Document:

ex10-3.htm

    Exhibit
10.3

     

    United
States Department of the Treasury

    1500
Pennsylvania Avenue, NW

    Washington,
D.C. 20220

    

     

    April 10,
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.”

     

    
      
         

      

      
        78

        
          

        

      

      
         

      

    

    

     

    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]

     

    
      
         

      

      
        79

        
          

        

      

      
         

      

    

    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:

                	
                  /Neel
      Kashkari/

                
	 
      	 
      	
                  Name:

                	
                  Neel
      Kashkari

                
	 
      	 
      	
                  Title:

                	
                  Interim
      Assistant Secretary

                
	 
      	 
      	 
      	
                  For
      Financial Stability

                
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                  COMPANY:
      CITY NATIONAL

                
	 
      	
                  BANCSHARES
      CORPORATION

                
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /Edward
      R. Wright/

                
	 
      	 
      	
                  Name:

                	
                  Edward
      R. Wright

                
	 
      	 
      	
                  Title:

                	
                  Senior
      Vice President and

                
	 
      	 
      	 
      	
                  Chief
      Financial Officer

                

        

      

    

    

     

    

    80ex10-4.htm

    Exhibit
10.4

     

    April 10,
2009                                          
        

    

    United
States Department of the Treasury

    1500
Pennsylvania Avenue, NW

    Washington,
D.C. 20220

    

    City
National Bancshares Corporation

    900 Broad
Street

    Newark,
New Jersey  07102

    

    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 City National
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
$9,439,000.  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.

     

    
      
         

      

      
        81

        
          

        

      

      
         

      

    

    

     

    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]

     

     

     

     

     

     

     

    
      
         

      

      
        82

        
          

        

      

      
         

      

    

    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.

    

    

    

    

    

    
      
        
          	 
      	
                  CITY
      NATIONAL BANCSHARES 
CORPORATION

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /Edward R. Wright/

                
	 
      	
                  Name:

                	
                  Edward
      R. Wright

                
	 
      	
                  Title:

                	
                  Senior
      Vice President and CFO

                
	 
      	 
      	 
      
	 
      	
                  UNITED
      STATES DEPARTMENT OF 
THE TREASURY

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /Neel Kashkari/

                
	 
      	
                  Name:

                	
                  Neel
      Kashkari

                
	 
      	
                  Title:

                	
                  Interim
      Assistant Secretary

                
	 
      	 
      	
                  For
      Financial Stability

                

        

      

    

    

     

     

    83

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