Document:

EX-10.22

 Exhibit 10.22 

THE GREENBRIER COMPANIES, INC. 

2014 AMENDED AND RESTATED STOCK INCENTIVE PLAN 

RESTRICTED STOCK UNIT AWARD AGREEMENT 

Pursuant to Article 10 of the 2014 Amended and Restated Stock Incentive Plan (the “Plan”) of The Greenbrier Companies, Inc.,
an Oregon corporation (the “Company”), on                         , 2017 (the “Grant
Date”) the Compensation Committee of the Board of Directors of the Company (the “Committee”) authorized and granted to
                             (the “Recipient”) an award of restricted stock units
(“RSUs”) with respect to the Company’s common stock (“Common Stock”), subject to the terms and conditions of this agreement between the Company and the Recipient (this “Agreement”). By
accepting this award, the Recipient agrees to all of the terms and conditions of this Agreement. Capitalized terms not otherwise defined in this Agreement shall have the meanings as defined in the Plan. 

1.    Award and Terms of Restricted Stock Units. 

(a)    Number of RSUs Awarded. The Company awards to the Recipient
                             RSUs (the “Award”), subject to (i) the
restrictions, terms and conditions set forth in this Agreement and the Plan and (ii) the Recipient’s execution and delivery of an Employee Confidentiality and Innovation Assignment Agreement in the form provided by the Company. 

(b)    Rights under Restricted Stock Units. An RSU obligates the Company to issue to the Recipient one share
of Common Stock for each vested RSU upon vesting in accordance with this Agreement; provided that if the Recipient is a participant in the Nonqualified Deferred Compensation Plan, the Recipient may elect to defer receipt of the shares otherwise
issuable upon vesting, pursuant to the terms of the Deferred Compensation Plan.
 2.    Vesting and Forfeiture of RSUs. 

(a)    The RSUs awarded under this Agreement shall initially be 100% unvested and subject to forfeiture. One-half of the RSUs, covering              shares of Common Stock, will vest in equal installments over a period of three years (the
“Time-Based RSUs”) and one-half of the RSUs, covering              shares of Common Stock, will vest, in whole or in part, on
the Vesting Date based upon achievement of performance criteria during the Measurement Period, as described in subsection 2(c) (the “Performance-Based RSUs”). To the extent that any
partial vesting would result in the issuance of fractional shares, such shares shall be rounded up to the nearest whole number of shares. 

(b)    Vesting of Time-Based RSUs. The Time-Based RSUs shall vest in equal annual installments over a period of
three years, on the first, second and third anniversaries of the Grant Date, provided the Recipient remains in Service with the Company, subject to subsections 2(b)(i) and (ii), below: 

(i)    Termination of Service Due to Death, Disability or Retirement. If the Recipient’s
Service terminates due to death, Disability or Retirement, any unvested 
  

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Time-Based RSUs shall immediately become fully vested. If Recipient is or becomes eligible for Retirement prior to the date any Time-Based RSUs would
otherwise vest, the Time-Based RSUs will no longer be subject to a substantial risk of forfeiture for tax purposes, and will be deemed a “deferral of compensation” as defined under Internal Revenue Code §409A
(“§409A”). 
 (ii)    Change of Control. In the event of a Change of
Control, acceleration of vesting of Time-Based Shares shall be governed by the terms of the individual agreement between the Company and the Recipient, if any. 

(c)    Vesting of Performance-Based RSUs. Within 90 days of the end of the Measurement Period, the Committee shall
determine the extent to which the Performance-Based RSUs have vested based upon achievement of the performance goals set forth in this subsection 2(c). Up to 80% of the Performance-Based RSUs shall vest based upon achievement of Adjusted EBITDA
goals (the “Adjusted EBITDA Performance RSUs”), and up to 20% of the Performance-Based RSUs shall vest based upon achievement of Return on Equity (“ROE”) goals (the “ROE Performance RSUs”), during
the Measurement Period, as set forth in subsections 2(c)(i) and (ii), below: 
 (i)    Adjusted EBITDA
Performance RSUs. 
 (1)    100% of the Adjusted EBITDA Performance RSUs (80% of the total number of
Performance-Based RSUs) will vest on the Vesting Date if the Company’s Adjusted EBITDA equals the Adjusted EBITDA Target Level. 

(2)    50% of the Adjusted EBITDA Performance RSUs (40% of the total number of Performance-Based RSUs) will
vest on the Vesting Date if the Company’s Adjusted EBITDA equals the Adjusted EBITDA Threshold Level. 

(3)    If the Company’s Adjusted EBITDA is greater than the Threshold Level but less than the Target
Level, vesting of the Adjusted EBITDA Performance RSUs will be interpolated between 50% and 100%. 

(4)    If the Company’s Adjusted EBITDA is less than the Threshold Level, none of the Adjusted EBITDA
Performance RSUs will vest. 
 (ii)    ROE Performance RSUs. 

(1)    100% of the ROE Performance RSUs (20% of the total number of Performance-Based RSUs) will vest on
the Vesting Date if the Company achieves its ROE Target Level. 
 (2)    50% of the ROE Performance RSUs
(10% of the total number of Performance-Based RSUs) will vest on the Vesting Date if the Company achieves its ROE Threshold Level. 
  

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 (3)    If the Company’s ROE performance is greater than
the Threshold Level but less than the Target Level, vesting of the ROE Performance RSUs will be interpolated between 50% and 100%. 

(4)    If the Company’s ROE performance is less than the Threshold Level, no ROE Performance RSUs will
vest. 
 (iii)    Termination of Service due to Death or Disability. If the Recipient’s
Service terminates prior to the end of the Measurement Period due to death or Disability, any unvested Performance-Based RSUs shall immediately become fully vested. 

(iv)    Retirement. If the Recipient’s Service terminates prior to the end of the Measurement
Period due to Retirement, the Recipient’s Performance-Based RSUs will continue to vest based on performance during the Measurement Period. Upon vesting of the Performance-Based RSUs, Recipient will be entitled to receive a prorated number of
shares, equal to the number of vested RSUs (if any), multiplied by a fraction, the numerator of which is the number of full and partial months in the Measurement Period during which Recipient remained in Service with the Company and the denominator
of which is 30. 
 (v)    Change of Control. In the event of a Change of Control prior to the end
of the Measurement Period, Performance-Based RSUs shall be governed by the following: 

(1)    Conversion of Performance-Based RSUs into Time-Vested RSUs. As of the effective date of the
Change of Control, all Performance-Based RSUs shall automatically convert into and become time-vested RSUs (the “Converted RSUs”), which shall vest in full on August 31, 2019, provided the Recipient remains employed by the
Company through that date. 
 (2)    Award of Additional Shares for Performance Above Target Levels.
The Committee shall evaluate the Company’s financial performance from March 1, 2017 until the date immediately preceding the effective date of the Change of Control, and shall determine whether the Company was performing above the
target level of performance on its Adjusted EBITDA and/or ROE goals as of such date. If the Committee determines that the Company was performing above the target level on either or both of its Adjusted EBITDA and/or ROE goals as of the date of the
Change of Control, the Committee shall determine the number of additional shares above 100% of the number of Performance-Based RSUs awarded (the “Stretch Shares”) that the Participant would have been entitled to receive pursuant to
subsection 2(d)(i) and/or (ii) if the Company had performed during the entire Measurement Period at the level achieved through the date of the Change of Control. The Recipient shall be entitled to receive a grant of additional shares equal to
the number of Stretch Shares. The Stretch Shares shall be time-vested shares and shall vest in full on August 31, 2019, provided the Recipient remains employed by the Company. 

 
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 (d)    Issuance of Additional Shares upon Achievement in Excess of Target
Goals. Subject to a determination by the Committee that the Company has achieved greater than its Adjusted EBITDA Target Level and/or ROE Target Level during the Measurement Period, the RSUs will be settled for a number of shares in excess of
100% of the number of Performance RSUs awarded pursuant to this Agreement, as described in subsections 2(d)(i) and (ii) below: 

(i)    If the Company achieves its Adjusted EBITDA Stretch Level during the Measurement Period, the
Adjusted EBITDA Performance RSUs will be settled for 200% of the number of shares underlying the Adjusted EBITDA Performance RSUs. If the Company’s Adjusted EBITDA during the Measurement Period exceeds the Adjusted EBITDA Target Level but is
below the Adjusted EBITDA Stretch Level, the number of shares for which the Adjusted EBITDA Performance RSUs will be settled will be interpolated between 100% and 200% of the number of shares underlying the Adjusted EBITDA Performance RSUs at the
Target level, based on the level of Adjusted EBITDA performance achieved. 
 (ii)    If the Company
achieves its ROE Stretch Level during the Measurement Period, the ROE Performance RSUs will be settled for 200% of the number of shares underlying the ROE Performance RSUs. If the Company’s ROE during the Measurement Period exceeds the ROE
Target Level but is below the ROE Stretch Level, the number of shares for which the ROE Performance RSUs will be settled will be interpolated between 100% and 200% of the number of shares underlying the ROE Performance RSUs at the Target level,
based on the level of ROE performance achieved. 
 (e)    Forfeiture of RSUs on Termination of Service. Except as
expressly provided in this Agreement, or except to the extent that there exists a separate individual agreement between the Recipient and the Company, the terms of which provide otherwise, if the Recipient ceases to be an employee of the Company or
any Parent or Subsidiary for any reason, the Recipient shall immediately forfeit all outstanding but unvested RSUs awarded pursuant to this Agreement and the Recipient shall have no right to receive the related Common Stock. 

(f)    Forfeiture of RSUs if Shares are Unavailable Under the Plan. If, on any Vesting Date, after the settlement
of all RSUs awarded in 2016 or prior years that vested on or before such Vesting Date, the number of shares of Common Stock that remain available under the Plan is insufficient to settle 100% of the RSUs awarded by the Company on the Grant Date that
vest on such Vesting Date (“Vesting 2017 RSUs”), then the remaining shares shall be allocated among the holders of Vesting 2017 RSUs in proportion to the number of Vesting 2017 RSUs held by each. Any Vesting 2017 RSUs held by the
Recipient that are not settled in shares as a result of this subsection 2(f) shall be forfeited, and the Recipient shall have no right to receive the related Common Stock. 

3.    Delivery Date for the Shares Underlying the RSUs. 

(a)    As soon as practicable following the Vesting Date for any RSUs (or, if applicable, the distribution date specified
in subsection (b), below), the Company will issue the Recipient the Common Stock underlying the then vested RSUs in the form of uncertificated shares in book entry form. The shares of Common Stock will be issued in the Recipient’s name or, in
the event 
  
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of the Recipient’s death, in the name of either (i) the beneficiary designated by the Recipient on a form supplied by the Company or (ii) if the Recipient has not designated a
beneficiary, the person or persons establishing rights of ownership by will or under the laws of descent and distribution. Notwithstanding the foregoing, if the Recipient has elected, pursuant to the Deferred Compensation Plan, to defer receipt of
any of the shares otherwise issuable upon the vesting of RSUs, then as soon as practicable after the applicable Vesting Date, the Company shall issue such shares to the Deferred Compensation Plan, in the form of uncertificated shares in book entry
form, for crediting to the Recipient’s account. 
 (b)    To the extent that any Time-Based RSUs and Dividend
Equivalents constitute a “deferral of compensation” within the meaning of Treas. Reg. §1.409A-1(b) and become payable as a result of Recipient’s termination of employment, such payment
shall be made as soon as practicable after the Recipient’s “separation from service” within the meaning of Treas. Reg. §1.409A-1(h), and in all events by the last day of the calendar year
in which the separation from service occurs or, if later, the 15th day of the third calendar month following the date of the separation from service. In no event will the Recipient designate the date of payment. The foregoing notwithstanding, in the
event that Recipient is determined to be a “specified employee” within the meaning of Treas. Reg. § 1.409A-1(i), then to the extent any payment under this Agreement payable upon a
separation from service constitutes a “deferral of compensation” within the meaning of §409A, such payment shall not be made and such benefit shall not be provided until the earlier of (A) the first business day occurring after
the date that is six months after Recipient’s separation of service as that term is defined in Treas. Reg. §1.409A-1(h), and (B) Recipient’s death. 

4.    Income and Payroll Taxes. 

(a)    Taxes and Tax Withholding. The Recipient acknowledges and agrees that no election under Section 83(b) of
the Internal Revenue Code can or will be made with respect to the RSUs. Subject to subsection 4(e), the Recipient acknowledges that, if no deferral election pursuant to the Deferred Compensation Plan has been made with respect to receipt of the
shares of Common Stock underlying the RSUs, then on each date that shares of Common Stock underlying the RSUs vest (the “Payment Date”), the Value (as defined below) of the vested shares will be treated as ordinary compensation for
federal and state income and FICA tax purposes, and that the Company will be required to withhold taxes on these income amounts. To satisfy the required minimum withholding amounts, the Company shall withhold from the shares of Common Stock
otherwise issuable the number of shares having a Value equal to the minimum statutory withholding amount. For purposes of this Section 4, the “Value” of a share shall be equal to the closing market price for the Common Stock on
the last trading day preceding the Payment Date. 
 (b)    Payment of FICA Upon Vesting of RSUs Subject to Deferral
Election. Subject to subsection 4(e), the Recipient acknowledges that FICA payroll taxes become due upon the vesting of RSUs, even if a deferral election under the Deferred Compensation Plan has been made with respect to receipt of the shares
underlying the RSUs. FICA taxes that become due upon vesting of RSUs that are subject to a deferral election may not be paid by share withholding. Recipient agrees to pay to the Company in cash or cash equivalents, on or before each Vesting Date,
the amount of FICA taxes due and owing as a result of vesting of the RSUs. 
  

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If Recipient does not make such payment timely, the Company will deduct FICA taxes from other wages payable in cash to Recipient. 

(c)    Payment of FICA on Time-Based RSUs Held by Retirement-Eligible Recipients. Subject to subsection 4(e), the
Recipient acknowledges that FICA payroll taxes become due upon Recipient being or becoming eligible for Retirement, even if Recipient does not terminate employment. FICA taxes that become due as a result of Recipient being or becoming eligible for
Retirement may not be paid by share withholding. Recipient agrees to pay to the Company in cash or cash equivalents the amount of FICA taxes due and owing. If Recipient does not make such payment timely, the Company will deduct FICA taxes from other
wages payable in cash to Recipient. 
 (d)    Payment of FICA on Dividend Equivalents. Subject to subsection
4(e), the Recipient acknowledges that FICA payroll taxes become due upon the date that a Dividend Equivalent is accrued. FICA taxes on Dividend Equivalents may not be paid by share withholding. Recipient agrees to pay to the Company in cash or cash
equivalents the amount of FICA taxes due and owing. If Recipient does not make such payment timely, the Company will deduct FICA taxes from other wages payable in cash to Recipient. 

(e)    Non-U.S. Taxation. If the Recipient is subject to the tax laws of a non-U.S. jurisdiction, payments under this Agreement will be subject to taxation and withholding in accordance with applicable law. 

5.    Other Rights and Restrictions. 

(a)    Cash Dividends and Dividend Equivalents.  

(i)    Cash Dividends on Issued Shares. The Recipient will be entitled to receive any cash dividends
declared on the Common Stock underlying the RSUs after the RSUs have vested and the Common Stock has been issued to the Recipient. Cash dividends payable on Common Stock that has been deferred under the Deferred Compensation Plan shall be credited
as earnings on and paid to the Recipient’s Deferred Compensation Plan account. 

(ii)    Dividend Equivalents.  

(1)    Accrual. Provided the Recipient is employed by the Company or a Parent or Subsidiary on the
record date for a dividend declared on Common Stock, the Company shall accrue and pay to the Recipient an amount in cash equal to the dividend that would have been paid on the Common Stock underlying the Recipient’s unvested RSUs if such Common
Stock had been issued and outstanding on the record date (each, a “Dividend Equivalent”). Dividend Equivalents shall accrue on all unvested RSUs held by the Recipient on a record date, notwithstanding the fact that RSUs are subject
to net settlement under subsection 4(a). 
 (2)    Payment or Deferral. Dividend Equivalents that
accrue on an RSU shall be paid regardless of whether the RSU vests or is forfeited, and are subject to required withholding taxes. Dividend Equivalents shall be paid as soon as practicable 

 
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after the Vesting Date for the underlying RSU and in all events by the last day of the calendar year in which the Vesting Date occurs or, if later, the 15th day of the third calendar month
following the Vesting Date. In no event will Recipient designate the date of payment. Notwithstanding the foregoing, if the Recipient’s employment is terminated for any reason prior to the Vesting Date for an RSU, Dividend Equivalents that have
accrued on the RSU through the date of termination of employment shall be paid to the Recipient in accordance with subsection (iii) below. If the Recipient has elected to defer the Common Stock underlying RSUs under the Deferred Compensation
Plan, the accrued Dividend Equivalents shall also be deferred under the Deferred Compensation Plan and shall be transferred to the Deferred Compensation Plan as soon as practicable following the Vesting Date for the underlying RSUs, regardless of
whether the RSU vests or is forfeited. No interest shall be paid by the Company on accrued Dividend Equivalents.     

(iii)    Application of Payment Timing Rules. Dividend Equivalents are “deferred
compensation” as described in subsection 2(b)(i) and shall be subject to the payment timing rules set forth in subsection 3(b). 

(b)    Adjustments. The number of shares of Common Stock issuable with respect to each RSU is subject to adjustment
as determined by the Committee as to the number and kind of shares of stock deliverable in the event of any merger, reorganization, consolidation, recapitalization, stock dividend, spin-off or other change in
the corporate structure affecting the Common Stock generally.  
 (c)    No Voting Rights. The Recipient
shall have no rights as a shareholder with respect to the RSUs or the Common Stock underlying the RSUs until the underlying Common Stock is issued to the Recipient. 

(d)    Certain Transactions. To the extent not otherwise governed by the Change of Control provisions of this
Agreement or any other individual agreement between the Company and the Recipient, in the event of dissolution of the Company or a merger, consolidation or plan of exchange affecting the Company, the Committee may, in its sole discretion and to the
extent possible under the structure of the applicable transaction, select one or a combination of the following alternatives for treating this award of RSUs: 

(i)    The RSUs shall remain in effect in accordance with the terms of this Agreement; or 

(ii)    The RSUs shall be converted into restricted stock units or restricted stock of one or more of the
corporations that are the surviving or acquiring corporations in the applicable transaction. The amount and type of converted restricted stock units or restricted stock shall be determined by the Company, taking into account the relative values of
the companies involved in the applicable transaction and the exchange rate, if any, used in determining shares of the surviving corporation(s) to be held by holders of shares of the Company following the applicable transaction. 

 
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 The foregoing notwithstanding, Time-Based RSUs that are “deferred compensation” subject to §409A
shall be treated in accordance with the requirements of §409A, including without limitation the prohibition on subsequent deferrals. 

(e)    Restrictions on Transfer. The Recipient may not sell, transfer, assign, pledge or otherwise encumber
or dispose of the RSUs subject to this Agreement. The Recipient may designate beneficiaries to receive the shares of Common Stock underlying the RSUs subject to this Agreement if the Recipient dies before delivery of the shares of Common Stock by so
indicating on a form supplied by the Company. If the Recipient fails to designate a beneficiary, such Common Stock will be delivered to the person or persons establishing rights of ownership by will or under the laws of descent and distribution.

 (f)    Not a Contract of Employment. Nothing in the Plan or this Agreement shall confer upon Recipient any
right to be continued in the employment of the Company or any Parent or Subsidiary, or to interfere in any way with the right of the Company or any Parent or Subsidiary by whom Recipient is employed to terminate Recipient’s employment at any
time or for any reason, with or without cause, or to decrease Recipient’s compensation or benefits, subject to the Recipient’s rights under any applicable individual employment agreement. 

6.    Definitions. 

Initially capitalized terms not otherwise defined herein shall have the meanings as defined in the Plan. 

(a)    “Agreement” shall mean this Restricted Stock Unit Agreement. 

(b)    “Adjusted EBITDA” shall mean the Company’s EBITDA as reported in quarterly financial
disclosures, as adjusted for Extraordinary Items by the Committee in its sole discretion. 
 (c)    “Adjusted
EBITDA Stretch Level” shall mean cumulative Adjusted EBITDA during the Measurement Period of $                 million. 

(d)    “Adjusted EBITDA Target Level” shall mean cumulative Adjusted EBITDA during the Measurement Period
of $                 million. 

(e)    “Adjusted EBITDA Threshold Level” shall mean cumulative Adjusted EBITDA during the Measurement
Period of $                 million. 

(f)    “Deferred Compensation Plan” shall mean The Greenbrier Companies, Inc. Nonqualified
Deferred Compensation Plan. 
 (g)    “Extraordinary Items” shall mean extraordinary, unusual and/or non-recurring items, including but not limited to (i) restructuring or restructuring-related charges, (ii) gains or losses on the disposition of a business or major asset, (iii) the effect of changes
in tax laws and other laws, accounting principles, or provisions affecting reported results, (iv) resolution and/or settlement of litigation and other legal proceedings, (v) extraordinary, nonrecurring items as described in Accounting
Principles Board Opinion No. 30 or in management’s discussion and analysis of financial condition and results of operations appearing in the Company’s annual 
  

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report to shareholders for the applicable year, (vi) the effect of a merger or acquisition, or (vii) foreign exchange gains and losses, provided that an adjustment for any such item(s)
would not cause the performance-based portion of this Award to fail to comply with the requirements of Section 162(m) of the Internal Revenue Code, or any successor provision thereto, and the regulations there under. 

(h)    “Measurement Period” shall mean the thirty-month period beginning March 1, 2017 and ending
August 31, 2019. 
 (i)    “Recipient” shall mean the individual named in the first paragraph of
this Agreement. 
 (j)    “Retirement” shall mean the termination of the Recipient’s Service
within the Company or its subsidiaries as an employee either (i) on or after attainment of age 65, or (ii) prior to age 65, with the permission of the Chief Executive Officer of the Company. 

(k)    “Return on Equity” or “ROE” shall mean the quarterly net earnings (loss)
attributable to the Company, as reported in quarterly financial disclosures, divided by the quarterly total equity of the Company, as determined by the Company, the results of which are averaged over the Measurement Period, and annualized. Net
earnings (loss) attributable to the Company and ROE shall be adjusted for Extraordinary Items, as determined by the Committee in its sole discretion. 

(l)    “ROE Stretch Level” shall mean ROE of
            %. 
 (m)    “ROE Target
Level” shall mean ROE of             %. 

(n)    “ROE Threshold Level” shall mean ROE of
            %. 
 (o)    “Vesting
Date” shall mean: (i) with respect to Time-Based RSUs, the date that the RSUs vest in accordance with subsection 2(b); and (ii) with respect Performance-Based RSUs, the date that the Committee makes an affirmative determination
that the vesting criteria applicable to Performance-Based RSUs, as set forth in subsection 2(c)(i) or (ii), have or have not been met. 

7.    Miscellaneous. 

(a)    Entire Agreement; Amendment. This Agreement, the Plan and the Company’s Umbrella Performance-Based Plan
for Executive Officers, to the extent applicable, constitute the entire agreement of the parties with regard to the subjects hereof. The Committee may amend the terms of this Agreement, but no such amendment shall impair the rights of the Recipient
without his or her consent. 
 (b)    Interpretation of the Plan and the Agreement. The Committee shall have the
sole authority to interpret the provisions of this Agreement and the Plan and all determinations by it shall be final and conclusive. With respect to awards made to executive officers of the Company, the Committee shall interpret and administer this
Agreement in accordance with the terms of the Company’s Umbrella Performance-Based Plan for Executive Officers, with the 
  

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intent that the Performance-Based RSUs shall qualify as “performance-based compensation” for purposes of Internal Revenue Code Section 162(m). 

(c)    Electronic Delivery. The Recipient consents to the electronic delivery of notices and any prospectus and any
other documents relating to this Award in lieu of mailing or other form of delivery. 
 (d)    Rights and
Benefits. The rights and benefits of this Agreement shall inure to the benefit of and be enforceable by the Company’s successors and assigns and, subject to the restrictions on transfer of this Agreement, be binding upon the
Recipient’s heirs, executors, administrators, successors and assigns. 
 (e)    Further Action. The parties
agree to execute such instruments and to take such action as may reasonably be necessary to carry out the intent of this Agreement. 

(f)    Governing Law. This Agreement and the Plan will be interpreted under the laws of the state of Oregon,
exclusive of choice of law rules. 
  

							
	RECIPIENT:	 		 	THE GREENBRIER COMPANIES, INC.:
				
	 	 		 	 By:
	 	 

  
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 10Exhibit

AMENDED AND RESTATED
EMPLOYMENT AGREEMENT

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) is made this 13th day of September, 2017 (the “Effective Date”), by and between Southside Bank (the “Bank”), Southside Bancshares, Inc. (the “Corporation”) and Tim Carter (the “Employee”). Throughout this Agreement, where applicable, Bank shall include the Corporation and any wholly-owned subsidiary of the Bank.  This Agreement amends and restates that certain Employment Agreement between the Bank, the Corporation and Employee, which became effective as of December 17, 2014 (the “Existing Employment Agreement”).
RECITALS
WHEREAS, the Bank currently employs Employee as its Regional President, North Texas, pursuant to the terms and conditions set forth in the Existing Employment Agreement; and
WHEREAS, during his employment with the Bank, Employee has and will continue to establish and maintain relations and contacts with the clients, employees, and suppliers of the Bank, all of which constitute valuable goodwill of Bank’s business; and
WHEREAS, during his employment with the Bank, Employee will learn and will have access to important Confidential Information and Trade Secrets (as defined herein) related to the Bank’s business; and
WHEREAS, the Bank, the Corporation and Employee have mutually agreed that Employee’s title and role at the Bank will change as of September 30, 2017, but Employee will remain employed by the Bank through the Term of this Agreement; and 
WHEREAS, the Bank, the Corporation and Employee desire to amend and restate the Existing Employment Agreement, as set forth herein.
NOW, THEREFORE, in consideration of the promises and the mutual covenants herein contained, and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties, intending to be legally bound, agree as follows:
1.Employment.  Employee is hereby employed by the Bank on the Effective Date as Regional President, North Texas, subject to the terms and subject to the conditions contained in this Agreement. Effective as of September 30, 2017, Employee shall resign from such position and shall thereafter serve as Executive Vice President. The Employee agrees to devote his best efforts to the business of the Bank, and shall perform his duties in a diligent, trustworthy, and business-like manner, all for the purpose of advancing the business of the Bank. Notwithstanding the above, the Employee shall not be required to maintain regular office hours or be physically present at the Bank on a daily or weekly basis during the Term.  The Employee may engage in other business interests or investments, including providing consulting services, which do not conflict with the interests of Bank or materially prevent the Employee from performing his contemplated services hereunder on behalf of the Bank.  Notwithstanding the foregoing, the Employee is specifically prohibited from providing any consulting services or performing services of any kind to or for the benefit of any FDIC-insured financial institution or any other financial services company.
2.    Duties.  In his capacity as Regional President, North Texas through September 30, 2017, and thereafter in his capacity as Executive Vice President, the Employee shall have such responsibilities and shall render such services as shall be reasonably assigned to him from time to time by the Chief Executive Officer of the Bank, which shall be primarily focused on customer retention and solicitation assistance.  In addition, during the Term (as defined below), Employee shall be appointed to and shall serve as a member of the Board of Directors of the Bank.
3.    Employment Term.  Unless earlier terminated herein in accordance with Section 5 hereof, the Employee’s employment with the Bank pursuant to the terms and conditions of this Agreement shall be for a period beginning on the Effective Date and ending on the December 31, 2020 (the “Term”).  Neither the Employee’s employment nor this Agreement shall continue or be renewed following the end of the Term.  In the event of the termination of Employee’s employment as a result of the end of the end of the Term, the restrictive covenants contained in Section 9 shall not apply following termination of Employee’s employment, and neither the Corporation or the Bank shall be obligated to make any severance payments or benefits to Employee under Sections 6(b)(i) or 6(b)(ii). For purposes of this Agreement, the entire period of Employee’s employment shall be referred to as the “Employment Period.”
4.    Compensation and Benefits.
(a)    Base Salary.  During the Term, the Bank agrees to pay the Employee a base salary (the “Base Salary”) as follows:  (i) for the period beginning on the Effective Date and continuing through December 31, 2017, the Base Salary shall be $475,000 per year, and (ii) for the period beginning on January 1, 2018 through the end of the Term, the Base Salary shall be $188,000, in each case payable in accordance with Bank’s normal payroll practices with such payroll deductions and withholdings as are required by law. During the term of this Agreement, it is agreed that Bank/Corporation may not reduce Employee’s base salary in any calendar year unless such reduction is part of a general reduction in compensation among employees of the same or similar category.
(b)    Savings and Retirement Plans.  During the Employment Period, Employee shall be entitled to participate in all savings and retirement plans, practices, policies and programs available to senior officers of the Bank (“Peer Officers”), and on the same basis as such Peer Officers.
(c)    Welfare Benefit Plans.  During the Employment Period, Employee and the Employee’s eligible dependents shall be eligible for participation in, and shall receive all benefits under, the welfare benefit plans, practices, policies and programs provided by the Bank or Corporation and its affiliated companies (including, without limitation, medical, prescription, dental, disability, employee life, group life, accidental death and travel accident insurance plans and programs) (“Welfare Plans”) to the extent applicable generally to Peer Officers.
(d)    Fringe Benefits.  During the Employment Period, to the extent approved by the Board of Directors, the Employee shall be entitled to fringe benefits in accordance with the plans, practices, programs and policies of the Bank or Corporation and its affiliated companies on the same basis as other Peer Officers.  Without limiting the foregoing, during the Term, the Employee shall continue to be provided with a company-owned automobile, and the Corporation or the Bank will provide auto insurance and reimburse the Employee for fuel and maintenance expenses for such automobile.  In addition, during the Term, the Bank shall reimburse the Employee for country club dues up to $700 per month.
(e)    Vacation.  During the Employment Period, the Employee will be entitled to such period of paid vacation as may be provided under any plans, practices, programs and policies of the Bank and its affiliated companies available to other Peer Officers.
(f)    Reimbursement of Expenses.  During the Employment Period, the Bank shall reimburse the Employee in accordance with Bank’s expense reimbursement policies for all reasonable, ordinary and necessary business expenses incurred by the Employee in the course of his duties conducted on behalf of the Bank. In addition, the Bank may pay the Employee’s annual dues at a local country club, and expenses related to the Employee’s use of such country club for matters related to the business of the Bank. The Bank shall also reimburse Employee’s reasonable expenses for continuing education courses necessary to maintain any certifications or licenses Employee may hold.
5.    Termination of Employment. The Employee’s employment with the Bank may be terminated at any time by either party for the reasons set forth in this Section 5.
(a)    Termination by the Employee.  Employee may terminate his employment during the Term for Good Reason or voluntarily for no reason. For the purpose of this Agreement, “Good Reason” shall mean:
(i)    Without the Employee’s express written consent, the assignment to the Employee of any duties or responsibilities inconsistent in any material respect with the Employee’s position (including status, offices, titles and reporting relationships), authority, duties or responsibilities as in effect of the Effective Date, or any other action by the Bank which results in a diminution in such position, authority, duties or responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Bank promptly after receipt of notice thereof given by the Employee;
(ii)    A reduction by the Bank or Corporation in the Employee’s Base Salary, Bank provided automobile or country club dues;
(iii)    The failure by the Bank or Corporation (a) to continue in effect any compensation plan in which the Employee participates as of the Effective Date that is material to the Employee’s total compensation, unless an equitable arrangement (embodied in an ongoing substitute or alternative plan) has been made with respect to such plan, or (b) to continue the Employee’s participation therein (or in such substitute or alternative plan) on a basis not materially less favorable, both in terms of the amount of benefits provided and the level of the Employee’s participation relative to other participants;
(iv)    Any failure of the Bank or Corporation to obtain the assumption of, or the agreement to perform, this Agreement by any successor as contemplated in Section 13(a) hereof;
(v)    The material breach by the Bank or Corporation of any other provision of this Agreement; or
(vi)    A relocation of the Employee’s principal place of employment by more than 30 miles from its location as of the Effective Date without the Employee’s consent.
A termination by Employee shall not constitute termination for Good Reason unless Employee shall first have delivered to the Bank written notice setting forth with specificity the occurrence deemed to give rise to a right to terminate for Good Reason (which notice must be given no later than 90 days after the initial occurrence of such event), and there shall have passed a reasonable time (not less than 30 days) within which the Bank may take action to correct, rescind or otherwise substantially reverse the occurrence supporting termination for Good Reason as identified by Employee. Good Reason shall not include Employee’s death or Disability or Retirement.
(b)    Termination by the Bank.  The Bank may terminate the Employee’s employment during the Term with or without Cause. For purposes of this Agreement, “Cause” shall mean:
(i)    Employee’s material failure to perform Employee’s duties with the Bank (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for performance is delivered to Employee by the Bank which specifically identifies the manner in which the Bank believes that Employee has intentionally and materially failed to perform Employee’s duties; or    
(ii)    Employee’s engaging in any illegal conduct or misconduct that is materially and demonstrably injurious to the Bank, its financial condition, or its reputation; or
(iii)    Employee’s engaging in any act or omission that constitutes, on the part of the Employee, fraud, theft, misappropriation, embezzlement, breach of fiduciary duty or dishonesty; or
(iv)    Entry of an order by any state or federal regulatory agency either removing Employee from Employee’s position with the Bank or its affiliates or prohibiting Employee from participating in the conduct of the affairs of the Bank or any of its affiliates; or
(v)    Employee’s failure to cure a material breach of any provision of this Agreement after a written demand for cure is delivered to Employee by the Bank.
Termination for Cause shall only occur after the Board, in its sole and absolute discretion, has made a full and thorough determination of Cause.
Additionally, Employee’s employment may be terminated by Bank as a result of a Change in Control, as defined in Section 7 hereof. Such a termination of employment shall be treated the same as a termination without Cause for purposes of Section 6 of this Agreement. 
(c)    Death, Retirement or Disability.  The Employee’s employment shall terminate automatically upon the death or Retirement of the Employee during the Term. For purposes of this Agreement, “Retirement” shall mean normal retirement as defined in the Bank’s or Corporation’s then-current retirement plan, or if there is no such retirement plan, “Retirement” shall mean Employee’s voluntary termination of his employment after attaining age 65. If the Bank determines in good faith that the Disability of the Employee has occurred during the Term (pursuant to the definition of Disability set forth below), it may give to the Employee written notice of its intention to terminate the Employee’s employment. In such event, the Employee’s employment with the Bank shall terminate effective on the 30th day after receipt of such written notice by the Employee (the “Disability Effective Date”), provided that, within the 30 days after such receipt, the Employee shall not have returned to full-time performance of the Employee’s duties. For purposes of this Agreement, “Disability” shall mean the inability of the Employee, as determined by the Board, to perform the essential functions of his regular duties and responsibilities, with or without reasonable accommodation, due to a medically determinable physical or mental illness which has lasted (or can reasonably be expected to last) for a period of six (6) consecutive months.
(d)    Notice of Termination.  Any termination by the Bank for Cause, or by the Employee for Good Reason, shall be communicated by Notice of Termination to the other party hereto given in accordance with Section 13(c) of this Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Employee’s employment under the provision so indicated and (iii) specifies the termination date. The failure by the Employee or the Bank to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of the Employee or the Bank, respectively, hereunder or preclude the Employee or the Bank, respectively, from asserting such fact or circumstance in enforcing the Employee’s or the Bank’s rights hereunder.
(e)    Date of Termination.  “Date of Termination” means (i) if the Employee’s employment is terminated by the Bank for Cause, or by the Employee for Good Reason, the date of termination as specified in the Notice of Termination, (ii) if the Employee’s employment is terminated by the Bank other than for Cause, the Date of Termination shall be either the date on which the Bank notifies the Employee of such termination or a date otherwise specified by the Bank, (iii) if the Employee’s employment is terminated by reason of death, Retirement or Disability, the Date of Termination shall be the date of the death or Retirement of the Employee or the Disability Effective Date, as the case may be, and (iv) if the Employee’s employment is terminated by the Employee without Good Reason, the Date of Termination shall be at least two (2) weeks from the date that the Employee notifies the Bank of his resignation (during which two (2) week period Employee may be required, in the discretion of Bank, to continue to perform services on behalf of Bank).
6.    Obligations of the Bank upon Termination.
(a)    Termination by Employee without Good Reason; Termination by Bank with Cause.  If, during the Term, the Employee terminates his employment without Good Reason or the Bank terminates Employee’s employment for Cause, Employee shall be entitled to receive his accrued but unpaid Base Salary up to and including the Date of Termination as well as all previously vested benefits. Employee shall not be entitled to receive any additional compensation or benefits from Bank.
(b)    Termination by the Bank without Cause; Termination Resulting from a Change in Control; Termination by Employee for Good Reason.  If, during the Term, the Bank terminates the Employee’s employment without Cause (excluding termination for death, Retirement or Disability) or as a result of a Change in Control (as defined in Section 7 of this Agreement), or the Employee terminates his employment for Good Reason, and provided that Employee executes and does not revoke a release in substantially the form of Exhibit A hereto (the “Release”), then the following shall occur:
(i)    the Bank shall provide to the Employee in a single lump sum cash payment within 60 days after the Date of Termination (except as otherwise specifically set forth below or as may be required by Section 13(c) hereof), the aggregate of the following amounts, to the extent not previously paid to the Employee:
a.    the Employee’s accrued but unpaid Base Salary through the Date of Termination;
b.    any accrued pay in lieu of unused vacation (in accordance with the Bank’s vacation policy);
c.    unless the Employee has a later payout date that is required in connection with the terms of a deferral plan or agreement, any vested compensation previously deferred by the Employee (together with any amount equivalent to accrued interest or earnings thereon); and
d.    a lump sum severance payment equal to the monthly salary for the remainder of the Term, provided, however, that if the Date of Termination occurs within two years after the occurrence of a Change of Control, an additional severance payment in an amount equal to one times the Employee’s Base Salary in effect as of the Date of Termination shall also be payable;
e.    a lump-sum amount equal to the product of $9,500 per month multiplied by the number of unexpired months until the end of the Term (i.e. $9,500 x number of months remaining until end of the Term = lump-sum amount); and
f.    if elected, the Bank shall directly pay the monthly premium for the Employee to obtain and maintain COBRA health care coverage for a period of eighteen (18) months after the termination date.
(ii)    all grants of stock options and other equity awards granted by the Bank or Corporation and held by the Employee as of the Date of Termination will become immediately vested and exercisable as of the Date of Termination and, to the extent necessary, this Agreement is hereby deemed an amendment of any such outstanding stock option or other equity award; and
(iii)    to the extent not theretofore paid or provided, the Bank shall timely pay or provide to the Employee any other amounts or benefits required to be paid or provided or which the Employee is eligible to receive under any plan, program, policy or practice of the Bank to the extent provided to Peer Officers prior to the Date of Termination (such other amounts and benefits shall be hereinafter referred to as the “Other Benefits”).
(c)    Death.  If the Employee’s employment is terminated by reason of Employee’s death during the Term, then this Agreement will terminate without further obligations to Employee, other than for payment to Employee’s estate or beneficiaries of (i) Employee’s accrued but unpaid Base Salary up to and including the Date of Termination, and (ii) Other Benefits. Employee’s estate or beneficiaries shall not be entitled to receive any additional compensation or benefits from Bank. With respect to the provision of Other Benefits, the term Other Benefits as used in this Section 6(c) shall include, without limitation, death and other benefits under such plans, programs, practices and policies relating to death, if any, as are applicable to Employee on the Date of Termination.
(d)    Retirement. If Employee’s employment is terminated by reason of Employee’s Retirement during the Term, this Agreement shall terminate without further obligations to Employee, other than for payment of accrued but unpaid Base Salary up to and including the Date of Termination and the timely payment or provision of Other Benefits. With respect to the provision of Other Benefits, the term Other Benefits as used in this Section 6(d) shall include, without limitation, and Employee shall be entitled after the Date of Termination to receive, retirement and other benefits under such plans, programs, practices and policies relating to retirement, if any, as are applicable to Employee on the Date of Termination.
(e)    Disability. If the Employee’s employment is terminated by reason of Employee’s Disability during the Term, then this Agreement will terminate without further obligations to Employee, other than for payment of Employee’s accrued but unpaid Base Salary up to and including the Date of Termination as well as Other Benefits. Employee shall not be entitled to receive any additional compensation or benefits from Bank. With respect to the provision of Other Benefits, the term Other Benefits as used in this Section 6(e) shall include, without limitation, and Employee shall be entitled after the Date of Termination to receive, disability and other benefits under such plans, programs, practices and policies relating to disability, if any, as are applicable to Employee on the Date of Termination.
(f)    Expiration of Employment Period. If the Employee’s employment shall be terminated due to the expiration of the Term as provided for in Section 3, this Agreement shall terminate without further obligations to the Employee, other than for payment of Employee’s accrued but unpaid Base Salary up to and including the Date of Termination and the timely payment or provision of Other Benefits. Employee shall not be entitled to receive any additional compensation or benefits from Bank.
(g)    Internal Revenue Code Section 280G.
(i)    Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment or distribution by the Bank to or for the benefit of the Employee (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise) (a “Payment” would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then, prior to the making of any Payment to the Employee, a calculation shall be made comparing (i) the net benefit to the Employee of the Payment after payment of the Excise Tax, to (ii) the net benefit to the Employee if the Payment had been limited to the extent necessary to avoid being subject to the Excise Tax. If the amount calculated under (i) above is less than the amount calculated under (ii) above, then the Payment shall be limited to the extent necessary to avoid being subject to the Excise Tax (the “Reduced Amount”). In that event, the Employee shall direct which Payments are to be modified or reduced.
(ii)    Unless otherwise agreed upon by the Bank and the Employee, all determinations required to be made under this Section 6(e), including the assumptions to be used in arriving at such determination, shall be made by an independent accounting firm mutually acceptable to the Bank and the Employee (the “Accounting Firm”) which shall provide detailed supporting calculations both to the Bank and the Employee within 15 business days of the receipt of notice from the Employee that there has been a Payment, or such earlier time as is requested by the Bank. All fees and expenses of the Accounting Firm shall be borne solely by the Bank. Any determination by the Accounting Firm shall be binding upon the Bank and the Employee
(h)    Limitation of Benefits.  Notwithstanding any other provision of this Agreement, nothing shall obligate the Bank to make any payment to the Employee that is prohibited by the provisions of 12 U.S.C. § 1828(k) or the implementing regulations of the FDIC; provided, however, the Bank shall exercise commercially reasonable efforts to obtain the approval of the Board of Governors of the Federal Reserve System, and the concurrence of the FDIC, to make the payments provided herein (or, to the extent that they will not approve payment in full, such lesser portion as shall be acceptable to them).
7.    Change in Control. For purposes of this Agreement, “Change in Control” shall mean the occurrence of any one of the following: a Change in the Actual Control, as described in Section 7(i), a Change in Effective Control, as described in Section 7(ii), or a Change in the Ownership of Assets, as described in Section 7(iii).
(a)    Change in Actual Control shall mean the acquisition by any one person, or more than one person acting as a group (as defined in subsection (iv), below) of ownership of stock of the Corporation or Bank that, together with stock held by such person or group, constitutes more than 50 percent of the total fair market value or total voting power of the stock of the Corporation or Bank. However, if any one person, or more than one person acting as a group, is considered to own more than 50 percent of the total fair market value or total voting power of the stock of the Corporation or Bank, the acquisition of additional stock by the same person or persons is not considered to cause a change in the ownership of the Corporation or Bank (or to cause a change in the effective control of the Corporation or Bank (within the meaning of Section 7(a)(ii). An increase in the percentage of stock owned by any one person, or persons acting as a group, as a result of a transaction in which the Corporation or Bank acquires its stock in exchange for property will be treated as an acquisition of stock for purposes of this section.
(b)    Change in Effective Control shall mean: (A) The acquisition by any one person, or more than one person acting as a group (as defined in Section (iv), below), during any 12-month period of stock of the Corporation or Bank possessing 35 percent or more of the total voting power of the stock of the Corporation or Bank; or (B) The replacement, of a majority of members of the Corporation’s or Bank’s board of directors during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Corporation’s or Bank’s board of directors prior to the date of election in accordance with Treasury Regulation § 1.409A-1(g)(5)(iv)(A)(2). Notwithstanding the foregoing, if any one person, or more than one person acting as a group, is considered to effectively control the Corporation or Bank (within the meaning of this subsection (ii)), the acquisition of additional control of the Corporation or Bank by the same person or persons is not considered to cause a Change in Control.
(c)    Change in the Ownership of the Corporation’s or Bank’s Assets shall mean the acquisition by any one person, or more than one person acting as a group (as defined in subsection (iv), below), during any 12-month period of assets from the Corporation or Bank that have a total gross fair market value equal to or more than 40 percent of the total gross fair market value of all of the assets of the Corporation or Bank immediately prior to such acquisition or acquisitions. Notwithstanding the foregoing, there is no change in control event under this section when there is a transfer to an entity that is controlled by the shareholders of the Corporation or Bank immediately after the transfer.
(d)    Persons acting as a group. For purposes of this Section 7, persons will not be considered to be acting as a group solely because they purchase or own stock of the same corporation at the same time, or as a result of the same public offering. However, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the corporation. If a person, including an entity, owns stock in both corporations that enter into a merger, consolidation, purchase or acquisition of stock, or similar transaction, such shareholder is considered to be acting as a group with other shareholders in a corporation prior to the transaction giving rise to the change and not with respect to the ownership interest in the other corporation.
8.    Delivery of Documents upon Termination.  The Employee shall deliver to the Bank or its designee at the termination of the Employee’s employment, or at any time as requested by the Bank, all correspondence, memoranda, notes, records, drawings, sketches, plans, customer lists, product compositions, and other documents and all copies thereof, made, composed or received by the Employee, solely or jointly with others, that are in the Employee’s possession, custody, or control at termination and that are related in any manner to the past, present, or anticipated business or any member of the Bank. The Employee will not make, distribute, or retain copies of any such information or property. To the extent that Employee has electronic files or information in his/her possession or control that belong to the Bank or contain Confidential Information (specifically including but not limited to electronic files or information stored on personal computers, mobile devices, electronic media, or in cloud storage), on or prior to the termination, or at any other time the Bank requests, Employee shall (a) provide the Bank with an electronic copy of all of such files or information (in an electronic format that readily accessible by the Bank); (b) after doing so, delete all such files and information, including all copies and derivatives thereof, from all non-Bank-owned computers, mobile devices, electronic media, cloud storage, or other media, devices, or equipment, such that such files and information are permanently deleted and irretrievable; and (c) if requested by Bank, provide a written certification to the Bank that the required deletions have been completed and specifying the files and information deleted and the media source from which they were deleted.
9.    Restrictions on Conduct.
(a)    General.  Employee and the Bank understand and agree that the purpose of the provisions of this Section 9 is to protect the legitimate business interests of the Bank, as more fully described below, and is not intended to eliminate Employee’s post-employment competition with the Bank per se, nor is it intended to impair or infringe upon Employee’s right to work, earn a living, or acquire and possess property from the fruits of his labor. Employee hereby acknowledges that Employee has received good and valuable consideration for the post-employment restrictions set forth in this Section 9 in the form of his employment and the compensation and benefits provided for herein. Employee hereby further acknowledges that the post-employment restrictions set forth in this Section 9 are reasonable and that they do not, and will not, unduly impair his ability to earn a living after the termination of this Agreement.
In addition, the parties acknowledge: (A) that Employee’s services under this Agreement require special expertise and talent in the provision of Competitive Services (as defined herein) and that Employee will have substantial contacts with customers, suppliers, advertisers, vendors and employees of the Bank; (B) that pursuant to this Agreement, Employee will be placed in a position of trust and responsibility and he will have access to a substantial amount of Confidential Information and Trade Secrets (as defined herein) and that the Bank is placing him in such position and giving him access to such information in reliance upon his agreement not to compete with the Bank during the Restricted Period (as defined herein); (C) that due to his management duties, Employee will be the repository of a substantial portion of the goodwill of the Bank and would have an unfair advantage in competing with the Bank for business from its customers; (D) that due to Employee’s special experience and talent, the loss of Employee’s services to the Bank under this Agreement cannot reasonably or adequately be compensated solely by damages in an action at law; (E) that Employee is capable of competing with the Bank; and (F) that Employee is capable of obtaining gainful, lucrative and desirable employment that does not violate the restrictions contained in this Agreement.
Therefore, subject to the limitations of reasonableness imposed by law, Employee shall be subject to the restrictions set forth in this Section 9.
(b)    Definitions.
“Competitive Services” means the provision of services on behalf of any person or entity principally engaged in the community banking or commercial banking business, including, without limitation, originating, underwriting, closing and selling loans, receiving deposits, providing fiduciary services, and otherwise engaging in the business of banking.
“Confidential Information” means all information regarding the Bank, its activities, business or clients that is the subject of reasonable efforts by the Bank to maintain its confidentiality and that is not generally disclosed by practice or authority to persons not employed by the Bank, but that does not rise to the level of a Trade Secret. “Confidential Information” shall include, but is not limited to, financial plans and data concerning the Bank; management planning information; business plans; operational methods; market studies; marketing plans or strategies; product development techniques or plans; customer lists; details of customer contracts; current and anticipated customer requirements; past, current and planned research and development; business acquisition plans; and new personnel acquisition plans. “Confidential Information” shall not include information that has become generally available to the public by the act of one who has the right to disclose such information without violating any right or privilege of the Bank. This definition shall not limit any definition of “confidential information” or any equivalent term under state or federal law.
“Person” means any individual or any corporation, partnership, joint venture, limited liability company, association or other entity or enterprise.
“Principal or Representative” means a principal, owner, partner, shareholder, joint venturer, investor, member, trustee, director, officer, manager, employee, agent, representative or consultant.
“Protected Customers” means any Person to whom the Bank sold its products or services during the Employment Period.
“Protected Employees” means employees of the Bank who were employed by the Bank at any time during the Employment Period.
“Restricted Period” means the Employment Period and a period extending one (1) year from the termination of Employee’s employment with the Bank for any reason whatsoever.
“Restricted Territory” means any county in the State of Texas in which the Bank or any of its subsidiaries maintains an office as of the date of termination of Employee’s employment with the Bank, and any other area or location where the Employee has provided services to the Bank during the Employment Period.
“Restrictive Covenants” means the restrictive covenants contained in Section 9(c) hereof.
“Trade Secret” means all information, without regard to form, including, but not limited to, technical or nontechnical data, a formula, a pattern, a compilation, a program, a device, a method, a technique, a drawing, a process, financial data, financial plans, product plans, distribution lists or a list of actual or potential customers, advertisers or suppliers which is not commonly known by or available to the public and which information: (A) derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and (B) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. Without limiting the foregoing, Trade Secret means any item of confidential information that constitutes a “trade secret(s)” under applicable common law or statutory law.
(c)    Restrictive Covenants.
(i)    Covenant Not to Compete.  In consideration of the compensation and benefits being paid and to be paid by the Bank to Employee hereunder, Employee hereby agrees that, during the Restricted Period, Employee will not, without prior written consent of the Bank, directly or indirectly, engage in or otherwise provide Competitive Services within the Restricted Territory on his own behalf or as a Principal or Representative of any other Person; provided, however, that the provisions of this Agreement shall not be deemed to prohibit the ownership by Employee of not more than five percent (5%) of any class of securities of any corporation having a class of securities registered pursuant to the Securities Exchange Act of 1934, as amended.
(ii)    Restriction on Disclosure and Use of Confidential Information and Trade Secrets.  Employee understands and agrees that the Confidential Information and Trade Secrets constitute valuable assets of the Bank and may not be converted to Employee’s own use. Accordingly, Employee hereby agrees that Employee shall not, directly or indirectly, at any time during the Restricted Period, reveal, divulge, or disclose to any Person not expressly authorized by the Bank any Confidential Information, and Employee shall not, directly or indirectly, at any time during the Restricted Period, use or make use of any Confidential Information in connection with any business activity other than that of the Bank. Throughout the term of this Agreement and at all times after the date that this Agreement terminates for any reason, Employee shall not directly or indirectly transmit or disclose any Trade Secret of the Bank to any Person, and shall not make use of any such Trade Secret, directly or indirectly, for himself or for others, without the prior written consent of the Bank. The parties acknowledge and agree that this Agreement is not intended to, and does not, alter either the Bank’s rights or Employee’s obligations under any applicable state or federal statutory or common law regarding trade secrets and unfair trade practices.
Anything herein to the contrary notwithstanding, Employee shall not be restricted from disclosing or using Confidential Information that is required to be disclosed by law, court order or other legal process; provided, however, that in the event disclosure is required by law, Employee shall provide the Bank with prompt notice of such requirement so that the Bank may seek an appropriate protective order prior to any such required disclosure by Employee.
(iii)    Nonsolicitation of Protected Employees.  Employee understands and agrees that the relationship between the Bank and each of its Protected Employees constitutes a valuable asset of the Bank and may not be converted to Employee’s own use. Accordingly, Employee hereby agrees that during the Restricted Period, Employee shall not directly or indirectly, on Employee’s own behalf or as a Principal or Representative of any Person, solicit or induce any Protected Employee to terminate his or her employment relationship with the Bank or to enter into employment with any other Person.
(iv)    Restriction on Relationships with Protected Customers.  Employee understands and agrees that the relationship between the Bank and each of its Protected Customers constitutes a valuable asset of the Bank and may not be converted to Employee’s own use. Accordingly, Employee hereby agrees that, during the Restricted Period, Employee shall not, without the prior written consent of the Bank, directly or indirectly, on Employee’s own behalf or as a Principal or Representative of any Person, solicit, divert, take away or attempt to solicit, divert or take away a Protected Customer; provided, however, that the prohibition of this covenant shall apply only to Protected Customers with whom Employee had Material Contact on the Bank’s behalf during the Employment Period. For purposes of this Agreement, Employee had “Material Contact” with a Protected Customer if (a) he had business dealings with the Protected Customer on the Bank’s behalf; (b) he was responsible for supervising or coordinating the dealings between the Bank and the Protected Customer; or (c) he obtained Trade Secrets and/or Confidential Information about the customer as a result of his association with the Bank.
(d)    Enforcement of Restrictive Covenants.
(i)    Rights and Remedies Upon Breach. In the event Employee breaches, or threatens to commit a breach of, any of the provisions of the Restrictive Covenants, the Bank shall have the following rights and remedies, which shall be independent of any others and severally enforceable, and shall be in addition to, and not in lieu of, any other rights and remedies available to the Bank at law or in equity:
(1)    the right and remedy to enjoin, preliminarily and permanently and without the necessity of posting bond, Employee from violating or threatening to violate the Restrictive Covenants and to have the Restrictive Covenants specifically enforced by any court of competent jurisdiction, it being agreed that any breach or threatened breach of the Restrictive Covenants would cause irreparable injury to the Bank and that money damages would not provide an adequate remedy to the Bank;
(2)    the right and remedy to require Employee to account for and pay over to the Bank all compensation, profits, monies, accruals, increments or other benefits derived or received by Employee as the result of any transactions constituting a breach of the Restrictive Covenants; and
(3)    the right and remedy to require Employee to pay the reasonable attorneys’ fees incurred by Bank in enforcing the Restrictive Covenants.
(ii)    Severability of Covenants.  Employee acknowledges and agrees that the Restrictive Covenants are reasonable and valid in time and scope and in all other respects. The covenants set forth in this Agreement shall be considered and construed as separate and independent covenants. Should any part or provision of any covenant be held invalid, void or unenforceable in any court of competent jurisdiction, such invalidity, voidness or unenforceability shall not render invalid, void or unenforceable any other part or provision of this Agreement.
(iii)    Reformation.  The parties hereunder agree that it is their intention that the Restrictive Covenants be enforced in accordance with their terms to the maximum extent possible under applicable law. If any portion of the foregoing provisions is found to be invalid or unenforceable by a court of competent jurisdiction, the invalid or unreasonable term shall be redefined, or a new enforceable term provided, such that the intent of the Bank and Employee in agreeing to the provisions of this Agreement will not be impaired and the provision in question shall be enforceable to the fullest extent of applicable law.
10.    Publicity and Advertising.  The Employee agrees that the Bank may use the Employee’s name, picture, or likeness for any advertising, publicity, or other business purpose at any time, during the term of the Agreement by the Bank and may continue to use materials generated during the term of the Agreement for a period of 6 months thereafter. The Employee shall receive no additional consideration if the Employee’s name, picture or likeness is so used. The Employee further agrees that any negatives, prints or other material for printing or reproduction purposes prepared in connection with the use of the Employee’s name, picture or likeness by the Bank shall be and are the sole property of the Bank.
11.    Dispute Resolution.  Subject to the Bank’s right to seek injunctive relief in court as provided in Section 9 of this Agreement, any dispute, controversy or claim arising out of or in relation to or connection to this Agreement, including without limitation any dispute as to the construction, validity, interpretation, enforceability or breach of this Agreement, including a claim for indemnification under Section 12, shall be resolved by impartial binding arbitration. Such arbitration shall be the exclusive, final and binding forum for the ultimate resolution of such claims, subject to any rights of appeal that either party may have under the Federal Arbitration Act and/or under applicable state law dealing with the review of arbitration decisions.
(a)    Arbitration.  Arbitration shall be heard and determined by one arbitrator, who shall be impartial and who shall be appointed by the American Arbitration Association (“AAA”).
(b)    Demand for Arbitration.  A demand for arbitration must be served within twelve months of the events giving rise to the dispute. Any claim that is not timely made will be deemed waived.
(c)    Proceedings.  Unless otherwise expressly agreed in writing by the parties to the arbitration proceedings:
(i)    The arbitration proceedings shall be held in Tyler, TX;
(ii)    The arbitrator shall be and remain at all times wholly independent and impartial;
(iii)    The arbitration proceedings shall be conducted in accordance with the Employment Arbitration Rules of the AAA, as amended from time to time;
(iv)    The arbitration hearing shall commence within ninety (90) days after the arbitrator had been appointed;
(v)    The costs of the arbitration proceedings (including attorneys’ fees and costs) shall be borne in the manner determined by the arbitrator;
(vi)    The arbitrator may grant any remedy or relief that would have been available to the parties had the matter been heard in court;
(vii)    The decision of the arbitrator shall be reduced to writing; final and binding without the right of appeal; the sole and exclusive remedy regarding any claims, counterclaims, issues or accounting presented to the arbitrator; made and promptly paid in United States dollars free of any deduction or offset; and any costs or fees incident to enforcing the award shall to the maximum extent permitted by law, be charged against the party resisting such enforcement;
(viii)    The award shall include interest from the date of any breach or violation of this Agreement, as determined by the arbitral award, and from the date of the award until paid in full, at 6% per annum; and
(ix)    Judgment upon the award may be entered in any court having jurisdiction over the person or the assets of the party owing the judgment or application may be made to such court for a judicial acceptance of the award and an order of enforcement, as the case may be.
(d)    Acknowledgement of Parties.  The Bank and Employee understand and acknowledge that this Agreement means that neither can pursue an action against the other in a court of law regarding any employment dispute, except for claims involving workers’ compensation benefits or unemployment benefits, and except as set forth elsewhere in this Agreement, in the event that either party notifies the other of its demand for arbitration under this Agreement. The Bank and Employee understand and agree that this Section 11, concerning arbitration, shall not include any controversies or claims related to any agreements or provisions (including provisions in this Agreement) respecting confidentiality, proprietary information, non-competition, non-solicitation, trade secrets, or breaches of fiduciary obligations by the Employee, which shall not be subject to arbitration.
(e)    Consultation.  Employee has been advised of the Employee’s right to consult with an attorney prior to entering into this Agreement.
12.    Indemnification.  Bank shall indemnify and hold Employee harmless against any legal judgments or awards rendered against Bank or Employee in his capacity as an officer, director or employee of Bank. Bank likewise shall pay for all reasonable legal fees and expenses incurred by Employee in connection with any legal action brought against the Bank or Employee in his capacity as an officer, director or employee of Bank, provided, however, that indemnification shall not be provided for willful or intentional acts committed by Employee in violation of the law.
13.    Code Section 409A.
(a)    General.  This Agreement shall be interpreted and administered in a manner so that any amount payable hereunder shall be paid or provided in a manner that is either exempt from or compliant with the requirements of Section 409A of the Code and applicable Internal Revenue Service guidance and Treasury Regulations issued thereunder (and any applicable transition relief under Section 409A of the Code). Nevertheless, the tax treatment of the benefits provided under the Agreement is not warranted or guaranteed. Neither the Bank nor its directors, officers, employees or advisers shall be held liable for any taxes, interest, penalties or other monetary amounts owed by Employee as a result of the application of Section 409A of the Code.
(b)    Definitional Restrictions.  Notwithstanding anything in this Agreement to the contrary, to the extent that any amount or benefit that would constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code (“Non-Exempt Deferred Compensation”) would otherwise be payable or distributable hereunder, or a different form of payment of such Non-Exempt Deferred Compensation would be effected, by reason of a Change in Control, Employee’s Disability or termination of employment, such Non-Exempt Deferred Compensation will not be payable or distributable to Employee, and/or such different form of payment will not be effected, by reason of such circumstance unless the circumstances giving rise to such Change in Control, Disability or termination of employment, as the case may be, meet any description or definition of a “Change in Control event”, “disability” or “separation from service,” as the case may be, in Section 409A of the Code and applicable regulations (without giving effect to any elective provisions that may be available under such definition). This provision does not affect the dollar amount or prohibit the vesting of any Non-Exempt Deferred Compensation upon a Change in Control, Disability or termination of employment, however defined. If this provision prevents the payment or distribution of any Non-Exempt Deferred Compensation, or the application of a different form of payment, such payment or distribution shall be made at the time and in the form that would have applied absent the non-409A-conforming event.
(c)    Six-Month Delay in Certain Circumstances.  Notwithstanding anything in this Agreement to the contrary, if any amount or benefit that would constitute Non-Exempt Deferred Compensation would otherwise be payable or distributable under this Agreement by reason of Employee ‘s separation from service during a period in which he is a Specified Employee (as defined below), then, subject to any permissible acceleration of payment by the Bank under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment of employment taxes):
(i)    the amount of such Non-Exempt Deferred Compensation that would otherwise be payable during the six-month period immediately following Employee’s separation from service will be accumulated through and paid or provided on the first day of the seventh month following Employee’s separation from service (or, if Employee dies during such period, within 30 days after Employee’s death) (in either case, the “Required Delay Period”); and
(ii)    the normal payment or distribution schedule for any remaining payments or distributions will resume at the end of the Required Delay Period.
For purposes of this Agreement, the term “Specified Employee” has the meaning given such term in Code Section 409A and the final regulations thereunder.
(d)    Timing of Release of Claims.  Whenever in this Agreement a payment or benefit is conditioned on Employee’s execution of a release of claims, such release must be executed and all revocation periods shall have expired within 60 days after the Date of Termination; failing which such payment or benefit shall be forfeited. If such payment or benefit constitutes Non-Exempt Deferred Compensation, and if such 60-day period begins in one calendar year and ends in the next calendar year, the payment or benefit shall not be made or commence before the second such calendar year, even if the release becomes irrevocable in the first such calendar year. In other words, Employee is not permitted to influence the calendar year of payment based on the timing of his signing of the release.
(e)    Timing of Reimbursements and In-kind Benefits.  If Employee is entitled to be paid or reimbursed for any taxable expenses under this Agreement, and such payments or reimbursements are includible in Employee’s federal gross taxable income, the amount of such expenses reimbursable in any one calendar year shall not affect the amount reimbursable in any other calendar year, and the reimbursement of an eligible expense must be made no later than December 31 of the year after the year in which the expense was incurred. Employee’s rights to payment or reimbursement of expenses under this Agreement shall not be subject to liquidation or exchange for another benefit.
14.    Miscellaneous Provisions.
(a)    Successors of the Bank.  The Bank will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Bank, by agreement in form and substance satisfactory to the Employee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Bank would be required to perform it if no such succession had taken place. Failure of the Bank to obtain such agreement prior to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle the Employee to compensation from the Bank in the same amount and on the same terms as the Employee would be entitled hereunder if the Employee terminated his employment for Good Reason, except that for purposes of implementing the foregoing, the date on which any such succession becomes effective shall be deemed the Date of Termination. As used in this Agreement, “Bank” as hereinbefore defined shall include any successor to its business and/or assets as aforesaid which executes and delivers the agreement provided for in this Section 13 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law.
(b)    Employee’s Heirs, etc.  The Employee may not assign the Employee’s rights or delegate the Employee’s duties or obligations hereunder without the written consent of the Bank. This Agreement shall inure to the benefit of and be enforceable by the Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If the Employee should die while any amounts would still be payable to the Employee hereunder as if he 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 designee or, if there be no such designee, to the Employee’s estate.
(c)    Notices.  Any notice or communication required or permitted under the terms of this Agreement shall be in writing and shall be delivered personally, or sent by registered or certified mail, return receipt requested, postage prepaid, or sent by nationally recognized overnight carrier, postage prepaid, or sent by facsimile transmission to the Bank at the Bank’s principal office and facsimile number in Tyler, TX or to the Employee at the address and facsimile number, if any, appearing on the books and records of the Bank. Such notice or communication shall be deemed given (a) when delivered if personally delivered; (b) five mailing days after having been placed in the mail, if delivered by registered or certified mail; (c) the business day after having been placed with a nationally recognized overnight carrier, if delivered by nationally recognized overnight carrier, and (d) the business day after transmittal when transmitted with electronic confirmation of receipt, if transmitted by facsimile. Any party may change the address or facsimile number to which notices or communications are to be sent to it by giving notice of such change in the manner herein provided for giving notice. Until changed by notice, the following shall be the address and facsimile number to which notices shall be sent:
	
		
	If to the Bank, to:
	Southside Bank
1201 South Beckham
Tyler, Texas  75701

FAX:    903-592-3692
TELE:  903-531-7111

	If to the Employee, to:
	Tim Carter
3408 Rustwood
Fort Worth, TX  76109

(d)    Amendment or Waiver.  No provisions of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing signed by the Employee and such officer as may be specifically designated by the Board (which shall not include the Employee). No waiver by either party hereto 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 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 that are not set forth expressly in this Agreement.
(e)    Invalid Provisions.  Should any portion of this Agreement be adjudged or held to be invalid, unenforceable or void, such holding shall not have the effect of invalidating or voiding the remainder of this Agreement and the parties hereby agree that the portion so held invalid, unenforceable or void shall if possible, be deemed amended or reduced in scope, or otherwise be stricken from this Agreement to the extent required for the purposes of validity and enforcement thereof.
(f)    Unreasonable Compensation.  If any portion of the Compensation and Benefits provided by this Agreement should be deemed to be unreasonable or disproportionate to the services the Employee provides (under 12 C.F.R. 364 or other applicable law), the Bank shall reduce such Compensation and Benefits to the maximum amount that would be reasonable or proportionate.
(g)    Survival of the Employee’s Obligations.  The Employee’s obligations under this Agreement shall survive regardless of whether the Employee’s employment by the Bank is terminated, voluntarily or involuntarily, by the Bank or the Employee, with or without Cause. Employee acknowledges that new, independent and valuable benefits have been received by Employee by virtue of this Agreement and such constitutes consideration for Employee’s agreements herein.
(h)    Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.
(i)    Governing Law.  This Agreement and any action or proceeding related to it shall be governed by and construed under the laws of the State of Texas without giving effect to its conflicts of law principles.
(j)    Captions and Gender.  The use of Captions and Section headings herein is for purposes of convenience only and shall not affect the interpretation or substance of any provisions contained herein. Similarly, the use of the masculine gender with respect to pronouns in this Agreement is for purposes of convenience and includes either sex who may be a signatory.
(k)    Effect on Prior Agreements.  This Agreement, and any attachments, represent the entire understanding between the parties hereto and supersedes in all respects the Prior Employment Agreement (including, without limitation, any rights to severance or any change in control payments under the Prior Employment Agreement) and any other prior agreements or understandings between the Bank and the Employee regarding the Employee’s employment.
(l)    Independent Consideration.  Employee acknowledges that this Agreement is fully supported by new and independent consideration to Employee and fully meets the requirements of Texas laws as they relate to Employment Agreements that contain non-compensation agreements. Employee agrees to all of the terms of this Agreement as part of receiving the new and independent consideration extended to Employee under this Agreement.
SIGNATURES ON NEXT PAGE

IN WITNESS WHEREOF, the Employee and a duly authorized Bank officer have signed this Agreement.

THE EMPLOYEE    THE COMPANY

Southside Bank

By:                          
TIM CARTER        Title:                          

THE CORPORATION

Southside Bancshares, Inc.

By:                          
Title:                          

EXHIBIT A
Form of Release
This Release is granted effective as of the    day of    , 20_, by    
(“Employee”) in favor of Southside Bank (the “Bank”). This is the Release referred to that certain Employment Agreement effective as of         , 20__ by and between the Bank and  
Employee (the “Employment Agreement”). Employee gives this Release in consideration of the Bank’s promises and covenants as recited in the Employment Agreement, with respect to which this Release is an integral part.
1.Release of the Bank.  Employee, for himself, his successors, assigns, attorneys, and all those entitled to assert his rights, now and forever hereby releases and discharges the Bank and its respective officers, directors, stockholders, trustees, employees, agents, parent corporations, subsidiaries, affiliates, estates, successors, assigns and attorneys (“the Released Parties”), from any and all claims, actions, causes of action, sums of money due, suits, debts, liens, covenants, contracts, obligations, costs, expenses, damages, judgments, agreements, promises, demands, claims for attorney’s fees and costs, or liabilities whatsoever, in law or in equity, which Employee ever had or now has against the Released Parties, including, without limitation, any claims arising by reason of or in any way connected with any employment relationship which existed between the Bank or any of its parents, subsidiaries, affiliates, or predecessors, and Employee. It is understood and agreed that this Release is intended to cover all actions, causes of action, claims or demands for any damage, loss or injury, whether known or unknown, of any nature whatsoever, including those which may be traced either directly or indirectly to the aforesaid employment relationship, or the termination of that relationship, that Employee has, had or purports to have, from the beginning of time to the date of this Release, and including but not limited to claims for employment discrimination under federal or state law, except as provided in Paragraph 2; claims arising under the Age Discrimination in Employment Act, 29 U.S.C. § 621, et seq., Title VII of the Civil Rights Act, 42 U.S.C. § 2000(e), et seq. or the Americans With Disabilities Act, 42 U.S.C. § 12101 et seq.; claims for statutory or common law wrongful discharge, claims arising under the Fair Labor Standards Act, 29 U.S.C. § 201 et seq.; claims for attorney’s fees, expenses and costs; claims for defamation; claims for emotional distress; claims for wages or vacation pay; claims for benefits, including any claims arising under the Employee Retirement Income Security Act, 29 U.S.C. § 1001, et seq.; and claims under any other applicable federal, state or local laws or legal concepts; provided, however, that nothing herein shall release the Bank of any indemnification obligations to Employee under the Bank’s bylaws, certificate of incorporation, Texas law or otherwise.

2.Release of Claims Under Age Discrimination in Employment Act.  Without limiting the generality of the foregoing, Employee agrees that by executing this Release, he has released and waived any and all claims he has or may have as of the date of this Release for age discrimination under the Age Discrimination in Employment Act, 29 U.S.C. § 621, et seq. Employee acknowledges and agrees that he has been, and hereby is, advised by the Bank to consult with an attorney prior to executing this Release. Employee further acknowledges and agrees that the Bank has offered Employee the opportunity, before executing this Release, to consider this Release for a period of twenty-one (21) calendar days; and that the consideration he receives for this Release is in addition to amounts to which he was already entitled. It is further understood that this Release is not effective until seven (7) calendar days after the execution of this Release and that Employee may revoke this Release within seven (7) calendar days from the date of execution hereof
3.Non-Admission.  It is understood and agreed by Employee that the payment made to him is not to be construed as an admission of any liability whatsoever on the part of the Bank or any of the other Releasees, by whom liability is expressly denied.
4.Acknowledgement and Revocation Period.  Employee agrees that he has carefully read this Release and is signing it voluntarily. Employee acknowledges that he has had twenty one (21) days from receipt of this Release to review it prior to signing or that, if Employee is signing this Release prior to the expiration of such 21-day period, Employee is waiving his right to review the Release for such full 21-day period prior to signing it. Employee has the right to revoke this release within seven (7) days following the date of its execution by him. In order to revoke this Release, Employee must deliver notice of the revocation in writing to Bank’s General Counsel before the expiration of the seven (7) day period. However, if Employee revokes this Release within such seven (7) day period, no severance benefit will be payable to him under the Employment Agreement and he shall return to the Bank any such payment received prior to that date.
5.No Revocation After Seven Days. Employee acknowledges and agrees that this Release may not be revoked at any time after the expiration of the seven (7) day revocation period and that he/she will not institute any suit, action, or proceeding, whether at law or equity, challenging the enforceability of this Release. Employee further acknowledges and agrees that, with the exception of an action to challenge the waiver of claims under the ADEA, Employee shall not ever attempt to challenge the terms of this Release, attempt to obtain an order declaring this Release to be null and void, or institute litigation against the Bank or any other Releasee based upon a claim that is covered by the terms of the release contained herein, without first repaying all monies paid to him/her under Section 6 of the Employment Agreement. Furthermore, with the exception of an action to challenge his waiver of claims under the ADEA, if Employee does not prevail in an action to challenge this Release, to obtain an order declaring this Release to be null and void, or in any action against the Bank or any other Releasee based upon a claim that is covered by the release set forth herein, Employee shall pay to the Bank and/or the appropriate Releasee all their costs and attorneys’ fees incurred in their defense of Employee’s action.
6.Governing Law and Severability.  This Release and the rights and obligations of the parties hereto shall be governed and construed in accordance with the laws of the State of Texas. If any provision hereof is unenforceable or is held to be unenforceable, such provision shall be fully severable, and this document and its terms shall be construed and enforced as if such unenforceable provision had never comprised a part hereof, the remaining provisions hereof shall remain in full force and effect, and the court or tribunal construing the provisions shall add as a part hereof a provision as similar in terms and effect to such unenforceable provision as may be enforceable, in lieu of the unenforceable provision.
EXECUTIVE HAS CAREFULLY READ THIS RELEASE AND ACKNOWLEDGES THAT IT CONSTITUTES A GENERAL RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS AGAINST THE COMPANY UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT. EXECUTIVE ACKNOWLEDGES THAT HE HAS HAD A FULL OPPORTUNITY TO CONSULT WITH AN ATTORNEY OR OTHER ADVISOR OF HIS CHOOSING CONCERNING HIS EXECUTION OF THIS RELEASE AND THAT HE IS SIGNING THIS RELEASE VOLUNTARILY AND WITH THE FULL INTENT OF RELEASING THE COMPANY FROM ALL SUCH CLAIMS.

LEGAL02/37486481v5

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