FIRST FEDERAL BANKSHARES, INC.
FIRST AMENDMENT TO THE
EMPLOYMENT AGREEMENT
FOR
XXXXXXX X. XXXXXXX
This First Amendment is made effective as of the 1st day of July, 2007 by
and between First Federal Bankshares, Inc., a Delaware corporation (the
"Company"), with its principal administrative office at 000 Xxxxxx Xxxxxx, Xxxxx
Xxxx, Xxxx 00000, and Xxxxxxx X. Xxxxxxx ("Executive").
WHEREAS, the Company and Executive entered into an employment agreement as
of January 4, 2006 (the "Agreement"); and
WHEREAS, the Company and Executive have mutually agreed to revise certain
terms of the Agreement as described herein.
NOW, THEREFORE, in consideration of the premises and the mutual covenants
and conditions hereinafter set forth, the Company and Executive hereby agree to
amend the Agreement as follows.
1. Section 3(a) of the Agreement is hereby amended in its entirety as
follows:
(a) The compensation specified under this Agreement shall constitute
the salary and benefits paid for the duties described in Section 2(b).
(1) In consideration of the services rendered (and to be
rendered) by Executive hereunder, for the period January 4, 2006 to
December 31, 2006, the Company paid Executive a salary of $230,000 and
an automobile allowance of $871.00 per month.
(2) For the period January 1, 2007 to June 30, 2007, the Company
paid Executive a salary of $242,850.24, in exchange for Executive's
relinquishing of his right to receive reimbursement for use of an
automobile, which was promised to Executive under Section 5 of the
Agreement.
(3) Effective June 22, 2007, in exchange for Executive's agreeing
to reduce his salary under the Agreement, the Company granted
Executive stock appreciation rights on 19,701 shares of the Company's
common stock.
(4) Effective July 1, 2007, the Company shall pay Executive a
salary of not less than $218,565.12 ("Base Salary"). Such Base Salary
shall be payable semi-monthly, or in accordance with the Company's
normal payroll practices.
(5) During the period of this Agreement, Executive's Base Salary
shall be reviewed at least annually. Such review shall be conducted by
a Committee designated by the Board of Directors of the Company and
the Board of Directors of the Bank (collectively the "Boards"), and
the Boards may increase, but not decrease, Executive's Base Salary
(any increase in Base Salary shall become the "Base Salary" for
purposes of this Agreement). In addition to the Base Salary provided
in this Section 3(a), the Company and/or its subsidiaries shall
provide Executive at no cost to Executive with all such other benefits
as are provided uniformly to permanent full-time employees of the
Company and/or its subsidiaries.
2. Section 5 of the Agreement is hereby amended in its entirety as
follows:
5. WORKING FACILITIES AND EXPENSES
(a) Executive's principal place of employment shall be the
Company's principal executive offices. The Company shall provide
Executive, at his principal place of employment, with a private
office, secretarial services and other support services and facilities
suitable to his position with the Company and necessary or appropriate
in connection with the performance of his duties under this Agreement.
(b) From January 4, 2006 to December 31, 2006, the Company
provided Executive with an automobile allowance of $871 per month in
lieu of providing an automobile suitable to the position of Chief
Executive Officer of the Company, with such automobile to be used by
Executive in carrying out his duties under this Agreement and for his
personal use such as commuting between his residence and his principal
place of employment. The Company reimbursed Executive $871 per month
for the cost of maintenance, use and servicing of such automobile.
Effective January 1, 2007, Executive relinquished his right to such
automobile expense reimbursements, in exchange for an increased base
salary for the period January 1, 2007 through June 30, 2007. From July
1, 2007, Executive has relinquished his right to such automobile
expenses for the remainder of this Agreement, in exchange for the
grant of SARs described in Section 3(a)(3) and the revised Base Salary
as described in Section 3(a)(4).
(c) The Company shall reimburse Executive for his ordinary and
necessary business expenses incurred in connection with the
performance of his duties under this Agreement, including, without
limitation, fees for memberships in such clubs and organizations that
Executive and the Board mutually agree are necessary and appropriate
to further the business of the Company, and travel and reasonable
entertainment expenses. Reimbursement of such expenses shall be made
upon presentation to the Company of an itemized account of the
expenses in such form as the Company may reasonably require.
SIGNATURES
IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by
its Chairman of the Board and Executive has signed this Agreement, as of the
date first above written.
ATTEST: FIRST FEDERAL BANKSHARES, INC.
/s/ Xxxxxxx X. Xxxxxx By:/s/ Xxxxxx X. Xxxxx
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Secretary Chairman of the Board
WITNESS: EXECUTIVE
/s/ Xxxxx X. Xxxxx By:/s/ Xxxxxxx X. Xxxxxxx
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Xxxxxxx X. Xxxxxxx
