Document:

EMPLOYMENT
      AGREEMENT

    

    This
      EMPLOYMENT
      AGREEMENT
      (this
“Agreement”)
      is
      made and entered into as of this 5th day of April, 2006, by and between
      Intercontinental National Bank, a national bank chartered under the laws of
      the
      United States (the “Bank”),
      Intercontinental Bank Shares Corporation, a Texas corporation (the “Company”),
      and
      Steven J. Pritchard, a resident of Texas (the “Executive”).

    

    WHEREAS,
      Coastal
      Bancshares Acquisition Corp., a Delaware corporation (“Coastal”),
      Coastal
      Merger Corp., a Texas corporation and wholly-owned subsidiary of Coastal
      (“Merger
      Sub”),
      and
      the Company, have entered into that certain Agreement and Plan of Merger, dated
      as of April 5, 2006 (the “Merger
      Agreement”),
      pursuant to which Merger Sub will merge with and into the Company and the
      separate corporate existence of Merger Sub will cease (the “Merger”);

    

    WHEREAS,
      the
      Executive has considerable experience, expertise and training in management
      related to banking and services offered by the Bank;

    

    WHEREAS,
      the
      Bank and the Company desire and intend to cause the Executive to be employed
      as
      President of the San Antonio Division of the Bank pursuant to the terms and
      conditions set forth in this Agreement; and

    

    WHEREAS,
      both
      the Bank, the Company and the Executive have read and understood the terms
      and
      provisions set forth in this Agreement, and have been afforded a reasonable
      opportunity to review this Agreement with their respective legal
      counsel.

    

    NOW,
      THEREFORE,
      in
      consideration of the mutual promises and covenants set forth in this Agreement,
      the Executive and the Bank agree as follows:

    

    DURATION

    

    1. This
      Agreement shall continue in full force and effect for a period (the
“Term”)
      beginning on the date the Merger is consummated (the “Effective
      Date”),
      and
      will expire and terminate by its own terms on the third anniversary of the
      consummation of the Merger (the “Expiration
      Date”),
      unless either party elects to terminate this Agreement prior to the Expiration
      Date, in accordance with the TERMINATION
      provisions
      set forth below. 

     

    2. Both
      the
      Bank and the Executive acknowledge and agree that, subsequent to the Expiration
      Date, the parties may agree to continue the employment relationship upon such
      terms as they may mutually agree. However, both parties acknowledge and agree
      that, in the event they fail to agree upon terms for the continuation of the
      Executive’s employment subsequent to the Expiration Date, this Agreement shall
      automatically terminate on the Expiration Date without any additional liability
      or obligation on the part of either party, and the Executive shall become an
      employee at-will.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    COMPENSATION

    

    3. All
      payments of salary and other compensation to the Executive shall be payable
      in
      accordance with the Bank’s ordinary payroll and other policies and
      procedures.

     

    a. For
      the
      Term of this Agreement, the Executive will receive a salary of $181,000 annually
      (the “Base
      Salary”),
      payable in installments in accordance with the Bank’s payroll policies in effect
      from time to time during the term of this Agreement.

     

    b. In
      addition to the Base Salary, the Executive shall receive a discretionary
      employee bonus targeted at up to forty percent (40%) of the Base Salary if
      all bonus targets are met in full; provided,
      however,
      that
      the Compensation Committee of the Board of Directors of the Bank (the
“Compensation
      Committee”)
      shall
      have the sole discretion to determine the discretionary bonus formula and when
      bonuses will be paid thereunder.

     

    c. (i) The
      Company shall grant to the Executive, on the Effective Date, a number of stock
      options exercisable within eight (8) years from the date of the grant of such
      options. Such options will enable the Executive to purchase seventy-five
      thousand (75,000) shares of Company common stock (“Company
      Stock”).
      The
      exercise price for such stock options shall be equal to the fair market value
      of
      the Company Stock on the date of such grant. Such options will vest ratably
      over
      a period of four (4) years and the terms of the stock option plan under which
      such options are granted shall control in the event of any conflict with the
      terms of this Agreement.

     

    (ii) The
      Company shall issue to the Executive, on the Effective Date twenty-five thousand
      (25,000) shares of Company Stock pursuant to the terms of a Restricted Stock
      Agreement substantially in the form attached hereto as Exhibit
      A.
      Such
      agreement shall provide that such shares shall vest one-third (1⁄3) on each of the
      first three years’ anniversaries from the date of grant and the terms of the
      incentive plan under which such shares are issued shall control in the event
      of
      any conflict with the terms of this Agreement.

     

    d. In
      addition to the compensation provided in this section, during the Term of this
      Agreement, the Executive shall be entitled to participate in all fringe benefit
      programs and plans established by the Bank for its employees, including medical
      insurance, life insurance, pension and retirement programs, vacation pay,
      company-paid holidays, and other similar benefits, if any. Subject to the
      provisions of Section
      3(e)
      below,
      the Bank reserves the right to modify, amend, or eliminate any of the
      Executive’s benefits without his prior approval, as long as all
      similarly-situated employees are treated similarly. The Executive’s entitlement
      to participate in fringe benefit programs and plans established by the Bank
      shall be governed by terms and conditions set forth in such plans.

     

    e. During
      the Term of this Agreement, the Bank shall (1) pay for a term life insurance
      policy on the life of the Executive with a death benefit payable to Executive’s
      designee of up to $1,000,000, (2) pay for club dues and membership costs of
      the
      Executive that the Bank was paying for on the date of the execution of the
      Merger Agreement, up to a maximum amount of $10,000 per year, (3) pay for kidnap
      insurance for the Executive in the amount of $500,000, and (4) provide for
      the
      ability of the executive to purchase first class air tickets on business trips
      of the Executive to Mexico if upgrades to first class are not available for
      any
      particular business trip.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    f. Both
      the
      Bank and the Executive acknowledge that such compensation and the other
      covenants and agreements of the Bank contained herein are fair and adequate
      compensation for the Executive’s services, and for the mutual promises described
      below.

     

    4. The
      Bank
      and the Executive acknowledge that, during the Term of this Agreement, the
      Executive’s compensation will be subject to an annual review and annual
      increase, consistent with safe and sound banking practices, and in the
      discretion of the Compensation Committee.

     

    5. The
      Executive acknowledges and agrees that any employee benefits provided to the
      Executive by the Bank incident to the Executive’s employment are governed by the
      applicable plan documents, summary plan descriptions or employment policies,
      and
      may be modified, suspended or revoked at any time, in accordance with the terms
      and provisions of the applicable documents. 

     

    RESPONSIBILITIES

    

    6. The
      Executive acknowledges and agrees that he shall be employed as President of
      the
      San Antonio Division of the Bank and as an Executive Vice President of the
      Bank.
      The Executive covenants and agrees that he will faithfully devote his best
      efforts and his full-time focus to his positions with the Bank, except that
      the
      Executive may serve on up to three (3) civic or charitable boards. 

     

    7.  
       a. During
      the Term of this Agreement, the Executive shall serve as President of the San
      Antonio Division of the Bank. During the Term of this Agreement, subject to
      the
      supervision and control of the Board of Directors of the Bank, the Executive
      shall perform the duties and have the powers and authority which are consistent
      with and generally of the nature of the duties and the authority ordinarily
      and
      customarily delegated and granted to an employee in a similar position, and
      the
      Executive shall perform such other duties and have such other powers and
      authority as may be prescribed by the Board of Directors of the Bank from time
      to time. Any such other duties, powers and authority shall be consistent with
      the Executive’s position and shall not violate any federal, state or local laws
      or regulations. The Executive shall comply with all policies adopted from time
      to time by the Bank.

     

    b. Notwithstanding
      the provisions of Section 7(a)
      above,
      but subject to the provisions of Section
      13,
      the
      duties and responsibilities of the Executive may be changed or modified from
      time to time by the Bank at the Bank’s sole discretion. Upon changes or
      modifications to the Executive’s
      duties
      and responsibilities, the Executive’s employment with the Bank shall continue to
      be governed by the terms of this Agreement.

     

    8. The
      Executive acknowledges and agrees that, during the Term of this Agreement,
      he
      has a fiduciary duty of loyalty to the Bank, and that he will not knowingly
      engage in any activity during the Term of this Agreement which will or could,
      in
      any material way, harm the business, business interests, or reputation of the
      Bank.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    NONINTERFERENCE

    

    9.  
       a. The
      Executive acknowledges and agrees that he will not, at any time during the
      Term
      of this Agreement and (i) for the periods set out on Exhibit B
      attached
      hereto following the termination of this Agreement by the Bank for Good Cause
      or
      Executive’s termination of this Agreement for any reason other than for
      Constructive Termination, and (ii) for the one (1) year period following
      the termination of this Agreement by the Bank for any reason other than for
      Good
      Cause or the termination of this Agreement by the Executive as a result of
      a
      Constructive Termination (the periods set out in clauses
      (i)
      and
(ii)
      above
      being referred to as the “US
      Restrictive Period”),
      directly or indirectly, engage in competition with the Bank within the
      geographic boundaries of Bexar County and the counties contiguous with it,
      and
      the Executive will not on his own behalf, or as another’s agent, employee,
      partner, shareholder or otherwise, engage, within the geographic boundaries
      of
      Bexar County and the counties contiguous with it, in any of the same or similar
      duties and/or responsibilities required by the Executive’s positions with the
      Bank, other than as an employee of the Bank pursuant to this Agreement, or
      as
      specifically approved by the Board of Directors of the Bank. 

     

    b. (i)
      The
      Executive acknowledges and agrees that he will not, at any time during the
      Term
      of this Agreement and for the first (1st)
      year
      following the termination of this Agreement by the Bank or the Executive for
      any
      reason, directly or indirectly, engage in competition with the Bank within
      the
      geographic boundaries of the United Mexican States, on his own behalf, or as
      another’s agent, employee, partner, shareholder or otherwise, including, without
      limitation, by soliciting or attempting to solicit customers of the Bank or
      any
      of their affiliates, or soliciting or attempting to solicit persons or entities
      (or any of their affiliates) that are not customers of the Bank, but that have
      been customers of the Bank or that are prospective customers of the Bank, or
      engage in any of the same or similar duties and/or responsibilities required
      by
      the Executive’s positions with the Bank, other than as an employee of the Bank
      pursuant to this Agreement, or as specifically approved by the Board of
      Directors of the Bank.

     

     (ii) The
      Executive acknowledges and agrees that he will not, at any time during the
      Term
      of this Agreement and for the second (2nd)
      and
      third (3rd)
      years
      (each of the periods in clauses
      (i),
      and
(ii),
      together with the US Restrictive Period, collectively referred to as the
“Restrictive
      Period”)
      following the termination of this Agreement by the Bank for Good Cause or the
      Executive’s termination of this Agreement for any reason other than Constructive
      termination, directly or indirectly, (x) within a fifty (50) mile radius of
      those cities within the United Mexican States where the Bank has customers,
      or
      has previously had customers, engage in competition with the Bank, and, on
      his
      own behalf, or as another’s agent, employee, partner, shareholder or otherwise,
      engage in any of the same or similar duties and/or responsibilities required
      by
      the Executive’s positions with the Bank, other than as an employee of the Bank
      pursuant to this Agreement, or as specifically approved by the Board of
      Directors of the Bank, or (y) within the geographic boundaries of the United
      Mexican States, solicit or attempt to solicit customers of the Bank or any
      of
      their affiliates, or solicit or attempt to solicit persons or entities (or
      any
      of their affiliates) that are not customers of the Bank, but that have been
      customers of the Bank or that were, as of the date of the termination of this
      Agreement, prospective customers of the Bank previously solicited by the
      Executive or that the Executive was aware of (based upon written records) have
      been previously solicited by the Bank; provided, however, that sub-clause
      (x)
      of this
clause
      (ii)
      shall
      not apply in the third (3rd)
      year,
      if any, of the Restrictive Period. The parties acknowledge and agree that the
      enumeration of the items in clause
      (y)
      of this
      Section is not intended to imply that such activities are not competitive with
      the Bank for purposes of clause
      (x)
      of this
      Section, but are enumerated for the convenience of the parties.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    c. The
      Executive also covenants and agrees that during the Restrictive Period, the
      Executive shall not: (i) recruit, hire, or attempt to recruit or hire,
      directly or by assisting others, any other employees or independent
      representatives of the Bank (for purposes of this covenant, “other employees”
shall refer to employees who are still actively employed by, or doing business
      with, the Bank at the time of the attempted recruiting or hiring), nor shall
      the
      Executive contact or communicate with any other employees or independent
      representatives of the Bank for the purpose of inducing other employees or
      independent representatives to terminate their employment or relationship with
      the Bank; or (ii) solicit, directly or by assisting others, the banking
      business of any customers of the Bank as of the date of such termination.
Notwithstanding
      the preceding, with respect to independent representatives who conduct business
      in Mexico, the Executive shall continue to be entitled to communicate and
      conduct business with such independent representatives after the
first
      (1st)
      year
      following the termination of this Agreement, provided
      that such communication or business complies with the Restrictions set
      forth in clause
      (b)(ii)
      of this
      Section. 

    

    d. The
      Executive acknowledges and agrees that in exchange for the execution of the
      noninterference agreement set forth above, the Executive will receive
      substantial, valuable consideration including: (i) confidential trade
      secret and proprietary information relating to the Bank, including, without
      limitation, information relating to the identity and special needs of the Bank’s
      current and prospective customers, the Bank’s current and prospective services,
      the Bank’s business projections and market studies, the Bank’s business plans
      and strategies, the Bank’s studies and information concerning special services
      unique to the Bank (the “Confidential
      Information”);
      (ii) employment; and (iii) compensation and benefits as described in
      this Agreement. The Executive acknowledges and agrees that this constitutes
      fair
      and adequate consideration for the execution of the noninterference agreement
      set forth above.

    

    REMEDIES

    

    10. In
      the
      event that the Executive violates any of the provisions set forth in this
      Agreement relating to NONINTERFERENCE,
      the
      Executive acknowledges and agrees that the Bank may suffer immediate and
      irreparable harm. Consequently, the Executive acknowledges and agrees that
      the
      Bank shall be entitled to immediate injunctive relief, either by temporary
      or
      permanent injunction and without the necessity of posting a bond or proving
      actual damages, to prevent such a violation.

     

    TERMINATION

    

    11. The
      Executive acknowledges and agrees that the Board of Directors of the Bank
      reserves the right to terminate this Agreement, for any reason, by providing
      the
      Executive with written notice of the termination, delivered in person, or by
      certified U.S. mail to the Executive’s last known address reflected in the
      Bank’s personnel records. Such notice shall be effective upon personal delivery
      or three (3) days after mailing by certified mail. However, if the
      Agreement is terminated at the Bank’s insistence without Good Cause (as defined
      in this Agreement), the Bank covenants and agrees to provide the Executive
      with
      the SEVERANCE
      set
      forth
      in Section 17
      of this
      Agreement. 

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    12. The
      Executive acknowledges and agrees that the Bank may terminate this Agreement
      at
      any time, without notice, for “Good
      Cause,”
which
      is defined as the following:

     

    a. conviction
      of, or a plea of nolo
      contendere,
      by the
      Executive to a felony or to fraud, embezzlement or misappropriation of funds;
      

     

    b. the
      commission by the Executive of a fraudulent act or insider abuse with regard
      to
      the Bank;

     

    c. a
      knowing
      omission, breach of trust or fiduciary duty by the Executive;

     

    d. substantial
      and direct responsibility by the Executive for the insolvency of, the
      appointment of a conservator or receiver for, or the troubled condition, as
      defined by applicable regulations of the appropriate federal banking agency,
      of
      the Bank;

     

    e. a
      material violation by the Executive of any applicable federal banking law or
      regulation that has had a material adverse effect on the Bank;

     

    f. the
      Executive’s intentional violation or conspiracy to violate section 215,
      656, 657, 1005, 1006, 1007, 1014, 1032, or 1344 of title 18 of the United States
      Code, or section 1341 or 1343 of such title affecting a federally insured
      financial institution as defined in title 18 of the United States
      Code;

     

    g. the
      willful failure by the Executive to adhere to the Bank’s written policies, which
      causes a material monetary injury or other material harm to the
      Bank;

     

    h. the
      willful failure by the Executive to substantially perform material stated duties
      of the position with the Bank;

     

    i. the
      removal or suspension from the performance of duties of the Executive by any
      bank regulatory authority;

     

    j. appointment
      of a conservator or receiver for the Bank by applicable bank regulatory
      authorities as a result of the Executive’s misconduct;

     

    k. the
      declaration by federal bank regulators that the Bank is in a “troubled
      condition” as a result of the Executive’s misconduct, and while the Bank is in
      such a “troubled condition” as a result of the Executive’s misconduct, the Bank
      engages in a Change in Control transaction; or

     

    l. the
      receipt by the Bank of a formal written administrative action or cease and
      desist order issued by a federal bank regulator, which formal action or order
      resulted from the Executive’s misconduct.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    Notwithstanding
      the foregoing, the Executive shall not be deemed to have been terminated by
      reason of violating Section 12(b),
      (c),
      (e),
      (g),
      or
(h)
      until
      the Executive is notified in writing by the Bank (or its successor entity)
      of a
      determination by the Bank of a violation of Section 12(b),
      (c),
      (e),
      (g),
      or
(h),
      specifying the particulars thereof in reasonably sufficient detail, and giving
      the Executive a reasonable opportunity (of not less than thirty (30) days),
      together with counsel, to explain to the Bank why there has been no violation
      of
Section 12(b),
      (c),
      (e),
      (g),
      or
(h),
      followed by a finding by the Bank, to be detailed in writing within a Notice
      of
      Termination, (1) that in the good faith opinion of the Bank (or its
      successor entity) the Executive has committed an act described in Section 12(b),
      (c),
      (e),
      (g),
      or
(h)
      above,
      (2) specifying the particulars thereof in detail, and (3) determining
      in good faith that such violation has not been corrected, or is not capable
      of
      correction. Nothing herein shall limit the Executive’s right to contest the
      validity or propriety of any such determination.

    

    13. The
      Bank
      acknowledges and agrees that the Executive reserves the right to terminate
      this
      Agreement at any time, for any reason, with or without cause, by providing
      thirty (30) days written notice, by personal delivery or certified United
      States mail, to the Bank at its principal business address of the Executive’s
      intention to terminate this Agreement. Such notice shall be effective upon
      personal delivery or three (3) days after mailing by certified mail. In the
      event that the Executive does so because of a Constructive Termination (as
      defined in this Agreement), the Bank covenants and agrees to provide the
      Executive with the SEVERANCE
      set
      forth below in this Agreement. 

     

    “Constructive
      Termination”
shall
      mean the Bank, without the prior written consent of the Executive: 

     

    a. materially
      and adversely changes the Executive’s duties, responsibilities and status with
      the Bank, or materially and adversely changes the Executives’ reporting
      responsibilities, titles or offices, or removes the Executive from or fails
      to
      re-elect the Executive to, any of such positions, except in connection with
      the
      Executives’ termination for “Good Cause” or disability, or as a result of the
      Executive’s death;

     

    b. reduces
      the Executive’s base compensation benefits as in effect on the Effective Date or
      as the same may be increased from time to time, other than as part of a
      reduction applicable generally to all or substantially all of the Bank’s
      executive employees, or when base compensation benefits are replaced by other
      compensation or benefits of equal or greater value; or

     

    c. acts,
      or
      fails to act, in a manner that adversely affects the Executive’s participation
      in, or materially reduces, in the aggregate, the Executive’s benefits under,
      employee benefit and compensation plans, other than as part of a reduction
      applicable generally to all or substantially all of the Bank’s executive
      employees, or when the Executive’s benefits and/or base compensation benefits
      are replaced by base compensation benefits of equal or greater
      value.

     

    Notwithstanding
      the foregoing, the Executive shall not be deemed to have incurred a
“constructive termination” of employment unless the Executive first shall have
      notified the Board in writing that the Executive has incurred a “constructive
      termination” of employment, specifying the particulars thereof in reasonably
      sufficient detail, and giving the Bank a reasonable opportunity (of not less
      than thirty (30) days), together with its counsel, to explain to the
      Executive that the Executive has not incurred a “constructive termination” of
      employment, such finding to be detailed to the Executive in writing, or to
      cure
      such constructive termination.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    14. The
      Executive acknowledges and agrees that in the event of the Executive’s death,
      this Agreement will terminate immediately, without notice, on the date of the
      Executive’s death. The Executive acknowledges and agrees that, in the event of
      his death, the Bank will pay to the Executive’s estate all compensation due and
      owing through the date of the Executive’s death.

     

    15. The
      Executive acknowledges and agrees that this Agreement will terminate
      immediately, without notice, in the event the Executive becomes physically
      or
      mentally disabled, as defined by 29 C.F.R. § 1630.2(g)(1), and cannot
      perform the essential functions of his position, with or without reasonable
      accommodation for the period designated by the Executive’s disability insurance
      after which disability payments will begin.

     

    16. The
      Executive acknowledges and agrees that in the event of termination of this
      Agreement, for whatever reason, whether at the insistence of the Executive
      or at
      the insistence of the Bank, the Executive will return to the Bank within two
      (2)
      business days of the time when notice of termination is communicated by either
      party, any and all equipment, literature, documents, data, information, order
      forms, memoranda, correspondence, customer and prospective customer lists,
      customer’s orders, records, cards or notes acquired, compiled or coming into the
      Executive’s knowledge, possession or control in connection with his activities
      as an employee of the Bank, as well as all machines, parts, equipment or other
      materials received from the Bank or from any of its customers, agents or
      suppliers, in connection with such activities.

     

    SEVERANCE

    

    17. The
      Executive and the Bank acknowledge and agree that, if the Bank elects to
      terminate this Agreement at any time prior to the Expiration Date for any reason
      other than “Good Cause,” as defined in this Agreement or the Executive
      terminates this Agreement because of a Constructive Termination, the Executive
      shall be entitled to severance pay. Such severance pay shall be equal to
      $181,000, or the equivalent of the Executive’s then current annual salary,
      whichever is greater, less statutory payroll deductions, payable over a
      twelve (12) month period in accordance with the Bank’s ordinary payroll
      policies and procedures, beginning on the date that the notice of termination
      becomes effective (the “Termination
      Date”).
      In
      addition, the Executive shall be entitled to participate in the medical
      insurance benefits of the Bank, effective on the Termination Date, for a period
      of twelve (12) months beginning on the Termination Date. The Executive’s
      entitlement to any severance pay under this Agreement is strictly contingent
      on the Executive complying with the terms of the restrictive covenants set
      out
      in Section 9
      and
Section
      28
      of this
      Agreement, and any material breach by the Executive of the terms of the
      restrictive covenants set out in Section 9
      or
Section
      28
      shall
      allow the Bank to immediately cease payment of any installments of such
      severance pay not yet paid at the time of the breach, and Bank shall have no
      further obligations to the Executive. This remedy is in addition to others
      available to the Bank under law or as provided in this Agreement for any breach
      of the restrictive covenants contained herein. Any termination of severance
      pay
      pursuant to the above provisions shall not be interpreted to limit or alter
      the
      scope or duration of the Executive’s obligations pursuant to Section 9.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    SEVERABILITY

    

    18. The
      Executive acknowledges and agrees that each covenant and/or provision of this
      Agreement shall be enforceable independently of every other covenant and/or
      provision. Furthermore, the Executive acknowledges and agrees that, in the
      event
      any covenant and/or provision of this Agreement is determined to be
      unenforceable for any reason, the remaining covenants and/or provisions will
      remain effective, binding and enforceable.

     

    WAIVER

    

    19. The
      parties acknowledge and agree that the failure of either to enforce any
      provision of this Agreement shall not constitute a waiver of that particular
      provision, or of any other provisions of this Agreement.

     

    SUCCESSORS
      AND ASSIGNS

    

    20. The
      Executive acknowledges and agrees that this Agreement may be assigned by the
      Bank to any successor-in-interest and shall inure to the benefit of, and be
      fully enforceable by, any successor and/or assignee; and this Agreement will
      be
      fully binding upon, and may be enforced by the Executive against, any successor
      and/or assignee of the Bank.

     

    21. The
      Executive acknowledges and agrees that his obligations, duties and
      responsibilities under this Agreement are personal and shall not be assignable,
      and that this Agreement shall be enforceable by the Executive only. In the
      event
      of the Executive’s death, this Agreement shall be enforceable by the Executive’s
      estate, executors and/or legal representatives, only to the extent provided
      herein.

     

    CHOICE
      OF LAW

    

    22. Both
      parties acknowledge and agree that the law of Texas will govern the validity,
      interpretation and effect of this Agreement, and any other dispute relating
      to,
      or arising out of, the employment relationship between the Bank and the
      Executive.

     

    MODIFICATION

    

    23. Both
      parties acknowledge and agree that this Agreement and the stock option plan
      and
      stock grants set forth in Section 3(c)
      of this
      Agreement constitute the complete and entire agreement between the parties;
      that
      the parties have executed this Agreement based upon the express terms and
      provisions set forth herein; that the parties have not relied on any
      representations, oral or written, which are not set forth in this Agreement;
      that no previous agreement, either oral or written, shall have any effect on
      the
      terms or provisions of this Agreement; and that all previous agreements, either
      oral or written, are expressly superseded and revoked by this
      Agreement.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    24. Both
      parties acknowledge and agree that the covenants and/or provisions of this
      Agreement may not be modified by any subsequent agreement unless the modifying
      agreement; (a) is in writing; (b) contains an express provision
      referencing this Agreement; (c) is signed by the Executive; and (d) is
      approved by a majority of the Board of Directors of the Bank.

     

    INDEMNIFICATION

    

    25. During
      the Term of this Agreement, the Bank shall indemnify the Executive against
      all
      judgments, penalties, fines, amounts paid in settlement and reasonable expenses
      (including, but not limited to, attorneys’ fees) relating to his employment by
      the Bank to the fullest extent permissible under the Bank’s Articles of
      Incorporation, and may purchase such indemnification insurance as the Board
      of
      Directors may from time to time determine.

     

    LEGAL
      CONSULTATION

    

    26. The
      Executive and the Bank acknowledge and agree that both parties have been
      accorded a reasonable opportunity to review this Agreement with legal counsel
      prior to executing the agreement.

     

    NOTICES

    

    27. Any
      and
      all notices of documents or other notices required to be delivered under the
      terms of this Agreement shall be addressed to each party as
      follows:

     

    EXECUTIVE:

    

    Steven
      J.
      Pritchard

    686
      Military Drive West

    San
      Antonio, Texas 78227

    

    BANK:

    

    Intercontinental
      National Bank

    686
      Military Drive West

    San
      Antonio, Texas 78227

    

    CONFIDENTIALITY

    

    28. The
      Executive acknowledges that he will have access, during the course of service
      to
      the Bank, to Confidential Information and products of the Bank. The Executive
      acknowledges that all Confidential Information provided to the Executive is
      provided in confidence and trust and that the Bank’s maintenance of the
      confidentiality of its proprietary Confidential Information to the fullest
      extent possible is extremely important. The Executive agrees not to use,
      disclose, disseminate or otherwise make available to any third party, either
      directly or indirectly, any Confidential Information at any time or in any
      manner, except as expressly authorized in writing by the Bank. The Executive
      agrees to take all reasonable precautions to prevent inadvertent or other
      disclosure, use or transfer of any of the Confidential Information. The
      provisions of this Section
      28
      shall
      survive the termination of this Agreement.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    THIRD
      PARTY BENEFICIARY

     

    29. Coastal
      is intended to be a third party beneficiary of this Agreement. This Agreement
      will not be terminated or amended, or any provision hereof waived, without
      the
      express written consent of Coastal.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    EXECUTED
      ON THIS 5th day of April, 2006, in San Antonio, Texas.

    

      
        	 	 	 	
                EXECUTIVE:

              	 
	 	 	
                 

              	
                 

                /s/
                  Steven J. Pritchard

              	 
	
                WITNESS

              	 	 	
                Steven
                  J. Pritchard

              	 

      

       

      

        
          	 	 	 	
                  BANK:

                   

                  INTERCONTINENTAL
                    NATIONAL BANK

                   

                	 
	 	 	
                  By:

                	
                  /s/
                    James E. Dawson

                	 
	
                  WITNESS

                	 	
                  Name:
                     James
                    E. Dawson

                  Title:  
                     Secretary

                	 

        

        

        
          	 	 	 	
                  COMPANY:

                   

                  INTERCONTINENTAL
                    BANK SHARES CORPORATION

                   

                	 
	 	 	
                  By:

                	
                  /s/
                    James E. Dawson

                	 
	
                  WITNESS

                	 	
                  Name:
                     James
                    E. Dawson

                  Title:  
                     Secretary

                	 

        

      

       

    

    [Signature
      Page to Steven J. Pritchard Employment Agreement]

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
      A

     

    Restricted
      Stock Agreement

    

    This
      RESTRICTED
      STOCK AGREEMENT
      (“Agreement”),
      is by
      and between Steven J. Pritchard residing
      at ______________, _______ (the
      “Recipient”),
      and
      Coastal Bancshares Acquisition Corp., a Delaware corporation (the “Company”),
      which
      parties, for good and valuable consideration, the receipt and sufficiency of
      which are hereby acknowledged, agree as follows:

     

    1. Introduction.
      The
      Recipient is an employee of the Company, and the Company and the Recipient
      have
      entered into an employment agreement (the “Employment
      Agreement”)
      which
      sets forth the terms and conditions of the employment relationship between
      the
      Company and the Employee. The Company has determined to issue shares of its
      common stock, par value $.01 per share (the “Common
      Stock”),
      to
      certain of its key employees, including the Recipient, in order to aid in
      securing and retaining the employment of such employees, and to provide
      additional incentive to such employees to exert their best efforts on behalf
      of
      the Company. Capitalized terms not otherwise defined herein shall be defined
      as
      set forth in the Employment Agreement.

     

    2. Grant
      of Stock.
      In
      accordance with and subject to the terms, conditions, and restrictions contained
      in this Agreement, the Company hereby grants to the Recipient 25,000 shares
      (the
“Shares”)
      of the
      Common Stock, effective as of ______________ (the “Date
      of Grant”).
      As
      long as the Shares are subject to the Restrictions (as such term is defined
      in
Section
      5
      of this
      Agreement), the Shares shall be deemed to be, and are referred to in this
      Agreement as “Restricted
      Shares.”

     

    3. Certificates
      for Shares.
      Certificates evidencing Restricted Shares shall be deposited with the Company
      to
      be held in escrow until such Shares are released from the Restrictions
      (“Non-Restricted
      Shares”)
      or are
      forfeited in accordance with this Agreement. The Recipient shall, simultaneously
      with the execution and delivery of this Agreement, deliver to the Company a
      stock power, in blank, executed by the Recipient. Upon any Restricted Shares
      becoming Non-Restricted Shares, the Company shall issue and deliver to the
      Recipient a stock certificate or certificates evidencing the Non-Restricted
      Shares, and shall reissue a stock certificate or certificates evidencing any
      remaining Restricted Shares to be held in escrow in accordance with the terms
      of
      this Agreement. If any Restricted Shares are forfeited, the certificate or
      certificates evidencing any such Restricted Shares shall be cancelled and the
      Shares represented thereby shall be returned to the Company’s
      treasury.

     

    4. Adjustments
      in Restricted Shares.
      In the
      event of any change in the outstanding Common Stock by reason of a stock
      dividend or distribution, recapitalization, merger, consolidation, split-up,
      combination, exchange of shares or the like, the Company shall make equitable
      adjustments in the Shares corresponding to adjustments made by the Company
      in
      the number and class of shares of Common Stock. Any new, additional, or
      different securities to which the Recipient shall be entitled in respect of
      Restricted Shares by reason of such adjustment shall be deemed to be Restricted
      Shares and shall be subject to the same terms, conditions, and restrictions
      as
      the Restricted Shares so adjusted.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5. Restrictions.
      During
      applicable periods of restriction determined in accordance with Section
      6
      of this
      Agreement, Restricted Shares and all rights with respect to such Shares, may
      not
      be sold, assigned, transferred, exchanged, pledged, hypothecated, or otherwise
      encumbered or disposed of and shall be subject to the risk of forfeiture
      contained in Section
      6
      of this
      Agreement (such limitations on transferability and risk of forfeiture being
      herein referred to as “Restrictions”),
      but
      the Recipient shall have all other rights of a stockholder, including, but
      not
      limited to, the right to vote and receive dividends on Restricted
      Shares.

     

    6. Forfeiture
      of Restricted Shares.
      In the
      event that the Recipient’s employment with the Company terminates for Good Cause
      or as a result of the termination by the Recipient for any reason other than
      a
      Constructive Termination, such event shall constitute an “Event
      of Forfeiture”
and
      all
      Shares which at that time are Restricted Shares shall thereupon be forfeited
      by
      the Recipient to the Company without payment of any consideration by the
      Company, and neither the Recipient nor any successor, heir, assign, or personal
      representative of the Recipient shall have any right, title, or interest in
      or
      to such Restricted Shares or the certificates evidencing them.

     

    7. Lapse
      of Restrictions.
      The
      Restrictions on the Restricted Shares granted under this Agreement shall lapse
      ratably in accordance with the following schedule: (1) thirty-three and
      one-third percent (33-1/3%) upon the twelve-month anniversary of the Date of
      Grant; (2) thirty-three and one-third percent (33-1/3%) upon the
      twenty-four-month anniversary of the Date of Grant; and (3) thirty-three and
      one-third percent (33-1/3%) upon the thirty-six-month anniversary of the Date
      of
      Grant. In the event of a Change of Control the Restrictions shall lapse on
      all
      of the Restricted Shares (if not already lapsed pursuant to the preceding
      sentence).

     

    8. Withholding
      Requirements.
      Whenever Restrictions lapse with respect to Restricted Shares, the Company
      shall
      have the right to withhold from sums due to the Recipient (or to require the
      Recipient to remit to the Company) an amount sufficient to satisfy any Federal,
      state or local withholding tax requirements prior to delivering any certificate
      evidencing such Shares.

     

    9. Change
      in Control.
      Notwithstanding any other provision of this Agreement, upon any Change in
      Control, as defined below, the Restrictions with respect to any Restricted
      Shares shall lapse and such Restricted Shares shall become Non-Restricted Shares
      upon the effective date of the Change of Control. For purposes of this
      Agreement, a “Change
      in Control”
of
      the
      Company shall be deemed to have occurred if: (a) any person, as such term is
      used in Sections 13(d)(3) and 14(d)(2) of the Securities Exchange Act of 1934,
      as amended, becomes a beneficial owner (within the meaning of Rule 13d-3 under
      such Act) of fifty percent (50%) or more of the Company’s outstanding Common
      Stock; or (b) the Company is merged, consolidated, or reorganized into or with,
      or sells all or substantially all of its assets to, another corporation or
      other
      entity, and immediately after such transaction less than fifty percent (50%)
      of
      the voting power of the then-outstanding securities of such corporation or
      other
      entity immediately after such transaction is held in the aggregate by holders
      of
      the Company’s Common Stock immediately before such transaction.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    10. Effect
      of Employment.
      Nothing
      contained in this Agreement shall confer upon the Recipient the right to
      continue in the employment of the Company or affect any right that the Company
      may have to terminate the employment of the Recipient.

     

    11. Notices.
      All
      notices and other communications under this Agreement shall be in writing.
      Notices shall be hand delivered or sent by United States mail, postage prepaid,
      certified or registered mail, return receipt requested, or by internationally
      recognized courier service. Any notice so delivered or sent shall be deemed
      given on the date of the receipt or first attempted delivery. Notices shall
      be
      sent to the following addresses:

     

    
      	
              To
                the Company:

            	
              Coastal
                Bancshares Acquisition Corp.

            
	 	
              9821
                Katy Freway

            
	 	
              Houston,
                Texas 77024

            
	 	
              Attn:
                Chief Executive Officer

            
	 	 
	
              cc:

            	
              Jenkens
                & Gilchrist, P.C.

            
	 	
              1445
                Ross Avenue, Suite 3700

            
	 	
              Dallas,
                Texas 75202

            
	 	
              Attn:
                Gregory J. Schmitt, Esq.

            
	 	 
	
              To
                the Recipient:

            	
              686
                Military Drive West

            
	 	
              San
                Antonio, Texas 78227

            

    

    

    

    Either
      party may designate a different address by giving the new address to the other
      party.

     

    12. Severability.
      Each
      provision of this Agreement shall be interpreted in such a manner so as to
      be
      valid under applicable law. If any provision of this Agreement shall be invalid
      under applicable law, such provision shall be ineffective to the extent of
      such
      invalidity, without invalidating the remainder of such provision or the
      remaining provisions of this Agreement.

     

    13. Entire
      Agreement.
      The
      parties acknowledge that there are no written or oral agreements between the
      Recipient and the Company regarding the subject matter hereof other than this
      Agreement. This Agreement may not be amended or supplemented except by written
      instrument executed by the parties.

     

    14. Assignment.
      This
      Agreement may not be assigned by the Recipient. This Agreement may not be
      assigned by the Company without the prior written consent of the
      Recipient.

     

    15. Construction.
      The
      headings in this Agreement are for reference purposes only and shall not affect
      in any way the meaning or interpretation of this Agreement. Whenever required
      by
      the context any gender shall include any other gender, the singular shall
      include the plural, and the plural shall include the singular.

     

    16. Choice
      of Law.
      This
      Agreement shall be governed by the laws of the State of Delaware, without
      reference to the choice of law principles thereunder.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    17. Conditions
      upon Issuance.
      The
      Shares that have been awarded to the Recipient are not registered under the
      Securities Act of 1933, as amended. Therefore, as a condition of such award,
      the
      Recipient makes the following representations to the Company: (a) that any
      shares of Common Stock acquired by the Recipient pursuant to this Agreement
      will
      not be sold except pursuant to an effective registration statement under the
      Securities Act of 1933, as amended, or pursuant to an exemption from
      registration under such Act, and (b) that the Recipient has acquired such shares
      of Common Stock for the Recipient’s own account and not with a view to the
      distribution thereof. 

     

    18. Waiver.
      Any
      waiver of any provision of this Agreement shall be effective only if in writing,
      and no waiver of any provision of this Agreement shall constitute a waiver
      of
      any other provision of this Agreement, nor shall such waiver constitute a waiver
      of any subsequent breach of such provision.

     

    19. Plan.
      This
      Agreement, and the Shares issued pursuant hereto, are governed by the terms
      and
      conditions of the Company's Stock Incentive Plan [Note:
      The actual name of the plan will be filled in upon approval by the Company's
      Board of Directors] (the
      "Plan")
      and
      the terms of the Plan shall control in the event of any conflict with the terms
      of this Agreement.

     

    Executed
      as of _______________, 2006.

     

    *          
       *            *            *            *

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    Coastal
      Bancshares Acquisition Corp.

    

      
        	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 
	
                Signed:

              	 

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      B

    

    Restrictive
      Periods

    

    If
      the Employment Agreement terminated by the Bank for Good Cause or by the
      Executive for any reason other than Constructive Termination during the period
      ended:

     

     

    
      	
              (1)

            	
              on
                or prior to the one (1) year anniversary of the Effective
                Date;

            

    

    

    
      	
              (2)

            	
              subsequent
                to the one (1) year anniversary of the Effective Date but on or prior
                to
                the two (2) year anniversary of the Effective
                Date;

            

    

    

    
      	
              (3)

            	
              subsequent
                to the two (2) year anniversary of the Effective Date but on or prior
                to
                the three (3) year anniversary of the Effective Date;
                and

            

    

    

    
      	
              (4)

            	
              subsequent
                to the three (3) year anniversary of the Effective
                Date.

            

    

     

    Then
      the Restrictive Period is:

    

    
      	
              (1)

            	
              three
                (3) years from the date of
                termination;

            

    

    

    
      	
              (2)

            	
              two
                and one-half (21⁄2) years from the date of
                termination;

            

    

    

    
      	
              (3)

            	
              two
                (2) years from the date of termination;
                and

            

    

    

    
      	
              (4)

            	
              one
                (1) year from the date of
                termination.SUBSCRIPTION
      AGREEMENT

    

    Coastal
      Bancshares Acquisition Corp.

    

    April
      5,
      2006

    

    Coastal
      Bancshares Acquisition Corp.

    9821
      Katy
      Freeway

    Suite
      500

    Houston,
      Texas 77024

    

    Ladies
      and Gentlemen:

    

    The
      undersigned (the “Subscriber”)
      understands that Coastal Bancshares Acquisition Corp., a Delaware corporation
      (the “Company”),
      is
      offering for sale to the Subscriber shares of its common stock, par value $0.01
      per share (the “Shares”).
      This
      offer is being made in connection with and as a condition to that certain
      Agreement and Plan of Merger (the “Merger
      Agreement”),
      dated
      as of April 5, 2006, by and between the Company, Coastal Merger Corp., a Texas
      corporation (the “Merger
      Sub”),
      and
      Intercontinental Bank Shares Corporation, a Texas corporation (“Intercontinental”),
      pursuant to which the Merger Sub will merge with and into Intercontinental
      and
      Intercontinental will be the surviving corporation and a wholly-owned subsidiary
      of the Company (the “Merger”).
      Terms
      with their initial letter capitalized and not otherwise defined herein shall
      have the meanings given them in the Merger Agreement. The Subscriber
      acknowledges that it is not acting on the basis of any representations or
      warranties other than those contained in Section 5 hereof and understands
      that the offering of the Shares (the “Offering”)
      is
      being made without registration of the Shares under the Securities Act of 1933,
      as amended (the “Securities
      Act”),
      or
      any securities, “blue sky” or other similar laws of any state or foreign
      jurisdiction (“State
      Securities Laws”).
      

    

    1.  Subscription.
      Subject
      to the terms and conditions of this Subscription Agreement, the Subscriber
      agrees to purchase the Shares in the amount and for the purchase price indicated
      by the Subscriber’s name on the signature page of this Subscription Agreement
      upon the Effective Time of the Merger (the “Effective
      Date”).
      The
      Subscriber agrees that upon the Effective Date this Subscription Agreement
      shall
      be irrevocable and shall survive the death, dissolution or legal incapacity
      of
      the Subscriber.

    

    2.  Payment
      for Shares.
      Upon the
      Effective Date, the Subscriber shall deliver to the Company the consideration
      (“Purchase
      Price”)
      required to purchase the Shares subscribed for under this Subscription
      Agreement. Payment of the Purchase Price shall be made by delivery to the
      Company of a check made payable to the Company in the amount indicated by the
      Subscriber’s name on the signature page of this Subscription
      Agreement.

    

    3.  Funds.
      If the
      conditions of the sale of the Shares specified in Section
      4
      are not
      timely satisfied in full (or waived), the subscription shall be void, all funds
      received from the Subscriber shall be promptly returned to Subscriber, and
      the
      Subscriber shall not become a stockholder of the Company.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    4.  Acceptance
      of Subscription.
      The
      Subscriber understands and acknowledges that (a) the subscription is subject
      to
      the Closing of the Merger, (b) the subscription shall not be valid unless
      and until the Merger is consummated, and (c) notwithstanding anything in
      this Subscription Agreement to the contrary, the Company shall have no
      obligation to issue the Shares to the Subscriber if the issuance of the Shares
      to the Subscriber would constitute a violation of the Securities Act or any
      State Securities Laws.

    

    5.  Representations
      and Warranties of the Company.
      The
      Company represents and warrants that:

    

    (a)  The
      Company is duly organized, validly existing and in good standing under the
      laws
      of its state of organization, with full power and authority to conduct its
      business as it is currently being conducted and to own its assets. The Company
      is also duly qualified to do business, and in good standing as a foreign entity
      authorized to do business, in all jurisdictions in which a failure to so qualify
      would have a material adverse effect on the business condition (financial or
      otherwise), earnings, properties, or results of operations of the Company,
      taken
      as a whole.

    

    (b)  The
      Shares will have been duly authorized and, when issued and paid for in
      accordance with the terms set out in this Subscription Agreement, will be duly
      issued, fully paid and nonassessable.

    

    (c)  As
      of the
      date of this Subscription Agreement, the Company has issued and outstanding
      (i)
      4,447,833 shares of common stock par value $0.01 per share (“Company
      Common Stock”),
      (ii)
      no shares of preferred stock, (iii) 2,072,167 units (each unit (“Unit”)
      consisting of one share of common stock and two warrants (each warrant entitles
      the holder to purchase one share of common stock at a price of $5.00 per share),
      (iv) warrants
      to purchase 6,895,666 shares
      of
      Company Common Stock and (v) an option granted to I-Bankers Securities
      Incorporated and Newbridge Securities Corporation or their affiliates to
      purchase 325,000 Units. Other than the foregoing units, Company Common Stock,
      Units, warrants and option, the
      Company has not issued any other shares of its capital stock and there are
      no
      outstanding options, warrants, subscriptions or other rights or obligations
      to
      purchase or acquire any of such shares, nor any outstanding securities
      convertible into or exchangeable for such shares.

    

    6.  Representations
      and Warranties of the Subscriber.
      The
      Subscriber represents and warrants to and covenants with the Company and each
      officer, director, stockholder and agent of the Company as follows:

    

    (a)  General.

    

    (i)  The
      Subscriber has all requisite authority to enter into this Subscription Agreement
      and to perform all of the obligations required to be performed by the Subscriber
      under this Subscription Agreement.

    

    (ii)  The
      Subscriber is the sole party in interest and is not acquiring the Shares as
      an
      agent or otherwise for any other person. The Subscriber is a resident of the
      jurisdiction set forth opposite its name on the signature page of this
      Subscription Agreement and (A) if a corporation, partnership, trust or
      other form of business organization, it has its principal office within that
      jurisdiction, (B) if an individual, he or she has his or her principal
      residence in that jurisdiction, and (C) if a corporation, partnership,
      trust or other form of business organization that was organized for the specific
      purpose of acquiring the Shares, all of the beneficial owners are residents
      of
      that jurisdiction.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    (iii)  The
      Subscriber acknowledges that there are no consents or approvals of governmental
      authorities or third parties that are required for the execution and delivery
      of
      this Subscription Agreement by him; the execution of this Subscription Agreement
      by the Subscriber shall not constitute a default under any material contract
      or
      agreement to which the Subscriber is bound; and no agreement or obligation
      exists that affects the Subscriber that has the effect of restricting the
      ability of the Subscriber to perform its obligations under this Subscription
      Agreement.

    

    (iv)  The
      Subscriber acknowledges that there is no litigation, action, suit, arbitration,
      governmental investigation or other proceeding pending or, to the best knowledge
      of the Subscriber threatened, to which the Subscriber is party that, if
      adversely determined, could have a material adverse effect on, or enjoin,
      restrict or otherwise prevent, the consummation of any of the transactions
      contemplated by this Subscription Agreement or the ability of the Subscriber
      to
      perform its obligations under this Subscription Agreement. 

     

    (v)  The
      Subscriber acknowledges that this Subscription Agreement and all agreements,
      instruments and documents executed by the Subscriber or to be caused to be
      executed by the Subscriber in connection therewith will be duly authorized,
      executed and delivered by, are binding upon the Subscriber and are enforceable
      against the Subscriber in accordance with their terms.

    

    (vi)  The
      Subscriber acknowledges that (A) it has the authority to enter into this
      Subscription Agreement and consummate the transactions provided herein, and
      (B)
      nothing prohibits or restricts the right or ability of the Subscriber to close
      the transactions contemplated by this Subscription Agreement and carry out
      the
      terms hereof. The Subscriber acknowledges that neither this Subscription
      Agreement, nor any agreement, document or instrument executed or to be executed
      in connection with the same, nor anything provided in or contemplated by this
      Subscription Agreement or any such other agreement, document or instrument,
      does
      now or shall hereafter breach, invalidate, cancel, make inoperative or interfere
      with, or result in the acceleration or maturity of, any contract, agreement,
      lease, easement, right or interest, affecting or relating to the Subscriber.
      

    

    (vii)  The
      Subscriber acknowledges that there are no bankruptcy or insolvency proceedings
      pending or contemplated by or against him.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    (b)  Information
      Concerning the Company.

     

    (i)  The
      Subscriber understands that the Company is a special purpose acquisition company
      and has no current business or material assets other than cash, its rights
      and
      obligations under the Merger Agreement and the capital stock of its
      subsidiaries. The Subscriber is the Chief Executive Officer of Intercontinental,
      is familiar with the proposed business, properties, operations and prospects
      of
      Intercontinental and, at a reasonable time prior to the execution of this
      Subscription Agreement, has been afforded the opportunity to ask questions
      of
      and received satisfactory answers from the Company’s officers and directors, or
      other persons acting on the Company’s behalf, concerning the proposed business,
      properties, operations and prospects of the Company subsequent to the Merger
      and
      concerning the terms and conditions of the offering of the Shares and has asked
      any questions it desires to ask and all such questions have been answered to
      the
      full satisfaction of the Subscriber. The Subscriber acknowledges that,
      subsequent to the Merger, other than the cash of the Company remaining after
      the
      Merger, substantially all of the business properties and assets of the Company
      will be those of Intercontinental. 

    

    (ii)  The
      Subscriber understands that the purchase of the Shares involves various risks,
      including, but not limited to, those outlined in this Subscription
      Agreement.

    

    (iii)  The
      Subscriber acknowledges and agrees that no representations or warranties have
      been made to the Subscriber by the Company as to the tax consequences of this
      investment, or as to profits, losses or cash flow that may be received or
      sustained as a result of this investment.

    

    (iv)  All
      documents, records and books pertaining to a proposed investment in the Shares
      which the Subscriber has requested have been made available to the
      Subscriber.

    

    (c)  Status
      of the Subscriber.

    

    (i)  The
      Subscriber has such knowledge and experience in financial and business matters
      that the Subscriber is capable of evaluating the merits and risks of an
      investment in the Shares. The Subscriber is able to bear the economic risk
      of
      this investment. The Subscriber has had the opportunity to consult with the
      Subscriber’s own attorney, accountant and/or purchaser representative regarding
      this Subscriber’s investment in the Shares and their suitability for purchase by
      the Subscriber, and to the extent necessary, the Subscriber has retained, at
      the
      Subscriber’s own expense, and relied upon, such attorney, accountant and/or
      purchaser representative, or other appropriate professional advice, regarding
      the investment, tax and legal merits, risks and consequences of this
      Subscription Agreement and of purchasing and owning the Shares.

    

    (ii)  The
      Subscriber represents that the Subscriber is (CHECK
      EACH CATEGORY OF “ACCREDITED INVESTOR” BELOW, IF ANY, WHICH IS APPLICABLE TO THE
      SUBSCRIBER):

    

    (
      ) A.
      a
      natural person whose individual net worth, or joint net worth with that person's
      spouse, at the time of his purchase exceeds $1,000,000;

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    (
      ) B.
      a
      natural person who had an individual income in excess of $200,000 in each of
      the
      two most recent years or joint income with that person's spouse in excess of
      $300,000 in each of those years and has a reasonable expectation of reaching
      the
      same income level in the current year;

    

    (
      ) C.
      an
      organization described in Section 501(c)(3) of the Internal Revenue Code, a
      corporation, Massachusetts or similar business trust, or a partnership, with
      total assets in excess of $5,000,000, and which was not formed for the specific
      purpose of acquiring the Shares;

    

    (
      ) D.
      a
      trust, with total assets in excess of $5,000,000 not formed for the specific
      purpose of acquiring the Shares whose purchase is directed by a person who
      has
      knowledge and experience in financial and business matters that he is capable
      of
      evaluating the merits and risks of an investment in Shares; or

    

    (
      ) E.
      an
      entity in which all of the equity owners are Accredited Investors (as listed
      in
      categories (A)-(D)).

    

    (iii)  The
      Subscriber agrees to furnish any additional information requested to assure
      compliance with applicable Federal and State Securities Laws in connection
      with
      the purchase and sale of the Shares.

    

    (d)  Restrictions
      on Transfer or Sale of the Shares.

    

    (i)  The
      Subscriber is acquiring the Shares described solely for the Subscriber’s own
      beneficial account, for investment purposes, and not with view to, or for resale
      in connection with, any distribution of the Shares. The Subscriber understands
      that the offer and the sale of the Shares has not been registered under the
      Securities Act or any State Securities Law by reason of specific exemptions
      under the provisions thereof that depend in part upon the investment intent
      of
      the Subscriber and of the other representations made by the Subscriber in this
      Subscription Agreement. The Subscriber understands that the Company is relying
      upon the representations, covenants and agreements contained in this
      Subscription Agreement (and any supplemental information) for the purposes
      of
      determining whether this transaction meets the requirements for those
      exemptions.

    

    (ii)  The
      Subscriber understands that the Shares are “restricted securities” under
      applicable federal securities laws and that the Securities Act and the rules
      of
      the Securities and Exchange Commission (the “Commission”)
      provide in substance that the Subscriber may dispose of the Shares only pursuant
      to an effective registration statement under the Securities Act or an exemption
      therefrom, and the Subscriber understands that the Company has no obligation
      or
      intention to register any of the Shares purchased by the Subscriber or to take
      action so as to permit sales pursuant to the Securities Act (including Rule
      144). As a consequence, the Subscriber understands that there is no public
      market for the Shares and the Subscriber therefore must bear the economic risks
      of the investment in the Shares for an indefinite period of time. The Subscriber
      understands that the Subscriber may not at any time demand the purchase by
      the
      Company of the Subscriber’s Shares.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    (iii)  The
      Subscriber agrees: (A) that the Subscriber will not sell, assign, pledge,
      give, transfer or otherwise dispose of the Shares or any interest therein,
      or
      make any offer or attempt to do any of the foregoing, except pursuant to a
      registration of the Shares under the Securities Act and all applicable State
      Securities Laws or in a transaction that is exempt from the registration
      provisions of the Securities Act and all applicable State Securities Laws;
      (B) that the Company and any transfer agent for the Shares shall not be
      required to give effect to any purported transfer of any of the Shares except
      upon compliance with the foregoing restrictions; and (C) that a legend in
      substantially the following form will be placed on the certificates representing
      the Shares, if any certificates are issued:

    

    “THESE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. THE SHARES
      HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
      OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH
      RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY
      TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT
      TO
      RULE 144 OF SUCH ACT.”

    

    

    (iv)  The
      Subscriber has not offered or sold any portion of the Shares subscribed for
      and
      has no present intention of dividing the Shares with others or of reselling
      or
      otherwise disposing of any portion of the Shares either currently or after
      the
      passage of a fixed or determinable period of time or upon the occurrence on
      nonoccurrence of any predetermined event or circumstance.

    

    7.  Survival
      and Indemnification.
      All
      representations, warranties and covenants contained in this Agreement and the
      indemnification contained in this Section
      7
      shall
      survive (a) the acceptance of this Subscription Agreement by the Company,
      (b) changes in the transactions, documents and instruments described in
      this Subscription Agreement that are not material or that are to the benefit
      of
      the Subscriber, and (c) the death or disability of the Subscriber. The
      Subscriber acknowledges the meaning and legal consequences of the
      representations, warranties and covenants in determining the Subscriber’s
      qualification and suitability to purchase the Shares. The Subscriber agrees
      to
      indemnify, defend and hold harmless the Company, and its stockholders, officers,
      directors, employees, agents and controlling persons, from and against any
      and
      all losses, claims, damages, liabilities, expenses (including attorneys’ fees
      and disbursements), judgments or amounts paid in settlement of actions arising
      out of or resulting from the untruth or any representation, or the breach of
      any
      warranty or covenant, made by the Subscriber in this Subscription Agreement.
      Notwithstanding the foregoing, however, no representation, warranty, covenant
      or
      acknowledgment made by the Subscriber shall in any manner be deemed to
      constitute a waiver of any rights granted to him under the Securities Act or
      State Securities laws.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    8.  Notices.
      All
      notices and other communications provided for in this Subscription Agreement
      shall be in writing and shall be deemed to have been duly given if delivered
      personally or sent by registered or certified mail, return receipt requested,
      postage prepaid, telecopier, overnight air courier guaranteeing next day
      delivery, or electronic mail:

    

    (a)         
       if
      to the
      Company, to it at the following address:

    

    Coastal
      Bancshares Acquisition Corp.

    9821
      Katy
      Freeway, Suite 500

    Houston,
      Texas 77024 

    Attn: Cary
      M.
      Grossman, Co-Chief Executive Officer

    

    (b)         
       if
      to the
      Subscriber, to the address set forth on the signature page hereto, or at such
      other address as either party shall have specified by notice in writing to
      the
      other.

    

    All
      notices and communications shall be deemed to have been duly given: at the
      time
      delivered by hand, if personally delivered; when receipt acknowledged, if
      mailed, telecopied, sent by electronic mail, or sent by overnight air courier.
      If a notice or communication is mailed in the manner provided above within
      the
      time prescribed, it is duly given, whether or not the addressee receives
      it.

    

    9.  Assignability.
      This
      Subscription Agreement is not assignable by the Subscriber, and may not be
      modified, waived or terminated except by an instrument in writing signed by
      the
      party against whom enforcement of such modifications, waiver or termination
      is
      sought.

    

    10.  Binding
      Effect.
      Except
      as otherwise provided in this Subscription Agreement, this Subscription
      Agreement shall be binding upon and inure to the benefit of the parties and
      their heirs, executors, administrators, successors, legal representatives and
      assigns, and the agreements, representations, warranties and acknowledgments
      contained in this Subscription Agreement shall be deemed to be made by and
      be
      binding upon such heirs, executors, administrators, successors, legal
      representatives and assigns. If the Subscriber is more than one person, the
      obligation of the Subscriber shall be joint and several and the agreements,
      representations, warranties and acknowledgments contained herein shall be deemed
      to be made by and be binding upon each such person and his heirs, executors,
      administrators and successors.

    

    11.  Entire
      Agreement.
      This
      Subscription Agreement constitutes the entire agreement of the Subscriber and
      the Company relating to the matters contained herein, superseding all prior
      contracts or agreements, whether oral or written.

    

    12.  Governing
      Law.
      This
      Subscription Agreement shall be governed and controlled as to the validity,
      enforcement, interpretations, construction and effect and in all other aspects
      by the substantive laws of the State of Delaware, without reference to conflicts
      of laws principles.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    13.  Severability.
      If any
      provision of this Subscription Agreement or the application thereof to any
      subscriber or circumstance shall be held invalid or unenforceable to any extent,
      the remainder of this Subscription Agreement and the application of such
      provision to other subscriptions or circumstances shall not be affected thereby
      and shall be enforced to the greatest extent permitted by law.

    

    14.  Headings.
      The
      headings in this Subscription Agreement are inserted for convenience and
      identification only and are not intended to describe, interpret, define, or
      limit the scope, extent or intent of this Subscription Agreement or any
      provision of this Subscription Agreement.

    

    15.  Counterparts.
      This
      Subscription Agreement may be executed in any number of counterparts, each
      of
      which when so executed and delivered shall be deemed to be an original and
      all
      of which together shall be deemed to be one and the same
      agreement.

    

    [Signature
      page follows.]

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the undersigned Subscriber has executed this Subscription
      Agreement to be effective as of the date first above written.

    

    Common
      Stock: 74,075 Shares

    

    Total
      Purchase Price: $500,000

     

    
      	 	 	 
	 	Signature: 
              	/s/
              Steven J. Pritchard
	 	
            	
              
Steven
              J. Pritchard 
	 	Address: 	
              __________________________________

            
	 	______________________________
	 	
              Federal Tax ID No.:
                ____________________________

            
	 	[Please also complete and
              return a Form
              W-9 with 
	 	this Subscription
              Agreement]

    

    

      [Signature
        Page to Steven J. Pritchard Subscription
        Agreement] 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    AGREED
      TO AND ACCEPTED BY:

    

    COASTAL
      BANCSHARES ACQUISITION CORP.

    

      
        	
                By:

              	
                /s/Cary
                  M. Grossman

              	 
	
                Name:

              	
                Cary
                  M. Grossman

              	 
	
                Title:

              	
                Chief
                  Executive Officer

              	 

      

    

    

    [Signature
      Page to Steven J. Pritchard Subscription Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}]]