**Exhibit 10.7**

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|  | UNITED STATES  OF AMERICA Before the OFFICE OF THRIFT SUPERVISION In the Matter of Order  No.: WN-10-14 FIRST FEDERAL BANCSHARES OF ARKANSAS, INC. Effective Date:  April 14, 2010 Harrison, Arkansas OTS Docket No. H2658 STIPULATION AND  CONSENT TO ISSUANCE OF ORDER TO CEASE AND DESIST WHEREAS, the Office of  Thrift Supervision (OTS), acting by and through its Regional Director for the  Western Region (Regional Director), and based upon information derived from  the exercise of its regulatory and supervisory responsibilities, has informed  First Federal Bancshares of Arkansas, Inc., Harrison, Arkansas, OTS Docket  No. H2658 (Holding Company), that the OTS is of the opinion that grounds  exist to initiate an administrative proceeding against the Holding Company  pursuant to 12 U.S.C. § 1818(b); WHEREAS, the Regional Director, pursuant to  delegated authority, is authorized to issue Orders to Cease and Desist where  a savings and loan holding company has consented to the issuance of an order;  and WHEREAS, the Holding Company desires to cooperate with the OTS to avoid  the time and expense of such administrative cease and desist proceeding by  entering into this Stipulation and Consent to the Issuance of Order to Cease  and Desist (Stipulation) and, without admitting or First Federal Bancshares  of Arkansas, Inc. Stipulation and Consent to Issuance of Order to Cease  and Desist Page 1 of 6 |
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|  | denying that  such grounds exist, but only admitting the statements and conclusions in  Paragraphs 1 - 3 below concerning Jurisdiction, hereby stipulates and agrees  to the following terms: Jurisdiction.  1. The Holding Company is a “savings and loan holding company” within the  meaning of 12 U.S.C. § 1813(w)(3) and 12 U.S.C. § 1467a. Accordingly,  the Holding Company is a “depository institution holding company” as that  term is defined in 12 U.S.C. § 1813(w)(1). 2. Pursuant to 12 U.S.C. §  1818(b)(9), the “appropriate Federal banking agency” may initiate cease and  desist proceedings against a savings and loan holding company in the same  manner and to the same extent as a savings association for regulatory  violations and unsafe or unsound acts or practices. 3. Pursuant to 12 U.S.C.  § 1813(q), the Director of the OTS is the “appropriate Federal banking  agency” with jurisdiction to maintain an administrative enforcement  proceeding against a savings and loan holding company. Therefore, the Holding  Company is subject to the authority of the OTS to initiate and maintain an  administrative cease and desist proceeding against it pursuant to 12 U.S.C. §  1818(b). OTS Findings of Fact.  4. Based on its September 21, 2009 examination of the Holding Company,  the OTS finds that the Holding Company has engaged in unsafe or unsound  banking practices, including, but not limited to: (a) the Holding Company’s  failure to identify, measure, monitor, and control specific risks to the  Holding Company’s operations; (b) the operation of the Holding Company and  its subsidiary insured depository institution, First Federal Bank, Harrison,  Arkansas, OTS Docket No. 02721 First Federal Bancshares of Arkansas,  Inc. Stipulation and Consent to Issuance of Order to Cease and Desist Page 2  of 6 |
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|  | (Association),  with inadequate capital and earnings to support its risk profile; and (c) the  operation of the Association with an inadequate level of capital protection  for the volume, type, and quality of assets held by the Association. Consent. 5. The Holding  Company consents to the issuance by the OTS of the accompanying Order to  Cease and Desist (Order). The Holding Company further agrees to comply with  the terms of the Order upon the Effective Date of the Order and stipulates  that the Order complies with all requirements of law. Finality. 6. The Order  is issued by the OTS under 12 U.S.C. § 1818(b). Upon the Effective Date, the  Order shall be a final order, effective, and fully enforceable by the OTS  under the provisions of 12 U.S.C. § 1818(i). Waivers. 7. The Holding  Company waives the following: (a) the right to be served with a written  notice of the OTS’s charges against it as provided by 12 U.S.C. §  1818(b) and 12 C.F.R. Part 509; (b) the right to an administrative  hearing of the OTS’s charges as provided by 12 U.S.C. § 1818(b) and 12’  C.F.R. Part 509; (c) the right to seek judicial review of the Order, including,  without limitation, any such right provided by 12 U.S.C. § 1818(h), or  otherwise to challenge the validity of the Order; and (d) any and all claims  against the OTS, including its employees and agents, and any other  governmental entity for the award of fees, costs, or expenses related to this  OTS First Federal Bancshares of Arkansas, Inc. Stipulation and Consent to  Issuance of Order to Cease and Desist Page 3 of 6 |
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|  | enforcement  matter and/or the Order, whether arising under common law, federal statutes,  or otherwise. OTS Authority Not  Affected. 8. Nothing in  this Stipulation or accompanying Order shall inhibit, estop, bar, or  otherwise prevent the OTS from taking any other action affecting the Holding  Company if, at any time, the OTS deems it appropriate to do so to fulfill the  responsibilities placed upon the OTS by law. Other Governmental Actions Not Affected. 9. The Holding Company  acknowledges and agrees that its consent to the issuance of the Order is  solely for the purpose of resolving the matters addressed herein, consistent  with Paragraph 8 above, and does not otherwise release, discharge,  compromise, settle, dismiss, resolve, or in any way affect any actions,  charges against, or liability of the Holding Company that arise pursuant to  this action or otherwise, and that may be or have been brought by any  governmental entity other than the OTS. Miscellaneous. 10. The laws of the United States of America  shall govern the construction and validity of this Stipulation and of the  Order. 11. If any provision of this Stipulation and/or the Order is ruled to  be invalid, illegal, or unenforceable by the decision of any Court of  competent jurisdiction, the validity, legality, and enforceability of the  remaining provisions hereof shall not in any way be affected or impaired thereby,  unless the Regional Director in his or her sole discretion determines  otherwise. 12. All references to the OTS in this Stipulation and the Order  shall also mean any of the OTS’s predecessors, successors, and assigns. 13.  The section and paragraph headings in this Stipulation and the Order are for  convenience First Federal Bancshares of Arkansas, Inc. Stipulation and  Consent to Issuance of Order to Cease and Desist Page 4 of 6 |
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|  | only and shall  not affect the interpretation of this Stipulation or the Order. 14. The terms  of this Stipulation and of the Order represent the final agreement of the  parties with respect to the subject matters thereof, and constitute the sole  agreement of the parties with respect to such subject matters. 15. The Stipulation and Order shall  remain in effect until terminated, modified, or suspended in writing by the  OTS, acting through its Regional Director or other authorized representative.  Signature of Directors/Board  Resolution. 16. Each Director signing this Stipulation attests that he  or she voted in favor of a Board Resolution authorizing the consent of the  Holding Company to the issuance of the Order and the execution of the  Stipulation. This Stipulation may be executed in counterparts by the  directors after approval of the execution of the Stipulation at a duly called  board meeting. A copy of the Board Resolution authorizing the execution of  this Stipulation shall be delivered to the OTS, along with the executed  original(s) of this Stipulation. [Remainder of Page Intentionally Left Blank] First Federal Bancshares of Arkansas, Inc. Stipulation and  Consent to Issuance of Order to Cease and Desist Page 5 of 6 |
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|  | WHEREFORE, the  Holding Company, by its directors, executes this Stipulation. Accepted by:  FIRST FEDERAL BANCSHARES OF ARKANSAS, INC. Harrison, Arkansas OFFICE OF  THRIFT SUPERVISION By: John P. Hammerschmidt, Chairman By: C.K. Lee Regional  Director, Western Region Larry J. Brandt, Director and Chief Executive  Officer Date: See Effective Date on page 1 Jeffrey L. Brandt, Director  Frank L. Conner, Director Kenneth C. Savells, Director First Federal  Bancshares of Arkansas, Inc. Stipulation and Consent to Issuance of  Order to Cease and Desist Page 6 of 6 |
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