Promissory Note



 Exhibit 10.9 
  

									
	LOAN NUMBER	 	LOAN NAME	 	ACCT. NUMBER	 	NOTE DATE	 	INITIALS
					
	51062315	 	Pinnacle Bankshares Corporation	 		 	12/29/08	 	SDL
					
	NOTE AMOUNT	 	INDEX (w/Margin)	 	RATE	 	MATURITY DATE	 	LOAN PURPOSE
					
	$5,000,000.00	 	Wall Street Journal Prime	 	5.0%	 	12/29/10	 	Commercial
					
		 		 	Creditor Use Only	 		 	

 PROMISSORY NOTE 
 (Commercial - Revolving Draw) 
  
 DATE AND PARTIES. The date of this Promissory Note (Note) is December 29, 2008. The parties and their addresses are: 
 LENDER: 
 COMMUNITY BANKERS’ BANK 
 2601 Promenade Parkway 
 Midlothian, Virginia
23113 
 Telephone: 804-794-5885 
 BORROWER: 
 PINNACLE BANKSHARES CORPORATION 
 a Virginia Corporation 
 622 Broad Street

 Altavista, VA 24517 
 CONFESSION OF
JUDGMENT. I appoint and authorize Matthew Cheek, 1021 East Cary Street, Richmond, VA 23218, attorneys in fact, to appear in the office of Williams Mullen 1021 East Cary Street, Richmond, VA 23218-1320, Virginia, to confess judgment against me,
in favor of you, if I default on this agreement. The confession of judgment may be without process and ONLY for any amount of PRINCIPAL and INTEREST due on this Note. 
 In this notice, “you” means the Borrower. IMPORTANT NOTICE: THIS INSTRUMENT CONTAINS A CONFESSION OF JUDGMENT WHICH CONSTITUTES A WAIVER OF IMPORTANT RIGHTS
YOU MAY HAVE AS A DEBTOR AND ALLOWS THE CREDITOR TO OBTAIN A JUDGMENT AGAINST YOU WITHOUT ANY FURTHER NOTICE. 
 1. DEFINITIONS. As used in
this Note, the terms have the following meanings: 
 A. Pronouns. The pronouns “I,” “me,” and “my” refer
to each Borrower signing this Note, individually and together. “You” and “Your” refer to the Lender. 
 B. Note.
Note refers to this document, and any extensions, renewals, modifications and substitutions of this Note. 
 C. Loan. Loan refers
to this transaction generally, including obligations and duties arising from the terms of all documents prepared or submitted for this transaction such as applications, security agreements, disclosures or notes, and this Note. 
 D. Loan Documents. Loan Documents refer to all the documents executed as a part of or in connection with the Loan. 
 E. Property. Property is any property, real, personal or intangible, that secures my performance of the obligations of this Loan. 
 F. Percent. Rates and rate change limitations are expressed as annualized percentages. 
 2. PROMISE TO PAY. For value received, I promise to pay you or your order, at your address, or at such other location as you may designate, amounts advanced from
time to time under the terms of this Note up to the maximum outstanding principal balance of $5,000,000.00 (Principal), plus interest from the date of disbursement, on the unpaid outstanding Principal balance until this Note is paid in full
and you have no further obligations to make advances to me under the Loan. 
 I may borrow up to the Principal amount more than one time. 
 3. ADVANCES. Advances under this Note are made according to the following terms and conditions. 
 A. Requests for Advances. My requests are a warranty that I am in compliance with all the Loan Documents. When required by you for a particular
method of advance, my requests for an advance must specify the requested amount and the date and be accompanied with any agreements, documents, and instruments that you require for the Loan. Any payment by you of any check, share draft or other
charge may, at your option, constitute an advance on the Loan to me. All advances will be made in United States dollars. I will indemnify you and hold you harmless for your reliance on any request for advances that you reasonably believe to be
genuine. To the extent permitted by law, I will indemnify you and hold you harmless when the person making any request represents that I authorized this person to request an advance even when this person is unauthorized or this person’s
signature is not genuine. 
 I or anyone I authorize to act on my behalf may request advances by the following methods. 
 (1) I make a request in person. 
 (2) I make a request by phone. 
  


					
	Pinnacle Bankshares Corporation	 	 	 	 
	Virginia Promissory Note	 		 	
	VA/4XCHUGHES00000000000111032122908N	 	©1996 Bankers Systems, Inc., St. Cloud, MN 

	 	Page 1









 (3) I make a request by mail. 
 B. Advance Limitations. In addition to any other Loan conditions, requests for, and access to, advances are subject to the following
limitations. 
 (1) Obligatory Advances. You will make all Loan advances subject to this Agreement’s terms and conditions.

 (2) Minimum Advance. Subject to the terms and conditions contained in this Note, advances will be made in the amount of $5000.00.

 (3) Maximum Frequency. Advances will be made no more frequently than Weekly. 
 (4) Cut-Off Time. Requests for an advance received before 3:00:00 pm EST will be made on any day that you are open for business, on the day for
which the advance is requested. 
 (5) Disbursement of Advances. On my fulfillment of this Note’s terms and conditions, you will
disburse the advance in any manner as you and I agree. 
 (6) Credit Limit. I understand that you will not ordinarily grant a request
for an advance that would cause the unpaid principal of my Loan to be greater than the Principal limit. You may, at your option, grant such a request without obligating yourselves to do so in the future. I will pay any over advances in addition to
my regularly scheduled payments. I will repay any over advance by repaying you in full within 10 days after the overdraft occurs. 
 (7) Records. Your records will be conclusive evidence as to the amount of advances, the Loan’s unpaid principal balances and the accrued interest. 
 4. INTEREST. Interest will accrue on the unpaid Principal balance of this Note at the rate of 5.0 percent (Interest Rate) until December 30, 2008, after which time it may change as described in the
Variable Rate subsection. 
 A. Post-Maturity Interest. After maturity or acceleration, interest will accrue on the unpaid Principal
balance of this Note at the Interest Rate in effect from time to time, until paid in full. 
 B. Maximum Interest Amount. Any amount
assessed or collected as interest under the terms of this Note will be limited to the maximum lawful amount of interest allowed by state or federal law, whichever is greater. Amounts collected in excess of the maximum lawful amount will be applied
first to the unpaid Principal balance. Any remainder will be refunded to me. 
 C. Statutory Authority. The amount assessed or
collected on this Note is authorized by the Virginia usury laws under Va. Code §§ 6.1-330.49 et. seq. 
 D. Accrual. Interest
accrues using an Actual/360 days counting method. 
 E. Variable Rate. The Interest Rate may change during the term of this
transaction. 
 (1) Index. Beginning with the first Change Date, the Interest Rate will be based on the following index: U.S. prime
rate is the base rate on corporate loans posted by at least 75% of the 30 largest U.S. banks. 
 The Current Index is the most recent index
figure available on each Change Date. You do not guaranty by selecting this Index, or the margin, that the Interest Rate on this Note will be the same rate you charge on any other loans or class of loans you make to me or other borrowers. If this
Index is no longer available, you will substitute a similar index. You will give me notice of your choice. 
 (2) Change Date. Each
date on which the Interest Rate may change is called a Change Date. The Interest Rate may change December 30, 2008 and daily thereafter. 
 (3) Calculation Of Change. On each Change Date you will calculate the Interest Rate, which will be the Current Index. The result of this calculation will be rounded to the nearest .001 percent. Subject to any limitations, this will
be the Interest Rate until the next Change Date. The new Interest Rate will become effective on each Change Date. The Interest Rate and other charges on this Note will never exceed the highest rate or charge allowed by law for this Note. 

(4) Limitations. The Interest Rate changes are subject to the following limitations: 
 (a) Lifetime. The Interest Rate will never be greater than 18.000 percent or less than 5.000 percent. 
 (5) Effect Of Variable Rate. A change in the Interest Rate will have the following effect on the payments: The amount of scheduled payments and the
amount of the final payment will change. 
 5. ADDITIONAL CHARGES. As additional consideration, I agree to pay, or have paid, these additional fees
and charges. 
 A. Nonrefundable Fees and Charges. The following fees are earned when collected and will not be refunded if I prepay
this Note before the scheduled maturity date. 
 Loan Origination. A(n) Loan Origination fee of $25,000.00 payable from separate funds
on or before today’s date. 
 6. REMEDIAL CHARGES. In addition to interest or other finance charges, I agree that I will pay these additional
fees based on my method and pattern of payment. Additional remedial charges may be described elsewhere in this Note. 
 A. Late Charge.
If a payment is more than 10 days late, I will be charged 5.000 percent of the Amount of Payment. I will pay this late charge promptly but only once for each late payment. 
 7. PAYMENT. I agree to pay this Note on demand, but if no demand is made, I agree to pay all accrued interest on the balance outstanding from time to time in
regular payments beginning January 29, 2009, then on the same day of each month thereafter. A final payment of the entire unpaid outstanding balance of Principal and interest will be due December 29, 2010. 
 Payments will be rounded to the nearest $.01. With the final payment I also agree to pay any additional fees or charges owing and the amount of any advances you have
made to others on my behalf. Payments scheduled to be paid on the 29th, 30th or 31st day of a month that contains no such day will, instead, be made on the last day of such month. 
 Interest payments will be applied first to any charges I owe other than late charges, then to accrued, but unpaid interest, then to late charges. Principal payments will be applied first to the outstanding Principal
balance, then to any late charges. If you and I agree to a different application of payments, we will describe our agreement on this Note. The actual amount of my final payment will depend on my payment record. 
 8. PREPAYMENT. I may prepay this Loan in full or in part at any time. Any partial prepayment will not excuse any later scheduled payments until I pay in full.

  


					
	Pinnacle Bankshares Corporation	 	 	 	 
	Virginia Promissory Note	 		 	
	VA/4XCHUGHES00000000000111032122908N	 	©1996 Bankers Systems, Inc., St. Cloud, MN 

	 	Page 2









 9. LOAN PURPOSE. The purpose of this Loan is working capital. 
 10. ADDITIONAL TERMS. This commitment shall renew annually provided no conditions of default exist and at the sole discretion of the Bank. A 0.50% fee shall be
paid at closing and each renewal period thereafter based on the total commitment. The maximum amount advanced to Borrower shall not exceed, at any time, the lower of the commitment or fifty percent (50.0%) of the book value of the collateral
pledged. 
 11. SECURITY. The Loan is secured by separate security instruments prepared together with this Note as follows: 
  

					
	 Document Name
	  	 Parties to Document
	  	 Date of Security Document

	 Assignment Of Investment Property/Securities - First
	  	Pinnacle Bankshares Corporation	  	December 29, 2008
	 National Bank of Altavista
	  		  	

 12. DEFAULT. I understand that you may demand payment anytime at your discretion. For example, you may
demand payment in full if any of the following occur: 
 A. Payments. I fail to make a payment in full when due. 
 B. Insolvency or Bankruptcy. The death, dissolution or insolvency of, appointment of a receiver by or on behalf of, application of any debtor
relief law, the assignment for the benefit of creditors by or on behalf of, the voluntary or involuntary termination of existence by, or the commencement of any proceeding under any present or future federal or state insolvency, bankruptcy,
reorganization, composition or debtor relief law by or against me or any co-signer, endorser, surety or guarantor of this Note or any other obligations I have with you. 
 C. Business Termination. I merge, dissolve, reorganize, end my business or existence, or a partner or majority owner dies or is declared legally incompetent. 
 D. Failure to Perform. I fail to perform any condition or to keep any promise or covenant of this Note. 
 E. Other Documents. A default occurs under the terms of any other Loan Document. 
 F. Other Agreements. I am in default on any other debt or agreement I have with you. 
 G. Misrepresentation. I make any verbal or written statement or provide any financial information that is untrue, inaccurate, or conceals a
material fact at the time it is made or provided. 
 H. Judgment. I fail to satisfy or appeal any judgment against me. 
 I. Forfeiture. The Property is used in a manner or for a purpose that threatens confiscation by a legal authority. 
 J. Name Change. I change my name or assume an additional name without notifying you before making such a change. 
 K. Property Transfer. I transfer all or a substantial part of my money or property. 
 L. Property Value. You determine in good faith that the value of the Property has declined or is impaired. 
 M. Material Change. Without first notifying you, there is a material change in my business, including ownership, management, and financial
conditions. 
 N. Insecurity. You determine in good faith that a material adverse change has occurred in my financial condition from
the conditions set forth in my most recent financial statement before the date of this Note or that the prospect for payment or performance of the Loan is impaired for any reason. 
 13. DUE ON SALE OR ENCUMBRANCE. You may, at your option, declare the entire balance of this Note to be immediately due and payable upon the creation of, or contract for the creation of, any lien, encumbrance,
transfer or sale of all or any part of the Property. This right is subject to the restrictions imposed by federal law (12 C.F.R. 591), as applicable. 
 14. WAIVERS AND CONSENT. To the extent not prohibited by law, I waive protest, presentment for payment, demand, notice of acceleration, notice of intent to accelerate and notice of dishonor. 
 A. Additional Waivers By Borrower. In addition, I, and any party to this Note and Loan, to the extent permitted by law, consent to certain actions
you may take, and generally waive defenses that may be available based on these actions or based on the status of a party to this Note. 
 (1) You may renew or extend payments on this Note, regardless of the number of such renewals or extensions. 
 (2) You
may release any Borrower, endorser, guarantor, surety, accommodation maker or any other co-signer. 
 (3) You may release, substitute
or impair any Property securing this Note. 
 (4) You, or any institution participating in this Note, may invoke your right of set-off.

 (5) You may enter into any sales, repurchases or participations of this Note to any person in any amounts and I waive notice of such
sales, repurchases or participations. 
 (6) I agree that any of us signing this Note as a Borrower is authorized to modify the terms
of this Note or any instrument securing, guarantying or relating to this Note. 
 B. No Waiver By Lender. Your course of dealing, or
your forbearance from, or delay in, the exercise of any of your rights, remedies, privileges or right to insist upon my strict performance of any provisions contained in this Note, or any other Loan Document, shall not be construed as a waiver by
you, unless any such waiver is in writing and is signed by you. 
 15. REMEDIES. After I default, you may at your option do any one or more of the
following. 
 A. Acceleration. You may make all or any part of the amount owing by the terms of this Note immediately due. 

B. Sources. You may use any and all remedies you have under state or federal law or in any Loan Document. 
 C. Insurance Benefits. You may make a claim for any and all insurance benefits or refunds that may be available on my default. 
  


					
	Pinnacle Bankshares Corporation	 	 	 	 
	Virginia Promissory Note	 		 	
	VA/4XCHUGHES00000000000111032122908N	 	©1996 Bankers Systems, Inc., St. Cloud, MN 

	 	Page 3









 D. Payments Made On My Behalf. Amounts advanced on my behalf will be immediately due and may be
added to the balance owing under the terms of this Note, and accrue interest at the highest post-maturity interest rate. 
 E. Termination.
You may terminate my right to obtain advances and may refuse to make any further extensions of credit. 
 F. Set-Off. You may use
the right of set-off. This means you may set-off any amount due and payable under the terms of this Note against any right I have to receive money from you. 
 My right to receive money from you includes any deposit or share account balance I have with you; any money owed to me on an item presented to you or in your possession for collection or exchange; and any repurchase
agreement or other non-deposit obligation. “Any amount due and payable under the terms of this Note” means the total amount to which you are entitled to demand payment under the terms of this Note at the time you set-off. 
 Subject to any other written contract, if my right to receive money from you is also owned by someone who has not agreed to pay this Note, your right of
set-off will apply to my interest in the obligation and to any other amounts I could withdraw on my sole request or endorsement. 
 Your right
of set-off does not apply to an account or other obligation where my rights arise only in a representative capacity. It also does not apply to any Individual Retirement Account or other tax-deferred retirement account. 
 You will not be liable for the dishonor of any check when the dishonor occurs because you set-off against any of my accounts. I agree to hold you harmless
from any such claims arising as a result of your exercise of your right of set-off. 
 G. Waiver. Except as otherwise required by law,
by choosing any one or more of these remedies you do not give up your right to use any other remedy. You do not waive a default if you choose not to use a remedy. By electing not to use any remedy, you do not waive your right to later consider the
event a default and to use any remedies if the default continues or occurs again. 
 16. COLLECTION EXPENSES AND ATTORNEYS’ FEES. On or after
Default, to the extent permitted by law, I agree to pay all expenses of collection, enforcement or protection of your rights and remedies under this Note or any other Loan Document. Expenses include (unless prohibited by law) reasonable
attorneys’ fees, court costs, and other legal expenses. These expenses are due and payable immediately. If not paid immediately, these expenses will bear interest from the date of payment until paid in full at the highest interest rate in
effect as provided for in the terms of this Note. All fees and expenses will be secured by the Property I have granted to you, if any. In addition, to the extent permitted by the United States Bankruptcy Code, I agree to pay the reasonable
attorneys’ fees incurred by you to protect your rights and interests in connection with any bankruptcy proceedings initiated by or against me. 
 17. COMMISSIONS. I understand and agree that you (or your affiliate) will earn commissions or fees on any insurance products, and may earn such fees on other services that I buy through you or your affiliate. 
 18. WARRANTIES AND REPRESENTATIONS. I make to you the following warranties and representations which will continue as long as this Note is in effect:

 A. Power. I am duly organized, and validly existing and in good standing in all jurisdictions in which I operate. I have the
power and authority to enter into this transaction and to carry on my business or activity as it is now being conducted and, as applicable, am qualified to do so in each jurisdiction in which I operate. 
 B. Authority. The execution, delivery and performance of this Note and the obligation evidenced by this Note are within my powers, have been
duly authorized, have received all necessary governmental approval, will not violate any provision of law, or order of court or governmental agency, and will not violate any agreement to which I am a party or to which I am or any of my Property is
subject. 
 C. Name and Place of Business. Other than previously disclosed in writing to you I have not changed my name or
principal place of business within the last 10 years and have not used any other trade or fictitious name. Without your prior written consent, I do not and will not use any other name and will preserve my existing name, trade names and franchises.

 19. APPLICABLE LAW. This Note is governed by the laws of Virginia, the United States of America, and to the extent required, by the laws of
the jurisdiction where the Property is located, except to the extent such state laws are preempted by federal law. In the event of a dispute, the exclusive forum, venue and place of jurisdiction will be in Virginia, unless otherwise required by law.

 20. JOINT AND INDIVIDUAL LIABILITY AND SUCCESSORS. My obligation to pay the Loan is independent of the obligation of any other person who
has also agreed to pay it. You may sue me alone, or anyone else who is obligated on the Loan, or any number of us together, to collect the Loan. Extending the Loan or new obligations under the Loan, will not affect my duty under the Loan and I will
still be obligated to pay the Loan. This Note shall inure to the benefit of and be enforceable by you and your successors and assigns and shall be binding upon and enforceable against me and my personal representatives, successors, heirs and
assigns. 
 21. AMENDMENT, INTEGRATION AND SEVERABILITY. This Note may not be amended or modified by oral agreement. No amendment or
modification of this Note is effective unless made in writing and executed by you and me. This Note and the other Loan Documents are the complete and final expression of the agreement. If any provision of this Note is unenforceable, then the
unenforceable provision will be severed and the remaining provisions will still be enforceable. 
 22. INTERPRETATION. Whenever used, the
singular includes the plural and the plural includes the singular. The section headings are for convenience only and are not to be used to interpret or define the terms of this Note. 
 23. NOTICE, FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Unless otherwise required by law, any notice will be given by delivering it or mailing it by first class mail to the appropriate party’s
address listed in the DATE AND PARTIES section, or to any other address designated in writing. Notice to one Borrower will be deemed to be notice to all Borrowers. I will inform you in writing of any change in my name, address or other application
information. I will provide you any financial statement or information you request. All financial statements and information I give you will be correct and complete. I agree to sign, deliver, and file any additional documents or certifications that
you may consider necessary to perfect, continue, and preserve my obligations under this Loan and to confirm your lien status on any Property. Time is of the essence. 
 24. CREDIT INFORMATION. I agree to supply you with whatever information you reasonably feel you need to decide whether to continue this Loan. You will make requests for this information without undue
frequency, and will give me reasonable time in which to supply the information. 
 25. ERRORS AND OMISSIONS. I agree, if requested by you, to
fully cooperate in the correction, if necessary, in the reasonable discretion of you of any and all loan closing documents so that all documents accurately describe the loan between you and me. I agree to assume all costs including by way of
illustration and not limitation, actual expenses, legal fees and marketing losses for failing to reasonably comply with your requests within thirty (30) days. 
  


					
	Pinnacle Bankshares Corporation	 	 	 	 
	Virginia Promissory Note	 		 	
	VA/4XCHUGHES00000000000111032122908N	 	©1996 Bankers Systems, Inc., St. Cloud, MN 

	 	Page 4









 26. SIGNATURES. By signing under seal, I agree to the terms contained in this Note. I also acknowledge
receipt of a copy of this Note. 
 BORROWER: 
  

					
	Pinnacle Bankshares Corporation	    	
			
	By	 	 /s/
	    	Date                      (Seal)
		 	Robert H. Gilliam, President	    	

 ACKNOWLEDGMENT (REQUIRED FOR CONFESSION OF JUDGMENT): 
 (Business or Entity) 
 COMMONWEALTH OF
                                        ,
COUNTY (OR CITY) OF
                                        
ss. 
 This instrument was acknowledged before me this      day of
                ,              by Robert H. Gilliam - President of Pinnacle Bankshares
Corporation a Virginia corporation, on behalf of the corporation. 
  

					
	 My commission expires:
	  		  	
		  	 /s/
	  	
		  	(Notary Public)	  	

  


					
	Pinnacle Bankshares Corporation	 	 	 	 
	Virginia Promissory Note	 		 	
	VA/4XCHUGHES00000000000111032122908N	 	©1996 Bankers Systems, Inc., St. Cloud, MN 

	 	Page 5