Document:

2006 Employee Equity Incentive Plan, as amended

 Exhibit 10.33 
 SYNOPSYS, INC. 
 2006 EMPLOYEE EQUITY INCENTIVE PLAN 

ADOPTED BY THE BOARD OF DIRECTORS: MARCH 3, 2006 
 APPROVED BY THE STOCKHOLDERS: APRIL 25, 2006 
 AMENDED BY THE BOARD OF DIRECTORS: DECEMBER 9, 2010

 AMENDMENT APPROVED BY THE STOCKHOLDERS: MARCH 24, 2011 
 TERMINATION DATE: MARCH 2, 2016 
  

	1.	GENERAL. 

 (a) Successor and Continuation
of Prior Plans. The Plan is intended as the successor and continuation of the (i) Synopsys, Inc. 1992 Stock Option Plan, (ii) Synopsys, Inc. 1998 Nonstatutory Stock Option Plan, and (iii) Synopsys, Inc. 2005 Assumed
Stock Option Plan (collectively, the “Prior Plans”). Following the Effective Date, no additional stock awards shall be granted under the Prior Plans. Any shares remaining available for issuance pursuant to the exercise of
options under the Prior Plans shall become available for issuance pursuant to Stock Awards granted hereunder. Any shares subject to outstanding stock awards granted under the Prior Plans that expire or terminate for any reason prior to exercise or
settlement shall become available for issuance pursuant to Stock Awards granted hereunder. On the Effective Date, all outstanding stock options granted under the Prior Plans shall be deemed to be stock options granted pursuant to the Plan, but shall
remain subject to the terms of the Prior Plans with respect to which they were originally granted. 
 (b) Eligible Award Recipients.
The persons eligible to receive Awards are Employees and Consultants. Non-employee Directors are not eligible to receive Awards under this Plan. 
 (c) Available Awards. The Plan provides for the grant of the following Stock Awards: (i) Incentive Stock Options, (ii) Nonstatutory Stock Options, (iii) Restricted Stock Awards,
(iv) Restricted Stock Unit Awards, (v) Stock Appreciation Rights, (vi) Performance Stock Awards, and (vii) Other Stock Awards. The Plan also provides for the grant of Performance Cash Awards. 

(d) Purpose. The Company, by means of the Plan, seeks to secure and retain the services of the group of persons eligible to receive Stock
Awards as set forth in Section 1(b), to provide incentives for such persons to exert maximum efforts for the success of the Company and any Affiliate and to provide a means by which such eligible recipients may be given an opportunity to
benefit from increases in value of the Common Stock through the granting of Stock Awards. 
  

	2.	DEFINITIONS. 

 As used in the Plan, the
following definitions shall apply to the capitalized terms indicated below: 
 (a) “Affiliate” means (i) any
corporation (other than the Company) in an unbroken chain of corporations ending with the Company, provided each corporation in the unbroken chain (other than the Company) owns, at the time of the determination, stock possessing fifty percent
(50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain, and (ii) any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company,
provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the
other corporations in such chain. The Board shall have the authority to determine (i) the time or times at which the ownership tests are applied, and (ii) whether “Affiliate” includes entities other than corporations within the
foregoing definition. 
 (b) “Award” means a Stock Award or a Performance Cash Award. 

(c) “Board” means the Board of Directors of the Company. 

(d) “Capitalization Adjustment” has the meaning ascribed to that term in Section 9(a). 

  
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 (e) “Cause” means, with respect to a Participant, the occurrence of any of the
following: (i) the Participant commits an act of dishonesty in connection with the Participant’s responsibilities as an Employee or Consultant; (ii) the Participant commits a felony or any act of moral turpitude; (iii) the
Participant commits any willful or grossly negligent act that constitutes gross misconduct and/or injures, or is reasonably likely to injure, the Company or any Affiliate; or (iv) the Participant willfully and materially violates (A) any
written policies or procedures of the Company or any Affiliate, or (B) the Participant’s obligations to the Company or any Affiliate. The determination that a termination is for Cause shall be made by the Company in its sole discretion.
Any determination by the Company that the Continuous Service of a Participant was terminated with or without Cause for the purposes of outstanding Awards held by such Participant shall have no effect upon any determination of the rights or
obligations of the Company or such Participant for any other purpose. 
 (f) “Change in Control” means the
occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events: 

(i) any Exchange Act Person becomes the Owner, directly or indirectly, of securities of the Company representing more than fifty
percent (50%) of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction. Notwithstanding the foregoing, a Change in Control shall not be deemed to occur
(A) on account of the acquisition of securities of the Company by an investor, any affiliate thereof or any other Exchange Act Person from the Company in a transaction or series of related transactions the primary purpose of which is to obtain
financing for the Company through the issuance of equity securities or (B) solely because the level of Ownership held by any Exchange Act Person (the “Subject Person”) exceeds the designated percentage threshold of the
outstanding voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided that if a Change in Control would occur (but for the operation of this sentence)
as a result of the acquisition of voting securities by the Company, and after such share acquisition, the Subject Person becomes the Owner of any additional voting securities that, assuming the repurchase or other acquisition had not occurred,
increases the percentage of the then outstanding voting securities Owned by the Subject Person over the designated percentage threshold, then a Change in Control shall be deemed to occur; 

(ii) there is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company and,
immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not Own, directly or indirectly, either (A) outstanding voting securities representing more
than fifty percent (50%) of the combined outstanding voting power of the surviving Entity in such merger, consolidation or similar transaction or (B) more than fifty percent (50%) of the combined outstanding voting power of the parent
of the surviving Entity in such merger, consolidation or similar transaction, in each case in substantially the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such transaction;

 (iii) the stockholders of the Company approve or the Board approves a plan of complete dissolution or liquidation of the
Company, or a complete dissolution or liquidation of the Company shall otherwise occur; 
 (iv) there is consummated a
sale, lease, exclusive license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated
assets of the Company and its Subsidiaries to an Entity, more than fifty percent (50%) of the combined voting power of the voting securities of which are Owned by stockholders of the Company in substantially the same proportions as their
Ownership of the outstanding voting securities of the Company immediately prior to such sale, lease, license or other disposition; or 
 (v) individuals who, on the date this Plan is adopted by the Board, are members of the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the members of
the Board; provided, however, that if the appointment or election (or nomination for election) of any new Board member was approved or recommended by a majority vote of the members of the Incumbent Board then still in office, such new member
shall, for purposes of this Plan, be considered as a member of the Incumbent Board. 

  
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 For avoidance of doubt, the term Change in Control shall not include a sale of assets, merger or other transaction
effected exclusively for the purpose of changing the domicile of the Company. 
 Notwithstanding the foregoing, to the extent that the Company determines
that any of the payments or benefits under this Plan that are payable in connection with a Change in Control constitute deferred compensation under Section 409A that may only be paid on a transaction that meets the standard of Treasury
Regulation Section 1.409A-3(a)(5), the foregoing definition of Change in Control shall apply only to the extent the transaction also meets the definition used for purposes of Treasury Regulation Section 1.409A-3(a)(5), that is, as defined
under Treasury Regulation Section 1.409A-3(i)(5). 
 Notwithstanding the foregoing or any other provision of this Plan, the definition of Change in
Control (or any analogous term) in an individual written agreement between the Company or any Affiliate and the Participant shall supersede the foregoing definition with respect to Stock Awards subject to such agreement; provided, however, that if
no definition of Change in Control or any analogous term is set forth in such an individual written agreement, the foregoing definition shall apply. 
 (g) “Code” means the Internal Revenue Code of 1986, as amended. 
 (h)
“Committee” means a committee of one (1) or more members of the Board to whom authority has been delegated by the Board in accordance with Section 3(c). 

(i) “Common Stock” means the common stock of the Company. 

(j) “Company” means Synopsys, Inc., a Delaware corporation. 

(k) “Consultant” means any person, including an advisor, who is (i) engaged by the Company or an Affiliate to render
consulting or advisory services and is compensated for such services, or (ii) serving as a member of the Board of Directors of an Affiliate and is compensated for such services. However, service solely as a Director, or payment of a fee for
such service, shall not cause a Director to be considered a “Consultant” for purposes of the Plan. 
 (l) “Continuous
Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee, Director or Consultant, is not interrupted or terminated. A change in the capacity in which the Participant renders service to
the Company or an Affiliate from a Consultant to Employee shall not terminate a Participant’s Continuous Service. Furthermore, a change in the entity for which the Participant renders such service, provided that there is no interruption or
termination of the Participant’s service with the Company or an Affiliate, shall not terminate a Participant’s Continuous Service. However, if the corporation for which a Participant is rendering service ceases to qualify as an Affiliate,
as determined by the Board in its sole discretion, such Participant’s Continuous Service shall be considered to have terminated on the date such corporation ceases to qualify as an Affiliate. A leave of absence shall be treated as Continuous
Service for purposes of vesting in an Award to such extent as may be provided in the Company’s leave of absence policy or in the written terms of the Participant’s leave of absence. 

(m) “Corporate Transaction” means the occurrence, in a single transaction or in a series of related transactions, of any
one or more of the following events: 
 (i) a sale or other disposition of all or substantially all, as determined by the
Board in its sole discretion, of the consolidated assets of the Company and its Subsidiaries; 
 (ii) a sale or other
disposition of at least ninety percent (90%) of the outstanding securities of the Company; 
 (iii) the consummation
of a merger, consolidation or similar transaction following which the Company is not the surviving corporation; or 

  
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 (iv) the consummation of a merger, consolidation or similar transaction following
which the Company is the surviving corporation but the shares of Common Stock outstanding immediately preceding the merger, consolidation or similar transaction are converted or exchanged by virtue of the merger, consolidation or similar transaction
into other property, whether in the form of securities, cash or otherwise. 
 (n) “Covered Employee” has the
meaning provided in Section 162(m)(3) of the Code and the regulations promulgated thereunder. 
 (o)
“Director” means a member of the Board. 
 (p) “Disability” means, with respect to a
Participant, the inability of such Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to
last for a continuous period of not less than twelve (12) months, as provided in Sections 22(e)(3) and 409A(a)(2)(c)(i) of the Code, and shall be determined by the Board on the basis of such medical evidence as the Board deems warranted
under the circumstances. 
 (q) “Effective Date” means the effective date of the Plan as specified in
Section 12. 
 (r) “Employee” means any person employed by the Company or an Affiliate. However, service
solely as a Director, or payment of a fee for such services, shall not cause a Director to be considered an “Employee” for purposes of the Plan. 
 (s) “Entity” means a corporation, partnership or other entity. 
 (t)
“Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 (u) “Exchange Act
Person” means any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act), except that “Exchange Act Person” shall not include (i) the Company or any Subsidiary
of the Company, (ii) any employee benefit plan of the Company or any Subsidiary of the Company or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary of the Company, (iii) an
underwriter temporarily holding securities pursuant to an offering of such securities, (iv) an Entity Owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their Ownership of stock of the
Company; or (v) any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act) that, as of the effective date of the Plan as set forth in Section 12, is the Owner, directly or
indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities. 
 (v) “Fair Market Value” means, as of any date, the value of the Common Stock determined as follows: 
 (i) If the Common Stock is listed on any established stock exchange or traded on any market system, the Fair Market Value of a share of Common Stock shall be the closing sales price for such stock (or the closing
bid, if no sales were reported) as quoted on such exchange or market (or the exchange or market with the greatest volume of trading in the Common Stock) on the date in question, as reported in The Wall Street Journal or such other source as the
Board deems reliable. Unless otherwise provided by the Board, if there is no closing sales price (or closing bid if no sales were reported) for the Common Stock on the date in question, then the Fair Market Value shall be the closing sales price (or
closing bid if no sales were reported) on the last preceding date for which such quotation exists. 
 (ii) In the absence
of such markets for the Common Stock, the Fair Market Value shall be determined by the Board in a manner that complies with Sections 409A and 422 of the Code. 
 (w) “Incentive Stock Option” means an Option which qualifies as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

  
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 (x) “Non-Employee Director” means a Director who either (i) is not a
current employee or officer of the Company or an Affiliate, does not receive compensation, either directly or indirectly, from the Company or an Affiliate for services rendered as a consultant or in any capacity other than as a Director (except for
an amount as to which disclosure would not be required under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act (“Regulation S-K”)), does not possess an interest in any other transaction
for which disclosure would be required under Item 404(a) of Regulation S-K, and is not engaged in a business relationship for which disclosure would be required pursuant to Item 404(b) of Regulation S-K; or (ii) is otherwise
considered a “non-employee director” for purposes of Rule 16b-3. 
 (y) “Nonstatutory Stock Option”
means an Option which does not qualify as an Incentive Stock Option. 
 (z) “Officer” means a person who is an
officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 

(aa) “Option” means an Incentive Stock Option or a Nonstatutory Stock Option to purchase shares of Common Stock granted
pursuant to the Plan. 
 (bb) “Option Agreement” means a written agreement between the Company and an Optionholder
evidencing the terms and conditions of an Option grant. Each Option Agreement shall be subject to the terms and conditions of the Plan. 

(cc) “Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person
who holds an outstanding Option. 
 (dd) “Other Stock Award” means an award based in whole or in part by reference
to the Common Stock which is granted pursuant to the terms and conditions of Section 7(e). 
 (ee) “Other Stock Award
Agreement” means a written agreement between the Company and a holder of an Other Stock Award evidencing the terms and conditions of an Other Stock Award grant. Each Other Stock Award Agreement shall be subject to the terms and
conditions of the Plan. 
 (ff) “Outside Director” means a Director who either (i) is not a current employee
of the Company or an “affiliated corporation” (within the meaning of Treasury Regulations promulgated under Section 162(m) of the Code), is not a former employee of the Company or an “affiliated corporation” who receives
compensation for prior services (other than benefits under a tax-qualified retirement plan) during the taxable year, has not been an officer of the Company or an “affiliated corporation,” and does not receive remuneration from the Company
or an “affiliated corporation,” either directly or indirectly, in any capacity other than as a Director, or (ii) is otherwise considered an “outside director” for purposes of Section 162(m) of the Code. 

(gg) “Own,” “Owned,” “Owner,” “Ownership” A person
or Entity shall be deemed to “Own,” to have “Owned,” to be the “Owner” of, or to have acquired “Ownership” of securities if such person or Entity, directly or indirectly, through any contract, arrangement,
understanding, relationship or otherwise, has or shares voting power, which includes the power to vote or to direct the voting, with respect to such securities. 
 (hh) “Participant” means a person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Award. 

(ii) “Performance Cash Award” means an award of cash granted pursuant to the terms and conditions of Section 7(d)(ii).

 (jj) “Performance Criteria” means one or more criteria that the Board shall select for purposes of establishing
the Performance Goals for a Performance Period. The Performance Criteria that shall be used to establish such Performance Goals may be based on any one of, or combination of, the following: (i) earnings per share; (ii) earnings before
interest, taxes and depreciation; (iii) earnings before interest, taxes, depreciation and amortization (EBITDA); (iv) net earnings; (v) return on equity; (vi) return on 

  
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assets, investment, or capital employed; (vii) operating margin; (viii) gross margin; (ix) operating income; (x) net income (before or after taxes); (xi) net operating
income; (xii) net operating income after tax; (xiii) pre- and after-tax income; (xiv) pre-tax profit; (xv) operating cash flow; (xvi) orders (including backlog) and revenue; (xvii) orders quality metrics;
(xviii) increases in revenue or product revenue; (xix) expenses and cost reduction goals; (xx) improvement in or attainment of expense levels; (xxi) improvement in or attainment of working capital levels; (xxii) market
share; (xxiii) cash flow; (xxiv) cash flow per share; (xxv) share price performance; (xxvi) debt reduction; (xxvii) implementation or completion of projects or processes; (xxviii) customer satisfaction;
(xxix) stockholders’ equity; (xxx) quality measures; (xxxi) “Non-GAAP Net Income” (meaning net income excluding (1) the amortization of acquired intangible assets; (2) the impact of stock-based compensation
expense; (3) in-process research and development expenses; (4) acquisition-related costs; (5) other non-recurring significant items, such as the effect of tax or legal settlements with the Internal Revenue Service and restructuring
charges; and (6) the income tax effect of non-GAAP pre-tax adjustments from the provision for income taxes); and (xxxii) any other measures of performance selected by the Board. Partial achievement of the specified criteria may result in
the payment or vesting corresponding to the degree of achievement as specified in the Stock Award Agreement or the written terms of a Performance Cash Award. The Board shall, in its sole discretion, define the manner of calculating the Performance
Criteria it selects to use for such Performance Period. 
 (kk) “Performance Goals” means, for a Performance
Period, the one or more goals established by the Board for the Performance Period based upon the Performance Criteria. Performance Goals may be set on a Company-wide basis, with respect to one or more business units, divisions, Affiliates, or
business segments, and in either absolute terms or relative to internally generated business plans, approved by the Board, the performance of one or more comparable companies or the performance of one or more relevant indices. To the extent
consistent with Section 162(m) of the Code and the regulations thereunder, the Board is authorized to make adjustments in the method of calculating the attainment of Performance Goals for a Performance Period as follows: (i) to exclude
restructuring and/or other nonrecurring charges (including but not limited to the effect of tax or legal settlements); (ii) to exclude exchange rate effects, as applicable, for non-U.S. dollar denominated net sales and operating earnings;
(iii) to exclude the effects of changes to generally accepted accounting standards required by the Financial Accounting Standards Board; (iv) to exclude the effects of any statutory adjustments to corporate tax rates; (v) to exclude
stock-based compensation expense determined under generally accepted accounting principles; (vi) to exclude any other unusual, non-recurring gain or loss or extraordinary item; (vii) to respond to, or in anticipation of, any unusual or
extraordinary corporate item, transaction, event or development; (viii) to respond to, or in anticipation of, changes in applicable laws, regulations, accounting principles, or business conditions; (ix) to exclude the dilutive effects of
acquisitions or joint ventures; (x) to assume that any business divested by the Company achieved performance objectives at targeted levels during the balance of a Performance Period following such divestiture; (xi) to exclude the effect of
any change in the outstanding shares of common stock of the Company by reason of any stock dividend or split, stock repurchase, reorganization, recapitalization, merger, consolidation, spin-off, combination or exchange of shares or other similar
corporate change, or any distributions to common shareholders other than regular cash dividends; (xii) to reflect a corporate transaction, such as a merger, consolidation, separation (including a spinoff or other distribution of stock or
property by a corporation), or reorganization (whether or not such reorganization comes within the definition of such term in Section 368 of the Code); (xiii) to reflect any partial or complete corporate liquidation; (xiv) to exclude
the effect of in-process research and development expenses; and (xv) to exclude the income tax effect of non-GAAP pre-tax adjustments from the provision for income taxes. The Board also retains the discretion to reduce or eliminate the
compensation or economic benefit due upon attainment of Performance Goals. 
 (ll) “Performance Period” means the
one or more periods of time, which may be of varying and overlapping durations, as the Committee may select, over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Participant’s right to and
the payment of a Performance Stock Award or a Performance Cash Award. 
 (mm) “Performance Stock Award” means
either a Restricted Stock Award or a Restricted Stock Unit Award granted pursuant to the terms and conditions of Section 7(d)(i). 

  
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 (nn) “Plan” means this Synopsys, Inc. 2006 Employee Equity Incentive
Plan. 
 (oo) “Prior Plans” means the Company’s 1992 Stock Option Plan, 1998 Nonstatutory Stock Option Plan,
and 2005 Assumed Stock Option Plan as in effect immediately prior to the effective date of the Plan. 
 (pp) “Restricted Stock
Award” means an award of shares of Common Stock which is granted pursuant to the terms and conditions of Section 7(a). 

(qq) “Restricted Stock Award Agreement” means a written agreement between the Company and a holder of a Restricted Stock
Award evidencing the terms and conditions of a Restricted Stock Award grant. Each Restricted Stock Award Agreement shall be subject to the terms and conditions of the Plan. 
 (rr) “Restricted Stock Unit Award” means a right to receive shares of Common Stock which is granted pursuant to the terms and conditions of Section 7(b). 

(ss) “Restricted Stock Unit Award Agreement” means a written agreement between the Company and a holder of a Restricted
Stock Unit Award evidencing the terms and conditions of a Restricted Stock Unit Award grant. Each Restricted Stock Unit Award Agreement shall be subject to the terms and conditions of the Plan. 

(tt) “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in
effect from time to time. 
 (uu) “Securities Act” means the Securities Act of 1933, as amended. 

(vv) “Stock Appreciation Right” means a right to receive the appreciation on Common Stock that is granted pursuant to the
terms and conditions of Section 7(c). 
 (ww) “Stock Appreciation Right Agreement” means a written agreement
between the Company and a holder of a Stock Appreciation Right evidencing the terms and conditions of a Stock Appreciation Right grant. Each Stock Appreciation Right Agreement shall be subject to the terms and conditions of the Plan. 

(xx) “Stock Award” means any right granted under the Plan, including an Option, a Stock Appreciation Right, a Restricted
Stock Award, a Restricted Stock Unit Award, a Performance Stock Award, or an Other Stock Award. 
 (yy) “Stock Award
Agreement” means a written agreement between the Company and a Participant evidencing the terms and conditions of a Stock Award grant. Each Stock Award Agreement shall be subject to the terms and conditions of the Plan. 

(zz) “Subsidiary” means, with respect to the Company, (i) any corporation of which more than fifty percent
(50%) of the outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, stock of any other class or classes of such corporation shall have or
might have voting power by reason of the happening of any contingency) is at the time, directly or indirectly, Owned by the Company, and (ii) any partnership in which the Company has a direct or indirect interest (whether in the form of voting
or participation in profits or capital contribution) of more than fifty percent (50%). 
 (aaa) “Ten Percent
Stockholder” means a person who Owns (or is deemed to Own pursuant to Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any
Affiliate. 
  

	3.	ADMINISTRATION. 

 (a) Administration by
Board. The Board shall administer the Plan unless and until the Board delegates administration of the Plan to a Committee, as provided in Section 3(c). 

  
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 (b) Powers of Board. The Board shall have the power, subject to, and within the limitations of,
the express provisions of the Plan: 
 (i) To construe and interpret the Plan and Awards granted under it, and to
establish, amend and revoke rules and regulations for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Stock Award Agreement or in the written terms of a
Performance Cash Award, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective. 
 (ii) To determine from time to time (1) which of the persons eligible under the Plan shall be granted Awards; (2) when and how each Award shall be granted; (3) what type or combination of types of
Award shall be granted; (4) the provisions of each Award granted (which need not be identical), including the time or times when a person shall be permitted to receive cash or Common Stock pursuant to a Award; and (5) the number of shares
of Common Stock with respect to which a Stock Award shall be granted to each such person. 
 (iii) To accelerate the time
at which an Award may first be exercised or the time during which an Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Award stating the time at which it may first be exercised or the time during
which it will vest. 
 (iv) To amend the Plan or an Award as provided in Section 10. Subject to the limitations of
applicable law, if any, the Board may amend the terms of any one or more Awards without the affected Participant’s consent if necessary to maintain the qualified status of the Award as an Incentive Stock Option or to bring the Award into
compliance with Section 409A of the Code. 
 (v) To terminate or suspend the Plan as provided in Section 11.

 (vi) Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote
the best interests of the Company and that are not in conflict with the provisions of the Plan. 
 (vii) To adopt such
procedures and sub-plans as are necessary or appropriate to permit participation in the Plan by individuals who are foreign nationals or employed outside the United States. 
 (c) Delegation To Committee.  
 (i) General. The Board may delegate some
or all of the administration of the Plan to a Committee or Committees. If administration is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board that
have been delegated to the Committee, including the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board shall thereafter be to the Committee or
subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may retain the authority to concurrently administer the Plan with the Committee and
may, at any time, re-vest in the Board some or all of the powers previously delegated. 
 (ii) Section 162(m) and
Rule 16b-3 Compliance. In the sole discretion of the Board, the Committee may consist solely of two or more Outside Directors, in accordance with Section 162(m) of the Code, and/or solely of two or more Non-Employee Directors, in
accordance with Rule 16b-3. In addition, the Board or the Committee, in its sole discretion, may (1) delegate to a committee of one or more members of the Board who need not be Outside Directors the authority to grant Awards to eligible
persons who are either (a) not then Covered Employees and are not expected to be Covered Employees at the time of recognition of income resulting from such Award, or (b) not persons with respect to whom the Company wishes to comply with
Section 162(m) of the Code, and/or (2) delegate to a committee of one or more members of the Board who need not be Non-Employee Directors the authority to grant Stock Awards to eligible persons who are not then subject to Section 16
of the Exchange Act. 
 (d) Delegation to an Officer. The Board may delegate to one or more Officers of the Company the authority
to do one or both of the following (i) designate Employees of the Company or any of its 

  
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Subsidiaries to be recipients of Options, Stock Appreciation Rights and, to the extent permitted by applicable law, other Stock Awards and the terms thereof, and (ii) determine the number of
shares of Common Stock to be subject to such Stock Awards granted to such Employees; provided, however, that the Board resolutions regarding such delegation shall specify the total number of shares of Common Stock that may be subject to the
Options granted by such Officer. Notwithstanding anything to the contrary in this Section 3(d), the Board may not delegate to an Officer authority to determine the Fair Market Value of the Common Stock pursuant to Section 2(v)(ii) above.

 (e) Effect of Board’s Decision. All determinations, interpretations and constructions made by the Board in good faith shall
not be subject to review by any person and shall be final, binding and conclusive on all persons. 
 (f) Cancellation and Re-Grant of
Stock Awards. Neither the Board nor any Committee shall have the authority to: (i) reprice any outstanding Stock Awards under the Plan, or (ii) cancel and re-grant any outstanding Stock Awards under the Plan, unless the stockholders of
the Company have approved such an action within twelve (12) months prior to such an event, provided, however, that this provision shall not prevent cancellations of Stock Awards upon expiration or termination of such Stock Awards and the return
of the underlying shares of Common Stock to the Plan for future issuance pursuant to Section 4(b) hereof. 
  

	4.	SHARES SUBJECT TO THE PLAN. 

 (a) Share
Reserve. Subject to the provisions of Section 9(a) relating to Capitalization Adjustments, the number of shares of Common Stock that may be issued pursuant to Stock Awards shall not exceed Fifty-Eight Million Four Hundred Ninety-Seven
Thousand Two Hundred Forty-Eight (58,497,248) shares of Common Stock in the aggregate. Subject to Section 4(b), the number of shares available for issuance under the Plan shall be reduced by: (i) one (1) share for each share of
stock issued pursuant to (A) an Option granted under Section 6, or (B) a Stock Appreciation Right granted under Section 7(c), and (ii) (A) one and thirty-six hundredths (1.36) shares for each share of Common Stock
issued prior to February 27, 2009 pursuant to a Restricted Stock Award, Restricted Stock Unit Award, or Other Stock Award granted under Section 7, (B) two and eighteen hundredths (2.18) shares for each share of Common Stock
issued on or after February 27, 2009 pursuant to a Restricted Stock Award, Restricted Stock Unit Award, or Other Stock Award granted under Section 7, and (C) 1.25 shares for each share of Common Stock issued on or after March 24,
2011 pursuant to a Restricted Stock Award, Restricted Stock Unit Award, or Other Stock Award granted under Section 7. Shares may be issued in connection with a merger or acquisition as permitted by NASDAQ Listing Rule 5635(c) or, if applicable,
NYSE Listed Company Manual Section 303A(8) and such issuance shall not reduce the number of shares available for issuance under the Plan. 
 (b) Reversion of Shares to the Share Reserve.  
 (i) Shares Available For
Subsequent Issuance. If any (i) Stock Award shall for any reason expire or otherwise terminate, in whole or in part, without having been exercised in full, (ii) shares of Common Stock issued to a Participant pursuant to a Stock Award
are forfeited to or repurchased by the Company at their original exercise or purchase price pursuant to the Company’s reacquisition or repurchase rights under the Plan, including any forfeiture or repurchase caused by the failure to meet a
contingency or condition required for the vesting of such shares, or (iii) Stock Award is settled in cash, then the shares of Common Stock not issued under such Stock Award, or forfeited to or repurchased by the Company, shall revert to and
again become available for issuance under the Plan. To the extent there is issued a share of Common Stock pursuant to a Stock Award that counted as either (A) one and thirty-six hundredths (1.36) shares, (B) two and eighteen
hundredths (2.18) shares, or (C) 1.25 shares, as applicable, against the number of shares available for issuance under the Plan pursuant to Section 4(a) and such share of Common Stock again becomes available for issuance under the
Plan pursuant to this Section 4(b)(i) on or after March 24, 2011, then the number of shares of Common Stock available for issuance under the Plan shall increase by 1.25 shares (regardless of when such share was issued). 

(ii) Shares Not Available for Subsequent Issuance. If any shares subject to a Stock Award are not delivered to a Participant
because the Stock Award is exercised through a reduction of 

  
 9 

 
shares subject to the Stock Award (i.e., “net exercised”) or an appreciation distribution in respect of a Stock Appreciation Right is paid in shares of Common Stock, the number
of shares subject to the Stock Award that are not delivered to the Participant shall not remain available for subsequent issuance under the Plan. If any shares subject to a Stock Award are not delivered to a Participant because such shares are
withheld in satisfaction of the withholding of taxes incurred in connection with the exercise of an Option, Stock Appreciation Right, or the issuance of shares under a Restricted Stock Award or Restricted Stock Unit Award, the number of shares that
are not delivered to the Participant shall not remain available for subsequent issuance under the Plan. If the exercise price of any Stock Award is satisfied by tendering shares of Common Stock held by the Participant (either by actual delivery or
attestation), then the number of shares so tendered shall not remain available for subsequent issuance under the Plan. 
 (c) Incentive
Stock Option Limit. Notwithstanding anything to the contrary in this Section 4, subject to the provisions of Section 9(a) relating to Capitalization Adjustments the aggregate maximum number of shares of Common Stock that may be issued
pursuant to the exercise of Incentive Stock Options shall be Fifty-Eight Million Four Hundred Ninety-Seven Thousand Two Hundred Forty-Eight (58,497,248) shares of Common Stock. 

(d) Source of Shares. The stock issuable under the Plan shall be shares of authorized but unissued or reacquired Common Stock, including
shares repurchased by the Company on the open market. 
  

	5.	ELIGIBILITY. 

 (a) Eligibility for Specific
Stock Awards. Incentive Stock Options may be granted only to Employees. Stock Awards other than Incentive Stock Options may be granted to Employees and Consultants; provided, however, that Nonstatutory Stock Options and Stock Appreciation
Rights may not be granted to Employees and Consultants who are providing Continuous Services only to any “parent” of the Company, as such term is defined in Rule 405 promulgated under the Securities Act, unless such Stock Awards
comply with the distribution requirements of Section 409A of the Code or unless the stock underlying such Stock Awards is otherwise determined to be “service recipient stock” under Section 409A of the Code. Stock Awards under
this Plan may not be granted to non-employee Directors. 
 (b) Ten Percent Stockholders. An Employee who is also a Ten Percent
Stockholder shall not be granted an Incentive Stock Option unless the exercise price of such Option is at least one hundred ten percent (110%) of the Fair Market Value of the Common Stock on the date of grant and the Option has a term of no
more than five (5) years from the date of grant and is not exercisable after the expiration of five (5) years from the date of grant. 
 (c) Section 162(m) Limitation on Annual Awards. Subject to the provisions of Section 9(a) relating to Capitalization Adjustments no Employee shall be eligible to be granted Stock Awards whose value
is determined by reference to an increase over an exercise or strike price of at least one hundred percent (100%) of the Fair Market Value of the Common Stock on the date the Stock Award is granted covering more than one million
(1,000,000) shares of Common Stock during any calendar year. 
  

	6.	OPTION PROVISIONS. 

 Each Option shall be in
such form and shall contain such terms and conditions as the Board shall deem appropriate. All Options shall be separately designated Incentive Stock Options or Nonstatutory Stock Options at the time of grant, and, if certificates are issued, a
separate certificate or certificates shall be issued for shares of Common Stock purchased on exercise of each type of Option. The provisions of separate Options need not be identical; provided, however, that each Option Agreement shall
include (through incorporation of provisions hereof by reference in the Option or otherwise) the substance of each of the following provisions: 
 (a) Term. No Option shall be exercisable after the expiration of seven (7) years from the date of grant, or such shorter period specified in the Option Agreement; provided, however, that an
Incentive Stock Option granted to a Ten Percent Stockholder shall be subject to the provisions of Section 5(b). 

  
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 (b) Exercise Price of an Incentive Stock Option. Subject to the provisions of Section 5(b)
regarding Ten Percent Stockholders, the exercise price of each Incentive Stock Option shall be not less than one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Option on the date the Option is granted.
Notwithstanding the foregoing, an Incentive Stock Option may be granted with an exercise price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner
consistent with the provisions of Sections 409A and 424(a) of the Code. 
 (c) Exercise Price of a Nonstatutory Stock Option.
The exercise price of each Nonstatutory Stock Option shall be not less than one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Option on the date the Option is granted. Notwithstanding the foregoing, a
Nonstatutory Stock Option may be granted with an exercise price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner consistent with the provisions of
Sections 409A and 424(a) of the Code. 
 (d) Consideration. The purchase price of Common Stock acquired pursuant to the
exercise of an Option shall be paid, to the extent permitted by applicable law and as determined by the Board in its sole discretion, by any combination of the methods of payment set forth below. The Board shall have the authority to grant Options
that do not permit all of the following methods of payment (or otherwise restrict the ability to use certain methods) and to grant Options that require the consent of the Company to utilize a particular method of payment. The methods of payment
permitted by this Section 6(d) are: 
 (i) by cash or check; 

(ii) pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance
of Common Stock, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds; 

(iii) by delivery to the Company (either by actual delivery or attestation) of shares of Common Stock; 

(iv) by a “net exercise” arrangement, if the option is a Nonstatutory Stock Option, pursuant to which the Company will
reduce the number of shares of Common Stock issued upon exercise by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price; provided, however, the Company shall accept a cash or other
payment from the Participant to the extent of any remaining balance of the aggregate exercise price not satisfied by such reduction in the number of whole shares to be issued; provided, however, that shares of Common Stock will no longer be
outstanding under an Option and will not be exercisable thereafter to the extent that (i) shares are used to pay the exercise price pursuant to the “net exercise,” (ii) shares are delivered to the Participant as a result of such
exercise, and (iii) shares are withheld to satisfy tax withholding obligations; or 
 (v) in any other form of legal
consideration that may be acceptable to the Board. 
 (e) Transferability of Options. The Board may, in its sole discretion, impose
such limitations on the transferability of Options as the Board shall determine. In the absence of such a determination by the Board to the contrary, the following restrictions on the transferability of Options shall apply: 

(i) Restrictions on Transfer. An Option shall not be transferable except by will or by the laws of descent and distribution
and shall be exercisable during the lifetime of the Optionholder only by the Optionholder. 
 (ii) Domestic Relations
Orders. Notwithstanding the foregoing, an Option may be transferred pursuant to a domestic relations order; provided, however, that if an Option is an Incentive Stock Option, such Option may be deemed to be a Nonstatutory Stock Option as
a result of such transfer. 
 (iii) Beneficiary Designation. Notwithstanding the foregoing, the Optionholder may, by
delivering written notice to the Company, in a form provided by or otherwise satisfactory to the Company and any broker designated by the Company to effect Option exercises, designate a third party who, in the event of the death of the Optionholder,
shall thereafter be entitled to exercise the Option. In the absence of such a designation, the executor or administrator of the Optionholder’s estate shall be entitled to exercise the Option. 

  
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 (f) Vesting of Options Generally. The total number of shares of Common Stock subject to an
Option may vest and therefore become exercisable in periodic installments that may or may not be equal. The Option may be subject to such other terms and conditions on the time or times when it may or may not be exercised (which may be based on
performance or other criteria) as the Board may deem appropriate. The vesting provisions of individual Options may vary. The provisions of this Section 6(f) are subject to any Option provisions governing the minimum number of shares of Common
Stock as to which an Option may be exercised. 
 (g) Termination of Continuous Service. In the event that an Optionholder’s
Continuous Service terminates (other than for Cause or upon the Optionholder’s death or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of
termination of Continuous Service) but only within such period of time ending on the earlier of (i) the date three (3) months following the termination of the Optionholder’s Continuous Service (or such longer or shorter period
specified in the Option Agreement), or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination of Continuous Service, the Optionholder does not exercise his or her Option within the time
specified herein or in the Option Agreement (as applicable), the Option shall terminate. 
 (h) Extension of Termination Date. An
Optionholder’s Option Agreement may provide that if the exercise of the Option following the termination of the Optionholder’s Continuous Service (other than upon the Optionholder’s death or Disability) would be prohibited at any time
solely because the issuance of shares of Common Stock would violate the registration requirements under the Securities Act, then the Option shall terminate on the earlier of (i) the expiration of a period of three (3) months after the
termination of the Optionholder’s Continuous Service (or such longer or shorter period specified in the Option Agreement) during which the exercise of the Option would not be in violation of such registration requirements, or (ii) the
expiration of the term of the Option as set forth in the Option Agreement. 
 (i) Disability of Optionholder. In the event that an
Optionholder’s Continuous Service terminates as a result of the Optionholder’s Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of
termination of Continuous Service), but only within such period of time ending on the earlier of (i) the date twelve (12) months following such termination of Continuous Service (or such longer or shorter period specified in the Option
Agreement), or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination of Continuous Service, the Optionholder does not exercise his or her Option within the time specified herein or in the
Option Agreement (as applicable), the Option shall terminate. 
 (j) Death of Optionholder. In the event that (i) an
Optionholder’s Continuous Service terminates as a result of the Optionholder’s death, or (ii) the Optionholder dies within the period (if any) specified in the Option Agreement after the termination of the Optionholder’s
Continuous Service for a reason other than death, then the Option may be exercised (to the extent the Optionholder was entitled to exercise such Option as of the date of death) by the Optionholder’s estate, by a person who acquired the right to
exercise the Option by bequest or inheritance or by a person designated to exercise the option upon the Optionholder’s death, but only within the period ending on the earlier of (i) the date twelve (12) months following the date of
death (or such longer or shorter period specified in the Option Agreement), or (ii) the expiration of the term of such Option as set forth in the Option Agreement. If, after the Optionholder’s death, the Option is not exercised within the
time specified herein or in the Option Agreement (as applicable), the Option shall terminate. 
 (k) Termination for Cause. In the
event that an Optionholder’s Continuous Service is terminated for Cause, the Option shall terminate immediately and cease to remain outstanding and the Option shall cease to be exercisable with respect to any shares of Common Stock (whether
vested or unvested) at the time of such termination. 

  
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	7.	PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS. 

(a) Restricted Stock Awards. Each Restricted Stock Award Agreement shall be in such form and shall contain such terms and conditions as the
Board shall deem appropriate. To the extent consistent with the Company’s Bylaws, at the Board’s election, shares of Common Stock may be (i) held in book entry form subject to the Company’s instructions until any restrictions
relating to the Restricted Stock Award lapse; or (ii) evidenced by a certificate, which certificate shall be held in such form and manner as determined by the Board. The terms and conditions of Restricted Stock Award Agreements may change from
time to time, and the terms and conditions of separate Restricted Stock Award Agreements need not be identical; provided, however, that each Restricted Stock Award Agreement shall include (through incorporation of the provisions hereof by
reference in the agreement or otherwise) the substance of each of the following provisions: 
 (i) Consideration. A
Restricted Stock Award may be awarded in consideration for (i) past or future services rendered to the Company or an Affiliate, or (ii) any other form of legal consideration that may be acceptable to the Board, in its sole discretion, and
permissible under applicable law. 
 (ii) Vesting. Shares of Common Stock awarded under a Restricted Stock Award
Agreement may be subject to forfeiture to the Company in accordance with a vesting schedule to be determined by the Board. 

(iii) Termination of Participant’s Continuous Service. In the event a Participant’s Continuous Service terminates,
the Company may receive via a forfeiture condition, any or all of the shares of Common Stock held by the Participant which have not vested as of the date of termination of Continuous Service under the terms of the Restricted Stock Award Agreement.

 (iv) Transferability. Rights to acquire shares of Common Stock under the Restricted Stock Award Agreement shall
be transferable by the Participant only upon such terms and conditions as are set forth in the Restricted Stock Award Agreement, as the Board shall determine in its sole discretion, so long as Common Stock awarded under the Restricted Stock Award
Agreement remains subject to the terms of the Restricted Stock Award Agreement. 
 (b) Restricted Stock Unit Awards. Each
Restricted Stock Unit Award Agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. The terms and conditions of Restricted Stock Unit Award Agreements may change from time to time, and the
terms and conditions of separate Restricted Stock Unit Award Agreements need not be identical; provided, however, that each Restricted Stock Unit Award Agreement shall include (through incorporation of the provisions hereof by reference in
the agreement or otherwise) the substance of each of the following provisions: 
 (i) Consideration. A Restricted
Stock Unit Award may be awarded in consideration for (i) past or future services rendered to the Company or an Affiliate, or (ii) any other form of legal consideration that may be acceptable to the Board, in its sole discretion, and
permissible under applicable law. 
 (ii) Vesting. At the time of the grant of a Restricted Stock Unit Award, the
Board may impose such restrictions or conditions to the vesting of the Restricted Stock Unit Award as it, in its sole discretion, deems appropriate. 
 (iii) Payment. A Restricted Stock Unit Award may be settled by the delivery of shares of Common Stock, their cash equivalent, any combination thereof or in any other form of consideration, as determined by
the Board and contained in the Restricted Stock Unit Award Agreement. 
 (iv) Termination of Participant’s
Continuous Service. Except as otherwise provided in the applicable Restricted Stock Unit Award Agreement, such portion of the Restricted Stock Unit Award that has not vested will be forfeited upon the Participant’s termination of Continuous
Service. 

  
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 (c) Stock Appreciation Rights. Each Stock Appreciation Right Agreement shall be in such form
and shall contain such terms and conditions as the Board shall deem appropriate. The terms and conditions of Stock Appreciation Right Agreements may change from time to time, and the terms and conditions of separate Stock Appreciation Right
Agreements need not be identical; provided, however, that each Stock Appreciation Right Agreement shall include (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of each of the following
provisions: 
 (i) Term. No Stock Appreciation Right shall be exercisable after the expiration of seven
(7) years from the date of grant, or such shorter period specified in the Stock Appreciation Right Agreement. 
 (ii)
Strike Price. Each Stock Appreciation Right will be denominated in shares of Common Stock equivalents. The strike price of each Stock Appreciation Right shall not be less than one hundred percent (100%) of the Fair Market Value of the
Common Stock equivalents subject to the Stock Appreciation Right on the date of grant. 
 (iii) Calculation of
Appreciation. The appreciation distribution payable on the exercise of a Stock Appreciation Right will be not greater than an amount equal to the excess of (i) the aggregate Fair Market Value (on the date of the exercise of the Stock
Appreciation Right) of a number of shares of Common Stock equal to the number of share of Common Stock equivalents in which the Participant is vested under such Stock Appreciation Right, and with respect to which the Participant is exercising the
Stock Appreciation Right on such date, over (ii) the strike price that is determined by the Board on the date of grant of the Stock Appreciation Right. 
 (iv) Vesting. At the time of the grant of a Stock Appreciation Right, the Board may impose such restrictions or conditions to the vesting of such Stock Appreciation Right as it, in its sole discretion, deems
appropriate. 
 (v) Exercise. To exercise any outstanding Stock Appreciation Right, the Participant must provide
written notice of exercise to the Company in compliance with the provisions of the Stock Appreciation Right Agreement evidencing such Stock Appreciation Right. 
 (vi) Payment. The appreciation distribution in respect of a Stock Appreciation Right may be paid in Common Stock, in cash, in any combination of the two or in any other form of consideration, as determined
by the Board and set forth in the Stock Appreciation Right Agreement evidencing such Stock Appreciation Right. 
 (vii)
Termination of Continuous Service. In the event that a Participant’s Continuous Service terminates (other than for Cause or upon the Participant’s death or Disability), the Participant may exercise his or her Stock Appreciation
Right (to the extent that the Participant was entitled to exercise such Stock Appreciation Right as of the date of termination of Continuous Service) but only within such period of time ending on the earlier of (i) the date three
(3) months following the termination of the Participant’s Continuous Service (or such longer or shorter period specified in the Stock Appreciation Right Agreement), or (ii) the expiration of the term of the Stock Appreciation Right as
set forth in the Stock Appreciation Right Agreement. If, after termination of Continuous Service, the Participant does not exercise his or her Stock Appreciation Right within the time specified herein or in the Stock Appreciation Right Agreement (as
applicable), the Stock Appreciation Right shall terminate. 
 (viii) Extension of Termination Date. A
Participant’s Stock Appreciation Right Agreement may provide that if the exercise of the Stock Appreciation Right following the termination of the Participant’s Continuous Service (other than upon the Participant’s death or
Disability) would be prohibited at any time solely because the issuance of shares of Common Stock would violate the registration requirements under the Securities Act, then the Stock Appreciation Right shall terminate on the earlier of (i) the
expiration of a period of three (3) months after the termination of the Participant’s Continuous Service (or such longer or shorter period specified in the Stock Appreciation Right Agreement) during which the exercise of the Stock
Appreciation Right would not be in violation of such registration requirements, or (ii) the expiration of the term of the Stock Appreciation Right as set forth in the Stock Appreciation Right Agreement. 

(ix) Disability of Participant. In the event that a Participant’s Continuous Service terminates as a result of the
Participant’s Disability, the Participant may exercise his or her Stock Appreciation Right (to the extent that the Participant was entitled to exercise such Stock Appreciation Right as of the date of termination of Continuous Service), but only
within such period of time ending on the earlier of (i) the date twelve (12) months following such termination of Continuous Service (or such 

  
 14 

 
longer or shorter period specified in the Stock Appreciation Right Agreement), or (ii) the expiration of the term of the Stock Appreciation Right as set forth in the Stock Appreciation Right
Agreement. If, after termination of Continuous Service, the Participant does not exercise his or her Stock Appreciation Right within the time specified herein or in the Stock Appreciation Right Agreement (as applicable), the Stock Appreciation Right
shall terminate. 
 (x) Death of Participant. In the event that (i) a Participant’s Continuous Service
terminates as a result of the Participant’s death, or (ii) the Participant dies within the period (if any) specified in the Stock Appreciation Right Agreement after the termination of the Participant’s Continuous Service for a reason
other than death, then the Stock Appreciation Right may be exercised (to the extent the Participant was entitled to exercise such Stock Appreciation Right as of the date of death) by the Participant’s estate, by a person who acquired the right
to exercise the Stock Appreciation Right by bequest or inheritance or by a person designated to exercise the Stock Appreciation Right upon the Participant’s death, but only within the period ending on the earlier of (i) the date twelve
(12) months following the date of death (or such longer or shorter period specified in the Stock Appreciation Right Agreement), or (ii) the expiration of the term of such Stock Appreciation Right as set forth in the Stock Appreciation
Right Agreement. If, after the Participant’s death, the Stock Appreciation Right is not exercised within the time specified herein or in the Stock Appreciation Right Agreement (as applicable), the Stock Appreciation Right shall terminate.

 (xi) Termination for Cause. In the event that a Participant’s Continuous Service is terminated for Cause,
the Stock Appreciation Right shall terminate immediately and cease to remain outstanding and the Stock Appreciation Right shall cease to be exercisable with respect to any shares of Common Stock (whether vested or unvested) at the time of such
termination. 
 (d) Performance Awards.  
 (i) Performance Stock Awards. A Performance Stock Award is either a Restricted Stock Award or Restricted Stock Unit Award that may be granted, may vest, or may be exercised based upon the attainment during a
Performance Period of certain Performance Goals. A Performance Stock Award may, but need not, require the completion of a specified period of Continuous Service. The length of any Performance Period, the Performance Goals to be achieved during the
Performance Period, and the measure of whether and to what degree such Performance Goals have been attained shall be conclusively determined by the Committee in its sole discretion. The maximum benefit to be received by any Participant in any
calendar year attributable to Performance Stock Awards described in this Section 7(d)(i) shall not exceed the value of one million (1,000,000) shares of Common Stock. 

(ii) Performance Cash Awards. A Performance Cash Award is a cash award that may be granted or paid upon the attainment during
a Performance Period of certain Performance Goals. A Performance Cash Award may also require the completion of a specified period of Continuous Service. The length of any Performance Period, the Performance Goals to be achieved during the
Performance Period, and the measure of whether and to what degree such Performance Goals have been attained shall be conclusively determined by the Committee in its sole discretion. The maximum benefit to be received by any Participant in any
calendar year attributable to Performance Cash Awards described in this Section 7(d)(ii) shall not exceed two million dollars ($2,000,000). 
 (e) Other Stock Awards. Other forms of Stock Awards valued in whole or in part by reference to, or otherwise based on, Common Stock may be granted either alone or in addition to Stock Awards provided for
under Section 6 and the preceding provisions of this Section 7. Subject to the provisions of the Plan, the Board shall have sole and complete authority to determine the persons to whom and the time or times at which such Other Stock Awards
will be granted, the number of shares of Common Stock (or the cash equivalent thereof) to be granted pursuant to such Other Stock Awards and all other terms and conditions of such Other Stock Awards. No Other Stock Award may have a term in excess of
seven (7) years from the date of grant. 

  
 15 

	8.	MISCELLANEOUS. 

 (a) Use of Proceeds.
Proceeds from the sale of shares of Common Stock pursuant to Stock Awards shall constitute general funds of the Company. 
 (b)
Stockholder Rights. No Participant shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares of Common Stock subject to such Stock Award unless and until such Participant has exercised the Stock
Award pursuant to its terms and the issuance of the Common Stock has been entered into the books and records of the Company. 
 (c) No
Employment or Other Service Rights. Nothing in the Plan, any Stock Award Agreement or other instrument executed thereunder or in connection with any Award granted pursuant thereto shall confer upon any Participant any right to continue to serve
the Company or an Affiliate in the capacity in effect at the time the Award was granted or shall affect the right of the Company or an Affiliate to terminate (i) the employment of an Employee with or without notice and with or without cause,
(ii) the service of a Consultant pursuant to the terms of such Consultant’s agreement with the Company or an Affiliate, or (iii) the service of a Director pursuant to the Bylaws of the Company or an Affiliate, and any applicable
provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be. 
 (d)
Incentive Stock Option $100,000 Limitation. To the extent that the aggregate Fair Market Value (determined at the time of grant) of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by any
Optionholder during any calendar year (under all plans of the Company and any Affiliates) exceeds one hundred thousand dollars ($100,000), the Options or portions thereof that exceed such limit (according to the order in which they were granted)
shall be treated as Nonstatutory Stock Options, notwithstanding any contrary provision of the applicable Option Agreement(s). 
 (e)
Investment Assurances. The Company may require a Participant, as a condition of exercising or acquiring Common Stock under any Stock Award, (i) to give written assurances satisfactory to the Company as to the Participant’s knowledge
and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating,
alone or together with the purchaser representative, the merits and risks of exercising the Stock Award; and (ii) to give written assurances satisfactory to the Company stating that the Participant is acquiring Common Stock subject to the Stock
Award for the Participant’s own account and not with any present intention of selling or otherwise distributing the Common Stock. The foregoing requirements, and any assurances given pursuant to such requirements, shall be inoperative if
(i) the issuance of the shares upon the exercise or acquisition of Common Stock under the Stock Award has been registered under a then currently effective registration statement under the Securities Act, or (ii) as to any particular
requirement, a determination is made by counsel for the Company that such requirement need not be met in the circumstances under the then applicable securities laws. The Company may, upon advice of counsel to the Company, place legends on stock
certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the Common Stock. 

(f) Securities Law Compliance. The Company shall seek to obtain from each regulatory commission or agency having jurisdiction over the Plan
such authority as may be required to grant Stock Awards and to issue and sell shares of Common Stock upon exercise of the Stock Awards; provided, however, that this undertaking shall not require the Company to register under the Securities
Act the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any such Stock Award. If, after reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the authority that counsel for the
Company deems necessary for the lawful issuance and sale of Common Stock under the Plan, the Company shall be relieved from any liability for failure to issue and sell Common Stock upon exercise of such Stock Awards unless and until such authority
is obtained. A Participant shall not be eligible for the grant of a Stock Award or the subsequent issuance of Common Stock pursuant to the Stock Award if such grant or issuance would be in violation of any applicable securities laws. 

  
 16 

 (g) Withholding Obligations. To the extent provided by the terms of a Stock Award Agreement,
the Company may, in its sole discretion, satisfy any federal, state or local tax withholding obligation relating to a Stock Award by any of the following means (in addition to the Company’s right to withhold from any compensation paid to the
Participant by the Company) or by a combination of such means: (i) causing the Participant to tender a cash payment; (ii) withholding shares of Common Stock from the shares of Common Stock issued or otherwise issuable to the Participant in
connection with the Stock Award; provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law (or such lower amount as may be necessary to avoid classification
of the Stock Award as a liability for financial accounting purposes); (iii) withholding payment from any amounts otherwise payable to the Participant; or (iv) by such other method as may be set forth in the Stock Award Agreement.

 (h) Electronic Delivery. Any reference herein to a “written” agreement or document shall include any agreement or
document delivered electronically, filed publicly with at www.sec.gov (or any successor website thereto) or posted on the Company’s intranet. 
 (i) Deferrals. To the extent permitted by applicable law, the Board, in its sole discretion, may determine that the delivery of Common Stock or the payment of cash, upon the exercise, vesting or settlement
of all or a portion of any Award may be deferred and may establish programs and procedures for deferral elections to be made by Participants. Deferrals by Participants will be made in accordance with Section 409A of the Code. Consistent with
Section 409A of the Code, the Board may provide for distributions while a Participant is still an employee or otherwise providing services to the Company. The Board is authorized to make deferrals of Awards and determine when, and in what
annual percentages, Participants may receive payments, including lump sum payments, following the Participant’s termination of Continuous Service, and implement such other terms and conditions consistent with the provisions of the Plan and in
accordance with applicable law. 
 (j) Compliance with Section 409A. To the extent that the Board determines that any Award
granted hereunder is subject to Section 409A of the Code, the agreement evidencing such Award shall incorporate the terms and conditions necessary to avoid the consequences specified in Section 409A(a)(1) of the Code. To the extent
applicable, the Plan and Award agreements shall be interpreted in accordance with Section 409A of the Code. Notwithstanding anything to the contrary in this Plan (and unless the Award agreement specifically provides otherwise), if the shares of
the Company’s Common Stock are publicly traded and a Participant holding an Award that constitutes “deferred compensation” under Section 409A of the Code is a “specified employee” for purposes of Section 409A of
the Code, then to the extent necessary to avoid adverse tax consequences to the Participant under Section 409A of the Code, no distribution or payment of any amount under such Award shall be made as a result of a termination of such
Participant’s service before a date that is six (6) months following the date of such Participant’s “separation from service” (as defined in Section 409A of the Code without regard to alternative definitions thereunder)
or, if earlier, the date of the Participant’s death. 
 (k) Non-Exempt Employees. No Stock Award granted to an Employee who is
a non-exempt employee for purposes of the Fair Labor Standards Act of 1938, as amended, shall be first exercisable for any shares of Common Stock until at least six (6) months following the date of grant. Notwithstanding the foregoing,
consistent with the provisions of the Worker Economic Opportunity Act, (i) in the event of the Participant’s death or Disability, (ii) upon a Corporate Transaction in which such Stock Award is not assumed, continued, or substituted,
(iii) upon a Change in Control, or (iv) upon the Participant’s retirement (as such term may be defined in the Participant’s Stock Award agreement or in another applicable agreement or in accordance with the Company’s then
current employment policies and guidelines), any vested Stock Awards may be exercised earlier than six (6) months following the date of grant. The foregoing provision is intended to operate so that any income derived by a non-exempt employee in
connection with the exercise or vesting of a Stock Award will be exempt from his or her regular rate of pay. 

  
 17 

 (l) No Obligation to Notify or Minimize Taxes. The Company shall have no duty or obligation to
any Participant to advise such holder as to the time or manner of exercising such Stock Award. Furthermore, the Company shall have no duty or obligation to warn or otherwise advise such holder of a pending termination or expiration of a Stock Award
or a possible period in which the Stock Award may not be exercised. The Company has no duty or obligation to minimize the tax consequences of a Stock Award to the holder of such Stock Award. 

(m) Corporate Action Constituting Grant of Stock Awards. Corporate action constituting a grant by the Company of a Stock Award to any
Participant shall be deemed completed as of the date of such corporate action, unless otherwise determined by the Board, regardless of when the instrument, certificate, or letter evidencing the Stock Award is communicated to, or actually received or
accepted by, the Participant. 
  

	9.	ADJUSTMENTS UPON CHANGES IN COMMON STOCK; CORPORATE TRANSACTIONS. 

 (a) Capitalization Adjustments. If any change is made in, or other events occur with respect to, the Common Stock subject to the Plan or subject to any Stock Award after the effective date of the Plan set
forth in Section 12 without the receipt of consideration by the Company (through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, stock split, liquidating dividend,
combination of shares, exchange of shares, change in corporate structure or other transaction not involving the receipt of consideration by the Company (each a “Capitalization Adjustment”)), the Board shall appropriately
adjust: (i) the class(es) and maximum number of securities subject to the Plan pursuant to Section 4(a), (ii) the class(es) and maximum number of securities that may be issued pursuant to the exercise of Incentive Stock Options
pursuant to Section 4(c), (iii) the class(es) and maximum number of securities that may be awarded to any person pursuant to Sections 5(c) and 7(d)(i), and (iv) the class(es) and number of securities and price per share of stock
subject to outstanding Stock Awards. The Board shall make such adjustments, and its determination shall be final, binding and conclusive. (Notwithstanding the foregoing, the conversion of any convertible securities of the Company shall not be
treated as a transaction “without receipt of consideration” by the Company.) 
 (b) Dissolution or Liquidation. In the
event of a dissolution or liquidation of the Company, all outstanding Stock Awards (other than Stock Awards consisting of vested and outstanding shares of Common Stock not subject to a forfeiture condition or the Company’s right of repurchase)
shall terminate immediately prior to the completion of such dissolution or liquidation, and the shares of Common Stock subject to the Company’s repurchase option or subject to the forfeiture condition may be repurchased or reacquired by the
Company notwithstanding the fact that the holder of such Stock Award is providing Continuous Service, provided, however, that the Board may, in its sole discretion, cause some or all Stock Awards to become fully vested, exercisable and/or no
longer subject to repurchase or forfeiture (to the extent such Stock Awards have not previously expired or terminated) before the dissolution or liquidation is completed but contingent on its completion. 

(c) Corporate Transaction. The following provisions shall apply to Stock Awards in the event of a Corporate Transaction unless otherwise
provided in a written agreement between the Company or any Affiliate and the holder of the Stock Award: 
 (i) Stock
Awards May Be Assumed. In the event of a Corporate Transaction, any surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company) may assume or continue any or all Stock Awards outstanding under
the Plan or may substitute similar stock awards for Stock Awards outstanding under the Plan (including, but not limited to, awards to acquire the same consideration paid to the stockholders of the Company pursuant to the Corporate Transaction), and
any reacquisition or repurchase rights held by the Company in respect of Common Stock issued pursuant to Stock Awards may be assigned by the Company to the successor of the Company (or the successor’s parent company, if any), in connection with
such Corporate Transaction. A surviving corporation or acquiring corporation may choose to assume or continue only a portion of a Stock Award or substitute a similar stock award for only a portion of a Stock Award. The terms of any assumption,
continuation or substitution shall be set by the Board in accordance with the provisions of Section 3(b). 

  
 18 

 (ii) Stock Awards Held by Current Participants. In the event of a Corporate
Transaction in which the surviving corporation or acquiring corporation (or its parent company) does not assume or continue any or all outstanding Stock Awards or substitute similar stock awards for such outstanding Stock Awards, then with respect
to Stock Awards that have not been assumed, continued or substituted and that are held by Participants whose Continuous Service has not terminated prior to the effective time of the Corporate Transaction (referred to as the “Current
Participants”), the vesting of such Stock Awards (and, if applicable, the time at which such Stock Awards may be exercised) shall (contingent upon the effectiveness of the Corporate Transaction) be accelerated in full to a date prior to
the effective time of such Corporate Transaction as the Board shall determine (or, if the Board shall not determine such a date, to the date that is five (5) days prior to the effective time of the Corporate Transaction), and such Stock Awards
shall terminate if not exercised (if applicable) at or prior to the effective time of the Corporate Transaction, and any reacquisition or repurchase rights held by the Company with respect to such Stock Awards shall lapse (contingent upon the
effectiveness of the Corporate Transaction). No vested Restricted Stock Unit Award shall terminate pursuant to this Section 9(c)(ii) without being settled by delivery of shares of Common Stock, their cash equivalent, any combination thereof, or
in any other form of consideration, as determined by the Board, prior to the effective time of the Corporate Transaction. 

(iii) Stock Awards Held by Former Participants. In the event of a Corporate Transaction in which the surviving corporation or
acquiring corporation (or its parent company) does not assume or continue any or all outstanding Stock Awards or substitute similar stock awards for such outstanding Stock Awards, then with respect to Stock Awards that have not been assumed,
continued or substituted and that are held by persons other than Current Participants, the vesting of such Stock Awards (and, if applicable, the time at which such Stock Award may be exercised) shall not be accelerated and such Stock Awards (other
than a Stock Award consisting of vested and outstanding shares of Common Stock not subject to the Company’s right of repurchase) shall terminate if not exercised (if applicable) prior to the effective time of the Corporate Transaction;
provided, however, that any reacquisition or repurchase rights held by the Company with respect to such Stock Awards shall not terminate and may continue to be exercised notwithstanding the Corporate Transaction. No vested Restricted Stock
Unit Award shall terminate pursuant to this Section 9(c)(iii) without being settled by delivery of shares of Common Stock, their cash equivalent, any combination thereof, or in any other form of consideration, as determined by the Board, prior
to the effective time of the Corporate Transaction. 
 (iv) Payment for Stock Awards in Lieu of Exercise.
Notwithstanding the foregoing, in the event a Stock Award will terminate if not exercised prior to the effective time of a Corporate Transaction, the Board may provide, in its sole discretion, that the holder of such Stock Award may not exercise
such Stock Award but will receive a payment, in such form as may be determined by the Board, equal in value to the excess, if any, of (i) the value of the property the holder of the Stock Award would have received upon the exercise of the Stock
Award, over (ii) any exercise price payable by such holder in connection with such exercise. 
 (d) Change in Control. A Stock
Award may be subject to additional acceleration of vesting and exercisability upon or after a Change in Control as may be provided in the Stock Award Agreement for such Stock Award or as may be provided in any other written agreement between the
Company or any Affiliate and the Participant. A Stock Award may vest as to all or any portion of the shares subject to the Stock Award (i) immediately upon the occurrence of a Change in Control, whether or not such Stock Award is assumed,
continued, or substituted by a surviving or acquiring entity in the Change in Control, or (ii) in the event a Participant’s Continuous Service is terminated, actually or constructively, within a designated period following the occurrence
of a Change in Control. In the absence of such provisions, no such acceleration shall occur. 
 10. AMENDMENT OF THE PLAN AND STOCK AWARDS.

 (a) Amendment of Plan. Subject to the limitations of applicable law, the Board at any time, and from time to time, may amend
the Plan. However, stockholder approval shall be required for any amendment of the Plan that either (i) materially increases the number of shares of Common Stock available for issuance under the Plan, (ii) materially expands the class of
individuals eligible to receive 

  
 19 

 
Awards under the Plan, (iii) materially increases the benefits accruing to Participants under the Plan or materially reduces the price at which shares of Common Stock may be issued or
purchased under the Plan, (iv) materially extends the term of the Plan, or (v) expands the types of Awards available for issuance under the Plan, but only to the extent required by applicable law or listing requirements. 

(b) Stockholder Approval. The Board, in its sole discretion, may submit any other amendment to the Plan for stockholder approval, including,
but not limited to, amendments to the Plan intended to satisfy the requirements of Section 162(m) of the Code and the regulations thereunder regarding the exclusion of performance-based compensation from the limit on corporate deductibility of
compensation paid to Covered Employees. 
 (c) Contemplated Amendments. It is expressly contemplated that the Board may amend the
Plan in any respect the Board deems necessary or advisable to provide eligible Employees with the maximum benefits provided or to be provided under the provisions of the Code and the regulations promulgated thereunder relating to Incentive Stock
Options and/or to bring the Plan and/or Incentive Stock Options granted under it into compliance therewith. 
 (d) Amendment of
Awards. The Board, at any time and from time to time, may amend the terms of any one or more Awards (either directly or by amending the Plan), including, but not limited to, amendments to provide terms more favorable than previously provided in
the Stock Award Agreement or the written terms of a Performance Cash Award, subject to any specified limits in the Plan that are not subject to Board discretion; provided, however, that the rights under any Award outstanding at the time of such
amendment shall not be impaired by any such amendment unless (i) the Company requests the consent of the affected Participant, and (ii) such Participant consents in writing. 
 11. TERMINATION OR SUSPENSION OF THE PLAN. 
 (a) Plan Term. The Board may suspend or
terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on the day before the tenth (10th) anniversary of the earlier of (i) the date the Plan is adopted by the Board, or (ii) the date the Plan is approved
by the stockholders of the Company. No Awards may be granted under the Plan while the Plan is suspended or after it is terminated. 
 (b)
No Impairment of Rights. Suspension or termination of the Plan shall not impair rights and obligations under any Award granted while the Plan is in effect except with the written consent of the affected Participant. 

12. EFFECTIVE DATE OF PLAN. 
 The Plan shall
become effective upon approval by the stockholders at the 2006 Annual Meeting as of the Effective Date. 
 13. CHOICE OF LAW. 

The law of the State of Delaware shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to
that state’s conflict of laws rules. 

  
 20Severance and Non-Competition Agreement

 Exhibit 10.1 
 SEVERANCE AND NON-COMPETITION AGREEMENT 
 THIS SEVERANCE and
NON-COMPETITION AGREEMENT (the “Agreement”) is entered into effective as of this 4th day of May, 2009 by and among Sterling Bancshares, Inc., a Texas corporation (“Bancshares”), Sterling Bank, a banking
association chartered by the State of Texas and an indirect subsidiary of Bancshares (“Bank”) and Michelle L. Mahfouz (the “Executive Officer”). 
 WHEREAS, the Executive Officer is being employed by Bancshares and/or Bank in a position in which he will have access to, and will gain knowledge of, confidential and proprietary information of
Bancshares, Bank, Sterling Bancorporation, Inc. and their respective affiliates (each, a “Sterling Entity,” and together, the “Sterling Entities”), and the parties wish to ensure that the Executive Officer will enjoy access to
the Sterling Entities’ existing and future confidential and proprietary information; 
 WHEREAS, the Sterling
Entities’ confidential and proprietary information constitutes a substantial asset of the Sterling Entities that the parties mutually wish to protect; 
 WHEREAS, the Executive Officer is already subject to certain confidentiality obligations under Texas law, and the parties reasonably believe that it would be difficult, if not impossible, for the
Executive Officer to refrain from using or disclosing the confidential and proprietary information of the Sterling Entities in the event that the Executive Officer were to work for any other financial institution after terminating his/her employment
with Bancshares and/or the Bank; 
 WHEREAS, the parties mutually desire to achieve a level of certainty and
predictability concerning the post-employment activities the Executive Officer may perform, and when; 
 WHEREAS, the
parties mutually desire to compensate the Executive Officer for any restriction on his ability to engage in certain competitive activities; and 
 WHEREAS, the parties mutually desire to ensure that the Executive Officer receives certain severance benefits in the event that his employment is terminated by Bancshares and Bank without cause, or
following a “Change of Control” (as herein defined) under the conditions set forth herein. 
 NOW, THEREFORE,
in consideration of the foregoing and the premises, representations, and mutual covenants hereinafter set forth, the parties do hereby agree as follows: 
 1. Definitions. The following words and terms shall have the meanings set forth below for purposes of this Agreement: 

(a) Cause. A termination of employment is for “Cause” only if it is due to such serious intentional
misconduct on the part of the Executive Officer as described below: 
 (i) fraud, misappropriation or embezzlement related to
any of the Sterling Entities on the part of the Executive Officer; 

 (ii) the conviction of the Executive Officer of any felony or crime involving moral
turpitude; 
 (iii) a material violation by the Executive Officer of any applicable federal or state banking law or regulation
that has had, or may have, a material adverse effect on any Sterling Entity; 
 (iv) a material breach of any corporate policy
including, without limitation, the Code of Business Conduct and Ethics and the Code of Ethics for Senior Officers, as applicable to the Executive Officer which, if correctable, remains uncorrected for 30 days following written notice to the
Executive Officer by a Sterling Entity of such breach; 
 (v) a material breach of this Agreement which, if correctable,
remains uncorrected for 30 days following written notice to the Executive Officer by a Sterling Entity of such breach; or 

(vi) the willful and continued failure by the Executive Officer to perform substantially the Executive Officer’s duties on behalf
of any Sterling Entity, other than any such failure resulting from the Executive Officer’s incapacity due to Disability, which failure is not promptly abated after a demand for substantial performance is delivered to the Executive Officer by
Bancshares or other applicable Sterling Entity that specifically identifies the manner in which the Executive Officer has not substantially performed the Executive Officer’s duties and gives the Executive Officer a reasonable period of cure.

 For purposes of this definition, any act or failure to act on the Executive Officer’s part shall be considered “material” or
“willful” if done or omitted to be done by the Executive Officer otherwise than in good faith and without reasonable belief that the Executive Officer’s action or omission was in the best interest of the Sterling Entities. 

(b) Change of Control. A “Change of Control” shall be deemed to have occurred if: 

(i) any “person” or “group” (within the meanings of Sections 13(d) or 14(d)(2) of the Securities Exchange Act of
1934) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of securities of Bancshares representing thirty-five percent (35%) or more of the combined voting power
of Bancshares’ then outstanding securities eligible to vote for the election of the board of directors of Bancshares (the “Bancshares Voting Securities”); provided, however, that the event described in this paragraph (i) shall
not be deemed to be a Change of Control by virtue of any of the following acquisitions: (A) by Bancshares, (B) by any employee benefit plan (or related trust) sponsored or maintained by Bancshares, (C) by any underwriter temporarily
holding securities pursuant to an offering of such securities, or (D) pursuant to a Non-Qualifying Transaction (as defined in paragraph (ii) below); 
 (ii) the consummation of a merger, consolidation, share exchange or similar form of corporate transaction involving Bancshares that requires the approval of Bancshares’ shareholders, whether for such
transaction or the issuance of securities in the transaction (a “Business Combination”), unless immediately following such Business 

  
 - 2 -

 
Combination: (A) more than seventy-five percent (75%) of the total voting power of (x) the corporation resulting from such Business Combination (the “Surviving
Corporation”), or (y) if applicable, the ultimate parent corporation that directly or indrectly has beneficial ownership of 100% of the voting securities eligible to elect directors of the Surviving Corporation (the “Parent
Corporation”), is represented by Bancshares Voting Securities that were outstanding immediately prior to such Business Combination (or if applicable, is represented by shares into which such Bancshares Voting Securities were converted pursuant
to such Business Combination), and such voting power among the holders thereof is in substantially the same proportion of the voting power of such Bancshares Voting Securities among the holders thereof immediately prior the Business Combination,
(B) no person (other than any employee benefit plan (or related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation), is or becomes the beneficial owner, directly or indrectly, of fifty-percent (50%) or
more of the total voting power of the outstanding voting securities eligibile to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) and (C) at least the majority of the board of
directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the consummation of the Business Combination were Incumbent Directors (as herein defined) at the time the board of directors of
Bancshares approved the execution of the intial agreement providing for such Business Combination (any Business Combinaion which satisfies all of the criteria specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying
Transaction”); 
 (iii) the individuals who constitute the board of directors of Bancshares as of the date of this
Agreement (the “Incumbent Directors”) shall cease for any reason to constitute at least a majority of the members of the board of directors of Bancshares, provided that any person becoming a director subsequent to the date of this
Agreement, whose election or nomination was approved by a vote of at least a majority of the Incumbent Directors then comprising the board of directors of Bancshares shall be, for purposes of this Agreement, considered an Incumbent Director;
provided, however, that no individual initially elected or nominated as a director of Bancshares as a result of an actual or threatened contest with respect to directors or as a result of any other actual or threatened solicitation of proxies (or
consents) by or on behalf of any person other than the board of directors shall be deemed to be an Incumbent Director; 
 (iv)
the consummation of a sale of all or substantially all of the assets of Bancshares; or 
 (v) the shareholders of Bancshares
shall approve a plan of complete liquidation or dissolution of Bancshares. 
 (c) Change of Control
Termination. A “Change of Control Termination” shall mean the termination of the Executive Officer’s employment with the Sterling Entities (or any Parent Corporation or Surviving Corporation), within a two-year period commencing
on the effective date of a Change of Control, due to (i) an Involuntary Termination or (ii) a termination for Good Reason. 
 (d) Disability. “Disability” means the Executive Officer’s permanent and total disability as defined in any long-term disability plan sponsored by Bancshares and

  
 - 3 -

 
applicable to the Executive Officer or in the absence of any such long-term disability plan, the term “Disability” shall mean the absence of the Executive Officer from his or her duties
with the Sterling Entities on a full-time basis for at least twelve (12) consecutive weeks as a result of the Executive Officer’s incapacity due to illness, accident, injury, physical or mental incapacity or other disability. 

(e) General Release of Liability. A “General Release of Liability” means the legal document in which the
Executive Officer, in exchange for benefits under this Agreement, releases the Sterling Entities, their affiliates, their directors, officers, employees and agents, their employee benefit plans and the fiduciaries and agents of said plans from
liability and damages in any way related to the Executive Officer’s employment with or separation from the Sterling Entities. 
 (f) Good Reason. “Good Reason” means, without the Executive Officer’s express written consent, the occurrence of any one of the following events after a Change of Control:

 (i) (A) any change in the duties or responsibilities of the Executive Officer that is inconsistent in any material and
adverse respect with the Executive Officer’s position, duties, responsibilities or status with the Sterling Entities immediately prior to such Change of Control or (B) a material and adverse change in the Executive Officer’s titles or
offices with the Sterling Entities (or any Parent Corporation or Surviving Corporation) and including, if applicable, membership or position on a board of directors with Bancshares or Bank (or their respective successor), as in effect immediately
prior to such Change of Control; 
 (ii) a reduction of ten percent (10%) or more in the Executive Officer’s rate of
annual base salary or annual target bonus opportunity (including any material and adverse change in the formula for such annual bonus target) as in effect immediately prior to such Change of Control or as the same may be increased from time to time
thereafter, or the failure of the applicable Sterling Entity (or any Parent Corporation or Surviving Corporation) to pay any such amounts when due; 
 (iii) any requirement that the Executive be based anywhere more than twenty-five (25) miles from the office where the Executive Officer was located at the time of the Change of Control, if such
relocation increases the Executive Officer’s commute by more than twenty-five (25) miles; 
 (iv) the failure of the
Sterling Entities (or any Parent Corporation or Surviving Corporation) to continue in effect benefits and a total compensation package including, without limitation, employee benefit plans, compensation plans, welfare benefit plans, material fringe
benefit plans, vacation policies and other similar benefit plans providing not less than ninety percent (90%) of the Executive Officer’s total compensation package in the twelve (12) months immediately preceding the Change of Control;
and 
 (v) the failure of Bancshares to obtain the assumption (and, if applicable, guarantee) agreement from any Surviving
Corporation (and, if applicable, Parent Corporation) as contemplated in Section 13(b). 

  
 - 4 -

 (g) Involuntary Termination. An “Involuntary Termination”
means an involuntary termination of employment of the Executive Officer by the Sterling Entities (or any successor thereto including a Parent Corporation or Surviving Corporation); provided, however, that “Involuntary Termination” shall
not include termination of employment by reason of death, Disability or Cause. 
 2. Compensation and Stock Award. In
consideration of the services to be provided by the Executive and the covenants and agreements contained in Sections 3, 4 and 5 of this Agreement, Bancshares shall award the Executive Officer a $10,000 cash bonus during the first available payroll
period of 2009 following employment and two thousand (2,000) shares of Bancshares’ common stock. These shares of common stock shall be awarded under the terms of Bancshares’ 2003 Stock Incentive and Compensation Plan (or any successor
plan) and shall be awarded on the first month of the quarter following the date of hire. 
 3. Non-Competition. Executive
Officer acknowledges that the Sterling Entities are providing Executive with access to Confidential Information as defined below. Ancillary to Executive Officer’s agreement not to disclose Confidential Information, to protect the Confidential
Information described below, and in consideration for Executive Officer receiving access to this Confidential Information, being entitled to Severance Payments, having rights after a Change in Control, and other benefits provided in this Agreement,
the Sterling Entities and Executive Officer agree to the following non-competition provisions. The Executive Officer shall not, during the time that he is employed by any Sterling Entity and, in the event of a termination of employment for Cause, an
Involuntary Termination, or a termination of employment by the Executive Officer, for a period of twelve (12) months after any such termination: 
 (a) directly or indirectly, own, manage, operate, control, invest or acquire an equity interest in any financial institution (or any affiliate thereof including, without limitation, any bank holding
company or financial holding company) with $10 billion or less in assets located or conducting business in any county in Texas in which Executive Officer has performed any material services for a Sterling Entity in the twelve months preceding
termination of employment (the “Territory”) which competes with the business conducted by any Sterling Entity; 
 (b) engage in or carry on, either directly or indirectly, whether for himself or as an employee, officer, director, agent, consultant, proprietor, partner, stockholder, member, joint venturer, investor,
or other paid participant, any business with, on behalf of or as a financial institution within the Territory which competes with the business conducted by any Sterling Entity; 

(c) request or induce any customer, depositor or borrower of any Sterling Entity or any other person which has a business
relationship with any Sterling Entity to curtail, cancel, or otherwise discontinue its business or relationship with any such Sterling Entity; or 
 (d) publicly denigrate or in any manner undertake to publicly discredit any of the Sterling Entities or any person or operation associated with any Sterling Entity. 

  
 - 5 -

 Notwithstanding the foregoing, nothing contained in this Agreement shall prohibit the Executive Officer from
owning any issue of stock or securities of any corporation the securities of which are either traded on a national securities exchange or quoted on the automated quotation system of the National Association of Securities Dealers, Inc. and which is
engaged in a business which is in competition with any Sterling Entity so long as (i) the Executive Officer is not deemed to be an “affiliate” of such entity as such term is used in paragraphs (c) and (d) of Rule 145 under
the Securities Act of 1933 and (ii) the Executive Officer and members of his immediate family do not own or hold more than one percent (1%) of any voting securities of such entity. 

Executive Officer warrants that Executive Officer is not a party to any other restrictive agreement except as found under the doctrine of
common law duty limiting Executive Officer’s activities for the Sterling Entities. Executive Officer further warrants that at the time of the signing of this Agreement, Executive Officer knows of no written or oral contract or of any other
impediment that would inhibit or prohibit employment with the Sterling Entities and that Executive will not knowingly use any trade secret, confidential information, or other intellectual property right of any other party in the performance of
Executive Officer’s duties hereunder. Executive Officer shall hold the Sterling Entities harmless from any and all suits and claims arising out of any breach of such restrictive agreement or contracts. 

4. Non-Solicitation. The Executive Officer shall not, during the time that he is employed by any Sterling Entity, and for a period
of twelve (12) months thereafter, directly or indirectly solicit the employment of any officers or employees of the Sterling Entities, provided, however, that this Agreement shall not prohibit (a) any advertisement or general solicitation
that is not specifically targeted at such officers or employees, or (b) soliciting the employment of any such officer or employee who has been terminated by any Sterling Entity. 

5. Confidentiality. The Executive Officer shall never disclose to any person, or use or otherwise exploit for his/her own benefit
or for the benefit of any person other than a Sterling Entity, any Confidential Information (as defined below). The Executive Officer shall have no obligation to keep confidential any Confidential Information if and to the extent disclosure thereof
is specifically required by law, judicial or governmental order or other legal process; provided, however, that in the event such disclosure is required, the Executive Officer shall, to the extent reasonably practicable, provide Bancshares with
reasonably prompt notice of such requirement, so that Bancshares may seek an appropriate protective order or waive compliance with this provision with respect to such disclosure. In the event that a protective or other remedy is not obtained, or
Bancshares waives compliance with the provisions of this Section 5, the Executive Officer will furnish only that portion of the Confidential Information which is legally required and exercise commercially reasonable efforts to obtain assurances
that confidential treatment will be accorded to the Confidential Information. 
 For purposes of this Agreement,
“Confidential Information” shall mean any confidential information with respect to the conduct or details of the business of Sterling and any Sterling Entity including, without limitation, information relating to its commercial and
retail banking services, mortgage banking services, commercial and consumer loans, merchant credit card services, investments and capital market transactions and strategies, its methods of operation, customer and borrower lists, customer account
information, deposits, outstanding loans, products (existing and proposed), prices, fees, costs, plans, technology, inventions, trade secrets, know-how, 

  
 - 6 -

 
software, marketing methods, policies, personnel, suppliers, competitors, markets or other specialized information or propriety matters of the Sterling Entities. The term “Confidential
Information” does not include, and there shall be no obligation hereunder with respect to, information that (a) is generally available to the public on the date of this Agreement or (b) becomes generally available to the public other
than as a result of a disclosure by the Executive Officer in violation of this Agreement. 
 6. Severance Payments. In
the event of an Involuntary Termination by the Sterling Entities prior to a Change of Control or a Change of Control Termination, then Bancshares, or its successor, shall pay and provide, or cause Bank or its successor to pay and provide, in
exchange for the execution of a General Release of Liability the following to the Executive Officer: 
 (a) two
(2) years’ base pay payable in equal installments each regular pay period during the two (2) years following the termination. For purposes of this calculation, base pay is the rate of annual salary being paid on the day immediately
preceding the termination (or the Change of Control in the event of a Change of Control Termination); 
 (b) an
annual bonus, payable upon each anniversary date of the effective date of termination, for two (2) years following the termination in an amount equal to the highest annual bonus amount paid to that particular Executive Officer during the three
(3) years immediately preceding the termination (or the Change of Control in the event of a Change of Control Termination); 
 (c) the use of a cell phone or Blackberry provided by Bancshares or Bank for the two (2) years following the termination if either of these items were being provided to the Executive Officer
immediately prior to the termination (or the Change of Control in the event of a Change of Control Termination); 

(d) welfare benefits or, to the extent that such benefits cannot be lawfully provided or the Executive Officer otherwise
does not qualify for coverage, the cost of providing welfare benefits, such as medical, dental, vision, Employee Assistance Plan, and flexible spending accounts for the two (2) years following the termination that are equal to or greater that
those provided to the Executive Officer immediately prior to the termination (or the Change of Control in the event of a Change of Control Termination); 
 (e) life insurance benefits or, to the extent that such benefits cannot be lawfully provided or the Executive Officer otherwise does not qualify for coverage, the cost of providing life insurance benefits
for the two (2) years following the termination that are equal to or greater than those provided to the Executive Officer immediately prior to the termination (or the Change of Control in the event of a Change of Control Termination);

 (f) club dues paid for the two (2) years following the termination that are equal to or greater that
those provided to the Executive Officer immediately prior to the termination (or the Change of Control in the event of a Change of Control Termination); 
 (g) continuation of banking services without service charge or at a reduced charge for the two (2) years following the termination if any of these banking products were being utilized by the
Executive Officer immediately prior to the termination (or the Change of Control in the event of a Change of Control Termination): 
 (h) payment of reasonable and customary business-related expenses incurred through the last day of active employment if submitted in writing to Bancshares, Bank or their respective successor within ninety
(90) days following the effective date of termination; 

  
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 (i) payment of up to $20,000 in fees to one or more executive search firms
for purposes of job placement efforts for the Executive Officer for the two (2) years following the termination; 
 (j) to the extent permitted by applicable law, participation in Bancshares’ Deferred Compensation Program (or similar program if termination follows a Change of Control) for the two (2) years
following the termination; 
 (k) to the extent permitted by applicable law and the applicable terms of any plan,
participation in Bancshares’ Employee Stock Purchase Program (or similar program if termination follows a Change of Control) for the two (2) years following the termination; 

(l) to the extent permitted by applicable law, participation in Bancshares’ Employee Savings Plan (or similar program
if termination follows a Change of Control) for the two (2) years following the termination; 
 (m) to the
extent permitted by applicable law and the applicable terms of any plan, immediate and full vesting upon termination in all Bancshares plans (or similar plans if termination follows a Change of Control) that require a vesting period including,
without limitation, all unvested contributions to the Bancshares’ Employee Savings Plan; and 
 (n) to the
extent permitted by applicable law and the terms of any applicable plan, all outstanding stock options shall fully vest and become exercisable and all restrictions and forfeiture provisions applicable to any outstanding stock awards shall lapse and
terminate. 
 If, following a Change of Control, the Executive Officer is retained by the Sterling Entities, Surviving
Corporation or Parent Corporation, as the case may be, and a Change of Control Termination occurs within the two-year period following the effective date of a Change of Control, then the Executive Officer shall receive the benefits as described
above for a period of not less than one (1) year or the balance of such two (2) year period, whichever is greater, following the Change of Control. If the Executive Officer accepts an employment offer from the Surviving Corporation or
Parent Corporation, or otherwise remains employed by a Sterling Entity following a Change of Control, regardless of whether the circumstances of such employment would justify a termination of employment by the Executive Officer for Good Reason, and
remains so employed for a period of two (2) years or more following the effective date of the Change of Control, then the Executive Officer shall no longer be entitled to terminate his/her employment for Good Reason and receive any severance
benefits under this Section 6 on the basis of a termination for Good Reason. The Executive shall continue to be entitled to receive severance benefits under this Agreement as a result of an Involuntary Termination. 

  
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 Notwithstanding any other provision of this Section 6 to the contrary, the aggregate
present value (measured as of the Change of Control) of the benefits to which the Executive Officer becomes entitled under this Section 6 at the time of the Executive Officer’s termination of employment will in no event exceed in amount
the dollar amount (the “Benefit Limit”) which yields the Executive Officer the greatest after-tax amount of benefits under this Section 6 after taking into account any excise tax imposed under Section 4999 of the Internal Revenue
Code of 1986, as amended (the “Code”), on the payments and benefits which are provided to the Executive Officer under this Section 6 or which constitute other parachute payments. For purposes of applying the Benefit Limit to the
Executive’s benefits under this Section 6, the value of the Executive’s non-competition covenant under Section 3 shall be determined through independent appraisal by a nationally-recognized independent accounting firm acceptable
to both the Executive Officer and Bancshares and obtained solely at Bancshares’ cost, and a portion of the Executive Officer’s Section 6 benefits shall, to the extent of such appraised value, be specifically allocated as reasonable
compensation for the Executive Officer’s non-competition covenant. For purposes of this paragraph, “Present Value” means the value, determined as of the date of the Change of Control, of any payment in the nature of
compensation to which the Executive Officer becomes entitled in connection with a Change of Control or the Executive Officer’s subsequent termination including the benefits to which the Executive Officer becomes entitled under this
Section 6, provided, however, that such present value of each such payment will be determined in accordance with the provisions of Section 280G of the Code, utilizing a discount rate equal to one hundred twenty percent (120%) of the
applicable federal rate in effect at the time of such determination, compounded semi-annually to the effective date of the change of control. In addition, for purposes of this paragraph of this Section 6, “Other Parachute
Payment” means any payment in the nature of compensation (other than the benefits to which the Executive Officer becomes entitled under this Section 6) which are made to the Executive Officer in connection with the change of control
and which qualify as parachute payments within the meaning of Section 280G(b)(2) and the Treasury Regulations issued thereunder. 
 7. Other Agreements. 
 (a) Subject to the immediately
following sentence, the parties to this Agreement further agree that to the extent the restrictive covenants and agreements contained in Sections 3, 4 or 5 are held by any court or other constituted legal authority to be void or otherwise
unenforceable in any particular area or jurisdiction, then the parties shall consider this Agreement to be amended and modified so as to eliminate therefrom that particular area or jurisdiction as to which such restrictive covenant is so held to be
void or otherwise unenforceable, and, as to all other areas and jurisdictions covered by this Agreement, the terms and provisions hereof shall remain in full force and effect as originally written. The parties to this Agreement further agree that to
the extent any of the foregoing restrictive covenants or agreements should be held by any court or other constituted legal authority to be effective in any particular area or jurisdiction only if said covenant is modified to limit its duration or
scope, then the parties shall consider such covenant to be amended and modified with respect to that particular area or jurisdiction so as to comply with the order of any such court or other constituted legal authority, and, as to all other
jurisdictions or political subdivisions thereof, such covenant shall remain in full force and effect as originally written. 

  
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 (b) The Executive Officer acknowledges that each of the restrictions set
forth in Sections 3, 4 and 5 is reasonable as to duration and geographic scope. 
 (c) The Executive Officer
understands that the Sterling Entities will not have an adequate remedy at law for the breach or threatened breach by the Executive Officer of any one or more of the covenants set forth in this Agreement and agrees that in the event of any such
breach or threatened breach, Bancshares may, in addition to the other remedies which may be available to it, file a suit in equity to enjoin the Executive Officer from the breach or threatened breach of such covenants. 

8. No Mitigation. In no event shall the Executive Officer be obligated to seek other employment or take other action by way of
mitigation of the amounts payable to the Executive Officer under any of the provisions of this Agreement and such amounts shall not be reduced whether or not Executive Officer obtains other employment. 

9. Notice. Any notice, or other communication provided or permitted in this Agreement must be given in writing and may be served
by depositing same in the United States mail in certified or registered form, postage prepaid, addressed to the party or parties to be notified with return receipt requested, or by delivering the notice in person to such party or parties or by a
nationally recognized overnight service. Unless actual receipt is required by any provision of this Agreement, notice deposited in the United States mail in the manner herein prescribed shall be effective on dispatch. For purposes of notice, the
address of the Executive Officer shall be the address on file with Bancshares as the Executive Officer’s primary residence. 
 The address of Bancshares and any Sterling Entity shall be: 
 Sterling Bancshares,
Inc. 
 10260 Westheimer 
 Houston, Texas 77040 
 Attn: President, Chairman & Chief Executive Officer

 Bancshares shall have the right from time to time and at any time to change its address and shall have the right to specify
as its address any other address by giving at least ten (10) days’ written notice to the Executive Officer. The Executive Officer shall have the right from time to time and at any time to change his address and shall have the right to
specify as his address any other address by giving at least ten (10) days’ written notice to Bancshares. 
 10.
Controlling Law. This Agreement shall be governed by, construed and enforced in accordance with the laws of the State of Texas (without giving effect to conflicts of laws principles thereof). 

11. Entire Agreement. Except as provided in Bancshares’ Code of Business Conduct and Ethics, Code of Ethics for Senior
Officers, the written benefit plans and programs of the Sterling Entities or any signed agreement hereafter executed between any Sterling Entity and the Executive Officer, this Agreement contains the entire agreement of the parties with respect to
the subject matter hereof. The Agreement may not be changed orally or by action or inaction, but only by an agreement in writing signed by the party against whom enforcement of any waiver, change, modification, extension or discharge is sought. The
headings of this Agreement are intended solely for the convenience of reference and should be given no effect in the construction or interpretation of this Agreement. 

  
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 12. Severability. If any provision of the Agreement is rendered or declared illegal
or unenforceable by reason of any existing or subsequently enacted legislation or by decree of a court of last resort, the parties shall promptly meet and negotiate substitute provisions for those rendered or declared illegal or unenforceable, but
all remaining provisions of this Agreement shall remain in full force and effect. 
 13. Benefit and Burden; Assignment.

 (a) This Agreement shall not be terminated by any Change of Control. In the event of any Business Combination,
the provisions of this Agreement shall be binding upon the Surviving Corporation, and such Surviving Corporation shall be treated as Bancshares hereunder. 
 (b) Bancshares agrees that in connection with any Business Combination, it will cause any successor entity to Bancshares and/or Bank to unconditionally assume, by written instrument delivered to the
Executive Officer (or his/her beneficiary or estate), all of the obligations of Bancshares hereunder. Failure of Bancshares to obtain such assumption prior to the effective date of any such Business Combination that constitutes a Change of Control
shall be a breach of this Agreement and shall constitute Good Reason hereunder entitling Executive Officer to compensation and other benefits from Bancshares in the same amount and on the same terms as Executive Officer would be entitled hereunder
upon a Change of Control Termination. For purposes of implementing the foregoing, the date upon which any such Business Combination becomes effective shall be deemed to be the date Good Reason occurs and shall be the effective date of termination
hereunder if requested by the Executive Officer. 
 (c) This Agreement shall inure to the benefit of and be
enforceable by the Executive Officer’s personal and legal representatives, executors, administrators, successors, heirs, distributees, devisees, and legatees. If the Executive Officer shall die while any amounts would be payable to the
Executive Officer hereunder had the Executive Officer continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to such person or persons appointed in writing by Executive to
receive such amounts or, if no person is so appointed, to the Executive Officer’s estate. 
 14. Voluntary
Agreement. The Executive Officer acknowledges that he has been given an opportunity to review the terms of this Agreement, that he has been given an opportunity to consult with counsel, or determined that such consultation is not required, and
that he has executed this Agreement voluntarily. 
 15. Execution. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original and all of which shall constitute one instrument. 

  
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 16. Application of Section 409A of the Code. 

(a) (a) General. To the extent applicable, it is intended that this Agreement comply with the provisions of
Section 409A of the Code, so as to prevent inclusion in gross income of any amounts payable or benefits provided hereunder in a taxable year that is prior to the taxable year or years in which such amounts or benefits would otherwise actually
be distributed, provided or otherwise made available to the Executive. This Agreement shall be construed, administered, and governed in a manner consistent with this intent and the following provisions of this paragraph shall control over any
contrary provisions of this Agreement. 
 (b) (b) Restrictions on Specified Executives. If Bancshares
determines that the Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code and delayed payment of any amount or commencement of any benefit under this Agreement is required to avoid a prohibited
distribution under Section 409A(a)(2) of the Code, then, to such extent as required, deferred compensation payable hereunder in connection with the Executive’s termination of employment will be delayed and paid, with interest at the
“prime rate” as published in the Wall Street Journal, in a single lump sum six months and one day thereafter (or if earlier, the date of the Executive’s death). The Human Resources Policy Committee of the Board shall determine whether
the Executive is a “specified employee” based on the procedures adopted by Bancshares in writing, which procedures shall comply with the applicable limitations under Section 409A of the Code, and the rules prescribed in Treasury
Regulation §1.409A-1(i). 
 (c) For periods following a “Change of Control,” as soon as
administratively feasible upon the Executive’s Separation from Service, Bancshares shall establish a “rabbi trust” (the “Trust”) with an independent national bank to hold each payment that is suspended pursuant to this
Section 16(b). On the payment date for each such payment, Bancshares shall deposit the total payment amount in the Trust, Such amount shall be held by the trustee pursuant to the terms of such Trust and paid to Employee as of the earlier of
(i) the first day that is six months following his separation from service, or (ii) the Employee’s date of death. Such amount shall be accumulated and paid in a lump sum with interest at the “prime rate” as published in the
Wall Street Journal on the date that is the earlier of (i) and (ii) above. 
 (c) Separation from
Service. Amounts payable hereunder upon the Executive’s termination or severance of employment with Bancshares and/or the Bank that constitute deferred compensation under Section 409A of the Code shall not be paid prior to the
Executive’s “separation from service” within the meaning of Section 409A of the Code. 
 (d)
Installments. For purposes of Section 409A of the Code, any right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments so that each payment is designated as a separate
payment for purposes of Section 409A of the Code. 
 (e) Reimbursements. All reimbursements and
in-kind benefits provided under this Agreement which constitute a payment of nonqualified deferred compensation under Section 409A of the Code, shall be made or provided in accordance with the requirements of Section 409A of the Code,
including, where applicable, the requirements that: 
 (i) any reimbursement is for expenses incurred during an
extended period of time following termination of employment; 

  
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 (ii) the amount of expenses eligible for reimbursement, or in-kind benefits
provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year; 
 (iii) the reimbursement of an eligible expense will be made on or before the last day of the calendar year following the year in which the expense is incurred; and 

(iv) the right to reimbursement or in kind benefits is not subject to liquidation or exchange for another benefit.

 To the extent that the Bancshares or the Bank is not permitted to provide any welfare benefits under Section 6(d) above,
the amount to be paid to the Executive shall be equal to the value of the subsidy which is provided by Bancshares for the Executive’s benefit. 
 (f) References to Section 409A. References in this Agreement to Section 409A of the Code include both that section of the Code itself and any guidance promulgated thereunder. 

(g) Application of Section 409A. Bancshares and the Bank make no representation or warranty and shall have no
liability to the Executive or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption from, or the conditions of, such
section.” 
 This Agreement may be executed in two or more counterparts. 

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written above. 

 

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

		 	J. Downey Bridgwater
		 	President & Chief Executive Officer
	
	EXECUTIVE OFFICER
	
	 /s/ Michelle L. Mahfouz

		 	Michelle L. Mahfouz

  
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