Document:

ozrk-ex102_9.htm

Exhibit 10.2

BANK OF THE OZARKS, INC.

2017 CASH-BASED PERFORMANCE PLAN

 

Pursuant to the Bank of the Ozarks, Inc. 2009 Restricted Stock and Incentive Plan, as amended and restated effective May 16, 2016 (the “Amended Plan”), the Personnel and Compensation Committees (the “Committee”) of the Boards of Directors of Bank of the Ozarks, Inc. (the “Company”) and its wholly-owned bank subsidiary, Bank of the Ozarks (the “Bank”), has established the following plan for the 2017 grants of Performance Awards to be payable in cash (the “Program”) in order to encourage outstanding performance from its officers.  Subject to applicable law, all designations, determinations, interpretations, and other decisions under or with respect to the Program or any award shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive and binding upon all persons. Designations, determinations, interpretations, and other decisions made by the Committee with respect to the Program or any Performance Award need not be uniform and may be made selectively among participants, whether or not such participants are similarly situated. Performance Awards made pursuant to the Program to Covered Officers are intended to qualify as “performance-based compensation” within the meaning of Section 162(m) of the Code and the regulations promulgated thereunder and this Program shall be interpreted accordingly. Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Amended Plan.

 

Participation

 

The Committee shall designate those officers of the Company and/or the Bank that will be eligible to receive an award pursuant to the Program (each a “Participant”) and if such Participant is a Covered Officer, as defined in the Amended Plan.

 

Performance Period

 

Awards shall be calculated based on the financial results for the period beginning on January 1, 2017 and ending on December 31, 2017 (the “Performance Period”) and paid within two and one-half months following the end of the Performance Period pursuant to the terms of this Program. Following the completion of the Performance Period, the Committee shall certify in writing whether the applicable performance targets have been achieved and the amounts, if any, payable to any Participant for the Performance Period.

 

Company Performance Metrics and Award Opportunities

 

The Company performance metrics (each a “Performance Metric”) and the relative weighting of each Performance Metric (“Weight”) for the Program are set forth and defined in the table below.  No later than 90 days following the commencement of the Performance Period, the Committee shall approve the performance level that must be attained with respect to each Performance Metric before payout using various levels of performance.   

 

	
2017 Performance Metrics
	
Weight

	
Return on Average Assets (“ROAA”)
	
20%

	
Diluted Earnings Per Share (“EPS”)(1)
	
20%

	
Efficiency Ratio (2)
	
20%

	
Net Charge-Off Ratio
	
20%

	
Net Interest Margin -fully taxable equivalent (“FTE”)
	
20%

	
 
	
(1)
	
Computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding after consideration of the dilutive effect, if any, of the Company’s 

	
 
		
outstanding common stock options using the treasury stock method. Net income for purposes of calculating EPS under the Program means the Company’s after tax net income available to common shareholders, determined in accordance with GAAP, adjusted to exclude (i) any unusual and/or non-recurring items, (ii) the after-tax impact of any bargain purchase gains, acquisition-related costs, liquidation charges related to contract terminations, information technology systems de-conversion and conversion costs, and any other similar costs or expenses and (iii) the effects of changes in tax law, accounting principles or other such laws or provisions affecting reported results.

	
 
	
(2)
	
Non-interest expense divided by the sum of net interest income – FTE and non-interest income and adjusted to exclude (i) any unusual and/or non-recurring items, (ii) the after-tax impact of any bargain purchase gains, acquisition-related costs, liquidation charges related to contract terminations, information technology systems de-conversion and conversion costs, and any other similar costs or expenses and (iii) the effects of changes in tax law, accounting principles or other such laws or provisions affecting reported results.

 

No later than 90 days following the commencement of the Performance Period, the Committee shall determine incentive opportunities payable to each Participant based on the level of performance attained for the particular Performance Metric over the Performance Period.  Payouts under each Performance Metric will depend on the level of performance achieved with respect to the particular metric.  If the Company’s performance is below the threshold amount set for the particular Performance Metric, the payout related to the particular metric is zero. Company performance that is at or above the maximum level set for the particular Performance Metric may result in payment up to the maximum amount of the incentive opportunity for that particular Performance Metric.

 

Payment of Awards

 

As soon as practicable following the end of the Performance Period, the Committee shall determine (such date, the “Determination Date”) whether and to what extent each Performance Metric has been achieved and the final dollar amount (“Bonus Award”), if any, payable to each Participant under the Program.  In determining the amount earned by the Participant for the Performance Period, the Committee shall have the right to reduce (but not increase) the amount payable at a given level of performance to take into account additional factors that the Committee may deem relevant to the assessment of individual or Company performance for the Performance Period, including the Company’s overall performance, the individual Participant’s specific contributions and performance throughout the Performance Period and any actual or perceived inappropriate risks taken by Participants.

 

Each Bonus Award shall be paid solely in cash; provided, such amount may not exceed the maximum amount set forth in Section 10.3(b) of the Amended Plan. 

 

Except as the Committee may otherwise determine in its sole and absolute discretion, termination of a Participant’s employment prior to the end of the Performance Period will result in the forfeiture of the award by the Participant, and no Bonus Award shall be received. 

 

This Program is not a “qualified” plan for federal income tax purposes, and any payments are subject to applicable tax withholding requirements.

 

Other Provisions 

 

Adjustments for Unusual or Nonrecurring Events.  In addition to any adjustments enumerated by the Committee when setting the Performance Metrics, the Committee is authorized to make adjustments in the terms and conditions of, and the criteria included in, awards in recognition of unusual or nonrecurring events affecting any Participant, the Company, or any Subsidiary or affiliate, or the financial statements of the Company or of any Subsidiary or affiliate; in the event of changes in applicable laws, 

regulations or accounting principles; or in the event the Committee determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Amended Plan. The Committee is also authorized to adjust performance targets or awards downward to avoid unwarranted windfalls. Notwithstanding the foregoing, the Committee shall not make any adjustments to the Program that would prevent any awards made to Covered Officers from qualifying as “performance-based compensation” pursuant to Section 162(m) of the Code.

 

No Right to Employment.  The grant of an award shall not be construed as giving a Participant the right to be retained in the employ of the Company or any Subsidiary or affiliate.

 

No Trust or Fund Created.  Neither the Program nor any Performance Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Subsidiary or affiliate and a Participant or any other person. To the extent that any person acquires a right to receive payments from the Company or any Subsidiary or affiliate pursuant to an award, such right shall be no greater than the right of any unsecured general creditor of the Company or any Subsidiary or affiliate.

 

No Rights to Awards. No person shall have any claim to be granted any award and there is no obligation for uniformity of treatment among Participants. The terms and conditions of the awards, if any, need not be the same with respect to each Participant. The Company reserves the right to terminate the Program at any time in the Company’s sole discretion. 

 

Section 409A of the Internal Revenue Code.  This Program is intended to comply with Section 409A of the Code and will be interpreted in a manner intended to comply with Section 409A of the Code.

 

Application of Company Clawback Policy. All grants, awards, shares of the Company’s common stock, cash or other compensation received by any Participant pursuant to the Program that constitute incentive-based compensation may be subject to recovery by the Company under any compensation recovery, recoupment or clawback policy adopted by the Company and applicable to such Participant, including without limitation any policy that the Company may be required to adopt under Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules and regulations of the U.S. Securities and Exchange Commission thereunder or the requirements of any national securities exchange on which the Company’s common stock may be listed.EXHIBIT 10.1

 

STOCK EXCHANGE AGREEMENT

 

THIS STOCK EXCHANGE AGREEMENT (the "Agreement"),
dated as of January 6, 2017, (the "Effective
Date), is entered into by
and between Nexeon MedSystems Inc (“Nexeon”), a Nevada corporation located at
1708 Jaggie Fox Way, Lexington, Kentucky 40511, and Rosellini
Scientific LLC, a Texas limited liability company ("RS"),
located at 17217 Waterview Pkwy, Dallas,
Texas 75252, hereinafter collectively Nexeon and RS shall
be known as (the “Parties”)

 

RECITALS

 

WHEREAS, RS owns 100 shares of Common Stock
of MicroTransponder Inc., a Delaware corporation (the "MTI Shares");
and

 

WHEREAS, Nexeon desires to acquire the MTI
Shares from RS and RS is willing to transfer the MTI Shares to Nexeon in exchange for Emeritus Clinical Solutions, Inc. (formerly
Telemend, Inc.), a Texas corporation, shares of common stock (the “Emeritus Shares”) owned by Nexeon;

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements hereinafter set forth and for
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

AGREEMENT

 

1.       Transfer
and Exchange. Subject to the terms and conditions set forth herein,
on the Effective Date, RS shall sell, transfer, and assign
to Nexeon all of its rights, title and interest in and to the 100 MTI Shares, and in
exchange Nexeon shall sell, transfer and assign to RS all of its rights, title, and interest in and to 591 Emeritus Shares
(collectively the “Exchange Shares”).

 

2.       Closing.
Subject to the terms and conditions contained in this Agreement, the transfer and exchange
of the Exchange Shares contemplated hereby shall
take place on the Effective Date
at which time RS shall deliver to Nexeon a stock certificate or certificates evidencing
the MTI Shares, free and clear of all Liens (as defined herein),
and Nexeon shall deliver to RS a stock certificate or certificates evidencing the Emeritus
Shares, free and clear of all Liens (as defined herein).

 

3.       
Closing Conditions

 

The obligation of the Parties to sell, transfer,
and assign the Exchanged Shares each to the other hereunder is subject to the satisfaction of the following conditions as of the
Effective Date:

 

		A.	the representations and warranties
                                         of the Parties herein shall be true and correct on and as of the Effective Date; and

 

		B.	the Parties shall have performed
                                         and complied in all material respects with all agreements and conditions required by
                                         this Agreement to be performed or complied with by it prior to or on the Effective Date;
                                         and

 

 

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		C.	the Parties shall have obtained
                                         any and all consents, permits, approvals, registrations, and waivers necessary or appropriate
                                         for the execution of this Agreement and the consummation of the transactions contemplated
                                         hereby.

 

4.       
Representations, Warranties, and Covenants of RS. RS hereby represents, warrants, and covenants to Nexeon as follows:

 

		A.	RS is a limited liability company
                                         duly organized, validly existing, and in good standing under the laws of the State of
                                         Texas.

 

		B.	RS has all requisite power and
                                         authority to execute and deliver this Agreement, to carry out its obligations hereunder,
                                         and to consummate the transactions contemplated hereby. RS has obtained all necessary
                                         limited liability company approvals for the execution and delivery of this Agreement,
                                         the performance of its obligations hereunder, and the consummation of the transactions
                                         contemplated hereby. This Agreement has been duly executed and delivered by RS and (assuming
                                         due authorization, execution and delivery by Nexeon) constitutes RS’s legal, valid,
                                         and binding obligation, enforceable against RS in accordance with its terms.

 

		C.	The MTI Shares have been duly authorized,
                                         are validly issued, fully paid, and non-assessable, and are owned of record and beneficially
                                         by RS, free and clear of all liens, pledges, security interests, charges, claims, encumbrances,
                                         agreements, options, voting trusts, proxies, and other arrangements or restrictions of
                                         any kind (“Liens”), including but not limited to Liens of any
                                         applicable taxing authority. Upon consummation of the transactions contemplated by this
                                         Agreement, Nexeon shall own the MTI Shares free and clear of any and all Liens.

 

		D.	The execution, delivery, and performance
                                         by RS of this Agreement do not conflict with, violate or result in the breach of, or
                                         create any Lien on the MTI Shares pursuant to any agreement, instrument, order, judgment,
                                         decree, law, or governmental regulation to which RS is a party or is subject or by which
                                         the MTI Shares are bound, other than State and Federal Securities laws, rules, and regulations.

 

		E.	No governmental, administrative,
                                         or other third-party consents or approvals are required by or with respect to the Company
                                         in connection with the execution and delivery of this Agreement and the consummation
                                         of the transactions contemplated hereby.

 

		F.	There are no actions, suits, claims,
                                         investigations, or other legal proceedings pending or, to the knowledge of RS, threatened
                                         against or by RS that challenge or seek to prevent, enjoin, or otherwise delay the transactions
                                         contemplated by this Agreement.

 

		G.	No broker, finder, or investment
                                         banker is entitled to any brokerage, finder, or other fee or commission in connection
                                         with the transactions contemplated hereby based upon arrangements made by or on behalf
                                         of RS.

 

 

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5.       
Representation, Warranties, and Covenants of Nexeon.
Nexeon hereby represents, warrants, and covenants to RS as follows:

 

		A.	Nexeon
                                         is a corporation duly organized, validly existing, and in good standing under the laws
                                         of the State of Nevada.

 

		B.	Nexeon
                                         has all requisite power and authority to enter into this Agreement, to carry out its
                                         obligations hereunder, and to consummate the transactions contemplated hereby. The execution
                                         and delivery by Nexeon of this Agreement, the performance by Nexeon of its obligations
                                         hereunder, and the consummation by Nexeon of the transactions contemplated hereby have
                                         been duly authorized by all requisite corporate action on the part of Nexeon. This Agreement
                                         has been duly executed and delivered by Nexeon, and (assuming due authorization, execution,
                                         and delivery by RS) this Agreement constitutes a legal, valid, and binding obligation
                                         of Nexeon enforceable against Nexeon in accordance with its terms.

 

		C.	The
                                         Emeritus Shares have been duly authorized, are validly issued, fully paid, and non-assessable,
                                         and are owned of record and beneficially by Nexeon, free and clear of all liens, pledges,
                                         security interests, charges, claims, encumbrances, agreements, options, voting trusts,
                                         proxies, and other arrangements or restrictions of any kind (“Liens”),
                                         including but not limited to Liens of any applicable taxing authority. Upon consummation
                                         of the transactions contemplated by this Agreement, RS shall own the Emeritus Shares
                                         free and clear of any and all Liens.

 

		D.	Nexeon
                                         is acquiring the MTI Shares solely for its own account for investment purposes and not
                                         with a view to, or for offer or sale in connection with, any distribution thereof. Nexeon
                                         acknowledges that the MTI Shares are not registered under the Securities Act of 1933,
                                         as amended, or any state securities laws, and that the MTI Shares may not be transferred
                                         or sold except pursuant to the registration provisions of the Securities Act of 1933,
                                         as amended or pursuant to an applicable exemption there from and subject to state securities
                                         laws and regulations, as applicable.

 

		E.	There
                                         are no actions, suits, claims, investigations, or other legal proceedings pending or,
                                         to the actual knowledge of Nexeon, threatened against or by Nexeon that challenge or
                                         seek to prevent, enjoin, or otherwise delay the transactions contemplated hereby.

 

		F.	No
                                         broker, finder, or investment banker is entitled to any brokerage, finder, or other fee
                                         or commission in connection with the transactions contemplated by this Agreement based
                                         upon arrangements made by or on behalf of Nexeon.

 

6.       
Legend. The Parties understand that the Exchanged Shares shall bear the following legend:

 

THE SHARES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN
CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH TRANSFER MAY BE ENACTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT
RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE
SECURITIES ACT OF 1933.

 

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7.       Survival.
All representations, warranties, and covenants contained herein shall survive the execution and delivery of this Agreement.

 

8.       Indemnification.
The Parties hereto shall each indemnify the other and hold each other harmless against and in respect of any and all losses, liabilities,
damages, obligations, claims, Liens, costs, and expenses (including, without limitation, reasonable attorneys’ fees) incurred
by the other resulting from any breach of any representation, warranty, covenant, or agreement made herein or in any instrument
or document delivered pursuant hereto.

 

9.       Further
Assurances. Following the Effective Date, each of the Parties hereto shall execute and deliver such additional documents,
instruments, conveyances, and assurances and take such further actions as may be reasonably required to carry out the provisions
hereof and give effect to the transactions contemplated hereby.

 

10.       Confidentiality.
Each of the Parties hereto acknowledge and agree that this Agreement is confidential, and no party shall disclose this Agreement
or any terms hereof to any third parties, except as may be necessary to obtain advice and counseling from such party’s attorneys,
accountants, or financial advisors or as may otherwise be required through legal process.

 

11.       Expenses.
All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the
party incurring such costs and expenses.

 

12.       Notices.
All notices, requests, consents, claims, demands, waivers, and other communications hereunder (each, a “Notice”)
shall be in writing and addressed to the Parties at the addresses set forth on the first page of this Agreement (or to such other
address that may be designated by the receiving party from time to time in accordance with this section). All Notices shall be
delivered by personal delivery, nationally recognized overnight courier (with all fees pre-paid), facsimile or e-mail of a PDF
document (with confirmation of transmission) or certified or registered mail (in each case, return receipt requested, postage
prepaid). Except as otherwise provided for in this Agreement, a Notice is effective only if, (a) upon receipt by the receiving
party; and (b) the party giving the Notice has complied with the requirements of this Section 12.

 

13.       Entire
Agreement. This Agreement, including all exhibits and schedules hereto, constitutes the sole and entire agreement of the Parties
to this Agreement with respect to the subject matter contained herein and supersedes all prior and contemporaneous understandings,
agreements, representations, and warranties (both written and oral) with respect to such subject matter.

 

14.       Successor
and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the Parties hereto and their respective
successors and permitted assigns. No party may assign any of its rights or obligations hereunder without the prior written consent
of the other Parties hereto, which consent shall not be unreasonably withheld or delayed; provided, however, that the Parties
may assign any of its rights or obligations hereunder, in whole or in part, to an affiliate of the party without consent of the
other party.

 

15.       Headings.
The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

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16.       Amendment
and Modification; Waiver. This Agreement may only be amended, modified, or supplemented by an agreement in writing signed
by each party hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in
writing and signed by the party so waiving. Except as otherwise set forth in this Agreement, no failure to exercise, or delay
in exercising, any rights, remedy, power, or privilege arising from this Agreement shall operate or be construed as a waiver thereof;
nor shall any single or partial exercise of any right, remedy, power, or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, remedy, power, or privilege.

 

17.       Severability.
If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality,
or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such
term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal, or
unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of
the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated
as originally contemplated to the greatest extent possible.

 

18.       Drafting
Party. This Agreement expresses the mutual intent of the Parties, and accordingly any rule of construction against the drafting
party will have no application to this Agreement.

 

19.       Governing
Law; Submission to Jurisdiction. This Agreement shall be governed by and construed in accordance with the internal laws of
the State of Texas without giving effect to any choice or conflict-of-law provision or rule. Any legal suit, action, or proceeding
arising out of or based upon this Agreement or the transactions contemplated hereby may be instituted in the federal courts of
the United States or the courts of the State of Texas in each case located in the city of Dallas and County of Dallas, and each
party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action, or proceeding. Service of process,
summons, notice, or other document by mail to such party’s address set forth herein shall be effective service of process
for any suit, action, or other proceeding brought in any such court. The Parties irrevocably and unconditionally waive any objection
to the laying of venue of any suit, action, or any proceeding in such courts and irrevocably waive and agree not to plead or claim
in any such court that any such suit, action, or proceeding brought in any such court has been brought in an inconvenient forum.

 

20.       Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be
deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail, or other means of electronic
transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

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IN WITNESS WHEREOF, the parties hereto have executed this
Agreement to be effective as of the date first above written herein.

 

 

	ROSELLINI SCIENTIFIC LLC	 
	 	 	 	 
	 	 	 	 
	By:	/s/ William Rosellini	 	Date:   January 6, 2017
		William Rosellini, Manager	 	 
			 	 

 

	NEXEON MEDSYSTEMS INC	 
	 	 	 	 
	 	 	 	 
	By:	/s/ Ron Conquest	 	Date:   January 6, 2017
		Ron Conquest, Executive VP of Finance	 	 
			 	 

 

 

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