Summary of FIRSTCITY FINANCIAL CORP

ITEM 5.02 Departure of Directors or Certain Officers; Election of
Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

(b) On June 5, 2009, FirstCity Financial Corporation (the "Company") announced that Richard J. Vander Woude resigned from his position as Senior Vice President, Secretary and General Counsel of the Company effective June 2, 2009 (the "Resignation Date").

(e) In connection with the foregoing, the Company has entered into a Separation Agreement, Release and Amendment to Award Agreements with Mr. Vander Woude dated June 4, 2009 (the "Separation Agreement"). The Separation Agreement provides, among other things, for the payment to Mr. Vander Woude of $237,500 in various installments through May 31, 2011. The Separation Agreement also provides that the options for common stock of the Company awarded to Mr. Vander Woude prior to June 1, 2009 under the Company's stock option and award plans will continue in full force and effect after June 1, 2009, and that the award agreements will terminate if not exercised by Mr. Vander Woude on or prior to the earlier of (i) the existing termination date for the options under the award agreement related to that option, or (ii) June 1, 2010. The award agreements have been further amended to provide that options for 6,000 shares of the Company's common stock previously awarded to Mr. Vander Woude which were not vested on or before June 1, 2009 are vested as of June 1, 2009. The Separation Agreement provides that Mr. Vander Woude will not be entitled to any benefits of an employee of the Company after June 1, 2009, except as set forth in the Agreement.

The above summary of the Separation Agreement is qualified in its entirety by reference to the Separation Agreement, which is attached hereto as Exhibit 10.1 and incorporated herein by reference.

Also in connection with the foregoing, the Company has entered into a Retainer Agreement with Mr. Vander Woude dated June 4, 2009 (the "Retainer Agreement"). The term of the Retainer Agreement commences on the resignation date and ends two years thereafter, unless the Retainer Agreement is earlier terminated. Under the Retainer Agreement, the Company will retain Mr. Vander Woude's legal services for 1,500 hours during the two-year period, and as further requested by the Company from time to time. Mr. Vander Woude will provide legal services under the Retainer Agreement at an hourly rate of $350.

The above summary of the Retainer Agreement is qualified in its entirety by reference to the Retainer Agreement, which is attached hereto as Exhibit 10.2 and incorporated herein by reference.