Document:

EX-10.2

 Exhibit 10.2 

BANK OF THE OZARKS, INC. 

2016 EXECUTIVE CASH BONUS PLAN 

Pursuant to the Bank of the Ozarks, Inc. 2009 Restricted Stock and Incentive Plan, as amended and restated effective May 19, 2014 (the
“Amended Plan”), the Personnel and Compensation Committees (the “Committee”) of the Boards of Directors of Bank of the Ozarks, Inc. (the “Company”) and its wholly-owned bank subsidiary, Bank of the
Ozarks (the “Bank”) has established the following plan for the 2016 grants of Performance Awards to be payable in cash (the “Program”) in order to encourage outstanding performance from its officers. Subject to
applicable law, all designations, determinations, interpretations, and other decisions under or with respect to the Program or any award shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive and
binding upon all persons. Designations, determinations, interpretations, and other decisions made by the Committee with respect to the Program or any Performance Award need not be uniform and may be made selectively among participants, whether or
not such participants are similarly situated. Performance Awards made pursuant to the Program to Covered Officers are intended to qualify as “performance-based compensation” within the meaning of Section 162(m) of the Code and the
regulations promulgated thereunder and this Program shall be interpreted accordingly. Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Amended Plan. 

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

Performance Period 
 Awards shall be
calculated based on the financial results for the period beginning on January 1, 2016 and ending on December 31, 2016 (the “Performance Period”) and paid within two and one-half months following the end of the Performance
Period pursuant to the terms of this Program. Following the completion of the Performance Period, the Committee shall certify in writing whether the applicable performance targets have been achieved and the amounts, if any, payable to any
Participant for the Performance Period. 
 Company Performance Metrics and Award Opportunities 

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

					
	 2016 Performance Metrics
	  	Weight	 
	 Return on Average Assets (“ROAA”)
	  	 	20	% 
	 Diluted Earnings Per Share (“EPS”)(1)
	  	 	20	% 
	 Efficiency Ratio (2)
	  	 	20	% 
	 Net Charge-Off Ratio
	  	 	20	% 
	 Net Interest Margin -fully taxable equivalent (“FTE”)
	  	 	20	% 

  

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

	 	
Company’s outstanding common stock options using the treasury stock method. Net income for purposes of calculating EPS under the Program means the Company’s after tax net income
available to common shareholders, determined in accordance with GAAP, adjusted to exclude (i) any unusual and/or non-recurring items, including but not limited to, the after-tax impact of any bargain purchase gains, acquisition-related costs,
liquidation charges related to contract terminations, information technology systems de-conversion and conversion costs, and any other similar costs or expenses and (ii) the effects of changes in tax law, accounting principles or other such
laws or provisions affecting reported results. 

	 	(2)	Non-interest expense divided by the sum of net interest income – FTE and non-interest income and adjusted to exclude (i) any unusual and/or non-recurring items, including but not limited to, the after-tax
impact of any bargain purchase gains, acquisition-related costs, liquidation charges related to contract terminations, information technology systems de-conversion and conversion costs, and any other similar costs or expenses and (ii) the
effects of changes in tax law, accounting principles or other such laws or provisions affecting reported results. 

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

As soon as practicable following the end of the Performance Period, the Committee shall determine (such date, the “Determination
Date”) whether and to what extent each Performance Metric has been achieved and the final dollar amount (“Bonus Award”), if any, payable to each Participant under the Program. In determining the amount earned by the
Participant for the Performance Period, the Committee shall have the right to reduce (but not increase) the amount payable at a given level of performance to take into account additional factors that the Committee may deem relevant to the assessment
of individual or Company performance for the Performance Period, including the Company’s overall performance, the individual Participant’s specific contributions and performance throughout the Performance Period and any actual or perceived
inappropriate risks taken by Participants. 
 Each Bonus Award shall be paid solely in cash; provided, such amount may not exceed the
maximum amount set forth in Section 10.3(b) of the Amended Plan. 
 Except as the Committee may otherwise determine in its sole and
absolute discretion, termination of a Participant’s employment prior to the end of the Performance Period will result in the forfeiture of the award by the Participant, and no Bonus Award shall be received. 

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

Adjustments for Unusual or Nonrecurring Events. In addition to any adjustments enumerated by the Committee when setting the Performance
Metrics, the Committee is authorized to make adjustments in the terms and conditions of, and the criteria included in, awards in recognition of unusual or nonrecurring 

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

No Right to Employment. The grant of an award shall not be construed as giving a Participant the right to be retained in the employ of
the Company or any Subsidiary or affiliate. 
 No Trust or Fund Created. Neither the Program nor any Performance Award shall create
or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Subsidiary or affiliate and a Participant or any other person. To the extent that any person acquires a right to receive payments
from the Company or any Subsidiary or affiliate pursuant to an award, such right shall be no greater than the right of any unsecured general creditor of the Company or any Subsidiary or affiliate. 

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

Section 409A of the Internal Revenue Code. This Program is intended to comply with Section 409A of the Code and will be
interpreted in a manner intended to comply with Section 409A of the Code. 
 Application of Company Clawback Policy. All grants,
awards, shares of the Company’s common stock, cash or other compensation received by any Participant pursuant to the Program that constitute incentive-based compensation may be subject to recovery by the Company under any compensation recovery,
recoupment or clawback policy adopted by the Company and applicable to such Participant, including without limitation any policy that the Company may be required to adopt under Section 954 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act and the rules and regulations of the U.S. Securities and Exchange Commission thereunder or the requirements of any national securities exchange on which the Company’s common stock may be listed.Exhibit 10.1

FIRST LOAN MODIFICATION AGREEMENT

This First Loan Modification Agreement (this "Loan Modification Agreement") is entered into as of January 14, 2016, by and among (a) SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 505 Fifth Avenue, 11th Floor, New York, New York 10017 ("Bank") and (b) (i) ASTEA INTERNATIONAL INC., a Delaware corporation, with its principal place of business at 240 Gibraltar Road, Suite 300 Horsham, Pennsylvania 19044 ("Parent Borrower"), (ii) NETWORK DATA, INC., a Delaware corporation, with its principal place of business at 240 Gibraltar Road, Suite 300 Horsham, Pennsylvania 19044 ("Network Data"), (iii) VIRTUAL SERVICE CORPORATION, a Delaware corporation, with its principal place of business at 240 Gibraltar Road, Suite 300 Horsham, Pennsylvania 19044 {"Virtual Service") and (iv) FC ACQUISITION CORP., a Delaware corporation, with its principal place of business at 240 Gibraltar Road, Suite 300 Horsham, Pennsylvania 19044 ("FC Acquisition") (Parent Borrower, Network Data, Virtual Service and FC Acquisition are hereinafter jointly and severally, individually and collectively, referred to as "Borrower").

1.          DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among  other indebtedness  and obligations which may be  owing  by Borrower to Bank, Borrower is indebted to Bank pursuant to a loan arrangement dated as of December 18, 2014, evidenced by, among other documents, a certain Amended and Restated Loan and Security Agreement dated as of December 18, 2014, among Borrower and Bank (as amended, the "Loan Agreement"). Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement.

2.     DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as defined in the Loan Agreement (together with any other collateral security granted to Bank, the "Security Documents"). Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the "Existing Loan Documents".

3.     DESCRIPTION OF CHANGE IN TERMS.

	 	
A.

	
Modifications to Loan Agreement.

 

	 	
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The Loan Agreement shall be amended by deleting the following text, appearing in Section 6.2(a) thereof:

"(ii) as soon as available, but no later than forty-five (45) days after the last day of each fiscal quarter, a company prepared consolidated balance sheet and income statement covering Borrower's consolidated operations during such fiscal quarter certified by a Responsible Officer and in a form reasonably acceptable to Bank;"

and inserting in lieu thereof  the following:

"(ii) as soon as available, but no later than forty-five (45) days after the last day of each fiscal quarter, a company prepared consolidated and consolidating balance sheet and income statement covering Borrower's and each of its Subsidiaries' consolidated and consolidating operations during such fiscal quarter certified by a Responsible Officer and in a form reasonably acceptable to Bank;"

	 	
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The Loan Agreement shall be amended by deleting the following text, appearing in Section 6.2(c) thereof:

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"Such inspections or audits shall be conducted no more often than once every twelve (12) months unless an Event of Default has occurred and is continuing."

and inserting in lieu  thereof  the  following:

"Such inspections or audits shall be conducted no more often than once every twelve (12) months (or more frequently as Bank determines in its sole discretion that conditions warrant), unless an Event of Default has occurred and is continuing."

	 	
3.

	
The Loan Agreement shall be amended by deleting the following text, appearing in Section 6.5(a) thereof:

"At all times on and after the date that is sixty (60) days from the Effective Date, to permit Bank to monitor Borrower's financial performance and condition, maintain all of Borrower's and its Subsidiaries' depository and operating accounts and securities/investment accounts with Bank and Bank's Affiliates."

and inserting in lieu thereof the following:

"At all times on and after the date that is sixty (60) days from the Effective Date, to permit Bank to monitor Borrower's financial performance and condition, maintain all of Borrower's and its Subsidiaries' depository and operating accounts and securities/investment accounts with Bank and Bank's Affiliates, provided, however, Borrower and its Subsidiaries shall be permitted to maintain the following accounts existing on First LMA Effective Date so long as such accounts are used solely for operating purposes and subject to the following limitations on the amount of funds contained in such accounts: (i) the account of Network Data with PNC Bank (as disclosed on the Perfection Certificate) so long as the aggregate amount of funds in such account does not exceed Ten Thousand Dollars ($10,000.00) at any time, (ii) the account of Parent Borrower with Westpac Banking Corporation (as disclosed on the Perfection Certificate) so long as the aggregate amount of funds in such account does not exceed Two Hundred Fifty Thousand Dollars ($250,000.00) at any time, (iii) the account of Parent Borrower and Network Data with Morgan Stanley (as disclosed on the Perfection Certificate) so long as the aggregate amount of funds in such account does not exceed One Hundred Thousand Dollars ($100,000.00) at any time, (iv) the accounts of Parent Borrower's Subsidiaries, Astea Israel Ltd., Astea International Japan, Inc., Astea (UK) Ltd. and Astea Service & Distribution Systems B.V., with First International Bank of Israel, The Bank of Tokyo UFJ, Ltd., Sumitomo Mitsui Banking Corporation, Natwest Bank and Rabobank (each as disclosed on the Perfection Certificate) so long as the aggregate amount of funds in all such accounts (for all such accounts together) does not exceed One Million Two Hundred Fifty Thousand Dollars ($1,250,000.00) at any time and (v) the account of Parent Borrower's Subsidiary, Astea Israel Ltd., with Morgan Stanley (as disclosed on the Perfection Certificate) so long as the aggregate amount of funds in such account does not exceed Three Hundred Fifty Thousand Dollars ($350,000.00) at any time (such accounts, collectively, the "Permitted  Accounts")."

 

 

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The Loan Agreement shall be amended by deleting the following text, appearing in Section 6.5(b) thereof:

"The provisions of the previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of Borrower's employees and identified to Bank by Borrower as such."

and inserting in lieu thereof the following:

"The provisions of the previous sentence shall not apply to (a) deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of Borrower's employees and identified to Bank by Borrower as such or (b) the Permitted Accounts."

	
5

	
The Loan Agreement shall be amended by deleting "." where it appears at the end of the definition of "Permitted Investments" in Section 13.1 thereof and inserting in lieu thereof "; and", and then inserting the following new text, appearing at the end of such definition:

 

"  (h)          Investments by Parent Borrower in Parent Borrower's Subsidiary, Astea Israel Ltd., for the ordinary and necessary current operating expenses of such Subsidiary in an aggregate amount not to exceed Five Hundred Fifty Thousand Dollars ($550,000.00) per calendar month, provided, however, that, so long as no Event of Default exists or could be expected to result therefrom, Bank may approve a higher amount for a particular month, which approval shall be in writing and shall be granted on a case-by-case basis in Bank's sole discretion;"

	
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The Loan Agreement shall be amended by inserting the following new definitions, appearing alphabetically in Section 13.l thereof:

"First LMA Effective  Date" is January  14, 2016."

"Permitted Accounts" is defined in Section 6.5(a) of this  Agreement.

	
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The Loan Agreement shall be amended by deleting the following definition appearing in Section 13.l thereof:

"Maturity Date" is two (2) years from the Effective Date." 

 

and inserting in lieu thereof the following:

 

"Maturity Date" is April 30, 2018."

 

4.        FEES AND EXPENSES. Borrower shall pay to Bank a modification fee equal to Thirty Thousand Dollars ($30,000.00) which fee shall be deemed fully earned as of the date hereof, and shall be due and payable upon the earlier to occur of (i) December 18, 2016, (ii) the termination of the Loan Agreement, and (iii) the occurrence of an Event of Default. Borrower shall also reimburse Bank for all legal fees and expenses incurred in connection with this amendment to the Existing Loan Documents.

 

5.        PERFECTION CERTIFICATE. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate of Parent Borrower dated as of January 14, 2016, and acknowledges, confirms and agrees the disclosures and information Parent Borrower provided to Bank in such Perfection Certificate have not changed, as of the date hereof. Borrower hereby acknowledges and agrees that all references in the Loan Agreement to Perfection Certificate shall mean and include the Perfection Certificate as described herein.

 

 

 

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6.        CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above.

 

7.        RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of all security or other collateral granted to Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations.

 

8.          NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder.

 

9.       CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing Obligations, Bank is relying upon Borrower's representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and effect. Bank's agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker will be released by virtue of this Loan Modification Agreement.

 

10.      COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it shall have been executed by Borrower and Bank.

 

 

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This Loan Modification Agreement is executed as of the date first written above.

BORROWER:

ASTEA INTERNATIONAL INC.

	
By:

	 /s/ Rick Etskovitz
	
Name:

	 Rick Etskovitz
	
Title:

	 CFO

NETWORK DATA, INC.

	
By:

	 /s/ Rick Etskovitz
	
Name:

	 Rick Etskovitz
	
Title:

	 CFO, Secretary & Assistant Treasurer

VIRTUAL SERVICE CORPORATION

	
By:

	 /s/ Rick Etskovitz
	
Name:

	 Rick Etskovitz
	
Title:

	 CFO, Secretary & Treasurer

FC ACQUISITION CORP.

	
By:

	 /s/ Rick Etzkovitz
	
Name:

	 Rick Etskovitz
	
Title:

	 CFO, Secretary & Treasurer

BANK:

SILICON VALLEY BANK

	
By:

	 /s/ Michael Quinn
	
Name:

	 Michael Quinn
	
Title:

	 VP

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