THIRD AMENDMENT TO LOAN AGREEMENT
Exhibit 10.4
THIRD AMENDMENT TO LOAN AGREEMENT
THIS THIRD AMENDMENT TO LOAN AGREEMENT (the “Third Amendment”) dated as of the 31st day of
December, 2007, to the Loan Agreement (the “Loan Agreement”), made and entered into as of December
31, 2004, by and among FIRST FINANCIAL BANKSHARES, INC., a Texas corporation, (the “Borrower”) and
THE FROST NATIONAL BANK (the “Lender”). All capitalized terms not otherwise defined herein shall
have the meaning ascribed to each of them in the Loan Agreement.
W I T N E S S E T H:
WHEREAS, Borrower executed the Loan Agreement to govern those certain promissory notes from
Lender, specifically, that certain $50,000,000.00 Note (the “Note”);
WHEREAS, the Borrower desires to renew and extend the unpaid principal balance of the Note;
and
WHEREAS, the Lender agrees to renew and extend the Note, all as hereinafter provided.
NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Borrower and Lender do hereby agree
as follows:
ARTICLE I
Amendment to Loan Agreement
1.1 Amendment to Section 2.02(a) of the Loan Agreement. Borrower and Lender agree to,
and do hereby, amend the Loan Agreement by deleting Section 2.02(a) of the Loan Agreement in its
entirety and substituting therefore the following paragraphs:
“2.02 The Note. The obligation of Borrower to pay the Loan shall be evidenced
by a promissory note (the “Note”) executed by Borrower and payable to the order of Lender,
in the principal amount of $50,000,000 bearing interest at the variable rate set forth in
the Note. The Borrower shall pay principal and interest in accordance with the terms of the
Note, with the maturity date being as set forth in the Note.
THIRD AMENDMENT TO LOAN AGREEMENT
— Page 1
(a) Advances. From Closing Date and continuing at all times through December
31, 2008 (the “Revolving Credit Period”) the Loan evidenced
by the Note shall be a revolving credit facility which will allow the Borrower to request such amounts
as Borrower may elect from time to time (each such amount being herein called an “Advance”)
so long as the aggregate amount of Advances outstanding at any time under the Note does not
exceed Fifty Million and No/100 Dollars ($50,000,000.00) provided however, the minimum
Advance must be at least $500,000.00. The Borrower shall have the right to borrow, repay,
and borrow again during the Revolving Credit Period. Interest shall be due and payable
quarterly and shall accrue at LIBOR plus 100 basis points. The outstanding principal
balance of the Note on December 31, 2008 shall convert to a term facility and shall be
payable quarterly in accordance with the terms of the Note, with all unpaid principal plus
all accrued and unpaid interest being due and payable on December 31, 2013.
ARTICLE II
Conditions of Effectiveness
2.1 Effective Date. This Third Amendment shall become effective as of December 31,
2007, when, and only when, Lender shall have received counterparts of this Third Amendment executed
and delivered by Borrower and Lender, and when each of the following conditions shall have been
met, all in form, substance, and date satisfactory to Lender:
(a) Closing Documents. Borrower shall have executed and delivered to Lender
(I) a Third Renewal Promissory Note, payable to the order of Lender as set forth therein,
duly executed on behalf of the Borrower, dated effective December 31, 2007 in the principal
amount of $50,000,000.00, (ii) Arbitration and Notice of Final Agreement, (iii) Certificate
of Corporate Resolutions, and (iv) this Third Amendment.
(b) Additional Loan Documents. Borrower shall have executed and delivered to
Lender such other documents as shall have been requested by Lender to renew, and extend, the
Loan Documents to secure payment of the Obligations of Borrower, all in form satisfactory to
Lender and its counsel.
ARTICLE III
Representations and Warranties
3.1 Representations and Warranties. In order to induce Lender to enter into this
Third Amendment, Borrower represents and warrants the following:
(a) Borrower has the corporate power to execute and deliver this Third Amendment, the
Third Renewal Promissory Note, and other Loan Documents and to perform all of its
obligations in connection herewith and therewith.
THIRD AMENDMENT TO LOAN AGREEMENT
— Page 2
(b)
The execution and delivery by Borrower of this Third Amendment, the Third Renewal Promissory Note, and other Loan Documents and the performance of its
obligations in connection herewith and therewith: (I) have been duly authorized or will be
duly ratified and affirmed by all requisite corporate action; (ii) will not violate any
provision of law, any order of any court or agency of government or the Articles of
Incorporation or Bylaws of such entity; (iii) will not be in conflict with, result in a
breach of or constitute (alone or with due notice or lapse of time or both) a default under
any indenture, agreement or other instrument; and (iv) will not require any registration
with, consent or approval of or other action by any federal, state, provincial or other
governmental authority or regulatory body.
(c) There is no action, suit or proceeding at law or in equity or by or before any
governmental instrumentality or other agency or regulatory authority now pending or, to the
knowledge of Borrower, threatened against or affecting Borrower, or any properties or rights
of Borrower, or involving this Third Amendment or the transactions contemplated hereby
which, if adversely determined, would materially impair the right of Borrower to carry on
business substantially as now conducted or materially and adversely affect the financial
condition of Borrower, or materially and adversely affect the ability of Borrower to
consummate the transactions contemplated by this Third Amendment.
(d) The representations and warranties of Borrower contained in the Loan Agreement,
this Third Amendment, the Third Renewal Promissory Note, and any other Loan Document
securing Borrower’s Obligations and indebtedness to Lender are correct and accurate on and
as of the date hereof as though made on and as of the date hereof, except to the extent that
the facts upon which such representations are based have been changed by the transactions
herein contemplated.
ARTICLE IV
Ratification of Obligations
4.1 Ratification of Obligation. The Borrower does hereby acknowledge, ratify and
confirm that it is obligated and indebted to Lender as evidenced by the Loan Agreement (as amended
by the Third Amendment), the Third Renewal Promissory Note and all other Loan Documents.
4.2 Ratification of Agreements. The Loan Agreement, this Third Amendment, the Third
Renewal Promissory Note, and each other Loan Document, as hereby amended, are acknowledged,
ratified and confirmed in all respects as being valid, existing, and of full force and effect. Any
reference to the Loan Agreement in any Loan Document shall be deemed to be a reference to the Loan
Agreement as amended by this Third Amendment. The execution, delivery and effectiveness of this
Third Amendment shall not, except as expressly provided herein, operate as a waiver of any right,
power or remedy of Lender under the Loan Agreement, nor constitute a waiver of any provision of the
Loan Agreement.
THIRD AMENDMENT TO LOAN AGREEMENT
— Page 3
ARTICLE V
Miscellaneous
5.1 Survival of Agreements. All representations, warranties, covenants and agreements
of Borrower, herein or in any other Loan Document shall survive the execution and delivery of this
Third Amendment, and the other Loan Documents and the performance hereof and thereof, including
without limitation the making or granting of the Loan and the delivery of the Third Renewal
Promissory Note and all other Loan Documents, and shall further survive until all of Borrower’s
Obligations to Lender are paid in full. All statements and agreements contained in any certificate
or instrument delivered by Borrower hereunder or under the Loan Documents to Lender shall be deemed
to constitute the representations and warranties by Borrower and/or agreements and covenants of
Borrower under this Third Amendment and under the Loan Agreement.
5.2 Loan Document. This Third Amendment, the Third Renewal Promissory Note, and each
other Loan Document executed in connection herewith are each a Loan Document and all provisions in
the Loan Agreement, as amended, pertaining to Loan Documents apply hereto and thereto.
5.3 Governing Law. This Third Amendment shall be governed by and construed in all
respects in accordance with the laws of the State of Texas and any applicable laws of the United
States of America, including construction, validity and performance.
5.4 Counterparts. This Third Amendment may be separately executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to constitute one and the same Third Amendment.
5.5 Release of Claims. Borrower, by its execution of this Third Amendment, hereby
declares that it has no set-offs, counterclaims, defenses or other causes of action against Lender
arising out of the Loan, the renewal, modification and extension of the Loan, any documents
mentioned herein or otherwise; and, to the extent any such setoffs, counterclaims, defenses or
other causes of action which may exist, whether known or unknown, such items are hereby expressly
waived and released by Borrower.
5.6 ENTIRE AGREEMENT. THIS THIRD AMENDMENT, TOGETHER WITH ANY LOAN DOCUMENTS EXECUTED
IN CONNECTION HEREWITH, CONTAINS THE ENTIRE AGREEMENT BETWEEN THE PARTIES HERETO RELATING TO THE
SUBJECT MATTER HEREOF AND THEREOF AND ALL PRIOR AGREEMENTS RELATIVE THERETO WHICH ARE NOT CONTAINED
HEREIN OR THEREIN ARE TERMINATED. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
THIS THIRD AMENDMENT, AND THE LOAN DOCUMENTS MAY BE AMENDED, REVISED,
WAIVED, DISCHARGED, RELEASED OR TERMINATED ONLY BY A WRITTEN INSTRUMENT OR INSTRUMENTS, EXECUTED BY THE PARTY AGAINST
WHICH ENFORCEMENT OF THE AMENDMENT, REVISION, WAIVER, DISCHARGE, RELEASE OR TERMINATION IS
ASSERTED. ANY ALLEGED AMENDMENT, REVISION, WAIVER, DISCHARGE, RELEASE OR TERMINATION WHICH IS NOT
SO DOCUMENTED SHALL NOT BE EFFECTIVE AS TO ANY PARTY.
THIRD AMENDMENT TO LOAN AGREEMENT
— Page 4
IN WITNESS WHEREOF, this Third Amendment is executed effective as of the date first written
above.
| BORROWER: | FIRST FINANCIAL BANKSHARES, INC. | |||||
| By: | /S/ F. Xxxxx Xxxxxx
|
|||||
| Its: | President | |||||
| LENDER: | THE FROST NATIONAL BANK | |||||
| By: | /S/ Xxxxx X. Xxxxxxxxxx
|
|||||
The Guarantor is executing this Third Amendment to acknowledge the terms and conditions of the
renewal.
| GUARANTOR: | FIRST FINANCIAL BANKSHARES OF DELAWARE, INC. | |||||
| By: | ||||||
| Its: | ||||||
THIRD AMENDMENT TO LOAN AGREEMENT
— Page 5
