Document:

Exhibit 10.3

    

    EXECUTIVE EMPLOYMENT AGREEMENT

    

    

    This EXECUTIVE EMPLOYMENT AGREEMENT, as amended and restated (this “Agreement”),

        is entered into on May 1, 2019, by and between Tectonic Financial, Inc. (“Parent”), T Bancshares, Inc. (the “Company”),
        and T Bank, N.A. (the “Bank,” and collectively Parent, the Company and the Bank being, the “Employers”),
        and Ken Bramlage, a resident of Texas (the “Executive”).

    

    

    WHEREAS, Parent and Tectonic Holdings, LLC, a
        Texas limited liability company, entered into that certain Amended and Restated Agreement and Plan of Merger on March 28, 2019 (the “Merger Agreement”);

    

    

    WHEREAS, the parties desire to enter into this
        Agreement effective as of the closing of the transactions contemplated by the Merger Agreement (the “Effective Date”);

    

    

    WHEREAS, Parent is the direct or indirect
        parent of the Company and the Bank;

    

    

    WHEREAS, each Employer desires to continue to
        employ the Executive as Executive Vice President and Chief Financial Officer pursuant to the terms and conditions set forth in this Agreement;

    

    

    WHEREAS, each of the Employers desire to be
        assured that the unique and expert services of the Executive will be substantially available to each of them, and that the Executive is willing and able to render such services on the terms and conditions hereinafter set forth, and that the
        Executive will perform all duties which, consistent with his position, the Board of Directors of each of the Employers (as applicable, each such Board of Directors being, the “Board”)

        delegates to the Executive;

    

    

    WHEREAS, each of Employers desire to be assured
        that each of their confidential information and goodwill will be preserved for the exclusive benefit of each of the Employers; and

    

    

    WHEREAS, the Employers and the Executive have
        read and understood the terms and provisions set forth in this Agreement, and have been afforded a reasonable opportunity to review this Agreement with their respective legal counsel.

    

    

    NOW, THEREFORE, in consideration of the mutual
        promises and covenants set forth in this Agreement, each of the Employers and the Executive agree as follows:

    

    

    A.  DURATION

    

    

    1.          This Agreement shall have an initial term commencing
        on the Effective Date and expiring on May 14, 2020 (the “Initial Term”); provided,
        however, that the Initial Term shall be automatically extended for successive periods of one (1) year on a continuing basis unless either the Executive or the
        Parent Board shall give written notice not to so extend at least ninety (90) days prior to the end of the Initial Term or any renewal period (the “Term”).  Subject to the
        provisions contained in Sections F, G, and H, either the Parent Board or the Executive may terminate this Agreement by sending written notice of such termination at least thirty (30) days prior to the termination date.  Both parties acknowledge and agree
        that, in the event this Agreement is terminated by either party, the provisions of Paragraphs 9 through 18, 22, 23, 24, 27, 28, 32, and 35 through 44 will survive the termination of this Agreement.

    

    

    B.  COMPENSATION

    

    

    2.          All payments of salary and other compensation to the
        Executive shall be payable by the Bank in accordance with the Bank’s ordinary payroll and other policies and procedures.

    
      
        

    

    
    

    

    a.         Base Salary.  For all services rendered by the Executive under this Agreement, the Executive shall be paid a base salary of $147,500.00 Dollars per annum, payable in equal installments in accordance
        with the Bank’s normal payroll practices (the “Base Salary”), subject to (i) any increases authorized by the Parent Board or (ii) otherwise agreed to by the Parent Board
        and the Executive.  The amount of the Base Salary may be reviewed at any time and from time to time by the Parent Board and shall be reviewed at least annually, but shall not be reduced.

    

    

    b.         Annual Bonus Payment.  For each calendar year during the Term, the Executive shall be eligible for a performance-based bonus, measured against the criteria the Parent Board shall agree upon and set
        forth from time to time.  To the extent the performance criteria are satisfied, such bonus will be considered earned as of December 31 of the calendar year to which the bonus is attributable, and will be paid by the Bank in a lump sum no later than
        February 15th of the calendar year that immediately follows the calendar year to which the bonus is attributable.  No other compensation provided for in this Agreement shall be deemed a substitute for the Executive’s right to participate in such
        performance-based bonuses.

    

    

    3.          The Bank and the Executive acknowledge and agree that,
        subject to the provisions of Paragraph 4 of this Agreement, the Executive shall be entitled to receive employee and dependent health insurance, dental insurance, sick leave and vacation, and any additional benefits provided to all Bank employees
        and/or executives all in accordance with the Bank’s employment policies and plans.

    

    

    4.          The Executive acknowledges and agrees that any
        employee benefits provided to the Executive by the Bank incident to the Executive’s employment are governed by the applicable plan documents, summary plan descriptions or employment policies, and may be modified, suspended or revoked at any time,
        in accordance with the terms and provisions of the applicable documents.

    

    

    C.  RESPONSIBILITIES

    

    

    5.          The Executive acknowledges and agrees that he shall be
        employed as Executive Vice President and Chief Financial Officer of each of the Employers, and that he will report to the President and Chief Executive Officer of the Bank.  The Executive covenants and agrees that he will faithfully devote his best
        efforts and his primary focus to his positions with the each of the Employers.

    

    

    6.          The Executive acknowledges and agrees that the duties
        and responsibilities of the Executive required by his positions are wholly within the discretion of the Parent Board, and may be modified, or new duties and responsibilities imposed by the Parent Board at any time, without the approval or consent
        of the Executive.  However, these new duties and responsibilities may not constitute immoral or unlawful acts.  In addition, the new duties and responsibilities must be generally consistent with the Executive’s role as Executive Vice President and
        Chief Financial Officer of each of the Employers.

    

    

    7.          The Executive acknowledges and agrees that, during the
        Term of this Agreement, he has a fiduciary duty to each of the Employers and its subsidiaries and that he will not engage in any activity during the Term of this Agreement, which will or could, in any significant way, harm the business, business
        interests, or reputation of any of the Employers, its subsidiaries, its employees, or their Boards.  Notwithstanding the foregoing, the Executive may (A) serve on corporate boards, provided the Executives receives prior written permission from the
        Parent Board; (B) serve on civic, children sports organization or charitable boards without remuneration therefor; (C) participate in charitable, civic, educational, professional, community or industry affairs; and (D) manage personal investments
        (provided such management does not materially interfere with the performance of his duties under this Agreement).

    
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    8.          The Executive acknowledges and agrees that he will not
        directly or indirectly engage in competition with any of the Employers at any time during the existence of the employment relationship between the Employers and the Executive, and the Executive will not on his own behalf, or as another’s agent or
        employee, engage in any of the same or similar duties and/or Employer-related responsibilities required by the Executive’s position with the Employers, other than as an employee of the Employers pursuant to this Agreement or as specifically
        approved by the Parent Board.

    

    

    D.  NONINTERFERENCE

    

    

    9.          In his position of employment, the Executive will
        continue to be provided with certain of the Employers’ confidential information and trade secrets (hereafter “Proprietary Information”) pertaining to, or arising from, the
        business of the Employers, and its affiliates (if any), upon execution of this Agreement and for the duration of the Executive’s employment with the Employers.  The Executive hereby agrees and acknowledges that such Proprietary Information is
        unique and valuable to the Employers’ business and that the Employers would suffer irreparable injury if this information were publicly disclosed, or used for purposes other than on behalf of the Employers.  Therefore, the Executive agrees to keep
        in strict secrecy and confidence, both during and after the period of his employment, any and all Proprietary Information that the Executive acquires, or to which the Executive has access, during employment by the Employers, that has not been
        publicly disclosed by the Employers.  The Proprietary Information covered by this Agreement shall include, but shall not be limited to, information relating to any financial information, processes policies, procedures, pricing, plans, devices,
        compilations of information, technical data, mailing lists, methods of distributing, names of suppliers, and customers, arrangements entered into with suppliers, vendors, and customers, marketing strategies, and other trade secrets of the
        Employers.

    

    

    10.          During the Executive’s employment with any of the
        Employers and for a period of twelve (12) months after his termination of employment from all Employers for any reason (regardless of when such termination occurs), the Executive shall not engage in the following acts of “solicitation”:

    

    

    a.         directly or indirectly, whether as
        an individual for the Executive’s own account, or on behalf of any other person, firm, corporation, partnership, joint venture or entity whatsoever, solicit, hire or endeavor to entice away from the Employers any employee who is employed by the
        Employers;

    

    

    b.          directly or indirectly through any
        other individual or entity, solicit, entice, persuade or induce any individual or entity to terminate, reduce or refrain from forming, renewing or extending its relationship, whether actual or prospective, with the Employers; or

    

    

    c.         directly or indirectly through any
        other individual or entity, solicit, entice, persuade or induce any individual or business that was a customer of the Employers during the term of the Executive’s employment with any of the Employers to do business with any individual or entity
        with respect to matters that any of the Employers did business or was attempting to do with such customer either during the term of the Executive’s employment with the Employers or during the term of this solicitation prohibition.

    

    

    The restrictions contained in Subsections (b and c) hereof are limited to customers, clients, or patrons of the Employers with whom the
        Executive has done business, performed services for or on behalf of within the 12-month period preceding the Executive’s termination of employment with the respective Employer or about whom the Executive has Proprietary Information.  Nothing in
        this Paragraph 10 will prevent the Executive from calling upon or soliciting those employees, customers or other persons having business relationships with the Employers to do business with the Executive in any business of the Executive not related
        to banking, investment, fiduciary, or financial services offered by any of the Employers during the term of this Agreement.

    
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    11.          The Executive expressly represents that he has no
        agreements with, or obligations to, any party which conflict, or may conflict, with the interests of any of the Employers or with the Executive’s duties as an employee of the Employers.

    

    

    12.          The Executive acknowledges and agrees that in
        exchange for the execution of this Agreement, the Severance Payment, and agreement to the provisions of this Section D, the Executive will receive substantial, valuable
        consideration including confidential trade secret and Proprietary Information relating to the identity and special needs of each of the Employer’s current and prospective customers, the Employers’ current and prospective services, the Employers’
        business projections and market studies, the Employers’ business plans and strategies, the Employers’ studies and information concerning special services unique to the respective Employers and that in the absence of the Executive’s agreements
        herein, he would not have had access to such unique and valuable consideration.  The Executive further acknowledges and agrees that his agreements in this Section D are a
        material inducement to each of the Employer’s agreement to enter into and continue this relationship.  The Executive acknowledges and agrees that these items collectively constitute fair and adequate consideration for the execution of the
        noninterference agreement set forth above.

    

    

    13.          In consideration for the above-recited valuable
        consideration, and as a material inducement for the Employers’ agreements herein, including each of the Employer’s promises to furnish the Executive with access to its Proprietary Information, the Executive understands and agrees that from the
        Effective Date of this Agreement and continuing thereafter until a date that is the earlier to occur of (i) twelve (12) months after the termination of the
        Executive’s employment with all of the Employers for any reason, or (ii) the end of the Initial Term or Term, as applicable, the Executive shall not, directly or indirectly, for himself or on behalf of or in conjunction with any other person,
        company, partnership, corporation, business, group, or other entity:

    

    

    a.          serve, as an officer, director,
        shareholder, owner, partner, joint venturer, or in a managerial capacity, whether as an employee, independent contractor, consultant, advisor, or sales representative, with an insured depository institution, finance company, investment advisor
        company, or other entity engaged in the same business as or a business substantially similar to that of the Employers or an affiliate thereof that has a location within the Dallas-Fort Worth metropolitan statistical area, as defined by the US
        Office of Management & Budget (the “Territory”);

    

    

    b.          contact, solicit, or seek to divert
        the business or patronage of any person, association, corporation or other business organization or entity with whom the Executive is familiar because of his employment with the Employers and/or about whom the Executive has learned Proprietary
        Information during his/her employment with each of the Employers, and that it is agreed that doing business with such customers from remote locations, telephonically, electronically or otherwise is deemed to violate the geographic restrictions
        hereof; provided, however, that nothing in this subsection will prevent the Executive from calling upon or soliciting those customers or other persons having business relationships with the Employers to do business with the Executive in any
        business of the Executive not related to banking, investment, or financial services offered by the Employers during the term of this Agreement.  It is the desire of each of the Employers and the Executive that these restrictions be enforced to the
        fullest extent allowed by law.

    
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    c.         The foregoing covenants shall not
        be deemed to prohibit the Executive from acquiring an ownership interest in any publicly-traded depository institution or its holding company, so long as that ownership interest does not exceed one percent (1%) of the total number of shares
        outstanding of that depository institution, and/or invest in an existing mutual fund that invests, directly or indirectly, in such insured depository institutions.

    

    

    14.          It is hereby further agreed by the Employers and the
        Executive that if the non-solicitation covenants contained in this Section D should be held by any court or other constituted legal authority to be void or otherwise
        unenforceable in any particular area or jurisdiction despite those modifications outlined above, then the parties shall consider this Agreement to be amended and modified in that particular area or jurisdiction so as to eliminate therefrom any part
        of or the entire covenant that the particular area or jurisdiction finds void or otherwise unenforceable, but as to all other areas and jurisdictions covered by this Agreement, the non-solicitation covenants contained herein shall remain in full
        force and effect as originally written.

    

    

    15.          Intentionally omitted.

    

    

    E.  REMEDIES

    

    

    16.          In the event that the Executive violates any of the
        provisions set forth in this Agreement relating to Noninterference, the Executive acknowledges and agrees that each of the Employers may suffer immediate and irreparable harm.  Consequently, the Executive acknowledges and agrees that the Employers
        shall be entitled to immediate injunctive relief, either by temporary or permanent injunction, to prevent such a violation, without regard to the application of Section D
        of this Agreement and that if the Executive is receiving payments pursuant to either Sections G or H
        of this Agreement, the Employers may after a court or arbitrator determines that a violation occurred, terminate such payments without limiting its right to specific performance, injunctive relief, or any other category of relief or damages.  The
        Executive agrees to repay any payments made pursuant to either Sections G (less that portion prorated from the date of payment to the date of violation) or H of this Agreement from the date of violation determined by a court or
        arbitrator.  The Executive further agrees that the restrictive period of each covenant determined to be violated shall be extended by a period of time equal to the period of violation by the Executive, as determined by a court or arbitrator.

    

    

    F.  TERMINATION

    

    

    17.          The Executive acknowledges and agrees that the Parent
        Board reserves the right to terminate this Agreement, for any reason, by providing the Executive with thirty (30) days’ written notice of the termination, delivered in person, or by certified U.S. mail to the Executive’s last known address
        reflected in the Bank’s personnel records.  Such notice shall be effective upon personal delivery or three days after mailing by certified U.S. mail.  However, if this Agreement is terminated at the Parent Board’s insistence without Cause (as
        defined in this Agreement), or the Executive terminates his employment for Good Reason, the Employer covenants and agrees to provide the Executive with the Severance Payment set forth in Section H of this Agreement.

    

    

    18.          The Executive acknowledges and agrees that the Parent
        Board may terminate this Agreement at any time, without notice, for Cause.  The term “Cause” means the occurrence of any of the following:

    

    

    a.          a material violation by the
        Executive of any material provision of this Agreement or his employment and the Executive fails to cure, if able to be cured, such violation within thirty (30) days after written notice from the Parent Board;

    
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    b.         The Executive engages in conduct
        that constitutes gross negligence or gross misconduct in carrying out the Executive’s duties with respect to the Executive’s employment including indecency, immorality, gross insubordination, dishonesty, unlawful harassment, use of illegal drugs,
        or fighting;

    

    

    c.          The Executive is convicted of, or
        pleads guilty or nolo contendere to, a felony or to a crime involving moral turpitude;

    

    

    d.          any act by the Executive  involving
        dishonesty relating to the business of the Employers that adversely and significantly affects the business of any of the Employers;

    

    

    e.          a material breach by the Executive
        of any of the Employers’ written code of ethics or any other material written policy or regulation of the Employers governing the conduct of its employees or contractors (which breach, if able to be cured, remains uncured or continues or recurs
        thirty (30) days after written notice from the Parent Board);

    

    

    f.          The Executive is prohibited from
        engaging in the business of banking by any governmental regulatory agency having jurisdiction over any of the Employers or is in any way suspended or prohibited from participation in any government enhanced lending program by the applicable
        government agency.

    

    

    Notwithstanding anything in this Section 18 a-f to the contrary, no such event or condition shall constitute Cause unless (x) within
        ninety (90) days from the Parent Board first acquiring actual knowledge of the existence of the Cause condition, the Parent Board provides the Executive written notice of its intention to terminate the Executive’s employment for Cause and the
        specific facts giving rise to such termination; (y) such grounds for termination are not corrected by the Executive within thirty (30) days of the Executive’s actual receipt of such notice; and (z) the Parent Board terminates the Executive’s
        employment with the Employers immediately following the expiration of such thirty-day (30) period.  For purposes of this Section, any attempt by the Executive to correct a stated Cause condition shall not be deemed an admission by the Executive
        that the Parent Board’s assertion of Cause is valid.

    

    

    If during his employment, the Executive is terminated for Cause or resigns his employment for any reason other than for Good Reason (as
        defined below), the Executive will be entitled only to receive Base Salary through the date of such termination, pay in lieu of any unused vacation in accordance with the Bank’s normal practice, and, at the Executive’s expense, any health benefits
        to which the Bank is required by law to provide and the Executive is entitled under the terms of the Bank’s employee benefit plans and programs (“Standard Termination Payments”).

    

    

    19.          The Employers acknowledges and agrees that the
        Executive reserves the right to terminate this Agreement at any time, for any reason, with or without Good Reason, by providing thirty (30) days written notice, by personal delivery or certified U.S. mail, to the Parent Board at its principal
        business address of the Executive’s intention to terminate this Agreement.  Such notice shall be effective upon personal delivery or three days after mailing by certified U.S. mail.  In the event of such termination, the Executive will be entitled
        to receive the Standard Termination Payments.

    

    

    20.          The Executive acknowledges and agrees that in the
        event of the Executive’s death, this Agreement will terminate immediately, without notice, on the date of the Executive’s death.  The Executive acknowledges and agrees that, in the event of his death, the Bank will pay to the Executive’s estate the
        Standard Termination Payments.

    
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    21.          The Executive acknowledges and agrees that this
        Agreement will terminate immediately, without notice, in the event the Executive becomes physically or mentally disabled, as defined by 29 C.F.R. § 1630.2(g)(1), and cannot perform the essential functions of his position, with or without reasonable
        accommodation for the period designated by the Executive’s disability insurance after which disability payments will begin.  In the event of such termination, the Executive will be entitled to receive the Standard Termination Payments.

    

    

    22.          The Executive acknowledges and agrees that in the
        event of termination of this Agreement, for whatever reason, whether at the insistence of the Executive or at the insistence of the Parent Board, the Executive will return to the Employers within seventy-two (72) hours of the time when notice of
        termination is communicated by either party, or sooner if requested by the Parent Board or any Employer, any Proprietary Information in his possession, custody or control, and all equipment, literature, documents, data, information, order forms,
        memoranda, correspondence, customer and prospective customer lists, customer’s orders, records, cards or notes acquired, compiled or coming into the Executive’s knowledge, possession or control in connection with his activities as an employee of
        the Employers, as well as all machines, parts, equipment or other materials received from the Employers or from any of its customers, agents or suppliers, in connection with such activities.

    

    

    G.  CHANGE IN CONTROL

    

    

    23.          The parties acknowledge that the Executive has agreed
        to assume the position of Executive Vice President and Chief Financial Officer of each of the Employers and to enter into this Agreement based on his confidence in the current owners of the Employers and the direction of the Employers provided by
        the current Parent Board.  In the event of a Change in Control, the Employers agree and acknowledge that the Executive (or his beneficiaries, if applicable) shall have the right to receive a cash lump sum payment equal to 1.00 times his Base Amount
        as defined in Section 280G(b)(3) of the Internal Revenue Code of 1986, as amended (“Code”), paid by the Bank within thirty (30) days upon a Change in Control or under such
        other terms as may be mutually agreed.  In the event that the Executive is also entitled to any payment under Section H of this Agreement, payment under this Section G shall be offset by such amount.  As a condition of his right to receive the payment described in this Section

            G, the Executive acknowledges and agrees that he will execute, and will not revoke, and deliver a general release and waiver of claims in a form provided by the Bank (for the benefit of the Employers) at the time of termination.

    

    

    24.          Notwithstanding any provision of this Agreement to
        the contrary, the Employers shall not be required to pay any benefit under this Agreement if, upon the advice of counsel, the Parent Board determines that the payment of such benefit, when aggregated with payments the Executive receives under other
        agreements, would be prohibited by 12 C.F.R. Part 359 or any other regulations regarding employee compensation promulgated by any regulatory agency having jurisdiction over the Employers or its affiliates, or to the extent any benefit would be a
        non-deductible excess parachute payment under Section 280G of the Code, or create an excise tax under the excess parachute rules of Sections 280G and 4999 of the Code.  To the extent possible, the Parent Board shall require the Bank to reduce the
        benefit paid under this Agreement to the maximum benefit so as to not create a non-deductible excess parachute payment under Section 280G of the Code or trigger an excise tax under Section 280G of the Code.  Any such reduction of payments and
        benefits pursuant to this Section 24, if applicable, shall be made by reducing payments or benefits to be paid in cash hereunder in the order in which such payment or benefit would be paid or provided  (beginning with such payment or benefit that
        would be made last in time and continuing, to the extent necessary, through to such payment or benefit that would be made first in time) and, then, reducing any benefit to be provided in-kind hereunder in a similar order.  The determination as to
        whether any such reduction in the amount of the payments and benefits provided hereunder is necessary shall be made by applying principles, assumptions and procedures consistent with Section 280G of the Code by an accounting firm or law firm of
        national reputation that is selected for this purpose by Parent (the “280G Firm”).  In performing such determination, and for the purpose of assessing whether payments
        under this Agreement or otherwise qualify as reasonable compensation that is exempt from being a parachute payment under Section 280G of the Code, the 280G Firm or the Parent Board may retain the services of an independent valuation expert.

    
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    25.          As used in this Agreement, a “Change in Control” shall be deemed to have occurred in the following instances:

    

    

    a.          One or more of the Employers are
        merged or consolidated with another entity and, as a result of such merger or consolidation, less than fifty percent (50%) of the outstanding voting securities (on a fully diluted basis) of the surviving or resulting entity are owned in the
        aggregate by the former shareholders of Parent; and

    

    

    b.          Parent sells all or substantially all of its assets to
        another entity.

    

    

    Notwithstanding the foregoing, a Change in Control shall not be deemed to have occurred if (y) as a result of an initial public offering
        of the capital stock of any of the Employers or (z) any of the Employers are combined or merged under one holding company or an internal reorganization.

    

    

    Furthermore, notwithstanding anything contained herein to the contrary, if the Executive’s employment is terminated and he reasonably
        demonstrates that such termination was at the request of a third party who has indicated an intention of taking steps reasonably calculated to effect a Change in Control, or such termination otherwise occurred in connection with, or in anticipation
        of, a Change in Control, then for all purposes hereof, a Change in Control shall be deemed to have occurred on the day immediately prior to the date of such termination of his employment.

    

    

    26.          For purposes of this Agreement, “Good Reason” shall mean the occurrence of any one (1) or more of the following:

    

    

    a.          a material diminution in the Executive’s position,
        duties, responsibilities, or reporting requirements from those held and/or assigned to the Executive, or the assignment of duties materially inconsistent with the Executive’s position or status with the Employers; however, removal from or failure
        to be re-nominated for a Parent Board position will not constitute a material diminution in the Executive’s position, duties, responsibilities;

    

    

    b.          a material reduction in the Executive’s annual base
        salary or benefits, other than with the consent of the Executive or any across-the-board reduction of cash compensation or benefits applicable to all senior executives of Parent or the Bank;

    

    

    c.          any of the Employers requiring that the Executive be
        based at any office or location that is located more than twenty-five (25) miles outside of the city limits of Dallas, Texas;

    

    

    d.          a material breach by any of the Employers of its
        obligations under this Agreement or any equity award agreement with the Executive; or

    

    

    e.          the occurrence of a Change of Control.

    

    

    No event or condition described in this Section 26 shall constitute Good Reason unless, (x) within ninety (90) days from the Executive
        first acquiring actual knowledge of the existence of the Good Reason condition described in this Section 26, the Executive provides the Parent Board written notice of the Executive’s intention to terminate the Executive’s employment for Good Reason
        and the specific grounds for such termination; (y) such grounds for termination (if susceptible to correction) are not corrected by the Parent Board within thirty (30) days of the Parent Board’s receipt of such notice; and (z) the Executive
        terminates the Executive’s employment with the Employers immediately following expiration of such thirty-day (30) period.  For purposes of this Section 26, any attempt by the Parent Board to correct a stated Good Reason shall not be deemed an
        admission by the Parent Board that the Executive’s assertion of Good reason is valid.

    
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    H.  SEVERANCE

    

    

    27.          The Executive and the Employers acknowledge and agree
        that, if, and only if, the Parent Board terminates the Executive’s employment at any time for any reason other than for Cause, or the Executive terminates his employment for Good Reason, the Executive shall be entitled to (A) the Standard
        Termination Payments, (B) any health benefits to which the Executive is receiving from the Bank immediately prior to such termination at the same expense as other employees for such selected employee benefit plans and programs for a period of
        twelve (12) months (unless otherwise covered by another plan), and (C) the Severance Payment to be paid in twelve (12) equal monthly installments (the “Severance Term”); provided, that the Executive executes, and does not revoke, and timely delivers a general release and waiver of claims in a form provided by the Parent Board at
        the time of termination.  The “Severance Payment” shall be an amount of cash equal to the sum of (x) the Executive’s Base Salary at the time of termination, (y) the
        average annual bonus (excluding change of control payments) paid to the Executive with respect to each of the three (3) prior fiscal years, plus (z) a pro-rated annual
        bonus for the year in which the Executive’s employment terminates.  In the event that the Executive is entitled to any payment under Section G, no Severance Payment shall
        be due under this Section H; provided, however, the Executive shall be entitled to (A) and (B) of this Section

            H.

    

    

    I.  SEVERABILITY

    

    

    28.          The Executive acknowledges and agrees that each
        covenant and/or provision of this Agreement shall be enforceable independently of every other covenant and/or provision.  Furthermore, the Executive acknowledges and agrees that, in the event any covenant and/or provision of this Agreement is
        determined to be unenforceable for any reason, the remaining covenants and/or provisions will remain effective, binding and enforceable.

    

    

    J.  WAIVER

    

    

    29.          The parties acknowledge and agree that the failure of
        either to enforce any provision of this Agreement shall not constitute a waiver of that particular provision, or of any other provisions of this Agreement.

    

    

    K.  SUCCESSORS AND ASSIGNS

    

    

    30.          The Executive acknowledges and agrees that this
        Agreement may be assigned by the Employers to any successor-in- interest and shall inure to the benefit of, and be fully enforceable by, any successor and/or assignee; and this Agreement will be fully binding upon, and may be enforced by the
        Executive against, any successor and/or assignee of the Employers.

    

    

    31.          The Executive acknowledges and agrees that his
        obligations, duties and responsibilities under this Agreement are personal and shall not be assignable, and that this Agreement shall be enforceable by the Executive only.  In the event of the Executive’s death, this Agreement shall be enforceable
        by the Executive’s estate, executors and/or legal representatives, only to the extent provided herein.

    
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    L.  CHOICE OF LAW

    

    

    32.          Both parties acknowledge and agree that the law of
        the State of Texas will govern the validity, interpretation and effect of this Agreement, and any other dispute relating to, or arising out of, the employment relationship between the Employers and the Executive.

    

    

    M.  MODIFICATION

    

    

    33.          Both parties acknowledge and agree that this
        Agreement constitute the complete and entire agreement between the parties regarding the employment of the Executive; that the parties have executed this Agreement based upon the express terms and provisions set forth herein; that the parties have
        not relied on any representations, oral or written, which are not set forth in this Agreement; that no previous agreement, either oral or written, shall have any effect on the terms or provisions of this Agreement; and that all previous agreements,
        either oral or written, are expressly superseded and revoked by this Agreement.

    

    

    34.          Both parties acknowledge and agree that the covenants
        and/or provisions of this Agreement may not be modified by any subsequent agreement unless the modifying agreement; (i) is in writing; (ii) contains an express provision referencing this Agreement; (iii) is signed by the Executive; and (iv) is
        approved by a majority of the Parent Board.

    

    

    N.  INDEMNIFICATION

    

    

    35.          During the term of this Agreement, the Employers
        shall indemnify the Executive against all judgments, penalties, fines, amounts paid in settlement and reasonable expenses (including, but not limited to, attorneys’ fees) relating to his employment by the Employers to the fullest extent permissible
        under the law, including, without limitation, the National Banking Act, Article 2.02-1 of the Texas Business Organization Code, each of the Employers’ Certificate of Formation and Bylaws, each of the Employers’ Articles of Association and Bylaws,
        and may purchase such indemnification insurance as the Parent Board may from time to time determine.

    

    

    O.  ARBITRATION

    

    

    36.          Any dispute, controversy, or claim arising out of or
        relating to this Agreement or breach thereof, or arising out of or relating in any way to the employment of the Executive or the termination thereof, shall be submitted to arbitration in accordance with the Employment Dispute Arbitration Rules of
        the American Arbitration Association.  Judgment upon the award rendered by the arbitrator may be entered in any court of competent jurisdiction.  In reaching his or her decision, the arbitrator shall have no authority to ignore, change, modify, add
        to or delete from any provision of this Agreement, but instead is limited to interpreting this Agreement.  Notwithstanding the arbitration provisions set forth in this Agreement, the Executive and the Employers acknowledge and agree that nothing in
        this Agreement shall be construed to require the arbitration of any claim or controversy arising under Section D of this Agreement.  These provisions shall be enforceable
        by any court of competent jurisdiction and shall not be subject to this Section O.  The Executive and the Employers further acknowledge and agree that nothing in this
        Agreement shall be construed to require arbitration of any claim for workers’ compensation or unemployment compensation.

    

    

    P.  LEGAL CONSULTATION

    

    

    37.          The Executive and the Employers acknowledge and agree
        that both parties have been accorded a reasonable opportunity to review this Agreement with legal counsel prior to executing the agreement.

    
      10

      
        

    

    

    

    

    

    Q.  MISCELLANEOUS

    

    

    38.          The Executive shall make himself available, upon the
        request of the Employers, to testify or otherwise assist in litigation, arbitration, or other disputes involving the Employers, or any of the directors, officers, employees, subsidiaries, affiliates or parent corporations of either, at no
        additional cost during the Term of this Agreement and at any time following the termination of this Agreement.

    

    

    39.          The Executive shall not be required to mitigate the
        amount of any payment provided for in this Agreement by seeking other employment or otherwise, nor shall the amount of any payment provided for in this Agreement be reduced by any compensation earned by the Executive as the result of employment by
        another employer after the date of termination, or otherwise.

    

    

    40.          In the event either party institutes arbitration or
        litigation to enforce or protect its rights under this Agreement, the prevailing party in such arbitration or litigation shall be entitled, in addition to all other relief, to reasonable attorneys’ fees, out-of- pocket costs, disbursements, and
        arbitrator’s fees relating to such arbitration or litigation.

    

    

    41.          This Agreement may be executed simultaneously in two
        or more counterparts, each of which shall be deemed an original, but all of which shall together constitute one and the same agreement.

    

    

    42.          This Agreement will not be in effect until the date
        this Agreement is fully executed by the Executive and the Employers.

    

    

    43.          Notwithstanding anything in this Agreement or any
        other agreement to the contrary, the Executive agrees (i) to abide by any compensation recovery, recoupment, anti-hedging, or other policy applicable to executives of the Employers and its affiliates that is hereafter adopted by the Parent Board or
        a duly authorized committee thereof to comply with applicable law as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the "Dodd-Frank Act"), the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley"), or other applicable law; and (ii) that
        the terms and conditions of this Agreement shall be deemed automatically and unilaterally amended to the minimum extent necessary to ensure compliance by the Executive and this Agreement with such policies, the Dodd-Frank Act, Sarbanes-Oxley, and
        any other applicable law.

    

    

    44.          This Agreement is intended to either avoid the
        application of, or comply with, Section 409A of the Code.  To that end this Agreement shall at all times be interpreted in a manner that is consistent with Section 409A of the Code.  Notwithstanding any other provision in this Agreement to the
        contrary, each of the Employers shall have the right, in its sole discretion, to adopt such amendments to this Agreement or take such other actions (including amendments and actions with retroactive effect) as it determines is necessary or
        appropriate for this Agreement to comply with Section 409A of the Code.  Further:

    

    

    a.          Any reimbursement of any costs and
        expenses by the Bank to the Executive under this Agreement shall be made by the Bank in no event later than the close of the Executive’s taxable year following the taxable year in which the cost or expense is incurred by the Executive.  The
        expenses incurred by the Executive in any calendar year that are eligible for reimbursement under this Agreement shall not affect the expenses incurred by the Executive in any other calendar year that are eligible for reimbursement hereunder and
        the Executive’s right to receive any reimbursement hereunder shall not be subject to liquidation or exchange for any other benefit.

    

    

    b.          Any payment following a separation
        from service that would be subject to Section 409A(a)(2)(A)(i) of the Code as a distribution following a separation from service of a "specified employee" (as defined under Section 409A(a)(2)(B)(i) of the Code) shall be made on the first to occur
        of (i) ten (10) days after the expiration of the six-month (6) period following such separation from service, (ii) death, or (iii) such earlier date that complies with Section 409A of the Code.

    
      11

      
        

    

    

    

    

    

    c.          Each payment that the Executive may
        receive under this Agreement shall be treated as a "separate payment" for purposes of Section 409A of the Code.

    

    

    d.         A termination of employment shall
        not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a "separation from service" within the meaning of Section 409A of the Code and, for purposes of any such provision of this Agreement,
        references to a "termination," "termination

        of employment," or like terms shall mean "separation from service."

    

    

    R.  NOTICES

    

    

    45.          Any and all notices of documents or other notices
        required to be delivered under the terms of this Agreement shall be addressed to each party as follows:

    

    

    EXECUTIVE:

    

    

    Ken Bramlage

    2400 Versailles

    McKinney, TX 75070

    

    

    PARENT:

    

    

    Tectonic Financial, Inc.

    16200 Dallas Parkway, Suite 190

    Dallas, TX 75248

    Attn: Chairman of the Board

    

    

    [Signature Page Follows]

    
      12

      
        

    

    

    

    

    

    

    

    IN WITNESS WHEREOF, the Parties hereto have entered into this Agreement on the date set forth above.

    

    

    	 	
            TECTONIC FINANCIAL, INC.

          	 
	 	 	 	 
	 	
            By:

          	
            /s/ Patrick Howard

                

          	 
	 	
            Name:

          	
            Patrick Howard

          	 
	 	
            Title:

          	
            President & CEO

              

          	 
	 	 	 	 
	 	
            T BANCSHARES, INC.

          	 
	 	 	 	 
	 	
            By:

          	
            /s/ Patrick Howard

          	 
	 	
            Name:

          	
            Patrick Howard

          	 
	 	
            Title:

          	
            President & CEO

          	 
	 	 	 	 
	 	
            T BANK, N.A.

          	 
	 	 	 	 
	 	
            By:

          	
            /s/ Patrick Howard

          	 
	 	
            Name:

          	
            Patrick Howard

          	 
	 	
            Title:

          	
            President & CEO

          	 
	 	 	 	 
	 	
            EXECUTIVE

          	 
	 	 	 	 
	 	
            By:

          	
            /s/ Ken Bramlage

          	 
	 	
            Name:

          	
            Ken Bramlage

          	 

    

    

    

    

    

  

  13

  
    
13Exhibit 10.6

   

  

     

    ADVANCES AND SECURITY AGREEMENT

    
      

      

      This Advances and Security Agreement (“Agreement”) is made as of June 29, 2006, between the Federal Home Loan Bank of Dallas (“Bank”), with its principal office located at 8500 Freeport Parkway South, Suite 600, Irving, Texas 75063, mailing address: P.O.
        Box 619026, Dallas, Texas 75261-9026 and T Bank , a 

      
        	
                National Bank

              	
                 (“Borrower”), with its chief executive office located at 16000 DALLAS PARKWAY, SUITE 125 DALLAS, TX 75248

              
	
                type of organization

              

        

          

         

      

      

      

    

    
      WHEREAS, from time to time Borrower desires to obtain extensions of credit from the Bank in accordance with the terms and conditions
        of this Agreement; and

      WHEREAS, pursuant to the provisions of the Federal Home Loan Bank Act, as amended from time to time (the “Act”), and
        the rules, regulations, statements of policy, and guidelines of the Federal Housing Finance Board or any successor entity now or hereafter in effect from time to time promulgated thereunder (the “Regulations”), the Bank is authorized to extend
        credit to Borrower in accordance with the credit policies and programs adopted by the Bank; and

    

    
      

      

      WHEREAS, the Bank requires that all existing indebtedness of Borrower to the Bank and all extensions of credit by the Bank to
        Borrower pursuant to this Agreement be secured pursuant to this Agreement, and Borrower is willing to provide such security;

    

    
      

      

      NOW, THEREFORE, Borrower and the Bank agree as follows:

    

    
      

      

      ARTICLE I 

      DEFINITIONS

    

    
      

      

      SECTION 1.1. DEFINED TERMS. All

        capitalized terms in this Agreement shall have the defined meanings where given, and the following terms shall have the following meanings:

    

    
      

      

      (a) “Advances” shall mean any and all loans, advances, overdrafts, or other extensions of credit by the Bank to Borrower, including
        all loans, advances, letters of credit, overdrafts, or extensions of credit heretofore, now, or hereafter granted by the Bank to, or on behalf of or for the account of Borrower.

      
        	
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    (b)          “Agreement” shall mean this Advances and Security Agreement, together with any and all authenticated amendments, modifications, or restatements hereof as may be
      duly entered into by the parties hereto and all documents or other agreements incorporated herein by reference.

     

    
      (c)          “Capital Stock” shall mean all of the capital stock of the Bank held by the Borrower and all payments that have been or hereafter are made on account of subscriptions to and all declared
        and unpaid dividends on such capital stock.

       

      (d)          “Collateral” shall mean (i) all First Mortgage Collateral, Other Real Estate Related Collateral, Capital Stock, Deposit Accounts, Securities, Small Business Collateral, and Small Farm and
        Agri-Business Collateral, (ii) all property in which Borrower has heretofore granted a security interest or has assigned, transferred, or pledged to the Bank as collateral for Advances prior to the date hereof, (iii) all other property as may be
        accepted by the Bank as collateral from time to time pursuant to the terms hereof, (iv) all securities representing undivided equity interests in any of the foregoing, (v) all accessions to, substitutions for, and replacements and products of all
        of the foregoing, and (vi) the proceeds, cash proceeds, and noncash proceeds of all of the foregoing, including, without limitation, any of the foregoing that are acquired with any cash proceeds of the foregoing.

    

    
      

      

      (e)          “Collateral Maintenance
          Level” shall mean one hundred percent (100%) of the aggregate outstanding Indebtedness. The Bank may increase or decrease the Collateral Maintenance Level as to all Indebtedness at any time.

    

    
      

      

      (f)           “Confirmation

          of Advance” shall mean a writing or transmission in electronic or other form as may be determined by the Bank from time to time evidencing an Advance.

    

    
      

      

      (g)          “Deposit Account” shall
          mean any and all of the deposit accounts of Borrower with the Bank, including, without limitation, all cash and other funds therein.

    

    
      

      

      (h)          “Event of Default” shall be as defined in Section 4.1 hereof.

    

    
      

      

      (i)          “Fair Market Value” shall mean the fair market value of Collateral determined in such manner as specified by the Bank from
        time to time.

    

    
      

      

      (j)          “First Mortgage Collateral” shall mean First Mortgage Documents and all ancillary security agreements, policies and
        certificates of insurance or guarantees, chattel paper, electronic chattel paper, evidences of recordation, applications, underwriting materials, appraisals, notices, opinions of counsel, loan servicing data, and all other electronically stored and
        written records or materials relating to the loans evidenced or secured by First Mortgage Documents.

    

    
      

      

      (k)          “First Mortgage Documents” shall mean all first mortgages and deeds of trust relating to one-to-four family residential
        dwellings and multifamily residential dwellings (“First Mortgages”) and all promissory notes, bonds, or other instruments evidencing loans secured thereby (“First Mortgage Notes”) and any endorsements and assignments thereof to Borrower.

    

    
      

      

      (1)          “Indebtedness” shall mean all indebtedness, obligations, and liabilities of Borrower to the Bank arising under or pursuant
        to this Agreement and any other agreements, including, without limitation, all Advances, all interest accruing from time to time (including, without limitation, any interest which accrues after the commencement of any receivership, bankruptcy,
        insolvency, or similar proceeding with respect to Borrower, whether or not allowed or allowable as a claim under any such proceeding), and all other amounts owed to the Bank under this Agreement or any other agreement.

    

    
       

      
        	
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    (m)         “Other Real Estate Related Collateral” shall mean (i) all other items of real
      estate related collateral, including without limitation, all mortgages, deeds of trust, and security agreements relating to loans secured by commercial property, home equity loans, home improvement loans, subordinate loans, mortgage warehouse lines
      of credit, real estate construction loans, and other real estate related loans, and (A) all promissory notes, bonds, or other instruments evidencing such loans and lines of credit, (B) any endorsements and assignments thereof to Borrower, and (C) all
      ancillary security agreements, policies and certificates of insurance or guarantees, chattel paper, electronic chattel paper, evidences of recordation, applications, underwriting materials, appraisals, notices, opinions of counsel, loan servicing
      data, and all other electronically stored and written records or materials relating to the loans evidenced or secured thereby, excluding First Mortgage Collateral, Securities, Small Business Collateral, and Small Farm and Agri-Business Collateral,
      (ii) all property relating to Borrower’s management, collection, processing, accounting for, monitoring, or servicing of loans and accounts, including, without limitation, all checks, instruments, documents, certificates, agreements, loan accounts,
      payments, chattel paper, electronic chattel paper, collections, account statements, computer files, records, promissory notes, endorsements, assignments, and loan servicing data, together with the rights, remedies, and powers related thereto, and
      (iii) participations in or portions of First Mortgage Collateral and other real estate related collateral as set forth in clause (i) above.

    
      

      

      (n)          “Qualifying Collateral” shall mean (a) Collateral, other than Capital Stock, Other Real Estate Related Collateral, Small
        Business Collateral, and Small Farm and Agri-Business Collateral, that: (i) qualifies as security for Advances under the terms and conditions of the Act and the Regulations and satisfies the requirements that may be established by the Bank; (ii) is
        owned by Borrower free and clear of any liens, encumbrances, or other interests other than the security interest granted to or permitted by the Bank and the assignment to the Bank hereunder; (iii) in the case of First Mortgage Collateral, has no
        payments which are overdue by more than the number of days, if any, permitted by the Bank’s Member Products & Credit Policy, as amended, restated, or otherwise modified from time to time, or any similar policy of the Bank and within the most
        recent twelve (12) month period has not otherwise been in default (beyond the applicable grace period with respect to such default, if any) which default has not been cured in a manner acceptable to the Bank in its sole discretion; (iv) in the case
        of First Mortgage Collateral, relates to residential real property that is covered by fire and hazard insurance in an amount at least sufficient to discharge the mortgage loan in full in case of loss and as to which all real estate taxes are
        current; (v) in the case of First Mortgage Collateral, does not secure any indebtedness on which any director, officer, employee, attorney, or agent of Borrower or any Federal Home Loan Bank or the Federal Housing Finance Board is personally liable
        unless the Board of Directors of the Bank has specifically approved acceptance of such Collateral and the Federal Housing Finance Board has endorsed such approval; and (vi) in the case of First Mortgage Collateral, has not been classified as
        substandard, doubtful or loss by Borrower’s regulating authority or Borrower’s management; and (b) Other Real Estate Related Collateral, Small Business Collateral, and Small Farm and Agri-Business Collateral that meets the requirements for First
        Mortgage Collateral except for the requirements in clause (a)(ii) above in the case of subordinate lien mortgages and except for the requirements in clause (a)(iv) above in the case of mortgages on underdeveloped land and in the case of commercial
        real estate property covered by fire and hazard insurance in an amount at least sufficient to discharge the mortgage loan in full in case of loss and as to which all real estate taxes are current.

       

      
        	
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      (o)          “Securities” shall mean mortgage-backed securities (including participation certificates) issued or
        guaranteed by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Corporation, or the Government National Mortgage Association, obligations of or guaranteed by the United States, United States government agency securities,
        privately-issued residential mortgage-backed securities, and any other investment property delivered or furnished to the Bank from time to time.

      (p)         “Small Business Collateral” shall mean loans to persons or entities owning or operating small businesses
        and all promissory notes, mortgages, deeds of trust, security agreements, bonds, instruments, endorsements, assignments, polices and certificates of insurance, guarantees, evidences of recordations, applications, underwritting materials,
        appraisals, notices, opinions of counsel, loan servicing data, electronically stored and written records, agreements, chattel paper, electronic chattel paper, and documents relating to, evidencing, or securing such loans.

      (q)         “Small Farm and Agri-Business Collateral” shall mean loans to persons or entities owning or operating
        small farms or agri-businesses and all promissory notes, mortgages, deeds of trust, security agreements, bonds, instruments, endorsements, assignments, polices and certificates of insurance, guarantees, evidences of recordations, applications,
        underwriting materials, appraisals, notices, opinions of counsel, loan servicing data, electronically stored and written records, agreements, chattel paper, electronic chattel paper, and documents relating to, evidencing, or securing such loans.

      (r)          “UCC” means the Uniform Commercial Code as in effect in the State of Texas or any other state the laws of
        which are required to be applied in connection with the issue of perfection of security interests hereunder.

    

    
      

      

      Unless otherwise defined herein or the context otherwise requires, terms defined in the UCC have the respective
        meanings provided in the UCC. The foregoing definitions shall be equally applicable to both the singular and plural forms of the defined terms.

    

    
      

      

      ARTICLE II

      ADVANCES

      

    

    
      

      

      SECTION 2.1. APPLICATION

          AND PROCEDURES FOR ADVANCES. Borrower may from time to time request Advances and agrees to be bound by the terms and conditions contained herein and by the Confirmation of Advance issued with respect to each such Advance. Unless otherwise
        agreed to by the Bank, each Advance shall be made by crediting the Deposit Account(s) of Borrower with the Bank.

       

      
        	
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      SECTION 2.2. REPAYMENT

          OF ADVANCES. Borrower agrees to repay each Advance in accordance with this Agreement and the terms and conditions of the Confirmation of Advance and any other document evidencing such Advance. Unless otherwise specified in any document
        evidencing an Advance, interest shall be paid on the first business day of the month for the amount accrued through the last day of the previous month and at maturity on the daily outstanding principal amount of each Advance at the rate set forth
        in the Confirmation of Advance evidencing such Advance; provided, however, interest shall be paid at maturity on the daily outstanding principal amount of each Advance with a maturity date of thirty five days or less at the rate set forth in the
        Confirmation of Advance evidencing such Advance. Interest will be charged for each day that an Advance is outstanding and will be computed on the basis of the actual number of days in the year. Borrower shall pay to the Bank immediately and without
        demand, interest on any past due principal of and interest on any Advance at the rate in effect and being charged by the Bank from time to time on overdrafts on Deposit Account(s) of its members. Borrower shall maintain in Deposit Account(s) with
        the Bank an amount at least equal to the amounts then currently due and payable to the Bank on outstanding Advances, and Borrower hereby authorizes the Bank to debit such Deposit Account(s) for all amounts due and payable on any Advance and for all
        other amounts due and payable hereunder. In the event that the collected balance in such Deposit Account(s) is, at any time, insufficient to pay such due and payable amounts, the Bank may without notice to Borrower apply any other deposits,
        credits, or monies of Borrower then in the possession of the Bank to the payment of such due and payable amounts. Borrower agrees that, in the event any such debit results in such Deposit Account(s) being overdrawn, Borrower shall pay overdraft
        charges and interest on the amount of the overdraft at the rate in effect and being charged by the Bank from time to time on overdrafts on Deposit Account(s) of its members. Upon maturity of any Advance, either by its terms, by acceleration
        pursuant to this Agreement, or otherwise the Bank may without notice to Borrower apply any credits, deposits, or monies of Borrower then in the possession or custody and control of the Bank to the payment of principal, interest, and other due and
        payable amounts in connection with such Advance, including, without limitation, any prepayment fees owed in connection with the repayment of that Advance. All payments with respect to Advances shall be applied first to any fees or charges
        applicable thereto, then to interest due thereon, and then to any principal amount thereof that is then due and payable.

    

    
      

      

      SECTION 2.3. ADVANCES

          WITH RESPECT TO OUTSTANDING COMMITMENTS. In the event that one or more commitments to make Advances to Borrower are outstanding at the time of an Event of Default under Section 4.1 hereof (“Outstanding Commitments”), the Bank may at its
        option make an Advance by crediting a special reserve account with the Bank in an amount equal to the Outstanding Commitments. Amounts credited to such special reserve account shall be utilized by the Bank for the purpose of satisfying the
        obligations of the Bank under such Outstanding Commitments. When all such obligations have expired or have been satisfied, the Bank shall disburse the balance, if any, in such special reserve account first to the satisfaction of any amounts then
        due and owing by Borrower to the Bank and then to Borrower or its successors in interest. Advances made pursuant to this Section 2.3 shall be payable on demand and shall bear interest at the rate in effect and being charged by the Bank from time to
        time on overdrafts on Deposit Account(s) of its Borrowers. Nothing contained in this Section 2.3, however, shall be interpreted to obligate the Bank to release funds or to fund an Outstanding Commitment in the event Borrower is unable to satisfy
        the continued eligibility for funding Advances or Collateral requirements of this Agreement or is otherwise in default under this Agreement.

    

    
      

      

      
        	
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      ARTICLE III

      SECURITY AGREEMENT

      

    

    
      

      

      SECTION 3.1. CREATION

          OF SECURITY INTEREST. As security for all Indebtedness and Outstanding Commitments, Borrower hereby assigns, transfers, and pledges to the Bank, and grants to the Bank a security interest in all of the Collateral, including, without
        limitation, the First Mortgage Collateral, Capital Stock, Deposit Accounts, Other Real Estate Related Collateral, Securities, Small Business Collateral, and Small Farm and Agri-Business Collateral now owned or existing or hereafter owned, acquired,
        or arising by Borrower, all payment intangibles related to the foregoing, and all proceeds, cash proceeds, and noncash proceeds of the foregoing. Without limitation of the foregoing and for the avoidance of doubt, all property heretofore assigned,
        transferred, or pledged by Borrower to the Bank or as to which Borrower has granted a security interest to the Bank, as collateral for Advances prior to the date hereof is Collateral hereunder. If, as, and when First Mortgage Collateral,
        Securities, Small Business Collateral, Small Farm and Agri-Business Collateral, and Other Real Estate Related Collateral is encumbered or disposed of by Borrower in the ordinary course of the Borrower’s business and in conformity with the
        requirements of Section 3.3 (a) hereof the security interest created hereunder shall be automatically released.

    

    
      

      

      SECTION 3.2. REPRESENTATIONS

          AND WARRANTIES OF BORROWER CONCERNING COLLATERAL. Borrower represents and warrants to the Bank, as of the date hereof and as of the date of each Advance hereunder, the following:

    

    
      

      

      (a)          Borrower owns and has good and marketable title to the Collateral free and clear of any and all liens, claims, or encumbrances and has the right and authority to grant a security interest in the Collateral and to subject all of the
          Collateral to this Agreement.

    

    
      

      

      (b)          The information contained in any status report, schedule, or other documents required hereunder and any other information given from time to time by Borrower as to each item of Collateral is true, accurate, and complete in all
          material respects.

    

    
      

      

      (c)          All of the Collateral meets the standards and requirements with respect thereto from time to time established by the Bank, the Act, and the Regulations.

    

    
      

      

      (d)          To the best of Borrower’s knowledge and belief, no part of any real property or interest in real property that is the subject of mortgages included in the Collateral contains or is subject to the effects of toxic or hazardous
          materials or other hazardous substances (including those defined in the Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended, 42 U.S.C. sec. 9601, et. seq.; the Hazardous Materials Transportation Act, 49 U.S.C. sec. 1801, et. seq.; the Resource Conservation and Recovery Act, 42 U.S.C. sec. 6901, et.
            seq.; and in the regulations adopted and publications promulgated pursuant to said laws, as such laws, regulations, and publications may be amended, reformed, or otherwise modified from time to
          time) the presence of which could subject the Bank or its successors and assigns to any liability under applicable state or Federal law or local ordinance either at any time that such property is pledged to the Bank or upon the enforcement by the
          Bank of its security interest therein. Borrower hereby agrees to indemnify and hold the Bank harmless against all costs, claims, expenses, damages, and liabilities resulting in any way from the presence or effects of any such toxic or hazardous
          substances or materials in, on, under, or emanating from any real property or interest in real property that is subject to or included in the Collateral or any other property in which the Borrower has granted a security interest in favor of the
          Bank.

    

    

      	
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      (e)          The exact legal name of Borrower, the type and jurisdiction of organization of Borrower, and the location of Borrower’s chief executive office, each as stated in the first paragraph of this Agreement is true, accurate, and complete.
          Except with thirty days’ prior written notice to the Bank, Borrower will not change its name, its type and jurisdiction of organization, or the location of its chief executive office.

    

    
      

      

      (f)          Borrower is in compliance with all laws, rules, regulations, and ordinances applicable to or binding upon Borrower or the Collateral, including, without limitation, the Truth in Lending Act and the Home Ownership and Equity
          Protection Act (and Regulation Z promulgated thereunder), Equal Credit Opportunity Act, Fair Credit Reporting Act, Fair Debt Collection Practices Act, Fair and Accurate Credit Transactions Act, Gramm-Leach-Bliley Financial Privacy Act,
          anti-discrimination and fair lending laws, and all other federal and state laws, regulations, orders, directives, or similar requirements intended for the protection of consumers in connection with the extension of consumer credit, except to the
          extent that the failure to comply therewith would not be reasonably expected to (i) subject the Bank or its successors and assigns to any liability under applicable state or federal law or local ordinance at any time that Borrower grants a
          security interest in such property in favor of the Bank, upon the enforcement by the Bank of its security interest therein, or at any other time or (ii) have a material adverse effect on (A) the condition (financial or otherwise), operations,
          business, assets, or liabilities of Borrower, (B) the ability of Borrower to perform any material obligation under this Agreement, or (C) the material rights and remedies of the Bank under this Agreement. Borrower hereby agrees to indemnify and
          hold the Bank harmless against all costs, claims, expenses, damages, and liabilities resulting in any way from Borrower’s failure to comply with any laws, rules, regulations, or ordinances applicable to or binding upon Borrower or the Collateral.

    

    
      

      

      SECTION 3.3. COLLATERAL
          MAINTENANCE REQUIREMENTS.

      

    

    
      (a)          Borrower shall at all times maintain as Collateral an amount of Qualifying Collateral that has a Fair Market Value that is at least equal to the Collateral Maintenance Level. Borrower shall not
          assign, pledge, transfer, create any security interest in, sell, or otherwise dispose of any Collateral or interest therein if: (i) such Collateral has been or is required to be specified pursuant to Section 3.4 hereof or is or is required to be
          held by or on behalf of the Bank pursuant to Section 3.5 hereof, or the Bank has otherwise perfected its security interest in such Collateral; or (ii) at the time of or immediately after such action, Borrower is not or would not be in compliance
          with the collateral maintenance requirements of the first sentence of this Section 3.3 (a) or there is any other Event of Default under this Agreement.

       

      (b)          Subject to the additional requirements set forth in Sections 3.4 and 3.5 hereof that may govern Collateral, Collateral shall be held by Borrower in trust for the
        benefit of, and subject to the direction and control of, the Bank and will be physically safeguarded by Borrower with at least the same degree of care as Borrower uses in physically safeguarding its other property, which shall be no less than the
        treatment employed by a reasonable and prudent agent in the industry. Without limitation of the foregoing, Borrower shall take all action necessary or desirable to protect and preserve the Collateral and the interest of the Bank therein, including,
        without limitation, the maintaining of Insurance on property securing First Mortgage Collateral (such policies and certificates of insurance or guaranty relating to such First Mortgage Collateral are herein called “Insurance”), the collection of
        payments under all mortgages and under all Insurance, and otherwise assuring that all mortgages are serviced in accordance with the standards of a reasonable and prudent servicer in the industry. Borrower, as agent for the Bank, shall collect all
        payments when due on all Collateral. If the Bank requires, Borrower shall hold all collections and other proceeds of Collateral separate from the other monies of Borrower and apply such collections to the reduction of Indebtedness as it becomes
        due; otherwise the Bank consents to the use and disposition by Borrower of all such collections in the ordinary course of Borrower’s business.

    

    
      

      

      
        	
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    SECTION 3.4. SPECIFICATION AND SEGREGATION OF COLLATERAL.

    
      

      

      (a)          Upon demand by the Bank, or promptly at any time that Borrower becomes subject to any mandatory collateral specification and segregation requirements that may be
        established in writing by the Bank, and in either case promptly after each valuation date established by the Bank, Borrower shall deliver to the Bank a status report and accompanying schedules, all in the form prescribed by the Bank, specifying and
        describing such amount of Qualifying Collateral as may be necessary so that the Fair Market Value of the Qualifying Collateral so specified meets or exceeds the Collateral Maintenance Level at all times. Each First Mortgage Note evidencing First
        Mortgage Collateral shall be endorsed by Borrower at such time as the Bank may request as follows: “Pay to the order of the Federal Home Loan Bank of Dallas.” All other First Mortgage Documents and documents representing Securities, Small Farm and
        Agri-Business Collateral, and Other Real Estate Related Collateral shall be marked and assigned to the Bank in the foregoing manner or in such other manner as shall be specified by the Bank.

       

      (b)          Borrower shall physically segregate and hold in trust any First Mortgage Collateral, Small Business Collateral, Small Farm and Agri-Business Collateral, and Other
        Real Estate Related Collateral specified in each status report or delivered pursuant to subsection (a) of this Section 3.4 from all other property of Borrower in a manner satisfactory to the Bank. Borrower shall hold each First Mortgage Document
        and each document, agreement, instrument, endorsement, and assignment evidencing Other Real Estate Related Collateral which is a part of such segregated Collateral in a separate file folder with each folder clearly labeled with the loan
        identification number and the name of the mortgagor. Borrower shall hold each document, agreement, instrument, endorsement, and assignment evidencing Small Business Collateral or Small Farm and Agri-Business Collateral which is a part of such
        segregated Collateral in a separate file folder with each file folder clearly labeled with the loan identification number and the name of the borrower. Each such file folder shall be clearly marked or stamped with the statement: “The Mortgage, Deed
        of Trust, or Security Agreement, as applicable, and the Note Relating to this Loan Have Been Assigned to the Federal Home Loan Bank of Dallas.”

    

    
      

      

      (c)          If requested by the Bank, Borrower shall provide, at its own expense, such certifications by an independent certified public accountant or by another party acceptable
        to the Bank as the Bank may request with respect to the compliance by Borrower with the terms of Sections 3.3 and 3.4. All Securities and, unless otherwise specified by the Bank, all other Collateral specified in such a status report shall be
        delivered to the Bank or to a custodian designated by the Bank, or in the case of uncertificated securities, transferred to the Bank in the manner specified in Section 3.5 hereto.

    

    
      

      

      
        	
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      SECTION 3.5. DELIVERY OF COLLATERAL.

    

    
      

      

      (a)          Upon demand by the Bank, or promptly at any time that Borrower becomes subject to any mandatory collateral delivery requirements that may be established in writing by
        the Bank, and in either case from time to time thereafter, Borrower shall deliver to the Bank, or to a custodian designated by the Bank, such Qualifying Collateral as may be necessary so that the Fair Market Value of Qualifying Collateral held by
        the Bank, or such custodian, meets or exceeds the Collateral Maintenance Level at all times. Collateral delivered to the Bank shall be endorsed or assigned in recordable form by Borrower to the Bank. Unless otherwise specified in writing by the
        Bank, such endorsements or assignments may be in blanket form provided that, in the case of First Mortgage Collateral, Small Business Collateral, Small Farm and Agri-Business Collateral, and Other Real Estate Related Collateral, there shall be
        separate endorsements and assignments for each county or recording district in which the real property secured by such First Mortgage Collateral, Small Business Collateral, Small Farm and Agri-Business Collateral, or Other Real Estate Related
        Collateral is located. Concurrently with the initial delivery under this Section 3.5 of Collateral and promptly after each subsequent valuation date established by the Bank, and at such other times as the Bank may request, Borrower shall deliver to
        the Bank a status report and accompanying schedules, all in the form prescribed by the Bank and dated as of the then most recent valuation date, describing the Collateral held by the Bank or its custodian.

       

      (b)          With respect to uncertificated securities pledged to the Bank as Securities or other property offered as collateral by Borrower to the Bank and as may be accepted by
        the Bank as collateral from time to time pursuant to the terms hereof, the delivery requirements contained in this Agreement shall be satisfied by the Bank becoming the registered owner of such securities or the issuer of such securities having
        agreed that it will comply with instructions originated by the Bank without further consent by Borrower, such transfer to be effected in such manner and to be evidenced by such documents as specified by the Bank.

    

    
      

      

      (c)          Borrower agrees to pay the Bank such reasonable fees and charges as may be assessed by the Bank to cover the overhead and other costs of the Bank relating to the
        receipt, holding, redelivery, and reassignment of Collateral, and to reimburse the Bank upon request for all recording fees and other reasonable expenses, disbursements, and advances incurred or made by the Bank in connection therewith, including
        reasonable compensation and the expenses and disbursements of any custodian that may be appointed by the Bank hereunder, and the agents and legal counsel of the Bank and of such custodians.

    

    
      

      

      SECTION 3.6. WITHDRAWAL OR REASSIGNMENT OF COLLATERAL. Upon approval by the Bank and receipt
        by the Bank of written documents in the form specified by the Bank constituting (i) a request from Borrower for the withdrawal or reassignment of Collateral that has been specified pursuant to Section 3.4 hereof or has been delivered pursuant to
        Section 3.5 hereof, or as to which the Bank has otherwise perfected its security interest, (ii) a detailed listing of the Collateral to be withdrawn or reassigned, and (iii) a certificate of a duly authorized officer of Borrower certifying that the
        Fair Market Value of the Qualifying Collateral that is specified and pledged to or will be held by the Bank, as appropriate, after such withdrawal or reassignment will not be less than the Collateral Maintenance Level, the Bank shall promptly
        redeliver or reassign to Borrower the Collateral specified in said certificate of such duly authorized officer. Notwithstanding anything to the contrary herein contained, while an Event of Default hereunder shall have occurred and be continuing,
        the Bank will not be required to honor any request for withdrawal or reassignment of any Collateral.

    

    
      

      

      
        	
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    SECTION 3.7. REPORTS, COLLATERAL AUDITS, AND ACCESS.

    
      

      

      (a)          If the Fair Market Value of Qualifying Collateral owned by Borrower, free and clear of any liens, security interests, or encumbrances other than any lien, security interest, or encumbrance in favor of the Bank, shall at any time
          fall below the Collateral Maintenance Level or if Borrower becomes aware of, or has reason to believe that a contingency exists, which with the lapse of time, giving of notice, or both could result in Borrower failing to maintain Qualifying
          Collateral in an amount that has a Fair Market Value at least equal to the Collateral Maintenance Level, Borrower shall immediately notify the Bank. Borrower shall furnish to the Bank annually and at such other times as the Bank may request, an
          audit report prepared by the Bank, if the Bank in its sole discretion chooses to prepare such audit report, or an external independent auditor of Borrower in accordance with generally accepted auditing standards certifying that Borrower owns,
          free and clear of any liens, security interests, or encumbrances, other than liens, security interests, or encumbrances in favor of the Bank, Qualifying Collateral with a Fair Market Value at least equal to the Collateral Maintenance Level. If
          Borrower is required to specify and pledge or deliver Collateral pursuant to Sections 3.4 and 3.5 hereof, such audit report shall refer only to such Qualifying Collateral that is so specified, pledged, delivered, or held by the Bank as of the
          date of such audit report. If requested by the Bank, Borrower shall furnish to the Bank a written report covering such matters regarding the Collateral as the Bank may require, including, without limitation: listings of First Mortgages and
          Securities and unpaid principal balances thereof; and certifications concerning the status of payments of First Mortgages and of taxes and Insurance on properties securing First Mortgages and Other Real Estate Related Collateral. If so requested
          by the Bank, Borrower shall promptly report to the Bank any event that reduces the principal balance of any First Mortgage or Security by five percent (5%) or more, whether by payment, prepayment, foreclosure sale, Insurance or guaranty payment,
          or otherwise. Borrower shall give the Bank access at all reasonable times to Collateral in the possession of Borrower and to the books and records of account of Borrower relating to such Collateral for the purpose of permitting the Bank to
          examine, verify, or reconcile the Collateral and the reports of Borrower to the Bank thereon.

    

    
      

      

      (b)          All Collateral and the maintenance by Borrower of Qualifying Collateral in an amount that has a Fair Market Value at least equal to the Collateral Maintenance Level shall be subject to audit and verification by or on behalf of the
          Bank. Such audits and verifications may occur without notice by the Bank during normal business hours of Borrower or upon reasonable notice at such other times as the Bank may reasonably request. Borrower shall provide access to, and shall make
          adequate working facilities available to, the representatives or agents of the Bank for the purposes of such audits and verifications. Borrower agrees to pay to the Bank such reasonable fees and charges as may be assessed by the Bank to cover
          overhead and other costs relating to such audits and verifications.

    

    
      

      

      SECTION 3.8. ADDITIONAL

          DOCUMENTATION. Borrower shall make, execute, record, and deliver to the Bank such financing statements, notices, assignments, listings, powers of attorney, and other instruments with respect to the Collateral and the security interest of
        the Bank therein all in such form as the Bank may require. To the extent permitted by applicable law, Borrower hereby irrevocably authorizes the Bank to file, in the name of Borrower or otherwise and without the signature or other separate
        authorization or authentication of Borrower appearing thereon, such UCC financing statements (including, without limitation, continuations and amendments) and in such jurisdictions as the Bank may deem necessary or appropriate to perfect or
        maintain the perfection of the security interest of the Bank. Borrower hereby irrevocably authorizes the Bank to file financing statements (including, without limitation, continuations and amendments) with respect to any Collateral describing the
        Collateral covered thereby as “all of the debtor’s personal property and assets” or words to similar effect, notwithstanding that such description may be broader in scope than the Collateral described in this Agreement. Borrower agrees that a
        photocopy, electronic or other reproduction of this Agreement or of a financing statement is sufficient as a financing statement. Borrower shall pay the cost of, or incidental to, any recording or filing of any financing statements (including,
        without limitation, continuations and amendments) or other assignment documents concerning the Collateral.

       

    

    
      	
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      SECTION 3.9. RESPONSIBILITY

          OF THE BANK AS TO COLLATERAL. The duty of the Bank as to the Collateral shall be solely to use reasonable care in the custody and preservation of the Collateral in its possession, which shall not include (i) any steps necessary to
        preserve rights against other parties with a prior position or (ii) the duty to send notices, perform services, or take any action in connection with the collection or management of the Collateral. The Bank shall not have any responsibility or
        liability for the form, sufficiency, correctness, genuineness, or legal effect of any instrument or document constituting a part of the Collateral, or any signature thereon or the description or misdescription or value of property represented, or
        purported to be represented, by any such document or instrument. Borrower agrees that any and all Collateral may be removed by the Bank from the state or location where situated, and may there be dealt with by the Bank as provided in this
        Agreement.

    

    
      

      

      SECTION 3.10. RIGHTS

          OF THE BANK AS TO COLLATERAL; POWER OF ATTORNEY. At any time or times, at the expense of Borrower, the Bank may in its sole discretion, before or after the occurrence of an Event of Default, in its own name or in the name of its nominee
        or of Borrower, do any or all things and take any and all actions that are pertinent to the protection of the interest of the Bank hereunder and that are lawful under the laws of the State of Texas or any other State or jurisdiction the laws of
        which shall apply to (i) the attachment and perfection of a security interest of the Bank hereunder or (ii) the enforcement of the Bank’s rights hereunder, including, but not limited to, the following:

    

    
      

      

      (a)          Terminate any consent given hereunder;

       

      (b)          Notify obligors on any Collateral to make payments thereon directly to the Bank;

       

      (c)          Endorse any Collateral in the name of Borrower;

    

    
      

      

      (d)          Enter into any extension, compromise, settlement, or other agreement relating to or affecting any Collateral;

    

    
      

      

      (e)          Take any action Borrower is required or permitted to take or that is otherwise necessary to (i) sign and record a financing statement or otherwise perfect a security interest in any or all
        of the Collateral; or (ii) obtain, preserve, protect, enforce, or collect the Collateral;

    

    
      

      

      (f)          Take control of any funds or other proceeds generated by the Collateral and use the same to reduce Indebtedness as it becomes due (or hold the same as additional Collateral); and

    

    
      

      

      (g)          Cause the Collateral to be transferred to the Bank’s name or the name of its nominee.

    

    
      

      

      Borrower hereby appoints the Bank as its true and lawful attorney, for and on behalf of Borrower and in its name, place and stead, to
        prepare, execute, and record endorsements and assignments to the Bank and its successors and assigns and grants to the Bank as such attorney full power and authority to do or perform every lawful act necessary or proper in connection therewith as
        fully as the Borrower might or could do. Borrower hereby ratifies and confirms all that the Bank shall lawfully do or cause to be done by virtue of this special power-of-attorney set forth in this Section 3.10. This special power-of-attorney is
        granted for a period commencing on the date hereof and continuing until the discharge of all Indebtedness and all obligations of Borrower hereunder regardless of any Event of Default, is coupled with an interest, and is irrevocable for the period
        granted.

         
        	
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      SECTION 3.11. SUBORDINATION

          OF OTHER LOANS TO COLLATERAL. Borrower hereby agrees that all First Mortgage Notes that are part of the First Mortgage Collateral and any notes securing personal property or other property (collectively, the “Pledged Notes”) shall have
        priority in right and remedy over any claims, however evidenced, for other loans, whenever made, that are secured by mortgages or security agreements on the property securing the Pledged Notes. The Pledged Notes shall be satisfied out of the
        property or proceeds thereof covered by such mortgages or security agreements before recourse to such property may be obtained for the repayment of such other loans. To this end, Borrower hereby subordinates the lien and security interests of such
        mortgages and security agreements with respect to such other loans to the lien and security interests of such mortgages and security agreements with respect to the Pledged Notes. Borrower further agrees to retain possession of any promissory notes
        evidencing such other loans and not to pledge, assign, or transfer the same, except that (if otherwise qualified) the same may be pledged to the Bank as part of the Collateral.

    

    
      

      

      SECTION 3.12. NOTARIAL

          ENSORSEMENTS AND PARAPHS OF PARAPHED NOTES; NOTES NOT PARAPHED. Borrower agrees that to the extent any Collateral consists of First Mortgage Notes or any other promissory notes delivered to the Bank that are payable to the order of
        Borrower and paraphed for identification with First Mortgages or any other mortgages also secured by property located in Louisiana (such First Mortgages and such other mortgages secured by property located in Louisiana, herein the “Louisiana
        Mortgages” and such First Mortgages Notes and other promissory notes that are secured by Louisiana Mortgages, herein the “Louisiana Notes”), then Borrower shall endorse such Louisiana Notes payable to the order of Bank (or bearer) pursuant to
        notarial acts of endorsement (“Notarial Endorsement”) and cause the notary public before whom the Notarial Endorsement is executed to paraph the various Louisiana Notes for identification with the Notarial Endorsement. The Notarial Endorsement
        shall be delivered to the Bank contemporaneously with the delivery of the Louisiana Notes.

    

    
      

      

      Borrower further agrees that to the extent any Collateral consists of Louisiana Notes that are not paraphed for
        identification with the Louisiana Mortgages and that are secured by Louisiana Mortgages, Borrower shall endorse such Louisiana Notes and shall execute an Assignment of Note and Mortgage in authentic form assigning the Louisiana Notes and all of
        Borrower’s interest in and to the Louisiana Mortgages to the Bank. The Assignment of Note and Mortgage shall be delivered to the Bank contemporaneously with the delivery of the Louisiana Notes.

      
        	
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      ARTICLE IV 

      DEFAULT; REMEDIES

      

    

    
      

      

      SECTION 4.1. EVENTS
          OF DEFAULT; ACCELERATION. Upon the occurrence of and during the continuation of any of the following events or conditions of default (“Event of Default”), the Bank may at its own option declare all Indebtedness and accrued interest
        thereon, including any prepayment fees and charges that are provided for in the event of the payment of an Advance before the date(s) scheduled for repayment, to be immediately due and payable without presentment, demand, protest, or any further
        notice:

    

    
      

      

      (a)          The failure of Borrower to pay when due the interest on or the principal of any Advance;

       

      (b)          The failure of Borrower to perform any promise or obligation or to satisfy any condition or liability contained herein, in any Confirmation of Advance, or in any other agreement to which
        Borrower and the Bank are parties;

    

    
      

      

      (c)          Evidence coming to the attention of the Bank that any representation, statement, or warranty made or furnished in any manner to the Bank by or on behalf of Borrower in connection with any
        Advance, any specification of Qualifying Collateral, or any certification of Fair Market Value was false in any material respect when made or furnished;

       

      (d)          The issuance of any tax levy, seizure, attachment, garnishment, levy of execution, or other legal process with respect to the Collateral;

       

      (e)          Any suspension of payment by Borrower to any creditor of sums due or the occurrence of any event that results in acceleration of the maturity of any indebtedness of Borrower to others
        under any obligation, security agreement, indenture, loan agreement, or comparable undertaking;

       

      (f)          The appointment of a conservator or receiver for Borrower or any subsidiary of Borrower or the property of Borrower; entry of an order for relief against Borrower or any subsidiary of
        Borrower under the federal bankruptcy laws; entry of a judgment or decree adjudicating Borrower or any subsidiary of Borrower insolvent; commencement of a case or other proceeding by or against Borrower or any subsidiary of Borrower seeking
        liquidation, reorganization, or other relief with respect to it or its debts under any bankruptcy, insolvency, or similar law now or hereafter in effect; or an assignment by Borrower or any subsidiary of Borrower for the benefit of creditors;

    

    
      

      

      (g)          The sale by Borrower of all or a material part of the assets of Borrower or the taking of any other action by Borrower to liquidate or dissolve;

    

    
      

      

      (h)          The cessation of Borrower to be a type of institution that is eligible under the Act to become a Borrower of the Bank; or in
        the case of member borrowers, termination of the membership of Borrower in the Bank;

    

    
      

      

      (i)            Merger, consolidation, or other combination of Borrower with an entity that is not a member of the Bank or is not otherwise
        eligible to borrow from the Bank if such non-member or non-eligible entity is the surviving entity;

    

    
      

      

      (j)           The Bank reasonably and in good faith determines that a material adverse change has occurred in the financial condition of
        Borrower from the time of the making of any Advance or from the condition of Borrower as theretofore most recently disclosed to the Bank; or

    

    
                

      

      
        	
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      (k) The Bank reasonably and in good faith deems itself insecure even though Borrower is not otherwise in default.

    

    
      

      

      SECTION 4.2. REMEDIES.

        Upon the occurrence of any Event of Default, the Bank shall have all of the rights and remedies provided by applicable law, which shall include, without limitation, all of the remedies of a secured party under the UCC. In addition, the Bank
        may take immediate possession of any of the Collateral or any part thereof wherever the same may be found. The Bank is irrevocably authorized to foreclose upon the Collateral, in whole or in part, and to thereupon cause such Collateral to be seized
        and sold under either executory or ordinary proceedings at the Bank’s sole option, without appraisal, in either its entirety or in lot. The Bank may sell, assign, and deliver the Collateral or any part thereof at public or private sale (at the sole
        option of the Bank), without recourse to judicial proceedings and without demand, appraisal, advertisement or notice of any kind, all of which are expressly waived to the fullest extent permitted by law, for such price as the Bank deems appropriate
        without any liability for any loss due to a decrease in the market value of the Collateral during the period held. The Bank shall have the right to purchase all or part of the Collateral at such public or private sale free of any right of
        redemption on the part of Borrower which right is expressly waived and released to the fullest extent permitted by law. If the Collateral includes insurance or securities that will be redeemed by the issuer upon surrender, or any accounts or
        deposits in the possession of the Bank, the Bank may realize upon such Collateral without notice to Borrower. If any notification of intended disposition of any of the Collateral is required by applicable law, such notification shall be deemed
        reasonable and properly given if mailed, postage prepaid, at least five (5) days before any such disposition to the principal address of Borrower appearing on the records of the Bank. The Bank shall be entitled to receive the proceeds from any sale
        of the Collateral by preference and priority over all other parties. The proceeds of any sale shall be applied in the order that the Bank, in its sole discretion, may choose. Borrower agrees to pay all costs and expenses of the Bank in the
        collection of the Indebtedness and enforcement of the rights and remedies of the Bank in case of default, including, without limitation, reasonable attorney’s fees. The Bank, at its discretion, may apply any surplus after payment of the
        Indebtedness, provision for repayment to the Bank of any amounts to be paid or advanced under Outstanding Commitments, and all costs of collection and enforcement to third parties, without recourse to the Bank, claiming a secondary security
        interest in the Collateral, with any remaining surplus paid to Borrower. Borrower shall be liable to the Bank for any deficiency remaining.

    

    
      

      

      ARTICLE V

      GENERAL REPRESENTATIONS AND WARRANTIES BY BORROWER

      

    

    
      

      

      SECTION 5.1. REPRESENTATIONS

          AND WARRANTIES. Borrower represents and warrants to the Bank, as of the date hereof and as of the date of each Advance hereunder, each of the following:

    

    
      

      

      (a) Borrower is not now, and neither the execution of nor the performance of any of the transactions or obligations of Borrower under this
        Agreement shall, with the passage of time, the giving of notice or otherwise, cause Borrower to be: (i) in violation of its charter or articles of incorporation, bylaws, the Act, the Regulations, any other law or administrative regulation or order,
        or any court decree; or (ii) in default under or in breach of any indenture, contract, or other instrument to which Borrower is a party or by which it or any of its property is bound.

    

    
      
        	
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      (b)          Borrower has full corporate power and authority and has received all corporate and governmental authorizations and approvals as may be required to enter into and perform its obligations
        under this Agreement and to borrow each Advance.

    

    
      

      

      (c)          The information given by Borrower in any document provided, or in any oral statement made, in connection with an application or request for an Advance, is true, accurate, and complete in
        all material respects.

    

    
      

      

      ARTICLE VI

      MISCELLANEOUS

      

    

    
      

      

      SECTION 6.1. ASSIGNMENT.

        Borrower hereby gives the Bank the full right, power, and authority to pledge, assign, or negotiate to any person or entity, with or without recourse, all or any part of the Indebtedness or participations therein, and to the extent permitted
        by law, the Bank may assign or transfer all or any part or right, title, and interest of the Bank in and to this Agreement and may assign and deliver the whole or any part of the Collateral to the transferee, which shall succeed to all of the
        powers and rights of the Bank in respect thereof, and the Bank shall thereafter be forever relieved and fully discharged from any liability or responsibility with respect to the transferred Collateral. In the event of any such pledge or assignment,
        all references herein to the “Bank” shall be read to refer also to the pledgee or assignee, as the case may be. Borrower may not assign or transfer any of its rights or obligations hereunder without the express prior written consent of the Bank.

      SECTION 6.2. CONFESSION

          OF JUDGMENT. Borrower hereby confesses judgment in favor of Bank, or any future holder or holders of any Collateral, up to the full amount of the Indebtedness including, principal, interest, attorney’s fees, and any sums or expenditures
        that may be advanced or incurred during the life of this Agreement for the payment of insurance, taxes, or any amounts expended for the protection and preservation of the Collateral.

    

    
      

      

      SECTION 6.3. DISCRETION

          OF THE BANK TO GRANT OR DENY ADVANCES AND COMMITMENTS. Nothing contained herein or in any documents describing or setting forth the credit program or policy of the Bank shall be construed as an agreement or commitment on the part of the
        Bank to grant Advances or extend commitments hereunder, the right and power of the Bank in its discretion to either grant or deny any Advance or commitment requested hereunder being expressly reserved.

    

    
      

      

      SECTION 6.4. AMENDMENT;

          WAIVERS. No modification, amendment, or waiver of any provision of this Agreement or consent to any departure therefrom shall be effective unless executed by the party against whom such change is asserted and shall be effective only in
        the specific instance and for the purpose for which given. “Executed” as used in this Section 6.4 means that a person has signed or executed or otherwise adopted a symbol, or encrypted or similarly processed a record in whole or in part, with the
        present intent of the authenticating person to identify the person and to adopt or accept a record on behalf of Borrower. No notice to or demand on Borrower in any case shall entitle Borrower to any other or further notice or demand in the same or
        similar or other circumstances. Any forbearance, failure, or delay by the Bank in the exercise of any right, power, or remedy hereunder shall not be deemed to be a waiver thereof, and any single or partial exercise by the Bank of any right, power,
        or remedy hereunder shall not preclude the further exercise thereof. Without limiting the generality of Section 6.3 or the foregoing provisions of this Section 6.4, the making of any Advance after the occurrence or during the continuance of an
        Event of Default (whether or not known to the Bank) shall not be deemed to be a waiver of such Event of Default or any right, power, or remedy hereunder and shall not preclude the further exercise thereof. Every right, power, and remedy of the Bank
        shall continue in full force and effect until specifically waived by the Bank in writing.

    

    
      

      

      
        	
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      SECTION 6.5. JURISDICTION;

          LEGAL FEES. In any action or proceeding brought by the Bank or Borrower in order to enforce any right or remedy under this Agreement, the parties hereby consent to, and agree that they will either (i) submit to the jurisdiction of the
        United States District Court for the Northern District of Texas or, if such action or proceeding may not be brought and maintained in such court, the jurisdiction of an appropriate District Court for the State of Texas, County of Dallas, or (ii) if
        the parties mutually agree, submit any disagreement arising out of this Agreement to arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association, in effect from time to time. Borrower agrees that if any
        action or proceeding is brought by Borrower seeking to obtain any legal or equitable relief against the Bank under or arising out of this Agreement or any transaction contemplated hereby, and such relief is not granted by the final decision, after
        judgment of any and all appeals has been entered or the time period to appeal a decision has expired, of a court of competent jurisdiction, Borrower shall pay all attorneys’ fees and other costs incurred by the Bank in connection therewith.

      SECTION 6.6. NOTICES.

        Except as otherwise provided for in this Agreement, any notice, advice, request, consent, or direction given, made, or withdrawn pursuant to this Agreement shall be given in writing or by a transmission in electronic or other form, and shall
        be deemed to have been duly given to and received by a party hereto when it shall have been mailed to such party at its address given above by first class mail, or if given by hand or by a transmission in electronic or other form when actually
        received by such party at its principal office, chief executive office, or as otherwise designated. Any notice by the Bank to Borrower pursuant to Section 3.4(a) or 3.5(a) hereof may be oral and shall be deemed to have been duly given to and
        received by Borrower at the time of the oral communication.

    

    
      

      

      SECTION 6.7. TAPE
          RECORDING. Borrower consents and agrees that all telephone conversations or data transmissions between Borrower and its agents and the Bank may be recorded and retained by either party by use of any reasonable means. Borrower agrees to
        indemnify and hold the Bank harmless against any and all liability that the Bank may incur as a result of such recordings.

      SECTION 6.8. PRIVACY.

        The Bank shall use and disclose nonpublic personal information (as defined in the Gramm-Leach-Bliley Act and related regulations) received from Borrower only to the extent necessary to allow the Bank to provide Borrower the products and
        services offered by the Bank or to the extent covered by a statutory exception authorized by the Gramm-Leach-Bliley Act and related regulations.

    

    
      

      

      SECTION 6.9. SIGNATURE

          OF BORROWER. The Secretary, Assistant Secretary, Cashier, or Assistant Cashier of Borrower shall from time to time certify to the Bank on forms provided by the Bank the names and specimen signatures of the persons authorized to apply on
        behalf of Borrower to the Bank for Advances and otherwise act for and on behalf of Borrower in accordance with this Agreement. Such certifications are incorporated herein and made a part of this Agreement and shall continue in effect until
        expressly revoked by Borrower, notwithstanding that subsequent certifications may authorize additional or different persons to act for and on behalf of Borrower.

    

    
      	
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    SECTION 6.10. APPLICABLE LAW; SEVERABILITY. IN ADDITION TO THE TERMS
      AND CONDITIONS SPECIFICALLY SET FORTH HEREIN AND IN ANY CONFIRMATION OF ADVANCE BETWEEN THE BANK AND BORROWER, THIS AGREEMENT AND ALL ADVANCES GRANTED AND COMMITMENTS EXTENDED UNDER THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF TEXAS,
      WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PRINCIPLES INCLUDED THEREIN. NOTWITHSTANDING THE FOREGOING, THE UCC, WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PRINCIPLES INCLUDED THEREIN, SHALL BE DEEMED APPLICABLE TO THIS AGREEMENT AND TO ANY ADVANCE
      HEREUNDER AND SHALL GOVERN THE ATTACHMENT AND PERFECTION OF ANY SECURITY INTEREST GRANTED HEREUNDER. IN THE EVENT THAT ANY PORTION OF THIS AGREEMENT CONFLICTS WITH APPLICABLE LAW, SUCH CONFLICT SHALL NOT AFFECT ANY OTHER PROVISION OF THIS AGREEMENT
      THAT CAN BE GIVEN EFFECT WITHOUT THE CONFLICTING PROVISION, AND TO THIS END THE PROVISIONS OF THIS AGREEMENT ARE DECLARED TO BE SEVERABLE.

    
      

      

      SECTION 6.11. SUCCESSORS

          AND ASSIGNS. This Agreement shall be binding upon and inure to the benefit of the authorized and permitted successors and assigns of Borrower and the Bank.

    

    
      

      

      SECTION 6.12. ENTIRE

          AGREEMENT; AMENDMENT AND RESTATEMENT. THIS AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES HERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR (INCLUDING, WITHOUT LIMITATION, THE EXISTING AGREEMENT, IF ANY, AS DEFINED
        BELOW), CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES HERETO. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES HERETO. To the extent Borrower and the Bank have entered into an Advances, Specific Collateral Pledge and
        Security Agreement with Blanket Floating Lien, an Advances, Collateral Pledge and Security Agreement with Delivery, or an Advances, Collateral Pledge and Security Agreement prior to the date hereof (the “Existing Agreement”), (a) this Agreement
        amends and restates in its entirety the Existing Agreement, (b) this Agreement does not extinguish the indebtedness, liabilities, and obligations of Borrower outstanding in connection with the Existing Agreement nor does it constitute a novation
        with respect to such indebtedness, liabilities, and obligations of Borrower, (c) all indebtedness, liabilities, and obligations of Borrower under the Existing Agreement are renewed and continued and hereafter shall be payable in accordance with
        this Agreement; provided, however, for matters relating to the accrual and payment of interest and fees and relating to indemnification arising prior to the effective date of this Agreement, the terms of the Existing Agreement shall control and are
        hereby ratified and confirmed, (d) this Agreement shall not result in or constitute a waiver of or a release, discharge, or forgiveness of any amount payable pursuant to the Existing Agreement, (e) all security interests and liens previously
        granted by Borrower pursuant to the Existing Agreement are hereby renewed and continued, and all such security interests and other liens shall remain in full force and effect as security for all indebtedness, liabilities, and obligations of
        Borrower to the Bank, (f) any default thereunder shall constitute an Event of Default hereunder, and (g) Collateral furnished pursuant to this Agreement shall also secure all indebtedness, liabilities, and obligations of Borrower to the Bank under
        the Existing Agreement.

      
        	
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      SECTION 6.13. MAXIMUM

          RATE. No interest rate specified in this Agreement shall at any time exceed the maximum rate of nonusurious interest under applicable law that the Bank may charge Borrower (the “Maximum Rate”). In the event the Bank ever receives,
        collects, or applies as interest any sum which is in excess of the Maximum Rate, such amount which would be in excess of the Maximum Rate shall be applied as a payment and reduction of the principal of the Advances; and, if the principal of the
        Advances has been paid in full, any remaining excess shall forthwith be paid to Borrower. In determining whether or not the interest paid or payable exceeds the Maximum Rate, Borrower and the Bank shall, to the extent permitted by applicable law,
        (a) characterize any non-principal payment as an expense, fee, or premium rather than as interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount
        of interest throughout the entire contemplated term of the Advances so that interest for the entire term does not exceed the Maximum Rate.

    

    
      

      

      SECTION 6.14. CAPTIONS

          AND HEADINGS. The captions and headings in this Agreement are for convenience only and shall not be considered a part of or affect the construction or interpretation of any provision of this Agreement.

    

    
      

      

      SECTION 6.15. FURTHER

          ASSURANCES. Borrower shall execute such additional documents and take such other actions as the Bank may reasonably request to effectuate the intent of this Agreement.

    

    
      

      

      SECTION 6.16. EXECUTION.

        This Agreement may be executed in any number of counterparts, on telecopy counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together
        shall constitute one and the same agreement.

    

    
      	
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      In Witness
          Whereof, Borrower and the Bank, each acting through its respective duly authorized representative(s), have caused this Agreement to be signed in their names and delivered as of the date first above written.

    

    
      

      

      
        	
                T Bank N.A.

              	 
	
                Full Corporate Name of Borrower

              	 
	 	 
	
                12-31

              	 
	
                Fiscal Year End

              	 
	 	 
	
                Patrick Adarus

              	 
	
                Authorized Signature

              	 
	 	 
	
                Patrick Adarus President

              	 
	
                Typed Name & Title of Signer

              	 
	 	 
	
                Sue Higgs

              	 
	
                Authorized Signature

              	 
	 	 
	
                Sue Higgs, CFO
                  & CASHIER

              	 
	
                Typed Name & Title of Signer

              	 
	 	 

      

      
        	
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      FEDERAL HOME LOAN BANK OF DALLAS

      
        	/s/ Michael Sims

              	 
	 Authorized Signature	 
	 	 
	Michael Sims, SVP 

              	 
	
                Typed Name & Title of Signer

              	 
	 	 
	/s/ Nancy Parker

              	 
	
                Authorized Signature

              	 
	 	 
	Nancy Parker, SVP

              	 
	
                Typed Name & Title of Signer

              	 
	 	 

      

      
        	
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