Exhibit 10.7(a)


 





 


	
  February 29, 2008

  
	
   

  
	
   

  
	
  Mr. Michael D. Owens

  Coastal Carolina Bancshares, Inc

  2305 Oak Street

  Myrtle Beach, SC 29577

  
	
   

  
	
  Dear Mike:

  
	
   

  
	
  South Carolina Bank and Trust (the “Bank”) is pleased to commit to
  you the following credit facility (the “loan”), subject to the following
  terms and conditions:

  
	
   

  	
   

  	
   

  
	
  Borrower:

  	
   

  	
  Coastal Carolina Bancshares, Inc

  
	
   

  	
   

  	
   

  
	
  Purpose:

  	
   

  	
  Operating and pre-opening expenses associated with the start-up of
  your new bank.

  
	
   

  	
   

  	
   

  
	
  Amount:

  	
   

  	
  Up to $2,000,000.00

  
	
   

  	
   

  	
   

  
	
  Interest Rate and

  Repayment Terms:

  	
   

  	
  A variable rate of three-month LIBOR plus a margin of 160 basis
  points or at your option, a variable rate of prime less a margin of 1.500%.
  The loan will have a one-year maturity with interest payable monthly on the
  outstanding balance.

  
	
   

  	
   

  	
   

  
	
  Disbursements:

  	
   

  	
  Draws on the loan may be requested as needed for operating and
  pre-opening expenses. Disbursements will be deposited into the borrower’s
  account with SCBT. Draws on the loan may be made for interest payments.

  
	
   

  	
   

  	
   

  
	
  Collateral:

  	
   

  	
  The loan will be unsecured.

  
	
   

  	
   

  	
   

  
	
  Guarantees:

  	
   

  	
  The loan will carry the limited guaranties of William Bogache, J.
  Egerton Burroughs, Chester A. Duke, Robin W. Edwards, Henrietta U. Golding,
  Adair M. Graham, Marsha W. Griffin, Gary L. Hadwin, Benjy A. Hardee, Nelson
  L. Hardwick, Marilyn B. Hatley, W. John Laymon, Andrew H. Lesnik, L. Morgan
  Martin, John L. Napier, Michael D. Owens, Dennis L. Wade, Douglas P. Wendel,
  Debra D. Wilkins, Vivian A. Wong, and Dennis T. Worley. Guaranties will be
  limited to 125% of the pro-rata amount of

  
	
   

  	
   

  	
   

  
	
  www.SCBandT.com

  
	
  (803) 771-2265 · P.O. Box
  1030, Columbia, SC 29202-1030

  



 

















 


Mr. Michael D. Owens


February 29, 2008


Page Two


 


	
   

  	
   

  	
  each guarantor’s “share” (approximately 4.76%) of the outstanding
  loan amount. Accordingly, the guarantee will state that each individual
  guarantees 5.95%. (125% X 4.76% = 5.95%).

  
	
   

  	
   

  	
   

  
	
  Banking
  Relationship:

  	
   

  	
  Borrower agrees to carry its primary deposit relationship with SCBT
  during the term of the loan.

  
	
   

  	
   

  	
   

  
	
  Prepayment:

  	
   

  	
  There is no pre-payment penalty.

  
	
   

  	
   

  	
   

  
	
  Assignability:

  	
   

  	
  This commitment may not be assigned without the Bank’s prior written
  consent.

  
	
   

  	
   

  	
   

  
	
  Material Adverse
  Change:

  	
   

  	
  This commitment is conditioned on there having occurred no material
  adverse change in the business, business plan, or financial condition of any
  guarantor which may impair the ability of the Borrower or guarantors to
  perform its obligations under the Loan.

  



 


Mike, it is a pleasure to provide this loan commitment to you and the
principals of Coastal Carolina Bancshares, Inc. We look forward to closing
this loan and to the opportunity to provide additional services to you.


 


As we discussed, I have enclosed Guaranty Agreements for each of the
guarantors on the Loan. These are provided at the present time in order to
facilitate the process of getting all of the required signatures in a timely
fashion.


 


Should you have any questions or concerns, please feel free to contact
me. Upon acceptance of this commitment, please sign as indicated and return the
original letter to me. When we have determined a closing date convenient for
you, I will forward the required documents. Best wishes for future success.


 


Sincerely,





	
  Alex Shuford

  Executive Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Enclosures

  	
   

  	
   

  
	
   

  	
   

  	
  ACCEPTED this 17th day of March, 2008

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Coastal Carolina Bancshares, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Michael D. Owens,
  President and CEO

  



 


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