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Exhibit 10.1
NON-COMPETITION, NON-SOLICITATION
AND CONFIDENTIALITY AGREEMENT
THIS NON-COMPETITION, NON-SOLICITATION AND CONFIDENTIALITY
AGREEMENT (this " Agreement "), which is effective as of
January 31, 2007 (the " Effective Date "), is by and
among L. Don Stricklin, an individual who resides in La Grange,
Texas (the " Undersigned "), Texas United Bancshares, Inc.,
a Texas corporation (the " Company "), and Prosperity
Bancshares, Inc., a Texas corporation (" Prosperity
Bancshares "). Prosperity Bancshares and Prosperity Bank, a
Texas banking association are collectively referred to herein as "
Prosperity ."
WHEREAS, this Agreement is being entered into in connection with
the Agreement and Plan of Reorganization, dated as of July 18,
2006, as amended, by and between Prosperity Bancshares and the
Company (the " Merger Agreement "), pursuant to which the
Company will merge with and into Prosperity Bancshares, with
Prosperity Bancshares as the surviving entity (the " Merger
"); and
WHEREAS, Prosperity Bancshares has required as a condition to
consummation of the Merger that the Undersigned execute and deliver
a non-competition and non-solicitation agreement for the benefit of
Prosperity and the Undersigned’s agreement to and compliance
with the provisions of this Agreement are a material factor,
material inducement and material condition to Prosperity’s
participation in the transactions contemplated by the Merger
Agreement; and
WHEREAS, Prosperity has agreed to pay the Undersigned $65,000
per year for two years in consideration for the Undersigned
executing and delivering this Agreement; and
WHEREAS, the Undersigned will receive pecuniary and other
benefits as a result of the Merger; and
WHEREAS, the Undersigned, as a director, executive officer
and/or shareholder of the Company, as the case may be, has had
access to certain Confidential Information (as hereinafter
defined), including, without limitation, information concerning the
Company’s business and the relationships between the Company,
its subsidiaries and their customers, and the Undersigned will
continue to have access to Confidential Information and may have
access to new Confidential Information of the Company; and
WHEREAS, the Undersigned recognizes that Prosperity Bancshares
would not have entered into the Merger Agreement without the
Undersigned agreeing to the terms and conditions of this Agreement;
and
WHEREAS, any capitalized term not defined herein shall have the
meaning set forth in the Merger Agreement;
NOW, THEREFORE, in consideration of the good and
valuable consideration contained herein and in the Merger
Agreement, the receipt and sufficiency of which are hereby
acknowledged, the Undersigned hereby agrees as follows:
1. The Undersigned agrees that he will not, at any time after
the Effective Date and through and including the Closing Date make
any unauthorized disclosure, directly or indirectly, of any
Confidential Information of the Company or third parties, or make
any use thereof, directly or indirectly. The Undersigned further
agrees that he will not, at any time after the Effective Date make
any unauthorized disclosure, directly or indirectly, of any
Confidential Information of Prosperity or third parties, or make
any use thereof, directly or indirectly and that he shall deliver
promptly to Prosperity at any time after the Effective Time of the
Merger, at its reasonable request, without retaining any copies,
all documents and other material in the Undersigned’s
possession at that time relating, directly or indirectly, to any
Confidential Information or other information of the Company, or
Confidential Information or other information regarding third
parties, learned in such person’s position as a director,
officer or shareholder of the Company.
For purposes of this Agreement, " Confidential
Information " means and includes Prosperity’s and/or the
Company’s confidential and/or proprietary information and/or
trade secrets, including those of their respective subsidiaries,
including Prosperity Bank, Gateway National Bank, GNB Financial,
n.a., Northwest Bank and State Bank, 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 following: 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, (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. The Undersigned acknowledges that the Company’s
and Prosperity’s business is highly competitive, that this
Confidential Information constitutes a valuable, special and unique
asset to be acquired by Prosperity in the Merger and that
protection of such Confidential Information against unauthorized
disclosure and use is of critical importance to the Company and
Prosperity.
2. The Undersigned agrees that, for the period
(the " Non-Competition Period ") beginning on the Effective
Date and through the second anniversary of the Closing Date, the
Undersigned will not, in any capacity, directly or
indirectly:
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a)
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compete or engage, anywhere in the geographic
area comprised of the fifty (50) mile radius surrounding any
banking center of the Company or Prosperity or any other banking
center operated or owned directly or indirectly by Prosperity (the
" Market Area "), in a business similar to that of the
Company or Prosperity, or compete or engage in that type of
business which the Company or Prosperity has plans to engage in, or
any business which the Company or Prosperity has engaged in during
the preceding twelve (12) month period if within the
twenty-four (24) months before the Closing Date, the
Undersigned had access or potential access to Confidential
Information regarding the proposed plans or the business in which
the Company or Prosperit
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