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Henry County Bancshares 10-Q

| 1. | By adding the following to the end of Section 2.4: |
|----|----------------------------------------------------|

| 2. | By adding the following new Section 2.9A: |
|----|-------------------------------------------|

| 3. | By deleting Subsections 3.1(a) through (d) and the first sentence of the last paragraph of Section 3.1 in their entirety and substituting therefor the following: |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “(a) | Ascertain the value of the Executive’s Deferral Account as of the date that the Executive first engages in Competitive Activities by multiplying the number of units in the Executive’s Deferral Account by the Fair Market Value of a share of the Holding Company’s common stock, both determined as of the date that the Executive first engages in Competitive Activities; |
|--------|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Determine the sum of the value of all payments made to the Executive under this Section 3.1 before the Executive engaged in Competitive Activities, provided that the value of any payments of shares of the Holding Company’s common stock shall be determined by multiplying the number of such shares distributed to the Executive as payment by the Fair Market Value of a share of the Holding Company’s common stock on the date the shares were distributed to the Executive; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Determine the greater of zero (0); or the amount determined by subtracting the amount determined under Subsection (b) above, from the amount determined under Subsection (a) above; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Divide the amount determined under Subsection (c) above by the Fair Market Value of a share of the Holding Company’s common stock on the date that the Executive first engages in Competitive Activities; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Divide the number determined under Subsection (d) above by one hundred twenty (120). |
|--------|-----|--------------------------------------------------------------------------------------|

| 4. | By deleting Subsections 3.3(a) through (d) and the first sentence of the last paragraph of Section 3.3 in their entirety and substituting therefor the following: |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | “(a) | Ascertain the value of the Executive’s Deferral Account as of the date that the Executive first engages in Competitive Activities by multiplying the number of units in the Executive’s Deferral Account by the Fair Market Value of a share of the Holding Company’s common stock, both determined as of the date that the Executive first engages in Competitive Activities; |
|--------|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Determine the sum of the value of all payments made to the Executive under this Section 3.3 before the Executive engaged in Competitive Activities, provided that the value of any payments of shares of the Holding Company’s common stock shall be determined by multiplying the number of such shares distributed to the Executive as payment by the Fair Market Value of a share of the Holding Company’s common stock on the date the shares were distributed to the Executive; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Determine the greater of zero (0); or the amount determined by subtracting the amount determined under Subsection (b) above, from the amount determined under Subsection (a) above; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Divide the amount determined under Subsection (c) above by the Fair Market Value of a share of the Holding Company’s common stock on the date that the Executive first engages in Competitive Activities; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Divide the number determined under Subsection (d) above by one hundred twenty (120). |
|--------|-----|--------------------------------------------------------------------------------------|

| 5. | By adding the following new Sections 3.7 and 3.8: |
|----|---------------------------------------------------|

| 6. | By deleting Section 9.1 in its entirety and substituting therefor the following: |
|----|----------------------------------------------------------------------------------|

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|   | THE FIRST STATE BANK:          |                  |
|--------|--------------------------------|-----------------------|
|   |                           |                  |
|   | By:                  | /s/ G. R. Foster, III |   |
|   | Title:                         | Chairman              |   |
|   |                           |                  |
|   |                           |                  |
|   | HENRY COUNTY BANCSHARES, INC.: |                  |
|   |                           |                  |
|   | By:                  | /s/ G. R. Foster, III |   |
|   | Title:                         | Chairman              |   |
|   |                           |                  |
|   |                           |                  |
|   | EXECUTIVE:                     |                  |
|   |                           |                  |
|   | /s/ David H. Gill              |                  |