Document:

Exhibit

Exhibit 10.2

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made as of this 27 day of March, 2020, by and between Lumos Pharma, Inc. (the “Company”), and Dr. John McKew (“Executive”) (collectively, the “Parties”, each a “Party”).

WHEREAS, the Company wishes to employ and/or continue to employ Executive and to assure itself of Executive’s services on the terms set forth herein;

WHEREAS, Executive wishes to be employed by the Company on the terms set forth herein; and

WHEREAS, the Parties intend for this Agreement to set forth all of the terms and conditions of Executive’s employment with the Company, and to supersede and replace all prior agreements, arrangements, representations or understandings between the Parties regarding Executive’s employment with the Company.

AGREEMENT

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the Parties agree as follows:

1.EMPLOYMENT. The Company will employ Executive and Executive shall serve the Company in the capacity of Chief Scientific Officer and Chief Operating Officer (“CSO and COO”).

2.DUTIES. Executive shall render exclusive, full-time services to the Company. Executive shall report to the Chief Executive Officer (“CEO”) in Executive’s role. Executive shall perform services under this Agreement primarily at a remote location in Boyds, MD, and from time to time at such other locations as may be necessary or as otherwise reasonably requested by the Company. Subject to the terms of this Agreement, Executive’s responsibilities, working conditions and duties may be changed, expanded or eliminated at the sole discretion of the CEO. Executive shall devote Executive’s best efforts and full business time, skill and attention to performance of Executive’s duties on behalf of the Company; provided, however, that Executive may engage in civic and not-for-profit activities (e.g. charitable and industry association activities) as long as such activities do not materially interfere with Executive’s obligations hereunder. During Executive’s employment with the Company, Executive agrees not to engage in any business or for-profit activities outside the Company, including serving on any advisory boards or boards of directors of for-profit entities, except with the prior written approval of the CEO, which approval may be rescinded at any time in the CEO’s sole discretion, provided that in the event of such rescission Executive shall be permitted reasonable time for orderly withdrawal from any board with respect to which such consent has been rescinded. Notwithstanding the foregoing, the Executive may participate in special emphasis panels, SBIR advisory panels and similar activities, provided, however, that the Executive informs the CEO of such activities. The Company hereby consents to Executive’s continuing service as an Adjunct Associate Professor at Boston University School of Medicine. By signing this Agreement, Executive represents that, to the best of Executive’s knowledge, Executive is not subject to any other contract or duty that would interfere in any way with Executive’s employment with the Company or performance of employment duties hereunder.

		
	3.
	POLICIES AND PROCEDURES. Executive shall be subject to and will comply with the policies and procedures of the Company, as they may be modified, expanded or eliminated from time to time at the Company’s sole discretion, except to the extent any such policy or procedure specifically conflicts with the express terms of this Agreement (in which case, this Agreement shall control).

4.BASE SALARY. For services rendered hereunder, Executive shall receive a base salary at the rate of $460,000 per year (“Base Salary”), paid periodically in accordance with ordinary Company payroll
practices, subject to applicable payroll withholdings and deductions. Executive’s Base Salary shall also be subject to annual reviews and periodic adjustment; provided that Executive’s Base Salary may not be decreased without Executive’s express written consent except in connection with an across-the-board reduction proportionally affecting 

Exhibit 10.2

all senior executives of the Company.

5.BONUS. Executive will be eligible to receive an annual performance bonus (“Bonus”), with a target level at 45% of Executive’s Base Salary (the “Bonus Target”), with the annual amount of such Bonus to be determined in the sole discretion of the Company’s Board of Directors (the “Board”) or by its Compensation Committee (under authority delegated by the Board), based upon a review of both Executive's individual performance and the Company’s performance (both of which may include, but are not limited to, achievement of certain milestones or performance objectives, if any, established by the Board or the Compensation Committee (the “Bonus Plan”)). The Board or the Compensation Committee, in their sole discretion, shall determine the extent to which Executive has achieved any performance targets or other terms and conditions applicable to the Bonus; the amount of the Bonus (if any); and whether and to what extent a Bonus may be paid with respect to any year during which Executive's employment terminates, subject to the terms and conditions of this Agreement. Bonuses are not earned until they are approved in writing by the Board or Compensation Committee. Any Bonuses earned shall be paid subject to applicable employment taxes, withholding and deductions. Except as otherwise expressly provided in this Agreement or in the Bonus Plan, Executive must remain continuously employed with the Company through the date a Bonus is approved in order to be eligible to receive such Bonus.

6.STOCK OPTIONS. In consideration for entering into this Agreement, Executive shall be granted 65,000 shares of Company common stock, and 13,000 Restricted Stock Units (collectively the “Equity Awards”), subject to the vesting schedule and all other terms, conditions and limitations applicable to such options and Restricted Stock Units as set forth in the Company’s 2009 Equity Incentive Plan as it may be amended from time to time (the “Equity Plan”) and in Stock Award Agreements (as defined in the Equity Plan) approved by the Board and entered into by Executive. Executive may receive additional equity grants from time to time, in the sole discretion of the Board or a designated committee thereof.

7.OTHER BENEFITS. While employed by the Company pursuant to this Agreement, Executive shall be entitled to the following benefits:

(a)Executive Benefits. The Executive shall be entitled to all benefits to which other executive officers of the Company are entitled, on the same terms and conditions in effect from time to time, including, without limitation, participation in pension and profit sharing plans, the Company’s 401(k) plan, group insurance policies and plans (including medical, health, vision, and disability insurance policies and plans, and the like) which may be maintained by the Company for the benefit of its executives. The Company reserves the right to alter, discontinue and/or amend its benefit plans and programs from time to time in its sole discretion.

(b)Expense Reimbursement. The Executive shall receive, upon presentation of proper receipts and vouchers, reimbursement for direct and reasonable out-of-pocket expenses incurred in connection with the performance of Executive’s duties hereunder, in accordance with the Company’s expense reimbursement policies and procedures in effect from time to time.

(c)Paid Time Off. Executive will accrue thirty (30) days of paid time off (“PTO”) each full year, accrued in bi-weekly increments (on the Company’s regular payroll schedule), subject to Executive’s continuing service. Unused PTO will carry over from year to year; provided, however, that Executive shall not be entitled to “carry over” more than 1.5 times the Executive’s annual PTO accrual amount. Executive’s accrued PTO shall not exceed 360 hours (“PTO Cap”). Upon termination of employment for any reason, Executive shall be paid out (at Executive’s last rate of pay) for Executive’s then accrued unused PTO amount, up to a maximum of PTO Cap, less applicable payroll deductions and withholdings. Except as provided herein, Executive’s PTO rights shall be governed by the Company’s PTO policy and applicable
law, as in effect from time to time; provided, however, that in the event of a conflict between this Agreement and the Company’s governing PTO policy, this Agreement will control.

		
	8.
	CONFIDENTIAL INFORMATION, RIGHTS AND DUTIES.

(a)Proprietary Information. Executive agrees to execute and abide by the Company’s Proprietary 

Exhibit 10.2

Information, Inventions, Non-Competition and Non-Solicitation Agreement (the “Proprietary Information Agreement”), attached hereto as Exhibit A.

(b)Exclusive Property. Executive agrees that all Company-related business procured by Executive, and all Company-related business opportunities and plans made known to Executive while employed by the Company, are and shall remain the permanent and exclusive property of the Company.

		
	9.
	TERMINATION OF EMPLOYMENT.

(a)At-Will Status. The Company and Executive understand and agree that this employment relationship is at-will. Accordingly, there are no promises or representations concerning the duration of Executive’s employment relationship, and it may be terminated by either Executive or the Company at any time, with or without Cause or Good Reason (as defined herein), and with or without advance notice. Executive’s at-will status cannot be altered except in an express written agreement signed by Executive and the Company with the specific approval of the Company’s Board.

(b)Termination Due to Death or Disability. Subject to applicable state or federal law, Executive’s employment with the Company will automatically terminate upon Executive’s death or a physical or mental disability or condition which renders Executive unable to perform the essential functions of Executive’s position (with or without accommodation) for more than six (6) months in any twelve (12) month period, or for more than four (4) consecutive months. This provision shall be interpreted and construed in accordance with the federal Americans with Disabilities Act of 1990 and all other applicable laws.

(c)Resignation by Executive. Executive may resign from the Company with or without Good Reason.  The Company requests that Executive provide at least three (3) weeks’ advance written notice of a termination without Good Reason to allow for an orderly transition. The Company may accelerate the date Executive’s resignation is to become effective, in its sole discretion. In the event the Company accelerates the resignation effective date, Executive will be paid Base Salary severance through the originally tendered resignation date, provided that in no such event will Executive be entitled to receive more than three (3) months of Base Salary severance beyond the accelerated resignation date.

(d)Definition of Cause. For purposes of this Agreement, “Cause” for the Company to terminate Executive shall mean: (i) Executive’s incompetence or failure or refusal to perform satisfactorily any duties reasonably required of Executive by the Company (other than by reason of Disability), which failure continues for fifteen (15) days after Executive receives specific written notice to cure; (ii) Executive’s conviction or plea of guilty or nolo contendere to any felony or to any other crime involving dishonesty or moral turpitude; (iii) any act or omission which constitutes a material breach of this Agreement, the Proprietary Information Agreement, the Company’s policies, or Executive’s fiduciary duty to the Company; (iv) any act or omission in connection with Executive’s employment with the Company, which involves material personal dishonesty by Executive or demonstrates a willful or continuing disregard for the best interests of the Company; or (v) Executive’s engaging in dishonorable or disruptive behavior, practices or acts which cause, or could be reasonably expected to cause, material harm or bring disrepute to the Company.

(e)Definition of Good Reason. For purposes of this Agreement, “Good Reason” means the occurrence of any of the following without Executive’s prior written consent: (i) a reduction in Executive’s
Base Salary or benefits that materially diminishes the aggregate value of Executive’s compensation and benefits, unless a reduction is made in connection with an across-the-board reduction of all executives’ base salaries and/or employee benefits by a percentage less than 20% and at least equal to the percentage by which Executive’s Base Salary or employee benefits are reduced; (ii) in the event of such an across-the- board reduction and a subsequent across-the-board restoration of all or any portion of the reduced Base Salary or benefits, then a failure to restore Executive’s Base Salary or benefits in at least a proportional manner; (iii) a material reduction of Executive’s Bonus Target level; (iv) a material reduction in Executive’s duties, authority or responsibilities taken as a whole excluding any change in Executive’s duties, authority or responsibilities which result solely from being reduced by one organizational level due to the Company being acquired by or made part of a larger entity; or (v) a relocation of 

Exhibit 10.2

Executive’s principal place of employment that would result in an increase in Executive’s one-way commute by more than 30 miles. Notwithstanding the foregoing, “Good Reason” for Executive to resign shall not exist unless: (x) Executive provides the Company with specific written notice of the existence of the condition giving rise to Good Reason within ninety (90) days after its initial occurrence; (y) the Company fails to remedy such condition within thirty (30) days after its receipt of such written notice; and (z) Executive resigns within sixty (60) days after the cure period has lapsed.

(f)Final Pay upon Termination for Any Reason. Except as otherwise provided by this Agreement and/or required by law, upon termination of Executive’s employment for any reason, the Company’s obligation to make payments hereunder shall cease, except that the Company shall pay all amounts due and payable for Executive’s services through Executive’s last day of employment (the “Separation Date”), including all accrued unpaid Base Salary and Bonus compensation earned through Separation Date, any benefits accrued prior to the Separation Date, all accrued but unused vacation as of the Separation Date, and any reimbursable business expenses incurred but not reimbursed as of the Separation Date.

		
	(g)
	Severance Benefits upon a Covered Termination (No Change in Control).

(i)Severance Benefits. If Executive’s employment is terminated by the Company without Cause or as a result of Executive’s resignation for Good Reason (each a “Covered Termination”), Executive shall be eligible to receive the following severance benefits: (1) payment of an amount equal to twelve (12) months of Executive’s Base Salary in effect immediately prior to the Separation Date, less applicable payroll tax withholdings and deductions (the “Severance”); (2) twelve (12) months of accelerated vesting of Executive’s Equity Awards (so that Executive becomes vested in the portion of the Equity Awards that would have become vested if Executive remained employed for 365 days after the Separation Date). (For the avoidance of doubt, to the extent that any performance criteria under any Equity Award has not been satisfied as of the Separation Date, such Equity Award shall terminate as of the Separation Date and shall not be subject to the foregoing accelerated vesting benefit.); and (3) a twelve (12) month extension of the exercise period applicable to the Equity Awards so that Executive has 365 days after the Separation Date to exercise any vested Equity Awards (including, for avoidance of doubt, any portion of such awards that became vested as a result of the foregoing accelerated vesting benefit) (the “Extended Exercise Period”). The foregoing Extended Exercise Period benefit may convert Equity Awards that were incentive stock options into non-statutory stock options. Executive should consult with an independent tax advisor for additional guidance. Except for the foregoing accelerated vesting and Extended Exercise Period benefits, all existing terms and conditions applicable to the Equity Awards shall remain in full force and effect. In addition, provided Executive timely elects to continue Executive’s group health insurance coverage after the Separation Date pursuant to the federal COBRA law or, if applicable, state insurance laws (collectively, “COBRA”), and the terms of the governing health insurance policies, the Company will reimburse the monthly COBRA health insurance premiums (the “COBRA Payments”) Executive pays to continue Executive’s health insurance coverage (including dependent coverage) for twelve (12) months after the Separation Date or until such earlier date as Executive either becomes eligible for group health insurance coverage through a new employer or ceases to be eligible for COBRA coverage (the “COBRA Payment Period”).  Executive must submit to the Company appropriate documentation of

the foregoing health insurance payments, within sixty (60) days of making such payments, in order to be reimbursed. Notwithstanding the foregoing, if the Company determines, in its sole discretion, that it cannot pay the COBRA Payments without a substantial risk of violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), at the end of each remaining month of the COBRA Payment Period, the Company shall pay Executive directly a taxable monthly amount which, after taxes, equals the COBRA Payment amount the Company would have otherwise paid to Executive (assuming a 35% tax rate). Executive agrees to promptly notify the Company in writing if Executive becomes eligible for group health insurance coverage through a new employer before the end of the specified reimbursement period. For sake of reference, all severance benefits provided in entire subsection 9(g)(i) shall be referred to collectively as the “Severance Benefits.”

(ii)Preconditions. As a precondition to receiving any Severance Benefits, Executive must (1) remain in compliance with all continuing obligations Executive owes to the Company, including those set forth 

Exhibit 10.2

under Executive’s Proprietary Information Agreement, and (2) within twenty-one (21) days after the Separation Date, Executive must sign and return to the Company, a separation agreement and release of claims in substantially the form attached hereto as Exhibit B (the “Release”) and allow the Release to become fully-effective and non-revocable by its terms. The Severance will be paid [in the form of continuing salary installment payments, paid on the Company’s ordinary payroll schedule starting immediately after the Separation Date; provided, however, that any payments that would be paid prior to the date the Release becomes fully effective and non-revocable (the “Effective Date”), shall be delayed and paid in full on the first payroll date after the Effective Date (For avoidance of doubt, no Severance Benefits will be paid under any circumstances if the foregoing preconditions are not satisfied, or if Executive’s employment ends because of a resignation without Good Reason, a termination for Cause, or as a result of Executive’s death or Disability.)

		
	10.
	CHANGE IN CONTROL BENEFITS.

(a)Change in Control Termination. If Executive’s employment with the Company is terminated by the Company without Cause (but not due to Executive’s death or Disability) or Executive resigns for Good Reason, and such termination or resignation occurs within one (1) month before, or within thirteen (13) months after a Change in Control (defined below) (each a “CIC Termination”), Executive shall be eligible to receive the following enhanced severance package (in lieu of the Severance Benefits described above): (i) payment of eighteen (18) months of Executive’s Base Salary as in effect immediately prior to the Separation Date, less applicable withholdings and deductions; (ii) payment of a bonus in an amount equal to 1.5 times the most recently paid Bonus as described in Section 5 above multiplied by 1.5, less applicable withholdings and deductions (the payments under clauses (i) and (ii) referred to as the “CIC Cash Severance”); and (iii) accelerated vesting of Executive’s Equity Awards so that Executive becomes one hundred percent (100%) vested in all such Equity Awards; and (iv) a twenty-four (24) month extension of the exercise period applicable to the Equity Awards so that Executive has 730 days after the Separation Date to exercise any vested Equity Awards (including, for avoidance of doubt, any portion of such awards that became vested as a result of the foregoing accelerated vesting benefit) (the “Extended Exercise Period”). The foregoing Extended Exercise Period benefit may convert Equity Awards that were incentive stock options into non-statutory stock options. Executive should consult with an independent tax advisor for additional guidance. Except for the foregoing accelerated vesting and Extended Exercise Period benefits, all existing terms and conditions applicable to the Equity Awards shall remain in full force and effect. In addition, provided Executive timely elects to continue Executive’s group health insurance coverage after the Separation Date pursuant to COBRA, and the terms of the governing health insurance policies, the Company will reimburse all monthly COBRA health insurance premiums the Executive pays to continue Executive’s health insurance coverage (including dependent coverage) for eighteen (18) months after the Separation Date or until such earlier date as Executive either becomes eligible for group health insurance coverage through a new employer or Executive ceases to be eligible for COBRA coverage. These CIC severance benefits shall be paid subject to the same preconditions and on the same terms and conditions applicable to the Severance Benefits; provided, however, that the CIC Cash Severance shall be paid on a quarterly basis with the first payment starting within ten (10) business days of the Effective Date of the Release required under Section 9(g)(ii) (Preconditions). For purposes of this provisions only and notwithstanding any other provisions of this Agreement to the contrary, in the event a resignation without Good Reason as described in Section 9(e) above , the Company may elect to accelerate Executive’s designated resignation effective date, and Executive shall not be entitled to any additional pay in lieu of notice.

(b)Definition of Change in Control. For purposes of this Agreement, “Change in Control” has the definition set forth in the Equity Plan.

		
	11.
	CODE SECTION 409A COMPLIANCE. Notwithstanding anything set forth in this Agreement to the contrary, any payments and benefits provided pursuant to this Agreement which constitute “deferred compensation” within the meaning of the Treasury Regulations issued pursuant to Section 409A shall not commence until Executive has incurred a “separation from service” (as such term is defined in the Treasury Regulation Section 1.409A-1(h) (“Separation From Service”), unless the Company reasonably determines that such amounts may be provided to Executive without causing Executive to incur the additional 20% tax under Section 409A.

For the avoidance of doubt, it is intended that the payments and benefits set forth in this Agreement satisfy, to the 

Exhibit 10.2

greatest extent possible, the exemptions from the application of Section 409A provided under Treasury Regulation Sections 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9) and this Agreement will be construed to the greatest extent possible as consistent with those provisions. To the extent not so exempt, this Agreement (and any definitions hereunder) will be construed in a manner that complies with Section 409A and incorporates by reference all required definitions and payment terms. For purposes of Section 409A (including, without limitation, for purposes of Treasury Regulation Section 1.409A 2(b)(2)(iii)), Executive’s right to receive any installment payments under this Agreement (whether severance payments, reimbursements or otherwise) shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment hereunder shall at all times be considered a separate and distinct payment. Notwithstanding any provision to the contrary in this Agreement, if the Company (or, if applicable, the successor entity thereto) determines that any payments upon Executive’s Separation From Service set forth herein and/or under any other agreement with the Company constitute “deferred compensation” under Section 409A and Executive is, on Executive’s Separation From Service, a “specified employee” of the Company or any successor entity thereto, as such term is defined in Section 409A(a)(2)(B)(i) of the Code, then, solely, to the extent necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A, the timing of the payments upon Executive’s Separation From Service shall be delayed until the earlier to occur of: (a) the date that is six months and one day after Executive’s Separation From Service or (b) the date of Executive’s death (such applicable date, the “Specified Employee Initial Payment Date”). On the Specified Employee Initial Payment Date, the Company (or the successor entity thereto, as applicable) shall (A) pay to Executive a lump sum amount equal to the sum of the payments upon Executive’s Separation From Service that Executive would otherwise have received through the Specified Employee Initial Payment Date if the commencement of the payment of the severance benefits had not been so delayed pursuant to this section and (B) commence paying the balance of the severance benefits in accordance with the applicable payment schedules set forth in this Agreement.

None of the severance benefits under this Agreement will commence or otherwise be delivered prior to the effective date of the Release. If the period of time Executive has to execute the Release “crosses over” two
(2) calendar years, the Release will be deemed to have been executed on the twenty-first (21st) day after the Separation Date. Except to the minimum extent that payments must be delayed because Executive is a “specified employee” (as described above) or until the effectiveness of the Release, all amounts will be paid as soon as practicable in accordance with the Company’s normal payroll practices and no interest will be due on any amounts so deferred.

12.BETTER AFTER-TAX PROVISION. If any payment or benefit that Executive will or may receive from the Company or otherwise (a “280G Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then any such 280G Payment will be equal to the Reduced Amount. The “Reduced Amount” will be either (x) the largest portion of the 280G Payment that would result in no portion of the 280G Payment (after reduction) being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the 280G Payment, whichever amount (i.e., the amount determined by clause (x) or by clause (y)), after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive’s receipt, on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the 280G Payment may be subject to the Excise Tax. If a reduction in a 280G Payment is required pursuant to the preceding sentence and the Reduced Amount is determined pursuant to clause (x) of the preceding sentence, the reduction will occur in the manner (the “Reduction Method”) that results in the greatest economic benefit for Executive. If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata (the “Pro Rata Reduction Method”).

Notwithstanding the foregoing, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the 280G Payment being subject to taxes pursuant to Section 409A of the Code that would not otherwise be subject to taxes pursuant to Section 409A of the Code, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, will be modified so as to avoid the imposition of taxes pursuant to Section 409A of the Code as follows: (A) as a first priority, the modification will preserve to the greatest extent possible, the greatest economic benefit for Executive as determined on an after-tax basis; (B) as a second priority, 280G Payments that are contingent on future events (e.g., being terminated without Cause), will be reduced (or eliminated) before 280G Payments that are not contingent on future events; and (C) as a third priority, 280G Payments that are “deferred 

Exhibit 10.2

compensation” within the meaning of Section 409A of the Code will be reduced (or eliminated) before 280G Payments that are not “deferred compensation” within the meaning of Section 409A of the Code.

If Section 280G of the Code is not applicable by law to Executive, the Company will determine whether any similar law in Executive’s jurisdiction applies and should be taken into account.

The independent professional firm engaged by the Company for general tax audit purposes as of the day prior to the effective date of the Change in Control will make all determinations required to be made under this Section. If the firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the Change in Control, the Company will appoint a nationally recognized independent professional firm to make the determinations required hereunder. The Company will bear all expenses with respect to the determinations by such firm required to be made hereunder. The Company will use commercially reasonable efforts to cause the firm engaged to make the determinations hereunder to provide its calculations, together with detailed supporting documentation, to the Company and Executive within thirty (30) calendar days after the date on which Executive’s right to a 280G Payment becomes reasonably likely to occur (if requested at that time by the Company or Executive) or such other time as requested by the Company or Executive.

If Executive receives a 280G Payment for which the Reduced Amount was determined pursuant to clause (x) of the first paragraph of this Section and the Internal Revenue Service determines thereafter that some portion of the 280G Payment is subject to the Excise Tax, Executive will promptly return to the Company a sufficient amount of the 280G Payment (after reduction pursuant to clause (x) of the first paragraph of this Section) so that no portion of the remaining 280G Payment is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount was determined pursuant to clause (y) of the first paragraph of this Section, Executive will have no obligation to return any portion of the 280G Payment pursuant to the preceding sentence.

		
	13.
	MISCELLANEOUS.

(a)Taxes. Executive shall be responsible for the payment of any taxes due on any and all compensation, stock option, or benefit provided by the Company pursuant to this Agreement which are not withheld by the Company. Executive agrees to indemnify and hold harmless the Company from any and all claims or penalties asserted against the Company arising from Executive’s failure to pay taxes due on any compensation, stock option, or benefit provided by the Company pursuant to this Agreement. Executive expressly acknowledges that the Company has not made any representation about the tax consequences of any consideration provided by the Company to Executive pursuant to this Agreement.

(b)Modification/Waiver. This Agreement may not be amended, modified, superseded, canceled, renewed or expanded, or any terms or covenants hereof waived, except by a writing executed by each of the Parties or, in the case of a waiver, by the Party waiving compliance. Failure of any Party at any time to require performance of any provision hereof shall in no manner affect his, her or its right at a later time to enforce such provision. No waiver by a Party of a breach of this Agreement shall be deemed to be or construed as a waiver of any other breach of any term or condition contained in the Agreement.

(c)Successors and Assigns. This Agreement may be assigned by the Company to an affiliated entity or to any successor or assignee of the Company with or without Executive’s consent. This Agreement shall not be assignable by Executive.

(d)Notices. All notices to be given hereunder shall be in writing and shall be deemed to have been duly given on: the date personally or hand delivered; one (1) day after being sent by internationally- recognized overnight delivery courier; and three (3) days after being sent by certified mail, return receipt requested. Notices mailed to Executive shall be sent to Executive’s last home address as reflected in the Company’s personnel records. Executive promptly shall notify Company of any change in Executive’s address. Notices to be issued to the Company shall be directed to the CEO and shall be mailed to the Company’s headquarters.

(e)Dispute Resolution. To aid in the rapid and economical resolution of any disputes that may arise in 

Exhibit 10.2

the course of Executive’s employment relationship, the Parties agree that any and all disputes, claims, or demands arising from or relating to the terms of this Agreement (including but not limited to the Proprietary Information Agreement incorporated by reference herein), Executive’s employment relationship with the Company, or the termination of that relationship (including statutory claims), shall be resolved, to the fullest extent permitted by law, by final, binding and confidential arbitration in Austin, Texas conducted before a single neutral arbitrator by JAMS, Inc. (“JAMS”) or its successor, under the then applicable JAMS Arbitration Rules and Procedures for Employment Disputes (available at http://www.jamsadr.com/rules-employment-arbitration/) and subject to JAMS’ Policy on Employment Arbitration Minimum Standards of Procedural Fairness. The Parties acknowledge that by agreeing to this arbitration procedure, they waive the right to resolve any such dispute, claim or demand through a trial by jury or judge or by administrative proceeding. Executive will have the right to be represented by legal counsel at any arbitration proceeding, at Executive’s expense. The arbitrator shall: (a) have authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be available under applicable law in a court proceeding; (b) issue a written statement signed by the arbitrator regarding the disposition of each claim and the relief, if any, awarded as to each claim, the reasons for the award, and the arbitrator’s essential findings and conclusions on which the award is based; and (c) have authority to, in the arbitrator’s discretion, award recovery of attorneys’ fees and costs to the prevailing party. The Company shall pay all JAMS’ arbitration fees. Nothing in this Agreement is intended to prevent either Party from obtaining injunctive relief in a court of applicable jurisdiction to prevent irreparable harm pending the conclusion of any arbitration; or from enforcing any arbitration award in a court of applicable jurisdiction.

(f)Entire Agreement.  This Agreement, together with the Exhibits, sets forth the complete and exclusive agreement and understanding of the Parties with regard to the subject matter hereof, and supersedes   any   and   all   prior   or   contemporaneous   agreements,   promises,   representations,   or communications, written or oral, pertaining to the subject matter hereof. If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination will not affect any other provision of this Agreement, and the invalid or unenforceable provision shall be modified to render it valid and enforceable consistent with the intent of the parties insofar as possible under applicable law.  For purposes of construing this Agreement, any ambiguities shall not be construed against any party as the drafter. This Agreement may be executed in counterparts, which shall be deemed to be part of one original, and  facsimile  signatures,  signatures  transmitted  by  .PDF,  as  well  as  electronic  signatures,  shall  be equivalent  to  original  signatures.  The  validity,  interpretation,  construction  and  performance  of  this Agreement shall be governed by the laws of the State of Iowa, without regard to conflict of laws principles.

IN WITNESS WHEREOF, the Parties have each duly executed this Agreement as of the date written above to indicate their understanding and acceptance of all of the above-stated terms and conditions.

Lumos Pharma Inc. 

By:    _/s/ Brad Powers_________________________

Its:    _General Counsel________________________

Executive

__/s/ John C. McKew__________________________

Exhibit 10.2

EXHIBIT A

EMPLOYEE PROPRIETARY INFORMATION AGREEMENT EMPLOYEE PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT
This Employee Proprietary Information, Inventions, Non-competition, and Non-solicitation Agreement (this “Agreement”) is made in consideration for my employment or continued employment by Lumos Pharma, Inc. or any of its subsidiaries (the “Company”), and the compensation now and hereafter paid to me.  I hereby agree as follows:

1.NONDISCLOSURE.

1.1    Recognition of Company’s Rights; Nondisclosure. At all times during my employment and thereafter, I will hold in strictest confidence and will not disclose, use, lecture upon or publish any of the Company’s Proprietary Information (defined below), except as such disclosure, use or publication may be required in connection with my work for the Company, or unless an officer of the Company expressly authorizes such in writing. I will obtain Company’s written approval before publishing or submitting for publication any material (written, verbal, or otherwise) that relates to my work at Company and/or incorporates any Proprietary Information. I hereby assign to the Company any rights I may have or acquire in such Proprietary Information and recognize that all Proprietary Information shall be the sole property of the Company and its assigns.

1.2    Proprietary Information. The term “Proprietary Information” shall mean any and all confidential and/or proprietary knowledge, data or information of the Company. By way of illustration but not limitation, “Proprietary Information” includes (a) tangible and intangible information relating to antibodies and other biological materials, cell lines, samples of assay components, media and/or cell lines and procedures and formulations for producing any such assay components, media and/or cell lines, formulations, products, processes, know-how, designs, formulas, methods, developmental or experimental work, clinical data, improvements, discoveries, plans for research, new products, marketing and selling, business plans, budgets and unpublished financial statements, licenses, prices and costs, suppliers and customers, and information regarding the skills and compensation of other employees of the Company; (b) trade secrets, inventions, mask works, ideas, processes, formulas, source and object codes, data, programs, other works of authorship, know-how, improvements, discoveries, developments, designs and techniques (hereinafter collectively referred to as “Inventions”); (c) information regarding plans for research, development, new products, marketing and selling, business plans, budgets and unpublished financial statements, licenses, prices and costs, suppliers and customers; and (d) information regarding the skills and compensation of other employees of the Company. Notwithstanding the foregoing, it is understood that, at all such times, I am free to use information which is generally known in the trade or industry, which is not gained as result of a breach of this Agreement, and my own, skill, knowledge, know-how and experience to whatever extent and in whichever way I wish.

1.3    Third Party Information. I understand, in addition, that the Company has received and in the future will receive from third parties confidential or proprietary information (“Third Party Information”) subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. During the term of my employment and thereafter, I will hold Third Party Information in the strictest confidence and will not disclose to anyone (other than Company personnel who need to know such information in connection with their work for the Company) or use, except in connection with my work for the Company, Third Party Information unless expressly authorized by an officer of the Company in writing.

1.4    No Improper Use of Information of Prior Employers and Others. During my employment by the Company I will not improperly use or disclose any confidential information or trade secrets, if any, of any third party, including but not limited to any former employer or any other person or entity to whom I
A-1

Exhibit 10.2

have an obligation of confidentiality, and I will not bring onto the premises of the Company any unpublished documents or any property belonging to any third party, including but not limited to any former employer or any other person or entity to whom I have an obligation of confidentiality unless consented to in writing by that third party. I will use in the performance of my duties only information which is generally known and used by persons with training and experience comparable to my own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided, obtained, or developed by or for the Company.

		
	2.
	ASSIGNMENT OF INVENTIONS.

2.1    Proprietary Rights. The term “Proprietary Rights” shall mean all trade secret, patent, copyright, mask work and other intellectual property rights throughout the world.

2.2    Prior Inventions. Inventions, if any, patented or unpatented, which I made prior to the commencement of my employment with the Company are excluded from the scope of this Agreement. To preclude any possible uncertainty, I have set forth on Exhibit A (Previous Inventions) attached hereto a complete list of all Inventions that I have, alone or jointly with others, conceived, developed or reduced to practice or caused to be conceived, developed or reduced to practice prior to the commencement of my employment with the Company, that I consider to be my property or the property of third parties and that I wish to have excluded from the scope of this Agreement (collectively referred to as “Prior Inventions”). If disclosure of any such Prior Invention would cause me to violate any prior confidentiality agreement, I understand that I am not to list such Prior Inventions in Exhibit A but am only to disclose a cursory name for each such invention, a listing of the party (ies) to whom it belongs and the fact that full disclosure as to such inventions has not been made for that reason. A space is provided on Exhibit A for such purpose. If no such disclosure is attached, I represent that there are no Prior Inventions. If, in the course of my employment with the Company, I incorporate a Prior Invention into a Company product, process or machine, the Company is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual, worldwide license (with rights to sublicense through multiple tiers of sublicensees) to make, have made, modify, use and sell such Prior Invention. Notwithstanding the foregoing, I agree that I will not incorporate, or permit to be incorporated, Prior Inventions in any Company Inventions without the Company’s prior written consent.

2.3    Assignment of Inventions. Subject to Sections 2.4, and 2.6, I hereby assign and agree to assign in the future (when any such Inventions or Proprietary Rights are first reduced to practice or first fixed in a tangible medium, as applicable) to the Company all my right, title and interest in and to any and all Inventions (and all Proprietary Rights with respect thereto) whether or not patentable or registrable under copyright or similar statutes, made or conceived or reduced to practice or learned by me, either alone or jointly with others, during the period of my employment with the Company. Inventions assigned to the Company, or to a third party as directed by the Company pursuant to this Section 2, are hereinafter referred to as “Company Inventions.”

2.4    Nonassignable Inventions. I recognize that, in the event of a specifically applicable state law, regulation, rule, or public policy (“Specific Inventions Law”), this Agreement will not be deemed to require assignment of any invention which qualifies fully for protection under a Specific Inventions Law by virtue of the fact that any such invention was, for example, developed entirely on my own time without using the Company’s equipment, supplies, facilities, or trade secrets and neither related to the Company’s actual or demonstrably anticipated business, research or development, nor resulted from work performed by me for the Company. In the absence of a Specific Inventions Law, the preceding sentence will not apply.

2.5    Obligation to Keep Company Informed. During the period of my employment with the Company, I will promptly disclose to the Company fully and in writing all Inventions authored, conceived or reduced to practice by me, either alone or jointly with others; and all patent applications filed by me or on my behalf. At the time of each such disclosure, I will advise the Company in writing of any Inventions that I believe fully qualify for protection under the provisions of a Specific Inventions Law; and I will at that time provide to the Company in writing all evidence necessary to substantiate that belief. The Company will keep in confidence and will not use for any purpose or disclose to third parties without my consent any confidential information disclosed in writing to the Company pursuant to this Agreement relating to Inventions that qualify fully for protection under a Specific Inventions Law. I will preserve the confidentiality of any Invention that does not fully qualify for protection under a Specific Inventions 

Exhibit 10.2

Law.

2.6    Government or Third Party. I also agree to assign all my right, title and interest in and to any particular Company Invention to a third party, including without limitation the United States, as directed by the Company.

2.7    Works for Hire. I acknowledge that all original works of authorship which are made by me (solely or jointly with others) within the scope of my employment at the Company and which are protectable by copyright are “works made for hire,” pursuant to United States Copyright Act (17 U.S.C., Section 101).

2.8    Enforcement of Proprietary Rights.

(i)Obligation to Assist. I will assist the Company in every proper way to obtain, and from time to time enforce, United States and foreign Proprietary Rights relating to Company Inventions in any and all countries. To that end I will execute, verify and deliver such documents and perform such other acts (including appearances as a witness) as the Company may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing such Proprietary Rights and the assignment thereof. In addition, I will execute, verify and deliver assignments of such Proprietary Rights to the Company or its designee. My obligation to assist the Company with respect to Proprietary Rights relating to such Company Inventions in any and all countries shall continue beyond the termination of my employment, but the Company shall compensate me at a reasonable rate after my termination for time actually spent by me at the Company’s request on such assistance.

(ii)Appointment of Attorney in Fact. In the event the Company is unable for any reason, after reasonable effort, to secure my signature on any document needed in connection with the actions specified in the preceding paragraph, I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and attorney in fact, which appointment is coupled with an interest, to act for and in my behalf to execute, verify and file any such documents and to do all other lawfully permitted acts to further the purposes of the preceding paragraph with the same legal force and effect as if executed by me. I hereby waive and quitclaim to the Company any and all claims, of any nature whatsoever, which I now or may hereafter have for infringement of any Proprietary Rights assigned hereunder to the Company.

3.NO CONFLICTS, NON-SOLICITATION, AND NON-INTERFERENCE. I acknowledge that during my employment I will have access to and knowledge of Proprietary Information. To protect the Company’s Proprietary Information, I agree that during the period of my employment by the Company I will not, without the Company’s express written consent, engage in any other employment or business activity directly related to the business in which the Company is now involved or becomes involved, nor will I engage in any other activities which conflict with my obligations to the Company or the interests of the Company. For the period of my employment by the Company and continuing until one year after my last day of employment with the Company, I will not: (a) directly or indirectly induce any employee of the Company to terminate or reduce his or her relationship with the Company; (b) solicit the business of any Client or Customer of the Company (other than on behalf of the Company) for any competitive purpose; or (c) induce any supplier, vendor, consultant or independent contractor of the Company to terminate or reduce his, her or its relationship with the Company. I agree that for purposes of this Agreement, a “Client or Customer” is any person or entity with whom or which, at any time during the two year period prior to my last day of employment with the Company, (i) I had direct dealings; (ii) an individual whom I supervised had direct dealings; or (iii) about whom or which I obtained confidential information. If any restriction set forth in this Section is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be interpreted to extend only over the maximum period of time, range of activities or geographic area as to which it may be enforceable.

4.COVENANT NOT TO COMPETE. I acknowledge that during my employment I will have access to and knowledge of Proprietary Information. To protect the Company’s Proprietary Information, I agree that during my employment with the Company, whether full-time or part-time, and for a period of one year after my last day of employment with the Company, I will not directly or indirectly engage in (whether as an employee, consultant, proprietor, partner, director or otherwise), or have any ownership interest in, or participate in the financing, operation, management or control of, any person, entity, corporation or business that engages in a “Restricted Business” in a 

Exhibit 10.2

“Restricted Territory” (as defined below). It is agreed that ownership of (i) no more than one percent (1%) of the outstanding voting stock of a publicly traded corporation, or (ii) any stock I presently own shall not constitute a violation of this provision.

4.1    Reasonable. I agree and acknowledge that the time limitation on the restrictions in this paragraph, combined with the geographic scope, is reasonable. I also acknowledge and agree that this paragraph is reasonably necessary for the protection of the Company’s Proprietary Information as defined in paragraph
1.2 herein, that through my employment I shall receive adequate consideration for any loss of opportunity associated with the provisions herein, and that these provisions provide a reasonable way of protecting the Company’s business value, some of which will be imparted to me in the ordinary course of my employment with the Company. If any restriction set forth in this paragraph 4 is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be interpreted to extend only over the maximum period of time, range of activities or geographic area as to which it may be enforceable.

4.2    As used herein, the terms:

(i)“Restricted Business” shall mean a business that is engaged in or is preparing to engage in any of the areas that the Company is actively pursuing, including but not limited to research, development and/or commercialization of (1) one or more products for the treatment of any rare disease based upon the Company’s LUM-201 technology platform; (2) one or more products for the treatment of any rare disease utilizing growth hormone, recombinant growth hormone, or any isoforms, analogs or secretagogues thereof; (3) vaccines against the Ebola virus; or (4) any other area of research, development, or commercialization drug or biologic candidate which is intended to address a rare disease that (i) is the subject area of research, development, or commercialization in which the Company or any subsidiary is engaged pursuant to a program which is being materially funded by the Company, a strategic partner of the Company, and/or a grant to the Company and (ii) as to which I participated in or was familiar with the details of such research, development or commercialization during my time of my employment with Company or regarding which I possess Confidential Information. For purposes of the preceding sentence, the determination of the scope of the Company’s business activities shall be made as of the date of termination of my employment.

(ii)“Restricted Territory” shall mean any state, county, or locality in the United States in which the Company conducts business and any other country, city, state, jurisdiction, or territory in which the Company does business or plans to do business.

5.RECORDS. I agree to keep and maintain adequate and current records (in the form of notes, sketches, drawings and any other form that may be required by the Company) of all Proprietary Information developed by me and all Company Inventions made by me during the period of my employment at the Company, which records shall be available to and remain the sole property of the Company at all times.

6.NO CONFLICTING OBLIGATION. I represent that my performance of all the terms of this Agreement and as an employee of the Company does not and will not breach any agreement to keep in confidence information acquired by me in confidence or in trust prior to my employment by the Company, nor any other lawful obligation I have to any third party. I have not entered into, and I agree I will not enter into, any agreement either written or oral in conflict herewith.

7.RETURN OF COMPANY MATERIALS. When I leave the employ of the Company, or earlier if requested by the Company, I will deliver to the Company any and all drawings, notes, memoranda, specifications, devices, formulas, documents, materials, and tangible or intangible property of the Company together with all copies thereof, and any other material containing or embodying any Company Inventions, Third Party Information or Proprietary Information of the Company without retaining any reproductions or embodiments thereof in whole or in part and in any medium. By way of example, such items include but are not limited to: Company files, records, plans, forecasts, reports, studies, analyses, proposals, agreements, financial information, information regarding potential business development partners, research and development information, sales and marketing information, operational and 

Exhibit 10.2

personnel information, code, software, databases, computer-recorded information, and tangible property and equipment (including, but not limited to, computers, data storage devices, facsimile machines, mobile telephones, servers, credit cards, entry cards, identification badges and keys). In addition, if I have used any personal computer, server, or e-mail system to receive, store, review, prepare or transmit any Company information, including but not limited to, Confidential Information, I agree to provide Company with a computer-useable copy of all such Confidential Information and then permanently delete and expunge such Confidential Information from those systems; and I agree to provide Company access to my system as reasonably requested to verify that the necessary copying and/or deletion is completed. I further agree that any property situated on the Company’s premises and owned by the Company, including disks and other storage media, filing cabinets or other work areas, is subject to inspection by Company personnel at any time with or without notice.

		
	8.
	LEGAL AND EQUITABLE REMEDIES. Because my services are personal and unique and because I may have access to and become acquainted with the Proprietary Information of the Company, the Company shall have the right to enforce this Agreement and any of its provisions by injunction, specific performance or other equitable relief, without bond and without prejudice to any other rights and remedies that the Company may have for a breach of this Agreement.

9.NOTICES. Any notices required or permitted hereunder shall be given to the appropriate party at the address specified below or at such other address as the party shall specify in writing. Such notice shall be deemed given upon personal delivery or express delivery service (e.g., FedEx) to the appropriate address; upon delivery via facsimile; or if sent by certified or registered mail, three days after the date of mailing.

10.NOTIFICATION OF NEW EMPLOYER. In the event that I leave the employ of the Company, I hereby consent to the notification of my new employer of my rights and obligations under this Agreement.

		
	11.
	GENERAL PROVISIONS.

11.1    Governing Law; Consent to Personal Jurisdiction and Exclusive Forum. This Agreement will be governed by and construed according to the laws of the State of Texas as such laws are applied to agreements entered into and to be performed entirely within Texas between Texas residents. I hereby expressly understand and consent that my employment is a transaction of business in the State of Texas and constitutes the minimum contacts necessary to make me subject to the personal jurisdiction of the federal courts located in the State of Texas, and the state courts located in the County of Travis, Texas, for any lawsuit filed against me by Company arising from or related to this Agreement. I agree and acknowledge that any controversy arising out of or relating to this Agreement or the breach thereof, or any claim or action to enforce this Agreement or portion thereof, or any controversy or claim requiring interpretation of this Agreement must be brought in a forum located within the State of Texas. No such action may be brought in any forum outside the State of Texas. Any action brought in contravention of this paragraph by one party is subject to dismissal at any time and at any stage of the proceedings by the other, and no action taken by the other in defending, counter claiming or appealing shall be construed as a waiver of this right to immediate dismissal. A party bringing an action in contravention of this paragraph shall be liable to the other party for the costs, expenses and attorney’s fees incurred in successfully dismissing the action or successfully transferring the action to the federal courts located in the State of Texas, or the state courts located in the County of Travis, Texas.

11.2    Severability. In case any one or more of the provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect the other provisions of this Agreement; this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein; and such provision shall be deemed modified and enforceable, insofar as possible consistent with its original intent. By way of example, if, moreover, any one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope, activity or subject, it shall be construed by limiting and reducing it, so as to be enforceable to the extent compatible with the applicable law as it shall then appear.

11.3    Successors and Assigns. This Agreement will be binding upon my heirs, executors, administrators and other legal representatives and will be for the benefit of the Company, its successors, and its assigns. My obligations under 

Exhibit 10.2

this Agreement are not assignable to any party.

11.4    Survival. The provisions of this Agreement shall survive the termination of my employment and the assignment of this Agreement by the Company to any successor in interest or other assignee.

11.5    Employment. I agree and understand that my employment is at-will which means I or the Company each have the right to terminate my employment, with or without advanced notice and with or without cause. I further agree and understand that nothing in this Agreement shall confer any right with respect to continuation of employment by the Company, nor shall it interfere in any way with my right or the Company’s right to terminate my employment at any time, with or without cause.

11.6    Waiver. To be valid, any waiver by me or the Company of any breach of this Agreement or right hereunder shall be specifically stated in writing, and shall not be a waiver of any preceding or succeeding breach unless so specifically stated. No waiver of any right under this Agreement and applicable law shall be construed as a waiver of any other right. Neither party shall be required to give notice to enforce strict adherence to all terms of this Agreement.

11.7    Entire Agreement. The obligations pursuant to this Agreement shall apply to any time during which I was previously, or am in the future, employed or engaged as a consultant by the Company, if no other agreement governs the subject matter thereof. This Agreement is the final, complete and exclusive agreement of the parties with respect to the subject matter hereof and supersedes and merges all prior communications and representations with respect to such subject matter. No modification of or amendment to this Agreement will be effective unless in writing and signed by the party to be charged. Any subsequent changes in my duties, salary or compensation will not affect the validity or scope of this Agreement.

Exhibit 10.2

EMPLOYEE PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT ACKNOWLEDGEMENT FORM
I acknowledge that I have been given a copy of the Employee Proprietary Information and Inventions Agreement, that I have read it, and that I understand its terms and procedures. Furthermore, I agree to abide by it and understand that if Lumos Pharma determines my conduct warrants it, I may be subject to discipline for breaches hereof, up to and including the immediate termination of my employment.

  John C. McKew             
                    
Employee’s Name (Please Print)

  /s/ John C. McKew         
                    
Employee’s Signature

   4/1/2020                            
                    
Date

Exhibit 10.2

EXHIBIT B

RELEASE

[To be signed on or within twenty-one (21) days after the Separation Date]

My employment with Lumos Pharma Inc. (the “Company”) ended in all capacities on                               (the “Separation Date”). I hereby confirm that I have been paid all compensation owed to me by the Company for all hours worked; I have received all the leave and leave benefits and protections for which I was eligible, pursuant to the Company’s policies, applicable law, or otherwise; and I have not suffered any on-the-job injury or illness for which I have not already filed a workers’ compensation claim.

If I choose to enter into this Release and allow it to become effective by its terms, the Company will provide me with certain severance benefits pursuant to the terms of the Employment Agreement between me and the Company dated 27 March, 2020 (the “Agreement”). I understand that I am not entitled to such severance benefits unless I return this fully-executed Release to the Company within twenty-one (21) days after the Separation Date, and allow this Release to become fully effective and non-revocable by its terms. (Capitalized terms used but not defined in this Release shall have the meaning ascribed to them in the Agreement.)

In exchange for the severance benefits to which I would not otherwise be entitled, I hereby generally and completely release the Company and its directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates, and assigns (collectively, the “Released Parties”) from any and all claims, liabilities and obligations, both known and unknown, arising from or in any way related to events, acts, conduct, or omissions occurring prior to or at the time that I sign this Release, including but not limited to claims arising from or in any way related to my employment with the Company or the termination of that employment (collectively, the “Released Claims”). By way of example, the Released claims include, but are not limited to: (1) all claims related to my compensation or benefits from the Company, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company; (2) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (3) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (4) all federal, state, and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), and Iowa state law.

Notwithstanding the foregoing, the following are not included in the Released Claims (the “Excluded Claims”): (a) any claims for breach of the Agreement arising after the date on which I sign this Release; (2) claims for reimbursement of properly incurred business expenses prior to and through the Separation Date which are submitted to the Company for reimbursement within thirty (30) days after the Separation Date; (3) all rights I have in respect of the Equity Awards; (4) all claims for or rights to indemnification pursuant to the articles of incorporation and bylaws of the Company, any indemnification agreement to which I am a party, or under applicable law; and (5) all claims which cannot be waived as a matter of law. I understand that nothing in this Release prevents me from filing, cooperating with, or participating in any proceeding before the Equal Employment Opportunity Commission, the Department of Labor, or any other government agency, except that I acknowledge and agree that I am hereby waiving my right to any monetary benefits in connection with any such claim, charge or proceeding. I hereby represent and warrant that, other than the Excluded Claims, I am not aware of any claims that I have or might have against any of the parties released above that are not included in the Released Claims.

Exhibit 10.2

[IF EXECUTIVE IS 40 YEARS OF AGE OR OLDER] I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under the ADEA, and that the consideration given for this Release is in addition to anything of value to which I was already entitled. I further acknowledge that I have been advised, as required by the ADEA, that: (a) my waiver and release does not apply to any rights or claims that may arise after the date I sign this Release; (b) I have been advised that I have the right to consult with an attorney prior to executing this Release (although I may choose voluntarily not to do so); (c) I have been given twenty-one (21) days to consider this Release (although I may choose voluntarily to sign it earlier); (d) I have seven (7) days following my execution of this Release to revoke my acceptance of it (with such revocation to be delivered in writing to the Company within the 7-day revocation period); and (e) this Release will not be effective until the date upon which the revocation period has expired, which will be the eighth day after I sign it, provided I do not earlier revoke it (“Effective Date”).

I further agree: (a) not to disparage the Company or any of the other Released Parties, in any manner likely to be harmful to its or their business, business reputation or personal reputation (although I may respond accurately and fully to any question, inquiry or request for information as required by legal process); (b) not to voluntarily (except in response to legal compulsion) assist any third party in bringing or pursuing any proposed or pending litigation, arbitration, administrative claim or other formal proceedings against the Company, its affiliates, officers, directors, employees or agents; and (c) to reasonably cooperate with the Company by voluntarily (without legal compulsion) providing accurate and complete information, in connection with the Company’s actual or contemplated defense, prosecution or investigation of any claims or demands by or against third parties, or other matters, arising from events, acts, or omissions that occurred during my employment with the Company. I hereby certify that I have returned, without retaining any reproductions (in whole or in part), all information, materials and other property of the Company, including but not limited to any such information, materials or property contained on any personally-owned electronic or other storage device (such as computer, cellular phone, PDA, tablet or the like).

This Release, together with the Agreement (including all Exhibits and documents incorporated therein by reference), constitutes the complete, final and exclusive embodiment of the entire agreement between me and the Company with regard to this subject matter. It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained in the Release or the Agreement, and it entirely supersedes any other such promises, warranties or representations, whether oral or written.

Reviewed, Understood and Agreed:

By: .                                                                       Date: .Exhibit 10.1

 

SECOND  AMENDED AND RESTATED SIMMONS  FIRST  NATIONAL   CORPORATION  2015  INCENTIVE PLAN

    	 

    	 

    

 TABLE OF CONTENTS ARTICLE  1 .   INTRODUCTION  .................................................................................................. 1 1.1. Purpose  of the Plan. ........................................................................................................ 1 1.2. Nature of Awards. ........................................................................................................... 1 1.3. Effective Date and Term  of  Plan.  ................................................................................... 1 ARTICLE  2 .  DEFINITIONS AND CONSTRUCTION  .............................................................. 2  2.1. Definitions.................................................................................................................. ... ..  2 2.2. Construction. ................................................................................................................... 5 ARTICLE  3 .   ELIGIBILITY  ......................................................................................................... 6 3.1. In  General...................................................................................................................... .. 6 ARTICLE  4 .  ADMINISTRATION OF  THE PLAN.................................................................... 7  4.1. In  General...................................................................................................................... .. 7 4.2. Delegation  to  Committees and  Officers.......................................................................... 7 ARTICLE  5 .  STOCK  SUBJECT  TO THE PLAN  ....................................................................... 9  5.1. Number  of  Shares.  .......................................................................................................... 9 5.2. Substitute Awards. .......................................................................................................... 9 ARTICLE  6 .  TYPES  OF AWARDS .......................................................................................... 10 6.1. Stock Options.............................................................................................................. .. 10 6.2. Stock  Appreciation  Rights. ........................................................................................... 13 6.3. Restricted  Stock. ........................................................................................................... 13 6.4. Restricted  Stock Units................................................................................................... 14 6.5. Performance Shares.  ..................................................................................................... 14 6.6. Other Stock - Based  Awards........................................................................................... 15 6.7. Cash Awards.  ................................................................................................................ 15 6.8. Performance - Based  Awards.......................................................................................... 15 ARTICLE  7 .  ADJUSTMENTS .................................................................................................. 18 7.1. Changes  in Capitalization. ............................................................................................ 18 7.2. Change in Control. ........................................................................................................ 18 ARTICLE  8 . GENERAL  PROVISIONS APPLICABLE TO  ALL AWARDS......................... 20  8.1. Transferability  of  Awards. ............................................................................................ 20 8.2. Termination  of Status.................................................................................................... 20 8.3. Withholding.  ................................................................................................................. 20 8.4. Conditions on  Delivery  of  Stock................................................................................... 21 8.5. Acceleration.  ................................................................................................................. 21 Second  Amended and Restated  S FNC  2015 Incentive Plan Table of Contents

    	 

    	 

    

ARTICLE  9 .   MISCELLANEOUS  ............................................................................................. 22 9.1. No Right  to  Employment  or  Other Status. .................................................................... 22 9.2. No Rights as  Stockholder.............................................................................................. 22 9.3. Amendment.................................................................................................................. . 22 9.4. Compliance with Code Section  409A. .......................................................................... 23 9.5. Governing Law.  ............................................................................................................ 23 9.6. Clawback Rights.  .......................................................................................................... 23 Second  Amended and Restated  S FNC  2015 Incentive Plan Table of Contents

    	 

    	 

    

ARTICLE 1. INTRODUCTION 1. Purpose of  the Plan. The  Plan  is  intended to enhance the Company’s ability to attract,  retain and   motivate its employees, officers, directors, consultants,  and  advisors,  and  to provide   them  with  equity ownership opportunities and performance - based incentives that   are intended to align their  interests  with those  of  the Company’s stockholders. 2. Nature  of Awards. The  Plan permits the grant  of  Stock Options, Stock Appreciation Rights, shares  of   Restricted Stock, Restricted Stock Units, Performance Shares,  and any other  form   of award based on  the  value (or  the increase  in  value)  of  shares  of  the common stock   of  the Company.  The Plan also  permits  cash  incentive awards. Subject  to Section  8.5 ,  Participants shall  vest in  their Awards granted under the Plan to the extent   certain conditions  set  forth  in  their Award Certificate are met. Vesting criteria may include the passage  of  time (generally full vesting will  not   occur  until  three years  or  more from  the date of grant) or  the attainment  of   individual and/or Company performance  objectives, or a  combination  of  both.  No   time - based stock option granted under the  Plan  may  vest  prior to the expiration  of   at  least  one year  from the date  of grant.  Except  as  otherwise provided  by  the Plan,   each Award  may be  made  alone, in  addition  or in  relation  to, or in  tandem with  any   other  Award.  The  terms  of  each Award  need not be  identical, and the   Administrator  need not  treat Participants uniformly. 3. Effective Date and  Term  of Plan. The Plan  was originally  effective  as  of  July 1,  2015 .  The Second Amended and   Restated Plan is effective as of July 1, 2020.  No  Awards  shall  be granted  under  the   Plan  after June 30,  2030  (or such earlier  date as may apply  under section  422  of  the   Code), but Awards previously granted may  extend  beyond that date. S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 1

    	 

    	 

    

ARTICLE 2. DEFINITIONS AND CONSTRUCTION 1. Definitions. When used in  this 2015 Incentive Plan,  the  following terms shall  have  the meanings   set  forth  below,  unless the  context  clearly requires  a  different meaning: (a) “ Administrator ”  means  the entity that administers the plan  in   accordance with Article 4. (b) “ Article ”  means  an  article  of  the Plan. (c) “ Award ”  means  an award  issued under  the Plan. (d) “ Award Certificate ”  means  the  agreement,  certificate  or other   document evidencing  an  Award,  which  shall  be in  such form (written,   electronic  or otherwise) as  the Administrator shall determine. (e) “ Board ”  means the Board  of  Directors  of  the Company. (f) “ Cause ”  shall  have the meaning assigned such  term in  the   employment, severance  or  similar agreement,  if  any,  between  such   Participant  and  the Company  or an  Affiliate;  provided ,  however , that  if   there  is no  such employment, severance  or  similar  agreement in which   such term  is  defined,  and unless otherwise  defined  in  the applicable   Award Certificate, “Cause”  shall  mean any  of  the following acts by the   Participant,  as  determined  by  the Administrator: gross neglect  of  duty,   prolonged absence  from  duty without  the  consent  of  the Company,   material breach by the Participant  of any  published Company  code  of   conduct  or  code  of ethics; or  willful misconduct, misfeasance  or   malfeasance  of  duty  which is  reasonably determined to  be  detrimental   to  the  Company.  With  respect  to a  Participant’s termination  of   directorship, “Cause” means  an  act  or  failure to act  that  constitutes   cause for  removal of a  director  under  applicable Arkansas law. The   determination  of  the Committee  as  to  the  existence  of  “Cause”  shall be   conclusive  on  the Participant  and  the Company. (g) “ Change in Control ”  shall  mean that  any one of  the following apply: (1) the  acquisition  by  any  individual, entity  or  group (within the   meaning  of  section 13(d)(3)  or 14(d)(2) of the Securities Exchange Act  of  1934,  as  amended  (the  “Exchange Act”))  (a   “Person”),  of  beneficial ownership (within the meaning  of   Rule 13d - 3 promulgated under the  Exchange  Act)  of 50% or more  of  either (A) the then - outstanding shares  of  the Company’s   common stock (the “Outstanding Company Common Stock”) or S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 2

    	 

    	 

    

(B) the  combined  voting power  of  the then - outstanding voting   securities  of  the Company  entitled  to  vote  generally  in  the   election  of  directors  (the  “Outstanding Company Voting Securities”).  For  purposes  of  this paragraph  (1),  the following   acquisitions  by a  Person will  not  constitute  a  Change  in Control: (i) any  acquisition directly from  the  Company;  (ii) any   acquisition  by  the Company;  or (iii) any  acquisition  by any employee  benefit  plan  (or  related trust) sponsored  or  maintained   by  the Company  or any  entity controlled  by  the Company; (2) the individuals  who, as of  the Effective Date, constitute the   Board  (the  “Incumbent Board”) cease for  any reason  to   constitute  at  least  a  majority  of  the Board. Any individual   becoming a  director  subsequent to  the Effective  Date  whose   election,  or  nomination  for election by  the Company’s   stockholders,  is  approved  by a vote of at  least  a  majority  of  the   directors then  comprising  the Incumbent Board  will be   considered  a  member  of  the Incumbent Board  as of  the Effective   Date,  but any  such individual  whose  initial assumption  of  office   occurs  as a  result  of  an actual  or  threatened  election  contest   with  respect  to  the election  or removal of  directors  or other   actual  or  threatened solicitation  of  proxies  or  consents  by or on   behalf of a  person  other  than the Incumbent Board will  not be   deemed  a  member  of  the Incumbent Board  as of  the Effective   Date; (3) the consummation  of a  reorganization, merger, consolidation  or   sale or other  disposition  of all or  substantially all  of  the assets  of   the Company  (a  “Business Combination”), unless following such   Business Combination:  (A)  the individuals  and entities who   were  the beneficial owners, respectively,  of  the Outstanding   Company Common  Stock and  Outstanding Company Voting   Securities immediately prior to such Business Combination   beneficially own, directly  or  indirectly, more than  50%  of,   respectively, the then - outstanding shares  of common  stock  and   the  combined  voting power  of  the then - outstanding voting   securities  entitled  to  vote  generally  in  the election  of  directors,   as  the case may  be, of  the entity resulting  from  such Business   Combination (including, without limitation,  a  corporation that   as a  result  of  such transaction  owns  the Company  or  all  or   substantially all  of  the  Company’s assets either directly  or   through  one or  more  subsidiaries) in  substantially the same   proportions to  one another as  their ownership, immediately   prior to such Business Combination  of  the Outstanding   Company Common  Stock and  Outstanding Company Voting S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 3

    	 

    	 

    

Securities,  as  the case  may be, (B) no  Person (excluding  any   entity resulting from such Business Combination  or any   employee benefit  plan  (or  related trust)  of the  Company  or  such   entity resulting from such Business  Combination),  directly  or   indirectly,  50% or  more  of,  respectively, the then - outstanding   shares  of common stock of  the entity resulting from such   Business Combination  or  the combined voting power  of  the then - outstanding voting securities  of  such entity except  to  the extent   that such ownership  existed  prior to the Business Combination   and  (C)  at least a  majority  of  the members  of  the Board  of   Directors  of  the  corporation  resulting from such Business   Combination were members  of  the Incumbent Board  at the  time   of  the  execution of  the initial  agreement, or of  the action  of  the   Board, providing  for  such Business Combination; or (4) the approval  by our  stockholders  of a complete  liquidation  or   dissolution  of  the Company.  To  the extent that  a  Change  in   Control  is a  payment triggering event with respect  to an  Award   that  is  subject  to  section  409A of  the Code,  no  payment shall  be   triggered  by an event  that does  not  constitute  a  change  in   control within the meaning  of  section 409A. (h) “ Code ”  means the Internal Revenue Code  of  1986,  as  amended  from   time  to time. (i) “ Company ”  means Simmons  First  National Corporation  or any   successor entity. (j) “ Compensation Committee ”  shall  mean the Compensation Committee   of  the Board,  which  shall consist  of not less  than two Board members,   all of whom are  “non - employee directors”  (within  the meaning  of  Rule   16b - 3 promulgated under the Securities Exchange Act  of  1934 (the   “Exchange Act”)). (k) “ Disability ”  shall  mean  a  disability within the meaning  of  the   Company’s long - term disability plan  in  which the Participant   participates,  and if  there  is no  such plan, within the meaning  of  the   federal  Social  Security Act. (l) “ Effective  Date ”  means the first date  set  forth  in  Section 1.3 . (m) “ Fair Market Value ” means the closing sales price  (for  the primary   trading session)  of a  Share  on  the  relevant  date.  For any  date that  is   not a  trading day, the  Fair  Market Value  of a  Share  for  such date will   be  determined  by  using the  closing  sale  price  for  the immediately   preceding trading day.  The  Compensation Committee can substitute a S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 4

    	 

    	 

    

particular time  of  day  or other  measure  of  “closing  sale  price”  if   appropriate because of unusual circumstances  or can  use  weighted   averages either  on a  daily basis  or  such longer period  as  complies with   section  409A of  the Code. (n) “ Participant ”  means any  person  or  entity eligible to  be  granted  an   Award pursuant to  Section 3.1. (o) “ Plan ”  means this 2015 Incentive Plan. (p) “ Performance Share ”  means  an  Award granted pursuant to  Section 6.5 (q) “ Restricted Stock ”  means  an  Award granted pursuant to  Section 6.3 . (r) “ Restricted Stock  Unit ”  means  an  Award granted pursuant to  Section  6.4 . (s) “ Section ”  means  a section of  the Plan. (t) “ Share ”  means  a share of common  stock  of the Company. (u) “ Stock Appreciation  Right ”  or  “SAR” means  an  Award granted   pursuant to  Section 6.2 . (v) “ Stock Option ”  means  an  Award granted pursuant to  Section  6.1 ;  a   Stock Option can  be  either  an  “Incentive Stock  Option” (if it  complies   with  the requirements  of Section  6.1(b) ) or a  “Nonqualified Stock   Option”  (if it  does  not  comply with the requirements  of Section 6.1(b) ). (w) “ Ten Percent Stockholder ”  means  a  Participant  who on the  date of   grant  is  treated under section 424(d)  of  the  Code  as owning  stock (not   including stock purchasable under outstanding options) possessing   more than  10% of  the total combined voting power  of all  classes  of  the   stock  of  the Company  or any  parent  or  subsidiary  of  the Company  as   defined  in  section 424(e)  or  (f)  of  the Code. 2.2. Construction. When used in  the Plan,  (a)  the terms “include”  and  “including” shall  be  deemed to   include the phrase “but  not  limited to”  and (b)  masculine pronouns shall include the   feminine. S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 5

    	 

    	 

    

ARTICLE 3. ELIGIBILITY 3.1. In General. Any person  or entity  is eligible to  be  granted  an  Award  if  such person  or  entity  is a   current employee, officer, director, independent contractor,  consultant, or  advisor  of   the Company  or any  of  the Company’s present  or  future parent  or  subsidiary   corporations  as  defined  in  sections  424(e) or  (f)  of  the Code  or any other  business   venture (including,  without  limitation,  a  joint venture  or  limited liability company)   in which  the  Company  has a  controlling interest,  as  determined  by Administrator. S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 6

    	 

    	 

    

ARTICLE 4. ADMINISTRATION  OF  THE PLAN 1. In General. (a) The  Plan  will be  administered  by  the Compensation Committee,  which   shall serve  as  the Administrator.  The  Administrator shall have   authority to grant Awards  and  determine recipients  and  terms  of any   Awards,  and  to adopt, amend  and repeal  such administrative rules,   guidelines  and  practices relating to the Plan  as it  shall deem advisable. (b) The  Administrator shall  have  full discretionary authority to construe   and  interpret the terms  of  the  Plan and  any Award Certificate, and to   determine  all  facts necessary to administer the  Plan and any  Award   Certificate.  The  Administrator may correct  any  defect, supply  any   omission  or  reconcile  any  inconsistency  in  the  Plan or any  Award   Certificate  in  the manner  and  to the extent  it  shall deem necessary  or   advisable. (c) All decisions  by  the Administrator shall  be  made  in  its sole discretion   and shall be  final  and  binding  on  all persons  having or  claiming any   interest  in  the Plan  or  in any  Award.  No  director  or  person  acting   pursuant to the authority delegated  by  the Administrator shall be   liable  for  any  action  or  determination relating to  or  under the Plan   made  in good faith. (d) With respect  to  Awards made to directors, the Board  shall  also have   the authority described  in  this Section  4.1  and  Section 8.5 . 2. Delegation  to  Committees  and Officers. (a) To  the extent permitted  by  applicable law, the Administrator may   delegate any  or  all  of  its powers under the  Plan  to  one or  more   committees  or  subcommittees  of  the Company’s management. (b) To  the extent permitted  by  applicable  law  and subject  to any   limitations under the  Plan,  the Administrator may delegate  to  one  or   more officers  of  the  Company  the power  (1)  to  grant  Awards to any   individual eligible under  Sectio n 3.1  other  than  a  director  or executive   officer  and (2)  to exercise such  other  powers under the  Plan as  the   Administrator may determine; provided further, however, that no   officer  shall be  authorized to grant Awards to himself  or  herself.  For   purposes  of  this Section  4.2(b) ,  the phrase “executive officer” shall   mean the Chief Executive Officer, President,  and any  “executive   officer”  (as  defined  by  Rule  3b - 7  under the Exchange Act)  and  “officers”   (as defined  by  Rule 16a - 1 under the Exchange Act). S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 7

    	 

    	 

    

(c) All references  in  the  Plan  to the “Administrator”  shall  mean the   Administrator  or a  committee  of  the Board  (or  the Company’s   management) or  the officers referred to  in  Section  4.2(b)  to the extent   that  the  Administrator’s powers  or  authority under the  Plan  have  been   delegated to such committee  or officers. S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 8

    	 

    	 

    

ARTICLE 5. STOCK  SUBJECT  TO THE PLAN 1. Number  of Shares. (a) Subject  to adjustment  under  ARTICLE 7,  Awards may be made  under   the  Plan for up  to  6,800,000  Shares, of which  all  shares can  be  issued  as   Incentive  Stock Options. (b) If any Award  expires or is  terminated,  surrendered or canceled without   having  been  fully exercised, is forfeited in whole or in  part,  or results in   any  Shares not  being  issued,  the  unused Shares covered  by  such Award   shall  again be available  for  the grant  of  Awards  under  the  Plan.   However, Shares  tendered to the Company by  a Participant  to  exercise   an Award  or Shares withheld from  an  exercised  Award  for  the payment   of  taxes  shall not  thereafter be available  for  the grant  of  Awards  under   the  Plan. Shares issued under  the  Plan  may  consist in whole or in  part   of  authorized but  unissued shares or  treasury shares. 2. Substitute Awards. (a) In connection with  a  merger  or  consolidation  of an entity  with the   Company  or  the acquisition by the  Company  of  property  or  stock  of an   entity, the Administrator may grant  Awards  in  substitution  for any   options  or other  stock  or  stock - based  awards  granted  by  such entity  or   an  affiliate thereof. Substitute Awards may  be  granted  on  such terms   as  the Administrator deems appropriate  in  the circumstances. (b) Substitute Awards shall  not  count against the overall  share  limit  set   forth  in  Section  5.1 , except  as  may  be  required  by reason of  section  422   and  related provisions  of  the Code. S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 9

    	 

    	 

    

ARTICLE 6. TYPES  OF AWARDS 1. Stock Options. (a) In General.  The  Administrator may grant options to purchase  Shares   to  any  Participant and may determine the  number of  Shares to be   covered  by each  option,  the  exercise price  of  each option  and  the   conditions  and  limitations applicable to the exercise  of each  option,   including conditions relating to applicable federal  or  state securities   laws, as it  considers necessary  or  advisable.  A  Stock Option that  is not   intended to  be an  Incentive Stock Option shall  be  designated  as  a   “Nonqualified Stock Option.” (b) Incentive Stock Options. (1) A  Stock Option that the Administrator intends to  be an   Incentive Stock Option shall only  be  granted to employees  of  the   Company  or any of  the  Company’s present  or  future parent  or   subsidiary corporations  as  defined  in  sections  424(e) or  (f)  of  the   Code,  and any other entities  the employees  of which  are eligible   to receive Incentive Stock Options under  the  Code,  and shall be   subject  to and  construed consistently with the requirements  of   section  422 of  the  Code. (2) A  Stock Option that  is  intended to  be an  Incentive Stock Option   shall  be  treated  as a Nonqualified  Stock Option to the extent   that,  in  the calendar  year in  which the Award  is  first   exercisable,  the  aggregate Fair Market Value  of  the Shares   subject  to  the Award  (when  added to  other  awards granted to   the same individual that  are  intended to  be Incentive  Stock   Options  under the  Plan or any other  plan maintained  by  the   Company  and  certain related corporations) exceeds $100,000  or   such  other  limitation  as  might apply under section  422 of  the   Code. (3) The  Company shall have  no  liability to  a  Participant,  or any   other  party,  if a  Stock Option  (or any  part thereof) that  is   intended to  be an  Incentive Stock Option  is not an  Incentive   Stock Option,  or for any  action taken  by  the Administrator,   including the conversion  of an  Incentive Stock Option to  a   Nonqualified Stock Option. (c) Nonqualified Stock Options. (1) Any Stock Option that  is not an  Incentive Stock Option shall  be   a  Nonqualified Stock Option. S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 10

    	 

    	 

    

(2) The  Administrator may grant Nonqualified Stock Options to  any   Participant. (d) Exercise Price. (1) The Administrator shall establish the exercise price of each Stock Option and specify the exercise price in the applicable Award Certificate . (2) The  exercise price  of any  Stock Option shall  not be less  than   100% of  the Fair Market Value  of  the underlying Shares  on  the   date  the  Stock Option  is  granted, except that,  if any  Incentive   Stock Option  is  granted to  a Ten  Percent Stockholder, the   exercise price shall not  be less  than 110%  of  the Fair Market   Value  of  the underlying Shares  on  the date such Incentive Stock   Option is  granted. The  100% and 110%  limitation  in  this   Section  6.1(d)(2)  shall automatically adjust  to  the extent   required  by  section 422  of  the Code. (3) Once established, the exercise price  of a  Stock Option shall  not   be  re - priced without shareholder approval.  Option  re - pricing   shall include  (i) any  amendment to  the  terms  of an outstanding   option  (or SAR)  to reduce the exercise price  of  such  outstanding   options  (or SARs) and (ii)  the cancellation  of  outstanding options   (or SARs) in  exchange  for  options  (or SARs) with an  exercise   price that  is less  than the exercise price  of  the original  options   (or SARs). (e) Term  of  Stock Options. (1) Each Stock Option shall  be  exercisable  at  such  times  and subject   to such terms  and  conditions  as  the Administrator may specify   in  the applicable  Award  Certificate; except  that no  Stock Option   shall  be  granted  for a  term  of  more than  10  years. Incentive   Stock Options issued to  a Ten  Percent Stockholder shall  not   have a  term  of  more than  5 years. (2) No  Stock Option shall permit  the  Participant to defer receipt  of   compensation  on  the Stock Option  beyond  the date  of  exercise,   unless  the Administrator expressly determines that such Stock   Option  shall  be  subject  to  section 409A  of  the Code. (f) Exercise  of  Stock Option. Stock Options may  be  exercised  by  delivery to  the  Company  of a   written  notice of  exercise  in  the form attached  to, or  the manner S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 11

    	 

    	 

    

described  in,  the Award Certificate  or by  any  other  form  of notice   (including electronic  notice) or  such  other  manner approved  by  the   Administrator, together with payment  in full for  the  number of  shares   for  which the Stock Option  is  exercised. Shares subject  to  the Stock   Option  will  be  delivered  by  the Company  as soon as  practicable   following exercise. (g) Payment Upon Exercise. Shares purchased  upon  the exercise  of a  Stock Option granted under   the  Plan  shall  be  paid  for as follows: (1) in  cash  or by  check, payable to the order  of  the Company; (2) if  provided  in  the applicable Award Certificate, by  (1)  delivery  of   an  irrevocable  and  unconditional undertaking  by a  creditworthy   broker to deliver promptly to the  Company  sufficient funds to   pay the exercise price  and any  required tax withholding  or  (2)   delivery by the Participant to the Company  of a  copy  of   irrevocable  and  unconditional instructions to  a  creditworthy   broker to deliver promptly to the  Company  cash or a  check   sufficient  to  pay the exercise price  and any  required  tax   withholding; (3) to  the extent provided  for in  the applicable Award Certificate  or   approved  by  the Administrator,  by  delivery  (either by  actual   delivery  or  attestation)  of  Shares  owned by the  Participant   valued at  their Fair Market  Value,  provided  (1)  such method  of   payment  is  then permitted under applicable law,  (2)  such   Shares,  if  acquired directly from  the  Company,  were owned  by   the  Participant  for  such minimum period  of  time,  if  any,  as  may   be  established  by  the Administrator,  and  (3) such Shares are  not   subject  to any  repurchase, forfeiture, unfulfilled vesting  or other   similar requirements; (4) to  the  extent permitted  by  applicable  law  and provided  for in  the   applicable Award Certificate,  by  (1) delivery  of a  promissory   note of  the Participant  to  the Company  on  terms determined  by   the Administrator,  or (2)  payment  of  such  other lawful   consideration  as  the Administrator may determine; or (5) by any  combination  of  the  above  permitted forms  of payment. (h) No  Reload Grants. S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 12

    	 

    	 

    

Stock  Options shall  not  be  granted under the  Plan in  consideration  for   and shall not be  conditioned upon the delivery  of  Shares to  the   Company  in  payment  of  the exercise price and/or tax withholding   obligation under  any other  Stock Option. 2. Stock  Appreciation Rights. (a) In General.  A  Stock Appreciation Right  is an  Award  in  the form  of a   right to receive  cash  or  a  Share, upon surrender  of  the Stock   Appreciation Right, in  an amount  equal to the appreciation  in  the   value of  the Share over  a base  price established  in  the Award. The   Committee may grant Stock Appreciation Rights either independently   of  Stock Options,  or in  tandem  with  Stock Options such that  the   exercise  of  the Stock Option  or  Stock Appreciation Right cancels the   tandem Stock Appreciation Right  or  Stock Option. (b) Base Price.  The  minimum  base  price  of a  Stock Appreciation Right   granted under the Plan shall  be  the price  set  forth  in  the applicable   Award Certificate, or,  in  the case  of a  Stock Appreciation Right related   to  a  Stock Option (whether already outstanding  or  concurrently   granted), the exercise price  of  the related Stock Option.  The  minimum   base  price  of a  Stock Appreciate  Right  shall  not be less  than 100%  of   the  Fair  Market Value  on  the date the Stock Appreciation Right  is   granted. Once established, the minimum base price  of a  Stock   Appreciation Right  shall not be  re - priced without shareholder   approval. (c) Term, Exercise, and Payment.  The  provisions  of  Sections 6.1(e) ,  (f) ,  (g) ,   and (h)  shall generally apply to Stock Appreciation Rights,  as   applicable. 3. Restricted Stock. (a) In General.  The  Administrator may grant Awards  of  Restricted Stock.   The  Administrator shall determine the terms  and  conditions  of a   Restricted Stock Award, including the conditions  for vesting and   repurchase (or forfeiture), the issue price (if  any) and whether the   Shares shall  be  entitled to exercise voting  or  other  rights associated   with  ownership  of a Share. (b) Dividends.  The  Administrator  may, at the  time  of  grant  of  Restricted   Stock, provide that any dividends declared  with  respect  to  such  Shares   be (1)  paid  to  Participants,  (2)  accumulated  for  the benefit  of the   Participant  and  paid to  a  Participant only  at the  time  of  vesting, or (3)  not  paid  or  accumulated, provided however, that dividend   equivalents  or other  distributions  in  Shares underlying performance - S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 13

    	 

    	 

    

based  awards  as  set forth  in  Section 6.8 will  be  determined with  and   paid  contingent  upon the  achievement of  the  applicable performance   criteria.  If any  dividends  or  distributions  are  paid  in  shares,  or  consist   of a  dividend  or  distribution to holders  of Shares other  than  an   ordinary  cash  dividend, the  shares or other  property will  be  subject  to   the same restrictions  on  transferability  and  forfeitability  as  the   Restricted Stock  with  respect  to  which they  were  paid. Each dividend   payment will  be  made  no later  than the  end of  the calendar  year in   which  the Restricted Stock  on which  such dividends are paid vests  or,   if  later, the  15th  day  of  the third month  following  the date  on  which   the Restricted Stock  on which  such dividends are paid vests. (c) Stock Certificates.  The  Company may require that  any  stock   certificates issued  for  shares  of  Restricted Stock  be  deposited  in  escrow   by  the Participant, together with  a  stock power endorsed  in  blank, with   the Company  (or its  designee). At the expiration  of  the applicable   restriction periods,  the  Company  (or  such  designee) shall  deliver the   certificates  no longer  subject  to  such restrictions to the Participant.  If   the Participant has died before the certificates are delivered, the   certificates shall  be  delivered  to  the beneficiary designated  by  the   Participant under the  Plan and on file  with the Company  (or  its   designee) before the Participant’s death.  If  there  is no  such  valid   beneficiary designation, the Participant’s estate shall  be  the   beneficiary. 4. Restricted Stock Units. The  Administrator may grant Restricted Stock Units to  any  participant  subject to   the same conditions and restrictions  as  the Administrator  would have  imposed  in   connection with  any  Award  of  Restricted Stock. Each Restricted Stock  Unit  shall   have a  value equal to the  Fair  Market Value  of one  Share. Restricted Stock Units   may  be  paid  at  such time  as  the Administrator may determine and payments may   be  made  in a lump sum or in  installments,  in  cash, Shares,  or  any combination   thereof,  as  determined  by  the Administrator. 5. Performance Shares. The  Administrator may grant Performance Shares to  any  participant  subject to  the   same  conditions  and  restrictions  as  the Administrator  would  have imposed  in   connection with  any  Award  of  Restricted Stock  or  Restricted Stock Units. Each   Performance Share  shall have a  value equal to the Fair Market Value  of one  Share.   Performance Shares may  be  paid  at  such time  as  the Administrator may determine   and  payments may  be  made  in a lump sum or in  installments,  in  cash,  Shares, or   any  combination thereof,  as  determined  by  the Administrator. S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 14

    	 

    	 

    

6. Other Stock - Based Awards. Other  Awards that  are valued in whole or  in part  by  reference to,  or  are  otherwise   based on,  Shares  or other  property, may  be  granted under the Plan to Participants.   To  the extent permitted  by law, such  other Share Awards shall also  be  available  as   a  form  of  payment  in  the  settlement of  other Awards granted  under  the  Plan or as   payment  in lieu of  compensation to  which a  Participant  is  otherwise entitled. Other   Share Awards may  be  paid  in  Shares  or cash, as  the Administrator shall determine.   Subject  to  the provisions  of  the  Plan,  the Administrator shall determine the terms   and  conditions  of  each other Share Award. 7. Cash  Awards. Cash Awards are Awards that provide participants  with  the opportunity to earn  a   cash payment  based  upon  the  achievement of one or  more performance  goals  for  a   performance period  determined by  the Administrator.  For  each performance period,   the Administrator shall determine the relevant performance criteria, the   performance  goal for  each performance criterion,  the  level  or  levels  of achievement   necessary  for  Awards to  be  paid, the weighting  of  the performance  goals if  more   than  one  performance  goal is  applicable, and the  size of  the Awards. 8. Performance - Based  Awards. (a) In General.  The  performance  goals  must  be  established  by  the   Compensation Committee  and may be for  the Company,  or a  Company   subsidiary, affiliate  or other  Company  operating  unit  or  department,  or   a  combination  of  such units  or  departments.  The  performance  goal   shall  be  based  on one or  more performance criteria selected  by  the   Compensation Committee and, absent extraordinary circumstances   (such  as  awards granted during the first Plan year),  shall be  based  on   performance periods  of  at least one year. (b) Performance Criteria.  In the  case of  Awards intended to qualify  as   performance - based  Awards,  the performance criteria  shall be  selected   only  from among the following: (1) earnings  or  earnings per  share   (whether on a  pre - tax, after - tax, operational  or  other  basis); (2)  return   measures (including,  but not  limited to, return  on  assets,  capital,   equity,  investments  or  sales, and cash  flow return  on  assets, capital,   equity,  or  sales);  (3)  improvements  in  capital structure; (4) revenues; (5) expenses (expense management, expense  ratio,  expense efficiency   ratios  or other  expense measures); (6) one  or  more operating ratios; (7) stock price  or  performance;  (8)  stockholder return;  (9)  market share; (10) cash (cash  flow, cash  generation  or  other  cash measures); (11) capital expenditures;  (12) net  borrowing, debt leverage levels,   credit quality  or  debt ratings;  (13)  the accomplishment  of mergers, S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 15

    	 

    	 

    

acquisitions, dispositions, public offerings  or  similar  extraordinary   business transactions;  (14) net  asset value per  share;  (15) economic   value  added; (16) sales; (17) profits (net profit, gross profit, operating   profit, economic profit, profit margins  or  other corporate profit   measures); (18)  net  income (before  or after taxes,  operating income or other  income measures); (19) internal  rate  of return  or  increase  in net   present  value;  (20) productivity measures; (21) cost reduction measures;  (22)  strategic plan development  and implementation; (23) customer measures (including changes  in number of  customers  or   households); (24) growth measures (deposit  growth,  loan growth,   revenue growth,  or  asset  growth); (25) net  charge - offs;  or (26) any   combination  of any of  the foregoing business criteria. Any  of the performance criteria  may be used  to measure the performance  of  the   Company,  a  subsidiary, and/or affiliate  as a whole or any  business unit   of  the Company,  a  subsidiary, and/or affiliate  or any  combination   thereof,  as  the Compensation Committee may deem appropriate,  or   any of  the above performance criteria  as  compared to the  performance   of a  group  of  comparator companies,  or  published  or  special index that   the Compensation Committee deems appropriate.  The  Compensation   Committee also  has  the authority to provide  for  accelerated  vesting of   any  Award  based on  the achievement  of  the performance criteria   specified  in  this Secti on 6.8 . (c) Committee Certification and Payment  of Awards.  Before  any   performance - based  Award (other than  Stock Options  and  Stock   Appreciation Rights) is paid, the Compensation Committee must   certify  in  writing  (by  resolution  or otherwise)  that  the  applicable   performance goal(s) and  any other  material terms  of  the Award  have   been  satisfied. Unless otherwise provided  by  the Compensation   Committee, performance - based Awards  shall be  paid  as  soon  as   practicable  after  the Compensation Committee  has  certified that the   applicable goals  and  terms  of  such awards  have been  satisfied, but  in   no event  later than  the  fifteenth  (15 th )  day of the third month following   the  end of  the performance period to  which  the  award  relates (absent  a   timely  election  to defer such Award  under a  deferred  compensation   plan,  if any,  maintained  by  the Company). Notwithstanding the   foregoing, to the extent  an  amount was intended to  be  paid  so as  to   qualify  as a  short - term deferral under  section  409A  of  the Code  and  the   applicable regulations, then such payment may  be  delayed  if  the   requirements  of  Treas. Reg. 1.409A - 1(b)(4)(ii) are met. (d) Terms and Conditions  of  Awards; Committee Discretion to  Revise   Performance Awards.  The  Compensation Committee shall have   discretion to determine the conditions, restrictions  or other  limitations,   in  accordance with, and  subject to,  the terms  of  the  Plan, on the S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 16

    	 

    	 

    

payment  of  individual Awards under this  Secti on  6.8 .  To  the extent   set  forth  in an  Award Certificate, the Compensation Committee may   reserve the right to adjust  the  amount payable  in  accordance with  any   standards  or on any other basis  (including the Compensation   Committee’s discretion),  as  the Compensation Committee may   determine. S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 17

    	 

    	 

    

ARTICLE 7. ADJUSTMENTS 1. Changes in Capitalization. In the  event of  any stock split, reverse stock split, stock dividend, recapitalization,   combination  of  shares, reclassification  of  shares,  spin - off or other  similar change  in   capitalization  or  event,  or any  dividend  or  distribution to holders  of  Shares  other   than  an  ordinary  cash  dividend,  (1)  the number  and class of  securities available   under this  Plan, (2)  the  number and class of  securities  and  exercise price per  Share   of  each  outstanding  Stock  Option, (3) the  number of Shares  subject  to  each   outstanding Restricted Stock Award,  and (4)  the terms  of  each  other  outstanding   Award  shall be  equitably adjusted  by  the Company  (or  substituted Awards may  be   made,  if  applicable) in the manner determined  by  the Administrator. Without   limiting the generality  of  the foregoing,  if  the Company effects  a  split  of the  Shares   by  means  of a  stock dividend  and  the  exercise  price  of and  the  number of Shares   subject  to an  outstanding Stock Option are adjusted  as of  the  date  of  the   distribution  of  the dividend (rather than  as of  the record date  for  such dividend),   then  an optionee who  exercises  a  Stock Option  between  the record date  and  the   distribution date  for  such stock dividend  shall be  entitled to receive,  on  the   distribution date, the stock dividend with respect  to  the Shares acquired upon such   Stock Option exercise, notwithstanding the fact  that  such  Shares  were  not   outstanding  as of  the close  of  business  on  the record  date for such  stock dividend. 2. Change  in Control. (a) Consequences  of  a  Change in Control  on  Awards Other than Restricted   Stock Awards.  In connection with  a  Change  in  Control, the   Administrator shall take  any one or  more  of  the following actions  as  to   all or any (or any  portion  of)  outstanding Awards  other  than Restricted   Stock Awards  on  such terms  as  the Administrator determines: (1) provide that Awards shall  be  assumed,  or  substantially equivalent   Awards shall  be  substituted,  by  the acquiring  or  succeeding entity  (or   an  affiliate thereof),  (2)  upon written  notice  to  a  Participant, provide   that  the  Participant’s unexercised Awards will terminate immediately   prior to the consummation  of  the Change  in  Control  unless  exercised   by  the Participant within  a specified,  reasonable period following the   date  of  such  notice, (3)  provide that outstanding Awards shall become   exercisable, realizable,  or  deliverable,  or  restrictions applicable to  an   Award  shall  lapse,  in whole or in  part before  or  upon the Change  in   Control,  (4) if  holders  of  Shares  will  receive upon consummation  of  the   Change  in  Control  a cash  payment  for each Share  surrendered  in  the   Change  in  Control, make  or  provide  for a cash  payment to  a   Participant equal to the excess,  if any, of  (A)  the consideration received   by  stockholders generally with respect  to  the Change  in  Control  (the   “Change  in  Control Price”) times the number  of  Shares subject  to the S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 18

    	 

    	 

    

Participant’s Awards (to  the  extent the exercise price does  not  exceed   the Change  in  Control  Price)  over  (B) the aggregate exercise price  of  all   such  outstanding  Awards  and any  applicable  tax  withholdings, in   exchange  for  the termination  of  such Awards,  (5)  provide that,  in   connection with  a  liquidation  or  dissolution  of  the Company, Awards   shall convert  into  the  right  to receive liquidation proceeds (if   applicable,  net of  the exercise price thereof  and any  applicable tax   withholdings)  and (6) any  combination  of  the  foregoing. In  taking any   of  the actions permitted under this Section  7.2(a) ,  the Administrator   shall  not be  obligated  by  the Plan to treat all Awards, all Awards  held   by a  Participant,  or  all Awards  of  the  same  type, identically. For  purposes  of clause (1) above, a  Stock Option shall  be  considered   assumed  if,  following consummation  of  the Change  in  Control,  the   Stock Option confers  the  right to purchase,  for each Share subject to   the Stock Option immediately prior to the consummation  of  the   Change  in  Control,  the  consideration  (whether cash,  securities  or other   property) received  as a  result  of the  Change  in  Control by holders  of   Shares for  each  Share  held  immediately prior to the consummation  of   the Change  in  Control  (and if  holders were offered  a  choice  of   consideration,  the  type  of  consideration chosen  by  the holders  of a   majority  of  the outstanding Shares); provided, however, that  if  the   consideration received  as a  result  of the  Change  in  Control  is not solely   common stock  of  the acquiring  or  succeeding  entity(or an  affiliate   thereof), the Company  may,  with  the  consent  of the  acquiring  or   succeeding  entity,  provide  for  the consideration to  be  received upon the   exercise  of  Stock Options to consist  solely of common  stock  of  the   acquiring  or  succeeding corporation  (or an  affiliate thereof) equivalent   in  value  (as  determined  by  the Administrator) to  the  per  share   consideration received  by  holders  of  outstanding Shares  as a  result  of   the Change  in Control. (b) Consequences  of  a  Change in Control  on  Restricted Stock  Awards .   Upon the occurrence  of a  Change  in  Control, except  to  the extent   specifically provided to the contrary  in  the applicable Award   Certificate  or any  other  agreement  between  a  Participant  and  the   Company, all restrictions  and  conditions  on  all Restricted Stock   Awards then outstanding shall automatically lapse  and be  deemed   terminated  or  satisfied,  as  applicable. S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 19

    	 

    	 

    

ARTICLE 8. GENERAL PROVISIONS APPLICABLE TO ALL AWARDS. 1. Transferability  of Awards. Except  as  the Administrator may  otherwise  determine  or  provide  in an  Award   Certificate, Awards shall  not be  sold, assigned, transferred, pledged  or otherwise   encumbered  by  the person to  whom  they are granted, either voluntarily  or by   operation  of law,  except  by  will  or  the laws  of  descent  and distribution  or,  other   than  in  the case  of an  Incentive Stock Option, pursuant to  a  qualified domestic   relations order, and, during the  life of  the Participant, shall  be  exercisable only by   the Participant. References to  a  Participant, to  the  extent relevant  in  the context,   shall include references to authorized transferees. 2. Termination  of  Status. Except  to  the extent provided  in an  Award Certificate,  the  Administrator shall   determine the effect  on  an  Award  of  the disability, death, termination  or other   cessation  of  employment, authorized leave  of  absence  or other change in  the   employment  or other  status  of a  Participant  and  the extent to which,  and  the period   during  which, the  Participant,  or  the Participant’s legal representative, conservator,   guardian  or  Beneficiary, may exercise rights under the Award. 3. Withholding. The  Participant must satisfy all applicable federal,  state, and  local  or other  income   and  employment tax withholding obligations before the Company will deliver stock   certificates  or otherwise  recognize ownership  of  Shares under  an  Award.  The   Company may decide to  satisfy  the withholding obligations through additional   withholding  on  salary  or wages.  If the Company elects  not to or  cannot withhold   from other  compensation, the  Participant must pay the Company the  full  amount,  if   any, required for  withholding. Payment  of  withholding obligations  is  due  before  the   Company will issue any  Shares on  exercise  or release  from forfeiture  of an  Award   or,  if  the Company  so  requires,  at the same  time  as is  payment  of  the exercise price   unless  the Company determines  otherwise. To  the extent  not  otherwise provided   for in an  Award Certificate  or  approved  by  the Administrator,  a  Participant shall   satisfy such  tax  obligations  in whole or in  part  by  delivery  of a  portion  of  the Award   creating the tax obligation,  valued at  Fair Market  Value;  provided, however, except   as  otherwise provided  by  the Administrator, that  the  total  tax  withholding where stock  is being  used to satisfy such  tax  obligations  cannot  exceed the Company’s   minimum statutory withholding obligations  (based on  minimum  statutory   withholding  rates  for federal  and  state  tax  purposes, including payroll taxes, that are applicable to such supplemental taxable income). Shares surrendered to satisfy   tax withholding requirements cannot  be subject to  any repurchase, forfeiture,   unfulfilled vesting  or other similar requirements. S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 20

    	 

    	 

    

4. Conditions  on  Delivery  of Stock. The  Company will  not be  obligated to deliver  any  Shares pursuant  to  the Plan  or  to   remove restrictions  from Shares  previously delivered under the  Plan  until  (a)  all   conditions  of  the Award  have been  met  or  removed to the satisfaction  of  the   Company,  (b) in  the opinion  of  the Company’s counsel,  all  other  legal  matters  in   connection with the issuance  and  delivery of such  Shares have been  satisfied,   including any applicable securities laws and  any  applicable stock exchange  or  stock   market rules  and regulations, and  (c) the Participant  has  executed  and  delivered to   the Company such representations  or  agreements  as  the Company may consider   appropriate  to  satisfy the  requirements of any  applicable  laws,  rules  or regulations. 5. Acceleration. The  Administrator  or its  delegee may  at  any time provide that any Award  shall   become immediately exercisable  in full or in  part, free  of some or all  restrictions  or   conditions,  or otherwise  realizable  in  full  or in  part,  as  the case may be. S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 21

    	 

    	 

    

ARTICLE 9. MISCELLANEOUS 1. No Right  to  Employment  or  Other Status. No  person  shall  have  any  claim  or  right to  be  granted  an  Award,  and  the grant  of an   Award  shall not be  construed  as giving a  Participant the right to  continued   employment  or any  other relationship with the Company.  The  Company expressly   reserves the right  at any  time to dismiss  or otherwise  terminate its relationship   with a  Participant free from  any  liability  or claim  under the Plan, except  as   expressly provided  in  the applicable Award Certificate. 2. No Rights  as Stockholder. Subject  to  the provisions  of  the applicable Award Certificate and except  as  provided   in  Secti on 6.3 ,  no  Participant  or  beneficiary  shall  have  any  rights  as a  stockholder   with  respect  to any  Shares to  be  distributed with respect  to an  Award  until   becoming  the record holder  of  such  shares. 3. Amendment. (a) Amendment  of  the  Plan.  The  Administrator may amend, suspend  or   terminate  the  Plan  or any  portion  of  the Plan  at any  time; provided   that  if  at  any  time the approval  of  the Company’s stockholders  is   required  as  to  any  modification  or  amendment under section  422 of  the   Code  or any  successor provision  with  respect  to  Incentive Stock   Options, the Administrator  may not  effect such modification  or   amendment without  such  approval. Unless  otherwise  specified  in  the   amendment,  any  amendment to  the Plan  adopted  in  accordance with   this Section  9.3  shall apply to,  and be  binding  on  the holders of, all   Awards outstanding under the  Plan at the  time  the  amendment  is   adopted, provided the Administrator determines that such   amendment, taking into account  any  related  action,  does  not   materially  and  adversely affect  the  rights  of Participants  under the   Plan. (b) Amendment  of  Award.  The  Administrator may amend, modify or   terminate  any  outstanding Award, including  but not  limited to,   substituting  another  Award  of  the same  or a  different type,  changing   the date  of  exercise  or  realization,  and  converting  an  Incentive Stock   Option  to  a  Nonqualified Stock Option. The Participant’s consent  to   such action shall  be required unless  the Administrator determines that   the  action,  taking into account  any  related action, would  not  materially   and  adversely affect  the  Participant’s rights under the Plan. S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 22

    	 

    	 

    

9.4. Compliance  with Code Section 409A. No  Award  shall  provide  for a  deferral  of  compensation within  the  meaning  of  section   409A of  the Code, unless the Administrator,  at the  time  of  grant, specifically   provides that  the  Award  is  intended to  be  subject  to  section 409A  of  the Code. If  an   Award  is  intended to  be subject to  section 409A, the following provisions shall apply   except  to  the extent that  a  contrary provision  is  included  in  the Award Certificate: (a) such Award  shall be  payable  on  the earlier  of a  “change  in  control”  or the Participant’s “separation from service”  with  the Company  and (2) any  payment   made to  a  Participant  who is a  “specified employee”  of  the Company shall  not be   made before such date  as is  six months after the Participant’s “separation from service”  to  the extent required to  avoid  the adverse consequences  of  Section 409A  of   the Code.  For  purposes  of  this Secti on 9.4 , the terms “change  in control,” “separation from service”  and  “specified employee” shall  have  the meanings  set   forth  in  section  409A and  the applicable Treasury  regulations.  The Company shall   have no  liability to  a  Participant,  or any  other party,  if an  Award  that  is  intended to   be  exempt from,  or  compliant with, section  409A is not so  exempt  or  compliant  or  for   any  action taken  by  the Administrator.  No  amendment  of  the Plan  or of an  Award   is  effective  if  it  would  result  in  deferred  recognition of  income  or  additional  tax   under  section  409A or cause  awards  not  subject  to  section 409A to  become  subject  to   section 409A, unless the Administrator,  at  the time  of  grant, specifically provides   that  the  Award  is  intended to  be subject to  section 409A. 5. Governing Law. The  provisions  of the Plan and  all Awards made hereunder  shall be  governed  by   and  interpreted  in  accordance with the laws  of  the State  of  [Arkansas], excluding   choice - of - law principles  of  the  law of  such state  that would  require the application  of   the  laws of a  jurisdiction  other  than such state. 6. Clawback Rights. All Awards under the  Plan  will  be subject  to  any  compensation, clawback  and   recoupment policies that  may be  applicable to the employees  of  the Company,  as in   effect from time  to  time  and as  approved  by  the Board  or  the Administrator,   whether or not  approved before  or after  the effective date  of  the Plan. S econd  Amended and Restated  SFNC  2015 Incentive Plan Page 23

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