EXHIBIT 10.31
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AMENDMENT TO
SUBORDINATED PROMISSORY NOTE
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AMENDMENT TO SUBORDINATED PROMISSORY NOTE
This Amendment is hereby made as of this 26th day of March, 2002 by Xxxxxxx X.
Xxxxxxxxx (the "Holder") and Community Bancshares, Inc (the "Borrower"), a
Delaware corporation.
WHEREAS, the parties entered into a Subordinated Promissory Note (the
"Note") dated as of October 4, 1994 pursuant to which the Borrower promised to
pay the Holder the sum of Two Million Dollars ($2,000,000); and
WHEREAS, the Borrower is current in performing its obligations pursuant
to the Note; and
WHEREAS, its is unclear whether the Note is subordinated to certain
other indebtedness of the Borrower; and
WHEREAS, the parties desire to resolve an ambiguity in the provisions
of the Note and provide that the Note is senior to such other indebtedness;
NOW, THEREFORE, the parties hereby agree that the Note is amended by
adding the following sentence to the end of paragraph 4(f): "Notwithstanding the
foregoing, the term `Senior Indebtedness' shall not refer to any indebtedness of
the Borrower, whether currently outstanding or hereafter created, which purports
to be subordinated indebtedness of the Borrower, unless the instrument creating
or evidencing such indebtedness specifically identifies this Note and expressly
states that it is superior to the indebtedness represented by this Note."
IN WITNESS WHEREOF, the parties have causes this Amendment to be
executed as of the day and year first above written.
/s/ Xxxxxxx X.Xxxxxxxxx
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Xxxxxxx X. Xxxxxxxxx
COMMUNITYBANCSHARES, INC.
By: /s/ Xxxxxx X. Xxxxxxxxx, Xx.
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Its Chairman, President & CEO
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