FIRST AMENDMENT TO LOAN MODIFICATION AND SETTLEMENT AGREEMENT
FIRST
AMENDMENT TO LOAN MODIFICATION AND SETTLEMENT AGREEMENT
This
FIRST AMENDMENT TO THE LOAN MODIFICATION AND SETTLEMENT AGREEMENT (this
“Amendment”) is effective as of the 26th day of March, 2010 (the “Effective
Date”), by and between Nexity Bank, an Alabama state banking corporation,
(“Nexity”) and First National Bancshares, Inc., a South Carolina corporation
(“First National”) and amends that certain Loan Modification and Settlement
Agreement between Nexity and First National effective as of December 30, 2009
(the “Modification Agreement”).
RECITALS
WHEREAS,
pursuant to the Loan Documents (as such term is defined in the Modification
Agreement), First National borrowed from Nexity a principal amount of up to
$15,000,000.00;
WHEREAS,
as of the Effective Date, the outstanding balance of such loan is
$9,640,916.66.
WHEREAS,
First National defaulted under the Loan Documents for failure to make payment
when due and the parties entered into the Modification Agreement to amend the
Loan Documents;
WHEREAS,
under the Modification Agreement, First National was required to obtain
regulatory approval and make payment of the Settlement Amount (as such term is
defined in the Modification Agreement) of $3,500,000 plus accrued interest by
March 15, 2010;
WHEREAS,
First National defaulted under the Modification Agreement for failure to obtain
regulatory approval to make payment when due on March 15, 2010 and remains in
default as of the Effective Date;
WHEREAS,
except as provided herein, Nexity does not intend to, and does not, alter,
modify or waive any rights available to it by contract or law;
WHEREAS,
First National and Nexity desire to amend the Modification Agreement as provided
herein; and
WHEREAS,
each of the Recitals set forth above are expressly incorporated into the
Agreement section of this Amendment.
AGREEMENT
NOW,
THEREFORE, in consideration of the foregoing and for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto, intending to be legally bound, hereby agree as
follows:
1.
Paragraph 3 of the Loan Modification is hereby deleted in its entirety and
replaced with the following:
On March
26, 2010, First National shall remit to Nexity via wire transfer
$147,827.38
to satisfy interest owed to Nexity as of December 30, 2009.
2. Paragraph 4 of the Loan
Modification is hereby amended by deleting the words “March 15, 2010” and
replacing them with the words “June 15, 2010.”
3. Except
as expressly modified herein, all terms of the Modification Agreement shall be
and shall remain in full force and effect and shall constitute the legal, valid,
binding and enforceable obligations of First National to Nexity. This Amendment
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.
[signature
pages follow]
In
witness whereof, the undersigned has executed this Amendment as of the Effective
Date.
NEXITY
BANK, an Alabama state banking
corporation
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By:
/s/ Xxx Xxxxxx
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Print
Name: Xxx Xxxxxx
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As
its: Executive Vice President
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STATE
OF
)
)
COUNTY)
I, the
undersigned, a Notary Public in and for said county in said state, hereby
certify that
, whose name as of
Nexity Bank is signed to the foregoing instrument and who is known to me,
acknowledged before me on this day that, being fully informed of the contents of
the above and foregoing instrument, he, with full authority, executed the same
voluntarily for and as the act of said corporation on the day the same bears
date.
Given
under my hand and seal on this
the day
of
,
2010.
Notary
Public: ____________________
My
commission expires: ____________
FIRST
NATIONAL BANCSHARES, INC., a
South
Carolina corporation
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By:
/s/ J. Xxxxx Xxxxx
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Print
Name: J. Xxxxx Xxxxx
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As
its: President & Chief Executive Officer
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STATE
OF
)
)
COUNTY)
I, the
undersigned, a Notary Public in and for said county in said state, hereby
certify that
, whose name as
of
First National Bancshares, Inc. is signed to the foregoing instrument and who is
known to me, acknowledged before me on this day that, being fully informed of
the contents of the above and foregoing instrument, he/she, with full authority,
executed the same voluntarily for and as the act of said corporation on the day
the same bears date.
Given
under my hand and seal on this
the day
of
, 2010.
Notary
Public: ____________________
My
commission expires: ____________