Document:

abtx-ex102_7.htm

Exhibit 10.2

ALLEGIANCE BANCSHARES, INC.

2019 AMENDED AND RESTATED

EMPLOYEE STOCK PURCHASE PLAN

 

 

Allegiance Bancshares, Inc., a Texas corporation (the "Company"), adopted and subsequently amended the Allegiance Bancshares, Inc. Employee Stock Purchase Plan, effective as of November 15, 2011 (the “2011 Plan”).  The 2011 Plan was amended and restated by the Board as the Allegiance Bancshares, Inc. 2019 Amended and Restated Employee Stock Purchase Plan (the “Plan”) on January 24, 2019, subject to approval by the Company's shareholders.

 

1.Purpose.  The purpose of the Plan is to encourage and enable eligible employees of Allegiance Bancshares, Inc. and its designated Subsidiaries to acquire proprietary interests in the Company (as defined below) through the ownership of Stock (as defined below) in order to establish a closer identification of their interests with those of the Company by providing them with another and more direct means of participating in its growth and earnings which, in turn, will provide motivation for participating employees to remain in the employ of and to give greater effort on behalf of their Employers (as defined below).  It is the intention of the Company that the Plan qualify as an "employee stock purchase plan" under Section 423 of the Code (as defined below).  The provisions of the Plan shall, accordingly, be construed so as to extend and limit participation in a manner consistent with the requirements of that Section of the Code.

 

2.Definitions.  Unless the context clearly requires a different meaning, the following words or terms, when used herein, shall have the following respective meanings:

 

(a)"Account" means the brokerage account maintained for each Participant under the Plan by the Plan Administrator.

 

(b)"Board" means the Board of Directors of the Company.

 

(c)"Code" means the Internal Revenue Code of 1986, as amended.

 

(d)"Committee" means the Compensation Committee of the Board.

 

(e)"Company" means Allegiance Bancshares, Inc. and its successors.

 

(f)"Date of Purchase" means the last day of each Purchase Period, on which date Stock for such Purchase Period shall be purchased.

 

(g)"Eligible Employee" means any Employee except for the following:

 

(1)an Employee who would, immediately upon enrollment or re-enrollment in the Plan, own directly or indirectly five percent or more of the total combined voting power or value of all classes of stock of the Company or any Subsidiary. 

 

(2)an Employee whose customary employment is twenty (20) hours or less per week; and

 

(3)an Employee whose customary employment is for not more than five (5) months in any calendar year; 

 

For purposes of the determination in clause (1) above, (i) the Employee shall be deemed to own stock attributed to him or her under the attribution rules of Section 424(d) of the Code; and (ii) the Employee shall be considered to own any stock that the Employee could purchase through the exercise of any option or right to acquire stock held by the Employee (including a right to acquire stock under this Plan).  Notwithstanding the foregoing, the Committee may exclude from participation in the Plan or any Purchase Period Employees who are "highly compensated employees" of an Employer (within the meaning of Section 414(q) of the Code) or a sub-set of such highly compensated employees.

 

 

 

 

(h)"Employee" means an individual regularly employed by an Employer.  "Employee" shall not include a non-employee director of the Company.  Whether an individual qualifies as an Employee shall be determined by the Committee, in its sole discretion. The Committee shall be guided by the provisions of Treasury Regulation Section 1.421-1(h) and Section 3401(c) of the Code and the Treasury Regulations thereunder, with the intent that the Plan cover all "employees" within the meaning of those provisions other than those who are not eligible to participate in the Plan.

 

(i)"Employer" means the Company and its Subsidiaries that are designated from time to time by the Board as covered by the Plan, as the employer of an Employee.  As used in this Plan, the term "Employer" means collectively the Company and all such designated Subsidiaries, unless the context requires a different meaning.  The Board may designate the Employers from time to time from among a group consisting of the Company and its Subsidiaries, including corporations that become Subsidiaries after the adoption and approval of the Plan.

 

(j)"Enrollment Deadline" means, for each Purchase Period, the last day after  the beginning of such Purchase Period on which it is administratively feasible to process payroll deduction elections to be effective for the first payroll period during the Purchase Period, unless the Committee establishes a different Enrollment Deadline for a particular Purchase Period.

 

(k)"Enrollment Form" means a statement signed by an Eligible Employee on a form provided by the Plan Administrator, or an election made through applicable electronic procedures, indicating the Eligible Employee elects to become a Participant and authorizing a payroll deduction for the purchase of Stock pursuant to the Plan.

 

(l)"Exchange Act" means the U.S. Securities Exchange Act of 1934, as amended.

 

(m)"Fair Market Value" of Stock on a particular date means the closing sales price of Stock on the exchange on which such stock is traded on that date, or if no prices are reported on that date, on the last preceding date on which such prices of Stock are so reported.  If Stock is not traded on such exchange at the time a determination of its Fair Market Value is required to be made hereunder, its Fair Market Value shall be deemed to be equal to the average between the closing bid and ask prices of Stock on the most recent date Stock was publicly traded.  In the event Stock is not publicly traded at the time a determination of its Fair Market Value is required to be made hereunder, the determination of its Fair Market Value shall be made by the Committee in such manner as it deems appropriate.

 

(n)"Participant" means an Eligible Employee who enrolls in the Plan in accordance with the provisions of Section 8 herein and who is currently making payroll deductions for the purchase of Stock.  "Active Participant" shall also include an individual on a long-term leave of absence who has made arrangements to continue payment of contributions as described in Section 11.

 

(o)"Plan" means this Allegiance Bancshares, Inc. 2019 Amended and Restated Employee Stock Purchase Plan, as it may be amended from time to time.

 

(p)"Plan Administrator" means the Plan Administrator appointed by the Board to administer this Plan.  The Plan Administrator shall initially be Computershare.

 

(q)"Plan Supervisor" means the person(s) designated pursuant to Section 4 herein to assist Employees and/or Participants in Plan matters.

 

(r)"Purchase Period" means the period set forth in Section 5.

 

(s)"Purchase Price" means the price at which Stock shall be purchased, as set forth in Section 10.

 

 

 

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(t)"Securities Act" means the Securities Act of 1933, as amended.

 

(u)"Stock" means the common stock of the Company, $ 1.00 par value.

 

(v)"Subsidiary" means any "subsidiary corporation" of the Company, as defined in Code Section 424(f).

 

3.Number of Shares of Stock Under the Plan.  Subject to adjustment in accordance with Section 17, a total of 200,000 shares of Stock (inclusive of shares sold under the Plan prior to the Effective Date) may be sold to Eligible Employees under this Plan.  The Stock subject to this Plan shall consist of authorized but unissued Stock or previously issued Stock reacquired and held by the Company, and such number of shares of Stock shall be and is hereby reserved for sale for such purpose.  

 

4.Administration of the Plan.  

 

(a)This Plan shall be administered by the Plan Administrator.  The Plan Administrator is vested with full authority to administer the Plan with respect to Participants' Accounts.  The Committee is vested with full authority to administer payroll deductions under the Plan, to interpret the Plan, to make, interpret, amend and rescind such equitable rules and regulations regarding this Plan as it may deem advisable, and to make all other determinations deemed necessary or advisable for the operation of this Plan.

 

(b)To aid in fulfilling its responsibilities, the Committee may appoint one or more Plan Supervisors and the Committee may allocate to each person so appointed certain limited responsibilities to carry out the directives of the Committee in all phases of the operation of the Plan. Specifically, the Committee may delegate to such agent or agents any of its authority under the Plan except its authority to construe and interpret the provisions of the Plan.

 

(c)All actions taken by the Plan Administrator, and all actions taken, and all interpretations and determinations made by the Committee and the Plan Supervisor (including determinations of fair market value) shall be final and binding upon Employees, Participants, the Company and all other interested persons.  Neither the Plan Administrator nor any member of the Committee nor the Plan Supervisor shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan, and all members of the Committee and the Plan Supervisor shall be fully protected by the Company with respect to any such action, determination or interpretation.

 

(d)The Committee may act by a majority vote at a regular or special meeting of the Committee or by decision reduced to writing and signed by a majority of the Committee without holding a formal meeting.  Vacancies in the membership of the Committee arising from death, resignation or other inability to serve shall be filled by appointment by the Board.

 

(e)The Company will pay all expenses incident to establishing and administering the Plan and purchasing or issuing Stock, provided that Participants will pay all costs associated with the issuance of certificates for Stock and all costs incurred in selling, disposing of, or transferring Stock acquired under the Plan, including transfers to a brokerage account or a direct registration system.

 

5.Purchase Period.  The Plan will be implemented by Purchase Periods, the commencement and duration of which shall be determined by the Board, provided that no Purchase Period may exceed 27 months.  More than one Purchase Period may be in effect at any one time.  Except for the limitation in Section 6, participation in any Purchase Period under the Plan shall neither limit nor require participation in any other Purchase Period.  The Board may, at any time and for any reason, terminate a Purchase Period, in which case all accumulated payroll deductions during such Purchase Period shall, in the Board's discretion, be refunded to the Participants or used to purchase shares of Stock with the date of termination as the Date of Purchase.

 

6.Number of Shares of Stock Which May Be Purchased.  

 

 

 

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(a)Each Participant shall be allowed to purchase as many shares of Stock as the amount of his accrued payroll deductions at the end of each Purchase Period can purchase, not to exceed the number of shares of Stock determined by dividing the total sum of his authorized payroll deductions for the Purchase Period by the Purchase Price per share of Stock (as set forth in Section 10).  Notwithstanding the foregoing, the minimum number of shares of Stock that may be purchased by an Employee during a Purchase Period is 50, and the maximum number of shares of Stock that may be purchased by an Employee during a Purchase Period is 500.  Further, no Employee shall be granted an option to purchase Stock under this Plan which permits his rights to purchase stock under all employee stock purchase plans of the Company and its Subsidiaries to accrue at a rate which exceeds in any one calendar year $25,000 of the fair market value of the stock determined as of the date the right to purchase is granted.  

 

(b)In the event the total number of shares of Stock to be purchased pursuant to all Enrollment Forms with respect to a Purchase Period exceeds the available shares of Stock pursuant to Section 3, the Committee reserves the right to allocate the number of shares of Stock which Participants may purchase in such manner as it deems fair and equitable, and notify each Participant of such allocation.

 

7.Grant of Option on Enrollment.

 

(a) Enrollment by a Participant in the Plan will constitute the grant by the Company to the Participant of an option to purchase shares of Stock from the Company under the Plan.

 

(b)Each option granted under the Plan shall have the following terms, in addition to other terms set forth herein:

(1)Each option granted under the Plan will have a term of not longer than the length of the Purchase Period; notwithstanding the foregoing, however, whether or not all shares have been purchased thereunder, the option will expire on the earlier to occur of (A) the completion of the purchase of shares on the Date of Purchase, or (B) the date on which the Participant's employment with the Employer terminates;

 

(2)Payment for shares purchased under the option will be made only through payroll withholding in accordance with Section 8;

 

(3)Purchase of shares upon exercise of the option will be effected only on the Date of Purchase in accordance with Section 9;

 

(4)The Purchase Price per share under the option will be
determined as provided in Section 10;

 

(5)Subject to adjustment in accordance with Section 17 and the limits set forth in Section 6, the number of shares available for purchase under an option will be determined by dividing (i) such Participant's payroll deductions accumulated during the Purchase Period as of the Date of Purchase by (ii) the applicable Purchase Price determined in accordance with Section 10; 

 

(6) The option will in all respects be subject to the terms and conditions of the Plan, as interpreted by the Committee, in its sole discretion, from time to time. 

8.Participation in the Plan; Payroll Deductions.

 

(a)An Eligible Employee may enroll in the Plan and become a Participant for a Purchase Period by completing an Enrollment Form designating a dollar amount of payroll deductions and filing it with the Plan Administrator no later than the Enrollment Deadline for such Purchase Period.  An Eligible Employee must affirmatively enroll for each Purchase Period under the Plan, as payroll deduction elections will not carryover from one Purchase Period to the next.  An individual who first becomes an Eligible Employee (including a newly hired or re-hired Employee) after the Enrollment Deadline may not enroll in 

 

 

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the Plan for such Purchase Period.  No Enrollment Form shall be honored for a Purchase Period with respect to any individual who is not an Eligible Employee as of the Enrollment Deadline for such Purchase Period.  An Eligible Employee who timely files an Enrollment Form for a Purchase Period will become a Participant and payroll deductions shall commence with the first payroll period in the Purchase Period.  Once an Eligible Employee has enrolled in the Plan for a Purchase Period, he will remain a Participant for such Purchase Period until (i) he discontinues his payroll deductions as provided below, or (ii) he ceases to be an Eligible Employee.  A Participant who has discontinued his payroll deductions for a Purchase Period may not re-enroll in the Plan for such Purchase Period.  A Participant who ceases to be an Eligible Employee during a Purchase Period and again becomes an Eligible Employee during the same Purchase Period may not re-enroll in the Plan for such Purchase Period. 

 

(b)Payroll deductions for an Active Participant shall be made through the end of each Purchase Period unless sooner discontinued or terminated as provided in Sections 5, 8(e), 11 or 30 herein.  Payroll deductions shall be specified in after-tax dollar amounts. Such deductions shall be taken in conformity with the Employer's payroll deduction schedule.  Except as provided in Section 11, there shall be no rights of prepayment or payment of funds to be used for the purchase of Stock pursuant to the Plan through means other than payroll deductions.

 

(c)Payroll deductions for each Participant shall be made by the Employer and provided to the Plan Administrator as provided herein.

 

(d)A Participant may, no more than once during a Purchase Period, decrease the amount of his payroll deductions under his Enrollment Form (within the limitations set forth in Section 6), by completing and filing a new Enrollment Form with the Plan Administrator.  If a Participant decreases his payroll deductions to zero, he or she will be deemed to have discontinued payroll deductions and will be subject to paragraph (e) below.  A decrease in payroll deductions shall be prospective only and effective as soon as practicable.  Payroll deductions elected by a Participant for a Purchase Period shall remain in effect until the end of the Purchase Period or until such Participant changes or discontinues the payroll deductions or ceases to be an Eligible Employee.

 

(e)A Participant may discontinue his payroll deduction at any time during a Purchase Period by filing the prescribed form with the Plan Administrator.  Such change shall be prospective only and effective as soon as practicable.  Once discontinued, the Participant may not resume payroll deductions for the same Purchase Period.  All amounts deducted to the date of discontinuance will be refunded to the Participant.  If, prior to the last day of a Purchase Period, a Participant ceases to be an Eligible Employee but does not terminate employment with the Company or a Subsidiary, the Participant shall be treated as if he has discontinued his payroll deductions in accordance with this paragraph, and such Participant may not re-enroll in the Plan until he has again become an Eligible Employee.

 

9.Purchase of Stock.  Except as provided in Section 5, 8(e), 11 or 30, on the Date of Purchase, accrued payroll deductions made for each Participant for a Purchase Period will be applied to the purchase of Stock, at the Purchase Price determined under Section 10.  Any amounts representing a fractional share that are withheld but not applied toward the purchase of Stock during a Purchase Period shall be refunded to the Participant.  In no event shall any right to purchase Stock under the Plan be exercised for more than the available number of shares of Stock, and, after the available shares of Stock have been purchased, any remaining balance of any amount previously collected from Participants shall be refunded.  The Stock purchased by a Participant shall be deposited into the Participant's Account.  The Committee may require that the shares of Stock be retained in the Participant's Account for a specified period of time.

 

10.Purchase Price.  The Purchase Price per share of Stock for a Purchase Period shall be an amount equal to the lesser of (i) eighty-five percent (85%) (or such greater percentage as designated by the Committee) of the Fair Market Value of a share of Stock on the first day of the Purchase Period or (ii) eighty-five percent (85%) (or such greater percentage as designated by the Committee) of the Fair Market Value of a share of Stock on the Date of Purchase; provided, that the Purchase Price per share of Stock will in no event be less than the par value of the Stock.

 

 

 

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11.Termination of Employment; Leave of Absence.  

 

(a)If, prior to the last day of a Purchase Period, a Participant ceases to be employed by the Employer for any reason (including death, voluntary resignation, retirement or involuntary termination, with or without cause), his Enrollment Form shall be deemed to have been canceled, effective immediately.  The Participant's payroll deductions made but not yet used for purchases will be distributed in cash to the Participant (or his estate or beneficiary, as applicable in the case of death) as soon as practicable after his termination of employment.  

 

(b)If, prior to the last day of a Purchase Period, a Participant ceases to be actively employed because he commences a long-term leave of absence, then any accrued payroll deductions under the Plan during the Purchase Period to the date the Participant ceases to be actively employed shall be applied to the purchase of Stock for the Purchase Period on the Date of Purchase.  Subject to any applicable rules or regulations established by the Plan Administrator, the Participant shall be entitled to elect to continue to participate in the Plan until his employment terminates, provided the Participant makes the necessary arrangements with the Employer and/or the Plan Administrator to pay the requisite amounts that would, but for the leave of absence, be paid under the Plan through the Participant's payroll deductions.  For purposes of this paragraph, "long-term leave of absence" means a leave of absence agreed to in writing by the Employer (i) which is for a period of not more than six (6) months, or (ii) with respect to which reemployment upon expiration of such leave is guaranteed by contract or applicable law.

 

12.Interest on Payments.  No interest shall accrue or be paid on sums withheld from a Participant's pay for the purchase of Stock or with respect to any amount credited to a Participant's Account.

 

13.Rights as Shareholder.  No Participant shall have any rights of a shareholder with respect to any shares of Stock until the shares have been purchased in accordance with Section 9 and issued by the Company, at which time the Participant will be treated as the owner of such shares.

 

14.Rights Not Transferable.  A Participant's rights to purchase Stock pursuant to this Plan may not be sold, pledged, assigned or transferred in any manner (other than by will, the laws of descent and distribution, or as provided in Section 15), and shall be exercisable only during the Participant's lifetime and only by the Participant.  If this provision is violated, the right of the Participant to purchase Stock shall terminate and the only right remaining to such Participant under the Plan will be to have paid over to the person entitled thereto the amount of accrued payroll deductions then credited to such Participant.

 

15.Designation of Beneficiary. A Participant may file, on forms supplied by the Committee, a written designation of beneficiary who is to receive any shares of Stock and cash in respect of any fractional shares of Stock, if any, from the Participant's Account under the Plan in the event of such Participant's death. In addition, a Participant may file a written designation of beneficiary who is to receive any cash withheld through payroll deductions with respect to the Participant in the event of the Participant's death prior to the Purchase Date of a Purchase Period.

 

16.Purchase Period Limitation.  In no event shall a Participant be permitted to complete payment for Stock after the expiration of the Purchase Period with respect to which such Stock is purchased.

 

17.Changes in Capitalization.

 

(a)The existence of the Plan and the rights to purchase Stock hereunder shall not affect in any way the right or power of the Board or the Company's shareholders to make or authorize any adjustment, recapitalization, reorganization or other change in the Company's capital structure or its business, any merger or consolidation of the Company, any issue of debt or equity securities ahead of or affecting Stock or the rights thereof, the dissolution or liquidation of the Company or any sale, lease, exchange or other disposition of all or any part of its assets or business or any other corporate act or proceeding.

 

(b)In the event of any merger, reorganization, consolidation, sale of substantially all assets, recapitalization, stock dividend, stock split, spin-off, split-up, split-off, distribution of assets or other change 

 

 

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in corporate structure affecting the Stock such that an adjustment is determined by the Committee in its discretion to be appropriate, after considering any accounting impact to the Company, in order to prevent dilution or enlargement of benefits under the Plan, then the Committee shall, in such a manner as it may in its discretion deem equitable, adjust any or all of (i) the aggregate number and kind of shares of Stock reserved for issuance under the Plan, and (ii) the number and kind of shares which may be purchased by any individual in any Purchase Period.  In the event of any merger, reorganization, consolidation, sale of substantially all assets, recapitalization, stock dividend, stock split, spin-off, split-up, split-off, distribution of assets or other change in corporate structure affecting the Stock subject to this Plan, the number and kind of shares of Stock or other securities which are subject to this Plan or subject to any outstanding offering hereunder, the number of shares of Stock to be purchased, and the Purchase Price, shall be appropriately and equitably adjusted by the Committee so as to maintain the proportionate number of shares of Stock or other securities without changing the aggregate Purchase Price.

 

(c)Except as hereinbefore expressly provided, the issuance by the Company of Stock of any class or securities convertible into Stock of any class, for cash, property, labor or services, upon direct sale, upon the exercise of rights or warrants to subscribe therefor, or upon conversion of Stock or obligations of the Company convertible into Stock or other securities, and in any case whether or not for fair value, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Stock to be purchased for a Purchase Period or the Purchase Price per share of Stock.

 

18.Change in Control. 

 

(a)In the event of a Change in Control, the Committee shall provide for the assumption or substitution of each option to purchase Stock under the Plan by the successor or surviving corporation, or a parent or subsidiary thereof, unless the Committee decides to take such other action as it deems appropriate, including, without limitation, providing for the termination of the Plan in accordance with Section 30, or a termination of the Plan and providing for a Date of Purchase to occur on the date determined by the Committee.

 

(b)A "Change in Control" shall be deemed to occur on the date on which any of the following events occurs:

 

(1)the Company shall not be the surviving entity in any merger, consolidation or other reorganization (or survives only as a subsidiary of an entity other than a previously wholly‐owned subsidiary of the Company);

 

(2)a subsidiary of the Company operating as a Texas banking association is merged or consolidated into, or otherwise acquired by, an entity other than a wholly-owned subsidiary of the Company;

 

(3)the Company sells, leases or exchanges all or substantially all of its assets to any other person or entity (other than a wholly‐owned subsidiary of the Company);

 

(4)the Company is to be dissolved and liquidated;

 

(5)any person or entity, including a "group" as contemplated by Section 13(d)(3) of the Exchange Act, acquires or gains ownership or control (including, without limitation, power to vote) of more than 50% of the outstanding shares of the Company's voting stock (based upon voting power); or

 

(6)as a result of or in connection with a contested election of directors, the persons who were directors of the Company before such election shall cease to constitute a majority of the Board.

 

 

 

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Notwithstanding anything herein to the contrary, and only to the extent that an option granted hereunder is subject to Code Section 409A and would not otherwise comply with Code Section 409A, a "Change in Control" shall occur only to the extent that the definition of "Change in Control" set forth above may be interpreted to be consistent with Code Section 409A and the applicable Internal Revenue Service and Treasury Department regulations thereunder.

 

19.Application of Funds.

 

(a)The Company will maintain payroll deduction records for each Eligible Employee who elects pursuant to the provisions of Section 8 herein to participate in a Purchase Period under the Plan on which all payroll deductions attributable to that Participant with respect to the Purchase Period will be accounted for.

 

(b)Amounts thus accounted for will be under the control of the Company, need not be set apart from other funds of the Company, and, so long as funds in the applicable amount are provided to the Plan Administrator for the Purchase Period, may be used for any corporate purpose.  Amounts credited for employees of Subsidiaries will be remitted to the Company from time to time by such Subsidiaries.

 

(c)In the event that any law or regulation, in the opinion of counsel for the Company, may prohibit the handling or use of all or any part of the funds in the manner contemplated by the Plan, the Company may deal with such funds in any lawful manner it may deem advisable, including the deposit of any such funds in a bank account(s) opened for Participants.

 

20.Governmental Approvals or Consents; Amendments or Termination.  This Plan and any purchases by Participants under it are subject to any governmental approvals or consents that may be or become applicable in connection therewith.  The Board may make such changes in the Plan and its administration as may be necessary to desirable, in the opinion of the Company's counsel, to comply with the rules or regulations of any governmental authority or any national securities exchange.

 

21.Compliance with Law. The obligations of the Company with respect to payments under the Plan are subject to compliance with all applicable laws and regulations. Stock shall not be issued with respect to an option granted under the Plan unless the exercise of such option and the issuance and delivery of the shares of Stock pursuant thereto shall comply with all applicable provisions of law, including, without limitation, the Securities Act, the Exchange Act, and the requirements of any stock exchange upon which the shares may then be listed.

 

22.Notice of Disqualifying Dispositions.  Each Participant shall give the Company prompt written notice of any disposition or other transfer of shares of Stock acquired pursuant to the exercise of an option acquired under the Plan, if such disposition or transfer is made within two years after the date of grant or within one year after the Purchase Date.

 

23.Notices.  All notices or other communications by an Employee or Participant to the Company or the Plan Administrator under or in connection with the Plan shall be deemed to have been duly given when received by the Company or the Plan Administrator in the form specified by the Company or the Plan Administrator.  Any notice given by the Company or the Plan Administrator to an Employee or Participant directed to such individual at the address on file with the Company or the Plan Administrator shall be effective to bind the Employee or Participant and any other person who shall acquire rights hereunder.

 

24.Effective Date.  The Plan, as amended and restated, shall be effective January 24, 2019, subject to the approval of the Plan by the Company's shareholders at the 2019 annual shareholders meeting.  If such shareholder approval is not obtained at such time, the Plan, as amended and restated, shall not be effective, and the Plan shall continue in accordance with its terms immediately prior to this amendment and restatement.

 

25.Equal Rights and Privileges.  All Eligible Employees shall have equal rights and privileges with respect to the Plan so that the Plan qualifies as an "employee stock purchase plan" within the meaning of Code Section 423 or any successor provision of the Code and related regulations.  Any provision of the Plan which is inconsistent 

 

 

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with Code Section 423 or any successor provision of the Code shall without further act or amendment by the Company be reformed to comply with the requirements of Code Section 423.  This Section shall take precedence over any conflicting provisions in the Plan.

 

26.Word Usage.  Words used in the masculine shall apply to the feminine where applicable, and wherever the context of the Plan dictates, the plural shall be read as the singular and the singular as the plural.  Unless the context otherwise requires, the words "include," "includes" and "including" when used in this Plan shall be deemed to be followed by the phrase "without limitation."

 

27.Headings.  Headings at the beginning of paragraphs are for the convenience of reference, shall not be construed as a part of the Plan, and shall not influence its construction.

 

28.Employment Not Guaranteed; No Other Rights.  Nothing contained in this Plan, or the granting or exercise of any right to purchase Stock, or the payment of any other benefit hereunder, shall give any Employee, Participant or any beneficiary of an Employee or Participant any right to continue employment with the Employer, or any legal or equitable right against the Employer, its directors, officers, employees or agents, the Plan Administrator, or any other persons, except as expressly provided by the Plan.

 

29.Tax Withholding.  The Employer shall have the right to require payment by a Participant of any federal, state or local taxes which may be required to be withheld or paid in connection with a purchase hereunder or a disposition of shares of Stock purchased hereunder.  The Employer shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the Participant.  The Plan Administrator shall have the right to require payment by the Participant of any federal, state or local taxes which may be required to be withheld or paid in connection with any transaction contemplated by this Plan.

 

30.Amendment and Termination.  The Board may at any time and for any reason terminate, withdraw, suspend, modify, or amend the Plan; provided that the Board may not make any amendment which would require the approval of the Company's shareholders to comply with any applicable laws, including but not limited to Code Section 423, without approval of the shareholders of the Company. The Company shall not be obligated to any Employee, Participant or other person whatsoever to continue the Plan or the ability to purchase Stock hereunder.  Except as provided in Section 18, upon termination of the Plan, payroll deductions taken but not yet expended on purchases of Stock under the Plan shall be paid to the Participants with respect to whom such deductions were taken as soon as practicable.

 

31.Governing Law.  The Plan and all determinations made hereunder and actions taken pursuant hereto, to the extent not otherwise governed by the laws of the United States, shall be governed by the laws of the State of Texas and construed in accordance therewith without giving effect to principles of conflicts of law.

 

32.Severability.  The provisions of this Plan shall be severable.  If any provision is found to be unenforceable, the balance of the Plan shall remain in full force and effect.

 

IN WITNESS WHEREOF, the Company has executed this Plan to be effective as of the date set forth in Section 24.

 

 

ALLEGIANCE BANCSHARES, INC.

 

 

By:/s/ George Martinez

 

Name:George Martinez

 

Title:Chairman and CEO

 

 

 

 

-9-hun_Ex10_1

			

					

						 

					

					

						 

					

					

						Exhibit 10.1

				
	

					

						 

					

					

						 

					

					

						 

				
	

					

						 

					

					

						

					

					

						 

				

		

			 

		

		
			 
		

			
					
						3 June 2015

				
	
					
						 

					
					
						 

				
	
					
						Rohit Aggarwal

					
					
						Private & Confidential

				

		
			 
		

		
			Dear Rohit
		

		
			OFFER OF APPOINTMENT
		

		
			 
		

		
			Your employment as Vice President & Managing Director, Indian Subcontinent with Huntsman (Singapore) Pte Ltd (the “Company”) shall commence with effect from such date as the parties may mutually agree (the “Fifteenth of June 2015”), on and subject to the following terms and conditions:
		

		
			1.        CONDITIONS OF APPOINTMENT
		

		
			1.1      The Company may at its discretion terminate this Agreement immediately at any time before the Commencement Date by giving you written notice and without any liability to you, in which case your employment with the Company shall not commence.
		

		
			1.2      Your appointment will be subject to:
		

		
			1.2.1   The receipt of a satisfactory report on your health from the Company’s Doctors following a medical examination and chest X-ray.
		

		
			1.2.2   Your undertaking, both during the period of your employment and at all times after the termination thereof, that you will not disclose any confidential or proprietary information pertaining to the Company or any of its associated companies; and that you will not (except in the normal course of the Company’s or any of its associated company’s business) publish any literature, deliver any lecture, or make any communication to the Press relating to the Company’s or any of its associated company’s business or products, or to any matters with which the Company of any of its associated companies may be concerned, unless you have previously applied to and obtained permission from your Business I Department Head to do so.
		

		
			From time to time, the Company or any of its associated companies may be required to undertake Government-related activities which involve matters that cannot be disclosed.  There are laws which apply to employees concerned, however remotely, with such activities and if it is ever intended that you should undertake work of this kind, these laws and the methods of handling of the information involved will be explained to you at the appropriated time.  lf, however, you should accidentally be brought into contact with any Government-related work, or information relating thereto, you must under no circumstance communicate it to anyone without authorization, and you must report to your Business/Department Head
		

		
			
		

		
			

		 

			

					

						HUNTSMAN (SINGAPORE) PTE LTD
Co. Reg. No. 200005669C
150 Beach Road #37-00 Gateway West Singapore 189720
Tel: 6297 3363 Fax: 65-6296 3368 

					

					

						

				

		

			 

		

 

			

					

						 

					

						....Rohit Aggarwal

					

					

						

					

					

						 

				

		

			 

		

		

		
			immediately for instructions regarding the manner in which such work or information should be handled.
		

		
			Your agreement not to undertake on your own account or with any person or persons any trade, business or profession; or to accept any form of paid employment unless you have previously obtained the written consent of the Company.
		

		
			1.2.3   Your undertaking that you will abide by the Company’s policies on Insider Trading and Code of Business Ethics.
		

		
			1.2.4   Your agreement that any invention you make in the course of your work or any patents arising there from will be the property of the Company and that you will sign any necessary papers related thereto.
		

		
			1.2.5   Your agreement that you will serve the Company anywhere in Singapore or any region where the Company or any of its associated companies has affiliated operations (hereinafter called the “Service Territories”) in the capacity of Vice President & Managing Director, Indian Subcontinent or any capacity commensurate with your skills and experience as the Company may from time to time determine.
		

		
			1.2.6   Should you serve in any region within the Service Territories, your duties shall be carried out under the supervision and control of the local Management of the Company or any of its associated companies.
		

		
			1.3      You warrant that by entering into this Agreement with the Company, you are lawfully able to undertake employment with the Company on and as from the Commencement Date and that you will not be in breach of any term, express or implied, of any prior agreement, arrangement, undertaking or understanding with any other person (including but not limited to any notice requirement, confidentiality obligations and/or restrictive covenants arising out of employment with any former employer).  If, on or after the Commencement Date, the Company discovers or becomes aware that you may not lawfully undertake employment or assume your duties contemplated hereunder with the Company for any reason whatsoever, the Company shall be entitled to terminate your employment with immediate effect by giving you written notice and without any compensation whatsoever.
		

		
			2.        TERMS OF SERVICE
		

		
			2.1      Your starting basic salary will be at the rate of SGD 42,834 per month or SGD 514,008 per annum.
		

		
			2.2      You will also receive a car allowance of SGD 3,000 per month or SGD 36,000 per annum.
		

		
			
		

		
			

		 

			

					

						HUNTSMAN (SINGAPORE) PTE LTD
Co. Reg. No. 200005669C
150 Beach Road #37-00 Gateway West Singapore 189720
Tel: 6297 3363 Fax: 65-6296 3368 

					

					

						

				

		

			 

		

 

			

					

						 

					

						....Rohit Aggarwal

					

					

						

					

					

						 

				

		

			 

		

		

		
			2.3      No fixed bonuses in addition to the above salary will be payable.  The Company, however, has a Variable Bonus Scheme which shall apply to you.  The Variable Bonus Scheme is based on business and personal performance indicators, and is targeted at 40% (to a maximum of 60%) of your annual basic salary with payout depending on annual corporate and personal performance.
		

		
			2.4      Your employment shall be on a probationary basis for a period of six (6) months initially.  The Company may, if it considers necessary, extend the probationary period for a further period of three months.  This probationary period is solely for the purpose of considering whether or not you are suitable in all respects for permanent employment.  During the probationary period, your employment can be terminated at any time by the Company or yourself by one party giving to the other party one month’s notice in writing or one month’s salary in lieu thereof.
		

		
			On satisfactory completion of your probationary period, your appointment will be confirmed.  The notice period for termination of employment by either party after such confirmation shall be three (3) months.  Alternatively, three months’ salary in lieu of such notice period may be paid.
		

		
			In the event of dismissal by the Company due to misconduct, termination will be deemed immediate and the requisite notice period or salary in lieu of notice shall not apply.
		

		
			2.5      Other terms of service are listed in “Addendum to the Offer of Appointment”
		

		
			2.6      Your eligibility to the benefits will be administered based on the total years of your service with the Company.  Please see enclosed Appendix for the benefits details.  The Company reserves the right to amend any of the benefits.
		

		
			3.        TAX
		

		
			You shall be responsible for your own personal income tax in Singapore per the prevailing legislation.
		

		
			4.        CODE OF CONDUCT
		

		
			The Company’s code of conduct forms an integral part of this Agreement.  You hereby acknowledge receipt of the Code of Conduct and agree that you will at all time abide by it and agree that the provisions of the Code are fair and reasonable.  You agree and acknowledge that the Company shall have the right to vary the terms and conditions of such Code of Conduct.  In the event of breach of the provisions of the Code, the Company is entitled to take disciplinary action including, where appropriate, termination of your employment with the Company either summarily or on notice.
		

		
			
		

		
			

		 

			

					

						HUNTSMAN (SINGAPORE) PTE LTD
Co. Reg. No. 200005669C
150 Beach Road #37-00 Gateway West Singapore 189720
Tel: 6297 3363 Fax: 65-6296 3368 

					

					

						

				

		

			 

		

 

			

					

						 

					

						....Rohit Aggarwal

					

					

						

					

					

						 

				

		

			 

		

		

		
			5.        OWNERSHIP OF PROPERTIES
		

		
			a)         When work is completed by you under the planning or financial support of the Company, the Company shall be the author of such work shall own the copyright thereof.
		

		
			b)         For any inventions, utility models and/or new designs created by you in connection with the performance of your work, the patent rights or right to apply for patent thereof shall belong to the Company.  Where such inventions, utility models and/or new designs are created by you under the planning or financial support (including salary payments or allowances) of the Company, the Company is not obliged to provide you with any other compensation for such a creation.
		

		
			For any inventions, utility models and/or new designs created by you not in connection with the performance of your work, you shall immediately notify the Company in writing and shall disclose the process of your creation.  Where such a creation is derived from your use of the Company’s resources or your experiences in the Company, the Company, May after having provided you with reasonable compensation, practice such inventions, utility models and/or new designs within the Company and/or in any Affiliated Companies.
		

		
			c)         The exclusive right to use the trademarks or service marks relating to the Company’s products or services shall belong to and remain the property of the Company.
		

		
			6.        NON-DISCLOSURE OBLIGATIONS
		

		
			a)         You agree to keep strictly in confidence, and will adopt appropriate methods to protect the confidential information and documents as designated, verbally or in writing, by the Company, which include but are not limited to the following and may be contained in such media as electronic apparatus, diskettes, laser discs and/or any other hardware or software:
		

		
			i)          any document, information or data relating to the products, businesses, personnel, customers, suppliers of the Company and/or its Affiliated Companies or any firm that maintains a cooperative relationship with the Company;
		

		
			ii)         any document, information or data supplied by any firm and/or individual that maintain a technical cooperation or licensing relationship with the Company for use or reference by the Company or its Affiliated Companies;
		

		
			iii)        any business project, product, process, method or other information being researched or developed by the Company or any Affiliated Company, or by you or any other persons under engagement of the Company or the Affiliated Companies; and
		

		
			
		

		
			

		 

			

					

						HUNTSMAN (SINGAPORE) PTE LTD
Co. Reg. No. 200005669C
150 Beach Road #37-00 Gateway West Singapore 189720
Tel: 6297 3363 Fax: 65-6296 3368 

					

					

						

				

		

			 

		

 

			

					

						 

					

						....Rohit Aggarwal

					

					

						

					

					

						 

				

		

			 

		

		

		
			iv)        you agree that you will not disclose, in any manner, the above confidential information to any persons who have not been authorized to receive such information, and that except as agreed by the Company, you will not use the confidential information for purposes other than performing the specific services assigned to you or for the benefit of yourself or any other persons.
		

		
			b)         As your salary is sensitive and personal information, you are not allowed to reveal it in public or discuss it with other colleagues.
		

		
			c)         Except as otherwise agreed to or authorized by the Company, you shall not publicize or publish in any publication or mass media any information relating to the products, businesses or any other affairs of the Company or its Affiliated Companies.
		

		
			d)         The non-disclosure obligations set forth in the preceding paragraphs will survive the termination of your employment for whatever reasons.
		

		
			7.        NON-COMPETE OBLIGATIONS
		

		
			Until the expiry of one year from the termination of your employment (for whatever reasons), you agree not too directly or indirectly:
		

		
			a)         solicit, canvass or approach any person, who, to your knowledge, was provided with goods or services by the Huntsman Businesses at any time during the last year of your employment or was negotiating with the Huntsman Businesses for the provision of goods or services by the Huntsman Businesses at the termination, or to offer to that person goods or services previously provided to him by the Huntsman Businesses during that year or which were the subject of the negotiations at that termination; and
		

		
			b)         accept orders from such a person for goods or services similarly to or competitive with the goods or services previously provided to him by the Huntsman Businesses during the last year of your employment or which were the subject of the negotiations at that termination.
		

		
			8.        DATA PRIVACY
		

		
			Your personal information is treated in accordance with the Company’s global privacy policy.  As is stated in the policy, the Company collects, uses, and processes personal information, related to your employment, which includes your employment.
		

		
			In addition, the company uses and processes the personal information of yourself, your dependents and will, as necessary and in connection with your employment, share your data and your dependent data with third party vendors.
		

		
			This letter does not purport to be an exhaustive documentation of the Company’s terms of employment offered to you, but it will guide you on the main points.  Other terms of employment
		

		
			
		

		
			

		 

			

					

						HUNTSMAN (SINGAPORE) PTE LTD
Co. Reg. No. 200005669C
150 Beach Road #37-00 Gateway West Singapore 189720
Tel: 6297 3363 Fax: 65-6296 3368 

					

					

						

				

		

			 

		

 

			

					

						 

					

						....Rohit Aggarwal

					

					

						

					

					

						 

				

		

			 

		

		

		
			not specified here will be covered under the Company’s Policy Manuals or practices, whether written or unwritten.  Such policies or practices may be subject to change from time to time by the Company where it deems necessary.
		

		
			If you are in agreement with the contents herewith, please sign on the space provided in the duplicate copy of this letter and return the same to us to indicate your acceptance of the foregoing.
		

		
			Yours sincerely
		

		
			/s/ Petra Remans
		

		
			Petra Remans
Director, Human Resources
Textile Effects
		

		
			 
		

		
			I have read the above & Addendum to the Offer of Appointment and I accept the employment offered to me in accordance with the contents herewith.  I confirm that I am not bound by or subject to any court order, agreement, arrangement, undertaking or understanding which in any way restricts or prohibits me from entering into this Agreement and/or from performing my duties pursuant hereto.
		

		
			 
		

			
					
						Rohit Aggarwal

					
					
						    

					
					
						/s/ Rohit Aggarwal

				
	
					
						Names as in FIN/Passport

					
					
						 

					
					
						Signature

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Date:  5/6/2015

				

		
			 
		

		
			
		

		
			

		 

			

					

						HUNTSMAN (SINGAPORE) PTE LTD
Co. Reg. No. 200005669C
150 Beach Road #37-00 Gateway West Singapore 189720
Tel: 6297 3363 Fax: 65-6296 3368 

					

					

						

				

		

			 

		

 

			

					

						 

					

						....Rohit Aggarwal

					

					

						

					

					

						 

				

		

			 

		

		

		
			Addendum to the Offer of Appointment
		

		
			 
		

		
			This addendum listed out other terms not covered in the Offer of Appointment of 3 June 2015:
		

		
			1.         Huntsman Pension Plan I Central Provident Fund (CPF)
		

		
			You will be eligible for the International Retirement Benefits Plan.  The Huntsman International Retirement Benefits Plan provides you with a way of saving towards your retirement through your salary.  Based on your level of contribution the Company will make generous matching contributions to your retirement account.  The Plan will be administered by Friends Provident International.  There will also be an Independent trustee, Boal & Co, who will provide Plan governance and ensure it runs smoothly.  Details will be provided separately.
		

		
			In the event that you obtained Singapore Permanent Residence status, the company is obliged to make the mandatory CPF contribution into your account.  The company will continue to match your contribution to the Huntsman international Retirement Benefits Plan, less the CPF employer contributions.
		

		
			2.         Housing Allowance
		

		
			A gross monthly housing allowance of SGD 22,500 p.m. will be paid.
		

		
			Please note that the housing allowance provided by the company is subject to the Singapore Individual Income Tax and will be borne by yourself.
		

		
			3.         Children Education Allowance
		

		
			You have the option of a local or private school for your children.
		

		
			A gross annual children education allowance of SGD 70,716 will be paid in 12 equal installments or in line with the payment schedule of your selected school.
		

		
			The children educational allowance will only be paid up the completion of Secondary School Level.  The allowance will be stopped upon completion of Secondary School.  This allowance is subjected to the Singapore Individual Income Tax and that will be paid by yourself.
		

		
			4.         Hardship Allowance
		

		
			A gross monthly hardship allowance of SGD 12,500 p.m. will be paid.  This allowance will cease should you transfer to a different job role or location.
		

		
			Please note that the hardship allowance provided by the company is subject to the Singapore Individual Income Tax and will be borne by yourself.
		

		
			
		

		
			

		 

			

					

						HUNTSMAN (SINGAPORE) PTE LTD
Co. Reg. No. 200005669C
150 Beach Road #37-00 Gateway West Singapore 189720
Tel: 6297 3363 Fax: 65-6296 3368 

					

					

						

				

		

			 

		

 

			

					

						 

					

						....Rohit Aggarwal

					

					

						

					

					

						 

				

		

			 

		

		

		
			5.         Medical & Other Benefits
		

		
			You will be enrolled under the international healthcare scheme, details of which will be made available to you.  Huntsman will cover all premium costs for your healthcare coverage.  Neither Huntsman nor the plan will fund costs for cosmetic treatments.
		

		
			The current Healthcare Scheme provider is Aetna Global.  Huntsman retains the right to change the insurance providers or medical/dental/optical practitioners at any time.
		

		
			Other benefits are listed in the Appendix.
		

		
			6.         Taxation / Tax Filing & Advice
		

		
			The Company will pay for the cost of preparing tax returns associated with earnings in the calendar years 2015 and 2016 (during the 2016 and 2017 tax filing timetable).  3 hours tax advice session will be provided by external tax professional.
		

		
			You will be responsible for Singapore taxes which include federal, state and social security taxes associated with your base compensation, allowances stipulated above and bonus as per normal payroll deductions.
		

		
			
		

		
			

		 

			

					

						HUNTSMAN (SINGAPORE) PTE LTD
Co. Reg. No. 200005669C
150 Beach Road #37-00 Gateway West Singapore 189720
Tel: 6297 3363 Fax: 65-6296 3368 

					

					

						

				

		

			 

		

 

			

					

						 

					

						....Rohit Aggarwal

					

					

						

					

					

						 

				

		

			 

		

		

		
			Appendix:  Benefits Summary
		

		
			Public Holiday Pay
		

		
			There are 11 gazetted public holidays in Singapore.  You will be eligible for the paid public holiday provided you are on active pay status the day before and the day after the holiday
		

		
			Off-in-lieu Days
		

		
			Off-in-lieu days are credited into your leave database for local public holidays that falls on non-working days (Saturday).  Such leave will not be encashed or carried over to the next year.
		

		
			Sick Leave & Hospitalization Leave
		

		
			1.   You will be eligible for 14 days in each year, if no hospitalization is necessary.
		

		
			2.   You will be entitled to hospitalization leave of up to 60 days in each year less the amount of sick leave taken.
		

		
			Annual Leave
		

		
			You will be entitled to 25 working days of annual leave.
		

		
			Any annual leave outstanding at the end of the calendar year may be carried forward for 3 months, subject to a maximum of 50% of annual entitlement and thereafter be forfeited if not used.
		

		
			Marriage Leave
		

		
			You will be eligible for 4 working days’ paid leave upon your first legal marriage.
		

		
			Paternity Leave
		

		
			Male employee will be entitled to 2 working days’ paid leave on the birth of your first four surviving children.
		

		
			Maternity Leave
		

		
			Female associate who has been employed by the Company for more than 180 days immediately preceding the day of confinement will be entitled to 8 weeks’ or 16 weeks (for associate who has met the criteria for extended maternity leave) maternity leave, at your current monthly basic pay, for your first two surviving children.
		

		
			Childcare Leave
		

		
			For married employees whose children are Singapore Citizens and age seven and below, you will be entitled to 6 days paid childcare leave per calendar year, irrespective of the number of children.  For those whose children are not Singapore Citizens, 2 days of childcare leave will be granted.
		

		
			You will be eligible for the leave if you have been employed by the company for at least 3 months.  Such leave cannot be encashed or carried over to the next year.
		

		
			Compassionate Leave
		

		
			You will be eligible for 4 working days of compassionate leave (or 5 working days if require overseas traveling) in the event of death of an immediate family member.  Immediate family
		

		
			
		

		
			

		 

			

					

						HUNTSMAN (SINGAPORE) PTE LTD
Co. Reg. No. 200005669C
150 Beach Road #37-00 Gateway West Singapore 189720
Tel: 6297 3363 Fax: 65-6296 3368 

					

					

						

				

		

			 

		

 

			

					

						 

					

						....Rohit Aggarwal

					

					

						

					

					

						 

				

		

			 

		

		

		
			members are defined spouse, child/children, and adopted children with legal documentation, siblings, parents, parents-in-law, grandparents & grandparents-in-law.
		

		
			Critical Illness Leave
		

		
			You will be eligible for 4 working days of critical illness leave in the event of serious illness of an immediate family member.  Critical illness is defined as being on the critically ill list of any licensed hospital in Singapore.
		

		
			 
		

		
			The Company reserves the right to amend any of the benefits.
		

		
			 
		

		 

			

					

						HUNTSMAN (SINGAPORE) PTE LTD
Co. Reg. No. 200005669C
150 Beach Road #37-00 Gateway West Singapore 189720
Tel: 6297 3363 Fax: 65-6296 3368

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