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Exhibit 10.3    
    

 
  PROMOTIONAL SHARES LOCK-IN AGREEMENT
  
    Class B Issuer    
    

	I.
	This
Promotional Shares Lock-In Agreement ("Agreement"), which was entered into on the            day
of                        , 2004, by and between Treaty Oak
Bancorp, Inc. ("Issuer"), whose principal place of business is located in Austin, Texas, and ("Security Holder") witnesses that:

	A.
	The
Issuer has filed an application with the Securities Administrator of the State of Texas ("Administrators") to register certain of its Equity Securities for sale to public investors
who are residents of those states ("Registration");

	B.
	The
Security Holder is the owner of the shares of common stock or similar securities and/or possesses convertible securities, warrants, options or rights which may be converted into,
or exercised to purchase shares of common stock or similar securities of Issuer.

	C.
	As
a condition to Registration, the Issuer and Security Holder ("Signatories") agree to be bound by the terms of this Agreement.

	II.
	THEREFORE,
the Security Holder agrees not to sell, pledge, hypothecate, assign, grant any option for the sale of, or otherwise transfer or dispose of, whether or not for
consideration, directly or indirectly, PROMOTIONAL SHARES as defined in the North American Securities Administrators Association ("NASAA") Statement of Policy on Corporate Securities Definitions and
all certificates representing stock dividends, stock splits, recapitalizations, and the like, that are granted to, or received by, the Security Holder while the PROMOTIONAL SHARES are subject to this
Agreement ("Restricted Securities"). 

Beginning
two years from the completion date of the public offering, two and one-half percent (21/2%) of the Restricted Securities may be released each quarter pro rata
among the Security Holders. All remaining Restricted Securities shall be released from this Agreement on the fourth anniversary from the completion date of the public offering. 

	III.
	THEREFORE,
the Signatories agree and will cause the following:

	A.
	In
the event of a dissolution, liquidation, merger, consolidation, reorganization, sale or exchange of the Issuer's assets or securities (including by way of tender offer), or any
other transaction or proceeding with a person who is not a Promoter, which results in the distribution of the Issuer's assets or securities ("Distribution"), while this Agreement remains in effect
that: 

        1.     All
holders of the Issuer's EQUITY SECURITIES will initially share on a pro rata, per share basis in the Distribution, in proportion to the amount of cash or other
consideration that they paid per share for their EQUITY SECURITIES (provided that the Administrator has accepted the value of the other consideration), until the shareholders who purchased the
Issuer's EQUITY SECURITIES pursuant to the public offering ("Public Shareholders") have received, or have had irrevocably set aside for them, an amount that is equal to one hundred percent (100%) of
the public offering's price per share times the number of shares of EQUITY SECURITIES that they purchased pursuant to the public offering and which they still hold at the time of the Distribution,
adjusted for stock splits, stock dividends recapitalizations and the like; and 

        2.     All
holders of the Issuer's EQUITY SECURITIES shall thereafter participate on an equal, per share basis times the number of shares of EQUITY SECURITIES they hold at the
time of the Distribution, adjusted for stock splits, stock dividends, recapitalizations and the like. 

        3.     The
Distribution may proceed on lesser terms and conditions than the terms and conditions stated in paragraphs 1 and 2 above if a majority of the EQUITY SECURITIES that
are not held by Security Holders, officers, directors, or Promoters of the Issuer, or their associates or affiliates vote, or consent by consent procedure, to approve the lesser terms and conditions. 

	B.
	In
the event of a dissolution, liquidation, merger, consolidation, reorganization, sale or exchange of the Issuer's assets or securities (including by way of tender offer), or any
other transaction or proceeding with a person who is a Promoter, which results in a Distribution while this Agreement remains in effect, the Restricted Securities shall remain subject to the terms of
this Agreement.

	C.
	Restricted
Securities may be transferred by will, the laws of descent and distribution, the operation of law, or by order of any court of competent jurisdiction and proper venue.

	D.
	Restricted
Securities of a deceased Security Holder may be hypothecated to pay the expenses of the deceased Security Holder's estate. The hypothecated Restricted Securities shall
remain subject to the terms of this Agreement. Restricted Securities may not be pledged to secure any other debt.

	E.
	Restricted
Securities may be transferred by gift to the Security Holder's family members, provided that the Restricted Securities shall remain subject to the terms of this Agreement.

	F.
	With
the exception of paragraph A.3 above, the Restricted Securities shall have the same voting rights as similar EQUITY SECURITIES not subject to the Agreement.

	G.
	A
notice shall be placed on the face of each stock certificate of the Restricted Securities covered by the terms of the Agreement stating that the transfer of the stock evidenced by
the certificate is restricted in accordance with the conditions set forth on the reverse side of the certificate; and

	H.
	A
typed legend shall be placed on the reverse side of each stock certificate of the Restricted Securities representing stock covered by the Agreement which states that the sale or
transfer of the shares evidenced by the certificate is subject to certain restrictions until                        (insert date
of termination of the Agreement) pursuant to an agreement between the Security
Holder (whether beneficial or of record) and the Issuer, which agreement is on file with the Issuer and the stock transfer agent from which a copy is available upon request and without charge.

	I.
	The
term of this Agreement shall begin on the date that the Registration is declared effective by the Administrators ("Effective Date") and shall terminate: 

        1.     On
the fourth anniversary from the completion date of the public offering; or 

        2.     On
the date the Registration has been terminated if no securities were sold pursuant thereto; or 

        3.     If
the Registration has been terminated, the date that checks representing all of the gross proceeds that were derived therefrom and addressed to the public investors
have been placed in the U.S. Postal Service with first class postage affixed; or 

        4.     On
the date the securities subject to this Agreement become "Covered Securities," as defined under the National Securities Markets Improvement Act of 1996. 

	J.
	This
Agreement to be modified only with the written approval of the Administrator.

	IV.
	THEREFORE,
the Issuer will cause the following:

	A.
	A
manually signed copy of the Agreement signed by the Signatories to be filed with the Administrator prior to the Effective Date; 

	B.
	Copies
of the Agreement and a statement of the per share initial public offering price to be provided to the Issuer's stock transfer agent;

	C.
	Appropriate
stock transfer orders to be placed with the Issuer's stock transfer agent against the sale or transfer of the shares covered by the Agreement prior to its expiration,
except as may otherwise be provided in this Agreement;

	D.
	The
above stock restriction legends to be placed on the periodic statement sent to the registered owner if the securities subject to this Agreement are uncertificated securities. 

Pursuant
to the requirements of this Agreement, the Signatories have entered into this Agreement, which may be written in multiple counterparts and each of which shall be considered an original. The
Signatories have signed the Agreement in the capacities, and on the dates, indicated. 

IN
WITNESS WHEREOF, the Signatories have executed this Agreement. 

TREATY
OAK BANCORP, INC. 

	By	 
	 	

	

 President
	

Signature
	

 Printed Name of Security Holder
	

 Title, if applicable

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Exhibit 10.3

PROMOTIONAL SHARES LOCK-IN AGREEMENT Class B IssuerQuickLinks
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Exhibit 10.4    
    

 
 

ESCROW AGREEMENT    
    

        THIS ESCROW AGREEMENT (the "Agreement") is made as
of                        by and between Treaty Oak Bancorp, Inc., a Texas corporation ("Treaty Oak") and
TIB-The Independent BankersBank, Irving, Texas as Escrow Agent (the "Escrow Agent") and provides as follows: 

RECITALS  

        Treaty Oak is a proposed bank holding company that intends to offer securities under a registered public offering filed with the Securities and Exchange
Commission (the "Offering"). Interested investors may subscribe for shares of Treaty Oak's stock by delivering to Treaty Oak a check for the amount of securities subscribed for and an executed
Subscription Agreement in the form attached hereto. Treaty Oak will then forward the check to the Escrow Agent to hold such items, invest such funds, and distribute the subject matter of the escrow as
provided for herein. 

        NOW, THEREFORE, for and in consideration of the mutual covenants set forth herein, the parties agree as follows: 

        1.     The
Escrow Agent shall receive the Subscription Agreement and checks for the subscription of shares. The Escrow Agent shall negotiate such checks and deposit such
resulting funds (the "Funds") in an insured account of the Escrow Agent. The Escrow Agent may accumulate the Funds up to a maximum of $100,000 in the deposit account and shall from time to time invest
the Funds in United States Government Securities until the Escrow Agent is authorized to disburse the Funds pursuant to this Agreement. The Escrow Agent shall not invest the Funds in anything other
than United States Government Securities. 

        2.     The
Escrow Agent shall maintain a list of the names of the persons who have subscribed for shares and the amount which is subscribed. The Escrow Agent shall make such
list available to Treaty Oak upon request. 

        3.     The
Escrow Agent shall disburse the Funds (plus or minus any profits or losses associated with the investment thereon) as follows: 

        (a)   To
Treaty Oak upon receipt of a certificate executed by the Chief Executive Officer of Treaty Oak certifying that Treaty Oak has accepted subscriptions for at least
$3,000,000 initially, and then for each additional $1,000,000 thereafter; 

        (b)   To
each subscriber upon receipt of written instruction by Treaty Oak directing the Escrow Agent to so return the Funds; 

        (c)   To
any individual subscriber whose subscription is not accepted by Treaty Oak (or any pro rata part thereof) upon receipt of written instruction to so return such Funds
by Treaty Oak. 

Notwithstanding
any other provision hereof to the contrary except for paragraph 5(g) which shall govern over this paragraph, the Escrow Agent shall not disburse any of the Funds unless and
until the Escrow Agent receives written authorization from Treaty Oak to disburse the Funds. 

        4.     Representations. Treaty Oak represents and warrants to Escrow Agent that it has the power and
authority to enter into this Escrow Agreement and direct control of the funds deposited into escrow pursuant hereto. 

        5.     Rights and Liabilities of Escrow Agent. Treaty Oak agrees that the following provisions shall
control with respect to the rights, duties, liabilities, privileges and immunities of the Escrow Agent. 

        (a)   The
Escrow Agent is not a party to, and is not bound by, or charged with notice of, any agreement out of which this escrow may arise. 

 

        (b)   The
Escrow Agent acts hereunder as a depository only, and is not responsible or liable in any manner whatsoever for the sufficiency, correctness, genuineness or validity
of the subject matter of the escrow, or any part thereof, or for the form or execution thereof, or for the identity or authority of any person executing or depositing it, or for any level of loss or
profitability of investments of the Funds in accordance with this Agreement or pursuant to the instructions of Treaty Oak.. 

        (c)   In
the event the Escrow Agent becomes involved in litigation in connection with this escrow, Treaty Oak agrees to indemnify and save the Escrow Agent harmless from all
loss, cost, damages, expenses and attorney's fees suffered or incurred by the Escrow Agent as a result thereof other than those losses, costs, damages, expenses or attorney's fees suffered or incurred
as a result of Escrow Agent's gross negligence or willful misconduct. The obligations of Treaty Oak under this paragraph shall be performable at the office of the Escrow Agent in Irving, Texas. 

        (d)   The
Escrow Agent shall be protected in acting upon any written notice, request, waiver, consent, certificate, receipt, authorization, power of attorney or other paper or
document which the Escrow Agent in good faith believes to be genuine and what it purports to be. 

        (e)   The
Escrow Agent shall not be liable for anything which it may do or refrain from doing in connection herewith, except its own gross negligence or willful misconduct. 

        (f)    The
Escrow Agent may advise with legal counsel in the event of any dispute or question as to the construction of any of the provisions hereof or its duties hereunder,
and it shall incur no liability and shall be fully protected in acting in accordance with the opinion and instructions of such counsel. 

        (g)   In
the event of any disagreement between the parties to this Agreement, or between them or either or any of them and any other person, resulting in adverse claims or
demands being made in connection with the subject matter of the escrow, or in the event that the Escrow Agent in good faith, be in doubt as to what action it should take hereunder, the Escrow Agent
may, at its option, refuse to comply with any claims or demands on it, or refuse to take any other action hereunder, so long as such disagreement continues or such doubt exists, and in any such event
the Escrow Agent shall not be or become liable in any way or to any person for its failure or refusal to act, and the Escrow Agent shall be entitled to continue so to refrain from acting until: 

        (i)    the
rights of all parties shall have been fully and finally adjudicated by a court of competent jurisdiction; or 

        (ii)   all
differences shall have been adjusted and all doubt resolved by agreement among all of the interested persons, and the Escrow Agent shall have been notified thereof,
in writing signed by all such persons. 

In
the event of any dispute or disagreement, the Escrow Agent shall be entitled to recover from Treaty Oak all costs, fees and expenses incurred by it as a result thereof. The rights of the Escrow
Agent under this paragraph are cumulative of all other rights which it may have by law or otherwise. 

        6.     Miscellaneous. 

        (a)   Treaty
Oak shall pay Escrow Agent for normal services an escrow fee of $5,000.00 annually. The escrow fee shall be pro rata for the period of time escrow services are
actually provided by the Escrow Agent. If any services in addition to holding, investing, and disbursing the Funds as specifically contemplated by this Agreement shall be required, Escrow Agent shall
be entitled to reasonable compensation for such services. 

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        (b)   Escrow
Agent may resign as escrow agent hereunder at any time upon written notice to Treaty Oak, at least ten (10) days prior to the date specified for such
resignation to take effect. Upon the effective date of such resignation, Escrow Agent may deliver all cash or other property in its possession under this Escrow Agreement to any successor escrow agent
appointed by Treaty Oak, or if no successor escrow agent has been appointed, to any court of competent jurisdiction in Dallas County, Texas. Upon such delivery, Escrow Agent shall be released from any
and all further liability under this Agreement. A termination under this paragraph shall in no way change the terms of this Agreement affecting reimbursement of expenses, indemnity and fees. 

        (c)   This
Agreement may be amended only by the written agreement of Treaty Oak and Escrow Agent. This Agreement shall inure to and be binding upon the parties hereto and
their respective successors, heirs and assigns. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. 

3

 

EXECUTED as of the            day
of                        , 2003. 

	TREATY OAK BANCORP, INC.	 	 
	

By:	
 	

  
 Jeffrey Nash

Executive Vice President	
 	

 
	

TIB-THE INDEPENDENT BANKERSBANK	
 	

 
	

By:	
 	

  
 Barry B. Renfroe

Senior Vice President	
 	

 

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QuickLinks

Exhibit 10.4

ESCROW AGREEMENT

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