Extension Revolving Note Agreement between Community Shores Bank Corporation and LaSalle Bank National Association (August 1, 2006)

Summary

Community Shores Bank Corporation has issued a $5,000,000 Extension Revolving Note to LaSalle Bank National Association. Under this agreement, the bank may advance funds up to $5,000,000 to Community Shores, with all outstanding principal and interest due by August 1, 2007. The note is governed by the terms of a prior Revolving Loan Agreement and may be prepaid as specified. This note replaces a previous note but does not constitute a new loan. The agreement outlines payment, interest, and enforcement terms.

EX-10.1 2 k08385exv10w1.txt EXTENSION REVOLVING LOAN AGREEMENT Exhibit 10.1 EXTENSION REVOLVING NOTE $5,000,000 Dated as of August 1, 2006 Due: August 1, 2007 FOR VALUE RECEIVED, COMMUNITY SHORES BANK CORPORATION, a Michigan corporation (the "Maker"), promises to pay to the order of LASALLE BANK NATIONAL ASSOCIATION (the "Bank") the lesser of the principal sum of Five Million Dollars ($5,000,000) or the aggregate unpaid principal amount outstanding under the Agreement (as hereinafter defined) made available by the Bank to the Maker at the maturity or maturities and in the amount or amounts as stated on the records of the Bank together with interest (computed on actual days elapsed on the basis of a 360 day year) on any and all principal amounts outstanding hereunder from time to time from the date hereof until maturity. Interest shall be payable at the rate of interest and the times set forth in the Revolving Loan Agreement dated as of July 23, 2004 between Maker and the Bank, as amended from time to time (the "Agreement"). In no event shall any principal amount have a maturity later than August 1, 2007. This Extension Revolving Note ("Note") shall be available for direct advances. Principal and interest shall be paid to the Bank at its office at 135 South LaSalle Street, Chicago, Illinois 60603, or at such other place as the holder of this Note may designate in writing to the undersigned. This Note may be prepaid in whole or in part as provided for in the Loan Agreement. This Note evidences indebtedness incurred under the Agreement to which reference is hereby made for a statement of the terms and conditions under which the due date of the Note or any payment thereon may be accelerated. The holder of this Note is entitled to all of the benefits and security provided for in the Agreement. The undersigned agrees that in any action or proceeding instituted to collect or enforce collection of this Note, the amount endorsed by the Bank on the reverse side of this Note shall be prima facie evidence of the unpaid principal balance of this Note. This Note is in substitution and replacement for, but not a repayment of, that certain $5,000,000 Replacement Revolving Note dated as of August 1, 2005 of the Maker payable to the order of the Bank, and does not and shall not be deemed to constitute a novation therefor. IN WITNESS WHEREOF, the Maker has executed this Extension Revolving Note as of the date set forth above. COMMUNITY SHORES BANK CORPORATION, a Michigan corporation By: /s/ Heather D. Brolick ------------------------------------ Its: Chief Executive Officer