Document:

Exhibit 10.2

 

UNITED STATES
DEPARTMENT OF THE TREASURY

1500 Pennsylvania
Avenue, NW

Washington, D.C.
20220

 

 

March 6, 2009

 

Ladies and Gentlemen:

 

Reference
is made to that certain Letter Agreement incorporating the Securities Purchase
Agreement – Standard Terms dated of as of the date of this letter agreement
(the “Securities Purchase Agreement”) between
United States Department of Treasury (“Investor”) and
the company named on the signature page hereto (the “Company”).  Capitalized terms used but not defined herein
shall have the meanings assigned to them in the Securities Purchase Agreement.

 

The
American Recovery and Reinvestment Act of 2009, as it may be amended from time
to time (the “Act”), includes
provisions relating to executive compensation and other matters that may be
inconsistent with the Securities Purchase Agreement, the Warrant and the
Certificate[s] of Designation (the “Transaction
Documents”).  Accordingly,
Investor and the Company desire to confirm their understanding as follows:

 

1.                                       Notwithstanding
anything in the Transaction Documents to the contrary, in the event that the
Act or any rules or regulations promulgated thereunder are inconsistent
with any of the terms of the Transaction Documents, the Act and such rules and
regulations shall control.

 

2.                                       For
the avoidance of doubt (and without limiting the generality of Paragraph 1):

 

(a)                                  the
provisions of Section 111 of the Emergency Economic Stabilization Act of
2008, as amended by the Act or otherwise from time to time (“EESA”), shall apply to the Company;

 

(b)                                 the
waiver to be delivered by each of the Company’s Senior Executive Officers
pursuant to Section 1.2(d)(v) of the Securities Purchase Agreement
shall, in addition, be delivered by any additional highly compensated employees
required by the Act or any rules or regulations thereunder;

 

(c)                                  the
Company’s chief executive officer and chief financial officer shall provide the
written certification of compliance by the Company with the requirements of Section 111
of EESA, as amended by the Act, in the manner specified by Section 111(b)(4) thereunder
or in any rules or regulations under EESA; and

 

(d)                                 the
Company shall be permitted to repay preferred shares, and when such preferred
shares are repaid, the Investor shall liquidate warrants associated with such
preferred shares, all in accordance with the Act and any rules and
regulations thereunder.

 

 

From
and after the date hereof, each reference in the Securities Purchase Agreement
to “this Agreement” or “this Securities Purchase Agreement” or words of like
import shall mean and be a reference to the Agreement (as defined in the
Securities Purchase Agreement) as amended by this letter agreement.

 

This letter agreement will be governed by and
construed in accordance with the federal law of the United States if and to the
extent such law is applicable, and otherwise in accordance with the laws of the
State of New York applicable to contracts made and to be performed entirely
within such State.

 

This letter agreement, the Securities Purchase Agreement,
the Warrant, the Certificate[s] of Designation and any other documents executed
by the parties at the Closing constitute the entire agreement of the parties
with respect to the subject matter hereof.

 

Nothing in this letter
agreement shall be deemed an admission by Investor as to the necessity of
obtaining the consent of the Company in order to effect the changes to the
Transaction Documents contemplated by this letter agreement, nor shall anything
in this letter agreement be deemed to require Investor to obtain the consent of
any other TARP recipient (as defined in the Act) participating in the Capital
Purchase Program (the “CPP”) in
order to effect changes to their documentation under the CPP.

 

This
letter agreement may be executed in any number of separate counterparts, each
such counterpart being deemed to be an original instrument, and all such
counterparts will together constitute the same agreement.  Executed signature pages to this letter
agreement may be delivered by facsimile and such facsimiles will be deemed
sufficient as if actual signature pages had been delivered.

 

[Remainder of this page intentionally
left blank]

 

 

In
witness whereof, the parties have duly executed this letter agreement as of the
date first written above.

 

	
   

  	
  UNITED STATES DEPARTMENT OF THE TREASURY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Neel Kashkari

  
	
   

  	
   

  	
  Name: Neel Kashkari

  
	
   

  	
   

  	
  Title:   Interim Assistant Secretary for Financial Stability

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COMPANY:  FIRST FEDERAL BANCSHARES OF ARKANSAS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry J. Brandt

  
	
   

  	
   

  	
  Name: Larry J. Brandt

  
	
   

  	
   

  	
  Title:   President and Chief Executive Officer

  
				

 

SIGNATURE
PAGE TO LETTER AGREEMENTExhibit 10.3

 

FIRST AMENDMENT TO

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

THIS FIRST
AMENDMENT to the AMENDED AND RESTATED EMPLOYMENT AGREEMENT, dated as of this 14th day of December, 2007, is between First
Federal Bancshares of Arkansas, Inc., a Texas chartered corporation (the “Corporation”),
First Federal Bank, a federally chartered savings bank and a wholly owned
subsidiary of the Corporation (the “Bank”), and                     
(the “Executive”) (the “Amended and Restated Agreement”).

 

WITNESSETH

 

WHEREAS, the Employers desire to amend the Amended and Restated
Agreement in order to make changes to comply with certain executive
compensation restrictions imposed on the Corporation in connection with its
participation in the Capital Purchase Program (“CPP”) of the U.S. Department of
Treasury’s (the “Treasury”) Troubled Asset Relief Program and specifically Section 111
of the Emergency Economic Stabilization Act of 2008 (the “EESA”), as amended by
Section 7001 of the American Recovery and Reinvestment Act of 2009 (the “ARRA”).

 

NOW THEREFORE, in consideration of the mutual agreements herein
contained, and upon the other terms and conditions hereinafter provided, the
parties hereby agree as follows:

 

1.                           Section 20 of the
Amended and Restated Agreement shall become Section 21 and the
following new Section 20 added

 

                        20.                               Compliance
with the Troubled Asset Relief Program (“TARP”)

 

                        (i)                                  Notwithstanding
any provision to the contrary herein, during the period that any obligation
arising from financial assistance provided to the Corporation under the TARP
remains outstanding pursuant to the TARP Capital Purchase Program (“CPP”)
(excluding any period in which the Federal Government only holds warrants to
purchase common stock of the Corporation), Executive will not receive and
will not be entitled to receive any payment or compensation pursuant to this
Agreement if the receipt of such payment or compensation alone or when added to
any other payment or compensation received or to be received by Executive from
the Corporation would cause Executive to receive a “golden parachute payment”
within the meaning of Section 111 of the Emergency Economic Stabilization
Act of 2008 (the “EESA”), as amended by Section 7001 of the American
Recovery and Reinvestment Act of 2009 (the “ARRA”) or any of the rules and
regulations promulgated under the EESA or ARRA. The Corporation and the Bank
shall retain the exclusive and final authority, without the consent of
Executive, to cancel, reduce or otherwise eliminate any compensation or other
payments pursuant to this Agreement, including without limitation any payments
pursuant to Sections 3 and 5 hereof, so as to comply with the EESA, as amended
by ARRA and the rules and regulations promulgated thereby, as then in
effect. Any compensation or other payments canceled, reduced or eliminated
pursuant to the preceding sentence, will be 

 

 

forever forfeited by Executive and [he] shall not be entitled to or have any claim against
the Corporation and/or the Bank to receive such payments at anytime.

 

                        (ii)                              Notwithstanding
any provision to the contrary herein, Executive shall make prompt and immediate
repayment to the Corporation or the Bank, as the case may be, of the full
amount of any payment made or credited to Executive under this Agreement during
the period that any obligation arising from financial assistance provided to
the Corporation under the TARP remains outstanding pursuant to the CPP
(excluding any period in which the Federal Government only holds warrants to
purchase common stock of the Corporation) or any  other TARP program
involving the Corporation and/or the Bank where such entity received financial
assistance provided under TARP, if such compensation or other payment(s) are
determined at any time by the Corporation and/or the Bank or their federal bank
regulator to have been: (i) calculated or based on materially inaccurate
financial statements or any other materially inaccurate performance metric
criteria or (ii) compensation or payments that are incentive,
retention or bonus compensation that is not permitted by EESA, as amended
by ARRA or the rules and regulations promulgated thereunder. The
Corporation shall retain the exclusive and final authority as to all such
determinations under this subparagraph (ii), so as to ensure compliance with
applicable requirements of EESA, as amended by ARRA and the rules and
regulations as are promulgated thereby, as then in effect. Any compensation or
other payments returned to the Corporation or the Bank pursuant to the
preceding sentence shall be forever forfeited by Executive and [he] shall not be entitled to or have any claim against
the Corporation and/or the Bank for repayment or return of any such amounts
repaid by Executive at anytime.

 

2.                                       Entire
Agreement and Waiver.  The Amended and
Restated Agreement, as amended by this First Amendment constitute the entire
agreement among the Parties and supersedes any prior understandings, agreements
or representations by or among the Parties, written or oral, with respect to
the subject matter of the Amended and Restated Agreement.

 

3.                                       Conflict
of Terms.  In the event of a conflict or
inconsistency between the terms, conditions and provisions of the Amended and
Restated Agreement and those of this First Amendment, the terms, conditions and
provisions of this First Amendment shall control and govern the rights and
obligations of the Parties.

 

4.                                       Ratification.  Except to the extent amended hereby or
inconsistent herewith, all of the terms, conditions and provisions of the
Amended and Restated Agreement shall remain in full force and effect, and the
Parties hereby acknowledge and confirm that the same are in full force and
effect.

 

 

IN WITNESS WHEREOF, this First Amendment has
been executed as of the date first above written.

 

 

	
  Attest:

  	
  FIRST FEDERAL BANCSHARES OF ARKANSAS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
  FIRST FEDERAL BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

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