Document:

exv10w1

 

Exhibit 10.1

SEPARATION AGREEMENT AND RELEASE

     This Separation Agreement and Release (the “Agreement”) is entered into between the MetroBank,
N.A., (“the Bank”) and Allen Cournyer (“Executive”). Executive and the Bank agree as follows:

1. Definitions

     (a) “Cournyer” or “Executive” as used in this Agreement means Allen Cournyer, himself, his
spouse (if any), and his family members, his heirs, devisees, legatees, executors, administrators,
successors, assignees, agents, representatives, businesses, insurers, subrogees, attorneys and all
persons or entities claiming through Cournyer and Cournyer’s spouse (if any), family members,
heirs, devisees, legatees, executors, administrators, successors, assigns, agents, representatives,
businesses, insurers, subrogees and attorneys.

     (b) “MetroBank, N.A.” or “the Bank” as used in this Agreement means MetroBank, N.A., and any
of MetroBank, N.A.’s successors, assigns, businesses, affiliates, sister companies, parent
companies, subsidiaries, divisions, partnerships, limited partnerships, partners, joint ventures,
predecessors, officers, directors, trustees, conservators, employees, agents, insurance carriers,
contractors, representatives, shareholders, attorneys and all persons or entities claiming through
its successors, assigns, businesses, affiliates, sister companies, parent companies, subsidiaries,
divisions, partnerships, limited partnerships, partners, joint ventures, predecessors, officers,
directors, trustees, conservators, employees, agents, insurance carriers, contractors,
representatives, shareholders and attorneys.

2. Effective Date. The Agreement will become final, binding and enforceable on the eighth day
after Executive signs the Agreement, assuming that the Executive does not revoke the Agreement
during the seven (7) day revocation period (the “Effective Date”).

3. Resignation: Pursuant to the resignation letter attached as Exhibit “A”, Executive has resigned
from employment with the Bank. The parties shall treat Executive’s resignation as effective
January 27, 2006 (the “Separation Date”).

4. Consideration: In consideration for Executive’s execution of this Agreement, Executive shall be
entitled to the following:

     (a) TWO HUNDRED AND SEVEN THOUSAND DOLLARS AND NO/100 ($207,000.00), minus applicable
statutory and/or voluntary withholdings, which is the equivalent of one year and one month’s salary
at Executive’s current rate of pay, paid to Executive as continued salary, semi-monthly for a
period of thirteen 13 months from the Separation Date;

     (b) a lump sum payment of NINETY-ONE THOUSAND FIVE HUNDRED AND NO/100 ($91,500.00), minus
applicable statutory and/or voluntary withholdings;

     (c) provided that the Executive makes a timely election of continuation (“COBRA”) coverage
under the Bank’s medical plan, payment by the Bank of the COBRA premiums for Executive until the
earlier of (i) the expiration of one year following the Separation Date, or (ii)

 

 

Executive’s commencement of full-time employment with a new employer. Executive shall pay all
COBRA premiums for any dependent coverage that Executive may elect,

     (d) payment by the Bank of the premiums for continued coverage for the Executive under the
Bank’s life insurance plan until the earlier of (i) the expiration of one year following the
Separation Date, or (ii) Executive’s commencement of full-time employment with a new employer.
Executive shall pay all premiums for any dependent coverage that Executive may elect; and

     (e) a lump sum cash payment, in recognition of the Executive’s 2,000 unvested stock options,
equal to (i) the difference between (A) the closing price of a share of MetroCorp Bancshares, Inc.
common stock on The Nasdaq Stock Market, Inc, on the last trading day immediately prior to the date
this Agreement is executed and (B) $24.04, the per share exercise price of your unvested stock
options, multiplied by (ii) 2,000, minus applicable statutory and/or voluntary withholdings.

     Executive acknowledges that these benefits (hereinafter collectively referred to as the
“Separation Benefits”) are monies and benefits to which Executive is not entitled, and that
Executive has been paid all wages, bonuses, and commissions owed to Executive. The Separation
Benefits will be paid (or commence to be paid) to Executive or available to Executive in accordance
with Paragraph 4 upon the Effective Date.

5. Release: For the consideration set forth in Paragraph 4, the Separation Benefits to which
Executive is not otherwise entitled, and the sufficiency of which Executive acknowledges, Executive
hereby KNOWINGLY AND VOLUNTARILY RELEASES AND DISCHARGES THE BANK from any and all, grievances,
claims, demands, and/or causes of action whatsoever, presently known or unknown, that are based
upon facts occurring on or prior to the date of Executive’s signing of this Agreement, including,
but not limited to, any matter or action related to your employment with, separation from, and/or
affiliation with the Bank, including: (a) any claims under any federal, state, or local statute,
regulation or ordinance, such as those under the Texas Commission on Human Rights Act, Chapter 451
of the Texas Labor Code, the Texas Payday Law, Title VII of the Civil Rights Act of 1964, the
Family and Medical Leave Act, the Americans with Disabilities Act, the Employee Retirement Income
Security Act, and the Civil Rights Act of 1991, the Equal Pay Act of 1963, the Fair Labor Standards
Act, §1981 of the Civil Rights Act of 1866, Executive Order 11246, Veteran’s Employment and
Reemployment Rights Act, Uniformed Services Employment and Reemployment Rights Act, the Worker
Adjustment Retraining and Notification Act, Rehabilitation Act, Sarbanes Oxley, Age Discrimination
in Employment Act, as amended by the Older Worker Benefit Protection Act; (b) any tort, contract,
or other common law claims, all claims for intentional infliction of emotional distress, matters or
actions related to your employment and/or affiliation with, or termination and/or separation from,
the Bank, excepting only claims under the unemployment compensation laws; (c) any and all claims
for past or future employment benefits, including, but not limited to, wages, bonuses, vacation
pay, medical or dental insurance coverage, short or long term disability benefits, and/or other
benefits which may accrue or which have accrued after the Separation Date as a result of your
employment and/or affiliation with, and/or termination and/or separation from the Bank.

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6. Confidential and Proprietary Information: Executive acknowledges that, during Executive’s
employment with the Bank, Executive had access to confidential and proprietary business information
that constitutes valuable and unique property of the Bank. For purposes of this Agreement,
“Confidential Information” means and includes the Bank’s confidential and/or proprietary
information and/or trade secrets, including those of any subsidiaries, that have been and/or will
be developed or used and that cannot be obtained readily by third parties from outside sources.
Confidential Information includes, but is not limited to, the: information regarding past, current
and prospective customers and investors and business affiliates, employees, contractors, and the
industry not generally known to the public; strategies, methods, books, records, and documents;
technical information concerning products, equipment, services, and processes; procurement
procedures, pricing, and pricing techniques; including contact names, services provided, pricing,
type and amount of services used, financial data; pricing strategies and price curves; positions;
plans or strategies for expansion or acquisitions; budgets; research; financial and sales data;
trading methodologies and terms; communications information; evaluations, opinions and
interpretations of information and data; marketing and merchandising techniques; electronic
databases; models; specifications; computer programs; contracts; bids or proposals; technologies
and methods; training methods and processes; Bank structure; personnel information; payments or
rates paid to consultants or other service providers; and other such confidential or proprietary
information. Executive acknowledges that the Bank’s business is highly competitive, that this
Confidential Information constitutes a valuable, special and unique asset of the Bank, and that
protection of such Confidential Information against unauthorized disclosure and use is of critical
importance to the Bank.

Executive acknowledges that disclosure of this information would cause substantial and irreparable
harm, loss of goodwill, and injury to the Bank. Executive agrees that Executive will not directly
or indirectly disclose any confidential or proprietary information or documents relating to the
Bank. In addition, Executive agrees to return all of the Bank’s property.

7. Covenant Not to Compete: The Executive agrees that, for the period beginning on the Separation
Date and for one (1) year thereafter (the “Non-Competition Period”), the Executive will not, in any
capacity, directly or indirectly:

(a) compete or engage, anywhere in the geographic area of Harris County (the “Market Area”),
in a business similar to that of the Bank, i.e., Asian-centric banking (“the Bank’s
Business”);

(b) take any action to invest in, own, manage, operate, control, participate in, be employed
or engaged by or be connected in any manner with any partnership, corporation or other
business or entity engaging in the Bank’s Business anywhere within the Market Area.
Notwithstanding the foregoing, the Executive is permitted hereunder to own, directly or
indirectly, up to one percent (1%) of the issued and outstanding securities of any publicly
traded financial institution conducting business in the Market Area;

(c) call on, service or solicit competing business from former customers of the Bank; or

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(d) call on, solicit or induce any employee of the Bank whom the Executive had contact with,
knowledge of, or association with to terminate employment from the Bank, and will not assist
any other person or entity in such activities.

     (e) The Executive acknowledges that the restrictions imposed by this Agreement are legitimate,
reasonable and necessary to protect the Bank and its confidential information. The Executive
acknowledges that the scope and duration of the restrictions contained herein are reasonable in
light of the time that the Executive has been engaged in the business of the Bank and the
Executive’s relationship with the customers of the Bank. The Executive further acknowledges that
the restrictions contained herein are not burdensome to the Executive in light of the consideration
paid therefore and the other opportunities that remain open to the Executive. Moreover, the
Executive acknowledges that Executive has and will have other means available to him for the
pursuit of his livelihood after the Separation Date.

8. Injunctive Relief. The Executive acknowledges and agrees that the breach of any of the
covenants made by the Executive in this Agreement would cause irreparable injury to the Bank, which
could not sufficiently be remedied by monetary damages; and, therefore, that the Bank shall be
entitled to obtain such equitable relief as declaratory judgments; temporary, preliminary and
permanent injunctions, without posting of any bond, and order of specific performance to enforce
those covenants or to prohibit any act or omission that constitutes a breach thereof. If the Bank
must bring suit to enforce this Agreement, the prevailing party shall be entitled to recover its
attorneys’ fees and costs related thereto.

9. Tolling. In the event that the Bank shall file a lawsuit in any court of competent jurisdiction
alleging a breach of the non-disclosure, non-solicitation or non-competition provisions of this
Agreement by the Executive, then any time period set forth in this Agreement including the time
periods set forth above, shall be deemed tolled as of the time such lawsuit is filed and shall
remain tolled until such dispute finally is resolved either by written settlement agreement
resolving all claims raised in such lawsuit or by entry of a final judgment in such lawsuit and the
final resolution of any post-judgment appellate proceedings.

10. Non-admission: This Agreement is not an admission by either Executive or the Bank of any
wrongdoing or liability.

11. Cooperation. Executive agrees that Executive will provide will provide reasonable assistance
to the Bank with the transition to a new Vice-President of Information Technology. Executive
further agrees that Executive will provide reasonable cooperation to the Bank at reasonable and
mutually agreeable times in response to requests made by the Bank in matters relating to internal
investigations, external investigations, and/or judicial or administrative proceedings arising out
of or relating in any way to any facts or events occurring prior to the Executive’s Separation
Date. This cooperation is an integral part of this Agreement, and Executive will not be
compensated for such cooperation beyond that provided for in Paragraph 5 above, other than
reimbursement for any reasonable expenses Executive may incur in connection with such cooperation.

12. Non-Disparagement. Executive agrees that Executive will act at all times hereafter in a manner
consistent with the best interests of the Bank with respect to the Bank’s Board of

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Directors, employees, agents, and third parties, and will not engage in any act or make any
comments (written or oral), which are intended, or reasonably may be expected, to harm the missions
and reputations or other interests of the Bank, its Board members, or its employees. Similarly,
the officers and directors of the Bank, and its Board of Directors, agree not to engage in any act
or make any comments (written or oral), which are intended, or reasonably may be expected, to harm
Executive’s reputation or employment prospects. Nothing in this Paragraph 12 of the Agreement
prevents the Executive or the Bank from engaging in any act (written or oral) that is necessary for
the Executive to respond to any request made by any governmental agency, or appear in any
proceedings before a court of law.

13. Twenty-one (21) Days to Consider and Seven (7) Days to Revoke: Executive acknowledges,
represents and agrees, that in compliance with the Older Worker’s Benefit Protection Act: (i)
Executive has been fully informed and is fully aware of Executive’s right to discuss any and all
aspects of this matter with an attorney of Executive’s choice; (ii) Executive has carefully read
and fully understand all of the provisions of this Agreement; and (iii) Executive has had up to and
including a full twenty-one (21) days within which to consider this Agreement before executing it
(or by executing this Agreement has knowingly and voluntarily elected to reduce this time period).
Executive further acknowledges, represents, and agrees, that for a period of seven (7) days
following the execution of this Agreement, Executive may revoke this Agreement by providing written
notice to Michelle Phung, Executive Vice President, and the Agreement shall not become effective or
enforceable until the revocation period has expired. If Executive revokes the Agreement, any and
all originals or copies of the Agreement must be returned to Ms. Phung at the time of revocation.
Executive acknowledges that if Executive revokes this Agreement within the seven (7) day period,
Executive will not be entitled to Separation Benefits. Executive accepts the terms of this
Agreement as fair and equitable under all the circumstances and voluntarily execute this Agreement.

14. Governing Law: This Agreement shall be determined and governed by the laws of the State of
Texas, without reference to conflicts of law principles.

15. Entire Agreement: This Agreement represents the complete agreement between Executive and the
Bank concerning the subject matter of this Agreement and supersedes all prior agreements or
understandings, written or oral.

16. Construction: The language of all parts of this Agreement shall in all cases be construed as a
whole, according to its fair meaning, and not strictly for or against any party.

17. Contractual Agreement: The parties agree that every provision of this Agreement is contractual
in nature, and that none of the provisions of this Agreement shall be treated as a mere recital.

18. Modification: No attempted modification or waiver of any of the provisions of this Agreement
shall be binding on either party unless in writing and signed by both Executive and the Bank’s
Chief Executive Officer. Each of the sections and provisions contained in this Agreement shall be
enforceable independently of every other section or provision of this Agreement, and the invalidity
or unenforceability of any section or provision shall not invalidate or render unenforceable any
other section or provision contained in this Agreement.

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MetroBank, N.A.

	 	     	 	                                   	             	 	 
	By:

	 	/s/ George Lee
	 	Date:
	 	January 27, 2006
	 

	 	 
	 	 	 	 
	 

	 	George Lee

Chief Executive Officer	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Allen Cournyer
	 	Date:
	 	January 27, 2006
	 

	 	 
	 	 	 	 
	 

	 	Allen Cournyer

Executive	 	 	 	 

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Exhibit 10.1

TEXAS CAPITAL BANCSHARES, INC.

2006 EMPLOYEE STOCK PURCHASE PLAN

ARTICLE I

ESTABLISHMENT OF THE PLAN

     Texas Capital Bancshares, Inc. (hereinafter referred to as “Bancshares”) hereby adopts and
establishes the Texas Capital Bancshares, Inc. 2006 Employee Stock Purchase Plan (the “Plan”)
effective February 1, 2006 upon the terms and conditions hereinafter stated.

ARTICLE II

PURPOSE OF THE PLAN

     The purpose of the Plan is to provide employees of Bancshares and its Subsidiaries (together
with Bancshares referred to herein as the “Company”) with an opportunity to purchase Common Stock
of Bancshares. It is the intention of the Company to have the Plan qualify as an “Employee Stock
Purchase Plan” under Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”) and
to qualify as a “noncompensatory plan” under Financial Accounting Standards Board (“FASB”)
Statement No. 123 (revised 2004). The provisions of the Plan shall, accordingly, be construed so
as to extend and limit participation in a manner consistent with the requirements of Section 423 of
the Code and FASB Statement No. 123 (revised 2004).

ARTICLE III

DEFINITIONS

     (a) “Account” shall mean the bookkeeping account maintained by the Company, or by a record
keeper on behalf of the Company, for a Participant pursuant to Article VII(a).

     (b) “Board” shall mean the Board of Directors of Bancshares.

     (c) “Code” shall mean the Internal Revenue Code of 1986, as amended. References herein to any
section of the Code shall also refer to any successor provision thereof.

     (d) “Committee” shall mean the committee that may be appointed by the Board to administer this
Plan pursuant to Article XII.

     (e) “Common Stock” shall mean the common stock of Bancshares.

     (f) “Compensation” shall mean an Eligible Employee’s regular earnings, overtime pay, sick pay
and vacation pay. Compensation also includes any amounts contributed as salary reduction

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contributions to a plan qualifying under Section 401(k) of the Code. Any other form of
remuneration is excluded from Compensation, including (but not limited to) the following:
commissions, incentive compensation, bonuses, prizes, awards, housing allowances, stock option
exercises, stock appreciation rights, restricted stock exercises, performance awards, auto
allowances, tuition reimbursement and other forms of imputed income.

     (g) “Contributions” shall mean all bookkeeping amounts credited to the Account of a
Participant pursuant to Article VII(a).

     (h) “Eligible Employee” shall mean any common law employee of the Company. Notwithstanding
the foregoing, “Eligible Employee” shall not include any employee who (i) has not as of the Grant
Date completed at least 90 days of continuous full-time employment with the Company, (ii) whose
customary employment is for less than 20 hours per week, or (iii) whose customary employment is for
not more than five months in a calendar year.

     (i) “Effective Date” shall mean February 1, 2006.

     (j) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

     (k) “Exercise Date” shall mean, with respect to an Offering Period, the last Trading Day of
that Offering Period.

     (l) “Fair Market Value” shall mean the value of Bancshares’ Common Stock on a particular date
as determined by the Committee in good faith; provided that, in the event the Common Stock becomes
registered under Section 12 of the Exchange Act, the Fair Market Value of Bancshares’ Common Stock
shall mean (i) the last reported sale price per share of Common Stock on such date, or (ii) in case
no such sale takes place on such date, the average of the closing and asking prices, in either case
as reported in the principal consolidated transaction reporting system with respect to securities
listed or admitted to trading on a national securities exchange or included for quotation on the
Nasdaq market, or (iii) if the Common Stock is not listed or admitted for trading or included for
quotation, the last quote price, or (iv) if the Common Stock is not so quoted, the average of the
high bid and low asked prices, in the over-the-counter market, as reported by the NASD Automatic
Quotation System or, (v) if such system is no longer in use, the principal other automated
quotations system that may then be in use or, (vi) if the Common Stock is not quoted by any such
organization, the average of the closing bid and asked prices as furnished by a professional market
maker making a market in the Common Stock as selected in good faith by the Committee.

If the relevant date is not a Trading Day, the determination shall be made as of the last Trading
Day of the Offering Period.

     (m) “Grant Date” shall mean the first Trading Day of each Offering Period.

     (n) “Offering Period” shall mean the six-consecutive month period commencing on each January 1
and July 1, unless such other period is provided by the Committee in accordance with Article V.
Notwithstanding the foregoing, the first Offering Period shall be a short Offering Period,
beginning on the date set forth in Article V below and ending June 30, 2006.

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     (o) “Option” shall mean the stock option to acquire Shares granted to a Participant pursuant
to Article VIII.

     (p) “Option Price” shall mean the per Share exercise price of an Option as determined in
accordance with Article VIII(b).

     (q) “Participant” shall mean an Eligible Employee who has elected to participate in this Plan
and who has filed a valid and effective Subscription Agreement to make Contributions pursuant to
Article VI.

     (r) “Plan” shall mean this Texas Capital Bancshares, Inc. 2006 Employee Stock Purchase Plan,
as amended from time to time.

     (s) “Reporting Participant” means a Participant who is subject to the reporting requirements
of Section 16.

     (t) “Rule 16b-3” shall mean Rule 16b-3 promulgated under Section 16.

     (u) “Section 16” shall mean Section 16 of the Exchange Act.

     (v) “Share” shall mean a share of Common Stock.

     (w) “Subscription Agreement” shall mean the written agreement filed by an Eligible Employee
with the Company pursuant to Article VI to participate in this Plan.

     (x) “Subsidiaries” shall mean any present or future corporation(s) which (i) would be a
“subsidiary corporation” of Texas Capital Bancshares, Inc. as that term is defined in Section 424
of the Code and is (ii) designated as a participating employer in the Plan by the Committee.

     (y) “Trading Day” shall mean a day on which public trading of securities occurs and as
reported in the principal consolidated reporting system referred to above, or if the Common Stock
is not listed or admitted to trading on a national market securities exchange or included for
quotation on the Nasdaq National Market, any business day.

ARTICLE IV

ELIGIBILITY

     (a) Any person who is an Eligible Employee as of the Grant Date of a given Offering Period
shall be eligible to participate in such Offering Period under the Plan, subject to the
requirements of Article VI and the limitations imposed by Section 423(b) of the Code.

     (b) All Eligible Employees granted any Option under this Plan shall have the same rights and
privileges, provided, however; that an Eligible Employee shall not be deemed to have different
rights and privileges merely because the amount of Common Stock that may be purchased by such
Eligible Employee under the Plan is determined on the basis of a uniform relationship to the
Eligible Employee’s Compensation, or the basic or regular rate of compensation of all employees.

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     (c) Notwithstanding anything else contained herein, a person who is otherwise an Eligible
Employee shall not be granted any Option or other right to purchase Shares under this Plan to the
extent it would, if exercised, cause the person to own “stock” (as such term is defined for
purposes of Section 423(b)(3) of the Code) possessing 5% or more of the total combined voting power
or value of all classes of stock of Bancshares. In addition, no Employee shall be granted an Option
which permits his rights to purchase Shares under the Plan (and under all employee stock purchase
plans of the Company qualified under Section 423 of the Code) to accrue at a rate which exceeds
$25,000 of the fair market value of the stock of Bancshares (determined at the time the right to
purchase such Stock is granted) for each calendar year during which such right is outstanding. For
this purpose, a right to purchase Shares accrues when it first becomes exercisable during the
calendar year. In determining whether the stock ownership of an Eligible Employee equals or
exceeds the 5% limit set forth above, the rules of Section 424(d) of the Code (relating to
attribution of stock ownership) shall apply.

ARTICLE V

OFFERING PERIODS

     The Plan shall be implemented by a series of Offering Periods of six (6) months duration (or,
such shorter duration as may be approved by the Committee), with new Offering Periods commencing on
or about the first Trading Day following January 1 and July 1 of each year (or at such other time
or times as may be determined by the Committee). Notwithstanding the foregoing, the initial
Offering Period shall commence on February 7, 2006 or, if later, the first Trading Day following
the completion of any filings or waiting periods required by the Exchange Act or any established
securities market on which the Shares are listed or traded.

     The Committee shall have the power to change the duration and/or the frequency of
Offering Periods with respect to future offerings without stockholder approval. Notwithstanding
anything to the contrary contained herein, the Committee shall have the power to terminate an
Offering Period at any time, even after the Offering Period has commenced, in the event it
determines that continuance of the Offering Period would cause the Plan to violate any applicable
law or the rules or requirements of any securities exchange or inter-dealer quotation system on
which the Common Stock is listed or traded. In the event the Committee terminates an Offering
Period pursuant to this Article V, any Contributions for such Offering Period may be credited to
such Participant’s Account for the next Offering Period or, if the Committee so elects in its sole
and absolute discretion, refunded to the Participants for such Offering Period

ARTICLE VI

PARTICIPATION

     An Eligible Employee may become a Participant in this Plan by completing a Subscription
Agreement on a form approved by and in a manner prescribed by the Committee. To become effective,
Subscription Agreements must be filed with the Committee (or such officer of the Company designated
by the Committee) prior to the next occurring Grant Date and must set forth

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the percentage or dollar amount of the Eligible Employee’s Compensation (which shall not be
less than 1% and not more than 10% of such Eligible Employee’s Compensation) to be credited to the
Participant’s Account as Contributions for each pay period. Subscription Agreements shall contain
the Eligible Employee’s authorization and consent to the Company’s withholding from his or her
Compensation the amount of his or her Contributions. A Subscription Agreement shall automatically
remain valid for subsequent Offering Periods until revoked by a Subscription Agreement filed
pursuant to Article VII(d) or otherwise terminated by the Participant pursuant to Article VII.

ARTICLE VII

PAYMENT OF CONTRIBUTIONS

     (a) The Company shall maintain on its books, or cause to be maintained by a record keeper, an
Account in the name of each Participant. The percentage of Compensation elected to be applied as
Contributions by a Participant shall be deducted from such Participant’s Compensation on each
payday during the period for payroll deductions set forth below and such payroll deductions shall
be credited to that Participant’s Account as soon as administratively practicable after such date.
A Participant may not make any additional payments to his or her Account. A Participant’s Account
shall be reduced by any amounts used to pay the Option Price of Shares acquired, or by any other
amounts distributed pursuant to the terms hereof.

     (b) Payroll deductions with respect to an Offering Period shall commence as of the first day
of the payroll period which coincides with or immediately follows the applicable Grant Date and
shall end on the last day of the payroll period which coincides with or immediately precedes the
applicable Exercise Date, unless sooner terminated by the Participant as provided in this Article
or the Committee as provided in Article V or until a Participant’s participation terminates
pursuant to Article XI.

     (c) A Participant may terminate his or her Contributions during an Offering Period by
completing and filing with the Committee (or such officer designated by the Committee), in such
form and on such terms as the Committee may prescribe, a written withdrawal form which shall be
signed by the Participant. Such termination shall be effective as soon as administratively
practicable after its receipt by the Committee (or such officer designated by the Committee).

     (d) A Participant may change the level of his or her Contributions by completing and filing
with the Committee (or such officer designated by the Committee), in such form and on such terms as
the Committee may prescribe, a new Subscription Agreement which shall be signed by the Participant.
The Subscription Agreement must set forth the percentage or dollar amount of the Eligible
Employee’s Compensation (which shall not be less than 1% and not more than 10% of such Eligible
Employee’s Compensation) to be credited to the Participant’s Account as Contributions for each pay
period. Any such changes must be filed with the Committee (or such officer designated by the
Committee) prior to the next occurring Grant Date. Such change shall be effective as of the next
occurring Grant Date. Any Subscription Agreement made pursuant to this Article VII(d) will revoke
any then outstanding Subscription Agreement.

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ARTICLE VIII

GRANT OF OPTION

     (a) On each Grant Date, each Eligible Employee who is a participant during that Offering
Period shall be granted an Option to purchase a number of Shares. The Option shall be exercised on
the Exercise Date. The number of Shares subject to the Option shall be determined by dividing the
Participant’s Account balance as of the applicable Exercise Date by the Option Price.

     (b) The Option Price per Share of the Shares subject to an Option shall be 95% of the Fair
Market Value of a Share on the applicable Exercise Date of each Offering Period, unless the
per-share amount of share issuance costs that would have been incurred to raise a significant
amount of capital by a public offering during the applicable Offering Period would justify a
purchase discount of more than 5%, as determined by the Committee, it is sole discretion.

     (c) Notwithstanding anything to the contrary contained herein, in no event shall the terms of
an Option be more favorable than those available to all holders of the Common Stock.

ARTICLE IX

EXERCISE OF OPTION

     Unless a Participant’s participation is terminated as provided in Article XI, his or her
Option to purchase Shares shall be exercised automatically on the Exercise Date for that Offering
Period, without any further action on the Participant’s part, and the maximum number of Shares
subject to such Option shall be purchased at the Option Price with the balance in such
Participant’s Account. The Committee, in its discretion and prior to the applicable Offering
Period, shall limit the purchase of fractional Shares under the Plan; provided that if any amount
(which is not sufficient to purchase a whole Share) remains in a Participant’s Account after the
exercise of his or her Option on the Exercise Date: (i) such amount shall be credited to such
Participant’s Account for the next Offering Period, if he or she is then a Participant; or (ii) if
such Participant is not a Participant in the next Offering Period, or if the Committee so elects,
such amount shall be refunded to such Participant as soon as administratively practicable after
such date.

ARTICLE X

DELIVERY

     As soon as administratively practicable after an Exercise Date, the Company shall deliver to
each Participant a certificate representing the Shares purchased upon exercise of his or her
Option. The Company may make available an alternative arrangement for delivery of Shares to a
recordkeeping service. The Committee, in its discretion, either may require or permit the
Participant to elect that such certificates be delivered to such recordkeeping service. The
Company may serve

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as the recordkeeping service. In the event Bancshares is required to obtain from any
commission or agency the authority to issue any such certificate, Bancshares will seek to obtain
such authority. Inability of Bancshares to obtain from any such commission or agency the authority
which counsel for Bancshares deems necessary for the lawful issuance of any such certificate shall
relieve Bancshares from liability to any Participant except to return to the Participant the amount
of the balance in his or her Account.

ARTICLE XI

TERMINATION OF EMPLOYMENT; CHANGE IN ELIGIBLE STATUS

     (a) Upon a Participant’s termination from employment with the Company for any reason or in the
event that a Participant is no longer an Eligible Employee or if the Participant elects to
terminate Contributions pursuant to Article VII, at any time prior to the last day of an Offering
Period in which he or she participates, such Participant’s Account shall be paid to him or her in
cash, or, in the event of such Participant’s death, paid to the person or persons entitled thereto
under Article XIII, and such Participant’s Option for that Offering Period shall be automatically
terminated.

     (b) A Participant’s termination of Plan participation precludes the Participant from again
participating in this Plan during that Offering Period. However, such termination shall not have
any effect upon his or her ability to participate in any succeeding Offering Period, provided that
the applicable eligibility and participation requirements are again met. A Participant’s
termination from Plan participation shall be deemed to be a revocation of that Participant’s
Subscription Agreement and such Participant must file a new Subscription Agreement to resume Plan
participation in any succeeding Offering Period.

     (c) For purposes of the Plan, the employment relationship shall be treated as continuing
intact while the individual is on sick leave or other leave of absence approved by the Company.
Where the period of leave exceeds ninety (90) days and the individual’s right to reemployment is
not guaranteed either by statute or by contract, the employment relationship will be deemed to have
terminated on the 91st day of such leave.

ARTICLE XII

ADMINISTRATION

     The Board, or such committee of the Board as is designated by the Board to administer the Plan
(the “Committee”), shall supervise and administer the Plan and shall have full power to adopt,
amend and rescind any rules deemed desirable and appropriate for the administration of the Plan and
not inconsistent with the Plan, to construe and interpret the Plan, and to make all other
determinations necessary or advisable for the administration of the Plan. At any time that there
is no Committee to administer the Plan, any references in this Plan to the Committee shall be
deemed to refer to the Board.

Page 7 of 15

 

     If necessary to satisfy the requirements of Rule 16b-3, membership on the Committee shall be
limited to those members of the Board who are “non-employee directors” as defined in Rule 16b-3.
In the event no member of the Committee is a “non-employee director” as defined in Rule 16b-3, the
Committee may appoint one or more of the other members of the Board to the Committee who are
“non-employee directors” as defined in Rule 16b-3 in substitution for the current members of the
Committee for purposes of satisfying the requirements of Rule 16b-3. The Committee shall select
one of its members to act as its Chairman. A majority of the Committee shall constitute a quorum,
and the act of a majority of the members of the Committee present at a meeting at which a quorum is
present shall be the act of the Committee.

     The Committee, in its discretion, shall (i) interpret the Plan, (ii) prescribe, amend, and
rescind any rules and regulations necessary or appropriate for the administration of the Plan, and
(iii) make such other determinations or certifications and take such other action as it deems
necessary or advisable in the administration of the Plan. Any interpretation, determination, or
other action made or taken by the Committee shall be final, binding, and conclusive on all
interested parties.

     The Committee may delegate to officers of the Company, pursuant to a written delegation, the
authority to perform specified functions under the Plan. Any actions taken by any officers of the
Company pursuant to such written delegation of authority shall be deemed to have been taken by the
Committee. Notwithstanding the foregoing, to the extent necessary to satisfy the requirements of
Rule 16b-3, any function relating to a Reporting Participant shall be performed solely by the
Committee.

     With respect to restrictions in the Plan that are based on the requirements of Rule 16b-3,
Section 423 of the Code, the rules of any exchange or inter-dealer quotation system upon which the
Company’s securities are listed or quoted, or any other applicable law, rule or restriction
(collectively, “applicable law”), to the extent that any such restrictions are no longer required
by applicable law, the Committee shall have the sole discretion and authority to grant Options that
are not subject to such mandated restrictions and/or to waive any such mandated restrictions with
respect to outstanding Options.

ARTICLE XIII

DESIGNATION OF BENEFICIARY

     (a) A Participant may file, in a manner prescribed by the Committee, a written designation of
a beneficiary who is to receive any Shares or cash from such Participant’s Account under this Plan
in the event of such Participant’s death. If a Participant’s death occurs subsequent to the end of
an Offering Period but prior to the delivery to him or her of any Shares deliverable under the
terms of this Plan, such Shares and any remaining balance of such Participant’s Account shall be
paid to such beneficiary (or such other person as set forth in Article XIII(b)) as soon as
administratively practicable after the Committee (or such officer designated by the Committee)
receives notice of such Participant’s death and any outstanding unexercised Option shall terminate.
If a Participant’s death occurs at any other time, the balance of such Participant’s Account shall
be paid to such beneficiary (or such other person as set forth in Article XIII(b)) in cash as soon
as administratively practicable after the Committee (or such officer designated by the Committee)

Page 8 of 15

 

receives notice of such Participant’s death and such Participant’s Option shall terminate. If a
Participant is married and the designated beneficiary is not his or her spouse, spousal consent
shall be required for such designation to be effective.

     (b) Beneficiary designations may be changed by the Participant (and his or her spouse, if
required) at any time on forms provided and in the manner prescribed by the Committee. If a
Participant dies with no validly designated beneficiary under this Plan who is living at the time
of such Participant’s death, the Company shall deliver all Shares and/or cash payable pursuant to
the terms hereof to the executor or administrator of the estate of the Participant, or if no such
executor or administrator has been appointed, the Committee, in its sole discretion, may deliver
such Shares and/or cash to the spouse or to any one or more dependents or relatives of the
Participant, or if no spouse, dependent or relative is known to the Committee, then to such other
person as the Committee may designate.

ARTICLE XIV

TRANSFERABILITY

     Neither Contributions credited to a Participant’s Account nor any Options or rights with
respect to the exercise of Options or right to receive Shares under this Plan may be anticipated,
alienated, encumbered, assigned, transferred, pledged or otherwise disposed of in any way (other
than by will, the laws of descent and distribution, or as provided in Article XIII) by the
Participant. Any such attempt at anticipation, alienation, encumbrance, assignment, transfer,
pledge or other disposition shall be without effect and all amounts shall be paid and all shares
shall be delivered in accordance with the provisions of this Plan. Amounts payable or Shares
deliverable pursuant to this Plan shall be paid or delivered only to the Participant or, in the
event of the Participant’s death, to the Participant’s beneficiary pursuant to Article XIII.

ARTICLE XV

USE OF FUNDS; INTEREST

     All Contributions received or held by the Company under this Plan will be included in the
general assets of the Company and may be used for any corporate purpose. No interest will be paid
to any Participant or credited to his or her Account under this Plan.

ARTICLE XVI

STATEMENTS

     Statements shall be provided to Participants as soon as administratively practicable following
an Exercise Date. Each Participant’s statement shall set forth, as of such Exercise Date, the
Participant’s Account balance immediately prior to the exercise of his or her Option, the Fair
Market

Page 9 of 15

 

Value of a Share, the Option Price, the number of Shares purchased and his or her remaining
Account balance, if any.

ARTICLE XVII

ADJUSTMENTS OF AND CHANGES IN THE STOCK

     (a) The following provisions will apply if any extraordinary dividend or other extraordinary
distribution occurs in respect of the Shares (whether in the form of cash, Common Stock, other
securities, or other property), or any reclassification, recapitalization, stock split (including a
stock split in the form of a stock dividend), reverse stock split, reorganization, merger,
combination, consolidation, split-up, spin-off, combination, repurchase, or exchange of Common
Stock or other securities of Bancshares, or any similar, unusual or extraordinary corporate
transaction (or event in respect of the Common Stock) or a sale of substantially all the assets of
Bancshares occurs. The Board will, in such manner and to such extent (if any) as it deems
appropriate and equitable:

     (i) proportionately adjust any or all of: (a) the number and type of Shares (or other
securities) that thereafter may be made the subject of Options; (b) the number, amount and
type of Shares (or other securities or property) subject to any or all outstanding Options;
(c) the Option Price of any or all outstanding Options; or (d) the securities, cash or other
property deliverable upon exercise of any outstanding Options, or

     (ii) in the case of an extraordinary dividend or other distribution, recapitalization,
reclassification, merger, reorganization, consolidation, combination, sale of assets, split
up, exchange, or spin off, make provision for the substitution, settlement, or exchange of
any or all outstanding Options or the cash, securities or property deliverable to the holder
of any or all outstanding Options based upon the distribution or consideration payable to
holders of the Common Stock upon or in respect of such event.

In each case, no such adjustment will be made that would cause this Plan to violate Section 423 of
the Code or any successor provisions without the written consent of a simple majority of the
Participants materially adversely affected thereby. In any of such events, the Committee may take
such action sufficiently prior to such event if necessary to permit the Participant to realize the
benefits intended to be conveyed with respect to the underlying shares in the same manner as is
available to stockholders generally.

     (b) Upon a dissolution of Bancshares, or any other event described in Article XVII(a) that
Bancshares does not survive, the Plan and, if prior to the last day of an Offering Period, any
outstanding Option granted with respect to that Offering Period shall terminate, subject to any
provision that has been expressly made by the Board through a plan or reorganization approved by
the Board or otherwise for the survival, substitution, assumption, exchange or other settlement of
the Plan and Options. In the event a Participant’s Option is terminated pursuant to this Article
XVII(b), such Participant’s Account shall be paid to him or her in cash.

Page 10 of 15

 

ARTICLE XVIII

TERM OF PLAN; AMENDMENT OR TERMINATION

     (a) This Plan shall become effective as of the Effective Date. No new Offering Periods shall
commence on or after the tenth (10th) anniversary of the Effective Date and this Plan
shall terminate on such date unless sooner terminated pursuant to this Article.

     (b) The Board may amend, modify or terminate this Plan at any time without notice. Stockholder
approval for any amendment or modification shall not be required, except to the extent deemed
necessary or advisable by the Board or required by (i) any securities exchange or inter-dealer
quotation system on which the Common Stock is listed or traded; (ii) Section 423 of the Code or
(iii) any other applicable law. Except as otherwise provided by Article V, no amendment,
modification, or termination pursuant to this Article shall, without the written consent of the
Participants, affect in any manner materially adverse to the Participants any rights or benefits of
such Participants or obligations of the Company under any Option granted under this Plan prior to
the effective date of such change. Changes contemplated by Article XVII shall not be deemed to
constitute changes or amendments requiring Participant consent. Notwithstanding the foregoing, the
Board shall have the right to designate from time to time the Subsidiaries, if any, whose employees
may be eligible to participate in this Plan and such designation shall not constitute any amendment
to this Plan requiring stockholder approval.

ARTICLE XIX

NOTICES

     All notices or other communications by a Participant to the Company or the Committee
contemplated by the Plan shall be deemed to have been duly given when received in the form and
manner specified by the Committee at the location, or by the person, designated by the Committee
for that purpose.

ARTICLE XX

CONDITIONS UPON ISSUANCE OF SHARES

     Shares shall not be issued with respect to an Option unless the exercise of such Option and
the issuance and delivery of such Shares complies with all applicable provisions of law, domestic
or foreign, including, without limitation, the Securities Act of 1933, as amended, the Exchange
Act, any applicable state securities laws, the rules and regulations promulgated thereunder, and
the requirements of any stock exchange upon which the Shares may then be listed.

     As a condition precedent to the exercise of any Option, if, in the opinion of counsel for the
Company such a representation is required under applicable law, the Company may require any person
exercising such Option to represent and warrant that the Shares subject thereto are being acquired
only for investment and without any present intention to sell or distribute such Shares.

Page 11 of 15

 

ARTICLE XXI

PLAN CONSTRUCTION

     (a) It is the intent of the Company that transactions in and affecting Options in the case of
Participants who are or may be subject to the prohibitions of Section 16 satisfy any then
applicable requirements of Rule 16b-3 so that such persons (unless they otherwise agree) will be
entitled to the exemptive relief of Rule 16b-3 in respect of those transactions and will not be
subject to avoidable liability thereunder. Accordingly, this Plan shall be deemed to contain and
the Shares issued upon exercise thereof shall be subject to, such additional conditions and
restrictions as may be required by Rule 16b-3 to qualify for the maximum exemption from Section 16
with respect to Plan transactions.

     (b) If any provision of this Plan or of any Option would otherwise frustrate or conflict with
the intents expressed above, that provision to the extent possible shall be interpreted so as to
avoid such conflict. If the conflict remains irreconcilable, the Board may disregard the provision
if it concludes that to do so furthers the interest of the Company and is consistent with the
purposes of this Plan as to such persons in the circumstances.

ARTICLE XXII

EMPLOYEES’ RIGHTS

     Nothing in this Plan (or in any agreement related to this Plan) shall confer upon any Eligible
Employee or Participant any right to continue in the service or employ of the Company or constitute
any contract or agreement of service or employment, or interfere in any way with the right of the
Company to reduce such person’s compensation or other benefits or to terminate the services or
employment of such Eligible Employee or Participant, with or without cause, but nothing contained
in this Plan or any document related hereto shall affect any other contractual right of any
Eligible Employee or Participant. No Participant shall have any rights as a stockholder until a
certificate for Shares has been issued in the Participant’s name following exercise of his or her
Option. No adjustment will be made for dividends or other rights as a stockholder for which a
record date is prior to the issuance of such Share certificate. Nothing in this Plan shall be
deemed to create any fiduciary relationship between the Company and any Participant.

ARTICLE XXIII

COMMON STOCK AVAILABLE FOR THE PLAN

     (a) The aggregate number of Shares of Common Stock which may be issued pursuant to this Plan
shall be 400,000 Shares of Bancshares’ Common Stock. If, and to the extent, that the number of
issued Shares of Common Stock shall be increased or reduced by change in par value, split up,
reclassification, distribution of a dividend payable in Common Stock, or the like, the

Page 12 of 15

 

number of Shares subject to grant hereunder and the Option Price thereof shall be
proportionately adjusted.

     (b) To the extent that any Option under this Plan shall expire or be canceled, in whole or in
part, then the number of Shares covered by the Option so expired or canceled may again be awarded
pursuant to the provisions of this Plan.

ARTICLE XXIV

DISPOSITIONS OF STOCK, RIGHT OF FIRST REFUSAL AND REPURCHASE

     (a) Prior to the date on which Bancshares’ Common Stock is offered for sale to the public
following successful registration of the stock with the Securities and Exchange Commission, the
Participant may not sell, exchange, transfer, pledge or otherwise dispose of any Common Stock
acquired through the exercise of an Option granted hereunder until after the expiration of a six
(6) month holding period measured from the Exercise Date following the transfer of such Common
Stock to the Participant.

     (b) In the event that, prior to the date on which Bancshares’ Common Stock is offered for sale
to the public following successful registration of the Common Stock with the Securities and
Exchange Commission, the Participant shall incur a termination of employment for any reason, the
Company, following the six (6) month holding period described in Article XXIV(a), shall have the
right, but not the obligation, to repurchase at any time some or all of Participant’s Shares of
Common Stock acquired through the exercise of an Option granted herein at the Fair Market Value of
such Common Stock at the date of repurchase.

     (c) Prior to the date on which Bancshares’ Common Stock is offered for sale to the public
following successful registration of the stock with the Securities and Exchange Commission,
Bancshares, following the six (6) month holding period described in Article XXIV(a), shall have the
right of first refusal with respect to Participant’s Shares of Common Stock at a purchase price
equal to the lower of the Fair Market Value at date of repurchase or the price offered by a bona
fide purchaser. The Participant shall, as a condition precedent to his or her right to sell such
shares of Common Stock to purchaser, comply with the following procedure:

     (i) By written notice (the “Notice”), the Participant shall inform the Committee of the
purchaser’s offer, the number of Shares of Common Stock proposed to be transferred , the
price per Share, the proposed closing date (which shall be no sooner than fifty (50) days
from the date of the Notice), all other terms and conditions of the purchaser’s offer and
shall further contain an offer to sell all of the offered Shares to the Committee or its
assign pursuant to the terms and provisions of this Article XXIV and on the same terms and
conditions contained in the purchaser’s offer.

     (ii) The Company at its option, exercisable within twenty (20) days of the receipt of
the Notice, may purchase all or any part of the offered Shares. In addition, the Company
shall be entitled to assign its right to purchase the offered Shares to one or more third
parties.

Page 13 of 15

 

     (iii) If the Company shall elect to purchase some or all of the offered Shares, it
shall deliver notice of the exercise of its option to the Participant not later than the
twentieth day following receipt of the Notice. In addition, if the Company shall assign
some or all of its right to purchase the offered Shares to a third party, it shall deliver
notice of such assignment, together with the number of the offered Shares to be purchased by
such third party, not later than the twentieth day following receipt of the Notice.
Following delivery of the Company’s (or the third party) notice of exercise of the option
granted herein to purchase the offered Shares, the Company shall set a closing date, which
shall not be later than twenty days following the delivery of the Company’s (or the third
party’s) notice of intent to purchase offered Shares.

     (iv) To the extent that the Company and its assigns shall elect to purchase less than
all of the offered Shares, the Participant shall thereafter be entitled to sell those
offered Shares not being so purchased upon the terms and conditions set forth in the Notice.
Any modification of such terms and conditions shall require additional compliance with the
provisions set forth in this Article XXIV.

     (d) In the event that the Company exercises its rights under this Article XXIV with regard to
the Participant’s Shares, it has the right to tender such purchase price in installments, with
interest, over a period not to exceed twelve (12) months. For purposes of such an installment
payment, interest shall be calculated and paid not less frequently than annually, and shall equal
the prime rate of interest charged by the Company’s primary bank.

ARTICLE XXV

MISCELLANEOUS

     (a) If a Share acquired pursuant to this Plan is disposed of by a Participant prior to the
expiration of either two (2) years from the Grant Date of the Option relating to such Share or one
(1) year from the transfer of such Share to the Participant on the Exercise Date (a “Disqualifying
Disposition”), such Participant shall notify the Company in writing of the date and terms of such
disposition. A Disqualifying Disposition by a Participant shall not affect the status of any other
Option granted under the Plan.

     (b) This Plan and related documents shall be governed by, and construed in accordance with,
the laws of the State of Delaware. If any provision shall be held by a court of competent
jurisdiction to be invalid and unenforceable, the remaining provisions of this Plan shall continue
to be fully effective.

     (c) Captions and headings are given to the articles of this Plan solely as a convenience to
facilitate reference. Such captions and headings shall not be deemed in any way material or
relevant to the construction of interpretation of this Plan or any provision hereof.

     (d) The adoption of this Plan shall not affect any other compensation or incentive plans in
effect for the Company. Nothing in this Plan shall be construed to limit the right of the Company
(i) to establish any other forms of incentives or compensation for employees of the

Page 14 of 15

 

Company, or (ii) to grant or assume options (outside the scope of and in addition to those
contemplated by this Plan) in connection with any proper corporate purpose.

**********

     IN WITNESS WHEREOF, Bancshares has caused its duly authorized officers to execute this Texas
Capital Bancshares, Inc. 2006 Employee Stock Purchase Plan, and to apply the Corporate seal hereto
as of ___, 2006.

	 	 	 	 	 	 	 
	 	 	TEXAS CAPITAL BANCSHARES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Joseph M. Grant	 	 
	 

	 	 	 	Chairman and Chief Executive Officer	 	 

Page 15 of 15

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