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                                                                    EXHIBIT 10.1

                                                                  EXECUTION COPY

                         EXECUTIVE EMPLOYMENT AGREEMENT

      This Executive Employment Agreement (this "Agreement"), effective on the
date hereof, is entered into in Dallas, Texas, by and between Texas Capital
Bancshares, Inc., a Texas corporation, with its principal place of business
located at 2100 McKinney Avenue, Suite 900, Dallas, Texas, 75201 ("Employer"),
and Joseph M. Grant ("Executive").

      In consideration of the mutual covenants set forth herein, Employer and
Executive, intending to be legally bound, hereby agree as follows:

1.    Employment Relationship. Employer hereby employs Executive, and Executive
      hereby accepts such employment, upon the terms and conditions set forth in
      this Agreement. Such employment relationship shall continue for the stated
      term of this Agreement, as described in Section 8 hereof, unless earlier
      terminated pursuant to Section 5 hereof.

2.    Position and Responsibilities of Executive. Executive shall be employed as
      Chairman and Chief Executive Officer with job responsibilities related
      thereto, and such job responsibilities may be expanded at the sole
      discretion of the Board of Directors of Employer ("Board"). Executive
      shall devote such time, skill and attention to the business of Employer as
      shall be required for the efficient management thereof, and shall manage
      and supervise such business, and shall devote his full time best efforts
      to the faithful performance of his duties on behalf of Employer, provided,
      however, Executive may engage in appropriate civic, charitable or
      religious activities and devote a reasonable amount of time to private
      investments or boards or other activities provided that such activities do
      not interfere or conflict with the Executive's responsibilities to
      Employer and are not likely to be contrary to Employer's interests.
      Executive shall also perform such other duties, and may have job
      responsibilities and titles modified from time to time as may be requested
      by the Board, provided such duties are generally consistent with the level
      of the Executive's current duties. Executive's duties shall be performed
      at Employer's offices in Dallas, Texas. The location at which Executive
      performs his duties shall not be relocated more than fifty (50) miles from
      Employer's offices in Dallas, Texas on the date hereof, without
      Executive's written consent. Executive shall not engage in any employment
      of any kind or undertake any role or position, whether or not for
      compensation, with any person or entity during the term of this Agreement
      without advance approval of the Executive Committee of the Board, except
      as otherwise noted above.

3.    Compensation. For all services rendered by Executive pursuant to this
      Agreement, Employer shall pay to Executive, and Executive shall accept as
      full compensation hereunder the following:

      a.    Salary. Executive shall receive a salary of $300,000 per year
            payable by Employer in semi-monthly amounts. Executive's salary
            shall be subject to all appropriate federal and state withholding
            taxes and shall be payable in accordance with the normal payroll
            procedures of Employer. Employer shall not reduce Executive's salary
            without Executive's written consent. Employer agrees to

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            consider increasing such base salary at least annually during the
            Initial Employment Term and any Renewal Term (as those terms are
            defined herein), but shall not be obligated to effectuate such an
            increase.

      b.    Benefits and Perquisites. Executive shall be entitled to participate
            in the benefit plans provided by Employer for all employees
            generally, and for executive employees of Employer. Employer shall
            be entitled to change or terminate such plans in its sole
            discretion. The parties acknowledge that at the initial date of this
            Agreement the fringe benefits provided to Executive include a
            corporate 401(k) plan, health, dental, life, short and long-term
            disability insurance, and reimbursement of certain expenses in
            accordance with the policies and procedures of Employer.

      c.    Discretionary Bonuses. The Board shall establish an incentive bonus
            plan for its key executives based on various targets and performance
            criteria to be established by the Board. Executive shall be
            permitted to participate in such plan. The evaluation of the
            performance of Executive as measured by the applicable targets and
            the awarding of applicable bonuses, if any, shall be at the sole
            discretion of the Board. The annual discretionary bonus may be
            awarded in whole or in part, based on the level of incentive bonus
            plan performance criteria achieved by Executive, in the sole
            judgement of the Board. If Executive terminates this Agreement
            without Good Reason, as defined in Section 5(d), or if Employer
            terminates this Agreement at any time for Cause, as defined in
            Section 5(b), Executive will not be paid any Discretionary Bonus, in
            whole or in part.

      d.    Equity Compensation. Employer establishes equity-based incentives
            for its executives from time to time pursuant to its 1999 Omnibus
            Stock Plan and, potentially, such other equity compensation programs
            as may be adopted by Employer in the future (collectively, the
            "Plan"). Employer may, but is not obligated to, make grants of
            equity-based incentive compensation to Executive pursuant to the
            terms of such Plan.

4.    Protective Covenants. Executive recognizes that his employment by Employer
      is one of the highest trust and confidence because (i) Executive has
      become and/or in the future will become familiar with critical aspects of
      Employer's business during the period of his employment with Employer,
      (ii) certain information of which Executive will gain knowledge during his
      employment by Employer is proprietary, confidential and/or trade secret
      information and is of special and peculiar value to Employer, and (iii) if
      any such proprietary, confidential and/or trade secret information were
      imparted to or became known by any person, including Executive, engaging
      in a business in competition with that of Employer, hardship, loss and
      irreparable injury and damage could result to Employer, the measurement of
      which would be difficult if not impossible to ascertain. Executive further
      acknowledges that Employer has developed 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,

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      tapes and disks concerning its operations systems, customer lists,
      customer leads, documents identifying past, present and future customers,
      customer profile and preference data, hiring and training methods,
      investment policies, financial and other confidential, proprietary and/or
      trade secret information concerning its operations and expansion plans
      ("Confidential Information"). Therefore, Executive agrees that it is
      necessary for Employer to protect its business and that of its affiliates
      from such damage, and Executive further agrees that the following
      covenants constitute a reasonable and appropriate means, consistent with
      the best interest of both Executive and Employer, to protect Employer or
      its affiliates against damage due to loss or disclosure of Confidential
      Information and shall apply to and be binding upon Executive as provided
      herein:

      a.    Confidential Information. Employer agrees to provide Executive with
            some or all of its Confidential Information (as defined above)
            during the term of this Agreement (as set forth in Section 8 below).
            Executive recognizes that his position with Employer is one of the
            highest trust and confidence by reason of Executive's access to and
            contact with certain Confidential Information of Employer. Executive
            agrees and covenants that, except as may be required by Employer in
            connection with this Agreement, or with the prior written consent of
            Employer, Executive shall not, either during the term of this
            Agreement or at any time thereafter, directly or indirectly, use for
            Executive's own benefit or for the benefit of another, or disclose,
            disseminate, or distribute to another, except as directed by
            Employer or as required for the performance of Executive's duties on
            behalf of Employer, any Confidential Information (whether or not
            acquired, learned, obtained, or developed by Executive alone or in
            conjunction with others) of Employer or of others with whom Employer
            has a business relationship, provided, however that this restriction
            shall not apply to truthful testimony given under oath in a legal
            proceeding by Executive pursuant to a properly issued subpoena if
            Executive provides timely notice of such subpoena to Employer. All
            Confidential Information, and all memoranda, notes, records,
            drawings, documents, or other writings whatsoever made, compiled,
            acquired, or received by Executive at any time during his employment
            with Employer, including during the term of this Agreement, arising
            out of, in connection with, or related to any activity or business
            of Employer, including, but not limited to, the customers,
            suppliers, or others with whom Employer has a business relationship,
            the arrangements of Employer with such parties, and the pricing and
            expansion policies and strategy of Employer, are, and shall continue
            to be, the sole and exclusive property of Employer and shall,
            together with all copies thereof, and any and all documents
            constituting or relating to Employer's Confidential Information, be
            delivered to Employer by Executive immediately, without demand, upon
            the termination of this Agreement, or at any time upon Employer's
            demand.

                  Executive acknowledges that Employer would not employ
            Executive or provide Executive access to Employer's Confidential
            Information and proprietary information but for Executive's
            covenants and promises contained in this Section 4.

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                  Executive represents and warrants that he is not bound by any
            agreement with any prior employer or other party that will be
            breached by execution and performance of this Agreement, or which
            would otherwise prevent him from performing his duties with Employer
            as set forth in this Agreement. Executive represents and warrants
            that he has not retained any copies of proprietary or confidential
            information of any prior employer, and he will not use or rely on
            any confidential and proprietary information of any prior employer
            in carrying out his duties for Employer.

      b.    Covenant Not to Compete. In consideration of the numerous mutual
            promises and agreements contained in this Agreement between Employer
            and Executive, including, without limitation, those involving
            Confidential Information, and in order to protect Employer's
            Confidential Information and to reduce the likelihood of irreparable
            damage which would occur in the event such information is provided
            to or used by a competitor of Employer, Executive agrees that during
            his employment and for an additional period of twelve (12) months
            immediately following the termination of his employment, whether
            voluntary or involuntary (the "Noncompetition Term"), not to,
            directly or indirectly, either through any form of ownership or as
            an individual, director, officer, principal, agent, employee,
            employer, adviser, consultant, shareholder, partner, member, or in
            any individual or representative capacity whatsoever, without the
            prior written consent of Employer (which consent may be withheld in
            its sole discretion), (i) 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 Texas, New Mexico, Oklahoma, Arkansas, and Louisiana;
            (ii) own, operate, participate in, undertake any employment with or
            have any interest in any entity with a place of business in Texas,
            New Mexico, Oklahoma, Arkansas, and Louisiana related to the
            operation of a state or national bank or company providing similar
            services, except owning publicly traded stock for investment
            purposes only in which Executive owns less than 5%, (iii) compete
            for or solicit business related to the operation of a state or
            national bank or company providing similar services from any
            customer of Employer (or its successors by merger); or (iv) use in
            any competition, solicitation, or marketing effort any Confidential
            Information, any proprietary list, or any information concerning
            customers of Employer.

                  Executive hereby acknowledges that the geographic boundaries,
            scope of prohibited activities and the time duration of the
            provisions of this Section 4 are reasonable and are no broader than
            are necessary to protect the legitimate business interests of
            Employer. This noncompetition provision shall survive the
            termination of Executive's employment and can only be revoked or
            modified by a writing signed by the parties that specifically states
            an intent to revoke or modify this provision. Executive acknowledges
            that Employer would not employ him or provide him with access to its
            Confidential Information but for his covenants or promises contained
            in this Section.

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                  Employer and Executive agree and stipulate that the agreements
            and covenants not to compete contained in this Section 4 hereof are
            fair and reasonable in light of all of the facts and circumstances
            of the relationship between Executive and Employer; however,
            Executive and Employer are aware that in certain circumstances
            courts have refused to enforce certain terms of agreements not to
            compete. Therefore, in furtherance of, and not in derogation of the
            provisions of this Section 4, Employer and Executive agree that in
            the event a court should decline to enforce any terms of any of the
            provisions of this Section 4, that Section 4 shall be deemed to be
            modified or reformed to restrict Executive's competition with
            Employer or its affiliates to the maximum extent, as to time,
            geography and business scope, which the court shall find
            enforceable; provided, however, in no event shall the provisions of
            this Section 4 be deemed to be more restrictive to Executive than
            those contained herein.

                  Executive agrees that during the Noncompetition Term, he shall
            immediately notify Employer in writing of any employment, work or
            business he undertakes with or on behalf of any person (including
            himself) or entity.

      c.    Non-Solicitation. Executive agrees that during his employment, and
            for a period of twelve (12) months following the termination of his
            employment, for whatever reason, that neither he nor any individual,
            partner(s), limited partnership, 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 or business, will
            (i) request, induce or attempt to influence, directly or indirectly,
            any employee of Employer to terminate their employment with Employer
            or (ii) employ any person who as of the date of this Agreement was,
            or after such date, is an employee of Employer. Executive further
            agrees that during the period beginning with the commencement of
            Executive's employment with Employer and ending twelve (12) months
            after the termination of Executive's employment with Employer, for
            whatever reason, he shall not, directly or indirectly, as an
            individual, employee, agent, consultant, stockholder, director,
            partner or in any other individual or representative capacity of
            Employer or of any other person, entity or business, solicit or
            encourage any present or future customer, supplier, contractor,
            partner or investor of Employer to terminate, limit or otherwise
            alter his, her or its relationship with Employer.

      d.    Work Product. For purposes of this Section 4, "Work Product" shall
            mean all intellectual property rights, including all trade secrets,
            U.S. and international copyrights, patentable inventions,
            discoveries and other intellectual property rights in any
            programming, design, documentation, technology, or other work
            product that is created in connection with Executive's work. In
            addition, all rights in any preexisting programming, design,
            documentation, technology, or other Work Product provided to
            Employer during Executive's employment shall automatically become
            part of the Work Product hereunder, whether or not it arises
            specifically out of Executive's "Work." For purposes of this
            Agreement, "Work"

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            shall mean (i) any direct assignments and required performance by or
            for Employer, and (ii) any other productive output that relates to
            the business of Employer and is produced during the course of
            Executive's employment or engagement by Employer. For this purpose,
            Work may be considered present even after normal working hours, away
            from Employer's premises, on an unsupervised basis, alone or with
            others. Unless otherwise approved in writing by the Board, this
            Agreement shall apply to all Work Product created in connection with
            all Work conducted before or after the date of this Agreement.

                  Employer shall own all rights in the Work Product. To this
            end, all Work Product shall be considered work made for hire for
            Employer. If any of the Work Product may not, by operation of law or
            agreement, be considered Work made by Executive for hire for
            Employer (or if ownership of all rights therein do not otherwise
            vest exclusively in Employer immediately), Executive agrees to
            assign, and upon creation thereof does hereby automatically assign,
            without further consideration, the ownership thereof to Employer.
            Executive hereby irrevocably relinquishes for the benefit of
            Employer and its assigns any moral rights in the Work Product
            recognized by applicable law. Employer shall have the right to
            obtain and hold, in whatever name or capacity it selects,
            copyrights, registrations, and any other protection available in the
            Work Product.

                  Executive agrees to perform upon the request of Employer,
            during or after Executive's Work or employment, such further acts as
            may be necessary or desirable to transfer, perfect, and defend
            Employer's ownership of the Work Product, including by (i)
            executing, acknowledging, and delivering any requested affidavits
            and documents of assignment and conveyance, (ii) obtaining and/or
            aiding in the enforcement of copyrights, trade secrets, and (if
            applicable) patents with respect to the Work Product in any
            countries, and (iii) providing testimony in connection with any
            proceeding affecting the rights of Employer in any Work Product. In
            the event that Executive is required to perform the services
            described in this paragraph after his employment with the Employer
            has terminated, Executive will be reasonably compensated for actual
            time spent providing such services.

                  Executive warrants that his Work for Employer does not and
            will not in any way conflict with any obligations Executive may have
            with any prior employer or contractor. Executive also agrees to
            develop all Work Product in a manner that avoids even the appearance
            of infringement of any third party's intellectual property rights.

      e.    Survival of Covenants. Each covenant of Executive set forth in this
            Section 4 shall survive the termination of this Agreement and
            Executive's employment for any reason and shall be construed as an
            agreement independent of any other provision of this Agreement, and
            the existence of any claim or cause of action of Executive against
            Employer whether predicated on this Agreement or otherwise shall not
            constitute a defense to the enforcement by Employer of said
            covenant.

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            No modification or waiver of any covenant contained in this Section
            4 shall be valid unless such waiver or modification is approved in
            writing by the Board.

      f.    Remedies. In the event of a breach, violation or threatened breach
            or violation by Executive of any provision of this Section 4,
            Executive agrees that Employer shall be entitled to relief by
            temporary restraining order, temporary injunction, or permanent
            injunction or otherwise, in addition to other legal and equitable
            relief to which it may be entitled, including any and all monetary
            damages which Employer may incur as a result of said breach,
            violation or threatened breach or violation. Employer may pursue any
            remedy available to it concurrently or consecutively in any order as
            to any breach, violation, or threatened breach or violation, and the
            pursuit of one of such remedies at any time will not be deemed an
            election of remedies or waiver of the right to pursue any other of
            such remedies as to such breach, violation, or threatened breach or
            violation, or as to any other breach, violation, or threatened
            breach or violation.

                  Executive hereby acknowledges that Executive's agreement to be
            bound by the protective covenants set forth in this Section 4 was a
            material inducement for Employer entering into this Agreement,
            agreeing to pay Executive the compensation and benefits set forth
            herein, and providing Executive with Employer's Confidential
            Information and other proprietary information.

5.    Termination. The employment relationship between Executive and Employer
      created hereunder shall terminate before the expiration of the stated term
      of this Agreement upon the occurrence of any one of the following events:

      a.    Death or Permanent Disability. The employment relationship shall be
            terminated effective on the death or permanent disability of
            Executive. However, Executive shall be entitled to leaves of absence
            from Employer in accordance with the policy of Employer generally
            applicable to executives for illness or temporary disabilities for a
            period or periods not exceeding three (3) months in any calendar
            year, and his status as an Executive shall continue during such
            periods. However, if Executive qualifies for short-term disability
            payments under Employer's standard short-term disability plan during
            such leave, Executive shall apply to receive such short-term
            disability payments. Employer shall supplement such short term
            disability payments so that Executive receives such monthly amounts
            when combined with the short term disability payments to equal
            Executive's monthly compensation as set forth in Section 3(a) of
            this Agreement. If Executive is incapacitated due to physical or
            mental illness and such incapacity prevents Executive from
            satisfactorily performing his duties for Employer on a full time
            basis for six (6) months or more, Executive shall be deemed to have
            experienced a permanent disability and Employer may terminate this
            Agreement upon thirty (30) days written notice. Upon the death or
            permanent disability of Executive, Executive or his estate (as the
            case may be) shall be entitled to compensation as provided in
            Sections 6(a), (b) and (c) below.

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      b.    Termination for Cause. The following events, which for purposes of
            this Agreement shall constitute "Cause" for termination:

            i.    Any act of fraud, misappropriation or embezzlement by
                  Executive with respect to any aspect of Employer's business;

            ii.   The breach by Executive of any provision of Sections 1, 2 or 4
                  of this Agreement (including but not limited to a refusal to
                  follow lawful directives of the Board, the Chief Executive
                  Officer or their designees which are not inconsistent with the
                  duties of Executive's position and the provisions of this
                  Agreement);

            iii.  The conviction of Executive by a court of competent
                  jurisdiction of a felony or of a crime involving moral
                  turpitude;

            iv.   The intentional and material breach by Executive of any
                  non-disclosure or non-competition/non-solicitation provision
                  of any agreement to which Executive and Employer or any of its
                  subsidiaries are parties;

            v.    The intentional failure by Executive to perform in all
                  material respects his duties and responsibilities (other than
                  as a result of death or disability) and the failure of
                  Executive to cure the same in all material respects within
                  fifteen (15) days after written notice thereof from the Chief
                  Executive Officer or his designee;

            vi.   The illegal use of drugs by Executive during the term of this
                  Agreement that, in the determination of the Board,
                  substantially interferes with Executive's performance of his
                  duties hereunder;

            vii.  Acceptance of employment with any other employer except upon
                  written permission of the Board; or

            viii. The breach by Executive of his fiduciary duty to Employer.

            Employer shall provide Executive with a written notice of
            termination, which can be provided on the date of termination. In
            the event Executive's employment is terminated for Cause hereunder,
            Executive shall be entitled to the compensation provided in Sections
            6(a), (b) and (c) below.

      c.    Termination by Employer with Notice. Employer may terminate this
            Agreement without Cause at any time upon thirty (30) days written
            notice to Executive, during which period Executive shall not be
            required to perform any services for Employer other than to assist
            Employer in training his successor and generally preparing for an
            orderly transition; PROVIDED, HOWEVER, that Executive shall be
            entitled to compensation upon such termination as provided in
            Section 6(a), (b), (c) and (d) below.

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      d.    Termination by Executive For Good Reason. Executive shall be
            entitled to terminate this Agreement at any time for Good Reason.
            For purposes of this Agreement, "Good Reason" shall mean the
            occurrence of any of the following events:

            i.    Without his express written consent, the assignment of
                  Executive to a position functionally inferior to his position
                  with Employer on the date of this Agreement;

            ii.   The change of the location where Executive is based to a
                  location which is more than fifty (50) miles from his present
                  location without Executive's written consent; or

            iii.  A reduction by Employer in Executive's base salary as in
                  effect on the date hereof, unless such reduction is a
                  proportionate reduction of the compensation of Executive and
                  all other senior officers of Employer as a part of a
                  company-wide effort to enhance the financial condition of
                  Employer.

            Executive shall give Employer thirty (30) business days notice of an
            intent to terminate this Agreement for "Good Reason" as defined in
            this Section 5(d), and provide Employer with ten (10) business days
            after receipt of such notice from Executive to remedy the alleged
            violation of Subsections 5(d)(i), (ii) or (iii). In the event
            Executive terminates his employment for Good Reason hereunder,
            Executive shall be entitled to the compensation provided in Sections
            6(a), (b), (c) and (d) below.

6.    Compensation Upon Termination. Upon the termination of Executive's
      employment under this Agreement before the expiration of the stated term
      hereof for any reason, Executive shall be entitled to:

      a.    the salary earned by him before the effective date of termination as
            provided in Section 3(a) hereof (including salary payable during any
            applicable notice period), prorated on the basis of the number of
            full days of service rendered by Executive during the salary payment
            period to the effective date of termination;

      b.    any accrued, but unpaid, vacation benefits; and

      c.    any previously authorized but unreimbursed business expenses.

      If Executive's employment hereunder terminates because of the death or
      permanent disability of Executive, Executive shall be entitled to the
      lesser of (i) the balance of Executive's base salary (as set forth in
      Section 3(a) above), if any, remaining in the term of this Agreement or
      (ii) twelve (12) months' base salary. In addition, in the event of
      Executive's permanent disability, Executive shall receive continued
      medical insurance

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      benefits, at Employer's expense, for a period of twelve (12) months from
      the date of the termination of this Agreement. All amounts that may be due
      to Executive under this Section 6 or Section 5(a) shall be paid to him or
      his administrators, personal representatives, heirs and legatees, as may
      be appropriate.

      Notwithstanding the foregoing, with respect to any stock options or other
      plans or programs in which Executive is participating at the time of
      termination of his employment, Executive's rights and benefits under each
      such plan shall be determined in accordance with the terms, conditions,
      and limitations of the plan and any separate agreement executed by
      Executive which may then be in effect.

      d.    Additional Compensation and Benefits Upon Termination Without Cause,
            With Notice or for Good Reason. If Executive's employment hereunder
            terminates without "Cause" (as defined in Section 5(b) above), with
            notice pursuant to Section 5(c) above, or for "Good Reason" (as
            defined in Section 5(d) above) Employer shall, upon Executive's
            execution of a general release of claims in favor of Employer,
            provide to Executive in addition to the amounts set forth in
            Subsections 6(a), 6(b) and 6(c) above:

            i.    a cash payment equal to the greater of (y) Executive's base
                  salary (as set forth in Section 3(a) above), if any, remaining
                  in the term of Executive's Agreement or (z) twelve (12)
                  months' base salary;

            ii.   a cash payment equal to the average annual cash bonus paid to
                  Executive for the two (2) full bonus plan years immediately
                  preceding the date Executive's employment terminates; and

            iii.  continued medical insurance benefits, at Employer's expense,
                  for a period of twelve (12) months.

            Employer shall pay the severance amounts referenced in Section
            6(d)(i) in equal semi-monthly installments for a period of twelve
            (12) months ("Severance Period") in accordance with Employer's
            regular payroll practices. Executive shall have no obligation to
            mitigate any severance obligation of Employer under this Agreement
            by seeking new employment. Employer 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. The provisions of Sections 4, 5 and
            6 hereof shall survive the termination of the employment
            relationship hereunder and this Agreement.

            Notwithstanding the foregoing, with respect to any stock options or
            other plans or programs in which Executive is participating at the
            time of termination of his employment, Executive's rights and
            benefits under each such plan shall be determined in accordance with
            the terms, conditions, and limitations of the plan and any separate
            agreement executed by Executive which may then be in effect.

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      e.    If, during the Severance Period, Executive is in breach of his
            post-employment covenants contained in Section 4 of this Agreement,
            Employer shall not be obligated to pay any severance payments
            referenced herein, Employer's severance obligations shall terminate
            and expire, and Employer shall have no further obligations to
            Executive hereunder from and after the date of such breach and shall
            have all other rights and remedies available under this Agreement or
            any other agreement and at law or in equity.

7.    Compensation Upon Change in Control.

      a.    For purposes of this Agreement, a "Change in Control" of Employer
            shall be deemed to have occurred at such time as:

            i.    any "person" (as the term is used in Sections 13(d) and 14(d)
                  of the Securities Exchange Act of 1934, as amended (the
                  "Exchange Act")) is or becomes the "beneficial owner" (as
                  defined in Rule 13d-3 under the Exchange Act), directly or
                  indirectly, of voting securities of Employer representing more
                  than 50% of Employer's outstanding voting securities or rights
                  to acquire such securities except for any voting securities
                  issued or purchased under any employee benefit plan of
                  Employer or its subsidiaries; or

            ii.   individuals who constitute the Board on the date hereof (the
                  "Incumbent Board") cease for any reason to constitute at least
                  a majority thereof, provided that any person becoming a
                  director subsequent to the date hereof whose election was
                  approved by a vote of at least three-quarters of the directors
                  comprising the Incumbent Board, or whose nomination for
                  election by Employer's stockholders was approved by a
                  Nominating Committee solely composed of members which are
                  Incumbent Board members, shall be, for purposes of this clause
                  (ii), considered as though he were a member of the Incumbent
                  Board; or

            iii.  a plan of reorganization, merger, consolidation, sale of all
                  or substantially all of the assets of Employer or similar
                  transaction occurs or is effectuated in which Employer is not
                  the resulting entity; provided, however, that such an event
                  listed above will be deemed to have occurred or to have been
                  effectuated upon receipt of all required regulatory approvals
                  not including the lapse of any required waiting periods; or

            iv.   the Board determines in its sole discretion that a Change in
                  Control has occurred.

      b.    Benefits Upon Change in Control.

            i.    Severance Benefits. If Executive's employment with Employer is
                  terminated (A) by Employer (or by the acquiring or successor
                  business

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                  entity following a Change of Control) other than for "Cause"
                  (as defined in Section 5(b) above), death or permanent
                  disability, or (B) by Executive for "Good Reason" (as defined
                  in Section 5(d) above) in either event within a period
                  beginning ninety (90) days before, and ending one (1) year
                  after, the date of a Change of Control (the "Change Period"),
                  Executive shall receive a cash severance benefit in an amount
                  equal to the sum of 250% of Executive's average annual cash
                  base salary and bonus in effect for the two (2) years
                  immediately preceding the Change of Control.

                  In addition, for twenty four (24) months following the date of
                  termination of Executive's employment in circumstances in
                  which a severance payment is due under this Section 7(b),
                  Employer shall provide Executive, at Employer's expense,
                  health and other welfare benefits that are not less favorable
                  to Executive than those to which he was entitled immediately
                  prior to the Change in Control. Provided however, Employer
                  shall have no obligation to provide Executive with any
                  severance compensation under this Section 7 if Executive is in
                  breach or violation of any of the covenants contained in
                  Section 4, which are applicable to Executive at the time of
                  the severance payment.

            ii.   Form of Payment. The amount of the severance benefit provided
                  in Section 7(c)(i) hereof shall be paid to Executive in a lump
                  sum within thirty (30) days of Executive's termination, unless
                  such payment must be delayed so as to avoid classification as
                  "deferred compensation" under Section 409A of the Internal
                  Revenue Code of 1986, as amended (the "Code").

            iii.  Notwithstanding the other provisions of this Section 7, in the
                  event that:

                  (aa)  the aggregate payments or benefits to be made or
                        afforded to Executive, which are deemed to be parachute
                        payments as defined in Code Section 280G or any
                        successor thereof, (the "Termination Benefits") would be
                        deemed to include an "excess parachute payment" under
                        Code Section 280G; and

                  (bb)  if such Termination Benefits were reduced to an amount
                        (the "Non-Triggering Amount"), the value of which is one
                        dollar ($1.00) less than an amount equal to three (3)
                        times Executive's "base amount," as determined in
                        accordance with Code Section 280G and the Non-Triggering
                        Amount less the product of the marginal rate of any
                        applicable state and federal income tax and the
                        Non-Triggering Amount would be greater than the
                        aggregate value of the Termination Benefits (without
                        such reduction) minus (a) the amount of tax required to
                        be paid by Executive thereon by Code Section 4999 and
                        further minus (b) the product of the Termination
                        Benefits and the marginal rate of any applicable state

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                        and federal income tax, then the Termination Benefits
                        shall be reduced to the Non-Triggering Amount. The
                        allocation of the reduction required hereby among the
                        Termination Benefits shall be determined by Executive.

            iv.   Notwithstanding the foregoing, with respect to any stock
                  options or other plans or programs in which Executive is
                  participating at the time of termination of his employment,
                  Executive's rights and benefits under each such plan shall be
                  determined in accordance with the terms, conditions, and
                  limitations of the plan and any separate agreement executed by
                  Executive which may then be in effect.

      c.    No Mitigation or Offset. Executive shall not be required to mitigate
            the amount of any payment provided for in this Section 7 of this
            Agreement by seeking other employment or otherwise. Employer shall
            not be entitled to set off or reduce any severance payments owed to
            Executive under this Section 7 by the amount of earnings or benefits
            received by Executive in future employment.

8.    Term. This Agreement shall be binding and enforceable against Employer and
      Executive immediately upon its execution by both such parties. The stated
      term of this Agreement and the employment relationship created hereunder
      shall begin on December 20, 2004, and shall remain in effect for two (2)
      years thereafter, unless sooner terminated in accordance with Section 5
      hereof (the "Initial Employment Term"). This Agreement shall be
      automatically renewed for successive one (1) year terms after the Initial
      Employment Term ("Renewal Term"), unless terminated by either party at
      least thirty (30) days prior to the end of the Initial Employment Period
      or any Renewal Term.

      Notwithstanding any provision of this Agreement to the contrary, the
      parties' respective rights and obligations under Sections 3, 4, 6 and 7
      shall survive any termination or expiration of this Agreement or the
      termination of Executive's employment for any reason whatsoever.

9.    Remedies. Each of the parties to this Agreement will be entitled to
      enforce its rights under this Agreement, specifically, to recover damages
      by reason of any breach of any provision of this Agreement and to exercise
      all other rights existing in its favor. Notwithstanding Section 10 below,
      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 may in its sole discretion apply to any court of law or
      equity of competent jurisdiction for specific performance and/or
      injunctive relief in order to enforce or prevent any violations of the
      provisions of this Agreement.

10.   Arbitration. Any controversy or claim arising out of or relating to this
      Agreement or relating to Executive's rights, compensation and
      responsibilities as an Executive, excluding any claims based on violations
      of Section 4, shall be determined by arbitration in Dallas County, Texas
      in accordance with the rules of the American Arbitration Association then
      in effect. The arbitration shall be submitted to a single arbitrator

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      selected in accordance with the American Arbitration Association's
      procedures then in effect for the selection of employment arbitrators. The
      parties shall split the cost of the arbitrator. The arbitrator shall have
      the authority to award any remedy that could be awarded by a court of
      competent jurisdiction. Each party shall bear its own expenses and fees
      associated with such arbitration. This Section 10 shall survive
      termination of this Agreement for any reason.

11.   Non-Disparagement. Executive and Employer agree not to make any statements
      that disparage the reputation of (i) Employer, its products, services or
      employees, or (ii) Executive. Executive and Employer further acknowledge
      and agree that any breach or violation of this non-disparagement provision
      shall entitle Executive or Employer to seek injunctive relief to prevent
      any future breaches of this provision and/or to sue the other party on
      this Agreement for the immediate recovery of any damages caused by such
      breach. For purposes of this provision, Employer's obligation shall be
      limited to the Executive Committee of the Board and executives who are
      members of the Employer's Senior Policy Committee.

12.   Assignment. This Agreement is personal to Executive and may not be
      assigned in any way by Executive without the prior written consent of
      Employer. This Agreement shall not be assignable or delegable by Employer,
      other than to an affiliate of Employer; provided, however, that in the
      event of the acquisition, merger or consolidation of Employer, the
      obligations of Employer hereunder shall be binding upon the surviving or
      resulting entity of such acquisition, merger or consolidation. The rights
      and obligations under this Agreement shall inure to the benefit of and
      shall be binding upon the heirs, legatees, administrators and personal
      representatives of Executive and upon the successors, representatives and
      assigns of Employer.

13.   Severability and Reformation. The parties hereto intend all provisions of
      this Agreement to be enforced to the fullest extent permitted by law. If,
      however, any provision of this Agreement is held to be illegal, invalid,
      or unenforceable under present or future law, such provision shall be
      fully severable, and this Agreement shall be construed and enforced as if
      such illegal, invalid, or unenforceable provision were never a part
      hereof, and the remaining provisions shall remain in full force and effect
      and shall not be affected by the illegal, invalid, or unenforceable
      provision or by its severance. In lieu of such illegal, invalid or
      unenforceable provision, there shall be added automatically as a part of
      this Agreement a legal, valid and enforceable provision as similar in
      terms to such illegal, invalid or unenforceable provision as may be
      possible, and Employer and Executive hereby request the court to whom
      disputes relating to this Agreement are submitted to reform the otherwise
      unenforceable covenant in accordance with this Section 13.

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14.   Notices. All notices and other communications required or permitted to be
      given hereunder shall be in writing and shall be deemed to have been duly
      given if delivered personally, mailed by certified mail (return receipt
      requested) or sent by overnight delivery service, cable, telegram,
      facsimile transmission or telex to the parties at the following addresses
      or at such other addresses as shall be specified by the parties by like
      notice:

            If to Employer:   Texas Capital Bancshares, Inc.
                              2100 McKinney Avenue, Suite 900
                              Dallas, Texas 75201
                              Fax: (214) 932-6609

                              Attn: Chairman of the Executive Committee of the
                              Board of Directors

            If to Executive:  Joseph M. Grant

                              _______________________
                              _______________________
                              _______________________

      Notice so given shall, in the case of notice so given by mail, be deemed
      to be given and received on the fourth calendar day after posting, in the
      case of notice so given by overnight delivery service, on the date of
      actual delivery and, in the case of notice so given by cable, telegram,
      facsimile transmission, telex or personal delivery, on the date of actual
      transmission or, as the case may be, personal delivery.

15.   Further Acts. Whether or not specifically required under the terms of this
      Agreement, each party hereto shall execute and deliver such documents and
      take such further actions as shall be necessary in order for such party to
      perform all of his or its obligations specified herein or reasonably
      implied from the terms hereof.

16.   Publicity and Advertising. Executive agrees that Employer may use his
      name, picture, or likeness for any advertising, publicity or other
      business purpose at any time, during the term of this Agreement and may
      continue to use materials generated during the term of this Agreement for
      a period of six months thereafter. Such use of Executive's name, picture,
      or likeness shall not be deemed to result in any invasion of Executive's
      privacy or in violation of any property right Executive may have; and
      Executive shall receive no additional consideration if his name, picture
      or likeness is so used. The Executive further agrees that any negatives,
      prints or other material for printing or reproduction purposes prepared in
      connection with the use of his name, picture or likeness by Employer shall
      be and are the sole property of Employer.

17.   GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
      ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT GIVING EFFECT TO
      THE CONFLICT OF LAWS (RULES) OR CHOICE OF LAWS (RULES) THEREOF.

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18.   Venue. The exclusive venue for all suits or proceedings arising from or
      related to this Agreement shall be in a court of competent jurisdiction in
      Dallas County, Texas.

19.   Entire Agreement and Amendment. This Agreement contains the entire
      understanding and agreement between the parties, and supersedes any other
      agreement between Executive and Employer, whether oral or in writing, with
      respect to the subject matter hereof, except that nothing herein shall
      affect the rights of Executive and Employer under that certain
      Indemnification Agreement dated December 20, 2004, or any existing
      confidentiality or non-disclosure agreement. This Agreement may not be
      altered, amended, or rescinded, nor may any of its provisions be waived,
      except by an instrument in writing signed by both parties hereto or, in
      the case of an asserted waiver, by the party against whom the waiver is
      sought to be enforced. Any modification of this Agreement may only be
      signed on behalf of Employer by the President of Employer and approved by
      the Board.

20.   Counterparts. This Agreement may be executed in counterparts, with the
      same effect as if both parties had signed the same document. All such
      counterparts shall be deemed an original, shall be construed together and
      shall constitute one and the same instrument.

                           [signature page to follow]

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<PAGE>

                                                                  EXECUTION COPY

      IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date indicated in Section 8.

                                           EMPLOYER:

                                           TEXAS CAPITAL BANCSHARES, INC.

                                           By:   /s/ JAMES R. HOLLAND, JR.
                                                 -------------------------
                                           Its:  Chairman - Executive Committee
                                                 ------------------------------
                                           EXECUTIVE:

                                          /s/ JOSEPH M. GRANT
                                          -------------------
                                           Joseph M. Grant

                                       17<PAGE>

                                                                   EXHIBIT 10.2

                                                                  EXECUTION COPY

                         EXECUTIVE EMPLOYMENT AGREEMENT

      This Executive Employment Agreement (this "Agreement"), effective on the
date hereof, is entered into in Dallas, Texas, by and between Texas Capital
Bancshares, Inc., a Texas corporation, with its principal place of business
located at 2100 McKinney Avenue, Suite 900, Dallas, Texas, 75201 ("Employer"),
and George F. Jones, Jr. ("Executive").

      In consideration of the mutual covenants set forth herein, Employer and
Executive, intending to be legally bound, hereby agree as follows:

1.    Employment Relationship. Employer hereby employs Executive, and Executive
      hereby accepts such employment, upon the terms and conditions set forth in
      this Agreement. Such employment relationship shall continue for the stated
      term of this Agreement, as described in Section 8 hereof, unless earlier
      terminated pursuant to Section 5 hereof.

2.    Position and Responsibilities of Executive. Executive shall be employed as
      President and Chief Executive Officer of Texas Capital Bank, N.A. with job
      responsibilities related thereto, and such job responsibilities may be
      expanded at the sole discretion of the Chief Executive Officer or the
      Board of Directors of Employer ("Board"). Executive shall devote such
      time, skill and attention to the business of Employer as shall be required
      for the efficient management thereof, and shall manage and supervise such
      business, and shall devote his full time best efforts to the faithful
      performance of his duties on behalf of Employer, provided, however,
      Executive may engage in appropriate civic, charitable or religious
      activities and devote a reasonable amount of time to private investments
      or boards or other activities provided that such activities do not
      interfere or conflict with the Executive's responsibilities to Employer
      and are not likely to be contrary to Employer's interests. Executive shall
      also perform such other duties, and may have job responsibilities and
      titles modified from time to time as may be requested by the Chief
      Executive Officer and/or the Board, provided such duties are generally
      consistent with the level of the Executive's current duties. Executive's
      duties shall be performed at Employer's offices in Dallas, Texas. The
      location at which Executive performs his duties shall not be relocated
      more than fifty (50) miles from Employer's offices in Dallas, Texas on the
      date hereof, without Executive's written consent. Executive shall not
      engage in any employment of any kind or undertake any role or position,
      whether or not for compensation, with any person or entity during the term
      of this Agreement without advance written approval of the Chief Executive
      Officer, who shall give notice of Executive's any such request to the
      Executive Committee of the Board, except as otherwise noted above.

3.    Compensation. For all services rendered by Executive pursuant to this
      Agreement, Employer shall pay to Executive, and Executive shall accept as
      full compensation hereunder the following:

      a.    Salary. Executive shall receive a salary of $275,000 per year
            payable by Employer in semi-monthly amounts. Executive's salary
            shall be subject to all appropriate federal and state withholding
            taxes and shall be payable in accordance

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<PAGE>

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            with the normal payroll procedures of Employer. Employer shall not
            reduce Executive's salary without Executive's written consent.
            Employer agrees to consider increasing such base salary at least
            annually during the Initial Employment Term and any Renewal Term (as
            those terms are defined herein), but shall not be obligated to
            effectuate such an increase.

      b.    Benefits and Perquisites. Executive shall be entitled to participate
            in the benefit plans provided by Employer for all employees
            generally, and for executive employees of Employer. Employer shall
            be entitled to change or terminate such plans in its sole
            discretion. The parties acknowledge that at the initial date of this
            Agreement the fringe benefits provided to Executive include a
            corporate 401(k) plan, health, dental, life, short and long-term
            disability insurance, and reimbursement of certain expenses in
            accordance with the policies and procedures of Employer.

      c.    Discretionary Bonuses. The Board shall establish an incentive bonus
            plan for its key executives based on various targets and performance
            criteria to be established by the Board. Executive shall be
            permitted to participate in such plan. The evaluation of the
            performance of Executive as measured by the applicable targets and
            the awarding of applicable bonuses, if any, shall be at the sole
            discretion of the Board. The annual discretionary bonus may be
            awarded in whole or in part, based on the level of incentive bonus
            plan performance criteria achieved by Executive, in the sole
            judgement of the Board. If Executive terminates this Agreement
            without Good Reason, as defined in Section 5(d), or if Employer
            terminates this Agreement at any time for Cause, as defined in
            Section 5(b), Executive will not be paid any Discretionary Bonus, in
            whole or in part.

      d.    Equity Compensation. Employer establishes equity-based incentives
            for its executives from time to time pursuant to its 1999 Omnibus
            Stock Plan and, potentially, such other equity compensation programs
            as may be adopted by Employer in the future (collectively, the
            "Plan"). Employer may, but is not obligated to, make grants of
            equity-based incentive compensation to Executive pursuant to the
            terms of such Plan.

4.    Protective Covenants. Executive recognizes that his employment by Employer
      is one of the highest trust and confidence because (i) Executive has
      become and/or in the future will become familiar with critical aspects of
      Employer's business during the period of his employment with Employer,
      (ii) certain information of which Executive will gain knowledge during his
      employment by Employer is proprietary, confidential and/or trade secret
      information and is of special and peculiar value to Employer, and (iii) if
      any such proprietary, confidential and/or trade secret information were
      imparted to or became known by any person, including Executive, engaging
      in a business in competition with that of Employer, hardship, loss and
      irreparable injury and damage could result to Employer, the measurement of
      which would be difficult if not impossible to ascertain. Executive further
      acknowledges that Employer has developed unique concepts, lending
      practices, sales presentations, marketing programs, marketing strategies,
      business

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<PAGE>

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      practices, methods of operation, pricing information, cost information,
      trademarks, licenses, technical information, proprietary information,
      computer software programs, tapes and disks concerning its operations
      systems, customer lists, customer leads, documents identifying past,
      present and future customers, customer profile and preference data, hiring
      and training methods, investment policies, financial and other
      confidential, proprietary and/or trade secret information concerning its
      operations and expansion plans ("Confidential Information"). Therefore,
      Executive agrees that it is necessary for Employer to protect its business
      and that of its affiliates from such damage, and Executive further agrees
      that the following covenants constitute a reasonable and appropriate
      means, consistent with the best interest of both Executive and Employer,
      to protect Employer or its affiliates against damage due to loss or
      disclosure of Confidential Information and shall apply to and be binding
      upon Executive as provided herein:

      a.    Confidential Information. Employer agrees to provide Executive with
            some or all of its Confidential Information (as defined above)
            during the term of this Agreement (as set forth in Section 8 below).
            Executive recognizes that his position with Employer is one of the
            highest trust and confidence by reason of Executive's access to and
            contact with certain Confidential Information of Employer. Executive
            agrees and covenants that, except as may be required by Employer in
            connection with this Agreement, or with the prior written consent of
            Employer, Executive shall not, either during the term of this
            Agreement or at any time thereafter, directly or indirectly, use for
            Executive's own benefit or for the benefit of another, or disclose,
            disseminate, or distribute to another, except as directed by
            Employer or as required for the performance of Executive's duties on
            behalf of Employer, any Confidential Information (whether or not
            acquired, learned, obtained, or developed by Executive alone or in
            conjunction with others) of Employer or of others with whom Employer
            has a business relationship, provided, however that this restriction
            shall not apply to truthful testimony given under oath in a legal
            proceeding by Executive pursuant to a properly issued subpoena if
            Executive provides timely notice of such subpoena to Employer. All
            Confidential Information, and all memoranda, notes, records,
            drawings, documents, or other writings whatsoever made, compiled,
            acquired, or received by Executive at any time during his employment
            with Employer, including during the term of this Agreement, arising
            out of, in connection with, or related to any activity or business
            of Employer, including, but not limited to, the customers,
            suppliers, or others with whom Employer has a business relationship,
            the arrangements of Employer with such parties, and the pricing and
            expansion policies and strategy of Employer, are, and shall continue
            to be, the sole and exclusive property of Employer and shall,
            together with all copies thereof, and any and all documents
            constituting or relating to Employer's Confidential Information, be
            delivered to Employer by Executive immediately, without demand, upon
            the termination of this Agreement, or at any time upon Employer's
            demand.

                  Executive acknowledges that Employer would not employ
            Executive or provide Executive access to Employer's Confidential
            Information and proprietary

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<PAGE>

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            information but for Executive's covenants and promises contained in
            this Section 4.

                  Executive represents and warrants that he is not bound by any
            agreement with any prior employer or other party that will be
            breached by execution and performance of this Agreement, or which
            would otherwise prevent him from performing his duties with Employer
            as set forth in this Agreement. Executive represents and warrants
            that he has not retained any copies of proprietary or confidential
            information of any prior employer, and he will not use or rely on
            any confidential and proprietary information of any prior employer
            in carrying out his duties for Employer.

      b.    Covenant Not to Compete. In consideration of the numerous mutual
            promises and agreements contained in this Agreement between Employer
            and Executive, including, without limitation, those involving
            Confidential Information, and in order to protect Employer's
            Confidential Information and to reduce the likelihood of irreparable
            damage which would occur in the event such information is provided
            to or used by a competitor of Employer, Executive agrees that during
            his employment and for an additional period of twelve (12) months
            immediately following the termination of his employment, whether
            voluntary or involuntary (the "Noncompetition Term"), not to,
            directly or indirectly, either through any form of ownership or as
            an individual, director, officer, principal, agent, employee,
            employer, adviser, consultant, shareholder, partner, member, or in
            any individual or representative capacity whatsoever, without the
            prior written consent of Employer (which consent may be withheld in
            its sole discretion), (i) 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 Texas, New Mexico, Oklahoma, Arkansas, and Louisiana;
            (ii) own, operate, participate in, undertake any employment with or
            have any interest in any entity with a place of business in Texas,
            New Mexico, Oklahoma, Arkansas, and Louisiana related to the
            operation of a state or national bank or company providing similar
            services, except owning publicly traded stock for investment
            purposes only in which Executive owns less than 5%, (iii) compete
            for or solicit business related to the operation of a state or
            national bank or company providing similar services from any
            customer of Employer (or its successors by merger); or (iv) use in
            any competition, solicitation, or marketing effort any Confidential
            Information, any proprietary list, or any information concerning
            customers of Employer.

                  Executive hereby acknowledges that the geographic boundaries,
            scope of prohibited activities and the time duration of the
            provisions of this Section 4 are reasonable and are no broader than
            are necessary to protect the legitimate business interests of
            Employer. This noncompetition provision shall survive the
            termination of Executive's employment and can only be revoked or
            modified by a writing signed by the parties that specifically states
            an intent to revoke or modify this provision. Executive acknowledges
            that Employer would not employ him or

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<PAGE>

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            provide him with access to its Confidential Information but for his
            covenants or promises contained in this Section.

                  Employer and Executive agree and stipulate that the agreements
            and covenants not to compete contained in this Section 4 hereof are
            fair and reasonable in light of all of the facts and circumstances
            of the relationship between Executive and Employer; however,
            Executive and Employer are aware that in certain circumstances
            courts have refused to enforce certain terms of agreements not to
            compete. Therefore, in furtherance of, and not in derogation of the
            provisions of this Section 4, Employer and Executive agree that in
            the event a court should decline to enforce any terms of any of the
            provisions of this Section 4, that Section 4 shall be deemed to be
            modified or reformed to restrict Executive's competition with
            Employer or its affiliates to the maximum extent, as to time,
            geography and business scope, which the court shall find
            enforceable; provided, however, in no event shall the provisions of
            this Section 4 be deemed to be more restrictive to Executive than
            those contained herein.

                  Executive agrees that during the Noncompetition Term, he shall
            immediately notify Employer in writing of any employment, work or
            business he undertakes with or on behalf of any person (including
            himself) or entity.

      c.    Non-Solicitation. Executive agrees that during his employment, and
            for a period of twelve (12) months following the termination of his
            employment, for whatever reason, that neither he nor any individual,
            partner(s), limited partnership, 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 or business, will
            (i) request, induce or attempt to influence, directly or indirectly,
            any employee of Employer to terminate their employment with Employer
            or (ii) employ any person who as of the date of this Agreement was,
            or after such date, is an employee of Employer. Executive further
            agrees that during the period beginning with the commencement of
            Executive's employment with Employer and ending twelve (12) months
            after the termination of Executive's employment with Employer, for
            whatever reason, he shall not, directly or indirectly, as an
            individual, employee, agent, consultant, stockholder, director,
            partner or in any other individual or representative capacity of
            Employer or of any other person, entity or business, solicit or
            encourage any present or future customer, supplier, contractor,
            partner or investor of Employer to terminate, limit or otherwise
            alter his, her or its relationship with Employer.

      d.    Work Product. For purposes of this Section 4, "Work Product" shall
            mean all intellectual property rights, including all trade secrets,
            U.S. and international copyrights, patentable inventions,
            discoveries and other intellectual property rights in any
            programming, design, documentation, technology, or other work
            product that is created in connection with Executive's work. In
            addition, all rights in any preexisting programming, design,
            documentation, technology, or other

                                       5
<PAGE>

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            Work Product provided to Employer during Executive's employment
            shall automatically become part of the Work Product hereunder,
            whether or not it arises specifically out of Executive's "Work." For
            purposes of this Agreement, "Work" shall mean (i) any direct
            assignments and required performance by or for Employer, and (ii)
            any other productive output that relates to the business of Employer
            and is produced during the course of Executive's employment or
            engagement by Employer. For this purpose, Work may be considered
            present even after normal working hours, away from Employer's
            premises, on an unsupervised basis, alone or with others. Unless
            otherwise approved in writing by the Board, this Agreement shall
            apply to all Work Product created in connection with all Work
            conducted before or after the date of this Agreement.

                  Employer shall own all rights in the Work Product. To this
            end, all Work Product shall be considered work made for hire for
            Employer. If any of the Work Product may not, by operation of law or
            agreement, be considered Work made by Executive for hire for
            Employer (or if ownership of all rights therein do not otherwise
            vest exclusively in Employer immediately), Executive agrees to
            assign, and upon creation thereof does hereby automatically assign,
            without further consideration, the ownership thereof to Employer.
            Executive hereby irrevocably relinquishes for the benefit of
            Employer and its assigns any moral rights in the Work Product
            recognized by applicable law. Employer shall have the right to
            obtain and hold, in whatever name or capacity it selects,
            copyrights, registrations, and any other protection available in the
            Work Product.

                  Executive agrees to perform upon the request of Employer,
            during or after Executive's Work or employment, such further acts as
            may be necessary or desirable to transfer, perfect, and defend
            Employer's ownership of the Work Product, including by (i)
            executing, acknowledging, and delivering any requested affidavits
            and documents of assignment and conveyance, (ii) obtaining and/or
            aiding in the enforcement of copyrights, trade secrets, and (if
            applicable) patents with respect to the Work Product in any
            countries, and (iii) providing testimony in connection with any
            proceeding affecting the rights of Employer in any Work Product. In
            the event that Executive is required to perform the services
            described in this paragraph after his employment with the Employer
            has terminated, Executive will be reasonably compensated for actual
            time spent providing such services.

                  Executive warrants that his Work for Employer does not and
            will not in any way conflict with any obligations Executive may have
            with any prior employer or contractor. Executive also agrees to
            develop all Work Product in a manner that avoids even the appearance
            of infringement of any third party's intellectual property rights.

      e.    Survival of Covenants. Each covenant of Executive set forth in this
            Section 4 shall survive the termination of this Agreement and
            Executive's employment for any reason and shall be construed as an
            agreement independent of any other

                                       6
<PAGE>

                                                                  EXECUTION COPY

            provision of this Agreement, and the existence of any claim or cause
            of action of Executive against Employer whether predicated on this
            Agreement or otherwise shall not constitute a defense to the
            enforcement by Employer of said covenant. No modification or waiver
            of any covenant contained in this Section 4 shall be valid unless
            such waiver or modification is approved in writing by the Board.

      f.    Remedies. In the event of a breach, violation or threatened breach
            or violation by Executive of any provision of this Section 4,
            Executive agrees that Employer shall be entitled to relief by
            temporary restraining order, temporary injunction, or permanent
            injunction or otherwise, in addition to other legal and equitable
            relief to which it may be entitled, including any and all monetary
            damages which Employer may incur as a result of said breach,
            violation or threatened breach or violation. Employer may pursue any
            remedy available to it concurrently or consecutively in any order as
            to any breach, violation, or threatened breach or violation, and the
            pursuit of one of such remedies at any time will not be deemed an
            election of remedies or waiver of the right to pursue any other of
            such remedies as to such breach, violation, or threatened breach or
            violation, or as to any other breach, violation, or threatened
            breach or violation.

                  Executive hereby acknowledges that Executive's agreement to be
            bound by the protective covenants set forth in this Section 4 was a
            material inducement for Employer entering into this Agreement,
            agreeing to pay Executive the compensation and benefits set forth
            herein, and providing Executive with Employer's Confidential
            Information and other proprietary information.

5.    Termination. The employment relationship between Executive and Employer
      created hereunder shall terminate before the expiration of the stated term
      of this Agreement upon the occurrence of any one of the following events:

      a.    Death or Permanent Disability. The employment relationship shall be
            terminated effective on the death or permanent disability of
            Executive. However, Executive shall be entitled to leaves of absence
            from Employer in accordance with the policy of Employer generally
            applicable to executives for illness or temporary disabilities for a
            period or periods not exceeding three (3) months in any calendar
            year, and his status as an Executive shall continue during such
            periods. However, if Executive qualifies for short-term disability
            payments under Employer's standard short-term disability plan during
            such leave, Executive shall apply to receive such short-term
            disability payments. Employer shall supplement such short term
            disability payments so that Executive receives such monthly amounts
            when combined with the short term disability payments to equal
            Executive's monthly compensation as set forth in Section 3(a) of
            this Agreement. If Executive is incapacitated due to physical or
            mental illness and such incapacity prevents Executive from
            satisfactorily performing his duties for Employer on a full time
            basis for six (6) months or more, Executive shall be deemed to have
            experienced a permanent disability and Employer may terminate this
            Agreement upon thirty (30) days written notice. Upon the death or
            permanent disability of

                                       7
<PAGE>

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            Executive, Executive or his estate (as the case may be) shall be
            entitled to compensation as provided in Sections 6(a), (b) and (c)
            below.

      b.    Termination for Cause. The following events, which for purposes of
            this Agreement shall constitute "Cause" for termination:

            i.    Any act of fraud, misappropriation or embezzlement by
                  Executive with respect to any aspect of Employer's business;

            ii.   The breach by Executive of any provision of Sections 1, 2 or 4
                  of this Agreement (including but not limited to a refusal to
                  follow lawful directives of the Board, the Chief Executive
                  Officer or their designees which are not inconsistent with the
                  duties of Executive's position and the provisions of this
                  Agreement);

            iii.  The conviction of Executive by a court of competent
                  jurisdiction of a felony or of a crime involving moral
                  turpitude;

            iv.   The intentional and material breach by Executive of any
                  non-disclosure or non-competition/non-solicitation provision
                  of any agreement to which Executive and Employer or any of its
                  subsidiaries are parties;

            v.    The intentional failure by Executive to perform in all
                  material respects his duties and responsibilities (other than
                  as a result of death or disability) and the failure of
                  Executive to cure the same in all material respects within
                  fifteen (15) days after written notice thereof from the Chief
                  Executive Officer or his designee;

            vi.   The illegal use of drugs by Executive during the term of this
                  Agreement that, in the determination of the Board,
                  substantially interferes with Executive's performance of his
                  duties hereunder;

            vii.  Acceptance of employment with any other employer except upon
                  written permission of the Board; or

            viii. The breach by Executive of his fiduciary duty to Employer.

            Employer shall provide Executive with a written notice of
            termination, which can be provided on the date of termination. In
            the event Executive's employment is terminated for Cause hereunder,
            Executive shall be entitled to the compensation provided in Sections
            6(a), (b) and (c) below.

      c.    Termination by Employer with Notice. Employer may terminate this
            Agreement without Cause at any time upon thirty (30) days written
            notice to Executive, during which period Executive shall not be
            required to perform any services for Employer other than to assist
            Employer in training his successor and generally

                                       8
<PAGE>

                                                                  EXECUTION COPY

            preparing for an orderly transition; PROVIDED, HOWEVER, that
            Executive shall be entitled to compensation upon such termination as
            provided in Section 6(a), (b), (c) and (d) below.

      d.    Termination by Executive For Good Reason. Executive shall be
            entitled to terminate this Agreement at any time for Good Reason.
            For purposes of this Agreement, "Good Reason" shall mean the
            occurrence of any of the following events:

            i.    Without his express written consent, the assignment of
                  Executive to a position functionally inferior to his position
                  with Employer on the date of this Agreement;

            ii.   The change of the location where Executive is based to a
                  location which is more than fifty (50) miles from his present
                  location without Executive's written consent; or

            iii.  A reduction by Employer in Executive's base salary as in
                  effect on the date hereof, unless such reduction is a
                  proportionate reduction of the compensation of Executive and
                  all other senior officers of Employer as a part of a
                  company-wide effort to enhance the financial condition of
                  Employer.

            Executive shall give Employer thirty (30) business days notice of an
            intent to terminate this Agreement for "Good Reason" as defined in
            this Section 5(d), and provide Employer with ten (10) business days
            after receipt of such notice from Executive to remedy the alleged
            violation of Subsections 5(d)(i), (ii) or (iii). In the event
            Executive terminates his employment for Good Reason hereunder,
            Executive shall be entitled to the compensation provided in Sections
            6(a), (b), (c) and (d) below.

6.    Compensation Upon Termination. Upon the termination of Executive's
      employment under this Agreement before the expiration of the stated term
      hereof for any reason, Executive shall be entitled to:

      a.    the salary earned by him before the effective date of termination as
            provided in Section 3(a) hereof (including salary payable during any
            applicable notice period), prorated on the basis of the number of
            full days of service rendered by Executive during the salary payment
            period to the effective date of termination;

      b.    any accrued, but unpaid, vacation benefits; and

      c.    any previously authorized but unreimbursed business expenses.

      If Executive's employment hereunder terminates because of the death or
      permanent disability of Executive, Executive shall be entitled to the
      lesser of (i) the balance of

                                       9
<PAGE>

                                                                  EXECUTION COPY

      Executive's base salary (as set forth in Section 3(a) above), if any,
      remaining in the term of this Agreement or (ii) twelve (12) months' base
      salary. In addition, in the event of Executive's permanent disability,
      Executive shall receive continued medical insurance benefits, at
      Employer's expense, for a period of twelve (12) months from the date of
      the termination of this Agreement. All amounts that may be due to
      Executive under this Section 6 or Section 5(a) shall be paid to him or his
      administrators, personal representatives, heirs and legatees, as may be
      appropriate.

      Notwithstanding the foregoing, with respect to any stock options or other
      plans or programs in which Executive is participating at the time of
      termination of his employment, Executive's rights and benefits under each
      such plan shall be determined in accordance with the terms, conditions,
      and limitations of the plan and any separate agreement executed by
      Executive which may then be in effect.

      d.    Additional Compensation and Benefits Upon Termination Without Cause,
            With Notice or for Good Reason. If Executive's employment hereunder
            terminates without "Cause" (as defined in Section 5(b) above), with
            notice pursuant to Section 5(c) above, or for "Good Reason" (as
            defined in Section 5(d) above) Employer shall, upon Executive's
            execution of a general release of claims in favor of Employer,
            provide to Executive in addition to the amounts set forth in
            Subsections 6(a), 6(b) and 6(c) above:

            i.    a cash payment equal to the greater of (y) Executive's base
                  salary (as set forth in Section 3(a) above), if any, remaining
                  in the term of Executive's Agreement or (z) twelve (12)
                  months' base salary;

            ii.   a cash payment equal to the average annual cash bonus paid to
                  Executive for the two (2) full bonus plan years immediately
                  preceding the date Executive's employment terminates; and

            iii.  continued medical insurance benefits, at Employer's expense,
                  for a period of twelve (12) months.

            Employer shall pay the severance amounts referenced in Section
            6(d)(i) in equal semi-monthly installments for a period of twelve
            (12) months ("Severance Period") in accordance with Employer's
            regular payroll practices. Executive shall have no obligation to
            mitigate any severance obligation of Employer under this Agreement
            by seeking new employment. Employer 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. The provisions of Sections 4, 5 and
            6 hereof shall survive the termination of the employment
            relationship hereunder and this Agreement.

            Notwithstanding the foregoing, with respect to any stock options or
            other plans or programs in which Executive is participating at the
            time of termination of his employment, Executive's rights and
            benefits under each such plan shall be

                                       10
<PAGE>

                                                                  EXECUTION COPY

            determined in accordance with the terms, conditions, and limitations
            of the plan and any separate agreement executed by Executive which
            may then be in effect.

      e.    If, during the Severance Period, Executive is in breach of his
            post-employment covenants contained in Section 4 of this Agreement,
            Employer shall not be obligated to pay any severance payments
            referenced herein, Employer's severance obligations shall terminate
            and expire, and Employer shall have no further obligations to
            Executive hereunder from and after the date of such breach and shall
            have all other rights and remedies available under this Agreement or
            any other agreement and at law or in equity.

7.    Compensation Upon Change in Control.

      a.    For purposes of this Agreement, a "Change in Control" of Employer
            shall be deemed to have occurred at such time as:

            i.    any "person" (as the term is used in Sections 13(d) and 14(d)
                  of the Securities Exchange Act of 1934, as amended (the
                  "Exchange Act")) is or becomes the "beneficial owner" (as
                  defined in Rule 13d-3 under the Exchange Act), directly or
                  indirectly, of voting securities of Employer representing more
                  than 50% of Employer's outstanding voting securities or rights
                  to acquire such securities except for any voting securities
                  issued or purchased under any employee benefit plan of
                  Employer or its subsidiaries; or

            ii.   individuals who constitute the Board on the date hereof (the
                  "Incumbent Board") cease for any reason to constitute at least
                  a majority thereof, provided that any person becoming a
                  director subsequent to the date hereof whose election was
                  approved by a vote of at least three-quarters of the directors
                  comprising the Incumbent Board, or whose nomination for
                  election by Employer's stockholders was approved by a
                  Nominating Committee solely composed of members which are
                  Incumbent Board members, shall be, for purposes of this clause
                  (ii), considered as though he were a member of the Incumbent
                  Board; or

            iii.  a plan of reorganization, merger, consolidation, sale of all
                  or substantially all of the assets of Employer or similar
                  transaction occurs or is effectuated in which Employer is not
                  the resulting entity; provided, however, that such an event
                  listed above will be deemed to have occurred or to have been
                  effectuated upon receipt of all required regulatory approvals
                  not including the lapse of any required waiting periods; or

            iv.   the Board determines in its sole discretion that a Change in
                  Control has occurred.

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<PAGE>

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      b.    Benefits Upon Change in Control.

            i.    Severance Benefits. If Executive's employment with Employer is
                  terminated (A) by Employer (or by the acquiring or successor
                  business entity following a Change of Control) other than for
                  "Cause" (as defined in Section 5(b) above), death or permanent
                  disability, or (B) by Executive for "Good Reason" (as defined
                  in Section 5(d) above) in either event within a period
                  beginning ninety (90) days before, and ending one (1) year
                  after, the date of a Change of Control (the "Change Period"),
                  Executive shall receive a cash severance benefit in an amount
                  equal to the sum of 250% of Executive's average annual cash
                  base salary and bonus in effect for the two (2) years
                  immediately preceding the Change of Control.

                  In addition, for twenty four (24) months following the date of
                  termination of Executive's employment in circumstances in
                  which a severance payment is due under this Section 7(b),
                  Employer shall provide Executive, at Employer's expense,
                  health and other welfare benefits that are not less favorable
                  to Executive than those to which he was entitled immediately
                  prior to the Change in Control. Provided however, Employer
                  shall have no obligation to provide Executive with any
                  severance compensation under this Section 7 if Executive is in
                  breach or violation of any of the covenants contained in
                  Section 4, which are applicable to Executive at the time of
                  the severance payment.

            ii.   Form of Payment. The amount of the severance benefit provided
                  in Section 7(c)(i) hereof shall be paid to Executive in a lump
                  sum within thirty (30) days of Executive's termination, unless
                  such payment must be delayed so as to avoid classification as
                  "deferred compensation" under Section 409A of the Internal
                  Revenue Code of 1986, as amended (the "Code").

            iii.  Notwithstanding the other provisions of this Section 7, in the
                  event that:

                  (aa)  the aggregate payments or benefits to be made or
                        afforded to Executive, which are deemed to be parachute
                        payments as defined in Code Section 280G or any
                        successor thereof, (the "Termination Benefits") would be
                        deemed to include an "excess parachute payment" under
                        Code Section 280G; and

                  (bb)  if such Termination Benefits were reduced to an amount
                        (the "Non-Triggering Amount"), the value of which is one
                        dollar ($1.00) less than an amount equal to three (3)
                        times Executive's "base amount," as determined in
                        accordance with Code Section 280G and the Non-Triggering
                        Amount less the product of the marginal rate of any
                        applicable state and federal income tax and the
                        Non-Triggering Amount would be greater than the
                        aggregate

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<PAGE>

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                        value of the Termination Benefits (without such
                        reduction) minus (a) the amount of tax required to be
                        paid by Executive thereon by Code Section 4999 and
                        further minus (b) the product of the Termination
                        Benefits and the marginal rate of any applicable state
                        and federal income tax, then the Termination Benefits
                        shall be reduced to the Non-Triggering Amount. The
                        allocation of the reduction required hereby among the
                        Termination Benefits shall be determined by Executive.

            iv.   Notwithstanding the foregoing, with respect to any stock
                  options or other plans or programs in which Executive is
                  participating at the time of termination of his employment,
                  Executive's rights and benefits under each such plan shall be
                  determined in accordance with the terms, conditions, and
                  limitations of the plan and any separate agreement executed by
                  Executive which may then be in effect.

      c.    No Mitigation or Offset. Executive shall not be required to mitigate
            the amount of any payment provided for in this Section 7 of this
            Agreement by seeking other employment or otherwise. Employer shall
            not be entitled to set off or reduce any severance payments owed to
            Executive under this Section 7 by the amount of earnings or benefits
            received by Executive in future employment.

8.    Term. This Agreement shall be binding and enforceable against Employer and
      Executive immediately upon its execution by both such parties. The stated
      term of this Agreement and the employment relationship created hereunder
      shall begin on December 20, 2004, and shall remain in effect for two (2)
      years thereafter, unless sooner terminated in accordance with Section 5
      hereof (the "Initial Employment Term"). This Agreement shall be
      automatically renewed for successive one (1) year terms after the Initial
      Employment Term ("Renewal Term"), unless terminated by either party at
      least thirty (30) days prior to the end of the Initial Employment Period
      or any Renewal Term.

      Notwithstanding any provision of this Agreement to the contrary, the
      parties' respective rights and obligations under Sections 3, 4, 6 and 7
      shall survive any termination or expiration of this Agreement or the
      termination of Executive's employment for any reason whatsoever.

9.    Remedies. Each of the parties to this Agreement will be entitled to
      enforce its rights under this Agreement, specifically, to recover damages
      by reason of any breach of any provision of this Agreement and to exercise
      all other rights existing in its favor. Notwithstanding Section 10 below,
      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 may in its sole discretion apply to any court of law or
      equity of competent jurisdiction for specific performance and/or
      injunctive relief in order to enforce or prevent any violations of the
      provisions of this Agreement.

                                       13
<PAGE>

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10.   Arbitration. Any controversy or claim arising out of or relating to this
      Agreement or relating to Executive's rights, compensation and
      responsibilities as an Executive, excluding any claims based on violations
      of Section 4, shall be determined by arbitration in Dallas County, Texas
      in accordance with the rules of the American Arbitration Association then
      in effect. The arbitration shall be submitted to a single arbitrator
      selected in accordance with the American Arbitration Association's
      procedures then in effect for the selection of employment arbitrators. The
      parties shall split the cost of the arbitrator. The arbitrator shall have
      the authority to award any remedy that could be awarded by a court of
      competent jurisdiction. Each party shall bear its own expenses and fees
      associated with such arbitration. This Section 10 shall survive
      termination of this Agreement for any reason.

11.   Non-Disparagement. Executive and Employer agree not to make any statements
      that disparage the reputation of (i) Employer, its products, services or
      employees, or (ii) Executive. Executive and Employer further acknowledge
      and agree that any breach or violation of this non-disparagement provision
      shall entitle Executive or Employer to seek injunctive relief to prevent
      any future breaches of this provision and/or to sue the other party on
      this Agreement for the immediate recovery of any damages caused by such
      breach. For purposes of this provision, Employer's obligation shall be
      limited to the Executive Committee of the Board and executives who are
      members of the Employer's Senior Policy Committee.

12.   Assignment. This Agreement is personal to Executive and may not be
      assigned in any way by Executive without the prior written consent of
      Employer. This Agreement shall not be assignable or delegable by Employer,
      other than to an affiliate of Employer; provided, however, that in the
      event of the acquisition, merger or consolidation of Employer, the
      obligations of Employer hereunder shall be binding upon the surviving or
      resulting entity of such acquisition, merger or consolidation. The rights
      and obligations under this Agreement shall inure to the benefit of and
      shall be binding upon the heirs, legatees, administrators and personal
      representatives of Executive and upon the successors, representatives and
      assigns of Employer.

13.   Severability and Reformation. The parties hereto intend all provisions of
      this Agreement to be enforced to the fullest extent permitted by law. If,
      however, any provision of this Agreement is held to be illegal, invalid,
      or unenforceable under present or future law, such provision shall be
      fully severable, and this Agreement shall be construed and enforced as if
      such illegal, invalid, or unenforceable provision were never a part
      hereof, and the remaining provisions shall remain in full force and effect
      and shall not be affected by the illegal, invalid, or unenforceable
      provision or by its severance. In lieu of such illegal, invalid or
      unenforceable provision, there shall be added automatically as a part of
      this Agreement a legal, valid and enforceable provision as similar in
      terms to such illegal, invalid or unenforceable provision as may be
      possible, and Employer and Executive hereby request the court to whom
      disputes relating to this Agreement are submitted to reform the otherwise
      unenforceable covenant in accordance with this Section 13.

                                       14
<PAGE>

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14.   Notices. All notices and other communications required or permitted to be
      given hereunder shall be in writing and shall be deemed to have been duly
      given if delivered personally, mailed by certified mail (return receipt
      requested) or sent by overnight delivery service, cable, telegram,
      facsimile transmission or telex to the parties at the following addresses
      or at such other addresses as shall be specified by the parties by like
      notice:

            If to Employer:   Texas Capital Bancshares, Inc.
                              2100 McKinney Avenue, Suite 900
                              Dallas, Texas 75201
                              Fax: (214) 932-6609
                              Attn: Chairman

            If to Executive:  George F. Jones, Jr.

                              _________________________
                              _________________________
                              _________________________

      Notice so given shall, in the case of notice so given by mail, be deemed
      to be given and received on the fourth calendar day after posting, in the
      case of notice so given by overnight delivery service, on the date of
      actual delivery and, in the case of notice so given by cable, telegram,
      facsimile transmission, telex or personal delivery, on the date of actual
      transmission or, as the case may be, personal delivery.

15.   Further Acts. Whether or not specifically required under the terms of this
      Agreement, each party hereto shall execute and deliver such documents and
      take such further actions as shall be necessary in order for such party to
      perform all of his or its obligations specified herein or reasonably
      implied from the terms hereof.

16.   Publicity and Advertising. Executive agrees that Employer may use his
      name, picture, or likeness for any advertising, publicity or other
      business purpose at any time, during the term of this Agreement and may
      continue to use materials generated during the term of this Agreement for
      a period of six months thereafter. Such use of Executive's name, picture,
      or likeness shall not be deemed to result in any invasion of Executive's
      privacy or in violation of any property right Executive may have; and
      Executive shall receive no additional consideration if his name, picture
      or likeness is so used. The Executive further agrees that any negatives,
      prints or other material for printing or reproduction purposes prepared in
      connection with the use of his name, picture or likeness by Employer shall
      be and are the sole property of Employer.

17.   GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
      ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT GIVING EFFECT TO
      THE CONFLICT OF LAWS (RULES) OR CHOICE OF LAWS (RULES) THEREOF.

18.   Venue. The exclusive venue for all suits or proceedings arising from or
      related to this Agreement shall be in a court of competent jurisdiction in
      Dallas County, Texas.

                                       15
<PAGE>

                                                                  EXECUTION COPY

19.   Entire Agreement and Amendment. This Agreement contains the entire
      understanding and agreement between the parties, and supersedes any other
      agreement between Executive and Employer, whether oral or in writing, with
      respect to the subject matter hereof, except that nothing herein shall
      affect the rights of Executive and Employer under that certain
      Indemnification Agreement dated December 20, 2004 or any existing
      confidentiality or non-disclosure agreement. This Agreement may not be
      altered, amended, or rescinded, nor may any of its provisions be waived,
      except by an instrument in writing signed by both parties hereto or, in
      the case of an asserted waiver, by the party against whom the waiver is
      sought to be enforced. Any modification of this Agreement may only be
      signed on behalf of Employer by the President of Employer and approved by
      the Board.

20.   Counterparts. This Agreement may be executed in counterparts, with the
      same effect as if both parties had signed the same document. All such
      counterparts shall be deemed an original, shall be construed together and
      shall constitute one and the same instrument.

                           [signature page to follow]

                                       16
<PAGE>

                                                                  EXECUTION COPY

      IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date indicated in Section 8.

                                     EMPLOYER:

                                     TEXAS CAPITAL BANCSHARES, INC.

                                     By:   /s/ JOSEPH M. GRANT
                                           ------------------------------

                                     Its:  Chairman and Chief Executive Officer
                                           ------------------------------------

                                     EXECUTIVE:

                                      /s/ GEORGE F. JONES, JR.
                                     ------------------------------
                                     George F. Jones, Jr.

                                              17

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