Exhibit 10.1
First Financial Bankshares, Inc.
Supplemental Executive Retirement Plan
As Amended and Restated Effective July 26, 2022
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ARTICLE 1 | DEFINITIONS........................................................................................ | 1 |
ARTICLE 2 | PARTICIPATION.................................................................................. | 9 |
ARTICLE 3 | COMPANY CONTRIBUTIONS........................................................... | 9 |
ARTICLE 4 | ELECTIVE DEFERRAL CONTRIBUTIONS....................................... | 10 |
4.1 | Base Compensation Deferrals......................................................................... | 10 |
4.2 | Bonus Deferrals............................................................................................... | 11 |
4.3 | Deferred RSUs................................................................................................ | 12 |
4.4 | Year-End Correction/Adjustment of Deferrals............................................... | 13 |
ARTICLE 5 | PLAN ACCOUNTS................................................................................ | 13 |
5.1 | Establishment of Accounts.............................................................................. | 13 |
5.2 | Selection of Subaccount.................................................................................. | 13 |
5.3 | Debiting and Crediting of Accounts............................................................... | 15 |
5.4 | Statement of Accounts.................................................................................... | 15 |
ARTICLE 6 | VESTING OF ACCOUNTS................................................................... | 16 |
6.1 | Vesting of Base Compensation Deferrals....................................................... | 16 |
6.2 | Vesting of Bonus Deferrals............................................................................. | 16 |
6.3 | Vesting of Deferred RSUs.............................................................................. | 16 |
6.4 | Vesting of Company Contributions................................................................ | 16 |
6.5 | Forfeiture of Unvested Company Contributions............................................. | 16 |
ARTICLE 7 | INVESTMENT OF ACCOUNTS.......................................................... | 16 |
7.1 | General............................................................................................................ | 16 |
7.2 | Available Investment Options......................................................................... | 17 |
7.3 | Transmission of Investment Directions.......................................................... | 17 |
7.4 | Default Investment Direction.......................................................................... | 17 |
7.5 | Losses Under the Plan..................................................................................... | 17 |
7.6 | Administrative Expenses................................................................................. | 17 |
ARTICLE 8 | DISTRIBUTIONS.................................................................................. | 18 |
8.1 | Time of Payment............................................................................................. | 18 |
8.2 | Default Elections............................................................................................. | 18 |
8.3 | Distributions Upon Death............................................................................... | 18 |
8.4 | Medium of Payment........................................................................................ | 18 |
8.5 | Source of Distribution and Unsecured General Creditor Status..................... | 18 |
8.6 | Payments Due to Unforeseeable Emergency.................................................. | 18 |
ARTICLE 9 | ACCELERATION EVENTS.................................................................. | 19 |
9.1 | Permissible Acceleration Events..................................................................... | 19 |
ARTICLE 10 | DESIGNATION OF BENEFICIARIES................................................. | 21 |
10.1 | Beneficiary...................................................................................................... | 21 |
10.2 | Spousal Consent for Beneficiary Designation Change................................... | 21 |
10.3 | Revocation of Spousal Beneficiary Designation Upon Divorce..................... | 21 |
10.4 | Acknowledgment............................................................................................ | 22 |
10.5 | No Beneficiary Designation............................................................................ | 22 |
10.6 | Uncertainty Concerning Beneficiary.............................................................. | 22 |
ARTICLE 11 | CLAIMS PROCEDURES...................................................................... | 22 |
11.1 | Presentation of Claim...................................................................................... | 22 |
11.2 | Notification of Decision.................................................................................. | 22 |
11.3 | Review of a Denied Claim.............................................................................. | 24 |
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11.4 | Decision on Review........................................................................................ | 24 |
11.5 | Designation of Authorized Representative..................................................... | 25 |
11.6 | Legal Action.................................................................................................... | 25 |
11.7 | Deadline to File Claim.................................................................................... | 25 |
11.8 | Deadline to File Legal Action......................................................................... | 25 |
11.9 | Knowledge of Fact by Participant Imputed to Beneficiary and Others.......... | 25 |
ARTICLE 12 | TRUST.................................................................................................... | 26 |
ARTICLE 13 | AMENDMENT AND TERMINATION................................................ | 26 |
ARTICLE 14 | ADMINISTRATION.............................................................................. | 26 |
14.1 | Administrator.................................................................................................. | 26 |
14.2 | Powers of Administrator................................................................................. | 26 |
14.3 | Interpretations................................................................................................. | 27 |
14.4 | Determinations................................................................................................ | 27 |
14.5 | Indemnification............................................................................................... | 27 |
14.6 | Bond and Expenses......................................................................................... | 27 |
14.7 | Right to Suspend Payments And Correct Errors............................................. | 27 |
14.8 | Reliance........................................................................................................... | 28 |
ARTICLE 15 | GENERAL PROVISIONS..................................................................... | 28 |
15.1 | Status of Plan.................................................................................................. | 28 |
15.2 | Unsecured General Creditor............................................................................ | 28 |
15.3 | Securities and Other Laws.............................................................................. | 29 |
15.4 | No Assignment................................................................................................ | 29 |
15.5 | Coordination with Other Benefit Arrangements............................................. | 29 |
15.6 | Court Order..................................................................................................... | 29 |
15.7 | Incompetent..................................................................................................... | 30 |
15.8 | Information Required...................................................................................... | 30 |
15.9 | Communications by Participant or Beneficiary.............................................. | 30 |
15.10 | Communications by Administrator................................................................. | 30 |
15.11 | No Employment Rights................................................................................... | 30 |
15.12 | Effect of Payment............................................................................................ | 30 |
15.13 | Withholding of Taxes...................................................................................... | 30 |
15.14 | Administrative Fees........................................................................................ | 31 |
15.15 | Waivers........................................................................................................... | 31 |
15.16 | Benefit............................................................................................................. | 31 |
15.17 | Severability..................................................................................................... | 31 |
15.18 | Captions.......................................................................................................... | 31 |
15.19 | Choice of Law; Venue.................................................................................... | 31 |
15.20 | Section 409A of the Code............................................................................... | 31 |
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INTRODUCTION
First Financial Bankshares, Inc. a Texas corporation (the “Company”), previously established the First Financial Bankshares, Inc. Supplemental Executive Retirement Plan (the “Plan”) effective January 1, 2019 for the benefit of eligible employees of the Company and its affiliates. This amendment and restatement of the Plan is effective July 26, 2022 (the “Effective Date”). All Company Contributions credited to the Plan before the Effective Date or subject to a Company Contribution Agreement entered into before the Effective Date shall be governed by the terms of the Plan in effect immediately prior to the Effective Date.
It is intended that the Plan comply with Section 409A of the Code so as to prevent the inclusion in gross income of any amounts deferred hereunder in a taxable year prior to the taxable year or years in which such amounts would otherwise actually be distributed or made available to Participants and their Beneficiaries. The provisions of the Plan shall be construed, administered, and governed in a manner that effects such intent. Although the Company and the Administrator shall use their reasonable best efforts to avoid the imposition of taxation, interest, and penalties under Section 409A of the Code, the tax treatment of benefit accruals and payments under this Plan is not warranted or guaranteed. Neither the Company nor the Administrator shall be held liable for any taxes, interest, penalties or other monetary amounts owed by any Employee or Beneficiary or other taxpayer as a result of the Plan. Any reference in this Plan to Section 409A of the Code will also include any proposed, temporary, or final regulations, or any other guidance promulgated thereunder by the U.S. Department of the Treasury or the Internal Revenue Service (collectively, the “Nonqualified Deferred Compensation Rules”).
Definitions
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Supplemental Executive Retirement Plan
(As Amended and Restated Effective July 26, 2022)
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(As Amended and Restated Effective July 26, 2022)
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(As Amended and Restated Effective July 26, 2022)
Notwithstanding the foregoing, for purposes of an amount hereunder that constitutes deferred compensation under the Nonqualified Deferred Compensation Rules, to the extent the impact of a Change of Control on such amount would subject a Participant to additional taxes under the Nonqualified Deferred Compensation Rules, a Change of Control for purposes of such amount will mean both a Change of Control and a “change in the ownership of a corporation,” “change in the effective control of a corporation,” or a “change in the ownership of a substantial portion of a corporation’s assets” within the meaning of the Nonqualified Deferred Compensation Rules as applied to the Company.
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Supplemental Executive Retirement Plan
(As Amended and Restated Effective July 26, 2022)
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(As Amended and Restated Effective July 26, 2022)
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(As Amended and Restated Effective July 26, 2022)
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(As Amended and Restated Effective July 26, 2022)
Participation
Company CONTRIBUTIONS
The Company shall notionally credit an Active Participant’s Account under the Plan with (a) the amount(s) specified in such Participant’s Company Contribution Agreement, and/or (b) such additional amounts as may be approved by the Administrator from time to time. Each dollar
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Supplemental Executive Retirement Plan
(As Amended and Restated Effective July 26, 2022)
so credited is herein referred to as an “Company Contribution.” Company Contributions shall be credited to a Participant’s Account under the Plan at such time(s) specified in the Participant’s Company Contribution Agreement or as otherwise approved by the Administrator. Notwithstanding anything in the Plan or any Company Contribution Agreement to the contrary, in no event will Company Contributions be credited pursuant to this Article 3 to the Account of a Participant who is not an Active Participant.
ELECTIVE DEFERRAL CONTRIBUTIONS
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(As Amended and Restated Effective July 26, 2022)
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(As Amended and Restated Effective July 26, 2022)
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(As Amended and Restated Effective July 26, 2022)
Plan Accounts
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(As Amended and Restated Effective July 26, 2022)
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(As Amended and Restated Effective July 26, 2022)
For any Subaccount for which a Participant does not designate a form of payment, such Participant will be deemed to have elected to have such Subaccount paid in the form of a single lump sum payment.
The election (or deemed election) of a form of payment for each of the Participant’s Subaccounts will be irrevocable by the Participant, except that the Participant may elect a change of the form of benefit payment in effect for a Subaccount payable by reason of the occurrence of the Deferred Payment Date for such Subaccount if, and at the same time and under the same conditions, the Participant has a right to change his Deferred Payment Date for such Subaccount in accordance with Section 5.2(b).
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(As Amended and Restated Effective July 26, 2022)
Vesting of Accounts
(c) A Change of Control.
Investment of accounts
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(As Amended and Restated Effective July 26, 2022)
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(As Amended and Restated Effective July 26, 2022)
DistributionS
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(As Amended and Restated Effective July 26, 2022)
Acceleration Events.
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(As Amended and Restated Effective July 26, 2022)
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(As Amended and Restated Effective July 26, 2022)
Designation of Beneficiaries
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Claims Procedures
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(As Amended and Restated Effective July 26, 2022)
Before the Administrator issues an adverse benefit determination on review of a disability claim appeal, the Administrator must disclose to the claimant, free of charge, any new or additional evidence considered, relied upon, or generated by, or at the direction of, the Administrator in connection with the disability claim, and any new or additional rationale upon which such adverse benefit determination may be based.
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Supplemental Executive Retirement Plan
(As Amended and Restated Effective July 26, 2022)
Trust
The Company may establish a trust to assist it in meeting its obligations under the Plan. Any such trust will conform to the requirements of a grantor trust under Revenue Procedures 92-64 and 92-65 and at all times during the continuance of the trust the principal and income of the trust will be subject to claims of general creditors of the Company under federal and state law. The establishment of such a trust would not be intended to cause Participants to realize current income on amounts contributed thereto, and the trust would be so interpreted and administered.
Amendment and Termination
Although the Company anticipates that the Plan will continue indefinitely, there is no guarantee that the Company will not terminate the Plan. Accordingly, the Board reserves the right to amend or terminate the Plan at any time; provided, however, that no amendment or termination of the Plan shall impair the rights of any Participant unless mutually agreed otherwise in writing between the Participant and the Board. If the Plan is terminated, the investment options available to Participants following the Plan termination will be comparable in number and type to those investment options available to Participants as of the date of Plan termination. Following the termination of the Plan, a Participant’s Account balance will remain in the Plan until the Participant or the Participant’s Beneficiary becomes eligible to receive a distribution.
Administration
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(As Amended and Restated Effective July 26, 2022)
The Administrator may engage agents to assist it and may engage legal counsel.
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General Provisions
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(As Amended and Restated Effective July 26, 2022)
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(As Amended and Restated Effective July 26, 2022)
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(As Amended and Restated Effective July 26, 2022)
{Signature page follows.}
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Supplemental Executive Retirement Plan
(As Amended and Restated Effective July 26, 2022)
IN WITNESS WHEREOF, the Company has caused the Plan to be duly adopted effective as of the date first written above.
First Financial Bankshares, Inc.
By: | /s/ F. Scott Dueser |
| July 26, 2022 |
Name: | F. Scott Dueser |
| Date |
Title: | Chairman, President and Chief Executive Officer |
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First Financial Bankshares, Inc. Signature Page
Supplemental Executive Retirement Plan
(As Amended and Restated Effective July 26, 2022)