Federal Deposit
Insurance Corporation

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   [¶10,474] In the Matter of Kenneth E. Rolston, Enterprise Bank— Houston, Navigation Bank, and Commercial State Bank, Houston, Texas; Alvin State Bank, Alvin, Texas; and Highlands State Bank, Highlands, Texas, Docket No. FDIC-91-263e (3-9-92).

   Respondent prohibited from participating in the conduct of affairs of, or exercising voting rights in, any insured institution without the prior consent of the FDIC.

   [.1] Prohibition—Participation in Conduct of Affairs
   [.2] Prohibition—Exercise of Voting Rights

In the Matter of
KENNETH E. ROLSTON, individually
and as an officer, director and/or
person participating in the
conduct of the affairs of
and
ENTERPRISE BANK - HOUSTON
HOUSTON, TEXAS
(Insured State Nonmember Bank)
NAVIGATION BANK
HOUSTON, TEXAS
(Insured State Nonmember Bank)
ALVIN STATE BANK
ALVIN, TEXAS
(Insured State Nonmember Bank)
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HIGHLANDS STATE BANK
HIGHLANDS, TEXAS
(Insured State Nonmember Bank)
COMMERCIAL STATE BANK
HOUSTON, TEXAS
(Insured State Nonmember Bank—In
Receivership)
ORDER OF PROHIBITION FROM
FURTHER PARTICIPATION

   Kenneth E. Rolston ("Respondent"), individually, and as a former officer, director, and/or person participating in the conduct of the affairs of Enterprise Bank - Houston, Houston, Texas, Navigation Bank, Houston, Texas, Alvin State Bank, Alvin, Texas, Highlands State Bank, Highlands, Texas, and the former Commercial State Bank, Houston, Texas (collectively, the "Banks"), was advised of his right to file an Answer to the NOTICE OF INTENTION TO PROHIBIT FROM FURTHER PARTICIPATION ("NOTICE") issued by the Federal Deposit Insurance Corporation ("FDIC"), which NOTICE details the violations of law, rule and/or regulation, unsafe or unsound banking practices, and/or breaches of fiduciary duty by reason of which the Banks had suffered substantial financial loss or other damage and/or the interests of its depositors had been prejudiced, and which demonstrated a willful and/or continuing disregard by Respondent for the safety and soundness of the Banks. Having been further advised of his right to a hearing on those alleged charges pursuant to section 8(e) of the Act, 12 U.S.C. § 1818(e), and Part 308 of the FDIC's Rules of Practice and Procedures, 56 Fed. Reg. 37,968 (1991) (to be codified at 12 C.F.R. Part 308), and having waived those rights, Respondent entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("CONSENT AGREEMENT") with a representative of the Legal Division of the FDIC, dated January 6, 1992, whereby solely for the purpose of this proceeding and without admitting or denying any of the alleged violations of law, unsafe or unsound banking practices and/or breaches of fiduciary duty, Respondent consented to the issuance of an ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("ORDER") by the FDIC.
   The FDIC considered the matter and determined there was and is reason to believe that:

   (i) Respondent had engaged or otherwise had participated in violations of law, rule and/or regulation, unsafe or unsound banking practices, and/or breaches of his fiduciary duty as a former officer, director, and/or person participating in the conduct of the affairs of the Banks;
   (ii) By reason of such violations, practices and/or breaches of fiduciary duty, each of the Banks has suffered substantial financial loss or other damage and/or the interests of its depositors have been prejudiced; and
   (iii) Such violations, practices and/or breaches of fiduciary duty demonstrated a willful and/or continuing disregard by the Respondent for the safety or soundness of the Banks.

   [.1] 1. IT IS HEREBY ORDERED, that Kenneth E. Rolston is prohibited, without the prior written approval of the FDIC and the appropriate Federal financial institutions regulatory agency, as that term is defined in section 8(e)(7)(D) of the Act, 12 U.S.C. § 1818(e)(7)(D), from serving or acting as an officer, director, employee or institution-affiliated party, and/or from participating in any manner in the conduct of the affairs, of any insured depository institution, agency, or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e) (7)(A).

   [.2] 2. IT IS FURTHER ORDERED that Kenneth E. Rolston is prohibited from voting for a director and/or from soliciting, procuring, transferring, or otherwise attempting to transfer or vote any proxy, consent or authorization with respect to any voting rights in any insured depository institution, agency or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C.
{{2-28-95 p.C-2043}}§ 1818(e)(7)(A), without the prior written approval of the FDIC and the appropriate Federal financial institutions regulatory agency.
   3. IT IS FURTHER ORDERED that Kenneth E. Rolston shall not violate any voting agreement previously approved by the appropriate Federal banking agency, as that term is defined in section 3(q) of the Act, 12 U.S.C. § 1813(q), without the prior written approval of the FDIC and the appropriate Federal financial institutions regulatory agency.
   4. This ORDER shall become effective ten days following its issuance by the FDIC pursuant to section 8(e) of the Act, 12 U.S.C. § 1818(e).
   5. The provisions of the ORDER shall remain effective and enforceable, except to the extent that, and until such time as, any provision of this ORDER shall have been modified, terminated, suspended, or set aside by the FDIC.
   Dated at Washington, D.C. the 9th day of March, 1992.
   Pursuant to delegated authority.