Document:

Severance 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
23rd day of January, 2006 by and among Sterling Bancshares, Inc., a Texas corporation (“Bancshares”), Sterling Bank, a banking association chartered by the State of Texas and an indirect subsidiary of Bancshares
(“Bank”) and John A. Rossitto (the “Executive Officer”). 
  
 WHEREAS, the Executive Officer is being employed by Bancshares and/or Bank in a position in which he will have access to, and will gain knowledge of, confidential and proprietary information of Bancshares,
Bank, Sterling Bancorporation, Inc. and their respective affiliates (each, a “Sterling Entity,” and together, the “Sterling Entities”), and the parties wish to ensure that the Executive Officer will enjoy access to the Sterling
Entities’ existing and future confidential and proprietary information; 
  
 WHEREAS, the Sterling Entities’ confidential and proprietary information constitutes a substantial asset of the Sterling Entities that the parties mutually wish to protect; 
  
 WHEREAS, the Executive Officer is already subject to certain
confidentiality obligations under Texas law, and the parties reasonably believe that it would be difficult, if not impossible, for the Executive Officer to refrain from using or disclosing the confidential and proprietary information of the Sterling
Entities in the event that the Executive Officer were to work for any other financial institution after terminating his/her employment with Bancshares and/or the Bank; 
  
 WHEREAS, the parties mutually desire to achieve a level of certainty and predictability concerning the
post-employment activities the Executive Officer may perform, and when; 
  
 WHEREAS, the parties mutually desire to compensate the Executive Officer for any restriction on his ability to engage in certain competitive activities; and 
  
 WHEREAS, the parties mutually desire to ensure that the Executive Officer receives certain severance benefits in the
event that his employment is terminated by Bancshares and Bank without cause, or following a “Change of Control” (as herein defined) under the conditions set forth herein. 
  
 NOW, THEREFORE, in consideration of the foregoing and the premises, representations, and mutual covenants hereinafter
set forth, the parties do hereby agree as follows: 
  
 1.
Definitions. The following words and terms shall have the meanings set forth below for purposes of this Agreement: 
  
 (a) Cause. A termination of employment is for “Cause” only if it is due to: 
  
 (i) serious intentional misconduct on the part of the
Executive Officer; 

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

  

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securities, or (D) pursuant to a Non-Qualifying Transaction (as defined in paragraph (ii) below); 
  
 (ii) the consummation of a merger, consolidation, share
exchange or similar form of corporate transaction involving Bancshares that requires the approval of Bancshares’ shareholders, whether for such transaction or the issuance of securities in the transaction (a “Business Combination”),
unless immediately following such Business Combination: (A) more than seventy-five percent (75%) of the total voting power of (x) the corporation resulting from such Business Combination (the “Surviving Corporation”), or
(y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of 100% of the voting securities eligible to elect directors of the Surviving Corporation (the “Parent Corporation”), is
represented by Bancshares Voting Securities that were outstanding immediately prior to such Business Combination (or if applicable, is represented by shares into which such Bancshares Voting Securities were converted pursuant to such Business
Combination), and such voting power among the holders thereof is in substantially the same proportion of the voting power of such Bancshares Voting Securities among the holders thereof immediately prior the Business Combination, (B) no person
(other than any employee benefit plan (or related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation), is or becomes the beneficial owner, directly or indirectly, of fifty-percent (50%) or more of the total
voting power of the outstanding voting securities 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 initial agreement providing for such Business Combination (any Business Combination which satisfies all of the criteria specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”);

  
 (iii) the individuals who constitute the board
of directors of Bancshares as of the date of this Agreement (the “Incumbent Directors”) shall cease for any reason to constitute at least a majority of the members of the board of directors of Bancshares, provided that any person becoming
a director subsequent to the date of this Agreement, whose election or nomination was approved by a vote of at least a majority of the Incumbent Directors then comprising the board of directors of Bancshares shall be, for purposes of this Agreement,
considered an Incumbent Director; provided, however, that no individual initially elected or nominated as a director of Bancshares as a result of an actual or threatened contest with respect to directors or as a result of any other actual or
threatened solicitation of proxies (or consents) by or on behalf of any person other than the board of directors shall be deemed to be an Incumbent Director; 
  
 (iv) the consummation of a sale of all or substantially all of the assets of Bancshares; or 
  

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 (v) the shareholders of Bancshares shall approve a plan of complete liquidation or
dissolution of Bancshares. 
  
 (c) Change of
Control Termination. A “Change of Control Termination” shall mean the termination of the Executive Officer’s employment with the Sterling Entities (or any Parent Corporation or Surviving Corporation), within a two-year period
commencing on the effective date of a Change of Control, due to (i) an Involuntary Termination or (ii) a termination for Good Reason. 
  
 (d) Disability. “Disability” means the Executive Officer’s permanent and total disability as defined in any
long-term disability plan sponsored by Bancshares and applicable to the Executive Officer or in the absence of any such long-term disability plan, the term “Disability” shall mean the absence of the Executive Officer from his or her duties
with the Sterling Entities on a full-time basis for at least twelve (12) consecutive weeks as a result of the Executive Officer’s incapacity due to illness, accident, injury, physical or mental incapacity or other disability. 

 
 (e) General Release of Liability. A “General
Release of Liability” means the legal document in which the Executive Officer, in exchange for benefits under this Agreement, releases the Sterling Entities, their affiliates, their directors, officers, employees and agents, their employee
benefit plans and the fiduciaries and agents of said plans from liability and damages in any way related to the Executive Officer’s employment with or separation from the Sterling Entities. 
  
 (f) Good Reason. “Good Reason” means,
without the Executive Officer’s express written consent, the occurrence of any one of the following events after a Change of Control: 
  
 (i) (A) any change in the duties or responsibilities of the Executive Officer that is inconsistent in any material and adverse respect
with the Executive Officer’s position, duties, responsibilities or status with the Sterling Entities immediately prior to such Change of Control or (B) a material and adverse change in the Executive Officer’s titles or offices with
the Sterling Entities (or any Parent Corporation or Surviving Corporation) and including, if applicable, membership or position on a board of directors with Bancshares or Bank (or their respective successor), as in effect immediately prior to such
Change of Control; 
  
 (ii) a reduction of ten
percent (10%) or more in the Executive Officer’s rate of annual base salary or annual target bonus opportunity (including any material and adverse change in the formula for such annual bonus target) as in effect immediately prior to such
Change of Control or as the same may be increased from time to time thereafter, or the failure of the applicable Sterling Entity (or any Parent Corporation or Surviving Corporation) to pay any such amounts when due; 
  
 (iii) any requirement that the Executive be based anywhere
more than twenty-five (25) miles from the office where the Executive Officer was located at 

  

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the time of the Change of Control, if such relocation increases the Executive Officer’s commute by more than twenty-five (25) miles; 
  
 (iv) the failure of the Sterling Entities (or any Parent
Corporation or Surviving Corporation) to continue in effect benefits and a total compensation package including, without limitation, employee benefit plans, compensation plans, welfare benefit plans, material fringe benefit plans, vacation policies
and other similar benefit plans providing not less than ninety percent (90%) of the Executive Officer’s total compensation package in the twelve (12) months immediately preceding the Change of Control; and 
  
 (v) the failure of Bancshares to obtain the assumption (and,
if applicable, guarantee) agreement from any Surviving Corporation (and, if applicable, Parent Corporation) as contemplated in Section 13(b). 
  
 (g) Involuntary Termination. An “Involuntary Termination” means an involuntary termination of employment of the Executive
Officer by the Sterling Entities (or any successor thereto including a Parent Corporation or Surviving Corporation); provided, however, that “Involuntary Termination” shall not include termination of employment by reason of death,
Disability or Cause. 
  
 2. 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 $75,000 cash bonus during the first available
payroll period of 2006 following employment and five thousand (5,000) shares of Bancshares’ common stock, $1.00 par value with an equalization bonus to cover taxes. The shares of common stock issued to the Executive Officer hereunder shall
be awarded under the terms of Bancshares’ 2003 Stock Incentive and Compensation Plan (or any successor plan) and shall not be subject to any forfeiture or vesting requirements. 
  
 3. Non-Competition. Executive Officer acknowledges that the Sterling Entities are providing Executive with access to
Confidential Information as defined below. Ancillary to Executive Officer’s agreement not to disclose Confidential Information, to protect the Confidential Information described below, and in consideration for Executive Officer receiving access
to this Confidential Information, being entitled to Severance Payments, having rights after a Change in Control, and other benefits provided in this Agreement, the Sterling Entities and Executive Officer agree to the following non-competition
provisions. The Executive Officer shall not, during the time that he/she is employed by any Sterling Entity and, in the event of a termination of employment for Cause, an Involuntary Termination, or a termination of employment by the Executive
Officer, for a period of twelve (12) months after any such termination: 
  
 (a) directly or indirectly, own, manage, operate, control, invest or acquire an equity interest in any financial institution (or any affiliate thereof including, without limitation, any bank holding company or
financial holding company) with $10 billion or 

  

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less in assets located or conducting business in Harris County, Texas or any of its contiguous counties (the “Territory”) which competes
with the business conducted by any Sterling Entity; 
  
 (b) engage in or carry on, either directly or indirectly, whether for himself or as an employee, officer, director, agent, consultant, proprietor, partner, stockholder, member, joint venturer, investor, or other paid participant, any
business with, on behalf of or as a financial institution within the Territory which competes with the business conducted by any Sterling Entity; 
  
 (c) request or induce any customer, depositor or borrower of any Sterling Entity or any other person which has a business relationship
with any Sterling Entity to curtail, cancel, or otherwise discontinue its business or relationship with any such Sterling Entity; or 
  
 (d) publicly denigrate or in any manner undertake to publicly discredit any of the Sterling Entities or any person or operation associated
with any Sterling Entity. 
  
 Notwithstanding the foregoing, nothing contained in
this Agreement shall prohibit the Executive Officer from owning any issue of stock or securities of any corporation the securities of which are either traded on a national securities exchange or quoted on the automated quotation system of the
National Association of Securities Dealers, Inc. and which is engaged in a business which is in competition with any Sterling Entity so long as (i) the Executive Officer is not deemed to be an “affiliate” of such entity as such term
is used in paragraphs (c) and (d) of Rule 145 under the Securities Act of 1933 and (ii) the Executive Officer and members of his immediate family do not own or hold more than one percent (1%) of any voting securities of such
entity. 
  
 Executive Officer warrants that Executive Officer is
not a party to any other restrictive agreement limiting Executive Officer’s activities for the Sterling Entities. Executive Officer further warrants that at the time of the signing of this Agreement, Executive Officer knows of no written or
oral contract or of any other impediment that would inhibit or prohibit employment with the Sterling Entities and that Executive will not knowingly use any trade secret, confidential information, or other intellectual property right of any other
party in the performance of Executive Officer’s duties hereunder. Executive Officer shall hold the Sterling Entities harmless from any and all suits and claims arising out of any breach of such restrictive agreement or contracts. 
  
 4. Non-Solicitation. The Executive Officer shall not, during the time
that he is employed by any Sterling Entity, and for a period of twelve (12) months thereafter, directly or indirectly solicit the employment of any officers or employees of the Sterling Entities, provided, however, that this Agreement shall not
prohibit (a) any advertisement or general solicitation that is not specifically targeted at such officers or employees, or (b) soliciting the employment of any such officer or employee who has been terminated by any Sterling Entity.

  
 5. Confidentiality. The Executive Officer shall never
disclose to any person, or use or otherwise exploit for his/her own benefit or for the benefit of any person other than a Sterling Entity, any Confidential Information (as defined below). The Executive Officer shall have no 

  

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

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 (d) welfare benefits or, to the extent that such benefits cannot be lawfully provided or
the Executive Officer otherwise does not qualify for coverage, the cost of providing welfare benefits, such as medical, dental, vision, Employee Assistance Plan, and flexible spending accounts for the two (2) years following the termination
that are equal to or greater that those provided to the Executive Officer immediately prior to the termination (or the Change of Control in the event of a Change of Control Termination); 
  
 (e) life insurance benefits or, to the extent that such benefits cannot be lawfully provided or the
Executive Officer otherwise does not qualify for coverage, the cost of providing life insurance benefits for the two (2) years following the termination that are equal to or greater than those provided to the Executive Officer immediately prior
to the termination (or the Change of Control in the event of a Change of Control Termination); 
  
 (f) club dues paid for the two (2) years following the termination that are equal to or greater that those provided to the Executive
Officer immediately prior to the termination (or the Change of Control in the event of a Change of Control Termination); 
  
 (g) continuation of banking services without service charge or at a reduced charge for the two (2) years following the termination if
any of these banking products were being utilized by the Executive Officer immediately prior to the termination (or the Change of Control in the event of a Change of Control Termination): 
  
 (h) payment of reasonable and customary business-related expenses incurred through the last day of active
employment if submitted in writing to Bancshares, Bank or their respective successor within ninety (90) days following the effective date of termination; 
  

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

 
 (l) to the extent permitted by applicable law,
participation in Bancshares’ Employee Savings Plan (or similar program if termination follows a Change of Control) for the two (2) years following the termination; 
  
 (m) to the extent permitted by applicable law and the applicable terms of any plan, immediate and full
vesting upon termination in all Bancshares plans (or similar plans if termination follows a Change of Control) that require a vesting period including, 

  

 8 

 
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.

  
 Notwithstanding any other provision of this Section 6 to
the contrary, the aggregate present value (measured as of the Change of Control) of the benefits to which the Executive Officer becomes entitled under this Section 6 at the time of the Executive Officer’s termination of employment will in
no event exceed in amount the dollar amount (the “Benefit Limit”) which yields the Executive Officer the greatest after-tax amount of benefits under this Section 6 after taking into account any excise tax imposed under
Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), on the payments and benefits which are provided to the Executive Officer under this Section 6 or which constitute other parachute payments. For purposes
of applying the Benefit Limit to the Executive’s benefits under this Section 6, the value of the Executive’s non-competition covenant under Section 3 shall be determined through independent appraisal by a nationally-recognized
independent accounting firm acceptable to both the Executive Officer and Bancshares and obtained solely at Bancshares’ cost, and a portion of the Executive Officer’s Section 6 benefits shall, to the extent of such appraised value, be
specifically allocated as reasonable compensation for the Executive Officer’s non-competition covenant. For purposes of this paragraph, “Present Value” means the value, determined as of the date of the Change of Control, of any
payment in the nature of compensation to which the Executive Officer becomes entitled in connection with a Change of Control or the Executive Officer’s subsequent termination including the benefits to which the Executive Officer becomes
entitled under this Section 6, provided, however, that such present value of each such payment will be determined in accordance with the provisions of Section 280G of the Code, utilizing a discount rate equal to one hundred twenty percent
(120%) of the applicable federal rate in effect at the time of such determination, compounded semi-annually to the effective date of the change of control. In addition, for purposes of this paragraph of this Section 6, “Other
Parachute Payment” means any payment in the nature of compensation (other than the benefits to which the 

  

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

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 The address of Bancshares and any Sterling Entity shall be: 
  
 Sterling Bancshares, Inc. 
 2550 North Loop West 
 Suite 600 
 Houston, Texas 77092 
 Attn: President & Chief Executive Officer 
  
 Bancshares shall have the right from time to time and at any time to change its address and shall have the right to specify
as its address any other address by giving at least ten (10) days’ written notice to the Executive Officer. The Executive Officer shall have the right from time to time and at any time to change his address and shall have the right to
specify as his address any other address by giving at least ten (10) days’ written notice to Bancshares. 
  
 10. Controlling Law. This Agreement shall be governed by, construed and enforced in accordance with the laws of the State of Texas (without giving
effect to conflicts of laws principles thereof). 
  
 11. Entire
Agreement. Except as provided in Bancshares’ Code of Business Conduct and Ethics, Code of Ethics for Senior Officers, the written benefit plans and programs of the Sterling Entities or any signed agreement hereafter executed between any
Sterling Entity and the Executive Officer, this Agreement contains the entire agreement of the parties with respect to the subject matter hereof. The Agreement may not be changed orally or by action or inaction, but only by an agreement in writing
signed by the party against whom enforcement of any waiver, change, modification, extension or discharge is sought. The headings of this Agreement are intended solely for the convenience of reference and should be given no effect in the construction
or interpretation of this Agreement. 
  
 12. Severability.
If any provision of the Agreement is rendered or declared illegal or unenforceable by reason of any existing or subsequently enacted legislation or by decree of a court of last resort, the parties shall promptly meet and negotiate substitute
provisions for those rendered or declared illegal or unenforceable, but all remaining provisions of this Agreement shall remain in full force and effect. 
  
 13. Benefit and Burden; Assignment. 
  
 (a) This Agreement shall not be terminated by any Change of Control. In the event of any Business Combination, the provisions of this
Agreement shall be binding upon the Surviving Corporation, and such Surviving Corporation shall be treated as Bancshares hereunder. 
  
 (b) Bancshares agrees that in connection with any Business Combination, it will cause any successor entity to Bancshares and/or Bank to
unconditionally assume, by written instrument delivered to the Executive Officer (or his/her beneficiary or estate), all of the obligations of Bancshares hereunder. Failure of Bancshares to obtain such assumption prior to the effective date of any
such Business Combination that constitutes a Change of Control shall be a breach of this Agreement and shall constitute Good Reason hereunder entitling Executive Officer to compensation and other benefits from 

  

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Bancshares in the same amount and on the same terms as Executive Officer would be entitled hereunder upon a Change of Control Termination. For purposes of
implementing the foregoing, the date upon which any such Business Combination becomes effective shall be deemed to be the date Good Reason occurs and shall be the effective date of termination hereunder if requested by the Executive Officer.

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

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

	 	 	 J. Downey Bridgwater

	 	 	 President & Chief Executive Officer

	
	EXECUTIVE OFFICER
	 	 	 
	 	 	 /s/ John A. Rossitto

  

 12OMNOVA Solutions Inc. Long-Term Incentive Program

 Exhibit 10.14 
  
  
  
  
  
  
  
  
 OMNOVA SOLUTIONS INC. 
  
 LONG-TERM INCENTIVE PROGRAM 
  
  
  
  
 As Amended and Restated 
 Effective January 20, 2006 

 OMNOVA SOLUTIONS INC. 
  
 LONG-TERM INCENTIVE PROGRAM 
  
 1. Establishment, Purpose and Duration of Program 
  
 1.1 Establishment: OMNOVA Solutions Inc. hereby establishes a long-term incentive program, as set forth herein, which will be called “OMNOVA
Solutions Inc. Long-Term Incentive Program”. 
  
 1.2
Purpose: The purpose of the program is to promote the success and enhance the value of the Company by linking the personal interests of Participants to the interests of the Company’s shareholders and providing to Participants an
incentive for outstanding performance. The program also is intended to provide to the Company flexibility in its ability to hire, motivate, and retain the services of Participants whose judgment, interest and efforts contribute significantly to the
successful conduct of the Company’s business. 
  
 1.3 Effective
Date: The program originally became effective on the Effective Date, December 1, 1999, and has subsequently been amended and restated effective January 20, 2006. 
  
 1.4 Duration of Program: The program will commence on the Effective Date and will remain in effect until terminated by
the Board in accordance with Section 12.1. 
  
 2. Definitions and
Interpretation 
  
 2.1 Definitions: Whenever used in
the program, the following words shall have the meanings set forth in this Section 2.1 and, when such meaning is intended, the initial letter of the word will be capitalized. 
  
 (a) Annual Compensation: The sum of (i) the base salary paid to a Participant during a Fiscal Year while
the Participant is designated as a Participant in the Plan, and (ii) the Participant’s payment under the Executive Incentive Compensation Program attributable to such Fiscal Year. 
  
 (b) Average Annual Compensation: If a Performance Period
includes two or more Fiscal Years, the sum of a Participant’s Annual Compensation in each such Fiscal Year, divided by the number of such Fiscal Years 

  

 1 

 
(even if the Participant did not have Annual Compensation in all Fiscal Years in the Performance Period). 
  
 (c) Beneficiary: The person or persons determined in accordance with Article 7. 
  
 (d) Change in Control: The occurrence of any of the following
events, subject to the provisions of paragraph (v) hereof: 
  
 (i) All or substantially all of the assets of the Company are sold or transferred to another corporation or entity, or the Company is merged, consolidated or reorganized into or with another corporation or entity, with the result that upon
conclusion of the transaction less than 51% of the outstanding securities entitled to vote generally in the election of directors or other capital interests of the acquiring corporation or entity are owned directly or indirectly, by the shareholders
of the Company generally prior to the transaction; or 
  
 (ii) There is a report filed on Schedule 13D or Schedule 14D-1 (or any successor schedule, form or report), each as promulgated pursuant to the Exchange Act, disclosing that any person (as the term “person” is used in
Section 13(d)(3) or Section 14(d)(2) of the Exchange Act (a “Person”)) has become the beneficial owner (as the term “beneficial owner” is defined under Rule 13d-3 or any successor rule or regulation promulgated
under the Exchange Act (a “Beneficial Owner”)) of securities representing 20% or more of the combined voting power of the then-outstanding voting securities of the Company; or 
  
 (iii) The individuals who, at the beginning of any period of two consecutive calendar years, constituted the Directors
of the Company cease for any reason to constitute at least a majority thereof unless the nomination for election by the Company’s stockholders of each new Director of the Company was approved by a vote of at least two-thirds of the Directors of
the Company still in office who were Directors of the Company at the beginning of any such period; or 
  
 (iv) The Board determines that (A) any particular actual or proposed merger, consolidation, reorganization, sale or transfer of assets,
accumulation of shares or tender offer for shares of the Company or other transaction or event or series of transactions or events will, or is likely to, if carried out, result in a Change in Control falling within paragraph (i), (ii) or
(iii) hereof and (B) it is 

  

 2 

 
in the best interests of the Company and its shareholders, and will serve the intended purposes of the Change in Control provisions of this Program and other
compensation and benefit programs, plans and agreements of the Company, if a Change in Control shall be deemed to have occurred. 
  
 (v) Notwithstanding the foregoing provisions of this Section 2.1(d): 
  
 (A) If any such merger, consolidation, reorganization, sale or transfer of assets, or tender offer or other
transaction or event or series of transactions or events mentioned in paragraph (iv) hereof shall be abandoned, or any such accumulations of shares shall be dispersed or otherwise resolved, the Board may determine that a Change in Control has
not occurred and, by notice to the Executive, nullify the effect thereof, but without prejudice to any action that may have been taken prior to such nullification. 
  
 (B) Unless otherwise determined in a specific case by the Board, a Change in Control shall not be deemed to have
occurred for purposes of paragraph (ii) hereof solely because (1) the Company, (2) a subsidiary of the Company, or (3) any Company-sponsored employee stock ownership plan or any other employee benefit plan of the Company or any
subsidiary of the Company either files or becomes obligated to file a report or a proxy statement under or in response to Schedule 13D, Schedule 14D-1, Form 8-K or Schedule 14A (or any successor schedule, form or report or item therein)
under the Exchange Act disclosing Beneficial Ownership by it of shares of the then-outstanding voting securities of the Company, whether in excess of 20% or otherwise, or because the Company reports that a change in control of the Company has
occurred or will occur in the future by reason of such beneficial ownership. 
  
 (e) Code: The Internal Revenue Code of 1986. 
  
 (f) Committee: The Compensation and Corporate Governance Committee of the Board or such other committee of Outside Directors appointed annually by the Board. 
  
 (g) Company: OMNOVA Solutions Inc., an Ohio corporation having its registered offices at 175 Ghent Road,
Fairlawn, Ohio 44333-3300. 
  

 3 

 (h) Board: The Board of Directors of the Company. 
  
 (i) Disability: A permanent and total disability, physical or
mental, as defined in the OMNOVA Solutions Long-Term Disability program and as determined by the Committee. 
  
 (j) Employee: Each full-time salaried employee (including, without limitation, a Director who also is an employee) of the Company or a
Participating Subsidiary, who is not in a bargaining unit represented by a labor organization. 
  
 (k) Equity Incentive Plan: The OMNOVA Solutions Inc. Amended and Restated 1999 Equity and Performance Incentive Plan, as such plan may be
amended from time to time, or such other plan as may be enacted for the purpose of providing equity compensation to the Company’s employees and directors. 
  

(l) Fiscal Year: The Company’s fiscal year which is the annually recurring period of twelve (12) consecutive calendar months,
commencing on December 1 and ending on November 30. 
  
 (m) Program: The OMNOVA Solutions Inc. Long-Term Incentive Program, as described in this document. 
  
 (n) Participant: With respect to any Performance Period, an Employee who, at the beginning of the Performance Period, is designated by the
Committee as a Participant for such Performance Period. In addition, the Chief Executive Officer shall have discretion to designate new Participants with respect to any Performance Period only during the first Fiscal Year of such Performance Period.

  
 (o) Participating Subsidiary: Any domestic
corporation in which the Company owns directly, or indirectly through a subsidiary, at least fifty percent (50%) of the total combined voting power of all classes of stock and whose directors adopt and ratify the Program in a manner determined
by the Committee. 
  
 (p) Performance Award: A dollar
amount determined pursuant to Article 4 and paid to a Participant in cash or in Shares, or any combination thereof, pursuant to Article 6. 
  

 4 

 (q) Performance Criteria: The measures of economic achievement selected by the Committee for
a specific Performance Period in accordance with Section 4.2. 
  
 (r) Performance Goals: The specified levels of economic achievement, based on the selected Performance Criteria, established by the Committee in accordance with Section 4.3. 
  
 (s) Performance Period: A period of multiple consecutive Fiscal
Years authorized by the Committee in accordance with Section 5.1, but in no event less than two consecutive Fiscal Years. 
  
 (t) Outside Director: A member of the Board who satisfies the requirements of Section 303A.02 of the New York Stock Exchange Listed
Company Manual, as such requirements may be amended or modified from time to time. 
  
 (u) Share: A share of the voting common stock of the Company. 
  
 (v) Market Value: The closing price for Shares as reported in the New York Stock Exchange Composite
Transactions in the Wall Street Journal or similar publication selected by the Committee for the relevant date if Shares were traded on such day or, if none were then traded, the last prior day on which Shares were so traded. 
  
 2.2 Gender and Number: Except as otherwise indicated by the context, any
masculine term used herein also includes the feminine; any singular term includes the plural thereof; and any plural term includes the singular thereof. 
  
 2.3 Time of Exercise: Any action or right specified in the Program may be taken or exercised at any time and from time to time unless a specific time
is designated herein for the taking or exercise thereof. 
  
 2.4
Amendments: The Program and each law and/or regulation mentioned herein will be deemed to include each and every amendment thereof. 
  
 2.5 Severability: If any provision of the Program is held illegal or invalid for any reason, the illegal or invalid provision will be severed and, to
the extent possible, the remaining provisions of the program will be enforced as if such illegal or invalid provision had not been included herein. 
  

 5 

 3. Overview of the Program 
  

The Program is designed to allow Participants to earn Performance Awards based upon attainment by the Company and/or the appropriate Participating Subsidiary or
division of specific Performance Goals established by the Committee for each Performance Period. For each Performance Period, the Committee shall approve (i) the Employees designated as Participants in the Program, (ii) Performance
Criteria (Section 4.2) and (iii) Performance Goals (Section 4.3). 
  
 4.
Performance Awards 
  
 4.1 Eligibility for Performance
Awards: Upon attainment and satisfaction of the Performance Goals and other specific terms and conditions established in accordance with this Article 4, each Participant shall be entitled to receive a Performance Award following the
conclusion of the applicable Performance Period. A Performance Award shall constitute a dollar amount calculated as a percentage of the Participant’s Average Annual Compensation in accordance with Section 4.4, and shall be paid, at
the discretion of the Committee, in cash or in Shares, or any combination thereof, in accordance with Section 6.1. Any Shares paid in full or partial payment of a Performance Award earned under this Plan shall be issued pursuant to the
Company’s Equity Incentive Plan. 
  
 4.2 Performance
Criteria: For the purpose of setting Performance Goals, the Committee shall establish Performance Criteria for each Performance Period. The Committee may use such measures as return on total capital, return on assets employed, return on
equity, earnings growth, revenue growth, cash flow, comparisons to peer companies or such other measure or measures of performance in such manner as the Committee deems appropriate. Different Performance Criteria may be established for each
operating division and for the Company as a whole. 
  
 4.3 Performance
Goals: Based upon the Performance Criteria chosen for a Performance Period, the Committee shall establish precise measures of achievement as specified Performance Goals for that Performance Period. 
  
 (a) The Committee may specify different Performance Goals for each
division, and for the Company as a whole and may determine separately the applicability and relative weighting of such different Performance Goals for each Participant. 
  
 (b) The Committee shall establish Performance Goals for any Performance Period within a reasonable period of time
after the start of the Performance Period. 
  

 6 

 4.4 Amounts of Performance Awards: The amount of a Participant’s Performance Award, if any,
shall be determined by the Committee for each Performance Period, and generally will provide a Performance Award payable as a specified percentage of the Participant’s Average Annual Compensation for attainment of the threshold, target or
maximum Performance Goal established by the Committee. 
  
 5. Performance Periods

  
 Subject to the Committee’s adoption of Performance Criteria
and Performance Goals pursuant to Article 4, there shall be successive and overlapping Performance Periods having a duration as established by the Committee, but no less than two Fiscal Years each.  
  
 6. Payment of Awards 
  
 6.1 Payment of Awards: Following the conclusion of a Performance Period, payment in settlement of a Participant’s
Performance Award, if any, for such Performance Period shall be made in cash or in Shares, or any combination thereof, at the discretion of the Committee on or before June 1st. If the payment or any portion thereof is settled in Shares, such
payment shall be issued pursuant to the Company’s Equity Incentive Plan and shall be subject to the following conditions: 
  
 (a) Prior to converting the dollar amount of the Participant’s Performance Award into Shares, the Company shall first deduct and pay over to
the applicable taxing authority any federal, state or local taxes of any kind required by law to be withheld with respect to such payments. 
  
 (b) The net dollar amount of the Participant’s Performance Award after withholding of taxes in accordance with subsection (a) shall be
converted into a number of Shares having a Market Value, on the date determined by the Committee, equal to the amount of the payment to be made. 
  
 (c) Shares payable to a Participant in respect of a Performance Award shall be issued in the name of the Participant on one stock certificate, and
such stock certificate shall be delivered to the Participant. 
  
 6.2
Nontransferability: All rights to payment under Performance Awards shall be nontransferable other than by will or by the laws of descent and distribution in accordance with Article 6 hereof. 
  

 7 

 6.3 Tax Withholding: The Company shall have the right to deduct from any payment made under the
program any federal, state or local taxes of any kind required by law to be withheld with respect to such payments or to take such other action as may be necessary in the opinion of the Company to satisfy all obligation for the payment of such
taxes. 
  
 7. Rights to Performance Awards After Termination of Employment

  
 7.1 In General: Except in the event of a Change in
Control as described in Section 7.2, a Participant’s right to receive Performance Awards following any termination of employment shall be determined pursuant to this Section 7.1. Upon termination of a Participant’s employment
with the Company or a Participating Subsidiary for any reason, the Participant shall be entitled to receive, at such times as normally payable, any Performance Award due to him for any Performance Period already completed. However, a Participant
shall not be entitled to receive a Performance Award for any Performance Period which has not been completed at the Participant’s termination date, except that the Committee shall have discretion to pay a partial Performance Award to a
terminated Participant for significant individual contributions. 
  
 7.2
Change in Control: In the event a Participant’s employment with the Company or a Participating Subsidiary is terminated within three years following a Change in Control either involuntarily (other than for death, disability or cause)
or voluntarily pursuant to Section 3(b) of a Severance Agreement between the Participant and the Company, the Participant shall be entitled to immediate payment of (a) any Performance Award due to him at the time of his termination for any
Performance Period already completed, and (b) a prorated Performance Award for each Performance Period which has not been completed at the time of his termination, calculated using the “target” attainment of Performance Goals for that
portion of any Performance Period not completed. 
  
 8. Beneficiary Designation

  
 8.1 Designation: A Participant may name any
Beneficiary (contingently or successively) to whom any benefit under the Program is to be paid if the Participant dies before receiving such benefit. Absent such designation, any benefit which is due but not paid to a Participant under the program
during his lifetime will be payable to the Participant’s estate. 
  

 8 

 8.2 Effectiveness: The designation of a Beneficiary will be effective only when the Participant
designates his Beneficiary in the form prescribed by the Company and delivers it to the Company’s Secretary during the Participant’s lifetime. 
  
 8.3 Revocation: The designation of a Beneficiary as herein provided will revoke each prior designation of a Beneficiary by the Participant.

  
 9. Rights of Employees 
  
 9.1 Participation: Except as provided in Article 4, no Employee will
have the right to participate in the Program or, having been a Participant for any Performance Period, to continue to be a Participant in any subsequent Performance Period. 
  
 9.2 Employment: Nothing in the Program will interfere with or limit the right of the Company or a Participating
Subsidiary to terminate any Participant’s employment, nor confer to any Participant any right to continue in the employ of the Company or a Participating Subsidiary. 
  
 9.3 Transfer: For purposes of the program, transfer of a Participant’s employment between the Company and a
Participating Subsidiary or between Participating Subsidiaries will not be deemed a termination of employment. 
  
 9.4 Compensation: No benefit or other amount paid to a Participant pursuant to the Program will be included in the Participant’s compensation or
earnings for purposes of any pension or other employee benefit program of the Company or any Participating Subsidiary. 
  
 10. Administration 
  
 10.1 Committee: The Committee will administer the Program. 
  
 10.2 Power of the Committee: The Committee will have full authority and power to (i) interpret and construe the Program; and (ii) establish,
amend and/or waive rules and regulations for the Program’s administration. 
  
 10.3 Committee Decisions: The Committee will make all determinations and decisions hereunder by not less than a majority of its members. The Committee may act or take action by written instrument or vote at a meeting convened
after reasonable notice. The Committee’s determinations and decisions hereunder, and related orders or resolutions, will be final, binding and conclusive on all persons, including the 

  

 9 

 
Company, its stockholders, Participating Subsidiaries, employees, Participants and Beneficiaries. 
  
 10.4 Delegation: The Committee may delegate any authority or power conferred to it under the Program as and to the
extent permitted by law. 
  
 11. Disputes 
  
 11.1 Disputes: The Committee will have full and exclusive
authority to determine all disputes and controversies concerning the interpretation of the Program to the fullest extent permitted by law. 
  
 11.2 Notice: If any Participant disputes any decision or determination by the Committee, the Company or any Participating Subsidiary concerning the
administration of the Program or any provision of the Program, the Participant must give written notice to the Committee as to such dispute at least ninety (90) days prior to commencing any lawsuit or legal proceeding in connection therewith.
The Participant must give such notice of dispute by delivering to the Company’s Secretary written notice which identifies the dispute and any provision of the Program in question. 
  
 11.3 Decision: Promptly (but within seventy-five (75) days after notice of dispute), the Committee will review and
decide the dispute and give the Participant written notice of its decision. Except as provided in Section 11.4, the Committee’s decision will be final and binding on the Company, the Company’s shareholders, Participating Subsidiaries,
and the Participant (including his Beneficiary). 
  
 11.4
Lawsuit: A Participant may institute a lawsuit in connection with the Committee’s decision involving his rights under the Program within one hundred and eighty (180) days after receiving the Committee’s decision.

  
 12. Amendment and Termination 
  
 12.1 Amendment and Termination: The Board may terminate, amend, or
modify the Program at any time or for any reason. 
  
 12.2 Performance
Awards: No termination, amendment, or modification of the Program will in any manner adversely affect any Participant’s rights to receive a Performance Award previously earned under the Program. 
  
  

 10 

 13. Indemnification 
  
 13.1 Indemnity: The Company will defend and indemnify each person who is or has been a member of the Committee in respect of any claim which is
asserted against him and is based on his action or failure to take action under or in connection with the program or any agreement related to the Program; provided that such person gives the Company notice of such claim, cooperates with the Company
in defense of such claim, permits the Company to control the defense of such claim prior to his undertaking any defense on his own behalf and confers to the Company full authority to compromise and settle the claim. 
  
 13.2 Additional Right: The indemnity provided under Section 13.1
will be in addition to, and not in lieu of, any other right of indemnification to which such person may be entitled under the Company’s Code of Regulations, as a matter of law or otherwise, and will not exclude any other power that the Company
may have to defend and indemnify him. 
  
 14. Miscellaneous 
  
 14.1 Unfunded Program: The Program shall be unfunded and the Company
shall not be required to segregate any assets that may at any time be represented by Performance Awards under the program. No obligation of the Company shall be deemed to be secured by any pledge of, or other encumbrance on, any property of the
Company. 
  
 14.2 Costs of Program: The costs and expenses of
administering the Program shall be borne by the Company. 
  
 14.3
Governing Law: To the extent not preempted by federal law, the Program and all agreements hereunder will be governed by and interpreted in accordance with the laws of the State of Ohio. 
  

 11

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