Document:

Exhibit 10.5

    

    

    CORY NEWSOM

    DEFERRED COMPENSATION PLAN

    ADOPTION AGREEMENT

    (Including Code §409A provisions)

     

    

    
      
        

      
        Nonqualified Deferred Compensation Plan

        Adoption Agreement

      

    

    
    NONQUALIFIED

    DEFERRED COMPENSATION PLAN

    ADOPTION AGREEMENT

     

    

    The undersigned, CITY BANK, TEXAS (“Employer”) and CORY NEWSOM (“Participant”), by execution of this Adoption Agreement hereby
        establishes this Nonqualified Deferred Compensation Plan (“Plan”) consisting of the Basic Plan Document, this Adoption Agreement and all other Exhibits and documents to which they refer.  The Employer makes the following elections concerning this
        Plan.  All capitalized terms used in the Adoption Agreement have the same meaning given in the Basic Plan Document.  References to “Section” followed by a number in this Adoption Agreement are references to the Basic Plan Document.

     

    

    ARTICLE I

    

    

    DEFINITIONS

    

    

    1.06 Change in Control.  Change in Control
        means (choose (a) or choose one of (b), (c) or (d)):

     

    

    
      
        	☐	(a)          	Not applicable.  Change

                  in Control does not apply for purposes of this Plan.

      

    

     

    

    
      
        	☒	(b)          	All events.  Change in
                  Control means all events under Section 1.06.

      

    

     

    

    
      
        	☐	(c)          	Limited events.  Change

                  in Control means only the following events under Section 1.06 (choose one or two of (i), (ii) and (iii)):

      

    

     

    

    
      
        	

              	☐	
                (i) Change in ownership of the Employer.

              

      

    

     

    

    
      
        	

              	☐	
                (ii) Change in the effective control of the Employer.

              

      

    

     

    

    
      
        	

              	☐	
                (iii) Change in the ownership of a substantial portion of the Employer’s assets.

              

      

    

     

    

    
      
        	☒	(d)          	(Specify):  For the purposes of Sections 3.02(e) and 4.01(b)(ii) of the Adoption Agreement, Change in Control means all events under Section 1.06 except transfers of stock made on account
                      of death, gifts, transfers of stock between family members or the acquisition by any qualified retirement plan sponsored by South Plans Financial, Inc. shall not be considered in determining whether there has  been a Change of Control.

      

    

     

    

    Note: The Employer may not use the blank in (d) to
          specify events not described in Treas. Reg. §1.409A-3(i)(5).  However, the Employer may increase the percentages required to trigger a Change in Control
          under one or all three of the listed events.

     

    

    1.10 Effective Date.  The effective date of
        the Plan is (choose one of (a) or (b)):

     

    

    
      
        
          
            
              	☐	(a)	New Plan.  This Plan is a new Plan and is effective __________________.

            

          

          

      

    

     

    

    Note: The effective date should be no earlier than January 1, 2008.

     

    

    
      1

      
        

      
        Nonqualified Deferred Compensation Plan

        Adoption Agreement

      

    

    
      
        	☒	(b)          	Restated Plan.  This
                  Plan is a restated Plan and is restated effective as of January 1, 2008.  The Plan is restated to comply with Code §409A.  The Plan was originally effective September 1, 2002 (Original Effective Date).

      

    

     

    

    Note: If the Plan (whether or not in written form) was in effect before January 1, 2008, the Plan is a restated Plan.

     

    

    1.18 Plan Name.  The name of the Plan as
        adopted by the Employer is: Cory Newsom Deferred Compensation Plan.

     

    

    1.19 Retirement Age.  A Participant’s
        Retirement Age under the Plan is (choose only one of (a)-(d)):

     

    

    
      
        	☐	(a)          	Not applicable. 
                  Retirement Age does not apply for purposes of this Plan.

      

    

     

    

    
      
        	☒	(b)          	Age.  The
                  Participant’s attainment of age: 58.

      

    

     

    

    
      
        	☐	(c)          	Age and service.  The
                  Participant’s attainment of age ____with ____ Years of Service (defined under 1.27) with the Employer.

      

    

     

    

    
      
        	☐	(d)          	(Specify):
                  __________________________________________________________.

      

    

     

    

    1.27 Year of Service.  The following apply in
        determining credit for a Year of Service under the Plan (choose (a) or choose one or more of (b) - (e)):

     

    

    
      
        	☐	(a)          	Not applicable.  Year
                  of Service does not apply for purposes of this Plan.

      

    

     

    

    
      
        	☒	(b)          	Year of continuous service. 
                  To receive credit for one Year of Service, the Participant must remain in continuous employment with the Employer (or render contract service to the Employer) for a twelve-month period, the first such period beginning on the Original
                  Effective Date and successive periods beginning on the anniversary of such date.

      

    

     

    

    
      
        	☐	(c)          	Service on any day.  To
                  receive credit for one Year of Service, the Participant only need be employed by the Employer (or render contract service to the Employer) on any day of the Participant’s Taxable Year.

      

    

     

    

    
      
        	☒	(d)          	Pre-Plan service.  The
                  Employer will treat service before the Plan’s Effective Date for determining Years of Service as follows (choose one of (i) or (ii)):

      

    

     

    

     
      
        
          	

                	☐	
                  (i)  Include.

                

        

      

       

      

      
        
          	

                	☒	
                  (ii)  Disregard.

                

        

      

       

      

      
        
          	☐	(e)          	(Specify):
                    _______________________________________________________.

        

      

       

      

      
        2

        
          

        
          Nonqualified Deferred Compensation Plan

          Adoption Agreement

        

      

    

    ARTICLE III

    VESTING AND SUBSTANTIAL RISK OF FORFEITURE

     

    

    3.01 Vesting Schedule/Other Substantial Risk of
          Forfeiture.  The following vesting schedule or other Substantial Risk of Forfeiture applies to a Participant’s Termination Benefit (choose (a) or choose
          one or more of (b) - (f)):

     

    

    
      
        	☐	(a)          	Immediate vesting.  100%

                  Vested at all times with respect to the applicable Benefit.

      

    

     

    

     
      
        
          	☒	(b)          	Vesting schedule —
                      Separation from Service Benefit.  The Participant’s applicable Benefit is subject to the following vesting schedule:

        

      

      

      

      	
              Years of Service 

                

              From the Original Effective Date of the Plan

            	 	 	
                

              

              Vesting %

            	 
	
              0

            	 	 	 	
              50

            	
              %

            
	
              1

            	 	 	 	
              55

            	
              %

            
	
              2

            	 	 	 	
              60

            	
              %

            
	
              3

            	 	 	 	
              65

            	
              %

            
	
              4

            	 	 	 	
              70

            	
              %

            
	
              5

            	 	 	 	
              75

            	
              %

            
	
              6

            	 	 	 	
              80

            	
              %

            
	
              7

            	 	 	 	
              85

            	
              %

            
	
              8

            	 	 	 	
              90

            	
              %

            
	
              9

            	 	 	 	
              95

            	
              %

            
	
              10

            	 	 	 	
              100

            	
              %

            

       

      

    

    
      
        	☒	(c)          	Other Substantial Risk of
                    Forfeiture.  (Specify): Any of the following
                  conditions, determined in the sole judgment of the Employer, shall result in a forfeiture of Participant’s Benefit and shall apply even if any of the conditions specified is determined to not constitute a Substantial Risk of Forfeiture as
                  defined in Treas. Reg. §1.409A-1(d).

      

    

     

    

    
      
        	

              	(i)	
                Discharge for Cause.  If the Participant is Discharged for Cause, Participant’s
                    Benefit is forfeited.  “Discharge for Cause” shall mean the termination of Participant’s employment with the Employer as a result of any of the following:

              

      

    

     

    

    
      
        	

              	(A)	
                the Participant’s commission of a felony or gross misdemeanor involving fraud or dishonesty;

              

      

    

     

    

    
      
        	

              	(B)	
                the Participant’s willful violation of any banking law, rule, or banking regulation;

              

      

    

     

    

    
      
        	

              	(C)	
                an intentional failure by Participant to perform stated duties; or

              

      

    

     

    

    
      
        	

              	(D)	
                a breach of fiduciary duty by Participant involving personal profit.

              

      

    

     

    

    
      3

      
        

      
        Nonqualified Deferred Compensation Plan

        Adoption Agreement

      

    

    If a dispute arises as to whether a termination of Participant’s employment constitutes “Discharge for Cause,” such dispute shall be
        resolved by arbitration as set forth in Section 6.10 of the Basic Plan Document.  If the Participant resigns due to any of the conduct described above, the Employer may deny Participant’s Benefit.

     

    

    
      
        	

              	(ii)	
                Death.  If the Participant dies, Participant’s Benefit is forfeited.

              

      

    

     

    

    
      
        	

              	(iii)	
                Proprietary Information of Employer.  Employer promises to give Participant “trade secrets” and confidential information during the course of Participant’s employment.  In
                    return, Participant agrees not to use or disclose Employer’s “trade secrets” or confidential information after Participant’s Separation from Service.  If Participant, directly or indirectly, makes known, discloses, furnishes or utilizes
                    any of the “trade secrets” or confidential information of the Employer other than in the proper performance of Participant’s duties or as required by a court of competent jurisdiction or other administrative or legislative body,
                    provided that, prior to disclosing any of the confidential information to a court or other administrative or legislative body, Participant shall promptly notify the Employer so it may seek a protective order or other appropriate remedy,
                    Participant’s Benefit is forfeited.  “Trade Secret” shall mean any devices, secret inventions, processes and compilations of information and records owned by Employer and regularly used in the operation of the business of the Employer. 
                    Participant acknowledges direct and indirect disclosure of any such confidential information to existing or potential competitors of Employer would place Employer at a competitive disadvantage and would do damage, monetary or otherwise,
                    to Employer.  Participant agrees to return all confidential information, including all photocopies, extracts and summaries thereof, and any such information stored electronically on tapes, computer disks or in any other manner to the
                    Employer at any time upon request by the Employer and upon Separation from Service.

              

      

    

     

    

    
      
        	

              	(iv)	
                Non-Competition.  Ancillary to the agreements in (iii), Participant agrees not to engage in “Competition” with the Employer in any county where the Employer maintains a
                    branch office from the Effective Date until the second anniversary following the earliest payment event to occur under Article IV of the Adoption Agreement (the Non-Competition Period).  If Participant engages in “Competition” with the
                    Employer in any county where the Employer maintains a branch office during the Non-Competition Period, Participant’s Benefit is forfeited.  “Competition” shall mean the Participant’s engaging in, or directly or indirectly being employed
                    by or acting as a consultant or lender to, or being a director, officer, employee, principal, licensor, trustee, broker, agent, stockholder, member, owner, joint venturer or partner of, or permitting his name to be used in connection
                    with the activities of any other business or organization which is engaged in the same business as the business of the Employer.  It shall not be a violation of the Non-Competition clause for Participant to:

              

      

    

     

    

    
      4

      
        

      
        Nonqualified Deferred Compensation Plan

        Adoption Agreement

      

    

    
      
        	

              	(A)	
                become the registered or beneficial owner of less than five percent (5%) of any class of capital stock of a competing corporation registered under the Securities Exchange
                    Act of 1934, as amended; or

              

      

    

     

    

    
      
        	

              	(B)	
                be employed by an entity which engages in the same business as the business of the Employer so long as Participant does not directly perform services for or work within a
                    division or business unit of such entity which engages in the business of the Employer.

              

      

    

     

    

    
      
        	

              	(v)	
                Solicitation of Employer’s Customers.  During the Non-Competition Period, if the Participant does any of the following, directly or indirectly, Participant’s Benefit is
                    forfeited:

              

      

    

     

    

    
      
        	

              	(A)	
                solicit from any of Employer’s customers business of the same or similar nature to the business between Employer and customer;

              

      

    

     

    

    
      
        	

              	(B)	
                solicit the employment or services of any person who at the time is employed by or a consultant to the Employer; or

              

      

    

     

    

    
      
        	

              	(C)	
                make any statements or comments of a defamatory or disparaging nature to third parties regarding Employer or its officers, directors, personnel, product, or services.

              

      

    

     

    

    
      
        	

              	(vi)	
                Forfeiture.

              

      

    

     

    

    
      
        	

              	(A)	
                Forfeiture.  If at any time it is determined in the sole judgment of the Employer the Participant has engaged in any provision of Section 3.01(c)(iii), (iv), or (v) of the
                    Adoption Agreement, the Participant’s Benefits shall be forfeited and the Participant shall repay to the Employer any and all Benefits already received, including Benefits paid as a lump sum, without prejudice to the Employer’s right to
                    pursue other equitable and legal remedies for enforcement and recovery.

              

      

    

     

    

    
      
        	

              	(B)	
                Other Relief.  A material breach by Participant of any of the provisions of Section 3.01(c)(iii), (iv), or (v) of the Adoption Agreement will cause the Employer irreparable
                    injury and would not be reasonably or adequately compensated for by damages in an action at law.  Participant therefore agrees the Employer shall be entitled, in addition to any other right or remedy, to a temporary, preliminary and
                    permanent injunction without the necessity of proving the inadequacy of monetary damages or the posting of any bond or security, enjoining or restraining Participant from any such violation.

              

      

    

     

    

    
      
        	

              	(C)	
                Construction.  It is the intent of the Participant and Employer that if, in the opinion of any court of competent jurisdiction or arbitrator, any provision set forth in the
                    Plan is not reasonable in any respect, or any provision should be deemed to exceed the time, geographic or occupational limits permitted by applicable law, such court or arbitrator shall have the right, power and authority to modify any
                    and all such provisions and to enforce the remainder of the Plan as so modified.

              

      

    

     

    

    
      5

      
        

      
        Nonqualified Deferred Compensation Plan

        Adoption Agreement

      

    

    Note: An Employer may elect both a vesting schedule and an additional Substantial Risk of Forfeiture.  In such event, a Participant
        failing to satisfy the conditions resulting in a Substantial Risk of Forfeiture will forfeit his/her Benefit, even if 100% Vested under any vesting schedule.

     

    

    3.02 Immediate Vesting upon Specified Events.  A
        Participant’s applicable Benefit is 100% Vested without regard to Years of Service as follows: (choose (a) or choose one or more of (b) — (e)):

     

    

    
      
        	☐	(a)          	Not Applicable.

      

    

     

    

    
      
        	☐	(b)          	Retirement Age.  Upon
                  the date the Participant attains Normal Retirement Age.

      

    

     

    

    
      
        	☐	(c)          	Death.  Upon the
                  Participant’s date of death.

      

    

     

    

    
      
        	☒	(d)          	Disability.  Upon a
                  determination of Participant’s Disability prior to the Participant’s Separation from Service.

      

    

     

    

    
      
        	☒	(e)          	(Specify): Upon a Change in Control prior to the Participant’s Separation from Service.

      

    

     

    

    Note: An early vesting provision generally does not result in prohibited acceleration of benefits under Code §409A.  See Section
        4.02(C).

     

    

    ARTICLE IV

    BENEFIT PAYMENTS

     

    

    4.01 Participant’s Benefit shall be either (a), (b), or (c), based on the earliest payment event to occur:

     

    

    
      
        	☒	(a)          	Retirement Benefit.  If
                  the Participant has not Separated from Service with Employer and has attained Normal Retirement Age, the Employer shall pay to Participant:

      

    

     

    

    
      
        	

              	(i)	
                Annual payments each in the amount of $118,070,

              

      

    

     

    

    
      
        	

              	(ii)	
                Commencing upon the first day of the second month following Participant’s attainment of Normal Retirement Age and thereafter annually on each successive anniversary of the
                    first payment date.

              

      

    

     

    

    
      6

      
        

      
        Nonqualified Deferred Compensation Plan

        Adoption Agreement

      

    

    
      
        	

              	(iii)	
                At Participant’s death after payments have begun, the Plan shall terminate and all benefits shall cease and be forfeited, including any future benefits or vested benefits.

              

      

    

     

    

    
      
        
          	☒	(b)          	Separation from Service
                      Benefit.

        

      

    

     

    

    
      
        	

              	(i)	
                Except as provided in (ii), if the Participant Separates from Service with the Employer for any reason other than death, Disability, or Discharge for Cause prior to
                    attaining Normal Retirement Age, Employer shall pay to Participant:

              

      

    

     

    

    
      
        	

              	(A)	
                A lump sum amount equal to the Benefit Liability Balance as of the end of the year preceding the year in which the Participant Separated from Service multiplied by the
                    Participant’s Vested Percentage, The schedule of the “Benefit Liability Balances” are set forth on Exhibit “A.”

              

      

    

     

    

    
      
        	

              	(B)	
                On the first day of the twenty-fourth month following the Participant’s Separation from Service from the Employer.

              

      

    

     

    

    
      
        	

              	(C)	
                If the Participant dies before the payment is made, the Plan shall terminate and all benefits shall cease and be forfeited, including any future benefits or vested
                    benefits.

              

      

    

     

    

    
      
        	

              	(ii)	
                If the Participant Separates from Service within two years after a Change of Control for any reason other than Discharge for Cause or Disability, the Employer shall pay to
                    Participant:

              

      

    

     

    

    
      
        	

              	(A)	
                Annual payments each in the amount of $118,070,

              

      

    

     

    

    
      
        	

              	(B)	
                Commencing upon the first day of the second month following Participant’s attainment of Normal Retirement Age and thereafter annually on each successive anniversary of the
                    first payment date,

              

      

    

     

    

    
      
        	

              	(C)	
                If the Participant dies before the payments begin or after payments have begun, the Plan shall terminate and all benefits shall cease and be forfeited, including any future
                    benefits or vested benefits.

              

      

    

     

    

    
      
        	☒	(c)          	Disability Benefit. 
                  In the event the Participant is determined to be Disabled before the attainment of Normal Retirement Age or Separation from Service, the Employer shall pay to the Contingent Disability Trust:

      

    

     

    

    
      
        	

              	(i)	
                a lump sum payment of the Benefit Liability Balance as of the end of the year preceding the year in which the Participant is determined to be Disabled.  The schedule of the
                    “Benefit Liability Balances” are set forth on Exhibit “A.”

              

      

    

     

    

    
      7

      
        

      
        Nonqualified Deferred Compensation Plan

        Adoption Agreement

      

    

    
      
        	

              	(ii)	
                on the first day of the second month following the date the Participant is determined to be Disabled.

              

      

    

     

    

    
      
        	

              	(iii)	
                If the Participant dies before the payment is made, the Plan shall terminate and all benefits shall cease and be forfeited, including any future benefits or vested
                    benefits.

              

      

    

     

    

    4.02 Medium of Payment.  The form of payment will
        be (choose only one of (a) - (c):

     

    

    
      
        	☒	(a)          	Cash only.

      

    

     

    

    
      
        	☐	(b)          	Property only.

      

    

     

    

    
      
        	☐	(c)          	Property or cash (or
                  both).

      

    

     

    

    Note: A choice between cash or property is not subject to Code §409A.  See Treas. Reg. §1.409A-2(a)(1).  The Plan
        treats this election as not being subject to the timing rules applicable to payment elections.

     

    

    4.02(B)  Change payment elections.  The Plan (choose only one of (a) or (b); choose (c) if (b) applies and choose (d) if applicable):

     

    

    
      
        	☐	(a)          	Change payment elections not
                    permitted.  Does not permit a Participant, a Beneficiary or the Employer to make a change payment election in accordance with Section 4.02(B).

      

    

     

    

    
      
        	☒	(b)          	Permits change payment
                    elections.  Permits changes payment elections or changes to a change payment elections in accordance with Section 4.02(B) and as follows (choose
                    one or more of (i) -(iv)):

      

    

     

    

    
      
        	

              	☐	(i)          	Participant election. 
                  Permits a Participant to make change payment elections.

      

    

     

    

    
      
        	

              	☒	(ii)          	Employer election. 
                  Permits the Employer to make change payment elections.

      

    

     

    

    
      
        	

              	☐	(iii)          	Beneficiary election. 
                  Permits a Beneficiary following the Participant’s death to make change payment elections.

      

    

     

    

    
      
        	

              	☐	(iv)          	(Specify): 
                  _________________________________ (e.g., a Beneficiary may
                  make a change payment election only if the Participant had the right to do so, OR a Participant may make a change payment election only after attaining age 60).

      

    

     

    

    
      
        	☒	(c)          	Limit on number of change
                    payment elections.  The number of change payment elections (as to any initial payment election) that a Participant, a Beneficiary or the Employer (as applicable) may make is (choose one of (i) or (ii)):

      

    

     

    

    
      8

      
        

      
        Nonqualified Deferred Compensation Plan

        Adoption Agreement

      

    

    
      
        	

              	☒	(i)          	Unlimited.  Not
                  limited except as required under Section 4.02(B).

      

    

     

    

    
      
        	

              	[   ]	(ii)          	Limited.  Limited to:
                  ______________ (specify number).

      

    

     

    

    
      
        	[   ]	(d)          	(Specify):
                  __________________________________ (e.g., permits change payment elections only as to specified Benefits).

      

    

     

    

    4.05(B) Election changes/Irrevocability.  A
        Participant who makes a change payment election which the Employer has accepted:

     

    

    (a)          Change payment elections.  (choose one of (i), (ii) or (iii)):

     

    

    
      
        	

              	☐	(i)          	May change.  May
                  change the change payment election as to the Deferred Compensation to which the election applies.  Where the payment event is a Specified Time or a Fixed Schedule, the Participant may change the election until the applicable deadline
                  under Section 4.02(B)(1)(a).  Where the change payment election relates to any other payment event (not a Specified Time or a Fixed Schedule), the Participant must make the change within 30 days following the Participant’s making of the
                  change payment election which the Participant seeks to change.  Any change to a change payment election made after the change payment election becomes irrevocable is a new change payment election.

      

    

     

    

    
      
        	

              	☐	(ii)          	May not change.  May
                  not change the change payment election as to the Deferred Compensation to which the election applies.

      

    

     

    

    
      
        	

              	☒	(iii)          	Not applicable.  As
                  elected above, a Participant may not make a change payment election.

      

    

     

    

    
      9

      
        

      
        Nonqualified Deferred Compensation Plan

        Adoption Agreement

      

    

    EMPLOYER SIGNATURE

     

    

    The Employer hereby agrees to the provisions of this Plan, and in witness of its agreement, the Employer, by its duly authorized
        officer, has executed this Adoption Agreement on April 9, 2008.

     

    

    	 	
            Name of Employer:

          	 
	 	 	 

    	 	
            Signed:

          	 
	 	 	 

    	 	 	
            [Name/Title]

          

     

    

    PARTICIPANT SIGNATURE

     

    

    The Participant hereby agrees to the provisions of this Plan and in witness of its agreement, the Participant has executed this Adoption
        Agreement on April 9, 2008.

     

    

    	 	
            Name of Participant: CORY NEWSOM

          	 
	 	 	 	 
	 	
            Signed:

          	
            /s/ Cory T. Newsom

          	 

    

    

    
      10

      
        

    

    City Bank

    Newsom, Cory T

    February 4, 2008

    End of Year Age:  40

    Retirement Age:  58

    Age At Death:  85

    

    

    	
            End of

            Year

          	 	
            Total 

            

            Benefit 

            

            Liability 

            Balance

          	 
	
            2007

          	 	 	
            79,136

          	 
	
            2008

          	 	 	
            104,043

          	 
	
            2009

          	 	 	
            132,220

          	 
	
            2010

          	 	 	
            164,019

          	 
	
            2011

          	 	 	
            199,823

          	 
	
            2012

          	 	 	
            240,057

          	 
	
            2013

          	 	 	
            285,182

          	 
	
            2014

          	 	 	
            335,707

          	 
	
            2015

          	 	 	
            392,189

          	 
	
            2016

          	 	 	
            455,237

          	 
	
            2017

          	 	 	
            525,521

          	 
	
            2018

          	 	 	
            603,769

          	 
	
            2019

          	 	 	
            690,781

          	 
	
            2020

          	 	 	
            787,434

          	 
	
            2021

          	 	 	
            894,684

          	 
	
            2022

          	 	 	
            1,013,578

          	 
	
            2023

          	 	 	
            1,145,259

          	 
	
            2024

          	 	 	
            1,290,976

          	 
	
            2025

          	 	 	
            1,394,014

          	 
	
            2026

          	 	 	
            1,371,640

          	 
	
            2027

          	 	 	
            1,347,588

          	 
	
            2028

          	 	 	
            1,321,732

          	 
	
            2029

          	 	 	
            1,293,937

          	 
	
            2030

          	 	 	
            1,264,057

          	 
	
            2031

          	 	 	
            1,231,937

          	 
	
            2032

          	 	 	
            1,197,407

          	 
	
            2033

          	 	 	
            1,160,287

          	 
	
            2034

          	 	 	
            1,120,384

          	 
	
            2035

          	 	 	
            1,077,487

          	 
	
            2036

          	 	 	
            1,031,374

          	 
	
            2037

          	 	 	
            981,801

          	 
	
            2038

          	 	 	
            928,511

          	 
	
            2039

          	 	 	
            871,224

          	 
	
            2040

          	 	 	
            809,640

          	 
	
            2041

          	 	 	
            743,438

          	 
	
            2042

          	 	 	
            672,270

          	 
	
            2043

          	 	 	
            595,766

          	 
	
            2044

          	 	 	
            513,523

          	 
	
            2045

          	 	 	
            425,112

          	 
	
            2046

          	 	 	
            330,071

          	 
	
            2047

          	 	 	
            227,901

          	 
	
            2048

          	 	 	
            118,069

          	 
	
            2049

          	 	 	 	 
	
            2050

          	 	 	 	 
	
            2051

          	 	 	 	 

    

    

    
      
        

    

    AMENDMENT TO CORY NEWSOM DEFERRED COMPENSATION PLAN

     

    

    This Amendment is made this 19th day of December, 2014 to
        be effective January 1, 2015, by CITY BANK, TEXAS (“Employer”) to the CORY NEWSOM DEFERRED COMPENSATION PLAN (the “Plan”).

     

    

    W I T N E S S E T H:

     

    

    WHEREAS, Employer has heretofore adopted and maintained the Plan; and

     

    

    WHEREAS, Employer now desires to amend the Plan.

     

    

    NOW, THEREFORE, to carry such Amendment in to effect, the Plan and all instruments thereof heretofore executed are hereby amended
        effective immediately as follows:

     

    

    I.

     

    

    Section 4.01 shall be amended to read as follows:

     

    

    4.01 Participant’s Benefit shall be either (a), (b), or (c), based on the earliest payment event to occur:

     

    

    
      
        	☒	(a)          	Retirement Benefit.  If

                  the Participant has not Separated from Service with Employer and has attained Normal Retirement Age, the Employer shall pay to Participant:

      

    

     

    

    
      
        	

              	(i)	
                Annual payments each in the amount of $150,000.00,

              

      

    

     

    

    
      
        	

              	(ii)	
                Commencing upon the first day of the second month following Participant’s attainment of Normal Retirement Age and thereafter annually on each successive anniversary of the
                    first payment date.

              

      

    

     

    

    
      
        	

              	(iii)	
                At Participant’s death after payments have begun, the Plan shall terminate and all benefits shall cease and be forfeited, including any future benefits or vested benefits.

              

      

    

     

    

    
      
        	☒	(b)          	Separation from Service Benefit.

      

    

     

    

    
      
        	

              	(i)	
                Except as provided in (ii), if the Participant Separates from Service with the Employer for any reason other than death, Disability, or Discharge for Cause prior to
                    attaining Normal Retirement Age, Employer shall pay to Participant:

              

      

    

     

    

    
      
        	

              	(A)	
                A lump sum amount equal to the Benefit Liability Balance as of the end of the year preceding the year in which the Participant Separated from Service multiplied by the
                    Participant’s Vested Percentage.  The schedule of the “Benefit Liability Balances” are set forth on Exhibit “A”.

              

      

    

     

    

    
      
        

    

    
      
        	

              	(B)	
                On the first day of the twenty-fourth month following the Participant’s Separation from Service from the Employer.

              

      

    

     

    

    
      
        	

              	(C)	
                If the Participant dies before the payment is made, the Plan shall terminate and all benefits shall cease and be forfeited, including any future benefits or vested
                    benefits.

              

      

    

     

    

    
      
        	

              	(ii)	
                If the Participant Separates from Service within two years after a Change of Control for any reason other than Discharge for Cause or Disability, the Employer shall pay to
                    Participant:

              

      

    

     

    

    
      
        	

              	(A)	
                Annual payments each in the amount of $150,000.00,

              

      

    

     

    

    
      
        	

              	(B)	
                Commencing upon the first day of the second month following Participant’s attainment of Normal Retirement Age and thereafter annually on each successive anniversary of the
                    first payment date.

              

      

    

     

    

    
      
        	

              	(C)	
                If the Participant dies before the payments begin or after payments have begun, the Plan shall terminate and all benefits shall cease and be forfeited, including any future
                    benefits or vested benefits.

              

      

    

     

    

    
      
        	☒	(c)          	Disability Benefit.  In

                  the event the Participant is determined to be Disabled before the attainment of Normal Retirement Age or Separation from Service, the Employer shall pay to the Contingent Disability Trust:

      

    

     

    

    
      
        	

              	(i)	
                a lump sum payment of the Benefit Liability Balance as of the end of the year preceding the year in which the Participant is determined to be Disabled.  The schedule of the
                    “Benefit Liability Balances” are set forth on Exhibit “A”.

              

      

    

     

    

    
      
        	

              	(ii)	
                on the first day of the second month following the date the Participant is determined to be Disabled.

              

      

    

     

    

    
      
        	

              	(iii)	
                If the Participant dies before the payment is made, the Plan shall terminate and all benefits shall cease and be forfeited, including any future benefits or vested
                    benefits.

              

      

    

     

    

    II.

     

    

    Exhibit A as referenced above shall be amended to the values as set forth on the copy of such Exhibit A attached to this Amendment.

     

    

    III.

     

    

    The Plan, as amended hereinabove, and all instruments thereof heretofore executed be and are hereby ratified and affirmed.

     

    

    
      
        

    

    	 	
            CITY BANK, TEXAS

          
	 	 	 
	 	
            By:

          	
            Curtis Griffith

          

    	 	
            Title:

          	
            Chairman

          
	 	 	
            Authorized Officer

          
	 	 	 
	 	 	
            “Employer”

          

    

    

    
      
        

    

    Participant Plan Summary

    City Bank

    Cory Newsom

    

    

    	
            End of Year

          	 	
            Benefit Liability 

            Balance

          	 
	
            2015

          	 	
            $

          	
            426,146

          	 
	
            2016

          	 	 	
            525,520

          	 
	
            2017

          	 	 	
            634,734

          	 
	
            2018

          	 	 	
            754,781

          	 
	
            2019

          	 	 	
            886,747

          	 
	
            2020

          	 	 	
            1,031,818

          	 
	
            2021

          	 	 	
            1,191,292

          	 
	
            2022

          	 	 	
            1,366,590

          	 
	
            2023

          	 	 	
            1,559,262

          	 
	
            2024

          	 	 	
            1,771,003

          	 
	
            2025

          	 	 	
            1,742,579

          	 
	
            2026

          	 	 	
            1,712,022

          	 
	
            2027

          	 	 	
            1,679,174

          	 
	
            2028

          	 	 	
            1,643,862

          	 
	
            2029

          	 	 	
            1,605,901

          	 
	
            2030

          	 	 	
            1,565,094

          	 
	
            2031

          	 	 	
            1,521,226

          	 
	
            2032

          	 	 	
            1,474,068

          	 
	
            2033

          	 	 	
            1,423,373

          	 
	
            2034

          	 	 	
            1,368,876

          	 
	
            2035

          	 	 	
            1,310,292

          	 
	
            2036

          	 	 	
            1,247,314

          	 
	
            2037

          	 	 	
            1,179,612

          	 
	
            2038

          	 	 	
            1,106,833

          	 
	
            2039

          	 	 	
            1,028,596

          	 
	
            2040

          	 	 	
            944,490

          	 
	
            2041

          	 	 	
            854,077

          	 
	
            2042

          	 	 	
            756,883

          	 
	
            2043

          	 	 	
            652,399

          	 
	
            2044

          	 	 	
            540,079

          	 
	
            2045

          	 	 	
            419,335

          	 
	
            2046

          	 	 	
            289,535

          	 
	
            2047

          	 	 	
            150,000

          	 
	
            2048

          	 	 	 	 
	
            2049Exhibit 10.6

      

       

      

      JOINT BENEFICIARY DESIGNATION

      AGREEMENT

       

        

      
        	
                Insurer and Policy Number:

              	
                Massachusetts Mutual Life Insurance Company Contract

                  

              

      

      
        	

              	
                Certificate/Policy

              

      

       

        

      
        	
                Bank:

              	
                City Bank

              

      

       

        

      
        	
                Insured:

              	
                Cory Newsom

              

      

       

        

      Relationship of Insured to Bank: Executive

      

      

      The respective rights and duties of the Bank and the Insured in the above-referenced policy (hereinafter Policy) shall be pursuant
          to the terms set forth below:

      

      

      
        	
                I.

              	
                EFFECTIVE DATE

              

      

       

        

      The Effective Date of this restated Agreement shall be January 1, 2008. The Agreement was originally effective
          September 1, 2002.

      

      

      
        	
                II.

              	
                DEFINITIONS

              

      

      

      

      Refer to the Policy for the definitions of any terms in this Agreement which are not defined herein. If the
          definition of a term in the Policy is inconsistent with the definition of a term in this Agreement, then the definition of the term as set forth in this Agreement shall supersede and replace the definition of the term as set forth in the Policy.

      

      

      
        	

              	
                A.

              	
                Retirement:

              

      

      

      

      Retirement shall be defined as the Insured's termination of employment with the Bank on or after the date the
          Insured attains age 58.

      

      

      
        	

              	
                B.

              	
                Discharge for Cause:

              

      

      

      

      "Discharge for Cause" shall mean the termination of Insured's employment with the Bank as a result of any of the
          following: (i) the Insured's commission of a felony or gross misdemeanor involving fraud or dishonesty; (ii) the Insured's willful violation of any banking law, rule, or banking regulation; (iii) an intentional failure by Insured to perform
          stated duties; or (iv) a breach of fiduciary duty by Insured involving personal profit. If the Insured is permitted to resign due to inappropriate conduct as defined above, the Bank may deny all benefits.

       

        

      
        
          

      

      
      
        	

              	
                C.

              	
                Change of Control:

              

      

      

      

      "Change of Control" shall mean a change during the Insured's employment with the Bank: (i) in the ownership of
          the Bank (acquisition by one or more persons acting as a group of more than 50% of the total voting power or fair market value of the Bank); (ii) in the effective control of the Bank (acquisition or acquisitions during a 12-month period ending on
          the date of the latest acquisition, by one or more persons acting as a group, of 30% or more of the total voting power of the Bank or replacement of a majority of the members of the board of directors of the Bank [described below, but including
          only the entity for which no other corporation is a majority shareholder] during any 12-month period by directors not endorsed by a majority of the board before the appointment or election); or (iii) in the ownership of a substantial portion of
          the assets of the Bank (acquisition or acquisitions during a 12-month period ending on the date of the latest acquisition, by one or more persons acting as a group, of assets with a total gross fair market value of 40% or more of the total gross
          fair market value of all assets of the Bank immediately before such acquisition or acquisitions) (There is no change in control when there is a transfer to an entity which is controlled by the shareholders of the transferring corporation. A
          transfer of assets by the Bank is not treated as a change in ownership of such assets if the assets are transferred to (i) a shareholder of the Bank in exchange for or with respect to its stock; (ii) an entity, 50% or more of the total value or
          voting power is owned by the Bank; (iii) a person or more than one person acting as a group, which owns directly or indirectly 50% or more of the total value or voting power of all the outstanding stock of the Bank; or (iv) an entity, at least
          50% of the total value or voting power of which is owned, directly or indirectly, by a person described in (iii).) For this purpose, the Bank includes the Bank or a majority shareholder (more than 50% of total fair market value and voting power)
          of the Bank. Additionally, for this purpose, transfers of stock made on account of death, gifts, transfers of stock between family members or acquisitions by any qualified retirement plan sponsored by South Plains Financial, Inc. shall not be
          considered in determining whether there has been a Change of Control.

      

      

      
        	

              	
                D.

              	
                Disability:

              

      

      

      

      "Disability" means a condition of the Insured incurred while employed by the Bank and includes 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 not less than 12 months and which results in the Insured: (i) being unable to engage in any substantial
          gainful activity; or (ii) receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering employees. The Bank will determine whether Insured has incurred a Disability based on its own good
          faith determination and may require the Insured to submit to reasonable physical and mental examinations for this purpose. The Insured will be deemed to have incurred a Disability if: (i) the Social Security Administration or Railroad Retirement
          Board determines that the Insured is totally disabled; or (ii) the applicable insurance company providing disability insurance to the Insured under a Bank sponsored disability program determines that the Insured is disabled under the insurance
          contract definition of disability, provided such definition complies with the definition in this paragraph.

       

        

      
        2

        
          

      

      
        	

              	
                E.

              	
                Years of Service:

              

      

      

      

      To receive credit for one Year of Service, the Insured must remain in continuous employment with the Bank for an
          entire twelve-month period, the first such period beginning on the original effective date of this Agreement, and successive periods beginning on the anniversary of such date.

      

      

      
        	
                III.

              	
                POLICY TITLE AND OWNERSHIP

              

      

      

      

      Title and ownership of the Policy shall reside in the Bank for its use and for the use of the Insured in
          accordance with this Agreement. The Bank alone may, to the extent of its interest, exercise the right to borrow or withdraw on the Policy cash values. Where the Bank and the Insured (or assignee, with the consent of the Insured) mutually agree to
          exercise the right to increase the coverage under the subject Policy, then, in such event, the rights, duties and benefits of the parties to such increased coverage shall continue to be subject to the terms of this Agreement.

      

      

      
        	
                IV.

              	
                BENEFICIARY DESIGNATION RIGHTS

              

      

      

      

      The Insured (or assignee) shall have the right and power to designate a beneficiary or beneficiaries to receive
          the Insured's share of the proceeds payable upon the death of the Insured, subject to any right or interest the Bank may have in such proceeds, as provided in this Agreement.

      

      

      
        	
                V.

              	
                PREMIUM PAYMENT METHOD

              

      

      

      

      Subject to the Bank's absolute right to surrender or terminate the Policy at any time and for any reason, the
          Bank shall pay an amount equal to the planned premiums and any other premium payments which might become necessary to keep the Policy in force.

      

      

      
        	
                VI.

              	
                TAXABLE BENEFIT

              

      

      

      

      Annually the Insured will receive a taxable benefit equal to the assumed cost of insurance as required by the
          Internal Revenue Service. The Bank (or its administrator) will report to the Insured the amount of imputed income each year on Form W-2 or its equivalent.

      

      

      
        	
                VII.

              	
                DEATH BENEFITS

              

      

       

        

      Subject to Paragraphs VIII, IX, X and XI herein, the division of the death proceeds of the Policy will be as
          follows:

      

      

      
        	

              	
                A.

              	
                The Insured's beneficiary(ies), designated in accordance with Paragraph IV, shall be entitled to an amount equal to one
                    hundred percent (100%) of the net-at-risk insurance portion of the Policy proceeds if Insured's date of death occurs: (i) while employed by the Bank; (ii) after Retirement; (iii) after a Change of Control; (iv) after a determination of
                    Disability of the Insured. The net-at-risk insurance portion is the total Policy proceeds less the cash value of the Policy.

              

      

      

      

      
        3

        
          

      

      
        	

              	
                B.

              	
                The Insured's beneficiary(ies), designated in accordance with Paragraph IV, shall be entitled to the percentage as
                    determined below of an amount equal to one hundred percent (100%) of the net-at-risk insurance portion of the Policy proceeds, if the Insured's date of death occurs at a time not described in subparagraph VII.A.

              

      

      

      

      
        	
                Years of Service

              	
                Vesting Percentage

              
	
                0

              	
                50%

              
	
                1

              	
                55%

              
	
                2

              	
                60%

              
	
                3

              	
                65%

              
	
                4

              	
                70%

              
	
                5

              	
                75%

              
	
                6

              	
                80%

              
	
                7

              	
                85%

              
	
                8

              	
                90%

              
	
                9

              	
                95%

              
	
                10

              	
                100%

              

      

      

      

      
        	

              	
                C.

              	
                The Bank shall be entitled to the remainder of the Policy proceeds.

              

      

      

      

      
        	

              	
                D.

              	
                The Bank and the Insured (or assignees) shall share in any interest due on the death proceeds on a pro rata basis as the
                    proceeds due each respectively bears to the total proceeds, excluding any such interest.

              

      

      

      

      
        	
                VIII.

              	
                DIVISION OF THE CASH SURRENDER VALUE OF THE POLICY

              

      

       

        

      The Bank shall at all times be entitled to an amount equal to the Policy's cash value, as that term is defined
          in the Policy, less any Policy loans and unpaid interest or cash withdrawals previously incurred by the Bank and any applicable surrender charges. Such cash value shall be determined as of the date of surrender or death as the case may be.

      

      

      
        	
                IX.

              	
                TERMINATION OF AGREEMENT

              

      

      

      

      
        	

              	
                A.

              	
                Notwithstanding any other provision of this Agreement, this Agreement shall terminate and all benefits shall be forfeited
                    upon the occurrence of any of the following:

              

      

      

      

      
        	

              	
                1.

              	
                The Insured shall leave the employment of the Bank (voluntarily or involuntarily) prior to one (1) full year of
                    employment with the Bank from the date of first employment.

              

      

      

      

      
        	

              	
                2.

              	
                The Insured shall be
                    Discharged for Cause.

              

      

      

      

      
        	

              	
                3.

              	
                Surrender, lapse, or other termination of the Policy by the Bank, and subject to the Insured's option as set forth
                    hereunder.

              

      

      

      

      
        	

              	
                4.

              	
                It is determined in the sole judgment of the Bank that the Insured has materially breached any covenants of Article XI.

              

      

      

      

      
        4

        
          

      

      
        	

              	
                B.

              	
                Upon such termination of
                    this Agreement pursuant to subparagraph IX.A.3. but prior to the termination of the Policy by the Bank, the Insured (or assignee) shall have a fifteen (15)day option to receive from the Bank an absolute assignment of the Policy in
                    consideration of a cash payment to the Bank, whereupon this Agreement shall terminate, Such cash payment referred to hereinabove shall be the greater of the cash surrender value of the Policy or the amounts of the premiums paid by the
                    Bank prior to the date of the assignment.

              

      

      

      

      
        	

              	
                C.

              	
                If, within said fifteen (15) day period, the Insured fails to exercise said option, fails to make the cash payment
                    described in subparagraph IX(B), or dies, then the option shall terminate and the Insured (or assignee) agrees that all of the Insured's rights, interest and claims in the policy shall terminate as of the date of the termination of this
                    Agreement.

              

      

      

      

      
        	

              	
                D.

              	
                The Insured expressly agrees this Agreement shall constitute sufficient written notice to the Insured of the Insured's
                    option to receive an absolute assignment of the Policy as set forth herein.

              

      

      

      

      
        	

              	
                E.

              	
                Except as provided above, this Agreement shall terminate upon distribution of the death benefit proceeds in accordance
                    with Paragraph VII. above. 

                  

              

      

      

      

      
        	

              	
                F.

              	
                Upon termination of this Agreement, all benefits shall cease and shall be forfeited, including any future benefits or vested benefits,

              

      

      

      

      
        	
                X.

              	
                INSURED'S OR ASSIGNEE'S
                    ASSIGNMENT RIGHTS

              

      

      

      

      The Insured may not, without the written consent of the Bank, assign to any individual, trust or other
          organization, any right, title or interest in the subject policy nor any rights, options, privileges or duties created under this Agreement.

      

      

      
        	
                XI.

              	
                CONFIDENTIALITY, NON-COMPETITION AND NON-DISCLOSURE

              

      

      

      

      
        	

              	
                A.

              	
                Confidentiality of Agreement.

              

      

       

            

      Insured agrees to treat the existence and the terms of this Agreement as strictly confidential. Accordingly,
          with the exception of Insured's immediate family, Insured agrees not to disclose, either directly or indirectly, to any person or entity (i) the benefits under this Agreement which have been made available to him or may be made available to him
          in the future; (ii) any discussion or negotiations which have occurred in connection with this Agreement; (iii) the existence, terms, or conditions of this Agreement or the benefits provided hereunder, without the prior written consent of the
          Bank, except as required for income reporting purposes; or as required by a court of competent jurisdiction or other administrative or legislative body; provided, prior to disclosing any of the confidential information to a court or other
          administrative or legislative body, Insured shall promptly notify the Bank so it may seek a protective order or other appropriate remedy.

      

      

      
        5

        
          

      

      
        	

              	
                B.

              	
                Proprietary Information of Bank:

              

      

      

      

      
        	

              	
                a.

              	
                Bank promises to give Insured "trade secrets" or confidential information during the course of the Insured's employment
                    with the Bank. The term "trade secret" shall mean any devices, secret inventions, processes and compilations of information and records owned by the Bank and regularly used in the operation of the business of the Bank. Insured
                    acknowledges the direct and indirect disclosure of any such confidential information to existing or potential competitors of the Bank would place the Bank at a competitive disadvantage and would do damage, monetary or otherwise, to the
                    Bank's business; and the engaging by Insured in any of the activities prohibited by this Agreement may constitute improper appropriation and/or use of such information and trade secret status. Insured expressly acknowledges trade secret
                    status of the confidential information and the confidential information constitutes a protectable business interest of the Bank.

              

      

      

      

      
        	

              	
                b.

              	
                From the date of this Agreement, Insured shall not, directly or indirectly, whether individually, as a director,
                    stockholder, owner, partner, employee, principal or agent of any business, or in any other capacity, make known, disclose, furnish, make available or utilize any of the confidential information of the Bank other than in the proper
                    performance of the duties contemplated herein, or as required by a court of competent jurisdiction or other administrative or legislative body; provided that, prior to disclosing any of the confidential information to a court or other
                    administrative or legislative body, Insured shall promptly notify the Bank so it may seek a protective order or other appropriate remedy. Insured agrees to return all confidential information, including all photocopies, extracts and
                    summaries thereof, and any such information stored electronically on tapes, computer disks or in any other manner to the Bank at any time upon request by the Bank and upon the termination of his engagement for any reason.

              

      

      

      

      
        	

              	
                C.

              	
                Non-Competition Agreement:

              

      

      

      

      Ancillary to subparagraph XI.B.a., from the Effective Date until the second anniversary of the termination of
          employment (the "Non-Competition Period"), Insured agrees not to engage in Competition (as defined below) with the Bank in any County where the Bank maintains a branch office. For purposes of this Agreement, "Competition" by Insured shall mean
          Insured's engaging in, or otherwise directly or indirectly being employed by or acting as a consultant or lender to, or being a director, officer, employee, principal, licensor, trustee, broker, agent, stockholder, member, owner, joint venturer
          or partner of, or permitting his name to be used in connection with the activities of any other business or organization which is engaged in the same business as the business of the Bank as the same shall be constituted at any time during or
          following his engagement; provided that, it shall not be a violation of this Agreement for Insured to (i) become the registered or beneficial owner of less than five percent (5%) of any class of the capital stock of a competing corporation
          registered under the Securities Exchange Act of 1934, as amended or (ii) be employed by an entity which engages in the same business as the business of the Bank so long as Insured does not directly perform services for or work within a division
          or business unit of such entity that engages in the business of the Bank.

      

      

      
        6

        
          

      

      
        	

              	
                D.

              	
                Solicitation of Bank's Customers:

              

      

      

      

      Without limiting the generality of the foregoing, during the Non-Competition Period, Insured agrees he will not,
          directly or indirectly, for his benefit or for the benefit of any other person, firm or entity, do any of the following:

      

      

      
        	

              	
                a.

              	
                solicit from any customer doing business with the Bank business of the same or of a similar nature to the business
                    conducted between the Bank and such customer;

              

      

      

      

      
        	

              	
                b.

              	
                solicit the employment or services of any person who at the time is employed by or a consultant to the Bank; or

              

      

      

      

      
        	

              	
                c.

              	
                make any statements or comments of a defamatory or disparaging nature to third parties regarding the Bank or its
                    officers, directors, personnel, products or services.

              

      

      

      

      
        	

              	
                E.

              	
                Injunctive Relief.

              

      

      

      

      Insured acknowledges the Insured's agreement to the terms set forth herein are a critical inducement to the
          entering into the Life Insurance Endorsement Method Split Dollar Plan Agreement by the parties thereto, and a material breach by him of any of the provisions contained under this paragraph will cause the Bank irreparable injury and would not be
          reasonably or adequately compensated for by damages in an action at law. Insured therefore agrees the Bank shall be entitled, in addition to any other right or remedy, to a temporary, preliminary and permanent injunction without the necessity of
          proving the inadequacy of monetary damages or the posting of any bond or security, enjoining or restraining Insured from any such violation.

      

      

      
        	

              	
                F.

              	
                Reformation of Agreement.

              

      

      

      

      Insured further acknowledges and agrees that due to the uniqueness of his services and confidential nature of
          the information available to Insured during his past and future employment with Bank, the covenants set forth herein are reasonable and necessary for the protection of the business and goodwill of the Bank; and it is the intent of the parties
          hereto that if in the opinion of any court of competent jurisdiction any provision set forth in this Agreement is not reasonable in any respect, or that any provision should be deemed to exceed the time, geographic or occupational limits
          permitted by applicable law, such court shall have the right, power and authority to modify any and all such provisions as to such court shall appear not unreasonable and to enforce the remainder of this Agreement as so modified.

      

      

      
        7

        
          

      

      
        	

              	
                G.

              	
                Forfeiture of Benefits in the
                        Event of Breach.

              

      

      

      

      Notwithstanding any other provision of this Agreement, if at any time it is determined in the sole judgment of
          the Bank that the Insured has materially breached any of the covenants under this paragraph, all benefits provided herein shall be forfeited and this Agreement shall be terminated and no death benefits shall be due hereunder and, if applicable,
          the Insured's beneficiary(ies) shall repay to the Bank any and all death benefits already received, without prejudice to the Bank's right to pursue other equitable and legal remedies for enforcement and recovery under this Agreement.

      

      

      
        	
                XII.

              	
                ADMINISTRATIVE AND CLAIMS PROVISIONS

              

      

       

        

      The following provisions are part of this Agreement and are intended to meet the requirements of the Employee
          Retirement Income Security Act of 1974 (ERISA"):

      

      

      
        	

              	
                A.

              	
                Plan Administrator.

              

      

      

      

      The "Plan Administrator' of this Agreement shall be City Bank. As Plan Administrator, the Bank shall be
          responsible for the management, control and administration of this Agreement as established herein. The Plan Administrator may delegate to others certain aspects of the management and operation responsibilities of the Agreement, including the
          employment of advisors and the delegation of ministerial duties to qualified individuals.

      

      

      
        	

              	
                B.

              	
                Basis of Payment of Benefits.

              

      

      

      

      Direct payment by the Insurer is the basis of payment of benefits under this Agreement, with those benefits in
          turn being based on the payment of premiums as provided in this Agreement.

      

      

      
        	

              	
                C.

              	
                Claims Procedures.

              

      

      

      

      Claim forms or claim information as to the Policy can be obtained by contacting Renaissance Bank Advisors
          (800-544-6079). When the Plan Administrator has a claim which may be covered under the provisions described in the Policy, they should contact the office named above, and they will either complete a claim form and forward it to an authorized
          representative of the Insurer or advise the Plan Administrator what further requirements are necessary. The Insurer will evaluate and make a decision as to payment. If the claim is payable, a benefit check will be issued in accordance with the
          terms of this Agreement. In the event that a claim is not eligible under the Policy, the Insurer will notify the Plan Administrator of the denial pursuant to the requirements under the terms of the Policy. If the Plan Administrator is
          dissatisfied with the denial of the claim and wishes to contest such claim denial, it should contact the office named above and they will assist in making an inquiry to the Insurer. All objections to the Insurer's actions should be in writing and
          submitted to the office named above for transmittal to the Insurer.

      

      

      
        	
                XIII.

              	
                MISCELLANEOUS

              

      

      

      

      
        	

              	
                A.

              	
                Whenever in this Agreement words are used in the masculine or neuter gender, they shall be read and construed as in the
                    masculine, feminine or neuter gender, whichever should so apply.

              

      

      

      

      
        8

        
          

      

      
        	

              	
                B.

              	
                The Insurer shall not be deemed a party to this Agreement, but will respect the rights of the
                    parties as herein developed upon receiving an executed copy of this Agreement. Payment or other performance in accordance with the Policy shall fully discharge the Insurer from any and all liability. 

                  

              

      

      

      

      
        	

              	
                C.

              	
                Subject
                    to the Bank's sole and absolute right to surrender or terminate any and all life insurance policies that are the subject matter of this Agreement, it is agreed by the parties that, during the lifetime of the Insured, this Agreement may
                    be amended or revoked at anytime or times, in whole or in part, by the mutual written consent of the Insured and the Bank. The Bank may, however, unilaterally and without the consent of the insured, exchange any life insurance
                    policy(ies) that are the subject matter of this Agreement, with or without replacing said policy(ies) and, in the event of a same or similar exchange, the Insured expressly agrees to the same.

              

      

      

      

      
        	

              	
                D.

              	
                If a provision of this Agreement is held to be invalid or unenforceable, the remaining provisions
                    shall nonetheless be enforceable according to their terms. Further, in the event any provision is held to be overbroad as written such provision shall be deemed amended to narrow its application to the extent necessary to make the
                    provision enforceable according to law and enforced as amended.

              

      

      

      

      
        	

              	
                E.

              	
                The Bank is entering into this Agreement upon the assumption that certain existing tax laws, rules
                    and regulations will continue in effect in their current form. If any said assumptions should change and said change has a detrimental effect on this Agreement, then the Bank reserves the right to terminate or modify this Agreement
                    accordingly. Upon a Change of Control, this paragraph shall become null and void.

              

      

      

      

      
        	

              	
                F.

              	
                The laws of the State of Texas shall govern the validity and interpretation of this Agreement.

              

      

      

      

      
        	

              	
                G.

              	
                This Agreement shall bind the Insured and the Bank, their heirs, successors, personal
                    representatives and assigns.

              

      

      

      

      
        9

        
          

      

      	

            	
              EXECUTED at Lubbock this 9th day of
                  April, 2008.

            
	

            	

            	

            
	

            	

            	
              CITY BANK

            
	

            	

            	 	 
	

            	

            	
              By:

            	/s/ [illegible]

            
	

            	

            	

            	
              Bank Officer

            
	

            	

            	

            	
              Title

            
	

            	

            	

            	

            
	

            	

            	

            	/s/ Cory Newsom 
	

            	

            	

            	
              Cory Newsom, Insured

            

      

      

      

      

      10

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