Bear State Financial, Inc. Watch

from 10-K 11 pages United States of America Before the Office of Thrift Supervision in the Matter of Order No.: Wn-10-14 First Federal Bancshares of of Arkansas, Inc. Effective Date: April 14, 2010 Harrison, Arkansas Ots Docket No. H2658 Order to Cease and Desist Whereas, First Federal Bancshares of Arkansas, Inc., Harrison, Arkansas, Ots Docket No. H2658 (Holding Company), by and Through Its Board of Directors (Board), Has Executed a Stipulation and Consent to the Issuance of an Order to Cease and Desist (Stipulation); and Whereas, the Holding Company, by Executing the Stipulation, Has Consented and Agreed to the Issuance of This Order to Cease and Desist (Order) by the Office of Thrift Supervision (Ots) Pursuant to 12 U.S.C. § 1818(b); and Whereas, Pursuant to Delegated Authority, the Ots Regional Director for the Western Region (Regional Director) Is Authorized to Issue Orders to Cease and Desist Where a Savings and Loan Holding Company Has Consented to the Issuance of an Order. Now, Therefore, It Is Ordered That: First Federal Bancshares of Arkansas, Inc. Order to Cease and Desist Page 1 of 11

from 10-K 6 pages United States of America Before the Office of Thrift Supervision in the Matter of Order No.: Wn-10-14 First Federal Bancshares of Arkansas, Inc. Effective Date: April 14, 2010 Harrison, Arkansas Ots Docket No. H2658 Stipulation and Consent to Issuance of Order to Cease and Desist Whereas, the Office of Thrift Supervision (Ots), Acting by and Through Its Regional Director for the Western Region (Regional Director), and Based Upon Information Derived From the Exercise of Its Regulatory and Supervisory Responsibilities, Has Informed First Federal Bancshares of Arkansas, Inc., Harrison, Arkansas, Ots Docket No. H2658 (Holding Company), That the Ots Is of the Opinion That Grounds Exist to Initiate an Administrative Proceeding Against the Holding Company Pursuant to 12 U.S.C. § 1818(b); Whereas, the Regional Director, Pursuant to Delegated Authority, Is Authorized to Issue Orders to Cease and Desist Where a Savings and Loan Holding Company Has Consented to the Issuance of an Order; and Whereas, the Holding Company Desires to Cooperate With the Ots to Avoid the Time and Expense of Such Administrative Cease and Desist Proceeding by Entering Into This Stipulation and Consent to the Issuance of Order to Cease and Desist (Stipulation) And, Without Admitting or First Federal Bancshares of Arkansas, Inc. Stipulation and Consent to Issuance of Order to Cease and Desist Page 1 of 6