Document:

Exhibit No. 10.3

 

March 6,
2009

 

United
States Department of the Treasury

1500
Pennsylvania Avenue, NW

Washington,
D.C. 20220

 

Citizens Bancshares Corporation

75 Piedmont Avenue, N.E.

Atlanta, Georgia 30303

 

Ladies
and Gentlemen:

 

Reference
is made to that certain Letter Agreement incorporating the Securities Purchase
Agreement — Standard Terms dated of even date herewith (the “Securities Purchase Agreement”) by and among United States
Department of Treasury (“Investor”) and Citizens Bancshares Corporation (“Company”).  Investor
and Company desire to set forth herein certain modifications to the Securities
Purchase Agreement and related documents regarding the Company’s obligations to
create, issue and register the Warrant Preferred Stock, Warrant and Warrant
Shares (collectively, and without limitation, the “Warrant
Obligations”).  Capitalized
terms used herein but not defined shall have the meaning assigned them in the
Securities Purchase Agreement.

 

Pursuant
to Section 113(d)(3) of the Emergency Economic Stabilization Act of
2008, Investor has the discretion to exempt certain financial institutions
receiving funds through the Investor’s Capital Purchase Program (“CPP”) from Warrant Obligations.  Investor has elected to exercise its
discretion in favor of those financial institutions that are certified as
Community Development Financial Institutions (“CDFIs”),
and for whom the Purchase Price of the CPP investment is $50 million or less.

 

Company
has represented to us it maintains its status as a CDFI and will receive an
investment pursuant to the CPP with a Purchase Price of $7,462,000.  Accordingly, Investor agrees to exempt
Company from the Warrant Obligations under the Securities Purchase Agreement
and under any other documents required to effect Investor’s investment in
Company (collectively, and without limitation, the “Transaction
Documents”).  Any and all
references in the Transaction Documents with respect to the Warrant Obligations
shall be inapplicable and of no effect upon Company.

 

This
letter agreement constitutes the entire agreement, and supersedes all other
prior agreements, understandings, representations and warranties, both written
and oral, between the parties with respect to the subject matter hereof.

 

This
letter agreement may be executed in counterparts, each of which shall be deemed
an original and all of which shall together constitute one and the same
instrument.  This letter agreement shall
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.    [Remainder of this page intentionally left blank]

 

UST Sequence Number: 318

 

 

In
witness whereof, this letter agreement has been duly executed by the authorized
representatives of the parties hereto as of the date first above written.

 

	
   

  	
  CITIZENS BANCSHARES 

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James E. Young

  
	
   

  	
   

  	
  James E. Young

  
	
   

  	
   

  	
  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UNITED
  STATES DEPARTMENT OF THE 

  TREASURY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Neel Kashkari

  
	
   

  	
   

  	
  Name: Neel Kashkari

  
	
   

  	
   

  	
  Title: Interim Assistant
  Secretary for 

  Financial StabilityExhibit No. 10.4

 

UST Seq. No. 318

 

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”).  Investor and the Company desire to amend the
Securities Purchase Agreement as follows:

 

1.             Section 2.1(a) of the
Securities Purchase Agreement is amended to read in its entirety as follows:

 

“(a)         [Intentionally Omitted.]”

 

2.             Section 2.1(c) of the
Securities Purchase Agreement is amended to read in its entirety as follows:

 

“(c)         “Previously
Disclosed”
means information set forth or incorporated in the Company’s Annual Report on Form 10-K
for the most recently completed fiscal year of the Company filed with the
Primary Federal Securities Regulator prior to the execution and delivery of
this Agreement (the “Last Fiscal Year”)
or in its other reports and forms filed with or furnished to the Primary
Federal Securities Regulator as contemplated under Sections 13(a), 14(a) or
15(d) of the Exchange Act on or after the last day of the Last Fiscal Year
and prior to the execution and delivery of this Agreement.  “Primary
Federal Securities Regulator” means the SEC or the primary federal
bank regulator with which the Company files its reports, registration
statements, proxy statements and other filings under the Exchange Act.  If the Company is required to make filings
with a Primary Federal Securities Regulator other than the SEC, all references
in this Agreement to the SEC shall be deemed to refer to the Company’s Primary
Federal Securities Regulator.”

 

                3.             The
definition of “Registrable Securities” in Section 4.5(l)(iv) of the
Securities Purchase Agreement is amended by adding the following sentence at
the end thereof:

 

“Notwithstanding anything in
this Section 4.5(l)(iv) to the contrary, Registrable Securities shall
not include any securities of the Company that are referred to in Section 3(a) of
the Securities Act; provided, however, that in the event that the
Company’s Primary Federal Securities Regulator is not the SEC, the
Company shall take such actions (if any) as are provided for under such Primary
Federal Securities Regulator’s rules in order to permit the resale of
Registrable Securities by the Holders in accordance with such rules.”

 

 

From
and after the date hereof, each reference in the Securities Purchase Agreement
to “this 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 and each reference in the Securities Purchase Agreement
to “this Securities Purchase Agreement” or words of like import shall mean and
be a reference to 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 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:

  
	
   

  	
  CITIZENS BANCSHARES CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ James E. Young

  
	
   

  	
   

  	
  James E. Young

  
	
   

  	
   

  	
  President and Chief Executive OfficerExhibit No. 10.5

 

CITIZENS
BANCSHARES CORPORATION

 

 

Senior Executive Officer Waiver

 

 

In consideration for the benefits I will
receive as a result of my employer’s participation in the United States
Department of the Treasury’s TARP Capital Purchase Program, I hereby
voluntarily waive any claim against the United States or any state or territory
thereof or my employer or any of its directors, officers, employees and agents
for any changes to my compensation or benefits that are required in order to
comply with Section 111 of the Emergency Economic Stabilization Act of
2008, as amended (“EESA”), and
rules, regulations, guidance or other requirements issued thereunder
(collectively, the “EESA Restrictions”).

 

I acknowledge that the EESA Restrictions may
require modification of the employment, compensation, bonus, incentive,
severance, retention and other benefit plans, arrangements, policies and
agreements (including so-called “golden parachute” agreements), whether or not
in writing, that I have with my employer or in which I participate as they
relate to the period the United States holds any equity or debt securities of
my employer acquired through the TARP Capital Purchase Program and I hereby
consent to all such modifications.  I
further acknowledge and agree that if my employer notifies me in writing that I
have received payments in violation of the EESA Restrictions, I shall repay the
aggregate amount of such payments to my employer no later than fifteen business
days following my receipt of such notice.

 

This waiver includes all claims I may have
under the laws of the United States or any other jurisdiction related to the
requirements imposed by the EESA Restrictions (including without limitation,
any claim for any compensation or other payments or benefits I would otherwise
receive absent the EESA Restrictions, any challenge to the process by which the
EESA Restrictions were adopted and any tort or constitutional claim about the
effect of the foregoing on my employment relationship) and I hereby agree that
I will not at any time initiate, or cause or permit to be initiated on my
behalf, any such claim against the United States, my employer or its directors,
officers, employees or agents in or before any local, state, federal or other
agency, court or body.

 

(Remainder of page intentionally left
blank)

 

 

 

In witness whereof, I execute this waiver on
my own behalf, thereby communicating my acceptance and acknowledgement to the
provisions herein.

 

	
   

  	
  Respectfully,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
  Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}]]