Document:

ex10_4.htm

   Exhibit 10.4

Written Description of

2012 Executive Incentive Compensation Annual Plan –

Chief Lending Officer

The following is a description of the material terms of the 2012 Executive Incentive Compensation Annual Plan (the “Plan”) that was adopted by the Compensation Committee (the “Committee”) of the Board of Directors of Guaranty Federal Bancshares, Inc. (the “Company”) with respect to the bonus payable to H. Michael Mattson, the Company’s Chief Lending Officer (the "Executive"), for 2012:

The Plan will pay a maximum of $61,600 of which twenty-five percent (25%) of the bonus amount will be paid in cash and seventy-five percent (75%) will be paid in the form of restricted stock grants.  There are three possible levels of incentive awards: threshold (25%); target (50%); and maximum (100%).  For any bonus amount to be paid, the threshold level of performance must be achieved.  The bonus amount will be prorated for performance achievements between the threshold and target levels and between the target and maximum levels.  The four performance measurements of the Company (and the weight given to each measurement) applicable to each award level are as follows: (i) revenue growth (25%); (ii) net interest margin (25%); (iii) pre-tax net income (25%); and (iv) adversely classified assets to tier 1 capital and allowance for loan losses (25%). The following minimum criteria must all be satisfied before an award is paid under the Plan: (i) net income of the Company for calendar year 2012 of at least 75% of approved budget; (ii) satisfactory audits as determined by the Board of Directors of the Company after review of findings from regulatory examination reports and applicable audits and reviews; (iii) no restatement of income for any prior period previously released; (iv) the bank’s tier 1 leverage capital and total risk-based capital ratios must not fall below 9% and 12%, respectively, and adversely classified assets to tier 1 capital and allowance for loan losses must not exceed 50%; (v) satisfactory performance appraisal, actively employed by Guaranty Bank, and in good standing at the time the bonus is paid, which will not be prior to the public release of earnings in 2013 for the calendar year 2012; and (vi) the Board of Directors of the Company retains the right to make the final determination of the bonus payment and amount, if any, and may consider other pertinent facts prior to making an award of restricted stock.

The Plan also includes a provision requiring the "clawback" of any bonus paid to the Executive under the Plan.  In the event that any payment under the Plan was based on materially inaccurate financial statements or any other materially inaccurate performance metric criteria, the Executive shall immediately pay back such payment to the Company.  In addition, in the event that, after a payment has been made under the Plan, the Executive voluntarily terminates his employment and at the time of such termination Guaranty Bank has a composite rating lower than 2 under the CAMELS rating system, the Executive shall immediately pay back the full amount of such bonus amount upon such voluntary termination of employment.

 

The Plan also includes vesting and holding periods for the restricted stock grants.  The vesting period for these grants shall be two (2) years from the date of grant.  Also, the Executive agrees not to sell, transfer or otherwise dispose of such shares for a period of three (3) years from the date of the award.  Exceptions to such restriction on sale, transfer or disposition may be granted for hardship circumstances to be determined by the Committee.ex10_5.htm

Exhibit 10.5

 

Written Description of

2012 Executive Incentive Compensation Annual Plan -

Chief Credit Officer

The following is a description of the material terms of the 2012 Executive Incentive Compensation Annual Plan (the “Plan”) that was adopted by the Compensation Committee (the “Committee”) of the Board of Directors of Guaranty Federal Bancshares, Inc. (the “Company”) with respect to the bonus payable to Sheri Biser, the Company’s Chief Credit Officer (the "Executive"), for 2012:

The Plan will pay a maximum of $56,400 of which twenty-five percent (25%) of the bonus amount will be paid in cash and seventy-five percent (75%) will be paid in the form of restricted stock grants.  There are three possible levels of incentive awards: threshold (25%); target (50%); and maximum (100%).  For any bonus amount to be paid, the threshold level of performance must be achieved.  The bonus amount will be prorated for performance achievements between the threshold and target levels and between the target and maximum levels.  The four performance measurements of the Company (and the weight given to each measurement) applicable to each award level are as follows: (i) revenue growth (25%); (ii) net interest margin (25%); (iii) pre-tax net income (25%); and (iv) adversely classified assets to tier 1 capital and allowance for loan losses (25%). The following minimum criteria must all be satisfied before an award is paid under the Plan: (i) net income of the Company for calendar year 2012 of at least 75% of approved budget; (ii) satisfactory audits as determined by the Board of Directors of the Company after review of findings from regulatory examination reports and applicable audits and reviews; (iii) no restatement of income for any prior period previously released; (iv) the bank’s tier 1 leverage capital and total risk-based capital ratios must not fall below 9% and 12%, respectively, and adversely classified assets to tier 1 capital and allowance for loan losses must not exceed 50%; (v) satisfactory performance appraisal, actively employed by Guaranty Bank, and in good standing at the time the bonus is paid, which will not be prior to the public release of earnings in 2013 for the calendar year 2012; and (vi) the Board of Directors of the Company retains the right to make the final determination of the bonus payment and amount, if any, and may consider other pertinent facts prior to making an award of restricted stock.

The Plan also includes a provision requiring the "clawback" of any bonus paid to the Executive under the Plan.  In the event that any payment under the Plan was based on materially inaccurate financial statements or any other materially inaccurate performance metric criteria, the Executive shall immediately pay back such payment to the Company.  In addition, in the event that, after a payment has been made under the Plan, the Executive voluntarily terminates his employment and at the time of such termination Guaranty Bank has a composite rating lower than 2 under the CAMELS rating system, the Executive shall immediately pay back the full amount of such bonus amount upon such voluntary termination of employment.

 

The Plan also includes vesting and holding periods for the restricted stock grants.  The vesting period for these grants shall be two (2) years from the date of grant.  Also, the Executive agrees not to sell, transfer or otherwise dispose of such shares for a period of three (3) years from the date of the award.  Exceptions to such restriction on sale, transfer or disposition may be granted for hardship circumstances to be determined by the Committee.FIRST AMENDMENT
TO STOCK PURCHASE AGREEMENT

 

Reference is made to that
certain Stock Purchase Agreement (the “Agreement”) dated as of October 18, 2011 by and among Nevada Gold &
Casinos, Inc., a Nevada corporation (“Nevada Gold”), NG South Dakota, LLC, a South Dakota limited liability
company and a wholly-owned subsidiary of Nevada Gold (the “Purchaser”), A.G. Trucano, Son & Grandsons, Inc.,
a South Dakota corporation (the “Corporation”), and each of the stockholders of the Corporation listed in Exhibit
A to the Agreement and signatories thereto (each a “Seller” and, collectively, the “Sellers”).

 

WHEREAS, the parties desire
to amend the Agreement as set forth in this First Amendment to Stock Purchase Agreement (this “First Amendment”)
dated as of January 27, 2012.

 

NOW, THEREFORE, in consideration
of the premises and upon the terms and subject to the conditions set forth herein, the parties hereby agree to amend the Agreement
as follows:

 

1.Capitalized
terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Agreement. 

 

2.The first sentence
of Section 3.1 (Purchase Price) of the Agreement is hereby deleted in its entirety and replaced with the following:

 

“As consideration
for the sale, assignment, transfer, conveyance and delivery of the Stock by the Sellers to the Purchaser, and subject to the adjustments
provided in Section 3.3, the Purchaser shall pay to the Sellers’ Representative (as defined in Section 14.7)
the aggregate purchase price of $5,135,324 (the “Purchase Price”) plus the Consideration Shares (as defined
in Section 3.4) issued by Nevada Gold to Michael Trucano, individually. The Purchase Price shall be paid as follows:”

 

3.Section 3.1(e) of
the Agreement is hereby deleted in its entirety and replaced with the words “[Intentionally Omitted];”

 

4.Section 3.1(f) of
the Agreement is hereby deleted in its entirety and replaced with the following:

 

(f)plus
$60,324, to be evidenced by and paid by the Purchaser in accordance with a promissory note issued by the Purchaser to the Sellers’
Representative in the original principal amount of $60,324, without interest, in substantially the form of the Second Promissory
Note attached as Exhibit G hereto (the “Third Promissory Note”), which Third Promissory Note shall be
payable on the one-year anniversary following the date of issuance and shall be secured by a first lien and security interest on
the assets of the Corporation, including a pledge of the common stock acquired by Purchaser at Closing, pursuant to the Security
Agreement;

    	 

    	 

    
 

 

5.Section 3.4 (Nevada
Gold Common Stock) of the Agreement is hereby deleted in its entirety and replaced with the following:

 

“At Closing, Nevada Gold
shall issue to Michael Trucano, individually, a certificate representing 13,223 shares of Nevada Gold Common Stock having a value
per share equal to the Average Share Price of $1.89 (the “Consideration Shares”). The certificate for the Consideration
Shares to be issued to Michael Trucano (and to any permitted transferee of Michael Trucano who is the beneficial owner of the Consideration
Shares) shall bear substantially the following legend:

 

“THE SHARES OF COMMON STOCK REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND
MAY NOT BE SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED WITHOUT REGISTRATION UNDER THE SECURITIES ACT OR AN EXEMPTION
THEREFROM.”

 

6.Section 3.5
(Repurchase Rights) of the Agreement is hereby deleted in its entirety and replaced with the words “[Intentionally
Omitted].”

 

7.EXHIBIT
A of the Agreement is hereby deleted in its entirety and replaced with the following:

 

“EXHIBIT
A

	Seller Name	Class and Number of Shares of Stock Owned	Stock Certificate No(s).
	 	 	 
	Michael Trucano	5 Shares of Common Stock	No. 18
	Michael Trucano	30 Shares of Common Stock	No. 25
	Michael Trucano	147 Shares of Common Stock	No. 28
	Michael Trucano	10 Shares of Common Stock	No. 30
	Michael Trucano	10 Shares of Common Stock	No. 40
	Michael Trucano	4 Shares of Common Stock	No. 60
	Michael Trucano	4 Shares of Common Stock	No. 66
	Michael Trucano	9 Shares of Common Stock	No. 100
	 	 	 
	Patricia Burns	90 Shares of Common Stock	No. 50”

 

 

8.Except as
amended hereby, the Agreement remains unmodified and in full force and effect, and the same is hereby ratified and reaffirmed in
its entirety.

 

9.This First
Amendment may be executed in one or more counterparts.

 

[Signature page
follows]

    	 

    	 

    
 

 

 

[Signature
page to First Amendment to Stock Purchase Agreement]

 

IN
WITNESS WHEREOF, the undersigned have executed and delivered or caused to be executed and delivered by its duly authorized officers
this First Amendment as of the 27th day of January, 2012.

 

 

	 	SELLERS:	 
	 	 	 	 
	 	/s/ Michael Trucano	 
	 	Michael Trucano	 
	 	 	 	 
	 	/s/ Anthony Burns	 
	 	Patricia Burns, by Anthony Burns power of attorney
	 	 	 	 
	 	 	 	 
	 	CORPORATION:	 
	 	 	 	 
	 	A.G. TRUCANO, SON &	 
	 	GRANDSONS, INC.	 
	 	 	 	 
	 	By:	/s/ Michael Trucano	 
	 	Name:	Michael Trucano	 
	 	Title:	President	 
	 	 	 	 
	 	NEVADA GOLD:	 
	 	 	 	 
	 	NEVADA GOLD & CASINOS, INC.
	 	 	 	 
	 	By:	Robert B. Sturges	 
	 	Name:	Robert B. Sturges	 
	 	Title:	Chief Executive Officer	 
	 	 	 	 
	 	PURCHASER:	 
	 	 	 	 
	 	NG SOUTH DAKOTA, LLC	 
	 	 	 	 
	 	By:	/s/Robert B. Sturges	 
	 	Name:	Robert B. Sturges	 
	 	Title:	Manager

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