First Bank terminated the agreement under section 10.1(c) of the agreement, which permitted either Waccamaw Bank or First Bank to terminate the agreement in the event that the closing of the branch purchase and assumption transaction had not occurred by June 30, 2012. Each party is responsible for paying its own costs and expenses incurred in connection with the proposed transaction.

        The Company was formerly the bank holding company for Waccamaw Bank.   On June 8, 2012, Waccamaw Bank was closed by the North Carolina Office of the Commissioner of Banks and the Federal Deposit Insurance Corporation (the "FDIC") was named receiver. As a result of the closure, the Company lost all rights with respect to the issued and outstanding shares of Waccamaw Bank's common stock and preferred stock. The FDIC entered into a purchase and assumption agreement with First Community Bank, Bluefield, Virginia, whereby First Community Bank assumed all deposit liabilities and substantially all of the assets of Waccamaw Bank. Each of Waccamaw Bank's sixteen branches re-opened as branches of First Community Bank on June 11, 2012.