Common use of PROFIT PLAN Clause in Contracts

PROFIT PLAN. (1) Within thirty (30) days, the Board shall develop a revised profit plan for calendar year 2005 to account for extraordinary and other expenses associated with this Agreement and any significant changes in the bank’s business strategy, and to reflect realistic loan growth assumptions and loan loss provisions. (2) Within ninety (90) days, and in consideration of the Bank’s strategic plan developed in Article XI of the Agreement, the Board shall develop, implement, and thereafter ensure Bank adherence to, at minimum, a three-year written profit plan to improve and sustain the earnings of the Bank. The plan shall incorporate realistic and comprehensive budgets, including a projection of major balance sheet and income statement components, and shall provide for injections of equity capital, as necessary. This plan shall also 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) a budget review process to monitor both the Bank's income and expenses, and to compare actual figures with budgetary projections; and (c) a description of the operating assumptions that form the basis for major projected income and expense components. (3) Upon completion of each plan under sections (1) and (2), the Board’s profit plans shall be submitted to the Assistant Deputy Comptroller for prior determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall implement and ensure the Bank’s adherence to the profit plan. (4) The Board shall submit to the Assistant Deputy Comptroller the budgets and related documents for 2005 required in subparagraph (1) upon completion. (5) The Board shall submit to the Assistant Deputy Comptroller annual budgets and related documents as described in subparagraph (2) above for each year this Amendment and Agreement remains in effect. The budget and related documents for each year shall be submitted on or before November 30, of the preceding year. (6) This article (III) hereby supersedes and nullifies Article XII of the original Agreement dated June 25, 2003.

PROFIT PLAN. (1) Within thirty sixty (3060) days, the Board shall develop and forward to the ADC for his review a revised profit plan written Profit Plan for calendar year 2005 the Bank that is acceptable to account for extraordinary and other expenses associated with this Agreement and any significant changes in the bank’s business strategy, and to reflect realistic loan growth assumptions and loan loss provisions. (2) Within ninety (90) days, and in consideration of ADC. The Plan shall describe actions the Bank’s strategic plan developed in Article XI of the Agreement, the Board shall develop, implement, and thereafter ensure Bank adherence to, at minimum, a three-year written profit plan will take to improve and sustain the earnings of the Bank. The plan shall incorporate realistic and comprehensive budgets, including a projection of major balance sheet and income statement components, and shall provide for injections of equity capital, as necessary. This plan shall also include, include at a 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, including the specific products and services the Bank will offer; (b) a budget review incorporation of the Bank’s budgeting process to monitor both provide realistic and comprehensive budgets, including projected balance sheets and year-end income statements; (c) continuation of the Bank's ’s practice of monitoring the Bank’s income and expenses, expenses and to compare comparing actual figures with budgetary projections; (d) revisions to the Bank’s budget review process to ensure management, when comparing actual figures with budgetary projections, takes into consideration any events impacting budgetary projections and revises budgetary projections for subsequent periods accordingly; and (ce) a description of the operating assumptions that form the basis for major projected income and expense components. (32) Upon completion of each plan under sections The Board shall submit to the ADC annual budgets as described in paragraph (1) and (2)above for the Bank’s fiscal year 2013 on or before August 31, 2012. For each year thereafter this Agreement remains in effect, the Board shall submit to the ADC on or before August 31, the annual budgets for the Bank’s following fiscal year. (3) The Board shall forward comparisons of its balance sheet and profit and loss statement to the profit plan projections to the ADC on a quarterly basis. (4) Prior to adoption by the Board’s profit plans , the Profit Plan shall be submitted to the Assistant Deputy Comptroller ADC for a prior written determination of no supervisory objection. Upon receiving The Board shall review and update the Bank’s Profit Plan at least annually and more frequently if necessary or if required by the ADC in writing. Revisions to the Bank’s Profit Plan shall be submitted to the ADC for a prior written determination of no supervisory objection. At the next Board meeting following receipt of the ADC’s written determination of no supervisory objection, the Board shall adopt and the Bank, subject to Board review and ongoing monitoring, shall implement and thereafter ensure adherence to the Profit Plan and any amendments or revisions thereto. (5) Until the Profit Plan required under this Article has been submitted by the Bank for OCC review, has received a written determination of no supervisory objection from the Assistant Deputy ComptrollerOCC, and is being implemented by the Bank, the Board Bank shall implement not significantly deviate from the products, services, asset composition and ensure size, funding sources, structure, operations, policies, procedures, and markets of the Bank that existed before this Agreement without first obtaining the OCC’s prior written determination of no supervisory objection to such significant deviation. Any request to the OCC for prior written determination of no supervisory objection to a significant deviation must be submitted to the ADC at least 30 days in advance of the significant deviation and shall include: (a) an assessment of the adequacy of the Bank’s adherence management, staffing levels, organizational structure, financial condition, capital adequacy, funding sources, management information systems, internal controls, and written policies and procedures with respect to the profit planproposed significant deviation, and (b) the Bank’s evaluation of its capability to indentify, measure, monitor, and control the risks associated with the proposed significant deviation, and specifically with regard to any proposed increase in commercial lending activities, how the Bank will ensure continued compliance with Board established concentration limits, loan underwriting policies and procedures and credit administration practices. (4c) The Board shall submit to an assessment of how such deviation is consistent with the Assistant Deputy Comptroller goals and objectives outlined in the budgets and related documents for 2005 required in subparagraph (1) upon completion. (5) The Board shall submit to the Assistant Deputy Comptroller annual budgets and related documents as described in subparagraph (2) above for each year this Amendment and Agreement remains in effect. The budget and related documents for each year shall be submitted on or before November 30, of the preceding yearBank’s overall strategic plan. (6) This article (III) hereby supersedes For the purposes of this Article, changes that may constitute a significant deviation from the Profit Plan include, but are not limited to, a change in the Bank's marketing strategies, products and nullifies Article XII 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 the original Agreement dated June 25aggregate, 2003may 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.

PROFIT PLAN. (1) Within thirty (30) 90 days, the Board shall develop a revised profit plan for calendar year 2005 to account for extraordinary and other expenses associated with this Agreement and any significant changes in the bank’s business strategy, and to reflect realistic loan growth assumptions and loan loss provisions. (2) Within ninety (90) days, and in consideration of the Bank’s strategic plan developed in Article XI of the Agreement, the Board shall develop, implement, implement and thereafter ensure Bank adherence to, at minimum, adhere to a three-year written profit plan Profit Plan to improve and sustain the earnings of the Bank. The plan shall incorporate realistic and comprehensive budgets, including a projection of major balance sheet and income statement components, and shall provide for injections of equity capital, as necessary. This plan shall also cover at least a 12 month period and 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 earnings performance; (b) assignment of management or departmental goals and accountability tied to the key variables of the profit plan; (c) defined variance criteria for when interim re-forecasting would be required; (d) developed action plans to address earnings performance in the event projections do not materialize; (e) submission at least quarterly to the Assistant Deputy Comptroller of comparisons of balance sheet and profit and loss statements of the Bank to the profit plan projections and status of specific actions plans and strategic initiatives; (f) comprehensive budgets, including projected balance sheets and year-end income statements; (g) a budget review process to monitor both the Bank's income and expenses, and to compare actual figures with budgetary projections; and (ch) a description of the operating assumptions that form the basis for major projected income and expense components. (2) The profit plan shall identify the Bank's proposed involvement in any new products or services and, at a minimum, analyze the following: (a) the risks and benefits of the product or service to the Bank; (b) whether the product or service is consistent with the Bank’s strategic plan; (c) 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 product or service; and (d) profitability of the produce or service, including growth projections and interest rate risk. (3) Upon completion of each plan under sections The budgets and related documents required in paragraph (1) and (2), the Board’s profit plans above for 2014 shall be submitted to the Assistant Deputy Comptroller for prior determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall implement and ensure the Bank’s adherence to the profit plan. (4) The Board shall submit to the Assistant Deputy Comptroller the budgets and related documents for 2005 required in subparagraph (1) upon completion. (5) . The Board shall submit to the Assistant Deputy Comptroller annual budgets and related documents as described in subparagraph paragraph (21) above for each year this Amendment and Agreement remains in effect. The budget and related documents for each year shall be submitted on or before November 30, 30th of the preceding year. . The analysis required in paragraph (62) This article (III) hereby supersedes and nullifies Article XII above may be submitted separately to the Assistant Deputy Comptroller if the new product or service was not anticipated at the time the profit plan, for the year of introduction of the original Agreement dated June 25product or service, 2003was submitted.

PROFIT PLAN. (1) Within thirty one hundred twenty (30120) days, the Board shall develop a revised profit plan for calendar year 2005 to account for extraordinary and other expenses associated with this Agreement and any significant changes in the bank’s business strategy, and to reflect realistic loan growth assumptions and loan loss provisions. (2) Within ninety (90) days, and in consideration days of the Bank’s strategic plan developed in Article XI date of the this Agreement, the Board shall developrevise, implement, and thereafter ensure Bank adherence to, at minimum, to a three-year written profit plan to improve and sustain the earnings of the Bank. The plan shall incorporate realistic and comprehensive budgets, including a projection of major balance sheet and income statement components, and shall provide for injections of equity capital, as necessary. This plan shall also 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, including, but not limited to, loan and deposit pricing strategies; (b) narrative detail as to underlying assumptions and management's plans to reach targeted goals and sustain targeted levels; (c) reasonable and comprehensive budgets, including projected balance sheets and year-end income statements, particularly with regard to noninterest expenses such as professional fees and staffing; (d) a budget review process to monitor both the Bank's income and expenses, and to compare actual figures with budgetary projections, including, but not limited to the following: (i) processes to incorporate proposed expenditure needs by each department manager for the coming year; (ii) senior management review to ensure that departmental expenditures are reasonable, well supported and documented, and consistent with the goals and objectives of the profitability of the Bank; (iii) documented annual review and approval of the budget by the Board; (iv) quarterly review of budget variances, including detailed explanations for variances; and (cv) processes to ensure that any revision to the budget includes a detailed explanation and analysis and is recorded in the Board minutes. (e) a description of the operating assumptions that form the basis for major projected income and expense components; and (f) the impact of the Bank’s strategies on its capital ratios. (32) Upon completion of each plan under sections The budgets and related documents required in paragraph (1) and (2), the Board’s profit plans above for 2015 shall be submitted to the Assistant Deputy Comptroller for prior determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall implement and ensure the Bank’s adherence to the profit plan. (4) The Board shall submit to the Assistant Deputy Comptroller the budgets and related documents for 2005 required in subparagraph (1) upon completion. (5) . The Board shall submit to the Assistant Deputy Comptroller annual budgets and related documents as described in subparagraph (21)(b) above for each year this Amendment and Agreement remains in effect. The budget and related documents for each year following the 2015 budget shall be submitted on or before November 30, of the preceding year. (63) This article (III) hereby supersedes The Board shall forward comparisons of its balance sheet and nullifies Article XII of profit and loss statement to the original Agreement dated June 25, 2003profit plan projections to the Assistant Deputy Comptroller on a quarterly basis.

PROFIT PLAN. (1) Within thirty sixty (3060) days, the Board shall develop and forward to the ADC for his review a revised profit plan written Profit Plan for calendar year 2005 the Bank that is acceptable to account for extraordinary and other expenses associated with this Agreement and any significant changes in the bank’s business strategy, and to reflect realistic loan growth assumptions and loan loss provisions. (2) Within ninety (90) days, and in consideration of ADC. The Plan shall describe actions the Bank’s strategic plan developed in Article XI of the Agreement, the Board shall develop, implement, and thereafter ensure Bank adherence to, at minimum, a three-year written profit plan will take to improve and sustain the earnings of the Bank. The plan shall incorporate realistic and comprehensive budgets, including a projection of major balance sheet and income statement components, and shall provide for injections of equity capital, as necessary. This plan shall also include, include at a 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, including the specific products and services the Bank will offer; (b) a budget review incorporation of the Bank’s budgeting process to monitor both provide realistic and comprehensive budgets, including projected balance sheets and year-end income statements; (c) continuation of the Bank’s practice of monitoring the Bank's income and expenses, expenses and to compare comparing actual figures with budgetary projections; (d) revisions to the Bank's budget review process to ensure management, when comparing actual figures with budgetary projections, takes into consideration any events impacting budgetary projections and revises budgetary projections for subsequent periods accordingly; and (ce) a description of the operating assumptions that form the basis for major projected income and expense components. (32) Upon completion of each plan under sections The Board shall submit to the ADC annual budgets as described in paragraph (1) and (2)above for the Bank’s fiscal year 2013 on or before August 31, 2012. For each year thereafter this Agreement remains in effect, the Board shall submit to the ADC on or before August 31, the annual budgets for the Bank's following fiscal year. (3) The Board shall forward comparisons of its balance sheet and profit and loss statement to the profit plan projections to the ADC on a quarterly basis. (4) Prior to adoption by the Board’s profit plans , the Profit Plan shall be submitted to the Assistant Deputy Comptroller ADC for a prior written determination of no supervisory objection. Upon receiving The Board shall review and update the Bank's Profit Plan at least annually and more frequently if necessary or if required by the ADC in writing. Revisions to the Bank's Profit Plan shall be submitted to the ADC for a prior written determination of no supervisory objection. At the next Board meeting following receipt of the ADC's written determination of no supervisory objection, the Board shall adopt and the Bank, subject to Board review and ongoing monitoring, shall implement and thereafter ensure adherence to the Profit Plan and any amendments or revisions thereto. (5) Until the Profit Plan required under this Article has been submitted by the Bank for OCC review, has received a written determination of no supervisory objection from the Assistant Deputy ComptrollerOCC, and is being implemented by the Bank, the Board Bank shall implement not significantly deviate from the products, services, asset composition and ensure size, funding sources, structure, operations, policies, procedures, and markets of the Bank that existed before this Agreement without first obtaining the OCC's prior written determination of no supervisory objection to such significant deviation. Any request to the OCC for prior written determination of no supervisory objection to a significant deviation must be submitted to the ADC at least 30 days in advance of the significant deviation and shall include: (a) an assessment of the adequacy of the Bank’s adherence 's management, staffing levels, organizational structure, financial condition, capital adequacy, funding sources, management information systems, internal controls, and written policies and procedures with respect to the profit planproposed significant deviation, and (b) the Bank's evaluation of its capability to indentify, measure, monitor, and control the risks associated with the proposed significant deviation, and specifically with regard to any proposed increase in commercial lending activities, how the Bank will ensure continued compliance with Board established concentration limits, loan underwriting policies and procedures and credit administration practices. (4c) The Board shall submit to an assessment of how such deviation is consistent with the Assistant Deputy Comptroller goals and objectives outlined in the budgets and related documents for 2005 required in subparagraph (1) upon completion. (5) The Board shall submit to the Assistant Deputy Comptroller annual budgets and related documents as described in subparagraph (2) above for each year this Amendment and Agreement remains in effect. The budget and related documents for each year shall be submitted on or before November 30, of the preceding yearBank's overall strategic plan. (6) This article (III) hereby supersedes For the purposes of this Article, changes that may constitute a significant deviation from the Profit Plan include, but are not limited to, a change in the Bank's marketing strategies, products and nullifies Article XII 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 the original Agreement dated June 25aggregate, 2003may 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.

PROFIT PLAN. (1) Within thirty sixty (3060) days, the Board shall develop a revised profit plan for calendar year 2005 to account for extraordinary and other expenses associated with this Agreement and any significant changes in the bank’s business strategy, and to reflect realistic loan growth assumptions and loan loss provisions. (2) Within ninety (90) days, and in consideration of the Bank’s strategic plan developed in Article XI of the Agreement, the Board shall developrevise, implement, and thereafter ensure Bank adherence to, at minimum, to a three-year written profit plan to improve and sustain the earnings of the Bank. The plan shall incorporate realistic and comprehensive budgets, including a projection of major balance sheet and income statement components, and shall provide for injections of equity capital, as necessary. This plan shall also 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) narrative detail as to underlying assumptions and management’s plans to reach targeted goals and sustain targeted levels; (c) reasonable and comprehensive budgets, including projected balance sheets and year-end income statements; (d) a budget review process to monitor both the Bank's income and expenses, including the volatility of mortgage banking income and expenses, and to compare actual figures with budgetary projections, including, but not limited to the following: (i) processes to incorporate proposed expenditure needs by each department manager for the coming year; (ii) senior management review to ensure that departmental expenditures are reasonable, well supported and documented, and consistent with the goals and objectives of the profitability of the Bank; (iii) documented annual review and approval of the budget by the Board; (iv) monthly/quarterly review of budget variances, including detailed explanations for variances; and (cv) processes to ensure that any revision to the budget includes a detailed explanation and analysis and is recorded in the Board minutes. (e) a description of the operating assumptions that form the basis for major projected income and expense components. (32) Upon completion of each plan under sections The budgets and related documents required in paragraph (1) and above for (2), the Board’s profit plans 2014) shall be submitted to the Assistant Deputy Comptroller for prior determination of no supervisory objection. Upon receiving a determination of no supervisory objection from the Assistant Deputy Comptroller, the Board shall implement and ensure the Bank’s adherence to the profit plan. (4) The Board shall submit to the Assistant Deputy Comptroller the budgets and related documents for 2005 required in subparagraph (1) upon completion. (5) . The Board shall submit to the Assistant Deputy Comptroller annual budgets and related documents as described in subparagraph (21)(b) above for each year this Amendment and Agreement remains in effect. The budget and related documents for each year following the 2014 budget shall be submitted on or before November 30, of the preceding year. (63) This article 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. (III4) hereby supersedes The Board shall ensure that the Bank has processes, personnel, and nullifies Article XII control systems to ensure implementation of and adherence to the original Agreement dated June 25, 2003plan developed pursuant to this Article.