Document:

Form of Severance and Noncompetition Agreement

 Exhibit 10.2 
  
 FORM OF 
 SEVERANCE AND NON-COMPETITION AGREEMENT 
  
 Sterling Bancshares, Inc. and Sterling Bank have entered into the following Severance and Non-Competition Agreement with the officers identified on the Schedule attached hereto. The individual Severance and Non-Competition Agreements are
identical to the Form of Severance and Non-Competition Agreement except as otherwise disclosed on the attached Schedule. 
  
 THIS SEVERANCE and NON-COMPETITION AGREEMENT (the “Agreement”) is entered into effective as of this
             day of             , 2004 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              (the “Executive Officer”).

  
 WHEREAS, the Executive Officer has heretofore been
employed by Bancshares and/or Bank in a position in which he/she has had access to, and gained 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 continues to 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 within twelve (12) months 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/her 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; 
  
 (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 “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 
  

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 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); 
  
 (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 indrectly 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
indrectly, 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 
  

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 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 
  
 (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, 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 
  

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 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; 
  
 (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. Stock Award. In consideration of the services previously 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              (            ) shares of Bancshares’
common stock, $1.00 par value, upon execution of this Agreement. The shares of common stock issued to the Executive Officer hereunder 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. 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 or a termination of employment by
the Executive Officer without Good Reason, 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 less in assets located or conducting business in             
County, Texas or any of its contiguous counties (the “Territory”) which competes with the business conducted by any Sterling Entity; 
  

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 (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. 
  
 4. Non-Solicitation. The Executive Officer shall not, during the time that he/she 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 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 
  

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 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); 
  
 (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); 
  

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 (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 
  
 (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 
  

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 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 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 
  

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 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. 
  
 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. 
  

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 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. 
  
 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 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. 
  

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 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. 
  

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 EXECUTED to be effective as of the date first above written. 
  

	
	STERLING BANCSHARES, INC.
	
	 By:

	

	 J. Downey Bridgwater

	 President & Chief Executive Officer

	
	EXECUTIVE OFFICER
	
	

	 [Executive Name]

  
  

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 SCHEDULE TO EXHIBIT 10.2 
 FORM OF SEVERANCE AND NON-COMPETITION AGREEMENT 
  
 The Severance and Non-Competition Agreements among Sterling Bancshares, Inc., Sterling Bank and the officers named below are identical in all respects
except for the effective date, the number of shares of common stock awarded to the officer, and the county designated in Section 3(a) of the Severance and Non-Competition Agreement, each as set forth below: 
  

							
	 Name

	  	 Effective Date

	  	 Stock Award

	  	 County

	 Daryl D. Bohls
	  	June 1, 2004	  	1,350 shares	  	Harris County, Texas
	 Danny L. Buck
	  	May 1, 2004	  	3,000 shares	  	Bexar County, Texas
	 Wanda S. Dalton
	  	June 1, 2004	  	3,000 shares	  	Harris County, Texas
	 Clinton Dunn
	  	June 1, 2004	  	3,000 shares	  	Harris County, Texas
	 James W. Goolsby, Jr.
	  	June 1, 2004	  	3,000 shares	  	Harris County, Texas
	 Travis Jaggers
	  	June 1, 2004	  	3,000 shares	  	Harris County, Texas
	 Graham B. Painter
	  	June 1, 2004	  	1,000 shares	  	Harris County, Texas
	 Stephen C. Raffaele
	  	June 1, 2004	  	3,000 shares	  	Harris County, Texas
	 Mike Skowronek
	  	June 1, 2004	  	3,000 shares	  	Harris County, TexasExtension Agreement between the Registrant and GMAC dated as of August 4, 2004.

 Exhibit 10.50 
  
 EXTENSION AGREEMENT 
  
 THIS EXTENSION AGREEMENT (this “Agreement”) is entered into this as of this 4th day of August, 2004 by and among ACCLAIM ENTERTAINMENT, INC.
(“AEI”), ACCLAIM DISTRIBUTION INC. (“ADI”), LJN TOYS, LTD. (“LJN”), ACCLAIM ENTERTAINMENT CANADA, LTD. (“Canada”) and ARENA ENTERTAINMENT INC. (“Arena”; together with AEI, ADI, LJN and Canada,
individually, a “Borrower” and collectively, the “Borrowers”), OYSTER BAY WAREHOUSE CORP. (“Warehouse”), ACCLAIM CORPORATE CENTER 1, INC. (“Corporate”), IGUANA ENTERTAINMENT, INC. (“Iguana”), ACCLAIM
ENTERTAINMENT, LTD. (“Acclaim Limited”), ACCLAIM JAPAN, LTD. (“Acclaim Japan”), ACCLAIM ENTERTAINMENT, G.m.b.H. (“Acclaim Germany”), ACCLAIM ENTERTAINMENT, S.A. (“Acclaim France”) and ANNODEUS INC.
(“Annodeus”; and together with Warehouse, Corporate, Iguana, Acclaim Limited, Acclaim Japan, Acclaim Germany, and Acclaim France, each individually, a “Corporate Guarantor” and collectively, the “Corporate Guarantors”),
and GMAC COMMERCIAL FINANCE LLC, as successor by merger to GMAC COMMERCIAL CREDIT LLC, formerly known as BNY Factoring LLC, and successor by merger to BNY Financial Corporation (“Lender”). 
  
 BACKGROUND 
  
 Reference is made to the Revolving Credit and Security Agreement, dated as of
January 1, 1993, by and among Borrowers and Lender, as amended and restated on February 28, 1995 (as so amended and as the same may now exist or may hereafter be amended, restated, renewed, replaced, extended, substituted, supplemented or otherwise
modified, the “Credit Agreement”); the Restated and Amended Factoring Agreement bearing the effective date as of February 1, 1995 (the “AEI Factoring Agreement”) by and between AEI and Lender; the Restated and Amended Factoring
Agreement bearing the effective date as of January 1, 1995 (the “ADI Factoring Agreement”) by and between ADI and Lender; the Restated and Amended Factoring Agreement bearing the effective date of January 1, 1995 (the “LJN Factoring
Agreement”) by and between LJN and Lender; the Restated and Amended Factoring Agreement bearing the effective date of January 1, 1995 (the “Canada Factoring Agreement”) by and between Canada and Lender; and the Restated and Amended
Factoring Agreement bearing the effective date as of January 1, 1995 by and between Arena and Lender (the “Arena Factoring Agreement”; and together with the AEI Factoring Agreement, the ADI Factoring Agreement, the LJN Factoring Agreement
and the Canada Factoring Agreement, as the same may now exist or may hereafter be amended, restated, renewed, replaced, extended, substituted, supplemented or otherwise modified, collectively, the “Factoring Agreements”); and to all of the
notes, instruments, guarantees, agreements and other documents executed and/or delivered in connection with the Credit Agreement and the Factoring Agreements (all of the foregoing, as the same now exist, or may hereafter be 

 amended, restated, renewed, extended, supplemented, substituted, replaced or otherwise modified, collectively, the
“Other Documents”; and together with the Credit Agreement and the Factoring Agreements, collectively, the “Loan Documents”). 
  
 Reference is further made to that certain (a) Waiver and Amendment Agreement dated May 4, 2004 (“Waiver and Amendment”) among the Borrowers, the
Corporate Guarantors and Lender, pursuant to which, among other things, the Term under this Loan Document was amended to terminate on June 20, 2004 and the Borrowers agreed to pay and satisfy in full all of the Obligations on or before June 20, 2004
(the “Termination Date”); and (b) Extension Agreement dated as of June 18, 2004 among the Borrowers, the Corporate Guarantors and Lender (the “July 18, 2004 Extension Agreement”), pursuant to which, among other things, the
Termination Date was extended to August 4, 2004, subject to the terms and conditions therein; 
  
 Borrowers have advised Lender that Borrowers are in active negotiations with certain financial institutions to obtain the financing to pay and satisfy in full all of the Obligations. Borrowers have further advised
Lender that such negotiations and the documentation of the replacement credit facilities will not be concluded prior to the Termination Date. Borrowers have requested that Lender extend the Termination Date to August 20, 2004, and as a one-time
accommodation to Borrowers, Lender has agreed to do so, subject to the terms and conditions of this Agreement. 
  
 NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereby agree as follows: 
  
 1.
Extension of Termination Date. At the request of Borrowers, as a one-time accommodation and subject to the terms and conditions contained herein, and notwithstanding anything to the contrary set forth in the Loan Documents, Lender agrees that
the Termination Date shall be extended, and is hereby amended and restated to mean, August 20, 2004. Notwithstanding anything to the contrary set forth in the Credit Agreement or in the other Loan Documents, Borrowers shall indefeasibly pay and
satisfy in full all Obligations of Borrowers to Lender under the Credit Agreement and the other Loan Documents on or before August 20, 2004. 
  
 2. Conditions to Extension of Termination Date. The extension of the Termination Date set forth in the immediately preceding paragraph is
conditioned on compliance by Borrowers and Guarantors with the following terms and conditions: 
  
 (a) Borrowers delivered to Lender a draft Term Sheet - Acclaim Entertainment on August 2, 2004, contemplating a $65 million Senior Secured Credit Facility
to be provided to the Borrowers and Guarantors (the “Replacement Facility”) by a financial institution (the “Replacement Lender”). Borrowers shall provide Lender with frequent updates, but no less frequently than the Monday and
Friday of each week, as to the status of the Borrowers’ progress in the documentation, negotiation and closing of the Replacement Facility. Borrowers shall immediately provide Lender with notice of any termination or suspension of active
negotiations with respect to the Replacement Facility 

 or if the Replacement Lender advises Borrowers that the Replacement Lender has elected not to continue negotiation of the
Replacement Facility. Borrowers’ acknowledge, confirm and agree that (i) any suspension or termination of active negotiations with respect to the Replacement Facility or (ii) if the Replacement Lender advises Borrowers that Replacement Lender
elects not to continue negotiation of the Replacement Facility, shall constitute a default hereunder and an Event of Default under the Loan Documents. 
  
 (b) The Borrowers have prepared and submitted to Lender a “Domestic Forecast”, annexed hereto as Exhibit A, reflecting the Borrowers’
projected weekly cash flow through and including the week ending August 20, 2004. Borrowers will supplement the Domestic Forecast through the end of the Term upon Lender’s request and such supplement shall be in form and content satisfactory to
Lender. Borrowers hereby acknowledge, confirm and agree that the Borrowers will, on Monday of each week for the immediately prior week, submit to Lender Borrowers’ actual cash flow results for such prior week in the same format as the
“Domestic Forecast”. If, for any such week, the actual weekly cash flow results for the line items identified as Ending Account Balance, GMAC Availability, Gross Total Collateral, Total Investment, Ending Balances - Net A/R Outstanding,
Net Eligible A/R Outstanding, GMAC Drawdowns, Total Disbursements and Remaining Operating Cash, negatively deviate from the projections for such week set forth on Exhibit A by more than ten percent (10%), then such deviation shall constitute an
Event of Default under the Loan Documents. 
  
 3.
Covenants. Lender, Borrowers and Corporate Guarantors acknowledge, confirm and agree that, notwithstanding anything to the contrary set forth in the Loan Documents, the Term shall not be extended or renewed beyond August 20, 2004. 

 
 4. Extension Fee. Borrowers shall pay an additional extension fee
(the “Additional Extension Fee”) of $50,000 upon execution of this Agreement, plus an additional $50,000 if the Obligations are not paid and satisfied in full on or before August 20, 2004. The Additional Extension Fee is in addition to the
Extension Fee charged to Borrowers’ account in accordance with the June 18, 2004 Extension Agreement shall constitute an Obligation and Lender is hereby authorized to charge the Additional Extension Fee against the Obligations. The Extension
Fee shall be fully earned as of the date hereof and shall not be subject to refund, rebate or proration for any reason whatsoever. 
  
 5. Borrowers’ Acknowledgement and Reaffirmation. 
  
 (a) Each of the Borrowers hereby acknowledges, confirms and agrees that as of August 4, 2004, the Borrowers, jointly and severally, owe Lender Obligations
in the aggregate principal amount of not less than $19,518,942.68, plus accrued and unpaid interest, and plus all costs, fees, commissions, expenses and other sums and charges due and owing to the Lender under the Credit Agreement and the other Loan
Documents, including, without limitation, all costs and expenses (including attorneys’ fees and expenses) incurred by the Lender (all of the foregoing is collectively referred to as the “Existing Debt”). Each of the Borrowers hereby
acknowledges, confirms and agrees that as of the date hereof, the Existing Debt is due and owing by the Borrowers jointly and severally to the Lender without offset, defense or counterclaim of any kind, nature or description whatsoever. 

 (b) Borrowers hereby ratify and confirm the Credit Agreement, the Factoring Agreements and the Other
Documents as being valid and binding obligations of the Borrowers, enforceable against Borrowers in accordance with all of their respective terms as modified hereby. Borrowers hereby confirm that there are no defenses to the performance of any of
their obligations under the Credit Agreement, the Factoring Agreements or any Other Document. Borrowers hereby ratify and confirm Borrowers’ grant to Lender of the first priority perfected liens upon and security interests in their properties
and assets heretofore mortgaged, pledged, granted or assigned to Lender under the Credit Agreement, the Factoring Agreements and the Other Documents, and acknowledge and confirm that such first priority perfected liens and security interests secure
and shall continue to secure the Obligations of Borrowers to Lender, subject only to such prior security interests as are expressly permitted under the Loan Documents. 
  
 6. Guarantor’s Acknowledgement and Reaffirmation. By their execution of this Agreement, Corporate Guarantors
hereby ratify and confirm each of the Other Documents to which each Corporate Guarantor is a party as being its valid and binding obligations, enforceable against such Corporate Guarantor in accordance with all of their respective terms as modified
hereby. Each Corporate Guarantor hereby confirms that there are no defenses to the performance of any of its obligations under any Other Document and expressly acknowledges to Lender that it has no currently existing defense, offset, or counterclaim
with respect to any of the Existing Debt. Each Corporate Guarantor hereby ratifies and confirms its grant to Lender of the first priority perfected liens upon and security interests in its properties and assets heretofore mortgaged, pledged, granted
or assigned to Lender under the Other Documents, and acknowledges and confirms that such first priority perfected liens and security interests secure and shall continue to secure the obligations of such Corporate Guarantor to Lender, subject only to
such prior security interests as are expressly permitted under the Other Documents. 
  
 7. Release. In consideration of the agreements made by Lender in this Agreement and the performance thereof and other good and valuable consideration, each of the Borrowers and Corporate Guarantors
(collectively, the “Releasors”) forever releases and discharges Lender, its affiliates, members, officers, directors, consultants, agents, attorneys, representatives and employees, and their respective successors and assigns (collectively,
the “Released Parties”) from any and all actions, causes of action, suits, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, controversies, variances, trespasses, damages, judgments, extent, executions, claims
and demands whatsoever, in law, admiralty or equity, without defense, offset or counterclaim, which any Releasor, directly or indirectly, ever had or now or can, shall or may, have against any of the Released Parties for, upon, or by reason of any
matter, cause or thing arising under or relating to the Credit Agreement, the Factoring Agreements or any Other Document and the transactions contemplated therein. In addition to the foregoing, each Releasor agrees to forever refrain and forbear
from commencing, assisting, instituting, prosecuting or encouraging others to institute or prosecute any litigation, action, 

 arbitration, administrative or other proceeding of any kind against any of the Released Parties directly or indirectly
arising out of, resulting from or relating in any way to the subject matter of or the fact and course of conduct underlying the releases granted herein. 
  
 8. Miscellaneous. 
  
 (a) This Agreement shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns. 

 
 (b) This Agreement may be executed in any number of counterparts, all of
which counterparts when taken together shall constitute one and the same agreement. 
  
 (c) Borrowers absolutely and unconditionally agree to pay to Lender, on demand by Lender at any time and as often as the occasion therefor may require, (i) all fees and disbursements of any counsel to Lender in
connection with the preparation, negotiation, execution or delivery of this Agreement and any other agreements, instruments, or documents prepared or delivered in connection with the transactions contemplated hereby, (ii) all fees and expenses which
shall at any time be incurred or sustained by Lender or any of its directors, officers, employees or agents as a consequence of or in any way in connection with the preparation, negotiation, execution or delivery of this Agreement and any agreement
prepared, negotiated, executed or delivered in connection with the transactions contemplated hereunder or thereunder. 
  
 (d) This Agreement and the rights and obligations hereunder of each of the parties hereto shall be governed by and interpreted and determined in
accordance with the laws of the State of New York, without giving effect to conflicts of laws principles. 
  
 (e) Except as specifically set forth herein, no other changes or modifications to the Loan Documents are intended or implied and, in all other respects,
the Loan Documents shall continue to remain in full force and effect in accordance with their respective terms as of the date hereof. Except as specifically set forth herein, nothing contained herein shall evidence a waiver or amendment by the
Lender of any other provision of the Loan Documents nor shall anything contained herein be construed as a consent by the Lender to any transaction other than those specifically consented to herein. 
  
 (f) TO THE EXTENT LEGALLY PERMISSIBLE, BORROWERS, CORPORATE GUARANTORS AND
LENDER WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY LITIGATION RELATING TO TRANSACTIONS UNDER THIS LETTER AGREEMENT AND THE LOAN DOCUMENTS, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. 
  

	
	ACCLAIM ENTERTAINMENT, INC.
	ACCLAIM DISTRIBUTION INC.
	LJN TOYS, LTD.

			
	ARENA ENTERTAINMENT INC.
	ACCLAIM ENTERTAINMENT
	 CANADA, LTD.
  

	 By:
	 	 /s/ Gerard F. Agoglia

	 Name:
	 	 Gerard F. Agoglia

	 Title:
	 	 Executive Vice President and Chief
 Financial Officer

	
	 GMAC COMMERCIAL FINANCE LLC
  

	 By:
	 	 /s/ Patrick Duffy

	 Name:
	 	 Patrick Duffy

	 Title:
	 	 Senior Vice President

  
 Consented and Agreed to:

  
 OYSTER BAY WAREHOUSE CORP. 
 ACCLAIM CORPORATE CENTER 1, INC. 
 IGUANA ENTERTAINMENT, INC.

 ACCLAIM ENTERTAINMENT, LTD. 
 ACCLAIM JAPAN, LTD.

 ACCLAIM ENTERTAINMENT, G.m.b.H. 
 ACCLAIM
ENTERTAINMENT, S.A. 
 ANNODEUS, INC. 
  

			
	 By:
	 	 /s/ Gerard F. Agoglia

	 Name:
	 	 Gerard F. Agoglia

	 Title:
	 	 Executive Vice President and Chief Financial
Officer of each

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