Document:

Form of Stock Option Agreement

 Exhibit 10.2 
  
 RACKABLE SYSTEMS, INC. 
 2006 NEW RECRUIT EQUITY INCENTIVE PLAN 
  
 STOCK OPTION GRANT
NOTICE 
  
 Rackable Systems, Inc. (the
“Company”), pursuant to its 2006 New Recruit Equity Incentive Plan (the “Plan”), hereby grants to Optionholder an option to purchase the number of shares of the Company’s Common Stock set forth
below. This option is subject to all of the terms and conditions as set forth herein and in the Option Agreement, the Plan and the Notice of Exercise, all of which are attached hereto and incorporated herein in their entirety. 
  

			
	 Optionholder:
	 	____________________________
	 Date of Grant:
	 	____________________________
	 Vesting Commencement Date:
	 	____________________________
	 Number of Shares Subject to Option:
	 	____________________________
	 Exercise Price (Per Share):
	 	____________________________
	 Total Exercise Price:
	 	____________________________
	 Expiration Date:
	 	____________________________

  

			
	Type of Grant:	  	 x       Nonstatutory Stock Option

		
	Exercise Schedule:	  	[1/4th of the shares vest and become exercisable one year
after the Vesting Commencement Date; the balance of the shares vest and become exercisable in a series of thirty-six (36) successive equal monthly installments measured from the first anniversary of the Vesting Commencement Date.]
		
	Payment:	  	By one or a combination of the following items (described in the Option Agreement):
		
	 	  	 x       By cash or check

	 	  	 x       Pursuant to a Regulation T Program if the Shares are publicly
traded

	 	  	 x       By delivery of
already-owned shares if the Shares are publicly traded
              By net exercise

  
 Additional
Terms/Acknowledgements: The undersigned Optionholder acknowledges receipt of, and understands and agrees to, this Stock Option Grant Notice, the Option Agreement and the Plan. Optionholder further acknowledges that as of the Date of Grant, this
Stock Option Grant Notice, the Option Agreement and the Plan set forth the entire understanding between Optionholder and the Company regarding the acquisition of stock in the Company and supersede all prior oral and written agreements on that
subject with the exception of (i) options previously granted and delivered to Optionholder under the Plan, and (ii) the following agreements only: 
  

			
	 OTHER AGREEMENTS:
	 	  
  

		
	 	 	

  

					
	RACKABLE SYSTEMS, INC.	 	OPTIONHOLDER:
			
	By:	 	  

	 	

	 Signature
	 	 Signature

			
	Title:	 	  

	 	 Date:

			
	Date:	 	  

	 	 

  
 ATTACHMENTS: Option Agreement, 2006 New Recruit Equity Incentive Plan and Notice of Exercise 
  

 1. 

 ATTACHMENT I 
  
 OPTION AGREEMENT 
  
 RACKABLE SYSTEMS, INC. 
 2006 NEW RECRUIT EQUITY INCENTIVE PLAN 
  
 OPTION AGREEMENT 
 (NONSTATUTORY STOCK OPTION) 
  
 Pursuant to your Stock Option Grant Notice (“Grant Notice”) and this Option Agreement, Rackable
Systems, Inc. (the “Company”) has granted you an option under its 2006 New Recruit Equity Incentive Plan (the “Plan”) to purchase the number of shares of the Company’s Common Stock indicated in
your Grant Notice at the exercise price indicated in your Grant Notice. Defined terms not explicitly defined in this Option Agreement but defined in the Plan shall have the same definitions as in the Plan. 
  
 The details of your option are as follows: 
  
 1. VESTING. Subject to the limitations contained
herein, your option will vest as provided in your Grant Notice, provided that vesting will cease upon the termination of your Continuous Service. 
  
 2. NUMBER OF SHARES AND EXERCISE PRICE. The number of
shares of Common Stock subject to your option and your exercise price per share referenced in your Grant Notice may be adjusted from time to time for Capitalization Adjustments. 
  
 3. EXERCISE RESTRICTION FOR NON-EXEMPT
EMPLOYEES. In the event that you are an Employee eligible for overtime compensation under the Fair Labor Standards Act of 1938, as amended (i.e., a “Non-Exempt Employee”), you may not exercise your
option until you have completed at least six (6) months of Continuous Service measured from the Date of Grant specified in your Grant Notice, notwithstanding any other provision of your option. 
  
 4. METHOD OF PAYMENT.
Payment of the exercise price is due in full upon exercise of all or any part of your option. You may elect to make payment of the exercise price in cash or by check or in any other manner permitted by your Grant Notice, which may
include one or more of the following: 
  
 (a) Provided
that at the time of exercise the Common Stock is publicly traded and quoted regularly in The Wall Street Journal, 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. 
  

 2. 

 (b) Provided that at the time of exercise the Common Stock is publicly traded and quoted regularly
in The Wall Street Journal, by delivery to the Company (either by actual delivery or attestation) of already-owned shares of Common Stock either that you have held for the period required to avoid a charge to the Company’s reported
earnings (generally six (6) months) or that you did not acquire, directly or indirectly from the Company, that are owned free and clear of any liens, claims, encumbrances or security interests, and that are valued at Fair Market Value on the
date of exercise. “Delivery” for these purposes, in the sole discretion of the Company at the time you exercise your option, shall include delivery to the Company of your attestation of ownership of such shares of Common Stock in a form
approved by the Company. Notwithstanding the foregoing, you may not exercise your option by tender to the Company of Common Stock to the extent such tender would violate the provisions of any law, regulation or agreement restricting the redemption
of the Company’s stock. 
  
 5. WHOLE
SHARES. You may exercise your option only for whole shares of Common Stock. 
  
 6. SECURITIES LAW COMPLIANCE. Notwithstanding anything to the contrary contained herein, you may not exercise your option unless the shares of Common Stock issuable
upon such exercise are then registered under the Securities Act or, if such shares of Common Stock are not then so registered, the Company has determined that such exercise and issuance would be exempt from the registration requirements of the
Securities Act. The exercise of your option also must comply with other applicable laws and regulations governing your option, and you may not exercise your option if the Company determines that such exercise would not be in material compliance with
such laws and regulations. 
  
 7. TERM. You
may not exercise your option before the commencement or after the expiration of its term. The term of your option commences on the Date of Grant and expires upon the earliest of the following: 
  
 (a) three (3) months after the termination of your Continuous
Service for any reason other than your Disability or death or upon a change in Control; provided, however, that (i) if during any part of such three (3) month period your option is not exercisable solely because of the condition set
forth in Section 6, your option shall not expire until the earlier of the Expiration Date or until it shall have been exercisable for an aggregate period of three (3) months after the termination of your Continuous Service and (ii) if
(x) you are a Non-Exempt Employee, (y) you terminate your Continuous Service within six (6) months after the Date of Grant specified in your Grant Notice, and (z) you have vested in a portion of your option at the time of your
termination of Continuous Service, your option shall not expire until the earlier of (A) the later of the date that is seven (7) months after the Date of Grant specified in your Grant Notice or the date that is three (3) months after
the termination of your Continuous Service or (B) the Expiration Date; 
  
 (b) if during any part of such three (3) month period your option is not exercisable solely because of the condition set forth in Section 6, your option shall not expire until the earlier of the
Expiration Date or until it shall have been exercisable for an aggregate period of three (3) months after the termination of your Continuous Service; 
  

 3. 

 (c) twelve (12) months after the termination of your Continuous Service due to your
Disability; 
  
 (d) eighteen (18) months after your
death if you die either during your Continuous Service or within three (3) months after your Continuous Service terminates; 
  
 (e) twelve (12) months following the effective date of a Change in Control if your Continuous Service terminates as of or within twelve
(12) months following such Change in Control; 
  
 (f)
the Expiration Date indicated in your Grant Notice; or 
  
 (g) the day before the tenth (10th) anniversary of the Date of Grant. 
  
 8. EXERCISE. 
  
 (a) You may exercise the vested portion of your option (and the unvested portion of your option if your Grant Notice so permits) during its term by delivering a Notice of Exercise (in a form designated by the Company) together with
the exercise price to the Secretary of the Company, or to such other person as the Company may designate, during regular business hours, together with such additional documents as the Company may then require. 
  
 (b) By exercising your option you agree that, as a condition to any
exercise of your option, the Company may require you to enter into an arrangement providing for the payment by you to the Company of any tax withholding obligation of the Company arising by reason of (i) the exercise of your option,
(ii) the lapse of any substantial risk of forfeiture to which the shares of Common Stock are subject at the time of exercise, or (iii) the disposition of shares of Common Stock acquired upon such exercise. 
  
 9. TRANSFERABILITY. Your option is not transferable,
except by will or by the laws of descent and distribution, and is exercisable during your life only by you. Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, you may designate a third
party who, in the event of your death, shall thereafter be entitled to exercise your option. In addition, you may transfer your option to a trust if you are considered to be the sole beneficial owner (determined under Section 671 of the Code
and applicable state law) while the option is held in the trust, provided that you and the trustee enter into transfer and other agreements required by the Company. 
  
 10. OPTION NOT A SERVICE CONTRACT. Your
option is not an employment or service contract, and nothing in your option shall be deemed to create in any way whatsoever any obligation on your part to continue in the employ of the Company or an Affiliate, or of the Company or an Affiliate to
continue your employment. In addition, nothing in your option shall obligate the Company or an Affiliate, their respective stockholders, Boards of Directors, Officers or Employees to continue any relationship that you might have as a Director or
Consultant for the Company or an Affiliate. 
  

 4. 

 11. WITHHOLDING OBLIGATIONS. 
  
 (a) At the time you exercise your option, in whole or in part, or at
any time thereafter as requested by the Company, you hereby authorize withholding from payroll and any other amounts payable to you, and otherwise agree to make adequate provision for (including by means of a “cashless exercise” pursuant
to a program developed under Regulation T as promulgated by the Federal Reserve Board to the extent permitted by the Company), any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Company or an
Affiliate, if any, which arise in connection with the exercise of your option. 
  
 (b) Upon your request and subject to approval by the Company, in its sole discretion, and compliance with any applicable legal conditions or restrictions, the Company may withhold from fully vested shares of
Common Stock otherwise issuable to you upon the exercise of your option a number of whole shares of Common Stock having a Fair Market Value, determined by the Company as of the date of exercise, not in excess of the minimum amount of tax required to
be withheld by law (or such lower amount as may be necessary to avoid classification of your option as a liability award). Any adverse consequences to you arising in connection with such share withholding procedure shall be your sole responsibility.

  
 (c) You may not exercise your option unless the tax
withholding obligations of the Company and/or any Affiliate are satisfied. Accordingly, you may not be able to exercise your option when desired even though your option is vested, and the Company shall have no obligation to issue a certificate for
such shares of Common Stock or release such shares of Common Stock from any escrow provided for herein unless such obligations are satisfied. 
  
 12. NOTICES. Any notices provided for in your option or the Plan shall be given in writing and shall be deemed effectively given
upon receipt or, in the case of notices delivered by mail by the Company to you, five (5) days after deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company. 
  
 13. GOVERNING PLAN
DOCUMENT. Your option is subject to all the provisions of the Plan, the provisions of which are hereby made a part of your option, and is further subject to all interpretations, amendments, rules and regulations, which may from
time to time be promulgated and adopted pursuant to the Plan. In the event of any conflict between the provisions of your option and those of the Plan, the provisions of the Plan shall control. 
  

 5. 

 ATTACHMENT II 
  
 2006 NEW RECRUIT EQUITY INCENTIVE PLAN

  
 [TO BE
ATTACHED] 
  

 6. 

 ATTACHMENT III 
  
 NOTICE OF EXERCISE 
  
 Rackable Systems, Inc. 
 1933 Milmont Drive 

					
	Milpitas, California 95035	 	 	 	Date of Exercise:                         

  
 Ladies and Gentlemen: 
  
 This constitutes notice under
my stock option that I elect to purchase the number of shares for the price set forth below. 
  

			
	Type of option:	  	 ̈  Nonstatutory
		
	Stock option dated:	  	_______________
		
	Number of shares as to which option is exercised:	  	_______________
		
	Certificates to be issued in name of:	  	_______________
		
	Total exercise price:	  	$______________
		
	Cash payment delivered herewith:	  	$_______________
		
	Value of              shares of Rackable Systems, Inc. Common Stock delivered herewith1:	  	$_______________

  
 By this exercise, I
agree (i) to provide such additional documents as you may require pursuant to the terms of the Rackable Systems, Inc. 2006 New Recruit Equity Incentive Plan, (ii) to provide for the payment by me to you (in the manner designated by you) of
your withholding obligation, if any, relating to the exercise of this option. 
  

	1	Shares must meet the public trading requirements set forth in the option. Shares must be valued in accordance with the terms of the option being exercised, must have
been owned for the minimum period required in the option, and must be owned free and clear of any liens, claims, encumbrances or security interests. Certificates must be endorsed or accompanied by an executed assignment separate from certificate.

  

 7. 

	
	 Very truly yours,

	
	

  

 8.Employment Agreement between the registrant and Harvey E. Zinn

 EXHIBIT 10.1 
  
 

 
  
 EMPLOYMENT AGREEMENT

  
 This AGREEMENT is made the 19th day of January, 2006 between PROSPERITY BANK a Texas banking association, (referred to as the “EMPLOYER”) having a
principal place of business at 1301 North Mechanic Street, El Campo, TX 77437, hereinafter referred to as “Employer,” and HARVEY E. ZINN who resides at 2307 Country Club Boulevard, Sugar Land, Texas, 77478 hereinafter referred to as
“Employee” (the “Agreement”). 
  
 ARTICLE I

  
 TERM OF EMPLOYMENT 
  
 Employer hereby employs Employee and Employee hereby accepts employment with
Employer for a period of THREE (3) years (the “Initial Term”) beginning on the Effective Time (as that term is defined in that certain Agreement and Plan of Reorganization dated as of November 16, 2005 (the “Merger
Agreement”) by and among Prosperity Bancshares, Inc. and SNB Bancshares, Inc. (referred to herein as the Effective Date); provided, however, that this Agreement may be terminated earlier as hereinafter provided. Following the Initial Term,
Employee’s employment shall continue by automatic, successive, one-month “evergreen” renewals (each such successive renewal period together with the Initial Term, the “Term”), unless either party declines to renew. A party
declining to renew must provide to the other party written notice of the non-renewal at least fourteen (14) calendar days prior to the end of the then-current term. 
  
 ARTICLE II 
  
 DUTIES OF EMPLOYEE 
  
 2.1 Primary Duties. Employee is hereby employed by Employer as Houston Area Chairman of Prosperity Bank and shall primarily manage the
solicitation and servicing of loan and depository accounts of Employer associated with the locations of Employer which were previously those of Southern National Bank and shall perform such other work as may be assigned to him subject to the
instructions, directions, and control of Employer, which shall be consistent with the type of nature of work normally performed by banking officers. 
  

 1 

 2.2 Location. Employee shall work in Sugar Land, Texas and shall be furnished with an
office and other business facilities and services sufficient to carry out his duties of office. 
  
 2.3 Changes of Duties or Location-Mutual Consent. The duties and title of Employee and the location at which Employee shall work may be
changed from time to time by the mutual consent of Employer and Employee without resulting in a rescission of this Agreement. Notwithstanding any such change, the employment of Employee shall be construed as continuing under this Agreement as
modified. 
  
 ARTICLE III 
  
 ENGAGING IN OTHER EMPLOYMENT 
  
 During the term of this Agreement, Employee shall devote all of his entire
productive time, ability, and attention to the business of Employer during Employer’s normal business hours. During the term of this Agreement and during any non-competition period described in Article VI hereof, Employee shall not directly or
indirectly render any services of a business, commercial, or professional nature relating to banking or financial matters to any other person or organization, whether for compensation or otherwise, without prior written consent of Employer.

  
 ARTICLE IV 
  
 COMPENSATION 
  
 4.1 Base Salary. As compensation for employment services
rendered under this Agreement, Employee shall be entitled to receive from Employer an annual salary (“Base Salary”) of $280,000, paid semi-monthly and prorated for any partial employment period during the Term of this Agreement. The Base
Salary shall be subject to review in accordance with the then existing procedures of Employer but may not be lowered without Employee’s consent. 
  
 4.2 Other Compensation. Employee shall be eligible to participate in the Prosperity Bank Bonus Plan. Additionally, Employee shall be
entitled to participate in stock based incentive compensation programs administered by the Board of Directors of Prosperity Bancshares, Inc. pursuant to the plans then in effect. 
  
 ARTICLE V 
  
 REIMBURSEMENT OF EMPLOYEE BUSINESS EXPENSES AND 
 PARTICIPATION IN EMPLOYER BENEFIT PLANS 
  
 5.1
Out of Pocket Expenses. Employee is authorized to incur reasonable business expenses for promoting the business of Employer, including expenditures for entertainment, meals and travel, including, without limitation, trade association
convention attendance, country club dues, and other similar business expenses. During the term of Employee’s employment with Employer, Employer will reimburse Employee from time to time for all such business expenses provided that Employee
presents Employer with appropriate documentation of such expenditures 

  

 2 

 
in accordance with Employer’s established procedures relating to such reimbursements. During the term of this employment, Employer will reimburse
Employee for Employee’s membership dues at the Sugar Creek Club. 
  
 5.2 Participation in Employer Benefit Plans. Until the termination of Employee’s employment, Employee will be eligible to participate in all employee benefit plans generally available to the officers and employees of
Employer and in accordance with the terms of such plans. 
  
 5.3
Automobile Allowance. During the term of Employee’s employment with Employer, Employer shall provide Employee with an annual automobile allowance of $9,600.00, which shall be paid in equal amounts through the normal payroll
practices of Employer. 
  
 5.4 Cell Phone Allowance.
During the term of Employee’s employment with Employer, Employer shall provide Employee with an annual cell phone allowance of $900.00, paid in equal amounts through the normal payroll practices of Employer. 
  
 ARTICLE VI 
  
 NON-DISCLOSURE, NON-COMPETITION AND NON-SOLICITATION COVENANT

  
 6.1 Non-Disclosure Obligations. 

 

	 	a)	 “Confidential Information” means and includes Employer’s confidential and/or proprietary information and/or trade secrets, including those obtained
by the acquisition of Southern National Bank of Texas, that have been and/or will be developed or used and that cannot be obtained readily by third parties from outside sources. Confidential Information includes, but is not limited to, the :
information regarding past, current and prospective customers and investors and business affiliates, employees, contractors, and the industry not generally known to the public; strategies, methods, books, records, and documents; technical
information concerning products, equipment, services, and processes; procurement procedures, pricing, and pricing techniques; including contact names, services provided, pricing, type and amount of services used, financial data; pricing strategies
and price curves; positions; plans or strategies for expansion or acquisitions; budgets; research; financial and sales data; trading methodologies and terms; communications information; evaluations, opinions and interpretations of information and
data; marketing and merchandising techniques; electronic databases; models; specifications; computer programs; contracts; bids or proposals; technologies and methods; training methods and processes; organizational structure; personnel information;
payments or rates paid to consultants or other service providers; and other such confidential or proprietary information. The term “Confidential Information” does not include any information that (i) at the time of disclosure or
thereafter is generally available to and known to the public, other than by a breach of this Agreement by the disclosing party, 

  

 3 

	 	 
(ii) was available to the disclosing party on a non-confidential basis from a source other than the non-disclosing party or (iii) was independently
acquired or developed without violating any obligations of this Agreement. Employee acknowledges that Employer’s business is highly competitive, that this Confidential Information constitutes a valuable, special and unique asset used by
Employer in its business, and that protection of such Confidential Information against unauthorized disclosure and use is of critical importance to Employer. 

  

	 	b)	Employee agrees that Employee will not, at any time during his employment with Employer or after the termination of such employment with Employer for any reason, make any
unauthorized disclosure, directly or indirectly, of any Confidential Information of Employer, or third parties, or make any use thereof, directly or indirectly, except in working for Employer. Employee also agrees that Employee shall deliver
promptly to Employer upon the termination of employment or at any other time at Employer’s reasonable request, without retaining any copies, all documents and other material in Employee’s possession relating, directly or indirectly, to any
Confidential Information or other information of Employer, or Confidential Information or other information regarding third parties, learned as an employee of Employer. 

  
 6.2 Non-Competition Obligations. Immediately upon the Effective Date of this Agreement, Employer shall provide
Employee with Confidential Information relating to Employer’s business and specialized training regarding Employer’s methodologies and business strategies, which will enable Employee to perform his job for Employer. Employee also
will have immediate access to, or knowledge of, Confidential Information of third parties, such as actual and potential customers, suppliers, partners, joint ventures, investors, financing sources, etc., of Employer. In order to protect the
Confidential Information and in order to enforce Employee’s agreement not to disclose Confidential Information, Employer and Employee agree to the non-competition provisions set forth in this Article VI. 
  
 6.3 Employee Obligations. Employee agrees that, for the
period (the “Non-Competition Period”) beginning on the Effective Date of this Agreement and for 12 months following the termination of his employment hereunder, Employee will not, except as an employee of Employer, in any capacity for
Employee or others, directly or indirectly: 
  

	 	a)	compete or engage, anywhere in the geographic area comprised of the fifty (50) mile radius surrounding any Prosperity banking center, or any other banking center operated or
owned directly or indirectly by Prosperity (the “Market Area”), in a business similar to that of Employer, or compete or engage in that type of business which Employer has plans to engage in, or any business which Employer has engaged in
during the preceding twelve (12) month period if within the twenty-four (24) months before the termination of Employee’s employment, Employee had access or potential access to information regarding the proposed plans or the business
in which Employer engaged; 

  

 4 

	 	b)	take any action to invest in, own, manage, operate, control, participate in, be employed or engaged by or be connected in any manner with any partnership, corporation or other
business or entity engaging in a business similar to that of Employer anywhere within the Market Area. Notwithstanding the foregoing, the Employee is permitted hereunder to own, directly or indirectly, up to one percent (1%) of the issued and
outstanding securities of any publicly traded financial institution conducting business in the Market Area; 

  

	 	c)	call on, service or solicit competing business from customers or prospective customers of Employer if, within the twelve (12) months before the termination of Employee’s
employment, Employee had or made contact with the customer, or had access to information and files about the customer; or 

  

	 	d)	call on, solicit or induce any employee of Employer whom Employee had contact with, knowledge of, or association with in the course of employment with Employer to terminate
employment from Employer, and will not assist any other person or entity in such activities. 

  
 6.4 Non-Competition Covenant Reasonable. The parties to this Agreement hereby agree that the non-competition provisions set forth in this
Article VI are ancillary to this Agreement, which is an otherwise enforceable agreement. Employee agrees that any work performed by Employee for any competitor of Employer during the Non-Competition Period inevitably would lead to Employee’s
unauthorized use of Employer’s Confidential Information, even if such use were unintentional. Because it would be impossible, as a practical matter, to monitor, restrain, or police Employee’s use of such Confidential Information other than
by Employee’s not working for a competitor, Employee agrees that restricting such employment as set forth in this Agreement is the narrowest way to protect Employer’s interests, and the narrowest way of enforcing Employee’s
consideration for the receipt of Employer’s specialized training and Confidential Information (namely, Employee’s promise not to use or disclose that Confidential Information and/or specialized training). 
  
 6.5 Consideration. In consideration for the above obligations
of the Employee, Employer agrees to provide Employee with immediate access to Confidential Information relating to Employer’s business and to highly specialized training regarding Employer’s methodologies and business strategies, which
will enable Employee to perform his or her job for Employer. Employee also will have immediate access to, or knowledge of, new Confidential Information of third parties, such as actual and potential customers, suppliers, partners, joint venturers,
investors, financing sources, etc. of Employer. In addition, in exchange for Employee’s promises under this Article VI, Employer will pay Employee a non-competition payment of $25,000 (“Non-Competition Payment”). The Non-Competition
Payment will be paid by Employer in full, subject to all required withholding obligations of Employer, on the date of termination of Employee’s employment with Employer. 
  
 6.6 Enforcement and Legal Remedies. Employer and Employee acknowledge and agree that breach of any of the
covenants made by Employee in this Agreement would cause irreparable injury to Employer, which could not sufficiently be remedied by monetary damages; and, therefore, that Employer shall be entitled to obtain such equitable relief as declaratory

  

 5 

 
judgments; temporary, preliminary and permanent injunctions, without posting of any bond, and order of specific performance to enforce those covenants or to
prohibit any act or omission that constitutes a breach thereof. If Employer must bring suit to enforce this Agreement the prevailing party shall be entitled to recover its attorneys’ fees and costs related thereto. 
  
 6.7 Tolling. In the event that Employer shall file a lawsuit in
any Court of competent jurisdiction alleging a breach of the non competition provisions of this Agreement by the Employee, then any time period set forth in this Agreement including the time periods set forth above, shall be deemed tolled as of the
time such lawsuit is filed and shall remain tolled until such dispute finally is resolved either by written settlement agreement resolving all claims raised in such lawsuit or by entry of a final judgment in such lawsuit and the final resolution of
any post-judgment appellate proceedings. 
  
 ARTICLE VII

  
 PROPERTY RIGHTS 
  
 7.1 Trade Secrets and Confidentiality. During the Term,
Employee will have access to and become familiar with Confidential Information owned by Employer and regularly used in the operation of the business of Employer. Employee shall not disclose any such Confidential Information, directly or indirectly,
nor use it in any way, either during the Term or at any time thereafter, except as required in the course of his employment with Employer. All Confidential Information, whether or not prepared by Employee, shall remain the exclusive property of
Employer and shall not be removed from the premises of Employer under any circumstances without the prior written consent of Employer, provided, however, that Employee may remove such items for the purpose of furthering the business of Employer if
such action is consistent with the past practices of Employer. All items removed from the premises of Employer and all copies or summaries thereof shall be returned to Employer upon the termination of Employee. 
  
 7.2 Business Plans and Improvements. Employee agrees that he
will promptly from time to time fully inform and disclose to Employer all processes, designs, improvements and business plans which he now has or may hereafter have during the term of this Agreement which pertain or relate to the business of
Employer or to any experimental work carried on by Employer, whether conceived by Employee alone or with others and whether or not conceived during regular working hours. All such processes, designs, improvements, formulas, business plans,
technologies and discoveries shall be the exclusive property of Employer. 
  
 ARTICLE VIII 
  
 TERMINATION RIGHTS 
  
 8.1 Termination for
Cause by the Employer. The Employer may terminate Employee’s employment for Cause (as defined hereinafter), such termination to be effective immediately upon written notice to Employee. Any termination of Employee’s employment
under this Section 8.1 will not be in limitation of any other right or remedy which the Employer may have under this Agreement, at law, or in equity. The term “Cause” means (i) fraud, 

  

 6 

 
embezzlement, theft or misappropriation of funds or other property of the Employer, (ii) self-dealing or gross negligence in the performance by Employee
of his duties pursuant to this Agreement, (iii) the repeated failure or refusal by Employee to perform his duties to the Employer as provided herein, other than due to Disability, (iv) the commission by Employee of any willful acts of bad
faith or gross misconduct against the Employer, (v) the indictment of Employee for a felony or other criminal act involving dishonesty, whether or not relating to his employment with the Employer, (vi) the repeated breach of a lawful,
established policy or procedure of the Employer; provided that with respect to clauses (iii) and (vi), Employer shall give Employee written notice of the breach or other failure on the part of Employee and the actions necessary to correct such
breach, if applicable. If Employee fails to cure the breach or failure within twenty (20) days of receipt of such notice or if the breach or failure is incurable, Employer may proceed to terminate Employee’s employment for Cause without
further notice. 
  
 8.2 Termination by the Company Upon
Employee’s Disability. The Employer may terminate Employee’s employment upon a determination of Disability (as defined below), such termination to be effective immediately upon written notice to Employee. The term
“Disability” means Employee’s inability to perform his usual services to the Employer because of mental or physical illness or injury for the consecutive days as defined in the Bank’s disability policy then in effect, which
inability to perform will be determined by a physician selected by the Employer. 
  
 8.3 Termination Upon Employee’s Death. In the event of Employee’s death, Employee’s employment under this Agreement shall immediately terminate. 
  
 8.4 Termination by Employer Other Than for Cause, Disability or
Death. Notwithstanding anything to the contrary contained in this Agreement, the Employer may terminate this Agreement for any or no reason during the Term (i.e., other than for Cause or Disability), such termination to be effective
immediately upon the giving of written notice to Employee from the Employer. 
  
 8.5 Termination by Employee. Employee may terminate Employee’s employment at any time and for any reason upon thirty (30) days notice. In the event Employee wishes to terminate Employee’s
employment hereunder for Good Reason (as defined below), Employee shall first give the Employer written notice of the breach or other failure on the part of the Employer giving rise to the Good Reason, and the actions necessary to correct such
breach or failure. If the Employer fails to cure the breach or failure within twenty (20) days of the receipt of such notice, Employee may proceed to terminate Employee’s employment for Good Reason without further notice. The term
“Good Reason” means any action by the Employer which results in a material change in Employee’s position, authority, duties, responsibilities, compensation or location, except as otherwise permitted in the Agreement. 
  
 8.6 Certain Payments Following Termination of Employment.

  

	 	a)	 If Employee’s employment with the Employer is terminated by the Employer for Cause or if Employee terminates Employee’s employment without Good Reason,
Employee shall thereafter be entitled to receive from the Employer payment of any accrued but unpaid Base Salary, 

  

 7 

	 	 
allowances and reimbursements through the date of such termination. Further, if the Employer terminates the Employee for Cause or the Employee terminates
without Good Reason, Employee’s obligations set forth in Article VI shall continue during the Non-Competition Period without the payment of any additional consideration. 

  

	 	b)	If Employee’s employment with the Employer is terminated by the Employer for any reason other than for Cause, as a result of Employee’s death or Disability, or if Employee
terminates his employment with Employer for Good Reason, Employee shall be entitled to receive from the Employer: 

  

	 	(i)	payment of accrued but unpaid Base Salary, allowances and reimbursements as of the date of termination of Employee’s employment, subject to all required withholding obligations
of Employer; 

  

	 	(ii)	payment of Employee’s Base Salary, subject to all required withholding obligations of Employer, for the remaining portion of the Initial Term of this Agreement;

  

	 	(iii)	payment of all premiums for Employee’s continued participation in the Employer’s medical/dental plan until the earlier of (i) the expiration of the Term, or
(ii) the expiration of the Company’s obligation to offer continued coverage under any such plans under applicable law; 

  

	 	(iv)	continuation of the automobile allowance and cell phone allowance under Sections 5.3 and 5.4, respectively, through the Term of this Agreement; 

  

	 	(v)	payment for accrued and unused vacation days as of the date of termination of Employee’s employment, subject to all required withholding obligations of Employer; and

  

	 	(vi)	reimbursement for incurred business expenses, which remain unpaid as of the effective date of termination. 

  
 Payments under (i), (ii), (v) and (vi) shall be made in one lump
sum on the date of termination of Employee’s employment or as soon as administratively feasible thereafter, but in no event after the later of (i) the last day of the calendar year in which Executive’s employment terminates, or
(ii) the fifteenth (15th) day of the third calendar month following the date of termination of
Executive’s employment. Further, Employee’s obligations under Article VI shall continue during the Non-Competition Period and the Employee will receive the Consideration defined in Article 6.5. 
  

 8 

 Notwithstanding any provision of this Agreement to the contrary, if at the time of Employee’s
termination of employment with the Employer, he is a “specified employee” as defined in Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), no payment or benefit will be provided under this
Section 8.6 until the earliest of (A) the date which is 6 months after the date of Employee’s termination of employment, or (B) the date of Employee’s death. The first sentence of this paragraph shall apply only to the
extent required to avoid Employee’s incurrence of any additional tax or interest under Section 409A of the Code or any regulations or Treasury guidance promulgated thereunder. In addition, if any provision of this Agreement (or of any
award of compensation) would cause Employee to incur any additional tax or interest under Section 409A of the Code or any regulations or Treasury guidance promulgated thereunder, the Employer shall reform such provision; provided that the
Employer shall (i) maintain, to the maximum extent practicable, the original intent of the applicable provision without violating the provisions of Section 409A of the Code and (ii) notify and consult with Employee regarding such
amendments or modifications prior to the effective date of any such change. 
  
 8.7 Return of Property. Upon the expiration of the Term or the termination of this Agreement or of Employee’s employment hereunder for any reason, Employee (or Employee’s executor or personal
representative in the event of Employee’s death or Disability) shall, within ten (10) days thereafter, return to the Employer all property of the Employer, including, but not limited to, all keys, credit cards, and all other property of
the Employer in Employee’s possession. 
  
 ARTICLE IX

  
 GENERAL PROVISIONS 
  
 9.1 Notices. Any notices to be given hereunder by either party
to the other may be effected either by personal delivery in writing or by mail, registered or certified, postage prepaid with return receipt requested. Mailed notices shall be addressed to the parties at the addresses appearing in the introductory
paragraph of the Agreement, but each party may change his address by written notice in accordance with this paragraph. Notices delivered personally shall be deemed communicated as of actual receipt; mailed notices shall be deemed communicated as of
three (3) days after mailing. 
  
 9.2 Entire
Agreement. This Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the employment of Employee by Employer, and contains all of the covenants and agreements between the
parties with respect to such employment in any manner whatsoever. 
  
 9.3 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. 
  

 9 

 9.4 Modification. This Agreement shall not be amended, modified, or altered in any manner
except in writing signed by both parties. 
  
 9.5 Failure to
Enforce Not Waiver. Any failure or delay on the part of either Employer or Employee to exercise any remedy or right under this Agreement shall not operate as a waiver. The failure of either party to require performance of any of the terms,
covenants, or provisions of this Agreement by the other party shall not constitute a waiver of any of the rights under the Agreement. No forbearance by either party to exercise any rights or privileges under this Agreement shall be construed as a
waiver, but all rights and privileges shall continue in effect as if no forbearance had occurred. No covenant or condition of this Agreement may be waived except by the written consent of the waiving party. Any such written waiver of any term of
this Agreement shall be effective only in the specific instance and for the specific purpose given. 
  
 9.6 Survival. Notwithstanding anything in this Agreement to the contrary, the provisions of Article VI shall survive early termination or
expiration of the Term of this Agreement. 
  
 9.7 Partial
Invalidity. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall remain in full force and effect, as if this Agreement has been executed without
any such invalid provisions having been included. Such invalid provision shall be reformed in a manner that is both (i) legal and enforceable, and (ii) most closely represents the parties’ original intent. 
  
 9.8 Attorney’s Fees and Costs. If any action at law or in
equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney’s fees, costs, and necessary disbursements in addition to any other relief to which he may be entitled.

  
 9.9 Counterparts. This Agreement may be executed
in multiple counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. 
  
 9.10 Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of Employer and Employee, and their
respective heirs, executors, administrators, successors and assigns, including, without limitation, any successor by merger, consolidation or stock purchase of Employer and any entity or person that acquires all or substantially all of the assets of
Employer. 
  
 [Signature Page Follows] 
  

 10 

 IN WITNESS WHEREOF, the parties hereto have caused this Employment Agreement to be duly executed as of the date first
written above. 
  

			
	 PROSPERITY BANK,
 EMPLOYER

		
	By:	 	/S/    DAVID
ZALMAN        
	 David Zalman
 Senior Chairman and Chief Executive Officer

  

			
	EMPLOYEE
		
	By:	 	/S/    HARVEY E.
ZINN        
	 Harvey E. Zinn

  

 11

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