Jerry L. Calvert President & CEO First National Bancshares, Inc.
April 21,
2009
Xxxxx X.
Xxxxxxx
President
& CEO
First
National Bancshares, Inc.
000 X.
Xxxx Xxxxxx
P.O. Box
3508
Spartanburg,
SC 29304
Dear Xx.
Xxxxxxx:
As of
December 31, 2008, First National Bancshares, Inc. is not in compliance with
Section 4., Negative Covenants c, e, f and g of the Loan Agreement dated
December 28, 2007. As a result, an event of default has occurred
under Section 8 (ii) of the same Loan Agreement. As such, Nexity Bank
has the right to seek remedies granted in the loan documents including the right
to “sell, assign and deliver or collect the whole or any part of the Collateral”
(Pledge Agreement – 5. Default and 11. Power of Sale). The collateral
includes 1,100,000 shares of common stock of First National Bank of the South;
stock certificate number 001 together with any and all stock rights, rights paid
in stock, new securities or other properties to which the Pledgor is or may
hereafter become entitled to receive on account of shares.
Nexity
Bank is requesting the borrower to provide any information and access to
information (to be determined) sufficient to allow Nexity Bank and/or its
designated parties to complete an immediate and thorough due
diligence. While Section 4 (a) of the Loan Agreement requires that
the borrower provide this information, Nexity Bank would require that this
information be provided when requested and not within the minimum time frames
stipulated in this covenant. If the borrower would agree to provide
this information under these terms, Nexity Bank would agree to waive only its
ability to seize the collateral under the Pledge Agreement; Section 11. until
June 30, 2009. All other terms and conditions of the loan documents
including other rights, powers, provisions and remedies granted to the lender
shall continue to exist and may be exercised by Nexity Bank at any time. Please
sign the attached signature page acknowledging your acceptance of these
terms.
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Sincerely,
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Xxxx
Xxx
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Chairman
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Signature
Page First National Bancshares Loan
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Nexity
Bank
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First
National Bancshares, Inc
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/s/ Xxxx Xxx
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/s/ Xxxxx X.
Xxxxxxx
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By:
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Xxxx
Xxx
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Accepted by:
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Xxxxx
X. Xxxxxxx
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Chairman
and CEO
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President and
CEO
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April 21,
2009
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April 30,
2009
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Date
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Date
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