(e) Entry in to a Severance and Release Agreement.

As previously announced, John A. Rossitto resigned from all positions effective October 5, 2009 (the "Effective Date"). On October 20, 2009, the Company entered into a Severance and Release Agreement (the "Severance Agreement") with Mr. Rossitto, effective as of the Effective Date. Under terms of the Severance Agreement, Mr. Rossitto will receive two years' base pay, which totals $500,000, paid in regular payroll installments. Additionally, for a period of two years, Mr. Rossitto will receive annual bonuses of $50,000, be reimbursed for cell phone expenses, continue to participate in the Company's group health, dental, and/or vision plan, continue to receive life insurance benefits, continue to have club dues paid, continue banking services without service charge or at a reduced charge, continue to be reimbursed for reasonable and customary business related expenses, and receive outplacement services in an amount not to exceed $20,000. The Severance Agreement permits Mr. Rossitto to exercise the vested portion of his stock options during the ninety day period immediately following the Effective Date.

The foregoing description of the Severance Agreement does not purport to be complete and is qualified in its entirety by reference to the Severance Agreement which is attached hereto as Exhibit 10.1 and incorporated herein by reference.

(d) Exhibits. The following exhibits are furnished as part of this Current Report on Form 8-K:

Exhibit No.     Description of Exhibit

10.1            Severance and Release Agreement, dated October 20, 2009, by and
                between Sterling Bancshares, Inc. and John A. Rossitto.