Document:

EX-10.29

  Exhibit 10.29

  NONQUALIFIED STOCK OPTION AGREEMENT
FOR COMPANY EMPLOYEES
UNDER the Terran Orbital Corporation
2021 Omnibus INCENTIVE PLAN

  Name of Optionee:		

  No. of Option Shares:		

  Option Exercise Price per Share:	$	

  	[FMV on Grant Date]

  Grant Date:		

  Expiration Date:		
	[No more than 10 years]

  Pursuant to the Terran Orbital Corporation 2021 Omnibus Incentive Plan (as may be amended from time to time, the “Plan”), Terran Orbital Corporation (together with any successor thereto, the “Company”) hereby grants to the Optionee named above an option (this “Stock Option”) to purchase on or prior to the Expiration Date specified above all or part of the number of shares of common stock, par value $0.0001 per share of the Company (the “Stock”), specified above (“Option Shares”) at the Option Exercise Price per Share specified above subject to the terms and conditions set forth in this Nonqualified Stock Option Agreement (this “Agreement”) and in the Plan.  This Stock Option is not intended to be an “incentive stock option” under Section 422 of the Internal Revenue Code of 1986, as amended.

  1.Vesting and Exercisability Schedule.  No portion of this Stock Option may be exercised until such portion shall have become vested and exercisable.  Except as set forth below, and subject to the discretion of the Committee (as defined in Section 2(h) of the Plan) to accelerate the vesting and exercisability schedule hereunder, this Stock Option shall be vested and exercisable with respect to the following number of Option Shares on the dates indicated so long as the Optionee remains in Continuous Service with the Company or one of its Affiliates through such dates:

  		
	Incremental Number of
Option Shares Vested and Exercisable
	Exercisability Date

	_____________ (___%)
	____________

	_____________ (___%)
	____________

	_____________ (___%)
	____________

	_____________ (___%)
	____________

	_____________ (___%)
	____________

   

   

  

  Once vested and exercisable, this Stock Option shall continue to be exercisable at any time or times prior to the close of business on the Expiration Date, subject to the provisions hereof and of the Plan.

  2.Manner of Exercise.

  (a)The Optionee may exercise this Stock Option, to the extent vested, only in the following manner:  from time to time on or prior to the Expiration Date of this Stock Option, the Optionee may give written notice to the Committee of the Optionee’s election to purchase some or all of the Option Shares purchasable at the time of such notice.  This notice shall specify the number of Option Shares to be purchased.

  Payment of the purchase price for the Option Shares may be made by one or more of the following methods:  (i) in immediately available funds in U.S. dollars, or by certified or bank cashier’s check; (ii) by delivery of shares of Stock having a value equal to the exercise price; (iii) by a broker-assisted cashless exercise in accordance with procedures approved by the Committee, whereby payment of the Option exercise price or tax withholding obligations may be satisfied, in whole or in part, with shares of Stock subject to the Option by delivery of an irrevocable direction to a securities broker (on a form prescribed by the Committee) to sell shares of Stock and to deliver all or part of the sale proceeds to the Company in payment of the aggregate exercise price and, if applicable, the amount necessary to satisfy the Company’s withholding obligations; or (iv) by any other means approved by the Committee (including, by delivery of a notice of “net exercise” to the Company, pursuant to which the Optionee shall receive (1) the number of shares of Stock underlying the Option so exercised, reduced by (2) the number of shares of Stock equal to (A) the aggregate exercise price of the Option for the portion so exercised divided by (B) the Fair Market Value on the date of exercise).  Notwithstanding anything herein to the contrary, if the Committee determines that any form of payment available hereunder would be in violation of Section 402 of the Sarbanes-Oxley Act of 2002, such form of payment shall not be available.

  The transfer to the Optionee on the records of the Company or of the transfer agent of the exercised Option Shares will be contingent upon (i) the Company’s receipt from the Optionee of the full purchase price for such Option Shares, as set forth above, (ii) the fulfillment of any other requirements contained herein or in the Plan or in any other agreement or provision of laws, and (iii) the receipt by the Company of any agreement, statement or other evidence that the Company may require to satisfy itself that the issuance of Stock to be purchased pursuant to the exercise of Stock Options under the Plan and any subsequent resale of the shares of Stock will be in compliance with applicable laws and regulations.  In the event the Optionee chooses to pay the purchase price by previously-owned shares of Stock through the attestation method, the number of shares of Stock transferred to the Optionee upon the exercise of the Stock Option shall be net of the Shares attested to.

  (b)The shares of Stock purchased upon exercise of this Stock Option shall be transferred to the Optionee on the records of the Company or of the transfer agent upon compliance to the satisfaction of the Committee with all requirements under applicable laws or regulations in connection with such transfer and with the requirements hereof and of the Plan.  The determination of the Committee as to such compliance shall be final and binding on the 

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  Optionee.  The Optionee shall not be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares of Stock subject to this Stock Option unless and until this Stock Option shall have been exercised pursuant to the terms hereof, the Company or the transfer agent shall have transferred the shares to the Optionee, and the Optionee’s name shall have been entered as the stockholder of record on the books of the Company.  Thereupon, the Optionee shall have full voting, dividend and other ownership rights with respect to such acquired shares of Stock.

  (c)The minimum number of shares of Stock with respect to which this Stock Option may be exercised at any one time shall be 100 shares, unless the number of shares with respect to which this Stock Option is being exercised is the total number of shares remaining subject to exercise under this Stock Option at the time.

  (d)Notwithstanding any other provision hereof or of the Plan, no portion of this Stock Option shall be exercisable after the Expiration Date hereof.

  3.Termination of Service Relationship.  In the event of the Optionee’s termination of Continuous Service prior to the Expiration Date, the period within which to exercise the Stock Option may be subject to earlier termination as set forth below.

  (a)Termination Due to Death or Disability.  If the Optionee’s termination of Continuous Service is by reason of the Optionee’s death or Disability, any portion of this Stock Option outstanding on such date, to the extent vested and exercisable on the date of such termination, may thereafter be exercised by the Optionee’s legal representative or legatee for a period of 12 months from the date of termination or, if earlier, until the Expiration Date.  Any portion of this Stock Option that is not vested and exercisable on the date of termination of Continuous Service shall terminate immediately upon such termination of Continuous Service and be of no further force or effect.

  (b)Termination for Cause.  If the Optionee’s termination of Continuous Service is for Cause, any portion of this Stock Option outstanding and unexercised on such date (whether or not vested) shall immediately terminate and be forfeited for no consideration as of the date of such termination. 

  (c)Other Termination.  If the Optionee’s termination of Continuous Service is for any reason other than the Optionee’s death, the Optionee’s Disability, or Cause, and unless otherwise determined by the Committee, any portion of this Stock Option outstanding on such date of termination may be exercised, to the extent vested and exercisable on the date of termination, for a period of 90 days from the date of termination or, if earlier, until the Expiration Date.  Any portion of this Stock Option that is not vested and exercisable on the date of termination of Continuous Service shall terminate immediately upon such termination of Continuous Service and be of no further force or effect.

  The Committee’s determination of the reason of the Optionee’s termination shall, for purposes of the Plan and this Stock Option, be conclusive and binding on the Optionee and the Optionee’s representatives or legatees.

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  4.Incorporation of Plan.  Notwithstanding anything herein to the contrary, this Stock Option shall be subject to and governed by all the terms and conditions of the Plan, including the powers of the Committee set forth in Section 3(a) of the Plan.  Capitalized terms in this Agreement shall have the meaning specified in the Plan, unless a different meaning is specified herein.  In the event of a conflict between the terms and conditions of the Plan and this Agreement, the terms and conditions of the Plan shall prevail.

  5.Non-Transferability.  This Agreement, and the Stock Option granted hereunder, are personal to the Optionee, non-assignable and not transferable in any manner, by operation of law or otherwise, other than by will or the laws of descent and distribution.  This Stock Option is exercisable, during the Optionee’s lifetime, only by the Optionee, and thereafter, only by the Optionee’s legal representative or legatee.

  6.Tax Withholding.  This Stock Option, and any exercise thereof, is subject to the Optionee satisfying any applicable federal, state and local tax withholding obligations and non-U.S. tax withholding obligations.  The Committee shall have the authority to cause the required tax withholding obligation to be satisfied, in whole or in part, by (i) withholding from shares of Stock to be issued to the Optionee a number of shares of Stock with an aggregate Fair Market Value that would satisfy the withholding amount due, or (ii) causing its transfer agent to sell from the number of shares of Stock to be issued to the Optionee, the number of shares of Stock necessary to satisfy the federal, state and local taxes required by law to be withheld from the Optionee on account of such exercise; provided, however, that if the Optionee is subject to Section 16 of the Securities Exchange Act of 1934, as amended, the required tax withholding obligations shall be satisfied by a “net settlement” as described in clause (i) above unless otherwise determined by the Committee.

  7.No Obligation to Continue Employment or Other Service Relationship.  Neither the Company nor any of its Affiliates is obligated by or as a result of the Plan or this Agreement to continue the Optionee’s employment or other service relationship with the Company or any of its Affiliates, and neither the Plan nor this Agreement shall interfere in any way with the right of the Company or any of its Affiliates to terminate the Optionee’s employment or other service relationship with the Company or any of its Affiliates at any time.

  8.Integration.  This Agreement constitutes the entire agreement between the parties with respect to this Stock Option and supersedes all prior agreements and discussions between the parties concerning such subject matter.

  9.Data Privacy Consent.  As a condition of receipt of this Stock Option, the Optionee explicitly and unambiguously consents to the collection, use, and transfer, in electronic or other form, of personal data as described in this Section 9 by and among, as applicable, the Company and its Affiliates, for the exclusive purpose of implementing, administering, and managing the Plan and Awards and the Optionee’s participation in the Plan.  In furtherance of such implementation, administration, and management, the Company and its Affiliates may hold certain personal information about the Optionee, including, but not limited to, the Optionee’s name, home address, telephone number, date of birth, social security or insurance number or other identification number, salary, nationality, job title(s), information regarding any securities of the Company or any of its Affiliates, and details of all Awards (the “Data”).  In addition to 

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  transferring the Data amongst themselves as necessary for the purpose of implementation, administration, and management of the Plan and Awards and the Optionee’s participation in the Plan, the Company and its Affiliates may each transfer the Data to any third parties assisting the Company in the implementation, administration, and management of the Plan and Awards and the Optionee’s participation in the Plan.  Recipients of the Data may be located in the Optionee’s country or elsewhere, and the Optionee’s country and any given recipient’s country may have different data privacy laws and protections.  By accepting an Award, the Optionee authorizes such recipients to receive, possess, use, retain, and transfer the Data, in electronic or other form, for the purposes of assisting the Company in the implementation, administration, and management of the Plan and Awards and the Optionee’s participation in the Plan, including any requisite transfer of such Data as may be required to a broker or other third party with whom the Company or the Optionee may elect to deposit any shares of Stock.  The Data related to a Optionee will be held only as long as is necessary to implement, administer, and manage the Plan and Awards and the Optionee’s participation in the Plan.  The Optionee may, at any time, view the Data held by the Company with respect to the Optionee, request additional information about the storage and processing of the Data with respect to the Optionee, recommend any necessary corrections to the Data with respect to the Optionee, or refuse or withdraw the consents herein in writing, in any case without cost, by contacting the Optionee’s local human resources representative.  The Company may cancel the Optionee’s eligibility to participate in the Plan, and in the Committee’s discretion, the Optionee may forfeit any outstanding Awards if the Optionee refuses or withdraws the consents described herein.  For more information on the consequences of refusal to consent or withdrawal of consent, the Optionee may contact their local human resources representative.

  1.Additional Definitions.  For purposes of this Agreement, the following terms shall be defined as set forth below:

  “Consultant” means a consultant or adviser who provides bona fide services to the Company or an Affiliate as an independent contractor and who qualifies as a consultant or advisor under Instruction A.1.(a)(1) of Form S-8 under the Act.  

  “Continuous Service” shall mean that the Participant’s service with the Company or its Affiliates, whether as an employee, director or Consultant is not interrupted or terminated.  The Participant’s Continuous Service shall not be deemed to have terminated merely because of a change in capacity in which the Participant renders service to the Company or its Affiliates as an employee, director or consultant or a change in the entity for which the Participant renders service, provided that there is no interruption or termination of the Participants Continuous Service; provided further that if any Award is subject to Section 409A of the Code, this sentence shall only be given effect to the extent consistent with Section 409A of the Code.   

  10.Notices.  Notices hereunder shall be mailed or delivered to the Company at its principal place of business and shall be mailed or delivered to the Optionee at the address on file with the Company or, in either case, at such other address as one party may subsequently furnish to the other party in writing.

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  TERRAN ORBITAL CORPORATION

  By:		

  	Name:   
 Title:

  The foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed to by the undersigned.  Electronic acceptance of this Agreement pursuant to the Company’s instructions to the Optionee (including through an online acceptance process) is acceptable.

  Dated:				

  Optionee’s Signature

   

  Optionee’s name and address:

  	 

  	 

  	 

  	6EX-10.1

  Exhibit 10.1

   

   

   

  	EXECUTIVE RECOGNITION AGREEMENT

   

   

  	THIS EXECUTIVE RECOGNITION AGREEMENT (this “Agreement”) between FIRST FINANCIAL BANKSHARES, INC., a Texas corporation (the “Company”), and ______________________ (the “Employee”) is dated effective August 1, 2022 (the “Effective Date”).

  	WITNESSETH:

  	WHEREAS, the Company considers it essential to the best interests of its stockholders to foster the continuous employment of key executives of the Company; and

  	WHEREAS, the Employee is a key executive of the Company; and

  	WHEREAS, the parties recognize that, as is the case with many publicly-held corporations, the possibility of a “Change in Control” (as such term is defined in Section 1 hereof) may exist and that such possibility, and the uncertainty and questions which it may raise among management, may result in the departure or distraction of a key executive at a critical time, and to the detriment of the Company and its stockholders; and

  	WHEREAS, the Company recognizes that the Employee, as a key executive, could suffer financial and professional detriments if a Change in Control of the Company were to occur; and

  	WHEREAS, in order to protect the Employee in the event of a Change in Control of the Company, the Company agrees that the Employee shall receive the benefits set forth in this Agreement in the event the Employee’s employment with the Company is terminated subsequent to a Change in Control of the Company under the circumstances described below;

  	NOW, THEREFORE, the parties hereby agree as follows:

  	1.	Employment in General; Change in Control.  This Agreement does not affect the Employee’s employment arrangements with the Company except for the conditions contained herein pertaining to a Change in Control of the Company.  Absent a Change in Control of the Company, the Employee’s continued employment with the Company shall at all times be subject 

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  to the will of the Board of Directors of the Company (the “Board”).  For purposes of this Agreement, a “Change in Control” of the Company means the occurrence of any of the following after the Effective Date: (a) any Person (as hereinafter defined) becomes the beneficial owner (as such term is defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding voting securities; or (b) the consummation of a reorganization, merger, consolidation, recapitalization, exchange offer, purchase of assets or other transaction, in each case, with respect to which the Persons who were the beneficial owners of the Company immediately prior to such a transaction do not, immediately after such transaction, own more than fifty percent (50%) of the combined voting power of the reorganized, merged, recapitalized or resulting company’s then outstanding voting securities; or (c) the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company and such complete liquidation or dissolution is consummated; or (d) in any two-year period, individuals who were members of the Board at the beginning of such period plus each new director whose election or nomination for election was approved by at least two-thirds of the directors in office immediately prior to such election or nomination, cease for any reason to constitute at least a majority of the Board; or (e) the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity at least 50% of the combined voting power of the voting securities of which is owned by Persons in substantially the same proportions as their ownership of the Company immediately prior to such sale.  For purposes of this Agreement, “Person” shall mean and include any individual, corporation, partnership, group, association or other “person”, as such term is used in Sections 13(d) and 14(d) of the Exchange Act, other than the Company, a wholly owned subsidiary of the Company or any employee benefit plan(s) sponsored by the Company or a subsidiary of the Company.

  	2.	Term of Agreement.  Unless extended pursuant to the provisions of this Section 2, the term of this Agreement shall be for the period commencing as of the Effective Date and continuing 

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  thereafter until the earliest to occur of (a) the Employee’s death, Disability (as defined in Subsection 3(i) hereof) or Retirement (as defined in Subsection 3(ii) hereof), (b) the termination of the Employee’s employment with the Company prior to a Change in Control of the Company, or (c) June 30, 2024.  The foregoing notwithstanding, if a Change in Control of the Company shall have occurred during the term of this Agreement, this Agreement shall continue in effect for a period of two (2) years from the date of any such Change in Control of the Company; and further, if a second Change in Control occurs within a period of two (2) years from the date of the first Change in Control, this Agreement shall continue in effect for a period of two (2) years from the date of the second Change in Control of the Company; and if any benefit accrues and remains unpaid at the time this Agreement would otherwise have terminated, this Agreement shall remain in effect until such benefit is paid in full solely for the purpose of permitting the Employee to enforce the full payment of such benefit.

  	3.	Termination Following Change in Control.  If a Change in Control of the Company occurs, the Employee shall be entitled to the benefits provided in Subsection 4(iii) hereof upon the subsequent termination of the Employee’s employment during the term of this Agreement, unless such termination is (a) because of the Employee’s death, Disability or Retirement, (b) by the Company for Cause, or (c) by the Employee other than for Good Reason.  The parties hereto expressly acknowledge and agree that notwithstanding anything contained in this Agreement to the contrary, the Employee is entitled to any and all benefits due to the Employee as determined in accordance with the terms of the Company’s benefit plans (without reference to this Agreement), including, without limitation, all qualified and nonqualified deferred compensation plans, all equity- and cash-based incentive plans, and all medical, dental, disability, accident and insurance plans, then in effect (each a “Company Benefit Plan”) whether the Employee is terminated by the Company for Cause or for other than Cause, by the Employee for Good Reason or for other than Good Reason, because of the Retirement, Disability or death of the Employee or for any other reason, and the benefits provided in Subsection 4(iii) hereof shall be determined in accordance with this Agreement without any impact, impairment, reduction or other effect on the 

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  Employee’s rights or benefits under such Company Benefit Plan(s).  For purposes of this Agreement the following definitions shall apply:

  		(i)  Disability.  Termination by the Company of the Employee’s employment based on “Disability” shall mean termination because of the Employee’s absence from his/her duties with the Company on a full-time basis for ninety (90) consecutive days as a result of the Employee’s physical or mental incapacity due to injury or illness, unless within thirty (30) days after Notice of Termination (as hereinafter defined) is given to the Employee following such absence the Employee shall have returned to the full-time performance of his/her duties, with or without reasonable accomodations.

  		(ii)  Retirement.  Termination by the Employee of the Employee’s employment based on “Retirement” shall mean the Employee’s voluntary resignation without Good Reason after attaining age 65.

  		(iii)  Cause.  Termination by the Company of the Employee’s employment for “Cause” shall mean termination upon (A) the willful and continued failure by the Employee to substantially perform his/her duties with the Company (other than any such failure resulting from the Employee’s physical or mental incapacity due to injury or illness) after written demand for substantial performance is delivered to the Employee by the Company, which demand specifically identifies the manner in which the Employee has not substantially performed his/her duties, or (B) the willful engaging by the Employee in conduct which is demonstrably injurious to the Company, monetarily or otherwise.  For purposes of this Subsection (iii), no act, or failure to act, on the Employee’s part shall be deemed “willful” unless done, or omitted to be done, by the Employee in bad faith and without “reasonable belief” (as hereinafter defined) that his/her action or omission was in, or not opposed to, the best interests of the Company.  The phrase “reasonable belief” shall mean the belief that a reasonable and prudent man would have had in the same or similar 

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  circumstances as to the act or failure to act.  Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Employee in good faith, and in the best interests of the Company.  Notwithstanding the foregoing the Employee shall not be deemed to have been terminated for Cause unless and until there shall have been delivered to the Employee a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the entire membership of the Board at a meeting of the Board called for such purpose (after reasonable notice to the Employee and an opportunity for the Employee, together with counsel, to be heard before the Board), finding that in the good faith opinion of the Board the Employee was guilty of the conduct set forth above in (A) or (B) of this Subsection (iii) and specifying the particulars thereof in detail.

  		(iv)  Good Reason.  Termination by the Employee of his/her employment for “Good Reason” shall mean termination within a period of time not to exceed one (1) year following the initial existence of one or more of the following conditions arising without the consent of the Employee:

  			(A)  a determination by the Employee, made in good faith and based on the Employee’s reasonable belief, that there has been a materially adverse change in his/her status or position as an executive officer of the Company as in effect immediately prior to the Change in Control, including, without limitation, any material change in the Employee’s status or position as a result of a diminution in the Employee’s duties or responsibilities or the assignment to the Employee of any duties or responsibilities which are inconsistent with such status or position(s), or any removal of the Employee from or any failure to reappoint or reelect the Employee to such position(s) (except in connection with the termination of the Employee’s employment 

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  for Cause, Disability or Retirement or as a result of the Employee’s death or by the Employee other than for Good Reason).  The phrase “reasonable belief” shall mean the belief that a reasonable and prudent man would have had in the same or similar circumstances as to the change in status or position;

  			(B)  a material reduction by the Company in the Employee’s annual base salary in effect immediately prior to the Change in Control;

  			(C)  the relocation of the Employee’s principal office outside of the city or metropolitan area in which the Employee is residing at the time of any Change in Control of the Company;

  			(D)  a material reduction by the Company in the budget over which the Employee retained authority immediately prior to the Change in Control;

  			(E)  the failure by the Company to provide and credit the Employee with the number of paid vacation days to which the Employee is then entitled in accordance with the Company’s normal vacation policy as in effect immediately prior to the Change in Control;

  			(F)  any other action or inaction by the Company following any Change in Control that constitutes a material breach by the Company of the agreement under which the Employee provided service at the time of the Change in Control of the Company;

  			(G)  the failure by the Company to obtain from any Successor (as hereinafter defined) the assent to this Agreement contemplated by Section 5 hereof; or

  			(H)  any purported termination by the Company of the Employee’s employment which is not effected pursuant to a Notice of Termination satisfying the requirements of Subsection (v) below (and, if applicable, 

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  Subsection (iii) above); and for purposes of this Agreement, no such purported termination shall be effective.

  Notwithstanding the above, the Employee is required to provide notice to the Company of the existence of any condition that would allow the Employee to terminate his/her employment for Good Reason within a period not to exceed ninety (90) days of the initial existence of the condition, upon the notice of which the Company shall have a period of no more than thirty (30) days to remedy the condition and during which period the Employee may not terminate his/her employment for Good Reason.  It is the intent of the parties that this provision regarding termination by the Employee of his/her employment for Good Reason comply with the requirements of Treasury Regulation Section 1.409A‐1(n)(2) and this Agreement shall be construed accordingly.  

  		(v)  Notice of Termination.  Any purported termination of the Employee’s employment by the Company or by the Employee following a Change in Control of the Company shall be communicated by written Notice of Termination to the other party hereto in accordance with Section 9 hereof.  For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and, if the termination provision is claimed to relieve the Company of its obligation to pay the benefits provided by this Agreement, the notice shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for the denial of the payment of the benefits provided by this Agreement.

  		(vi)  Date of Termination.  “Date of Termination” following a Change in Control shall mean (A) if the Employee’s employment is to be terminated for Disability, thirty (30) days after Notice of Termination is given (provided that the Employee shall not have returned to the performance of his/her duties on a full-time basis during such thirty (30) day period), (B) if the Employee’s employment is to be terminated by the Company for Cause or by the Employee for Good Reason, 

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  the date specified in the Notice of Termination, or (C) if the Employee’s employment is to be terminated by the Company for any reason other than Cause, the date specified in the Notice of Termination, which in no event shall be a date earlier than sixty (60) days after the date on which a Notice of Termination is given, unless an earlier date has been expressly agreed to by the Employee in writing.

  	4.  Compensation Upon Termination; Other Agreements.

  		(i) If the Employee’s employment shall be terminated for Disability following a Change in Control of the Company, the Company shall pay the Employee’s salary through the Date of Termination at the rate in effect just prior to the time a Notice of Termination is given plus any benefits or awards (including both the cash and stock components) under any Company Benefit Plans which pursuant to the terms of any Company Benefit Plans have been earned or become payable, but which have not yet been paid to the Employee.  Thereafter, benefits shall be determined in accordance with the Company Benefit Plans then in effect.

  		(ii) If the Employee’s employment shall be terminated for Cause following a Change in Control of the Company, the Company shall pay the Employee’s salary through the Date of Termination at the rate in effect just prior to the time a Notice of Termination is given plus any benefits or awards (including both the cash and stock components) under any Company Benefit Plans which pursuant to the terms of any Company Benefit Plans have been earned or become payable, but which have not yet been paid to the Employee.  Thereupon the Company shall have no further obligations to the Employee under this Agreement.

  		(iii) Subject to Section 7 hereof, if, within twenty-four (24) months following a Change in Control of the Company, employment by the Company shall be terminated by the Company other than for Cause, death, Disability or Retirement, or shall be terminated by the Employee for Good Reason, then the Company shall pay or provide to the Employee, no later than the 15th day of the third month 

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  following the Employee’s Date of Termination, without regard to any contrary provisions of any Company Benefit Plan, the following:

  			(A)  two hundred percent (200%) of the Employee’s annual base salary payable by the Company immediately preceding the Date of Termination; 

  			(B)  the targeted amount of the Employee’s bonus prorated through the Date of Termination; and

  			(C)  a lump sum payment of Employee’s accrued but unused paid time off.

  		(iv) It is the intent of the parties that this Agreement not be subject to the provisions of Section 409A of the Internal Revenue Code of 1986, as amended from time to time (the “Code”).  As such, this Agreement has been drafted to avoid the requirements imposed by Section 409A of the Code.  Provided however, in the event this Agreement or any distribution under this Agreement is later determined to be subject to the provisions of Section 409A of the Code, then if an employee is a Key Employee, pursuant to Section 409A(a)(2)(B)(i) of the Code, such distributions to such Key Employee upon termination of employment shall not commence earlier than six (6) months following the Date of Termination.  A “Key Employee” is defined in Section 416(i) of the Code and includes officers of a publicly traded company who have annual compensation greater than $200,000 (as adjusted following 2022 from year to year for inflation by the Secretary of the Treasury), five percent owners of a publicly traded company, and one percent owners who have annual compensation from a publicly traded company greater than $150,000.  The Company makes no representation that any or all of the payments or benefits described in this Agreement will be exempt from or comply with Section 409A of the Code and makes no undertaking to preclude Section 409A of the Code from applying to any such payment or benefit.  The Employee shall be 

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  solely responsible for the payment of any taxes and penalties incurred under Section 409A of the Code.

  		(v) The amount of any payment provided for in this Section 4 shall not be reduced, offset or subject to recovery by the Company by reason of any compensation earned by the Employee as the result of employment by another employer after the Date of Termination, or otherwise.

  	5.	Successors; Binding Agreement.

  		(i) The Company will seek, by written request at least five (5) business days prior to the time a Person becomes a Successor (as hereinafter defined), to have such Person assent to the fulfillment of the Company’s obligations under this Agreement.  Failure of such Person to furnish such assent prior to the time such Person becomes a Successor shall constitute a condition for termination by the Employee of his/her employment for Good Reason under the provisions of Section 3(iv) of this Agreement, if a Change in Control of the Company occurs or has occurred.  For purposes of this Agreement, “Successor” shall mean any Person that succeeds to, or has the practical ability to control (either immediately or with the passage of time), the Company’s business directly, by merger, consolidation or purchase of assets, or indirectly, by purchase of the Company’s voting securities or otherwise.

  		(ii) This Agreement shall inure to the benefit of and be enforceable by the Employee’s personal or legal representatives, executors, administrators, heirs, distributees, and legatees.  If the Employee should die while any amount would still be payable to him/her hereunder if the Employee had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to the Employee’s legatee or other designee or, if there is no such designee, to the Employee’s estate.

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  		(iii) For purposes of this Agreement, the “Company” shall include any corporation or other entity which is the surviving or continuing entity in respect of any merger, consolidation or form of business combination in which the Company ceases to exist.

  	6.	Fees and Expenses.  The Company shall reimburse the Employee for all reasonable legal fees and related expenses, if any, incurred by the Employee in the successful enforcement of any right or benefit provided by this Agreement.

  	7.	Taxes.  

  		(i)  All payments to be made to the Employee under this Agreement will be subject to required withholding of federal, state and local income and employment taxes.

  		(ii)  

   

  		(A)  Notwithstanding any other provision of this Agreement or any other plan, arrangement or agreement to the contrary, if any of the payments or benefits provided or to be provided by the Company or a corporation which is a member of an “affiliated group” (as defined in Section 1504(a) of the Code without regard to Section 1504(b) of the Code) of which the Company is a member, to the Employee or for the Employee’s benefit pursuant to the terms of this Agreement or otherwise (the “Covered Payments”) would constitute a “parachute payment” (as defined in Section 280G(b)(2) of the Code), and would, but for this Section 7(ii) be subject to excise tax imposed under Section 4999 of the Code (or any successor provision thereto) or any similar tax imposed by state or local law or any interest or penalties with respect to such taxes (collectively, the “Excise Tax”), then prior to making the Covered Payments, a calculation shall be made comparing (i) the Net Benefit (as defined below) to the Employee of the Covered Payments after payment of the Excise Tax to (ii) the Net Benefit to the Employee if the Covered Payments are limited to 

  -11-

  

  the extent necessary to avoid being subject to the Excise Tax.  Only if the amount calculated under (i) above is less than the amount under (ii) above will the Covered Payments be reduced to the minimum extent necessary to ensure that no portion of the Covered Payments is subject to the Excise Tax (that amount, the “Reduced Amount”). “Net Benefit” shall mean the present value of the Covered Payments net of all federal, state, local, foreign income, employment and excise taxes.

  		(B)  The Covered Payments shall be reduced in a manner that maximizes the Employee’s economic position. In applying this principle, the reduction shall be made in a manner consistent with the requirements of Section 409A of the Code, and where two economically equivalent amounts are subject to reduction but payable at different times, such amounts shall be reduced on a pro rata basis but not below zero.

  		(C)  Any determination required under this Section 7(ii) shall be made in writing in good faith by an independent accounting firm selected by the Company that is reasonably acceptable to the Employee (the “Accountants”), which shall provide detailed supporting calculations to the Company and the Employee as requested by the Company or the Employee. The Company and the Employee shall provide the Accountants with such information and documents as the Accountants may reasonably request in order to make a determination under this Section 7(ii). For purposes of making the calculations and determinations required by this Section 7(ii), the Accountants may rely on reasonable, good faith assumptions and approximations concerning the application of Section 280G and Section 4999 of the Code. The Accountants’ determinations shall be final and binding on the Company and the Employee.   The Company shall be responsible for all fees and 

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  expenses incurred by the Accountants in connection with the calculations required by this Section 7(ii).

  	8.	Survival.  The respective obligations of, and benefits afforded to, the Company and the Employee as provided in Sections 4, 5, 6, 7, 8, 11, 12 and 15 of this Agreement shall survive termination of this Agreement.

  	9.	Notice.  For purposes of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or when mailed by United States registered mail, return receipt requested, postage prepaid to the address set forth below:

   

  	Employee Address:	______________________________

  						______________________________

  						______________________________

   

   

  	Company Address:	400 Pine Street

  						Abilene, Texas 79601

  provided that all notices to the Company shall be directed to the attention of an executive officer of the Company other than Employee, with a copy to the Secretary of the Company, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt.

  	10.  Employment with Subsidiaries.  Employment with the Company for purposes of this Agreement includes employment with any corporation in which the Company has a direct or indirect ownership interest of fifty percent (50%) or more of the total combined voting power of all classes of stock in such corporation.

  	11.  Confidential Information.  The Employee shall hold in a fiduciary capacity for the benefit of the Company all secret or confidential information, knowledge or data relating to the Company or any of its affiliated companies, and their respective businesses, which shall have been obtained by the Employee during the Employee’s employment by the Company or any of its affiliated companies and which shall not be or become public knowledge (other than by acts by 

  -13-

  

  the Employee or his/her representatives in violation of this Agreement).  After termination of the Employee’s employment with the Company, the Employee shall not, without the prior written consent of the Company, communicate or divulge any such information, knowledge or data to anyone other than the Company and those designated by it.  In no event shall an asserted violation of the provisions of this Section 11 constitute a basis for deferring or withholding any amounts otherwise payable to the Employee under this Agreement.

  	12.  Miscellaneous; Governing Law.  No provision of this Agreement may be amended, waived or discharged following a Change in Control of the Company unless such amendment, waiver or discharge is agreed to in writing and signed by all of the parties affected thereby.  No waiver by either party at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed to be a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.  No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Texas.

  	13.  Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

  	14.  Headings.  The headings of Sections of this Agreement are included solely for convenience of reference and shall not control the meaning or interpretation of any of the provisions of this Agreement.

  	15.  Arbitration.  At the election of the Employee, any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be determined by final and binding arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules and Mediation Procedures then in effect.  Judgment may be entered on the arbitrators’ award in any court having jurisdiction.  Notwithstanding the above, the Employee shall 

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  be entitled to seek specific performance of his/her right to be paid until the Date of Termination during the pendency of any dispute or controversy arising under or in connection with this Agreement.

  	16.  Counterparts and Signatures.  This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.  Signatures delivered by facsimile or other electronic means shall be treated as originals.

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

   

  FIRST FINANCIAL BANKSHARES,

  INC.

   

   

  By:________________________________

  Name:______________________________

  Title:_______________________________

   

  				“Company”

   

   

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  ACCEPTED AND AGREED TO

  THIS ______ DAY OF

  __________________, 2022.

   

   

  By:________________________________

  Name:_____________________________

   

  				“Employee”

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