Document:

Exhibit 10.1

 

AMENDMENT NUMBER ELEVEN

TO

TEXAS REGIONAL BANCSHARES, INC.

AMENDED AND RESTATED EMPLOYEE STOCK OWNERSHIP PLAN

(WITH 401(K) PROVISIONS)

 

Texas
Regional Bancshares, Inc., a corporation organized and operating under the laws
of the State of Texas, and registered as a bank holding company under the Bank
Holding Company Act of 1956, as amended (the “Company”), together with the
Trustees of the Texas Regional Bancshares, Inc. Amended and Restated Employee
Stock Ownership Plan (with 401(k) Provisions) adopt the following amendments to
the Plan effective as of January 1, 2002.

 

WHEREAS,
the Company has established and maintains the Texas Regional
Bancshares, Inc. Amended and Restated Employee Stock Ownership Plan (with
401(k) Provisions) (the “Plan”), which was most recently restated effective
December 31, 2001; and

 

WHEREAS,
the Company desires to amend the Plan in compliance with final Labor
Regulations under ERISA concerning reasonable claims procedures for employee
benefit plans effective January 1, 2002; and

 

WHEREAS,
the Directors hereby designate the Board of Directors of the Company as the
Plan’s “Disability Appeal Fiduciary” described in revised Plan
Section 3.9.

 

NOW THEREFORE, IT IS HEREBY AGREED THAT the Plan is hereby amended
effective as of January 1, 2002, as follows:

 

1.                                      Plan Section 3.8, CLAIMS PROCEDURE, is amended and
restated in its entirety to read as follows:

 

3.8                               CLAIMS PROCEDURE

 

(a)          Method of Making Claim.  Claims for
benefits under the Plan may be filed with the Administrator on forms supplied
by the Employer.  An authorized
representative of a claimant may act on behalf of a claimant, provided that the
representative is appointed in a writing that is signed by the claimant and
supplied to the Administrator.  The term
“claimant,” when used in this procedure and in the claims review procedure
below, shall include a duly appointed representative.

 

(b)         Time and Manner of Giving Notice of Adverse Benefit
Determination.  If a claim is wholly or partially denied,
the Administrator shall notify the claimant of the adverse benefit
determination no later than 90 (45 days in the case of a disability benefit
determination) days after the claim was received by the Plan.  This period begins when a claim is received
by the Plan, whether or not the claim contains all information necessary to
make a benefit determination.  (In the
case of a disability benefit determination, however, if a period is extended as
described immediately below due to a claimant’s failure to submit information
necessary to decide a claim, the period for making the benefit determination
shall be tolled from the date on which the notification of the extension is
sent to the claimant until the date on which the claimant responds to the
request for additional information.)

 

If the
Administrator determines that special circumstances require more time to
process a claim, this period may be extended up to a maximum of 90 additional
days.  If such an extension is required,
the Administrator shall give written notice no later than 90 days after the
claim was received by the Plan.  The
written notice shall describe the special circumstances requiring the extension
and the expected date by which the benefit determination will be made.

 

In the
case of a disability benefit determination, however, the foregoing paragraph
shall not apply, and the following rules shall apply:  This period may be extended by an additional 30 days if the
Administrator both determines that such an extension is necessary due to
matters beyond the Plan’s control and notifies the claimant before the end of
the 45-day period of the circumstances requiring the extension and the date by
which the Plan expects to render a decision. 
This period may be extended by an additional 30 days if, during

 

1

 

the
first 30-day extension period, the Administrator both determines that a
decision cannot be rendered within that extension period due to matters beyond
the Plan’s control and notifies the claimant before the end of the first 30-day
period of the circumstances requiring the extension and the date by which the
Plan expects to render a decision.  In
the case of any initial or additional 30-day extension, the notice of extension
shall specifically explain the standards on which entitlement to a benefit is
based, the unresolved issues that prevent a decision on the claim, and the
additional information needed to resolve the issues.  In addition, the claimant shall be given at least 45 days to
provide the specified information.

 

In its
consideration of the claim, the Administrator shall consult the documents and
instruments constituting the Plan and all other documents that may have a
bearing on its interpretation, including past interpretations or claims of the
same general type.  The Administrator
shall also, where appropriate, consult Internal Revenue Service, Department of
Labor, or other governmental or private publications or authorities which may
assist the Administrator to interpret Plan language or administrative
procedures.

 

Notice
of adverse benefit determination described in this section shall be given
in writing.

 

(c)          Content of Notice of Adverse Benefit Determination. 
Notice of an adverse benefit determination described in this
section must set forth in a manner calculated to be understood by the
claimant:

 

(i)                                     the specific reason(s) for the adverse
determination;

 

(ii)                                  specific Plan provisions upon which the
determination is based;

 

(iii)                               a description and explanation of any
additional material or information needed for the claimant to perfect the
claim;

 

(iv)                              a description of the Plan’s review
procedures and applicable time limits;

 

(v)                                 a statement of the claimant’s right to
bring a civil action under Section 502(a) of ERISA following an adverse
benefit determination on review; and

 

(vi)                              solely in the case of a disability
benefit determination, if any internal rule, guideline, protocol, or other
similar criterion was relied upon in making the adverse determination, either:

 

(A)                              a copy of such internal rule, guideline,
protocol, or other similar criterion; or

 

(B)                                a statement that such internal rule,
guideline, protocol, or other similar criterion was relied upon and that a copy
is available to the claimant at no charge upon request.

 

2.                                      Plan Section 3.9, CLAIMS REVIEW PROCEDURE, is amended
and restated in its entirety to read as follows:

 

3.9                               CLAIMS REVIEW PROCEDURE

 

(a)          Request for Review.  If the
Administrator makes an adverse benefit decision as described above, a claimant
may request that the Administrator review the claim and the adverse benefit
determination.  The claimant must make
this request no later than 60 (180 for disability benefit determinations) days
after receiving the written notice provided for above.  This period begins when a request for review
is filed in accordance with the Plan’s reasonable procedures, whether or not
the request for review contains all information necessary to make a benefit
determination.

 

A
claimant may submit written comments, documents, records, or other information
relating to the claim for consideration in the review.  The review shall take into account all such
information submitted by the claimant, regardless of whether it was submitted
or considered in the initial benefit determination.  For disability benefit determinations, on review, no deference
shall be given to the initial adverse benefit determination.  The review shall be conducted by the Plan’s
Disability Appeal Fiduciary.  If, in
connection

 

2

 

with
the adverse disability benefit determination, the Plan obtained on its behalf
the advice of any medical or vocational experts, such expert(s) shall be
identified, whether or not their advice was relied upon in making the adverse
benefit determination.  If the adverse
disability benefit decision was based in whole or part on a medical judgment,
in conducting the review the Disability Appeal Fiduciary shall consult with a
health care professional with appropriate training and experience in the field
of medicine involved in the medical judgment. 
This health care professional shall not be a person or a subordinate of
a person who was consulted in connection with the adverse benefit
determination.

 

Upon
request, the claimant shall have reasonable access to and free copies of all
documents, records, and other information that is relevant to the claim.  A document, record or other information
shall be considered to be relevant to a claim if it:

 

(i)                                     was relied upon, submitted, considered or
generated in the course of making the benefit determination; or

 

(ii)                                  demonstrates compliance with the
administrative processes and safeguards required in the making of the benefit
determination; or

 

(iii)                               in the case of a disability benefit
determination, constitutes a statement of policy or guidance with respect to
the Plan concerning the benefit denied for the claimant’s diagnosis, whether or
not such advice or statement was relied upon in making the benefit
determination.

 

The
Administrator shall notify the claimant of the determination on review not
later than 60 (45 for disability benefit determinations) days after the receipt
of the claimant’s request for review. 
If the Administrator determines that special circumstances require more
time to process the review of a claim, this period may be extended up to a
maximum of 60 (45 for disability benefit determinations) additional days.  If such an extension is required, the
Administrator shall give written notice no later than 60 (45 for disability
benefit determinations) days after the receipt of the request for review.  The written notice shall describe the
special circumstances requiring the extension and the expected date by which
the review determination will be made.  If
the Administrator extends the review period due to a claimant’s failure to submit
information necessary to decide a claim, the deadline by which the
Administrator must make its determination on review shall be suspended from the
date on which it notifies the claimant of the extension until the date the
claimant responds to the request for additional information.

 

(b)         Notice of Decision on Review. 
The Administrator shall notify a claimant in writing of the benefit
determination on review.  If the benefit
determination is adverse, the notification shall set forth in a manner calculated
to be understood by the claimant:

 

(i)                                     the specific reason(s) for the adverse
determination;

 

(ii)                                  specific Plan provisions upon which the
determination is based;

 

(iii)                               a statement that the claimant is entitled
to receive, upon request and free of charge, reasonable access to and copies of
all documents, records, and other information relevant (as defined above) to
the claim for benefits;

 

(iv)                              a statement describing any voluntary
appeal procedures offered by the Plan;

 

(v)                                 a statement of the claimant’s right to
bring a civil action under Section 502(a) of ERISA; and

 

(vi)                              for disability benefit determinations, if
any internal rule, guideline, protocol, or other similar criterion was relied
upon in making the adverse determination, either:

 

(A)                              a copy of such internal rule, guideline,
protocol, or other similar criterion; or

 

3

 

(B)                                a statement that such internal rule,
guideline, protocol, or other similar criterion was relied upon and that a copy
is available to the claimant at no charge upon request; and

 

(vii)                           the following statement: “You and your
plan may have other voluntary alternative dispute resolution options, such as
mediation.  One way to find out what may
be available is to contact your local U.S. Department of Labor Office and your
State insurance regulatory agency.”

 

This
claims procedure is designed so as not to contain any provision that unduly
inhibits or hampers the initiation or processing of claims for benefits, nor
shall it be administered in such a manner. 
Specifically, no fee shall be charged as a prerequisite to making a
claim or appealing an adverse benefit decision.  Furthermore, in the case of disability benefit determinations,
there is no requirement that a claimant must file more than two appeals of an
adverse benefit determination prior to bringing a civil action under
Section 502(a) of ERISA, nor is there any requirement that adverse benefit
determinations must be submitted to binding arbitration.

 

IN
WITNESS WHEREOF, this Amendment Number Eleven to the Texas Regional Bancshares,
Inc. Amended and Restated Employee Stock Ownership Plan (with 401(k)
Provisions) has been executed this 11th day of May, 2004 to be
effective as of the dates provided above.

 

	
   

  	
  Texas Regional
  Bancshares, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ G.E. Roney

  
	
   

  	
   

  	
  Glen E. Roney,

  
	
   

  	
   

  	
  Chairman of the Board and

  
	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  
	
   

  
	
  AGREED TO AND ACCEPTED BY:

  
	
   

  
	
   

  
	
  /s/ G. E. Roney

  	
   

  
	
  Glen E. Roney, Trustee

  
	
   

  
	
   

  
	
  /s/ Morris Atlas

  	
   

  
	
  Morris Atlas, Trustee

  
	
   

  
	
   

  
	
  /s/ Frank N. Boggus

  	
   

  
	
  Frank N. Boggus, Trustee

  
				

 

4Exhibit
10.2

AMENDMENT NUMBER TWELVE

TO

TEXAS REGIONAL BANCSHARES, INC.

AMENDED AND RESTATED EMPLOYEE STOCK OWNERSHIP PLAN

(WITH 401(K) PROVISIONS)

 

Texas
Regional Bancshares, Inc., a corporation organized and operating under the laws
of the State of Texas, and registered as a bank holding company under the Bank
Holding Company Act of 1956, as amended (the “Company”), together with the
Trustees of the Texas Regional Bancshares, Inc. Amended and Restated Employee
Stock Ownership Plan (with 401(k) Provisions) adopt the following amendments to
the Plan effective as of January 1, 2002.

 

WHEREAS,
the Company has established and maintains the Texas Regional
Bancshares, Inc. Amended and Restated Employee Stock Ownership Plan (with
401(k) Provisions) (the “Plan”); and

 

WHEREAS, numerous qualification requirements imposed
on to the Plan under the Internal Revenue Code were amended by the Economic
Growth and Tax Relief Reconciliation Act of 2001; and

 

WHEREAS, the Internal Revenue Service issued sample
“good faith” plan language in Notice 2001-57 and announced in Notice 2001-42
that plans which had adopted “good faith” EGTRRA language by the end of the
plan’s 2002 plan year are protected with respect to EGTRRA language
requirements until the end of the plan’s 2005 plan year; and

 

WHEREAS, the Company has determined that the “good
faith” EGTRRA language previously incorporated into the Plan in Amendment
Number One to the Plan (as restated effective December 31, 2001) does not
address all EGTRRA requirements which affect the Plan and wishes to expand such
language in order to protect the Plan’s qualified status; and

 

WHEREAS, the Bank has also submitted proposed
corrected EGTRRA “good faith” language to the Internal Revenue Service under
the plan document correction provisions of Revenue Procedure 2003-44 along with
a request for a Compliance Statement and has received such a Compliance
Statement dated April 26, 2004; and

 

WHEREAS, under the terms of the Compliance Statement,
the approved language must be adopted no later than 150 days after
April 26, 2004; and

 

WHEREAS, the Company has determined that it is
appropriate for this purposes to amend and restate Amendment Number One to the
Plan as Amendment Number Twelve to the Plan, but effective retroactively as of
the EGTRRA effective date.

 

NOW THEREFORE, IT IS
HEREBY AGREED THAT the Plan is amended effective as of January 1, 2002, as
follows:

 

PREAMBLE

 

1.               Adoption and Effective Date of Amendment. 
This amendment to the Amended and Restated Texas Regional Bancshares,
Inc. Employee Stock Ownership Plan (With 401(k) Provisions) (the “Plan”) is
adopted to reflect certain provisions of the Economic Growth and Tax Relief
Reconciliation Act of 2001 (“EGTRRA”). 
This amendment is intended as a good faith compliance with the requirements
of EGTRRA and is to be construed in accordance with EGTRRA and guidance issued
thereunder.  Except as otherwise
provided, this amendment shall be effective as of the first day of the first
plan year beginning after December 31, 2001.

 

2.               Supersession of Inconsistent Provisions. 
This amendment shall supersede the provisions of the Plan to the extent
those provisions are inconsistent with the provisions of this amendment.

 

SECTION 1.0  LIMITATIONS ON CONTRIBUTIONS

 

1.1         Effective Date.  This
section shall be effective for limitation years beginning after
December 31, 2001.

 

1.2         Maximum Annual Addition.  Except to the
extent permitted under Section 7.0 of this Amendment and
section 414(v) of the Code, if applicable, the annual addition that may be
contributed or allocated to a Participant’s accounts under the Plan for any
limitation year shall not exceed the lesser of:

 

1

 

(a)          $40,000, as adjusted for increases in the
cost-of-living under section 415(d) of the Code, or

 

(b)         100 percent of the Participant’s compensation, within
the meaning of section 415(c)(3) of the Code, for the limitation year.

 

The compensation limit referred to in (b) shall not
apply to any contribution for medical benefits after separation from service
(within the meaning of section 401(h) or section 419A(f)(2) of the
Code) which is otherwise treated as an annual addition.

 

SECTION 2.0  INCREASE IN COMPENSATION LIMIT

 

The annual compensation of each Participant taken into
account in determining allocations for any Plan Year beginning after
December 31, 2001 shall not exceed $200,000, as adjusted for
cost-of-living increases in accordance with section 401(a)(17)(B) of the
Code.

 

Annual compensation means compensation during the Plan Year or such
other consecutive 12-month period over which compensation is otherwise
determined under the Plan (the determination period).  The cost-of-living adjustment in effect for a
calendar year applies to annual compensation for the determination period that
begins with or within such calendar year.

 

SECTION 3.0  MODIFICATION OF TOP-HEAVY RULES

 

3.1         Effective Date.  This
section shall apply for purposes of determining whether the plan is a
top-heavy plan under section 416(g) of the Code for Plan Years beginning
after December 31, 2001, and whether the Plan satisfies the minimum
benefits requirements of section 416(c) of the Code for such years.  This section amends Section 11.2,
and related sections, of the Plan.

 

3.2         Determination of Top-Heavy Status.

 

3.2.1                        Key Employee.  Key Employee
means any Employee or former Employee (including any deceased Employee) who at
any time during the Plan Year that includes the Determination Date was an
officer of the Employer having annual compensation greater than $130,000 (as
adjusted under section 416(i)(1) of the Code for Plan Years beginning
after December 31, 2002), a 5-percent owner of the Employer, or a
1-percent owner of the Employer having annual compensation of more than
$150,000.   For this purpose, annual
compensation means compensation within the meaning of section 415(c)(3) of
the Code.  The determination of who is a
Key Employee will be made in accordance with section 416(i)(1) of the Code
and the applicable Regulations and other guidance of general applicability issued
thereunder.

 

3.2.2                        Determination of Present Values and Amounts. 
This section 3.2 shall apply for purposes of determining the
present values of accrued benefits and the amounts of account balances of
Employees as of the Determination Date.

 

3.2.3.                     Distributions during Year Ending on the Determination
Date.  The present values of accrued benefits and
the amounts of account balances of an Employee as of the Determination Date
shall be increased by the distributions made with respect to the Employee under
the Plan and any plan aggregated with the Plan under section 416(g)(2) of
the Code during the 1-year period ending on the Determination Date.  The preceding sentence shall also apply to
distributions under a terminated plan which, had it not been terminated, would
have been aggregated with the Plan under section 416(g)(2)(A)(i) of the
Code.  In the case of a distribution made
for a reason other than separation from service, death, or disability, this
provision shall be applied by substituting “5-year period” for “1-year period.”

 

3.2.4                        Employees not Performing Services during Year Ending
on the Determination Date.  The accrued benefits and
accounts of any individual who has not performed services for the Employer
during the 1-year period ending on the Determination Date shall not be taken
into account.

 

3.3         Minimum Benefits.

 

3.3.1.                     Matching Contributions.  Employer
Optional Matching Contributions shall be taken into account for purposes of
satisfying the minimum contribution requirements of section 416(c)(2) of
the Code and the Plan.  The preceding
sentence shall apply with respect to matching contributions under the Plan or,
if the Plan provides that the minimum contribution requirement shall be met in
another plan, such other plan.  Employer
Optional Matching Contributions that are used to satisfy the minimum
contribution requirements shall be treated as matching contributions for
purposes of the actual contribution percentage test and other requirements of
section 401(m) of the Code.

 

2

 

SECTION 4.0  DIRECT ROLLOVERS OF PLAN
DISTRIBUTIONS

 

4.1         Effective Date.  This
section shall apply to distributions made after December 31, 2001.

 

4.2         Modification of Definition of Eligible Retirement Plan. 
For purposes of the direct rollover provisions in Section 9.13 of
the Plan, an Eligible Retirement Plan shall also mean an annuity contract
described in section 403(b) of the Code and an eligible plan under
section 457(b) of the Code which is maintained by a state, political subdivision
of a state, or any agency or instrumentality of a state or political
subdivision of a state and which agrees to separately account for amounts
transferred into such plan from this Plan. 
The definition of eligible retirement plan shall also apply in the case
of a distribution to a surviving spouse, or to a spouse or former spouse who is
the alternate payee under a qualified domestic relation order, as defined in
section 414(p) of the Code.

 

4.3         Modification of Definition of Eligible Rollover Distribution
to Exclude Hardship Distributions.  For purposes
of the direct rollover provisions in Section 9.13 of the Plan, any amount
that is distributed on account of hardship shall not be an eligible rollover
distribution and the distributee may not elect to have any portion of such a
distribution paid directly to an Eligible Retirement Plan.

 

4.4         Modification of Definition of Eligible Rollover
Distribution to Include After-Tax Employee Contributions. For purposes of the direct rollover
provisions in Section 9.13 of the Plan, a portion of a distribution shall
not fail to be an eligible rollover distribution merely because the portion
consists of after-tax employee contributions which are not includible in gross
income. However, such portion may be transferred only to an individual
retirement account or annuity described in section 408(a) or (b) of the
Code, or to a qualified defined contribution plan described in
section 401(a) or 403(a) of the Code that agrees to separately account for
amounts so transferred, including separately accounting for the portion of such
distribution which is includible in gross income and the portion of such
distribution which is not so includible.

 

SECTION 5.0  ROLLOVERS DISREGARDED IN
INVOLUNTARY CASH-OUTS

 

5.1         Applicability and Effective Date. 
This section shall apply effective for Plan Years commencing after
December 31, 2001.

 

5.2         Rollovers Disregarded in Determining Value of Account
Balance for Involuntary Distributions.  For purposes
of Section 8.6(b) of the Plan, the value of a Participant’s nonforfeitable
account balance shall be determined without regard to that portion of the
account balance that is attributable to rollover contributions (and earnings
allocable thereto) within the meaning of sections 402(c), 403(a)(4), 403(b)(8),
408(d)(3)(A)(ii), and 457(e)(16) of the Code. 
If the value of the Participant’s nonforfeitable account balance as so
determined is $5,000 or less, the Plan shall immediately distribute the
Participant’s entire nonforfeitable account balance.

 

SECTION 6.0  ELECTIVE DEFERRALS –
CONTRIBUTION LIMITATION

 

No Participant shall be permitted to have elective
deferrals made under this Plan, or any other qualified plan maintained by the
Employer during any taxable year, in excess of the dollar limitation contained
in section 402(g) of the Code in effect for such taxable year, except to
the extent permitted under Section 7.0 of this Amendment and
section 414(v) of the Code, if applicable.

 

SECTION 7.0  CATCH-UP CONTRIBUTIONS

 

All Employees who are eligible to make elective
deferrals under this Plan and who have attained age 50 before the close of the
Plan Year shall be eligible to make catch-up contributions in accordance with,
and subject to the limitations of, section 414(v) of the Code. Such
catch-up contributions shall not be taken into account for purposes of the
provisions of the Plan implementing the required limitations of sections 402(g)
and 415 of the Code.  The Plan shall not
be treated as failing to satisfy the provisions of the Plan implementing the requirements
of sections 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416 of the Code, as
applicable, by reason of the making of such catch-up contributions.

 

SECTION 8.0  SUSPENSION PERIOD FOLLOWING
HARDSHIP DISTRIBUTION

 

A Participant who receives a distribution of elective
deferrals after December 31, 2001, on account of hardship shall be
prohibited from making elective deferrals and employee contributions under this
and all other plans of the Employer for 6 months after receipt of the
distribution.  A Participant who receives
a distribution of elective deferrals in calendar year 2001 on account of
hardship shall be prohibited from making elective deferrals and employee
contributions under this and all other plans

 

3

 

of the employer for the
period specified in the provisions of the plan relating to suspension of
elective deferrals that were in effect prior to this amendment.

 

SECTION 9.0  DISTRIBUTION UPON SEVERANCE FROM EMPLOYMENT

 

9.1         Effective Date. This section shall apply for distributions and
severances from employment occurring after December 31, 2001.

 

9.2         New Distributable Event.  A
Participant’s elective deferrals, qualified nonelective contributions,
qualified matching contributions, and earnings attributable to these
contributions shall be distributed on account of the Participant’s severance
from employment.  However, such a
distribution shall be subject to the other provisions of the Plan regarding
distributions, other than provisions that require a separation from service
before such amounts may be distributed.

 

SECTION 10.0                    REPEAL OF
MULTIPLE USE TEST

 

The multiple use test described in Treasury Regulation
section 1.401(m)-2 and Sections 5.5(a)(2) and 5.7(a)(2) of the Plan shall
not apply for Plan Years beginning after December 31, 2001.

 

SECTION 11.0                    S CORPORATION
NONALLOCATON PROVISIONS

 

11.1   No Prohibited Allocations.  Effective
for Plan Years beginning after December 31, 2001 in which the Company is
an S Corporation, no “EGTRRA Prohibited Allocation” may be made directly or
indirectly in an “EGTRRA Nonallocation Year” to an EGTRRA Disqualified Person
(as defined in paragraph (e)) under this Plan or any other plan maintained by
the Employer and meeting the requirements of Code Section 401(a).

 

11.2   EGTRRA Nonallocation Year.           For
purposes of this Section, “EGTRRA Nonallocation Year” means any Plan Year if,
at any time during such Plan Year, the Company is an S Corporation and EGTRRA
Disqualified Persons own at least 50% of the number of shares of stock in the S
Corporation.  The attribution and
ordering rules of Code Section 409(p)(3) shall apply for purposes of
determining share ownership under this Subsection.

 

11.3   EGTRRA Prohibited Allocation.                       For purposes of this Section, an “EGTRRA Prohibited
Allocation” occurs when any portion of the assets of the Plan attributable to
(or allocable in lieu of) Company Stock accrues (or is allocated directly or
indirectly under any other qualified plan of the Employer) during an EGTRRA
Nonallocation Year for the benefit of an EGTRRA Disqualified Person.

 

11.4   First Nonallocation Year.            “First
Nonallocation Year” shall mean, for purposes of this Section, an EGTRRA
Nonallocation Year that is described in Code Sections 4979A(a)(3) and
(e)(2)(C).  A First Nonallocation Year
may occur regardless of whether there is an EGTRRA Prohibited Allocation during
such Plan Year.

 

11.5   EGTRRA Disqualified Person.         “EGTRRA
Disqualified Person” means, effective for Plan Years beginning after
December 31, 2004, and solely for purposes of this Section in years,
if any, when the Company is an S Corporation, a person described in Code
Section 409(p)(4).

 

IN WITNESS
WHEREOF, this Amendment Number Twelve to the Texas Regional Bancshares, Inc.
Amended and Restated Employee Stock Ownership Plan (with 401(k) Provisions) has
been executed this 11th day of May, 2004 to be effective as of the
dates provided above.

 

	
   

  	
  Texas Regional Bancshares, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ G. E. Roney

  
	
   

  	
   

  	
  Glen E. Roney,

  
	
   

  	
   

  	
  Chairman of the Board
  and

  
	
   

  	
   

  	
  Chief Executive Officer

  

 

4

 

	
  AGREED TO AND ACCEPTED
  BY:

  
	
   

  
	
   

  
	
  /s/ G. E. Roney

  	
   

  
	
  Glen E. Roney, Trustee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /a/ Morris Atlas

  	
   

  
	
  Morris Atlas, Trustee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Frank N. Boggus

  	
   

  
	
  Frank N. Boggus,
  Trustee

  	
   

  

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}]]