Document:

EX-10.12

Exhibit 10.12

America Service Group Inc. (the “Company”)

Summary of 2009 Director and Executive Officer Compensation

	I. 	 	     DIRECTOR COMPENSATION. Directors who are employees of, or paid consultants to, the
Company do not receive additional compensation for serving as directors of the Company. The
following table sets forth current rates of cash compensation for the Company’s
non-employee directors.

	 	 	 	 	 
	Annual retainer
	 	$	30,000	 
	 
	 	 	 	 
	Board meeting attendance fee
	 	$	1,500	 
	 
	 	 	 	 
	Audit Committee Chair annual retainer
	 	$	15,000	 
	 
	 	 	 	 
	Audit Committee meeting fee for all Audit Committee
meetings held on a date other than a Board meeting date
	 	$	2,500	 
	 
	 	 	 	 
	Corporate Governance and Nominating Committee Chair,
Incentive Stock and Compensation Committee Chair and
Ethics and Quality Assurance Committee Chair annual
retainer
	 	$	5,000	 
	 
	 	 	 	 
	Committee meeting fee for all committee meetings other
than Audit Committee held on a date other than a Board
meeting date
	 	$	1,000	 

	 	 	     The Board compensation program provides that each new Director (as defined by the
Amended and Restated 1999 Incentive Stock Plan) upon election to the Board receive 10,000
restricted shares of the Company’s common stock. Under the terms of the restricted shares,
each new Director shall have the right, among other rights, to receive cash dividends on all
of the shares and to vote such shares until the Director’s right to such shares is forfeited
of becomes nonforfeitable. These shares become nonforfeitable in equal annual installments
over four years beginning on the first anniversary of the date the shares are issued.
	 
	 	 	     In addition, the Board compensation program provides that each non-employee director
will receive 3,000 restricted shares of the Company’s common stock on an annual basis. Each
non-employee director shall have the right, among other rights, to receive cash dividends on
all of these shares and to vote such shares until the non-employee director’s right to such
shares is forfeited or becomes nonforfeitable. These shares become nonforfeitable in equal
annual installments over three years beginning on the first anniversary of the date the
shares are issued.
	 
	II.	 	     EXECUTIVE OFFICER COMPENSATION. The following table sets forth the current
annual base salaries provided to the Company’s Chief Executive Officer and most highly
compensated executive officers.

	 	 	 	 	 
	Executive Officer	 	Current Salary	 
	 

	Richard Hallworth
	 	$	500,000	 
	Michael W. Taylor
	 	 	385,000	 
	Dr. Carl J. Keldie
	 	 	340,464	 
	Lawrence H. Pomeroy
	 	 	268,148	 
	T. Scott Hoffman
	 	 	234,365	 

 

 

     In addition to their base salaries, the Company’s Chief Executive Officer and most highly
compensated executive officers are also eligible to:

	 	•	 	receive cash bonuses under the Company’s Annual Incentive Compensation Plan;

	 	•	 	participate in the Company’s long-term incentive program, which currently involves the
award of stock options or restricted stock pursuant to the Company’s Amended and Restated
1999 Incentive Stock Plan; and

	 	•	 	participate in the Company’s broad-based benefit programs generally available to its
salaried employees, including health, disability and life insurance programs, 401(k) Plan
and Employee Stock Purchase Plan.EX-4.1

Exhibit
4.1

INCORPORATED UNDER THE LAWS OF
No. A-001									17,806 Shares
COMMUNITY FIRST, INC.
Fixed Rate Cumulative Perpetual Preferred Stock, Series A
THIS CERTIFIES THAT United States Department of the Treasury is the owner of *Seventeen Thousand Eight hundred and Six*
Shares of the Capital Stock of COMMUNITY FIRST, INC. transferable only on the books of the Corporation by the holder hereof
in person or by Attorney upon surrender of this Certificate properly endorsed.
In Witness Whereof, the said Corporation has caused this Certificate to be signed by its duly authorized officers and its
Corporate seal to be hereunto affixed this 27th day of February A.D. 2009.
INCORPORATED UNDER THE LAWS OF
No. B 001									890 Shares
COMMUNITY FIRST, INC.
Fixed Rate Cumulative Perpetual Preferred Stock, Series A
THIS CERTIFIES THAT United States Department of the Treasury is the owner of *Eight Hundred and Ninety* Shares of the
Capital Stock of COMMUNITY FIRST, INC. transferable only on the books of the Corporation by the holder hereof in person
or by Attorney upon surrender of this Certificate properly endorsed.
In Witness Whereof, the said Corporation has caused this Certificate to be signed by its duly authorised officers and
 its Corporate seal to be hereunto affixed this 27th day of February A.D. 2009.
SHARES No Par Value EACH

 

 

Certificate for 17806 shares of the capital stock community first, inc. issued to united states Department of the Treasury

Date

February 27, 2009

For Value received, _________ hererby self assign and transfer unto ___________________
shares of the capital stock represented by the within certificate and do hereby irrecovably constitute and appoint ___________________ attorney to transfer the said stock on the books of the within named corporation with full power of substitution in the premises.
Dated _______________
	in presence of

NOTICE: THE  SIGNATURE OF THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS
 WRITTEN UPON THE FACE OF THE CERTIFICATE, IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT, OR ANY CHANGE WHATEVER.

THE COMPANY WILL FURNISH THE SHAREHOLDER INFORMATION REGARDING THE DESIGNATIONS,
RELATIVE RIGHTS, PREFERENCES, AND LIMITATIONS APPLICABLE TO EACH CLASS AND THE VARIATIONS
IN RIGHTS. PREFERENCES AND LIMITATIONS DETERMINED FOR EACH SERIES OF STOCK ISSUED BY THE COMPANY
(AND THE AUTHORITY OF THE BOARD OF DIRECTORS TO DETERMINE VARIATIONS FOR FUTURE SERIES) UPON REQUEST IN WRITING AND WITHOUT CHARGE.

THE SECURITIES REPRESENTED BY THIS INSTRUMENT ARE NOT SAVINGS ACCOUNTS, DEPOSITS OR OTHER OBLIGATIONS
OF A BANK AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY.

THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "SECURITIES ACT), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR
OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT
AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH
 LAWS. EACH PURCHASER OF THE SECURITIES REPRESENTED BY THIS INSTRUMENT IS NOTIFIED THAT THE SELLER MAY BE
RELYING ON THE EXEMPTION FROM SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. ANY TRANSFEREE
OF THE SECURITIES REPRESENTED BY THIS INSTRUMENT BY ITS ACCEPTANCE HEREOF (1) REPRESENTS THAT IT IS A "QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT), (2) AGREES THAT IT WILL NOT OFFER, SELL
OR OTHERWISE TRANSFER THE SECURITIES REPRESENTED BY THIS INSTRUMENT EXCEPT (A) PURSUANT TO A REGISTRATION
STATEMENT WHICH IS THEN EFFECTIVE UNDER THE SECURITIES ACT, (B) FOR SO LONG AS THE SECURITIES REPRESENTED
BY THIS INSTRUMENT ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A
“QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR
FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE
ON RULE 144A, (C) TO THE ISSUER OR (D) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THE SECURITIES REPRESENTED BY THIS INSTRUMENT
ARE TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.

THIS INSTRUMENT IS ISSUED SUBJECT TO THE RESTRICTIONS ON TRANSFER AND OTHER PROVISIONS OF A SECURITIES PURCHASE
AGREEMENT BETWEEN THE ISSUER OF THESE SECURITIES AND THE INVESTOR REFERRED TO THEREIN, A COPY OF WHICH IS ON FILE
WITH THE ISSUER. THE SECURITIES REPRESENTED BY THIS INSTRUMENT MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN
COMPLIANCE WITH SAID AGREEMENT ANY SALE OR OTHER TRANSFER NOT IN COMPLIANCE WITH SAID AGREEMENT WILL BE VOID.EX-4.2

Exhibit
4.2

UST Seq. No. 330

WARRANT TO PURCHASE PREFERRED STOCK

THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE
DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND
APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR
SUCH LAWS. THIS INSTRUMENT IS ISSUED SUBJECT TO THE RESTRICTIONS ON TRANSFER AND OTHER PROVISIONS
OF A SECURITIES PURCHASE AGREEMENT BETWEEN THE ISSUER OF THESE SECURITIES AND THE INVESTOR REFERRED
TO THEREIN, A COPY OF WHICH IS ON FILE WITH THE ISSUER. THE SECURITIES REPRESENTED BY THIS
INSTRUMENT MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH SAID AGREEMENT. ANY
SALE OR OTHER TRANSFER NOT IN COMPLIANCE WITH SAID AGREEMENT WILL BE VOID.

WARRANT

to purchase

890.00890

Shares of Preferred Stock

of Community First, Inc.

Issue Date: February 27, 2009

     1. Definitions. Unless the context otherwise requires, when used herein the following
terms shall have the meanings indicated.

     “Board of Directors” means the board of directors of the Company, including any duly
authorized committee thereof.

     “business day” means any day except Saturday, Sunday and any day on which banking institutions
in the State of New York generally are authorized or required by law or other governmental actions
to close.

     “Charter” means, with respect to any Person, its certificate or articles of incorporation,
articles of association, or similar organizational document.

     “Company” means the Person whose name, corporate or other organizational form and jurisdiction
of organization is set forth in Item 1 of Schedule A hereto.

 

 

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor
statute, and the rules and regulations promulgated thereunder.

     “Exercise Price” means the amount set forth in Item 2 of Schedule A hereto.

     “Expiration Time” has the meaning set forth in Section 3.

     “Issue Date” means the date set forth in Item 3 of Schedule A hereto.

     “Liquidation Amount” means the amount set forth in Item 4 of Schedule A hereto.

     “Original Warrantholder” means the United States Department of the Treasury. Any actions
specified to be taken by the Original Warrantholder hereunder may only be taken by such Person and
not by any other Warrantholder.

     “Person” has the meaning given to it in Section 3(a)(9) of the Exchange Act and as used in
Sections 13(d)(3) and 14(d)(2) of the Exchange Act.

     “Preferred Stock” means the series of perpetual preferred stock set forth in Item 5 of
Schedule A hereto.

     “Purchase Agreement” means the Securities Purchase Agreement — Standard Terms incorporated
into the Letter Agreement, dated as of the date set forth in Item 6 of Schedule A hereto, as
amended from time to time, between the Company and the United States Department of the Treasury
(the “Letter Agreement”), including all annexes and schedules thereto.

     “Regulatory Approvals” with respect to the Warrantholder, means, to the extent applicable and
required to permit the Warrantholder to exercise this Warrant for shares of Preferred Stock and to
own such Preferred Stock without the Warrantholder being in violation of applicable law, rule or
regulation, the receipt of any necessary approvals and authorizations of, filings and registrations
with, notifications to, or expiration or termination of any applicable waiting period under, the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations
thereunder.

     “SEC” means the U.S. Securities and Exchange Commission.

     “Securities Act” means the Securities Act of 1933, as amended, or any successor statute, and
the rules and regulations promulgated thereunder.

     “Shares” has the meaning set forth in Section 2.

     “Warrantholder” has the meaning set forth in Section 2.

     “Warrant” means this Warrant, issued pursuant to the Purchase Agreement.

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     2. Number of Shares; Exercise Price. This certifies that, for value received, the
United States Department of the Treasury or its permitted assigns (the “Warrantholder”) is
entitled, upon the terms and subject to the conditions hereinafter set forth, to acquire from the
Company, in whole or in part, after the receipt of all applicable Regulatory Approvals, if any, up
to an aggregate of the number of fully paid and nonassessable shares of Preferred Stock set forth
in Item 7 of Schedule A hereto (the “Shares”), at a purchase price per share of Preferred Stock
equal to the Exercise Price.

     3. Exercise of Warrant; Term. Subject to Section 2, to the extent permitted by
applicable laws and regulations, the right to purchase the Shares represented by this Warrant is
exercisable, in whole or in part by the Warrantholder, at any time or from time to time after the
execution and delivery of this Warrant by the Company on the date hereof, but in no event later
than 5:00 p.m., New York City time on the tenth anniversary of the Issue Date (the “Expiration
Time”), by (A) the surrender of this Warrant and Notice of Exercise annexed hereto, duly completed
and executed on behalf of the Warrantholder, at the principal executive office of the Company
located at the address set forth in Item 8 of Schedule A hereto (or such other office or agency of
the Company in the United States as it may designate by notice in writing to the Warrantholder at
the address of the Warrantholder appearing on the books of the Company), and (B) payment of the
Exercise Price for the Shares thereby purchased, by having the Company withhold, from the shares of
Preferred Stock that would otherwise be delivered to the Warrantholder upon such exercise, shares
of Preferred Stock issuable upon exercise of the Warrant with an aggregate Liquidation Amount equal
in value to the aggregate Exercise Price as to which this Warrant is so exercised.

     If the Warrantholder does not exercise this Warrant in its entirety, the Warrantholder will be
entitled to receive from the Company within a reasonable time, and in any event not exceeding three
business days, a new warrant in substantially identical form for the purchase of that number of
Shares equal to the difference between the number of Shares subject to this Warrant and the number
of Shares as to which this Warrant is so exercised. Notwithstanding anything in this Warrant to the
contrary, the Warrantholder hereby acknowledges and agrees that its exercise of this Warrant for
Shares is subject to the condition that the Warrantholder will have first received any applicable
Regulatory Approvals.

     4. Issuance of Shares; Authorization. Certificates for Shares issued upon exercise of
this Warrant will be issued in such name or names as the Warrantholder may designate and will be
delivered to such named Person or Persons within a reasonable time, not to exceed three business
days after the date on which this Warrant has been duly exercised in accordance with the terms of
this Warrant. The Company hereby represents and warrants that any Shares issued upon the exercise
of this Warrant in accordance with the provisions of Section 3 will be duly and validly authorized
and issued, fully paid and nonassessable and free from all taxes, liens and charges (other than
liens or charges created by the Warrantholder, income and franchise taxes incurred in connection
with the exercise of the Warrant or taxes in respect of any transfer occurring contemporaneously
therewith). The Company agrees that the Shares so issued will be deemed to have been issued to the
Warrantholder as of the close of business on the date on which this Warrant and payment of the
Exercise Price are delivered to the Company in accordance with

3

 

the terms of this Warrant, notwithstanding that the stock transfer books of the Company may
then be closed or certificates representing such Shares may not be actually delivered on such date.
The Company will at all times reserve and keep available, out of its authorized but unissued
preferred stock, solely for the purpose of providing for the exercise of this Warrant, the
aggregate number of shares of Preferred Stock then issuable upon exercise of this Warrant at any
time. The Company will use reasonable best efforts to ensure that the Shares may be issued without
violation of any applicable law or regulation or of any requirement of any securities exchange on
which the Shares are listed or traded.

     5. No Rights as Stockholders; Transfer Books. This Warrant does not entitle the
Warrantholder to any voting rights or other rights as a stockholder of the Company prior to the
date of exercise hereof. The Company will at no time close its transfer books against transfer of
this Warrant in any manner which interferes with the timely exercise of this Warrant.

     6. Charges, Taxes and Expenses. Issuance of certificates for Shares to the
Warrantholder upon the exercise of this Warrant shall be made without charge to the Warrantholder
for any issue or transfer tax or other incidental expense in respect of the issuance of such
certificates, all of which taxes and expenses shall be paid by the Company.

     7. Transfer/Assignment.

     (A) Subject to compliance with clause (B) of this Section 7, this Warrant and all rights
hereunder are transferable, in whole or in part, upon the books of the Company by the registered
holder hereof in person or by duly authorized attorney, and a new warrant shall be made and
delivered by the Company, of the same tenor and date as this Warrant but registered in the name of
one or more transferees, upon surrender of this Warrant, duly endorsed, to the office or agency of
the Company described in Section 3. All expenses (other than stock transfer taxes) and other
charges payable in connection with the preparation, execution and delivery of the new warrants
pursuant to this Section 7 shall be paid by the Company.

     (B) The transfer of the Warrant and the Shares issued upon exercise of the Warrant are subject
to the restrictions set forth in Section 4.4 of the Purchase Agreement. If and for so long as
required by the Purchase Agreement, this Warrant shall contain the legends as set forth in Section
4.2(a) of the Purchase Agreement.

     8. Exchange and Registry of Warrant. This Warrant is exchangeable, upon the surrender
hereof by the Warrantholder to the Company, for a new warrant or warrants of like tenor and
representing the right to purchase the same aggregate number of Shares. The Company shall maintain
a registry showing the name and address of the Warrantholder as the registered holder of this
Warrant. This Warrant may be surrendered for exchange or exercise in accordance with its terms, at
the office of the Company, and the Company shall be entitled to rely in all respects, prior to
written notice to the contrary, upon such registry.

4

 

     9. Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the Company of
evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this
Warrant, and in the case of any such loss, theft or destruction, upon receipt of a bond, indemnity
or security reasonably satisfactory to the Company, or, in the case of any such mutilation, upon
surrender and cancellation of this Warrant, the Company shall make and deliver, in lieu of such
lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the
right to purchase the same aggregate number of Shares as provided for in such lost, stolen,
destroyed or mutilated Warrant.

     10. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not be a business day,
then such action may be taken or such right may be exercised on the next succeeding day that is a
business day.

     11. Rule 144 Information. The Company covenants that it will use its reasonable best
efforts to timely file all reports and other documents required to be filed by it under the
Securities Act and the Exchange Act and the rules and regulations promulgated by the SEC thereunder
(or, if the Company is not required to file such reports, it will, upon the request of any
Warrantholder, make publicly available such information as necessary to permit sales pursuant to
Rule 144 under the Securities Act), and it will use reasonable best efforts to take such further
action as any Warrantholder may reasonably request, in each case to the extent required from time
to time to enable such holder to, if permitted by the terms of this Warrant and the Purchase
Agreement, sell this Warrant without registration under the Securities Act within the limitation of
the exemptions provided by (A) Rule 144 under the Securities Act, as such rule may be amended from
time to time, or (B) any successor rule or regulation hereafter adopted by the SEC. Upon the
written request of any Warrantholder, the Company will deliver to such Warrantholder a written
statement that it has complied with such requirements.

     12. Adjustments and Other Rights. For so long as the Original Warrantholder holds this
Warrant or any portion thereof, if any event occurs that, in the good faith judgment of the Board
of Directors of the Company, would require adjustment of the Exercise Price or number of Shares
into which this Warrant is exercisable in order to fairly and adequately protect the purchase
rights of the Warrants in accordance with the essential intent and principles of the Purchase
Agreement and this Warrant, then the Board of Directors shall make such adjustments in the
application of such provisions, in accordance with such essential intent and principles, as shall
be reasonably necessary, in the good faith opinion of the Board of Directors, to protect such
purchase rights as aforesaid.

     Whenever the Exercise Price or the number of Shares into which this Warrant is exercisable
shall be adjusted as provided in this Section 12, the Company shall forthwith file at the principal
office of the Company a statement showing in reasonable detail the facts requiring such adjustment
and the Exercise Price that shall be in effect and the number of Shares into which this Warrant
shall be exercisable after such adjustment, and the Company shall also cause

5

 

a copy of such statement to be sent by mail, first class postage prepaid, to each Warrantholder at
the address appearing in the Company’s records.

     13. No Impairment. The Company will not, by amendment of its Charter or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities
or any other voluntary action, avoid or seek to avoid the observance or performance of any of the
terms to be observed or performed hereunder by the Company, but will at all times in good faith
assist in the carrying out of all the provisions of this Warrant and in taking of all such action
as may be necessary or appropriate in order to protect the rights of the Warrantholder.

     14. Governing Law. This Warrant 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. Each of the Company and the Warrantholder agrees (a) to submit to the
exclusive jurisdiction and venue of the United States District Court for the District of Columbia
for any civil action, suit or proceeding arising out of or relating to this Warrant or the
transactions contemplated hereby, and (b) that notice may be served upon the Company at the address
in Section 17 below and upon the Warrantholder at the address for the Warrantholder set forth in
the registry maintained by the Company pursuant to Section 8 hereof. To the extent permitted by
applicable law, each of the Company and the Warrantholder hereby unconditionally waives trial by
jury in any civil legal action or proceeding relating to the Warrant or the transactions
contemplated hereby or thereby.

     15. Binding Effect. This Warrant shall be binding upon any successors or assigns of
the Company.

     16. Amendments. This Warrant may be amended and the observance of any term of this
Warrant may be waived only with the written consent of the Company and the Warrantholder.

     17. Notices. Any notice, request, instruction or other document to be given hereunder
by any party to the other will be in writing and will be deemed to have been duly given (a) on the
date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, or (b) on
the second business day following the date of dispatch if delivered by a recognized next day
courier service. All notices hereunder shall be delivered as set forth in Item 9 of Schedule A
hereto, or pursuant to such other instructions as may be designated in writing by the party to
receive such notice.

     18. Entire Agreement. This Warrant, the forms attached hereto and Schedule A hereto
(the terms of which are incorporated by reference herein), and the Letter Agreement (including all
documents incorporated therein), contain the entire agreement between the parties with

6

 

respect to the subject matter hereof and supersede all prior and contemporaneous arrangements
or undertakings with respect thereto.

[Remainder of page intentionally left blank]

7

 

[Form of Notice of Exercise]

Date:                     

TO:     Community First, Inc.

RE:     Election to Purchase Preferred Stock

     The undersigned, pursuant to the provisions set forth in the attached Warrant, hereby agrees
to subscribe for and purchase such number of shares of Preferred Stock covered by the Warrant such
that after giving effect to an exercise pursuant to Section 3(B) of the Warrant, the undersigned
will receive the net number of shares of Preferred Stock set forth below. The undersigned, in
accordance with Section 3 of the Warrant, hereby agrees to pay the aggregate Exercise Price for
such shares of Preferred Stock in the manner set forth in Section 3(B) of the Warrant.

Number of Shares of Preferred Stock:1                                                  
           

     The undersigned agrees that it is exercising the attached Warrant in full and that, upon
receipt by the undersigned of the number of shares of Preferred Stock set forth above, such Warrant
shall be deemed to be cancelled and surrendered to the Company.

	 	 	 	 	 
	 	Holder: 	 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

 

			
	1.	 	Number of shares to be received by the undersigned upon
exercise of the attached Warrant pursuant to Section 3(B) thereof.

8

 

     IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by a duly
authorized officer.

Dated: February 27, 2009

	 	 	 	 	 
	 	COMPANY: COMMUNITY FIRST, INC.

 	 
	 	By:  	/s/  Marc
R. Lively	 
	 	 	Name:  	Marc R. Lively 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	Attest:

 	 
	 	By:  	/s/  Dianne
Scroggins	 
	 	 	Name:  	Dianne Scroggins 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

[Signature Page to Warrant]

 

SCHEDULE A

Item 1 

Name: Community First, Inc.

Corporate or other organizational form: Corporation

Jurisdiction of organization: Tennessee

Item 2 

Exercise Price:2 $0.01

Item 3 

Issue Date: February 27, 2009

Item 4

Liquidation Amount: $1,000

Item 5

Series of Perpetual Preferred Stock: Fixed Rate Cumulative Perpetual Preferred Stock, Series B

Item 6

Date of Letter Agreement between the Company and the United States Department of the Treasury:
February 27, 2009

Item 7

Number of shares of Preferred Stock:3 890.00890

Item 8

			
	Company’s address:	 	501 S. James Campbell Blvd.

Columbia, TN 38401

Item 9

			
	Notice information:	 	501 S. James Campbell Blvd.

Columbia, TN 38401
Attn: Marc R. Lively

          President and Chief Executive Officer

          Telephone: (931) 490-3434

          Facsimile: (931) 388-3188

 

			
	2	 	$0.01 per share or such greater amount as the Charter
may require as the par value of the Preferred Stock.
	 
	3	 	The initial number of shares of Preferred Stock for
which this Warrant is exercisable shall include the number of shares required
to effect the cashless exercise pursuant to Section 3(B) of this Warrant (e.g.,
such number of shares of Preferred Stock having an aggregate Liquidation Amount
equal in value to the aggregate Exercise Price) such that, following exercise
of this Warrant and payment of the Exercise Price in accordance with such
Section 3(B), the net number of shares of Preferred Stock delivered to the
Warrantholder (and rounded to the nearest whole share) would have an aggregate
Liquidation Amount equal to 5% of the aggregate amount invested by the United
States Department of the Treasury on the investment date.

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