Document:

Amended and Restated Sprint Nextel Corporation Change in Control Severance Plan

 Exhibit 10.1 
 SPRINT NEXTEL CORPORATION 
 CHANGE IN CONTROL SEVERANCE PLAN 
 (Effective January 1, 2007 and 
 Amended and Restated Effective January 1, 2008) 

 SPRINT NEXTEL CORPORATION 
 CHANGE IN CONTROL SEVERANCE PLAN 
 (Amended and Restated Effective January 1, 2008)

 TABLE OF CONTENTS 
  

					
	 Article
	  	 	  	Page
	ARTICLE ONE	  	INTRODUCTION	  	1
			
	ARTICLE TWO	  	DEFINITIONS	  	3
			
	ARTICLE THREE	  	ELIGIBILITY AND PARTICIPATION	  	11
			
	ARTICLE FOUR	  	SEVERANCE BENEFITS	  	12
			
	ARTICLE FIVE	  	AMENDMENT AND TERMINATION	  	18
			
	ARTICLE SIX	  	MISCELLANEOUS	  	19
			
	APPENDIX I	  	PLAN PARTICIPANTS	  	26
			
	APPENDIX II	  	APPLICABLE BENEFITS AND PERIODS	  	27
			
	APPENDIX III	  	PARTICIPATING EMPLOYERS	  	28

  

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 ARTICLE ONE 
 INTRODUCTION 
  

	1.01	Purpose of the Plan 

 The Sprint Nextel Corporation
Change in Control Severance Plan (the “Plan”) provides primarily for severance compensation benefits for certain key employees following termination of employment in connection with and/or following a Change in Control. Given the level of
acquisition and change in control activity in today’s business environment, the Board recognizes and understands that many key employees face uncertainty with respect to their job security. In addition, the Board believes that the concerns of
key employees regarding a possible Change in Control transaction may cause them to consider career changes in an effort to assure financial security for themselves and their families. Consequently, the Corporation desires to increase the willingness
of its key employees to remain with the Corporation (or its Subsidiaries) notwithstanding the employment uncertainties related to a possible Change in Control by providing certain economic benefits in the event of a Change in Control, thus allowing
such key employees to make career decisions without undue time pressure and financial uncertainty. 
 The Plan is intended to provide
severance compensation and benefits pursuant to the Plan if a Change in Control of the Corporation has occurred and the Participant’s employment is either (a) terminated by a Company without Cause or (b) voluntarily terminated by the
Participant for Good Reason in accordance with the terms of this Plan. The purpose and intent of the Plan is to help the Corporation attract and retain key employees and reduce distractions resulting from a potential Change in Control. The Board has
considered the effect that a Change in Control of the Corporation may have on key employees of the Corporation and its Subsidiaries, and has found that such a Plan is in the best interest of the Corporation and its stockholders. 
 Capitalized terms used throughout the Plan have the meanings set forth in Article Two, except as otherwise defined in the Plan or where the context
clearly requires otherwise. 
  

	1.02	Plan Status 

 The Plan is intended to be a plan
providing Severance Benefits following a Change in Control. The Plan is intended to be a top hat plan for a select group of management or highly compensated executives, subject only to the administration and enforcement provisions of ERISA.

  

	1.03	Entire Plan 

 This document, including any Appendix
hereto, and any documents incorporated herein by reference set forth the provisions of the Plan effective as of the date of this current amendment and restatement of the Plan. 
  

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	1.04	Administration 

 The Human Capital and Compensation
Committee of the Board (the “Compensation Committee”) shall administer the Plan; provided, however, that none of the members of the Compensation Committee will be a Participant. The powers and duties of the Compensation
Committee in administering the Plan are set forth in Section 6.02. 
  

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 ARTICLE TWO 
 DEFINITIONS 
  

	2.01	Defined Terms. For purposes of this Plan the following terms shall have the following meanings: 

  

	 	(a)	“Accounting Firm” means a nationally recognized accounting firm, or actuarial, benefits or compensation consulting firm (with experience in performing the
calculations regarding the applicability Section 280G of the Code and of the tax imposed by Section 4999 of the Code) selected by the Corporation. 

  

	 	(b)	“Applicable Multiple” means the number specified under the heading “Applicable Multiple” on Appendix II for the Participant’s designated Severance
Benefit Classification. 

  

	 	(c)	“Applicable Period” means the period specified under the heading “Applicable Period” on Appendix II for the Participant’s designated Severance
Benefits Classification. 

  

	 	(d)	“Base Salary” means the annual base salary of any Participant, exclusive of any bonus, special pay or other benefits a Participant may receive, and for purposes of
Article Four means such annual base salary in effect (i) on the date immediately preceding the date of the relevant Change in Control or (ii) on the date of the Participant’s termination of employment with a Company, whichever is
higher. 

  

	 	(e)	“Board” means the Board of Directors of the Corporation. 

  

	 	(f)	“Business Transaction” has the meaning set forth in Section 2.01(h)(ii). 

  

	 	(g)	“Cause” means a termination of a Participant’s employment due to the Participant’s: 

  

	 	(i)	conviction of, or entering into a plea of either guilty or nolo contendere to, any felony, including, but not limited to, a felony involving moral turpitude, embezzlement,
theft or similar act that occurred during or in the course of the Participant’s employment with a Company; 

  

	 	(ii)	willful and continued failure to substantially perform his duties for a Company, after receiving written notice from or on behalf of such Company and having had a thirty
(30) day opportunity to cure the deficiency; 

  

	 	(iii)	willful misconduct or gross negligence that results in material harm to a Company; or 

  

	 	(iv)	willful violation of the Corporation’s policies that results in material harm to a Company. 

  

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 For purposes of this Plan, an act, or failure to act, shall not be deemed to be “willful”
unless it is done, or omitted to be done, by the Participant in bad faith or without a reasonable belief that the action or omission was in the best interests of a Company. 
  

	 	(h)	“Change in Control” means the occurrence of any of the following events: 

  

	 	(i)	any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) becomes the beneficial owner (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) of thirty percent (30%) or more of the combined voting power of the then-outstanding Voting Stock of the Corporation; except, that: 

  

	 	(A)	for purposes of this Section 2.01(h)(i), the following acquisitions shall not constitute a Change in Control: (1) any acquisition of Voting Stock of the Corporation
directly from the Corporation that is approved by a majority of the Incumbent Directors, (2) any acquisition of Voting Stock of the Corporation by the Corporation or any Subsidiary, (3) any acquisition of Voting Stock of the Corporation by
the trustee or other fiduciary holding securities under any employee benefit plan (or related trust) sponsored or maintained by the Corporation or any Subsidiary, and (4) any acquisition of Voting Stock of the Corporation by any Person pursuant
to a Business Transaction that complies with clauses (A), (B) and (C) of Section 2.01(h)(ii); 

  

	 	(B)	if any Person becomes the beneficial owner of thirty percent (30%) or more of combined voting power of the then-outstanding Voting Stock of the Corporation as a result of a
transaction or series of transactions described in clause (1) of Section 2.01(h)(i)(A) above and such Person thereafter becomes the beneficial owner of any additional shares of Voting Stock of the Corporation representing one percent
(1%) or more of the then-outstanding Voting Stock of the Corporation, other than as a result of (x) a transaction described in clause (1) of Section 2.01(h)(i)(A) above, or (y) a stock dividend, stock split or similar
transaction effected by the Corporation in which all holders of Voting Stock are treated equally then such subsequent acquisition shall be treated as a Change in Control; 

  

	 	(C)	 a Change in Control will not be deemed to have occurred if a Person becomes the beneficial owner of thirty percent (30%) or more of the Voting Stock of the
Corporation as a result of a reduction in the number of shares of Voting Stock of the Corporation outstanding pursuant to a transaction or series of transactions that is approved by a majority of the Incumbent Directors unless and until such Person
thereafter becomes the beneficial owner of additional shares of Voting Stock of the Corporation representing one percent (1%) or more of the then-outstanding Voting Stock of the Corporation, other than as a result 

  

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of a stock dividend, stock split or similar transaction effected by the Corporation in which all holders of Voting Stock are treated equally; and

  

	 	(D)	if at least a majority of the Incumbent Directors determine in good faith that a Person has acquired beneficial ownership of thirty percent (30%) or more of the Voting Stock of
the Corporation inadvertently, and such Person divests as promptly as practicable, but no later than the date, if any, set by the Incumbent Directors a sufficient number of shares so that such Person beneficially owns less than thirty percent
(30%) of the Voting Stock of the Corporation, then no Change in Control shall have occurred as a result of such Person’s acquisition; or 

  

	 	(ii)	the consummation of a reorganization, merger or consolidation of the Corporation with, or the acquisition of the stock or assets of the Corporation by, another Person, or similar
transaction (each, a “Business Transaction”), unless, in each case, immediately following such Business Transaction (A) the Voting Stock of the Corporation outstanding immediately prior to such Business Transaction continues to
represent, directly or indirectly, (either by remaining outstanding or by being converted into Voting Stock of the surviving entity or any parent thereof), more than fifty percent (50%) of the combined voting power of the then outstanding
shares of Voting Stock or comparable equity interests of the entity resulting from such Business Transaction (including, without limitation, an entity which as a result of such transaction owns the Corporation or all or substantially all of the
Corporation’s assets either directly or through one or more subsidiaries), (B) no Person (other than the Corporation, such entity resulting from such Business Transaction, or any employee benefit plan (or related trust) sponsored or
maintained by the Corporation or any Subsidiary or such entity resulting from such Business Transaction) beneficially owns, directly or indirectly, thirty percent (30%) or more of the combined voting power of the then outstanding shares of
Voting Stock of the entity resulting from such Business Transaction, and (C) at least a majority of the members of the board of directors of the entity resulting from such Business Transaction were Incumbent Directors at the time of the
execution of the initial agreement or of the action of the Board providing for such Business Transaction; or 

  

	 	(iii)	during any consecutive eighteen (18) month period, more than thirty percent (30%) of the Board ceases to be comprised of Incumbent Directors; or 

 

	 	(iv)	consummation of a transaction that implements in whole or in part a resolution of the stockholders of the Corporation authorizing a sale of all or substantially all of
Corporation’s assets or a complete liquidation or dissolution of the Corporation, except pursuant to a Business Transaction that complies with clauses (A), (B) and (C) of Section 2.01(h)(ii). 

  

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	 	(i)	“Chief Executive Officer” means the Chief Executive Officer of the Corporation. 

  

	 	(j)	“CIC Severance Protection Period” means the time period commencing on the date of the first occurrence of a Change in Control and continuing until the earlier of
(i) the 18-month anniversary of such date or (ii) the Participant’s death. A CIC Severance Protection Period shall also include the time period before the occurrence of a Change in Control for Participants who are subject to a Pre-CIC
Termination with respect to the affected Participant. 

  

	 	(k)	“Code” means the Internal Revenue Code of 1986, as amended and the proposed, temporary and final regulations promulgated thereunder. Reference to any section or
subsection of the Code includes reference to any comparable or succeeding provisions of any legislation that amends, supplements or replaces such section or subsection. 

  

	 	(l)	“Company” means as the context requires, the Corporation, any Participating Employer, or any entity to which a Participant’s employment is transferred, at the
direction of the Corporation, and with which the Corporation would be considered a single employer as described in the definition of Separation from Service. 

  

	 	(m)	“Compensation Committee” has the meaning set forth in Section 1.04. 

  

	 	(n)	“Corporation” means Sprint Nextel Corporation, a Kansas corporation, or any successor company. 

  

	 	(o)	“Director” means a member of the Board. 

  

	 	(p)	“Effective Date” means January 1, 2007. 

  

	 	(q)	“Employment Agreement” means any written employment agreement between a Company and a Participant. 

  

	 	(r)	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder. Reference to any section or subsection of
ERISA includes reference to any comparable or succeeding provisions of any legislation that amends, supplements or replaces such section or subsection. 

  

	 	(s)	“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the regulations promulgated thereunder. Reference to any section or subsection of the
Exchange Act includes reference to any comparable or succeeding provisions of any legislation that amends, supplements or replaces such section or subsection. 

  

	 	(t)	“Excise Tax” shall mean, collectively, (i) the tax imposed by Section 4999 of the Code by reason of being “contingent on a change in ownership or
control” of the Corporation, within the meaning of Section 280G of the Code, or (ii) any similar tax imposed by state or local law, or (iii) any interest or penalties with respect to any excise tax described in clause (i) or
(ii). 

  

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	 	(u)	“Good Reason” means a Participant’s resignation from employment with a Company in accordance with Section 6.15(b) after any of the actions listed below
are directed at the Participant without the Participant’s written consent (unless cured prior to such resignation): 

  

	 	(i)	Such Company’s material breach of an Employment Agreement with the Participant, if any; 

  

	 	(ii)	significant and adverse change in duties and responsibilities which results in a change in a Participant’s tier (and adjusting as appropriate for any changes to the
Corporation’s system of classifying employees implemented subsequent to the Effective Date) as compared with a Participant’s responsibilities or duties immediately prior to the Change in Control; 

  

	 	(iii)	reduction in a Participant’s Base Salary as compared with the Participant’s Base Salary immediately prior to the Change in Control, except for across-the-board reductions
generally applicable to all senior executives; 

  

	 	(iv)	reduction in a Participant’s Target Bonus as compared with the Participant’s Target Bonus in effect immediately prior to the Change in Control, except for across-the-board
reductions generally applicable to all senior executives; 

  

	 	(v)	the failure to provide long-term incentive opportunities to the Participant at a level that is generally comparable to all senior executives; 

  

	 	(vi)	reduction in the aggregate value of Section 2.01(u)(iii), (iv) and (v) as compared with such benefits in effect immediately prior to the Change in Control, except for
across-the-board reductions of not more than ten percent (10%) generally applicable to all senior executives; 

  

	 	(vii)	reduction in aggregate employee benefits provided to the Participant as compared to the value of aggregate employee benefits provided immediately prior to the Change in Control,
except for across-the-board reductions generally applicable to all senior executives; 

  

	 	(viii)	a Company requires the Participant to have the Participant’s principal location of work changed to a location more than fifty (50) miles from the location thereof
immediately prior to the Change in Control; or 

  

	 	(ix)	failure of any successor to a Company to assume the Participant’s Employment Agreement or this Plan, as applicable; 

 provided, however, that a Participant’s right to resign his employment for Good Reason will lapse unless such resignation occurs within
sixty (60) days of the event giving rise to Good Reason in accordance with Section 6.15(b) (the “Good Reason Period”). Notwithstanding the foregoing, the lapse of such Participant’s right to resign for Good Reason will only
apply to the event giving rise to Good Reason. For the avoidance of 

  

 7 

 
doubt, the Participant shall have the right to resign for Good Reason, as provided in this Section 2.01(u), upon the occurrence of a subsequent and
independent event giving rise to Good Reason. 
  

	 	(v)	“Good Reason Period” has the meaning set forth in Section 2.01(u). 

  

	 	(w)	“Incumbent Directors” means the individuals who, as of the Effective Date, are Directors of the Corporation, and any individual becoming a Director after the
Effective Date whose election, nomination for election by the Corporation’s stockholders, or appointment, was approved by a vote of at least two-thirds of the then Incumbent Directors (either by a specific vote or by approval of the proxy
statement of the Corporation in which such person is named as a nominee for director, without objection to such nomination); provided, however, that an individual shall not be an Incumbent Director if such individual’s election or
appointment to the Board occurs as a result of an actual or threatened election contest (as described in Rule 14a-12(c) of the Exchange Act) with respect to the election or removal of Directors or other actual or threatened solicitation of proxies
or consents by or on behalf of a Person other than the Board. 

  

	 	(x)	“Initial Term” has the meaning set forth in Section 5.02. 

  

	 	(y)	“JAMS” has the meaning set forth in Section 6.08(a). 

  

	 	(z)	“Parties” has the meaning set fourth in Section 6.08(a). 

  

	 	(aa)	“Participant” means each full-time employee of a Company who is recommended to the Compensation Committee by the Chief Executive Officer for participation in the
Plan and whose participation in the Plan has been approved by the Compensation Committee as provided in Article Three and who continues to remain employed by a Company either up through a Change in Control or up to a termination of employment that
qualifies as a Pre-CIC Termination, except as otherwise removed from Participation pursuant to Article Three. 

  

	 	(bb)	“Participating Employer” means the Corporation and any Subsidiary of the Corporation that is designated as a Participating Employer under the Plan by the Board,
excluding, however, any division of the Corporation or of a Subsidiary or affiliate of the Corporation that is designated by the Board as ineligible to participate in the Plan. Appendix III contains a list of the Participating Employers currently
participating in the Plan that have adopted the Plan pursuant to Article Six. 

  

	 	(cc)	“Payment” has the meaning set forth in Section 4.05. 

  

	 	(dd)	“Person” has the meaning set forth in Section 2.01(h)(i). 

  

	 	(ee)	“Plan” has the meaning set forth in Section 1.01, as such may be amended from time to time, or any successor plan, program or arrangement thereto.

  

	 	(ff)	 “Pre-CIC Termination” means the termination of a Participant without Cause if (i) the termination occurs in the six-month period before
a Change in Control at the 

  

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request of a third party in contemplation of a Change in Control, (ii) the Change in Control occurs, and (iii) the termination constitutes a
Separation from Service. 

  

	 	(gg)	“Release” means a release of claims and a non-compete agreement and other restrictive covenants in a form provided to the Participant by the Corporation in
connection with the payment of benefits under this Plan. 

  

	 	(hh)	“Release Consideration and Revocation Period” means the combined total of the Release Consideration Period and the Release Revocation Period.

  

	 	(ii)	“Release Consideration Period” means the period of time pursuant to the terms of a Release afforded a Participant to consider whether to sign it.

  

	 	(jj)	“Release Revocation Period” means the period pursuant to the terms of an executed Release in which it may be revoked by a Participant. 

  

	 	(kk)	“Renewal Term” has the meaning set forth in Section 5.02. 

  

	 	(ll)	“Separation from Service” means “separation from service” from an Employer as described under Code Section 409A and any governing Internal Revenue
Service guidance and Treasury regulations. A Participant who is a Board member does not have a Separation from Service until he or she has a Separation from Service with respect to both his or her employment and his or her Board membership.
“Employer” means the Corporation and any affiliate with which the Corporation is treated as a single employer under Code Section 414(b) or 414(c), as modified in (i) and (ii) below. 

  

	 	(i)	50 Percent-Owned Entities. In applying Code Sections 1563(a)(1), (2), and (3) to Code Section 414(b), the language “at least 50 percent” is used instead
of “at least 80 percent” each place it appears. In applying Treasury Regulation Section 1.414(c)-2 to trades or businesses (whether or not incorporated) that are under common control under Code Section 414(c), “at least 50
percent” is used instead of “at least 80 percent” each place it appears. 

  

	 	(ii)	20 Percent-Owned Entities. In addition to (i) above, where the Compensation Committee determines that legitimate business criteria exist with respect to a particular
entity, in applying Code Sections 1563(a)(1), (2), and (3) under Code Section 414(b), the language “at least 20 percent” is used instead of “at least 80 percent” each place it appears. In applying Treasury Regulation
Section 1.414(c)-2 to trades or businesses (whether or not incorporated) that are under common control for purposes of Code Section 414(c), “at least 20 percent” is used instead of “at least 80 percent” each place it
appears. 

  

	 	(iii)	 Service Level. A Separation from Service occurs when the Participant’s level of services drops to 21 percent or less of the average level of service
provided by the Participant over the immediately preceding 36-month period (or if providing services for less than 36 months, that lesser period). 

  

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If a Participant’s status changes from an employee to an independent contractor, or from an independent contractor to an employee, services provided in
both capacities are taken into account. 

  

	 	(mm)	“Separation Plan” means the Corporation’s Separation Plan as may be amended from time to time or any successor plan, program, arrangement or agreement thereto.

  

	 	(nn)	“Severance Benefits” means Severance Pay and the other benefits payable to a Participant pursuant to Article Four of the Plan. 

  

	 	(oo)	“Severance Benefits Classification” means a Participant’s severance benefits classification, as specified for the Participant on Appendix I and as set forth on
Appendix II. 

  

	 	(pp)	“Severance Pay” means the cash severance payments payable to a Participant pursuant to Section 4.01 of the Plan. 

  

	 	(qq)	“Specified Employee” means a Participant who is a “specified employee” of the Corporation for purposes of Code Section 409A, as
administratively determined by the Board of Directors of the Corporation in accordance with the guidance and Treasury regulations issued under Code Section 409A. 

  

	 	(rr)	“STIP” means the Corporation’s short term incentive plan, under Section 8 of the Corporation’s Omnibus Incentive Plan, effective May 8, 2007, as
may be amended from time to time, or any successor plan, program or arrangement thereto. 

  

	 	(ss)	“Subsidiary” means any entity in which the Corporation, directly or indirectly, beneficially owns more than fifty percent (50%) of such entity’s equity
interest by vote and value. 

  

	 	(tt)	“Target Bonus” means a Participant’s target (i.e., based on 100% attainment of stated objectives) short-term incentive opportunity under the STIP.

  

	 	(uu)	“Voting Stock” means securities entitled to vote generally in the election of directors. 

  

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 ARTICLE THREE 
 ELIGIBILITY AND PARTICIPATION 
  

	3.01	Eligibility on the Effective Date 

 Each full-time
employee of the Corporation or a Participating Employer who has been recommended to the Compensation Committee to be a Tier I or Tier II Executive by the Chief Executive Officer and whose participation in the Plan has been approved by the
Compensation Committee, as of the Effective Date will be a Participant in the Plan. 
  

	3.02	Future Eligibility 

 Except as provided in the next
sentence, each full-time employee of the Corporation or a Participating Employer who is recommended to the Compensation Committee to be a Tier I or Tier II Executive by the Chief Executive Officer will be a Participant in the Plan only if the
Compensation Committee approves his or her participation after the Effective Date and before a Change in Control. 
  

	3.03	Plan Participants 

 Appendix I lists, as of the date
of this current amendment and restatement of the Plan, the individuals whom the Compensation Committee has designated as Participants in accordance with Sections 3.01 and 3.02. 
  

	3.04	End of Participation 

 At any time prior to the six
(6) month period preceding the occurrence of a Change in Control, the Compensation Committee may authorize a Company to provide a Participant with written notice of termination of the Participant’s designation as a Participant in the Plan.

  

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 ARTICLE FOUR 
 SEVERANCE BENEFITS 
  

	4.01	Severance Benefits 

  

	 	(a)	Eligibility. A Participant will be eligible for the Severance Benefits described in this Section, subject to the remainder of this paragraph and Section 4.02, if a
Change in Control occurs and, during the CIC Severance Protection Period, (a) a Company terminates the Participant’s employment without Cause (b) the Participant voluntarily terminates employment for Good Reason during the applicable
Good Reason Period or (c) the Company that employs the Participant ceases to constitute a single employer with the Corporation, as described in the definition of Separation from Service, and such termination of employment or change in status
constitutes a Separation from Service. In addition, as a condition of receiving Severance Benefits, the Participant must execute a Release within the Release Consideration Period and deliver it to the Company with the Release Revocation Period
expired without revocation. 

  

	 	(b)	Amount, Time, and Form of Benefit. A Participant described in (a) above will be entitled to the following benefits, subject to the conditions described below.

  

	 	(i)	Pro Rata Target Bonus for Performance Periods Beginning on or Before January 1, 2009. In lieu of any benefit that may be paid under the STIP, the prorated portion of the
Participant’s Target Bonus for the year in which the Participant’s Separation from Service occurs (prorated for the portion of the performance period before the Separation from Service date in accordance with the terms of the STIP and
related administrative guidelines under the STIP). This amount is payable in a lump sum on the Separation from Service date. A resignation for Good Reason under this Plan is deemed to be a termination without Cause under the STIP.

  

	 	(ii)	Pro Rata Bonus for Performance Periods Beginning After January 1, 2009. In lieu of any benefit that may be paid under the STIP, a prorated portion of the
Participant’s bonus (determined as described below) for the year in which the Participant’s Separation from Service occurs (prorated for the portion of the performance period before Separation from Service date in accordance with the terms
of the STIP and related administrative guidelines under the STIP). If the Separation from Service occurs in the same calendar year in which the Change in Control occurs, the prorated bonus will be based on a prorated portion of the
Participant’s Target Bonus payable in a lump sum on the Separation from Service date. If the Separation from Service occurs after the calendar year in which the Change in Control occurs, the prorated bonus will be based on a prorated portion of
the Participant’s actual bonus for the performance period, based on satisfaction of the pre-established performance targets, payable in a lump sum on the date payments under the STIP are paid to Executives who remain employed but no later than
March 15 of the year following the Separation from Service date. 

  

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	 	(iii)	CIC Severance Amount. Except as provided in the next sentence, an amount—payable in accordance with (iv) below—equal to: the Participant’s Applicable
Multiple (based on the Participant’s Severance Benefits Classification) multiplied by the sum of the Participant’s (x) Base Salary and (y) Target Bonus, in each case, for the year in which the Participant’s termination
occurs (“CIC Severance Amount”). If, however, the Participant’s Separation from Service is for Good Reason due to a reduction of the Participant’s Target Bonus under Section 2.01(u)(iv), the Participant’s Target Bonus
under this subsection will be the Participant’s Target Bonus in effect immediately before the reduction. 

  

	 	(iv)	Form and Timing of Payment. The CIC Severance Amount under (iii) above is payable at the time and in the form provided in this subsection, subject to the six-month delay
for Specified Employees under Section 4.02(b). This amount is composed of two parts: the amount to which the Participant would otherwise be entitled under an Employment Agreement or Separation Plan with respect to Base Salary and annual short
term incentive compensation in the absence of this Plan, assuming the conditions resulting in entitlement to such benefits has occurred, (“Base Severance Amount”), and the additional amount, if any, provided under (iii) above
(“CIC Enhancement”). These amounts are payable as follows, depending for each individual Participant upon whether the Change in Control is a “change in control event” as defined in the applicable Section 409A Treasury
Regulations (“409A CIC”) or not (“Non-409A CIC”). 

  

	 	(A)	409A CIC. All CIC Severance Amounts payable as a result of a 409A CIC are payable in a lump sum. For any Participant whose Separation from Service occurs before a Change in
Control under circumstances constituting a Pre-CIC Termination, any CIC Severance Amount payable under this Plan is reduced by amounts previously paid with respect to Base Salary and annual short term incentive compensation under an Employment
Agreement or Separation Plan to the Participant for any period after the Separation from Service. The CIC Severance Amount is payable on (x) the Executive’s Separation from Service date; or (y) for a Pre-CIC Termination, the closing
date of the 409A CIC, except that if the Release Consideration and Revocation Period ends on or after December 15 of the calendar year in which the Participant incurs a Separation from Service, the CIC Severance Amount is payable on the first
business day in the following calendar year. 

  

	 	(B)	 Non-409A CIC. All CIC Enhancements payable as a result of a Non-409A CIC are payable in a lump sum. All Base Severance Amounts payable as a result of a
Separation from Service in connection with a Non-409A CIC are payable in the form provided under the applicable Employment Agreement or Separation Plan. For any Participant whose Separation from Service occurs before a Change in Control under
circumstances constituting a Pre-CIC 

  

 13 

	 	 
Termination, any Base Severance Amount payable under this Plan is reduced by amounts previously paid with respect to Base Salary and annual short term
incentive compensation under an Employment Agreement or Separation Plan to the Participant for any period after the Separation from Service. The CIC Severance Amounts are payable (or installment payments will commence) on (x) the
Executive’s Separation from Service date; or (y) for a Pre-CIC Termination, the closing date of the Non-409ACIC, except that if the Release Consideration and Revocation Period ends on or after December 15 of the calendar year in which
the Participant incurs a Separation from Service, any payments under this section 4.01(b)(iv)(B) that are otherwise payable in the calendar year of the Participant’s Separation from Service shall be paid in a lump sum on the first business day
of the following calendar year. 

  

	 	(v)	Health Coverage. A Participant may continue participation at then-existing participation and coverage levels for the Applicable Period following the Separation from Service
in the Corporation’s group health and life insurance plans comparable to the terms in effect from time to time for the Corporation’s senior executives, including any co-payment and premium payment requirements, except that: (A) after
the Applicable Period expires, the Participant will retain any rights to continue coverage under the group health plans under the benefits continuation provisions pursuant to Section 4980B of the Code and to continue coverage under any life
insurance plans by paying the applicable premiums of such plans; (B) the Participant will no longer be eligible to receive the benefits otherwise receivable under this subsection as of the date that the Participant becomes eligible to receive
comparable benefits from a new employer or otherwise; and (C) no Company may provide a cash payment in lieu of the benefits provided under this subsection. 

  

	 	(vi)	Outplacement. For a period ending on the last day of the second calendar year following the year in which the Participant’s Separation from Service occurred, the
Participant will receive outplacement services from a firm selected by the applicable Company, at the Company’s expense, in an amount not to exceed $35,000. No Company may provide a cash payment in lieu of this outplacement benefit.

  

	 	(c)	Equity and Long-Term Incentives. This Plan does not affect the vesting or payment of any equity or long-term incentive grants or awards. Unvested equity and other long-term
incentives as specified in individual award agreements, if applicable, shall vest and pay with respect to each Participant in accordance with their terms. 

  

	 	(d)	 Reimbursements. Any reimbursements by a Company to a Participant of any eligible expenses under this Plan that are not otherwise exempt from Code
Section 409A (“Reimbursements”) will be made promptly and, in any event, on or before the last day of the Participant’s taxable year following the taxable year in which the expense was incurred. The amount of any Reimbursements,
and the value of 

  

 14 

	 	 
any in-kind benefits not otherwise exempt from Code Section 409A to be provided during any taxable year of a Participant will not affect the expenses
eligible for reimbursement, or in-kind benefits to be provided, in any other of taxable years of such Participant, except for any limit on the amount of expenses that may be reimbursed under an arrangement described in Code Section 105(b). The
right to Reimbursements, or in-kind benefits, will not be subject to liquidation or exchange for another benefit. 

  

	 	(e)	Benefits in Lieu of Other Severance. Any Severance Benefits payable under this Section 4.01 will be paid solely in lieu of, not in addition to, any severance amounts
payable under an Employment Agreement or Separation Plan on account of the Participant’s termination from employment, except to the extent that the Employment Agreement provides greater benefits than the Severance Benefits under this Plan. If
the Employment Agreement provides a greater benefit, that excess amount will be paid in accordance with the Employment Agreement. In no event may there be duplication of benefits under this Plan and any Employment Agreement or Separation Plan.

  

	4.02	Section 409A 

  

	 	(a)	In General. The Company intends that benefits provided under the Plan will not be subject to tax under Code Section 409A. Notwithstanding any provision of the Plan to
the contrary, the Plan is to be interpreted and construed consistent with this intent. To the extent that any provision of the Plan were to conflict with section 409A or that the administration of the Plan were to fail to satisfy the requirements of
section 409A, that provision will be deemed null and void to the extent permitted by applicable law. 

  

	 	(b)	Distributions. Notwithstanding any provision of the Plan to the contrary, distributions under the Plan may only be made upon an event and in a manner permitted under Code
Section 409A. In no event may a Participant, directly or indirectly, designate the calendar year of payment, except as permitted by Code Section 409A. The right to a series of payments under the Plan will be treated as a right to a series
of separate payments. If a distribution or benefit subject to Code Section 409A is being made to a Specified Employee due to the Participant’s Separation from Service, distribution or payment will be delayed until the earlier to occur of
the Participant’s death or the day that is six months and one day following the Participant’s Separation from Service (the “Delay Period”). The postponed payments will be paid to the Participant on the last day of the Delay
Period. 

  

	 	(c)	 No Representations or Warranties. The Corporation does not, however, assume any economic burdens associated with Code Section 409A. Although the
Corporation intends to administer the Plan to prevent taxation under Code Section 409A, it does not represent or warrant that the Plan complies with any provision of federal, state, local, or non-United States law. The Corporation, its
subsidiaries, and their respective directors, officers, employees and advisers will not be liable to any Participant (or any other individual claiming a benefit through the Participant) for any tax, interest, or penalties the Participant may owe as
a result 

  

 15 

	 	 
of participation in the Plan. And neither the Corporation nor its subsidiaries or affiliates have any obligation to indemnify or otherwise protect any
Participant from any obligation to pay taxes under Code Section 409A. 

  

	4.03	Forfeiture 

 Any right of the Participant to receive
Severance Benefits hereunder shall be forfeited to the extent of any amounts payable or benefits due after any breach of Section 6.09 by the Participant. 
  

	4.04	Legal Fees 

 All expenses of a Participant incurred
in enforcing the Participant’s rights and/or to recover the Participant’s benefits under this Article Four, including but not limited to, attorneys’ fees, court costs, arbitration costs, and other expenses shall be paid by the
Corporation. The Corporation shall pay, or reimburse the Participant for such fees, costs and expenses, promptly upon presentment of appropriate documentation, but only if, to the extent and at the earliest date(s) such payment or reimbursement does
not violate Code Section 409A. 
  

	4.05	Applicable Provisions if Excise Tax Applies 

 Anything in the Plan to the contrary notwithstanding, if it is determined (as hereafter provided) that any payment or distribution by or on behalf of a Company to or for the benefit of the Participant, whether paid or payable or distributed
or distributable pursuant to the terms of the Plan or otherwise pursuant to or by reason of any other agreement, policy, plan, program or arrangement, including without limitation any stock option, stock appreciation right or similar right, or the
lapse or termination of any restriction on or the vesting or exercisability of any of the foregoing (a “Payment”), would be subject to the Excise Tax, but for the application of this sentence, then the Payment shall be reduced to the
minimum extent necessary (but in no event to less than zero) so that no portion of any such Payment, as so reduced, constitutes an “Excess Parachute Payment” within the meaning of Section 280G of the Code; provided, however, that the
foregoing reduction shall be made only if and to the extent that such reduction would result in an increase in the aggregate Payment to be provided, determined on an after-tax basis (taking into account the Excise Tax imposed, any tax imposed by any
comparable provision of state law, and any applicable federal, state and local income taxes). The fact that the Participant’s right to a Payment may be reduced by reason of the limitations contained in this Section 4.05 shall not of itself
limit or otherwise affect any other rights of the Participant other than under the Plan. In the event that a Payment intended to be provided under the Plan is required to be reduced pursuant to this Section 4.05, the Corporation may effect such
reduction in any manner it deems appropriate. 
  

	 	(a)	 All determinations required to be made under this Section 4.05, including whether an Excise Tax is payable by the Participant and the amount of such Excise
Tax, shall be made by the Accounting Firm. The Corporation shall direct the Accounting Firm to submit its determination and detailed supporting calculations to the relevant Company and the Participant within fifteen (15) calendar days after the
date of the Participant’s termination, if applicable, and any other such time or 

  

 16 

	 	 
times as may be requested by such Company or the Participant. If the Accounting Firm determines that no Excise Tax is payable by the Participant, it shall,
at the same time as it makes such determination, furnish the Participant with an opinion that the Participant has substantial authority not to report any Excise Tax on the Participant’s federal, state, local income or other tax return.

  

	 	(b)	The Corporation and the Participant shall each provide the Accounting Firm access to and copies of any books, records and documents in the possession of the Corporation or the
Participant, as the case may be, reasonably requested by the Accounting Firm, and otherwise cooperate with the Accounting Firm in connection with the preparation and issuance of the determination contemplated by Section 4.05(a). Any reasonable
determination by the Accounting Firm of the type contemplated by Section 4.05(a) (and supported by the calculations done by the Accounting Firm) shall be binding upon such Company and the Participant. 

  

	 	(c)	The federal, state and local income or other tax returns filed by the Participant shall be prepared and filed on a consistent basis with the determination of the Accounting Firm
with respect to the Excise Tax, if any, payable by the Participant. The Participant shall make proper payment of the amount of any Excise Tax, and upon request, provide to the Corporation true and correct copies (with any amendments) of the
Participant’s federal income tax return as filed with the Internal Revenue Service and corresponding state and local tax returns, if relevant, as filed with the applicable taxing authority, and such other documents reasonably requested by the
Corporation, evidencing such filing and payment. 

  

	 	(d)	The Corporation will pay the fees and expenses of the Accounting Firm for its services in connection with the determinations and calculations contemplated by Section 4.05(a)
and Section 4.05(c). If such fees and expenses are initially paid by the Participant, subject to Section 4.02, the Corporation shall reimburse the Participant the full amount of such fees and expenses within ten (10) business days
after receipt from the Participant of reasonable evidence of payment. 

  

 17 

 ARTICLE FIVE 
 AMENDMENT AND TERMINATION 
  

	5.01	Amendment 

 The Corporation reserves the right to
amend, modify or change the Plan, at any time without any Participant’s consent; provided, however, that any amendment, modification or change that adversely affects a Participant’s severance benefits and/or rights will not
apply to a Participant if the revision is made within six (6) months prior to, the occurrence of a Change in Control without the Participant’s written consent (and before all payments and benefits hereunder or at or following the
occurrence of such Change in Control associated with such Change in Control are paid or made available as set forth herein), except as may be otherwise required to comply with changes in applicable laws or regulations, including as set forth in
Section 4.02. 
  

	5.02	Termination 

 The term of the Plan shall be for an
initial term of two (2) years commencing on the Effective Date and shall continue through December 31, 2008 (the “Initial Term”); provided, however, that at the end of the Initial Term and on each succeeding
anniversary of the Effective Date, the Plan will be automatically extended by an additional one (1) year (each, a “Renewal Term”), unless, not less than one (1) year prior to the end of the Initial Term or any Renewal Term, a
Company has given the Participants written notice of nonrenewal. Notwithstanding the foregoing, following the commencement of any discussions with a third party that result in a Change in Control, the Plan shall continue subject to
Section 5.01, until the applicable Participating Employer has fully performed all of such Participating Employer’s obligations under the Plan with respect to all Participants, and shall have paid all Severance Benefits under the Plan in
full to all Participants. 
  

 18 

 ARTICLE SIX 
 MISCELLANEOUS 
  

	6.01	Participant Rights 

 Each Company intends this Plan
to constitute a legally enforceable obligation between (A) such Company and (B) each Participant. 
 It is also intended that the
Plan shall confer vested and non-forfeitable rights for each Participant to receive benefits to which the Participant is entitled under the terms of the Plan with Participants being third party beneficiaries. 
 Except as provided in the definitions of Cause and Good Reason, nothing in this Plan shall be construed to confer on any Participant any right to continue
in the employ of any Company or a Subsidiary or affiliate of the Corporation or to affect in any way the right of the Corporation or a Subsidiary or affiliate of the Corporation to terminate a Participant’s employment without prior notice at
any time for any reason or no reason. 
  

	6.02	Authority of the Compensation Committee 

  

	 	(a)	The Compensation Committee will administer the Plan and have the full authority and discretion necessary to accomplish that purpose, including, without limitation, the authority and
discretion to: 

  

	 	(i)	resolve all questions relating to the eligibility of Participants; 

  

	 	(ii)	determine the amount of benefits, if any, payable to Participants under the Plan and determine the time and manner in which such benefits are to be paid; 

 

	 	(iii)	engage any administrative, legal, tax, actuarial, accounting, clerical, or other services it deems appropriate in administering the Plan; 

  

	 	(iv)	construe and interpret the Plan, supply omissions from, correct deficiencies in and resolve inconsistencies or ambiguities in the language of the Plan, resolve inconsistencies or
ambiguities between the provisions of this document, and adopt rules for the administration of the Plan which are not inconsistent with the terms of the Plan document; 

  

	 	(v)	compile and maintain all records it determines to be necessary, appropriate or convenient in connection with the administration of the Plan; and 

  

	 	(vi)	resolve all questions of fact relating to any matter for which it has administrative responsibility. 

  

	 	(b)	 The Compensation Committee shall perform all of the duties and may exercise all of the powers and discretion that the Compensation Committee deems necessary or
appropriate for the proper administration of the Plan, including, but not limited 

  

 19 

	 	 
to, delegation of any of its duties to one or more authorized officers, and shall do so in a uniform, nondiscriminatory manner. 

 

	 	(c)	Any failure by the Compensation Committee to apply any provisions of this Plan to any particular situation shall not represent a waiver of the Compensation Committee’s
authority to apply such provisions thereafter. Every interpretation, choice, determination or other exercise of any power or discretion given either expressly or by implication to the Compensation Committee shall be conclusive and binding upon all
parties having or claiming to have an interest under the Plan or otherwise directly or indirectly affected by such action, without restriction, however, on the right of the Compensation Committee to reconsider and redetermine such action.

  

	 	(d)	Any decision rendered by the Compensation Committee and any review of such decision shall be limited to determining whether the decision was so arbitrary and capricious as to be an
abuse of discretion. The Compensation Committee may adopt such rules and procedures for the administration of the Plan as are consistent with the terms hereof. 

  

	6.03	Claims Procedure 

  

	 	(a)	With respect to any claim for benefits which are provided exclusively under this Plan, the claim shall be approved or denied by the Compensation Committee within sixty
(60) days following the receipt of the information necessary to process the claim. If the Compensation Committee denies a claim for benefits in whole or in part, it will give written notice of the decision to the claimant or the claimant’s
authorized representative, which notice will set forth in a manner calculated to be understood by the claimant, stating the specific reasons for such denial, make specific reference to the pertinent Plan provisions on which the decision was based,
and provide any other additional information, as applicable, required by 29 Code of Federal Regulations Section 2560.503-1 applicable to the Plan. 

  

	 	(b)	With respect to any claim for benefits which, under the terms of the Plan, are provided under another employee benefit plan maintained by a Company, the Compensation Committee shall
determine claims regarding the Participant’s eligibility under the Plan in accordance with the preceding paragraph, but the administration of any other claim with respect to such benefits (including the amount of such benefits) shall be subject
to the claims procedure specified in such other employee benefit plan or program. 

 Appeals with respect to any claim for
benefits which, under the terms of the Plan, are provided under another employee benefit plan maintained by a Company (e.g., group health, life insurance, etc.), shall be subject to the claims and appeals procedure specified in such other employee
benefit plan. 
  

 20 

	6.04	Records and Reports 

 The Compensation Committee
will maintain adequate records of all of their proceedings and acts and all such books of account, records, and other data as may be necessary for administration of the Plan. The Compensation Committee will make available to each Participant upon
the Participant’s request such of the Plan’s records as pertain to him for examination at reasonable times during normal business hours. 
  

	6.05	Reliance on Tables, Etc. 

 In administering the
Plan, the Compensation Committee is entitled to the extent permitted by law to rely conclusively upon all tables, valuations, certificates, opinions and reports which are furnished by accountants, legal counsel or other experts employed or engaged
by the Compensation Committee. The Compensation Committee will be fully protected in respect of any action taken or suffered by the Compensation Committee in good faith reliance upon all such tables, valuations, certificates, reports, opinions or
other advice. The Compensation Committee is also entitled to rely upon any data or information furnished by a Participating Employer or by a Participant as to any information pertinent to any calculation or determination to be made under the
provisions of the Plan, and, as a condition to payment of any benefit under the Plan the Compensation Committee may request a Participant to furnish such information as it deems necessary or desirable in administering the Plan. 
  

	6.06	Availability of Plan Information and Documents 

 Any
Participant having a question concerning the administration of the Plan or the Participant’s eligibility for participation in the Plan or for the payment of benefits under the Plan may contact the Compensation Committee and request a copy of
the Plan document. Each Participating Employer will keep copies of this Plan document, exhibits and amendments hereto, and any related documents on file in its administrative offices, and such documents will be available for review by a Participant
or a designated representative of the Participant at any reasonable time during regular business hours. Reasonable copying charges for such documents will be paid by the party requesting copies. 
  

	6.07	Expenses 

 All Plan administration expenses incurred
by the Compensation Committee shall be paid by the Corporation and all other administration expenses incurred by a Company shall be paid by such Company. 
  

	6.08	Dispute Resolution 

  

	 	(a)	 If the Participant and any Company (collectively, the “Parties”) are unable to resolve any controversy or claim arising out of or in connection with this
Plan or breach thereof, either Party shall refer the dispute to binding arbitration, which shall be the exclusive forum of resolving such claims. Such arbitration will be administered by Judicial Arbitration and Mediation Services, Inc.
(“JAMS”) pursuant to its Employment Arbitration Rules and Procedures and governed by 

  

 21 

	 	 
Kansas law. The arbitration shall be conducted by a single arbitrator selected by the Parties according to the rules of JAMS. If the Parties fail to agree on
the selection of the arbitrator within thirty (30) days after either the Participant or such Company’s request for arbitration, the arbitrator will be chosen by JAMS. The arbitration proceeding shall commence on a mutually agreeable date
within ninety (90) days after the request for arbitration, unless otherwise agreed by the Parties, and in the location where the Participant worked during the six (6) months immediately prior to the request for arbitration to the extent
such location is Kansas or Virginia, and if not, the location will be Kansas, unless the Parties agree otherwise. 

  

	 	(b)	Such Company shall reimburse the Participant for legal fees and expenses incurred in connection with a dispute resolved under this Section 6.08. The arbitrator shall not have
authority to award attorneys’ fees or costs to either of the Parties in any manner not consistent with this Section 6.08(b). 

  

	 	(c)	The arbitrator shall have no power or authority to make awards or orders granting relief that would not be available to a party in a court of law. The arbitrator’s award is
limited by and must comply with the terms of the Plan, including without limitation, Section 6.02(d) and applicable federal, state, and local laws. The decision of the arbitrator shall be final and binding on the Parties.

  

	6.09	Continued Cooperation 

  

	 	(a)	Following termination of the Participant’s employment, the Participant shall cooperate fully with the Corporation and with the Corporation’s counsel in connection with any
present and future actual or threatened litigation or administrative proceeding involving any Company that relates to events, occurrences or conduct occurring (or claimed to have occurred) during the period of the Participant’s employment by
any Company. This cooperation by the Participant will include, but not be limited to: 

  

	 	(i)	making himself reasonably available for interviews and discussions with the Corporation’s counsel as well as for depositions and trial testimony; 

  

	 	(ii)	if depositions or trial testimony are to occur, making himself reasonably available and cooperating in the preparation therefore as and to the extent that the Corporation or the
Corporation’s counsel reasonably requests; 

  

	 	(iii)	refraining from impeding in any way the Corporation’s prosecution or defense of such litigation or administrative proceeding; and 

  

	 	(iv)	cooperating fully in the development and presentation of the Corporation’s prosecution or defense of such litigation or administrative proceeding. 

  

	 	(b)	 The Participant will be reimbursed by the Corporation for reasonable travel, lodging, telephone and similar expenses, as well as reasonable attorneys’ fees (if
independent legal counsel is necessary), incurred in connection with any cooperation, consultation and advice rendered under this Section 6.09. The 

  

 22 

	 	 
Participant shall not unreasonably withhold the Participant’s availability for such cooperation, consultation and advice. 

 

	6.10	Adoption Procedure for Participating Employer 

  

	 	(a)	Any Subsidiary of the Corporation may become a Participating Employer under the Plan provided that (i) the Board approves the adoption of the Plan by such Subsidiary and
designates such Subsidiary as a Participating Employer in the Plan and (ii) by appropriate resolutions of the board of directors or other governing body of such Subsidiary, such Subsidiary agrees to become a Participating Employer under the
Plan and also agrees to be bound by any other terms and conditions which may be required by the Board or the Compensation Committee, provided that such terms and conditions are not inconsistent with the purposes of the Plan.

  

	 	(b)	A Participating Employer may withdraw from participation in the Plan, subject to approval by the Compensation Committee, by providing written notice to the Compensation Committee
that withdrawal has been approved by the board of directors or other governing body of the Participating Employer; provided, however, following the commencement of any discussion with a third party that ultimately results in a Change
in Control, the Compensation Committee shall have no authority to approve the withdrawal of any Participating Employer until such time as the Corporation and each Subsidiary of the Corporation (as appropriate) shall have fully performed all of their
obligations under the Plan with respect to all Participants, and shall have paid all Severance Benefits under the Plan in full to all Participants. The Board may at any time remove a Participating Employer from participation in the Plan by providing
written notice to the Participating Employer that it has approved removal; provided, however, following the commencement of any discussion with a third party that ultimately results in a Change in Control, the Board shall have no
authority to remove or approve the withdrawal of any Participating Employer until such time as the Corporation and each Subsidiary of the Corporation (as appropriate) shall have fully performed all of their obligations under the Plan with respect to
all Participants, and shall have paid all Severance Benefits under the Plan in full to all Participants. The Board will act in accordance with this Article pursuant to unanimous written consent or by majority vote at a meeting.

  

	6.11	Effect on Other Benefits 

 Except as otherwise
provided herein, the Plan shall not affect any Participant’s rights or entitlement under any other retirement or employee benefit plan offered to him by the Corporation or a Subsidiary or affiliate of the Corporation (as appropriate) as of the
date of the Participant’s termination of employment. 
  

	6.12	Successors 

 The Plan shall be binding upon any
successor in interest of any Company and shall inure to the benefit of, and be enforceable by, the Participant’s assigns or heirs. 
  

 23 

	6.13	Construction 

 In determining the meaning of the
Plan, words imparting the masculine gender shall include the feminine and the singular shall include the plural, unless the context requires otherwise. Headings of sections and subsections of the Plan are for convenience only and are not intended to
modify or affect the meaning of the substantive provisions of the Plan. Unless otherwise stated, references to Sections are references to Sections of this Plan. 
  

	6.14	References to Other Plans and Programs 

 Each
reference in the Plan to any plan, policy or program, the Plan or document of the Corporation or a Subsidiary or affiliate of the Corporation shall include any amendments or successor provisions thereto without the necessity of amending the Plan for
such changes. 
  

	6.15	Notices 

  

	 	(a)	General. Notices and all other communications contemplated by this Plan shall be in writing and shall be deemed to have been duly given when personally delivered or when
mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. In the case of the Participant, (i) mailed notices shall be addressed to the Participant at the Participant’s home address which was most recently
communicated to the Corporation in writing or (ii) in the case of a Participant who is an employee, distributed to the employee at his or her place of employment in compliance with 29 Code of Federal Regulations Section 2520.104b-1(c). In
the case of any Company, mailed notices shall be addressed to the Corporation’s corporate headquarters, and all notices shall be directed to the attention of its General Counsel. 

  

	 	(b)	Notice of Termination. Any notice of Cause by a Company or by the Participant for Good Reason shall be communicated by a notice of termination to the other party given in
accordance with this Section 6.15. Such notice shall indicate the specific termination provision in this Plan relied upon, shall set forth in reasonable detail the facts and circumstances claimed to provide the basis for termination under the
provision so indicated, and shall specify the Participant’s date of termination. 

  

	6.16	No Duty to Mitigate 

 The Participant shall not be
required to mitigate the amount of any payment contemplated under this Plan, nor shall such payment be reduced by any earnings that the Participant may receive from any other source, except as provided in this Plan. The Participant’s coverage
under any medical, dental, vision and employee life insurance plans will terminate as of the date that the Participant becomes eligible for comparable benefits of another employer. 
  

 24 

	6.17	Withholding of Taxes 

 Any Company will withhold
from any amounts payable under this Plan all federal, state and local tax or other taxes as such Company is required to withhold pursuant to any law or government regulation or rule. 
  

	6.18	Governing Law and Choice of Forum 

  

	 	(a)	Except to the extent that the Plan may be subject to the provisions of ERISA, the Plan will be construed and enforced according to the laws of the State of Kansas, without giving
effect to the conflict of laws principles thereof. 

  

	 	(b)	Except as otherwise required by ERISA, every right of action by a Participant with respect to the Plan shall be barred after the expiration of three (3) years from the date of
termination of employment or the date of receipt of the notice of denial of a claim for benefits or eligibility, if earlier. If ERISA’s limitation on legal action does not apply, the laws of the State of Kansas with respect to the limitations
of legal actions shall apply and the cause of action must be brought within the limitations provided under the laws of the State of Kansas. 

  

	6.19	Validity/Severability 

 If any provision of this
Plan or the application of any provision to any person or circumstances is held invalid, unenforceable or otherwise illegal, the remainder of this Plan and the application of such provision to any other person or circumstances will not be affected,
and the provision so held to be invalid or unenforceable will be reformed to the extent (and only to the extent) necessary to make it enforceable or valid. To the extent any provisions held to be invalid or unenforceable cannot be reformed, such
provisions are to be stricken herefrom and the remainder of this Plan will be binding on the Parties and their successors and assigns as if such invalid or illegal provisions were never included in this Plan from the first instance. 
  

	6.20	Survival of Provisions. 

 Notwithstanding any other
provision of this Plan, the Parties’ respective rights and obligations under Sections 4.02, 6.01, 6.08, 6.09 and 6.10 will survive any termination or expiration of this Plan or the termination of the Participant’s employment for any reason
whatsoever. 
  

 25 

 APPENDIX I 
 PLAN PARTICIPANTS 
 As of December 15, 2008 
 The list of Participants and Tier Level is on file with Sprint Nextel’s Human Resources department. 
  

			
	 NAME
	  	SEVERANCE BENEFIT
CLASSIFICATION

  

 26 

 APPENDIX II 
 APPLICABLE BENEFITS AND PERIODS 
 As of December 15, 2008 
  

					
	 Severance Benefits
 Classification
	  	 Applicable Multiple
	  	 Applicable Period

	 Tier I Executive
	  	2	  	2 Years
	 Tier II Executive
	  	1.5	  	1.5 Years

  

 27 

 APPENDIX III 
 PARTICIPATING EMPLOYERS 
 As of December 15, 2008 
  

	
	Nextel Communications, Inc.
	Nextel South Corp.
	Nextel of Texas, Inc.
	Nextel Communications of the Mid-Atlantic, Inc.
	Nextel West Corp.
	Nextel West Services LLC
	Nextel of California, Inc.
	Nextel of New York, Inc.
	Nextel Systems Corp.
	US Telecom, Inc.
	UCOM, Inc.
	 AirGate PCS, Inc.
 Alamosa Missouri, LLC

	 Alamosa Wisconsin Limited Partnership
 Southwest PCS, L.P.
 SPCS Caribe Inc.

	Sprint International Caribe, Inc.
	Sprint/United Management Company
	Sprint Nextel Corporation
	Texas Telecommunications, LP
	UbiquiTel Operating Company
	Washington Oregon Wireless, LLC

  

 28Amended and Restated Employment Agreement

 Exhibit 10.1 
 AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
 THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT
(“Agreement”) is made by and between STERLING BANCSHARES, INC., a Texas corporation (“Company”) and J. DOWNEY BRIDGWATER (“Executive”). Capitalized terms used herein without definition shall have
the respective meanings set forth in paragraph 7.1. 
 W I T N E S S E T H: 
 WHEREAS, Company and Executive desire to enter into this Agreement for the purposes, among other things, of providing for the employment of Executive
through December 31, 2009, establishing base and incentive compensation terms, and providing for Executive to receive certain severance benefits in the event that his employment is terminated following a Change of Control under the conditions
set forth herein; 
 WHEREAS, Company is desirous of continuing Executive’s employment as the senior executive of Company and its
wholly-owned subsidiary, STERLING BANK, a banking association chartered by the State of Texas (the “Bank”), on the terms and conditions, and for the consideration, hereinafter set forth and Executive is desirous of continuing his
employment by Company on such terms and conditions and for such consideration; and 
 WHEREAS, references herein to Executive’s
employment by Company shall also mean his employment by Bank, and references herein to payments or benefits of any nature to be made by Company to Executive shall mean that either Company will make such payments or it will cause Bank to make such
payments to Executive. 
 NOW, THEREFORE, for and in consideration of the mutual promises, covenants and obligations contained herein,
Company and Executive agree as follows: 
 ARTICLE 1: EMPLOYMENT AND DUTIES 
 1.1 EMPLOYMENT; EFFECTIVE DATE. Company agrees to employ Executive and Executive agrees to be employed by Company, beginning as of the Effective Date (as
hereinafter defined) and continuing for the period of time set forth in Article 2 of this Agreement, subject to the terms and conditions of this Agreement. For purposes of this Agreement, the “Effective Date” shall be
January 1, 2007. 
 1.2 POSITION. 
 (a) From and after the Effective Date, Company shall employ Executive in the capacity of Chief Executive Officer and President of both the Company and of the Bank, or in such other positions as the parties mutually
may agree. 
 (b) At all times during the term of this Agreement, Company shall use commercially reasonable efforts to cause
Executive to be elected a director of the Company and the Bank and to serve on the Executive Committee of the Bank. If elected, Executive agrees to serve as a director of the Company, the Bank and any one or more of the Company’s subsidiaries
and to serve on the Executive Committee of the Bank. 

 1.3 DUTIES AND SERVICES. Executive agrees to serve in the capacities referred to in paragraph 1.2 and to
perform diligently and to the best of his abilities the duties and services appertaining to such offices, as well as such additional duties and services appropriate to such offices which the parties mutually may agree upon from time to time.
Executive’s employment shall also be subject to the policies maintained and established by Company, as the same may be amended from time to time. 
 1.4 OTHER INTERESTS. Executive agrees, during the period of his employment by Company, to devote his primary business time, energy and best efforts to the business and affairs of Company and Bank and not to engage,
directly or indirectly, in any other business or businesses, whether or not similar to that of Company, except with the consent of the Board of Directors of Company (the “Board of Directors”). However, Executive shall have the right
to participate in the following activities so long as they do not conflict with the business and affairs of Company or interfere with Executive’s performance of his duties hereunder: (i) engaging in and managing passive personal
investments and other business activities, and (ii) serving on civic, religious, educational and/or charitable boards or committees. 
 ARTICLE 2: TERM AND TERMINATION OF EMPLOYMENT 
 2.1 TERM. Unless sooner terminated pursuant to other provisions hereof,
Company agrees to employ Executive for the period beginning on the Effective Date and ending on December 31, 2009 (the “Employment Term”). Upon expiration of the Employment Term, Executive shall become an “at
will” employee and either Company or Executive may terminate Executive’s employment by Company with or without cause and with or without notice. 
 2.2 COMPANY’S RIGHT TO TERMINATE. Notwithstanding the provisions of paragraph 2.1, Company shall have the right to terminate Executive’s employment under this Agreement at any time for any of the following
reasons: 
 (a) upon Executive’s death; 
 (b) upon Executive’s becoming incapacitated by accident, sickness or other circumstance which renders him, with reasonable
accommodation, mentally or physically incapable of performing the duties and services required of him hereunder on a full-time basis for a period of at least 180 consecutive days; 
 (c) for cause, which for purposes of this Agreement shall mean Executive (A) has engaged in gross negligence or willful misconduct in
the performance of the duties required of him hereunder, (B) has been convicted of or pleaded guilty or nolo contendere to a misdemeanor involving moral turpitude or a felony, (C) has willfully refused without proper legal reason to
perform the duties and responsibilities required of him hereunder, (D) has materially breached any corporate policy or code of conduct established by Company which, if curable, remains uncured for 30 days following written notice to Executive
by Company of such breach, or (E) has willfully engaged in conduct that he knows or should know is materially injurious to Company or any of its affiliates; 
  

 2 

 (d) for Executive’s material breach of any material provision of this Agreement
which, if correctable, remains uncorrected for 30 days following written notice to Executive by Company of such breach; or 
 (e) for any other reason whatsoever, in the sole discretion of the Board of Directors. 
 2.3 EXECUTIVE’S RIGHT TO TERMINATE.
Notwithstanding the provisions of paragraph 2.1, Executive shall have the right to terminate his employment under this Agreement at any time for any of the following reasons: 
 (a) Good Reason or a material breach by Company of any material provision of this Agreement which, if correctable, remains uncorrected for
30 days following written notice of such breach by Executive to Company; or 
 (b) for any other reason whatsoever, in the
sole discretion of Executive, by written notice to Company at least six months’ prior to the effective date of Executive’s termination of his employment, unless Company and Executive mutually agree to a shorter notice period. 

2.4 NOTICE OF TERMINATION. If Company or Executive desires to terminate Executive’s employment hereunder at any time prior to expiration of the
Employment Term, it or he shall do so by giving written notice to the other party that it or he has elected to terminate Executive’s employment hereunder and stating the effective date and reason for such termination, provided that no such
action shall alter or amend any other provisions hereof or rights arising hereunder, including, without limitation, the provisions of Articles 4 and 5 hereof. 
 ARTICLE 3: COMPENSATION AND BENEFITS 
 3.1 BASE SALARY. During the Employment Term, Executive shall
receive an annual base salary of $525,000. Executive’s annual base salary shall be paid in equal installments in accordance with Company’s standard policy regarding payment of compensation to executives but no less frequently than monthly.
The Human Resources Program Committee of the Company or any successor committee with responsibility for executive compensation (the “HR Committee”) shall review Executive’s Base Salary on an annual basis and may recommend to
the Board of Directors an increase in the Base Salary if it determines, in its discretion, that an increase is appropriate. For purposes of this Agreement, “Base Salary” shall mean Executive’s initial annual base salary and, if
increased, the increased annual base salary. During any period that Executive is receiving benefits under Company’s Long Term Disability Plan Company shall only be obligated to pay Base Salary to Executive in an amount equal to the excess, if
any, of the after-tax value of the Base Salary over the after-tax value of the disability benefits being received by Executive. 
 3.2
BONUSES. Executive shall receive annual performance-based cash bonuses upon the achievement of certain performance results described on Exhibit A. These performance metrics, ROA and EPS, are derived from the Board approved budget at the
beginning of each fiscal year. The target bonus for the position of CEO is based upon available market data and is subject to annual approval by the Human Resource Programs Committee. The annual 

  

 3 

 
performance bonus shall be determined and paid not later than March 15 of the year following the year in respect of which the annual performance bonus
is being determined. Bonuses paid pursuant to this section shall be in lieu of any bonuses to which the Executive may have been entitled to pursuant to the Company’s short-term incentive program. 
 In the event that Executive receives a payment of performance-based cash bonuses under this Section and the Company subsequently (i) determines that it must file a
formal restatement of its previously filed financial statements with the Securities and Exchange Commission, and (ii) as a result of the restatement the Board makes a formal determination that some portion of the Executive’s performance
based cash bonuses should not have been paid due to a change in actual performance results based on such restatement, then the Company and Executive agree that the provisions of this paragraph shall apply. The Board shall be authorized to
(i) recalculate Executive’s performance-based cash bonuses for the current and any prior period, and (ii) determine the amount of any excess cash bonus payments paid to Executive during such prior period. Executive shall immediately
deliver to the Company, upon demand, an amount in cash equal to any excess bonus payments paid by the Company to Executive, as adjusted for taxes. In the event such amount is not immediately delivered to the Company, the Company may offset such
payment obligation against any other payments from the Company that Executive is entitled to receive under this Agreement or any other agreement or arrangement with the Company. Nothing in this Section shall be deemed to limit the Company’s
rights against Executive for any conduct which resulted in the formal restatement or formal determination described herein in any action at law or in equity. 
 3.3 EQUITY INCENTIVES. 
 (a) Effective as of January 1, 2006, Executive was awarded
125,000 Performance Restricted Share Units (“PRSUs”). These PRSUs, adjusted for the December 2006 3 for 2 stock split, now equal 187,500 PRSUs. As of the Effective Date, none of the PRSUs were vested. If Executive has been
continuously employed by Company from the Effective Date through December 31, 2009, the PRSUs will vest on December 31, 2009 based on the Company’s performance as compared to its peers over the three year period beginning
January 1, 2007 and ending on December 31, 2009, in accordance with Exhibit B. The peer banks were selected by the Committee at the beginning of the three-year vesting period. Not later than March 15, 2010, but effective as of
January 1, 2010, Company will issue to Executive one Bonus Share (as defined in the 2003 Plan) in respect of each vested PRSU. 
 (b) Notwithstanding the foregoing, if Executive’s employment hereunder shall be terminated by Company for any reason other than those encompassed by paragraphs 2.2(c) or (d), effective as of the date of termination Company shall issue
Bonus Shares to Executive in accordance with the following table: 
  

			
	 Year of Termination of Employment
	  	Cumulative
Bonus Shares Issued
	 2007
	  	62,500
	 2008
	  	125,000
	 2009
	  	187,500

  

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 (c) Notwithstanding the foregoing, upon a Change of Control, the 187,500 PRSUs shall
fully vest, and all Bonus Shares which may be issued as a result of the vesting of such PRSUs shall be issued effective as of the date of the Change of Control. 
 (d) The aggregate number of shares of Company Stock which may be awarded hereunder to Executive shall be appropriately adjusted for any
increase or decrease in the number of outstanding shares of Company Stock resulting from a stock split or other subdivision or consolidation of shares of Company Stock or for other capital adjustments or payments of stock dividends or distributions
or other similar increases or decreases in the outstanding shares of Company Stock without receipt of consideration by Company. 
 (e) In the event that Executive receives shares of Company Stock in connection with the settlement of PRSUs under this Section and the Company subsequently (i) determines that it must file a formal restatement of its previously filed
financial statements with the Securities and Exchange Commission, and (ii) as a result of the restatement the Board makes a formal determination that some portion of the Executive’s PRSUs were not properly vested due to a change in actual
performance results due to such restatement, then the Company and Executive agree that the provisions of this paragraph shall apply. The Board shall be authorized to (i) recalculate the number of PRSUs that should have been paid to Executive
for the current or any prior period, and (ii) the amount of any excess PRSU vesting that occurred during such prior period. Executive shall immediately deliver to the Company, upon demand, (i) all shares of Company Stock issued to
Executive in connection with the improper vesting of some or all of his PRSUs to as to which Executive is still the direct or indirect beneficial owner; and (ii) if Executive has sold or otherwise transferred the shares of Common Stock received
in connection with improper vesting of his PRSUs, Executive shall pay to the Company an amount in cash equal to the greater of (A) the actual consideration received for such shares, or (B) the fair market value of the shares on the date on
which such shares were sold or otherwise transferred, in either case adjusted for taxes. If an amount described in the preceding sentence is not immediately delivered to the Company, the Company may offset such delivery obligation against any other
payments from the Company that Executive is entitled to receive under this Agreement or any other agreement or arrangement with the Company. Nothing in this Section shall be deemed to limit the Company’s rights against Executive for any conduct
which resulted in the formal restatement or formal determination described herein in any action at law or in equity. 
  

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 3.4 LONG TERM INCENTIVE PROGRAM. Executive shall be allowed to participate in the Company’s
Long-Term Incentive (LTI) Stock Performance Program in accordance with its terms. Executive’s participation in this program, including establishment of specific award targets, shall be administered by the Human Resources Program Committee.

 3.5 BUSINESS AND ENTERTAINMENT EXPENSES. Subject to Company’s standard policies and procedures with respect to expense reimbursement
as applied to its executive employees generally, Company shall reimburse Executive for, or pay on behalf of Executive, reasonable and appropriate expenses incurred by Executive during his employment hereunder for business related purposes, including
dues and fees to industry, professional and social organizations and costs of entertainment and business development. 
 3.6 OTHER COMPANY
BENEFITS. Executive and, to the extent applicable, Executive’s spouse, dependents and beneficiaries, shall be allowed to participate in all benefits, plans and programs, including improvements or modifications of the same, which are now, or may
hereafter be, available to other executive employees of Company. Such benefits, plans and programs may include, without limitation, pension benefit plans, health insurance or health care plans, life insurance, disability insurance, supplemental
retirement plans, vacation and sick leave benefits, and the like. Company shall not, however, by reason of this paragraph be obligated to institute, maintain, or refrain from changing, amending, or discontinuing, any such benefit plan or program, so
long as such changes are similarly applicable to executive employees generally. 
 3.7 DEFERRAL. In the event that all or any portion of a
payment to be made to Executive pursuant to this Article 3, any separate compensation plan established by the Company or any equity compensation award shall be ineligible for treatment as “qualified performance-based compensation” under
Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), the Company, in its sole discretion, shall have the right to defer payment to Executive of all or any portion of any such payment until the earlier
of (i) such time as Executive is no longer a “covered employee” under Code Section 162(m), or (ii) the first calendar year in which the Company reasonably anticipates that the payment can be made without causing a loss of
tax deductions under Section 162(m) of the Code; provided that such deferral shall be limited to the portion of the payment that is not deductible by the Company pursuant to the Code. The preceding sentence shall only apply if its application
would, or is anticipated to, permit the Company to deduct the payment of amounts deferred thereunder during a future calendar year. 
 ARTICLE 4: CONFIDENTIAL INFORMATION 
 In the Executive’s position with the Company and the Bank, the Company has
previously (i) disclosed to Executive, and placed Executive in a position to have access to or develop, trade secrets or confidential information of the Company or its affiliates, (ii) entrusted Executive with business opportunities of the
Company or its affiliates, or (iii) placed Executive in a position to develop goodwill on behalf of Company or its affiliates. Executive acknowledges that in his position with the Company and the Bank, the Company shall continue to
(i) disclose to Executive, or place Executive in a position to have access to or develop, additional and subsequent trade secrets or confidential information of Company or its affiliates, (ii) entrust Executive with future business
opportunities of Company or its affiliates, or (iii) place Executive in a position to develop business goodwill on behalf of Company or its affiliates. Executive 

  

 6 

 
recognizes and acknowledges that Executive has had, will continue to have, and is being provided contemporaneously with the execution of this Agreement
certain information of Company and that such information is confidential and constitutes valuable, special and unique property of Company. In consideration of Company’s promise to disclose and actual disclosure of its Confidential Information
contemporaneous with the execution of this Agreement, Executive shall not at any time, either during or subsequent to the term of employment with Company, disclose to others, use, copy or permit to be copied, except in pursuance of Executive’s
duties for and on behalf of Company, its affiliates and their respective successors, assigns or nominees, any Confidential Information of Company (regardless of whether developed by Executive) without the prior written consent of Company. In the
event Executive becomes legally compelled (by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand, regulatory demand or other similar process) to disclose any Confidential Information, the
Executive will provide the Company with prompt written notice so that the Company may seek a protective order or other appropriate remedy and/or waive compliance with the provisions of this Article 4. In the event that a protective order or other
remedy is not obtained, or the Company waives compliance with the provisions of this Article 4, the Executive will furnish only that portion of the Confidential Information which is legally required and exercise reasonable best efforts to obtain
assurances that confidential treatment will be accorded the Confidential Information. The term “Confidential Information” means any secret or confidential information or know-how and shall include, but shall not be limited to, the
plans, customers, costs, prices, uses, corporate opportunities, research, financial data, evaluations, prospects, and applications of products and services, results of investigations or studies owned or used by Company, and all apparatus, products,
processes, compositions, samples, formulas, computer programs, computer hardware designs, computer firmware designs, and servicing, marketing or manufacturing methods and techniques at any time used, developed, investigated, made or sold by Company,
before or during the term of employment with Company, that are not readily available to the public or that are maintained as confidential by Company. Executive shall maintain in confidence any Confidential Information of third parties received as a
result of Executive’s employment with Company in accordance with Company’s obligations to such third parties and the policies established by Company. 
 ARTICLE 5: NON-COMPETITION OBLIGATIONS 
 5.1 IN GENERAL. 
 (a) As part of the consideration for the compensation and benefits to be paid to Executive hereunder; to protect the Confidential
Information of Company and its affiliates that has been, is contemporaneously with the execution of this Agreement, and will in the future be disclosed or entrusted to Executive, the business goodwill of Company and its affiliates that has been, are
contemporaneously with the execution of this Agreement, and will in the future be developed in Executive, and the business opportunities that have been, are contemporaneously with the execution of this Agreement, and will in the future be disclosed
or entrusted to Executive by Company and its affiliates; and as an additional incentive for Company to enter into this Agreement, Company and Executive agree to the non-competition obligations hereunder. Executive shall not, directly or indirectly
for Executive or for others, in any county where Company, Bank or any of its banking affiliates has offices as of the date of the termination of the employment relationship or in any county contiguous thereto: 
 (i) engage in any business competitive with the banking business conducted by Company, Bank, or its banking affiliates; 
  

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 (ii) render advice or services to, or otherwise assist, any other person, association, or
entity who is engaged, directly or indirectly, in any banking business competitive with the banking business conducted by Company, Bank, or its banking affiliates with respect to such competitive business; 
 (iii) own, manage, operate, control, invest or acquire an equity interest in any entity engaged in or conducting any banking business
competitive with the banking business conducted by Company, Bank or its banking affiliates; 
 (iv) request or induce any
customer, depositor or borrower of Company, Bank or any of its banking affiliates or any other person which has a business relationship with Company, Bank or any of its banking affiliates and with respect to whom Executive has had, directly or
indirectly, Confidential Information about or dealings with or has managed or supervised another individual who has had Confidential Information about or dealings with such customer, depositor, borrower, or other person, to curtail, cancel or
otherwise discontinue its business or relationship with Company, Bank or any of its banking affiliates; or 
 (v) induce any
employee of Company, Bank or any of its affiliates to terminate his or her employment with Company, Bank or any such affiliate, or hire or assist in the hiring of any employee of Company, Bank or any of its affiliates, or any former employee of
Company, Bank, or any of its affiliates, who has ended his or her relationship with Company, Bank or any of its affiliates within six months prior to the date of such hiring or assistance, by any person, association, or entity not affiliated with
Company. 
 (b) These non-competition obligations shall apply during the period that Executive is employed by Company and
shall extend for two years after the termination of Executive’s employment. 
 (c) Notwithstanding the foregoing, nothing
contained in this Agreement shall prohibit Executive from acquiring or holding any issue of stock or securities of any entity that has securities registered under Section 12 of the Securities Exchange Act of 1934 and either listed on a national
securities exchange or quoted on the automated quotation system of the National Association of Securities Dealers, Inc. so long as (i) Executive is not deemed to be an “affiliate” of such entity as such term as used in paragraphs
(c) and (d) of Rule 145 under the Securities Act of 1933 and (ii) Executive and members of his immediate family do not own or hold more than three percent (3%) of any voting securities of any such entity. Executive acknowledges
that while employed by Company he will remain subject to Company’s Code of Ethics or any similar or successor policy governing ownership of interests in any competitive or potentially competitive financial institution. 
  

 8 

 5.2 ENFORCEMENT AND REMEDIES. Executive understands that the restrictions set forth in paragraph 5.1 may
limit Executive’s ability to engage in certain businesses during the period provided for above, but acknowledges that Executive will receive sufficiently high remuneration and other benefits under this Agreement, including but not limited to
the Company’s disclosure of its Confidential Information as provided herein, to justify such restriction. Executive acknowledges that money damages would not be a sufficient remedy for any breach of this Article 5 by Executive, and Company
shall be entitled to enforce the provisions of this Article by terminating all compensation and all benefits hereunder (other than all accrued and unpaid Base Salary through the date such action is taken by the Company) and seeking specific
performance and injunctive relief as remedies for such breach. Such remedies shall not be deemed the exclusive remedies for a breach of this Article 5, but shall be in addition to all remedies available at law or in equity to Company, including
without limitation, the recovery of damages from Executive and Executive’s agents involved in such breach and remedies available to Company pursuant to other agreements with Executive. 
 5.3 REFORMATION. It is expressly understood and agreed that Company and Executive consider the restrictions contained in this Article to be reasonable
and necessary to protect the proprietary information of Company. Nevertheless, if any of the aforesaid restrictions are found by a court having jurisdiction to be unreasonable, or overly broad as to geographic area or time, or otherwise
unenforceable, the parties intend for the restrictions therein set forth to be modified by such court so as to be reasonable and enforceable and, as so modified by the court, to be fully enforced. 
 ARTICLE 6: EFFECT OF TERMINATION ON COMPENSATION 
 6.1 BY EXPIRATION. If Executive’s employment hereunder shall terminate as provided in paragraph 2.1 hereof, then all compensation and all benefits to Executive hereunder shall terminate contemporaneously with
termination of his employment except to the extent (i) any compensation (including bonuses), or Bonus Shares earned by Executive during the Employment Term have not been determined, paid, issued or delivered to Executive as of the expiration of
the Employment Term, in which case Company shall remain obligated to pay, issue or deliver any such compensation, or Bonus Shares in accordance with the terms and provisions hereof, and (ii) benefits continue pursuant to the specific terms of
any plan or program. 
  

 9 

 6.2 BY COMPANY. If Executive’s employment hereunder shall be terminated by Company prior to
expiration of the Employment Term, then, upon such termination, all compensation and benefits to be paid or provided to Executive hereunder shall, except as otherwise provided herein, terminate contemporaneously with the termination by Company of
Executive’s employment (except to the extent benefits continue pursuant to the specific terms of any plan or program); provided, however, that if Executive’s employment shall be terminated by Company prior to a Change of Control pursuant
to paragraph 2.2(v) or shall be terminated by Company following a Change of Control pursuant to paragraph 2.2(iii), (iv) or (v), then Company shall (i) pay Executive the Termination Payments and (ii) provide Executive with
Continuation Benefits. 
 6.3 BY EXECUTIVE. If Executive’s employment hereunder shall be terminated by Executive prior to expiration of
the Employment Term, then, upon such termination, regardless of the reason therefor, all compensation and benefits to Executive hereunder shall, except as otherwise provided herein, terminate contemporaneously with the termination of such employment
(except to the extent benefits continue pursuant to the specific terms of any plan or program); provided, however, that if such termination shall be pursuant to paragraph 2.3(i), then Company shall (i) pay Executive the Termination Payments and
(ii) provide Executive with Continuation Benefits. 
 6.4 REQUIRED RELEASE. Notwithstanding the provisions of paragraph 6.2 or 6.3, as a
condition to the receipt of any Termination Payments or Continuation Benefits pursuant to paragraph 6.2 or 6.3, Executive and Company must first execute a mutual release agreement, in a form mutually acceptable to Executive and Company, which shall
(i) release Company, its affiliates and their officers, directors, employees and agents from any and all existing claims and causes of action of any kind or character, including but not limited to all claims or causes of action arising out of
Executive’s employment with Company and the termination of such employment, and (ii) release Executive from any and all existing claims and causes of action of any kind or character, including but not limited to all claims or causes of
action arising out of Executive’s employment with Company and service as an officer and director. 
 6.5 NO DUTY TO MITIGATE LOSSES.
Executive shall have no duty to find new employment following the termination of his employment under circumstances which require Company to pay any amount to Executive pursuant to this Article 6. Any salary or remuneration received by Executive
from a third party for the providing of personal services (whether by employment or by functioning as an independent contractor) following the termination of his employment under circumstances pursuant to which this Article 6 apply shall not reduce
Company’s obligation to make a payment to Executive (or the amount of such payment) pursuant to the terms of this Article 6. 
 6.6
INCENTIVE AND DEFERRED COMPENSATION. This Agreement governs the rights and obligations of Executive and Company with respect to Executive’s base salary, bonus, life insurance and certain perquisites of employment. Executive’s rights and
obligations both during the term of his employment and thereafter with respect to incentive compensation (including, without limitation, the Bonus Shares) shall be governed by the separate agreements, plans and other documents and instruments
governing such matters. 
  

 10 

 6.7 ADDITIONAL PAYMENTS BY COMPANY. 
 (a) Anything in this Agreement to the contrary notwithstanding, if it is determined that any payment, distribution or issuance by Company
to or for the benefit of Executive, whether paid or payable, distributed or distributable, or issued or issuable pursuant to the terms of this Agreement or otherwise pursuant to or by reason of any other agreement, policy, plan, program or
arrangement, including, without limitation, any Company Stock, stock option, stock appreciation right or similar right, or the lapse or termination of any forfeiture provision or restriction on, or the acceleration of any vesting, exercisability or
issuance of, any of the foregoing (a “Payment”), would be subject to the excise tax imposed by Code Section 4999, by reason of being “contingent on a change of ownership or control” of the Company, within the meaning
of Section 280G of the Code or to any similar tax imposed by state or local law, or any interest or penalties with respect to such excise tax (such tax or taxes, together with any such interest and penalties, being hereinafter collectively
referred to as the “Excise Tax”), then Executive will be entitled to receive an additional payment or payments (a “Gross-Up Payment”) in an amount such that, after payment by Executive of all taxes (including any
interest or penalties imposed with respect to such taxes), including any Excise Tax, imposed upon the Gross-Up Payment, Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. 
 (b) All determinations required to be made under this paragraph 6.7, including whether an Excise Tax is payable by Executive and the
amount of such Excise Tax and whether a Gross-Up Payment is required and the amount of such Gross-Up Payment, will be made by Company’s independent auditors. If the independent auditors determine that any Excise Tax is payable by Executive,
Company shall pay to the Executive (on or before the earlier of the date on which Company is required to withhold such Excise Taxes or Executive is required to pay such Excise Taxes) the required Gross-Up Payment. Any determination by the
independent auditors as to whether a Gross-Up Payment is required and the amount of such Gross-Up Payment will be binding upon Company and Executive, absent manifest error. 
 6.8 PREEMPTIVE CONSIDERATIONS. Notwithstanding anything to the contrary set forth herein: 
 (a) If Executive is suspended and/or temporarily prohibited from participating in the conduct of the Company’s or Bank’s affairs
by a notice served under Section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1818(e)(3) and (g)(1)), the Company’s obligations under this Agreement shall be suspended as of the date of service unless stayed by
appropriate proceedings. If the charges in the notice are dismissed, the Company shall (i) pay the Executive the compensation withheld while this Agreement’s obligations were suspended, and (ii) reinstate any of its obligations which
were suspended. 
 (b) If the Executive is removed and/or permanently prohibited from participating in the conduct of the
Company’s or Bank’s affairs by an order issued under Section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1818(e)(4) or (g)(1)), all obligations of the Company under this Agreement shall terminate as of the
effective date of the order, but vested rights of the parties shall not be affected. 
  

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 6.9 If the performance of any of Company’s obligations under this Agreement would constitute a
golden parachute payment as defined by Section 359.1(f) of the Federal Deposit Insurance Corporation Rules and Regulations (12 C.F.R. §359.1(f)) and prohibited by Section 359.2 of the Federal Deposit Insurance Corporation Rules and
Regulations (12 C.F.R. §359.2), or any other applicable law or regulation, Company’s obligations under this Agreement to make any such golden parachute payment shall terminate. 
 ARTICLE 7: DEFINITIONS 
 7.1 DEFINITIONS. As used in this Agreement, terms
defined in the preamble and recitals of or elsewhere in this Agreement shall have the meanings set forth therein and the following terms shall have the meanings set forth below: 
 (a) “Bonus Shares” shall mean the shares of Company Stock issued to Executive pursuant to paragraph 3.3(a). 

(b) 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 Company representing thirty-five percent (35%) or more of the combined voting power of
Company’s then outstanding securities eligible to vote for the election of the board of directors of Company (the “Company 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 an acquisition by any of the following persons or groups: (A) by Company, (B) by any employee benefit plan (or related trust) sponsored or maintained by Company, (C) by any underwriter
temporarily holding securities pursuant to an offering of such securities, or (D) by any person or group 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 Company that requires
the approval of Company’s 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 Company Voting Securities that were outstanding
immediately prior to such Business Combination (or, if applicable, is represented by shares into which such Company Voting Securities were converted 

  

 12 

 
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
Company Voting Securities among the holders thereof immediately prior to 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 Company 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 Company 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 Company, 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 Company shall be, for purposes of this Agreement, considered an Incumbent Director; provided, however, that no individual initially elected or nominated as a director of Company 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 50% or more of the assets of Company; or 
 (v) the shareholders of Company shall approve a plan of complete liquidation or dissolution of Company. 
 (c) “Company Stock” shall mean the Company’s common stock, $1.00 per share. 
 (d) “Continuation Benefits” shall mean the following benefits, which shall be provided to Executive following the
termination of Executive’s employment hereunder, at a cost to Executive (exclusive of applicable tax obligations of Executive in respect of such benefits) not greater than his cost if he had remained employed by Company, for the remainder of
the Employment Term or, if following a Change of Control and if greater, for the three years after the Change of Control: 
 (i) a car allowance, or use of company owned vehicle, and the use of a cell phone or any other such personal business tools provided by Company or Bank if any of these items were being provided to Executive on the day immediately prior to
the earlier of his termination or any Change of Control (the “Benefit Measurement Date”); 
  

 13 

 (ii) welfare benefits (such as medical, dental, vision, Employee Assistance Plan and
flexible spending accounts) and life insurance benefits for Executive (including his spouse and dependents) who were covered on the Benefit Measurement Date or, to the extent that any such benefit cannot be lawfully provided or Executive otherwise
does not qualify for coverage, the cost (exclusive of applicable tax obligations of Executive) of providing any such welfare benefit or life insurance benefit that is at least equal to the benefit provided to Executive on the Benefit Measurement
Date; 
 (iii) club dues paid that do not exceed those being paid for Executive on the Benefit Measurement Date; 

(iv) continuation of banking services without service charge or at a reduced charge if any of these banking services were being
utilized by Executive on the Benefit Measurement Date; 
 (v) to the extent permitted by applicable law and the applicable
terms of any plan, participation in Company’s Deferred Compensation Program (or similar program if termination follows a Change of Control); 
 (vi) to the extent permitted by applicable law and the applicable terms of any plan, participation in Company’s Employee Stock Purchase Program (or similar program if termination follows a Change of Control);

 (vii) to the extent permitted by applicable law and the applicable terms of any plan, participation in Company’s
Employee Savings Plan (or similar program if termination follows a Change of Control); 
 (viii) payment of up to $50,000 in
fees to one or more executive outplacement firms for purposes of job placement efforts for Executive; and 
 (ix) to the
extent permitted by applicable law, immediate and full vesting upon termination in all Company plans (or similar plans if termination follows a Change of Control) that require a vesting period including, without limitation, all unvested
contributions to Company’s Employee Savings Plan. 
 Notwithstanding the foregoing, any such benefit listed above shall terminate if and
to the extent Executive becomes eligible to receive (at a cost not greater than what Executive would have paid if still employed by Company) a substantially comparable benefit from a subsequent employer, and any such eligibility shall be promptly
reported to Company by Executive. In addition, if Executive (or his spouse) would have been entitled to any retiree benefit under Company’s plans had Executive voluntarily retired on the date of such termination, then any such benefit shall be
continued as provided under such plans. 
  

 14 

 (e) “Good Reason” means, without Executive’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 Executive that is inconsistent in any material and adverse respect with Executive’s position, duties, responsibilities or status with Company immediately prior to such Change of Control or (B) a material and adverse
change in Executive’s titles or offices with Company (or any Parent Corporation or Surviving Corporation) and including, if applicable, (i) membership or position on a board of directors with Company or Bank (or either’s respective
successor), or (ii) Executive’s direct reporting relationship to the Board of Directors of the Company (or any Parent Corporation or Surviving Corporation), each as in effect immediately prior to such Change of Control; 
 (ii) a reduction in Executive’s rate of Base Salary or target bonus opportunities (including any material and adverse change in the
formula for such bonus target) as in effect immediately prior to the Change of Control or as the same may be increased from time to time thereafter, or the failure of Company (or any Parent Corporation or Surviving Corporation) to pay any such
amounts when due; 
 (iii) any requirement that Executive be based anywhere more than twenty-five (25) miles from the
office where Executive was located at the time of the Change of Control, if such relocation increases Executive’s commute by more than twenty-five (25) miles; 
 (iv) the failure of Company (or any Parent Corporation or Surviving Corporation) to continue in effect a total compensation package
(including incentive compensation opportunities) providing a total compensation package at least equivalent to Executive’s total compensation package in the calendar year immediately preceding the calendar year in which the Change of Control
occurs or in effect immediately prior to the Change of Control, whichever is greater; or 
 (v) the failure of Company to
obtain the assumption (and, if applicable, guarantee) agreement from any Surviving Corporation (and, if applicable, Parent Corporation) as contemplated in paragraph 8.10(b). 
 (f) “SEC” shall mean the Securities and Exchange Commission. 
 (g) “Termination Payments” shall mean: 
 (i) In the case of a termination of Executive’s employment prior to a Change of Control either by the Company pursuant to paragraph
2.2(e) or by the Executive pursuant to paragraph 2.3(a), a lump sum cash payment, payable within 10 days after the last day of Executive’s employment with Company, in an 

  

 15 

 
amount equal to the aggregate Base Salary, as in effect on the effective date of any such termination, that Executive would earn during the remainder of the
Employment Term. 
 (ii) In the case of a termination of Executive’s employment following a Change of Control either by
the Company pursuant to paragraph 2.2(e) or by Executive pursuant to paragraph 2.3(a), a lump sum cash payment, payable within 10 days after the last day of Executive’s employment with Company, in an amount equal to the product of three times
the sum of (1) Executive’s base salary for the calendar year prior to the calendar year in which the Change of Control occurs or Executive’s Base Salary in effect immediately prior to the Change of Control, whichever is greater, plus
(2) the average annual performance bonus paid or payable to Executive pursuant to paragraph 3.2 during the Employment Term. 
 ARTICLE
8: MISCELLANEOUS 
 8.1 NOTICES. For purposes of this Agreement, notices and all other communications provided for herein shall be in
writing and shall be deemed to have been duly given when personally delivered or when mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 
  

			
	IF TO COMPANY TO:	  	Chief Human Resources Officer
		  	Sterling Bancshares, Inc.
		  	2550 North Loop West, Suite 600
		  	Houston, Texas 77092
		
	IF TO EXECUTIVE TO:	  	J. Downey Bridgwater
		  	c/o Sterling Bank
		  	2550 North Loop West, Suite 600
		  	Houston, Texas 77092

 or to such other address as either party may furnish to the other in writing in accordance herewith, except that
notices of changes of address shall be effective only upon receipt. 
 8.2 APPLICABLE LAW. This Agreement is entered into under, and shall be
governed for all purposes by, the laws of the State of Texas. 
 8.3 NO WAIVER. No failure by either party hereto at any time to give notice
of any breach by the other party of, or to require compliance with, any condition or provision of this Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. 

8.4 SEVERABILITY. If a court of competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable, then the
invalidity or unenforceability of that provision shall not affect the validity or enforceability of any other provision of this Agreement, and all other provisions shall remain in full force and effect. 
  

 16 

 8.5 COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of which shall be
deemed to be an original, but all of which together will constitute one and the same Agreement. 
 8.6 WITHHOLDING OF TAXES AND OTHER
EMPLOYEE DEDUCTIONS. Company may withhold from any benefits and payments made pursuant to this Agreement all federal, state, city and other taxes as may be required pursuant to any law or governmental regulation or ruling and all other normal
employee deductions made with respect to Company’s employees generally. 
 8.7 HEADINGS. The paragraph headings have been inserted for
purposes of convenience and shall not be used for interpretive purposes. 
 8.8 GENDER AND PLURALS. Wherever the context so requires, the
masculine gender includes the feminine or neuter, and the singular number includes the plural and conversely. 
 8.9 AFFILIATE. As used in
this Agreement, the term “affiliate” shall mean any entity which owns or controls, is owned or controlled by, or is under common ownership or control with, Company. 
 8.10 SUCCESSOR OBLIGATIONS. 
 (a) This Agreement shall be binding upon and inure to the benefit of Company and any successor of Company, by merger or otherwise. 
 (b) Company agrees that in connection with any Business Combination, it will cause each successor entity to Company or Bank to unconditionally assume, and each Parent corporation to guarantee, by written instrument
delivered to Executive (or his beneficiary or estate), all of the obligations of Company hereunder. Failure of Company 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. 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 Executive. 
 8.11 ASSIGNMENT. Except as provided in paragraph 8.10, this
Agreement, and the rights and obligations of the parties hereunder, are personal and neither this Agreement, nor any right, benefit, or obligation of either party hereto, shall be subject to voluntary or involuntary assignment, alienation or
transfer, whether by operation of law or otherwise, without the prior written consent of the other party. 
 8.12 TERM. This Agreement has a
term co-extensive with the Employment Term provided in paragraph 2.1. Termination shall not affect any right or obligation of any party which is accrued or vested prior to such termination. Without limiting the scope of the preceding sentence, the
provisions of Articles 4 and 5 shall survive any termination of the employment relationship and/or of this Agreement. 
  

 17 

 8.13 ENTIRE AGREEMENT. Except as provided in (i) the written benefit plans and programs referenced
in paragraphs 3.5 and 6.7 and (ii) any signed written agreement contemporaneously or hereafter executed by Company and Executive, this Agreement constitutes the entire agreement of the parties with regard to the subject matter hereof, and
contain all the covenants, promises, representations, warranties and agreements between the parties with respect to employment of Executive by Company. Without limiting the scope of the preceding sentence, all prior understandings and agreements
among the parties hereto relating to the subject matter hereof are hereby null and void and of no further force and effect. Any modification of this Agreement shall be effective only if it is in writing and signed by the party to be charged.

 8.14 TAX CONSEQUENCES. Company makes no representations to Executive regarding any tax liabilities that may be incurred, including, but
not limited to, any application of or taxes incurred under Code Section 409A, because of any payments made to Executive under this Agreement or any plan or program referenced herein. 
 8.15 SECTION 409A COMPLIANCE. 
 (a) General Suspension of Payments. If Executive is a “specified employee,” as such term is defined within the meaning of Code Section 409A and determined under the Company’s Deferred Compensation Plan, any
payments or benefits payable or provided as a result of Executive’s termination of employment that would otherwise be paid or provided within six months and one day of such termination (other than due to death or “disability”, as such
term is defined within the meaning of Code Section 409A) shall instead be paid or provided on the earlier of (i) six months and two days following Executive’s termination, (ii) the date of Executive’s death, or
(iii) any date that otherwise complies with Code Section 409A. In the event that Executive is entitled to receive payments during the suspension period provided under this Section, Executive shall receive the accumulated benefits that
would have been paid or provided under this Agreement within the six month and one day suspension period on the earliest day that would be permitted under Code Section 409A. 
 (b) Medical Benefits. To the extent that Executive is entitled to receive medical continuation benefits for any period in excess of
eighteen (18) months following Executive’s termination date, the following provisions shall apply: 
 (i) Following
the end of the eighteen (18) month COBRA continuation period under the Company’s group health and/or dental plan (the “Health Plan”), Executive may elect to receive additional coverage for Executive (including his spouse and
dependents) during any period specified under this Agreement by (i) filing a written notice with the Company, and (ii) paying an amount equal to the then applicable COBRA rates for such coverage. The parties hereby agree that,
notwithstanding any other provision of this Agreement, Executive shall pay the full cost to receive such instead of the subsidized cost of coverage paid by an active employee of the Company. 
  

 18 

 (ii) Following the end of the eighteen (18) month COBRA continuation period provided
under the Health Plan, the Company shall, as a separate obligation, reimburse Executive for any medical premium expenses he incurs to purchase continued medical coverage under the Health Plan for Executive (including his spouse and dependents), but
only to the extent such expense is in excess of the premium level that would be paid by Executive on the Benefit Measurement Date (which amount shall be referred to herein as the “Medical Reimbursement”). In accordance with Treasury
Regulation Section 1.409A-3(i)(1)(iv)(A), the premiums available for reimbursement under this paragraph in any calendar year will not be increased or decreased to reflect the amount actually reimbursed in a prior or subsequent calendar year,
and all reimbursements under this paragraph will be paid to Executive within twenty (20) days following the Company’s receipt of a request for reimbursement. In addition, the Company will pay Executive an amount equal to the aggregate of
the Federal, state and local income taxes that Employee pays on the Medical Reimbursement payments, plus the additional Federal, state and local income taxes imposed on Employee due to such additional income tax gross-up payment by the Company. The
Company will pay the additional income tax gross-up amounts owed to Executive under this paragraph at the same time payments of the Medical Reimbursement are made. 
 (c) Reimbursement Payments. The following rules shall apply to payments of Continuation Payments that are treated as
“reimbursement payments” under Code Section 409A: (i) the amount of expenses eligible for reimbursement in one calendar year shall not limit the available reimbursements for any other calendar year; (ii) Executive shall file
a claim for all reimbursement payments not later than thirty (30) days following the end of the calendar year during which the expenses were incurred, (iii) the Company shall make such reimbursement payments within thirty (30) days
following the date the Executive delivers written notice of the expenses to the Company; and (iv) the Employee’s right to reimbursement payments under this Section 9(c) shall not be subject to liquidation or exchange for any other
payment or benefit. 
 (d) General. Notwithstanding any provisions of this Agreement relating to the timing of any
benefits or payments, including without limitation the provisions of paragraphs 6.2, 6.3 and 6.7, to the extent required to comply with applicable law, including Code Section 409A, or to prevent the imposition of any excise taxes or penalties
on Company or Executive, the commencement of payment or provision of any Termination Payments, Continuation Benefits, Gross-Up Payment or other payment or benefit shall be deferred to the minimum extent necessary so as to comply with any such law or
to avoid the imposition of any such excise tax or penalty. 
 (REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK) 
  

 19 

 IN WITNESS WHEREOF, the parties hereto have
executed this Agreement on the 29th day of December, 2008, to be effective as of the Effective Date. 
  

			
	STERLING BANCSHARES, INC.
		
	By:	 	 /s/ James W. Goolsby, Jr.

		 	James W. Goolsby, Jr.
		 	Executive Vice President and
		 	General Counsel
	
	APPROVED:
	
	 /s/ George Beatty, Jr.

	George Beatty, Jr.
	Chairman, Human Resources Programs Committee
		
		 	“COMPANY”
	
	 /s/ J. Downey Bridgwater

	J. Downey Bridgwater
		
		 	“EXECUTIVE”

  

 20 

											
	EXHIBIT A - 2007	  	STERLING BANCSHARES, INC.	  		  	
				
		  	Target Bonus is 60% of Base	  		  	
					
	 	  	Weight	 	 Measure
	  	 	  	 
		  	35%	 	ROA from Approved Plan	  		  	
		  	35%	 	EPS from Approved Plan	  		  	
		  	30%	 	Board Evaluation	  		  	
		  	 	 		  		  		  	
		  	100%	 		  		  		  	
		  	 	 		  		  		  	

  

											
	 Return on Assets - 35% Weight
	  	 Earnings per Share
35% Weight
	  	 Board Evaluation 30% Weight

	 Return on Assets
	  	Points
Earned	  	 Earnings
Per Share
Diluted
	  	 Points
Earned
	  	 Rating
	  	 Points
Earned

	2007 target = 1.20%	  	2007 target = $0.71	  	Target = Meets Expectations
	 <1.18
	  	—  	  	<$0.66	  	—  	  	Unsatisfactory	  	—  
	 1.18 - 1.19
	  	1.00	  	$0.66-$0.70	  	1.00	  	Acceptable	  	1.00
	 1.20 -1.21
	  	2.00	  	$0.71-$0.74	  	2.00	  	Meets Expectations	  	2.00
	 1.22>
	  	3.00	  	>$0.75	  	3.00	  	Above Expectations	  	3.00

  

			
	 Points Conversion

	 Points
	  	Percentage
of Target
Bonus
	 1
	  	0%
	 2
	  	0%
	 3
	  	25%
	 4
	  	50%
	 5
	  	75%
	 6
	  	100%
	 7
	  	125%
	 8
	  	150%
	 9
	  	200%

  

 - i - 

											
	 Potential 2007 Bonus
	  	 Position
	  	Annual
Salary	  	Target Payout %	 	Annual
Target
Award
	 Bridgwater, J. Downey
	  	Chair., Pres., and CEO	  	$	525,000	  	60%	 	$	315,000
					
		  	Actual payout could be zero if metrics are
not achieved.	  			  	Minimum Payout %	 	 	Minimum
		  		  			  	25%	 	$ 
	78,750  

					
		  		  			  	Maximum Payout %	 	 	Maximum
		  		  			  	  
 200%
	 	$	630,000

  

 - ii - 

 EXHIBIT B – 2007 
 STERLING BANCSHARES, INC. 
 Three-Year Performance Metrics for Phantom Stock Units 

2007 - 2009 
  

												
	 STERLING BANCSHARES, INC. PERFORMANCE BASED PHANTOM STOCK UNITS VESTING
TABLE
	 	 	 	 
	 Return on Assets Sterling
Bank performance Vs. PEERS
50% Weight
	 	 	Earning per Share Growth
Sterling Bank performance
Vs. PEERS 50% Weight	 	 	 	 
	 Percentile Rank
	  	Percent of
PRS Vested	 	 	Percentile Rank	  	Percent of
PRS
Vested	 	 	Percent of
award based
on
performance
results	 
	 0-29.99%tile
	  	0	%	 	0-29.99%tile	  	0	%	 	0	%
	 30-34.99%tile
	  	10	%	 	30-34.99%tile	  	10	%	 	20	%
	 35-39.99%tile
	  	25	%	 	35-39.99%tile	  	25	%	 	50	%
	 40-49.99%tile
	  	40	%	 	40-49.99%tile	  	40	%	 	80	%
	 50-64.99%tile
	  	50	%	 	50-64.99%tile	  	50	%	 	100	%
	 65-74.99%tile
	  	75	%	 	65-74.99%tile	  	75	%	 	150	%
	 75%tile or higher
	  	100	%	 	75%tile or higher	  	100	%	 	200	%

  

 - iii -

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