Document:

EXHIBIT 10.21

                FIRST AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT

           This First Amendment to Executive Employment Agreement is made
effective as of the 1st day of February, 2000 among FIRST PROFESSIONAL BANK,
N.A. (the "Bank") and PROFESSIONAL BANCORP, INC. ("PBI") (PBI and the Bank being
collectively referred to herein as "Employer") and Gene Gaines (Executive").

                                    RECITALS

           WHEREAS, the Bank and Executive entered into an Employment Agreement
dated effective as of the 21st day of October, 1999 (the "Employment
Agreement"); and

           WHEREAS, PBI now desires to also employ Executive, and PBI, the Bank
and Executive desire to amend the Employment Agreement in certain respects.

           NOW, THEREFORE, in consideration of the foregoing promises and the
terms covenants and conditions that are set forth herein, the parties hereto
agree as follows:

1. SECTION 3. The first sentence of Section 3 of the Employment Agreement is
hereby amended to read as follows:

                     "Effective as of the date hereof, Executive shall serve as
           the Chairman of the Board and Chief Executive Officer of both PBI and
           the Bank and shall perform the duties and the responsibilities set
           forth in Exhibit A attached hereto and incorporated herein by
           reference and shall have the authority and perform such other duties,
           services and responsibilities incident in such positions as are
           customary of the Chairman of the Board and Chief Executive Officer of
           a bank and a bank holding company, and such other reasonable duties
           and responsibilities that are determined from time to time by the
           Boards of Directors of the Bank and PBI (collectively, the "Board")."

2. SECTION 4(A). The first sentence of Section 4(a) of the Employment Agreement
is hereby amended to read as follows:

                     "Effective February 1, 2000, Executive shall receive an
           annual base salary of Two Hundred Thousand Dollars ($200,000) during
           the remainder of the Term (the "Annual Base Salary"), payable in
           equally, bi-weekly installments."

3. SECTION 4(C). Section 4(c) is hereby amended and restated in its entirety to
read as follows:

                     "(c) STOCK OPTIONS. Effective February 1, 2000, the options
           to purchase 30,000 shares of PBI's common stock granted to Executive
           on November 1, 1999 are cancelled. In consideration of Executive
           agreeing to enter into this First Amendment to Executive Employment

<PAGE>

           Agreement, PBI shall grant to Executive, effective February 1, 2000,
           stock options to purchase 100,000 shares of PBI. Of these options, as
           many thereof as possible shall be incentive stock options (as
           permitted by the applicable plan), and the remainder shall be
           non-qualified options. The options shall vest as follows: (i) options
           to purchase 50,000 shares shall vest immediately on the effective
           date hereof, (ii) options to purchase 25,000 shares shall vest on
           February 1, 2001, and (iii) the remaining options to purchase 25,000
           shares shall vest on February 1, 2002. The exercise price of the
           options shall be the average of the closing sales prices of the
           shares of PBI during the 30 day period immediately preceding February
           1, 2000."

4. RATIFICATION. The remainder of the Employment Agreement is hereby ratified in
all respects.

           IN WITNESS WHEREOF, this First Amendment has been executed by
Executive and by duly authorized officers of the Bank and PBI effective as of
the date first written above.

/s/ Gene Gaines
___________________________________          FIRST PROFESSIONAL BANK, N.A.
Gene Gaines, Executive
                                             By:  /s/ Terry Hartshorn
                                             Title: Vice Chairman

                                             PROFESSIONAL BANCORP, INC.

                                             By: /s/ Terry Hartshorn
                                             Title:Vice ChairmanEXHIBIT 10.22

                FIRST AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT

           This First Amendment to Executive Employment Agreement is made
effective as of the 1st day of February, 2000 among FIRST PROFESSIONAL BANK,
N.A. (the "Bank") and PROFESSIONAL BANCORP, INC. ("PBI") (PBI and the Bank being
collectively referred to herein as "Employer") and Larry Patapoff (Executive").

                                    RECITALS

           WHEREAS, Employer and Executive entered into an Employment Agreement
dated effective as of the 1st day of November, 1999 (the "Employment
Agreement"); and

           WHEREAS, Employer and Executive desire to amend the Employment
Agreement in certain respects.

           NOW, THEREFORE, in consideration of the foregoing promises and the
terms covenants and conditions that are set forth herein, the parties hereto
agree as follows:

1. SECTION 3. The first sentence of Section 3 of the Employment Agreement is
hereby amended to read as follows:

                     "Effective as of the date hereof, Executive shall serve as
           the Senior Vice President and Chief Financial Officer of PBI and
           Executive Vice President, Chief Operating Officer and Chief Financial
           Officer of the Bank and shall perform the duties and the
           responsibilities set forth in Exhibit A attached hereto and
           incorporated herein by reference and shall have the authority and
           perform such other duties, services and responsibilities incident in
           such positions as are customary of such offices of a bank and a bank
           holding company, and such other reasonable duties and
           responsibilities that are determined from time to time by the Boards
           of Directors of the Bank and PBI (collectively, the "Board")."

2. SECTION 4(A). The first sentence of Section 4(a) of the Employment Agreement
is hereby amended to read as follows:

                     "Effective February 1, 2000, Executive shall receive an
           annual base salary of One Hundred Sixty Thousand Dollars ($160,000)
           during the remainder of the Term (the "Annual Base Salary"), payable
           in equally, bi-weekly installments."

3. SECTION 4(C). Section 4(c) is hereby amended and restated in its entirety to
read as follows:

                     "(c) STOCK OPTIONS. Effective February 1, 2000, the options
           to purchase 10,000 shares of PBI's common stock granted to Executive
           on November 1, 1999 are cancelled. In consideration of Executive

<PAGE>

           agreeing to enter into this First Amendment to Executive Employment
           Agreement, PBI shall grant to Executive, effective February 1, 2000,
           stock options to purchase 30,000 shares of PBI. Of these options, as
           many thereof as possible shall be incentive stock options (as
           permitted by the applicable plan), and the remainder shall be
           non-qualified options. The options shall vest as follows: (i) options
           to purchase 15,000 shares shall vest immediately on the effective
           date hereof, (ii) options to purchase 7,500 shares shall vest on
           February 1, 2001, and (iii) the remaining options to purchase 7,500
           shares shall vest on February 1, 2002. The exercise price of the
           options shall be the average of the closing sales prices of the
           shares of PBI during the 30 day period immediately preceding February
           1, 2000."

4. SECTION 4(D). Section 4(d) of the Employment Agreement is hereby amended and
restated to read as follows:

                     "(d) SEVERANCE. If during the two-year period beginning on
           the date of this Agreement, (i) PBI or the Bank sells all or
           substantially all of its assets to, or merges with, a third party,
           AND (ii) Executive's employment is terminated thereafter (within such
           two-year period) by Employer for other than Cause or the death or
           Incapacity of Executive or by Executive for Good Reason, then
           Employer will continue to pay Executive the monthly base salary that
           he is earning at the time of such termination for a period of twelve
           months following the Date of Termination."

5. RATIFICATION. The remainder of the Employment Agreement is hereby ratified in
all respects.

           IN WITNESS WHEREOF, this First Amendment has been executed by
Executive and by duly authorized officers of the Bank and PBI effective as of
the date first written above.

/s/ Larry Patapoff
___________________________________       FIRST PROFESSIONAL BANK, N.A.
Larry Patapoff, Executive
                                          By:/s/ Terry Hartshorn
                                          Title: Vice Chairman

                                          PROFESSIONAL BANCORP, INC.

                                          By: /s/  Terry Hartshorn
                                          Title: Vice ChairmanEXHIBIT 10.23

                            AGREEMENT BY AND BETWEEN
                         First Professional Bank, N. A.,
                            Santa Monica, California
                                       and
                  The Office of the Comptroller of the Currency

           First Professional Bank, N. A., Santa Monica, California (Bank) and
the Comptroller of the Currency of the United States of America (Comptroller)
wish to protect the interests of the depositors, other customers, and
shareholders of the Bank, and, toward that end, wish the Bank to operate safely
and soundly and in accordance with all applicable laws, rules and regulations.

           The Comptroller, through his National Bank Examiner, has examined the
Bank, and his findings are contained in the Report of Examination, dated
November 8, 1999 (ROE).

           In consideration of the above premises, it is agreed, between the
Bank, by and through its duly elected and acting Board of Directors (Board), and
the Comptroller, through his authorized representative, that the Bank shall
operate at all times in compliance with the articles of this Agreement.

                                    Article I

                                  JURISDICTION
                                  ------------

           (1) This Agreement shall be construed to be a "written agreement
entered into with the agency" within the meaning of 12 U.S.C.ss.1818(b)(1).

           (2) This Agreement shall be construed to be a "written agreement
between such depository institution and such agency" within the meaning of 12
U.S.C.ss.1818(e)(1) and 12 U.S.C.ss.1818(i)(2).

           (3) This Agreement shall be construed to be a "formal written
agreement" within the meaning of 12 C.F.R.ss. 5.51(c)(6)(ii). SEE 12
U.S.C.ss.1831i.

           (4) This Agreement shall be construed to be a "written agreement"
within the meaning of 12 U.S.C.ss.1818(u)(1)(A).

<PAGE>

           (5) All reports or plans which the Bank or Board has agreed to submit
to the Assistant Deputy Comptroller pursuant to this Agreement shall be
forwarded to the:

                     Assistant Deputy Comptroller
                     Southern California - North Field Office
                     Comptroller of the Currency
                     550 North Brand Boulevard, Suite 500
                     Glendale, California 91203

                                   Article II

                              COMPLIANCE COMMITTEE
                              --------------------

           (1) Within thirty (30) days, the Board shall appoint a Compliance
Committee of at least five (5) directors, of which no more than two (2) shall be
employees of the Bank or any of its affiliates (as the term "affiliate" is
defined in 12 U.S.C.ss.371c(b)(1)), or a family member of any such person. Upon
appointment, the names of the members of the Compliance Committee shall be
submitted in writing to the Assistant Deputy Comptroller. The Compliance
Committee shall be responsible for monitoring and coordinating the Bank's
adherence to the provisions of this Agreement.

           (2) The Compliance Committee shall meet at least monthly.

           (3) Within sixty (60) days of the appointment of the Committee and
quarterly thereafter, the Compliance Committee shall submit a written progress
report to the Board setting forth in detail:

                     (a)  actions taken to comply with each Article of this
                          Agreement; and

                     (b)  the results of those actions.

           (4) The Board shall forward a copy of the Compliance Committee's
report, with any additional comments by the Board, to the Assistant Deputy
Comptroller.

                                       2
<PAGE>

                                   Article III

                                    PRESIDENT
                                    ---------

           (1) Within ninety (90) days. the Board shall appoint a capable,
full-time and permanent president who shall be vested with sufficient executive
authority to fulfill the duties and responsibilities of the position and ensure
the safe and sound operation of the Bank.

           (2) Prior to the appointment of any individual to the position of
president, the Board shall submit to the Assistant Deputy Comptroller the
following information:

                     (a)  the information sought in the "Changes in Directors
                          and Senior Executive Officers" booklet of the
                          Comptroller's Corporate Manual, dated April 1998, for
                          the proposed individual;

                     (b)  a written statement of the Board's reasons for
                          selecting the proposed individual: and

                     (c)  a written description of the proposed individual's
                          duties and responsibilities.

           (3) The Assistant Deputy Comptroller shall have the power of veto
over the employment of the proposed president. However, the failure to exercise
such veto power shall not constitute an approval or endorsement of the proposed
officer.
           (4) The requirement to submit information and the prior veto
provisions of this Article are based on the authority of 12 U.S.C. ss. 181 8(b)
and do not require the Comptroller to complete his review and act on any such
information or authority within ninety (90) days.

                                       3
<PAGE>

                                   Article IV

                             SENIOR LENDING OFFICER
                             ----------------------

           (1) Within ninety (90) days, the Board shall appoint a capable,
full-time and permanent senior lending officer who shall be vested with
sufficient executive authority to fulfill the duties and responsibilities of the
position and ensure the safe and sound operation of the Bank.

           (2) Prior to the appointment of any individual to the senior lending
officer position, the Board shall submit to the Assistant Deputy Comptroller the
following information:

                (a)  the information sought in the "Changes in Directors and
                     Senior Executive Officers" booklet of the Comptroller's
                     Corporate Manual, dated April 1998, for the proposed
                     individual;

                (b)  a written statement of the Board's reasons for selecting
                     the proposed individual; and

                (c)  a written description of the proposed individual's duties
                     and responsibilities.

           (3) The Assistant Deputy Comptroller shall have the power of veto
over the employment of the proposed senior lending officer. However, the failure
to exercise such veto power shall not constitute an approval or endorsement of
the proposed officer.

           (4) The requirement to submit information and the prior veto
provisions of this Article are based on the authority of 12 U.S.C. ss. 181 8(b)
and do not require the Comptroller to complete his review and act on any such
information or authority within ninety (90) days.

                                       4

<PAGE>

                                    Article V

                             LOAN WORKOUT DEPARTMENT
                             -----------------------

           (1) Within ninety (90) days, the Board shall establish a Loan Workout
Department for the purpose of restoring and reclaiming classified assets,
consistent with OCC Banking Circular 255, including commercial real estate
loans.
           (2) The Loan Workout Department shall take all steps necessary to
improve the operation of the Bank's workout function including, but not limited
to:

                (a)  the establishment of policies and procedures to
                               distinguish assets that should be managed by the
                               Loan Workout Department from assets that should
                               be managed by the originating unit;

                (b)  the establishment of policies and procedures to require
                     assets that remain with the originating unit are managed
                     according to the standards of the Loan Workout Department;

                (c)  the development and implementation of management
                     information systems to track workloads and staffing
                     requirements within the Loan Workout Department; and

                (d)  the development and implementation of management
                     information systems to measure the success of workout
                     activities.

           (3) Upon completion, a copy of the policies and procedures required
in paragraph (2) shall be forwarded to the Assistant Deputy Comptroller for
review and approval.

           (4) The Board shall ensure that the Loan Workout Department receives
staffing and funding support necessary to maintain its sound operation.

                                        5

<PAGE>

                                   Article VI

                                OVERDRAFT POLICY
                                ----------------

           (1) The Board shall immediately implement, and thereafter ensure Bank
adherence to, a written policy concerning the extension of overdrafts that shall
include, at a minimum:

                (a)  conditions and circumstances under which overdrafts will be
                     allowed, taking into consideration the Bank's loss
                     experience with prior overdrafts;

                (b)  charges that will be levied against depositors using
                     overdrafts;

                (c)  conditions and circumstances under which overdrafts will be
                     permitted to principal shareholders or the related
                     interests (as that term is defined in 12 C.F.R. Part 215)
                     of executive officers, directors or principal shareholders;
                     and

                (d)  conditions and circumstances under which overdrafts will be
                     charged off.

           (2) The Board shall ensure that the Bank has processes, personnel,
and control systems to ensure implementation of, and adherence to, the policy
developed pursuant to this Article.

                                   Article VII

                            LOAN PORTFOLIO MANAGEMENT
                            -------------------------

(1) The Board shall, within ninety (90) days, develop, implement, and thereafter
ensure Bank adherence to a written program to improve the Bank's loan portfolio
management. The program shall include, but not be limited to:

                (a)  procedures to ensure satisfactory and perfected collateral
                     documentation;

<PAGE>

                (b)  procedures to ensure that extensions of credit are granted,
                     by renewal or otherwise, to any borrower only after
                     obtaining and analyzing current and satisfactory credit
                     information;

                (c)  procedures to ensure conformance with loan approval
                     requirements;

                (d)  a system to track and analyze exceptions;

                (e)  procedures to ensure conformance with Call Report
                     instructions;

                (f)  procedures to ensure the accuracy of internal management
                     information systems:

                (g)  a performance appraisal process, including performance
                     appraisals, job descriptions, and incentive programs for
                     loan officers, which adequately consider their performance
                     relative to policy compliance, documentation standards,
                     accuracy in credit grading, and other loan administration
                     matters; and

                (h)  procedures to track and analyze concentrations of credit,
                     significant economic factors, and general conditions and
                     their impact on the credit quality of the Bank's loan and
                     lease portfolios.

           (2) Upon completion, a copy of the program shall be forwarded to the
Assistant Deputy Comptroller for review and approval.

           (3) Within ninety (90) days, the Board shall develop, implement, and
thereafter ensure Bank adherence to systems that provide for effective
monitoring of:

                (a)  early problem loan identification to assure the timely
                     identification and rating of loans and leases based on
                     lending officer submissions;

<PAGE>

                (b)  statistical records that will serve as a basis for
                     identifying sources of problem loans and leases by
                     industry, size, collateral, division, group, indirect
                     dealer, and individual lending officer;

                (c)  previously charged-off assets and their recovery potential;

                (d)  compliance with the Bank's lending policies and laws,
                     rules, and regulations pertaining to the Bank's lending
                     function;

                (e)  adequacy of credit and collateral documentation; and

                (f)  concentrations of credit.

           (4) Beginning March 31, 2000, on a quarterly basis management shall
provide the Board with written reports including, at a minimum, the following
information:

                (a)  the identification, type, rating, and amount of problem
                     loans and leases;

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

                (c)  credit and collateral documentation exceptions;

                (d)  the identification and status of credit related violations
                     of law, rule or regulation;

                (e)  the identity of the loan officer who originated each loan
                     reported in accordance with subparagraphs (a) through (d)
                     of this Article and Paragraph;

                (f)  an analysis of concentrations of credit, significant
                     economic factors, and general conditions and their impact
                     on the credit quality of the Bank's loan and lease
                     portfolios;

                (g)  the identification and amount of loans and leases to
                     executive officers, directors, principal shareholders (and
                     their related interests) of the Bank; and

<PAGE>

                (h)  the identification of loans and leases not in conformance
                     with the Bank's lending and leasing policies, and
                     exceptions to the Bank's lending and leasing policies.

           (5) The Board shall ensure that the Bank has processes, personnel,
and control systems to ensure implementation of and adherence to the program and
systems developed pursuant to this Article.

<PAGE>

                                  Article VIII

                                   LOAN REVIEW
                                   -----------

           (1) Within sixty (60) days, the Board shall establish an effective,
independent and ongoing loan review system to review, at least quarterly, the
Bank's loan and lease portfolios to assure the timely identification and
categorization of problem credits. The system shall provide for a written report
to be filed with the Board after each review and shall use a loan and lease
grading system consistent with the guidelines set forth in Section 215 of the
COMPTROLLER'S HANDBOOK FOR NATIONAL BANK EXAMINERS. Such reports shall, at a
minimum, include conclusions regarding:

                (a)  the overall quality of the loan and lease portfolios;

                (b)  the identification, type, rating, and amount of problem
                     loans and leases;

                (c)  the identification and amount of delinquent loans and
                     leases;

                (d)  credit and collateral documentation exceptions;

                (e)  the identification and status of credit related violations
                     of law, rule or regulation;

                (f)  the identity of the loan officer who originated each loan
                     reported in accordance with subparagraphs (b) through (e)
                     of the Article;

                (g)  concentrations of credit;

                (h)  loans and leases to executive officers, directors,
                     principal shareholders (and their related interests) of the
                     Bank; and

                (i)  loans and leases not in conformance with the Bank's lending
                     and leasing policies, and exceptions to the Bank's lending
                     and leasing policies.

<PAGE>

           (2) Within sixty (60) days, the Board shall develop, implement, and
thereafter ensure Bank adherence to a written program providing for independent
review of problem loans and leases in the Bank's loan and lease portfolios for
the purpose of monitoring portfolio trends, on at least a quarterly basis. The
program shall require a quarterly report to the Board. At a minimum, the program
shall provide for an independent reviewer's assessment of the Bank's:

                (a)  monitoring systems for early problem loan identification to
                     assure the timely identification and rating of loans and
                     leases based on lending officer submissions;

                (b)  statistical records that serve as a basis for identifying
                     sources of problem loans and leases by industry, size,
                     collateral, division, group, indirect dealer, and
                     individual lending officer;

                (c)  system for monitoring previously charged-off assets and
                     their recovery potential;

                (d)  system for monitoring compliance with the Bank's lending
                     policies and laws, rules, and regulations pertaining to the
                     Bank's lending function; and

                (e)  system for monitoring the adequacy of credit and collateral
                     documentation.

           (3) A written description of the program called for in this Article
shall be forwarded to the Assistant Deputy Comptroller for review and approval.

           (4) The Board shall ensure that the Bank has processes, personnel,
and control systems to ensure implementation of and adherence to the program
developed pursuant to this Article.

<PAGE>

           (5) The Board shall evaluate the internal loan and lease review
report(s) and shall ensure that immediate, adequate and continuing remedial
action, if appropriate, is taken upon all findings noted in the report(s).

           (6) A copy of the reports submitted to the Board, as well as
documentation of the action taken by the Bank to collect or strengthen assets
identified as problem credits, shall be preserved in the Bank.

                                   Article IX

                                CRITICIZED ASSETS
                                -----------------

           (1) The Bank shall take immediate and continuing action to protect
its interest in those assets criticized in the ROE, in any subsequent Report of
Examination, by internal or external loan review, or in any list provided to
management by the National Bank Examiners during any examination.

           (2) Within sixty (60) days, the Board shall adopt, implement, and
thereafter ensure Bank adherence to a written program designed to eliminate the
basis of criticism of assets criticized in the ROE, in any subsequent Report of
Examination, or 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." This program shall include, at
a minimum:

                (a)  an identification of the expected sources of repayment;

                (b)  the appraised value of supporting collateral and the
                     position of the Bank's lien on such collateral where
                     applicable;

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

<PAGE>

                (d)  the proposed action to eliminate the basis of criticism and
                     the time frame for its accomplishment.

           (3) Upon adoption, a copy of the program for all criticized assets
equal to or exceeding one hundred thousand dollars ($ 100,000) shall be
forwarded to the Assistant Deputy Comptroller.

           (4) The Board shall ensure that the Bank has processes, personnel,
and control systems to ensure implementation of and adherence to the program
developed pursuant to this Article.

           (5) The Board, or a designated committee, shall conduct a review, on
at least a quarterly basis, to determine:

                (a)  the status of each criticized asset or criticized portion
                     thereof that equals or exceeds one hundred thousand dollars
                     ($100,000);

                (b)  management's adherence to the program adopted pursuant to
                     this Article;

                (c)  the status and effectiveness of the written program; and
                     the need to revise the program or take alternative action.

           (6) A copy of each review shall be forwarded to the Assistant Deputy
Comptroller on a quarterly basis.

           (7) The Bank may extend credit, directly or indirectly, including
renewals, extensions or capitalization of accrued interest, to a borrower whose
loans or other extensions of credit are criticized in the ROE, in any subsequent
Report of Examination, in any internal or external loan review, or in any list
provided to management by the National Bank Examiners during any examination and
whose aggregate loans or other extensions exceed one hundred thousand dollars ($
100,000) only if each of the following conditions is met:

                (a)  the Board or designated committee finds that the extension
                     of additional credit is necessary to promote the best
                     interests of the Bank and that prior to renewing, extending
                     or capitalizing any additional credit, a majority of the
                     full Board (or designated committee) approves the credit
                     extension and records, in writing, why such extension is
                     necessary to promote the best interests of the Bank; and

                (b)  a comparison to the written program adopted pursuant to
                     this Article shows that the Board's formal plan to collect
                     or strengthen the criticized assets will not be
                     compromised.

           (8) A copy of the approval of the Board or of the designated
committee shall be maintained in the file of the affected borrower.

                                    Article X

                            ADHERENCE TO LOAN POLICY
                            ------------------------

           (1) Within sixty (60) days, the Board shall establish a system to
track and analyze the aggregate volume of loans that do not conform to the
underwriting standards in the Bank's Loan Policies and Procedures Manual.

           (2) Within sixty (60) days, the Board shall establish risk limits for
the aggregate volume of such loans and shall ensure that the Bank has processes,
personnel and control systems to prevent the Bank from exceeding such risk
limits in the future.

                                   Article XI

                            ORGANIZATIONAL STRUCTURE
                            ------------------------

           (1) Within sixty (60) days, the Board shall establish an
organizational structure that provides clear lines of authority and shall
eliminate any confusion concerning the authority and responsibilities of the
president and chief executive officer by developing detailed job descriptions
for each position.

<PAGE>

           (2) Upon completion, a copy of the documents required in paragraph (1
) shall be forwarded to the Assistant Deputy Comptroller for review and
approval.

           (3) The Board shall ensure that the Executive Loan Committee consists
of, at a minimum, two outside directors, a president who is a permanent and
full-time employee, and a senior lending officer who is a permanent and
full-time employee, as required by the Bank's policy and safe and sound banking
practices.

                                   Article XII

                           CONFLICT OF INTEREST POLICY

           (1) Within ninety (90) days, the Board shall review the Bank's
consulting agreement and relationship with Network Health Financial Services to
determine whether there are any actual or potential conflicts of interest
resulting therefrom and shall seek to eliminate or control any such conflicts by
amending the agreement or through other appropriate means.

           (2) Within ninety (90) days, the Board shall adopt, implement, and
thereafter ensure Bank adherence to a written, comprehensive conflict of
interest policy applicable to the Bank's and the Bank's holding company's
directors, principal shareholders, executive officers, affiliates, employees and
consultants (Insiders), and the related interests of such Insiders. The policy,
in addition to defining a conflict of interest, shall address:

                (a)  avoidance of conflicts of interest and breaches of
                     fiduciary duty, and the appearance of conflicts of
                     interest;

                (b)  involvement in the loan approval process of Insiders who
                     may benefit directly or indirectly from the decision to
                     grant credit;

<PAGE>

                (c)  disclosure of actual and potential conflicts of interest to
                     the Board, and periodic disclosure of "related interests"
                     as defined by 12 C.F.R. Part 215;

                (d)  disclosure of any Insider's material interest in the
                     business of a borrower, an applicant, or other customer of
                     the Bank; and

                (e)  restrictions on and disclosure of receipt of anything of
                     value by Insiders, directly or indirectly, from borrowers,
                     loan applicants, other customers, or suppliers of the Bank.

            (3) Upon adoption, a copy of this conflict of interest policy shall
be forwarded to the Assistant Deputy Comptroller for review and approval.

           (4) The Board shall ensure that the Bank has processes, personnel,
and control systems to ensure implementation of and adherence to the policy
developed pursuant to this Article.

           (5) Within ninety (90) days, the Compliance Committee shall conduct a
review of the Bank's existing relationships with its and its holding company's
directors, executive officers, affiliates, principal shareholders, employees,
consultants and their related interests for the purpose of identifying
relationships not in conformity with the policy. The Board shall ensure that:

                (a)  any nonconforming relationships are brought into conformity
                     with the policy within ninety (90) days; and

                (b)  that within ninety (90) days the Bank is properly
                     reimbursed for:

                     (i)  any excess or improper payments to Insiders and their
                          related interests; and

                     (ii) any excess or improper payments for services provided
                          by Insiders and their related interests.

<PAGE>

           (6) Thereafter, the Board shall review all proposed transactions, or
modifications of existing relationships, between the Bank and any of its or its
holding company's directors, executive officers, affiliates, principal
shareholders, employees, consultants and their related interests. Documentation
supporting these reviews shall be in writing and preserved in the Bank.

                                  Article XIII

                                 STRATEGIC PLAN
                                 --------------

           (l) Within ninety (90) days, the Board shall adopt, implement, and
thereafter ensure Bank adherence to a written strategic plan for the Bank
covering at least a three-year period. The strategic plan shall establish
objectives for the Bank's overall risk profile, earnings performance, growth,
balance sheet mix, off-balance sheet activities, liability structure, capital
adequacy, reduction in the volume of non-performing assets, product line
development and market segments that the Bank intends to promote or develop,
together with strategies to achieve those objectives and, at a minimum, include:

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

                (b)  an assessment of the Bank's present and future operating
                     environment;

                (c)  the development of strategic goals and objectives to be
                     accomplished over the short and long term;

                (d)  an identification of the Bank's present and future product
                     lines (assets and liabilities) that will be utilized to
                     accomplish the strategic goals and objectives established
                     in (l )(c) of this Article;

                (e)  an evaluation of the Bank's internal operations, staffing
                     requirements, board and management information systems and
                     policies and procedures for their adequacy and contribution
                     to the accomplishment of the goals and objectives developed
                     under (l)(c) of this Article;

<PAGE>

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

                (g)  product line development and market segments that the Bank
                     intends to promote or develop;

                (h)  a financial forecast to include projections for major
                     balance sheet and income statement accounts and desired
                     financial ratios over the period covered by the strategic
                     plan;

                (i)  control systems to mitigate risks associated with planned
                     new products, growth, or any proposed changes in the Bank's
                     operating environment;

                (j)  specific plans to establish responsibilities and
                     accountability for the strategic planning process, new
                     products, growth goals, or proposed changes in the Bank's
                     operating environment; and

                (k)  systems to monitor the Bank's progress in meeting the
                     plan's goals and objectives.

           (2) Upon adoption, a copy of the plan shall be forwarded to the
Assistant Deputy Comptroller for review and approval.

           (3) The Board shall ensure that the Bank has processes, personnel,
and control systems to ensure implementation of and adherence to the plan
developed pursuant to this Article.

                                   Article XIV

                                   PROFIT PLAN
                                   -----------

<PAGE>

           (1) Within sixty (60) days, the Board shall develop, implement, and
thereafter ensure Bank adherence to a written profit plan to improve and sustain
the earnings of the Bank. This plan shall include, at minimum, the following
elements:

                (a)  identification of the major areas in and means by which the
                     Board will seek to improve the Bank's operating
                     performance;

                (b)  realistic and comprehensive budgets, including projected
                     balance sheets and year-end income statements;

                (c)  a budget review process to monitor both the Bank's income
                     and expenses, and to compare actual figures with budgetary
                     projections; and

                (d)  a description of the operating assumptions that form the
                     basis for major projected income and expense components.

           (2) Upon completion, the budgets and related documents required in
paragraph (1) shall be submitted to the Assistant Deputy Comptroller for review
and approval. The Board shall submit to the Assistant Deputy Comptroller annual
budgets as described in paragraph (1) above for each year this Formal Agreement
remains in effect. The budget for each year shall be submitted on or before
December 31st of the preceding year.

           (3) The Board shall forward comparisons of its balance sheet and
profit and loss statement to the profit plan projections to the Assistant Deputy
Comptroller on a quarterly basis.

           (4) The Board shall ensure that the Bank has processes, personnel,
and control systems to ensure implementation of and adherence to the plan
developed pursuant to this and year-end income statements;

                                   Article XV

                        CAPITAL PLAN AND HIGHER MINIMUMS
                        --------------------------------
<PAGE>

           (1) The Bank shall achieve by September 30, 2000, and thereafter
maintain the following capital levels (as defined in 12 C.F.R. Parts 3 and 6):

                (a)  Total capital at least equal to ten percent (10%) of
                     risk-weighted assets;

                (b)  Tier 1 capital at least equal to six percent (6%) of
                     risk-weighted assets; and

                (c)  Tier 1 capital at least equal to five percent (5%) of
                     adjusted total assets.1

           (2) Within sixty (90) days, the Board shall develop, implement, and
thereafter ensure Bank adherence to a three-year capital program. The program
shall 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 and capital requirements based upon
                     a detailed analysis of the Bank's assets, liabilities,
                     earnings, fixed assets, and off balance sheet activities;

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

                (d)  the primary source(s) from which the Bank will strengthen
                     its capital structure to meet the Bank's needs; and

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

           (3) Upon completion, the Bank's capital program shall be submitted to
the Assistant Deputy Comptroller for review and approval. Upon approval by the
Assistant Deputy Comptroller, the Bank shall implement and adhere to the capital
program. The Board shall review and update the Bank's capital program on an

----------
(1) Adjusted total assets is defined in 12 C.F.R. ss. 3.2(a) as the average
total asset figure used for Call Report purposes minus end-of-quarter intangible
assets. As further noted in 12 C.F.R. ss. 3.2(a), a bank may be required to
compute anu maintain its leverage ratio on the basis of actual, rather than
average total assets. This language would have to be modified to reflect that
change.

<PAGE>

annual basis, or more frequently if necessary. Copies of the reviews and updates
shall be submitted to the Assistant Deputy Comptroller.

           (4) The Board shall ensure that the Bank has processes, personnel,
and control systems to ensure implementation of and adherence to the program
developed pursuant to this Article.

<PAGE>

                                   Article XVI

                                VIOLATIONS OF LAW
                                -----------------

           (1) The Board shall immediately take all necessary steps to ensure
that Bank management corrects, to the extent possible, each violation of law,
rule or regulation cited in the ROE and in any subsequent Report of Examination.
The monthly progress reports required by Article II of this Agreement shall
include the date and manner in which each correction has been effected during
that reporting period.

           (2) Within ninety (90) days, the Board shall adopt, implement, and
thereafter ensure Bank adherence to specific procedures to prevent future
violations as cited in the ROE and shall adopt, implement, and ensure Bank
adherence to 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.

           (3) Within sixty (60) days of receipt of any subsequent Report of
Examination which cites violations of law, rule or regulation, the Board shall
adopt, implement, and thereafter ensure Bank adherence to specific procedures to
prevent future violations as cited in the ROE and shall adopt, implement, and
ensure Bank adherence to general procedures addressing compliance management
which 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 Assistant Deputy Comptroller for review and approval.

           (5) The Board shall ensure that the Bank has policies, processes,
personnel, and control systems to ensure implementation of and adherence to the
procedures developed pursuant to this Article.

<PAGE>

                                  Article XVII

                                     CLOSING
                                     -------

           (1) Although the Board has agreed to submit certain programs and
reports to the Assistant Deputy Comptroller for review or approval, the Board
has the ultimate responsibility for proper and sound management of the Bank.

           (2) It is expressly and clearly understood that if, at any time, the
Comptroller deems it appropriate in fulfilling the responsibilities placed upon
him by the several laws of the United States of America to undertake any action
affecting the Bank, nothing in this Agreement shall in any way inhibit, stop,
bar, or otherwise prevent the Comptroller from so doing.

           (3) Any time limitations imposed by this Agreement shall begin to run
from the effective date of this Agreement. Such time requirements may be
extended in writing by the Assistant Deputy Comptroller for good cause upon
written application by the Board.

           (4) The provisions of this Agreement shall be effective upon
execution by the parties hereto and its provisions shall continue in full force
and effect unless or until such provisions are amended in writing by mutual
consent of the parties to the Agreement or excepted, waived, or terminated in
writing by the Comptroller.

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

-------------------------------              ----------------------------
John F. Robinson                             Date
Deputy Comptroller
Western District

<PAGE>

Western District

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

/s/ Melinda McIntyre-Kolpin                       3/22/2000
------------------------------------           ----------------------------
Melinda McIntyre-Kolpin                        Date

/s/ Gene Franklin Gaines                          3/22/2000
------------------------------------           ----------------------------
Gene Franklin Gaines                           Date

/s/ Richard Berger                                3/22/2000
------------------------------------           ----------------------------
Richard Berger                                 Date

/s/ Terry Hartshorn                               3/22/2000
------------------------------------           ----------------------------
Terry Hartshorn                                Date

/s/ Walter T. Mullikin                           3/22/2000
------------------------------------           ----------------------------
Walter T. Mullikin                             Date

/s/ Donald L. Katz                              3/22/2000
------------------------------------           ----------------------------
Ronald L. Katz                                 Date

/s/ Lynn O. Poulson                            3/22/2000
------------------------------------           ----------------------------
Lynn O. Poulson                                Date

/s/ Robert Margolis                            3/22/2000
------------------------------------           ----------------------------
Robert Margolis                                Date

------------------------------------           ----------------------------
                                               Date

------------------------------------           ----------------------------
                                               Date

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