Document:

ex10_2paa.htm

C.K. Cooper & Company

October 25, 2012

CONFIDENTIAL

ROYALE ENERGY, INC.

7676 Hazard Center Drive, Ste. 1500

San Diego, CA  92108

Attention:  Mr. Stephen Hosmer

RE:  Proposed Placement

Dear Mr. Hosmer:

This letter agreement will confirm our understanding that C. K. Cooper & Company, Inc. (“CKCC”) has been engaged to act as placement agent (the “Agent”) to Royale Energy, Inc. (the “Company”) in a proposed placement of convertible notes, and warrants (the “Securities”) by the Company (the “Transaction”).  The term of this engagement shall extend from the date of execution of this Agreement through November 15, 2012 (the “Termination Date”) with the option of a 30-day extension upon the mutual agreement of CKCC and the Company.

The Securities will be offered to accredited investors (the “Investors”) mutually agreed upon by the Company and the Agent.  The form, number, and price of the Securities issued in the Transaction and the timing and closing of a Transaction, if any, will be at the Company’s sole and unilateral discretion.  The Company shall have the right to accept or reject investments from any party at the Company’s sole and unilateral discretion.

In its capacity as placement agent, the Agent will, upon request:

 

	
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assist the Company in the preparation of materials for distribution to potential Investors;

 

	
·  

	
solicit offers from potential Investors, assist the Company with structuring the proposed offering terms, and participate in, and assist the Company with negotiations in connection with the consummation of the Transaction; and

 

	
·  

	
Assist and coordinate the closing of the Transaction.

 

 

 

 

4 Park Plaza, Suite 1900, Irvine, California 92614

TEL: 949 477-9300 – FAX: 949 477-9211 -  TOLL-FREE 888 477-9301 – administration@ckcooper.com

 

  

  

  

Royale Energy, Inc.

October 25, 2012

Page 2 

 

The Company agrees to pay the Agent as compensation for their services under this engagement a cash fee equal to 5.00% (the “Transaction Fee”) of the aggregate gross proceeds received by the Company from the sale of Securities in a Transaction that occurs on or prior to the Termination Date. The Transaction Fee shall be due and payable on the closing of the Transaction, provided that the Transaction shall have closed on or before the Termination Date, and shall not be due or payable if the Company determines not to close any Transaction or with respect to any sales of securities by the Company occurring after the Termination Date.

 

Should the Agent determine to engage other qualified broker/dealers (“Soliciting Dealers”) to assist in the distribution of any such Securities, it may, at their discretion, re-allow any portion of the compensation due to the Agent hereunder to such participating Soliciting Dealers.

In addition, the Company shall, promptly upon request and submission of reasonable documentation to the Company, reimburse the Agent for all reasonable and documented out-of-pocket expenses incurred in connection with the Transaction (whether or not it closes), which expenses shall not exceed, in the aggregate, $10,000 (including legal fees and expenses, if any) without the prior written approval of the Company.

Nothing contained herein constitutes a commitment on the part of the Company or the Agent to complete any Transaction and the Agent shall not have the power or authority to bind the Company to any terms or conditions of a Transaction.  It is understood and agreed that this letter agreement does not constitute a commitment by the Company to offer, issue or sell any Securities or by the Agent to purchase or underwrite the sale of any Securities.

 

The Company will furnish the Agent with such information and documents regarding the Company and its business and financial condition (all such documents and materials, including those documents and materials prepared for Investors, and all information filed by the Company with the Securities and Exchange Commission (the “SEC”) shall be, the “Information”) as the Agent reasonably believes relevant and appropriate to perform its services under this letter agreement.  The Company agrees to cooperate fully with the Agent in connection with its engagement hereunder and agrees to commit such time and other resources as are reasonably necessary or appropriate to secure reasonable and timely success of the Transaction.  The Company authorizes the Agent to transmit to qualified prospective Investors copies of any public information prepared by the Company and any other information, as well as purchase agreements or other legal documentation approved by the Company for use in connection with a Transaction.  The Agent agrees not to provide any material non-public information concerning the Company to any party unless (i) the party receiving such information agrees, in a form acceptable to the Company, to maintain the confidentiality of such information, and (ii) the Company consents thereto prior to Agent providing any such material non-public information.

 

The Company recognizes and agrees that, in performing the services contemplated herein, the Agent will be relying solely on the Information and that the Information will not be independently verified by the Agent.  Accordingly, the Company agrees that the Information, considered as a whole, will be complete and accurate in all material respects and not misleading.  In addition, the Company agrees that all information regarding the Securities, including any term sheet, descriptions or other documentation, shall be complete and accurate in all respects and not misleading.  The Company shall advise the Agent promptly if it learns of any material inaccuracy, any omission of a material fact or any misleading statement in the Information or the information regarding the Securities.  The Company agrees that the Agent does not have any responsibility for the accuracy or completeness of the Information; provided that the Company and its counsel have approved all information or materials presented to prospective Investors in advance.  Except as otherwise disclosed in the Company’s reports and filings with the SEC,

 

  

  

  

Royale Energy, Inc.

October 25, 2012

Page 3 

(i) the Company has timely filed all reports required to be filed under the Securities Exchange Act of 1934, as amended (the “1934 Act”), and any other material reports or documents required to be filed with the SEC in the last twelve months, and (ii) all such reports and documents and any registration statements or prospectuses filed under Securities Act of 1933, as amended (the “Act”) complied, when filed, in all material respects with all applicable requirements of the 1934 Act and the Act, respectively.

 

The Company and CKCC shall have the right to approve every form of written communication from the Company or any parties acting on its behalf (including CKCC) to any offeree or purchaser in connection with the offer and sale of the Securities hereunder.  Neither the Company nor any parties acting on its behalf (including the Agent) will offer or sell the Securities by any form of general solicitation or general advertising, including, but not limited to, the methods described in Rule 502(c) under the Act.

 

The Company and the Agent will conduct the offering and sale of the Securities in a manner intended to qualify for the exemption from the registration requirements of the Act provided by Section 4(2) thereof and Regulation D thereunder and each will limit offers to sell, and solicitations of offers to buy, the Securities to persons reasonably believed by them to be an “accredited investor”, as that term is defined in Rule 501(a) under the Act.

 

The Company shall be responsible for compliance with the filing requirements of the securities laws of states and other jurisdictions and shall make all filings and take all other actions are required in connection with compliance with such laws.  Neither the Company nor its affiliates will, directly or indirectly, make any offer or sale of any of the Securities or any securities of the same or a similar class as the Securities, in violation of registration and qualification requirements under applicable Federal securities laws, state “blue sky” laws or the securities laws of any other jurisdiction (collectively, the “Registration Requirements”).  The Company has not engaged in any offering of its securities that would jeopardize the availability of the Registration Requirements.

 

In the event the Company or the Agent delivers certain documents and information relating to this engagement via electronic transmissions, the Company and the Agent acknowledge and agree that the privacy and integrity of the electronic transmissions cannot be guaranteed due to the possibility that third parties could intercept, view or alter such electronic transmissions.  To the extent that any documents or information relating to this engagement are transmitted electronically, the Company and the Agent agree to release each other from any loss or liability incurred in connection with the electronic transmission of any such documents and information, including the unauthorized interception, alteration, or fraudulent generation and transmission of electronic transmission by third parties but excluding gross negligence and/or willful misconduct on the part of the Company or the Agent.  Except for gross negligence and/or willful misconduct by the Company or the Agent, the Company and the Agent will not be liable for any ordinary, direct, indirect, consequential, incidental, special, punitive or exemplary damages arising out of the foregoing, regardless of whether the Company or the Agent have been apprised of the likelihood of such damages occurring.

 

The Company agrees that all advice and any documents prepared or given by the Agent in connection with its engagement hereunder is for the benefit and use of the Company in connection with the services covered by this letter agreement and that no such advice or documents shall be used for any other purpose or be disclosed, reproduced, disseminated, quoted or referred to at any time, in any manner or for any purpose, nor shall any public references to the Agent or the documents be made by or on behalf of the Company, in each case without the Agent’s prior written consent, which consent shall not be unreasonably withheld, delayed, denied or conditioned.

The Company agrees that the Agent has been retained to act solely as placement agent to the Company, and not as an advisor to or agent of any other person, and that the Company’s engagement of the Agent is not intended to confer rights upon any person not a party hereto (including stockholders,

  

  

  

Royale Energy, Inc.

October 25, 2012

Page 4 

employees or creditors of the Company) as against the Agent or its affiliates, or their directors, officers, employees or agents.  The Company acknowledges that the Agent will act as an independent contractor under this letter agreement and will not assume the responsibilities of a fiduciary to the Company or its stockholders in connection with the performance of the services hereunder.

The Company acknowledges that CKCC is a full service securities firm engaged in a broad range of securities activities and financial services, including securities trading, investment management, financing and brokerage activities.  In the ordinary course the Agent or its affiliates (i) may at any time hold long or short positions, and may trade or otherwise effect transactions, for the Agent’s own account or the accounts of customers, in debt or equity securities of the Company or any other company that may be involved in any proposed transaction and (ii) may at any time be providing or arranging financing and other financial services to other companies that may be involved in a competing transaction.  Further, the Agent acknowledges that it shall place the Company’s securities on its “Restricted List” during the duration of this engagement.

In addition, the Agent and its affiliates may from time to time perform various investment banking and financial advisory services for other companies which may have conflicting interests with the Company.  The Agent will not use or disclose any confidential information of the Company obtained during its engagement hereunder in connection with its representation of such companies and will not disclose confidential information of such other companies to the Company.

The Company acknowledges that the Agent does not provide legal, tax or accounting advice and that the Company confirms that it will rely on its own independent advisors for such advice.

The Company and the Agent agree to the provisions with respect to the Company’s indemnity of the Agent and other matters set forth in Schedule A, the terms of which are incorporated herein in their entirety.

The Agent’s engagement hereunder may be terminated, prior to the Termination Date, at any time by the Agent or the Company.  It is further understood that upon termination, this letter agreement shall have no further force or effect, except that any termination of the Agent’s engagement hereunder for any reason shall not affect the Company’s obligations to provide indemnification as provided in Schedule A hereto, and to reimburse expenses as set forth herein and therein.  In the event that the Agent terminates this letter agreement, the Agent shall not be entitled to any further payment resulting from this engagement as set forth above.  In addition, provisions relating to the status of the Agent as an independent contractor, the limitation on to whom the Agent shall owe any duties, governing law, successors and assigns, and the waiver of the right to trial by jury shall survive any termination of this letter agreement.

This letter agreement, including all Schedules, and any rights, duties or obligations hereunder may not be waived, amended, modified or assigned, in any way, in whole or in part, including by operation of law, without the prior written consent of, and shall inure to the benefit of and be binding upon the successors, assigns and personal representatives of, each of the parties hereto.  This letter agreement embodies the entire agreement and understanding of the parties and supersedes all prior agreements and understandings relating to the subject matter hereof.

The Company acknowledges that if the Transaction closes, the Agent may place standard “tombstone” advertisements in mailings and financial and other newspapers and journals at the Agent’s expense describing its services to the Company for any publicly announced Transaction and use the Company’s logo, provided that the Agent will not disclose, without the Company’s consent, the size of the Transaction or proceeds received by the Company in such advertisements unless such information is already publicly available.

  

  

  

Royale Energy, Inc.

October 25, 2012

Page 5 

Schedule A to this letter agreement is an integral part of this letter agreement and shall survive any termination or expiration hereof.  In case any provision of this letter agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions of this letter agreement shall not in any way be affected or impaired thereby.  This letter agreement and any claim or dispute of any kind or nature whatsoever arising out or, or relating to, this letter agreement or the Agent engagement hereunder, directly or indirectly (including any claim concerning advice provided pursuant to this letter agreement), shall be governed by and construed in accordance with the laws of the State of California, without regard to conflicts of law principles.  Any rights to trial by jury with respect to any claim, action or proceeding, directly or indirectly, arising out of, or relating to, this letter agreement or the Agent engagement hereunder are waived by the Agent and the Company.

We are pleased to accept this engagement and look forward to working with the Company.  Please confirm that the foregoing is in accordance with your understanding by signing and returning to us the enclosed duplicate of this letter, which shall thereupon constitute a binding agreement.

 

 

	 	 Very truly yours,
	 	 C. K. COOPER & COMPANY, INC.
	 	 
	 	 
	 	 By   /s/ Alexander G. Montano
	 	 Name:  Alexander G. Montano
	 	 Title:    Managing Director

 

  

Accepted and agreed to as of the date first written above:

ROYALE ENERGY, INC.

By     /s/ Stephen M. Hosmer

    Name:     Stephen M. Hosmer

    Title:       Co-President & Co-CEO

  

  

  

SCHEDULE A

INDEMNIFICATION

The Company agrees to indemnify the Agent, any controlling person of the Agent and each of their respective directors, officers, employees, agents, affiliates and representatives (each, an “Indemnified Party”) and hold each of them harmless against any and all losses, claims, damages, expenses, liabilities, joint or several (collectively, “Liabilities”) to which the Indemnified Parties may become liable, directly or indirectly, arising out of or relating to the engagement under the letter agreement to which this Schedule A is attached (the “Letter Agreement”), unless it is finally judicially determined that the Liabilities resulted from the gross negligence or willful misconduct of any Indemnified Party.  The Company further agrees to reimburse each Indemnified Party promptly upon written request and receipt of evidence reasonably satisfactory to the Company for all reasonable expenses (including reasonable attorneys’ fees and expenses) as they are incurred in connection with the investigation of, preparation for, defense of, or providing evidence in, any action, claim, suit, proceeding or investigation, directly or indirectly, arising out of, or relating to, the engagement under the Letter Agreement, whether or not pending or threatened and whether or not any Indemnified party is a formal part to such proceeding; provided, however, that if it is finally judicially determined that the Liabilities resulted from the gross negligence or willful misconduct of any Indemnified Party, such Indemnified Party shall remit to the Company any amounts reimbursed pursuant to this sentence.  The Company also agrees that no Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Company or any person asserting claims on behalf of or in right of the Company, directly or indirectly, arising out of, or relating to, the engagement under the Letter Agreement, unless it is finally judicially determined that such liability resulted from the gross negligence or willful misconduct of such Indemnified Party.  In the event that an Indemnified Party is requested or required to appear as a witness in any action brought by or on behalf of or against the Company or any affiliate of the Company, in which such Indemnified Party is not named (and is not subsequently named) as a defendant, the Company agrees to reimburse such party for all reasonable expenses incurred by it in connection with such Indemnified Party’s appearing in preparing to appear as such a witness, including, without limitation, the reasonable fees and disbursements of its outside legal counsel.

An Indemnified Party shall promptly notify the Company in writing as to any action, claim, suit, proceeding or investigation for which indemnity may be sought, but the omission so to notify the Company will not relieve the Company from any liability which it may have to any Indemnified Party hereunder to the extent that it is not materially prejudiced as a result of such failure.  After such notice to the Company, the Company shall be entitled to participate in, and to the extent that it shall elect by written notice delivered to such Indemnified Party promptly after receiving the aforesaid notice of such Indemnified Party, to assume the defense thereof with counsel reasonably satisfactory to such Indemnified Party to represent such Indemnified Party in such action, claim, suit, proceeding or investigation and shall pay as incurred the reasonable fees and expenses of such counsel related to such action,  claim, suit, proceeding or investigation.  In any action, claim, suit, proceeding or investigation, any Indemnified Party shall have the right to retain its own separate counsel at such Indemnified Party’s own expense and not subject to reimbursement by the Company; provided, however, that the Company shall pay as incurred the reasonable fees and expenses of such counsel incurred in connection with investigating, preparing, defending, paying, settling or compromising any action, claim, suit, proceeding or investigation if (i) the parties to such action, claim, suit, proceeding or investigation include both the Indemnified Party and the Company; (ii) the use of counsel chosen by the Company to represent both the Company and such Indemnified Party would present such counsel with an actual or potential conflict of interest; or (iii) the Company shall authorize the Indemnified Party to employ separate counsel (in addition to any local counsel) at the expense of the Company.  The Company shall not, in connection with any action, claim, suit, proceeding or investigation, be liable for the fees and expenses of more than one separate law firm (in addition to any local counsel) for all Indemnified Parties, and in the event that

  

  

  

separate counsel is to be retained to represent one or more Indemnified parties, such separate counsel shall be chosen by CKCC and the Indemnified Parties shall be liable for the fees and expenses of such separate counsel.  The Company will not be liable for any settlement, compromise or consent to the entry of any judgment in action, claim, suit, proceeding, or investigation affected without the prior written consent of the Company, which consent shall not be unreasonable withheld, delayed, denied, or conditioned.

The Company agrees that, with CKCC’s prior written consent, it will not settle, compromise or consent to the entry of any judgment in any claim, action, suit, proceeding or investigation in respect of which indemnification could be sought hereunder (whether or not CKCC or any other Indemnified Party is an actual or potential party to such claim, action, suit, proceeding or investigation), unless (a) such settlement, compromise, consent or termination includes an unconditional release of each Indemnified Party from any liabilities arising out of such claim, action, suit, proceeding or investigation, (b) such settlement does not admit any wrongdoing by CKCC and (c) the parties agree that the terms of such settlement shall remain confidential.

The Company and CKCC agree that if any indemnification or reimbursement sought pursuant to the first paragraph of this Schedule A is for any reason unavailable or insufficient to hold it harmless (except by reason of the gross negligence or willful misconduct of an Indemnified Party) then, whether or not CKCC is the person entitled to indemnification or reimbursement, the Company and CKCC shall contribute to the Liabilities for which such indemnification or reimbursement is held unavailable in such proportion as appropriate to reflect (a) the relative benefits to the Company on the one hand and CKCC on the other hand, in connection with the transaction to which such indemnification or reimbursement relates or (b) if the allocation provided by clause (a) above is not available, in such proportion as is appropriate to reflect not only the relative benefits referred to in such clause (a), but also the relative fault of the parties as well as any other relevant equitable considerations, provided, however, that in no event shall the amount to be contributed by CKCC exceed the fees actually received by CKCC under the Letter Agreement.

The rights of the Indemnified Parties referred to above shall be in addition to any rights that any Indemnified Party may otherwise have.WTBA 2012.10.29 Exhibit 10.1

Exhibit 10.1

West Bancorporation, Inc.
Deferred Compensation Plan
1.Purpose.  The purpose of the West Bancorporation, Inc. Deferred Compensation Plan is to enable directors and selected key officers of West Bancorporation, Inc. and its Subsidiaries to elect to defer all or a portion of the fees and compensation payable in cash by the Company or a Subsidiary on account of service as a director or employee.  The Plan is intended to serve as a means of maximizing the effectiveness and flexibility of the compensation arrangements of Participants and as an aid in attracting and retaining individuals of outstanding abilities and specialized skills for service with the Company and/or a Subsidiary.  The Plan shall be an unfunded plan for tax purposes and for purposes of Title I of ERISA, and is maintained primarily for the purpose of providing deferred compensation for a select group of directors and officers.

2.Terms.  As used in the Plan, capitalized terms have the meanings set forth in Section 16.

3.Effective Date.  The Plan is effective as of January 1, 2013.

4.Plan Administration.  The Plan shall be administered by the Committee.  The Committee has the sole authority to select the individuals, from among those eligible, who may participate under the Plan, and to establish all other participation requirements.  The Committee is authorized to interpret the Plan and may from time to time adopt such rules, regulations, forms and agreements, not inconsistent with the provisions of the Plan, as it deems advisable to carry out the Plan.  Any decision made by the Committee under the Plan shall be in its sole discretion and final and binding on the Participants involved and all other individuals.

5.Eligibility and Participation

(a)Eligibility.  Any director or key officer of the Company or a Subsidiary may be designated by the Committee to participate in the Plan; provided, however, that employees eligible for designation shall be limited to a select group of officers or highly compensated employees within the meaning of Section 201(2) of ERISA.

(b)Participation.  Any eligible director or key officer shall be a “Participant” as of the date designated by the Committee, and his or her status as a Participant shall continue until the date on which all payments due under the terms of the Plan have been made.

6.Election to Defer Income

(a)In General.  To the extent permitted by the Committee, for any particular Plan Year or particular Participant, a Participant may be given the opportunity to make an irrevocable election (“Election”) to defer receipt of all or a portion of the fees or compensation otherwise payable to the Participant in cash (“Income”).  Income with respect to which an Election has been made (and has not been revoked) shall be referred to hereinafter as “Deferred Income.”  

(b)Timing of Elections.  An Election to defer receipt of Income under the Plan shall be properly filed with the Company based upon deadlines established by the Committee, as may be reflected in the applicable Election, but in no event later than the following, as applicable:

(i)The last business day of the calendar year preceding the year in which the Income is earned, or such earlier time as established by the Committee;

(ii)30 days after the respective Participant first becomes eligible to participate in the Plan; provided that Income with respect to which the Election is made only relates to services performed after the date of the Election; and provided, further, that if the Participant was eligible to participate in any account balance plans sponsored by the Company or an affiliate (as contemplated in the plan aggregation rules under Code Section 409A) prior to becoming eligible to participate in the Plan, the initial deferral election under the Plan shall not be effective until the calendar year following the calendar year in which the Participant became eligible to participate in the Plan; or

(iii)Six months prior to the end of an applicable performance period; provided that such Election is with respect to compensation that qualifies as “performance-based compensation” as defined under Code Section 409A.

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Unless otherwise provided by the Committee, all Elections shall continue in effect until the Participant delivers to the Company a written modification of an Election or a written revocation of an Election in a form designated by the Committee.  Absent revocation of an Election, the Election shall automatically apply to each subsequent calendar year.
(c)Manner of Election.  Elections shall be made in writing in accordance with Code Section 409A and with such rules and procedures as the Committee may prescribe; provided, however, that each Election to defer shall specify the amount to be deferred, expressed either as a fixed dollar amount or a percentage of Income, and the time and manner of payment.

(d)Modification of Election.  Modifications to existing Elections that change the timing or method of payment shall be subject to the following:

(i)The revised Election may not take effect until at least 12 months after the date it is filed with the Committee; and

(ii)The revised Election relating to a specified payment time or fixed payment schedule shall be made not later than 12 months prior to the first scheduled payment date reflected in the most recent Election; and 

(iii)To the extent required under Code Section 409A, the revised payment date shall be not sooner than the five-year anniversary of the previously scheduled payment date.
  
(e)Revocation of Election.  In the case of an Unforeseeable Financial Emergency, the Participant's Election, if any, shall be canceled for the remainder of the calendar year, as permitted under Code Section 409A.

7.Company Contributions

(a)The Company and/or any Subsidiary shall have the right, in its sole discretion, at any time, for any reason, to make contributions to the Plan on behalf of any Participant (“Company Contributions”).  Company Contributions shall be made pursuant to a written notice that sets forth the terms and conditions of the award (“Award Notice”).

(b)Company Contributions may take the form of a single contribution, a series of contributions, matching contributions or any combination thereof, and may be determined on the basis of criteria determined by the Committee.

(c)The Committee reserves the right to subject any or all Company Contributions to restrictions and other terms or conditions, in its sole discretion.

(d)Receipt of a Company Contribution shall not entitle the Participant to any future Company Contribution and shall not entitle any other Participant to a Company Contribution.

8.Record and Crediting of Deferred Amounts

(a)Deferred Income Account.  The Company shall credit the amount of any Deferred Income to a memorandum account on the Company's or applicable Subsidiary's books and records/financial statements for the benefit of the Participant (“Deferred Income Account”) no later than the last day of the calendar quarter in which such Income would otherwise have been paid to the Participant.  As of each Valuation Date and until such time as the Participant's Deferred Income Account is fully distributed, the Participant's Deferred Income Account shall be credited with a notional rate of return based upon the rate determined by the Committee (the “Interest Rate”).  The Interest Rate for the Deferred Income Account as of the Effective Date shall be [____________________] as of January 1 of the applicable Plan Year, subject to change from time to time by the Committee.

(b)Company Contribution Account.  The Company shall credit the amount of any Company Contributions to a memorandum account on the Company's or applicable Subsidiary's books and records/financial statements for the benefit of the Participant (“Company Contribution Account”) as may be provided by the Committee at the time of such award.  As of each Valuation Date and until such time as the Participant's Company Contribution Account is fully distributed, the Participant's Company Contribution Account shall be credited with the Interest Rate.  As of the Effective Date, the Interest Rate for the Company Contribution Account, which may or may not be the same notional rate of return used for purposes of the Deferred Income Account, shall be [____________________] as of January 1 of the applicable Plan Year, subject to change from time to time by the Committee.

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(c)Value and Statement of Account.  The Company shall provide each Participant with a statement of the activity in, and value of, the Participant's Plan Account, including the amount of Deferred Income, Company Contributions and any income or loss attributable to the respective Plan Account, determined as of the Valuation Date, or more frequently as may be determined by the Committee.

9.Payment of Plan Account

(a)In General.  No withdrawals or payments shall be made from the Plan Accounts except as provided in this Section 9.

(b)Payment Events.  Subject to Section 9(c) and Section 15(l), a Deferred Income Account shall be payable in either a single payment or up to 10 annual installments commencing on the first day of the month following the occurrence of a Payment Event, as shall be reflected in the most recently applicable Election.  All rules applicable to the distribution of a Company Contribution Account shall be specified in the applicable Award Notice.  In the event an Election or Award Notice has not provided specific rules with respect to the distribution of the Plan Account, such distribution shall be made in accordance with this Section 9.  A “Payment Event” shall be the earliest of the following to occur:

(i)The Participant's Separation from Service;
 
(ii)The Participant's death or Disability; or

(iii)A date certain, as may be specified in the Election.

(c)Manner of Payment.  A Participant may make an Election, consistent with Section 6, to receive a distribution of the Participant's Deferred Income Account in either a single payment or in up to 10 annual installments; if the Participant elects more than one installment payment, the amount of each installment payment shall be a fraction of the value of the Participant's Plan Account, determined as of the Valuation Date preceding the date of the installment payment, the numerator of which is one and the denominator of which is the total number of installments elected minus the number of installments previously paid.  If no Election is made in accordance with this Section 9(c), distribution of the Participant's Deferred Income Account shall be made in a single payment on the first day of the month following the occurrence of a Payment Event.

(d)Hardship Distributions.  The Committee, whether or not a Payment Event has occurred, may accelerate payment of amounts credited to a Participant's Deferred Income Account (and, if permitted by the Committee, the Company Contribution Account) if requested by the Participant and if the requirements of this Section 9(d) are met.  Such acceleration may occur only in the event of an Unforeseeable Financial Emergency, and the amount of any distribution shall be limited to the amount deemed reasonably necessary to satisfy such Unforeseeable Financial Emergency.  As provided in Section 6(e), upon payment of a benefit to a Participant due to an Unforeseeable Financial Emergency, such Participant's Election, if any, for the remainder of the calendar year shall be canceled.

(e)Death or Disability of Participant.  In the event that a Participant shall die or become Disabled at any time prior to complete distribution of all amounts payable to the Participant under the provisions of the Plan, (i) the unpaid balance of the Participant's Deferred Income Account shall be paid to the Participant or the Participant's Beneficiary or Beneficiaries in a lump sum within 90 days, unless another form of payment is provided in the Participant's most recent Election and has been in place for at least 12 months and (ii) the unpaid balance of the Participant's Company Contribution Account shall be paid to the Participant or the Participant's beneficiary as provided in the applicable Award Notice.
  
(f)Tax Withholding.  The Company may withhold any taxes that are required to be withheld from the benefits provided under the Plan.  The Company's sole liability regarding taxes shall be to forward any amounts withheld to the appropriate taxing authorities and to satisfy all applicable reporting requirements.

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(g)Limited Cashout.  Notwithstanding any provision of the Plan or any Election or Award Notice to the contrary, if a Participant's Plan Accounts have a combined balance at the time of the Participant's Separation from Service (along with any other nonqualified deferred compensation that must be aggregated with the Plan pursuant to Code Section 409A) that is not greater than the applicable dollar limit under Code Section 402(g)(1)(B) ($17,000 for calendar year 2012), the Participant's balance in his or her Plan Account, and all other plans aggregated pursuant to Code Section 409A, may, in the Company's discretion, be distributed in a single lump sum prior to two and one‐half months following the end of the calendar year in which the Separation from Service occurs.  Upon the date of payment pursuant to this Section, the Participant shall have no further interest under the Plan or any similar deferred compensation arrangements with the Company (as provided in the plan aggregation rules under Code Section 409A).

10.Effect of Change in Control.  In the event of a Change in Control, (a) the entire unpaid balance of each Deferred Income Account shall be distributed in a single lump sum to the Participant as of the effective date thereof and (b) the entire unpaid balance of the Participant's Company Contribution Account shall continue to be distributed to the Participant as provided in the applicable Award Notice.

11.Beneficiaries

(a)Automatic Beneficiary.  Unless a Participant has designated a Beneficiary in accordance with the provisions of Section 11(b), the Beneficiary shall be deemed to be the person or persons in the first of the following classes in which there are any survivors of such Participant or former Participant:

(i)Spouse at the time of the Participant's death,

(ii)Issue, per stirpes,

(iii)Parents, or

(iv)Executor or administrator of the Participant's estate.

(b)Designated Beneficiary or Beneficiaries.  A Participant may sign a document prescribed by the Committee designating a “Beneficiary” or “Beneficiaries” to receive any benefit payable under the Plan and shall provide such document to the Committee.  In the event a Participant dies at a time when a designation is on file that does not dispose of the total benefit distributable under the Plan, then the portion of such benefit distributable on behalf of said Participant, the disposition of which was not determined by the deceased's designation, shall be distributed to a Beneficiary determined under Section 11(a).  Any ambiguity in a Beneficiary designation shall be resolved by the Committee.

12.Unsecured Obligations

(a)Unsecured Obligations.  The obligation of the Company to make payments under the Plan shall be a general obligation of the Company, and such payments shall be made from general assets and property of the Company.  The Company shall not be obligated to set aside, earmark or escrow any funds or other assets to satisfy its obligations under the Plan.  In the event that the Participant is employed by a Subsidiary of the Company, the obligation to the Participant under the Plan shall be that of such Subsidiary and not the Company; accordingly, in such circumstances, references to the Company herein may be references to such Subsidiary.  Where the obligation to make payments under the Plan is that of a Subsidiary of the Company, the Company shall not be a guarantor of such obligation, nor shall any other Subsidiary of the Company be such a guarantor.  Where the Participant is employed by the Company or a Subsidiary and one or more other Subsidiaries of the Company, the obligation to make payments under the Plan with respect to such Participant shall be allocated in a manner consistent with the allocation of the compensation expense among the Company and the Subsidiaries for such Participant.  The Participant's relationship to the Company under the Plan shall be that of a general unsecured creditor only and neither the Plan nor any agreement entered into hereunder or action taken pursuant hereto shall create or be construed to create a trust or fiduciary relationship of any kind.  The Company may establish an irrevocable grantor trust for purposes of holding and investing the Plan Account balances but such establishment shall not create any rights in or against any amount so held.

(b)Investments.  In its sole discretion, the Company may acquire insurance policies, annuities or other financial vehicles for the purpose of providing future assets of the Company to meet its anticipated liabilities under the Plan.  Such policies, annuities or other investments shall at all times be and remain unrestricted general property and assets of the Company or property of a trust.  Participants and Beneficiaries shall have no rights, other than as general unsecured creditors, with respect to such policies, annuities or other acquired assets.

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13.Claims Administration

(a)Claims Procedure.  A Participant or Beneficiary (“claimant”) who has not received benefits under the Plan that he or she believes should be distributed shall make a claim for such benefits as set forth below.

(i)Initiation - Written Claim.  The claimant may initiate a claim by submitting to the Company a written claim for benefits.  If such a claim relates to the contents of a notice received by the claimant, the claim shall be made within 60 days after such notice was received by the claimant; all other claims shall be made within 180 days of the date on which the event that caused the claim to arise occurred.  The claim shall state with particularity the determination desired by the claimant.

(ii)Timing of Company Response.  The Company shall respond to such claimant within 90 days (45 days for a claim based on Disability) after receiving the claim.  If the Company determines that special circumstances require additional time for processing the claim, the Company can extend the response period by an additional 90 days (45 days for a claim based on Disability) by notifying the claimant in writing, prior to the end of the initial 90-day period (45-day period for a claim based on Disability), that an additional period is required.  The notice of extension shall set forth the special circumstances and the date by which the Company expects to render its decision.

(iii)Notice of Decision.  If the Company denies part or all of the claim, the Company shall notify the claimant in writing of such denial.  The Company shall write the notification in a manner calculated to be understood by the claimant.  The notification shall set forth: (i) the specific reasons for the denial; (ii) a reference to the specific provisions of the Plan on which the denial is based; (iii) a description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it is needed; (iv) an explanation of the Plan's review procedures and the time limits applicable to such procedures; and (v) a statement of the claimant's right to bring a civil action under Section 502(a) of ERISA following an adverse benefit determination on review.

(b)Review Procedure.  If the Company denies part or all of the claim, the claimant shall have the opportunity for a full and fair review by the Company of the denial as set forth below.

(i)Initiation - Written Request.  To initiate the review, the claimant shall file with the Company a written request for review within 60 days (180 days for a claim based on Disability) after receiving the Company's notice of denial.

(ii)Additional Submissions - Information Access.  The claimant shall then have the opportunity to submit written comments, documents, records and other information relating to the claim.  The Company shall also provide the claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant's claim for benefits.

(iii)Considerations on Review.  In considering the review, the Company shall take into account all materials and information the claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.

(iv)Timing of Company Response.  The Company shall respond in writing to such claimant within 60 days (45 days for a claim based on Disability) after receiving the request for review.  If the Company determines that special circumstances require additional time for processing the claim, the Company may extend the response period by an additional 60 days (45 days for a claim based on Disability) by notifying the claimant in writing, prior to the end of the initial 60-day period (45-day period for a claim based on Disability), that an additional period is required.  The notice of extension shall set forth the special circumstances and the date by which the Company expects to render its decision.

(v)Notice of Decision.  The Company shall notify the claimant in writing of its decision on review.  The Company shall write the notification in a manner calculated to be understood by the claimant.  The notification shall set forth: (i) the specific reasons for the denial; (ii) a reference to the specific provisions of the Plan on which the denial is based; (iii) a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant's claim for benefits; and (iv) a statement of the claimant's right to bring a civil action under Section 502(a) of ERISA.

(c)Designation.  The Company may designate any other person of its choosing to make any determination otherwise required under this Section.

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(d)Legal Action.  A claimant's compliance with the foregoing provisions of this Section is a mandatory prerequisite to a claimant's right to commence any legal action with respect to any claim for benefits under the Plan.

14.Amendment and Termination

(a)Amendment.  The Committee may at any time amend the Plan in whole or in part; provided, however, that no amendment shall decrease any amount then credited to a Plan Account.

(b)Company's Right to Terminate.  Although the Company anticipates that it will continue the Plan for an indefinite period of time, there is no guarantee that the Company will continue the Plan or will not terminate the Plan at some time in the future.  Accordingly, to the maximum extent permitted pursuant to Code Section 409A, the Company reserves the right to discontinue its sponsorship of the Plan and/or to terminate the Plan at any time with respect to any or all of the Participants by action of the Board.  Upon the termination of the Plan, each Plan Account shall remain in the Plan until the Participant becomes eligible for the benefits provided under the Plan in accordance with the terms of the Plan unless otherwise permitted by Code Section 409A.  The termination of the Plan shall not adversely affect any Participant or Beneficiary who has become entitled to the payment of any benefits under the Plan as of the date of termination.  Notwithstanding the foregoing provisions of this Section 14(b), if the Board determines that it is permissible to distribute a Plan Account by reason of Plan termination without violating the prohibition on acceleration of payments under Code Section 409A, the Board may elect to distribute a Plan Account following termination of the Plan, in which case the date of the Plan termination will be treated as the date of the Participant's Separation from Service.  Upon the termination of the Plan and a permitted distribution, each Participant shall receive the balance of his or her Plan Account in the form of a lump sum payment.

15.Miscellaneous

(a)Non-Assignability.  No right to receive payments under the provisions of the Plan shall be transferable or assignable by a Participant, except by will or the laws of descent and distribution, and during his or her lifetime payment may only be received by the Participant or his or her legal representative or guardian.

(b)Incapacity.  If the Committee determines that any Participant or other person entitled to payments under the Plan is incompetent by reason of physical or mental disability and is consequently unable to give a valid receipt for payments made hereunder, or is a minor, the Committee may order the payments becoming due to such person to be made to another person for the Participant's benefit, without responsibility on the part of the Committee to follow the application of amounts so paid.  Payments made pursuant to this Section shall completely discharge the Company with respect to such payments.

(c)Independence of Plan.  Except as otherwise expressly provided herein, the Plan shall be independent of, and in addition to, any other benefit agreement or plan of the Company or any rights that may exist from time to time thereunder.

(d)No Employment Rights Created.  The Plan shall not be deemed to constitute a contract conferring upon any Participant the right to remain employed by the Company or any Subsidiary for any period of time.

(e)Responsibility for Legal Effect.  Neither the Company, its Subsidiaries or the Board or Committee, nor any officer, member, director, employee, delegate or agent of any of them, makes any representations or warranties, express or implied, or assumes any responsibility concerning the legal, tax, or other implications or effects of the Plan.  Without limiting the generality of the foregoing, neither the Company nor its Subsidiaries shall have any liability for the tax liability that a Participant may incur resulting from participation in the Plan or the payment of benefits hereunder.

(f)Limitation of Sponsor Liability.  Any right or authority exercisable by the Company, pursuant to any provision of the Plan, shall be exercised in the Company's capacity as sponsor of the Plan, or on behalf of the Company in such capacity, and not in a fiduciary capacity, and may be exercised without the approval or consent of any person in a fiduciary capacity.  Neither the Company, nor any of its respective officers, members, directors, employees, agents or delegates, shall have any liability to any party for its exercise of any such right or authority.

(g)Successors.  The terms and conditions of the Plan shall inure to the benefit of and bind the Company, and its successors, the Participants, their Beneficiaries and the heirs and personal representatives of the Participants and their Beneficiaries.

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(h)Governing Law.  All questions concerning the construction, validity and interpretation of the Plan and the performance of the obligations imposed by the Plan shall be governed by the internal laws of the State of Iowa applicable to agreements made and wholly to be performed in such state without regard to conflicts of laws.

(i)Construction.  In the Plan, unless otherwise stated, the following uses apply: (a) references to a statute refer to the statute and any amendments and any successor statutes, and to all regulations promulgated under or implementing the statute, as amended, or its successors, as in effect at the relevant time; (b) in computing periods from a specified date to a later specified date, the words “from” and “commencing on” (and the like) mean “from and including,” and the words “to,” “until” and “ending on” (and the like) mean “to, but excluding”; (c) references to a governmental or quasi-governmental agency, authority or instrumentality also refer to a regulatory body that succeeds to the functions of the agency, authority or instrumentality; (d) indications of time of day are based upon the time applicable to the location of the principal headquarters of the Company; (e) the words “include,” “includes” and “including” (and the like) mean “include, without limitation,” “includes, without limitation” and “including, without limitation,” (and the like) respectively; (f) all references to articles, sections and exhibits (and the like) are to articles, sections and exhibits (and the like) in the Plan; (g) the words “hereof,” “herein,” “hereto,” “hereby,” “hereunder,” (and the like) refer to the Plan as a whole; (h) any reference to a document or set of documents, and the rights and obligations of the parties under any such documents, means such document or documents as amended from time to time, and all modifications, extensions, renewals, substitutions or replacements thereof; (i) all words used shall be construed to be of such gender or number as the circumstances and context require; (j) the captions and headings appearing in the Plan have been inserted solely for convenience of reference and shall not be considered a part of the Plan, nor shall any of them affect the meaning or interpretation of the Plan and (k) all accounting terms not specifically defined herein shall be construed in accordance with GAAP.

(j)Severability.  In the event that any provision or term of the Plan, or any agreement or instrument required hereunder, is determined by a judicial, quasi-judicial or administrative body to be void or not enforceable for any reason, all other provisions or terms of the Plan or such agreement or instrument shall remain in full force and effect and shall be enforceable as if such void or nonenforceable provision, term, agreement or instrument had never been a part of the Plan, except as to the extent the Committee determines such result would have been contrary to the intent of the Company in establishing and maintaining the Plan.

(k)Indemnification.  The Company shall indemnify, defend, and hold harmless any employee, officer or director of the Company for all acts taken or omitted in carrying out the responsibilities of the Company, Board or Committee under the terms of the Plan or other responsibilities imposed upon such individual by law.  This indemnification for all such acts taken or omitted is intentionally broad, but shall not provide indemnification for any civil penalty that may be imposed by law, nor shall it provide indemnification for embezzlement or diversion of Plan funds for the benefit of any such individual.  The Company shall indemnify any such individual for expenses of defending an action by a Participant, Beneficiary, service provider, government entity or other person, including all legal fees and other costs of such defense.  The Company shall also reimburse any such individual for any monetary recovery in a successful action against such individual in any federal or state court or arbitration.  In addition, if a claim is settled out of court with the concurrence of the Company, the Company shall indemnify any such individual for any monetary liability under any such settlement, and the expenses thereof.  Such indemnification shall not be provided to any person who is not a present or former employee, officer or director of the Company.

(l)Compliance with Section 409A.
  
(i)To the extent any provision of the Plan or action by the Company would subject a Participant to liability for interest or additional taxes under Code Section 409A, it shall be deemed null and void, to the extent permitted by law and deemed advisable by the Company.  It is intended that the Plan comply with Code Section 409A, and the Plan shall be administered accordingly and interpreted and construed on a basis consistent with such intent.  Notwithstanding any provision of the Plan to the contrary, no termination or similar payments or benefits shall be payable hereunder on account of a Participant's termination of employment unless such termination constitutes a “separation from service” within the meaning of Code Section 409A.  The Plan may be amended to the extent necessary (including retroactively) by the Company to avoid the application of taxes or interest under Code Section 409A, while maintaining to the maximum extent practicable the original intent of the Plan.  This Section 15(l) shall not be construed as a guarantee of any particular tax effect for benefits under the Plan and the Company does not guarantee that any such benefits will satisfy the provisions of Code Section 409A or any other Code provision.  Distributions made to a Participant under the Plan in error shall be returned to the Company and shall not create a legally binding right to such distributions.

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(ii)If, as of the effective date of the Participant's Separation from Service, the Participant is a Specified Employee, then, to the extent required pursuant to Code Section 409A, payment of any portion of the Participant's Plan Account that would otherwise have been paid to the Participant during the six-month period following the Participant's Separation from Service (the “Delayed Payments”) shall be delayed until the date that is six months and one day following Participant's Separation from Service or, if earlier, the date of the Participant's death (the “Delayed Payment Date”).  As of the Delayed Payment Date, the Delayed Payments plus interest at the Interest Rate then in effect, for the period of delay, shall be paid to the Participant in a single lump sum.  Any portion of the Plan Account that was not otherwise due to be paid during the six-month period following the Participant's Separation from Service shall be paid to the Participant in accordance with the respective payment schedule set forth under the Plan or the Award Notice.

16.Definitions

(a)“Annual Base Salary” means the respective Participant's rate of annual base salary then in effect.

(b)“Award Notice” has the meaning set forth in Section 7(a).

(c)“Beneficiary” has the meaning set forth in Section 11(b).

(d)“Board” means the Board of Directors of the Company.

(e)If the Participant is subject to an employment agreement (or other similar agreement) with the Company or a Subsidiary that provides a definition of termination for “cause” (or the like), then, for purposes of the Plan, the term “Cause” has the meaning set forth in such agreement; and in the absence of such a definition, “Cause” means (i) any act of (A) fraud or intentional misrepresentation or (B) embezzlement, misappropriation or conversion of assets or opportunities of the Company or a Subsidiary, (ii) willful violation of any law, rule or regulation in connection with the performance of the Participant's duties (other than traffic violations or similar offenses), (iii) commission of any act of moral turpitude or conviction of a felony or (iv) the willful or negligent failure of the Participant to perform his or her duties in any material respect.

Further, the Participant shall be deemed to have terminated for Cause if, after the Participant's Separation from Service, facts and circumstances arising during the course of the Participant's employment with the Company are discovered that would have constituted a termination for Cause.
Further, all rights a Participant has or may have under the Plan shall be suspended automatically during the pendency of any investigation by the Board or its designee or during any negotiations between the Board or its designee and the Participant regarding any actual or alleged act or omission by the Participant of the type described in the applicable definition of Cause.
(f)“Change in Control” means the first to occur of the following:

(i)The consummation of the acquisition by any “person” (as such term is defined in Section 13(d) or 14(d) of the Securities Exchange Act of 1934) of “beneficial ownership” (within the meaning of Rule 13d-3 promulgated under such Act) of 51% or more of the combined voting power of the then outstanding Voting Securities of the Company;

(ii)During any 12-month period, the individuals who, as of the Effective Date, are members of the Board cease for any reason to constitute a majority of the Board, unless the election or nomination for election by the Company's shareholders of any new director was approved by a vote of a majority of the Board, in which case such new director shall for purposes of the Plan be considered as a member of the Board; or

(iii)The consummation by the Company of (A) a merger or consolidation if the Company's shareholders immediately before such merger or consolidation do not, as a result of such merger or consolidation, own, directly or indirectly, more than 51% of the combined voting power of the then outstanding Voting Securities of the entity resulting from such merger or consolidation in substantially the same proportion as their ownership of the combined voting power of the Voting Securities of the Company outstanding immediately before such merger or consolidation or (B) a complete liquidation or dissolution or an agreement for the sale or other disposition of all or substantially all of the assets of the Company.

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Notwithstanding any provision of the foregoing definition of Change in Control to the contrary, a Change in Control shall not be deemed to occur solely because 51% or more of the combined voting power of the then outstanding securities of the Company are acquired by (y) a trustee or other fiduciary holding securities under one or more employee benefit plans maintained for employees of the Company or (z) any corporation that, immediately prior to such acquisition, is owned directly or indirectly by the Company's shareholders in the same proportion as their ownership of Company common stock immediately prior to such acquisition.
Further notwithstanding any provision of the foregoing definition of Change in Control to the contrary, in the event that any amount or benefit under the Plan constitutes deferred compensation and the settlement of or distribution of such amount or benefit is to be triggered by a Change in Control, then such settlement or distribution shall be subject to the event constituting the Change in Control also constituting a “change in control event” under Code Section 409A.
(g)“Code” means the Internal Revenue Code of 1986.

(h)“Committee” means the Compensation Committee of the Board.

(i)“Company” means West Bancorporation, Inc.

(j)“Company Contributions” has the meaning set forth in Section 7(a).

(k)“Company Contribution Account” has the meaning set forth in Section 8(b).

(l)“Deferred Income” has the meaning set forth in Section 6(a).

(m)“Deferred Income Account” has the meaning set forth in Section 8(a).

(n)“Delayed Payment Date” has the meaning set forth in Section 15(l).

(o)“Delayed Payments” has the meaning set forth in Section 15(l).

(p)“Disability” or “Disabled” means the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or last for a continuous period of not less than 12 months, or is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident or health plan covering the Company's or a Subsidiary's employees.

(q)“Effective Date” means January 1, 2013.

(r)“Election” has the meaning set forth in Section 6(a).

(s)“ERISA” means the Employee Retirement Income Security Act of 1974.

(t)If the Participant is subject to an employment agreement (or other similar agreement) with the Company or a Subsidiary that provides a definition of termination for “good reason” (or the like), then, for purposes of the Plan, the term “Good Reason” has the meaning set forth in such agreement; and in the absence of such a definition, “Good Reason” means the occurrence of any one of the following events, unless the Participant agrees in writing that such event shall not constitute Good Reason: 

(i)A material and adverse change in the nature, scope or status of the Participant's position, authorities or duties from those in effect immediately following the date the Participant is selected to participate in the Plan;

(ii)A material reduction in the Participant's Annual Base Salary or target annual bonus opportunity, or a material reduction in the Participant's aggregate benefits or other compensation plans in effect immediately following the date the Participant is selected to participate in the Plan; or

(iii)A relocation of the Participant's primary place of employment of more than 25 miles from the Participant's primary place of employment, and further from the Participant's primary residence, immediately following the date the Participant is selected to participate in the Plan.

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Notwithstanding any provision in this definition to the contrary, prior to the Participant's Separation from Service for Good Reason, the Participant must give the Company written notice of the existence of any condition set forth in clause (i) - (iii) immediately above within 90 days of its initial existence and the Company shall have 30 days from the date of such notice in which to cure the condition giving rise to Good Reason, if curable.  If, during such 30-day period, the Company cures the condition giving rise to Good Reason, the condition shall not constitute Good Reason.  Further notwithstanding any provision in this definition to the contrary, in order to constitute a Separation from Service for Good Reason, such termination must occur within 12 months of the initial existence of the applicable condition.
(u)“Income” has the meaning set forth in Section 6(a).

(v)“Incumbent Board” means the members of the Board as of the Effective Date.

(w)“Interest Rate” has the meaning set forth in Section 8(a).

(x)“Participant” has the meaning set forth in Section 5(b).

(y)“Payment Event” has the meaning set forth in Section 9(b).

(z)“Plan” means the West Bancorporation, Inc. Deferred Compensation Plan.

(aa)“Plan Account” means the Company Contribution Account together with the Deferred Income Account.

(bb)“Plan Year” means the calendar year, unless otherwise specified in an Award Notice.

(cc)“Separation from Service” means the termination of the Participant's employment or service with the Company and its Subsidiaries for reasons other than death.  Whether a Separation from Service occurs shall be determined in accordance with Code Section 409A based on whether the facts and circumstances indicate that the Company and the Participant reasonably anticipate that no further services will be performed after a certain date or that the level of bona fide services the Participant will perform after such date (whether as an employee or as an independent contractor) will permanently decrease to no more than 49% of the average level of bona fide services performed (whether as an employee or an independent contractor) over the immediately preceding 12-month period (or the full period of services to the Company if the Participant has been providing services to the Company less than 12 months).  For periods during which the Participant is on a paid bona fide leave of absence (as defined in Treasury Regulation Section 1.409A-1(h)(1)(i)) and has not otherwise terminated employment, the Participant shall be treated as providing bona fide services at a level equal to the level of services that the Participant would have been required to perform to receive the compensation paid with respect to such leave of absence.  Periods during which the Participant is on an unpaid bona fide leave of absence (as defined in Treasury Regulation Section 1.409A-1(h)(1)(i)) and has not otherwise terminated employment are disregarded for purposes of this definition (including for purposes of determining the applicable 12-month period).

(dd)“Specified Employee” means any Participant who is a “key employee” (as defined in Code Section 416(i) without regard to paragraph (5) thereof), as determined by the Company based upon the 12-month period ending on each December 31st (such 12-month period is referred to below as the “identification period”).  All Participants who are determined to be key employees during the identification period shall be treated as Specified Employees for purposes of the Plan during the 12-month period that begins on April 1st following the close of such identification period.  For purposes of determining whether an individual is a key employee, “compensation” shall mean such individual's W-2 compensation as reported by the Company for a particular calendar year.

(ee)“Subject Person” has the meaning set forth in Section (f).

(ff)“Subsidiary” means any corporation, bank or other entity that would be a “subsidiary corporation” as defined in Code Section 424(f) with respect to the Company.

(gg)“Unforeseeable Financial Emergency” means a severe financial hardship to the Participant resulting from (i) an illness or accident of the Participant, the Participant's spouse, the Participant's beneficiary or the Participant's dependent (as defined in Code Section 152, without regard to Code Sections 152(b)(1), (b)(2), and (d)(1)(B)); (ii) loss of the Participant's property due to casualty; or (iii) other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant, all as determined by the Committee and in accordance with Code Section 409A.

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(hh)“Valuation Date” means each December 31st.

(ii)“Voting Securities” means any securities that ordinarily possess the power to vote in the election of directors without the happening of any precondition or contingency.

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