Common use of Conditions of Closing and Borrowing Clause in Contracts

Conditions of Closing and Borrowing. 19 SECTION 4.1 Conditions to Closing and Initial Revolving Credit Loan 19 SECTION 4.2 Conditions to All Revolving Credit Loans 22 ARTICLE V. REPRESENTATIONS AND WARRANTIES OF THE BORROWER 22 SECTION 5.1 Organization; Power; Qualification 22 SECTION 5.2 Ownership 22 SECTION 5.3 Authorization Enforceability 23 SECTION 5.4 Compliance of Agreement, Loan Documents and Borrowing with Laws, Etc. 23 SECTION 5.5 Compliance with Law; Governmental Approvals 23 SECTION 5.6 Tax Returns and Payments 24 SECTION 5.7 Intellectual Property Matters 24 SECTION 5.8 Environmental Matters 24 SECTION 5.9 Employee Benefit Matters 25 SECTION 5.10 Margin Stock 26 SECTION 5.11 Government Regulation 26 SECTION 5.12 Material Contracts 26 SECTION 5.13 Employee Relations 26 SECTION 5.14 Burdensome Provisions 26 SECTION 5.15 Financial Statements 27 SECTION 5.16 No Material Adverse Change 27 SECTION 5.17 Solvency 27 SECTION 5.18 Titles to Properties 27 SECTION 5.19 Insurance 27 SECTION 5.20 Liens 27 SECTION 5.21 Indebtedness and Guaranty Obligations 27 SECTION 5.22 Litigation 27 SECTION 5.23 Absence of Defaults 28 SECTION 5.24 OFAC 28 SECTION 5.25 Investment Bankers’ and Similar Fees 28 SECTION 5.26 Disclosure 28 SECTION 5.27 Regulatory Issues 28 ARTICLE VI. FINANCIAL INFORMATION AND NOTICES 28 SECTION 6.1 Financial Statements 28 SECTION 6.2 Officer’s Compliance Certificate 29 SECTION 6.3 Regulatory Reports 29 SECTION 6.4 Other Reports 30 SECTION 6.5 Notice of Litigation and Other Matters 30 ARTICLE VII. AFFIRMATIVE COVENANTS 31 SECTION 7.1 Preservation of Corporate Existence and Related Matters 31 SECTION 7.2 Maintenance of Property and Licenses 32 SECTION 7.3 Insurance 32 SECTION 7.4 Accounting Methods and Financial Records 32 SECTION 7.5 Payment of Taxes and Other Obligations 32 SECTION 7.6 Compliance With Laws and Approvals 32 SECTION 7.7 Environmental Laws 32 SECTION 7.8 Compliance with ERISA 33 SECTION 7.9 Compliance with Agreements 33 SECTION 7.10 Visits and Inspections; Lender Meetings 33 SECTION 7.11 Lender Meetings 33 SECTION 7.12 Further Assurances 33 ARTICLE VIII. FINANCIAL COVENANTS 34 SECTION 8.1 Well Capitalized 34 SECTION 8.2 Minimum Return on Assets 34 SECTION 8.3 Loan Loss Reserve to Non 34 SECTION 8.4 Non-Performing Assets 34 ARTICLE IX. NEGATIVE COVENANTS 34 SECTION 9.1 Limitations on Indebtedness 34 SECTION 9.2 Limitations on Liens 35 SECTION 9.3 Limitations on Fundamental Changes 36 SECTION 9.4 Limitations on Restricted Payments 36 SECTION 9.5 Transactions with Affiliates 36 SECTION 9.6 Certain Accounting Changes; Organizational Documents 37 SECTION 9.8 No Further Negative Pledges; Restrictive Agreements 37 SECTION 9.9 Nature of Business 38 SECTION 9.10 Limitations on Investments 38 SECTION 9.11 Use of Proceeds 38 SECTION 9.12 Restrictions on Transfers of Collateral 39 SECTION 9.13 Reserved 39 SECTION 9.14 Certain Restrictions Regarding Securities 39 ARTICLE X. DEFAULT AND REMEDIES 39 SECTION 10.1 Events of Default 39 SECTION 10.2 Remedies 41 SECTION 10.3 Rights and Remedies Cumulative; Non-Waiver; Etc. 44 SECTION 10.4 Crediting of Payments and Proceeds 44 ARTICLE XI. MISCELLANEOUS 44 SECTION 11.1 Notices 44 SECTION 11.2 Amendments, Waivers and Consents 45 SECTION 11.3 Expenses; Indemnity 45 SECTION 11.4 Right of Set Off 47 SECTION 11.5 Governing Law; Jurisdiction, etc. 47 SECTION 11.6 Waiver of Jury Trial 47 SECTION 11.7 Injunctive Relief; Punitive Damages 48 SECTION 11.8 Accounting Matters 48 SECTION 11.9 Successors and Assigns; Participations 48 SECTION 11.10 Confidentiality 49 SECTION 11.11 Performance of Duties 49 SECTION 11.12 All Powers Coupled with Interest 49 SECTION 11.13 Survival 49 SECTION 11.14 Titles and Captions 50 SECTION 11.15 Severability of Provisions 50 SECTION 11.16 Counterparts; Integration; Effectiveness; Electronic Execution 50 SECTION 11.17 Term of Agreement 50 SECTION 11.18 USA Patriot Act 51 SECTION 11.19 Independent Effect of Covenants 51 SECTION 11.20 Inconsistencies with Other Documents 51 SECTION 11.21 FINAL AGREEMENT 51 EXHIBITS Exhibit A - Form of Note Exhibit B - Form of Notice of Borrowing Exhibit C - Form of Officer’s Compliance Certificate SCHEDULES Schedule 1.1 - F&M Shareholders Schedule 5.1 - Jurisdictions of Organization Schedule 5.2 - Subsidiaries and Capitalization Schedule 5.6 - Pending Tax Audits Schedule 5.9 - ERISA Plans Schedule 5.10 - Margin Lending Schedule 5.13 - Labor and Collective Bargaining Agreements Schedule 5.21 - Indebtedness and Guaranty Obligations Schedule 9.2 - Existing Liens Schedule 9.5 - Transactions with Affiliates CREDIT AGREEMENT CREDIT AGREEMENT, dated as of December 22, 2014, by and among ALLEGIANCE BANCSHARES, INC., a Texas corporation (the “Borrower”), and Prosperity Bank (the “Lender”).

Conditions of Closing and Borrowing. 19 97 SECTION 4.1 6.1 Conditions to Closing and Initial Revolving Extensions of Credit Loan 19 97 SECTION 4.2 6.2 Conditions to All Revolving Extensions of Credit Loans 22 101 146960219_6 TABLE OF CONTENTS (continued) Page ARTICLE V. VII REPRESENTATIONS AND WARRANTIES OF THE BORROWER 22 CREDIT PARTIES 102 SECTION 5.1 7.1 Organization; Power; Qualification 22 102 SECTION 5.2 7.2 Ownership 22 102 SECTION 5.3 Authorization 7.3 Authorization; Enforceability 23 102 SECTION 5.4 7.4 Compliance of Agreement, Loan Documents and Borrowing with Laws, Etc. 23 Etc 103 SECTION 5.5 7.5 Compliance with Law; Governmental Approvals 23 103 SECTION 5.6 7.6 Tax Returns and Payments 24 103 SECTION 5.7 7.7 Intellectual Property Matters 24 104 SECTION 5.8 7.8 Environmental Matters 24 104 SECTION 5.9 7.9 Employee Benefit Matters 25 105 SECTION 5.10 7.10 Margin Stock 26 106 SECTION 5.11 7.11 Government Regulation 26 106 SECTION 5.12 Material Contracts 26 7.12 [Intentionally Omitted] 106 SECTION 5.13 7.13 Employee Relations 26 106 SECTION 5.14 7.14 Burdensome Provisions 26 107 SECTION 5.15 7.15 Financial Statements 27 107 SECTION 5.16 7.16 No Material Adverse Change 27 107 SECTION 5.17 7.17 Solvency 27 107 SECTION 5.18 Titles 7.18 Title to Properties 27 107 SECTION 5.19 Insurance 27 7.19 Litigation 107 SECTION 5.20 Liens 27 7.20 Anti-Corruption Laws and Sanctions 107 SECTION 5.21 Indebtedness and Guaranty Obligations 27 SECTION 5.22 Litigation 27 SECTION 5.23 7.21 Absence of Defaults 28 108 SECTION 5.24 OFAC 28 7.22 Senior Indebtedness Status 108 SECTION 5.25 Investment Bankers’ and Similar Fees 28 7.23 Disclosure 108 SECTION 5.26 Disclosure 28 7.24 Insurance 109 ARTICLE VIII AFFIRMATIVE COVENANTS 109 SECTION 5.27 Regulatory Issues 28 ARTICLE VI. FINANCIAL INFORMATION AND NOTICES 28 SECTION 6.1 8.1 Financial Statements 28 and Budgets 109 SECTION 6.2 Officer’s Compliance Certificate 29 SECTION 6.3 Regulatory Reports 29 SECTION 6.4 8.2 Certificates; Other Reports 30 110 SECTION 6.5 8.3 Notice of Litigation and Other Matters 30 ARTICLE VII. AFFIRMATIVE COVENANTS 31 111 SECTION 7.1 8.4 Preservation of Corporate Existence and Related Matters 31 112 146960219_6 TABLE OF CONTENTS (continued) Page SECTION 7.2 8.5 Maintenance of Property and Licenses 32 113 SECTION 7.3 8.6 Insurance 32 113 SECTION 7.4 8.7 Accounting Methods and Financial Records 32 113 SECTION 7.5 8.8 Payment of Taxes and Other Obligations 32 113 SECTION 7.6 8.9 Compliance With with Laws and Approvals 32 113 SECTION 7.7 8.10 Environmental Laws 32 113 SECTION 7.8 8.11 Compliance with ERISA 33 and Canadian Pension Laws 114 SECTION 7.9 Compliance with Agreements 33 8.12 Maintenance of Debt Ratings 114 SECTION 7.10 8.13 Visits and Inspections; Lender Meetings 33 Inspections 114 SECTION 7.11 Lender Meetings 33 8.14 Additional Subsidiaries and Collateral 115 SECTION 7.12 Further Assurances 33 ARTICLE VIII. FINANCIAL COVENANTS 34 SECTION 8.1 Well Capitalized 34 SECTION 8.2 Minimum Return on Assets 34 SECTION 8.3 Loan Loss Reserve to Non 34 SECTION 8.4 Non-Performing Assets 34 ARTICLE IX. NEGATIVE COVENANTS 34 SECTION 9.1 Limitations on Indebtedness 34 SECTION 9.2 Limitations on Liens 35 SECTION 9.3 Limitations on Fundamental Changes 36 SECTION 9.4 Limitations on Restricted Payments 36 SECTION 9.5 Transactions with Affiliates 36 SECTION 9.6 Certain Accounting Changes; Organizational Documents 37 SECTION 9.8 No Further Negative Pledges; Restrictive Agreements 37 SECTION 9.9 Nature of Business 38 SECTION 9.10 Limitations on Investments 38 SECTION 9.11 8.15 Use of Proceeds 38 116 SECTION 9.12 Restrictions on Transfers of Collateral 39 8.16 Corporate Governance 117 SECTION 9.13 Reserved 39 SECTION 9.14 Certain Restrictions Regarding Securities 39 ARTICLE X. DEFAULT AND REMEDIES 39 SECTION 10.1 Events of Default 39 SECTION 10.2 Remedies 41 SECTION 10.3 Rights and Remedies Cumulative; Non-Waiver; Etc. 44 SECTION 10.4 Crediting of Payments and Proceeds 44 ARTICLE XI. MISCELLANEOUS 44 SECTION 11.1 Notices 44 SECTION 11.2 Amendments, Waivers and Consents 45 SECTION 11.3 Expenses; Indemnity 45 SECTION 11.4 Right of Set Off 47 SECTION 11.5 Governing Law; Jurisdiction, etc. 47 SECTION 11.6 Waiver of Jury Trial 47 SECTION 11.7 Injunctive Relief; Punitive Damages 48 SECTION 11.8 Accounting Matters 48 SECTION 11.9 Successors and Assigns; Participations 48 SECTION 11.10 Confidentiality 49 SECTION 11.11 Performance of Duties 49 SECTION 11.12 All Powers Coupled with Interest 49 SECTION 11.13 Survival 49 SECTION 11.14 Titles and Captions 50 SECTION 11.15 Severability of Provisions 50 SECTION 11.16 Counterparts; Integration; Effectiveness; Electronic Execution 50 SECTION 11.17 Term of Agreement 50 SECTION 11.18 USA Patriot Act 51 SECTION 11.19 Independent Effect of Covenants 51 SECTION 11.20 Inconsistencies with Other Documents 51 SECTION 11.21 FINAL AGREEMENT 51 EXHIBITS Exhibit A - Form of Note Exhibit B - Form of Notice of Borrowing Exhibit C - Form of Officer’s Compliance Certificate SCHEDULES Schedule 1.1 - F&M Shareholders Schedule 5.1 - Jurisdictions of Organization Schedule 5.2 - Subsidiaries and Capitalization Schedule 5.6 - Pending Tax Audits Schedule 5.9 - ERISA Plans Schedule 5.10 - Margin Lending Schedule 5.13 - Labor and Collective Bargaining Agreements Schedule 5.21 - Indebtedness and Guaranty Obligations Schedule 9.2 - Existing Liens Schedule 9.5 - Transactions with Affiliates CREDIT AGREEMENT CREDIT AGREEMENT, dated as of December 22, 2014, by and among ALLEGIANCE BANCSHARES, INC., a Texas corporation (the “Borrower”), and Prosperity Bank (the “Lender”).8.17 Further Assurances 117

Conditions of Closing and Borrowing. 19 32 SECTION 4.1 Conditions to Closing and Initial Revolving Credit Loan 19 32 SECTION 4.2 Conditions to All Revolving Credit Loans 22 34 ARTICLE V. V REPRESENTATIONS AND WARRANTIES OF THE BORROWER 22 35 SECTION 5.1 Organization; Power; Qualification 22 35 SECTION 5.2 Ownership 22 35 SECTION 5.3 Authorization Enforceability 23 35 SECTION 5.4 Compliance of Agreement, Loan Documents and Borrowing with Laws, Etc. 23 Etc 35 SECTION 5.5 Compliance with Law; Governmental Approvals 23 36 SECTION 5.6 Tax Returns and Payments 24 36 SECTION 5.7 Intellectual Property Matters 24 36 SECTION 5.8 Environmental Matters 24 Matters. 36 SECTION 5.9 Employee Benefit Matters 25 Matters. 37 SECTION 5.10 Margin Stock 26 38 SECTION 5.11 Government Regulation 26 38 SECTION 5.12 Material Contracts 26 38 SECTION 5.13 Employee Relations 26 39 SECTION 5.14 Burdensome Provisions 26 39 SECTION 5.15 Financial Statements 27 39 SECTION 5.16 No Material Adverse Change 27 39 SECTION 5.17 Solvency 27 39 SECTION 5.18 Titles to Properties 27 39 SECTION 5.19 Insurance 27 39 SECTION 5.20 Liens 27 40 SECTION 5.21 Indebtedness and Guaranty Obligations 27 40 SECTION 5.22 Litigation 27 40 SECTION 5.23 Absence of Defaults 28 40 SECTION 5.24 OFAC 28 40 SECTION 5.25 Investment Bankers’ ' and Similar Fees 28 40 SECTION 5.26 Disclosure 28 SECTION 5.27 Regulatory Issues 28 40 ARTICLE VI. VI FINANCIAL INFORMATION AND NOTICES 28 41 SECTION 6.1 Financial Statements 28 Statements. 41 SECTION 6.2 Officer’s 's Compliance Certificate 29 41 SECTION 6.3 Regulatory Reports 29 Reports. 41 SECTION 6.4 Other Reports 30 Reports. 42 SECTION 6.5 Notice of Litigation and Other Matters 30 42 SECTION 6.6 Accuracy of Information 44 ARTICLE VII. VII AFFIRMATIVE COVENANTS 31 44 SECTION 7.1 Preservation of Corporate Existence and Related Matters 31 44 SECTION 7.2 Maintenance of Property and Licenses 32 Licenses. 44 SECTION 7.3 Insurance 32 44 SECTION 7.4 Accounting Methods and Financial Records 32 45 SECTION 7.5 Payment of Taxes and Other Obligations 32 45 SECTION 7.6 Compliance With Laws and Approvals 32 45 SECTION 7.7 Environmental Laws 32 45 SECTION 7.8 Compliance with ERISA 33 45 SECTION 7.9 Compliance with Agreements 33 SECTION 7.10 Visits and Inspections; Lender Meetings 33 SECTION 7.11 Lender Meetings 33 SECTION 7.12 Further Assurances 33 ARTICLE VIII. FINANCIAL COVENANTS 34 SECTION 8.1 Well Capitalized 34 SECTION 8.2 Minimum Return on Assets 34 SECTION 8.3 Loan Loss Reserve to Non 34 SECTION 8.4 Non-Performing Assets 34 ARTICLE IX. NEGATIVE COVENANTS 34 SECTION 9.1 Limitations on Indebtedness 34 SECTION 9.2 Limitations on Liens 35 SECTION 9.3 Limitations on Fundamental Changes 36 SECTION 9.4 Limitations on Restricted Payments 36 SECTION 9.5 Transactions with Affiliates 36 SECTION 9.6 Certain Accounting Changes; Organizational Documents 37 SECTION 9.8 No Further Negative Pledges; Restrictive Agreements 37 SECTION 9.9 Nature of Business 38 SECTION 9.10 Limitations on Investments 38 SECTION 9.11 Use of Proceeds 38 SECTION 9.12 Restrictions on Transfers of Collateral 39 SECTION 9.13 Reserved 39 SECTION 9.14 Certain Restrictions Regarding Securities 39 ARTICLE X. DEFAULT AND REMEDIES 39 SECTION 10.1 Events of Default 39 SECTION 10.2 Remedies 41 SECTION 10.3 Rights and Remedies Cumulative; Non-Waiver; Etc. 44 SECTION 10.4 Crediting of Payments and Proceeds 44 ARTICLE XI. MISCELLANEOUS 44 SECTION 11.1 Notices 44 SECTION 11.2 Amendments, Waivers and Consents 45 SECTION 11.3 Expenses; Indemnity 45 SECTION 11.4 Right of Set Off 47 SECTION 11.5 Governing Law; Jurisdiction, etc. 47 SECTION 11.6 Waiver of Jury Trial 47 SECTION 11.7 Injunctive Relief; Punitive Damages 48 SECTION 11.8 Accounting Matters 48 SECTION 11.9 Successors and Assigns; Participations 48 SECTION 11.10 Confidentiality 49 SECTION 11.11 Performance of Duties 49 SECTION 11.12 All Powers Coupled with Interest 49 SECTION 11.13 Survival 49 SECTION 11.14 Titles and Captions 50 SECTION 11.15 Severability of Provisions 50 SECTION 11.16 Counterparts; Integration; Effectiveness; Electronic Execution 50 SECTION 11.17 Term of Agreement 50 SECTION 11.18 USA Patriot Act 51 SECTION 11.19 Independent Effect of Covenants 51 SECTION 11.20 Inconsistencies with Other Documents 51 SECTION 11.21 FINAL AGREEMENT 51 EXHIBITS Exhibit A - Form of Note Exhibit B - Form of Notice of Borrowing Exhibit C - Form of Officer’s Compliance Certificate SCHEDULES Schedule 1.1 - F&M Shareholders Schedule 5.1 - Jurisdictions of Organization Schedule 5.2 - Subsidiaries and Capitalization Schedule 5.6 - Pending Tax Audits Schedule 5.9 - ERISA Plans Schedule 5.10 - Margin Lending Schedule 5.13 - Labor and Collective Bargaining Agreements Schedule 5.21 - Indebtedness and Guaranty Obligations Schedule 9.2 - Existing Liens Schedule 9.5 - Transactions with Affiliates CREDIT AGREEMENT CREDIT AGREEMENT, dated as of December 22, 2014, by and among ALLEGIANCE BANCSHARES, INC., a Texas corporation (the “Borrower”), and Prosperity Bank (the “Lender”).46

Conditions of Closing and Borrowing. 19 50 SECTION 4.1 6.1 Conditions to Closing and Initial Revolving Extensions of Credit Loan 19 50 SECTION 4.2 6.2 Conditions to All Revolving Extensions of Credit Loans 22 ARTICLE V. 52 Article VII. REPRESENTATIONS AND WARRANTIES OF THE BORROWER 22 CREDIT PARTIES 53 SECTION 5.1 7.1 Organization; Power; Qualification 22 53 SECTION 5.2 7.2 Ownership 22 54 SECTION 5.3 7.3 Authorization Enforceability 23 54 SECTION 5.4 7.4 Compliance of Agreement, Loan Documents and Borrowing with Laws, Etc. 23 54 SECTION 5.5 7.5 Compliance with Law; Governmental Approvals 23 55 SECTION 5.6 7.6 Tax Returns and Payments 24 55 SECTION 5.7 7.7 Intellectual Property Matters 24 55 SECTION 5.8 7.8 Environmental Matters 24 55 SECTION 5.9 7.9 Employee Benefit Matters 25 56 SECTION 5.10 7.10 Margin Stock 26 57 SECTION 5.11 7.11 Government Regulation 26 57 SECTION 5.12 Material Contracts 26 7.12 Reserved 58 SECTION 5.13 7.13 Employee Relations 26 58 SECTION 5.14 7.14 Burdensome Provisions 26 58 SECTION 5.15 7.15 Financial Statements 27 58 SECTION 5.16 7.16 No Material Adverse Change 27 58 SECTION 5.17 7.17 Solvency 27 58 SECTION 5.18 7.18 Titles to Properties 27 59 SECTION 5.19 Insurance 27 7.19 Litigation 59 SECTION 5.20 Liens 27 7.20 OFAC 59 SECTION 5.21 Indebtedness and Guaranty Obligations 27 SECTION 5.22 Litigation 27 SECTION 5.23 7.21 Absence of Defaults 28 59 SECTION 5.24 OFAC 28 SECTION 5.25 7.22 Investment Bankers’ and Similar Fees 28 59 SECTION 5.26 7.23 Disclosure 28 59 SECTION 5.27 Regulatory Issues 28 ARTICLE VI7.24 Material Domestic Subsidiaries 60 Article VIII. FINANCIAL INFORMATION AND NOTICES 28 AFFIRMATIVE COVENANTS 60 SECTION 6.1 8.1 Financial Statements 28 and Budgets 60 SECTION 6.2 Officer’s Compliance Certificate 29 SECTION 6.3 Regulatory Reports 29 SECTION 6.4 8.2 Certificates; Other Reports 30 61 SECTION 6.5 8.3 Notice of Litigation and Other Matters 30 ARTICLE VII. AFFIRMATIVE COVENANTS 31 63 SECTION 7.1 8.4 Preservation of Corporate Existence and Related Matters 31 64 SECTION 7.2 8.5 Maintenance of Property and Licenses 32 64 SECTION 7.3 8.6 Insurance 32 64 SECTION 7.4 8.7 Accounting Methods and Financial Records 32 64 SECTION 7.5 8.8 Payment of Taxes and Other Obligations 32 SECTION 7.6 Compliance With Laws and Approvals 32 SECTION 7.7 Environmental Laws 32 SECTION 7.8 Compliance with ERISA 33 SECTION 7.9 Compliance with Agreements 33 SECTION 7.10 Visits and Inspections; Lender Meetings 33 SECTION 7.11 Lender Meetings 33 SECTION 7.12 Further Assurances 33 ARTICLE VIII. FINANCIAL COVENANTS 34 SECTION 8.1 Well Capitalized 34 SECTION 8.2 Minimum Return on Assets 34 SECTION 8.3 Loan Loss Reserve to Non 34 SECTION 8.4 Non-Performing Assets 34 ARTICLE IX. NEGATIVE COVENANTS 34 SECTION 9.1 Limitations on Indebtedness 34 SECTION 9.2 Limitations on Liens 35 SECTION 9.3 Limitations on Fundamental Changes 36 SECTION 9.4 Limitations on Restricted Payments 36 SECTION 9.5 Transactions with Affiliates 36 SECTION 9.6 Certain Accounting Changes; Organizational Documents 37 SECTION 9.8 No Further Negative Pledges; Restrictive Agreements 37 SECTION 9.9 Nature of Business 38 SECTION 9.10 Limitations on Investments 38 SECTION 9.11 Use of Proceeds 38 SECTION 9.12 Restrictions on Transfers of Collateral 39 SECTION 9.13 Reserved 39 SECTION 9.14 Certain Restrictions Regarding Securities 39 ARTICLE X. DEFAULT AND REMEDIES 39 SECTION 10.1 Events of Default 39 SECTION 10.2 Remedies 41 SECTION 10.3 Rights and Remedies Cumulative; Non-Waiver; Etc. 44 SECTION 10.4 Crediting of Payments and Proceeds 44 ARTICLE XI. MISCELLANEOUS 44 SECTION 11.1 Notices 44 SECTION 11.2 Amendments, Waivers and Consents 45 SECTION 11.3 Expenses; Indemnity 45 SECTION 11.4 Right of Set Off 47 SECTION 11.5 Governing Law; Jurisdiction, etc. 47 SECTION 11.6 Waiver of Jury Trial 47 SECTION 11.7 Injunctive Relief; Punitive Damages 48 SECTION 11.8 Accounting Matters 48 SECTION 11.9 Successors and Assigns; Participations 48 SECTION 11.10 Confidentiality 49 SECTION 11.11 Performance of Duties 49 SECTION 11.12 All Powers Coupled with Interest 49 SECTION 11.13 Survival 49 SECTION 11.14 Titles and Captions 50 SECTION 11.15 Severability of Provisions 50 SECTION 11.16 Counterparts; Integration; Effectiveness; Electronic Execution 50 SECTION 11.17 Term of Agreement 50 SECTION 11.18 USA Patriot Act 51 SECTION 11.19 Independent Effect of Covenants 51 SECTION 11.20 Inconsistencies with Other Documents 51 SECTION 11.21 FINAL AGREEMENT 51 EXHIBITS Exhibit A - Form of Note Exhibit B - Form of Notice of Borrowing Exhibit C - Form of Officer’s Compliance Certificate SCHEDULES Schedule 1.1 - F&M Shareholders Schedule 5.1 - Jurisdictions of Organization Schedule 5.2 - Subsidiaries and Capitalization Schedule 5.6 - Pending Tax Audits Schedule 5.9 - ERISA Plans Schedule 5.10 - Margin Lending Schedule 5.13 - Labor and Collective Bargaining Agreements Schedule 5.21 - Indebtedness and Guaranty Obligations Schedule 9.2 - Existing Liens Schedule 9.5 - Transactions with Affiliates CREDIT AGREEMENT CREDIT AGREEMENT, dated as of December 22, 2014, by and among ALLEGIANCE BANCSHARES, INC., a Texas corporation (the “Borrower”), and Prosperity Bank (the “Lender”).64

Conditions of Closing and Borrowing. 19 48 SECTION 4.1 5.1 Conditions to Closing and Initial Revolving Credit Loan 19 Extensions of Credit. 48 SECTION 4.2 5.2 Conditions to All Revolving Credit Loans 22 Extensions of Credit. 50 ARTICLE V. VI REPRESENTATIONS AND WARRANTIES OF THE BORROWER 22 CREDIT PARTIES 51 SECTION 5.1 6.1 Organization; Power; Qualification 22 Qualification. 51 SECTION 5.2 Ownership 22 6.2 Ownership. 51 SECTION 5.3 Authorization Enforceability 23 6.3 Authorization; Enforceability. 52 SECTION 5.4 6.4 Compliance of Agreement, Loan Documents and Borrowing with Laws, Etc. 23 52 SECTION 5.5 6.5 Compliance with Law; Governmental Approvals 23 Approvals. 52 SECTION 5.6 6.6 Tax Returns and Payments 24 Payments. 52 SECTION 5.7 6.7 Intellectual Property Matters 24 Matters. 53 SECTION 5.8 6.8 Environmental Matters 24 Matters. 53 SECTION 5.9 6.9 Employee Benefit Matters 25 Matters. 53 SECTION 5.10 6.10 Margin Stock 26 Stock. 54 SECTION 5.11 6.11 Government Regulation 26 Regulation. 54 SECTION 5.12 Material Contracts 26 6.12 Employee Relations. 55 SECTION 5.13 Employee Relations 26 6.13 Financial Statements. 55 SECTION 5.14 Burdensome Provisions 26 SECTION 5.15 Financial Statements 27 SECTION 5.16 6.14 No Material Adverse Change 27 Change. 55 SECTION 5.17 Solvency 27 6.15 Solvency. 55 SECTION 5.18 Titles 6.16 Title to Properties 27 Properties. 55 SECTION 5.19 Insurance 27 6.17 Litigation. 55 SECTION 5.20 Liens 27 6.18 Anti-Terrorism; Anti-Corruption. 55 SECTION 5.21 Indebtedness and Guaranty Obligations 27 6.19 Disclosure. 56 ARTICLE VII AFFIRMATIVE COVENANTS 56 SECTION 5.22 Litigation 27 SECTION 5.23 Absence of Defaults 28 SECTION 5.24 OFAC 28 SECTION 5.25 Investment Bankers’ and Similar Fees 28 SECTION 5.26 Disclosure 28 SECTION 5.27 Regulatory Issues 28 ARTICLE VI. FINANCIAL INFORMATION AND NOTICES 28 SECTION 6.1 7.1 Financial Statements 28 and Budgets. 56 SECTION 6.2 Officer’s Compliance Certificate 29 7.2 Certificates; Other Reports. 57 SECTION 6.3 Regulatory Reports 29 SECTION 6.4 Other Reports 30 SECTION 6.5 7.3 Notice of Litigation and Other Matters 30 ARTICLE VIIMatters. AFFIRMATIVE COVENANTS 31 58 SECTION 7.1 7.4 Preservation of Corporate Existence and Related Matters 31 Matters. 59 SECTION 7.2 7.5 Maintenance of Property and Licenses 32 Licenses. 59 SECTION 7.3 Insurance 32 7.6 Insurance. 60 SECTION 7.4 7.7 Accounting Methods and Financial Records 32 Records. 60 SECTION 7.5 7.8 Payment of Taxes and Other Obligations 32 SECTION 7.6 Compliance With Laws and Approvals 32 SECTION 7.7 Environmental Laws 32 SECTION 7.8 Compliance with ERISA 33 Obligations. 60 SECTION 7.9 Compliance with Agreements 33 Laws and Approvals. 60 SECTION 7.10 Environmental Laws. 60 SECTION 7.11 Compliance with ERISA. 60 TABLE OF CONTENTS (continued) SECTION 7.12 Visits and Inspections; Lender Meetings 33 . 61 SECTION 7.11 Lender Meetings 33 7.13 Additional Subsidiaries. 61 SECTION 7.12 Further Assurances 33 7.14 Use of Proceeds. 61 ARTICLE VIII. FINANCIAL VIII NEGATIVE COVENANTS 34 61 SECTION 8.1 Well Capitalized 34 Indebtedness. 62 SECTION 8.2 Minimum Return on Assets 34 Liens. 62 SECTION 8.3 Loan Loss Reserve to Non 34 Investments. 64 SECTION 8.4 Non-Performing Assets 34 ARTICLE IXFundamental Changes. NEGATIVE COVENANTS 34 64 SECTION 9.1 Limitations on Indebtedness 34 8.5 Asset Dispositions. 65 SECTION 9.2 Limitations on Liens 35 8.6 Restricted Payments. 66 SECTION 9.3 Limitations on Fundamental Changes 36 SECTION 9.4 Limitations on Restricted Payments 36 SECTION 9.5 8.7 Transactions with Affiliates 36 Affiliates. 66 SECTION 9.6 Certain 8.8 Accounting Changes; Organizational Documents 37 Documents. 67 SECTION 9.8 8.9 No Further Negative Pledges; Restrictive Agreements 37 Agreements. 67 SECTION 9.9 8.10 Nature of Business 38 Business. 68 SECTION 9.10 Limitations on Investments 38 8.11 Financial Covenants. 68 SECTION 9.11 Use of Proceeds 38 SECTION 9.12 Restrictions on Transfers of Collateral 39 SECTION 9.13 Reserved 39 SECTION 9.14 Certain Restrictions Regarding Securities 39 8.12 Anti-Terrorism; Anti-Corruption. 68 ARTICLE X. IX DEFAULT AND REMEDIES 39 68 SECTION 10.1 9.1 Events of Default 39 Default. 68 SECTION 10.2 Remedies 41 SECTION 10.3 Rights and Remedies Cumulative; Non-Waiver; Etc9.2 Remedies. 44 SECTION 10.4 Crediting of Payments and Proceeds 44 ARTICLE XI. MISCELLANEOUS 44 SECTION 11.1 Notices 44 SECTION 11.2 Amendments, Waivers and Consents 45 SECTION 11.3 Expenses; Indemnity 45 SECTION 11.4 Right of Set Off 47 SECTION 11.5 Governing Law; Jurisdiction, etc. 47 SECTION 11.6 Waiver of Jury Trial 47 SECTION 11.7 Injunctive Relief; Punitive Damages 48 SECTION 11.8 Accounting Matters 48 SECTION 11.9 Successors and Assigns; Participations 48 SECTION 11.10 Confidentiality 49 SECTION 11.11 Performance of Duties 49 SECTION 11.12 All Powers Coupled with Interest 49 SECTION 11.13 Survival 49 SECTION 11.14 Titles and Captions 50 SECTION 11.15 Severability of Provisions 50 SECTION 11.16 Counterparts; Integration; Effectiveness; Electronic Execution 50 SECTION 11.17 Term of Agreement 50 SECTION 11.18 USA Patriot Act 51 SECTION 11.19 Independent Effect of Covenants 51 SECTION 11.20 Inconsistencies with Other Documents 51 SECTION 11.21 FINAL AGREEMENT 51 EXHIBITS Exhibit A - Form of Note Exhibit B - Form of Notice of Borrowing Exhibit C - Form of Officer’s Compliance Certificate SCHEDULES Schedule 1.1 - F&M Shareholders Schedule 5.1 - Jurisdictions of Organization Schedule 5.2 - Subsidiaries and Capitalization Schedule 5.6 - Pending Tax Audits Schedule 5.9 - ERISA Plans Schedule 5.10 - Margin Lending Schedule 5.13 - Labor and Collective Bargaining Agreements Schedule 5.21 - Indebtedness and Guaranty Obligations Schedule 9.2 - Existing Liens Schedule 9.5 - Transactions with Affiliates CREDIT AGREEMENT CREDIT AGREEMENT, dated as of December 22, 2014, by and among ALLEGIANCE BANCSHARES, INC., a Texas corporation (the “Borrower”), and Prosperity Bank (the “Lender”).70

Conditions of Closing and Borrowing. 19 28 SECTION 4.1 Conditions to Closing and Initial Revolving Extensions of Credit Loan 19 28 SECTION 4.2 Conditions to All Revolving Extensions of Credit Loans 22 29 ARTICLE V. V REPRESENTATIONS AND WARRANTIES OF THE BORROWER 22 CREDIT PARTIES 30 SECTION 5.1 Organization; Power; Qualification 22 30 SECTION 5.2 Ownership 22 30 SECTION 5.3 Authorization Authorization; Enforceability 23 30 SECTION 5.4 Compliance of Agreement, Loan Documents and Borrowing with Laws, Etc. 23 Etc 30 SECTION 5.5 Compliance with Law; Governmental Approvals 23 31 SECTION 5.6 Tax Returns and Payments 24 Taxes 31 SECTION 5.7 Intellectual Property Matters 24 31 SECTION 5.8 Environmental Matters 24 31 SECTION 5.9 Employee Benefit Matters 25 31 SECTION 5.10 Margin Stock 26 31 SECTION 5.11 Government Regulation 26 Investment Company Act, Etc 32 SECTION 5.12 Material Contracts 26 Employee Relations 32 Table of Contents (continued) SECTION 5.13 Employee Relations 26 Financial Statements 32 SECTION 5.14 Burdensome Provisions 26 SECTION 5.15 Financial Statements 27 SECTION 5.16 No Material Adverse Change 27 Effect 32 SECTION 5.15 Solvency 32 SECTION 5.16 Title to Properties 32 SECTION 5.17 Solvency 27 Litigation 32 SECTION 5.18 Titles to Properties 27 Sanctions; Anti-Corruption Laws and Anti-Money Laundering Laws 32 SECTION 5.19 Insurance 27 SECTION 5.20 Liens 27 SECTION 5.21 Indebtedness and Guaranty Obligations 27 SECTION 5.22 Litigation 27 SECTION 5.23 Absence of Defaults 28 33 SECTION 5.24 OFAC 28 SECTION 5.25 Investment Bankers’ and Similar Fees 28 SECTION 5.26 5.20 Disclosure 28 SECTION 5.27 Regulatory Issues 28 33 ARTICLE VI. FINANCIAL INFORMATION AND NOTICES 28 VI AFFIRMATIVE COVENANTS 33 SECTION 6.1 Financial Statements 28 and Budgets 33 SECTION 6.2 Officer’s Compliance Certificate 29 Certificates; Other Reports 34 SECTION 6.3 Regulatory Reports 29 SECTION 6.4 Other Reports 30 SECTION 6.5 Notice of Litigation and Other Matters 30 ARTICLE VII. AFFIRMATIVE COVENANTS 31 35 SECTION 7.1 6.4 Preservation of Corporate Existence and Related Matters 31 36 SECTION 7.2 6.5 Maintenance of Property and Licenses 32 Properties 36 SECTION 7.3 6.6 Insurance 32 36 SECTION 7.4 Accounting Methods and Financial Records 32 SECTION 7.5 6.7 Payment of Taxes and Other Obligations 32 36 SECTION 7.6 6.8 Compliance With with Laws and Approvals 32 36 SECTION 7.7 Environmental Laws 32 SECTION 7.8 6.9 Compliance with ERISA 33 SECTION 7.9 Compliance with Agreements 33 SECTION 7.10 Visits Anti-Corruption Laws; Anti-Money Laundering Laws and Inspections; Lender Meetings 33 SECTION 7.11 Lender Meetings 33 SECTION 7.12 Further Assurances 33 ARTICLE VIII. FINANCIAL COVENANTS 34 SECTION 8.1 Well Capitalized 34 SECTION 8.2 Minimum Return on Assets 34 SECTION 8.3 Loan Loss Reserve to Non 34 SECTION 8.4 Non-Performing Assets 34 ARTICLE IX. NEGATIVE COVENANTS 34 SECTION 9.1 Limitations on Indebtedness 34 SECTION 9.2 Limitations on Liens 35 SECTION 9.3 Limitations on Fundamental Changes 36 SECTION 9.4 Limitations on Restricted Payments 36 SECTION 9.5 Transactions with Affiliates 36 SECTION 9.6 Certain Accounting Changes; Organizational Documents 37 SECTION 9.8 No Further Negative Pledges; Restrictive Agreements 37 SECTION 9.9 Nature of Business 38 SECTION 9.10 Limitations on Investments 38 SECTION 9.11 Use of Proceeds 38 SECTION 9.12 Restrictions on Transfers of Collateral 39 SECTION 9.13 Reserved 39 SECTION 9.14 Certain Restrictions Regarding Securities 39 ARTICLE X. DEFAULT AND REMEDIES 39 SECTION 10.1 Events of Default 39 SECTION 10.2 Remedies 41 SECTION 10.3 Rights and Remedies Cumulative; Non-Waiver; Etc. 44 SECTION 10.4 Crediting of Payments and Proceeds 44 ARTICLE XI. MISCELLANEOUS 44 SECTION 11.1 Notices 44 SECTION 11.2 Amendments, Waivers and Consents 45 SECTION 11.3 Expenses; Indemnity 45 SECTION 11.4 Right of Set Off 47 SECTION 11.5 Governing Law; Jurisdiction, etc. 47 SECTION 11.6 Waiver of Jury Trial 47 SECTION 11.7 Injunctive Relief; Punitive Damages 48 SECTION 11.8 Accounting Matters 48 SECTION 11.9 Successors and Assigns; Participations 48 SECTION 11.10 Confidentiality 49 SECTION 11.11 Performance of Duties 49 SECTION 11.12 All Powers Coupled with Interest 49 SECTION 11.13 Survival 49 SECTION 11.14 Titles and Captions 50 SECTION 11.15 Severability of Provisions 50 SECTION 11.16 Counterparts; Integration; Effectiveness; Electronic Execution 50 SECTION 11.17 Term of Agreement 50 SECTION 11.18 USA Patriot Act 51 SECTION 11.19 Independent Effect of Covenants 51 SECTION 11.20 Inconsistencies with Other Documents 51 SECTION 11.21 FINAL AGREEMENT 51 EXHIBITS Exhibit A - Form of Note Exhibit B - Form of Notice of Borrowing Exhibit C - Form of Officer’s Compliance Certificate SCHEDULES Schedule 1.1 - F&M Shareholders Schedule 5.1 - Jurisdictions of Organization Schedule 5.2 - Subsidiaries and Capitalization Schedule 5.6 - Pending Tax Audits Schedule 5.9 - ERISA Plans Schedule 5.10 - Margin Lending Schedule 5.13 - Labor and Collective Bargaining Agreements Schedule 5.21 - Indebtedness and Guaranty Obligations Schedule 9.2 - Existing Liens Schedule 9.5 - Transactions with Affiliates CREDIT AGREEMENT CREDIT AGREEMENT, dated as of December 22, 2014, by and among ALLEGIANCE BANCSHARES, INC., a Texas corporation (the “Borrower”), and Prosperity Bank (the “Lender”).Sanctions 36

Conditions of Closing and Borrowing. 19 SECTION 4.1 5.1 Conditions to Closing and Initial Revolving Extensions of Credit Loan 19 48 SECTION 4.2 5.2 Conditions to All Revolving Extensions of Credit Loans 22 52 ARTICLE V. VI REPRESENTATIONS AND WARRANTIES OF THE BORROWER 22 CREDIT PARTIES SECTION 5.1 Organization; Power; Qualification 22 6.1 Corporate Existence 53 SECTION 5.2 6.2 Ownership 22 53 SECTION 5.3 Authorization Enforceability 23 6.3 Authority 53 SECTION 5.4 Compliance of Agreement, Loan Documents and Borrowing with Laws, Etc. 23 6.4 No Breach 53 SECTION 5.5 6.5 Approvals 53 SECTION 6.6 Compliance with Law; Governmental Approvals 23 Laws 53 SECTION 5.6 6.7 Tax Returns and Payments 24 54 SECTION 5.7 6.8 Intellectual Property Matters 24 54 SECTION 5.8 6.9 Environmental Matters 24 54 SECTION 5.9 6.10 Employee Benefit Matters 25 55 SECTION 5.10 6.11 Margin Stock 26 56 SECTION 5.11 6.12 Government Regulation 26 56 SECTION 5.12 6.13 Material Contracts 26 Agreements 56 SECTION 5.13 6.14 Employee Relations 26 57 SECTION 5.14 6.15 Burdensome Provisions 26 57 SECTION 5.15 6.16 Financial Statements 27 57 SECTION 5.16 6.17 No Material Adverse Change 27 58 SECTION 5.17 6.18 Solvency 27 58 SECTION 5.18 6.19 Titles to Properties 27 58 SECTION 5.19 6.20 Insurance 27 58 SECTION 5.20 6.21 Liens 27 59 SECTION 5.21 6.22 Litigation 59 SECTION 6.23 Senior Indebtedness and Guaranty Obligations 27 Status 59 SECTION 5.22 Litigation 27 6.24 OFAC 59 SECTION 5.23 Absence of Defaults 28 SECTION 5.24 OFAC 28 SECTION 5.25 6.25 Investment Bankers’ and Similar Fees 28 59 SECTION 5.26 6.26 Operation of the Pipelines 59 Page SECTION 6.27 Capitalization of General Partner and Subsidiaries 59 SECTION 6.28 Location of Business and Offices 59 SECTION 6.29 Hedging Agreements 60 SECTION 6.30 Imbalances 60 SECTION 6.31 Relationship of Credit Parties 60 SECTION 6.32 Security Documents 60 SECTION 6.33 Disclosure 28 60 SECTION 5.27 Regulatory Issues 28 6.34 No Casualty Event 60 ARTICLE VI. FINANCIAL INFORMATION AND NOTICES 28 SECTION 6.1 Financial Statements 28 SECTION 6.2 Officer’s Compliance Certificate 29 SECTION 6.3 Regulatory Reports 29 SECTION 6.4 Other Reports 30 SECTION 6.5 Notice of Litigation and Other Matters 30 ARTICLE VII. VII AFFIRMATIVE COVENANTS 31 SECTION 7.1 Preservation of Corporate Existence and Related Matters 31 Reporting Requirements 61 SECTION 7.2 Maintenance of Property and Licenses 32 Litigation 63 SECTION 7.3 Insurance 32 Maintenance, Etc. 64 SECTION 7.4 Accounting Methods and Financial Records 32 Environmental Matters 65 SECTION 7.5 Payment of Taxes and Other Obligations 32 Further Assurances 65 SECTION 7.6 Performance of Obligations 66 SECTION 7.7 Title Curative 66 SECTION 7.8 Additional Collateral 66 SECTION 7.9 Corporate Identity 69 SECTION 7.10 ERISA Information and Compliance With 70 SECTION 7.11 Material Agreements 70 SECTION 7.12 Additional Guarantees and Security Documents 70 SECTION 7.13 Payment and Performance of Obligations 71 SECTION 7.14 Compliance with Laws and Approvals 32 71 SECTION 7.7 Environmental Laws 32 SECTION 7.8 Compliance with ERISA 33 SECTION 7.9 Compliance with Agreements 33 SECTION 7.10 Visits and Inspections; Lender Meetings 33 SECTION 7.11 Lender Meetings 33 SECTION 7.12 Further Assurances 33 ARTICLE VIII. FINANCIAL COVENANTS 34 SECTION 8.1 Well Capitalized 34 SECTION 8.2 Minimum Return on Assets 34 SECTION 8.3 Loan Loss Reserve to Non 34 SECTION 8.4 Non-Performing Assets 34 ARTICLE IX. NEGATIVE COVENANTS 34 SECTION 9.1 Limitations on Indebtedness 34 SECTION 9.2 Limitations on Liens 35 SECTION 9.3 Limitations on Fundamental Changes 36 SECTION 9.4 Limitations on Restricted Payments 36 SECTION 9.5 Transactions with Affiliates 36 SECTION 9.6 Certain Accounting Changes; Organizational Documents 37 SECTION 9.8 No Further Negative Pledges; Restrictive Agreements 37 SECTION 9.9 Nature of Business 38 SECTION 9.10 Limitations on Investments 38 SECTION 9.11 7.15 Use of Proceeds 38 71 SECTION 9.12 Restrictions on Transfers 7.16 Designation of Collateral 39 SECTION 9.13 Reserved 39 SECTION 9.14 Certain Restrictions Regarding Securities 39 Unrestricted Entities 71 ARTICLE X. DEFAULT AND REMEDIES 39 SECTION 10.1 Events of Default 39 SECTION 10.2 Remedies 41 SECTION 10.3 Rights and Remedies Cumulative; Non-Waiver; Etc. 44 SECTION 10.4 Crediting of Payments and Proceeds 44 ARTICLE XI. MISCELLANEOUS 44 SECTION 11.1 Notices 44 SECTION 11.2 Amendments, Waivers and Consents 45 SECTION 11.3 Expenses; Indemnity 45 SECTION 11.4 Right of Set Off 47 SECTION 11.5 Governing Law; Jurisdiction, etc. 47 SECTION 11.6 Waiver of Jury Trial 47 SECTION 11.7 Injunctive Relief; Punitive Damages 48 SECTION 11.8 Accounting Matters 48 SECTION 11.9 Successors and Assigns; Participations 48 SECTION 11.10 Confidentiality 49 SECTION 11.11 Performance of Duties 49 SECTION 11.12 All Powers Coupled with Interest 49 SECTION 11.13 Survival 49 SECTION 11.14 Titles and Captions 50 SECTION 11.15 Severability of Provisions 50 SECTION 11.16 Counterparts; Integration; Effectiveness; Electronic Execution 50 SECTION 11.17 Term of Agreement 50 SECTION 11.18 USA Patriot Act 51 SECTION 11.19 Independent Effect of Covenants 51 SECTION 11.20 Inconsistencies with Other Documents 51 SECTION 11.21 FINAL AGREEMENT 51 EXHIBITS Exhibit A - Form of Note Exhibit B - Form of Notice of Borrowing Exhibit C - Form of Officer’s Compliance Certificate SCHEDULES Schedule 1.1 - F&M Shareholders Schedule 5.1 - Jurisdictions of Organization Schedule 5.2 - Subsidiaries and Capitalization Schedule 5.6 - Pending Tax Audits Schedule 5.9 - ERISA Plans Schedule 5.10 - Margin Lending Schedule 5.13 - Labor and Collective Bargaining Agreements Schedule 5.21 - Indebtedness and Guaranty Obligations Schedule 9.2 - Existing Liens Schedule 9.5 - Transactions with Affiliates CREDIT AGREEMENT CREDIT AGREEMENT, dated as of December 22, 2014, by and among ALLEGIANCE BANCSHARES, INC., a Texas corporation (the “Borrower”), and Prosperity Bank (the “Lender”).VIII FINANCIAL COVENANTS

Conditions of Closing and Borrowing. 19 32 SECTION 4.1 Conditions to Closing and Initial Revolving Credit Loan 19 32 SECTION 4.2 Conditions to All Revolving Credit Loans 22 34 ARTICLE V. V REPRESENTATIONS AND WARRANTIES OF THE BORROWER 22 35 SECTION 5.1 Organization; Power; Qualification 22 35 SECTION 5.2 Ownership 22 35 SECTION 5.3 Authorization Enforceability 23 35 SECTION 5.4 Compliance of Agreement, Loan Documents and Borrowing with Laws, Etc. 23 Etc 35 SECTION 5.5 Compliance with Law; Governmental Approvals 23 36 SECTION 5.6 Tax Returns and Payments 24 36 SECTION 5.7 Intellectual Property Matters 24 36 SECTION 5.8 Environmental Matters 24 Matters. 36 SECTION 5.9 Employee Benefit Matters 25 Matters. 37 SECTION 5.10 Margin Stock 26 38 SECTION 5.11 Government Regulation 26 38 SECTION 5.12 Material Contracts 26 38 SECTION 5.13 Employee Relations 26 39 SECTION 5.14 Burdensome Provisions 26 39 SECTION 5.15 Financial Statements 27 39 SECTION 5.16 No Material Adverse Change 27 39 SECTION 5.17 Solvency 27 39 SECTION 5.18 Titles to Properties 27 39 SECTION 5.19 Insurance 27 39 SECTION 5.20 Liens 27 40 SECTION 5.21 Indebtedness and Guaranty Obligations 27 40 SECTION 5.22 Litigation 27 40 SECTION 5.23 Absence of Defaults 28 40 SECTION 5.24 OFAC 28 40 SECTION 5.25 Investment Bankers’ and Similar Fees 28 40 SECTION 5.26 Disclosure 28 SECTION 5.27 Regulatory Issues 28 40 ARTICLE VI. VI FINANCIAL INFORMATION AND NOTICES 28 41 SECTION 6.1 Financial Statements 28 Statements. 41 SECTION 6.2 Officer’s Compliance Certificate 29 41 SECTION 6.3 Regulatory Reports 29 Reports. 41 SECTION 6.4 Other Reports 30 Reports. 42 SECTION 6.5 Notice of Litigation and Other Matters 30 42 SECTION 6.6 Accuracy of Information 44 ARTICLE VII. VII AFFIRMATIVE COVENANTS 31 44 SECTION 7.1 Preservation of Corporate Existence and Related Matters 31 44 SECTION 7.2 Maintenance of Property and Licenses 32 Licenses. 44 SECTION 7.3 Insurance 32 44 SECTION 7.4 Accounting Methods and Financial Records 32 45 SECTION 7.5 Payment of Taxes and Other Obligations 32 45 SECTION 7.6 Compliance With Laws and Approvals 32 45 SECTION 7.7 Environmental Laws 32 45 SECTION 7.8 Compliance with ERISA 33 45 SECTION 7.9 Compliance with Agreements 33 46 SECTION 7.10 Visits and Inspections; Lender Meetings 33 46 SECTION 7.11 Lender Meetings 33 SECTION 7.12 Further Assurances 33 46 ARTICLE VIII. VIII FINANCIAL COVENANTS 34 46 SECTION 8.1 Unencumbered Cash and Securities 46 SECTION 8.2 Well Capitalized 34 46 SECTION 8.2 Minimum 8.3 Risk-Based Capital Ratio 46 SECTION 8.4 Tier 1 Capital Ratio 46 SECTION 8.5 Tier 1 Leverage Ratio 47 SECTION 8.6 Texas Ratio 47 SECTION 8.7 Return on Average Assets 34 Ratio 47 SECTION 8.3 Loan Loss Reserve to Non 34 SECTION 8.4 8.8 Non-Performing Assets 34 Loan Ratio 47 ARTICLE IX. IX NEGATIVE COVENANTS 34 47 SECTION 9.1 Limitations on Indebtedness 34 47 SECTION 9.2 Limitations on Liens 35 48 SECTION 9.3 Limitations on Fundamental Changes 36 49 SECTION 9.4 Limitations on Asset Dispositions 49 SECTION 9.5 Limitations on Restricted Payments 36 50 SECTION 9.5 9.6 Transactions with Affiliates 36 50 SECTION 9.6 9.7 Certain Accounting Changes; Organizational Documents 37 51 SECTION 9.8 Limitation on Payments and Modifications of Subordinated Indebtedness 51 SECTION 9.9 No Further Negative Pledges; Restrictive Agreements 37 Agreements. 51 SECTION 9.9 9.10 Nature of Business 38 52 SECTION 9.10 9.11 Limitations on Investments 38 Investments. 52 SECTION 9.11 9.12 Use of Proceeds 38 SECTION 9.12 Restrictions on Transfers of Collateral 39 SECTION 9.13 Reserved 39 SECTION 9.14 Certain Restrictions Regarding Securities 39 53 ARTICLE X. X DEFAULT AND REMEDIES 39 53 SECTION 10.1 Events of Default 39 53 SECTION 10.2 Remedies 41 55 SECTION 10.3 Rights and Remedies Cumulative; Non-Waiver; Etc. 44 Etc 56 SECTION 10.4 Crediting of Payments and Proceeds 44 56 SECTION 10.5 Administrative Agent May File Proofs of Claim 56 ARTICLE XI. MISCELLANEOUS 44 XI THE ADMINISTRATIVE AGENT 57 SECTION 11.1 Notices 44 Appointment and Authority 57 SECTION 11.2 Rights as a Lender 57 SECTION 11.3 Exculpatory Provisions 57 SECTION 11.4 Reliance by the Administrative Agent 58 SECTION 11.5 Delegation of Duties 58 SECTION 11.6 Resignation of Administrative Agent 59 SECTION 11.7 Non-Reliance on Administrative Agent and Other Lenders 59 ARTICLE XII MISCELLANEOUS 59 SECTION 12.1 Notices. 59 SECTION 12.2 Amendments, Waivers and Consents 45 62 SECTION 11.3 12.3 Expenses; Indemnity 45 Indemnity. 63 SECTION 11.4 12.4 Right of Set Off 47 64 SECTION 11.5 12.5 Governing Law; Jurisdiction, etcEtc. 47 65 SECTION 11.6 12.6 Waiver of Jury Trial 47 65 SECTION 11.7 12.7 Reversal of Payments 65 SECTION 12.8 Injunctive Relief; Punitive Damages 48 Damages. 66 SECTION 11.8 12.9 Accounting Matters 48 66 SECTION 11.9 12.10 Successors and Assigns; Participations 48 Participations. 66 SECTION 11.10 12.11 Confidentiality 49 68 SECTION 11.11 12.12 Performance of Duties 49 69 SECTION 11.12 12.13 All Powers Coupled with Interest 49 69 SECTION 11.13 Survival 49 12.14 Survival. 69 SECTION 11.14 12.15 Titles and Captions 50 69 SECTION 11.15 12.16 Severability of Provisions 50 70 SECTION 11.16 12.17 Counterparts; Integration; Effectiveness; Electronic Execution 50 Execution. 70 SECTION 11.17 12.18 Term of Agreement 50 70 SECTION 11.18 12.19 USA Patriot Act 51 70 SECTION 11.19 12.20 Delivery of Lender Authorization 70 SECTION 12.21 Independent Effect of Covenants 51 71 SECTION 11.20 12.22 Inconsistencies with Other Documents 51 71 SECTION 11.21 12.23 FINAL AGREEMENT 51 71 EXHIBITS Exhibit A - Form of Note Exhibit B - Form of Notice of Borrowing Exhibit C - Form of Notice of Account Designation Exhibit D - Form of Notice of Prepayment Exhibit E - Form of Notice of Conversion/Continuation Exhibit F - Form of Officer’s Compliance Certificate Exhibit G - Form of Assignment and Assumption Exhibit H - Form of Lender Authorization SCHEDULES Schedule 1.1 2.1 - F&M Shareholders Revolving Credit Commitments Schedule 5.1 - Jurisdictions of Organization Schedule 5.2 - Subsidiaries and Capitalization Schedule 5.6 - Pending Tax Audits Schedule 5.9 - ERISA Plans Schedule 5.10 - Margin Lending Schedule 5.13 - Labor and Collective Bargaining Agreements Schedule 5.21 - Indebtedness and Guaranty Obligations Schedule 5.22 - Litigation Schedule 9.2 - Existing Liens Schedule 9.5 9.6 - Transactions with Affiliates CREDIT AGREEMENT CREDIT AGREEMENT, dated as of December 22June 9, 20142011, by and among ALLEGIANCE BANCSHARESBOK FINANCIAL CORPORATION, INC., a Texas an Oklahoma corporation (the “Borrower”), the lenders who are party to this Agreement pursuant to a Lender Authorization and Prosperity Bank the lenders who may become a party to this Agreement pursuant to the terms hereof (collectively with the lenders party hereto, the “LenderLenders”)) and XXXXX FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as Administrative Agent for the Lenders.