Document:

exv10w22

 

	 	 	 	 	 

EXHIBIT 10.22

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (“Agreement”) is made by and between
SOUTHWEST BANK OF TEXAS NATIONAL ASSOCIATION (“Company”) and Charles F. Hall,
Jr. (“Employee”).

WITNESSETH:

     WHEREAS, Company is desirous of employing Employee as an employee of
the Company on the terms and conditions, and for the consideration, hereinafter
set forth and Employee is desirous of being employed by Company on such terms
and conditions and for such consideration;

     NOW, THEREFORE, for and in consideration of the mutual promises,
covenants and obligations contained herein, Company and Employee agree as
follows:

ARTICLE 1

EMPLOYMENT AND DUTIES

     1.1 Employment; Effective Date. Company agrees to employ Employee and
Employee agrees to be employed by Company, beginning as of the Effective Date
(as hereinafter defined) and continuing for the period of time set forth in
Article 2 of this Agreement, subject to the terms and conditions of this
Agreement. For purposes of this Agreement, the “Effective Date” shall be the
“Effective Time” as defined in the Agreement and Plan of Merger dated March 10,
2003, between Southwest Bancorporation of Texas, Inc., SWBT Merger, Inc. and
Maxim Financial Holdings, Inc. (the “Merger Agreement”).

     1.2 Position. From and after the Effective Date, Company shall employ
Employee with the title of Executive Vice President. Employee shall have such
authorities, powers, functions and duties as Company shall reasonably delegate
and request, consistent with Employee’s qualifications and level of
compensation.

     1.3 Duties and Services. Employee agrees to serve as a full-time
employee of the Company in the capacities referred to in paragraph 1.2 and to
perform diligently and to the best of his abilities the duties and services
appertaining to such offices, as well as such additional duties and services
appropriate to such offices which the parties mutually may agree upon from time
to time. Employee’s employment shall also be subject to the policies maintained
and established by Company, as the same may be amended from time to time.

     1.4 Other Interests. Employee agrees, during the period of his
employment by Company, to devote substantially all of his time, energy and best
efforts during normal business hours (with allowances for vacation and sick
leave) to the business and affairs of Company and not to engage, directly or
indirectly, in any other business or businesses, whether or not similar to that
of Company, except with the consent of the Board of Directors of Company (the
“Board of Directors”). The foregoing notwithstanding, the parties recognize and
agree that Employee may engage in passive personal investments and other
passive
business activities that do not conflict

 

 

with the business and affairs of Company or interfere with Employee’s
performance of his duties hereunder.

     1.5 Duty of Loyalty. Employee acknowledges and agrees that Employee
owes a fiduciary duty of loyalty, fidelity and allegiance to act at all times
in
the best interests of Company and to do no act that would injure the business,
interests, or reputation of Company or any of its subsidiaries or affiliates.
In
keeping with these duties, Employee shall make full disclosure to Company of
all
business opportunities pertaining to Company’s business and shall not
appropriate for Employee’s own benefit business opportunities concerning the
subject matter of the fiduciary relationship.

ARTICLE 2

TERM AND TERMINATION OF EMPLOYMENT

     2.1 Term. Unless sooner terminated pursuant to other provisions hereof,
Company agrees to employ Employee for the period beginning on the Effective
Date
and ending December 31, 2005 (“the Employment Term”).

     2.2 Company’s Right to Terminate. Notwithstanding the provisions of
paragraph 2.1, Company shall have the right to terminate Employee’s employment
under this Agreement at any time for any of the following reasons:

     (i) upon Employee’s death;

     (ii) if Employee is unable to perform the essential functions
of his job (with or without reasonable accommodation) because he has
become permanently disabled within the meaning of, and actually begins
to receive disability benefits pursuant to, the long-term disability
plan in effect for employees of the Company at that time;

     (iii) for cause, which for purposes of this Agreement shall
mean Employee (A) has engaged in negligent or willful misconduct in the
performance of the duties required of him hereunder, (B) has been
convicted of a misdemeanor involving moral turpitude or convicted of a
felony, (C) has materially failed without proper legal reason to
perform the duties and responsibilities required of him hereunder
(continuing three business days after receipt of written notice of need
to cure), (D) has breached any material written corporate policy or
code of conduct established by Company that Employee is or should have
been aware of, or (E) has engaged in conduct that Employee knows or
should know is materially injurious to Company or any of its
affiliates;

     (iv) for Employee’s breach of any provision of this Agreement
which, if correctable, remains uncorrected for three business days
following written notice to Employee by Company of such breach; or

     (v) any other reason whatsoever, in the sole discretion of the
Board of Directors.

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     2.3 Employee’s Right to Terminate. Notwithstanding the provisions of
paragraph 2.1, Employee shall have the right to terminate his employment under
this Agreement at any time for any of the following reasons:

     (i) a breach by Company of any provision of this Agreement
which, if correctable, remains uncorrected for three business days
following written notice to Company by Employee of such breach;

     (ii) a substantial increase by Company in the level of
responsibility of Employee from that contemplated at the inception of
the Employment Term without providing additional compensation as
mutually agreed upon by Company and Employee; or

     (iii) for any other reason whatsoever, in the sole discretion
of Employee.

     2.4 Notice of Termination. If Company or Employee desires to terminate
Employee’s employment hereunder at any time prior to expiration of the term of
employment as provided in paragraph 2.1, it or he shall do so by giving written
notice to the other party that it or he has elected to terminate Employee’s
employment hereunder and stating the effective date and reason for such
termination, provided that no such action shall alter or amend any other
provisions hereof or rights arising hereunder, including, without limitation,
the provisions of Articles 4 and 5 hereof.

ARTICLE 3

COMPENSATION AND BENEFITS

     3.1 Base Salary. Throughout the Employment Term, Employee shall receive
an annual base salary of not less than $126,000 ($10,500 per month). Employee’s
annual base salary shall be paid in equal installments in accordance with
Company’s standard policy regarding payment of compensation to Employees but no
less frequently than monthly.

     3.2 Bonuses. At the end of each calendar year during the term of this
Agreement, Employee may be entitled to a bonus of up to 30% of his then current
annual base salary. The amount of such bonus, if any, shall be entirely
discretionary with the management of Company and the Compensation Committee of
the Board of Directors. In making its determination as to the amount of any
such
bonus, management and the Compensation Committee of the Board of Directors
shall
consider the same criteria as that used for determining bonuses for other
employees of Company, from time to time. It is contemplated that such criteria
shall include Employee’s performance, Company’s financial performance and the
performance of Company’s common stock as compared to other members of its peer
group.

     3.3 Other Perquisites. During his employment hereunder, Employee shall
be afforded the following benefits as incidences of his employment:

     (i) Business and Entertainment Expenses. Subject to Company’s
standard policies and procedures with respect to expense reimbursement
as applied to its employees generally, Company shall reimburse Employee
for, or pay on behalf of

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Employee, reasonable and appropriate expenses incurred by Employee for
business related purposes, including dues and fees to industry and
professional organizations and costs of entertainment and business
development.

     (ii) Other Company Benefits. Employee and, to the extent
applicable, Employee’s spouse, dependents and beneficiaries, shall be
allowed to participate in all benefits, plans and programs, including
improvements or modifications of the same, that are now, or may
hereafter be, available to all other employees of Company, and Employee
will be entitled to credit for prior service with MaximBank (“Maxim”)
for all purposes under such benefits, plans and programs. Such
benefits, plans and programs may include, without limitation, 401(k)
plans, health insurance or health care plans, disability insurance,
supplemental retirement plans, vacation and sick leave benefits, and
the like. Employee shall also be entitled to a monthly automobile
allowance consistent with Company policy for Executive Vice Presidents.
Company shall not, however, by reason of this paragraph be obligated to
institute, maintain, or refrain from changing, amending, or
discontinuing, any such benefit plan or program, so long as such
changes are similarly applicable to similarly situated employees
generally. This Section 3.3(ii) does not apply to cash bonuses, which
are addressed in Section 3.2.

     (iii) Stock Options. Company will award an option to Employee
to purchase 10,000 shares of Company’s common stock under Company’s
1996 Stock Option Plan, within two weeks following the Effective Date,
such incentive option to be subject to the same terms and provisions
(including vesting) as those awarded to other Employees under such
plan.

ARTICLE 4

CONFIDENTIAL INFORMATION

     4.1 In General. Company will disclose to Employee, or place Employee in
a position to have access to or develop trade secrets or confidential
information of Company or its affiliates; and/or will entrust Employee with
business opportunities of Company or its affiliates; and/or will place Employee
in a position to develop business goodwill on behalf of Company or its
affiliates. Employee recognizes and acknowledges that Employee will have access
to certain information of Company and that such information is confidential and
constitutes valuable, special and unique property of Company. Employee shall
not
at any time, either before, during or subsequent to the Employment Term,
disclose to others, use, copy or permit to be copied, except in pursuance of
Employee’s duties for and on behalf of Company, its successors, assigns or
nominees, any Confidential Information of Company (regardless of whether
developed by Employee) without the prior written consent of Company. The term
“Confidential Information” means any secret or confidential information or
know-how and shall include, but shall not be limited to, the plans, customers,
costs, prices, uses, corporate opportunities, research, financial data,
evaluations, prospects, and applications of products and services, results of
investigations or studies owned or used by Company, and all apparatus,
products,
processes, compositions, samples, formulas, computer programs, computer
hardware
designs, computer firmware designs, and servicing, marketing or manufacturing
methods and techniques at anytime used, developed, investigated, made or sold
by
Company, before or during the Employment Term, that are not

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readily available to the public or otherwise made available to the public
through no fault of Employee, or that are maintained as confidential by
Company.
Employee shall maintain in confidence any Confidential Information of third
parties received as a result of Employee’s employment with Company in
accordance
with Company’s obligations to such third parties and the policies established
by
Company. For purposes of this Section 4.1 and Section 5.1., below, the term
“Confidential Information” shall include information about Maxim.

     4.2 Remedies. Employee acknowledges that money damages would not be a
sufficient remedy for any breach of this Article 4 by Employee, and Company
shall be entitled to enforce the provisions of this Article 4 by terminating
payments then owing to Employee under this Agreement and/or seeking specific
performance and injunctive relief as remedies for such breach or any threatened
breach. Such remedies shall not be deemed the exclusive remedies for a breach
of
this Article 4, but shall be in addition to all remedies available at law or in
equity to Company, including the recovery of damages from Employee and his
agents involved in such breach and remedies available to Company pursuant to
other agreements with Employee.

ARTICLE 5

NON-COMPETITION OBLIGATIONS

     5.1 In General. As part of the consideration for the compensation and
benefits to be paid to Employee hereunder; to protect the Confidential
Information of Company, Maxim, and their affiliates that has been and will in
the future be disclosed or entrusted to Employee, the business goodwill of
Company, Maxim, and their affiliates that has been and will in the future be
developed in Employee, or the business opportunities that have been and will in
the future be disclosed or entrusted to Employee by Company, Maxim, and their
affiliates; and as an additional incentive for Company to enter into this
Agreement, Company and Employee agree to the non-competition obligations
hereunder. Employee shall not, directly or indirectly for Employee or for
others, in any geographic area or market where Company or Maxim or any of their
affiliates are conducting any business through Company or Maxim facilities as
of
the date of the termination of the employment relationship or have during the
previous twelve months conducted such business:

     (i) engage in any business competitive with the business
conducted by Company or Maxim in any county in which the Company or
Maxim maintains an office;

     (ii) render advice or services to, or otherwise assist, any
other person, association, or entity who is engaged, directly or
indirectly, in any business competitive with the business conducted by
Company or Maxim with respect to such competitive business; or

     (iii) induce any employee of Company or any of its affiliates
to terminate his or her employment with Company, Maxim or such
affiliates, or hire or assist in the hiring of any such employee by any
person, association, or entity not affiliated with Company or Maxim.

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These non-competition obligations shall apply during the longer of (a) the
period that Employee is receiving benefits pursuant to Article 3 and Article 7
hereunder, or (b) the period beginning with the date of termination of the
employment relationship if such termination is by Company pursuant to Section
2.2(iii) or (iv) or by Employee pursuant to Section 2.3(iii) and ending on
December 31, 2005

     5.2 Enforcement and Remedies. Employee understands that the
restrictions set forth in paragraph 5.1 may limit Employee’s ability to engage
in certain businesses anywhere in the world during the period provided for
above, but acknowledges that Employee will receive sufficiently high
remuneration and other benefits under this Agreement to justify such
restriction. Employee acknowledges that money damages would not be a sufficient
remedy for any breach of this Article 5 by Employee, and Company shall be
entitled to enforce the provisions of this Article 5 by terminating any
payments
then owing to Employee under this Agreement and/or seeking specific performance
and injunctive relief as remedies for such breach or any threatened breach.
Such
remedies shall not be deemed the exclusive remedies for a breach of this
Article
5, but shall be in addition to all remedies available at law or in equity to
Company, including without limitation, the recovery of damages from Employee
and
Employee’s agents involved in such breach and remedies available to Company
pursuant to other agreements with Employee.

     5.3 Reformation. It is expressly understood and agreed that Company and
Employee consider the restrictions contained in this Article 5 to be reasonable
and necessary to protect the proprietary information of Company. Nevertheless,
if any of the aforesaid restrictions are found by a court having jurisdiction
to
be unreasonable, or overly broad as to geographic area or time, or otherwise
unenforceable, the parties intend for the restrictions therein set forth to be
modified by such court so as to be reasonable and enforceable and, as so
modified by the court, to be fully enforced.

ARTICLE 6

STATEMENTS CONCERNING COMPANY

     6.1 In General. Employee shall refrain, both during the employment
relationship and after the employment relationship terminates, from publishing
any oral or written statements about Company, any of its affiliates, or any of
such entities’ officers, employees, agents or representatives that are
slanderous, libelous, or defamatory; or that disclose private or confidential
information about Company, any of its affiliates, or any of such entities’
business affairs, officers, employees, agents, or representatives; or that
constitute an intrusion into the seclusion or private lives of Company, any of
its affiliates, or any of such entities’ officers, employees, agents, or
representatives; or that give rise to unreasonable publicity about the private
lives of Company, any of its affiliates, or any of such entities’ officers,
employees, agents, or representatives; or that place Company, any of its
affiliates, or any of such entities’ officers, employees, agents, or
representatives in a false light before the public; or that constitute a
misappropriation of the name or likeness of Company, any of its affiliates, or
any of such entities’ officers, employees, agents, or representatives. A
violation or threatened violation of this prohibition may be enjoined by the
courts. The rights afforded Company and its affiliates under this provision are
in addition to any and all rights and remedies otherwise afforded by law.

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ARTICLE 7

EFFECT OF TERMINATION ON COMPENSATION

     7.1 By Expiration. If Employee’s employment hereunder shall terminate
upon expiration of the term provided in paragraph 2.1 hereof, then all
compensation and all benefits to Employee hereunder shall terminate
contemporaneously with termination of his employment (except to the extent
benefits continue pursuant to the specific terms of any plan or program).

     7.2 By Company. If Employee’s employment hereunder shall be terminated
by Company prior to expiration of the term provided in paragraph 2.1, then,
upon
such termination, regardless of the reason therefor, all compensation and
benefits to Employee hereunder shall terminate contemporaneously with the
termination of such employment (except to the extent benefits continue pursuant
to the specific terms of any plan or program); provided, however, that if such
termination shall be for any reason other than those encompassed by paragraphs
2.2(i), (ii), (iii), or (iv), then Company shall (i) pay Employee the
Termination Payments and (ii) provide Employee with Continuation Benefits. For
purposes of this Agreement, (A) the term “Termination Payments” shall mean
continuation of Employee’s annual base salary as provided in paragraph 3.1 and
continuation of Employee’s bonuses as provided in paragraph 3.2 at the average
percentage of annual base salary that was paid to Employee as bonus during the
two-year period preceding his termination of employment with Company, as if he
had remained employed by Company throughout the Employment Term, and (B) the
term “Continuation Benefits” shall mean continued coverage under Company’s
medical and dental plans and life insurance for Employee and his dependents
(including his spouse) who were covered under such plans and insurance on the
day prior to Employee’s termination of employment with Company for the same
period as the Termination Payments (provided, however, that (1) such coverage
shall terminate if and to the extent Employee becomes eligible to receive
medical, dental and life insurance coverage from a subsequent employer (and any
such eligibility shall be promptly reported to Company by Employee), (2) if
Employee (and/or his spouse) would have been entitled to retiree medical,
dental, and/or life insurance coverage under Company’s plans had he voluntarily
retired on the date of such termination, then such coverages shall be continued
as provided under such plans, and (3) in the event that continued participation
in any such Company plan is for whatever reason impermissible, Company shall
arrange upon comparable terms benefits substantially equivalent to those that
may not be so provided under the plan maintained by Company). Notwithstanding
the preceding provisions of this paragraph 7.2, as a condition to the receipt
of
any Termination Payments and/or Continuation Benefits pursuant to this
paragraph
7.2, Employee must first execute a release and agreement which shall release
Company, its affiliates and their officers, directors, employees and agents
from
any and all claims and from any and all causes of action of any kind or
character, including but not limited to all claims or causes of action arising
out of Employee’s employment with Company and the termination of such
employment.

     7.3 By Employee. If Employee’s employment hereunder shall be terminated
by Employee prior to expiration of the term provided in paragraph 2.1, then,
upon such termination, regardless of the reason therefor, all compensation and
benefits to Employee hereunder shall terminate contemporaneously with the
termination of such employment (except to the extent benefits continue pursuant
to the specific terms of any plan or program); provided, however, that

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if such termination shall be pursuant to paragraph 2.3(i) or (ii), then Company
shall (i) pay Employee the Termination Payments and (ii) provide Employee with
Continuation Benefits, subject to Employee’s execution of a release and
agreement as described in the last sentence of Section 7.2.

     7.4 Liquidated Damages. In light of the difficulties in estimating the
damages for an early termination of this Agreement (but not for other
independent claims that either may have against the other), Company and
Employee
hereby agree that the payments, if any, to be received by Employee pursuant to
this Article 7 shall be received by Employee as liquidated damages.

     7.5 Incentive and Deferred Compensation. This Agreement governs the
rights and obligations of Employee and Company with respect to Employee’s base
salary, bonus, life insurance and certain perquisites of employment. Employee’s
rights and obligations both during the term of his employment and thereafter
with respect to stock options, restricted stock, and incentive and deferred
compensation shall be governed by the separate agreements, plans and other
documents and instruments governing such matters.

ARTICLE 8

MISCELLANEOUS

     8.1 Notices. For purposes of this Agreement, notices and all other
communications provided for herein shall be in writing and shall be deemed to
have been duly given when personally delivered or when mailed by United States
registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

	 	 	 
	If to Company to:

	 	Southwest Bank of Texas National Association

4400 Post Oak Parkway

Houston, Texas 77027

Attention: Paul B. Murphy, Jr.
	 
	 	 
	If to Employee to:

	 	Charles F. Hall, Jr.

P. O. Box 1687

League City, Texas 77574

or to such other address as either party may furnish to the other in writing in
accordance herewith, except that notices of changes of address shall be
effective only upon receipt.

     8.2 Applicable Law. This Agreement is entered into under, and shall be
governed for all purposes by, the laws of the State of Texas.

     8.3 No Waiver. No failure by either party hereto at any time to give
notice of any breach by the other party of, or to require compliance with, any
condition or provision of this Agreement shall be deemed a waiver of similar or
dissimilar provisions or conditions at the same or at any prior or subsequent
time.

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     8.4 Severability. If a court of competent jurisdiction determines that
any provision of this Agreement is invalid or unenforceable, then the
invalidity
or unenforceability of that provision shall not affect the validity or
enforceability of any other provision of this Agreement, and all other
provisions shall remain in full force and effect.

     8.5 Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, but all of which
together will constitute one and the same Agreement.

     8.6 Withholding of Taxes and Other Employee Deductions. Company may
withhold from any benefits and payments made pursuant to this Agreement all
federal, state, city and other taxes as may be required pursuant to any law or
governmental regulation or ruling and all other normal employee deductions made
with respect to Company’s employees generally.

     8.7 Headings. The paragraph headings have been inserted for purposes of
convenience and shall not be used for interpretive purposes.

     8.8 Gender and Plurals. Wherever the context so requires, the masculine
gender includes the feminine or neuter, and the singular number includes the
plural and conversely.

     8.9 Affiliate. As used in this Agreement, the term “affiliate” shall
mean any entity which owns or controls, is owned or controlled by, or is under
common ownership or control with, Company.

     8.10 Successor Obligations. This Agreement shall be binding upon and
inure to the benefit of Company and any successor of Company, by merger or
otherwise.

     8.11 Assignment. Except as provided in paragraph 8.10, this Agreement,
and the rights and obligations of the parties hereunder, are personal and
neither this Agreement, nor any right, benefit, or obligation of either party
hereto, shall be subject to voluntary or involuntary assignment, alienation or
transfer, whether by operation of law or otherwise, without the prior written
consent of the other party.

     8.12 Term. This Agreement shall be effective on the date of its
execution as indicated below and shall continue in effect until the end of the
Employment Term provided in paragraph 2.1. Termination shall not affect any
right or obligation of any party which is accrued or vested prior to such
termination. Without limiting the scope of the preceding sentence, the
provisions of Articles 4, 5, and 6 shall survive any termination of the
employment relationship and/or of this Agreement.

     8.13 Execution of Release. Prior to the consummation of the
transactions contemplated in that certain Agreement and Plan of Merger between
Southwest Bancorporation of Texas, Inc., SWBT Merger, Inc. and Maxim Financial
Holdings, Inc. dated as of March 10, 2003 (the “Acquisition Agreement”),
Employee agrees to execute an instrument, substantially in the form of Exhibit
I
to the Acquisition Agreement, and dated as of the Effective Time (as defined
under the Acquisition Agreement), releasing Maxim Financial Holdings, Inc. and
its subsidiaries from any and all claims Employee may have against such parties
(except as set forth therein).

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     8.14 Entire Agreement. Except as provided in (i) the written benefit
plans and programs referenced in paragraph 3.3(ii) and (ii) any signed written
agreement contemporaneously or hereafter executed by Company and Employee, this
Agreement constitutes the entire agreement of the parties with regard to the
subject matter hereof, and contains all the covenants, promises,
representations, warranties and agreements between the parties with respect to
employment of Employee by Company. Without limiting the scope of the preceding
sentence, all prior understandings and agreements among the parties hereto
relating to the subject matter hereof are hereby null and void and of no
further
force and effect. Any modification of this Agreement shall be effective only if
it is in writing and signed by the party to be charged.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
March 10, 2003.

	 	 	 	 	 
	 	SOUTHWEST BANK OF TEXAS NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Paul B. Murphy, Jr.
 	 
	 	 	Paul B. Murphy, Jr. 	 
	 	 	President and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	“COMPANY”

 	 
	 	/s/ Charles F. Hall, Jr
 	 
	 	CHARLES F. HALL, JR. 	 
	 	“EMPLOYEE”	 
	 

10exv10w23

 

EXHIBIT 10.23

CHANGE IN CONTROL AGREEMENT

[ONE-YEAR]

     This CHANGE IN CONTROL AGREEMENT (“Agreement”), effective as of , (the
Effective Date), by and between Southwest Bancorporation of Texas, Inc., a
Texas
corporation (the Company), and (the “Employee”);

WITNESSETH:

     WHEREAS, the Employee is an officer of the Company or its wholly-owned
subsidiary, Southwest Bank of Texas National Association (the Bank) and has
made
and/or is expected to make or continue to make major contributions to the
profitability, growth and financial strength of the Company and the Bank;

     WHEREAS, references herein to the Employee’s employment by the Company
shall also mean his or her employment by the Bank, and references herein to
payments of any nature to be made by the Company to the Employee shall mean
that
either the Company will make such payments or it will cause the Bank to make
such payments to the Employee;

     WHEREAS, the Company desires to assure itself of both present and
future continuity of management in the event of a Change in Control (as defined
hereafter) and desires to establish certain minimum compensation rights of its
key officers, including the Employee, applicable in the event of a Change in
Control;

     WHEREAS, the Company wishes to ensure that its key officers are not
practically disabled from discharging their duties upon a Change in Control;

     WHEREAS, this Agreement is not intended to alter materially the
compensation and benefits which the Employee could reasonably expect to receive
from the Company or the Bank absent a Change in Control and, accordingly,
although effective and binding as of the date hereof, this Agreement shall
become operative only upon the occurrence of a Change of Control; and

     WHEREAS, the Employee is willing to render services to the Company and
the Bank on the terms and subject to the conditions set forth in this
Agreement;

     NOW, THEREFORE, the Company and the Employee agree as follows:

     1. OPERATION OF AGREEMENT.

     a) This Agreement shall be effective and binding as of the
Effective Date, but, anything in this Agreement to the contrary
notwithstanding, this Agreement shall not be operative unless and until
there shall have occurred a Change in Control.

 

 

     For purposes of this Agreement, a Change in Control shall have
occurred if at any time during the Term (as that term is hereafter
defined) any of the following events shall occur:

     i) The Company is merged, consolidated or reorganized
into or with or sells all or substantially all of its assets
to another corporation or other legal person, and as a result
of such merger, consolidation, reorganization or sale (A) less
than a majority of the combined voting power of the
then-outstanding securities of such corporation or person
immediately after such transaction are held in the aggregate
by the holders of Voting Stock (as that term is hereinafter
defined) of the Company immediately prior to such transaction
and (B) it is intended that persons serving as Directors of
the Company immediately prior to the transaction will
constitute none of or less than a majority of the Directors of
the other corporation or legal person after consummation of
the transaction; or

     ii) If during any one (1) year period, individuals
who at the beginning of any such period constitute the
Directors of the Company cease for any reason to constitute at
least a majority thereof, unless the election, or the
nomination for election by the Company’s shareholders, of each
Director of the Company first elected during such period was
approved by a vote of at least two-thirds of the Directors of
the Company then still in office who were Directors of the
Company at the beginning of any such period.

     b) Upon occurrence of a Change in Control at any time during
the Term, this Agreement shall become immediately operative.

     c) The period during which this Agreement shall be in effect
(the Term) shall commence as of the date hereof and shall expire as of
the later of (i) the close of business on December 31, , and (ii) the
expiration of the Period of Employment (as that term is hereinafter
defined); provided, however, that (A) commencing on December 31, , and
the last day of each of the Company’s Fiscal Years thereafter, the Term
of this Agreement shall automatically be extended for an additional
year unless, not later than the last day of the immediately preceding
September, the Company or the Employee shall have given notice that it
or he, as the case may be, does not wish to have the Term extended and
(B) subject to Section 9 hereof, if, prior to a Change in Control, the
Employee ceases for any reason to be an employee of the Company,
thereupon the Term shall be deemed to have expired and this Agreement
shall immediately terminate and be of no further effect.

     2. EMPLOYMENT; PERIOD OF EMPLOYMENT.

     a) Subject to the terms and conditions of this Agreement, upon
the occurrence of a Change in Control, the Company shall continue the
Employee in its employ and the Employee shall remain in the employ of
the Company for the period set forth in Section 2(b) hereof (the Period
of Employment). Throughout the Period of Employment, the Employee shall
devote substantially all of his time during normal business hours
(subject to vacations, sick leave and other absences in accordance with
the policies of the Company as in effect for

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senior executives immediately prior to the Change in Control) to the
business and affairs of the Company, but nothing in this Agreement
shall preclude the Employee from devoting reasonable periods of time
during normal business hours to (i) serving as a director, trustee or
member of or participant in any organization or business so long as
such organization or business is not engaged, directly or indirectly,
in the business of commercial banking in competition with the business
of the Company, (ii) engaging in charitable and community activities,
or (iii) managing his personal investments.

     b) The Period of Employment shall commence on the date of an
occurrence of a Change in Control and, subject only to the provisions
of Section 4 hereof, shall continue until the earlier of (i) the
expiration of the second anniversary of the occurrence of the Change in
Control or (ii) the Employee’s death.

     3. COMPENSATION DURING PERIOD OF EMPLOYMENT.

     a) Upon the occurrence of a Change in Control, the Employee
shall receive during the Period of Employment (i) annual base salary at
a rate not less than the Employees annual fixed or base compensation
payable monthly or otherwise as in effect for senior executives of the
Company immediately prior to the occurrence of a Change in Control or
such higher rate as may be determined from time to time by the Board of
Directors of the Company (the Board) or the Compensation Committee
thereof (the Committee) (which base salary at such rate is herein
referred to as Base Pay) and (ii) an annual cash bonus in an amount
determined for the Employee in accordance with the Company’s incentive
compensation plan or plans in effect at the time of the Change in
Control or in accordance with any bonus, incentive, profit-sharing,
performance, discretionary pay or similar policy, plan, program or
arrangement of the Company or any successor thereto providing benefits
at least as great as the benefits payable thereunder prior to the
Change in Control (Incentive Pay); provided, however, that nothing
herein shall preclude a change in the mix between Base Pay and
Incentive Pay so long as the aggregate cash compensation received by
the Employee in any one calendar year is not reduced in connection
therewith or as a result thereof and, provided further, however, that
in no event shall any increase in the Employee’s aggregate cash
compensation or any portion thereof in any way diminish any other
obligation of the Company under this Agreement.

     b) For his service pursuant to Section 2(a) hereof, during the
Period of Employment the Employee shall, if and on the same basis as he
participated therein immediately prior to the Change in Control, be a
full participant in, and shall be entitled to the perquisites, benefits
and service credit for benefits as provided under any and all employee
retirement income and welfare benefit policies, plans, programs or
arrangements in which senior executives of the Company participate,
including without limitation any stock option, stock purchase, stock
appreciation, savings, pension, supplemental executive retirement or
other retirement income or welfare benefit, deferred compensation,
incentive compensation, group and/or executive life, accident, health,
dental, medical/hospital or other insurance (whether funded by actual
insurance or self-insured by the Company), disability, salary
continuation, expense reimbursement and other employee benefit
policies, plans,

-3-

 

programs or arrangements that may now exist or any equivalent successor
policies, plans, programs or arrangements that may be adopted hereafter
by the Company providing perquisites, benefits and service credit for
benefits at least as great as are payable thereunder prior to a Change
in Control(collectively, Employee Benefits); provided, however, that
the Employee’s rights thereunder shall be governed by the terms thereof
and shall not be enlarged hereunder or otherwise affected hereby.
Subject to the proviso in the immediately preceding sentence, if and to
the extent such perquisites, benefits or service credit for benefits
are not payable or provided under any such policy, plan, program or
arrangement as a result of the amendment or termination thereof, then
the Company shall itself pay or provide therefore. Nothing in this
Agreement shall preclude improvement or enhancement of any such
Employee Benefits, provided that no such improvement shall in any way
diminish any other obligation of the Company under this Agreement.

     c) The Company has determined that the amounts payable
pursuant to this Section 3 constitute reasonable compensation.
Accordingly, notwithstanding any other provision hereof, unless such
action would be expressly prohibited by applicable law, if any amount
paid or payable pursuant to this Section 3 is subject to the excise tax
imposed by Section 4999 of the Internal Revenue Code of 1986, as
amended (the Code), the Company will pay to the Employee an additional
amount in cash equal to the amount necessary to cause the aggregate
remuneration received by the Employee under this Section 3, including
such additional cash payment (net of all federal, state and local
income taxes and all taxes payable as the result of the application of
Sections 280G and 4999 of the Code) to be equal to the aggregate
remuneration the Employee would have received under this Section 3,
excluding such additional payment (net of all federal, state and local
income taxes), as if Sections 280G and 4999 of the Code (and any
successor provisions thereto) had not been enacted into law.

     4. TERMINATION FOLLOWING A CHANGE IN CONTROL.

     a) In the event of the occurrence of a Change in Control, this
Agreement may be terminated by the Company during the Period of
Employment only upon the occurrence of one or more of the following
events:

     i) If the Employee is unable to perform the essential
functions of his job (with or without reasonable
accommodation) because he has become permanently disabled
within the meaning of, and actually begins to receive
disability benefits pursuant to, the long-term disability plan
in effect for senior executives or, if applicable, employees
of the Company immediately prior to the Change in Control; or

     ii) For Cause, which for purposes of this Agreement
shall mean that, prior to any termination pursuant to Section
4(b) hereof, the Employee shall have committed:

     A) Gross negligence or willful misconduct in
connection with his duties or in the course of his
employment with the Company;

-4-

 

     B) an act of fraud, embezzlement or theft in
connection with his duties or in the course of his
employment with the Company;

     C) intentional wrongful damage to property
of the Company;

     D) intentional wrongful disclosure of secret
processes or confidential information of the Company;

     E) intentional wrongful engagement in any
Competitive Activity; or

     F) an act leading to a conviction of a
felony or a misdemeanor involving moral turpitude.

     For purposes of this Agreement, no act, or failure to act, on
the part of the Employee shall be deemed intentional if it was due
primarily to an error in judgment or negligence, but shall be deemed
intentional only if done, or omitted to be done, by the Employee not in
good faith and without reasonable belief that his action or omission
was in the best interest of the Company. Notwithstanding the foregoing,
the Employee shall not be deemed to have been terminated for Cause
hereunder unless and until there shall have been delivered to the
Employee a copy of a resolution duly adopted by the affirmative vote of
not less than three-quarters of the Board then in office at a meeting
of the Board called and held for such purpose (after reasonable notice
to the Employee and an opportunity for the Employee, together with his
counsel, to be heard before the Board), finding that, in the good faith
opinion of the Board, the Employee had committed an act set forth above
in this Section 4(a)(ii) and specifying the particulars thereof in
detail. Nothing herein shall limit the right of the Employee or his
beneficiaries to contest the validity or propriety of any such
determination.

     b) in the event of the occurrence of a Change in Control, this
Agreement may be terminated by the Employee during the Period of
Employment with the right to benefits as provided in Section 5 hereof
upon the occurrence of one or more of the following events:

     i) Any termination by the Company of the employment
of the Employee for any reason other than for Cause or as a
result of the death of the Employee or by reason of the
Employee’s disability and the actual receipt of disability
benefits in accordance with Section 4(a)(i) hereof; or

     ii) Termination by the Employee of his employment
with the Company upon the occurrence of any of the following
events:

     A) A reduction in the aggregate of the
Employee’s Base Pay and Incentive Pay received from
the Company, or the termination of the Employee’s
rights to any Employee Benefits to which he was
entitled immediately prior to the Change in Control
or a reduction in scope or value thereof without the
prior written consent of the Employee, any of which
is not

-5-

 

remedied within 10 calendar days after receipt by the
Company of written notice from the Employee of such
change, reduction or termination, as the case may be;

     B) The liquidation, dissolution, merger,
consolidation or reorganization of the Company or
transfer of all or a significant portion of its
business and/or assets, unless the successor or
successors (by liquidation, merger, consolidation,
reorganization or otherwise) to which all or a
significant portion of its business and/or assets
have been transferred (directly or by operation of
law) shall have assumed all duties and obligations of
the Company under this Agreement pursuant to Section
11 hereof;

     C) The Company requires the Employee to have
his principal location of work changed to any
location which is in excess of 50 miles from the
location thereof immediately prior to the Change of
Control or to travel away from his office in the
course of discharging his responsibilities or duties
hereunder significantly more (in terms of either
consecutive days or aggregate days in any calendar
year) than was required of him prior to the Change of
Control without, in either case, his prior consent;
or

     D) Any material breach of this Agreement by
the Company or any successor thereto.

     c) A termination by the Company pursuant to Section 4(a)
hereof or by the Employee pursuant to Section 4(b) hereof shall not
affect any rights which the Employee may have pursuant to any
agreement, policy, plan, program or arrangement of the Company
providing Employee Benefits, which rights shall be governed by the
terms thereof. If this Agreement or the employment of the Employee is
terminated under circumstances in which the Employee is not entitled to
any payments under Sections 3 or 5 hereof, the Employee shall have no
further obligation or liability to the Company hereunder with respect
to his prior or any future employment by the Company.

     5. SEVERANCE COMPENSATION.

     a) If, following the occurrence of a Change in Control, the
Company shall terminate the Employee’s employment during the Period of
Employment other than pursuant to Section 4(a) hereof, or if the
Employee shall terminate his employment pursuant to Section 4(b)
hereof, the Company shall pay to the Employee the amount specified in
Section 5(a)(i) hereof within ten business days after the date (the
Termination Date) that the Employee’s employment is terminated (the
effective date of which shall be the date of termination, or such other
date that may be specified by the Employee if the termination is
pursuant to Section 4(b) hereof):

     i) In lieu of any further payments to the Employee
for periods subsequent to the Termination Date, but without
affecting the rights of the Employee referred to in Section
5(b) hereof, a lump sum payment (the Severance Payment) in

-6-

 

an amount equal to the present value (using a discount rate
required to be utilized for purposes of computations under
Section 280G of the Code or any successor provision thereto,
or if no such rate is so required to be used, a rate equal to
the then-applicable interest rate prescribed by the Pension
Benefit Guarantee Corporation for benefit valuations in
connection with non-multiemployer pension plan terminations
assuming the immediate commencement of benefit payments (the
Discount Rate) of the sum of (A) the Base Pay (at the highest
rate in effect during the Term prior to the Termination Date)
for one year, plus (B) the Incentive Pay for one year (based
upon the greatest amount of Incentive Pay paid or payable to
the Employee for any year during the three calendar years
preceding the year in which the Termination Date occurs);
provided, however, that in no event will the present value (as
determined under Section 280G of the Code or any successor
provision thereto) of the amount otherwise payable hereunder,
when added to the present value (as determined under Section
280G of the Code or any successor provision thereto) of any
other parachute payments (as that term is defined in Section
280G of the Code (without regard to Section 280G(b)(2)(A)(ii)
thereof) or any successor provision thereto) from the Company,
exceed an amount (the A299% Amount) equal to 299% of the
Employee’s base amount (as that term is defined in Section
280G of the Code or any successor provision thereto) and if
the amount otherwise payable hereunder would exceed the 299%
Amount, the Severance Payment shall be reduced to the extent
necessary so that the aggregate present value determined in
the previous clause does not exceed the 299% Amount.

     ii) The determination of whether any amount otherwise
payable under Section 5(a)(i) causes the 299% Amount to be
exceeded shall be made, if requested by the Employee or the
Company, by tax counsel selected by the Company and reasonably
acceptable to the Employee. The costs of obtaining such
determination shall be borne by the Company. The fact that the
Employee shall have his right to the Severance Payment reduced
as a result of the existence of the limitations contained in
this Section 5(a) shall not limit or otherwise affect any
rights of the Employee to any Employee Benefit, or other right
arising other than pursuant to this Agreement. Without
limiting the generality of the foregoing, upon the Employee’s
termination of employment as provided in this Section 5, the
Company shall pay over to him all vested benefits to which he
is entitled under and in accordance with the terms of the
Company’s employee savings, stock ownership, supplemental
executive retirement and similar Plans in the event such
payments are not otherwise made in accordance with the terms
of such plans.

     iii) Except to the extent that the payments or
benefits pursuant to this Section 5(a)(iii) would result in a
reduction of the amount of the Severance Payment because they
would exceed the 299% Amount, (A) for the remainder of the
Period of Employment the Company shall arrange to provide the
Employee with Employee Benefits substantially similar to those
which the Employee was receiving or entitled to receive
immediately prior to the Termination Date (and if and to the
extent that such benefits shall not or cannot be paid or
provided under any policy, plan, program or arrangement of the
Company solely due to the fact that the Employee is no longer

-7-

 

an officer or employee of the Company, then the Company shall
itself pay or provide for the payment to the Employee, his
dependents and beneficiaries, such Employee Benefits) and (B)
without limiting the generality of the foregoing, the
remainder of the Period of Employment shall be considered
service with the Company for the purpose of service credits
under the Company’s retirement income, supplemental executive
retirement and other benefit plans of the Company applicable
to the Employee or his beneficiaries immediately prior to the
Termination Date. Without otherwise limiting the purposes or
effect of Section 6 hereof, Employee Benefits payable to the
Employee pursuant to this Section 5(a)(iii) by reason of any
welfare benefit plan of the Company (as the term welfare
benefit plan is defined in Section 3(1) of the Employee
Retirement Income Security Act of 1974, as amended) shall be
reduced to the extent comparable welfare benefits are actually
received by the Employee from another employer during such
period following the Employee’s Termination Date until the
expiration of the Period of Employment.

     iv) Notwithstanding any provision of the Section 5(a)
to the contrary, in the event the benefits intended to be
provided to the Employee pursuant to Section 5(a)(iii) hereof
are required to be reduced in whole or in part because the
value of such Employee Benefits, when added to the amount of
the Severance Payment under Section 5(a)(i), would exceed 299%
Amount, the Employee shall have the option to elect to
receive, in lieu of all or a portion of the Severance Payment
provided in Section 5(a)(i) hereof, one or more Employee
Benefits, provided that (A) prior to the receipt of any
payment under Section 5(a)(i) hereof, the Employee notifies
the Company of the Employee Benefit or Employee Benefits so
elected to be received, and (B) in no event shall the
aggregate present value of the payments in the nature of
compensation (as that phrase is used in Section 280G of the
Code) received by the Employee as a result of the receipt of
such Employee Benefits, when added to the remaining portion of
the Severance Payment, if any, to be received by the Employee,
exceed the 299% Amount.

     v) In addition to all other compensation due to the
Employee, the following shall occur immediately following the
occurrence of a Change in Control:

     A) all Company stock options held by the
Employee prior to a Change in Control shall become
fully exercisable, regardless of whether or not the
vesting conditions set forth in the relevant stock
option agreements have been satisfied in full; and

     B) all restrictions on any restricted
Company stock granted to the Employee prior to a
Change in Control shall be removed and the stock
shall be freely transferable, regardless of whether
the conditions set forth in the relevant restricted
stock agreements have been satisfied in full.

     b) Upon written notice given by the Employee to the Company prior to
the receipt of any payment pursuant to Section 5(a) hereof, the Employee, at
his
sole option, without reduction to reflect the present value of such amounts as
aforesaid, may elect to have all or any of the Severance

-8-

 

Payment payable pursuant to Section 5(a)(i) hereof paid to him on a quarterly
or
monthly basis during the remainder of the Period of Employment.

     c) There shall be no right of set-off or counterclaim in respect of any
claim, debt or obligation against any payment to or benefit for the Employee
provided for in this Agreement.

     d) Without limiting the rights of the Employee at law or in equity, if
the Company fails to make any payment required to be made hereunder on a timely
basis, the Company shall pay interest on the amount thereof at an annualized
rate of interest equal to the then-applicable Discount Rate or, if lesser, the
highest rate allowed by applicable usury laws.

     6. NO MITIGATION OBLIGATION. The Company hereby acknowledges that it
will be difficult, and may be impossible, for the Employee to find reasonably
comparable employment following the Termination Date. Accordingly, the parties
hereto expressly agree that the payment of the severance compensation by the
Company to the Employee in accordance with the terms of this Agreement will be
liquidated damages, and that the Employee shall not be required to mitigate the
amount of any payment provided for in this Agreement by seeking other
employment
or otherwise, nor shall any profits, income, earnings or other benefits from
any
source whatsoever create any mitigation, offset, reduction or any other
obligation on the part of the Employee hereunder or otherwise, except as
expressly provided in Section 5(a)(iii) hereof.

     7. [Reserved]

     8. LEGAL FEES AND EXPENSES. In the event of a breach of this Agreement
by the Company, it is the intent of the Company that the Employee not be
required to incur the expenses associated with the enforcement of his rights
under this Agreement by litigation or other legal action because the cost and
expense thereof would substantially detract from the benefits intended to be
extended to the Employee hereunder. Accordingly, if the Company fails to comply
with any of its obligations under this Agreement or in the event that the
Company or any other person takes any action to declare this Agreement void or
unenforceable, or institutes any litigation designed to deny, or to recover
from, the Employee the benefits intended to be provided to the Employee
hereunder, the Company irrevocably authorizes the Employee from time to time to
retain counsel of his choice, at the expense of the Company as hereafter
provided, to represent the Employee in connection with the initiation or
defense
of any litigation or other legal action, whether by or against the Company or
any Director, officer, shareholder or other person affiliated with the Company,
in any jurisdiction. Notwithstanding any existing or prior attorney-client
relationship between the Company and such counsel, the Company irrevocably
consents to the Employee’s entering into an attorney-client relationship with
such counsel (other than Vinson & Elkins L.L.P.), and in that connection the
Company and the Employee agree that a confidential relationship shall exist
between the Employee and such counsel. The Company shall pay or cause to be
paid
and shall be solely responsible for any and all attorneys and related fees and
expenses incurred by the Employee as a result of the Company’s failure to
perform this Agreement or any provision thereof or as a result of the Company
or
any person contesting the validity or enforceability of this Agreement or any
provision thereof as

-9-

 

aforesaid. If the Company should prevail in any litigation regarding this
Agreement, however, the Company shall not be responsible for any attorneys and
related fees and expenses incurred by Employee in connection with such
litigation.

     9. EMPLOYMENT RIGHTS. Nothing expressed or implied in this Agreement
shall create any right or duty on the part of the Company or the Employee to
have the Employee remain in the employment of the Company prior to any Change
in
Control; provided, however, that any termination of employment of the Employee
or removal of the Employee as an Officer of the Company following the
commencement of any discussion with a third person that ultimately results in a
Change in Control shall be deemed to be a termination or removal of the
Employee
after a Change in Control for purposes of this Agreement.

     10. WITHHOLDING OF TAXES. The Company may withhold from any amounts
payable under this Agreement all federal, state, city or other taxes as shall
be
required pursuant to any law or government regulation or ruling.

     11. SUCCESSORS AND BINDING AGREEMENT.

     a) The Company shall require any successor (whether direct or
indirect, by purchase, merger, consolidation, reorganization or
otherwise) to all or substantially all of the business and/or assets of
the Company to execute an agreement pursuant to which the successor
expressly assumes all of the liabilities and obligations of the Company
hereunder and agrees to perform this Agreement in the same manner and
to the same extent the Company would be required to perform if no such
succession had taken place. This Agreement shall be binding upon and
inure to the benefit of the Company and any successor to the Company,
including without limitation any persons acquiring directly or
indirectly all or substantially all of the business and/or assets of
the Company whether by purchase, merger, consolidation, reorganization
or otherwise (and such successor shall thereafter be deemed the Company
for the purposes of this Agreement), but shall not otherwise be
assignable, transferable or delegable by the Company.

     b) This Agreement shall inure to the benefit of and be
enforceable by the Employee’s personal or legal representatives,
executors, administrators, successors, heirs, distributees and/or
legatees.

     c) This Agreement is personal in nature and neither of the
parties hereto shall, without the consent of the other, assign,
transfer or delegate this Agreement or any rights or obligations
hereunder except as expressly provided in Section 11(a) hereof. Without
limiting the generality of the foregoing, the Employee’s right to
receive payments hereunder shall not be assignable, transferable or
delegable, whether by pledge, creation of a security interest or
otherwise, other than by a transfer by the Employee’s will or by the
laws of descent and distribution and, in the event of any attempted
assignment or transfer contrary to this Section 11(c), the Company
shall have no liability to pay any amount so attempted to be assigned,
transferred or delegated.

-10-

 

     d) The Company and the Employee recognize that each Party will
have no adequate remedy at law for breach by the other of any of the
agreements contained herein and, in the event of any such breach, the
Company and the Employee hereby agree and consent that the other shall
be entitled to a decree of specific performance, mandamus or other
appropriate remedy to enforce performance of this Agreement.

     12. NOTICE. For all purposes of this Agreement, all communications
provided for herein shall be in writing and shall be deemed to have been duly
given when delivered or three business days after having been mailed by United
States registered or certified mail, return receipt requested, postage prepaid,
addressed to the Company (to the attention of the Secretary of the Company) at
its principal executive office and to the Employee at his principal residence,
or to such other address as any party may have furnished to the other in
writing
and in accordance herewith, except that notices of change of address shall be
effective only upon receipt.

     13. GOVERNING LAW. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of
Texas, without giving effect to the principles of conflict of laws of such
State.

     14. VALIDITY. If any provision of this Agreement or the application of
any provision hereof to any person or circumstances is held invalid,
unenforceable or otherwise illegal, the remainder of this Agreement and the
application of such provision to any other person or circumstances shall not be
affected, and the provision so held to be invalid, unenforceable or otherwise
illegal shall be reformed to the extent (and only to the extent) necessary to
make it enforceable, valid and legal.

     15. MISCELLANEOUS. No provisions of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing signed by the Employee and the Company. No waiver by either party
hereto at any time of any breach by the other party hereto or compliance with
any condition or provision of this Agreement to be performed by such other
party
shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any prior or subsequent time. No agreements or representations,
oral or otherwise, expressed or implied with respect to the subject matter
hereof have been made by either party which are not set forth expressly in this
Agreement.

     16. PRIOR AGREEMENTS. This Agreement is voluntarily entered into and
supersedes and takes the place of any prior change in control, severance or
employment agreements between the parties hereto. The parties hereto expressly
agree and hereby declare that any and all prior change in control, severance or
employment agreements between the parties are terminated and of no force or
effect.

     17. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same agreement.

-11-

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed and delivered as of the date first above written.

	 	 	 	 	 
	 	SOUTHWEST BANCORPORATION OF TEXAS, INC.

 	 
	 	By:  	 	 
	 	 	Paul B. Murphy, Jr. 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	 EMPLOYEE:	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 

-12-

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