Document:

homb-ex42_11.htm

Exhibit 4.2

 

DESCRIPTION OF CAPITAL STOCK

 

The following is a description of the capital stock of Home BancShares, Inc. (the “Company”) and certain provisions of the Company’s Restated Articles of Incorporation, as amended (“Articles”), Restated Bylaws, as amended (“Bylaws”), and certain provisions of applicable law. The following is only a summary and is qualified by applicable law and by the provisions of the Company’s Articles and Bylaws, copies of which have been filed with the Securities and Exchange Commission (“SEC”) and are also available upon request from the Company.

 

General

 

Under our Restated Articles of Incorporation, as amended, we have authority to issue up to 300,000,000 shares of common stock, par value $0.01 per share, and up to 5,500,000 shares of preferred stock, par value $0.01 per share. Each share of our common stock has the same relative rights as, and is identical in all respects to, each other share of our common stock.

 

As of December 31, 2020, 165,095,252 shares of our common stock were issued and outstanding, and 4,983,895 shares of common stock were reserved for issuance pursuant to the Company’s stock option and performance incentive plan. Our common stock is listed on the NASDAQ Global Select Market. The outstanding shares of our common stock are validly issued, fully paid and non-assessable.

 

As of December 31, 2020, no shares of our preferred stock were issued and outstanding.

 

Common Stock

 

Voting Rights. Holders of our common stock are entitled to one vote per share on all matters submitted to a vote of shareholders. Holders of our common stock do not have cumulative voting rights.

 

Dividend Rights. Holders of our common stock are entitled to dividends when, as, and if declared by our board of directors out of funds legally available for the payment of dividends. Holders of any series of preferred stock we may issue in the future may have a priority over holders of common stock with respect to dividends. The payment of dividends is subject to government regulation, in that regulatory authorities may prohibit banks and bank holding companies from paying dividends in a manner that would constitute an unsafe or unsound banking practice. In addition, a bank may not pay cash dividends if doing so would reduce the amount of its capital below that necessary to meet minimum regulatory capital requirements. State laws also limit a bank’s ability to pay dividends. Accordingly, the dividend restrictions imposed on our bank subsidiary by statute or regulation effectively may limit the amount of dividends we can pay.

 

Liquidation and Dissolution. In the event of the liquidation, dissolution and winding up of the Company, the holders of our common stock are entitled to receive ratably all of the assets of the Company available for distribution after satisfaction of all liabilities of the Company, subject to the rights of the holders of any of the Company’s preferred shares that may be issued from time to time.

 

Other Rights. Holders of our common stock have no preferential or preemptive rights with respect to any securities of Home BancShares, and there are no conversion rights or redemption or sinking fund provisions applicable to our common stock.

 

Restrictions on Ownership. The Bank Holding Company Act (the “BHCA”) requires any “bank holding company,” as defined in the BHCA, to obtain the approval of the Board of Governors of the Federal Reserve prior to the acquisition of 5% or more of our common stock. Any “company,” as defined in the BHCA, other than a bank holding company would be required to obtain Federal Reserve approval before acquiring “control” of us. “Control” generally means (i) the ownership or control of 25% or more of a class of voting securities, (ii) the ability to elect a majority of the directors or (iii) the ability otherwise to exercise a controlling influence over our management and policies. A holder of 25% or more of our outstanding common stock, other than an individual, is subject to regulation and supervision as a bank holding company under the BHCA. In addition, under the Change in Bank Control Act of 1978, as amended, and the Federal Reserve’s regulations thereunder, any person, either individually or acting through or in concert with one or more persons, is required to provide notice to the Federal Reserve prior to acquiring, directly or indirectly, 10% or more of our outstanding common stock.

 

Modification of Rights. Our board of directors acting by a majority vote of the members present, without shareholder approval, may amend our Bylaws and may issue shares of our preferred stock under terms determined by the board of directors as described below under “Preferred Stock.” Rights of holders of our common stock may not otherwise be modified by less 

 

 

than a majority vote of the common stock outstanding. Additionally, under the Arkansas Business Corporation Act of 1987, a majority vote is required for the approval of a merger or consolidation with another corporation, and for the sale of all or substantially all of our assets and liquidation or dissolution of the Company.

 

Transfer Agent. The transfer agent and registrar for our common stock is Computershare, 150 Royall Street, Canton, Massachusetts 02021.

 

Preferred Stock

 

The 5,500,000 shares of our preferred stock, par value $0.01 per share, are typically referred to as “blank check” preferred stock. This term means that these shares of preferred stock may be issued with such preferences, limitations, relative rights, and terms as determined by our board of directors. As such, the board of directors can, without shareholder approval, issue preferred stock with voting, dividend, liquidation and conversion rights that could dilute the voting strength of the holders of the common stock and may assist management in impeding an unfriendly takeover or attempted change in control.

 

The Company has no present plans to issue any shares of its preferred stock.Document

                    				
		Hermes Fund Managers Limited
150 Cheapside, London EC2V 6ET
United Kingdom

+44 (0)20 7702 0888      Phone
+44 (0)20 7702 9452      Fax
www.FederatedHermes.com

Hermes Fund Managers Limited
Co-Investment Scheme Rules
 Hermes GPE (Singapore) Pte. Ltd - Addendum

Hermes GPE (Singapore) Pte. Ltd (“HGPE Singapore”) Eligibility - Hermes Co-Investment Scheme
Certain HGPE Singapore employees in Business Development roles may be invited to participate in the Hermes Co-Investment Scheme. The rules of the scheme are applied in full, with no variations.
For the avoidance of doubt, the Co-Investment Scheme is a Deferred Bonus Scheme whereby bonus deferral amount is calculated as per the following table:
									
	Column 1
	Column 2: Co-Investment Thresholds
	Column 3: Deferred Percentage

	First Row
	Any part of the Aggregate Bonus not exceeding £150,000 (or the Overseas Equivalent) but greater than £75,000
	10%

	Second Row
	Any part of the Aggregate Bonus exceeding £150,000 (or the Overseas Equivalent) but not exceeding £300,000 (or the Overseas Equivalent)
	30%

	Third Row
	Any part of the Aggregate Bonus exceeding £300,000 (or the Overseas Equivalent)
	50%

The following employees fall under the scope of these Rules as of February 2020:
									
	Staff Number	Known As	Surname
	[Number]	[Name]	[Name]
	[Number]	[Name]	[Name]
	[Number]	[Name]	[Name]
	[Number]	[Name]	[Name]
	[Number]	[Name]	[Name]

A sample of the text used in the award letter to denote deferral is provided on the next page. Please refer to the Co-Investment Scheme Rules for full details.  

    1

SAMPLE AWARD LETTER

I am pleased to advise you that you have been awarded a discretionary bonus of [TOTAL AMOUNT] for the performance year 20XX.  Of this amount, [DEFERRED AMOUNT] has been deferred and will be co-invested in accordance with the Hermes Fund Managers Limited Co-investment Scheme Rules (“the Scheme”).  The cash amount of [TOTAL AMOUNT – DEFERRED AMOUNT] will be paid on 28 February 20XX. 

The deferred amount will have an award date of 1 March 20XX. Further details can be found in the enclosed Investment Preference Form. To validate the deferred co-invested award, irrespective of fund choice, you must acknowledge your agreement to the Scheme Rules.  Please return a signed copy of the form to [Name] in Human Resources, Hermes Fund Managers Limited  by [DATE] to ensure your award is processed. The Company reserves the right to forfeit your 20XX awards if the agreement is not acknowledged within the required timeframe.

By accepting your discretionary bonus award you undertake not to use personal hedging strategies or contracts of insurance to hedge or insure against any risk contained in the deferred remuneration arrangements referred to in this letter.  It is a condition of your discretionary bonus award that if you are found to have acted in breach of this undertaking, Hermes may at its absolute discretion require you to forfeit part or all of any amounts of deferred compensation which you hold in the Scheme. You may also be subject to disciplinary proceedings and possible dismissal.  If you do not wish to accept your discretionary bonus award on this basis or if you have any queries in relation to the use of personal hedging strategies or contracts of insurance, please contact [Name], Head of Human Resources, Hermes Fund Managers Limited  before [DATE].

Should you wish, you have the opportunity to exchange part or all of your discretionary cash bonus for a company pension contribution. Please see the enclosed Bonus Exchange Information Sheet for further details. To take up this opportunity, please sign and return the Bonus Exchange Option Form to [Name] in Human Resources, Hermes Fund Managers Limited  by [DATE].

All amounts referred to are gross and subject to the appropriate statutory withholding and deductions relevant at the time of payment. 

Thank you very much for your contribution during 20XX.

Yours sincerely,

    2

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