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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>UNITED STATES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SECURITIES AND EXCHANGE COMMISSION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Washington, D.C. </font></b><font size=2>&nbsp;</font><b><font size=2>20549</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>___________</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>FORM 8-K</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CURRENT REPORT</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Date of Report (Date of earliest event reported): </font><b><font size=2>March 11, 2009</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>___________</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>FIRST NATIONAL CORPORATION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Exact name of registrant as specified in its charter)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1in;text-align:center;'><font size=2>&nbsp;</font></p>


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            <p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center; line-height:14.0pt'><b><font size=2>Virginia</font></b></p>
<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center; line-height:13.0pt'><font size=2>(State or other jurisdiction</font></p>
<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center; line-height:13.0pt'><font size=2>of incorporation)</font></p> </td>
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            <p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center; line-height:14.0pt'><b><font size=2>0-23976</font></b></p>
<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center; line-height:13.0pt'><font size=2>(Commission File Number)</font></p> </td>
        <TD VALIGN="top" STYLE="padding:.75pt .75pt .75pt .75pt">
            <p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center; line-height:14.0pt'><b><font size=2>54-1232965</font></b></p>
<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center; line-height:13.0pt'><font size=2>(IRS Employer</font></p>
<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center; line-height:13.0pt'><font size=2>Identification No.)</font></p> </td> </tr>
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            <p style='margin:0in;margin-bottom:.0001pt'><font size=2>&nbsp;</font></p> </td>
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            <p style='margin:0in;margin-bottom:.0001pt'><font size=2>&nbsp;</font></p> </td>
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            <p style='margin:0in;margin-bottom:.0001pt'><font size=2>&nbsp;</font></p> </td> </tr>
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            <p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center; line-height:14.0pt'><b><font size=2>112 West King Street</font></b></p>
<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center; line-height:14.0pt'><b><font size=2>Strasburg, Virginia</font></b></p>
<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center; line-height:13.0pt'><font size=2>(Address of principal executive offices)</font></p> </td>
        <td  colspan="2" valign=top style='padding:.75pt .75pt .75pt .75pt'>
            <p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center'><font size=1>&nbsp;</font></p>
<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center; line-height:14.0pt'><b><font size=2>22657</font></b></p>
<p align=center style='margin:0in;margin-bottom:.0001pt;text-align:center; line-height:13.0pt'><font size=2>(Zip Code)</font></p> </td> </tr>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Registrant&#146;s telephone number, including area code: </font><b><font size=2>(540) 465-9121</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Not Applicable</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Former name or former address, if changed since last report)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:125.28%'><font face=Wingdings>o</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:125.28%'><font size=2>&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:125.28%'><font face=Wingdings>o</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:125.28%'><font size=2>&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font face=Wingdings>o</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font face=Wingdings>o</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 1.01</font></b></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Entry into a Material Definitive Agreement</font></b><font size=2> </font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>On March 13, 2009, as part of the Capital Purchase Program established by the U.S. Department of the Treasury (the &#147;Treasury&#148;) under the Emergency Economic Stabilization Act of 2008 (&#147;EESA&#148;), First National Corporation (the &#147;Company&#148;) entered into a Letter Agreement and Securities Purchase Agreement&#151;Standard Terms (collectively, the &#147;Purchase Agreement&#148;) with the Treasury, pursuant to which the Company sold (i) 13,900 shares of the Company&#146;s Fixed Rate Cumulative Perpetual Preferred Stock, Series A, par value $1.25 per share, having a liquidation preference of $1,000 per share (the &#147;Preferred Stock&#148;) and (ii) a warrant (the &#147;Warrant&#148;) to purchase 695.86984 shares of the Company&#146;s Fixed Rate Cumulative Perpetual Preferred Stock, Series B (the &#147;Warrant Preferred Stock&#148;) at an exercise price of $1.25 per share, for an
aggregate purchase price of $13,900,000 in cash.  The Treasury immediately exercised the Warrant and, after net settlement, received 695 shares of the Company&#146;s Warrant Preferred Stock, which has a liquidation preference amount of $1,000 per share.  The Purchase Agreement is attached as Exhibit 10.1 hereto and is incorporated herein by reference.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The Preferred Stock will qualify as Tier 1 capital and will pay cumulative dividends at a rate of 5%&nbsp;per annum for the first five years, and thereafter at a rate of 9%&nbsp;per annum. The Warrant Preferred Stock entitles its holder(s) to cumulative dividends at a rate of 9% per annum from the date of issuance.  The Preferred Stock and the Warrant Preferred Stock are generally non-voting, other than on certain matters that could adversely affect the Preferred Stock or the Warrant Preferred Stock. If the dividends on the Preferred Stock or Warrant Preferred Stock have not been paid for an aggregate of six (6) quarterly dividend periods or more, whether or not consecutive, the Company's authorized number of directors will be automatically increased by two (2) and the holders of the Preferred Stock and Warrant Preferred Stock will have the right to elect those directors at the Company's next annual meeting
or at a special meeting called for that purpose; these two directors will be elected annually and will serve until all accrued and unpaid dividends for all past dividend periods have been declared and paid in full. Prior to March 13, 2012, unless the Company has redeemed the Preferred Stock and Warrant Preferred Stock or the Treasury has transferred the Preferred Stock and Warrant Preferred Stock to a third party, the consent of the Treasury will be required for the Company to increase its common stock dividend or repurchase its common stock or other equity or capital securities, other than in certain circumstances specified in the Purchase Agreement. The form of certificate for the Preferred Stock is attached as Exhibit 4.1 hereto and is incorporated herein by reference.  The form of certificate for the Warrant Preferred Stock is attached as Exhibit 4.3 hereto and is incorporate herein by reference.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>On March 13, 2009, the Company also entered into a side letter agreement with the Treasury that amends certain provisions of the Purchase Agreement and is attached to this report as Exhibit 10.2 and incorporated herein by reference.  This letter agreement confirms that, under the terms of the American Recovery and Reinvestment Act of 2009, the Preferred Stock may be redeemed at any time by the Company, using any source of funds, subject to the U.S. Treasury&#146;s consultation with the Company&#146;s federal regulator.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 3.02</font></b></p> </td>
        <td  valign=top style=' height:10.3pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Unregistered Sale of Equity Securities</font></b></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The Preferred Stock, Warrant and the Warrant Preferred Stock were issued to the Treasury in a private placement exempt from registration pursuant to Section 4(2) of the Securities Act. The Company has not engaged in general solicitation or advertising with regard to the issuance and sale of the Securities and has not offered securities to the public in connection with this issuance and sale. The information set forth under &#147;Item 1.01. Entry into a Material Definitive Agreement&#148; is incorporated herein by reference.</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 3.03</font></b></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Material Modification to Rights of Security Holders</font></b></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The information set forth under &#147;Item 1.01. Entry into a Material Definitive Agreement&#148; and &#147;Item 5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year&#148; is incorporated herein by reference.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Under the Articles of Amendment described in &#147;Item 5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year,&#148; the Company&#146;s ability to declare or pay dividends or to repurchase its Common Stock or other equity or capital securities will be subject to restrictions in the event that it fails to declare and pay (or set aside for payment) full dividends on the Preferred Stock or Warrant Preferred Stock.</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 5.02</font></b></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers</font></b></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>(e)&nbsp;&nbsp;&nbsp;&nbsp;As a condition to the closing of the transaction, each of Messrs. Harry S. Smith, M. Shane Bell, Dennis A. Dysart, J. Andrew Hershey and Marshall J. Beverly, Jr., the Company&#146;s Senior Executive Officers (as defined in subsection 111 of the EESA), executed a waiver (the &#147;Waiver&#148;) voluntarily waiving any claim against the Treasury or the Company for any </font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>changes to such Senior Executive Officer&#146;s compensation or benefits that are required to comply with the regulation issued by the Treasury under the Program as published in the Federal Register on October 20, 2008 and acknowledging that the regulation may require modification of the compensation, bonus, incentive and other benefit plans, arrangements and policies and agreements (including so-called &#147;golden parachute&#148; agreements) (collectively, &#147;Benefit Plans&#148;) as they relate to the period the Treasury holds any equity or debt securities of the Company acquired through the Program. Each of the Senior Executive Officers also entered into a letter agreement with the Company (the &#147;Consent Letter&#148;) whereby each Senior Executive Officer agreed to amend the Benefit Plans with respect to such Senior Executive Officer as may be necessary, during the period that the Treasury owns
any debt or equity securities of the Company acquired pursuant to the Purchase Agreement, to comply with Section 111 of the EESA. The form of Waiver is attached as Exhibit 10.3 hereto and is incorporated herein by reference. The form of Consent Letter is attached as Exhibit 10.4 hereto and is incorporated herein by reference.</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 5.03</font></b></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Amendment to Articles of Incorporation or Bylaws; Change in Fiscal Year</font></b></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Subsequent to amending and restating its Articles of Incorporation to authorize the issuance of preferred stock, the Company filed Articles of Amendment with the Commonwealth of Virginia State Corporation Commission on March 11, 2009 for the purpose of amending its Articles of Incorporation to fix the designations, preferences, limitations and relative rights of the Preferred Stock. The Articles of Amendment are attached hereto as Exhibit 3.1 and are incorporated herein by reference.</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 8.01</font></b></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Other Events</font></b></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>On March 13, 2009, the Registrant issued a press release reporting it has completed the issuance and sale of $13.9 million in Fixed Rate Cumulative Perpetual Preferred Stock to the U.S. Treasury Department as part of its Capital Purchase Program.  A copy of the press release is being furnished as an exhibit to this report and is incorporated by reference into this Item 8.01.</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 9.01</font></b></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Financial Statements and Exhibits</font></b><font size=2>.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Exhibits</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.55in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Exhibit No.</font></u><u></u></p> </td>
        <TD WIDTH="10" VALIGN="TOP" STYLE=" height:16.4pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="480" VALIGN="TOP" STYLE=" height:16.4pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Description</font></u><u></u></p> </td> </tr>
    <tr style='height:14.65pt'>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="10" valign=top style=' height:14.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE=" height:14.65pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>3.1</font></p> </td>
        <td width="10" valign=top style=' height:26.7pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE=" height:26.7pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Articles of Amendment to the Company&#146;s Articles of Incorporation, designating the terms of the Fixed Rate Cumulative Perpetual Preferred Stock, Series A and the Fixed Rate Cumulative Perpetual Preferred Stock, Series B</font></p> </td> </tr>
    <tr style='height:14.65pt'>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="10" valign=top style=' height:14.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE=" height:14.65pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='height:16.4pt'>
        <td width="73" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>4.1</font></p> </td>
        <td width="10" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE=" height:16.4pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Form of Certificate for Fixed Rate Cumulative Perpetual Preferred Stock, Series A</font></p> </td> </tr>
    <tr style='height:16.4pt'>
        <td width="73" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE=" height:16.4pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:16.4pt'>
        <td width="73" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>4.2</font></p> </td>
        <td width="10" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE=" height:16.4pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Warrant to Purchase Shares of Preferred Stock, dated as of March 13, 2009</font></p> </td> </tr>
    <tr style='height:16.4pt'>
        <td width="73" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE=" height:16.4pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:16.4pt'>
        <td width="73" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>4.3</font></p> </td>
        <td width="10" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE=" height:16.4pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Form of Certificate for Fixed Rate Cumulative Perpetual Preferred Stock, Series B</font></p> </td> </tr>
    <tr style='height:14.65pt'>
        <td width="73" valign=top style=' height:14.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="10" valign=top style=' height:14.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE=" height:14.65pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='height:26.7pt'>
        <td width="73" valign=top style=' height:26.7pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>10.1</font></p> </td>
        <td width="10" valign=top style=' height:26.7pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE=" height:26.7pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Letter Agreement, dated as of March 13, 2009, by and between First National Corporation and the United States Department of the Treasury</font></p> </td> </tr>
    <tr style='height:14.65pt'>
        <td width="73" valign=top style=' height:14.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="10" valign=top style=' height:14.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE=" height:14.65pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='height:30.6pt'>
        <td width="73" valign=top style=' height:30.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>10.2</font></p> </td>
        <td width="10" valign=top style=' height:30.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE=" height:30.6pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Side Letter Agreement, dated as of March 13, 2009, by and between First National Corporation and the United States Department of the Treasury</font></p> </td> </tr>
    <tr style='height:14.65pt'>
        <td width="73" valign=top style=' height:14.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=top style=' height:14.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>10.3</font></p> </td>
        <td width="10" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Form of Waiver</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="10" valign=top style=' height:14.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>10.4</font></p> </td>
        <td width="10" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Form of Consent Letter</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE=" height:16.4pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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        <td width="73" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>99.1</font></p> </td>
        <td width="10" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Press Release dated March 13, 2009</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SIGNATURES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:3in;text-align:left;'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>


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            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="97" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><B><font SIZE=2>FIRST NATIONAL CORPORATION </font></B></p> </td> </tr>
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            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=2>(Registrant)</font></p> </td> </tr>
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            <p style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="97" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt">
            <p style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:0in;margin-left: 0in;line-height:16.0pt'><font size=2>Date: &nbsp;March 17, 2009</font></p> </td>
        <td width="97" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:0in;margin-left: 0in;line-height:16.0pt'><font size=1>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:0in;margin-left: 0in;line-height:16.0pt'><font size=2>By:</font></p> </td>
        <TD VALIGN="TOP" STYLE="border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt">
            <p style='margin:0in;margin-bottom:.0001pt;line-height:16.0pt'><font size=2>/s/ M. Shane Bell</font></p> </td> </tr>
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            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="97" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=1>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=1>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt">
            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=2>M. Shane Bell</font></p> </td> </tr>
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            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="97" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=1>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=1>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt">
            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=2>Executive Vice President </font></p> </td> </tr>
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            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="97" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=1>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=1>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt">
            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=2>and Chief Financial Officer</font></p> </td> </tr>
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            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="97" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=1>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt;">
            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=1>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE="padding:0in 5.4pt 0in 5.4pt">
            <p style='margin:0in;margin-bottom:.0001pt;line-height:14.0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<B><font SIZE=2>EXHIBIT INDEX</font></B></p>

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    <tr style='height:16.4pt'>
        <TD WIDTH="75" VALIGN="TOP" STYLE=" height:16.4pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Exhibit No.</font></u><u></u></p> </td>
        <TD WIDTH="10" VALIGN="TOP" STYLE=" height:16.4pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="512" VALIGN="TOP" STYLE=" height:16.4pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Description</font></u><u></u></p> </td> </tr>
    <tr style='height:14.65pt'>
        <td width="75" valign=top style=' height:14.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="10" valign=top style=' height:14.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE=" height:14.65pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='height:26.7pt'>
        <td width="75" valign=top style=' height:26.7pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>3.1</font></p> </td>
        <td width="10" valign=top style=' height:26.7pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE=" height:26.7pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Articles of Amendment to the Company&#146;s Articles of Incorporation, designating the terms of the Fixed Rate Cumulative Perpetual Preferred Stock, Series A and the Fixed Rate Cumulative Perpetual Preferred Stock, Series B</font></p> </td> </tr>
    <tr style='height:14.65pt'>
        <td width="75" valign=top style=' height:14.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="10" valign=top style=' height:14.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE=" height:14.65pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='height:16.4pt'>
        <td width="75" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>4.1</font></p> </td>
        <td width="10" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Form of Certificate for Fixed Rate Cumulative Perpetual Preferred Stock, Series A</font></p> </td> </tr>
    <tr style='height:16.4pt'>
        <td width="75" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:16.4pt'>
        <td width="75" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>4.2</font></p> </td>
        <td width="10" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Warrant to Purchase Shares of Preferred Stock, dated as of March 13, 2009</font></p> </td> </tr>
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        <td width="75" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:16.4pt'>
        <td width="75" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>4.3</font></p> </td>
        <td width="10" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE=" height:16.4pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Form of Certificate for Fixed Rate Cumulative Perpetual Preferred Stock, Series B</font></p> </td> </tr>
    <tr style='height:14.65pt'>
        <td width="75" valign=top style=' height:14.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="10" valign=top style=' height:14.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>10.1</font></p> </td>
        <td width="10" valign=top style=' height:26.7pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Letter Agreement, dated as of March 13, 2009, by and between First National Corporation and the United States Department of the Treasury</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
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        <td width="75" valign=top style=' height:30.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>10.2</font></p> </td>
        <td width="10" valign=top style=' height:30.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Side Letter Agreement, dated as of March 13, 2009, by and between First National Corporation and the United States Department of the Treasury</font></p> </td> </tr>
    <tr style='height:14.65pt'>
        <td width="75" valign=top style=' height:14.65pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>10.3</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Form of Waiver</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>10.4</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE=" height:16.4pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Form of Consent Letter</font></p> </td> </tr>
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        <td width="75" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:16.4pt'>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>99.1</font></p> </td>
        <td width="10" valign=top style=' height:16.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE=" height:16.4pt">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Press Release dated March 13, 2009</font></p> </td> </tr></table>
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{"company-data": {"conformed-name": "FIRST NATIONAL CORP /VA/", "cik": "0000719402", "assigned-sic": "6022", "irs-number": "541232965", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-23976", "film-number": "09688553"}, "business-address": {"street1": "112 WEST KING STREET", "city": "STRASBURG", "state": "VA", "zip": "22657", "phone": "5404659121"}, "mail-address": {"street1": "112 WEST KING STREET", "city": "STRASBURG", "state": "VA", "zip": "22657"}}
Form 8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
20549
___________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
March 11, 2009
___________
FIRST NATIONAL CORPORATION
(Exact name of registrant as specified in its charter)
Virginia
(State or other jurisdiction
of incorporation)
0-23976
(Commission File Number)
54-1232965
(IRS Employer
Identification No.)
112 West King Street
Strasburg, Virginia
(Address of principal executive offices)
22657
(Zip Code)
Registrant's telephone number, including area code:
(540) 465-9121
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01
Entry into a Material Definitive Agreement
On March 13, 2009, as part of the Capital Purchase Program established by the U.S. Department of the Treasury (the "Treasury") under the Emergency Economic Stabilization Act of 2008 ("EESA"), First National Corporation (the "Company") entered into a Letter Agreement and Securities Purchase Agreement—Standard Terms (collectively, the "Purchase Agreement") with the Treasury, pursuant to which the Company sold (i) 13,900 shares of the Company's Fixed Rate Cumulative Perpetual Preferred Stock, Series A, par value $1.25 per share, having a liquidation preference of $1,000 per share (the "Preferred Stock") and (ii) a warrant (the "Warrant") to purchase 695.86984 shares of the Company's Fixed Rate Cumulative Perpetual Preferred Stock, Series B (the "Warrant Preferred Stock") at an exercise price of $1.25 per share, for an
aggregate purchase price of $13,900,000 in cash.  The Treasury immediately exercised the Warrant and, after net settlement, received 695 shares of the Company's Warrant Preferred Stock, which has a liquidation preference amount of $1,000 per share.  The Purchase Agreement is attached as Exhibit 10.1 hereto and is incorporated herein by reference.
The Preferred Stock will qualify as Tier 1 capital and will pay cumulative dividends at a rate of 5% per annum for the first five years, and thereafter at a rate of 9% per annum. The Warrant Preferred Stock entitles its holder(s) to cumulative dividends at a rate of 9% per annum from the date of issuance.  The Preferred Stock and the Warrant Preferred Stock are generally non-voting, other than on certain matters that could adversely affect the Preferred Stock or the Warrant Preferred Stock. If the dividends on the Preferred Stock or Warrant Preferred Stock have not been paid for an aggregate of six (6) quarterly dividend periods or more, whether or not consecutive, the Company's authorized number of directors will be automatically increased by two (2) and the holders of the Preferred Stock and Warrant Preferred Stock will have the right to elect those directors at the Company's next annual meeting
or at a special meeting called for that purpose; these two directors will be elected annually and will serve until all accrued and unpaid dividends for all past dividend periods have been declared and paid in full. Prior to March 13, 2012, unless the Company has redeemed the Preferred Stock and Warrant Preferred Stock or the Treasury has transferred the Preferred Stock and Warrant Preferred Stock to a third party, the consent of the Treasury will be required for the Company to increase its common stock dividend or repurchase its common stock or other equity or capital securities, other than in certain circumstances specified in the Purchase Agreement. The form of certificate for the Preferred Stock is attached as Exhibit 4.1 hereto and is incorporated herein by reference.  The form of certificate for the Warrant Preferred Stock is attached as Exhibit 4.3 hereto and is incorporate herein by reference.
On March 13, 2009, the Company also entered into a side letter agreement with the Treasury that amends certain provisions of the Purchase Agreement and is attached to this report as Exhibit 10.2 and incorporated herein by reference.  This letter agreement confirms that, under the terms of the American Recovery and Reinvestment Act of 2009, the Preferred Stock may be redeemed at any time by the Company, using any source of funds, subject to the U.S. Treasury's consultation with the Company's federal regulator.
Item 3.02
Unregistered Sale of Equity Securities
The Preferred Stock, Warrant and the Warrant Preferred Stock were issued to the Treasury in a private placement exempt from registration pursuant to Section 4(2) of the Securities Act. The Company has not engaged in general solicitation or advertising with regard to the issuance and sale of the Securities and has not offered securities to the public in connection with this issuance and sale. The information set forth under "Item 1.01. Entry into a Material Definitive Agreement" is incorporated herein by reference.
Item 3.03
Material Modification to Rights of Security Holders
The information set forth under "Item 1.01. Entry into a Material Definitive Agreement" and "Item 5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year" is incorporated herein by reference.
Under the Articles of Amendment described in "Item 5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year," the Company's ability to declare or pay dividends or to repurchase its Common Stock or other equity or capital securities will be subject to restrictions in the event that it fails to declare and pay (or set aside for payment) full dividends on the Preferred Stock or Warrant Preferred Stock.
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
(e)    As a condition to the closing of the transaction, each of Messrs. Harry S. Smith, M. Shane Bell, Dennis A. Dysart, J. Andrew Hershey and Marshall J. Beverly, Jr., the Company's Senior Executive Officers (as defined in subsection 111 of the EESA), executed a waiver (the "Waiver") voluntarily waiving any claim against the Treasury or the Company for any
changes to such Senior Executive Officer's compensation or benefits that are required to comply with the regulation issued by the Treasury under the Program as published in the Federal Register on October 20, 2008 and acknowledging that the regulation may require modification of the compensation, bonus, incentive and other benefit plans, arrangements and policies and agreements (including so-called "golden parachute" agreements) (collectively, "Benefit Plans") as they relate to the period the Treasury holds any equity or debt securities of the Company acquired through the Program. Each of the Senior Executive Officers also entered into a letter agreement with the Company (the "Consent Letter") whereby each Senior Executive Officer agreed to amend the Benefit Plans with respect to such Senior Executive Officer as may be necessary, during the period that the Treasury owns
any debt or equity securities of the Company acquired pursuant to the Purchase Agreement, to comply with Section 111 of the EESA. The form of Waiver is attached as Exhibit 10.3 hereto and is incorporated herein by reference. The form of Consent Letter is attached as Exhibit 10.4 hereto and is incorporated herein by reference.
Item 5.03
Amendment to Articles of Incorporation or Bylaws; Change in Fiscal Year
Subsequent to amending and restating its Articles of Incorporation to authorize the issuance of preferred stock, the Company filed Articles of Amendment with the Commonwealth of Virginia State Corporation Commission on March 11, 2009 for the purpose of amending its Articles of Incorporation to fix the designations, preferences, limitations and relative rights of the Preferred Stock. The Articles of Amendment are attached hereto as Exhibit 3.1 and are incorporated herein by reference.
Item 8.01
Other Events
On March 13, 2009, the Registrant issued a press release reporting it has completed the issuance and sale of $13.9 million in Fixed Rate Cumulative Perpetual Preferred Stock to the U.S. Treasury Department as part of its Capital Purchase Program.  A copy of the press release is being furnished as an exhibit to this report and is incorporated by reference into this Item 8.01.
Item 9.01
Financial Statements and Exhibits
.
(d)
Exhibits
Exhibit No.
Description
3.1
Articles of Amendment to the Company's Articles of Incorporation, designating the terms of the Fixed Rate Cumulative Perpetual Preferred Stock, Series A and the Fixed Rate Cumulative Perpetual Preferred Stock, Series B
4.1
Form of Certificate for Fixed Rate Cumulative Perpetual Preferred Stock, Series A
4.2
Warrant to Purchase Shares of Preferred Stock, dated as of March 13, 2009
4.3
Form of Certificate for Fixed Rate Cumulative Perpetual Preferred Stock, Series B
10.1
Letter Agreement, dated as of March 13, 2009, by and between First National Corporation and the United States Department of the Treasury
10.2
Side Letter Agreement, dated as of March 13, 2009, by and between First National Corporation and the United States Department of the Treasury
10.3
Form of Waiver
10.4
Form of Consent Letter
99.1
Press Release dated March 13, 2009
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
FIRST NATIONAL CORPORATION
(Registrant)
Date:  March 17, 2009
By:
/s/ M. Shane Bell
M. Shane Bell
Executive Vice President
and Chief Financial Officer
EXHIBIT INDEX
Exhibit No.
Description
3.1
Articles of Amendment to the Company's Articles of Incorporation, designating the terms of the Fixed Rate Cumulative Perpetual Preferred Stock, Series A and the Fixed Rate Cumulative Perpetual Preferred Stock, Series B
4.1
Form of Certificate for Fixed Rate Cumulative Perpetual Preferred Stock, Series A
4.2
Warrant to Purchase Shares of Preferred Stock, dated as of March 13, 2009
4.3
Form of Certificate for Fixed Rate Cumulative Perpetual Preferred Stock, Series B
10.1
Letter Agreement, dated as of March 13, 2009, by and between First National Corporation and the United States Department of the Treasury
10.2
Side Letter Agreement, dated as of March 13, 2009, by and between First National Corporation and the United States Department of the Treasury
10.3
Form of Waiver
10.4
Form of Consent Letter
99.1
Press Release dated March 13, 2009