 	

  
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 Date: February 1, 2012 
 Compensation Summary 
 Dr. David C. Collins 

 

			
	Annual Base Salary:	  	$350,000.00 (payable semi-monthly)
		
	PTO Accrual Rate:	  	Your PTO accrual rate will be 18.66 hours per month.

  
 -8-Stipulation to the Issuance of a Consent Order and Consent Order

 Exhibit 10.1 
 UNITED STATES OF AMERICA 
 DEPARTMENT OF THE TREASURY 

COMPTROLLER OF THE CURRENCY 
  

					
	In the Matter of: 	  	)	  	
	 Community West Bank, National Association
	  	)	  	AA-EC-12-16
	 Goleta, California
	  	)	  	

 STIPULATION AND CONSENT TO THE ISSUANCE 

OF A CONSENT ORDER 
 WHEREAS, the Comptroller of the Currency of the United States of America (“Comptroller”) intends to initiate cease and desist proceedings against Community West Bank, National
Association, Goleta, California (“Bank”), pursuant to 12 U.S.C. § 1818, through the issuance of a Notice of Charges, for unsafe or unsound banking practices relating to, among other issues, its Board and management oversight, problem
loan management, credit risk management and administration, and violations of laws and regulations. 
 WHEREAS, the Bank,
in the interest of compliance and cooperation, and without admitting or denying any wrongdoing, consents to the issuance of a Consent Order, dated January 26, 2012 (“Order”) by executing this Stipulation and Consent to the Issuance of
a Consent Order; 
 NOW THEREFORE, the Comptroller, through his authorized representative, and the Bank, through its duly
elected and acting Board of Directors, hereby stipulate and agree to the following: 
 ARTICLE I  

JURISDICTION 
 (1) The Bank is a national banking association chartered and examined by the Comptroller pursuant to the National Bank Act of 1864, as amended, 12 U.S.C. § 1 et seq. 

  
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 (2) The Comptroller is “the appropriate Federal banking agency” regarding the Bank
pursuant to 12 U.S.C. §§ 1813(q) and 1818(b). 
 (3) The Bank is an “insured depository institution” within
the meaning of 12 U.S.C. § 1818(b)(l). 
 ARTICLE II  

ACKNOWLEDGEMENTS 
 (1) The Bank acknowledges that said Order shall be deemed an “order issued with the consent of the depository institution,” as defined in 12 U.S.C. § 1818(h)(2), and consents and
acknowledges that said Order shall become effective upon its issuance and shall be fully enforceable by the Comptroller under the provisions of 12 U.S.C. § 1818. Notwithstanding the absence of mutuality of obligation, or of consideration, or of
a contract, the Comptroller may enforce any of the commitments or obligations herein undertaken by the Bank under his supervisory powers, including 12 U.S.C. § 1818, and not as a matter of contract law. The Bank expressly acknowledges that
neither the Bank nor the Comptroller has any intention to enter into a contract. 
 (2) The Bank also expressly acknowledges
that no officer or employee of the Comptroller has statutory or other authority to bind the United States, the U.S. Treasury Department, the Comptroller, or any other federal bank regulatory agency or entity, or any officer or employee of any of
those entities to a contract affecting the Comptroller’s exercise of his supervisory responsibilities. 
 ARTICLE III 

 WAIVERS  
 (1) The Bank, by signing this Stipulation and Consent, hereby waives: 

  
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	 	(a)	the issuance of a Notice of Charges pursuant to 12 U.S.C. § 1818(b); 

  

	 	(b)	any and all procedural rights available in connection with the issuance of the Order; 

 

	 	(c)	all rights to a hearing and a final agency decision pursuant to 12 U.S.C. §1818(i) or l2 C.F.R. Part 19 

 

	 	(d)	all rights to seek any type of administrative or judicial review of the Order; and 

 

	 	(e)	any and all rights to challenge or contest the validity of the Order. 

 ARTICLE IV  
 OTHER PROVISIONS 

(1) The provisions of this Stipulation and Consent shall not inhibit, estop, bar, or otherwise prevent the Comptroller from taking any
other action affecting the Bank if, at any time, it deems it appropriate to do so to fulfill the responsibilities placed upon him by the several laws of the United States of America. 

IN TESTIMONY WHEREOF, the undersigned, authorized by the Comptroller as his representative, has hereunto set his hand on behalf of the
Comptroller. 
  

					
			
	/s/ James R. Moore	 		 	January 26, 2012
	James R. Moore	 		 	Date
	Director for Special Supervision	 		 	

  
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 IN TESTIMONY WHEREOF, the undersigned, as the duly elected and acting Board of
Directors of the Bank, has hereunto set their hands on behalf of the Bank. 
  

					
			
	/s/ Robert H. Bartlein	 	 	 	1/26/12
	Robert H. Bartlein	 		 	Date
			
	/s/ Jean W. Blois	 		 	1/26/12
	Jean W. Blois	 		 	Date
			
	/s/ John D. Illgen	 		 	1/26/12
	John D. Illgen	 		 	Date
			
	/s/ Shereef Moharram	 		 	1/26/12
	Shereef Moharram	 		 	Date
			
	/s/ Eric Onnen	 		 	1/26/12
	Eric Onnen	 		 	Date
			
	/s/ William R.Peeples	 		 	1/26/12
	William R.Peeples	 		 	Date
			
	/s/ Martin E. Plourd	 		 	1/26/12
	Martin E. Plourd	 		 	Date
			
	/s/ James R. Sims, Jr	 		 	1/26/12
	James R. Sims, Jr	 		 	Date
			
	/s/ Kirk B. Stovesand	 		 	1/26/12
	Kirk B. Stovesand	 		 	Date
			
	 	 		 	 
	C. Richard Whiston	 		 	Date

  
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 UNITED STATES OF AMERICA 

DEPARTMENT OF THE TREASURY 
 COMPTROLLER OF THE CURRENCY 
  

							
	 In the Matter of:
	  	 	)	  	  	AA-EC-12-16
	 Community West Bank, National Association
	  	 	)	  	  	
	 Goleta, California
	  	 	)	  	  	

 CONSENT ORDER 
 WHEREAS, the Comptroller of the Currency of the United States of America (“Comptroller” or “OCC”), through his National Bank Examiner, has supervisory authority over Community
West Bank, National Association, Goleta, California (“Bank”); 
 WHEREAS, the Bank, by and through its duly
elected and acting Board of Directors (“Board”), has executed a Stipulation and Consent to the Issuance of a Consent Order (“Stipulation and Consent”), dated January 26, 2012 that is acceptable to the Comptroller; and

 WHEREAS, by this Stipulation and Consent, which is incorporated by reference, the Bank has consented to the issuance
of this Consent Order (“Order”) by the Comptroller; 
 NOW, THEREFORE, pursuant to the authority vested in him
by the Federal Deposit Insurance Act, as amended, 12 U.S.C. § 1818, the Comptroller hereby orders the following: 
 ARTICLE
I  
 COMPLIANCE COMMITTEE 
 (1) The Compliance Committee shall consist of at least three (3) directors, of which no more than one (1) shall be an employee or controlling shareholder of the Bank or any of its affiliates (as
the term “affiliate” is defined in 12 U.S.C. § 371c(b)(l)), or a family member of any such person. In the event of a change of the membership, the name of any new member shall be submitted in writing to the Director for Special
Supervision (“Director”). The Compliance Committee shall be responsible for monitoring and coordinating the Bank’s adherence to the provisions of this Order and shall meet at least monthly. 

 (2) By February 29, 2012 and monthly thereafter, the Compliance Committee shall submit
a written progress report to the Board setting forth in detail: 
  

	 	(a)	a description of the actions needed to achieve full compliance with each Article of this Order, Bank personnel responsible for implementing the corrective actions and
the time frames for completion; 

  

	 	(b)	actions taken to comply with each Article of this Order; and 

  

	 	(c)	the results and status of those actions. 

 (3) The Board shall forward a copy of the Compliance Committee’s monthly report, with any additional comments by the Board, to the Director within ten (10) days of receiving such report.

 (4) All reports or plans which the Bank or Board has agreed to submit to the Director pursuant to this Order shall be
forwarded, by overnight mail to the following: 
  

			
	 Director for Special Supervision
	  	with a copy to:
	 Comptroller of the Currency
	  	Assistant Deputy Comptroller
	 250 E Street, S.W. MS 2-7
	  	Los Angeles Field Office
	 Washington, DC 20219
	  	550 North Brand Blvd., Suite 500
		  	Glendale, California 91203

 ARTICLE II  
 STRATEGIC PLAN 
 (1) Within ninety (90) days of the date of this
Order, the Board shall forward to the Director for his review, pursuant to paragraph (3) of this Article, an updated written Strategic Plan for the Bank that is acceptable to the Director, covering at least a three-year period. The Strategic
Plan shall establish objectives for the Bank’s overall risk profile and shall, at a minimum, include: 
  

	 	(a)	a mission statement that forms the framework for the establishment of strategic goals and objectives; 

  
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	 	(b)	the strategic goals and objectives, including key financial performance indicators and risk tolerances, to be accomplished; 

 

	 	(c)	an assessment of strengths, weaknesses, and threats; 

  

	 	(d)	an identification and prioritization of initiatives and opportunities, including timeframes that take into account the requirements of this Order;

  

	 	(e)	a description of the Bank’s targeted market(s) and competitive factors in its identified target market(s) and a description of control systems to mitigate risks in
the Bank’s markets; 

  

	 	(f)	an assessment of the present and planned product lines (assets and liabilities) and the identification of appropriate risk management systems to identify, measure,
monitor, and control risks within the product lines; 

  

	 	(g)	a management employment and succession program to promote the retention and continuity of capable management; 

 

	 	(h)	assigned responsibilities and accountability for the strategic planning process; and 

 

	 	(i)	a description of systems and metrics designed to monitor the Bank’s progress in meeting the Strategic Plan’s goals and objectives. 

(2) If the Board’s Strategic Plan under paragraph (1) of this Article includes a proposed sale or merger of the Bank, the
Strategic Plan shall, at a minimum, address the steps that will be taken and the associated timeline to effectuate the implementation of that alternative. 
 (3) Prior to adoption by the Board, a copy of the Strategic Plan, and any subsequent amendments or revisions, shall be forwarded to the Director for review and prior written determination of no
supervisory objection. At the next Board meeting following receipt of a no supervisory objection from the Director, the Board shall adopt and the Bank, subject to Board review and ongoing monitoring, shall immediately implement and adhere to the
Strategic Plan. 

  
 3 

 (4) The Bank may not initiate any action that deviates significantly from the Strategic Plan
(that has received supervisory non-objection from the Director and that has been adopted by the Board) without a written determination of no supervisory objection from the Director. The Board must give the Director advance, written notice of its
intent to deviate significantly from the Strategic Plan, along with an assessment of the impact of such change on the Bank’s condition, including a profitability analysis and an evaluation of the adequacy of the Bank’s organizational
structure, staffing, management information systems, internal controls, and written policies and procedures to identify, measure, monitor, and control the risks associated with the change in the Strategic Plan. For the purposes of this Article,
changes that may constitute a significant deviation from the Strategic Plan include, but are not limited to, a change in the Bank’s marketing strategies, products and services, marketing partners, underwriting practices and standards, credit
administration, account management, collection strategies or operations, fee structure or pricing, accounting processes and practices, or funding strategy, any of which, alone or in aggregate, may have a material impact on the Bank’s operations
or financial performance; or any other changes in personnel, operations, or external factors that may have a material impact on the Bank’s operations or financial performance. 

(5) At least quarterly, the Board shall prepare a written evaluation of the Bank’s performance against the Strategic Plan and shall
include a description of the actions the Board will require the Bank to take to address any shortcomings, which shall be documented in the Board meeting minutes. Upon completion of its evaluation, the Board shall submit a copy to the Director.

  
 4 

 (6) The Board shall review and update the Strategic Plan at least annually and more
frequently if necessary or if required by the Director in writing. 
 (7) Until the Strategic Plan required under this Article
has been submitted by the Bank for the Director’s review, has received a written determination of no supervisory objection from the Director, and is being implemented by the Bank, the Bank shall not significantly deviate from the products,
services, asset composition and size, funding sources, structure, operations, policies, procedures, and markets of the Bank that existed before this Consent Order without first obtaining the Director’s prior written determination of no
supervisory objection to such significant deviation. Any request to the Director for prior written determination of no supervisory objections to a significant deviation must be submitted to the Director at least 30 days in advance of the significant
deviation. 
 ARTICLE III 
 CAPITAL PLAN AND HIGHER MINIMUMS 
 (1) The Bank shall achieve within one
hundred and twenty (120) days and thereafter maintain the following minimum capital ratios: 
  

	 	(a)	 Tier 1 capital at least equal to nine percent (9.00%) of adjusted total assets;1 and 

  

	 	(b)	total risk-based capital at least equal to twelve percent (12%) of risk-weighted assets. 

 

	1 	 Adjusted total assets is defined in 12 C.F.R. § 3.2(a) as the average total assets figure required to be computed for and stated in a bank’s
most recent quarterly Consolidated Report of Condition and Income minus end-of-quarter intangible assets, deferred tax assets, and credit-enhancing interest-only strips, that are deducted from Tier 1 capital, and minus nonfinancial equity
investments for which a Tier 1 capital deduction is required pursuant to section 2(c)(5) of appendix A of 12 C.F.R. § Part 3. 

  
 5 

 (2) The requirement in this Order to maintain a specific capital level means that the Bank
may not be deemed to be “well capitalized” for purposes of 12 U.S.C. § 1831o and 12 C.F.R. Part 6 pursuant to 12 C.F.R. § 6.4(b)(1)(iv). 
 (3) Within one hundred and twenty (120) days of the date of this Order, the Board shall develop and forward to the Director for his review, pursuant to paragraph (5) of this Article, a written a
three year Capital Plan. The Capital Plan shall be consistent with the Strategic Plan and include: 
  

	 	(a)	specific plans for the maintenance of adequate capital that may in no event be less than the requirements of paragraph (1); 

 

	 	(b)	projections for growth, earnings, and capital requirements based upon a detailed analysis of the Bank’s assets, liabilities, earnings (including specific actions
to improve earnings), fixed assets, and off-balance sheet activities; 

  

	 	(c)	a description of the assumptions used to determine financial projections and growth targets; 

 

	 	(d)	projections of the sources and timing of additional capital to meet the Bank’s current and future needs; 

 

	 	(e)	identification of the primary source(s) from which the Bank will strengthen and maintain its capital structure to meet the Bank’s needs; 

 

	 	(f)	contingency plans that identify alternative methods should the primary source(s) under (e) above not be available. 

(4) The Bank may declare or pay a dividend or make a capital distribution only: 

 

	 	(a)	when the Bank is in compliance with its approved Capital Plan and would remain in compliance with its approved Capital Plan immediately following the declaration or
payment of any dividend; 

  
 6 

	 	(b)	when the Bank is in compliance with 12 U.S.C. §§ 56 and 60; 

  

	 	(c)	when the Bank is in compliance with the minimum capital ratios set forth in paragraph (1) of this article; and 

 

	 	(d)	with the prior written determination of no supervisory objection by the Director. 

(5) Prior to the adoption by the Board, a copy of the Bank’s Capital Plan shall be submitted to the Director for a prior written
determination of no supervisory objection. The Board shall review and update the Bank’s Capital Plan at least annually and more frequently if necessary or if required by the Director in writing. Revisions to the Bank’s Capital Plan shall
be submitted to the Director for a prior written determination of no supervisory objection. At the next Board meeting following receipt of the Director’s written determination of no supervisory objection, the Board shall adopt the Capital Plan.
The Bank, subject to Board review and ongoing monitoring, shall implement and thereafter ensure adherence to the Capital Plan and any amendments or revisions thereto. 
 (6) At least quarterly, the Board shall prepare a written evaluation of the Bank’s performance against the Capital Plan and shall include a description of the actions the Board will require the Bank
to take to address any shortcomings, which shall be documented in the Board meeting minutes. Upon completion of its evaluation, the Board shall submit a copy to the Director. 
 (7) If the Bank fails to maintain the capital ratios required by paragraph (1) of this Article, violates paragraphs (3), or fails to implement a Capital Plan to which the Director has provided a
written no supervisory objection, then the Bank may, in the Director’s sole discretion, be deemed undercapitalized for purposes of this Order. The Bank shall take such corrective measures as the OCC may direct in writing from among the
provisions applicable to undercapitalized depository institutions under 12 U.S.C. § 1831o(e) and 12 C.F.R. Part 6 for 

  
 7 

 
national banks. For purposes of this requirement, an action “necessary to carry out the purpose of this section” under 12 U.S.C. § 1831o(e)(5) shall include restoration of the
Bank’s capital to the minimum ratios required by this Order, and any other action deemed advisable by the OCC to address the Bank’s capital deficiency or the safety and soundness of its operations. 

ARTICLE IV 

BOARD TO ENSURE COMPETENT MANAGEMENT 
 (1) Within one hundred and twenty (120) days of this Order, the Board shall adopt and take the necessary steps to implement corporate governance and decision-making processes to correct the
Bank’s deficiencies in management leadership and Board oversight as described in the Report of Examination (“ROE”) for the examination conducted as of March 31, 2011. At a minimum, the Board shall establish the following:

  

	 	(a)	clear lines of responsibility and authority for each member of senior management, including but not limited to, the Chief Credit Officer, Chief Operating Officer, Chief
Financial Officer, and President; 

  

	 	(b)	a process to evaluate, at least annually, the Bank’s overall internal operations, staffing, Board and management oversight and information systems, policies,
procedures and other risk management systems with time sensitive strategies to address any deficiencies; 

  

	 	(c)	operating policies and procedures designed to ensure: 

  

	 	(i)	that the Board monitors and measures compliance with the Board approved Strategic Plan (including risk tolerances), regulatory guidance and laws, rules, and
regulations; 

  
 8 

	 	(ii)	that the Board receives and reviews sufficient Bank information from management (including scope, frequency and content) on the operation of the Bank to enable them to
provide oversight and fulfill their fiduciary duties and other responsibilities under law and as outlined in the OCC’s The Directors Handbook and Duties and Responsibilities of Directors (Section 501 of the Comptroller’s Handbook).

  

	 	(d)	processes to ensure that management appropriately responds to any audit or compliance criticisms, and regulatory criticisms regarding: violations of law, unsafe or
unsound banking practices, and Matters Requiring Attention (collectively, “Material Criticisms”). Such processes shall include at a minimum: 

  

	 	(i)	requirements for the development of written action plans to address Material Criticisms that include corrective actions to be taken; deadlines for taking the corrective
action; and individual(s) responsible for taking the corrective action; 

  

	 	(ii)	a process for review and approval by the Board of management’s proposed actions to be taken to address Material Criticisms; and 

 

	 	(iii)	a tracking system that will ensure that Material Criticisms are reported to the Board and corrected in a timely manner. 

(2) The Board shall establish, at least annually, the objectives by which executive officers’ effectiveness will be measured.

 (3) The Board shall perform and prepare an annual written performance appraisal for each Bank executive officer that
evaluates performance according to the position’s description and responsibilities, adherence to the Strategic Plan, objectives established by the Board and the effectiveness of developing and successfully implementing action plans to remedy
issues raised in Reports of Examination or audit reports. Upon completion and at the request of the Director, copies of the performance appraisal shall be submitted to the Director. The Board shall ensure that the Bank addresses any identified
deficiencies in a manner consistent with paragraph (1) of this Article. 

  
 9 

 (4) The Board shall ensure that the Bank has sufficient processes, management, personnel,
and control systems to effectively implement and adhere to all provisions of this Order, and that Bank management and personnel have sufficient training and authority to execute their duties and responsibilities under this Order. 

ARTICLE V 

COMMERCIAL CREDIT RISK RATINGS 
 (1) Within ninety (90) days, the Board shall prepare and submit to the Director for a prior written determination of no supervisory objection, a written program designed to ensure that the risk
associated with the Bank’s loan portfolio are properly reflected and accounted for on the Bank’s books and records, to include, at a minimum, provisions requiring that: 

 

	 	(a)	the Bank’s loans and other assets are appropriately and timely risk rated and charged off by the lending officers using a loan grading system that is based upon
current facts, existing repayment terms and that is consistent with the guidelines set forth in Rating Credit Risk, A-RCR, of the Comptroller’s Handbook; and 

 

	 	(b)	officers and other appropriate personnel are held accountable, including in performance evaluations and compensation, for failing to appropriately and timely risk rate
and/or place loans on nonaccrual. 

 (2) At the next Board meeting following receipt of a no supervisory objection
from the Director, the Board shall adopt and the Bank, subject to Board review and ongoing monitoring, shall immediately implement and adhere to the Commercial Credit Risk Ratings. 

  
 10 

 ARTICLE VI 
 FINANCIAL ACCOUNTING STANDARDS 
 (1) Within ninety (90) days, the
Board shall prepare and submit to the Director for a prior written determination of no supervisory objection, a written program designed to achieve compliance with financial accounting standards to include, at a minimum, provisions requiring that:

  

	 	(a)	the Bank’s loan and other assets are timely designated as troubled debt restructurings in accordance with the instructions for preparation of public reports and
consistent with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 310-40 (pre-codification reference: Statement of Financial Accounting Standards (“FAS”) Statement No. 15) and
Accounting Standards Update 2011-2; 

  

	 	(b)	the Bank’s loans and other assets are timely designated as impaired and impairment timely measured, consistent with ASC 310-10 (pre-codification reference: FAS
Statement No. 114); and 

  

	 	(c)	officers and other appropriate personnel are held accountable, including in performance evaluations and compensation, for failing to appropriately and timely comply
with (1)(a) and (1)(b) of this Article. 

 (2) At the next Board meeting following receipt of a no supervisory
objection from the Director, the Board shall adopt and the Bank, subject to Board review and ongoing monitoring, shall immediately implement and adhere to the Financial Accounting Standards program. 

  
 11 

 ARTICLE VII 
 EXTERNAL LOAN REVIEW 
 (1) Within forty-five (45) days of this Order,
the Board shall employ a qualified, independent consultant or firm to perform semi-annual asset quality reviews of the Bank’s loan portfolio, with the first report due no later than June 30, 2012. The scope of the engagement shall provide
for a written report to be filed with the Board, and use a loan grading system consistent with GAAP and the guidelines set forth in Rating Credit Risk, A-RCR, of the Comptroller’s Handbook. Such reports shall, at a minimum, include the
consultant’s or firm’s comments and conclusions regarding: 
  

	 	(a)	the identification, type, rating, and amount of all criticized loans; 

  

	 	(b)	the identification and amount of delinquent and nonaccrual loans; 

  

	 	(c)	the identification/status of credit related violations of law or regulation; 

 

	 	(d)	credit underwriting and documentation exceptions; 

  

	 	(e)	credit analysis and documentation of such analysis; 

  

	 	(f)	accuracy of internal risk ratings; 

  

	 	(g)	completeness and effectiveness of problem loan workout plans; 

  

	 	(h)	the accuracy of the Bank’s recognition of troubled debt restructurings; 

 

	 	(i)	loans and other extensions of credit considered exceptions to, or not in conformance with, the Bank’s lending policies and procedures; 

 

	 	(j)	the identity of the loan officer who originated each loan reported in accordance with subparagraphs (a) through (i) of the Article; 

 

	 	(k)	overall credit administration practices; 

  

	 	(1)	concentrations of credit; 

  
 12 

	 	(m)	the accuracy of specific allocations to the Allowance for Loan and Lease Losses (“Allowance”) and the Allowance methodology; 

 

	 	(n)	an evaluation of the Bank’s efforts to manage and account for its Other Real Estate in accordance with GAAP; 

 

	 	(o)	loans and leases to affiliates, insiders, and related parties; and 

  

	 	(p)	any recommendations for improvements. 

 (2) Prior to the appointment or employment of any consultant or firm or entering into any contract with any consultant or firm, the Board shall submit the name and qualifications of the proposed
consultant or firm and the proposed scope and terms of employment to the Director for a prior written determination of no supervisory objection. After the OCC has advised the Bank that it does not take supervisory objection to the consultant or
firm, and the scope of the review, the Board shall immediately engage the consultant or firm pursuant to the proposed terms of the engagement. Thereafter, the Board shall monitor performance consistent with the engagement terms. 

(3) The Board or a designated committee shall review the independent loan review reports and ensure that, if appropriate, immediate,
adequate, and continuing remedial action, is taken upon the findings noted in the reports. 
 (4) A copy of loan review reports
submitted to the Board, as well as a summary of remedial actions taken and, if appropriate, planned, shall be documented and provided to the Director within 30 days of receiving such loan review report. 

  
 13 

 ARTICLE VIII  
 CRITICIZED ASSETS 
 (1) Within sixty (60) days, the Board shall adopt
and the Bank (subject to Board review and ongoing monitoring) shall implement and thereafter ensure adherence to a written program designed to protect the Bank’s interest in those assets criticized in the most recent Report of Examination
(“ROE”), in any subsequent ROE, by any internal or external loan review, or in any list provided to management by the National Bank Examiners during any examination as “doubtful,” “substandard,” or “special
mention.” The program shall include the development of Criticized Asset Reports (“CARs”) identifying all credit relationships and other assets totaling in aggregate five hundred thousand dollars ($500,000) or more, criticized as
“doubtful,” “substandard,” or “special mention.” The CARs must be updated and submitted to the Board and the Director monthly. Each CAR shall cover an entire credit relationship and include, at a minimum, analysis and
documentation of the following: 
  

	 	(a)	the origination date and any renewal or extension dates, amount, purpose of the loan, and the originating and current loan officer(s); 

 

	 	(b)	the expected primary and secondary sources of repayment, and an analysis of the adequacy of the repayment source; 

 

	 	(c)	the appraised value of supporting collateral and the position of the Bank’s lien on such collateral, where applicable, as well as other necessary documentation to
support the current collateral valuation; 

  

	 	(d)	an analysis of current and complete credit information, including cash flow analysis where loans are to be repaid from operations; 

  
 14 

	 	(e)	results of any FASB ASC 310-10 (pre-codification reference: FAS Statement No. 114) valuation; 

 

	 	(f)	significant developments, including a discussion of changes since the prior CAR, if any; and 

 

	 	(g)	the proposed action to eliminate the basis of criticism and the time frame for its accomplishment, including if appropriate an exit strategy. 

(2) The Bank may not extend credit, directly or indirectly, including renewals, modifications or extensions, to a borrower whose loans or
other extensions of credit are criticized in any ROE, in any internal or external loan review, or in any list provided to management by the National Bank Examiners during any examination, unless the Board or Board committe finds and documents in
writing that each of the following conditions has been met: 
  

	 	(a)	the extension of additional credit is necessary to promote the best interests of the Bank; 

 

	 	(b)	the Bank has performed a written credit and collateral analysis as required by paragraphs (1)(c) and (l)(d) of this Article and, if necessary, the proposed action
referred to in paragraph (l)(g) of this Article is revised, as appropriate; and 

  

	 	(c)	the Board’s formal plan to collect or strengthen the criticized asset will not be compromised by the extension of additional credit. 

A copy of the findings and approval of the Board or designated committee shall be maintained in the credit file of the affected borrower. 

  
 15 

 ARTICLE IX 
 ALLOWANCE FOR LOAN AND LEASE LOSSES 
 (1) The Board shall immediately
require and the Bank shall implement and thereafter adhere to a program for the maintenance of an adequate Allowance for Loan and Lease Losses (“Allowance”). The written program shall be consistent with the comments on maintaining a proper
ALLL found in the Interagency Policy Statement on the Allowance contained in OCC Bulletin 2006-47 (December 13, 2006) and with “Allowance for Loan and Lease Losses,” booklet A-ALLL of the Comptroller’s Handbook, and shall
incorporate the following: 
  

	 	(a)	procedures for determining whether a loan is impaired and measuring the amount of impairment, consistent with FASB ASC 310-10 (pre-codification reference: FAS Statement
No. 114); 

  

	 	(b)	procedures for segmenting the loan portfolio and estimating loss on groups of loans, consistent with ASC 310-10 and 450-20 (pre-codification reference: FAS Statement
No. 5); 

  

	 	(c)	procedures for validating the Allowance methodology; 

  

	 	(d)	procedures to ensure that the estimation of credit losses considers the relevant qualitative and environmental factors, with particular focus on the following:

  

	 	(i)	trends in the Bank’s internal risk ratings, delinquent and nonaccrual loans; 

 

	 	(ii)	results of the Bank’s external loan review; 

  

	 	(iii)	concentrations of credit in the Bank, present and prospective economic conditions; and 

 

	 	(iv)	the level of experience and abilities of the Bank’s lending staff. 

  
 16 

 (2) The program shall provide for a process for summarizing and documenting, for the
Board’s review and approval, the amount to be reported in the Consolidated Reports of Condition and Income (“Call Reports”) for the Allowance. Any deficiency in the Allowance shall be remedied in the quarter it is discovered, prior to
the filing of the Call Report, by additional provisions from earnings. 
 (3) The Board shall take the necessary steps to ensure
that an independent review and test of the Allowance sufficiency is performed prior to the filing of each Call Report beginning with the quarter ending March 31, 2012. 
 ARTICLE X 
 ACCOUNTING FOR REAL ESTATE OWNED 

(1) Within ninety (90) days, the Board shall review and revise the other real estate section (“OREO”) section of the
Bank’s loan policy. In reviewing the OREO policy, the Board shall refer to the Call Report instructions and appropriate FASB ASC requirements. At a minimum, the policy shall: 

 

	 	(a)	address proper accounting procedures for OREO properties from transfer to the Bank and until and upon sale to a third party; 

 

	 	(b)	address proper accounting treatment for OREO when Small Business Administration (“SBA”) guarantees and senior debt must be considered;

  

	 	(c)	include procedures to require timely appraisals pursuant to 12 C.F.R. § 34.85 and 12 C.F.R. Part 34, Subpart C; and 

 

	 	(d)	establish targeted write-downs at periodic intervals in the event that marketing strategies are unsuccessful. 

Upon completion, the Board shall provide a copy of the Bank’s revised written OREO policy to the Director. 

  
 17 

 (2) Within 90 days, the Board shall require a review of all OREO properties to ensure
foreclosed real estate was recorded at the fair value less cost to sale of the property at the time of foreclosure. 
 ARTICLE XI

 LIQUIDITY RISK MANAGEMENT PROGRAM 
 (1) The Board shall adhere to and implement the Bank’s liquidity risk management program, including assessing the following on an ongoing basis: 

 

	 	(a)	current and projected funding needs; 

  

	 	(b)	ensuring sufficient liquidity exists to meet current and projected needs; 

  

	 	(c)	efforts to reduce reliance on high cost funding and wholesale funding sources; and 

 

	 	(d)	compliance with the restrictions against brokered deposits in 12 C.F.R. § 337.6. 

(2) Upon the direction of the Director in writing, but no less frequently than annually, the Board shall review and revise the
Bank’s Liquidity Policy to ensure that it is appropriate in light of the Bank’s risk profile and Strategic and Capital Plans. 
 (3) The proposed revised Liquidity Policy shall be provided to the Director for review and prior written determination of no supervisory objection within 30 days of any revision. At the next Board meeting
following receipt of a no supervisory objection from the Director, the Board shall adopt and the Bank, subject to Board review and ongoing monitoring, shall immediately implement and adhere to the Liquidity Policy. 

(4) On a quarterly basis, the Board shall submit liquidity monitoring reports to the Director. 

  
 18 

 ARTICLE XII  
 VIOLATIONS OF LAW 
 (1) The Board shall require and the Bank shall
immediately take all necessary steps to correct each violation of law, rule, or regulation cited in the most recent ROE or any subsequent ROE, or brought to the Board’s or Bank’s attention in writing by management, regulators, auditors,
loan review, or other compliance efforts. Within ninety (90) days after the violation is cited or brought to the Board’s or Bank’s attention, the Bank shall provide to the Board a list of any violations that have not been corrected.
This list shall include an explanation of the actions taken to correct the violation, the reasons why the violation has not yet been corrected, and a plan to correct the violation by a specified date. 

(2) The monthly progress reports required by Article I of this Order shall include the date and manner in which each correction has been
effected during that reporting period. 
 (3) Within ninety (90) days, the Board shall adopt and the Bank (subject to Board
review and ongoing monitoring) shall implement and thereafter ensure adherence to 
  

	 	(a)	specific procedures to prevent future violations as cited in the most recent ROE; and 

 

	 	(b)	general procedures addressing compliance management that incorporate internal control systems and education of employees regarding laws, rules, and regulations
applicable to their areas of responsibility. 

 (4) Upon adoption, a copy of these procedures shall be promptly
forwarded to the Director. 

  
 19 

 ARTICLE XIII  
 ADMINISTRATIVE APPEALS AND EXTENSIONS OF TIME 
 (1) If the Bank requires an
extension of any timeframe within this Order, the Board shall submit a written request to the Director asking for relief. Any written requests submitted pursuant to this Article shall include a statement setting forth in detail the special
circumstances that prevent the Bank from complying with a provision and that require an extension of a timeframe within this Order. 
 (2) All such requests shall be accompanied by relevant supporting documentation, and any other facts upon which the Bank relies. The Director’s decision concerning a request is final and not subject
to further review. 
 ARTICLE XIV  
 OTHER PROVISIONS 
 (1) Although the Bank is by this Order required to
submit certain proposed actions and programs for the review or prior written determination of no supervisory objection of the Director, the Board has the ultimate responsibility for proper and sound management of the Bank and the completeness and
accuracy of the Bank’s books and records. 
 (2) It is expressly and clearly understood that if, at any time, the
Comptroller deems it appropriate in fulfilling the responsibilities placed upon it by the several laws of the United States of America to undertake any action affecting the Bank, nothing in this Order shall in any way inhibit, estop, bar or
otherwise prevent the Comptroller from so doing. 
 (3) Unless otherwise stated, any time limitations imposed by this Order
shall begin to run from the effective date of this Order. Such time limitations may be extended in writing by the Director for good cause upon written application by the Board. 

  
 20 

 (4) The provisions of this Order are effective upon issuance of this Order by the
Comptroller, through his authorized representative whose hand appears below, and shall remain effective and enforceable, except to the extent that, and until such time as, any provisions of this Order shall have been amended, suspended, waived, or
terminated in writing by the Comptroller. 
 (5) In each instance in this Order in which the Board or a Board committee is
required to ensure adherence to, and undertake to perform certain obligations of the Bank, it is intended to mean that the Board shall: 
  

	 	(a)	authorize and adopt such actions on behalf of the Bank as may be necessary for the Bank to perform its obligations and undertakings under the terms of this Order;

  

	 	(b)	require the timely reporting by Bank management of such actions directed by the Board to be taken under the terms of this Order; 

 

	 	(c)	follow-up on any non-compliance with such actions in a timely and appropriate manner; and 

 

	 	(d)	require corrective action be taken in a timely manner of any non-compliance with such actions. 

(6) This Order is intended to be, and shall be construed to be, a final order issued pursuant to 12 U.S.C. § 1818(b), and expressly
does not form, and may not be construed to form, a contract binding on the Comptroller or the United States. 

  
 21 

 (7) The terms of this Order, including this paragraph, are not subject to amendment or
modification by any extraneous expression, prior agreements or prior arrangements between the parties, whether oral or written. 
  

	
	IT IS SO ORDERED, this 26th day of January, 2012.
	
	/s/ James R. Moore
	James R. Moore
	Director for Special Supervision

  
 22

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