exv10w3






Exhibit 10.3




	 	 	 
	[Officer Name]

	 	[Date]
	[Title]
	 	 
	[Address]
	 	 





Re: Capital Purchase Program




Dear [Officer],




     Home BancShares, Inc. (the “Company”) anticipates entering into a Securities Purchase
Agreement (the “Participation Agreement”), with the United States Department of Treasury
(“Treasury”) that provides for the Company’s participation in the Treasury’s TARP Capital Purchase
Program (the “CPP”). If the Company does not participate or ceases at any time to participate in
the CPP, this letter shall be of no further force and effect.



     For the Company to participate in the CPP and as a condition to the closing of the investment
contemplated by the Participation Agreement, the Company is required to establish specified
standards for incentive compensation to its senior executive officers and to make changes to its
compensation arrangements. To comply with these requirements, and in consideration of the benefits
that you will receive as a result of the Company’s participation in the CPP, you agree as follows:




	 	1.	 	No Golden Parachute Payments. The Company is prohibiting any golden parachute
payment to you during any “CPP Covered Period”. A “CPP Covered Period” is any period
during which (A) you are a senior executive officer and (B) Treasury holds an equity or
debt position acquired from the Company in the CPP.






	 	2.	 	Recovery of Bonus and Incentive Compensation. Any bonus and incentive
compensation paid to you during a CPP Covered Period is subject to recovery or
“clawback” by the Company if the payments were based on materially inaccurate financial
statements or any other materially inaccurate performance metric criteria.






	 	3.	 	Compensation Program Amendments. Each of the Company’s compensation, bonus,
incentive and other benefit plans, arrangements and agreements (including golden
parachute, severance and employment agreements) (collectively, “Benefit Plans”) with
respect to you is hereby amended to the extent necessary to give effect to provisions
(1) and (2). For reference, certain affected Benefit Plans are set forth in Appendix A
to this letter.






In addition, the Company is required to review its Benefit Plans to ensure that they
do not encourage senior executive officers to take unnecessary and excessive risks
that threaten the value of the Company. To the extent any such review requires
revisions to any Benefit Plan with respect to you, you and the Company agree to
negotiate such changes promptly and in good faith.




	 	4.	 	Definitions and Interpretation. This letter shall be interpreted as follows






	 	•	 	“Senior executive officer” means the Company’s “senior executive
officers” as defined in subsection 111(b)(3) of EESA.






	 	•	 	“Golden parachute payment” is used with same meaning as in Section
111(b)(2)(C) of EESA.






	 	•	 	“EESA” means the Emergency Economic Stabilization Act of 2008 as
implemented by guidance or regulation issued by the Department of the
Treasury and as published in the Federal Register on October 20, 2008.




 









 












	 	•	 	The term “Company” includes any entities treated as a single employer
with the Company under 31 C.F.R. § 30.1(b) (as in effect on the Closing
Date). You are also delivering a waiver pursuant to the Participation
Agreement, and, as between the Company and you, the term “employer” in
that waiver will be deemed to mean the Company as used in this letter.






	 	•	 	The term “CPP Covered Period” shall be limited by, and interpreted in
a manner consisten with, 31 C.F.R. § 30.11 (as in effect on the Closing
Date).






	 	•	 	Provisions (1) and (2) of this letter are intended to, and will be
interpreted, administered and construed to, comply with Section 111 of
EESA (and, to the maximum extent consistent with the preceding, to permit
operation of the Benefit Plans in accordance with their terms before
giving effect to this letter).






	 	5.	 	Miscellaneous. To the extent not subject to federal law, this letter will be
governed by and construed in accordance with the laws of [Insert Jurisdiction]. This
letter may be executed in two or more counterparts, each of which will be deemed to be
an original. A signature transmitted by facsimile will be deemed an original signature.





     The Board appreciates the concessions you are making and looks forward to your continued
leadership during these financially turbulent times.



	 	 	 	 	 
	 	Yours sincerely,





Home BancShares, Inc.

 	 
	 	By:  	 	 
	 	 	Name
Title	 
	 



	 
	Intending to be legally bound, I
agree with and accept the foregoing
terms on the date set forth below

	 

	 






	 
	 
[Officer Name]







	 	 	 
	Date: