NOTICE OF UNSATISFACTORY PERFORMANCE

PERFORMANCE IMPROVEMENT PLAN (PIP)

MEMORANDUM TO: Employee

Title

FROM: Supervisor
Title

SUBJECT: Notice of Unsatisfactory Performance – Performance

Improvement Plan

During the past year, we have had several discussions concerning your work assignments
and the performance of your duties. In particular, you have been unable to complete
work assignments on time, and the work product has often been either incomplete or
incorrect. We have also discussed communication problems, including your inability to
provide me with an accurate picture of your progress and misunderstandings about your
assignments. Thus, you have failed to demonstrate satisfactory performance for an
employee at your grade level.

On July 7, ____, you were informed that your performance problems could lead to a
rating of 1 (below expectations) in three areas, and that a continued lack of progress
could lead to your being placed on a Performance Improvement Plan. At this time, I have
seen no improvement in these areas. The deficiencies described below are examples of
your unsatisfactory performance.

(1) Performance Criteria _: Written Communication Skills

Acceptable performance in this area includes producing written products that are
factually accurate, logical, properly formatted, conform to FDIC guidelines, and reflect
correct grammar and spelling. In addition, written products should require only minimal
editing to change the tone of the presentation. Once editing is completed, the associate
examiner should be able to understand the changes and incorporate those changes into
future assignments.

In an effort to help improve your written communication skills, I arranged for you to
attend a Grammar and Composition course beginning February 16,_____, through April
20, ____. A total of fourteen hours of official time was provided to attend this course.
Unfortunately, your written work products did not significantly improve.

Subsequently, you attended a Grammar and Usage Workshop on February 8 – 10, ____.
Progress reports for work completed after this workshop show no improvement in written
communication skills. For example, at West Union Bank, (your assignment directly after
returning from the grammar workshop) you were assigned liquidity and securities. The
progress report for this assignment, which was discussed with you on March 3, ____,
states in part that “…Sentence structure and grammar are inappropriate in many instances
in the attached comments.” Specifically, in the liquidity comment, you stated “The
bank’s liquidity position is less than satisfactory, based on the lack of secondary source of
liquidity causes concern.”

(2) Performance Criteria _: Technical Skills

Acceptable performance in this area is demonstrated by a working knowledge of FDIC

policies and procedures, examination report preparation procedures, and knowledge of
methodologies to attain those objectives.

Your performance during the ____-____ Rating Period reflected a rating of meets
expectations in this area. Your evaluation was based on a combination of the close out
rating you received for the seven month period during which you were a Quality
Assurance Specialist in the Division of Resolutions and Receiverships, and your
performance during your first five months as an Associate Bank Examiner.

Your performance since September, ____, has not met expectations. Technical skill
weaknesses were first formally presented in the Progress Report for Bank of Mount
Hope, which coach ___________ discussed with you on June 11, ____. Since that time
numerous progress and team tracking reports document technical skills that do not meet
expectations. The ____-____ Performance Evaluation assigned a rating of below
expectations, and provides specific instances of unacceptable performance in this skill
area. In the ____-____ rating period, eight progress reports have been completed and
discussed with you. Marginal or unsatisfactory technical skills are identified in five of
the eight progress reports previously noted. Specific examples are the failure to
recognize the definition of short-term securities and the failure to identify basic call
report classification errors at the recent West Union Bank assignment.

(3) Performance Criteria _: Analytical Skills

Acceptable performance in this area requires the ability to gather, organize, and interpret
pertinent information to develop sound and logical conclusions which are supported by
appropriate documentation. Acceptable performance also includes the ability to identify
substantive issues that are thoroughly and accurately researched and analyzed.

Your performance since September, ____, has not met expectations. Analytical Skill
weaknesses were first formally presented in the progress report for One Valley Bank,
which coach __________ discussed with you on February 24, ____. Since that time,
numerous progress reports document analytical skills that do not meet expectations.
Specific examples include the failure to identify weaknesses in the internal audit at the
Bank of Charles Town assignment, and the inability to support the liquidity rating at the
Bank of West Union. The West Union progress report states in part, “…After discussing
the original draft of the liquidity comment and reviewing the comparative financial
statements, Associate Examiner _____ indicated that he could see that the rating should
be a “3” instead of a “2.” However, when he submitted a revised draft comment,
_______ did not change the tone of the comment to support the proposed rating.
Comments about a low loan to deposit ratio and a negative dependency ratio do not
support a 3 rating.”

PERFORMANCE IMPROVEMENT PLAN

In order to correct the deficiencies in your performance, you are being placed in a 90-day
Performance Improvement Plan (PIP) to commence upon receipt of this memorandum.
During the PIP, you will be given assignments commensurate with your position as a CG-
12 Associate Examiner. You will be expected to perform work on those assignments at a
level that meets expectations for the duties and job knowledge outlined in your position
description.

During this 90-day period, we will focus on your ability to satisfactorily complete the
operations portion of the examination and an operations manager assignment. You must
be able to successfully complete the various operations assignments on examinations
during this period. As part of these assignments, you will be responsible for the
preparation of report quality comments, supporting schedules, Examination
Documentation (ED) modules, and other workpapers. In performing the operations
manager assignment, your responsibilities will include coordinating and reviewing work
assignments of fellow examiners, report censoring, individual analysis of the component
ratings, written comments, and assisting the examiner-in-charge with the final editing and
review of the report of examination.

During this performance improvement period, the following measures are designed to aid
your efforts to upgrade your performance to a satisfactory level:

1. You will be assigned to work under the direct supervision of __________, who will
be responsible for assigning work and evaluating your performance.
2. Written evaluations regarding your performance, including supporting
documentation, will be provided to you as soon as possible after the conclusion of the
assignment. The evaluations will be discussed with you so that you will have an
opportunity to ask any questions which you may have, and to make sure you fully
understand any comments regarding your performance.
3. You have requested to attend an additional writing course. A request for training
approval has been submitted.
4. During this PIP, I will continue to provide you with coaching and informal feedback
to assist you in meeting the requirements of this PIP. This may include additional
exercises to help you assess your mastery of the technical components of the
examination.

You should understand that failure to improve your performance to a satisfactory level by
the end of the 90-day period will result in a recommendation that you be removed from
your current position. In addition, failure to sustain a satisfactory level of performance
for at least one year from the start of this 90-day period may result in recommending your
removal without an additional opportunity period.

If you have any questions concerning this notice, I am available to discuss them with you.
Please sign and date the acknowledgement below, which serves as the effective date of
this PIP.

Receipt Acknowledgement:

________________________________ _____________________
Date