Document:

rrbi-ex1020_41.htm

 

Exhibit 10.20

RED RIVER BANCSHARES, INC.
CHANGE IN CONTROL AGREEMENT

This Change in Control Agreement (“Agreement”) is made and entered into effective as of the 14th day of January, 2014 by and between Red River Bancshares, Inc. (the “Company”), a Louisiana corporation with its principal office in Alexandria, Louisiana, and Tammi R. Salazar (the “Officer”).

WITNESSETH:

WHEREAS, the Company is the parent bank holding company of Red River Bank (the “Bank”), a Louisiana state banking corporation with its principal office in Alexandria, Louisiana; 

WHEREAS, the Officer is employed as the Executive Vice President – Private Banking of the Bank;

WHEREAS, the Board of Directors of the Company recognizes that the possibility of a Change in Control (as hereinafter defined) exists or may exist in the future and that the threat or the occurrence of a Change in Control can result in significant distractions of its key management personnel because of the uncertainties inherent in such a situation; 

WHEREAS, the Board of Directors believes that it is imperative to diminish the inevitable distraction of the Officer by virtue of the personal uncertainties and risks created by a pending or threatened Change in Control and has determined that it is essential and in the best interest of the Company and its shareholders for the services of the Officer to be retained in the event of a threat or occurrence of a Change in Control and to ensure the Officer’s continued dedication and efforts in such event without undue concern for the Officer’s personal financial and employment security; and

WHEREAS, in order to induce the Officer to remain in the employ of the Bank, particularly in the event of a threat or the occurrence of a Change in Control, the Company desires to enter into this Agreement with the Officer to provide the Officer with certain benefits in the event of a Change in Control.

NOW, THEREFORE, for and in consideration of the premises and the mutual covenants and agreements contained herein, the Company and the Officer hereby agree as follows: 

ARTICLE 1
DEFINITIONS

1.1.Definitions.  The following terms shall have the definitions set forth below for purposes of this Agreement.

	
 
	
(a)
	
“Base Salary” means the Officer’s annual base salary in effect on the date that the Severance Benefit and COBRA Benefit become payable to the Officer in accordance with Section 2.2 of this Agreement.

 

 

 

	
 
	
(b)
	
“Cause” when used herein concerning the termination of the Officer’s employment by the Bank, shall mean: 

	
 
	
(i)
	
gross negligence or gross neglect of duties to the Bank;

	
 
	
(ii)
	
conviction of a felony or of a gross misdemeanor involving moral turpitude in connection with the Officer’s employment with the Bank; 

	
 
	
(iii)
	
fraud, disloyalty, dishonestly or willful violation or any law or significant Bank policy committed in connection with the Officer’s employment and resulting in a material adverse effect on the Bank or the Company; 

	
 
	
(iv)
	
willful violation of any law, rule, regulation or final administrative action resulting in a material adverse effect on the Bank or the Company;

	
 
	
(v)
	
intentional breach of fiduciary duty owed to the Company or the Bank involving personal profit; or

	
 
	
(vi)
	
the Officer’s engagement in willful gross misconduct which is injurious to the Company or the Bank.

provided, however, that as a condition precedent to the termination of the Officer’s employment under any of subparagraphs (i) through (vi) of this Section, there shall have been delivered to the Officer a copy of a resolution duly adopted by the affirmative vote of a majority of the entire membership of the Board of Directors of the Bank at a meeting of the Board called and held for such purpose (after reasonable notice to the Officer and an opportunity for the Officer to be heard before the Board), finding that the Officer committed such conduct as set forth in the referenced subparagraphs above.

	
 
	
(c)
	
“Change in Control” shall mean and shall be deemed to have occurred for purposes of this Agreement if and when any of the following occur:

	
 
	
(i)
	
a change in the ownership of the Bank or of the Company whereby a person or group (within the meaning of Code section 409A) (a “Person”)  acquires, directly or indirectly, ownership of a number of shares of capital stock of the Bank or of the Company which, together with capital stock already held by such Person, constitutes more than fifty percent (50%) of the total fair market value or of the combined voting power of the Bank’s or of the Company’s outstanding capital stock; provided, however, that if a Person already owns more than fifty percent (50%) of the total fair market value or of the combined voting power of the Bank’s or of the Company’s outstanding capital stock, the acquisition of additional capital stock by such Person is not considered a Change in Control; or

 

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(ii)
	
a change in the effective control of the Company whereby a majority of the persons who were members of the Board of Directors of the Company are, within a twelve (12) month period, replaced by individuals whose appointment or election to the Company’s Board of Directors is not endorsed by a majority of the Company’s Board of Directors prior to such appointment or election; or

	
 
	
(iii)
	
a change in the ownership of the assets of the Bank or of the Company whereby a Person acquires (or has acquired during a twelve (12) month period ending on the date of the most recent acquisition by such Person) assets of the Bank or of the Company that have a  total gross fair market value equal to or more than fifty percent (50%) of the total gross fair market value of all of the assets of the Bank or of the Company immediately prior to such acquisition or acquisitions; provided, however, that there is no Change in Control if assets are transferred to an entity that is controlled by the shareholders of the Bank or the Company immediately after the transfer, nor is it a Change in Control if the Bank or Company transfers assets to:

	
 
	
(A)
	
a shareholder of the Bank or of the Company (immediately before the asset transfer) in exchange for or with respect to the shareholder’s capital stock in the Bank or the Company;

	
 
	
(B)
	
an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Bank or the Company;

	
 
	
(C)
	
a Person that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding capital stock of the Bank or of the Company; or

	
 
	
(D)
	
an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a Person described in paragraph (C) of subsection (iii).

	
 
	
(d)
	
“Code” means the Internal Revenue Code of 1986, as amended.

	
 
	
(e)
	
“Disability” means (i) the inability of the Officer to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of more than twelve (12) months, or (ii) the receipt of income replacement benefits for a period of more than three (3) months under a Bank-sponsored or Company-sponsored accident and health plan covering the Officer due to medically determinable physical or mental impairment which is expected to result in death or is expected to last for a continuous period of more than twelve (12) months.

 

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ARTICLE 2
CHANGE IN CONTROL BENEFITS

2.1.If the events set forth in Section 2.2 below occur, the Company or the Bank shall (1) pay the Officer, in cash, a lump sum amount equal to two hundred percent (200%) of the amount of the Officer’s Base Salary (the “Severance Benefit”), and (2) from the date the events set forth in Section 2.2 below occur, pay the monthly premium for twelve months for the Officer individually to continue, without interruption, the Officer’s medical benefits coverage under the Consolidated Omnibus Budget Reconciliation Act of 1986, as amended (“COBRA”) (the “COBRA Benefits”) (or if the Officer elects to continue medical benefits for his entire family under COBRA, then the amount of the COBRA Benefits will be applied toward the amounts due for the COBRA coverage, but the Officer shall be responsible for paying the difference); provided, however, if the Severance Benefit combined with the COBRA Benefits, either alone or together with other payments which the Officer has the right to receive from the Company or the Bank in connection with any of the events set forth in Section 2.2 below, would constitute an “excess parachute payment” under Section 280G of the Code, the Severance Benefit that would otherwise be due hereunder shall be reduced to the largest amount as will result in no portion of all such payments due to the Officer being non-deductible to the Bank or the Company under Section 280G of the Code; provided, further, that the Company may withhold from any amounts payable under this Agreement such federal, state or local taxes as shall be required to be withheld pursuant to any applicable law or regulation.  Notwithstanding any provision of this Agreement to the contrary, neither the Company nor the Bank shall be required to pay any benefit under this Agreement if, upon the advice of counsel, the Bank determines that the payment of such benefit would be prohibited by 12 C.F.R. Part 359 or any successor regulations regarding employee compensation promulgated by any regulatory agency having jurisdiction over the Company, the Bank or its affiliates.  The Severance Benefit shall be paid to the Officer within thirty (30) days of the date the events set forth in Section 2.2 below occurred.

2.2.The Company or the Bank shall pay to the Officer the Severance Benefit and the COBRA Benefits if there occurs a Change in Control and (a) the Officer voluntarily terminates his employment for any reason (other than due to death or Disability) within twelve (12) months following the Change in Control, or (b) the Officer’s employment is involuntarily terminated, other than for Cause (or due to death or Disability), within three (3) months prior to the Change in Control or within twenty-four (24) months after the Change in Control.  For purposes of this Section 2.2 and any other provision in this Agreement, any “termination of employment” shall mean that the Officer has incurred a separation of service (within the meaning of Section 409A of the Code and the guidance and regulations issued thereunder) and ceases to be employed by the Bank and/or the Company for any reason.

ARTICLE 3
CONFIDENTIALITY

The Officer and the Company agree that the terms of this Agreement as well as the discussions preliminary to, or relating to, this Agreement will be kept strictly confidential, except as disclosure is required by law or deemed appropriate by the Company’s counsel.

 

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ARTICLE 4
AMENDMENT AND TERMINATION OF AGREEMENT

This Agreement may be amended or terminated only by a written agreement executed by the Company and the Officer; provided, however, that this Agreement will terminate automatically upon the earliest to occur of the following:  (a) the payment of the Severance Benefit and the COBRA Benefits provided for in this Agreement, determined in accordance with Article 2; (b) the termination of the Officer’s employment (i) by the Officer for any reason (following the payment of the Severance Benefit and the COBRA Benefits in the event of a Change in Control, but only if such payments are due under the provisions of Article 2), (ii) by the Bank for Cause, or (iii) as a result of the Officer’s death or Disability; or (c) the date that is twelve (12) months following the date of termination of the Officer’s employment by the Bank without Cause (following the payment of the Severance Benefit and the COBRA Benefits in the event of a Change in Control, but only if such payments are due under the provisions of Article 2).

ARTICLE 5
GENERAL

5.1.Severability.  If any term or other provision of this Agreement is held to be illegal, invalid or unenforceable by any rule of law or public policy, (a) such term or provision will be fully severable and this Agreement will be construed and enforced as if such illegal, invalid or unenforceable provision were not a part hereof; (b) the remaining provisions of this Agreement will remain in full force and effect and will not be affected by such illegal, invalid or unenforceable provision or by its severance from this Agreement; and (c) there will be added automatically as a part of this Agreement a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and still be legal, valid and enforceable.  If any provision of this Agreement is so broad as to be unenforceable, the provision will be interpreted to be only as broad as is enforceable.

5.2.Successors; Binding Agreement.  This Agreement shall be binding upon and shall inure to the benefit of the Company, its successors and assigns, and the Company shall require any successors and assigns to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession or assignment had taken place.  Neither this Agreement nor any right or interest hereunder shall be assignable or transferable by the Officer, his beneficiaries or legal representatives, except by will or by the laws of descent and distribution, in which case, the Agreement may be enforceable only to the extent provided herein.

5.3.Non-exclusivity of Rights.  Nothing in this Agreement shall prevent or limit the Officer’s continuing or future participation in any benefit, bonus, incentive or other plans, programs, policies or practices, provided by the Company or the Bank and for which the Officer may qualify, nor shall anything herein limit or otherwise affect such rights as the Officer may have under any other agreements with the Company or the Bank; provided, however, that any payments or benefits to which the Officer is entitled under any severance pay plans maintained by the Company or the Bank shall reduce any amounts due under this Agreement.

 

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5.4.Full Satisfaction; Waiver and Release.  As a condition to receiving the payments and benefits hereunder, the Officer shall execute a document in customary form, releasing and waiving any and all claims, causes of actions and the like against the Company, the Bank and its respective successors, shareholders, officers, trustees, agents and employees, regarding all matters relating to the Officer’s service as an employee of the Bank or any affiliates and the termination of such relationship.  Such claims include, without limitation, any claims arising under Age Discrimination in Employment Act of 1967, as amended; Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991, as amended; the Equal Pay Act of 1963; the Americans With Disabilities Act of 1990; the Family and Medical Leave Act of 1993, as amended; the Employee Retirement Income Security Act of 1974, as amended; or any other federal, state or local statute or ordinance, but exclude any claims that arise out of an asserted breach of the terms of this Agreement or current or future claims related to the matters described in this Section 5.4.

5.5.No Guarantee of Employment.  Nothing in this Agreement shall be construed as constituting a commitment, guarantee, agreement or understanding of any kind or nature that the Company or the Bank shall continue to employ, retain or engage the Officer.  This Agreement shall not affect in any way the right of the Company or the Bank to terminate the employment or engagement of the Officer at any time and for any reason whatsoever and to remove the Officer from any position with the Company or the Bank. 

5.6.APPLICABLE LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF EACH OF THE PARTIES SUBJECT TO THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF LOUISIANA WITHOUT REGARD TO THE LAWS THAT MIGHT OTHERWISE GOVERN UNDER APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS.

5.7.Headings.  When a reference is made in this Agreement to a Section, such reference will be to a Section of this Agreement unless otherwise indicated.  The headings contained in this Agreement are for convenience of reference only and will not affect in any way the meaning or interpretation of this Agreement.  The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement will refer to this Agreement as a whole and not to any particular provision in this Agreement.  References to a person are also to such person’s permitted successors or assigns. 

5.8.Entire Agreement.  This Agreement constitutes the full understanding of the parties, a complete allocation of risks between them and a complete and exclusive statement of the terms and conditions of their agreement relating to the subject matter hereof and supersedes any and all prior agreements, whether written or oral, that may exist between the parties with respect thereto.

5.9.Multiple Counterparts.  For the convenience of the parties hereto, this Agreement may be executed in one or more counterparts, each of which will be deemed an original, and all counterparts hereof so executed by the parties hereto, whether or not such counterpart will bear the execution of each of the parties hereto, will be deemed to be, and will be construed as, one and the same Agreement.  A telecopy or facsimile transmission of a signed counterpart of this Agreement will be sufficient to bind the party or parties whose signature(s) appear thereon.

 

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5.10.Waiver.  No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel to enforce any provision of this Agreement, except by written instrument signed by the party charged with such waiver or estoppel.

[Signature Page Follows]

 

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[Signature Page to Change in Control Agreement]

IN WITNESS WHEREOF, the Company and the Officer have executed this Agreement this 14th day of January, 2014.

	
OFFICER:

	
 

	
 

	
/s/ Tammi R. Salazar

	
TAMMI R. SALAZAR

	
 

	
 

	
THE COMPANY:

	
 

	
RED RIVER BANCSHARES, INC.

	
 

	
 

	
By:
	
/s/ R. Blake Chatelain

	
Name: 
	
R. Blake Chatelain

	
Title:   
	
President and Chief Executive Officer

 

 

8rrbi-ex1021_79.htm

Exhibit 10.21

 

 

RED RIVER BANCSHARES, INC.

AND

RED RIVER BANK

AMENDED AND RESTATED DIRECTOR COMPENSATION PROGRAM

[Effective January 1, 2017]

This AMENDED AND RESTATED DIRECTOR COMPENSATION PROGRAM (this “Program”) is adopted effective as of January 1, 2017 (the “Effective Date”), by the Boards of Directors of Red River Bancshares, Inc. (the “Company”) and its subsidiary, Red River Bank (the “Bank”).

RECITALS

WHEREAS, the Company and the Bank previously established a Director Compensation Program effective as of April 1, 2000 (as amended, the “Original Program”) for the purpose of compensating directors of the Company and the Bank (“Directors”) for their time, commitment and contributions to their respective boards;

WHEREAS, the Original Program provided for the payment of cash compensation to Directors of the Company and the Bank in the form of a fee for attendance at board and committee meetings;

WHEREAS, in lieu of cash payments of board and committee fees, the Original Program provided Directors with the option to defer their board and committee fees pursuant to the terms and provisions of the Deferred Compensation Plan for Directors and Senior Management Employees of Red River Bancshares, Inc. and Subsidiaries (the “Deferred Compensation Plan”), a copy of which is attached hereto as Exhibit A; and

WHEREAS, the Board of Directors of the Company and the Board of Directors of the Bank (each a “Board” and collectively, the “Boards”) desire to amend and restate the Original Program for the purpose of consolidating certain prior amendments and providing Directors with the ability to receive payment of board fees in the form of shares of common stock of the Company.

NOW, THEREFORE, the Original Program is hereby amended and restated as follows:

1.Board and Committee Fee Schedule. Each Director of the Company and the Bank, other than Directors who are also employees of the Company or the Bank, shall be eligible to receive cash fees from the Company and/or the Bank, as applicable, for attendance at meetings of the Board (“Board Fees”) and committees of the Board (“Committee Fees”), in accordance with the Fee Schedule attached hereto as Exhibit B (as may be amended from time to time by Boards, the “Fee Schedule”).

2.Election for Board Fees.

(a)Elections. In lieu of cash payments for Board Fees, each Director may make an annual election with respect to the form of payment of his or her Board Fees as follows:

	
 
	
(i)
	
Deferral Election - The Director may elect to defer his or her Board Fees pursuant to the terms and provisions of the Deferred Compensation Plan; or

	
 
	
(ii)
	
Stock Election - The Director may elect to have his or her Board Fees paid in the form of shares of common stock of the Company (“Shares”).

 

 

Any election made pursuant to this Section 2(a) must be made by the electing Director prior to the commencement of the calendar year to which such election relates and such election will be applicable with respect to one hundred percent (100%) of such Director's Board Fees.

(b)Election Notice. The election to defer Board Fees or receive Board Fees in Shares must be filed with the Administrator on the form of Election Notice attached hereto as Exhibit C (an “Election Notice”). An Election Notice will remain in effect with respect to future election years unless the Director timely revokes the Election Notice or timely files a new Election Notice with the Administrator. A Director may not submit or revoke an Election Notice during any “blackout period” as defined in the Company's insider trading policy.

(c)New Directors. In the event a new Director is appointed to the Board, he or she shall have the option to submit an Election Notice to the Administrator within the period prescribed by the Board, but in no event later than thirty (30) days following the commencement of his or her service as a Director.

(d)Default Election. If a Director does not submit an Election Notice or the Election Notice is otherwise invalid, he or she shall receive one hundred percent (100%) of the Board Fees in cash.

(e)Payment Schedule for Board Fees Paid in Cash. Board Fees payable in cash shall be paid in four quarterly installments as soon as practicable following the calendar quarter in which such Board Fees were earned.

(f)Payment Schedule for Board Fees Deferred Under the Deferred Compensation Plan. Board Fees that have been deferred pursuant to the Deferred Compensation Plan shall be paid in accordance with the terms and conditions stated therein.

(g)Payment Schedule for Board Fees Paid in Shares. The Administrator shall maintain a bookkeeping account established in the name of each Director to reflect the accrued balance attributable to Board Fees payable in Shares. Following the end of the applicable calendar year in which the Board Fees were earned, but in no event later than the March 15 immediately following such calendar year, the Director will receive a number of fully vested Shares equal to the account balance attributable to such calendar year divided by the fair market value of Shares as of the date the of such settlement, as determined in good faith by the Board in its sole discretion. Notwithstanding the foregoing, no fractional Shares shall be issued; and shares issued shall be rounded down to the nearest whole share. In lieu thereof, any Board Fees attributable to a fractional Share shall be retained by the Company and applied to the Board Fees of such Director for the subsequent calendar year.

3.Election for Committee Fees.

(a)Elections. In lieu of cash payments for Committee Fees, each Director may elect to defer his or her Committee Fees pursuant to the terms and provisions of the Deferred Compensation Plan. Any election made pursuant to this Section 3(a) must be made by the Director prior to the commencement of the calendar year to which such election relates and such election will be applicable with respect to one hundred percent (100%) of such Director's Committee Fees.

(b)Election Notice. The election to defer Committee Fees must be filed with the Administrator on an Election Notice. An Election Notice will remain in effect with respect to future election years unless the Director timely revokes the Election Notice or timely files a new Election Notice with the Administrator.

(c)New Directors. In the event a new Director is appointed to the Board, he or she shall have the option to submit an Election Notice to the Administrator within the period prescribed by the Board, but in no event later than thirty (30) days following the commencement of his or her service as a Director.

 

(d)Default Election. If a Director does not submit an Election Notice or the Election Notice is otherwise invalid, he or she shall receive one hundred percent (100%) of the Committee Fees in cash.

(e)Payment Schedule for Committee Fees Paid in Cash. Committee Fees payable in cash shall be paid in four quarterly installments as soon as practicable following the calendar quarter in which such Committee Fees were earned.

(f)Payment Schedule for Committee Fees Deferred Under the Deferred Compensation Plan. Committee Fees that have been deferred pursuant to the Deferred Compensation Plan shall be paid in accordance with the terms and conditions stated therein.

4.Administrator. The Board may delegate administration of this Program to a committee of one or more members of the Board or to one or more officers of the Company. The term “Administrator” shall apply to any person or persons to whom such authority has been delegated.

5.Board Discretion. The Board may at any time amend, alter, suspend or terminate this Program. The Board shall have the sole discretion to interpret and enforce this Program.

6.Effective Date. This Program shall apply to all Directors from and after the Effective Date.

*     *     *     *     *

 

EXHIBIT A

DEFERRED COMPENSATION PLAN FOR DIRECTORS AND SENIOR MANAGEMENT EMPLOYEES OF RED RIVER BANCSHARES, INC. AND SUBSIDIARIES

 

DEFERRED COMPENSATION PLAN

FOR DIRECTORS AND SENIOR MANAGEMENT

EMPLOYEES OF RED RIVER BANCSHARES, INC. AND SUBSIDIARIES

 

(Amended and Restated effective January 1, 2007)

 

 

ARTICLE 1. ESTABLISHMENT AND PURPOSE.

 

1.1.Establishment. Red River Bancshares, Inc. hereby amends and restates, effective January 1, 2007, a deferred compensation plan for directors and senior management employees, as set forth herein.

1.2.Purpose. The purpose of this deferred compensation plan is to provide a means for the deferral by directors of Red River Bancshares, Inc. and its subsidiaries (the “Corporation”) of annual retainer fees, fees for attendance at meetings of the Board of Directors of the Corporation, committees of the Board of Directors of the Corporation, as well as to provide the means to allow senior management employees to defer a portion of their salary and/or bonuses. This Plan is unfunded and is maintained by the employer primarily for the purpose of providing deferred compensation to non-employees and for a select group of management or highly compensated employees. The Plan is to be interpreted to the fullest extent to comply with IRC section 409A as added by the American Jobs Creation Act of 2004 and any regulations or guidance thereunder, and including any amendments thereto.

 

ARTICLE 2. DEFINITIONS.

2.1.Definitions. Whenever used in the Plan, the following terms shall have the meaning set forth below unless otherwise provided:

(a)“Account” means the recordkeeping account which is maintained in the name of the Participant to account for any contributions and Credited Earnings which may be credited to his Account from time to time. The Account shall consist of the pre-2005 account and the post-2004 account. Contributions attributable to services performed in 2004 and before, and Credited Earnings thereon, shall be credited to the pre-2005 Account. Contributions attributable to services performed in 2005 and thereafter, and Credited Earnings thereon, shall be credited to the post-204 Account.

(b)“Beneficiary” means the person or persons designated by the Participant under the Plan to receive the Participant’s benefit under the Plan in the event of his death. If no Beneficiary is named, the Participant’s spouse shall be the Beneficiary. If the Participant is not survived by a spouse and no Beneficiary is named, the Participant’s estate shall be the Beneficiary.

(c)“Code” means the Internal Revenue Code of 1986, as amended from time to time.

(d)“Committee” means the plan administration committee which is responsible for administering the Plan, as provided in Article 7.

(e)“Corporation” means Red River Bancshares, Inc., a Louisiana corporation, and includes its wholly-owned subsidiaries.

(f)“Credited Earnings” means the earnings or lose amounts credited to a Participant’s Account, as provided in Article 5.

 

(g)“Participant” means a director or senior management employee who has become a Participant under the Plan as described in Article 3.

(h)“Plan” means this Deferred Compensation Plan for Directors and Senior Management Employees of Red River Bancshares, Inc. and its Subsidiaries, as it may be amended from time to time.

ARTICLE 3. PARTICIPATION.

3.1.Eligibility. Eligibility for participation in the Plan is limited to directors of the Corporation, and to senior management employees of the Corporation who are designated by the Committee as eligible to become Participants. All determinations as to an employee’s status by the Committee are final and binding on all employees. The Committee shall provide each Participant with notice so as to permit the Participant the opportunity to make contribution elections provided in Article 4. Such notice may be given at such time and in such manner as the Committee may determine from time to time.

ARTICLE 4. CONTRIBUTIONS.

4.1.Contributions. For each calendar year commencing with the effective date, any Participant may elect to forego the receipt of any compensation payable to him or her for services performed during such year, in which case the Corporation shall establish an Account for such Participant. Any election shall be made on a contribution election form as prescribed by the Committee, and must be made before the calendar year for which the election is to be effected. An election to defer the receipt of compensation shall remain in effect for subsequent calendar years so long as the Participant is eligible to participate in the Plan, unless before the beginning of any subsequent calendar year, the Participant elects to have future contributions to the Plan cease. Any such election to cease contributions shall not accelerate or otherwise effect a distribution of Participant’s Account. In the event a Participant subsequently elects to discontinue deferrals, a Participant may for subsequent calendar years elect to resume contributions to the Plan.

4.2.Irrevocability of Election. An election to defer compensation may not be revoked during the calendar year for which the election has been made.

4.3.New Participants. If an individual first becomes eligible to participate during a calendar year, he shall be permitted to make a contribution election for the remaining compensation payable to him for such year. To make such election, the eligible individual must file the appropriate election form with the Committee no later than thirty (30) days after the date on which he was notified. Such election shall be effective with respect to services performed after the date of the election, and such election shall remain in effect for all compensation with respect to services after such date. The contribution election shall become irrevocable when the appropriate form is filed with the Committee.

4.4.Cessation of Eligibility. If an eligible individual with a contribution election in effect for particular calendar year shall cease to be eligible during such calendar year, but remain as an employee, his applicable contribution election shall remain in effect for the balance of such year, or until the date he ceases to be an employee, if earlier. In any case where an individual has a contribution election for a calendar year and he separates from service as an employee during such year, any contribution election in effect for such calendar year shall cease with the close of the payroll period in which Participant separates from service, and any contribution election in effect for such year shall be void with respect to any compensation awarded during the remainder of the calendar year and after his termination of employment.

 

ARTICLE 5. ACCOUNTS AND CREDITED EARNINGS.

5.1.Participant’s Accounts. The Committee shall maintain, or cause to be maintained, a bookkeeping Account for each Participant for the purpose of accounting for the Participant’s beneficial interest under the Plan, which interest is attributable to contributions and any Credited Earnings credited to such Participant under the Plan, as adjusted to reflect charges to such Account.

Each Participant’s Account shall be adjusted to reflect all contributions credited to his Account or Credited Earnings credited to his Account, and all benefit payments charged to his Account. Contributions shall be credited to the Participant’s Account as of the last day of the calendar quarter in which such item would have become payable to the Participant in absence of a contribution election. Separate sub-Accounts shall be maintained for a Participant’s pre-2005 contributions and post-2004 contributions as set forth in Section 2.1(a).

5.2.Credited Earnings. Each Participant shall be credited with Credited Earnings on the balance in his Account. Credited Earnings shall be credited to such Account as of the last day of each quarter, and shall be based on the Account balance as of the first day of each quarter, less any distributions from such Account during the quarter. After December 31, 2006, Credited Earnings shall be calculated at a rate equal to the London Interbank Offered Rate (“LIBOR”) for one year deposits as shown in the “Money Rates” column of The Wall Street Journal on the first day of each calendar quarter that The Wall Street Journal is published, and without regard to the actual effective date of the rate for such LIBOR contracts. The rate will be adjusted on the first day of each subsequent quarter to reflect the rate at that time, and interest will accrue at the new rate until adjusted the following quarter. Interest will be computed on the basis of a 30 day month/360 day year. Amounts in the Account shall continue to accrue interest at such rate until the entire balance of the Account has been distributed in accordance with Article 6 hereof. The Committee shall make all determinations with respect to the crediting of such Credited Earnings to Accounts, and such determinations shall be final and binding on all interested parties. The Board of Directors of the Corporation may at any time change the method of calculating Credited Earnings on all Accounts prospectively, provided that the same method of calculating Credited Earnings shall apply to all Participants.

5.3.Account Statements. The Committee shall provide each Participant with a statement of the status of his Account under the Plan. The Committee shall provide such statement annually or at such other times as the Committee may determine from time to time, and such statement shall be in the format as prescribed by the Committee.

ARTICLE 6. PAYMENT OF BENEFITS.

6.1.Distribution Election. At the time of initial participation, and with respect to a Participant’s post-2004 Account, prior to January 1, 2005, each Participant shall make an election as to the timing and form of distribution of his Account. The pre-2005 amounts and post-2004 amounts shall be credited to different subaccounts. A Participant may have separate elections with respect to each sub-Account. Such distribution election shall be one of the following:

(a)Payment of the entire balance in the Participant’s Account or sub-Account on the first banking day of the month following the month in which such Participant’s service as a Director of the Corporation ceases or such Participant separates from service with the Corporation, as the case may be;

(b)Payment of the entire balance in the Participant’s Account or sub-Account on the first banking day of January in the year following the year in which such Participant’s service as a Director of the Corporation ceases or such Participant separates from service with the Corporation, as the case may be; or

 

(c)Payment of the balance in the Participant’s Account or sub-Account in two to ten annual installments commencing on the first banking day of January in the year following the year in which such Participant’s service as a Director of the Corporation ceases or such Participant separates from service with the Corporation, each installment to be in an amount equal to the balance in such Account or sub-Account divided by the number of installments remaining (including the one being calculated and paid).

In the event that the deferred compensation election notice does not contain a distribution election, the Participant shall be deemed to have made the election described in paragraph (b) above.

With respect to a Participant’s pre-2005 sub-Account, a Participant may change the distribution option to a different permissible option prior to the calendar year in which he ceases to perform services as a director of the Corporation or separates from service with the Corporation, as the case may be. If the Participant changes the distribution election and ceases as a director or separates from service in the same calendar year as the change, such change shall be disregarded, and the distribution shall be made under the previous form elected.

With respect to a Participant’s post-2004 sub-Account, the Participant may not change the time or form of distribution after his initial election (or after the election made before January 1, 2005, as applicable.)

6.2.Death Benefit. If a Participant shall die with a balance credited to his Account, his Account shall be paid to his Beneficiary. All amounts shall be paid in a lump sum or installments, as selected by the Participant, but on the first banking day of January in the year following the year of the Participant’s death.

6.3.Loans. A Participant shall not be permitted to borrow from his Account.

6.4.Withholding of Taxes. The employer shall have the right to deduct from all distribution payments made under the Plan any federal, state, or local taxes required to be withheld with respect to such payments.

6.5.Unforeseeable Emergency. A Participant may request that the Committee immediately distribute all or any portion of the Participant’s Account prior to termination of employment or cessation of services as a director in the event of an unforeseeable emergency. An unforeseeable emergency means a severe financial hardship resulting from an illness or accident of the Participant or of a dependent of the Participant, loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. The amounts distributed with respect to an emergency may not exceed the amounts necessary to satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship). Education of a Participant or a dependent or purchase of a residence shall not be considered a hardship for this purpose. The existence of a hardship shall be in the sole and absolute discretion of the Committee.

 

ARTICLE 7. ADMINISTRATION OF THE PLAN.

7.1.Administration. The Plan shall be administered by the Plan Administration Committee (“Committee”). The Committee shall consist of the chairman of the Board of Directors of the Corporation, the president and chief executive officer of the Corporation, and one other eligible Participant that the two of them shall agree to select. A majority of the members of the Committee shall constitute a quorum and the acts of a majority of the members present, or acts approved in writing by a majority of the members without a meeting, shall be the acts of the Committee.  The Committee shall have that authority which is expressly stated in the Plan as vested in the Committee, and authority to make rules to administer and interpret the Plan, to decide questions arising under the Plan, and to take such other action as may be appropriate to carry out the purposes of the Plan.

7.2.Rules; Claims Review Procedures. The Committee shall adopt and establish such rules and regulations with respect to the administration of the Plan as it deems necessary and appropriate. The Committee shall also prescribe such deferral election forms and other administrative forms as it deems necessary to carry out the provisions of the Plan. The Committee shall establish a claims procedure and a claims review procedure to be applicable under the Plan.

7.3.Finality of Determinations. All determinations of the Committee as to any matter arising under the Plan, including questions of construction and interpretation shall be final, binding and conclusive upon all interested parties.

7.4.Indemnification. To the extent permitted by law and the Corporation’s by-laws, the members of the Committee, its agents, and the officers, directors and employees of the Corporation shall not be liable for any act or failure to act hereunder, except for gross negligence or fraud.

ARTICLE 8. FUNDING.

8.1.Funding. It is intended that the Corporation (or applicable subsidiary) is under a contractual obligation to make the payments from a Participant’s Account when due. All amounts paid under the Plan shall be paid in cash or cash equivalents from the general assets of the Corporation. Contributions and Credited Earnings shall be reflected on the accounting records of the Corporation, as provided for under the Plan, but such records shall not be construed to create, or require the creation of, a trust, custodial or escrow account with respect to any Participant. No Participant shall have any right, title, or interest whatsoever in or to any investment reserves, accounts, or funds that the Corporation may purchase, establish or accumulate to aid in providing the benefit payments described in the Plan. Nothing contained in the Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust or fiduciary relationship or any kind between the Corporation and a Participant or any other person. The Participants and Beneficiaries shall not acquire any interest under the Plan greater than that of an unsecured general creditor of the Corporation. Further, no assets may be transferred to any trust or other arrangement located outside the United States.

ARTICLE 9. AMENDMENT, TERMINATION OR MERGER

9.1.Amendment and Termination. The Corporation may, at any time and from time to time, modify or amend, in whole or in part, any provision of the Plan. The Corporation shall notify all of the subsidiaries of such amendment. The Corporation may, at any time, terminate this Plan in its entirety. Notwithstanding any other provision in this paragraph, no modification, amendment, suspension, or termination may, without the consent of the Participant (or his Beneficiary in the case of the death of a Participant) reduce the right of the Participant (or his Beneficiary, as the case may be) to a distribution to which he is entitled in accordance with the provisions of the Plan prior to the change. In the event of a termination, if consistent with section 409A of the Code, the Corporation may elect to pay all Accounts of Participants immediately in which case the Corporation will have no further liability under this Plan.

 

9.2.Merger, Consolidation, or Sale of Assets. In the event that the Corporation should be liquidated, dissolved, or become a party to a merger or consolidation where the entity is not the surviving corporation, the Plan with respect to such entity shall terminate at the time of the event unless the successor or acquiring corporation shall elect to continue to carry on the Plan. In the event such Plan termination occurs, the provisions of Section 9.1 related to Plan termination shall become applicable, provided that any successor or acquiring corporation may elect to accelerate payments with respect to its employees under the Plan.

ARTICLE 10. MISCELLANEOUS.

10.1.Effect on Other Plans. Contributions to this Plan shall not be considered as part of a Participant's compensation for the purpose of any savings or pension plan maintained by the Corporation, but such amounts shall be taken into account under all other employee benefit plans maintained by the Employer in the year in which such amounts would have been payable in the absence of a contribution election; provided, however, that such amounts shall not be taken into account to the extent the inclusion thereof would jeopardize the tax-qualified status of the Plan to which they relate.

10.2.Nontransferability. No right or interest of any Participant in this Plan shall be assignable or transferable, or subject to any lien, directly, by operation of law, or otherwise, including execution, levy, garnishment, attachment, pledge, and bankruptcy.

10.3.No Guaranty of Employment or Participation. The Plan is not an employment contract. It does not give to any person the right to be continued in employment, and all Employees remain subject to change of salary, transfer, change of job, discipline, layoff, discharge or any other change of employment status, without regard to the effect such treatment might have upon him as a Participant under the Plan. No person shall at any time have a right to be a Participant for any calendar year, even if he was a Participant in a prior Plan Year.

10.4.Binding on Corporation, Participant, and Their Successors. This Plan shall be binding upon and inure to the benefit of the Corporation, its successors and assigns, and the Participant, his heirs, executors, administrators, and legal representatives. The provisions of this Plan shall be applicable with respect to the Corporation and each subsidiary separately, and amounts payable hereunder shall be paid by the employer of the particular Participant.

10.5.Incompetency. If any person entitled to receive any benefits hereunder is, in the judgment of the Committee, legally, physically or mentally incapable of personally receiving and receipting for any distribution, the Committee may make distribution to such other person or persons or institution or institutions as, in the judgment of the Committee, shall then be maintaining or have custody over such distributee.

10.6.Severability. In the event any provision of the Plan shall be held invalid or illegal for any reason, any illegality or invalidity shall not affect the remaining parts of the Plan, but the Plan shall be construed and enforced as if the illegal or invalid provision had never been inserted, and the Corporation shall have the privilege and opportunity to correct and remedy such questions of illegality or invalidity by amendment as provided in the Plan.

10.7.Applicable Law. This Plan, all documents in connection herewith, and all distributions hereunder shall, insofar as may lawfully be done, be governed, construed, and regulated in accordance with the laws of the State of Louisiana, except to the extent such laws are preempted by applicable Federal law.

 

IN WITNESS WHEREOF, the Corporation has caused this instrument to be executed 

by its duly authorized officers on this    18th     day of     January    , 2007.

 

	
RED RIVER BANCSHARES, INC.

	
 

	
By
	
 
	
/s/ Wylie D. Cavin

	
Title
	
 
	
EVP and COO

 

	
RED RIVER BANK

	
 

	
By
	
 
	
/s/ Isabel V. Carriere

	
Title
	
 
	
EVP and Controller

 

 

EXHIBIT B

FEE SCHEDULE

 

Fee Amounts

 

As applicable, Directors of the Company and/or the Bank will be paid Board Fees and Committee Fees as follows:

 

	
 
	
1.
	
$1,300 for each Board meeting attended

	
 
	
2.
	
$500 for each Audit Committee meeting attended by the Audit Committee Chairman

	
 
	
3.
	
$300 for each Audit Committee meeting attended by committee members

	
 
	
4.
	
$200 for each committee meeting attended (other than the Audit Committee)

 

Attendance by a Director at a Board or Committee meeting is determined by the Secretary of the Company or the Bank, as applicable, or in his or her absence, by the Assistant Secretary or such other person designated to record the official minutes of the meeting.

 

Limitations

 

The following limitations will be applicable to the payment of Board and Committee Fees:

 

	
 
	
1.
	
Persons who are directors of the Company shall be paid a Board Fee for attendance at each meeting of the Company Board; provided, however, that persons who are directors of both the Company and the Bank will only be paid a fee for attendance at a meeting of the Company Board when such meetings are not held on the same day as a meeting of the Bank Board.
	
 

	
 
	
2.
	
Persons who are directors of the Bank shall be paid a Board Fee for attendance at each meeting of the Bank Board.
	
 

	
 
	
3.
	
Persons who are members of a committee of the Company Board or Bank Board shall be paid a Committee Fee for attendance at each committee meeting.
	
 

	
 
	
4.
	
Directors who are also officers or employees of the Company and/or the Bank shall not be eligible to receive any fees for attendance at Board or Committee meetings.
	
 

 

EXHIBIT C

RED RIVER BANCSHARES, INC.

AND

RED RIVER BANK

 

AMENDED AND RESTATED DIRECTOR COMPENSATION PROGRAM

 

Election Notice

 

This Election Notice is entered into pursuant to the terms of the Amended and Restated Director Compensation Program (the “Program”), as adopted by the Boards of Directors of Red River Bancshares, Inc. (the “Company”) and its subsidiary, Red River Bank (the “Bank”). Capitalized terms used but not defined herein shall have the meaning set forth in the Program.

 

Director Information:

 

	
Name:
	
 

	
 
	
First
	
Middle Initial
	
Last

 

Initial Calendar Year:

The following election is hereby made by the undersigned with respect to the payment Board Fees and Committee Fees for the calendar year ending __________. This Election Notice must be submitted by December 31st of the calendar year that immediately precedes the calendar year for which such Election Notice is effective. Notwithstanding the foregoing, with respect to a newly-appointed Director, this Election Notice must be submitted to the Company and the Bank, as applicable, prior to the end of such period established by the Board, which shall not exceed thirty (30) days from the date of the commencement of such Directors’ service with the Company and/or the Bank.

 

Director Election for Payment of Board Fees:

I hereby elect to have one hundred percent (100%) of my Board Fees paid to me as follows: [check only one option below]

 

			
	
A.
	
 
	
Cash Election - Cash to be paid quarterly, as soon as practicable following the quarter in which such Board Fees were earned

	
 
	
 
	
 

	
B.
	
 
	
Deferral Election - Deferred in accordance with the terms and provisions of the Deferred Compensation Plan for Directors and Senior Management Employees of Red River Bancshares, Inc. and Subsidiaries

	
 
	
 
	
 

	
C.
	
 
	
Stock Election - Shares to be settled by March 15 of the calendar year following the calendar year in which such Board Fees were earned (the number of Shares to be issued shall be rounded down to the nearest whole number)

 

[Important Note: If you select more than one payment option above, this Election Notice will be invalid and you will receive 100% of your Board Fees in cash.]

 

Director Election for Payment of Committee Fees:

I hereby elect to have one hundred percent (100%) of my Committee Fees paid to me as follows: [check only one option below]

 

			
	
A.
	
 
	
Cash Election - Cash to be paid quarterly, as soon as practicable following the quarter in which such Committee Fees were earned

	
 
	
 
	
 

	
B.
	
 
	
Deferral Election - Deferred in accordance with the terms and provisions of the Deferred Compensation Plan for Directors and Senior Management Employees of Red River Bancshares, Inc. and Subsidiaries

 

[Important Note: If you select more than one payment option above, this Election Notice will be invalid and you will receive 100% of your Committee Fees in cash.]

 

Calendar Years:

Subject to my continued service as a Director, this Election Notice will remain in effect with respect to future calendar years unless I timely revoke this Election Notice or file a new Election Notice.

 

Taxes:

I hereby acknowledge and understand that the receipt of Board Fees and/or Committee Fees, regardless of the form of payment elected hereby, will ultimately be taxable to me. I further acknowledge and understand that I (and not the Company or the Bank) shall be responsible for my own tax liability resulting from the payment of Board Fees and/or Committee Fees, regardless of the form of payment elected hereby. I hereby agree and acknowledge that I have reviewed the tax consequences of the election made hereby with my own tax advisors, including any U.S. federal, state and local tax laws, and any other applicable taxing jurisdiction, and that I am relying solely on such advisors and not on any statements or representations of the Company, the Bank or any of their respective representatives. Neither the Company nor the Bank makes any representation or undertaking regarding the tax treatment of any aspect of the Program.

 

Director Authorization:

I agree that I have read and understand that all election are subject to all of the terms and conditions of the Program and this Election Notice. I authorize the Company and the Bank to implement this Election Notice.

 

DIRECTOR

		
	
 
	
 

	
 
	
 

	
Print Name:
	
 

	
 

	
Dated: 
	
 

 

 

INSTRUCTIONS

→          Please submit your completed and signed Election Notice (both pages) to Amanda W. Barnett, General Counsel and Corporate Secretary.

→          Keep a copy of your completed and signed Election Notice for your records.

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