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Document

Exhibit 10.1

EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into by and between Independent Bank Group, Inc., a Texas corporation (“IBTX”), which is the holding company of Independent Bank, McKinney, Texas (the “Bank”), (IBTX and the Bank are collectively referred to as the “Company”), and John G. Turpen (“Executive”) as of July 15, 2021.
WHEREAS, the Company wishes to employ Executive on the terms and conditions, and for the consideration, hereinafter set forth, and Executive desires to be employed by the Company on such terms and conditions and for such consideration.
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is hereby agreed as follows:
1.Employment Period.  The Company hereby agrees to employ Executive, and Executive hereby agrees to be employed by the Company, subject to the terms and conditions of this Agreement, for the period commencing on July 26, 2021 (the “Effective Date”) and ending on the third (3rd) anniversary thereof (the “Employment Period”); provided, however, that commencing on the third (3rd) anniversary of the Effective Date, and on each annual anniversary thereafter (such date and each annual anniversary thereof shall be hereinafter referred to as the “Renewal Date”), unless previously terminated, the Employment Period shall be automatically extended so as to terminate one year from such Renewal Date, unless at least 90 days prior to the Renewal Date the Company shall give notice to Executive that the Employment Period shall not be so extended.
2.Terms of Employment.  
(a)Position and Duties; Standard of Services; Location.
(i)Position and Duties.  During the Employment Period, Executive shall serve as Executive Vice President, Chief Risk Officer of the Company, with such duties and authority as are customarily associated with such positions in public companies.  Executive shall report solely and directly to the Chief Executive Officer of the Company. 
(ii)Standard of Services.  During the Employment Period, Executive agrees to devote his full business time, energy and skill to the performance of his duties, authorities and responsibilities to the Company and its affiliates and to use Executive’s best efforts to perform faithfully and efficiently such responsibilities.  During the Employment Period, Executive may serve on civic, charitable or other not-for-profit boards or committees, deliver lectures, fulfill speaking engagements or teach at educational institutions, manage personal investments and, subject to the prior written approval of the Board of Directors of the Company (the “Board”) or a committee thereof, serve on boards of for-profit entities, in each case, so long as such activities do not 

materially interfere with the performance of Executive’s duties and responsibilities or create a potential business or fiduciary conflict, and Executive complies with applicable provisions of any codes of business conduct and ethics of the Company and its affiliates, as in effect from time to time.  For purposes of this Agreement, the term “affiliate” means an entity controlled by, controlling or under common control with the Company.
(iii)Location.  Executive’s primary work location shall be at the Company’s corporate headquarters in McKinney, Texas, subject to reasonable business travel at the Company’s request.
(b)Compensation.
(i)Annual Base Salary.  Commencing on the Effective Date and continuing through September 15, 2021, Executive shall receive an annual base salary equal to $212,500, payable in accordance with the Company’s regular payroll practices.  Commencing on September 16, 2021 and continuing through the remainder of the Employment Period, Executive shall receive an annual base salary equal to at least $425,000 (as in effect from time to time, the “Annual Base Salary”), payable in accordance with the Company’s regular payroll practices.  The Annual Base Salary shall be reviewed at least annually by the Board or an appropriate committee thereof (the Board or such committee, the “Committee”) for possible increase, as determined in the sole and absolute discretion of the Committee, pursuant to the normal performance review policies for senior executives of the Company.  Once the Annual Base Salary has been increased hereunder, it shall not subsequently be decreased during the Employment Period.
(ii)Annual Incentive Bonus.  For each fiscal year during the Employment Period commencing with fiscal year 2021, the Executive shall be eligible to receive an annual incentive bonus, based upon the Executive’s and the Company’s attainment of pre-established performance goals (the “Annual Incentive Bonus”).  The performance goals upon which the Annual Incentive Bonus will be based shall be adopted at the beginning of each year by the Committee.  For fiscal year 2021, the Executive’s Annual Incentive Bonus target amount shall be 150% of the Executive’s Base Salary (the “Annual Incentive Bonus Target Opportunity”).  Notwithstanding the foregoing, for fiscal year 2021, the amount of the Executive’s Annual Incentive Bonus will be prorated based on the number of days Executive is employed by the Company in 2021, divided by 365.  
(A)47.5% of the Annual Incentive Bonus shall be paid in cash, payable by the Company to the Executive at the same time the other senior executives of the Company receive annual bonus payments (but in no event later than March 15th of the calendar year following the year with respect to which the Annual Incentive Bonus was earned.
(B)52.5% of the Annual Incentive Bonus shall be payable in Awards of (I) restricted shares of IBTX common stock (“Restricted 
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Shares”) granted pursuant to the Company’s 2013 Equity Incentive Plan or any successor plan (the “Plan”) and Restricted Stock Agreements as provided for in the Plan (the “RSAs”), and (II) restricted stock units in respect of shares of IBTX common stock (“RSUs”) granted pursuant to the Plan and Performance Restricted Stock Unit Agreements (the “RSU Agreements”), as provided for in the Plan (collectively, the Awards of Restricted Shares and RSUs are referred to as the “Annual Incentive Bonus Equity Awards”).  50% of the Annual Incentive Bonus Equity Awards shall be in the form of time based vesting Restricted Shares which shall vest in three (3) equal annual installments, and shall otherwise be subject to the terms of the applicable RSA, and 50% of the Annual Incentive Bonus Equity Awards shall be in the form of performance based vesting RSUs, which shall vest in full on the third (3rd) anniversary of the Effective Date based on the achievement of the applicable performance criteria developed by the Committee subject to the terms of the applicable RSU Agreement.  Copies of the Plan, and templates of the RSA and RSU Agreement, have been provided to the Executive.  
(C)The Annual Incentive Bonus Target Opportunity shall be reviewed at least annually by the Committee for possible increase, as determined in the sole and absolute discretion of the Committee, pursuant to the normal performance review policies for senior executives of the Company.  The Annual Incentive Bonus Target Opportunity shall not be decreased during the Employment Period.
(iii)Sign On Bonus.  On or as soon as reasonably practicable following the Effective Date (but in no event later than thirty (30) days following the Effective Date), in consideration of the Executive’s continued service to the Company and compliance with the covenants set forth in Section 5 hereof, the Company shall pay to Executive a one-time cash bonus in the amount of $140,000 (the “Sign On Bonus”).  In the event that the Executive voluntarily resigns from his position with the Company without Good Reason (as defined below) or the Company terminates the employment of the Executive and this Agreement for Cause (as defined below) on or before the first anniversary of the Effective Date, the Executive shall repay 100% of the Sign On Bonus (in immediately available funds) to the Company within five business days following the date of such termination of employment.  The Sign On Bonus shall not be considered Annual Incentive Bonus for any purpose of this Agreement or for purposes of any benefit plan.  
(iv)Sign-On Equity Award.  On or as soon as reasonably practicable following the Effective Date (but in no event later than thirty (30) days following the Effective Date), in consideration for Executive’s continued service to the Company and compliance with the covenants set forth in Section 5 hereof, the Company shall grant to Executive an award (the “Sign-On Equity Award”) in respect of 10,000 shares of common stock of the Company.  The Sign-On Equity Award shall be composed of 
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(A) 50% time-based Restricted Shares, which shall vest in four (4) equal annual installments on each of the first four (4) anniversaries of the Effective Date, subject to the terms of the applicable RSA, and (B) 50% performance-based RSUs, which shall vest in full on the fourth (4th) anniversary of the Effective Date based on the achievement of the applicable performance criteria developed by the Committee prior to the Effective Date, subject to the terms of the applicable RSU Agreement.  Except as set forth above, the Sign-On Equity Award shall otherwise have terms and conditions consistent with the Company’s standard form of RSA and RSU Agreement.
(v)Other Benefits.  During the Employment Period, Executive shall be eligible for participation in retirement, welfare and other benefit plans, practices, policies and programs of the Company, on terms no less favorable than those provided to other senior executives of the Company.
(vi)Expenses.  During the Employment Period, Executive shall be entitled to receive reimbursement for all reasonable, documented business expenses incurred by Executive in accordance with the performance of Executive’s duties under this Agreement, subject to the Company’s policies with respect to expense reimbursement.
3.Termination of Employment.
(a)Death or Disability.  Executive’s employment shall terminate automatically upon Executive’s death during the Employment Period.  If the Company determines in good faith that the Disability (as defined below) of Executive has occurred during the Employment Period, it may provide Executive with written notice in accordance with Section 7(i) of its intention to terminate Executive’s employment.  In such event, Executive’s employment with the Company shall terminate effective on the thirtieth (30th) day after receipt of such notice by Executive (the “Disability Effective Date”), provided that, within the thirty (30) days after such receipt, Executive shall not have returned to full-time performance of Executive’s duties.  For purposes of this Agreement, “Disability” shall mean Executive’s inability to perform his employment duties due to his permanent and total disability as determined by a physician reasonably acceptable to the Company.
(b)Cause.  The Company may terminate Executive’s employment during the Employment Period either with or without Cause.  For purposes of this Agreement, “Cause” shall mean (i) Executive’s continued intentional failure or refusal to materially abide by the terms and conditions of this Agreement or perform substantially Executive’s assigned duties (other than as a result of total or partial mental or physical incapacity); (ii) Executive’s engagement in willful misconduct, including without limitation, fraud, embezzlement, theft or dishonesty, in the course of Executive’s employment with the Company; (iii) Executive’s conviction of, or plea of guilty or nolo contendere to a felony or a crime (other than a felony) that involves moral turpitude or a breach of trust or fiduciary duty owed to the Company or any of its affiliates; (iv) a material breach of the restrictive covenants in this Agreement; or (v) a material breach of the Company’s Code 
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of Conduct or another policy of the Company applicable to Executive, that does, or could reasonably be expected to, result in material harm to the Company, including reputational harm; provided that no act or failure to act, on the part of Executive, will be considered “willful” or “intentional” unless it is done, or omitted to be done, by Executive in bad faith or without reasonable belief that Executive’s action or omission was in the best interests of the Company and its affiliates or if done based on the direction of the Board or on advice of counsel to the Company.  If an action or omission constituting Cause is curable, Executive may be terminated under such clauses only if Executive has not cured such action or omission within thirty (30) days following written notice thereof from the Company.  
(c)Good Reason.  Executive’s employment may be terminated by Executive with or without Good Reason.  For purposes of this Agreement, “Good Reason” shall mean in the absence of the prior written consent of Executive: 
(i)the assignment to Executive of any duties or responsibilities inconsistent in any material respect with Executive’s position, status, office, title, reporting relationship, duties or responsibilities as set forth in this Agreement; 
(ii)a reduction in the Annual Base Salary or Annual Incentive Bonus Target Opportunity;
(iii)a change by forty-five (45) miles or more in Executive’s principal work location at the Company’s corporate headquarters in McKinney, Texas;
(iv)the failure of the Board to appoint or re-elect Executive to any of the positions specifically provided for in this Agreement; or 
(v)any other action or inaction that constitutes a material breach by the Company or any of its affiliates or any of their respective successors of its obligations to Executive under this Agreement;  
provided, however, that Executive’s termination of employment shall not be deemed to be for Good Reason unless (A) Executive has notified the Company in writing describing the occurrence of one (1) or more Good Reason events within ninety (90) days after Executive first becomes aware of such occurrence (or should have become aware of such occurrence), (B) the Company fails to cure such Good Reason event within thirty (30) days after its receipt of such written notice and (C) the termination of employment occurs within thirty (30) days following such failure to cure.  
(d)Notice of Termination.  Any termination of employment by the Company for Cause, or by Executive for Good Reason, shall be communicated by Notice of Termination to the other party hereto given in accordance with Section 7(i).  For purposes of this Agreement, the term “Notice of Termination” means a written notice that (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the 
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extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated, and (iii) if the Date of Termination (as defined herein) is other than the date of receipt of such notice, specifies the Date of Termination (which Date of Termination shall be not more than thirty (30) days after the giving of such notice).  The failure by Executive or the Company to set forth in the Notice of Termination any fact or circumstance that contributes to a showing of Good Reason or Cause shall not waive any right of Executive or the Company, respectively, hereunder or preclude Executive or the Company, respectively, from asserting such fact or circumstance in enforcing Executive’s or the Company’s respective rights hereunder.  
(e)Date of Termination.  For purposes of this Agreement, the term “Date of Termination” means (i) if Executive’s employment is terminated by the Company for Cause, or by Executive for Good Reason, the date of receipt of the Notice of Termination or such later date specified in the Notice of Termination, as the case may be, (ii) if Executive’s employment is terminated by the Company other than for Cause or Disability, the date on which the Company notifies Executive of such termination, (iii) if Executive resigns without Good Reason, the date on which Executive notifies the Company of such termination, or (iv) if Executive’s employment is terminated by reason of death or Disability, the date of Executive’s death or the Disability Effective Date, as the case may be.  Notwithstanding the foregoing, in no event shall the Date of Termination occur until Executive experiences a “separation from service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended, and the date on which such separation from service takes place shall be the “Date of Termination.”
4.Obligations of the Company upon Termination.
(a)By the Company other than for Cause; by Executive for Good Reason.  If, during the Employment Period, the Company shall terminate Executive’s employment other than for Cause or Executive shall terminate employment for Good Reason:
(i)The Company shall pay to Executive the following amounts in a lump sum in cash within thirty (30) days after the Date of Termination:  (A) Executive’s Annual Base Salary through the Date of Termination to the extent not theretofore paid, (B) any unpaid Annual Incentive Bonus from any prior completed calendar year, and (C) Executive’s business expenses that are reimbursable pursuant to Section 2(b)(vi) but have not been reimbursed by the Company as of the Date of Termination (the sum of the amounts described in the foregoing subclauses (A), (B), and (C), the “Accrued Obligations”);
(ii)Subject to Section 4(d) and Executive’s compliance with Section 5 (it being agreed that in the event that Executive does not comply with Section 5, Executive shall return any payments previously made pursuant to this Section 4(a)(ii)), Executive shall be entitled to:
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(A)a cash payment equal to the product of (I) the Severance Multiple (as defined below), multiplied by (II) the sum of (x) the Annual Base Salary and (y) the greater of (i) the Annual Incentive Bonus Target Opportunity and (ii) the average Annual Incentive Bonus actually paid to Executive (before any tax withholding) during the three (3) completed years prior to the Date of Termination, for the calendar year in which the Date of Termination occurs, which amount shall be paid not more than sixty (60) days after the Date of Termination (or in installments on such later date or dates as required by Section 409A of the Code) (the “Lump Sum Payment Benefit”); 
(B)effective as of the Date of Termination, (I) accelerated vesting in full of any unvested time based-vesting Restricted Stock awards (other than the Sign-On Equity Award), (II) any performance based-vesting RSU awards for which the performance period is complete shall vest in full and any such awards for which the performance period is not complete shall be earned as provided in the applicable RSU Agreement and vest in full, and (III) any vested stock options or stock appreciation rights shall remain exercisable for the full remaining term (collectively, the “LTI Benefit”);
(C)any portion of the Sign-On Equity Award that is unvested as of the Date of Termination shall continue to vest on the regularly scheduled vesting dates subject to Executive’s continued compliance with Section 5; and
(D)a cash payment equal to eighteen (18) months of COBRA premiums for the health care coverage that Executive had in place for him and his dependents, as applicable, on the Date of Termination (the “COBRA Benefit”), which amount shall be paid not more than sixty (60) days after the Date of Termination;
(iii)To the extent not theretofore paid or provided, the Company shall timely pay or provide to Executive any other amounts or benefits required to be paid or provided or which Executive is eligible to receive under any plan, program, policy or practice or contract or agreement of the Company and its affiliates through the Date of Termination (such other amounts and benefits shall be hereinafter referred to as the “Other Benefits”), such Other Benefits to be paid or provided subject to and in accordance with the applicable terms of any such arrangements.
(iv)For purposes of this Section 4, the term “Severance Multiple” shall mean one (1); provided, however, if the Date of Termination is within two (2) years following a Change in Control (as defined in the Plan), then the Severance Multiple shall be two (2). 
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(b)Due to Death or Disability.  If, during the Employment Period, Executive’s employment shall terminate due to his death or Disability, subject to Section 4(d) and in the event of Executive’s Disability, Executive’s compliance with Section 5 (it being agreed that in the event that Executive does not comply with Section 5, Executive shall return any payments previously made pursuant to Section 4(a)(ii) and 4(a)(iii)), the Company shall pay to Executive or his estate, on the schedule contemplated by Section 4(a), the Accrued Obligations, the Lump Sum Payment Benefit, the LTI Benefit, the COBRA Benefit, and the Other Benefits.  In addition, (i) upon a termination due to Disability, the unvested portion of the Sign-On Equity Award shall vest on the regularly scheduled vesting dates subject to Section 4(d) and the Executive’s continued compliance with Section 5 and, (ii) upon a termination due to death, the unvested portion of the Sign-On Equity Award shall vest in full on the date of Executive’s death.
(c)Cause; Other than for Good Reason.  If, during the Employment Period, Executive’s employment shall be terminated for Cause or Executive terminates his employment other than for Good Reason, this Agreement shall terminate without further obligations to Executive other than the obligation to pay to Executive (i) the Accrued Obligations through the Date of Termination (excluding payment of any unpaid Annual Incentive Bonus from any prior completed calendar year) and (ii) Other Benefits, in each case to the extent theretofore unpaid.  The Accrued Obligations shall be paid to Executive in a lump sum in cash within thirty (30) days of the Date of Termination.  
(d)Separation Agreement and General Release.  The Company’s obligations to make payments under this Section 4 shall be conditioned on (i) Executive (or, in the event of Executive’s death or Disability, his legal guardian or estate) executing and delivering (and not revoking) a separation agreement and general release (the “Release”) in the form attached as Exhibit A hereto (with such revisions as may be appropriate to reflect changes in law or the successors and assigns of the Company and its affiliates), which Release must become effective not later than sixty (60) days following the Date of Termination.  In the event that Executive (or his legal guardian or estate) does not so execute and deliver such release, or in the event that Executive (or his legal guardian or estate) revokes such release, the Company may require Executive (or his legal guardian or estate) to repay any amounts previously provided to him pursuant to this Section 4. 
(e)Full Settlement.  The payments and benefits provided under this Section 4 shall be in full satisfaction of the obligations of the Company and its affiliates to Executive under this Agreement or any other plan, agreement, policy or arrangement of the Company and its Affiliates upon his termination of employment.
(f)No Mitigation.  Executive shall have no obligation to mitigate any severance obligation of the Company under this Agreement by seeking new employment.  The Company shall not be entitled to set off or reduce any severance payments owed to Executive under this Agreement by the amount of earnings or benefits received by Executive in future employment.
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(g)Expiration of the Employment Period.  Following the end of the Employment Period, if Executive remains employed by the Company or its affiliates, Executive’s employment shall be at-will.
5.Executive Covenants.
(a)Confidentiality.
(i)Generally.  Executive has and will have access to and participate in the development of or be acquainted with confidential or proprietary information and trade secrets related to the business of the Company and its subsidiaries and affiliates (collectively, the “Companies”), including but not limited to (A) business plans, operating plans, marketing plans, bid strategies, bid proposals, financial reports, operating data, budgets, wage and salary rates, pricing strategies and information, terms of agreements with suppliers or customers and others, customer lists and customer information, credit files, software programs, reports, correspondence, tapes, discs, tangible property and specifications owned by or used in the Companies’ businesses, operating strengths and weaknesses of the Companies’ officers, directors, employees, agents, suppliers and customers, (B) information pertaining to future developments such as, but not limited to, research and development, future marketing, products, distribution, delivery or merchandising plans or ideas, and potential new distribution or business locations, and (C) other tangible and intangible property, which are used in the business and operations of the Companies but not made publicly available (the “Confidential Information”); provided that the term Confidential Information shall not include information that is available or known to persons or entities outside of the Companies otherwise than as a result of a breach of a confidentiality agreement.  Pursuant to his employment with the Companies, Executive agrees that he is or may be provided with access to Confidential Information to which he would not otherwise have access.
(ii)Assignment.  Executive hereby assigns to the Companies, in consideration of his employment, all Confidential Information that may be developed by Executive at any time during his employment with the Companies, whether or not made or conceived during working hours, alone or with others, which related, directly or indirectly, to businesses or proposed businesses of the Companies, and Executive agrees that all such Confidential Information shall be the exclusive property of the Companies.  Executive shall establish and maintain written records of all such Confidential Information with respect to inventions or similar intellectual property for the benefit of the Companies and shall execute and deliver to the Companies any specific assignments or other documents appropriate to vest title in such Confidential Information in the Companies or to obtain for the Companies legal protection for such Confidential Information.  
(iii)Nondisclosure.  Executive shall not disclose, use or make known for his or another’s benefit any Confidential Information of the Companies or use 
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such Confidential Information in any way except in the best interests of the Companies in the performance of Executive’s duties under this Agreement.
(b)Return of Company’s Property.  Immediately upon termination of Executive’s employment with the Company, Executive shall deliver to the Company all Confidential Information, documents, correspondence, notebooks, reports, computer programs, names of full-time and part-time employees and consultants, and all other materials and copies thereof (including computer discs and other electronic media) relating in any way to any business conducted by the Companies in any way obtained by Executive during the period of his employment or engagement with the Company.  Immediately upon termination of Executive’s employment with the Company, Executive shall deliver to the Company all tangible property of Company in the possession of Executive, including without limitation, telephones, facsimile machines, computers, leased automobiles and credit cards.  
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(c)Noncompetition and Nonsolicitation.
(i)Noncompete.  In consideration for (A) the compensation provided to Executive by the Company under this Agreement and (B) the provision of Confidential Information, during the period of Executive’s employment with the Companies and for a period of one (1) year following the termination of Executive’s employment with the Companies for any reason (the “Restricted Period”), Executive shall not, directly or indirectly, without the written consent of the Board, own, manage, operate, control, be employed by in the same or in a similar manner to which Executive is employed by the Companies, consult with or participate in or be connected with any entity owning or having financial interest in, whether direct or indirect, a business entity which is in the same line or lines of business as and competes with any business of the Companies, if such business has a branch or other office of any kind located within fifteen (15) miles of any branch or office of the Companies, which the parties stipulate is a reasonable geographic area because of the scope of the Companies’ operations and Executive’s employment with the Companies.  For purposes of this Section 5(c)(i), each of the following activities, without limitation, shall be deemed to constitute proscribed activities during the Restricted Period:  to engage in, work with, have an interest in (other than interests of less than 1% in companies with securities traded on a nationally recognized stock exchange or interdealer quotation system), advise, consult, manage, operate, lend money to (other than interests of less than 1% in companies with securities traded on a nationally recognized stock exchange or interdealer quotation system), guarantee the debts or obligations of, or permit one’s name or any part thereof to be used in connection with an enterprise or endeavor, either individually, in partnership or in conjunction with any person or persons, firm, association, company or corporation, whether as principal, director, agent, shareholder, partner, employee, consultant or in any other manner whatsoever.  Executive may not avoid the purpose and intent of this Section 5(c) by engaging in conduct within the geographically limited area from a remote location through means such as telecommunications, written correspondence, computer generated or assisted communications, or other similar methods.  
(ii)Nonsolicitation.  During the Restricted Period, Executive shall not, directly or indirectly, (A) solicit for employment, or advise or recommend any entity to employ or solicit for employment, any person who is, or at any time within the one (1)year period immediately prior to Executive’s last day of employment was, an employee of the Company, or (B) solicit the banking business of, or conduct any banking business with, any Restricted Customer of the Companies.  For purposes of this Agreement, “Restricted Customer” means any individual, corporation, limited liability company, association, partnership, estate, trust, or any other entity or organization to which the Companies marketed, attempted to or actually promoted or provided products or services to at any time during the one (1)year period immediately prior to Executive’s last day of 
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employment, and with respect to which Executive has participated in any efforts related to the marketing, negotiation or provision of products or services, had contact with or supervised employees who had contact with, or received Confidential Information about, within the one (1)year period immediately prior to Executive’s last day of employment.  This Section 5(c)(ii) shall be geographically limited to wherever any Restricted Customer can be found or is available for solicitation or to do business with, which the parties stipulate is a reasonable geographic area because of the scope of the Companies’ operations and Executive’s employment with the Companies.  Executive may not avoid the purpose and intent of this Section 5(c)(ii) by engaging in conduct within the geographically limited area from a remote location through means such as telecommunications, written correspondence, computer generated or assisted communications, or other similar methods. 
(iii)Reasonable and Necessary.  Executive agrees that the above covenants are reasonable and necessary agreements for the protection of the business interests covered in the fully enforceable, ancillary agreements set forth in this Agreement. 
(d)Nondisparagement.  From and following the Effective Date, Executive shall not make, either directly or by or through another person, any oral or written negative, disparaging or adverse statements or representations of or concerning the Companies, any of their clients or businesses or any of their current or former directors, officers or employees; provided, however, that, subject to Section 5(a), nothing herein shall prohibit Executive from disclosing truthful information if legally required (whether by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process).  In the event of Executive’s termination of employment, the Company shall instruct its senior executive officers not to make, either directly or by or through another person, any oral or written negative, disparaging or adverse statements or representations of or concerning Executive or any of his agents or related parties; provided, however, that nothing herein shall prohibit any such individuals from disclosing truthful information if legally required (whether by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process).
(e)Cooperation.  Executive agrees that following Executive’s termination of employment, upon the reasonable request of the Company or any of its affiliates, Executive shall use reasonable efforts to assist and cooperate with the Company or any of its affiliates in connection with the defense or prosecution of any claim that may be made against or by the Company or any of its affiliates, or in connection with any ongoing or future investigation or dispute or claim of any kind involving the Company or any of its affiliates, including any proceedings before any arbitral, administrative, regulatory, judicial, legislative or other body or agency; provided that the Company shall provide Executive with reasonable compensation for the time actually expended in such endeavors (at an hourly rate based on the Annual Base Salary) and shall reimburse Executive’s 
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reasonable business expenses incurred in connection with such cooperation to the extent that such expenses would have been reimbursed under Section 2(b)(v) had they been incurred during the Employment Period.
(f)Trade Secrets; Whistleblower Rights.  The Company hereby informs Executive that, notwithstanding any provision of this Agreement to the contrary, an individual may not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (i) is made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law, or (ii) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding.  Further, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the employer’s trade secrets to the attorney and use the trade secret information in the court proceeding if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.  In addition, notwithstanding anything in this Agreement to the contrary, nothing in this Agreement shall impair Executive’s rights under the whistleblower provisions of any applicable federal law or regulation or, for the avoidance of doubt, limit Executive’s right to receive an award for information provided to any government authority under such law or regulation.
(g)Acknowledgments and Remedies.
(i)Executive acknowledges that the Company and its affiliates have (A) expended and will continue to expend substantial amounts of time, money and effort to develop business strategies, employee, customer and other relationships and goodwill to build an effective organization, and (B) a legitimate business interest in and right to protect their Confidential Information, goodwill and employee, customer and other relationships.  
(ii)Executive understands that the covenants contained in this Section 5 may limit Executive’s ability to earn a livelihood in a business similar to the business of the Company, and Executive represents that his experience and capabilities are such that he has other opportunities to earn a livelihood and adequate means of support for himself and his dependents. 
(iii)Any termination of (A) Executive’s employment, (B) the Employment Period or (C) this Agreement shall have no effect on the continuing obligations of Executive under this Section 5 or operation of this Section 5.  
(iv)Executive acknowledges that a violation by Executive of any of the covenants contained in this Section 5 would cause irreparable damage to the Companies in an amount that would be material but not readily ascertainable, and that any remedy at law (including the payment of damages) would be inadequate. Accordingly, Executive agrees that, notwithstanding any provision of this Agreement to the contrary, in addition to any other damages it is able to show, in 
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the event of a material breach by Executive of any of the covenants contained in this Section 5, the Companies shall be entitled (without the necessity of showing economic loss or other actual damage) to (A) cease payment of the compensation and benefits contemplated by Section 4 to the extent not previously paid or provided (including ceasing vesting of outstanding equity awards), (B) the prompt return by Executive of any portion of such compensation and the value of such benefits previously paid or provided (including forfeiture of any equity awards that vested pursuant to Section 4 or the repayment of the value of any equity awards that vested pursuant to Section 4 that have been exercised or settled, as applicable) and (C) injunctive relief (including temporary restraining orders, preliminary injunctions and permanent injunctions), without posting a bond, in any court of competent jurisdiction for any actual or threatened breach of any of the covenants set forth in this Section 5 in addition to any other legal or equitable remedies they may have. The preceding sentence shall not be construed as a waiver of the rights that the Companies may have for damages under this Agreement or otherwise, and all such rights shall be unrestricted.  The Restricted Period shall be tolled during (and shall be deemed automatically extended by) any period during which Executive is in violation of the provisions of Section 5(c) or (d), as applicable.  In the event that a court of competent jurisdiction determines that any provision of this Section 5 is invalid or more restrictive than permitted under the governing law of such jurisdiction, then, only as to enforcement of this Section 5 within the jurisdiction of such court, such provision shall be interpreted and enforced as if it provided for the maximum restriction permitted under such governing law.
6.Treatment of Certain Payments
(a)Anything in this Agreement to the contrary notwithstanding, in the event the Accounting Firm (as defined below) shall determine that receipt of all Payments (as defined below) would subject Executive to the excise tax under Section 4999 of the Code, the Accounting Firm shall determine whether to reduce any of the Payments paid or payable pursuant to this Agreement (the “Agreement Payments”) so that the Parachute Value (as defined below) of all Payments, in the aggregate, equals the Safe Harbor Amount (as defined below).  The Agreement Payments shall be so reduced only if the Accounting Firm determines that Executive would have a greater Net After-Tax Receipt (as defined below) of aggregate Payments if the Agreement Payments were so reduced.  If the Accounting Firm determines that Executive would not have a greater Net After-Tax Receipt (as defined below) of aggregate Payments if the Agreement Payments were so reduced, Executive shall receive all of the Agreement Payments to which Executive is entitled hereunder.
(b)If the Accounting Firm determines that the aggregate Agreement Payments should be reduced so that the Parachute Value of all Payments, in the aggregate, equals the Safe Harbor Amount, the Company shall promptly give Executive notice to that effect and a copy of the detailed calculation thereof.  All determinations 
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made by the Accounting Firm under this Section 6 shall be binding upon the Company and Executive and shall be made as soon as reasonably practicable following an Agreement Payment becoming due.  For purposes of reducing the Agreement Payments so that the Parachute Value of all Payments, in the aggregate, equals the Safe Harbor Amount, only amounts payable under this Agreement (and no other Payments) shall be reduced.  The reduction of the amounts payable hereunder, if applicable, shall be made by reducing the payments and benefits under the following sections in the following order:  (i) cash payments that may not be valued under Treas. Reg. § 1.280G-1, Q&A-24(c) (“24(c)”), (ii) equity-based payments that may not be valued under 24(c), (iii) cash payments that may be valued under 24(c), (iv) equity-based payments that may be valued under 24(c) and (v) other types of benefits.  With respect to each category of the foregoing, such reduction shall occur first (1st) with respect to amounts that are not “deferred compensation” within the meaning of Section 409A of the Code and next with respect to payments that are deferred compensation, in each case, beginning with payments or benefits that are to be paid the farthest in time from the Accounting Firm’s determination.  All fees and expenses of the Accounting Firm shall be borne solely by the Company.
(c)To the extent requested by Executive, the Company shall cooperate with Executive in good faith in valuing, and the Accounting Firm shall take into account the value of, services provided or to be provided by Executive (including Executive’s agreeing to refrain from performing services pursuant to a covenant not to compete or similar covenant), before, on or after the date of a change in ownership or control of the Company (within the meaning of Q&A2(b) of the final regulations under Section 280G of the Code), such that payments in respect of such services may be considered reasonable compensation within the meaning of Q&A9 and Q&A40 to Q&A44 of the final regulations under Section 280G of the Code and/or exempt from the definition of the term “parachute payment” within the meaning of Q&A2(a) of the final regulations under Section 280G of the Code in accordance with Q&A5(a) of the final regulations under Section 280G of the Code.
(d)The following terms shall have the following meanings for purposes of this Section 6:
(i)“Accounting Firm” shall mean a nationally recognized certified public accounting firm or other professional organization that is a certified public accounting firm recognized as an expert in determinations and calculations for purposes of Section 280G of the Code that is selected by the Company prior to a Change in Control for purposes of making the applicable determinations hereunder and is reasonably acceptable to Executive, which firm shall not, without Executive’s consent, be a firm serving as accountant or auditor for the individual, entity or group effecting the Change in Control. 
(ii)“Net After-Tax Receipt” shall mean the present value (as determined in accordance with Sections 280G(b)(2)(A)(ii) and 280G(d)(4) of the 
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Code) of a Payment net of all taxes imposed on Executive with respect thereto under Sections 1 and 4999 of the Code and under applicable state and local laws, determined by applying the highest marginal rate under Section 1 of the Code and under state and local laws which applied to Executive’s taxable income for the immediately preceding taxable year, or such other rate(s) as the Accounting Firm determines to be likely to apply to Executive in the relevant tax year(s).
(iii)“Parachute Value” of a Payment shall mean the present value as of the date of the change of control for purposes of Section 280G of the Code of the portion of such Payment that constitutes a “parachute payment” under Section 280G(b)(2) of the Code, as determined by the Accounting Firm for purposes of determining whether and to what extent the excise tax under Section 4999 of the Code will apply to such Payment.
(iv)“Payment” shall mean any payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of Executive, whether paid or payable pursuant to this Agreement or otherwise.
(v)“Safe Harbor Amount” shall mean 2.99 multiplied by Executive’s “base amount,” within the meaning of Section 280G(b)(3) of the Code.
7.Miscellaneous.
(a)Governing Law; Venue.  This Agreement shall be governed by and construed in accordance with the laws of the State of Texas, without reference to principles of conflict of laws.  The parties irrevocably submit to the jurisdiction of any state or federal court sitting in or for Collin County, Texas with respect to orders in aid or enforcement of arbitration awards and injunctive relief, and each party irrevocably agrees that all claims in respect of such dispute or proceeding shall be heard and determined in such courts.  The parties hereby irrevocably waive, to the fullest extent permitted by law, any objection that they may now or hereafter have to the venue of any dispute arising out of or relating to this Agreement or the transactions contemplated hereby brought in such court or any defense of inconvenient forum for the maintenance of such dispute or proceeding.  Each party agrees that a judgment in any such dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  THE PARTIES HEREBY WAIVE A TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR COUNTER CLAIM BROUGHT OR ASSERTED BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER ON ANY MATTERS WHATSOEVER ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT.
(b)Dispute Resolutions.  Any and all disputes that arise out of or relate to the provisions of this Agreement or the alleged breach thereof (other than orders in aid or enforcement of arbitration awards and injunctive relief) shall be resolved by arbitration in accordance with the Federal Arbitration Act and in accordance with the Employment Arbitration Rules of the American Arbitration Association (the “AAA”) before a single 
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arbitrator who shall be selected in accordance with the AAA rules.  The arbitrator must have at least ten (10) years’ experience in employment matters.  Arbitration will be conducted in Collin County, Texas.  Judgment may be entered upon the final award of the arbitrator.
(c)Indemnification.  The Company shall, to the maximum extent to which it is empowered by its governing documents and the laws of the State of Texas, defend, indemnify and hold harmless Executive from and against any and all demands, claims and causes of action made against Executive concerning or relating to his service, actions or omissions on behalf of the Company or its affiliates as an employee, director, officer, or agent, including, without limitation, holding Executive harmless for any losses, costs and expenses in connection with any such demand, claim, or cause of action.  Executive shall be covered by directors and officers insurance that the Company provides from time to time to its directors and executives, on terms no less favorable than those provided to similarly situated executives, both during Executive’s employment by the Company and for such period thereafter that the Company provides insurance coverage to its similarly situated former executives.
(d)Interpretation.  The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.  For purposes of this Agreement, the term “including” shall mean “including, without limitation” and the word “or” shall be understood to mean “and/or.”
(e)Amendments; No Waiver.  This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives.  Executive’s or the Company’s failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any right Executive or the Company may have hereunder shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement.
(f)Survival.  The provisions of this Agreement that by their terms call for performance subsequent to the termination of either Executive’s employment or this Agreement (including the terms of Sections 4, 5, 6 and 7(c)) shall survive such termination.
(g)Invalidity.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.
(h)Successors.  This Agreement is personal to Executive and without the prior written consent of the Company shall not be assignable by Executive otherwise than by will or the laws of descent and distribution.  This Agreement shall inure to the benefit of and be enforceable by Executive’s legal representatives.  This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.  As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any 
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successor to its business and/or assets as aforesaid that assumes and agrees to perform this Agreement by operation of law, or otherwise. 
(i)Notices.  All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:
If to Executive:    At the most recent address
on file at the Company.
If to the Company:    Independent Bank Group, Inc.
7777 Henneman Way
McKinney, Texas  75070
Attention:  Chief Executive Officer
or to such other address as either party shall have furnished to the other in writing in accordance herewith.  Notice and communications shall be effective when actually received by the addressee.
(j)Tax Withholding.  The Company may withhold from any amounts payable under this Agreement such federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation.
(k)Section 409A.
(i)General.  It is intended that payments and benefits made or provided under this Agreement shall not result in penalty taxes or accelerated taxation pursuant to Section 409A of the Code.  Any payments that qualify for the “short-term deferral” exception, the separation pay exception or another exception under Section 409A of the Code shall be paid under the applicable exception.  For purposes of the limitations on nonqualified deferred compensation under Section 409A of the Code, each payment of compensation under this Agreement shall be treated as a separate payment of compensation.  All payments to be made upon a termination of employment under this Agreement may only be made upon a “separation from service” under Section 409A of the Code to the extent necessary in order to avoid the imposition of penalty taxes on Executive pursuant to Section 409A of the Code.  In no event may Executive, directly or indirectly, designate the calendar year of any payment under this Agreement, and to the extent required by Section 409A of the Code, any payment that may be paid in more than one (1) taxable year shall be paid in the later taxable year.
(ii)Reimbursements and In-Kind Benefits.  Notwithstanding anything to the contrary in this Agreement, all reimbursements and in-kind benefits provided under this Agreement that are subject to Section 409A of the Code shall be made in accordance with the requirements of Section 409A of the Code, including, where applicable, the requirement that (A) any reimbursement is for 
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expenses incurred during Executive’s lifetime (or during a shorter period of time specified in this Agreement); (B) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year; (C) the reimbursement of an eligible expense will be made no later than the last day of the calendar year following the year in which the expense is incurred; and (D) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.
(iii)Delay of Payments.  Notwithstanding any other provision of this Agreement to the contrary, if Executive is considered a “specified employee” for purposes of Section 409A of the Code (as determined in accordance with the methodology established by the Company and its affiliates as in effect on the Date of Termination), any payment that constitutes nonqualified deferred compensation within the meaning of Section 409A of the Code that is otherwise due to Executive under this Agreement during the six (6)-month period immediately following Executive’s separation from service on account of Executive’s separation from service shall instead be paid, with interest (based on the rate in effect for the month in which Executive’s separation from service occurs), on the first business day of the seventh (7th) month following his separation from service (the “Delayed Payment Date”), to the extent necessary to prevent the imposition of tax penalties on Executive under Section 409A of the Code.  If Executive dies during the postponement period, the amounts and entitlements delayed on account of Section 409A of the Code shall be paid to the personal representative of his estate on the first to occur of the Delayed Payment Date or thirty (30) calendar days after the date of Executive’s death.  
(l)Effective Date; Entire Agreement.  This Agreement shall become effective as of the date hereof.    This Agreement shall constitute the entire agreement between the parties and terminates and supersedes any and all prior agreements and understandings (whether written or oral) between the parties with respect to the subject matter of this Agreement ; provided, however, that the covenants set forth in Section 5 of this Agreement shall be in addition to, and shall not supersede, any restrictive covenants to which Executive is otherwise subject under any other plan, agreement or arrangement of the Companies.  
(m)Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.
(n)Representations.  Executive represents and warrants to the Company that Executive (i) is not violating and will not violate any contractual, legal, or fiduciary obligations or burdens to which Executive is subject by entering into this Agreement or by providing services for the Company; (ii) is under no contractual, legal, or fiduciary obligation or burden that will interfere with Executive’s ability to perform services for the 
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Company; and (iii) has no previous convictions under any law, disputes with regulatory agencies, or other similar circumstances that would reasonably be expected to have an adverse effect on the Company.  Executive shall not disclose to the Company or induce the Company to use any confidential or proprietary information or material belonging to any previous employer or others. 
(o)Prohibition Against Certain Payments.  Notwithstanding any other provision to the contrary herein, the Company shall not be required to make any payment to the Executive hereunder if such payment would be a “golden parachute payment” as defined in 12 CFR § 359 unless such payment can be made in compliance with such regulation.

[Remainder of Page Intentionally Left Blank]
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IN WITNESS WHEREOF, Executive has hereunto set Executive’s hand and, the Company has caused these presents to be executed in its name and on its behalf, all as of the day and year first above written.
INDEPENDENT BANK

By:    _/s/ David R. Brooks__________________
    David R. Brooks
    Chairman of the Board and CEO

INDEPENDENT BANK GROUP, INC.

By:    ___/s/ David R. Brooks_________________
David R. Brooks
    Chairman of the Board and CEO

EXECUTIVE

_/s/ John G. Turpen________________________
John G. Turpen

[Signature Page to Employment Agreement]

Exhibit A
FORM OF RELEASE
THIS RELEASE (this “Release”) is entered into between John G. Turpen (“Executive”) and Independent Bank Group, Inc. (the “Company”) for the benefit of the Company and its affiliates.  The entering into and non-revocation of this Release is a condition to Executive’s right to receive certain payments and benefits under Section 4 of the Employment Agreement entered into by and between Executive and the Company, dated as of July __, 2021 (the “Employment Agreement”).  Capitalized terms used and not defined herein shall have the meaning provided in the Employment Agreement.

Accordingly, Executive and the Company agree as follows.

1.    General Release and Waiver of Claims.  In consideration for the payments and other benefits provided to Executive by the Employment Agreement, to which Executive is not otherwise entitled, and the sufficiency of which Executive acknowledges, Executive represents and agrees, as follows:

(a)    Release.  Executive, for himself, his heirs, administrators, representatives, executors, successors and assigns (collectively “Releasers”), hereby irrevocably and unconditionally releases, acquits and forever discharges and agrees not to sue the Company or any of its subsidiaries, divisions, affiliates and related entities and its current and former directors, officers, shareholders, trustees, employees, consultants, independent contractors, representatives, agents, servants, successors and assigns and all persons acting by, through or under or in concert with any of them (collectively “Releasees”), from any and all claims, rights and liabilities up to and including the date of this Release arising from or relating to Executive’s employment with, or termination of employment from, the Company, under the Employment Agreement and from any and all charges, complaints, claims, liabilities, obligations, promises, agreements, controversies, damages, actions, causes of actions, suits, rights, demands, costs, losses, debts and expenses of any nature whatsoever, known or unknown, suspected or unsuspected and any claims of wrongful discharge, breach of contract, implied contract, promissory estoppel, defamation, slander, libel, tortious conduct, employment discrimination or claims under any federal, state or local employment statute, law, order or ordinance, including any rights or claims arising under Title VII of the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. § 621 et seq. (“ADEA”), or any other federal, state or municipal ordinance relating to discrimination in employment.  Nothing contained herein shall restrict the parties’ rights to enforce the terms of this Release.

(b)    Proceedings; Whistleblower Rights.  To the maximum extent permitted by law, Executive agrees that he has not filed, nor will he ever file, a lawsuit asserting any claims that are released by this Release, or to accept any benefit from any lawsuit that might be filed by another person or government entity based in whole or in part on any event, act, or omission that is the subject of this Release.  Notwithstanding the foregoing, nothing in this Release shall impair Executive’s rights under the whistleblower provisions of any applicable federal law or regulation or, for the avoidance of doubt, limit Executive’s right to receive an award for information provided to any government authority under such law or regulation.

(c)    Exclusions.  This Release specifically excludes Executive’s rights and the Company’s obligations under Section 4 of the Employment Agreement.  Excluded from this Release are:  (i) any claims that cannot be waived by law; (ii) Executive’s rights to receive any payments or benefits under Section 4 of the Employment Agreement; (iii) any rights Executive may have to receive vested amounts under any of the Company’s employee benefit plans and/or pension plans or programs; (iv) Executive’s rights in and to any equity or ownership interest that Executive continues to hold following his termination of employment; (v) Executive’s rights to medical benefit continuation coverage pursuant to federal law (COBRA); (vi) any rights or claims that the law does not allow to be released and/or waived by private agreement; (vii) any rights or claims that are based on events occurring after the date on which Executive signs this Release; or (viii) any claims to indemnification or insurance coverage, including but not limited to “D&O coverage”, that Executive may have with respect to any claims made or threatened against Executive in Executive’s capacity as a director, officer or employee of the Company or the Releasees. Nothing contained in this Release shall release Executive from his obligations, including any obligations to abide by the covenants set forth in Section 5 of the Employment Agreement and any other restrictive covenants applicable to Executive that continue or are to be performed following termination of employment. 

(d)    EEOC Matters.  The parties agree that this Release shall not affect the rights and responsibilities of the U.S. Equal Employment Opportunity Commission (the “EEOC”) to enforce ADEA and other laws.  In addition, the parties agree that this Release shall not be used to justify interfering with Executive’s protected right to file a charge or participate in an investigation or proceeding conducted by the EEOC.  The parties further agree that Executive knowingly and voluntarily waives all rights or claims (that arose prior to Executive’s execution of this Release) the Releasers may have against the Releasees, or any of them, to receive any benefit or remedial relief (including, but not limited to, reinstatement, back pay, front pay, damages, attorneys’ fees, experts’ fees) as a consequence of any investigation or proceeding conducted by the EEOC.

2.    Acknowledgements.  Executive acknowledges that the Company has specifically advised him of the right to seek the advice of an attorney concerning the terms and conditions of this Release.  Executive further acknowledges that he has been furnished with a copy of this Release, and he has been afforded [twenty-one (21)/forty-five (45)] days in which to consider the terms and conditions set forth above prior to this Release.  By executing this Release, Executive affirmatively states that he has had sufficient and reasonable time to review this Release and to consult with an attorney concerning his legal rights prior to the final execution of this Release.  Executive further agrees that he has carefully read this Release and fully understands its terms.  Executive understands that he may revoke this Release within seven (7) days after signing this Release.  Revocation of this Release must be made in writing and must be received by the General Counsel at the Company, 7777 Henneman Way, McKinney, Texas 75070 within the time period set forth above.

3.    Governing Law.  This Release shall be governed by and construed in accordance with the laws of the state of Texas, without giving effect to any choice of law or conflicting provision or rule (whether of the state of Texas or any other jurisdiction) that would cause the laws of any jurisdiction other than the state of Texas to be applied.  In furtherance of the foregoing, the internal law 
A-2

of the state of Texas shall control the interpretation and construction of this Release, even if under such jurisdiction’s choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily apply.  The provisions of this Release are severable, and if any part or portion of it is found to be unenforceable, all other parts and provisions shall remain fully valid and enforceable.

4.    Effectiveness.  This Release shall become effective and enforceable on the eighth day following its execution by Executive, provided that he does not exercise his right of revocation as described above.  If Executive fails to sign and deliver this Release or revokes his signature, this Release shall be without force or effect, and Executive shall not be entitled to the payments and benefits of Section 4 of the Employment Agreement.

[Remainder of Page Intentionally Left Blank]

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EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS READ THIS RELEASE AND THAT EXECUTIVE FULLY KNOWS, UNDERSTANDS AND APPRECIATES ITS CONTENTS, AND THAT EXECUTIVE HEREBY EXECUTES THE SAME AND MAKES THIS RELEASE AND THE RELEASE PROVIDED FOR HEREIN VOLUNTARILY AND OF EXECUTIVE’S OWN FREE WILL.
															
					
	Date:	July 13, 2021	 	/s/ John G. Turpen	 
	 	John G. Turpen

A-4​

Exhibit 10.1
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The Principal Financial Group, Inc. Executive Severance Plan
Effective September 1, 2021
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This document does not constitute an agreement by your employer to continue to maintain the Plan, or any provision of the Plan, and is not a guarantee of future benefits. The Plan may be amended or terminated at any time. This document is not an employment contract and does not change the nature of at-will employment. Employment may be terminated by you or your employer at any time and for any reason.
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Section 1 – Purpose
The Principal Financial Group, Inc. Executive Severance Plan (“Plan”) has been established to provide severance payments to Eligible Employees in the event of a Qualifying Termination. To the extent the Plan provides deferred compensation, it is an unfunded Plan primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees.
Section 2 – Definitions
The definitions of the terms used in this Plan are set forth below.
Administrator means the Human Resources Committee of the Company’s Board of Directors or any committee or group of employees to which the Human Resources Committee of the Company’s Board of Directors delegates authority.
Affiliate means any corporation or other business entity that is a member of the same controlled group as, or under common control with, Company, as determined under Code section 414(b) or (c); provided, however, for purposes of this Plan, the term shall include entities outside the jurisdiction of the United States.
Annual Salary means income established by Employer as the person’s annual base compensation at the time of termination. Monetary recognition or awards (such as any bonuses or other incentives) are not included in determining annual base compensation.
Bonus means the cash component of any annual incentive bonus paid an Eligible Employee for a calendar year in which the Eligible Employee was in their current role and was continuously employed between January 1 through December 31. If at the time the Eligible Employee qualifies for Severance Pay they have not yet received a Bonus, for the purpose of this Plan their “Bonus” shall be the target associated with the cash component of the annual incentive bonus for their role.
Code means the Internal Revenue Code of 1986, as amended, and includes applicable Treasury regulations.
Company means Principal Financial Group, Inc. and any successors thereto.
Comparable Employment means any job determined by the Administrator or its designee to be Comparable Employment. The Administrator may consider any relevant factor in making this determination. In general, a position will constitute Comparable Employment if the total of unreduced Annual Salary, target annual incentive, and regularly awarded long-term incentive pay (if applicable) is no less than 80% of the Eligible Employee’s current total unreduced Annual Salary, target annual incentive, and regularly awarded long-term incentive pay (if applicable).
Disqualifying Event means an Eligible Employee has:
		●	accepted any offer of employment with Employer, an Affiliate, or a Successor Employer with such employment to commence prior to or promptly following termination of employment with Employer;

		●	declined an offer of Comparable Employment by Employer, an Affiliate, or a Successor Employer with such employment to commence promptly following termination by Employer;

		●	failed to sign a release of any and all claims against Company, Employer and their Affiliates (Release and Waiver), which restricts former employees from suing Company, Employer and their Affiliates, in the form provided by Employer;

		●	been terminated under the “Medical Leave Impacts on Employment” policy in the Employee Handbook; or

		●	been subject to a Termination for Cause.

Accepting a position with Company or an Affiliate as an Agent or Financial Representative shall not be considered a Disqualifying Event.
The forgoing list of Disqualifying Events is intended to be illustrative and may not be all-inclusive
Eligible Employee means an employee of an Affiliate of Company who has been designated part of the Executive Management Group (“EMG”) of the Company and/or has been appointed by the Company’s Board of Directors the title of
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Senior Vice President or an equivalent title such that the Human Resources Committee of the Company’s Board of Directors determines the employee’s compensation.
The following are not Eligible Employees:
		●	an employee who is not or ceases to be an Eligible Employee as defined in the Plan;

		●	an employee whose employment with Employer terminates by reason of death, disability or Termination for Cause as determined by the Administrator;

		●	an employee whose employment terminates through retirement or resignation;

		●	an employee whose employment ends under any circumstances other than meeting the eligibility requirements of the Plan;

		●	an employee who has a written employment contract with Employer that provides for severance benefits or an agreement that provides that the person is not eligible for severance benefits under this Plan;

		●	a person who is performing services for Company or an Affiliate pursuant to an independent contractor agreement even if a third party determines the person should have been classified as an employee during the time the services were provided to Company or an Affiliate;

		●	an individual who is currently receiving benefits under an Employer-sponsored long-term disability policy;

		●	an employee on an indefinite unpaid leave of absence, except where required by law; or

		●	an employee who is eligible for severance under any other agreement with the Company or an Affiliate, including but not limited to a change of control agreement.

Employer means the legal entity that employs the Eligible Employee.
ERISA means the Employee Retirement Income Security Act of 1974, as amended, and includes applicable Department of Labor regulations.
Health Benefits Premiums means the health, dental, and vision benefits premiums paid by the Eligible Employee or on the Eligible Employee’s behalf at the time of the Eligible Employee’s termination of employment.
Plan means The Principal Financial Group, Inc. Executive Severance Plan, as established September 1, 2021, as amended from time to time.
Severance Pay means the benefit an Eligible Employee is qualified to receive under this Plan, as described in Section 3 – Severance Benefit.
Successor Employer means any entity that assumes operations or functions formerly carried out by Employer (including, but not limited to, the buyer of a facility, division or business operation, or any entity to which an Employer operation or function has been outsourced), any subsidiary, affiliate, or otherwise identifiable entity of Employer that is sold or otherwise transferred to an owner other than Employer, or any entity making a job offer at the request of Employer (including, but not limited to, a joint venture of which Employer or an Affiliate is a member).
Termination for Cause means termination of an Eligible Employee’s employment due to any of the following reasons: (a) willful neglect in the performance of the Eligible Employee’s duties for the Company or an Affiliate or repeated failure or refusal to perform such duties; (b) engagement in conduct in connection with the Eligible Employee’s employment with the Company or an Affiliate that results, or could reasonably be expected to result in, material harm to the business or reputation of the Company or an Affiliate; (c) conviction of, or plea of guilty or no contest to (x) any felony or (y) any other crime that results, or reasonably could be expected to result, in material harm to the business or reputation of the Company or an Affiliate; (d) material violation of the written policies of the Company or an Affiliate, including but not limited to those relating to sexual harassment or the disclosure or misuse of confidential information, or those set forth in the manuals or statements of policy of the Company or an Affiliate; (e) fraud or misappropriation, embezzlement or misuse of funds or property belonging to the Company or an Affiliate; (f) act of personal dishonesty that involves personal profit in connection with the Eligible Employee’s employment with the Company or an Affiliate; or (g) failure to comply in any respect with the
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Foreign Corrupt Practices Act, the Securities Act of 1033, the Exchange Act, the Sarbanes-Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, or the Truth in Negotiations Act, or any rules or regulations thereunder.
Notwithstanding the foregoing, clauses (a) – (b) and (d) shall not constitute “Cause” unless and until the Company or an Affiliate has: (x) provided the Eligible Employee, within sixty (60) days of the Company’s or Affiliate’s knowledge of the occurrence of the facts and circumstances underlying such Cause event, written notice stating with specificity the applicable facts and circumstances underlying such finding of Cause and (y) provided the Eligible Employee with an opportunity to cure the same (if curable) within thirty (30) days after the receipt of such notice.
Section 3 - Severance Benefit
Qualifying Termination. An Eligible Employee may be qualified for Severance Pay if he or she has not had a Disqualifying Event and:
		●	is terminated by, or receives and does not accept an offer for non-Comparable Employment from, Employer or an Affiliate due to a reduction in force, office closing, outsourcing or divestiture of a business; or

		●	has an involuntary, permanent reduction in work hours that results in a salary reduction that would not meet the definition of Comparable Employment.

If an Eligible Employee has an involuntary permanent reduction in work hours that results in non-Comparable employment, or receives an offer of non-Comparable Employment, the Eligible Employee has the choice of accepting the non-Comparable Employment or receiving Severance Pay.
Severance Pay. An Eligible Employee qualified for Severance Pay will receive, based on the Eligible Employee’s title, one lump sum severance payment calculated as follows:
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	Title
	Severance Benefit

	Chief Executive Office
	
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An amount equal to two times the Eligible Employee’s Annual Salary; plus

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An amount equal to two times the average amount of the Bonus paid the Eligible Employee for the last three years; plus

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An amount equal to two years of Health Benefits Premiums.

	Members of the EMG, Other Than the Chief Executive Officer, Including Members of the EMG Who Are Senior Vice Presidents
	
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An amount equal to one and a half times the Eligible Employee’s Annual Salary; plus

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An amount equal to one and a half times the average amount of the Bonus paid the Eligible Employee for the last three years; plus

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An amount equal to one and a half years of Health Benefits Premiums. 

	Senior Vice Presidents and Employees with Equivalent Titles Who Are Not Members of the EMG
	
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An amount equal to the Eligible Employee’s Annual Salary; plus

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An amount equal to the average amount of the Bonus paid the Eligible Employee for the last three years; plus

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An amount equal to one year of Health Benefits premiums

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If at the time an Eligible Employee qualifies for Severance Pay they have received less than three Bonuses, the bonus component of their Severance Pay shall be calculated by averaging the Bonuses they have received.
Time of Payment. Severance Pay generally will be paid on a regular payday within 30 days after the Eligible Employee signs the Release and Waiver and after the Release and Waiver may not be revoked. However, except as provided below in the section titled “Code Section 409A,” in no event shall any such payment be made later than March 15th of the calendar year following the calendar year in which the Eligible Employee experiences a Qualifying Termination entitling the Eligible Employee to such payment under this Plan.
Any payment an Eligible Employee receives pursuant to a federal, state, or local law relating to involuntary terminations, including but not limited to the Worker Adjustment and Retraining Notification Act, or pursuant to an agreement requiring notice of termination of employment, will be deducted from the Severance Pay.
Code Section 409A. The Plan is intended to be exempt from the requirement of Code Section 409A, under the involuntary pay plan or other exception and should be interpreted accordingly. However, to the extent that any amount payable under the Plan is subject to the requirements of Code section 409A, nothing in this Plan shall operate or be construed to cause the Plan to fail to comply with the requirements of Code Section 409A and, to the extent applicable, it is intended that the Plan comply with the provisions of Code Section 409A and shall be administered in a manner consistent with that intent.
To the extent this Plan is subject to Code Section 409A, any provision of this Plan that would cause the Plan or any payment made hereunder to fail to satisfy Code Section 409A shall have no force and effect until amended by the Company to comply with Code Section 409A (which amendment may be retroactive to the extent such retroactive amendment would not violate Code Section 409A) and may be made by the Company without the consent of any Eligible Employee. In no event whatsoever shall the Company or any Employer be liable for any additional tax, interest or penalty that may be imposed on an Eligible Employee by Code Section 409A or damages for failing to comply with Code Section 409A.
Notwithstanding anything in the Plan to the contrary, in no event will payment of any amount that is “nonqualified deferred compensation” within the meaning of Code Section 409A(d)(1) be made to an Eligible Employee who is a “specified employee” within the meaning of Code Section 409A(a)(2)(B)(i) and the regulations thereunder, prior to the date which is six (6) months after such Eligible Employee’s Separation from Service (as defined by Code section 409A). Upon expiration of the six-month delay period, all payments and benefits delayed pursuant to this provision shall be paid or reimbursed to the Eligible Employee in a lump sum without interest. To the extent that reimbursements or other in-kind benefits under this Plan constitute “nonqualified deferred compensation” under Code Section 409A, (a) all expenses or other reimbursements hereunder shall be made on or before the last day of the taxable year following the taxable year in which such expenses were 
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incurred by the participant, (b) any right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (c) no such reimbursement, expenses eligible for reimbursement or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement or in-kind benefits to be provided in any other taxable year.
Reemployment. An Eligible Employee may not receive both Severance Pay and salary from the Company or any Affiliate during the same period. Therefore, if an Eligible Employee is rehired by Employer or any Affiliate of Company during the period for which Severance Pay is received (for example, within 2 years post-termination for the Chief Executive Officer), they must repay the amount of Severance Pay for the period after the rehire date. This amount must be repaid within 90 days of the Company or an Affiliate requesting repayment. This paragraph shall not apply to an Eligible Employee who is re-hired as a Financial Representative.
Withholding. Employer shall deduct from Severance Pay any taxes required by law or regulation and will report all such amounts payable to such authority as required by applicable law or regulation.
Section 4 - Administration
Administrator. The Administrator has the following general powers and duties which are in addition to those the Plan otherwise gives to the Administrator:
		●	to construe and enforce the terms of the Plan, including ambiguous provisions, if any, and the rules and regulations the Administrator adopts, including interpretation of the Plan and any document related to the Plan’s operation;

		●	to determine eligibility for benefits, and to determine the type and extent of benefits, if any, to be provided;

		●	to determine all legal and factual questions that arise in the course of administering the Plan;

		●	to adopt rules of procedure and regulations necessary for the proper and efficient administration of the Plan, provided the rules are not inconsistent with the terms of the Plan, the Code, ERISA or other applicable law;

		●	to correct any defect or omission or reconcile any inconsistency in this Plan or any payment hereunder, and to make any other determinations that it believes necessary or advisable in the administration of the Plan;

		●	to review and render decisions regarding a claim for (or denial of a claim for) a benefit under the Plan; and

		●	to engage the service of agents whom the Administrator may deem advisable to assist it with the performance of its duties; to make any other determinations and undertake any other actions the Administrator believes are necessary or appropriate for the administration of the Plan; and

		●	to delegate its responsibilities under the Plan and to designate other persons to carry out any of its responsibilities with any such delegation in writing.

The Administrator shall furnish all notices and perform all filings, as required by law.
The Administrator shall have total and complete discretion to interpret and construe the Plan and to determine all questions arising in the administration, interpretation, and application of the Plan. Any determination the Administrator makes under the Plan is final and binding upon any affected person. In any action to review any such determination by the Administrator, the Administrator shall be deemed to have exercised its discretion properly unless it is duly proven that the Administrator has acted arbitrarily and capriciously.
Notification. The Administrator will notify Eligible Employees when and if they become eligible for Severance Pay under this Plan.
Claims Procedures. If an individual believes he or she is entitled to Severance Pay that was not provided, the individual (or the individual’s authorized representative) must file a formal written claim with the Administrator to pursue the matter further. The claim should explain what the claimant wants and why the claimant believes he or she is entitled to it and should include copies of any relevant documents (but there is no need to submit a copy of the Plan itself). The claim must be received by the Administrator within six (6) months of the date the claimant terminated employment with Employer.
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The Administrator will ordinarily respond to the claim within 90 days after the date it is received. However, this period can be extended for an additional 90 days if the Administrator gives the claimant written notice of the extension, the reason why the extension is necessary, and the new date a decision is expected. The Administrator will provide the claimant with a written decision on the claim. If the claim is denied in whole or in part, the written decision will explain why, with specific reference to any relevant Plan provisions, and with a description of any additional material or information necessary to perfect the claim.
Appeal Procedures. If the initial claim is denied and the claimant wants to pursue the matter further, the claimant (or the claimant’s authorized representative) must, within 60 days after receipt of the denial letter, file a written appeal with the Administrator. The written appeal should describe all reasons why the claimant believes the claim denial was in error and should include copies of any documents the claimant wants the Administrator to consider in support of the appeal (other than the Plan document and the claim denial letter).
The claimant can obtain copies of all documents that the Administrator considered or relied on in deciding the claim. These copies will be provided free of charge. If the claimant requests copies, the 60-day period for filing the appeal will stop running until the Administrator has responded to the request. Once the Administrator has responded, the 60-day appeal period will begin running again, with whatever time remained at the time the documents were requested.
The Administrator will ordinarily decide the appeal no later than the date of the next meeting of the Administrator that follows receipt of the appeal. However, if the appeal is filed within 30 days before the next meeting, the Administrator will ordinarily decide the appeal no later than the date of the second meeting of the Administrator that follows receipt of the appeal. This period may be extended if the Administrator notifies the claimant of the extension, the reason why the extension is necessary, and the new date a decision is expected. If special circumstances require a further extension of time, a benefit determination will be rendered no later than the date of the third meeting of the Administrator following the Plan's receipt of the appeal. The Administrator will provide a written decision on the appeal as soon as possible, but not later than 5 days after the benefit determination is made. If the appeal is denied in whole or in part, the written decision will explain why, with specific reference to any relevant Plan provisions.
Civil Action Under ERISA. If the appeal is denied in whole or in part, and the claimant wants to pursue the matter further, the claimant has the right to file a lawsuit under section 502(a) of the Employee Retirement Income Security Act. Any such lawsuit must be filed no later than one (1) year after the date on the appeal denial letter. In addition, no lawsuit seeking benefits under the Plan can be brought more than two (2) years after the date the claimant terminated employment with Employer.
A claimant must first exhaust all rights to review, as described in the section of this Plan titled “Claims and Appeal Procedures,” before they may file a lawsuit related to this Plan. Any such lawsuit must be filed in the United States District Court for the Southern District of Iowa.
The claimant may obtain copies of all documents the Administrator considered or relied on in deciding the appeal. These copies will be provided free of charge. A request for copies will not, however, suspend or “toll” the period for filing a lawsuit.
Section 5 – Amendment and Termination
The Company’s Board of Directors, or its delegate documented in writing, reserves the right and authority to amend the Plan provisions from time to time. Amendments can include remedial retroactive changes (within the time specified by applicable laws and regulations) to comply with any law or regulation issued by any governmental agency to which the Plan is subject. The Company may correct obvious and unambiguous typographical errors and cross references that merely correct a reference but that do not in any way change the original intended meaning of the provisions.
The benefits provided under this Plan are not vested benefits. On or after the termination date of the Plan, no obligations for payment under the Plan will exist.
Section 6 – Miscellaneous
Right to Terminate Employment. A former Eligible Employee’s failure to qualify for Severance Pay under this Plan will not rescind or otherwise affect the Eligible Employee’s termination of employment from Employer, and such failure to qualify for Severance Pay will not establish any right:
		●	to a continuation or reinstatement of employment with Employer; or

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		●	to receive any payment from Employer in lieu of Severance Pay.

Source of Benefits. All Severance Pay paid to a terminated Eligible Employee under this Plan will be paid from the general assets of Employer, and the status of an Eligible Employee’s claim to any Severance Pay will be the same as the status of a claim against Employer by any general and unsecured creditor. No person can look to, or have any claim against, any officer, director, employee, or agent of Employer as an individual, for payment of any benefits under this Plan.
No Assignment; Binding Effect. No Eligible Employee will have the right to alienate, assign, commute, or otherwise encumber benefits under this Plan for any purpose, and any attempt to do so will be disregarded completely as null and void. The provisions of this Plan will be binding on each Eligible Employee (and on each person who claims a benefit under any such Eligible Employee) and on Employer.
Construction. This Plan will be construed in accordance with the law of the state of Iowa to the extent not preempted by federal law. Headings and subheadings have been added for convenience of reference and will have no substantive effect whatsoever. All references to sections will be to sections in this Plan.
Usage. Whenever applicable, the masculine gender, when used in this Plan, will include all gender identities, and the singular will include the plural.
Drafting Errors. If, due to errors in drafting, any Plan provision does not accurately reflect its intended meaning, as demonstrated by consistent interpretations or other evidence of intent, or as determined by the Administrator in its sole and exclusive judgment, the provision shall be considered ambiguous and shall be interpreted by the Administrator in a fashion consistent with its intent, as determined in the sole and exclusive judgment of the Administrator. The Company shall ensure the Plan is amended retroactively to cure any such ambiguity.

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