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Exhibit 10.9    
    

	LOAN NUMBER	 	LOAN NAME
 COMMUNITYSOUTH BANCSHARES INC.	 	ACCT. NUMBER	 	AGREEMENT DATE
 07/26/04	 	INITIALS
 KWW
	
NOTE AMOUNT
 $700,000.00	
 	
INDEX (w/Margin)
 Wall Street Journal Prime minus 0.5%	
 	
RATE
 3.750%	
 	
MATURITY DATE
 08/03/05	
 	
LOAN PURPOSE
 Commercial

 
 

COMMERCIAL LOAN AGREEMENT
  Draw Loan    

        DATE AND PARTIES.    The date of this Commercial Loan Agreement (Agreement) is July 26, 2004. The parties and their
addresses are as follows: 

 LENDER:  

NEXITY
BANK

950 48TH Ave. North, Suite 203

Myrtle Beach, South Carolina 29577-5434 

 BORROWER:  

COMMUNITYSOUTH
BANCSHARES, INC.

a South Carolina corporation

1909 East Main Street

Easley, South Carolina 29640 

1.    DEFINITIONS. For the purposes of this Agreement, the following terms have the following meanings. 

A. Accounting Terms.    In this Agreement, any accounting terms that are not specifically defined will have their customary meanings under
generally accepted accounting principles. 

B. Insiders.    Insiders include those defined as insiders by the United States Bankruptcy Code, as amended; or to the extent left undefined,
include without limitation any officer, employee, stockholder or member, director, partner, or any immediate family member of any of the foregoing, or any person or entity which, directly or
indirectly, controls, is controlled by or is under common control with me. 

C. Loan.    The Loan refers to this transaction generally, including obligations and duties arising from the terms of all documents prepared
or submitted for this transaction. 

D. Pronouns.    The pronouns "I", "me" and "my" refer to every Borrower signing this Agreement individually or together, and their heirs,
successors and assigns. "You" and "your" refers to the Loan's lender, any participants or syndicators, or any person or company that acquires an interest in the Loan and their successor and assigns. 

E. Property.    Property is any property, real, personal or intangible, that secures my performance of the obligations of this Loan. 

2.    ADVANCES. Advances under this Agreement are made according to the following terms and conditions. 

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A. Multiple Advances.    In accordance with the terms of this Agreement and other Loan documents, you will provide me with a draw note and the
maximum total principal balance will not exceed $700,000.00 (Principal). 

B. 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 in United States dollars. I will indemnify you and
hold you harmless for your reliance on any request for advances that your 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. 

(3)    I make a request by mail. 

(4)    email, fax 

C. 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 Agreement advances will be made in the amount of $5,000.00. 

(3)    Cut-Off Time. Requests for an advance received before 02:00 PM will be made on any day that you are open for business, on
the day for which the advance requested. 

(4)    Disbursement of Advances. On my fulfillment of this Agreement's terms and conditions, you will disburse the advance in any manner as
you and I agree. 

(5)    Credit Limit. I understand that you will not ordinarily grant a request for an advance that would cause the unpaid principal of any
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. 

(6)    Records. Your records will be conclusive evidence as to the amount of advances, the Loan's unpaid principal balance and the accrued
interest. 

D. Conditions. I will satisfy all of the following conditions before you either issue any promissory notes or make any advances under this Agreement. 

(1)    No Default. There has not been a default under this Agreement or other Loan documents nor would a default result from making the Loan
or any advance. 

(2)    Information. You have received all documents, information, certifications and warranties as you may require, all properly executed, if
appropriate, on forms acceptable to you. This includes, but is not limited to, the documents and other terms listed in the Loan Checklist Report which is hereby incorporated by reference into this
Agreement. 

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(3)    Inspections. You have made all inspections that you consider necessary and are satisfied with his inspection. 

(4)    Conditions and Covenants. I will have performed and complied with all conditions required for an advance and all covenants in this
Agreement and any other Loan documents. 

(5)    Warranties and Representations. The warranties and representations contained in this Agreement are true and correct at the time of
making the requested advance. 

(6)    Financial Statements. My most recent financial statements and other financial reports, delivered to you, are current, complete, true
and accurate in all material respects and fairly represent my financial condition. 

(7)    Bankruptcy Proceedings. No proceeding under the United States Bankruptcy Code has been commended by or against me or any of my
affiliates. 

3.    MATURITY DATE. I agree to fully repay the Loan by August 3, 2005. 

4.    WARRANTIES AND REPRESENTATIONS. I make to you the following warranties and representations which will continue as long as this Loan is
in effect, except when this Agreement provides otherwise. 

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 transactions 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 Loan and the obligation evidenced by the 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. 

D. Hazardous Substances.    Except as I previously disclosed in writing and you acknowledge in writing, no Hazardous Substance, underground
tanks, private dumps or open wells are current located at, on, in, under or about the Property. 

E. Use of Property.    After diligent inquiry, I do not know or have reason to know that any Hazardous Substance has been discharged leached
or disposed of, in violation of any Environmental Law, from the property onto, over or into any other property, or from any other property onto, over or into the property. 

F. Environmental Laws. I have no knowledge or reason to believe that there is any pending or threatened investigation, claim, judgment or order,
violation, lien, or other notice under any Environmental Law that concerns me or the property. The property and any activities on the property are in full compliance with all Environmental Law. 

G. Loan Purpose.    This Loan is for Commercial purposes. 

H. No Other Liens. I own or lease all property that I need to conduct my business and activities. I have good and marketable title to all property that
I own or lease. All of my Property is free and clear of all liens, security interests, encumbrances and other adverse claims and interests, except those to you or those you consent to in writing. 

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I. Compliance With Laws. I am not violating any laws, regulations, rules, orders, judgments or decrees applicable to me or my property, except for those
which I am challenging in good faith through property proceedings after providing adequate reserves to fully pay the claim and its challenge should I lose. 

J. Legal Dispute.    There are no pending or threatened lawsuits, arbitrations or other proceedings against me or my property that singly or
together may materially and adversely affect my property, operations, financial condition, or business. 

K. Adverse Agreements. I am not a party to, nor am I bound by, any agreement that is now or is likely to become materially adverse to my business,
Property or operations. 

L. Other Claims.    There are no outstanding claims or rights that would conflict with the execution, delivery or performance by me of the
terms and conditions of this Agreement or the other Loan documents. No outstanding claims or rights exist that may result in a lien on the Property, the Property's proceeds and the proceeds of
proceeds, except liens that were disclosed to and agreed to by you in writing. 

M. Solvency. I am able to pay my debts as they mature, my assets exceed my liabilities and I have sufficient capital for my current and planned business
and other activities. I will not become insolvent by the execution or performance of this Loan. 

5.    FINANCIAL STATEMENTS. I will prepare and maintain my financial records using consistently applied generally accepted accounting
principles then in effect. I will provide you with financial information in a form that you accept and under the following terms. 

A. Certification. I represent and warrant that any financial statements that I provide you fairly represents my financial condition for the stated
periods, is current, complete, true and accurate in all material respects, includes all of my direct or contingent liabilities and there has been no material adverse change in my financial condition,
operations or business since the date the financial information was prepared. 

B. Frequency.    Annually, I will provide to you my financial statements, tax returns, annual internal audit reports or those prepared by
independent accountants as soon as available or at least within days after the close of each of my fiscal years. Any annual financial statements that I provide you will be audited statements. 

C. SEC Reports. I will provide you with true and correct copies of all reports, notices or statements that I provide to the Securities and Exchange
Commission, any securities exchange or my stockholders, owners, or the holders of any material indebtedness as soon as available or at least within days after issuance. 

D. Requested Information. I will provide you with any other information about my operations, financial affairs and condition within days after your
request. 

6.    COVENANTS. Until the Loan and all related debts, liabilities and obligations are paid and discharged, I will comply with the following
terms, unless you waive compliance in writing. 

A. Participation. I consent to you participating or syndicating the Loan and sharing any information that you decide is necessary about me and the loan
with the other participants or syndicators. 

B. Inspection.    Upon reasonable notice, I will permit you or your agents to enter any of my premises and any location where my Property is
located during regular business hours to do the following. 

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(1)    You may inspect, audit, check, review and obtain copies from my books, records, journals, orders, receipts and any correspondence and
other business related date. 

(2)    You may discuss my affairs, finances and business with any one who provides you with evidence that they are a creditor of mine, the
sufficiency of which will be subject to your sole discretion. 

After
prior notice to me, you may discuss my financial condition and business operations with my independent accountants, if any, or my chief financial officer and I may be present during these
discussions. As long as the Loan is outstanding, I will direct all of my accountants and auditors to permit you to examine my records in their possession and to make copies of these records. You will
use your best efforts to maintain the confidentiality of the information you or your agents obtain, except you may provide your regulator, if any, with required information about my financial
condition, operation and business or that of my patent, subsidiaries or affiliates. 

C. Business Requirements. I will preserve and maintain my present existence and good standing in the jurisdiction where I am organized and all of my
rights, privileges and franchises. I will do all that is needed or required to continue my business or activities as presently conducted, by obtaining licenses, permits and bonds everywhere I engage
in business or activities or own, lease or locate my property. I will obtain your prior written consent before I cease my business or before I engage in any law line of business that is materially
different from my present business. 

D. Compliance with Laws. I will not violate any laws, regulations, rules, orders, judgments or decrees applicable to me or my Property, except for those
which I challenge in good faith through proper proceedings after providing adequate reserves to fully pay the claim and its appeal should I lose. Laws include without limitation the Federal Fair Labor
Standards Act requirements for producing goods, the federal Employee Retirement Income Security Act of 1974's requirements for the establishment, funding and management of qualified deferred
compensation plans for employees, health and safety laws, environmental laws, tax laws, licensing and permit laws. On your request, I will provide you with written evidence that I have fully and
timely paid my taxes, assessments and other governmental charges levied or imposed on me, my income or profits and my property. Taxes include without limitation sales taxes, use taxes, personal
property taxes, documentary stamp taxes, recordation taxes, franchise taxes, income taxes, withholding taxes, FICA taxes and unemployment taxes. I will adequately provide for the payment of these
taxes, assessments and other charges that have accrued but are not yet due and payable. 

E. New Organizations. I will obtain your written consent and any necessary changes to the Loan documents before I organize or participate in the
organization of any entity, merge into or consolidate with any one, permit any one else to merge into me, acquire all or substantially all of the assets of any one else or otherwise materially change
my legal structure, management, ownership or financial condition. 

F. Dealings with Insiders. I will not purchase, require or lease any property or services from, or sell, provide or lease any property or services to,
or permit any outstanding loans or credit extensions to, or otherwise deal with, any Insiders except as required under contracts existing at the time I applied for the Loan and approved by you or as
this Agreement otherwise permits. I will not change or breach these contracts existing at Loan application so as to cause an acceleration of or an increase in any payments due. 

G. Other Debts. I will pay when due any and all other debts owed or guaranteed by me and will faithfully perform, or comply with all the conditions and
obligations imposed on me concerning the debt or guaranty. 

H. Other Liabilities. I will not incur, assume or permit any debt evidenced by notes, bonds or similar obligations, except: debt in existence on the
date of this Agreement and fully disclosed to 

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you;
debt subordinated in payment to you on conditions and terms acceptable to you; accounts payable incurred in the ordinary course of my business and paid under customary trade terms or contested in
good faith with reserves satisfactory to you. 

I. Notice to You. I will promptly notify you of any material change in my financial condition, of the occurrence of a default under the terms of this
Agreement, or a default by me under any agreement between me and any third party which materially and adversely affects my property, operations, financial condition or business. 

J. Certification of No Default.    On your request, my chief financial officer or my independent accountant will provide you with a written
certification that to the best of their knowledge no event of default exists under the terms of this Agreement or the other Loan documents, and that there exists no other action, condition or event
which with the giving of notice or lapse of time or both would constitute a default. As requested, my chief financial officer or my independent accountant will also provide you with computations
demonstrating compliance with any financial covenants and ratios contained in this Agreement. If an action, condition or event of default does exist, the certificate must accurately and fully disclose
the extent and nature of this action, condition or event and state what must be done to correct it. 

K. Use of Loan Proceeds. I will not permit the loan proceeds to be used to purchase, carry, reduce, or retire any loan originally incurred to purchase
or carry an margin stock or otherwise cause the Loan to violate Federal Reserve Board Regulations U or X, or Section 8 of the Securities and Exchange Act of 1934 and its regulations, as
amended. 

L. Dispose of No Assets.    Without your prior written consent or as the Loan documents permit, will not sell, lease, assign, transfer,
dispose of or otherwise distribute all or substantially all of my assets to any person other than in the ordinary course of business for the assets depreciated book value or more. 

M. No Other Liens. I will not create, permit or suffer any lien or encumbrance upon any of my properties for or by anyone, other than you, except for:
nonconsensual liens imposed by law arising out of the ordinary course of business on obligations that are not overdue or which I am contesting in good faith after making appropriate reserves; valid
purchase money security interests on personal property; or any other liens specifically agreed to by you in writing. 

N. Guaranties. I will not guaranty or become liable in any way as surety, endorser (other than as endorser of negotiable instruments in the ordinary
course of business) or accommodation endorser or otherwise for the debt or obligations of any other person or entity, except to you or as you otherwise specifically agree in writing. 

O. No Default Under Other Agreements. I will not allow to occur, or to continue unremedied, any act, event or condition which constitutes a default, or
which, with the passage of time or giving of notice, or both, would constitute a default under any agreement, document, instrument or undertaking to which I am a party by which I may be bound. 

P. Legal Disputes. I will promptly notify you in writing of any threatened or pending lawsuit, arbitration or other proceeding against me or any of my
property, not identified in my financial statements, or that singly or together with other proceedings may materially and adversely affect my property, operations, financial condition or business, I
will use my best efforts to bring about a favorable and speedy result of any of these lawsuits, arbitrations or other proceedings. 

Q. Other Notices. I will immediately provide you with any information that may materially and adversely affect my ability to perform this Agreement and
of its anticipated effect. 

R. No Change in Capital. I will not release, redeem, retire, purchase or otherwise acquire, directly or indirectly, any of my capital stock or other
equity security or partnership interest, or make any 

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change
in my capital structure, except to the extent required by any agreements signed prior to this Agreement and disclosed to you or with your prior written consent. 

S. Loan Obligations. I will make full and timely payment of all principal and interest obligations, and comply with the other terms and agreements
contained in this Agreement and in the other Loan documents. 

T. Insurance. I will obtain and maintain insurance with insurers, in amounts and coverages that are acceptable to you and customary with industry
practice. This may include without limitation insurance policies for public liability, fire, hazard and extended risk, workers compensation, and, at your request, business interruption and/or rent
loss insurance. At your request, I will deliver to you certified copies of all of these insurance policies, binders or certificates. I will obtain and maintain a mortgage or lender loss payee
endorsement for you when these endorsements are available. I will immediately notify you of cancellation or termination of insurance. I will require all insurance policies to provide you with at least
10 days prior written notice to you of cancellation or modification. I consent to you using or disclosing information relative to any contract of insurance required by the Loan for the purpose
of replacing this
insurance. I also authorize my insurer and you to exchange all relevant information related to any contract of insurance required by any document executed as part of this Loan. 

U. Reserves.    You may set aside and reserve Loan proceeds for Loan interest, fees and expenses, taxes, and insurance. 

No
interest will accrue on any reserve Loan proceeds. Disbursement of reserves is disbursement of the Loan's proceeds. At my request, you will disburse the reserves for the purpose they were set aside
for, as long as I am not in default under this Agreement. You may directly pay these reserved items, reimburse me for payments I made or reduce the reserves and increase the Loan proceeds available
for disbursement. 

7.    DEFAULT. I will be in default 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 Agreement or any
other obligations I have with you. 

C. Business Termination. I merge, dissolve, reorganize, and 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 Agreement. 

E. Other Documents. A default occurs under the terms of any other transaction 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. 

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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.    The value of the Property declines 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 reasonably believe that you are insecure. 

8.    REMEDIES. After I default, and after you give any legally required notice and opportunity to cure the 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 the Loan immediately due. If I am a debtor in a
bankruptcy petition or in an application filed under section 5(a)(3) of the Securities Investor Protection Act, the Loan is automatically accelerated and immediately due and payable without
notice or demand upon filing of the petition or application. 

B. Sources.    You may use any and all remedies you have under state or federal law or in any instrument securing the Loan. 

C. Insurance Benefits.    You may make a claim for any and all insurance benefits or refunds that may be available on my default. 

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 the Loan, 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 amounts due and payable
under the terms of the Loan 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 the Loan" means the total amount to which you are entitled to demand payment under
the terms of the Loan 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 the Loan, 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. 

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9.    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 Agreement. Expenses include, but are not limited to, 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
Loan. All fees and expense will be secured by the Property I have granted to you, if any. To the extent permitted by the United States Bankruptcy Code, I agree to pay the reasonable attorneys' fees
you incur to collect this debt as awarded by an court exercising jurisdiction under the Bankruptcy Code. 

10.    APPLICABLE LAW. This Agreement is governed by the laws of South Carolina, the United States of America and to the extent required, by
the laws of the jurisdiction where the Property is located. In the event of a dispute, the exclusive forum, venue and place of jurisdiction will be in South Carolina, unless otherwise required by law. 

11.    JOINT AND INDIVIDUAL LIABILITY AND SUCCESSORS. My obligation to pay this 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 this Loan, or any number of us together, to collect this Loan. Extending this Loan or new obligations under this
Loan, will not affect my duty under this Loan and I will still be obligated to pay this Loan. The duties and benefits of this Loan will bind and benefit the successors and assigns of you and me. 

12.    AMENDMENT, INTEGRATION AND SEVERABILITY. This Agreement may not be amended or modified by oral agreement. No amendment or modification
of this Agreement is effective unless made in writing and executed by you and me. This Agreement is the complete and final expression of the understanding between you and me. If any provision of this
Agreement is unenforceable, then the unenforceable provision will be severed and the remaining provisions will still be enforceable. 

13.    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 Agreement. 

14.    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 party will be deemed to be notice
to all parties. 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. 

15.    AGREEMENT TO ARBITRATE. You or I may submit to binding arbitration any dispute, claim or other matter in question between or among you
and me that arises out of or relates to this Transaction (Dispute), except as otherwise indicated in this section or as you and I agree to in writing. For purposes of this section, this Transaction
includes this Agreement and any other documents, instruments and proposed loans or extensions of credit that relate to this Agreement. You or I will not arbitrate any Dispute within any "core
proceedings" under the United States bankruptcy laws. 

You
and I must consent to arbitrate any Dispute concerning a debt secured by real estate at the time of the proposed arbitration. You may foreclose or exercise any powers of sale against real property
securing a debt underlying any Dispute before, during or after any arbitration. You may also enforce a debt secured by this real property and underlying the Dispute before during or after any
arbitration. 

9

 

You
or I may seek provisional remedies at any time from a court having jurisdiction to preserve the rights of or to prevent irreparable injury to you or me. Foreclosing or exercising a power of sale,
beginning and continuing a judicial action or pursuing self-help remedies will not constitute a waiver of the right to compel arbitration. 

The
arbitrator will determine whether a Dispute is arbitrable. A single arbitrator will resolve any Dispute, whether individual or joint in nature, or whether based on contract, tort, or any other
matter at law or in equity. The arbitrator may consolidate any Dispute with any related disputes, claims or other matters in question not arising out of this Transaction. Any court having jurisdiction
may enter a judgment or decree on the arbitrator's award. The judgment or decree will be enforced as any other judgment or decree. 

You
and I acknowledge that the agreements, transactions or the relationships which result from the agreements or transactions between and among you and me involve interstate commerce. The United
States Arbitration Act will govern the interpretation and enforcement of this section. 

The
American Arbitration Association's Commercial Arbitration Rules, in effect on the date of his Agreement, will govern the selection of the arbitrator and the arbitration process, unless otherwise
agreed to in this Agreement or another writing. 

16.    WAIVER OF TRIAL FOR ARBITRATION. You and I understand that the parties have the right or opportunity to litigate any Dispute through a trial by judge or jury,
but that the parties prefer to resolve Disputes through arbitration instead of litigation. If any Dispute is arbitrated, you and I voluntarily and knowingly waive the right to have a trial by jury or
judge during the arbitration. 

17.    SIGNATURES. By signing under seal, I agree to the terms contained in this Agreement. I also acknowledge receipt of a copy of this
Agreement. 

	 	 	BORROWER:	 	 
	

 	
 	

 	
 	

COMMUNITY SOUTH BANCSHARES INC	

 	

 
	

 	
 	

 	
 	

 	
 	

By:	

/s/  C. ALLAN DUCKER, III      
	

(Seal)	

 
	 	 	 	 	 	 	C ALLAN DUCKER III, CHIEF EXECUTIVE OFFICER
	

 	
 	

 	
 	

 	
 	

 	

 	

 	

 
	

 	
 	

 	
 	

 	
 	

By:	

/s/  DAVID A. MILLER      
	

(Seal)	

 
	 	 	 	 	 	 	DAVID A MILLER, PRESIDENT
	 	 	 	 	 	 	 	 	 	 

	 	 	 
	COMMUNITYSOUTH BANCSHARES INC.

South Carolina Commercial Loan Agreement

SC/4XCCHERRY00815100004473036072204Y	 	Initials
	

1996 Bankers Systems, Inc., St. Cloud, MN ExpenaTM
	

~Doc# 574745.01~	
 	

 

10

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Exhibit 10.9

COMMERCIAL LOAN AGREEMENT Draw LoanQuickLinks
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Exhibit 10.10    
    

OPTION AND AGREEMENT OF SALE  

        This Option and Agreement of Sale (the "Agreement") executed to be effective this 18th day of August, 2004, by and between CommunitySouth Bancshares, Inc.,
a South Carolina banking corporation with a mailing address of P. O. Box 2849, Easley, South Carolina 29641 (hereinafter referred to as the "Buyer") and Daniel E. Youngblood, an individual and
resident of the State of South Carolina, with a mailing address of 1909 East Main Street, Easley, South Carolina 29640 (hereinafter referred to as the "Seller"). 

WITNESSETH:  

1.     Defined Terms  

        1.1    Each
of the following terms, when used in this Agreement, shall have the meaning ascribed to each such term in this Section 1.1.    

        1.1.1.    "Closing".    The
consummation of the conveyance of the Property to Buyer and payment of the portion of the Purchase Price specified in Section 4
below. Except as the parties may otherwise agree, the Closing shall be deemed to occur at the instant in time that the Buyer receives the consideration specified hereinbelow. 

        1.1.2.    "Closing
Condition".    A condition described in Section 7.1 hereof which, if not satisfied prior to Closing, may be the basis of the Buyer
terminating its obligation under this Agreement. 

        1.1.3.    "Closing
Date".    If not extended as agreed by the parties, thirty (30) days after the Notice of Exercise of Option is sent to the Seller. 

        1.1.4.    "Deed".    The
Deed by which the Real Property is conveyed to Buyer (or its nominee) at the Closing, as provided herein. 

        1.1.5.    "Execution
Date".    The date specified in the introductory paragraph of this Agreement as being the date this Agreement was executed. 

        1.1.6.    "Intangible
Personal Property".    The items described in Section 2.3 below. 

        1.1.7.    "Notice
of Exercise of Option".    A written notice given to the Seller of the Buyer's intent to purchase the Property. 

        1.1.8.    "Option
Amount".    The sums to be paid by Buyer as provided in Section 3.2(a) below. 

        1.1.9.    "Pending
Closing".    The period from and including the Execution Date to the completion of the Closing. 

        1.1.10.    "Person".    The
term "person" shall mean any natural person, corporation, company, partnership, proprietorship, joint venture, association, joint stock
company, limited liability company, limited liability partnership, trust, foundation, fund, institution, society, union, club, or other group organized for any purpose, whether or not incorporated,
wherever located and of whatever citizenship, or any receiver, trustee in bankruptcy or similar official, any liquidating agent for any of the foregoing, any trustee or executor in his capacity as
such or any government or any agency or political subdivision thereof. 

        1.1.11.    "Property".    The
items described in Section 2 below and consisting of the Real Property and the Intangible Personal Property. 

        1.1.12.    "Purchase
Price".    The total sum specified in Section 4 below. 

        1.1.13.    "Real
Property".    The land, improvements, fixtures, appurtenances, and other items of real property referred to in Section 2.2 below. 

 

        1.1.14.    "Title
Insurer".    A title company acceptable to Buyer. 

2.     Sale of Assets  

        2.1    The
Seller agrees to sell and the Buyer agrees to purchase, pursuant to the provisions of this Agreement, the Property described below in this Section 2 and all
of the Seller's right, title, and interest in and to or in any way pertaining to the Property.    

        2.2    Real
Property.    All of the land owned by the Seller located in Pickens County, South Carolina, containing approximately 1.20 acres located at 6602 Calhoun
Memorial Highway, Easley, South Carolina; provided, however, that Buyer shall cause a survey of the Real Property to be made prior to Closing, the general warranty deed to be delivered by Seller at
closing shall describe the Real Property in accordance with such survey, together with any buildings, improvements, fixtures, and other items of real property located on such land, and all easements,
and other interests and rights of Seller which are appurtenant to the subject land, including, but not limited to, all right, title, and interest, if any, of the Seller in and to any timber, mineral
rights, land lying in any street, road, or avenue in front of, within, adjacent to, or adjoining such land and all other land owned by Seller of any nature whatsoever adjacent to or adjoining the land
described herein. 

        2.3    Intangible
Personal Property.    All intangible personal property owned by the Seller and used in the ownership, operation or maintenance of the Real Property
or any portion thereof. The Intangible Personal Property shall include, all contract rights of the Seller relating to the Property, the interest of the Seller in and the control of the Seller over
escrow accounts, insurance policies, deposits, instruments, documents of title, general intangible and business records pertaining to the buildings, improvements and land, excluding only cash on hand
and in bank accounts. 

3.     Option to Purchase  

        3.1    Option.    Nothwithstanding
anything herein to the contrary, the Buyer shall have the exclusive option, but not the obligation, to purchase the Property, until
February 18, 2005, unless extended as provided hereinbelow ("Option Period"). Until February 18, 2005, unless extended as provided herein, the Seller shall not enter into any agreement,
contract or other document relating to the Property including but not limited to any agreement or option to sell the Property. If Buyer chooses not to exercise its option to purchase the Property for
any reason, the Seller's obligations hereunder shall terminate, Seller shall retain the Option Amount and Seller shall have no recourse against the Buyer. If Buyer chooses to exercise its option to
purchase the Property, it shall send the Seller a Notice of Exercise of Option, and Seller and Buyer shall proceed to closing as set forth herein. 

        3.2    Extension
of Option to Purchase.    

        (a)   If
before February 18, 2005, the Buyer shall notify the Seller that it desires to extend the Option, and if Buyer tenders a check to Seller for $5,000.00 as an
additional Option Amount (the "Extension Fee") prior to or on February 18, 2005, then the Option Period shall be extended until May 18, 2005. 

        (b)   If
the Buyer has not sent a Notice of Exercise of Option by the end of the Option Period or extended the Option Period as provided above, then this Agreement shall
terminate, in which event neither party shall have any further liability under this Agreement, except that the Option Amount, including any Extension Fee, shall remain with the Seller. 

4.     Purchase Price  

        4.1    Amount.    Subject
to the adjustments and prorations described hereinbelow, the total Purchase Price to be paid by the Buyer to the Seller for the Property
shall be $775,000.00. The Purchase Price shall be paid in the manner specified below in this Section 4. The Purchase Price must 

2

 

be
confirmed by the average of two (2) MAI appraisals to be obtained by the Buyer prior to the Buyer's delivery of a Notice of Exercise of Option. If the appraisals do not confirm and support
the Purchase Price, the Buyer may, at its option, terminate this Agreement and be relieved of all obligations hereunder, and the Seller will immediately refund the Option Amount and any Extension Fee
paid. 

        4.2    Option
Amount.    The sum of Ten Thousand Dollars ($10,000.00) in collected funds shall be delivered to the Seller with the execution of this Agreement as the
Option Amount and, except as may be otherwise provided for by this Agreement, shall be applied against the Purchase Price at the Closing (along with any Extension Fee paid to Seller). 

        4.3    Payment
at Closing.    At Closing, the Buyer shall pay to the Seller the balance of the Purchase Price adjusted as provided for by this Agreement. Such sum
shall be paid by certified check or wire transfer. 

        4.4    [N/A]    

5.     Title to the Real Property  

        5.1    Quality
of Title.    Title to the Real Property shall be good and marketable and free and clear of all liens, restrictions, easements, and other encumbrances
and title objections, and shall be insurable as such at basic ordinary rates by Title Insurer. 

        5.2    Effect
of Title Defects.    If title to or survey of the Property at Closing shall not be as required by this Agreement, Buyer shall have the option of either
taking such title as Seller can convey without abatement of price, or of canceling this Agreement. In the latter event, all monies theretofore paid to Seller as the Option Amount (and any Extension
Fee) shall be returned to the Buyer, and the Buyer shall have no further obligation to the Seller hereunder. On or before fifteen (15) days after the date of the Notice of Exercise of Option,
Buyer shall inform Seller of any title or survey defects which must be corrected by Seller prior to Closing. 

        5.3    Willful
Acts of Seller.    If title to the Property shall not be as required by this Agreement by reason of any willful act or omission by Seller, Buyer shall
be entitled to pursue any other remedies available at law or in equity. 

6.     Closing  

        The sale contemplated by this Agreement shall be consummated as follows: 

        6.1    Title
Transfer—Form of Deed.    The Seller shall convey title to the Real Property to the Buyer by general warranty deed on or before the close of
business on the Closing Date and, effective on the delivery of such deed by the Seller to the Buyer, beneficial ownership and the risk of loss of the Real Property shall pass from the Seller to the
Buyer. 

        6.2    Closing
Date.    Except as otherwise provided for by this Agreement, the parties shall meet to consummate the Closing at 10 a.m. on the Closing Date and
proceed continuously thereafter until Closing shall be consummated. 

        6.3    Closing
Place.    The Closing shall take place at the offices of Nelson Mullins Riley & Scarborough, L.L.P. Suite 900, 104 South Main Street,
Greenville, South Carolina 29601. 

        6.4    Seller's
Instruments.    Upon and effective simultaneously with Closing, the Seller shall deliver or cause to be delivered to the Buyer the following items,
all of which shall be duly executed and, to the extent appropriate, acknowledged: 

        6.4.1.    Deed.    A
general warranty deed executed by the Seller and effective to convey to the Buyer the title to the Real Property. 

3

 

        6.4.2.    Lien
Affidavit.    An affidavit or letter of indemnity in form acceptable to the Title Insurer certifying all matters as may be required by the Title
Insurer to enable it to insure Buyer's title to the Real Property without exception for unfiled mechanics' or materialmen's liens or other matters, and without payment of any special or additional
premium. 

        6.4.3.    Leases.    An
affidavit that there are no leases affecting the Property. 

        6.4.4.    Governmental
Parties, Certificates and Approvals.    Any certificate of occupancy or other permits Seller may have pertaining to operation and maintenance
of the Property. 

        6.4.5.    Warranties
and Guarantees.    Assignments of all assignable warranties and guaranties affecting any portion of the Property, together with the originals of
such warranties and guaranties. 

        6.4.6.    Drawings.    Any
architectural or engineering drawings of the Property, utilities layout plans, surveys, or like documents. 

        6.4.7.    Environmental
Certificates.    Any certificate required to be delivered under any environmental act or other law relating to hazardous substances. 

        6.4.8.    Non-Foreign
States Certificate.    The Certificate of Non-foreign Status. 

        6.4.9.    Additional
Documents.    Such additional documents as may be reasonably required by the Buyer to consummate the closing. 

        6.5    Consideration
At Closing.    At closing, the Buyer shall deliver to the Seller the payment to be made at Closing. 

        6.6    Seller's
Costs.    The Seller shall, before or simultaneously with the Closing, pay the following costs: The Seller's attorneys' fees, any real estate or other
brokerage commission payable, any fees associated with the preparation and recording of the deed, and any fees or expenses incurred in connection with correcting any title or survey defects, if any. 

        6.7    Buyer's
Costs.    The Buyer shall, before or simultaneously with the Closing pay the following costs: The Buyer's attorneys' fees, all abstracting costs, the
costs of any and all tests, reports, surveys or permits obtained by Buyer relating to its inspection of the Property, the owner's title insurance premium, and the documentary stamps (also known as
filing fees) associated with the conveyance contemplated herein. 

        6.8    Foreign
Persons.    If Seller is a "foreign person" as defined in Section 1445(f)(3) of the Internal Revenue Code of 1986, as amended (the "Code"),
Buyer shall deduct and withhold from the proceeds of the sale such amounts as are required by Section 1445 of the Code. 

7.     Requirements of Seller.  

        7.1    Closing
Conditions.    Notwithstanding anything in this Agreement to the contrary, the Seller must comply with the following conditions prior to Closing,
unless waived by Buyer: 

        7.1.1.    Representations
and Warranties True at Closing.    The representations and warranties of the Seller contained in this Agreement shall be true on and as of
the Closing date with the same effect as though such representations and warranties had been made on and as of such date, except for changes occurring in the ordinary course of business, none of which
changes has been individually or in the aggregate materially adverse, and there shall be no breach of any said representations or warranties. 

        7.1.2.    No
Material Misstatements or Omissions.    Buyer shall not have discovered any material error, misstatement, or omission in the representations and
warranties made by Seller. 

4

 

        7.1.3.    Counsel's
Satisfaction.    The validity of the transaction contemplated by this Agreement, as well as the form and substance of all certificates and
documents to be delivered by Seller at Closing shall be reasonably satisfactory in all respects to counsel for Buyer. 

        7.1.4.    No
Court Orders.    There shall be no effective injunction or restraining order of any nature issued by a court of competent jurisdiction which shall direct
that this Agreement or the transaction contemplated herein not be consummated. 

        7.1.5.    Sellers'
Compliance.    Seller shall have fully complied with all of the covenants in this Agreement on its part to be performed on or prior to the Closing
Date. 

8.     Adjustments and Prorations  

        Whenever provision is made in this Agreement for an item to be prorated to the day of the Closing, Buyer shall either be responsible for or shall be entitled to a
credit for (as the case may be) the actual day that the Closing shall occur. The Purchase Price shall be adjusted at Closing on the following basis: 

        8.1    Property
Rents.    All rents receivable from tenants earned and attributable to the period prior to the day of the Closing shall be paid to the Seller to the
extent that such rents have been collected prior to the day of the Closing. Rents earned and attributable to the period beginning on the day of the Closing and thereafter shall be paid to the Buyer.
Upon receipt after the Closing by the Buyer of rents earned by the Property prior to the day of the Closing the same shall be paid to the Seller; provided, that the Buyer shall have no obligation to
enforce collection of such rents. 

        8.2    Accounts
Payable.    All sums due for accounts payable which were owing or incurred in the maintenance or operation of the Property prior to the day of the
Closing shall be paid by the Seller on or prior to Closing or adequate provisions reasonably satisfactory to Buyer shall be made in respect to such payment. Seller agrees to indemnify Buyer with
respect to all such obligations. The Buyer shall furnish to the Seller for payment, promptly following receipt, any bills to be paid by Seller. 

        8.3    Property
Taxes.    Property taxes shall be prorated, and Buyer shall be given a credit for Seller's portion of all property taxes relating to the Property;
provided, however, that Seller shall be responsible for all roll-back taxes associated with the Property. 

        8.4    Utility
Charges.    Gas, electricity, and other utility charges shall be prorated as of the day of Closing. All utility security deposits, if any, shall be
retained by the Seller. 

9.     Pending Closing  

        9.1    Covenant
to Operate and Maintain.    Prior to Closing, the Seller shall maintain, repair, manage, and operate the Property in a businesslike manner in
accordance with the Seller's prior practices, and Seller shall not dissipate any portion of the Property, including but not limited to any timber located thereon. 

        9.2    Right
of Entry.    Buyer or its agents, at their own risk and expense, shall have the privilege of entering upon the Property, at any time between the date
hereof and Closing, for the purpose of making surveys, inspections, soil borings and like tests. Seller shall cooperate with Buyer in making such surveys, inspections, and tests, and will obtain
cooperation of Seller's employees, tenants and/or agents in connection therewith. 

        9.3    Inspection.    Seller
hereby grants Buyer and his agents, employees, and contractors permission to go upon the Property between the Execution Date and the
Closing at Buyer's expense to make such test borings, surveys, percolation tests, and other engineering studies and site analyses as Buyer may require. Buyer shall indemnify Seller against all loss,
damages, and claims that may arise by reason of 

5

 

Buyer's
entry upon the Property pursuant to this Article 8 and shall repair any damage to the Property caused by such entry. 

        9.4    Operations
Prior to Closing.    Seller may not rent any portion of the Property now vacant or which becomes vacant prior to Closing and may not extend or renew
leases. Seller shall not perform any work in or on the Property which might give rise to any mechanics' lien on the Property. 

        9.5    Survey.    Buyer
may, at Buyer's cost, cause a plan of survey of the Real Property acceptable to the Title Insurer to be prepared by a registered surveyor
satisfactory to Buyer. 

        9.6    Environmental
Inspection.    Buyer may, in its discretion, retain one or more environmental consultants of its choosing to inspect the Property, including any
surface waters, wells, and groundwater on or under the Property and conduct such tests and examinations upon the Property as any such consultants deem appropriate. 

10.   Possession  

        Possession of the Property shall be delivered to the Buyer at Closing by delivery of the Deed provided for herein and of all keys to the Property. 

11.   Casualty Loss  

        Following the occurrence of any event prior to the Closing, causing damage to or destruction, of the Property or any portion thereof Seller shall promptly notify
Buyer of such occurrence. 

        11.1    Minor
Casualty Loss.    If there is any casualty loss referred to above in this Section 11, the obligation of each party under this Agreement shall
continue, notwithstanding any such casualty, the rights to all insurance proceeds collectible by reasons of such loss shall at Closing be paid or assigned to the Buyer, as applicable, and the Purchase
Price shall be paid without reduction by reason of such loss. Buyer and Seller shall, under such circumstances, cooperate in Closing of such claims. Closing shall, consistent with the circumstances,
be applied to any reconstruction or be offset against the portion of the Purchase Price to be paid at Closing. 

        11.2    Eminent
Domain.    If at any time after the Execution Date Seller receives any notice of any condemnation proceedings, or other proceedings in the nature of
Eminent Domain, relating to the Property, it will forthwith send a copy of such notice to Buyer. If all or any part of the Property is taken by condemnation or Eminent Domain and the value of the
portion of the Property so taken exceeds Five Thousand Dollars ($5,000.00), Buyer may, upon written notice to Seller, elect to cancel this Agreement, and in such event all monies theretofore paid on
Buyer's account shall be retained by the Seller and neither party shall have any further liability or obligation under this Agreement. If all or any portion of the Property has been or is hereafter
condemned or taken by Eminent Domain and this Agreement is not canceled, Seller shall, at Closing, credit or assign to Buyer all of Seller's right, title, and interest in and to any awards in
condemnation or Eminent Domain, or damages of any kind, to which Seller may have become entitled or may thereafter be entitled by reason of any exercise of the power of condemnation or eminent domain
with respect to or for any other taking of the Property or any portion thereof. 

12.   Default; Remedies  

        12.1    Buyer's
Default.    If Buyer exercises its option to purchase the Property, and fails to close, Seller shall retain the Option Amount and any Extension Fee
paid to Seller as Seller's sole and exclusive remedy hereunder. 

        12.2    Seller's
Default.    If Buyer opts to purchase the Property, and gives the Seller the Notice of Exercise of Option as required hereunder, and Seller fails to
make Closing in accordance with the 

6

 

terms
of this Agreement, and unless the Seller's default relates directly to the provision of this Agreement which sets forth a specific remedy available to the Buyer, the Buyer shall have the option
of either: 

        (i)    Being
reimbursed the Option Amount and any Extension Fee paid, if any, to date as liquidated damages; or 

        (ii)   Pursuing
specific performance by the Seller and/or any other remedy available to the Buyer. 

13.   Survival of Certain Warranties  

        Notwithstanding any legal presumption to the contrary, all covenants, conditions, representations, and warranties contained in this Agreement which by their
nature impliedly or expressly involve performance in any particular after Closing, or which cannot be ascertained to have been performed until after Closing, shall survive Closing. This provisions
shall be effective as to all such covenants, conditions, and representations, notwithstanding that as to some of them it is expressly provided elsewhere in this Agreement that they survive. Any
inspection of the Property, or of Seller's records, by Buyer or its representatives shall not be construed as a waiver of any warranty contained in this Agreement. 

14.   Brokerage  

        Seller and Buyer each hereby warrant and represent to the other that no brokerage commission shall be due and payable pursuant to any agreement by and between
such party and any real estate broker, agent or other professional in connection with the sale contemplated herein, and each party shall hold the other harmless from any claims of any broker, agent or
other professional in relation to any commissions or other fees claimed to be due and payable pursuant to a contract or other arrangement with such party. 

15.   Seller's Warranties and Representations  

        15.1    As
a material inducement to cause Buyer to enter into this Agreement, Seller represents to Buyer that:    

        15.1.1.    Authority.    Seller
has the authority and power to enter into this Agreement and to consummate the transaction provided for by this Agreement. 

        15.1.2.    Title.    The
Seller has good and marketable title to the Property and at Closing such title shall be subject only to exceptions acceptable to the Buyer.
The Property shall, at Closing, include without limitation, all right, title, and interest, if any, of the Seller and any affiliate of the Seller in and to any timber, mineral rights, land lying in
the bed of any street, road, highway, or avenue, open or proposed, in front of or adjoining all or any part of the Real Property and all strips, gores, or right-of-ways,
lakebeds, streams, riparian rights, and easements, in front of or adjoining all or any part of the Real Property. 

        15.1.3.    Compliance
with Law.    All of the Property, and the existing uses of the Property, are in compliance with all applicable laws, ordinances, rules,
regulations, and requirements of all governmental authorities having jurisdiction thereof, including, without limitation thereto, those pertaining to zoning, subdivision, building, housing, safety,
fire and health. 

        15.1.4.    No
Proceedings.    There is no action, suit, proceeding or investigation pending, or to Seller's knowledge threatened, before any agency, court or other
governmental authority which relates to the Seller or the ownership, maintenance, or operation of the Property. 

7

 

        15.1.5.    Condemnation    

        (a)   There
is no condemnation or eminent domain proceeding affecting the Property or any portion thereof currently pending nor, to Seller's knowledge, is any such proceeding
threatened. 

        (b)   There
have been no takings by condemnation or Eminent Domain of any land that was part of a parcel of which the Real Property was a part and for which compensation has
not been paid or for which compensation has been paid within the past three years. 

        15.1.6.    No
Notices of Violations.    Seller has received no notice of any failure of the Seller to comply with any applicable governmental requirements in respect
of the use, occupation and construction of the Property, including but not limited to environmental, zoning, plating and other land use requirements which have not been heretofore corrected to the
satisfaction of the appropriate governmental authority, and Seller has received no notice of and has no knowledge of any violations or investigations relating any such governmental requirement. Seller
has not received advice from any mortgagee or from any insurer of the Property or any part thereof requesting any improvements, alterations, additions, corrections, or other work in, on or about the
Property. Seller will promptly notify the Buyer if Seller receives any such notice. 

        15.1.7.    No
Defaults.    Seller has received no notice of any default or breach by the Seller under any covenants, conditions, restrictions,
rights-of-way, or easements which may effect the Seller in respect to the Property or may effect the Property or any portion thereof, and no such default or breach now exists. 

        15.1.8.    Special
Assessment.    No special or general assessments have been levied, or to Seller's knowledge are any such assessments threatened against all or any
part of the Property. 

        15.1.9.    Information
Correct.    The lists, documentation, plans, and other documentation to be delivered by Seller hereunder are complete and correct. No material
changes have occurred in the condition of the Seller or of the Property not reflected in said documentation, financial statements, plans, specifications, or surveys. 

        15.1.10.    No
Encroachments.    No building or other improvement encroaches on the Real Property, nor does any building or improvement which is part of the Property
encroach on lands of others or on any public or private road or right-of-way. 

        15.1.11.    No
Leases.    There are no leases affecting all or any part of the Property and there are no written or oral promises, understandings, agreements or
commitments between Seller (or any predecessor of Seller) and any tenant which have not been disclosed by Seller in writing and which will not be terminated in writing prior to the Closing Date.
Seller shall be responsible for the expenses and any liability incurred with the termination of any lease relating to the Property, or any portion thereof. 

        15.1.12.    Public
Improvements    

        (a)   There
are no notices outstanding calling attention to the need for any unperformed curbing, recurbing, paving, repaving, or other construction, improvements, or work on
or about the Real Property or any streets or roads abutting the Real Property, or the removal of any nuisance from the Real Property or any of the foregoing. 

        (b)   All
street paving, curbing, sewer installation, or other public improvements which have been constructed or installed adjacent to the Real Property or which have been
ordered to be constructed or installed and for the cost of which the Real Property is assessable have been paid for and will not be assessed and all assessments made have been paid in full. 

8

 

        15.1.13.    Permits,
Licenses, and Consents.    To Seller's knowledge, there are no permits, licenses, or consents required by any governmental authority in
connection with the use and occupancy of the Property. 

        15.1.14.    Valuation.    Seller
has received no notice of any proposed increase in the assessed valuation of the Property or any portion thereof. 

        15.1.15.    Representations
To Be Correct at Closing.    All of the representations, warranties, and covenants of the Seller contained in this Agreement shall be true
and correct as of the date of this Agreement and as of the Closing and shall survive the Closing. 

        15.1.16.    Existence
of Public Utilities.    All public utilities required for the operation of the Real Property either enter the Real Property through adjoining
public streets, or if they pass through adjoining private land do so in accordance with valid public easements or private easements which will inure to the benefit of Buyer at Closing. 

        15.1.17.    No
Litigation.    There is no litigation or proceeding pending (or to Seller's knowledge threatened) against or relating to the Property, nor does Seller
know or have reasonable grounds to know of any basis for any such action other than possible claims adequately covered by insurance. 

        15.1.18.    Environmental
Notices    

        (a)   Neither
Seller nor any agent of Seller has received from any governmental authority, holder of any mortgage, or board of underwriters (or other body performing similar
functions) any notices requiring or calling attention to the need for any work, repairs, construction, alterations, or installations on or in connection with the Property, or asserting any violation
of any applicable law, regulation, or other governmental requirement. If such notices are served or received prior to Closing, Seller will effect full compliance therewith prior to Closing or as soon
thereafter as may be practicable. 

        (b)   Seller
will prior to Closing comply, at its own expense, with all environmental, hazardous waste cleanup, and similar laws and will deliver to Buyer any certificate
required thereunder. 

        15.1.19.    Third
Party Contracts    

        (a)   Attached
hereto as Schedule A is a true, correct, and complete schedule of all service and other contracts which affect the Property, identifying the contractor
or other party thereto, his duties, the term of the contract, the rate of compensation payable, and the length of notice required to cancel such contract. 

        (b)   Upon
written request by Buyer prior to Closing, Seller shall give written notice to such parties as Buyer may designate canceling any such contract as of the date of
Closing. Seller shall be responsible for all expenses or liabilities incurred relating to the cancellation of such contracts. 

        (c)   Seller
shall enter into no new contracts relating to the Property nor extend the term of any existing contract relating to the Property. 

        15.1.20.    Seller
Not a Foreign Person.    Seller is not a foreign person as defined in Section 1445(f)(3) of the Internal Revenue Code of 1986, as amended.
Seller will deliver to Buyer at Closing a Certificate of Nonforeign Status, certifying the correctness of this Section 15.1.20. 

        15.1.21.    No
Modification.    No examination or investigation of the Property, or the operation thereof, by or on behalf of the Buyer prior to the Closing shall in
any way modify, affect, or 

9

 

diminish
Seller's obligations under the representations, warranties, covenants, and agreements contained in this Agreement. 

16.   Binding Effect  

        This Agreement will inure to the benefit of an bind the respective successors and permitted assigns of the parties hereto. 

17.   Expiration  

        This Agreement has been executed by the parties on the dates set forth below their respective signatures. It is understood that the obligation of the Buyer under
this Agreement will terminate on the date three (3) days after the date of the Buyer's execution of this Agreement unless the Seller shall have duly executed and returned a copy of this
Agreement to the Buyer prior to such date. 

18.   Assignment  

        The rights of the Buyer under this Agreement may be assigned, and once so assigned, the assignee shall be solely responsible for the obligations of Buyer
hereunder. 

19.   Reference to Schedules and Exhibits  

        All schedules and exhibits referred to in this Agreement are attached to this Agreement and hereby incorporated into this Agreement by reference and made a part
of this Agreement. 

20.   Notices  

        20.1    All
notices or other communications provided for by this Agreement shall unless otherwise specifically provided to the contrary be in writing and delivered personally
or sent postage paid by certified or registered mail, return receipt requested, to the other party as follows:    

	(i)
	To
Seller: 

Daniel
E. Youngblood

1909 East Main Street

Easley, South Carolina 29640 

	(ii)
	To
Buyer: 

CommunitySouth
Bancshares, Inc.

P. O. Box 2849

Easley, South Carolina 29641 

Attention:
C. Allan Ducker, III

Facsimile No.: (864) 304-6448 

        20.2    Whenever
a period of time is to be computed from the date of notice, such period shall be computed from the date of receipt of the item of personal delivery or of
certified or registered mail except that, in the absence of a return mail receipt, there shall be a rebuttable presumption of delivery 10 days after the date of mailing.    

        20.3    Either
party may change the address to which notice is to be given, provided that notice of such change is given by personal delivery or by registered or certified mail
to the other party in the manner provided for by this Section 20.    

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21.   Time Is of the Essence  

        Time is of the essence of each and every provision of this Agreement. 

22.   Indemnification  

        22.1    Whenever
provision is made in this Agreement for one party to hold the other party harmless from any claim of a described nature, such provision shall be interpreted to
mean that the party (in this Section "Indemnitor") holding the other party harmless shall indemnify and hold harmless the other party (in this Section "the Other") from and against any and all claims,
suits, actions, damage, or liability, including reasonable attorneys' fees, which the Other may incur or to which it may become subject as a result of or in connection with, and to the extent caused
by, the acts, omissions, or matters so referred to.    

        22.2    If
any claim is made against either party to this Agreement which, if valid, would give rise to a claim for indemnification under any provision of this Agreement, the
party against which the claim has been made (the "Other") shall promptly give the other party (the "Indemnitor") written notice of the assertion of the claim and the Indemnitor may at its option
employ counsel reasonably satisfactory to the Other to defend against the claim at the cost and expense of the Indemnitor but in the name of the Other and the Other will at all times fully cooperate
to assist such defense. If the Indemnitor does not elect to defend such claim the Other (upon being requested by the Indemnitor to do so) shall nevertheless keep the Indemnitor regularly advised of
the progress of the proceedings from time to time upon being reasonably requested by the Indemnitor to do so.    

23.   Representations also Warranties  

        All representations contained in this Agreement shall also constitute warranties. And all references in this Agreement to "warranties" shall be deemed also to
refer to all representations. 

24.   Waiver of Tender  

        Formal tender of a deed and purchase money is hereby waived. 

25.   Captions  

        The captions contained in this Agreement are not a part of this Agreement. They are only for the convenience of the parties and do not in any way modify or
amplify this Agreement. They do not give full notice of any of the terms, covenants, or conditions by any portion of this Agreement and are not relevant to the interpretation of any provision of this
Agreement. 

26.   Number and Gender  

        For purpose of this Agreement, the masculine shall be deemed to include the feminine and the neuter, and the singular shall be deemed to include the plural, and
the plural the singular, as the context may require. 

27.   No Recording  

        Neither this Agreement nor any document referring to this Agreement shall be recorded in any public office. 

28.   Ground Lease  

        Notwithstanding anything contained herein to the contrary, the Buyer shall have no obligation to purchase the Property if the Buyer and the Seller do not also
simultaneously enter into a lease of the 

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real
estate also owned by the Seller consisting of approximately 1.1 acres located immediately adjacent to the Property (the "Leased Property"). If the Buyer shall proceed to Closing, and the Seller
shall not lease the Leased Property on a month-to-month basis at a monthly rental of $3,443.00, the other terms of such lease to be as reasonably approved by the Buyer, then
the Buyer may terminate this Agreement with no liability hereunder, and the Seller shall immediately reimburse the Buyer the Option Amount and any Extension Fee paid. 

29.   Entire Agreement  

        Seller intends, prior to the closing, to arrange a like-kind exchange for the disposition of the Property, within the meaning of Section 1031
of the Internal Revenue Code of 1986 (as amended). Buyer agrees to fully cooperate with Seller (including cooperation with any Intermediary selected by Seller) to structure the acquisition of the
Property as a like-kind exchange, and upon request, Buyer agrees to execute additional documents, agreements, or instruments to effect the exchange; provided, however, that Buyer shall
incur no additional costs or expenses in this transaction. 

30.   Entire Agreement  

        This Agreement constitutes the entire agreement between the Buyer and the Seller and there are no agreements, understandings, warranties, or representations
between the Buyer and Seller except as set forth in this Agreement. This Agreement cannot be amended except in writing executed by the Buyer and the Seller. 

        IN
WITNESS WHEREOF, Seller and Buyer have executed this Agreement under seal on the date first above written. 

	 	 	BUYER:
	

 	
 	

 	

 
	 	 	COMMUNITYSOUTH BANCSHARES, INC. (SEAL)
	

 	
 	

 	

 
	/s/  MARIE CUNNINGHAM      
	 	By:	/s/  C. ALLAN DUCKER, III      

	 	 	Its:	Chief Executive Officer

	/s/  KRISTINA BLALOCK      
	 	 	 
	

 	
 	

 	

 
	 	 	SELLER:
	

 	
 	

 	

 
	/s/  MARIE CUNNINGHAM      
	 	/s/  DANIEL E. YOUNGBLOOD (SEAL)      
 Daniel E. Youngblood
	/s/  KRISTINA BLALOCK      
	 	 	 
	 	 	 	 

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SCHEDULE A

Third Party Contracts  

13

QuickLinks

Exhibit 10.10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]