FIRST FRANKLIN FINANCIAL CORP
SEC FORM 8-K EXHIBIT 10
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<TYPE>EX-10
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<FILENAME>exhibit10extensionletter.htm
<DESCRIPTION>SEC FORM 8-K EXHIBIT 10
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<TITLE>September 18, 2006</TITLE>
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<META NAME="date" CONTENT="09/19/2006">
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<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial" align=right><FONT FACE="Arial">Exhibit 10.1</FONT></P>
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<TR><TD valign=top width=638.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial" align=center>WACHOVIA BANK</P>
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<TR><TD valign=top width=638.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial">September 18, 2006</P>
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<TR><TD valign=top width=638.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial">Mr. A. Roger Guimond</P>
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<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial">Chief Financial Officer</P>
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<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial">1<SUP>st</SUP> Franklin Financial Corporation</P>
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<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial">213 East Tugalo St.</P>
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<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial">Toccoa, GA &nbsp;30677</P>
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<TR><TD valign=top width=638.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=638.4><P style="margin-top:0pt; margin-bottom:-12pt; font-family:Arial">RE: </P>
<P style="margin:0pt; text-indent:36pt; font-family:Arial">Amended and Restated Line of Credit Promissory Note between 1<SUP>st</SUP> Franklin Financial Corporation (&#147;<B>Borrower</B>&#148;) and Wachovia Bank, National Association, successor by merger of SouthTrust Bank (&#147;<B>Wachovia&#148;</B>) in the principal amount of $30,000,000 dated September 24, 2004, including any amendments to date (the &#147;<B>Note</B>&#148;).</P>
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<TR><TD valign=top width=638.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial">Loan Agreement between Borrower and Wachovia dated September 25, 2001, including any amendments to date (the &#147;<B>Loan Agreement</B>&#148;).</P>
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<TR><TD valign=top width=638.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial">Obligor # 3031003436, Obligation # 1732353</P>
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<TR><TD valign=top width=638.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial">Dear Roger:</P>
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<TR><TD valign=top width=638.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial">Wachovia has agreed to extend the term of the Note, which will mature on September 25, 2006. &nbsp;Accordingly, this letter shall constitute Wachovia&#146;s agreement and formal notice to you, as follows:</P>
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<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial"><B>Extension.</B> &nbsp;Wachovia hereby extends, on the same terms and conditions as presently in effect, the maturity date of the Note, and the Commitment Period of the Loan Agreement, to November 25, 2006, at which time the outstanding principal balance, accrued interest and all other amounts due under the Note and Loan Agreement shall become due and payable. &nbsp;All periodic payments required under the Note and Loan Agreement shall continue to be made during this extension period.</P>
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<TR><TD valign=top width=638.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial"><B>No Other Changes</B>. &nbsp;Extension of the maturity date and Commitment Period as stated herein is the only change to the Note and Loan Agreement. &nbsp;Except as extended by this letter, the Note and Loan Agreement shall continue in full force and effect. &nbsp;Should you have any questions, do not hesitate to call.</P>
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<TR><TD valign=top width=638.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=638.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial">Very truly yours,</P>
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<TR><TD valign=top width=638.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial">Wachovia Bank, National Association</P>
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<TR><TD valign=top width=638.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial">By: <U>/s/ Kristen S. Lambert</U></P>
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<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial">Kristen S. Lambert</P>
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<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial">Vice President</P>
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<TR><TD valign=top width=638.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial">Accepted and agreed to on behalf of Borrower as of this 18<SUP>th</SUP> day of September, 2006.</P>
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<TR><TD valign=top width=638.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial">By: <U>/s/ A. Roger Guimond</U></P>
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<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial">A. Roger Guimond</P>
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<TR><TD valign=top width=638.4><P style="margin:0pt; font-family:Arial">Executive Vice President and Chief Financial Officer</P>
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