Document:

Form Performance-Based Restricted Stock Unit Award Agreement--Senior Executives

 Exhibit 10.26 to 2005 10-K 
 PERFORMANCE-BASED RESTRICTED STOCK UNIT AWARD 
 UNDER THE PROVISIONS OF 
 THE CONVERGYS CORPORATION 
 1998 LONG
TERM INCENTIVE PLAN, AS AMENDED 
 Pursuant to the provisions of the Convergys Corporation 1998 Long Term Incentive Plan, as amended (the
“Plan”), the Compensation and Benefits Committee of the Board of Directors of Convergys Corporation (the “Compensation Committee”) has granted you a performance-based restricted stock unit award, on and subject to the terms of
the Plan and your agreement to the following terms, conditions and restrictions. 
 1. Delivery of Shares. Subject to and upon the
terms, conditions, and restrictions set forth in this Agreement, Convergys Corporation (the “Company”) shall deliver to you the number of common shares, without par value, of Convergys Corporation (the “Shares”) determined in
accordance with the provisions of Section 2 below, which delivery of Shares shall occur as soon as administratively practicable following the vest date(s) (as defined below). 
 2. Performance Criteria. You are eligible to earn the right to receive a number of Shares based on (a) the Company’s Total Shareholder
Return (“TSR”) over any three consecutive calendar year period occurring during the six year period commencing January 1, XXXX (each such three consecutive year period being referred to herein as a “performance period” and
the last day of each such performance period being referred to herein as a “vest date”) relative to the TSR of the following companies: 
 ________________________________________________________________________________________________________________________ 
 ________________________________________________________________________________________________________________________ 
 (other than, for any performance period, any company in such peer group that ceases to exist prior to the last day of the applicable performance period due to merger, bankruptcy, disposition, acquisition or other corporate event)
(collectively, the “Peer Group”) over the same period(s) and (b) the payout schedule provided to you separately (the “Payout Schedule”). In the event that the number of companies in the Peer Group as of the end of the
applicable performance period is less than XX, the Peer Group used for purposes of this award shall consist of ___________________________________________________________________________________________________________ 
 ____________________________________________________________________________________. In no event shall more Shares than the maximum number listed in your
Payout Schedule be delivered to you or on your behalf pursuant to this award. 
 “TSR” means stock price
appreciation plus dividend yield, assuming immediate reinvestment of dividends in the stock with respect to which such dividends were paid, over the term of the applicable performance period. Stock price appreciation over the term of the applicable
performance period for a company will be determined by comparing (c) the average close price as reported in the Wall Street Journal of the stock of the applicable company for each trading day occurring during the calendar quarter ending on the
day immediately preceding the start of the applicable performance period to (d) the average close price as reported in the Wall Street Journal of the stock of the applicable company for each trading day occurring during the calendar quarter
ending on the last day of the applicable performance period. 
 The number of Shares earned at the end of each applicable
performance period will be delivered as soon as administratively practicable following the end of such performance period. If less than the maximum number of Shares indicated on the Payout Schedule is paid out based on the performance results for
the first performance period, you will have an opportunity to earn payout of the remaining Shares in a subsequent performance period, if any. However, in order for additional Shares to be paid out at the 
  

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 Exhibit 10.26 to 2005 10-K 
 end of performance periods occurring after the initial performance period, the Company’s level of achievement of the performance criteria for the applicable performance period must exceed its level of achievement
in all prior performance periods. 
 3. Forfeiture of Award. 
  

	 	a.	Your right to receive Shares that are the subject of this award that have not yet been delivered, shall be forfeited automatically and without further notice if you cease to be an
employee of the Company and its affiliates prior to any vest date for any reason other than death, disability, retirement or involuntary termination without cause. For purposes of this Agreement: 

  

	 	(i)	“disability” has the same meaning as in the Company’s long-term disability plan; 

  

	 	(ii)	“retirement” means termination of employment after (I) attaining age 55 and completing at least ten years of service with the Company or any of its subsidiaries or
(II) completing thirty years of service with the Company or any of its subsidiaries; and 

  

	 	(iii)	“cause” means a determination by the Company that you have been involved in fraud, misappropriation, embezzlement, commission of a crime or an act of moral turpitude, or
have violated the Code of Business Conduct, recklessly or willfully injured an employee, company property, business, or reputation, or have acted recklessly in the performance of your duties. 

 Your right to receive Shares that are the subject of this award shall be forfeited automatically and without further notice if you cease to be an
employee of the Company and its affiliates during the calendar year in which this Award is granted to you due to death or involuntary termination without cause. 
 Subject to Section 4(c), if your employment is involuntarily terminated without cause after the calendar year in which this award is granted to you, your right to earn Shares that are the subject of this award
based on the Company’s level of satisfaction of the applicable performance criteria for performance periods ending after the date of your termination shall be forfeited automatically and without further notice. 
  

	 	b.	If the Company determines that you engaged in any Detrimental Activity during your employment with Convergys Corporation or during the two-year period following the termination of
such employment for any reason, (i) to the extent all or some of the Shares subject to this award have not yet been delivered, your right to receive such Shares shall be forfeited and (ii) to the extent that Shares have been delivered to
you pursuant to this award, the Company, in its sole discretion, may require you to pay back to it an amount equal to the income recognized for federal income tax purposes, as reflected on form W-2, by reason of the issuance of such Shares to you,
provided that such Shares were delivered within the six-month period immediately preceding the termination of your employment (or, if your employment terminated by reason of your retirement or disability, within the period 

 

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 Exhibit 10.26 to 2005 10-K 
 beginning six months prior to your termination and ending two years following your termination). For purposes of this Section 3b, “Detrimental Activity” shall include: (1) disclosing proprietary,
confidential or trade secret information; (2) becoming involved in any business activity in competition with Convergys Corporation in the geographical area where Convergys Corporation is engaged in such business activity; (3) interfering
with Convergys Corporation’s relationships with any person or entity or attempting to divert or change any such relationship to the detriment of Convergys Corporation or the benefit of any other person or entity; (4) failing to disclose
and assign to Convergys Corporation any ideas, inventions, discoveries and other developments conceived by you during your employment, whether or not during working hours, which are within the scope of or related to Convergys Corporation’s
existing or planned business activities; (5) disparaging or acting in any manner which may damage the business of Convergys Corporation or which would adversely affect the goodwill, reputation or business relationships of Convergys Corporation;
(6) inducing any employee of Convergys Corporation to terminate his or her employment relationship with Convergys Corporation; or (7) taking or retaining without authorization any property of Convergys Corporation. Convergys Corporation
shall be entitled to set-off against any payment called for under this Agreement any amount otherwise owed to you by the Company. Nothing in this Section is intended to supercede or otherwise affect any Non-Disclosure and Non-Competition agreement
or other employment-related agreement between you and Convergys Corporation. References to Convergys Corporation in this paragraph shall include all direct and indirect subsidiaries of Convergys Corporation. 
  

	 	c.	Your right to receive Shares pursuant to this award shall be forfeited to the extent you are permitted to elect and do elect in accordance with applicable rules and procedures to
forfeit and/or surrender your rights hereunder in exchange for a credit to an account maintained for you pursuant to a deferred compensation plan maintained by the Company; provided however that the provisions of paragraph 3.b. shall continue to
apply to Shares issued under any such deferred compensation plan which are attributable to such election. 

 4. Death,
Disability, Retirement and Involuntary Termination Without Cause. 
  

	 	a.	If you cease to be an employee of the Company and its affiliates due to death after the calendar year in which this award was granted to you, this award will become fully vested as
of the date of your death and the maximum number of Shares covered by this award, reduced by any Shares previously delivered, will be delivered as soon as practicable following your date of death. 

  

	 	b.	If you cease to be an employee of the Company and its affiliates due to disability or if you cease to be an employee of the Company and its affiliates due to retirement after the
calendar year in which this award was granted to you, this award will remain in effect following your termination and you will 

  

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 Exhibit 10.26 to 2005 10-K 
 be entitled to receive the number of Shares earned, if any, with respect to any performance period covered by this award based on the Payout Schedule and the Company’s level of satisfaction of the performance
criteria described in Section 2 as of the vest date(s) described in Section 2. 
  

	 	c.	If you cease to be an employee of the Company and its affiliates due to retirement during the calendar year in which this award was granted to you, the number of Shares that are
covered by this award shall be automatically reduced to a number of Shares that bears the same ratio to the total number of Shares covered by the award as the number of days from the first day of the calendar year through the date of your
retirement/termination bears to 365. The remaining Shares shall be forfeited automatically and without further notice as of the date of your retirement. You will be entitled to receive the number of Shares earned, if any, with respect to any
performance period covered by this award based on the reduced number of Shares calculated pursuant to this paragraph c., the Payout Schedule and the Company’s level of satisfaction of the performance criteria described in Section 2 as of
the vest date(s) described in Section 2. 

  

	 	c.	Except as may be otherwise provided under the terms of an employment agreement, if you cease to be an employee of the Company and its affiliates due to involuntary termination
without cause after the calendar year in which this award was granted to you but before the end of the initial performance period, you will be entitled to receive the number of Shares earned, if any, based on the Payout Schedule and the
Company’s level of satisfaction of the performance criteria described in Section 2 over the period beginning January 1, XXXX and ending on the last day of the calendar year preceding the calendar year in which your employment
terminates. Except as may be otherwise provided under the terms of an employment agreement, if you cease to be an employee of the Company and its affiliates due to involuntary termination without cause after the last day of the initial performance
period, you will be entitled to receive the number of Shares earned, if any, based on the Payout Schedule and the Company’s level of satisfaction of the performance criteria described in Section 2 as of the performance period ending
immediately prior to your date of termination. Shares earned, if any, pursuant to the provisions of this section 4c will be delivered as soon as administratively practicable following the date your employment terminates. 

 5. Rights as a Shareholder. You shall not have any rights as a shareholder of the Company with respect to any Shares that may be deliverable
hereunder unless and until such Shares have been delivered to you. 
 6. Transferability. Your right to receive the Shares shall not be
transferable nor assignable by you other than by will or by the laws of descent and distribution. 
 7. Tax Withholding. In connection
with the delivery of Shares to you, the Company will withhold or cause to be withheld from your salary payments or other sources such amounts of tax at such times as may be required by law to be withheld with respect to the 
  

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 Exhibit 10.26 to 2005 10-K 
 Shares, provided that if your salary or such other sources are not sufficient for such purpose, you shall remit to the Company, on request, the amount required for such withholding taxes. In the alternative, you may
elect, in accordance with applicable rules and procedures, to surrender your right to receive the number of Shares necessary to cover the required tax withholding obligation. 
 8. No Employment Contract. Nothing contained in this Agreement shall confer upon you any right with respect to continuance of employment by the
Company or any subsidiary, nor limit or affect in any manner the right of the Company or any subsidiary to terminate your employment or adjust your compensation. 
 9. Compliance with Law. The Company shall make reasonable efforts to comply with all applicable federal and state securities laws; provided, however, notwithstanding any other provision of this Agreement, the
Shares shall not be delivered if the delivery thereof would result in a violation of any such law. 
 10. Amendments. Any amendment to
the Plan shall be deemed to be an amendment to this Agreement to the extent that the amendment is applicable hereto; provided, however, that no amendment shall adversely affect your rights under this Agreement without your consent. 
 11. Severability. In the event that one or more of the provisions of this Agreement shall be invalidated for any reason by a court of competent
jurisdiction, any provision so invalidated shall be deemed to be separable from the other provisions hereof, and the remaining provisions hereof shall continue to be valid and fully enforceable. 
 12. Relation to Plan. This Agreement is subject to the terms and conditions of the Plan. In the event of any inconsistency between the provisions
of this Agreement and the Plan, the Plan shall govern. Capitalized terms used herein without definition shall have the meanings assigned to them in the Plan. The Compensation Committee acting pursuant to the Plan, as constituted from time to time,
shall, except as expressly provided otherwise herein, have the right to determine any questions which arise in connection with the grant of this award. 
 13. Successors and Assigns. Without limiting Section 6 hereof, the provisions of this Agreement shall inure to the benefit of, and be binding upon, your successors, administrators, heirs, legal
representatives and assigns, and the successors and assigns of the Company. 
 14. Governing Law. The interpretation, performance, and
enforcement of this Agreement shall be governed by the laws of the State of Ohio, without giving effect to the principles of conflict of laws thereof. 
  

 Page 5 of 5Severance and Non-Competition Agreement

 Exhibit 10.1 
 SEVERANCE AND NON-COMPETITION AGREEMENT 
 THIS SEVERANCE and NON-COMPETITION AGREEMENT (the
“Agreement”) is entered into effective as of this 1st day of March, 2006 by and among Sterling
Bancshares, Inc., a Texas corporation (“Bancshares”), Sterling Bank, a banking association chartered by the State of Texas and an indirect subsidiary of Bancshares (“Bank”) and C. Wallis McMath, Jr. (the “Executive
Officer”). 
 WHEREAS, the Executive Officer is being employed by Bancshares and/or Bank in a position in which he will have
access to, and will gain knowledge of, confidential and proprietary information of Bancshares, Bank, Sterling Bancorporation, Inc. and their respective affiliates (each, a “Sterling Entity,” and together, the “Sterling
Entities”), and the parties wish to ensure that the Executive Officer will enjoy access to the Sterling Entities’ existing and future confidential and proprietary information; 
 WHEREAS, the Sterling Entities’ confidential and proprietary information constitutes a substantial asset of the Sterling Entities that the
parties mutually wish to protect; 
 WHEREAS, the Executive Officer is already subject to certain confidentiality obligations under
Texas law, and the parties reasonably believe that it would be difficult, if not impossible, for the Executive Officer to refrain from using or disclosing the confidential and proprietary information of the Sterling Entities in the event that the
Executive Officer were to work for any other financial institution after terminating his/her employment with Bancshares and/or the Bank; 
 WHEREAS, the parties mutually desire to achieve a level of certainty and predictability concerning the post-employment activities the Executive Officer may perform, and when; 
 WHEREAS, the parties mutually desire to compensate the Executive Officer for any restriction on his ability to engage in certain competitive
activities; and 
 WHEREAS, the parties mutually desire to ensure that the Executive Officer receives certain severance benefits in
the event that his employment is terminated by Bancshares and Bank without cause, or following a “Change of Control” (as herein defined) under the conditions set forth herein. 
 NOW, THEREFORE, in consideration of the foregoing and the premises, representations, and mutual covenants hereinafter set forth, the parties do
hereby agree as follows: 
 1. Definitions. The following words and terms shall have the meanings set forth below for purposes of this
Agreement: 
 (a) Cause. A termination of employment is for “Cause” only if it is due to: 
 (i) serious intentional misconduct on the part of the Executive Officer; 

 McMath 
 (ii) fraud, misappropriation or embezzlement related to any of the Sterling Entities on the part of the Executive Officer; 
 (iii) the conviction of the Executive Officer of any felony or crime involving moral turpitude; 
 (iv) a material violation by the Executive Officer of any applicable federal or state banking law or regulation that has had, or may have,
a material adverse effect on any Sterling Entity; 
 (v) a material breach of any corporate policy including, without
limitation, the Code of Business Conduct and Ethics and the Code of Ethics for Senior Officers, as applicable to the Executive Officer which, if correctable, remains uncorrected for 30 days following written notice to the Executive Officer by a
Sterling Entity of such breach; 
 (vi) a material breach of this Agreement which, if correctable, remains uncorrected for 30
days following written notice to the Executive Officer by a Sterling Entity of such breach; or 
 (vii) the willful and
continued failure by the Executive Officer to perform substantially the Executive Officer’s duties on behalf of any Sterling Entity, other than any such failure resulting from the Executive Officer’s incapacity due to Disability, which
failure is not promptly abated after a demand for substantial performance is delivered to the Executive Officer by Bancshares or other applicable Sterling Entity that specifically identifies the manner in which the Executive Officer has not
substantially performed the Executive Officer’s duties and gives the Executive Officer a reasonable period of cure. 
 For purposes of this definition,
any act or failure to act on the Executive Officer’s part shall be considered “material” or “willful” if done or omitted to be done by the Executive Officer otherwise than in good faith and without reasonable belief that the
Executive Officer’s action or omission was in the best interest of the Sterling Entities. 
 (b) Change of
Control. A “Change of Control” shall be deemed to have occurred if: 
 (i) any “person” or
“group” (within the meanings of Sections 13(d) or 14(d)(2) of the Securities Exchange Act of 1934) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of
securities of Bancshares representing thirty-five percent (35%) or more of the combined voting power of Bancshares’ then outstanding securities eligible to vote for the election of the board of directors of Bancshares (the “Bancshares
Voting Securities”); provided, however, that the event described in this paragraph (i) shall not be deemed to be a Change of Control by virtue of any of the following acquisitions: (A) by Bancshares, (B) by any employee benefit
plan (or related trust) sponsored or maintained by Bancshares, (C) by any underwriter temporarily holding securities pursuant to an offering of such securities, or (D) pursuant to a Non-Qualifying Transaction (as defined in paragraph
(ii) below); 
  

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 (ii) the consummation of a merger, consolidation, share exchange or similar form of corporate transaction involving Bancshares that
requires the approval of Bancshares’ shareholders, whether for such transaction or the issuance of securities in the transaction (a “Business Combination”), unless immediately following such Business Combination: (A) more than
seventy-five percent (75%) of the total voting power of (x) the corporation resulting from such Business Combination (the “Surviving Corporation”), or (y) if applicable, the ultimate parent corporation that directly or
indirectly has beneficial ownership of 100% of the voting securities eligible to elect directors of the Surviving Corporation (the “Parent Corporation”), is represented by Bancshares Voting Securities that were outstanding immediately
prior to such Business Combination (or if applicable, is represented by shares into which such Bancshares Voting Securities were converted pursuant to such Business Combination), and such voting power among the holders thereof is in substantially
the same proportion of the voting power of such Bancshares Voting Securities among the holders thereof immediately prior the Business Combination, (B) no person (other than any employee benefit plan (or related trust) sponsored or maintained by
the Surviving Corporation or the Parent Corporation), is or becomes the beneficial owner, directly or indirectly, of fifty-percent (50%) or more of the total voting power of the outstanding voting securities eligible to elect directors of the
Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) and (C) at least the majority of the board of directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following
the consummation of the Business Combination were Incumbent Directors (as herein defined) at the time the board of directors of Bancshares approved the execution of the initial agreement providing for such Business Combination (any Business
Combination which satisfies all of the criteria specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”); 
 (iii) the individuals who constitute the board of directors of Bancshares as of the date of this Agreement (the “Incumbent
Directors”) shall cease for any reason to constitute at least a majority of the members of the board of directors of Bancshares, provided that any person becoming a director subsequent to the date of this Agreement, whose election or nomination
was approved by a vote of at least a majority of the Incumbent Directors then comprising the board of directors of Bancshares shall be, for purposes of this Agreement, considered an Incumbent Director; provided, however, that no individual initially
elected or nominated as a director of Bancshares as a result of an actual or threatened contest with respect to directors or as a result of any other actual or threatened solicitation of proxies (or consents) by or on behalf of any person other than
the board of directors shall be deemed to be an Incumbent Director; 
 (iv) the consummation of a sale of all or substantially
all of the assets of Bancshares; or 
  

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 (v) the shareholders of Bancshares shall approve a plan of complete liquidation or dissolution of Bancshares. 
 (c) Change of Control Termination. A “Change of Control Termination” shall mean the termination of the Executive
Officer’s employment with the Sterling Entities (or any Parent Corporation or Surviving Corporation), within a two-year period commencing on the effective date of a Change of Control, due to (i) an Involuntary Termination or (ii) a
termination for Good Reason. 
 (d) Disability. “Disability” means the Executive Officer’s permanent and
total disability as defined in any long-term disability plan sponsored by Bancshares and applicable to the Executive Officer or in the absence of any such long-term disability plan, the term “Disability” shall mean the absence of the
Executive Officer from his or her duties with the Sterling Entities on a full-time basis for at least twelve (12) consecutive weeks as a result of the Executive Officer’s incapacity due to illness, accident, injury, physical or mental
incapacity or other disability. 
 (e) General Release of Liability. A “General Release of Liability” means
the legal document in which the Executive Officer, in exchange for benefits under this Agreement, releases the Sterling Entities, their affiliates, their directors, officers, employees and agents, their employee benefit plans and the fiduciaries and
agents of said plans from liability and damages in any way related to the Executive Officer’s employment with or separation from the Sterling Entities. 
 (f) Good Reason. “Good Reason” means, without the Executive Officer’s express written consent, the occurrence of any
one of the following events after a Change of Control: 
 (i) (A) any change in the duties or responsibilities of the
Executive Officer that is inconsistent in any material and adverse respect with the Executive Officer’s position, duties, responsibilities or status with the Sterling Entities immediately prior to such Change of Control or (B) a material
and adverse change in the Executive Officer’s titles or offices with the Sterling Entities (or any Parent Corporation or Surviving Corporation) and including, if applicable, membership or position on a board of directors with Bancshares or Bank
(or their respective successor), as in effect immediately prior to such Change of Control; 
 (ii) a reduction of ten percent
(10%) or more in the Executive Officer’s rate of annual base salary or annual target bonus opportunity (including any material and adverse change in the formula for such annual bonus target) as in effect immediately prior to such Change of
Control or as the same may be increased from time to time thereafter, or the failure of the applicable Sterling Entity (or any Parent Corporation or Surviving Corporation) to pay any such amounts when due; 
 (iii) any requirement that the Executive be based anywhere more than twenty-five (25) miles from the office where the Executive
Officer was located at the time of the Change of Control, if such relocation increases the Executive Officer’s commute by more than twenty-five (25) miles; 
  

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 (iv) the failure of the Sterling Entities (or any Parent Corporation or Surviving Corporation) to continue in effect benefits and a total
compensation package including, without limitation, employee benefit plans, compensation plans, welfare benefit plans, material fringe benefit plans, vacation policies and other similar benefit plans providing not less than ninety percent
(90%) of the Executive Officer’s total compensation package in the twelve (12) months immediately preceding the Change of Control; and 
 (v) the failure of Bancshares to obtain the assumption (and, if applicable, guarantee) agreement from any Surviving Corporation (and, if applicable, Parent Corporation) as contemplated in Section 13(b).

 (g) Involuntary Termination. An “Involuntary Termination” means an involuntary termination of employment
of the Executive Officer by the Sterling Entities (or any successor thereto including a Parent Corporation or Surviving Corporation); provided, however, that “Involuntary Termination” shall not include termination of employment by reason
of death, Disability or Cause. 
 2. Compensation and Stock Award. In consideration of the services to be provided by the Executive
and the covenants and agreements contained in Sections 3, 4 and 5 of this Agreement, Bancshares shall award the Executive Officer a $50,000 cash bonus on the first available regular payroll date of 2006 following employment and five thousand
(5,000) shares of Bancshares’ common stock with a equalization bonus to cover the taxes attributed to the stock grant. The 5,000 shares of common stock issued to the Executive Officer, as referenced in the preceding sentence, shall be
awarded under the terms of Bancshares’ 2003 Stock Incentive and Compensation Plan (or any successor plan) and shall not be subject to any forfeiture or vesting requirements. 
 3. Non-Competition. Executive Officer acknowledges that the Sterling Entities are providing Executive with access to Confidential Information as
defined below. Ancillary to Executive Officer’s agreement not to disclose Confidential Information, to protect the Confidential Information described below, and in consideration for Executive Officer receiving access to this Confidential
Information, being entitled to Severance Payments, having rights after a Change in Control, and other benefits provided in this Agreement, the Sterling Entities and Executive Officer agree to the following non-competition provisions. The Executive
Officer shall not, during the time that he/she is employed by any Sterling Entity and, in the event of a termination of employment for Cause, an Involuntary Termination, or a termination of employment by the Executive Officer, for a period of twelve
(12) months after any such termination: 
 (a) directly or indirectly, own, manage, operate, control, invest or acquire
an equity interest in any financial institution (or any affiliate thereof including, without limitation, any bank holding company or financial holding company) with $10 billion or 
  

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 less in assets located or conducting business in Harris County, Texas or any of its contiguous counties (the “Territory”) which competes with the business conducted by any Sterling Entity; 

(b) engage in or carry on, either directly or indirectly, whether for himself or as an employee, officer, director, agent, consultant,
proprietor, partner, stockholder, member, joint venturer, investor, or other paid participant, any business with, on behalf of or as a financial institution within the Territory which competes with the business conducted by any Sterling Entity;

 (c) request or induce any customer, depositor or borrower of any Sterling Entity or any other person which has a business
relationship with any Sterling Entity to curtail, cancel, or otherwise discontinue its business or relationship with any such Sterling Entity; or 
 (d) publicly denigrate or in any manner undertake to publicly discredit any of the Sterling Entities or any person or operation associated with any Sterling Entity. 
 Notwithstanding the foregoing, nothing contained in this Agreement shall prohibit the Executive Officer from owning any issue of stock or securities of any corporation
the securities of which are either traded on a national securities exchange or quoted on the automated quotation system of the National Association of Securities Dealers, Inc. and which is engaged in a business which is in competition with any
Sterling Entity so long as (i) the Executive Officer is not deemed to be an “affiliate” of such entity as such term is used in paragraphs (c) and (d) of Rule 145 under the Securities Act of 1933 and (ii) the Executive
Officer and members of his immediate family do not own or hold more than one percent (1%) of any voting securities of such entity. 
 Executive Officer warrants that Executive Officer is not a party to any other restrictive agreement limiting Executive Officer’s activities for the Sterling Entities. Executive Officer further warrants that at the time of the signing
of this Agreement, Executive Officer knows of no written or oral contract or of any other impediment that would inhibit or prohibit employment with the Sterling Entities and that Executive will not knowingly use any trade secret, confidential
information, or other intellectual property right of any other party in the performance of Executive Officer’s duties hereunder. Executive Officer shall hold the Sterling Entities harmless from any and all suits and claims arising out of any
breach of such restrictive agreement or contracts. 
 4. Non-Solicitation. The Executive Officer shall not, during the time that he is
employed by any Sterling Entity, and for a period of twelve (12) months thereafter, directly or indirectly solicit the employment of any officers or employees of the Sterling Entities, provided, however, that this Agreement shall not prohibit
(a) any advertisement or general solicitation that is not specifically targeted at such officers or employees, or (b) soliciting the employment of any such officer or employee who has been terminated by any Sterling Entity. 
 5. Confidentiality. The Executive Officer shall never disclose to any person, or use or otherwise exploit for his/her own benefit or for the
benefit of any person other than a Sterling Entity, any Confidential Information (as defined below). The Executive Officer shall have no 
  

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 obligation to keep confidential any Confidential Information if and to the extent disclosure thereof is specifically required by law, judicial or governmental order or other legal process; provided, however, that in
the event such disclosure is required, the Executive Officer shall, to the extent reasonably practicable, provide Bancshares with reasonably prompt notice of such requirement, so that Bancshares may seek an appropriate protective order or waive
compliance with this provision with respect to such disclosure. In the event that a protective or other remedy is not obtained, or Bancshares waives compliance with the provisions of this Section 5, the Executive Officer will furnish only that
portion of the Confidential Information which is legally required and exercise commercially reasonable efforts to obtain assurances that confidential treatment will be accorded to the Confidential Information. 
 For purposes of this Agreement, “Confidential Information” shall mean any confidential information with respect to the conduct or
details of the business of Sterling and any Sterling Entity including, without limitation, information relating to its commercial and retail banking services, mortgage banking services, commercial and consumer loans, merchant credit card services,
investments and capital market transactions and strategies, its methods of operation, customer and borrower lists, customer account information, deposits, outstanding loans, products (existing and proposed), prices, fees, costs, plans, technology,
inventions, trade secrets, know-how, software, marketing methods, policies, personnel, suppliers, competitors, markets or other specialized information or propriety matters of the Sterling Entities. The term “Confidential Information” does
not include, and there shall be no obligation hereunder with respect to, information that (a) is generally available to the public on the date of this Agreement or (b) becomes generally available to the public other than as a result of a
disclosure by the Executive Officer in violation of this Agreement. 
 6. Severance Payments. In the event of an Involuntary
Termination by the Sterling Entities prior to a Change of Control or a Change of Control Termination, then Bancshares, or its successor, shall pay and provide, or cause Bank or its successor to pay and provide, in exchange for the execution of a
General Release of Liability the following to the Executive Officer: 
 (a) two (2) years’ base pay payable in equal
installments each regular pay period during the two (2) years following the termination. For purposes of this calculation, base pay is the rate of annual salary being paid on the day immediately preceding the termination (or the Change of
Control in the event of a Change of Control Termination); 
 (b) an annual bonus, payable upon each anniversary date of the
effective date of termination, for two (2) years following the termination in an amount equal to the highest annual bonus amount paid to that particular Executive Officer during the three (3) years immediately preceding the termination (or
the Change of Control in the event of a Change of Control Termination); 
 (c) a car allowance, or use of company owned
vehicle, and the use of a cell phone provided by Bancshares or Bank for the two (2) years following the termination if any of these items were being provided to the Executive Officer immediately prior to the termination (or the Change of
Control in the event of a Change of Control Termination); 
  

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 (d) welfare benefits or, to the extent that such benefits cannot be lawfully provided or the Executive Officer otherwise does not qualify
for coverage, the cost of providing welfare benefits, such as medical, dental, vision, Employee Assistance Plan, and flexible spending accounts for the two (2) years following the termination that are equal to or greater that those provided to
the Executive Officer immediately prior to the termination (or the Change of Control in the event of a Change of Control Termination); 
 (e) life insurance benefits or, to the extent that such benefits cannot be lawfully provided or the Executive Officer otherwise does not qualify for coverage, the cost of providing life insurance benefits for the two
(2) years following the termination that are equal to or greater than those provided to the Executive Officer immediately prior to the termination (or the Change of Control in the event of a Change of Control Termination); 
 (f) club dues paid for the two (2) years following the termination that are equal to or greater that those provided to the Executive
Officer immediately prior to the termination (or the Change of Control in the event of a Change of Control Termination); 
 (g) continuation of banking services without service charge or at a reduced charge for the two (2) years following the termination if any of these banking products were being utilized by the Executive Officer immediately prior to the
termination (or the Change of Control in the event of a Change of Control Termination): 
 (h) payment of reasonable and
customary business-related expenses incurred through the last day of active employment if submitted in writing to Bancshares, Bank or their respective successor within ninety (90) days following the effective date of termination; 
 (i) payment of up to $20,000 in fees to one or more executive search firms for purposes of job placement efforts for the Executive Officer
for the two (2) years following the termination; 
 (j) to the extent permitted by applicable law, participation in
Bancshares’ Deferred Compensation Program (or similar program if termination follows a Change of Control) for the two (2) years following the termination; 
 (k) to the extent permitted by applicable law and the applicable terms of any plan, participation in Bancshares’ Employee Stock
Purchase Program (or similar program if termination follows a Change of Control) for the two (2) years following the termination; 
 (l) to the extent permitted by applicable law, participation in Bancshares’ Employee Savings Plan (or similar program if termination follows a Change of Control) for the two (2) years following the
termination; 
 (m) to the extent permitted by applicable law and the applicable terms of any plan, immediate and full vesting
upon termination in all Bancshares plans (or similar plans if termination follows a Change of Control) that require a vesting period including, without limitation, all unvested contributions to the Bancshares’ Employee Savings Plan; and

  

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 McMath 
 (n) to the extent permitted by applicable law and the terms of any applicable plan, all outstanding stock options shall fully vest and
become exercisable and all restrictions and forfeiture provisions applicable to any outstanding stock awards shall lapse and terminate. 
 If, following a Change of Control, the Executive Officer is retained by the Sterling Entities, Surviving Corporation or Parent Corporation, as the case may be, and a Change of Control Termination occurs within the two-year period following
the effective date of a Change of Control, then the Executive Officer shall receive the benefits as described above for a period of not less than one (1) year or the balance of such two (2) year period, whichever is greater, following the
Change of Control. If the Executive Officer accepts an employment offer from the Surviving Corporation or Parent Corporation, or otherwise remains employed by a Sterling Entity following a Change of Control, regardless of whether the circumstances
of such employment would justify a termination of employment by the Executive Officer for Good Reason, and remains so employed for a period of two (2) years or more following the effective date of the Change of Control, then the Executive
Officer shall no longer be entitled to terminate his/her employment for Good Reason and receive any severance benefits under this Section 6 on the basis of a termination for Good Reason. The Executive shall continue to be entitled to receive
severance benefits under this Agreement as a result of an Involuntary Termination. 
 Notwithstanding any other provision of this
Section 6 to the contrary, the aggregate present value (measured as of the Change of Control) of the benefits to which the Executive Officer becomes entitled under this Section 6 at the time of the Executive Officer’s termination of
employment will in no event exceed in amount the dollar amount (the “Benefit Limit”) which yields the Executive Officer the greatest after-tax amount of benefits under this Section 6 after taking into account any excise tax imposed
under Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), on the payments and benefits which are provided to the Executive Officer under this Section 6 or which constitute other parachute payments. For
purposes of applying the Benefit Limit to the Executive’s benefits under this Section 6, the value of the Executive’s non-competition covenant under Section 3 shall be determined through independent appraisal by a
nationally-recognized independent accounting firm acceptable to both the Executive Officer and Bancshares and obtained solely at Bancshares’ cost, and a portion of the Executive Officer’s Section 6 benefits shall, to the extent of
such appraised value, be specifically allocated as reasonable compensation for the Executive Officer’s non-competition covenant. For purposes of this paragraph, “Present Value” means the value, determined as of the date of the
Change of Control, of any payment in the nature of compensation to which the Executive Officer becomes entitled in connection with a Change of Control or the Executive Officer’s subsequent termination including the benefits to which the
Executive Officer becomes entitled under this Section 6, provided, however, that such present value of each such payment will be determined in accordance with the provisions of Section 280G of the Code, utilizing a discount rate equal to
one hundred twenty percent (120%) of the applicable federal rate in effect at the time of such determination, compounded semi-annually to the effective date of the change of control. In addition, for purposes of this paragraph of this
Section 6, “Other Parachute Payment” means any payment in the nature of compensation (other than the benefits to which the 
  

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 McMath 
 Executive Officer becomes entitled under this Section 6) which are made to the Executive Officer in connection with the change of control and which qualify as parachute payments within the meaning of
Section 280G(b)(2) and the Treasury Regulations issued thereunder. 
 7. Other Agreements. 
 (a) Subject to the immediately following sentence, the parties to this Agreement further agree that to the extent the restrictive
covenants and agreements contained in Sections 3, 4 or 5 are held by any court or other constituted legal authority to be void or otherwise unenforceable in any particular area or jurisdiction, then the parties shall consider this Agreement to
be amended and modified so as to eliminate therefrom that particular area or jurisdiction as to which such restrictive covenant is so held to be void or otherwise unenforceable, and, as to all other areas and jurisdictions covered by this Agreement,
the terms and provisions hereof shall remain in full force and effect as originally written. The parties to this Agreement further agree that to the extent any of the foregoing restrictive covenants or agreements should be held by any court or other
constituted legal authority to be effective in any particular area or jurisdiction only if said covenant is modified to limit its duration or scope, then the parties shall consider such covenant to be amended and modified with respect to that
particular area or jurisdiction so as to comply with the order of any such court or other constituted legal authority, and, as to all other jurisdictions or political subdivisions thereof, such covenant shall remain in full force and effect as
originally written. 
 (b) The Executive Officer acknowledges that each of the restrictions set forth in Sections 3, 4
and 5 is reasonable as to duration and geographic scope. 
 (c) The Executive Officer understands that the Sterling Entities
will not have an adequate remedy at law for the breach or threatened breach by the Executive Officer of any one or more of the covenants set forth in this Agreement and agrees that in the event of any such breach or threatened breach, Bancshares
may, in addition to the other remedies which may be available to it, file a suit in equity to enjoin the Executive Officer from the breach or threatened breach of such covenants. 
 8. No Mitigation. In no event shall the Executive Officer be obligated to seek other employment or take other action by way of mitigation of the
amounts payable to the Executive Officer under any of the provisions of this Agreement and such amounts shall not be reduced whether or not Executive Officer obtains other employment. 
 9. Notice. Any notice, or other communication provided or permitted in this Agreement must be given in writing and may be served by depositing
same in the United States mail in certified or registered form, postage prepaid, addressed to the party or parties to be notified with return receipt requested, or by delivering the notice in person to such party or parties or by a nationally
recognized overnight service. Unless actual receipt is required by any provision of this Agreement, notice deposited in the United States mail in the manner herein prescribed shall be effective on dispatch. For purposes of notice, the address of the
Executive Officer shall be the address on file with Bancshares as the Executive Officer’s primary residence. 
  

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 The address of Bancshares and any Sterling Entity shall be: 
 Sterling Bancshares, Inc. 
 2550 North Loop West 
 Suite 600 

Houston, Texas 77092 
 Attn:
President & Chief Executive Officer 
 Bancshares shall have the right from time to time and at any time to change its address and
shall have the right to specify as its address any other address by giving at least ten (10) days’ written notice to the Executive Officer. The Executive Officer shall have the right from time to time and at any time to change his address
and shall have the right to specify as his address any other address by giving at least ten (10) days’ written notice to Bancshares. 
 10. Controlling Law. This Agreement shall be governed by, construed and enforced in accordance with the laws of the State of Texas (without giving effect to conflicts of laws principles thereof). 
 11. Entire Agreement. Except as provided in Bancshares’ Code of Business Conduct and Ethics, Code of Ethics for Senior Officers, the written
benefit plans and programs of the Sterling Entities or any signed agreement hereafter executed between any Sterling Entity and the Executive Officer, this Agreement contains the entire agreement of the parties with respect to the subject matter
hereof. The Agreement may not be changed orally or by action or inaction, but only by an agreement in writing signed by the party against whom enforcement of any waiver, change, modification, extension or discharge is sought. The headings of this
Agreement are intended solely for the convenience of reference and should be given no effect in the construction or interpretation of this Agreement. 
 12. Severability. If any provision of the Agreement is rendered or declared illegal or unenforceable by reason of any existing or subsequently enacted legislation or by decree of a court of last resort, the
parties shall promptly meet and negotiate substitute provisions for those rendered or declared illegal or unenforceable, but all remaining provisions of this Agreement shall remain in full force and effect. 
 13. Benefit and Burden; Assignment. 
 (a) This Agreement shall not be terminated by any Change of Control. In the event of any Business Combination, the provisions of this Agreement shall be binding upon the Surviving Corporation, and such Surviving
Corporation shall be treated as Bancshares hereunder. 
 (b) Bancshares agrees that in connection with any Business
Combination, it will cause any successor entity to Bancshares and/or Bank to unconditionally assume, by written instrument delivered to the Executive Officer (or his/her beneficiary or estate), all of the obligations of Bancshares hereunder. Failure
of Bancshares to obtain such assumption prior to the effective date of any such Business Combination that constitutes a Change of Control shall be a breach of this Agreement and shall constitute Good Reason hereunder entitling Executive Officer to
compensation and other benefits from 
  

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 Bancshares in the same amount and on the same terms as Executive Officer would be entitled hereunder upon a Change of Control Termination. For purposes of implementing the foregoing, the date upon which any such
Business Combination becomes effective shall be deemed to be the date Good Reason occurs and shall be the effective date of termination hereunder if requested by the Executive Officer. 
 (c) This Agreement shall inure to the benefit of and be enforceable by the Executive Officer’s personal and legal representatives,
executors, administrators, successors, heirs, distributees, devisees, and legatees. If the Executive Officer shall die while any amounts would be payable to the Executive Officer hereunder had the Executive Officer continued to live, all such
amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to such person or persons appointed in writing by Executive to receive such amounts or, if no person is so appointed, to the Executive
Officer’s estate. 
 14. Voluntary Agreement. The Executive Officer acknowledges that he has been given an opportunity to review
the terms of this Agreement, that he has been given an opportunity to consult with counsel, or determined that such consultation is not required, and that he has executed this Agreement voluntarily. 
 15. Execution. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which shall
constitute one instrument. 
 EXECUTED to be effective as of the date first above written. 
  

			
	STERLING BANCSHARES, INC.
		
	By:	 	 /s/ J. Downey Bridgwater

		 	J. Downey Bridgwater
		 	President & Chief Executive Officer
	
	EXECUTIVE OFFICER
	
	 /s/ C. Wallis McMath, Jr.

	C. Wallis McMath, Jr.

  

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