Document:

Exhibit 4.11

 

THIRD SUPPLEMENTARY AGREEMENT

 

This THIRD SUPPLEMENTARY AGREEMENT (this “Agreement”) is made as of March 7, 2011 by and among CHINACACHE INTERNATIONAL HOLDINGS LTD., a company incorporated in the Cayman Islands (the “Company”); CONSOLIDATED CAPITAL HOLDINGS, LTD., an exempted company incorporated under the laws of the British Virgin Islands (“CCH”); SONG WANG, an individual with PRC Identification Card No.:         ; XIAO HONG KOU, an individual with PRC Identification Card No.:          ; and the Investors listed on Schedule A hereto (each an “Investor” and collectively the “Investors”).  Song Wang and Xiao Hong Kou shall collectively be referred to as the “Founders” and each individually referred to as a “Founder”.  The Company, CCH, the Founders, and the Investors shall collectively be referred to as the “Parties” and each individually referred to as a “Party”.

 

RECITALS

 

A.            On April 20, 2007, the Company, CCH, the Founders, and the then-current holders of Series B preferred shares of the Company (which shares were authorized and issued in 2007, the “Series B Preferred Shares”)  entered into  an option agreement (the “Original Agreement”), pursuant to which,  on the date that the Company delivers the audited consolidated financial statements for the fiscal year ending on December 31, 2007, if the gross revenues (less tax) reflected in such financial statements reaches certain milestone  (the “Revenue Milestone”), the then-current holders of Series B Preferred Shares shall grant to the Founders options (the “Options”) to purchase 3,400,000 Ordinary Shares of the Company (the “Option Shares”) held by the then-current holders of Series B Preferred Shares.  All capitalized terms used herein without definition herein shall have the meanings ascribed to them in the Original Agreement.

 

B.            On July 15, 2009, a supplementary agreement to the Original Agreement (the “Option Supplementary Agreement”) was executed, which provides, among other things, that: (1) the holders of Series B Preferred Shares acknowledge that the Company has achieved the Revenue Milestone; (2) the total number of Option Shares issuable to the Founders upon their full exercise of the Options shall be reduced from 3,400,000 to 2,400,000; and (3) since Intel Capital Corporation transferred all of its Series B Preferred Shares to Qiming Venture Partners, L.P. and Qiming Managing Directors Fund, L.P. (collectively “Qiming”), therefore, Qiming shall assume Intel Capital Corporation’s obligations and liabilities under the Original Agreement.

 

C.            Pursuant to a Sale and Purchase Agreement dated April 30, 2010 (the “Sale and Purchase Agreement”), Starr International Cayman, Inc. (“Starr”)  transferred 25,298,900 Series B Preferred Shares and 2,372,825 Series C-2 Preferred Shares of the Company to Qiming, Ignition Venture Partners III, L.P. and Ignition Managing Directors Fund III, LLC (“Ignition”), Investor Investments Asia Limited and Investor Group Asia LP (“IGC Asia”), SIG China Investments One, Ltd. (“SIG”), and Tiger Partners, L.P. (“Tiger”, together with Qiming, Ignition, SIG, Tiger and IGC Asia, the “Buyers”) (the “Starr Transfer”).   As a result of the Starr Transfer, a second supplementary agreement to the Original Agreement (the “Second Option Supplementary Agreement”) was executed on May 14, 2010, which provides, among other things, that: the Buyers shall assume Starr’s obligations and liabilities under the Original Agreement and the Option Supplementary Agreement in proportion to the shares each Buyer has purchased under the Sale and Purchase Agreement.

 

1

 

D.            In October 2010, the Company consummated an initial public offering at NASDAQ (the “IPO”). Immediately before the IPO, (1) all of the preferred shares of the Company (including the Series B Preferred Shares) were converted into Ordinary Shares, and (2) each Investor executed and delivered to Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Deutsche Bank Securities Inc. (the “Underwriter Representatives”) a Lock Up Letter, pursuant to which such Investor agrees not to directly or indirectly offer, sell, contract to sell or otherwise dispose of or transfer any shares of the Company’s Ordinary Shares or any securities convertible into or exchangeable or exercisable for Ordinary Shares, within 180 days from the IPO date, without the prior written consent of the Underwriter Representatives.

 

E.             Currently, the Options and the number of corresponding Option Shares issuable to each Founder by each Investor are as shown in Schedule A hereto.  All corresponding Option Shares are now Ordinary Shares.

 

F.             The Parties hereby wish to enter into this Agreement to amend the vesting schedule set forth in the Original Agreement.

 

NOW, THEREFORE, in consideration of the mutual premises and covenants set forth herein, the Parties agree as follows:

 

1.             Amendment to Vesting Schedule.  The Parties agree that the vesting schedule set forth in Section 3.4 of the Original Agreement shall be deleted.  The Options shall vest and become fully exercisable as of March 31, 2011.   The term vesting schedule referred to in the Original Agreement, the Option Supplementary Agreement, the Second Option Supplementary Agreement and all other instruments and agreements executed, delivered or entered into thereunder or pursuant thereto shall be amended and construed such that all Options shall become vest and fully exercisable on March 31, 2011.

 

2.             Consent of the Underwriter Representatives.  Each of the Investors acknowledges that the Options were duly granted to the Founders on April 1, 2008. Each of the Investors shall obtain the consent from the Underwriter Representatives before March 31, 2011 so that the Option Shares can be legally transferred to the Founders upon their exercise of the Options.

 

3.             Incorporation and Interpretation.

 

3.1           Except to the extent expressly amended by the provisions of this Agreement, the terms and conditions of the Original Agreement, the Option Supplementary Agreement, the Second Option Supplementary Agreement and all other instruments and agreements executed, delivered or entered into thereunder or pursuant thereto are hereby confirmed and shall remain in full force and effect.

 

3.2           The Original Agreement,  the Option Supplementary Agreement, the Second Option Supplementary Agreement and this Agreement shall be read and construed as one document and this Agreement shall be considered to be part of the Original Agreement, the Option Supplementary Agreement and the Second Option Supplementary Agreement.  Accordingly, the term “Agreement” as used in the Original Agreement, and all references to the Original Agreement, howsoever expressed, in all other instruments and agreements executed thereunder or pursuant thereto, shall for all purposes refer to the Original Agreement as amended

 

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by the Option Supplementary Agreement, the Second Option Supplementary Agreement and this Agreement.

 

4.             Governing Law.  This Agreement shall be governed in all respects by the laws of the Hong Kong Special Administrative Region without regard to conflicts of law principles.

 

5.             Dispute Resolution.

 

5.1           Negotiation Between Parties; Mediations.  The Parties agree to negotiate in good faith to resolve any dispute between them regarding this Agreement.  If the negotiations do not resolve the dispute to the reasonable satisfaction of the relevant Parties, then each Party to the dispute that is a company shall nominate one (1) authorized officer as its representative.  The relevant Parties or their representatives, as the case may be, shall, within thirty (30) days of a written request by either Party to call such a meeting, meet in person and alone (except for one (1) assistant for each Party) and shall attempt in good faith to resolve the dispute.  If the disputes cannot be resolved by such senior managers in such meeting, the Parties agree that they shall, if requested in writing by either Party, meet within thirty (30) days after such written notification for one (1) day with an impartial mediator and consider dispute resolution alternatives other than formal arbitration.  If an alternative method of dispute resolution is not agreed upon within thirty (30) days after the one (1) day mediation, either Party to the dispute may begin formal arbitration proceedings to be conducted in accordance with Section 5.2 below.  This procedure shall be a prerequisite before taking any additional action hereunder.

 

5.2           Arbitration.  In the event the Parties are unable to settle a dispute between them regarding this Agreement in accordance with subsection (a) above, such dispute shall be referred to and finally settled by arbitration at the Hong Kong International Arbitration Centre in accordance with the UNCITRAL Arbitration Rules (“UNCITRAL Rules”) in effect, which rules are deemed to be incorporated by reference into this subsection (b), subject to the following: (i) the arbitration tribunal shall consist of one (1) arbitrator to be appointed according to the UNCITRAL Rules; and (ii) the language of the arbitration shall be English.  Notwithstanding anything in this Agreement or in the UNCITRAL Rules or otherwise, the arbitration tribunal shall not have the power to award injunctive relief or any other equitable remedy of any kind against any Investor unless such award both (x) is expressly appealable to and subject to de novo review by the courts of Hong Kong, and (y) would not, if upheld, have the effect of impairing, restricting, or imposing any conditions on the right or ability of such Investor or any of its Affiliates to conduct its respective business operations or to make or dispose of any other investments.  The prevailing Party shall be entitled to reasonable attorney’s fees, costs and necessary disbursements in addition to any other relief to which such Party may be entitled.

 

6.             JAFCO Rights.  Any rights of JAFCO under this Agreement may, without prejudice to the rights of JAFCO to exercise any such rights, be exercised by JAFCO Investment (Asia Pacific) Ltd. (“JIAP”) or any other fund manager of JAFCO or their nominees (“JAFCO Manager”), unless JAFCO has (a) given notice to the other parties that any such rights cannot be exercised by JIAP or a JAFCO Manager; and (b) not given notice to the other parties that such notice which is given under this Section 7 has been revoked.

 

3

 

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written.

 

 

	
/s/ Song Wang
    	
 
    	
/s/ Xiao-Hong   Kou  
    
	
Song Wang (王松), as an individual
    	
 
    	
Xiao-Hong Kou (寇小洪), as an individual
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
CONSOLIDATED CAPITAL HOLDINGS, LTD.
    	
 
    	
CHINACACHE INTERNATIONAL   HOLDINGS LTD.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By
    	
/s/ Xiao-Hong   Kou 
    	
 
    	
By
    	
/s/ Song Wang
    
	
Name:
    	
 
    	
Name:
    
	
Title:
    	
 
    	
Title:
    
					

 

 

Contacts:

 

6th Floor, Tower A, Xingke Plaza,

No. 10, Jiuxianqiao Zhong Road,

Chaoyang District, Beijing, P.R.China

Fax: +86 10 6437 4251

 

Signature Page for Third Supplementary Agreement to the Option Agreement

in relation to Options over Shares in Chinacache International Holdings Ltd

 

 

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written.

 

 

	
 
    	
QIMING VENTURE PARTNERS,   L.P., a Cayman Islands exempted limited partnership
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
QIMING GP, L.P., a Cayman Islands exempted   limited partnership
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
QIMING CORPORATE GP, LTD., a Cayman   Islands company
    
	
 
    	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/ Robert Headley
    
	
 
    	
 
    	
 
    	
Its: 
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
QIMING MANAGING DIRECTORS   FUND, L.P., a Cayman Islands exempted limited   partnership
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
QIMING CORPORATE GP, LTD., a Cayman   Islands company
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Robert Headley
    
	
 
    	
 
    	
Its:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Contacts:
    
	
 
    	
 
    
	
 
    	
11400 SE Sixth Street
    
	
 
    	
Suite 100, Bellevue, Washington 98004
    
	
 
    	
Atten:
    	
John Zagula
    
	
 
    	
Phone:
    	
(425) 709-0772
    
	
 
    	
Fax:
    	
(425) 709-0798
    
							

 

Signature Page for Third Supplementary Agreement to the Option Agreement

in relation to Options over Shares in Chinacache International Holdings Ltd

 

 

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written.

 

 

	
 
    	
IGNITION VENTURE PARTNERS   III, L.P., a Delaware limited partnership
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
IGNITION GP III, LLC, a Delaware limited   liability company
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Robert Headley
    
	
 
    	
 
    	
Its:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
IGNITION MANAGING DIRECTORS   FUND III, LLC, a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert Headley
    
	
 
    	
Its:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Contacts:
    
	
 
    	
 
    
	
 
    	
11400 SE Sixth Street
    
	
 
    	
Suite 100, Bellevue, Washington 98004
    
	
 
    	
Atten:
    	
John Zagula
    
	
 
    	
Phone:
    	
(425) 709-0772
    
	
 
    	
Fax:
    	
(425) 709-079
    
					

 

Signature Page for Third Supplementary Agreement to the Option Agreement

in relation to Options over Shares in Chinacache International Holdings Ltd

 

 

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written.

 

 

	
 
    	
TIGER   PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael Treisman
    
	
 
    	
Name: Michael Treisman
    
	
 
    	
Title: Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Contacts:
    
	
 
    	
 
    
	
 
    	
c/o Tiger Management L.L.C.
    
	
 
    	
101 Park Avenue
    
	
 
    	
New York, New York 10178
    
	
 
    	
Attention: General Counsel
    
	
 
    	
Fax: (646) 417-7809
    
	
 
    	
With an email copy in PDF format to:
    
	
 
    	
michael.treisman@tigerfund.com
    

 

Signature Page for Third Supplementary Agreement to the Option Agreement

in relation to Options over Shares in Chinacache International Holdings Ltd

 

 

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written.

 

 

	
 
    	
SIG CHINA INVESTMENTS   ONE, LTD.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael L. Spolan
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Contacts:
    
	
 
    	
 
    
	
 
    	
Suite 1504-05,   Corporate Avenue
    
	
 
    	
222 Hui Bin Road
    
	
 
    	
Shanghai, China   200021
    
	
 
    	
Fax: +86 21   61223488
    
	
 
    	
Attn: Tim Gong
    
	
 
    	
Email Address:   sharon.poh@sig.com
    
	
 
    	
 
    
	
 
    	
With a copy to:
    
	
 
    	
Michael L. Spolan 
    
	
 
    	
Susquehanna Asia Investment, LLP
    
	
 
    	
101 California Street, Suite 3250
    
	
 
    	
San Francisco, CA 94111
    

 

Signature Page for Third Supplementary Agreement to the Option Agreement

in relation to Options over Shares in Chinacache International Holdings Ltd

 

 

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written.

 

 

	
 
    	
JAFCO ASIA TECHNOLOGY FUND II
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Hiroshi Yamada
    
	
 
    	
Name: Hiroshi Yamada
    
	
 
    	
Title: Attorney
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Contacts:
    
	
 
    	
 
    
	
 
    	
c/o JAFCO   Investment (Asia Pacific) Ltd

6 Battery Road

#42-01 Singapore   049909

Fax: +65 6221-3690

Attn: The   President
    
	
 
    	
 
    
	
 
    	
With a copy to:

JAFCO Investment   (Hong Kong) Ltd.

Beijing   Representative Office

Room 817

Beijing Fortune   Building No. 5

Dong San Huan Bei   Lu

Chao Yang   District, Beijing 100004, China

Fax: +8610 6590 9729

Attention: Chief Representative
    

 

Signature Page for Third Supplementary Agreement to the Option Agreement

in relation to Options over Shares in Chinacache International Holdings Ltd

 

 

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written.

 

 

	
 
    	
INVESTOR INVESTMENTS ASIA   LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Nicola McGall
    
	
 
    	
 
    	
/s/ Robert de Heus
    
	
 
    	
Name: 
    
	
 
    	
Title: 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
INVESTOR GROUP ASIA LP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Nicola McGall
    
	
 
    	
 
    	
/s/ Robert de Heus
    
	
 
    	
Name: 
    
	
 
    	
Title: 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Contacts:
    
	
 
    	
 
    
	
 
    	
Canada Court, Upland Road
   St Peter Port
   Guernsey, GY1 3BQ 
   Fax: +44 1481 744 554  
   Attn: Ms. Lisa Barnett
   With an e-mail copy in PDF format to:
   paul.choo@investorab.com, investorab@rbc.com,
   robert.deheus@investorab.com and AMO@investorab.com
    

 

Signature Page for Third Supplementary Agreement to the Option Agreement

in relation to Options over Shares in Chinacache International Holdings Ltd

 

 

SCHEDULE A

 

SCHEDULE OF OPTIONS

 

	
Investors
    	
 
    	
Options Shares Granted
   to Song Wang
    	
 
    	
Options Shares Granted
   to Jean Kou
    	
 
    
	
Qiming Venture Partners, L.P.
    	
 
    	
499,670
    	
 
    	
408,821
    	
 
    
	
Qiming Managing Directors Fund, L.P.
    	
 
    	
7,470
    	
 
    	
6,111
    	
 
    
	
Ignition Venture Partners III, L.P.
    	
 
    	
163,221
    	
 
    	
133,545
    	
 
    
	
Ignition Managing Directors Fund III, LLC
    	
 
    	
4,771
    	
 
    	
3,904
    	
 
    
	
SIG China Investments One, Ltd
    	
 
    	
224,495
    	
 
    	
183,677
    	
 
    
	
JAFCO Asia Technology Fund II
    	
 
    	
41,866
    	
 
    	
34,254
    	
 
    
	
Investor Investments Asia Limited
    	
 
    	
149,576
    	
 
    	
122,380
    	
 
    
	
Investor Group Asia LP
    	
 
    	
64,104
    	
 
    	
52,449
    	
 
    
	
Tiger Partners, L.P.
    	
 
    	
164,827
    	
 
    	
134,859
    	
 
    
	
TOTAL
    	
 
    	
1,320,000
    	
 
    	
1,080,000Exhibit 10.1

 

AMENDMENT NO. 1

TO

INVESTMENT AGREEMENT

 

THIS AMENDMENT NO. 1 TO INVESTMENT AGREEMENT, dated as of April 20, 2011 (this “Amendment”), is made by and among First Federal Bancshares of Arkansas, Inc., a Texas corporation (the “Company”), First Federal Bank, a federally chartered stock savings and loan association and wholly-owned subsidiary of the Company (the “Bank”), and Bear State Financial Holdings, LLC, an Arkansas limited liability company (the “Investor”).

 

RECITALS

 

A.            The Company, the Bank and the Investor are parties to that certain Investment Agreement dated as of January 27, 2011 (the “Investment Agreement”).

 

B.            The Investment Agreement creates an ongoing obligation on the part of the Company to take certain actions with respect to the Designated Investor Directors following the First Closing for so long as the Investor or its Permitted Transferees maintain a minimum percentage ownership in the Common Stock of the Company.

 

C.            The Company, the Bank and the Investor desire to amend the Investment Agreement, pursuant to Section 6.4 thereof, in order to eliminate such obligation.

 

AGREEMENT

 

Now, therefore, in consideration of the foregoing contained in this Amendment, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company, the Bank and the Investor hereby agree as follows:

 

1.             Definitions.  Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in the Investment Agreement.

 

2.             Amendments.  The Investment Agreement is hereby amended as follows:

 

(a)           The Defined Terms Index is hereby amended to delete the terms “Permitted Transferee”, “Permitted Transferee Voting Agreement” and “Qualifying Ownership Interest” and the corresponding section references for such terms.

 

(b)           Section 3.5 (Governance Matters) of the Investment Agreement is hereby amended to delete subsection (a) in its entirety and to replace such subsection with the following:

 

“(a)         Immediately prior to the First Closing, the Company shall take all requisite corporate action (including, without limitation, amending as necessary the Bank’s bylaws) such that (i) immediately prior to the First Closing, the size of the Board of Directors as well as the Bank Board shall consist of seven (7) seats, and (ii) immediately following the First Closing, (A) the Board of Directors and the Bank Board shall include four (4) individuals designated by the Investor to serve on the Board of Directors and the Bank Board (the “Designated Investor Directors”) (if

 

 

such individuals have received prior written approval by OTS to serve in such positions as part of the Investor’s application to the OTS for status as a savings and loan holding company) and (B) the positions of Chairman and Vice Chairman of the Board of Directors and Bank Board shall be filled by the Designated Investor Directors designated by the Investor to serve in those positions (if such individuals have received prior written approval by OTS to serve in such positions).  Of the four (4) Designated Investor Directors, only one (1) such Designated Investor Director may serve in such capacity while also serving as an employee of the Company and/or the Bank.  Of the three (3) non-Designated Investor Directors, only one (1) such director may serve in such capacity while also serving as an employee of the Company and/or Bank.  Any existing member of the Board of Directors and the Bank Board who will not be among the seven (7) members of the Board of Directors and the Bank Board immediately following the First Closing shall have tendered his or her conditional resignation from the Board of Directors and the Bank Board to be effective only upon the First Closing (provided that OTS has granted prior written approval to his/her proposed replacement).  Not less than ten (10) Business Days prior to the First Closing, the Investor shall provide to the Company in writing the names of the Designated Investor Directors to the Board of the Directors and the Bank Board (including the name of the Designated Investor Directors designated by the Investor to serve as Chairman of the Board of Directors and the Bank Board and Vice Chairman of the Board of Directors and the Bank Board) and the committees to which such designees are to be appointed immediately following the First Closing.  In accordance with this Section 3.5, the Company (if OTS has granted prior written approval for such Designated Investor Directors to serve in such positions) shall cause (A) the Designated Investor Directors to be elected or appointed as members of the Board of Directors and the Bank Board and (B) the Designated Investor Directors designated by the Investor to serve as Chairman of the Board of Directors and the Bank Board and Vice Chairman of the Board of Directors and the Bank Board to be elected or appointed as Chairman of the Board of Directors and Bank Board and Vice Chairman of the Board of Directors and the Bank Board, all subject to satisfaction of all legal and governance requirements regarding service as a member of the Board of Directors and the Bank Board on the First Closing Date.”

 

(c)           Section 3.8 (Preemptive Rights) of the Investment Agreement is hereby amended to delete subsection (a) in its entirety and to replace such subsection with the following:

 

“(a)         Sale of New Securities.  After the First Closing, for so long as the Investor owns, in the aggregate, thirty-three percent (33%) or more of the then outstanding shares of Common Stock (as adjusted from time to time for any reorganization, recapitalization, stock dividend, stock split, reverse stock split, or other like changes in the Company’s capitalization and including Common Shares issued upon exercise of the Investor Warrant) (before giving effect to any issuances triggering provisions of this Section 3.8), at any time that the Company proposes to make any public or nonpublic offering or sale of any equity (including Common Stock, preferred stock or restricted stock), or any securities, options or debt that is convertible or exchangeable into equity or that includes an equity component (such as, an “equity kicker”) (including any hybrid security) (any such security, a “New Security”) (other than the issuance and sale of securities (i) in connection with the Rights

 

 

Offering and the Second Closing; (ii) to employees, officers, directors or consultants of the Company pursuant to employee benefit plans or compensatory arrangements approved by the Board of Directors (including upon the exercise of employee stock options granted pursuant to any such plans or arrangements) or (iii) as consideration in connection with any bona fide, arm’s-length direct or indirect merger, acquisition or similar transaction) the Investor shall first be afforded the opportunity to acquire from the Company for the same price (net of any underwriting discounts or sales commissions) and on the same terms (except that, to the extent permitted by Law and the Articles of Incorporation and bylaws of the Company, the Investor may elect to receive such securities in nonvoting form, convertible into voting securities in a widely dispersed offering) as such securities are proposed to be offered to others, up to the amount of such New Securities to be offered in the aggregate required to enable it to maintain its proportionate Common Stock-equivalent interest in the Company immediately prior to any such issuance of New Securities. The New Securities that the Investor shall be entitled to purchase in the aggregate shall be determined by multiplying (x) the total number or principal amount of such offered New Securities by (y) a fraction, the numerator of which is the number of shares of Common Stock held by the Investor (assuming full conversion or exercise of any securities convertible into or exercisable for Common Stock) and the denominator of which is the number of shares of Common Stock then outstanding.”

 

(d)           Section 3.8 (Preemptive Rights) of the Investment Agreement is hereby further amended to delete subsection (g) in its entirety and to replace such subsection with the following:

 

“(g)         No Assignment. The rights set forth under this Section 3.8 are exclusive to the Investor and its members and are not otherwise assignable or transferable to any third party.”

 

3.             No Other Amendments.  Except for the amendments expressly set forth and referred to in Section 2 hereof, the Investment Agreement shall remain unchanged and in full force and effect.

 

4.             Effect of Amendment.  Whenever the Investment Agreement is referred to in the Investment Agreement or in any other agreements, documents and instruments, such reference shall be deemed to be to the Investment Agreement as amended by this Amendment.

 

5.             Entire Agreement.  The Investment Agreement (including the documents referred to therein and those certain written agreements and undertakings between the parties executed and delivered on the date thereof that relate to the transactions contemplated by the Investment Agreement), as amended by this Amendment, constitutes the entire agreement among the parties and supersedes any prior understandings, agreements, or representations by or among the parties, written or oral, to the extent they relate in any way to the subject matter hereof.

 

6.             Governing Law.  This Amendment shall be governed by and construed in accordance with the Laws of the State of New York applicable to contracts made and to be performed entirely within such State.

 

 

7.             Severability.  Any term or provision of this Amendment that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction.

 

8.             Counterparts.  This Amendment may be executed in one or more counterparts (including by means of facsimile or scanned copy), each of which shall be deemed an original but all of which together will constitute one and the same instrument.

 

9.             Headings.  The section headings contained in this Amendment are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Amendment.

 

[SIGNATURE PAGE FOLLOWS]

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first above written.

 

	
 
    	
FIRST   FEDERAL BANCSHARES OF ARKANSAS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Larry J. Brandt
    
	
 
    	
Larry   J. Brandt
    
	
 
    	
President   and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
FIRST   FEDERAL BANK
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Larry J. Brandt
    
	
 
    	
Larry   J. Brandt
    
	
 
    	
President   and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BEAR   STATE FINANCIAL HOLDINGS, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Richard N. Massey
    
	
 
    	
Richard   N. Massey
    
	
 
    	
Managing   Member
    

 

SIGNATURE PAGE TO AMENDMENT NO. 1 TO INVESTMENT AGREEMENT

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