Document:

Exhibit 10.4

 

FIRST AMENDMENT TO

AMENDED AND RESTATED CHANGE IN CONTROL SEVERANCE AGREEMENT

 

 

THIS FIRST AMENDMENT to the
AMENDED AND RESTATED CHANGE IN CONTROL
SEVERANCE AGREEMENT dated as of the 14th day of December 2007, among First Federal
Bancshares of Arkansas, Inc., a Texas corporation (the “Corporation”),
First Federal Bank, a federally chartered savings bank (the “Bank”), and                     
(the “Executive”) (the “Amended and Restated Agreement”).  The Corporation and the Bank are collectively
referred to as the “Employers”.

 

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 18 of
the Amended and Restated Agreement shall become Section 19 and the
following new Section 18 added -

 

18.       Compliance with Troubled
Asset Purchase Program (“TARP”)

 

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 Section 2 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.

 

2.                                       Entire
Agreement and Waiver.  The Amended and
Restated Agreement, as amended by the 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, covenants, conditions and provisions of the
Amended and Restated Agreement and those of this First Amendment, the terms,
covenants, 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, covenants, 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

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVEExhibit No. 4.1

 

	
  NUMBER

  	
   

  	
  SHARES

  
	
  * 01 *

  	
   

  	
  * 7,462*

  
	
   

  	
  CITIZENS
  BANCSHARES

  CORPORATION

  	
   

  
	
   

  	
  INCORPORATED
  UNDER THE LAWS OF THE STATE OF GEORGIA

  	
   

  

 

Transfer of this stock is restricted in accordance with

conditions printed on the reverse of this certificate.

 

THIS CERTIFIES THAT      UNITED STATES DEPARTMENT OF THE TREASURY

 

is the
owner of              SEVEN THOUSAND FOUR
HUNDRED AND SIXTY TWO

 

FULLY
PAID AND NON-ASSESSABLE SHARES OF

FIXED
RATE CUMULATIVE PERPETUAL PREFERRED STOCK, SERIES A, NO PAR VALUE, OF

 

CITIZENS BANCSHARES CORPORATION

 

(hereinafter called the “Company”).  The Company will furnish, without charge, a
summary of the designations, relative rights, preferences and limitations
applicable to the Fixed Rate Cumulative Perpetual Preferred Stock, Series A,
of the Company, the variations in rights, preferences and limitations
determined for each series and the authority of the board of directors to
determine variations for future series, upon written request. The shares
represented by this certificate are transferable on the books of the Company by
said owner or by his or her duly authorized attorney, upon the surrender of
this Certificate properly endorsed.

 

IN WITNESS
WHEREOF, the Company has caused this Certificate to be signed by its duly
authorized officers and its corporate seal to be hereunto affixed.

 

Date:  March 6, 2009.

 

	
  [SEAL]

  
	
   

  
	
  /s/ Cynthia
  Day

  	
   

  	
  /s/ James E.
  Young

  
	
  Cynthia Day

  	
   

  	
  James E. Young

  
	
  Secretary

  	
   

  	
  President & Chief Executive Officer

  

 

UST Sequence Number: 318

 

 

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.

 

THE
FOLLOWING ABBREVIATIONS, WHEN USED IN THE INSCRIPTION ON THE FACE OF THIS
CERTIFICATE, SHALL BE CONSTRUED AS THOUGH THEY WERE WRITTEN OUT IN FULL
ACCORDING TO APPLICABLE LAWS OR REGULATIONS:

 

	
  TEN COM

  	
  -

  	
  AS TENANTS IN COMMON

  	
  UGMA/(STATE)

  	
   

  	
  CUSTODIAN

  	
   

  
	
  TEN ENT

  	
  -

  	
  AS TENANTS BY THE ENTIRETIES

  	
  (CUSTODIAN)

  	
  (MINOR)

  
	
  JTWROS

  	
  -

  	
  AS JOINT TENANTS WITH RIGHT OF SURVIVORSHIP AND
  NOT AS TENANTS IN COMMON

  	
   

  UNDER
  THE UNIFORM GIFT TO MINORS ACT/(STATE)

  

 

For value received,
                                        
hereby sell, assign and transfer unto

 

	
  PLEASE
  INSERT SOCIAL SECURITY OR OTHER

  IDENTIFYING NUMBER OF ASSIGNEE

  	
   

  	
   

  

 

(PLEASE PRINT OR
TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

 

                                                                                                                                                                                                        Shares
represented by the within Certificate, and do hereby irrevocably constitute and
appoint                             Attorney
to transfer the said shares on the records of the within-named Company with
full power of substitution in the premises.

 

	
   

  	
   

  
	
  (DATE)

  
	
   

  
	
   

  	
  AND

  
	
  (SIGNATURE: THE SIGNATURE ON
  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.)

  
	
   

  
	
   

  
	
  (SIGNATURE GUARANTEE:
  SIGNATURE MUST BE GUARANTEED BY A COMMERCIAL BANK, A SAVINGS AND LOAN ASSOCIATION
  OR A TRUST COMPANY IN THE UNITED STATES OR BY A MEMBER FIRM OF ANY NATIONAL
  SECURITIES EXCHANGE OR OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS,
  INC.)

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