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EXHIBIT 4.2

                               FORM OF TAX NOTICE
                             FOR EXERCISE OF OPTIONS

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                 TAX ISSUES RELATED TO EXERCISE OF STOCK OPTIONS

         This   memorandum   reviews  the  tax  effects  upon  the  exercise  of
"Non-Incentive  Stock Options"  ("NSOs") under the Guaranty Federal  Bancshares,
Inc. 2000 Stock Compensation Plan.

         Upon the  exercise of an NSO, the amount by which the fair market value
of the shares on the date of exercise  exceeds the exercise  price will be taxed
to the optionee as ordinary income.  The Company will be entitled to a deduction
in  the  same  amount,  provided  it  makes  all  required  withholdings  on the
compensation  element of the exercise.  In general,  the optionee's tax basis in
the shares  acquired by  exercising  an NSO is equal to the fair market value of
such shares on the date of exercise.  Upon a subsequent  sale of any such shares
in a  taxable  transaction,  the  optionee  will  realize  capital  gain or loss
(long-term  or  short-term,  depending  on whether the shares were held for more
than 12 months before the sale) in an amount equal to the difference between his
or her basis in the shares and the sale price.

         Special  rules  apply if an  optionee  pays  the  exercise  price  upon
exercise of NSOs with previously  acquired shares of stock.  Except as described
below with respect to shares  acquired  pursuant to ISOs,  such a transaction is
treated as a  tax-free  exchange  of the old  shares for the same  number of new
shares.  To that extent,  the optionee's  basis in the new shares is the same as
his or her basis in the old shares, i.e., there is a carryover of basis, and the
capital gain holding period runs without interruption from the date when the old
shares were  acquired.  The value of any new shares  received by the optionee in
excess of the number of old shares  surrendered  less any cash the optionee pays
for the new shares will be taxed as ordinary income. The optionee's basis in the
additional  shares is equal to the fair market  value of such shares on the date
the shares were  transferred,  and the capital gain holding period  commences on
the same date.  The effect of these  rules is to defer the date when any gain in
the old  shares  that  are used to buy new  shares  must be  recognized  for tax
purposes.  Stated  differently,  these  rules  allow an  optionee to finance the
exercise of an NSO by using shares of stock that he or she already owns, without
paying  current  tax on any  unrealized  appreciation  in the  value of all or a
portion of those old shares.EXHIBIT 4.3

                               FORM OF TAX NOTICE
                         FOR AWARDS OF RESTRICTED STOCK

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                    TAX NOTICE FOR AWARDS OF RESTRICTED STOCK

         The awards  granted under the Guaranty  Federal  Bancshares,  Inc. 2000
Stock  Compensation  Plan (the "Plan") will be in the form of Common Stock which
shall  vest  in  five  installments  at  the  rate  of 20% of  such  shares  per
installment.  Taxable  compensation equal to the fair market value of the Common
Stock at the date of vesting of each such stock award will be recognized by each
participant in the Plan.

         Federal Tax Consequences of Awards.
         -----------------------------------

         1.       Stock  awarded  under  the Plan is  generally  taxable  to the
                  participant  at the time that such  awards  become 100% vested
                  and non-forfeitable,  based upon the fair market value of such
                  stock at the time of such vesting.  Therefore,  the vesting of
                  stock  as of  February  17,  2001,  and  annually  thereafter,
                  constitutes an tax event.

         2.       A participant  may make an election  pursuant to Section 83(b)
                  of the Internal  Revenue Code  ("Code")  within 30 days of the
                  date of the  transfer of an award to elect to include in gross
                  income for the current  taxable  year the fair market value of
                  such stock as of the date of the  transfer  of an award.  Such
                  election  must be filed  with  the  Internal  Revenue  Service
                  within 30 days of the date of the transfer of the stock award.
                  Therefore,  such an election  may be filed for stock awards to
                  vest at a future date.

         3.       Tax withholding  obligations related to stock awards that vest
                  may be satisfied by the participant paying the Bank (by check)
                  an amount sufficient to satisfy applicable withholding taxes.

         For example,  suppose  that an employee was  scheduled to vest in 1,000
shares  having a fair  market  value  equal  to $20 per  share  ($20,000  in the
aggregate).  Assuming the employee's  liability for  withholding  and employment
taxes totaled 45% of the ordinary income being recognized,  the amount necessary
to pay such taxes would be 45% of $20,000 or $9,000.  The employee  will pay the
Bank $9,000. The employee would recognize $20,000 of ordinary income.

         For individuals who are subject to the short-swing  profit rule imposed
under Section 16 of the Securities  Exchange Act of 1934, if shares are withheld
in  satisfaction  of the  withholding  taxes  then  such  withholding  should be
reported on a Form 4 or 5 to be filed with the SEC.EXHIBIT 4.4

                FORM OF STOCK OPTION AGREEMENT TO BE ENTERED INTO
                   WITH RESPECT TO NON-INCENTIVE STOCK OPTIONS

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                             STOCK OPTION AGREEMENT
                             ----------------------

                         FOR NON-INCENTIVE STOCK OPTIONS
                                 PURSUANT TO THE
                        GUARANTY FEDERAL BANCSHARES, INC.
                          2000 STOCK COMPENSATION PLAN
                          ----------------------------

         STOCK  OPTIONS for a total of ______ shares of Common Stock of Guaranty
Federal  Bancshares,  Inc. (the "Company") is hereby granted to ________________
(the  "Optionee")  at the price  determined  as provided in, and in all respects
subject to the terms,  definitions and provisions of the 2000 Stock Compensation
Plan (the  "Plan")  adopted by the Company  which is  incorporated  by reference
herein,  receipt  of which is hereby  acknowledged.  Such  Stock  Options do not
comply with Options  granted under  Section 422 of the Internal  Revenue Code of
1986, as amended.

         1.       Option Price.  The Option price is  $_______ for  each  Share,
                  ------------
being 100% of the fair market  value,  as determined  by the  Committee,  of the
Common Stock on the date of grant of this Option.

         2.       Exercise of  Option.  This  Option  shall  be  exercisable  in
                  ------------------
accordance with provisions of the Plan as follows:

                  (a)      Schedule of Rights to Exercise.

                                                      Percentage of Total Shares
                                                           Awarded Which Are
                      Date           Options                Non-forfeitable
                      ----           -------                ---------------

Upon grant........................      0                         0%
As of.............................   _______                      20%
As of.............................   _______                      40%
As of.............................   _______                      60%
As of.............................   _______                      80%
As of.............................   _______                     100%

         Options  shall  continue  to vest  annually  provided  that such holder
remains an employee, director or director's emeritus of Guaranty Federal Savings
Bank or the Company.  Notwithstanding  any  provisions  in this Section 2, in no
event shall this Option be exercisable prior to six months following the date of
grant.  Options shall be 100% vested and exercisable upon the death,  Retirement
or Disability of the Optionee, or upon a Change in Control of the Company.

<PAGE>

                  (b) Method of Exercise.  This Option shall be exercisable by a
written notice which shall:

                             (i) State the election to exercise the Option,  the
         number of  Shares  with  respect  to which it is being  exercised,  the
         person in whose name the stock  certificate  or  certificates  for such
         Shares of Common  Stock is to be  registered,  his  address  and Social
         Security  Number (or if more than one, the names,  addresses and Social
         Security Numbers of such persons);

                            (ii) Contain such  representations and agreements as
         to the holder's investment intent with respect to such shares of Common
         Stock as may be satisfactory to the Company's counsel;

                           (iii) Be signed by the person or persons  entitled to
         exercise the Option and, if the Option is being exercised by any person
         or  persons  other  than  the  Optionee,   be   accompanied  by  proof,
         satisfactory to counsel for the Company, of the right of such person or
         persons to exercise the Option; and

                            (iv) Be  in  writing  and  delivered in person or by
certified mail to the Treasurer of the Company.

         Payment of the  purchase  price of any Shares with respect to which the
Option is being  for  shares of  Common  Stock as to which the  Option  shall be
exercised  shall be registered  in the name of the person or persons  exercising
the Option.

                  (c) Restrictions on Exercise. This Option may not be exercised
                      ------------------------
if the issuance of the Shares upon such exercise would constitute a violation of
any applicable federal or state securities or other law or valid regulation.  As
a condition to the Optionee's  exercise of this Option,  the Company may require
the person exercising this Option to make any representation and warranty to the
Company as may be required by any applicable law or regulation.

         3.    Non-transferability of Option. This Option may not be transferred
               -----------------------------
in any manner  otherwise than by will or the laws of descent or distribution and
may be exercised  during the lifetime of the Optionee only by the Optionee.  The
terms of this Option shall be binding upon the executors, administrators, heirs,
successors and assigns of the Optionee.

                                       -2-

<PAGE>

         4. Term of Option.  This Option may not be exercised more than ten (10)
            --------------
years  from the date of grant of this  Option,  as set forth  below,  and may be
exercised  during  such term only in  accordance  with the Plan and the terms of
this Option.

         5. Related Matters.  Notwithstanding  anything  herein to the contrary,
            ---------------
additional  conditions or restrictions  related to such Options may be contained
in the Plan or the resolutions of the Plan Committee  authorizing  such grant of
Options.

                                           Guaranty Federal Bancshares, Inc.

Date of Grant:                             By:
                ----------------------         ---------------------------------

Attest:

-------------------------

[SEAL]

                                       -3-

<PAGE>

                    NON-INCENTIVE STOCK OPTION EXERCISE FORM
                    ----------------------------------------

                                 PURSUANT TO THE
                        GUARANTY FEDERAL BANCSHARES, INC.
                          2000 STOCK COMPENSATION PLAN

                                                  __________________________
                                                                      (Date)

Guaranty Federal Bancshares, Inc.
1341 W. Battlefield
Springfield, Missouri 65807

Dear Sir:

         The undersigned  elects to exercise the  Non-Incentive  Stock Option to
purchase __________shares of Common Stock of Guaranty Federal  Bancshares,  Inc.
under and pursuant to a Stock Option Agreement dated _________________.

         Delivered  herewith is a certified or bank  cashier's or teller's check
and/or shares of Common  Stock,  valued at the fair market value of the stock on
the date of exercise, as set forth below.

                              $____________________  of cash or check
                               ____________________  of Common Stock
                              $                      Total
                               ====================

         The name or names to be on the stock  certificate or  certificates  and
the address and Social Security Number of such person(s) is as follows:

         Name________________________________

         Address_____________________________

         Social Security Number____________________

                                                    Very truly yours,

                                                    ____________________________

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