Document:

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Agreement”)
is made effective as of April 24, 2015 (the “Effective Date”) between John Ryan (“Employee”) and Standard
Metals Processing, Inc., hereinafter referred to as (“SMPR” or the “Company”), who are hereinafter sometimes
collectively referred to as “the parties” or singularly as a “party.”

 

WITNESSETH

 

WHEREAS, SMPR wishes to appoint
Employee as the Company’s President and desires to memorialize his employment in this Agreement upon the terms and conditions
set forth herein.

 

NOW, THEREFORE, in consideration
of the mutual covenants contained herein, the parties hereto agree as follows:

 

1. Employment Services. SMPR
hereby agrees to employ Employee as President and Employee hereby accepts such position under the terms and conditions set
forth herein. Employee shall be subject to all the usual and customary office policies and procedures of the Company as may from
time to time be established for Employees of similar grade and position.

 

2. Duties. 

 

		(a)	Employee shall serve as the President of the Company during the Term (as defined below) of this
Agreement. Employee shall carry out all assignments as set forth on Exhibit A attached hereto.

 

		(b)	Employee shall, if so requested by the Company, also serve with or without additional compensation,
as an officer, director or manager of entities from time to time directly or indirectly owned or controlled by the Company (each
an “Affiliate,” or collectively, the “Affiliates”).

 

3. Term. The term of the employment
shall be for One (1) year, commencing on the Effective Date (the “Term”), unless sooner terminated by the Company or
Employee in accordance with the terms of this Agreement or pursuant to Section 6 below.

 

4. Extent of Services. Employee
shall devote substantial time, attention and energy to his duties hereunder and shall use his best efforts to promote the business
of SMPR and/or its subsidiaries during the Term of this Agreement. Employee may engage in other activities, including serving on
the Board of Directors of other corporations/organizations, and/or advising other corporations/organizations in each case to the
extent that such activities do not materially detract from or limit the performance of Employee’s duties under this Agreement,
or inhibit in any material way the business of SMPR and/or its subsidiaries. Employee will not engage in any activity, paid or
otherwise, for a competitor of SMPR so long as this Agreement is in effect. Employee may invest his assets in such manner as will
not require any services to be performed on his part in the operation or affairs of the companies in which such investments are
made, but only if such investments are consistent with this Agreement. Employee shall perform all duties in a professional, ethical
and businesslike manner.

 

5. Compensation and Benefits. As
compensation for his services hereunder, during the Term of the Agreement, SMPR agrees:

 

		(a)	To grant Employee options to purchase common stock pursuant to the 2014 Option Plan as set forth
on Exhibit B attached hereto;

 

		(b)	To pay Employee salary as follows:

 

		i.	One Dollar ($1.00) for the first year;

 

		ii.	In the event the Company obtains capital sufficient to
complete the build out of the permitted custom processing toll milling facility located in Tonopah, Nevada and to meet its associated
operating costs, including administrative and general business expenses, Employee will thereafter receive a yearly salary of One
Hundred Fifty Thousand Dollars ($150,000.00).

 

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		iii.	Employee’s performance and salary will be reviewed
annually with any changes to this Agreement represented by an addendum hereto executed by both parties.

 

		(c)	To pay annual bonuses, if any bonuses are payable during the Term, which shall be determined by
the Board of Directors, in its sole discretion, in an amount and upon such other performance criteria as shall be fixed by the
Board of Directors based upon the performance of Employee and the Company during the same period.

 

		(d)	Employee shall be included in any pension plan in effect as of the date of this Agreement or affected
thereafter. Employee’s participation as described in the sentence immediately preceding shall be in relation to Employee’s
annual compensation as compared to any other individual’s participation based upon his annual compensation at the time of
this Agreement.

 

		(e)	SMPR will reimburse Employee for his direct expenses in connection with his duties hereunder including,
but not limited to, reasonable travel, entertainment and hotel expenses. Employee shall timely provide such receipts and other
documentation of his expenses before any reimbursements will be paid.

 

		(f)	Employee will be included in any health insurance or other benefit plan provided for senior management
and executives.

 

6. Termination. 

 

(a) This Agreement
shall be terminated upon the happening of any of the following:

 

		(i)	at the cessation of SMPR’s business activities
except as a result of a sale or merger;

 

		(ii)	upon the mutual consent of the parties hereto;

 

		(iii)	upon the death or disability of Employee, disability
shall be defined as an inability to perform duties and responsibilities for One Hundred Twenty (120) consecutive days as a result
of physical or mental illness or condition or loss of legal capacity;

 

		(iv)	the termination for any reason or no reason by Employee
upon Thirty (30) days written notice to the Company. However, Employee cannot terminate this Agreement during a Restricted Period.
“Restricted Period” shall mean the Thirty (30) day period immediately preceding the due date of a quarterly regulatory
filing and the Sixty (60) day period immediately preceding the due date of an annual regulatory filing. The due date of the regulatory
filing shall include any applicable extensions and extend until such quarterly or annual statement is filed.

 

		(b)	Termination by Company for Cause.“Cause”
for the purpose of this Agreement is defined as: (i) an intentional act of fraud, embezzlement, theft or any other material violation
of law committed by Employee; (ii) damage to Company’s assets; (iii) disclosure of Company’s confidential information;
(iv) breach of Employee’s obligations under this Agreement; (v) intentional engagement in any competitive activity which
would constitute a breach of Employee’s duty of loyalty or of Employee’s obligations under this Agreement; (vi) the
willful and continued failure to substantially perform Employee’s duties for Company (other than as a result of incapacity
due to physical or mental illness); (vii) willful conduct by Employee that is materially injurious to Company, monetarily or otherwise,
or (viii) failure to follow any reasonable written directives from the Board of Directors. Employee shall have Thirty (30) days
after receipt of written notice from the Company setting forth the actions or circumstances constituting “Cause” to
cure such actions or circumstances.

 

		(c)	If Employee is terminated under Section 6(a)(i)-(iii), Employee’s options shall vest, expire
and be exercisable pursuant to the Stock Option Grant. “Date of Termination” shall mean the final date of Employee’s
employment, not the date of notice of termination.

 

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7. Covenant not to Compete. Employee
hereby covenants and agrees that during the Term of this Agreement and for a period of One (1) year after termination of such Agreement
hereunder:

 

		(a)	Employee will not in any way, directly or indirectly, solicit, divert, take away or accept, the
business of any of the customers, suppliers or service providers of SMPR during the Term of this Agreement for the purpose of selling
to any such customer any product or service which was provided or offered by during the Term of this Agreement hereof.

 

		(b)	Employee will not directly or indirectly, attempt or seek to cause any of the foregoing customers,
suppliers or service providers of SMPR to refrain from maintaining or acquiring from or through SMPR any products or services,
or providing any products or services which were provided or offered by or to SMPR during the Term hereof, and will not assist
any other person or persons to do so. Employee agrees that telephonic or written communication by him to any of the Parties described
above shall constitute activity by Employee for the purposes of this Agreement.

 

		(c)	Employee will not enter into any contract with direct competitors of the Company or work for or
consult direct competitors of the Company on topics relating to the Company’s business. The Employee agrees that he will
not engage in, directly or indirectly, and in any capacity whatsoever, or have any financial interest in, any business operation
or in any party in competition with the Company.

 

		(d)	Attempt in any manner to persuade any investor or shareholder of the Company to cease investing
or reduce any investment in the Company.

 

		(e)	This Section 7 shall not apply if this Agreement is terminated under Section 6(a)(i).

 

8. Non – Disclosure.
Employee acknowledges that, in order for Employee to effectively perform his duties hereunder SMPR will disclose to Employee
certain valuable trade secrets and confidential business information that has been created, discovered or developed by, or that
otherwise has become known to SMPR as a result of substantial effort, expense and time incurred by SMPR or which has been assigned
or otherwise conveyed. In light of such acknowledgement, Employee hereby agrees as follows:

 

		(a)	Trade Secrets. Employee hereby acknowledges that certain processes, formulas and mechanisms
used by SMPR in its operation of its business, are not generally known to the public or to other persons engaged in businesses
similar to its business and, as such constitute its trade secrets. Employee hereby agrees never to directly or indirectly disclose
or use, or assist anyone else in disclosing or using such trade secrets to any person or entity other than as authorized in the
regular course of the performance of this Agreement.

 

		(b)	Confidential Information.

 

		(i)	Employee hereby agrees that during the Term of this Agreement and for a period of One (1) year
following termination of such employment, Employee will not divulge, disclose or make accessible to any person or entity the following
confidential business information (“Confidential Information”) of SMPR, including but not limited to: (1) e-mail addresses,
customer lists, the names of customer contacts, the names of investor contacts, investor lists, professional contacts, business
plans, technical data, product ideas, personnel, contracts and financial information; (2) patents, trade secrets, techniques, formulas,
formulations, components, ingredients, compounds, processes, business methodologies, schematics, employee suggestions, development
tools and processes, computer printouts, computer programs, design drawings and manuals, and improvements; (3) information about
costs, profits, markets and sales; (4) plans for future development and new product concepts; (5) data relating to studies, clinical
trials, results of any studies or trials, regulatory applications, research, development, procedures and treatment plans; (6) all
documents, books, papers, drawings, models, sketches, and other data of any kind and description, including electronic data recorded
or retrieved by any means, that have been or will be disclosed, as well as written or oral instructions or comments; (7) any and
all information provided to the Employee while on the Company’s Tonopah, Nevada property (the “Tonopah Property”);
(8) any land, machinery, individuals, production, operations, development, work, processes, or any other type of information the
Employee observes while at the Tonopah Property; and (9) any and all information provided to Employee regarding the Company or
conversations between the Employee and a representative of the Company.

 

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		(ii)	Employee recognizes and acknowledges that:

 

		(1)	the Confidential Information is a valuable, special and unique asset of the Company and that disclosure
of any Confidential Information would cause considerable harm to the Company’s operations and/or business reputation; and

 

		(2)	the disclosure of the Confidential Information to any other person or entity outside the Company
or use of the Confidential Information by or on behalf of any other person or entity could result in irreparable harm to the Company.

 

		(iii)	Employee shall not disclose, use or in any way implement
the Confidential Information to provide, enable or help others to provide services that are substantially similar to or competitive
with any of the Company’s projects, products or services without the written consent of the Company or as otherwise required
by law.

 

		(iv)	With respect to all Confidential Information, Employee
shall:

 

		(1)	protect and safeguard the Confidential Information against unauthorized use, publication, or disclosure
in any manner;

 

		(2)	not use any of Confidential Information except to perform the duties of President of the Company
as set out in this Agreement;

 

		(3)	not, directly or indirectly, in any way, reveal, reverse engineer, de-compile, disassemble, report,
publish, disclose, transfer or otherwise use any of the Confidential Information except as specifically authorized by the Company
in accordance with this Agreement; and

 

		(4)	not restrict access to the Confidential Information to the Company’s officers, directors,
or employees who need such access for a permitted use.

 

9. Property of SMPR.
Employee agrees that upon termination of this Agreement, he will promptly deliver to SMPR all written and other materials in
his possession or control which contain any of the trade secrets and confidential business information described in this Agreement
and all other property of SMPR in his possession or control at such time, which was obtained from SMPR or complied or produced
for SMPR during the Term of this Agreement, including, but not limited to: (a) records; data, plans, programs, invoices, flow charts,
record layouts, computer printouts, magnetic tapes, diskettes, disks, card decks; (b) log-in and password information for all electronic
formats including but not limited to: bank(s), QuickBooks, and payroll company; and (c) letters and customer lists.

 

10. Non-solicitation
of Employees. During the Term of this Agreement and for One (1) year thereafter, Employee shall not hire or solicit for employment
directly or through or on behalf of any party, any persons who are then employees of SMPR. This Section 10 shall not apply if the
Agreement is terminated pursuant to Section 6(a)(i).

 

11. Relations with
Third Parties and Representations of the Parties.

 

		(a)	Employee agrees that SMPR may make known to others, either during or subsequent to the Term of
this Agreement, the existence of this Agreement and the provisions of all or any part hereof.

 

		(b)	Employee represents and warrants that:

 

		(i)	He is not in violation of any term of any employment contract, patent or other proprietary information
disclosure agreement of any other contract, agreement or any judgment, decree or order of any court or administrative agency relating
to or affecting his right to be retained by SMPR because of the nature of this business conducted or proposed to be conducted by
SMPR or for any other reasons;

 

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		(ii)	No such term, judgment, decree or order conflicts with his obligation to use his best efforts to
promote the interests of SMPR nor does the execution and delivery of this Agreement, nor the carrying on of SMPR business conflict
with any such term, judgment, decrees or order; and

 

		(iii)	Neither Employee nor any of his affiliates (as that term is defined under the Securities Act of
1933) are a party to any transaction, agreement or understanding to which SMPR is also a party except this Agreement or any agreement
executed hereunder, nor does he or any of his affiliates have any interest in any person or entity with whom SMPR does or intends
to do business.

 

		(c)	SMPR hereby makes the following representations in connection with this Agreement:

 

		(i)	SMPR is a corporation duly organized and validly existing by virtue of the laws of the state of
its incorporation and is in good standing under the laws thereof.

 

		(ii)	The execution of this Agreement by SMPR and the performance by it of the covenants and undertakings
hereunder have been duly authorized by all requisite corporate action, and approved by the Board of Directors and SMPR has the
corporate power and authority to enter into this Agreement and perform the covenants and undertakings to be performed by it hereunder
and is under no other impediment which would adversely affect its ability to consummate or prohibit it from meeting its obligation
hereunder.

 

		(iii)	This Agreement has been duly authorized, executed and delivered by SMPR and constitutes a valid
and legally binding obligation of SMPR enforceable in accordance with its terms.

 

12. Remedies, Survival,
and Severability.

 

		(a)	SMPR and Employee agree that in the event of breach of any of the covenants, agreements or obligations
under Sections 4, 7, 8, 9, 10 and 11 thereof, remedies at law would be inadequate and either party may seek injunctive relief as
well as damages.

 

		(b)	The covenants, agreements, representations, warranties and obligations contained in Sections 4,
7, 8, 9, 10 and 11 hereof shall survive the termination of this Agreement for the periods herein set forth.

 

		(c)	Each of the covenants, agreements and obligations contained in Sections 4, 7, 8, 9, 10 and 11 hereof
shall be independent and severable from the others and should any be for any reason held illegal, invalid or unenforceable in whole
or in part, said illegality, invalidity or unenforceability shall not affect the other covenants, agreements and obligations in
said Sections.

 

		(d)	In the enforcement of their rights hereunder, SMPR and Employee shall return all of their rights
under law or in equity to enforce the obligations of the other party hereunder or otherwise, and to seek relief for the acts of
the other party subject to the terms of this Agreement.

 

13. Miscellaneous.

 

		(a)	This Agreement embodies the entire agreement of the parties hereto relating to the subject matter
hereof. No amendment, modification, waiver or attempted waiver of this Agreement or any part hereof shall be valid or binding unless
made in writing and signed by both parties.

 

		(b)	All questions concerning the construction, validity, and interpretation of this Agreement and the
performance of the obligations imposed hereunder shall be governed by the laws of the State of New York, without giving effect
to the conflict of law or choice of law provisions thereof. Any dispute, controversy or claim arising out of this Agreement shall
be resolved in accordance with the rules of the Arbitration Association of America (“AAA”) applying New York law. Each
Party hereby waives its right to seek any remedy or claim for relief in court, including such Party’s right to a jury trial.
Notwithstanding the foregoing, any actions commenced under this Agreement shall be venued in either the United States District
Court for the Southern District of New York, or in the Supreme Court of New York, New York County.

 

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		(c)	Any notice required or permitted to be given pursuant to this Agreement shall be sufficiently given
when delivered or if sent by Certified mail postage prepaid, return receipt requested, on the third day after such mailing, to
the following address:

 

 

If to Standard Metals Processing,
Inc.:

 

			611 Walnut Street

			Gadsden, Alabama 35901

 

With a copy (which shall not
constitute notice) to the Company’s counsel:

 

Brinen
& Associates, LLC

7 Dey Street, Suite 1503

New York, New York 10007

 

If to Employee:

 

At the address set forth on
the signature page.

 

or, as to each
party, at such other address as shall be designated by such party in a written notice to the other party pursuant to the terms
of this section.

 

		(d)	This Agreement may be executed in one or more counterparts, each of which shall be deemed to be
original, but all of which together shall constitute one and the same instrument.

 

		(e)	The headings of the sections and subsections hereof have been inserted as a matter of convenience
and shall not be used in the interpretation of any provisions of this Agreement.

 

		(f)	The failure of either party hereto in any one or more instances to insist upon the performance
of any of the terms or conditions of this Agreement, or to exercise any rights or privileges conferred in this Agreement or the
waiver by either party of any breach of any of the terms, covenants or conditions of this Agreement shall not be construed as thereafter
waiving any such terms, conditions, rights, privileges or covenants, and the same shall continue and remain in full force and effect
as if no such forbearance or waiver had occurred.

 

		(g)	Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable
the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions
of this Agreement in any other jurisdiction. Further, to the extent that any term or provision hereof is deemed invalid, void or
otherwise unenforceable, but may be made enforceable by amendment thereto, the parties agree that such amendment may be made so
that the same shall, nevertheless, be enforceable to the fullest extent permissible under the laws and public policies applied
in any such jurisdiction in which enforcement is sought.

 

14. Entire
Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings,
whether written or oral, relating to the subject matter of this Agreement.

 

 

[SIGNATURE PAGE TO FOLLOW]

 

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IN WITNESS WHEREOF,
the parties hereto have executed this Agreement under their seals as of the date and year first written above.

 

	The Company:	 	Employee:
	Standard Metals Processing, Inc.	 	John Ryan
	 	 	 	 	 
	 	 	 	 	 
	By:	/s/: Sharon Ullman 	 	By:	/s/: John Ryan
	Name: Sharon Ullman	 	 	 
	Title: Chief Executive Officer, President and Executive Chairwoman	 	Address:	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	 

 

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Exhibit A

Duties and Responsibilities

 

The duties and responsibilities set forth
below shall be incorporated by reference into the Employment Agreement (the “Agreement”) entered into by Standard Metals
Processing, Inc. (the “Company”) and John Ryan (“Employee”) on the Effective Date. All terms not defined
below shall have the same meaning as set forth in the Agreement. This Exhibit A may be amended from time to time and upon executed
shall become a part of the Agreement.

 

Employee shall carry out all assignments
including:

 

		(i)	Supervise employees of the Company and its subsidiaries and report to the Board of Directors;

 

		(ii)	Work closely with the Management of the Company and subsidiaries to oversee operations;

 

		(iii)	Oversight of processing permit application(s);

 

		(iv)	Oversight of the development and build out of the Tonopah Property;

 

		(v)	Procure and execute contracts for ore processing;

 

		(vi)	Work with existing officers and directors to build and develop management teams at the parent and
subsidiary level;

 

		(vii)	Lead the Company’s efforts to raise capital including interfacing with the Company’s
advisors and current and prospective investors; and

 

		(viii)	Responsibility for top line revenue and pre-tax profits; and

 

		(ix)	Perform such other duties as are incident to the office of President.

 

The parties hereto have executed this Exhibit
A to the Employment Agreement setting for the Employee’s duties and responsibilities as of the date below.

 

 

	The Company:	 	Employee:
	Standard Metals Processing, Inc.	 	John Ryan
	 	 	 	 	 
	 	 	 	 	 
	By:	/s/: Sharon Ullman 	 	By:	/s/: John Ryan
	 	 	 	 	 
	Name: Sharon Ullman	 	 	 
	Title: Chief Executive Officer, Executive Chairwoman
and Compensation Committee Member	 	Date:	April 24, 2015
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	 

 

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Exhibit B

Stock Option Grants

 

 

 

 

 

 

 

 

 

    	9exh_101.htm

 

 

 

 

 

 

 

 

	 

 

 

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.

	
Limits.

	
9

	
5.3.

	
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

 

 

	

Simmons First National 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

 

 

	

Simmons First National 2015 Incentive Plan

	 Table of Contents

 

  

  

  

 

ARTICLE 1.  INTRODUCTION

 

1.1. 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.

 

1.2. 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.

 

1.3. Effective Date and Term of Plan.

 

The Plan is effective as of July 1, 2015.  No Awards shall be granted under the Plan after June 30, 2025 (or such earlier date as may apply under section 422 of the Code), but Awards previously granted may extend beyond that date.

 

	

Simmons First National 2015 Incentive Plan

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ARTICLE 2 .  DEFINITIONS AND CONSTRUCTION

 

2.1. 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 (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;

 

	

Simmons First National 2015 Incentive Plan

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(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 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

 

	

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(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”)) and “outside directors” as defined in Section 162(m) of the Internal Revenue Code and the regulations promulgated under Section 162(m).

 

	
(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 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.

 

	

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(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.

 

	

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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.

 

	

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ARTICLE 4.  ADMINISTRATION OF THE PLAN

 

4.1. 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.

 

4.2. 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 Section 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 Vice President or Senior Vice President.

 

	

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(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.

 

 

	

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ARTICLE 5.  STOCK SUBJECT TO THE PLAN

 

5.1. Number of Shares.

 

	
(a)  

	
Subject to adjustment under ARTICLE 7, Awards may be made under the Plan for up to 1,000,000 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.

 

5.2. Limits.

 

The maximum aggregate number of shares of Stock for which Awards may be issued under this Plan in any calendar year to an individual Participant, other than a non-employee member of the Board, shall not exceed 300,000 (of which no more than 150,000 may be issued as awards other than Stock Options or SARs),the maximum aggregate number of shares of Stock for which Awards may be issued under this Plan in any calendar year to an individual non-employee member of the Board shall not exceed 75,000, the maximum amount that may be earned as a Cash Award for a performance period for a single calendar year by any individual Participant is $5,000,000, and the maximum amount that may be earned as a Cash Award for a performance period of greater than a single calendar year by any individual Participant is $7,500,000.

 

5.3. 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.

 

	

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ARTICLE 6.  TYPES OF AWARDS

 

6.1. 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.

 

	

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(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 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.

 

	

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(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.

 

	

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(h)  

	
No Reload Grants.

 

	
  

	
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.

 

6.2. 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.

 

6.3. 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-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.

 

	

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(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.

 

6.4. 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.

 

6.5. 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.  It is intended that Performance Shares be granted subject to the requirements of Performance-Based Awards, as set forth in Section 6.8.  If Performance Shares are granted as Performance-Based Awards, the Compensation Committee shall certify that the applicable performance goal(s) and any other material terms of the Awards have been satisfied before payment is made, as set forth in Section 6.8(f).

 

	

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6.6. 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.

 

6.7. 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.

 

6.8. Performance-Based Awards.

 

	
(a)  

	
In General.  Any of the Awards listed in ARTICLE 6 may be granted as Awards that satisfy the requirements for “performance-based compensation” within the meaning of section 162(m) of the Code.  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.  With the exception of any Stock Option or Stock Appreciation Right, an Award that is intended to satisfy the requirements of a performance-based Award shall be so designated at the time of grant.

 

	
(b)  

	
Limits.  The limits under Section 5.2 shall apply with respect to performance-based Awards issued under this Section 6.8.

 

	

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(c)  

	
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, 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 Section 6.8.

 

	
(d)  

	
Application to Stock Options and Stock Appreciation Rights. Notwithstanding anything contained in this Section 6.8 to the contrary, Stock Options and Stock Appreciation Rights need not satisfy the specific performance criteria described in this Section 6.8 in order to qualify as performance-based Awards under this section 162(m) of the Code.

 

	
(e)  

	
Time for Establishing Performance Goals.  The specific performance goal(s) and the applicable performance criteria must be established by the Compensation Committee in advance of the deadlines applicable under section 162(m) of the Code and while the achievement of the performance goal(s) remains substantially uncertain.

 

	

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(f)  

	
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 (15th) 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.  In such case, payment of such deferred amounts must be made as soon as reasonably practicable following the first date on which the Company anticipates or reasonably should anticipate that, if the payments were made on such date, the Company’s deduction with respect to such payment would no longer be restricted due to the applicability of section 162(m) of the Code.

 

	
(g)  

	
Terms and Conditions of Awards; Committee Discretion to Reduce 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 and section 162(m) of the Code, on the payment of individual Awards under this Section 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; provided, however, that, in the case of Awards intended to qualify as performance-based Awards, such adjustments shall be prescribed in a form that meets the requirements of section 162(m) of the Code.

 

	
(h)  

	
Adjustments for Material Changes. To the extent the Compensation Committee makes adjustments in accordance with ARTICLE 7 that affect Awards intended to be performance-based Awards under this Section 6.8, such adjustments shall be prescribed in a form that meets the requirements of section 162(m) of the Code.

 

	

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ARTICLE 7.  ADJUSTMENTS

 

7.1. 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.

 

7.2. 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 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.

 

	

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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.

 

	

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ARTICLE 8.  GENERAL PROVISIONS APPLICABLE TO ALL AWARDS.

 

8.1. 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.

 

8.2. 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.

 

8.3. 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.

 

	

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8.4. 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.

 

8.5. 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.

 

	

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ARTICLE 9.  MISCELLANEOUS

 

9.1. 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.

 

9.2. No Rights as Stockholder.

 

Subject to the provisions of the applicable Award Certificate and except as provided in Section 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.

 

9.3. 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.

 

	

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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 Section 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.

 

9.5. 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.

 

9.6. 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.

 

 

	

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