Document:

GLOBAL
TECH INDUSTRIES GROUP, INC.

LETTER
OF INTENT

 

April
12, 2019

 

Mr.
Suneet Singal

First
Capital Master Advisor LLC

90
Broad Street, 2nd Floor

New
York, NY 10004

 

Via
email: s@firstcapitalre.com

 

Dear
Suneet:

 

This
Letter of Intent (“Letter of Intent”) is made by and between Global Tech Industries Group, Inc. (“GTII”),
a publicly traded Nevada corporation and First Capital Master Advisor, LLC (“FCMA”), a Delaware limited liability
company, and is to describe, confirm and bind the parties hereto to the principle terms and conditions under which GCA Equity
Partners and/or its affiliates which may include one or more special purpose vehicle entities holding various real estate assets
, (collectively, “Seller”), shall contribute and/or sell certain real estate assets to GTII (or one of its wholly
owned subsidiaries), as set forth in the terms and conditions detailed in Exhibits A & B hereto (the “Transaction”).
The Transaction is subject and conditioned upon the terms and conditions of this Letter of Intent, including the execution of
mutually acceptable definitive agreements governing the Transaction (the “Definitive Agreements”),in substantially
the same form as the Master Agreement Regarding the Contribution of the Real Property Interests dated April 7, 2019, receipt of
which is hereby acknowledged by GTII and FCMA and subject to such other customary documentation as may be required for the Transaction
contemplated herein.

 

The
parties intend this Letter of Intent to be binding and enforceable, and that it will inure to the benefit of the parties and their
respective successors and assigns. It represents a legally binding commitment on the part of the parties with respect to the Transaction,
except in the event that certain conditions of the Transaction are not timely performed or there is a breach of this Letter of
Intent by any of the parties hereto, or at the election of a party hereto as more fully described in Exhibit A (the “Termination
Provisions”). Until such time as it is either replaced by the Definitive Agreements or a Termination Provision is asserted
and exercised, this Letter of Intent shall be in full force and effect.

 

This
Letter of Intent may be executed in any number of counterparts and any party hereto may execute any such counterpart, each of
which when executed and delivered will be deemed to be an original and all of which counterparts taken together will constitute
but one and the same instrument.

 

Any
disputes arising from or related to the Letter of Intent or the Termination Provisions will be governed by and construed under
and in accordance with the laws of the State of New York and submitted to binding arbitration with the American Arbitration Association,
Metro New York following good faith efforts to mediate any such disputes.

 

    	1

    	 

    

 

EXHIBIT
A

 

SUMMARY
OF THE TERMS OF THE TRANSACTION:

 

Surviving
Company: GTII

Place
of Incorporation: Nevada

Stock
Exchange: OTC Pink Fully Reporting

Primary
Shares Outstanding: Approximately 215,000,000 shares of Common Stock issued at par value $0.001 per share, and outstanding as
of the date hereof

Authorized
Common Stock: 350,000,000 shares authorized

Authorized
Preferred Stock: Preferred Stock, par value $.001, 50,000 authorized, 1,000 issued

Stock
Options: None

Warrants:
None

ESOP
Deferred: None

 

TRANSACTION:

 

Subject
to legal, tax and accounting structuring to be determined in good faith and in the respective parties mutual best interests, Seller
will contribute and/or sell certain real estate assets listed on Exhibit B, or the outstanding equity of special purpose vehicles
that own the assets (collectively, the “Assets”), to GTII or a wholly owned seasoned subsidiary of GTII. The Transaction
will result in a reverse merger and a change of control of GTII. The name and ticker symbol of GTII may be changed at the election
of Seller upon the signing of the Definitive Agreements and the closing (the “Closing”) of the Transaction, to a name
and symbol to-be-determined by Seller. Post Transaction GTII, following the Closing, is referred to herein as the “Pro Forma
Company”. At the election of Seller, as of or following the Closing, the Pro Forma Company intends to remain incorporated
under the laws of the state of Nevada.

 

NEW
CLASSES OF GTII PREFERRED STOCK, REAUTHORIZATION OF SHARES:

 

Within
ten (10) business days of execution of this Letter of Intent, or as soon thereafter as may be practicable, GTII shall create and
designate two (2) new classes of Preferred Stock:

 

(1)
Series B: GTII shall authorize the issuance of a series of Preferred Stock consisting of One Thousand (1,000) shares, without
par value, to be designated Series B Convertible Preferred Stock (“Series B”). GTII may not issue more than or increase
the authorized shares of Series B beyond 1,000 shares. Each share of Series B shall be convertible by its holder into a specific
number of GTII Common Stock shares (“New GTII Common”) equal to a market value of $270,000 calculated under the VWAP
formula as more fully described herein. The Series B will automatically convert into New GTII Common of the Pro Forma Company
upon the anticipated reverse split of GTII Common Stock (“Stock Split”), as more fully described herein, being declared
effective by FINRA (“Effective Date”). In the event of any unforeseen instance whereby the Stock Split does not occur
the parties may determine another conversion trigger consistent with the terms of this binding Letter of Intent. The Series B
and the New GTII Common into which it is converted shall have full voting rights.

 

(2)
Series C: GTII shall authorize the issuance of a series of Preferred Stock consisting of Twelve Thousand Five Hundred (12,500)
shares, without par value, to be designated Series C Convertible Preferred Stock (“Series C”). GTII may not issue
more than or increase the number of authorized shares of Series C beyond 12,500 shares. Each share of Series C shall be convertible
by its holder into a specific number of New GTII Common equal to a market value of $1,000 calculated under the VWAP formula as
more fully described herein. The Series C is convertible into New GTII Common of the Pro Forma Company at the election of any
holder after issuance up to an outside date of six (6) months after the Closing of the Transaction after which it automatically
will convert into New GTII Common. The Series C shall not have any voting rights, but the GTII New Common into which it is converted
shall have voting rights.

 

    	2

    	 

    

 

Prior
to Closing GTII shall amend its Articles of Incorporation to increase its authorized stock to a number of shares sufficient to
pay the Consideration of the Transaction contemplated herein.

 

CONSIDERATION
AND PRO FORMA:

 

Sellers
Equity:

 

The
Seller’s Assets are described on Exhibit B attached hereto and made part of this Letter of Intent, or will be identified
in writing for inclusion in the Assets prior to the Closing of the Transaction. The Assets being contributed to GTII have or will
have at the Closing of the Transaction an aggregate residual value of approximately $450 million. As consideration for the Assets,
GTII shall issue to Seller or its designees One Billion Eight Hundred Million (1,800,000,000) shares of GTII pre Stock Split pre
Closing Common Stock (“Seller GTII Common Stock”). In addition to the Seller GTII Common Stock, Seller shall receive
all of the Series B stock. The aggregate Transaction is valued at approximately $465 million based on the equity value of the
Assets (the “FC Asset Value”) and Seller will, at Closing, assign approximately $65 million of debt encumbering the
Assets to the Pro Forma Company (see Exhibit B for corresponding estimated values related to those Assets that are identified
for the Transaction to date). Seller shall reserve the right to add or subtract particular Assets to be contributed to GTII prior
to the execution of the Definitive Agreements, and the FC Asset Value, the resulting equity and the percentage splits will be
adjusted accordingly based on the recognized equity value of the final contributed Assets. As a result, Seller will receive a
number of shares of GTII Common stock and Series B shares convertible into new GTII Common Stock equal to the FC Asset Value which
should be approximately 91% of the post-Closing issued and outstanding GTII Common Stock (“Pro Forma GTII Common Stock”)
on a fully-diluted basis, with the number of shares of Seller’s Series B conversions being calculated and derived from a
price equal to the 10-day volume-weighted average price of the GTII Common Stock (as per Bloomberg) (the “VWAP Price”)
for the 10 trading days immediately preceding the Effective Date of the conversion (“Seller’s Equity”).

 

The
Pro Forma GTII Common Stock shall be duly authorized, validly issued, non-assessable, and free from all liens, taxes and charges.
The Pro Forma Company shall have a sufficient number of authorized shares both pre and post Stock Split reserved to fulfill the
issuances contemplated by the Transaction. The Pro Forma GTII Common Stock issued to Seller shall be issued with its transferability
subject to Rule 144 of the Securities Act of 1933, as amended, and subject to customary restrictions. The Pro Forma Company may
elect to register all or some of the Pro Forma GTII Common Stock or Series B or Series C Stock and the new GTII Common Stock into
which they are convertible (i.e., registered with the SEC on Form S-4, and/or registered with the SEC on Form S-3), and/or enable
their re-sale as Rule 144 SEC eligible shares through a public resale of restricted or control securities so as to facilitate
the distribution of such equity to Seller and Seller affiliates. Pro Forma Company shall grant to GTII and any of its shareholders
or designees piggyback registration rights on a pro rata basis with Seller shareholders.

 

GTII
Shareholders and Affiliates Equity:

 

At
the Closing Date of the Transaction, as more fully described herein, GTII will have issued up to a maximum of 350,000,000 pre-split
Common Stock, to affiliates, advisors, shareholders, officers, board members, consultants and other designees at its sole discretion.
In addition, GTII shall issue, at the Closing, all of the Series C to affiliates, vendors, debt holders, advisors, consultants,
service providers and other designees convertible into new GTII Common Stock of the Pro Forma Company. The aggregate GTII Equity
(“GTII Equity”) shall be comprised of all pre-Closing outstanding and issued GTII Common Stock, excluding only Seller
GTII Common Stock, and all Series C. Any issued Series C and GTII Common Stock shall be restricted under Rule 144 subject to registration
more fully described herein.

 

    	3

    	 

    

 

As
a result of the issuance of the Seller Equity, at Closing, the aggregate of the GTII Equity and prior issuance of GTII Common
Stock shall equal in the aggregate to 9% of the Pro Forma GTII Common Stock on a fully-diluted basis, with the number of shares
of GTII’s Series C conversions being calculated and derived from the 10-day volume-weighted average price of the GTII Common
Stock (as per Bloomberg) (the “VWAP Price”) for the 10 trading days immediately preceding the date of the conversion.
The resulting equity value to be retained as the GTII Equity at Closing, would approximate $47.5 million of the Pro Forma Company.

 

For
the sake of clarity, fully diluted shares shall include, if any, earn-in shares, escrowed shares, warrants, options, restricted
stock units, equity-linked and/or convertible securities in connection with the Transaction.

Notwithstanding
any provision contained herein to the contrary and for the avoidance of doubt, any transfer, assignment, sale to conveyance of
the GTII Assets shall not relieve, limit, excuse, waive, release and/or terminate the obligations of GTII under this Letter of
Intent and the Definitive Agreement(s).

 

GTII
PRE-MERGER ASSETS AND LIABILITIES:

 

GTII
Assets:

 

On
or before the Closing Date, GTII, including its subsidiaries, shall convey and transfer all of its assets (“GTII Assets”)
to a designee of its sole choosing. The GTII Assets shall include but not be limited to cash and securities, intellectual property,
contracts, accounts receivable, claims, trademarks, domain names, goodwill and other tangible and intangible assets including
all those disclosed in GTII’s consolidated financial statements. GTII Assets shall expressly exclude GTII’s name and
symbol. GTII’s recipient of the GTII Assets shall indemnify and hold harmless the Pro Forma Company from and against any
liabilities connected with the GTII Assets.

 

GTII
Liabilities:

 

As
of the date of this Letter of Intent first above written, GTII will have approximately $5.5 million of debt and miscellaneous
liabilities (“GTII Debt”). A non-affiliate (“Agent”) of GTII shall be retained and capitalized with Series
C to resolve, settle and pay the GTII Debt. The Agent shall endeavor to resolve all of the GTII Debt by the Closing Date or by
another outside date mutually agreed to by the parties (“Outside Debt Date”). In the event that the Agent is unable
to fully resolve the GTII Debt and obtain releases by the Outside Debt Date, and the Pro Forma Company assumes any remaining GTII
Debt, GTII or its Agent shall return a number of Series C shares to the Pro Forma Company treasury equal to the value of any remaining
and unresolved GTII Debt.

 

STOCK
SPLIT AND UPLISTING:

 

The
parties hereto intend to reverse split the Pro Forma Company’s issued and outstanding (and possibly authorized, in its discretion)
common stock. As soon as appropriate following the Closing Date, but in no event later than 30 days after the Closing Date, the
Pro Forma Company shall file a corporate action with FINRA to change its name, trading symbol and reverse split its common stock.
The ratio of the stock split shall be determined by the parties with the goal of achieving an approximate post-split market share
price of $10 per share.

 

    	4

    	 

    

 

As
soon as appropriate after the Closing Date but in no event later than 30 days after the Closing Date, the Pro Forma Company shall
apply to be up listed on the NYSE Exchange, NYSE American Exchange, the NASDAQ Capital Market, or the OTCQB Market.

 

CLOSING
DATE:

 

The
parties shall endeavor to draft the Definitive Agreements and complete due diligence in an expeditious fashion. The Closing Date
will be on a day mutually determined by the parties in which all of the requirements necessary for this Transaction have been
completed and the parties sign the Definitive Agreements (“Closing Date”). In no event, however, shall the Closing
Date be later than May 15, 2019 unless extended by mutual agreement of the parties, or in order to complete necessary compliance
with all applicable regulatory requirements.

 

TERMINATION
PROVISIONS AND BREAK-UP FEE:

 

This
Letter of Intent is intended to legally bind the parties. It may, however, be terminated by either party upon 30 days prior written
notice to the other party, if the parties mutually agree to terminate, if either party becomes aware that the other party has
materially breached any representations or covenants in this Agreement, or is unwilling or unable to provide or fulfill any of
the conditions to Closing, more fully described herein (“Termination for Cause”). However, if any party terminates
this Letter of Intent in bad faith, other than as “Termination for Cause” the terminating party shall be subject to
the obligation to pay a $2,000,000 break-up fee (“Breakup Fee”) to the non-terminating party unless the terminating
party rescinds such termination within 5 business days following written demand therefore by the non-terminating party or within
5 business days following the effective date for the notice of termination. Either party may pay the Breakup Fee through the issuance
of its common or preferred stock with an equivalent market value.

 

EXCLUSIVITY:

 

GTII
and the Seller agree that during the period beginning on the date of mutual execution of this Letter of Intent until the later
of April 30, 2019 or the Closing Date (with such date being subject to a mutually agreed upon execution timetable for the Definitive
Agreements (the “Exclusivity Period”), GTII and Seller and/or their affiliates or representatives will not, directly
or indirectly, solicit from any third party any offers competitive with this Letter of Intent. GTII may, prior to the Closing,
issue shares of its Common Stock for any valid purpose or consideration, so long as GTII and the Pro Forma Company retain sufficient
authorized shares of Common Stock to pay the Seller Equity calculated as of the Closing. GTII will immediately notify Seller and
Seller will immediately notify GTII if either receive any solicitation or offers competitive with this agreement. As of the date
of mutual execution of this Letter of Intent and during the Exclusivity Period, GTII and Seller will suspend any currently existing
discussion with all parties other than each other regarding the Transaction.

 

During
the Exclusivity Period, the parties shall use their good faith efforts to finalize and execute the Definitive Agreements, prior
to May 15, 2019, and undertake all related activities geared towards the Closing of the Transaction.

 

    	5

    	 

    

 

MANAGEMENT
OF THE PRO FORMA COMPANY:

 

Upon
the Closing, all current Officers and Directors of GTII and its subsidiaries shall resign except in the event that David Reichmann
is the GTII designee pursuant to (i) below. In any event on or before the Closing all of the outstanding Series A Preferred stock
of GTII will either be transferred to a designee of Seller or redeemed and cancelled. At Closing, the Board of Directors of the
Pro Forma Company shall consist of 3 members:

 

(i)
1 named by the GTII Board of Directors prior to the Closing and

 

(ii)
2 named by Seller and appointed by the GTII Board of Directors prior to the Closing subject to the consummation of the Transaction.
Such designation of directors shall not be an ongoing nomination right.

 

And:

 

(1)
The Board of Directors of the Pro Forma Company shall also be comprised of at least two (2) independent members to be selected
by the BOD of the Pro Forma Company

 

Control
Vote/Shareholder Approval:

 

As
part of the Definitive Agreements, GTII and the holders of the GTII Equity, will enter into a shareholder voting agreement with
Seller committing to deliver approximately 70% of the required number of shares to vote to approve the Transaction and submit
the appropriate filings with the SEC.

 

External
Advisor Management Agreement:

 

An
external advisor (the “External Advisor”), which will be owned a 100% by FCMA, is to be formed to provide Asset Investment
Advisory, Asset Management, Property Management, Acquisitions, Dispositions, Land Development, Entitlement Work, and Construction
Services to the Pro Forma Company and its internal management, and GTII’s CEO will enter into a Management Agreement with
the Pro Forma Company, to be agreed upon prior to the Closing of the Transaction.

 

INDEMNIFICATIONS:

 

GTII
agrees to indemnify, defend and hold harmless Seller, its officers, directors, stockholders, lenders and affiliates, and, Seller
agrees to indemnify, defend and hold harmless GTII, its officers, directors, stockholders, lenders and affiliates from any third
party claims by or liabilities to such third parties, including any actual and reasonable legal or other expenses incurred in
connection with the defense of such claims to the extent that such claims are the direct result from any breach or failure of
the parties in connection with the Letter of Intent and the Transaction; provided however, that any such breach and failure shall
be subject a notice and cure period of not less than ten (10) business days.

 

REPRESENTATIONS
AND WARRANTIES:

 

The
Definitive Agreements will contain all customary representations and warranties of the parties.

 

CONDITIONS
OF CLOSING:

 

Closing
the Transaction is subject to the following:

 

(i)
Completion by each party and its advisor (to each party’s satisfaction) of all business, tax, accounting, legal and other
due diligence reviews (including GTII’s financial statements after 12/31/18 that have been publicly filed, and Seller’s
audits and financial statements ) of the other party (in parallel with the preparation and drafting of the Definitive Agreements);

 

    	6

    	 

    

 

(ii)
INTENTIONALLY OMITTED

 

(iii)
GTII or Seller shall not have incurred any material obligations (other than in the normal course of business and/or in connection
with the Transaction) following the execution of this Letter of Intent that will survive the Closing that would prevent the parties
from realizing the benefits of the Transaction as described in the Letter of Intent and/or the Definitive Agreement(s);

 

(iv)
Preparation by Seller’s counsel of all non-SEC corporate and governance documents that may be reasonably required by Seller
to support the Transaction, including a revised charter, bylaw changes or other amendments that may be necessary;

 

(v)
The negotiation, preparation and execution of the Definitive Agreements memorializing the terms hereof;

 

(vi)
There shall be no material adverse change in GTII’s or Seller’s business or financial condition and no material adverse
change to the Assets (other than that which has been previously disclosed in GTII’s or Seller’s filings with the SEC)
that would prevent the parties from realizing the benefits of the Transaction as described in the Definitive Agreement(s);

 

(vii)
The representations and warranties of both parties being true and correct at signing as of the Closing Date;

 

(viii)
Receipt of all governmental, regulatory and third-party requisite approvals and consents, including the completion of any required
SEC process, and the required approval of each party’s stockholders as necessary, in a form reasonably satisfactory to the
other party (consideration to be given to a joint proxy statement if Seller stockholder approval is required);

 

(ix)
The terms and conditions of the Transaction must be approved by the Board of Directors of GTII and Seller;

 

(x)
Both parties shall have procured appropriate valuations through any of the following: Fairness Opinion, Third Party Appraisals
or Due Diligence Feasibility and Analysis Write Up prepared by experienced industry veteran or Company and PCAOB audited financial
statements suitable for inclusion in any proxy statements or other SEC filings in connection with the Transaction and with respect
to GTII submission of a PCAOB audit is deemed sufficient for this purpose; and

 

(xi)
Such additional terms as are consistent with the above as agreed between the parties.

 

CONFIRMATORY
DUE DILIGENCE:

 

Both
parties will use their diligent best efforts to assist and cooperate fully with each other, and their auditors and advisors to
support due diligence efforts and to satisfy the conditions of Closing. Both parties may conduct due diligence, including conversations
with management of Seller and GTII.

 

Each
party and its employees, officers, directors, advisors, legal counsel, accountants, agents and representatives (the “Representatives”)
will extend their full cooperation to either party’s Representatives in connection with such investigation and will provide
either party’s Representatives with full access during normal business hours to the other party’s books and records,
facilities, accountants, management, officers, directors and key employees for the purpose of conducting such due diligence investigation.

 

CONFIDENTIALITY
AND PUBLICITY AND EXPENSES:

 

The
parties to this Letter of Intent acknowledge and agree that the existence and terms of this Letter of Intent and the Transaction
are confidential and further agree that they and their respective Representatives, including without limitation, shareholders,
directors, officers, employees or advisors, shall not disclose to the public or to any third party the existence or terms of this
Letter of Intent or the Transaction other than with the express prior written consent of the other party, except as may be required
by applicable law, rule or regulation, or at the request of any governmental, judicial, regulatory or supervisory authority having
jurisdiction over a party or any of its representatives, control persons or affiliates (including, without limitation, the rules
or regulations of the SEC or FINRA), or as may be required to defend any action brought against such party in connection with
the Transaction. If a party is so required to make such a disclosure, it must first provide to the other party the content of
the proposed disclosure, the reasons that the disclosure is required, and the time and place that the disclosure will be made.
In such event, the parties will work together to draft a disclosure which is acceptable to both parties. The parties acknowledge
and agree that the provisions of the Confidentiality Agreement dated February 15, 2019 between the parties remain in full force
and effect.

 

    	7

    	 

    

 

EXPENSES:

 

All
expenses incurred for the Transaction by GTII or Seller separately, inclusive of the drafting of the Definitive Agreements, prior
to the Closing Date will be borne and paid by GTII and Seller separately, however, any and all fees, expenses and costs incurred
after the Closing Date shall be assumed and paid by the Pro Forma Company.

 

NOTICES:

 

All
notice in connection with this Letter of Intent shall be made to the parties via email, facsimile or Express Mail at the addresses
above and below.

 

If
you are in agreement with the terms of this Letter of Intent agreement, please sign in the space provided below and return a
signed copy to Mark Richardson at markr@richardson-law.com, Tom Coleman, and the undersigned at:david@gtii-us.com by
the close of business on April 12th, 2019. Upon receipt of a signed copy of this Letter of Intent, we will proceed
with our plans for Closing the Transaction in a timely manner.

 

Sincerely,

David
Reichman, CEO

Global
Tech Industries Group, Inc.

 

	 	/s/
    David Reichman	 
	 	Agreed
    to and Accepted for Buyer	 
	 	 	 
	 	/s/
    Suneet Singal	 
	By:	Suneet
    Singal,	 
	 	Chief
    Executive Officer	 
	 	 	 
	 	/s/
    Chuck Tralka	 
	 	Agreed
    to Accepted for GCA Equity Partners	 
	By:	Chuck
    Tralka	 
	 	Member,
    Authorized Signer	 

 

    	8

    	 

    

 

EXHIBIT
B

 

SELLER
ASSETS

 

	Asset Name	 	Asset Type 		Residual Value Asset Value	 	 	Debt	 	 	Equity	 
	Valley Center	 	Single/Multi Family Residential & Commercial Lots	 	 	112,000,000	 	 	 	12,850,000	 	 	 	99,150,000	 
	Massey Oaks	 	Single/Multi Family Residential Lots	 	 	177,870,568	 	 	 	 	 	 	 	177,870,568	 
	Bradshaw	 	Single Family Residential	 	 	26,917,718	 	 	 	 	 	 	 	26,917,718	 
	Coastal Palms	 	Senior Living	 	 	14,681,045	 	 	 	 	 	 	 	14,681,045	 
	Hedge	 	Single Family Residential	 	 	3,403,371	 	 	 	 	 	 	 	3,403,371	 
	ICF Green	 	High End Single Family Residential	 	 	1,921,098	 	 	 	 	 	 	 	1,921,098	 
	Loki Court	 	Condos	 	 	17,156,921	 	 	 	 	 	 	 	17,156,921	 
	Portofino	 	Single Family Residential	 	 	1,795,034	 	 	 	 	 	 	 	1,795,034	 
	Rosenberg	 	Single Family Residential Lots	 	 	24,366,653	 	 	 	 	 	 	 	24,366,653	 
	Woodland 88	 	Single Family Residential	 	 	50,471,613	 	 	 	 	 	 	 	50,471,613	 
	Yanni Palms	 	Single Family Residential Lots	 	 	1,647,855	 	 	 	 	 	 	 	1,647,855	 

 

    	9Exhibit

Exhibit 10.1
PERFORMANCE AWARD AGREEMENT
UNDER THE
TEXAS CAPITAL BANCSHARES, INC.
2015 LONG-TERM INCENTIVE PLAN

1.    Award of Performance Units. Pursuant to the Texas Capital Bancshares, Inc. 2015 Long-Term Incentive Plan (the “Plan”) of Texas Capital Bancshares, Inc., a Delaware corporation (the “Company”) and its Subsidiaries,

__                                             
(the “Participant”)

as an employee of the Company, has been granted an Award under the Plan for ________________________________ (___________) Restricted Stock Units (the “Time-Based Units”) and _______________________________________ (____________) Performance Units (the “Performance Units”, collectively, with the Time-Based Units, the “Awarded Units”), which may be converted into the number of whole shares of Common Stock (as determined under Section 4 below) equal to the number of vested Awarded Units (determined in accordance with Section 3 below), subject to the terms and conditions of the Plan and this Performance Award Agreement (this “Agreement”).  The Date of Grant of this Award is February 12, 2019.  The maximum number of shares of Common Stock that could be issued with respect to the Awarded Units is ________________________________ (__________).  Each Awarded Unit shall be a notional share of Common Stock, with the value of each Awarded Unit being equal to the Fair Market Value of a share of Common Stock at any time.

2.    Subject to Plan.  This Agreement is subject to the terms and conditions of the Plan, and the terms of the Plan shall control to the extent inconsistent with the provisions of this Agreement.  The capitalized terms used herein that are defined in the Plan shall have the same meanings assigned to them in the Plan, except as otherwise expressly provided herein.  This Agreement is subject to any rules promulgated pursuant to the Plan by the Board or the Committee and communicated to the Participant in writing.  

3.    Vesting; Forfeiture.  Awarded Units which have become vested pursuant to the terms of this Section 3 are collectively referred to herein as “Vested Units.” All other Awarded Units are collectively referred to herein as “Unvested Units.”  The Participant shall be eligible to receive shares of Common Stock with respect to the Vested Units in accordance with Section 4 below.

a.    Subject to the provisions of Section 5 and Section 30 below and except as otherwise provided in this Section 3, 

(i)    One hundred percent (100%) of the Time-Based Units will become vested on February 12, 2022, provided that the Participant is employed by (or if the Participant is a Contractor, Consultant or Outside Director, is providing services to) the Company or its Subsidiaries on such date.  

(ii)    The Performance Units will vest on the date the Committee determines whether the vesting conditions set forth on Exhibit A hereto have been achieved (which date shall be after the end of the Performance Period (as defined in Exhibit A) and no later than March 15, 2022).

b.    Except as otherwise provided by Section 3.c., Section 3.d. and Section 3.h. hereof, immediately upon the Participant’s Termination of Service for any reason whatsoever, the Participant shall be deemed to have forfeited all of the Participant’s Unvested Units.

c.    Notwithstanding the foregoing and except as otherwise provided in Section 5 below and regardless of whether the performance criteria set forth in Exhibit A have been achieved, in the event that a Change in Control occurs and on or after the date of the Change in Control, the Participant incurs a Termination 

of Service by the Company (or by its successor following the Change in Control) without Cause (as defined in Section 3.e. below) or by the Participant for Good Reason (as defined in Section 3.g. below), then 100% of the Unvested Units shall immediately become Vested Units upon such termination.

d.    Notwithstanding the foregoing, if the Participant’s employment with the Company or any of its Subsidiaries terminates by reason of the Participant’s death or Total and Permanent Disability, all Unvested Units shall immediately become Vested Units upon such termination (with Performance Units vesting at the target (100%) performance level).

e.    For purposes hereof, “Cause” shall have the meaning set forth in the Participant’s employment agreement with the Company.

f.    For purposes hereof, “Change in Control” shall have the meaning set forth in the Plan, provided that such event is a “change in control” within the meaning of Section 409A of the Code, and the regulations and other applicable guidance issued thereunder.

g.    For purposes hereof, “Good Reason” shall have the meaning set forth in the Participant’s employment agreement with the Company.

h.    Notwithstanding anything to the contrary contained herein and subject to Section 5, if at any time after the date the Participant reaches age 60 plus 10 years of service with the Company the Participant, the Participant, after providing the Company with three months written notice of his or her intent to retire, incurs a Termination of Service with the Board’s consent (other than a Termination of Service for Cause or without Good Reason), then, provided that the Company determines that the Participant continued to perform his or her duties during the three month notice period in accordance with the terms and conditions of the retirement transition plan provided to the Participant by the Company on or after the date the Participant provided notice of his or her intent to retire, the Unvested Units shall not be forfeited upon the Participant’s Termination of Service and instead, such Unvested Units shall continue to be subject to the vesting provisions set forth in Section 3.a. as if the Participant had remained employed by the Company (with shares of Common Stock being delivered pursuant to Section 4 on the original Vesting Dates).  The Participant acknowledges and agrees that once the Participant provides written notice to the Company of his or her intent to retire, the Participant shall no longer be eligible to receive any additional grants under the Plan. 

4.    Delivery of Common Stock.  The Vested Units shall be converted into the number of whole shares of Common Stock equal to the number of Vested Units and the Company shall electronically register such shares of Common Stock in the Participant’s name (or in the name of his or her estate or beneficiary) or deliver certificates for the such shares of Common Stock to the Participant in accordance with the following schedule:

a.    March 15, 2022; or

b.    If earlier, the date of the Participant’s Termination of Service without Cause or with Good Reason on or after a Change in Control.  

To the extent an Awarded Unit does not vest in accordance with the provisions of Section 3 hereof by March 15, 2022, such Awarded Unit shall be forfeited and no shares of Common Stock shall be delivered with respect to such forfeited Awarded Unit.  

5.    Forfeiture and Disgorgement.

a.    Notwithstanding any provisions in this Agreement to the contrary, in the event the Participant violates the provisions of Section 5.b. or the provisions of any agreement between the Company (or any of its Subsidiaries) that contains confidentiality, non-solicitation or other protective or restrictive covenant provisions, then:

(i)    the Awarded Units shall immediately cease to vest as of the date of such violation; 

(ii)    any shares of Common Stock that had not been registered (or delivered) with respect to Awarded Units shall be immediately forfeited and this Agreement (other than the provisions of this Section 5) will be terminated on the date of such violation; and

(iii)    any shares of Common Stock (less any taxes paid by the Participant on such shares of Common Stock) that had been delivered to the Participant (or registered in the Participant’s name) with respect to any Vested Units shall be immediately returned to the Company by the Participant.

The Company must deliver written notice of its intent to enforce the provisions of this Section 5.a. at least 15 days prior to the date it intends to enforce the terms of Sections 5.a.(i) and (ii).  Both the Company and the Participant agree that upon delivery of written notice under this Section 5.a., neither party will enter into any transaction that will affect the other party’s interests in the cash subject to dispute until the expiration of the 15-day notice period.

The provisions of this Section 5 (including, without limitation, the provisions of this Section 5.a. and the provisions of Section 5.b. below) only shall apply to the Awarded Units for the period beginning on the Date of Grant and ending on the earlier of (i) the one year (or, in the event the Awarded Units vest in accordance with Section 3.h. above, the four year) anniversary of the date the Awarded Units become vested in accordance with the provisions of Section 3 above (regardless of whether the Agreement terminates or expires prior to such date), or (ii) if a Change in Control occurs, the date of the Participant’s Termination of Service either by the Company without Cause or by the Participant with Good Reason.

b.    By execution of this Agreement, the Participant, either individually or as a principal, partner, stockholder, manager, agent, consultant, contractor, employee, lender, investor, volunteer or as a director or officer of any corporation or association, or in any other manner or capacity whatsoever, agrees to the following:

(i)    Confidential Information.  The Participant acknowledges that the Company would not provide the Participant with access to its Confidential Information or grant the Awarded Units but for the Participant’s covenants or promises contained in this Section 5.b.  For purposes of this Agreement, “Confidential Information” shall mean the Company’s (for purposes of this Section 5.b., the “Company” shall include both the Company and Texas Capital Bank, N.A.’s (“TCB”)) unique concepts, lending practices, sales presentations, marketing programs, marketing strategies, business practices, methods of operation, pricing information, cost information, trademarks, licenses, technical information, proprietary information, computer software programs, computer tapes and disks concerning its operations systems, customer lists, customer leads, customer loan and financial information, documents identifying past, present and future customers, customer profiles and preference data, hiring and training methods, investment policies, financial and other confidential, proprietary and/or trade secret information concerning the Company’s operations and expansion plans.  The Confidential Information includes, without limitation, information about the Company’s business, proprietary, and technical information that is not known to others and could have economic value to others if improperly disclosed.  Confidential Information also means any information the Company discloses to the Participant, either directly or indirectly, in writing, orally or by inspection of tangible objects, including, without limitation, information and technical data contained in the Company’s manuals, booklets, publications and materials, equipment of every kind and character, as well as documents, prototypes, samples, prospects, inventions, product ideas, know how, processes, plans (including, without limitation, marketing plans and strategies), specifications, designs, techniques, technology, formulas, software, improvements, forecasts, and research.  Confidential Information does not include any information that is available to the public or, upon reasonable investigation, is ascertainable in the public domain or information generally known outside of the Company.  The Participant’s obligations under this Section 5 regarding specific Confidential Information shall cease 

when that specific portion of the Confidential Information becomes publicly known, in its entirety and without combining portions of such information obtained separately.

(ii)    Access to and Agreement Not To Disclose Confidential Information.  During Participant’s Company employment, the Company agrees to provide the Participant with some or all of the Company’s Confidential Information to which the Participant has not had previous access or knowledge. By executing this Agreement, the Participant agrees that the Confidential Information constitutes valuable, special and unique assets of the Company, developed at the Company’s great expense, the unauthorized use or disclosure of which would cause irreparable harm to the Company.  The Participant understands and acknowledges that the Company is engaged in a specialized and competitive industry; that the Company relies heavily on information, data, programs, and processes it has developed and acquired; and that competitors can reap potential or real economic benefits from the possession of the Confidential Information that is otherwise not available to its competitors.  The Participant understands and acknowledges, therefore, that the protection of the Company’s Confidential Information constitutes the Company’s legitimate business interest.  The Participant acknowledges that the Confidential Information is the Company’s exclusive property, and the Participant will hold the Confidential Information in trust and solely for the Company’s benefit.  The Participant further acknowledges that the Confidential Information includes “trade secrets” under Texas law and, in addition to the other protections provided in this Agreement, all trade secrets will be accorded the protection and benefits under Texas law and any other applicable law.  The Participant waives any requirement that the Company submit proof of any trade secret’s economic value or post a bond or other security should the need arise. 

In exchange for the Company’s promise to provide the Participant with some or all of the Company’s Confidential Information to which the Participant has not previously had access or knowledge, the Participant agrees that he or she will not, either during the period of the Participant’s employment with the Company or at any time thereafter, use or rely upon for the Participant’s benefit or the benefit of another, or disclose, disseminate, or distribute to anyone, including, without limitation, any individual, person, firm, corporation, or other entity, or publish, or use for any purpose, any of the Confidential Information (whether acquired, learned, obtained, or developed by the Participant alone or in conjunction with others), except (A) as properly required in the ordinary course of the Company’s business or as the Company directs and authorizes; (B) as required by applicable law (if, to the extent reasonable and practicable, reasonable prior notice of such disclosure is given to the Company); or (C) to the extent such information is available to or known by the public (other than as a result of disclosure in violation of this Agreement).  The Participant agrees that he or she will take all reasonable measures to protect the secrecy of and avoid unauthorized disclosure and unauthorized use of the Confidential Information.  The Participant also agrees to notify the Company immediately in the event of any unauthorized use, reliance upon or disclosure of the Company’s Confidential Information of which the Participant is aware.

(iii)    Use of Confidential Information During Employment.  The Participant further agrees that in the course of his or her employment by the Company, the Participant will not remove from any office of the Company any documents, electronically stored information, or related items that contain Confidential Information, including, without limitation, computer discs, recordings, or other storage or archival systems or devices, including copies, except as may be required in the performance of the Participant’s duties as an employee of the Company.  The Participant also agrees that he or she will not place or save any Confidential Information on any computer or electronic storage system that is not the Company’s property, except to perform work for the Company.  All Confidential Information, and all memoranda, notes, records, drawings, documents, or other writings whatsoever made, compiled, acquired, or received by the Participant at any time during his or her employment, including during the term of this Agreement, arising out of, in connection with, or related to any activity or business of the Company, including, without limitation, the customers, vendors, third parties, or others with whom the Company has a business relationship, the arrangements of the Company with such 

parties, and the pricing and expansion policies and strategy of the Company, are, and shall continue to be, the Company’s sole and exclusive property.

(iv)    Protective Covenants.  The Participant agrees that to protect the Company’s Confidential Information, and in consideration for the equity compensation in this Agreement, it is necessary to enter into the following protective covenants, which are ancillary to the enforceable promises between the Company and the Participant in the other Agreement Sections.  During the Participant’s employment with the Company, and for a one-year period (or, in the event the Awarded Units vest in accordance with Section 3.h. above, the four-year period) after the date the Participant’s employment is terminated by the Company for any reason, or if the Participant resigns for any reason, the Participant shall not, without the Company’s prior written consent, directly or indirectly: (A) compete for or solicit business for or on behalf of any person or business entity operating a state or national bank or company providing similar services with a place of business in the State of Texas, and any other state in which the Company does business and for which Participant had responsibility or performed services or about which Participant received Confidential Information; (B) own, operate, participate in, undertake any employment with, or have any interest in any entity with a place of business in the State of Texas related to the operation of a state or national bank or company providing similar services, except that the Participant may own publicly traded stock for investment purposes only in any company in which the Participant owns less than 5% of the voting equity; or (C) use or rely upon in any competition, solicitation, or marketing effort any Confidential Information.

The Participant also acknowledges that the geographic boundaries, scope of prohibited activities, and the duration of the provisions in the Protective Covenants are reasonable and are no broader than are necessary to protect the Company’s legitimate business interests.  The Protective Covenants shall survive the termination of the Participant’s employment and can be revoked or modified only by a writing signed by the parties that specifically states an intent to revoke or modify this provision.  The Participant acknowledges that the Company would not provide him or her with access to its Confidential Information but for his or her covenants or promises contained in this Section 5.b.  The Participant further agrees that during the protective covenant term, he or she shall immediately notify the Company in writing of any employment, work, or business he or she undertakes with or on behalf of any person (including himself or herself) or entity.

(v)    No Solicitation of Employees/Customers.  The Participant agrees that the no-employee solicitation covenant in this Section 5.b.(v) constitutes a reasonable and appropriate means, consistent with the best interests of both the Participant and the Company, to protect the Company’s interests in providing valuable equity compensation to the Participant and in preventing the loss or disclosure of the Company’s Confidential Information.  As an inducement for the Company’s agreement to provide the Participant the equity compensation in this Agreement, and to provide the Participant with the Company’s Confidential Information, the Participant agrees that during the Participant’s employment, and for a period of one (1) year following the termination or resignation of the Participant’s employment, for whatever reason, the Participant will not, alone or in combination with any individual, partner(s), company, corporation, or other entity or business with which he is in any way affiliated, including, without limitation, any partner, limited partner, member, director, officer, shareholder, employee, or agent of any such entity, recruit, solicit, request, induce or attempt to influence, directly or indirectly, any employee of the Company to resign or terminate employment with the Company.  The Participant agrees that for a period of one year (or, in the event the Awarded Units vest in accordance with Section 3.h. above, four years) following the termination or resignation of his employment, for whatever reason, whether involuntary or voluntary, he shall not, directly or indirectly, as an owner, stockholder, director, employee, partner, agent, broker, consultant or other participant solicit a customer or prospective customer, or accept any business from a customer or prospective customer with whom he or she has done business or with whom he or she has had contact during the last 12 months of the Participant’s employment with the Company. 

(vi)    Definition Related to No-Solicitation of Employee Provision.  In Section 5.b.(v), “Employee” means any employee on the Company’s payroll during the Protective Covenant time period specified in Section 5.b.(v). 

(vii)    Return of Documents.  In the event of the Participant’s termination or resignation of his or her employment with the Company for any reason, the Participant will deliver to the Company all non-personal documents and data of any nature, and in whatever medium, concerning the Participant’s employment with the Company or any of its Subsidiaries.  The Participant agrees that he or she will not take with him or her any of the Company’s property, documents, or data of any description or any reproduction thereof, including summaries or notes regarding same, or any documents containing or relating to any of the Company’s Confidential Information.

(viii)    Injunctive Relief.  The Participant acknowledges and agrees that the Participant’s obligations, covenants, and agreements in Sections 5.b.(i)-(vii) concern special, unique and extraordinary matters and that a violation of any of the terms of these agreements, covenants or obligations will cause the Company irreparable injury for which adequate remedies at law are not available.  Therefore, the Participant agrees that the Company, in addition to any amounts that the Company is entitled to pursuant to Section 5.a. above, will be entitled to an injunction, restraining order, or all other equitable relief as a court of competent jurisdiction may deem necessary or appropriate to restrain the Participant from committing any violation of the agreements, covenants or obligations referred to in Sections 5.b.(i)-(vii).

(ix)    Disclosures to Courts, Governmental Agencies or Administrative or Legislative Bodies. Notwithstanding the foregoing or any other agreement regarding confidentiality with the Company, the Participant may disclose Confidential Information when required to do so by a court of competent jurisdiction, by any governmental agency having authority over the Participant or the business of the Company or by any administrative body or legislative body (including a committee thereof) with jurisdiction to order the Participant to divulge, disclose or make accessible such information.  Nothing in this Agreement is intended to interfere with the Participant’s right to (i) report possible violations of state or federal law or regulation to any governmental agency or entity, (ii) make other disclosures that are protected under the whistleblower provisions of state or federal law or regulation, (iii) file a claim or charge with any government agency or entity, or (iv) testify, assist, or participate in an investigation, hearing, or proceeding conducted by any government or law enforcement agency, entity or court.

(x)    Defend Trade Secrets Act of 2016.  The Participant is hereby notified in accordance with the Defend Trade Secrets Act of 2016 that the Participant will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding.  The Participant is further notified that if the Participant files a lawsuit for retaliation against the Company for reporting a suspected violation of law, the Participant may disclose the Company’s trade secrets to the Participant’s attorney and use the trade secret information in the court proceeding if the Participant: (x) files any document containing the trade secret under seal; and (y) does not disclose the trade secret, except pursuant to court order.  

6.    Who May Receive Common Stock with Respect to Vested Units.  During the lifetime of the Participant, the Common Stock received upon conversion of the Vested Units may only be received by the Participant or his or her legal representative.  If the Participant dies prior to the date his or her Awarded Units are converted into shares of Common Stock as described in Section 4 above, the Common Stock relating to such converted Awarded Units may be received by any individual who is entitled to receive the property of the Participant pursuant to the applicable laws of descent and distribution.

7.    Common Stock Subject Ownership Guidelines.  The Participant acknowledges, understands and agrees that any Common Stock delivered to the Participant (or registered in the Participant’s name) pursuant to this Agreement shall be subject to the Common Stock ownership guidelines as adopted by the Committee and in effect from time to time, and that the Participant may be required to hold such Common Stock until the Participant has met the requirements of such ownership guidelines.  The Participant further acknowledges, understands and agrees that the Committee retains the right to modify the Company’s Common Stock ownership guidelines at any time. 

8.    Rights as Stockholder.  The Participant will have no rights as a stockholder with respect to the Awarded Units until the issuance of a certificate or certificates to the Participant or the registration of such shares of Common Stock in the Participant’s name.  The Awarded Units shall be subject to the terms and conditions of this Agreement.

9.    No Fractional Shares.  Awarded Units may be converted only with respect to full shares, and no fractional share of Common Stock shall be issued.

10.    Non-Assignability.  The Awarded Units are not assignable or transferable by the Participant except by will or by the laws of descent and distribution.

11.    The Participant’s Acknowledgments.  The Participant acknowledges receipt of a copy of the Plan, which is annexed hereto, and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts the Awarded Units subject to all the terms and provisions thereof. The Participant hereby agrees to accept as binding, conclusive, and final all decisions or interpretations of the Committee or the Board, as appropriate, upon any questions arising under the Plan or this Agreement.

12.    Adjustment of Number of Awarded Units and Related Matters.  The number of shares of Common Stock covered by the Awarded Units shall be subject to adjustment in accordance with Articles 11-13 of the Plan.

13.    Execution of Documents.  The Participant, by his or her electronic execution of this Agreement, hereby agrees to execute any documents requested by the Company in connection with the payment of any amount in connection with the Awarded Units pursuant to this Agreement.

14.    Remedies.  Except as otherwise provided in Section 5 in this Agreement, each of the parties to this Agreement will be entitled to enforce its rights under this Agreement specifically, to recover damages and costs (including reasonable attorneys’ fees) caused by any breach of any provision of this Agreement, and to exercise all other rights existing in the party’s favor.  The parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach of the provisions of this Agreement and that any party in its, his or her sole discretion may apply to any court of law or equity of competent jurisdiction (without posting any bond or deposit) for specific performance and/or other injunctive relief in order to enforce or prevent any violations of the provisions of this Agreement. No waiver of any breach of this Agreement shall be construed to be a waiver as to succeeding breaches and no waiver of any provisions of this Agreement shall constitute a waiver of any other provision of this Agreement.  The remedies for any violation of Section 5 above are limited to the forfeiture, disgorgement, and injunction remedies specified in Sections 5.a. and b.(viii). and are subject to the time-limitations set forth in Section 5.a. above.  The remedies described in this Section 14 do not apply to Section 5.

15.    The Participant’s Representations.  Notwithstanding any of the provisions hereof, the Participant hereby agrees that the Company will not be obligated to register any shares of Common Stock in the Participant’s name or issue any shares of Common Stock to the Participant hereunder, if the issuance of such shares shall constitute a violation by the Participant or the Company of any provision of any law or regulation of any governmental authority.  Any determination by the Company under this Section 15 shall be final, binding, and conclusive.  The obligations of the Company and the rights of the Participant are subject to all applicable laws, rules and regulations.

16.    Investment Representation.  Unless the shares of Common Stock are issued to the Participant in a transaction registered under applicable federal and state securities laws, by his execution hereof, the Participant 

represents and warrants to the Company that all Common Stock which may be acquired hereunder will be acquired by the Participant for investment purposes for his own account and not with any intent for resale or distribution in violation of federal or states securities laws, all certificates issued with respect to the Common Stock shall bear an appropriate restrictive investment legend and shall be held indefinitely, unless they are subsequently registered under the applicable federal and state securities laws or the Participant obtains an opinion of counsel, in form and substance satisfactory to the Company and its counsel, that such registration is not required.

17.    Law Governing.  This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Delaware (excluding any conflict of laws rule or principle of Delaware law that might refer the governance, construction, or interpretation of this agreement to the laws of another state).  The Participant’s sole remedy for any Claim shall be against the Company and no Participant shall have any claim or right of any nature against any Subsidiary of the Company or any stockholder or existing or former director, officer, or Employee of the Company or any Subsidiary of the Company.

18.    No Right to Continue Service or Employment.  Nothing herein shall be construed to confer upon the Participant the right to continue in the employ or to provide services to the Company or any Subsidiary, whether as an Employee, Contractor, consultant or Outside Director, or interfere with or restrict in any way the right of the Company or any Subsidiary to discharge the Participant as an Employee, Contractor, consultant or Outside Director at any time.

19.    Legal Construction.  In the event that any one or more of the terms, provisions, or agreements that are contained in this Agreement shall be held by a court of competent jurisdiction to be invalid, illegal, or unenforceable in any respect for any reason, the invalid, illegal, or unenforceable term, provision, or agreement shall not affect any other term, provision, or agreement that is contained in this Agreement and this Agreement shall be construed in all respects as if the invalid, illegal, or unenforceable term, provision, or agreement had never been contained herein.

20.    Covenants and Agreements as Independent Agreements.  Each of the covenants and agreements set forth in this Agreement shall be construed as a covenant and agreement independent of any other provision of this Agreement.  The existence of any claim or cause of action of the Participant against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the covenants and agreements that are set forth in this Agreement.

21.    Entire Agreement.  This Agreement, together with the Plan, supersede any and all other prior understandings and agreements, either oral or in writing, between the parties with respect to the subject matter in this Agreement and constitute the only agreements between the parties with respect to the subject matter in this Agreement.  Except for the Employment Agreement between the Participant and the Company (if any), all prior negotiations and agreements between the parties with respect to the subject matter in this Agreement are merged into this Agreement.  Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party or by anyone acting on behalf of any party, which are not embodied in this Agreement or the Plan and that any agreement, statement or promise that is not contained in this Agreement or the Plan shall not be valid or binding or of any force or effect.  Except for the specific representations expressly made by the Company in this Agreement, the Participant specifically disclaims that the Participant is relying upon or has relied upon any communications, promises, statements, inducements, or representation(s) that may have been made, oral or written, regarding the subject matter of this Agreement.  The parties represent that they are relying solely and only on their own judgment in entering into this Agreement. 

22.    Counterparts.  This Agreement may be executed in separate counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

23.    Parties Bound.  The terms, provisions, and agreements that are contained in this Agreement shall apply to, be binding upon, and inure to the benefit of the parties and their respective heirs, executors, administrators, legal representatives, and permitted successors and assigns, subject to the limitation on assignment expressly set forth herein. 

24.    Modification.  No change or modification of this Agreement shall be valid or binding upon the parties unless the change or modification is in writing and signed by the parties (electronically or otherwise); provided, however, that the Company may change or modify this Agreement without the Participant’s consent or signature if the Company determines, in its sole discretion, that such change or modification is necessary for purposes of compliance with or exemption from the requirements of Section 409A of the Code or any regulations or other guidance issued thereunder.  

25.    Headings.  The headings that are used in this Agreement are used for reference and convenience purposes only and do not constitute substantive matters to be considered in construing the terms and provisions of this Agreement.

26.    Gender and Number.  Words of any gender used in this Agreement shall be held and construed to include any other gender, and words in the singular number shall be held to include the plural, and vice versa, unless the context requires otherwise.

27.    Notice.  Any notice required or permitted to be delivered hereunder shall be deemed to be delivered only when actually received by the Company or by the Participant, as the case may be, at the addresses set forth below, or at such other addresses as they have theretofore specified by written notice delivered in accordance herewith:

a.    Notice to the Company shall be addressed and delivered as follows:

Texas Capital Bancshares, Inc.
2000 McKinney Avenue, Suite 700
Dallas, Texas 75201 
Attn:  Human Resources
Email: HR@texascapitalbank.com

b.    Notice to the Participant shall be addressed and delivered to the most recent address in the Company’s records.

28.    Clawback.  The Participant acknowledges, understands and agrees, with respect to any shares of Common Stock delivered to the Participant (or registered in the Participant’s name) pursuant to this Agreement, that such shares of Common Stock shall be subject to recovery by the Company, and the Participant shall be required to repay such compensation or shares of Common Stock, in accordance with the Company’s Claw-Back Policy, as in effect from time to time.  The Participant further acknowledges, understands, and agrees that the Board retains the right to modify the Company’s Claw-Back Policy at any time.

29.    Tax Requirements.  The Participant is hereby advised to consult immediately with his or her own tax advisor regarding the tax consequences of this Agreement, including, without limitation, any possible tax consequences of this Agreement in connection with Section 409A of the Code.  The Company, or if applicable, any Subsidiary (for purposes of this Section 29, the term “Company” shall be deemed to include any applicable Subsidiary) has the authority and the right to deduct or withhold, or require the Participant to remit to the employer, an amount sufficient to satisfy federal, state, and local taxes (including the Participant’s FICA obligation) required by law to be withheld with respect to any taxable event arising as a result of the vesting or conversion of the RSUs.  Unless otherwise determined by the Committee at the time the Award is granted or thereafter, the Company shall satisfy any such withholding requirement by withholding the number of Awarded Shares having a Fair Market Value on the date of withholding equal to the amount required to be withheld for tax purposes.
 
30.    Section 409A.

a.    To the extent (i) any shares of Common Stock to which the Participant becomes entitled under this Agreement, or any agreement or plan referenced herein, in connection with the Participant's termination of employment with the Company constitutes deferred compensation subject to Section 409A of the Code; 

(ii) the Participant is deemed at the time of his separation from service to be a “specified employee” under Section 409A of the Code; and (iii) at the time of the Participant’s separation from service the Company is publicly traded (as defined in Section 409A of the Code), then such shares of Common Stock (other than any delivery of Common Stock permitted by Section 409A of the Code to be paid or delivered within six months of the Participant’s separation from service) shall not be made until the earlier of (x) the first day of the seventh month following the Participant’s separation from service or (y) the date of the Participant’s death following such separation from service.  Upon the expiration of the applicable deferral period, any shares of Common Stock which would have otherwise been made during that period (whether in a single sum or in installments) in the absence of this Section 30 (together with, as applicable, accrued interest thereon) shall be delivered to the Participant or the Participant's beneficiary in one lump sum.

b.    A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation from service” (within the meaning of Section 409A of the Code).

c.    It is intended that this Agreement comply with the provisions of Section 409A of the Code so as to not subject the Participant to the payment of additional interest and taxes under Section 409A of the Code, and in furtherance of this intent, this Agreement shall be interpreted, operated and administered in a manner consistent with these intentions.

EXHIBIT A

The Performance Units (50% of all Awarded Units) shall vest in accordance with the following schedule (25% based on Average EPS Growth, 25% Average EPS Growth measured against Peer Group, 25% Average ROE % measured against the Three Year Plan, and 25% Average ROE % measured against Peer Group)

		
	1.
	For purposes of this Exhibit A and the Agreement, unless the context requires otherwise, the following terms shall have the meanings indicated:

		
	a.
	“Average ROE %” shall mean a company’s average reported return on equity for each year during the Performance Period, divided by three (not determined on an aggregate three year basis).  Average ROE % of a component company in the Peer Group and of the Company shall be adjusted to take into account stock splits, reverse stock splits, and special dividends that occur during the Performance Period.  

		
	b.
	“Average EPS Growth” shall mean a company’s average annual growth in earnings per share for the Performance Period, determined by taking the average of each individual year’s annual growth in earnings per share (measured by taking the average of each individual year’s earnings per share growth divided by three; not determined on an aggregate three-year basis) as determined by the Committee.  Average EPS Growth of a component company in the Peer Group and of the Company shall be adjusted to take into account stock splits, reverse stock splits, and special dividends that occur during the Performance Period.  

		
	c.
	“Performance Period” shall mean the period commencing on and including January 1, 2019 and ending on December 31, 2021.

		
	d.
	“Peer Group” shall be comprised of the following companies: 

	
		
	BOK Financial Corporation
	Cullen Frost Bankers, Inc.

	SVB Financial Group
	Signature Bank

	F.N.B. Corporation
	Associated Banc Corp

	IBERIABANK Corporation
	Wintrust Financial Corporation

	TCF Financial Corporation
	PacWest Bancorp

	Prosperity Bancshares, Inc.
	Pinnacle Financial Partners, Inc.

	MB Financial, Inc.
	Western Alliance Bancorporation

	First Midwest Bancorp, Inc.
	Trustmark Corporation

Notwithstanding the foregoing, the Peer Group shall be subject to the following adjustments:

		
	(i)
	If during the Performance Period two component companies of the  Peer Group merge or otherwise combine into a single entity, the surviving entity shall remain a component company of the Peer Group and the non-surviving entity shall be removed from the Peer Group, provided that the surviving entity continues to meet the criteria for inclusion in the Peer Group; if the surviving entity no longer meets the criteria for inclusion in the Peer Group, the surviving entity will be removed from the Peer Group for all periods after such merger or combination.

		
	(ii)
	If during the applicable Performance Period a component company of the Peer Group merges into or otherwise combines with an entity that is not a component company of the Peer Group, such component company shall be removed from the Peer Group for all periods after such merger or combination.

		
	(iii)
	If during the applicable Performance Period a component company of the Peer Group ceases to be a public company by becoming a private company through the “going dark” process, such component company shall be removed from the Peer Group for all periods after the component company ceases to be a public company.

		
	(iv)
	If during the applicable Performance Period a component company of the Peer Group files a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code or liquidation under Chapter 7 of the U.S. Bankruptcy Code, such component company shall be removed from the Peer Group for all periods after such filing.

		
	e.
	“Three Year Plan” means the three year plan approved by the Board in January 2019.

		
	2.
	Subject to paragraph 6 below, upon the achievement of Average EPS Growth for the Performance Period, as determined by the Committee, the percentage of 25% of the Performance Units that shall vest shall be as follows:

	
		
	Average EPS Growth  
	% Vested and Payout

	[x]%
	50%

	[x]%
	75%

	[x]%
	100%

	[x]%
	125%

	[x]%
	150%

		
	3.
	Subject to paragraph 6 below, upon the achievement of Average EPS Growth measured against Average EPS Growth for the Peer Group during the Performance Period, as determined by the Committee, the percentage of 25% of the Performance Units that shall vest based upon the Company’s ranking within its Peer Group shall be as follows:

	
		
	Rank within Peer Group 
Based on Average EPS Growth
	% Vested and Payout

	[x]
	0%

	[x]
	50%

	[x]
	100%

	[x]
	125%

	[x]
	150%

		
	4.
	Subject to paragraph 6 below, upon achievement of an Average ROE % measured against the Three Year Plan, as determined by the Committee, the percentage of 25% of the Performance Units that vest shall be as follows:

	
		
	Average ROE %
Against Three Year Plan
	% Vested

	[x]%
	50%

	[x]%
	75%

	[x]%
	100%

	[x]%
	125%

	[x]%
	150%

		
	5.
	Subject to paragraph 6 below, upon achievement of Average ROE % performance as measured against the Peer Group for the Performance Period, the percentage of 25% of the Performance Units that vest based on the Company’s ranking within its Peer Group shall be as follows:

	
		
	Rank within Peer Group 
Based on Average ROE%
	% Vested

	[x]
	0%

	[x]
	50%

	[x]
	100%

	[x]
	125%

	[x]
	150%

		
	6.
	Achievement of the performance goals set forth in paragraphs 2, 3, 4 and 5 of this Exhibit A shall be determined by the Committee, in its sole discretion, and shall be subject to the following terms and conditions:

		
	a.
	Payouts between performance levels shall be linear.

		
	b.
	All performance metrics assume that no capital raises occur during the Performance Period.  If a capital raise occurs during the Performance Period, performance shall be adjusted to exclude the effects of the capital raise.

		
	c.
	The Committee will review potential adjustments to achievement of the performance metrics based on Federal Funds Rate changes or any other material changes and/or impacts, as determined by the Committee in its sole discretion.

		
	d.
	Performance goals only shall be considered achieved if the Committee determines, in its sole discretion, that the following four goals have been met, in addition to the Average EPS Growth and Average ROE % goals set forth in paragraphs 2, 3, 4 and 5 of this Exhibit A:

		
	(i)
	Asset quality:  The Company’s asset quality and credit controls are at a level of comparable high performing banks’ asset quality and credit controls;

		
	(ii)
	Tangible Capital Ratio:  The Company’s tangible capital ratio is at a level that the Committee determines, in its sole discretion, is at a level for solidly capitalized banks;

		
	(iii)
	Efficiency Ratio:  The Company’s guidepost efficiency ratio is at 60% or better (excluding from the calculation of the efficiency ratio, the expense reflected in non-interest expense related to valuation of foreclosed real estate, provided that such expenses are included as credit-related costs in determination of ROE above); and  

		
	(iv)
	Deposit Growth:  At least 100% of the traditional loans held by the Company for investment are supported by core deposits.

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