Document:

EX-10.17

 Exhibit 10.17 

THIRD COAST BANK, SSB 

SALARY CONTINUATION AGREEMENT 

THIS SALARY CONTINUATION AGREEMENT (this “Agreement”) is made by and between Third Coast Bank, SSB, Humble, Texas, a Texas
banking association (the “Bank”), or any other successor, transferee, or assignees, and Audrey Duncan (the “Executive”). 

INTRODUCTION 
 To
encourage the Executive to remain an employee of the Bank, the Bank is willing to provide salary continuation benefits to the Executive. The Bank will pay the benefits from its general assets. 

AGREEMENT 
 The Executive
and the Bank agree as follows: 
 ARTICLE 1 

DEFINITIONS 
 1.1
Definitions. Whenever used in this Agreement, the following words and phrases shall have the meanings specified: 

1.1.1 “Accrual Balance” means the liability amount due under this Agreement and set forth on the financial
statements of the Bank, determined in accordance with generally accepted accounting principles and utilizing the Discount Rate. 

1.1.2 “Beneficiary” means each person designated pursuant to Article 4, or the estate of the deceased
Executive, entitled to benefits, if any, upon the death of the Executive. 
 1.1.3 “Beneficiary Designation
Form” means the form established from time to time by the Plan Administrator, attached to this Agreement as Exhibit A, that the Executive completes, signs, and returns to the Plan Administrator to designate one or more Beneficiaries. 

1.1.4 “Cause” means as defined in an Employment Agreement. If no Employment Agreement exists, or if an
Employment Agreement exists but cause is not defined therein, then “cause” means: 
 (a) the Executive’s
willful failure to perform the Executive’s material duties (other than any such failure resulting from incapacity due to physical or mental illness); 

(b) the Executive’s willful failure to comply with any valid and legal directive of the Executive’s supervisor or the
Board of Directors; 
 (c) the Executive’s engagement in dishonesty, illegal conduct or misconduct, which is, in each
case as determined by the Bank, in its sole discretion, materially injurious to the Bank, the Holding Company, or any of their affiliates; 

  

			
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 (d) the Executive’s embezzlement, misappropriation or fraud, whether or
not related to Executive’s employment with the Bank; 
 (e) the Executive’s commission of or plea of guilty or nolo
contendere to a crime that constitutes a felony (or state law equivalent) or a crime that constitutes a misdemeanor involving moral turpitude; 

(f) the Executive is or becomes a person described in the Federal Deposit Insurance Act (the “FDI
Act”), Section 19(a)(1)(A) who has not received the Federal Insurance Corporation’s prior consent to participate in the Bank’s affairs under the “FDIC State of Policy for Section 19 of the FDI Act’’
or any successor thereto; 
 (g) the Executive’s willful violation of a material policy or code of conduct of the Bank,
including its Insider Trading Policy or Code of Ethics; or 
 (h) the Executive’s material breach of any material
obligation under this Agreement, including, but not limited to, Sections 5.7 and 5.8 of this Agreement, or any other written agreement between the Executive and the Bank and/or the Holding Company. 

Notwithstanding the foregoing, the Executive shall not be deemed to have been terminated by reason of violating Sections
1.1.4(a), (b), (c), (g) or (h) until the Executive is notified in writing by the Bank (or its successor entity) of a determination of a violation of Sections 1.1.4(a), (b), (c), (g) or (h), specifying the particulars thereof in reasonably
sufficient detail, and giving the Executive a reasonable opportunity (of not less than ten (10) days), together with his/her counsel, to explain to the Bank why there has been no violation of Sections 1.1.4(a), (b), (c), (g) or (h), followed by a
finding by the Bank (i) that in the good faith opinion of the Bank (or its successor entity), the Executive had committed an act described in Sections 1.1.4(a), (b), (c), (g) or (h) above, (ii) specifying the particulars thereof in detail,
and (iii) determining that such violation has not been corrected, or is not capable of correction. 
 1.1.5
“Change in Control” means and includes a change in ownership or effective control of the Bank or Holding Company or in the ownership of a substantial portion of the assets of the Bank or Holding Company, within the meaning of Code
Section 409A and as described in Treasury Regulations §§ 1.409A-3(i)(5). 

1.1.6 “Change in Control Benefit’’ means the benefit described in Section 2.5. 

1.1.7 “Code” means the Internal Revenue Code of 1986, as amended. 

1.1.8 “Death Benefit” means the benefit described in Article 3. 

1.1.9 “Disability” means that the Executive is determined to be totally disabled by the Social Security
Administration. 
 1.1.10 “Disability Benefit” means the benefit described in Section 2.4. 

  

			
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 1.1.11 “Discount Rate” means 5.5%, subject to change based
upon regulatory requirements. 
 1.1.12 “Effective Date” means June 23, 2020. 

1.1.13 “Employment Agreement” means a then-current employment agreement or similar agreement between the
Executive and the Bank and/or the Holding Company. 
 1.1.14 “ERISA” means the Employee Retirement Income
Security Act of 1974, as amended. 
 1.1.15 “Holding Company” means Third Coast Bancshares, Inc., a Texas
corporation and registered bank holding company. 
 1.1.16 “Involuntary Termination Date” means the month,
day and year in which Involuntary Termination of Employment occurs. 
 1.1.17 “Involuntary Termination of
Employment” means the Termination of Employment before the Normal Retirement Age for any reason other than death, Disability, Cause, or Change in Control either: 

(a) by the Bank or the Holding Company or 

(b) by the Executive for Good Reason if ‘‘good reason” is defined in the Employment Agreement (if no Employment
Agreement exists or if “good reason” is not defined in the Employment Agreement then this subpart shall not apply). 

1.1.18 “Normal Retirement Age” means age sixty-two
(62) years old. 
 1.1.19 “Normal Retirement Benefit” means the benefit described in Section 2.1.

 1.1.20 “Plan Administrator” means the plan administrator described in Article 8. 

1.1.21 “Plan Year” means each twelve (12) month period commencing on January 1st and ending on December 31st. Notwithstanding the preceding, the initial Plan Year shall begin on the Effective Date and shall end December 31,
2020. 
 1.1.22 “Termination of Employment” shall mean a termination of the Executive’s employment,
whether voluntary or involuntary, for any reason whatsoever, determined as follows: 
 (c) Generally. An Executive
terminates employment when the facts and circumstances indicate that the Bank and the Executive reasonably anticipate that the Executive will perform no further services for the Bank or an affiliate of the Bank, or that the level of bona fide
services the Executive will perform for the Bank and affiliates of the Bank will permanently decrease to no more than twenty percent (20%) of the average level of bona fide services the Executive performed over the immediately preceding thirty-six (36)-month period (or the full period of service if 

  

			
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the Executive has been providing services to the Bank and affiliates of the Bank for less than thirty-six (36)-months) (the “36-month average”).

 (d) Rebuttable Presumptions. Barring contrary facts and circumstances, the Bank shall presume (i) that a
decrease in bona fide services to twenty percent (20%) or less of the 36-month average constitutes a termination of employment, and (ii) that continued bona fide services at fifty percent (50%) or more of the
36-month average does not constitute a termination of employment. 
 (e) Employee
v. Contractor. For purposes of the foregoing, services include those performed as an employee or as an independent contractor. 

(f) Leave of Absence. If an Executive takes a bona fide paid leave of absence (as defined in Treasury Regulation § 1.409A-1(h)(1)) and has not otherwise terminated employment, the Bank shall treat the Executive as providing bona fide services at a level equal to the level of services that the Executive would have been required
to perform to receive the compensation paid with respect to such leave of absence. Periods during which an Executive takes a bona fide unpaid leave of absence (as defined in Treasury Regulation §
1.409A-1(h)(1)) and has not otherwise terminated employment will be disregarded for purposes of determining whether a Termination of Employment has occurred (including for purposes of determining the
applicable 36-month average). 
 1.1.23 “Voluntary Termination Date”
means the month, day and year Voluntary Termination of Employment occurs. 
 1.1.24 “Voluntary Termination of
Employment” means the Termination of Employment from the Bank or the Holding Company before Normal Retirement Age by the Executive for any reason other than death, Disability, Cause, or Change in Control. 

ARTICLE 2 
 LIFETIME
BENEFITS 
 2.1 Normal Retirement Benefit. Upon the Executive’s Normal Retirement Age, the Executive shall be entitled to
the benefit described in this Section 2.1. 
 2.1.1 Amount of Benefit. The annual benefit under this
Section 2.1 is One Hundred Twenty-five Thousand Two Hundred Fifty-eight Dollars ($125,258). 
 2.1.2 Payment of
Benefit. The Bank shall pay the annual benefit described in Section 2.1.1 for a period of ten (10) years, payable in monthly (one-twelfth (1/12th) of the annual benefit) installments
beginning on the last day of the month following the month in which the Executive’s Normal Retirement Age occurs. The monthly installment payments under this Section 2.1.2 shall total one hundred twenty (120) substantially equal payments
over a period of one hundred twenty (120) months. 
 2.2 Involuntary Termination of Employment. Subject to the provisions of
Section 2.5, upon Involuntary Termination of Employment occurs before the Executive’s Normal Retirement Age 

  

			
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for reasons other than death, Cause, Disability, or in connection with a Change in Control, the Executive shall be entitled to the benefit described in this Section 2.2. 

2.2.1 Amount of Benefit. The amount of the benefit under this Section 2.2 is the vested Accrual Balance, determined
as of the Involuntary Termination Date in accordance with the schedule set forth in Section 2.2.2, and the Executive shall forfeit, for no consideration, the unvested Accrual Balance as of the Involuntary Termination Date and shall be entitled
to no further benefits under this Agreement. 
 2.2.2 Vesting Schedule. The Executive shall become vested in the
Accrual Balance in accordance with the following schedule: 
  

			
	 Plan Years Completed
	  	Vesting Percentage
	 1
	  	40%
	 2
	  	60%
	 3
	  	80%
	 4
	  	100%

 2.2.3 Payment of Benefit. The Bank shall pay the benefit described in
Section 2.2.1, if any, in a single lump-sum payment to the Executive sixty (60) days following the last day of the month in which the Involuntary Termination Date occurs. 

2.3 Voluntary Termination of Employment. Subject to the provisions of Section 2.5, upon Voluntary Termination of
Employment, the Executive shall be entitled to the benefit described in this Section 2.3. 
 2.3.1 Amount of Benefit.
The amount of the benefit under this Section 2.3 is the vested Accrual Balance, determined as of Voluntary Termination Date in accordance with the schedule set forth in Section 2.3.2, and the Executive shall forfeit, for no
consideration, the unvested Accrual Balance as of the Voluntary Termination Date and shall be entitled to no further benefits under this Agreement. 

2.3.2 Vesting Schedule. The Executive shall become vested in the Accrual Balance in accordance with the following
schedule: 
  

			
	 Plan Years Completed
	  	Vesting Percentage
	 1
	  	30%
	 2
	  	40%
	 3
	  	50%
	 4
	  	60%
	 5
	  	70%
	 6
	  	80%
	 7
	  	90%
	 8
	  	100%

  

			
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 2.3.3 Payment of Benefit. The Bank shall pay the benefit
described in Section 2.3.1, if any, in a single lump-sum payment to the Executive sixty (60) days following the last day of the month in which the Voluntary Termination Date occurs. 

2.4 Disability Benefit. Upon the Executive’s Disability prior to Normal Retirement Age, the Executive shall be entitled to the
benefit described in this Section 2.4. 
 2.4.1 Amount of Benefit. The amount of the benefit under this
Section 2.4 is one hundred percent (100%) of the Accrual Balance, determined as of the Executive’s Disability. 

2.4.2 Payment of Benefit. The Bank shall pay the benefit described in Section 2.4.1 in a single lump-sum payment sixty (60) days following the last day of the month in which the Executive’s Disability occurs. 

2.5 Change in Control Benefit. Upon a Change in Control, the Executive, subject to the provisions of Section 5.2, shall be
entitled to the benefit described in this Section 2.5. 
 2.5.1 Amount of Benefit. The amount of the benefit
under this Section 2.5 is one hundred percent (100%) of the Accrual Balance, determined as of the date of the Change in Control. 

2.5.2 Payment of Benefit. The Bank shall pay the benefit described in Section 2.5.1 to the Executive in a
single lump-sum payment sixty (60) days following the last day of the month in which the Change in Control occurs. 

2.6 Distributions Upon Income Inclusion Under Code Section 409A of the Code. Upon the inclusion of any amount into
the Executive’s income as a result of the failure of this Agreement to comply with the requirements of Code Section 409A, a distribution shall be made as soon as is administratively practicable following the discovery of the failure. The
amount distributed may not exceed the amount to be included in income as a result of the failure to comply with the requirements of Code Section 409A and the regulations thereunder. 

ARTICLE 3 
 DEATH
BENEFITS 
 3.1 Death During Active Service. If the Executive dies while in the active service of the Bank and prior to receiving
any payments under this Agreement, the Executive’s Beneficiary shall be entitled to the benefit described in this Section 3.1. 

3.1.1 Amount of Benefit. The annual benefit under Section 3.1 is the Normal Retirement Benefit set forth in
Section 2.1. 
 3.1.2 Payment of Benefit. The Bank shall pay the annual benefit described in
Section 3.1.1 to the Beneficiary for a period of ten (10) years, payable in monthly (one twelfth (1/12th) of the annual benefit) installments beginning on the last day of the month following the month in which the Executive dies. The
monthly installment payments under this Section 3.1.2 shall total one hundred twenty (120) substantially equal payments over a period of one hundred twenty (120) months. 

  

			
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 3.2 Death During Benefit Period. If the Executive dies after benefit payments have
commenced under this Agreement, or after the Executive is entitled to begin receiving benefits, but before receiving all such payments, the Bank shall pay the remaining benefits to the Executive’s Beneficiary at the same time and in the same
amounts they would have been paid to the Executive had the Executive survived. 
 ARTICLE 4 

BENEFICIARIES 
 4.1
Beneficiary Designations. The Executive shall designate a Beneficiary by filing with the Bank a written designation of Beneficiary on a form substantially similar to the form attached as Exhibit A. The Executive may revoke or modify
the designation at any time by filing a new designation. However, designations will only be effective if signed by the Executive and accepted by the Bank during the Executive’s lifetime. Unless otherwise communicated to the Bank in writing by
the Executive, the Executive’s Beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Executive, or if the Executive names a spouse as Beneficiary and the marriage is subsequently dissolved. If the
Executive dies without a valid Beneficiary designation, all payments shall be made to the Executive’s surviving spouse, if any, and if none, to the Executive’s surviving children and the descendants of any deceased child by right of
representation, and if no children or descendants survive, to the Executive’s estate. 
 4.2 Facility of Payment. If a benefit
under this Agreement is payable to a minor, to a person declared incompetent, or to a person incapable of handling the disposition of his or her property, the Bank may pay such benefit to the guardian, legal representative, or person having the care
or custody of such minor, incompetent person, or incapable person. The Bank may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the benefit. Such distribution shall completely discharge the
Bank from all liability with respect to such benefit. 
 ARTICLE 5 

GENERAL LIMITATIONS 
 5.1
Cause. Notwithstanding any provision of this Agreement to the contrary, the Bank shall not pay any benefit under this Agreement if Executive’s Termination of Employment by the Bank is due to Cause. Further, if the Executive is receiving
benefits under this Agreement, and the Bank discovers after the Executive’s Termination of Employment or other separation from service from the Bank, regardless of reason, that the Executive committed any acts while employed with the Bank that
rise to the level of Cause, then, in addition to any other remedies available to it, the Bank may immediately cease payment of any further benefits due under this Agreement. 

5.2 Golden Parachute Payment. Notwithstanding any provision of this Agreement to the contrary, the Bank shall not be required to pay
any benefit under this Agreement if, upon the advice of counsel, the Bank determines that the payment of such benefit would be prohibited by 12 C.F.R. Part 359 or any successor regulations regarding employee compensation promulgated by any
regulatory agency having jurisdiction over the Bank or its affiliates or to the extent the benefit would be a non-deductible excess parachute payment under Section 280G and 4999 of the Code. To the extent
possible, such benefit payment shall be proportionately reduced to allow payment within the 

  

			
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fullest extent permissible under applicable law. The Executive shall forfeit, for no consideration, any amount over and above such reduced amount. 

5.3 Acceleration of Payments. Except as specifically permitted herein or in other sections of this Agreement, no acceleration of
the time or schedule of any payment may be made hereunder. Notwithstanding the foregoing, payments may be accelerated hereunder by the Bank (without any direct or indirect election on the part of the Executive), in accordance with the provisions of
Treasury Regulation §1.409A-3(j)(4) and any subsequent guidance issued by the Treasury. Accordingly, payments may be accelerated, in the following circumstances: (i) in limited cash-outs; or (ii) to
pay any taxes that may become due at any time that this Agreement fails to meet the requirements of Code Section 409A (but in no case shall such payments exceed the amount to be included in income as a result of the failure to comply with the
requirements of Code Section 409A). 
 5.4 Changes to Time and/or Form of Payment. Subject to the Bank’s approval, the
Executive may delay the time of a payment or change the form of a payment as expressly provided under this Section 5.4 and Code Section 409A (a “Subsequent Deferral Election’”). Notwithstanding the foregoing, a
Subsequent Deferral Election cannot accelerate any payment. A Subsequent Deferral Election which delays payment or changes the form of payment is permitted only if all of the following requirements are met: 

(a) the Subsequent Deferral Election does not take effect until at least twelve (12) months after the date on which the
election is made; 
 (b) the Subsequent Deferral Election relates to a payment based on Termination of Employment or a
payment made at a specified time, the election must result in payment being deferred for a period of not less than five (5) years from the date the first amount was scheduled to be paid as a result of such event; and 

(c) the Subsequent Deferral Election relates to a payment at a specified time, the election must be made not less than twelve
(12) months before the date the first amount was scheduled to be paid. 
 5.5 Suicide. No benefits shall be payable if the
Executive commits suicide within two (2) years after the date of this Agreement, or if the Executive has made any material misstatement of fact on any application for life insurance purchased by the Bank. 

5.6 Delays. If the Bank reasonably anticipates that any payment scheduled to be made under this Agreement would violate securities laws
(or other applicable laws) or jeopardize the ability of the Bank to continue as a going concern if paid as scheduled, then the Bank may defer that payment, provided the Bank treats payments to all similarly situated persons participating in all
arrangements that would be aggregated with this Agreement under Code Section 409A on a reasonably consistent basis. In addition, the Bank may, at its discretion, delay a payment upon such other events and conditions as the Internal Revenue
Service may prescribe, provided the Bank treats payments to all similarly situated persons participating in all arrangements that would be aggregated with this Agreement under Code Section 409A on a reasonably consistent basis. The amounts so
accrued in accordance with the terms of this Agreement shall be distributed to the Executive or his/her Beneficiary (in the event of the Executive’s death) at the earliest possible date on which the

  

			
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Bank reasonably anticipates that such violation or material harm would be avoided or as otherwise prescribed by the Internal Revenue Service. 

5.7 Non-Solicitation. In consideration of the benefits provided under this Agreement, the
Executive agrees and covenants not to: 
 (a) directly or indirectly, solicit, hire, recruit, attempt to hire or recruit, or
induce the termination of employment of any employee of the Bank during the period of the Executive’s employment or other service and for a period of two (2) years following the Executive’s termination of employment or other service
for any reason; 
 (b) directly or indirectly, solicit, contact (including, but not limited to, e-mail, regular mail, express mail, telephone, fax, and instant message), attempt to contact or meet with the current, former or prospective customers of the Bank for purposes of offering or accepting goods or
services similar to or competitive with those offered by the Bank during the period of the Executive’s employment or other service and for a period of two (2) years following the Executive’s termination of employment or other service
for any reason; and 
 (c) directly or indirectly attempt to disrupt, damage, impair or interfere with the Bank’s
business by disrupting the relationship between the Bank and any of its consultants, agents, representatives or vendors during the period of the Executive’s employment or other service and for a period of two (2) years following the
Executive’s termination of employment or other service for any reason. 
 If it shall be judicially determined that the Executive has
violated any of the Executive’s obligations under this Section 5.7, then the period applicable to each obligation that the Executive shall have been determined to have violated shall automatically be extended by a period of time equal in
length to the period during which such violation(s) occurred. During the Executive’s employment or other service with the Bank and for two (2) years thereafter (or such longer period as the restrictions may apply pursuant to the foregoing
sentence), the Executive will communicate the contents of this Section 5.7 to any person, firm, association, partnership, corporation or other entity that the Executive intends to be employed by, associated with, or represent. For the purposes
of Sections 5.7, 5.8 and 5.9, references to the Bank shall include any and all direct and indirect subsidiary, parent, affiliated, or related companies of the Bank. 

5.8 Additional Covenants.  

5.8.1 Confidentiality. The Executive will keep in strict confidence, and will not, directly or indirectly, at any time
during or after Executive’s employment with the Bank, disclose, furnish, disseminate, make available or, except in the course of performing the Executive’s duties of employment, use any trade secrets or confidential business and technical
information of the Bank or its customers or vendors, without limitation as to when or how the Executive may have acquired such information. Such confidential information shall include, without limitation, the Bank’s unique selling, and
servicing methods and business techniques, training, service and business manuals, promotional materials, training courses and other training and instructional materials, vendor and product information, customer and prospective customer lists, other
customer and prospective customer 

  

			
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information and other business information. The Executive specifically acknowledges that all such confidential information, whether reduced to writing, maintained on any form of electronic media,
or maintained in the Executive’s mind or memory and whether compiled by the Bank, and/or the Executive, derives independent economic value from not being readily known to or ascertainable by proper means by others who can obtain economic value
from its disclosure or use, that reasonable efforts have been made by the Bank to maintain the secrecy of such information, that such information is the sole property of the Bank and that any retention and use of such information by the Executive
during the Executive’s employment with the Bank (except in the course of performing Executive’s duties and obligations to the Bank) or after the termination of Executive’s employment shall constitute a misappropriation of the
Bank’s trade secrets. 
 5.8.2 Whistle Blower Protections. Nothing in this Agreement: (i) prevents the
Executive from providing, without prior notice to the Bank, information to governmental or administrative authorities regarding possible violations of law or otherwise testifying or participating in any investigation or proceeding by any
governmental or administrative authorities regarding possible violations of law, nor (ii) prohibits the Executive from reporting possible violations of federal law or regulation to any governmental agency or entity, or making other disclosures
that, in each case, are protected under the whistleblower provisions of federal law or regulation. The Executive does not need the prior authorization of the Bank to make such reports or disclosures and the Executive is not required to notify the
Bank that Executive has made such reports or disclosures. In addition, pursuant to 18 USC Section 1833(b), the Executive shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade
secret that is made: (i) in confidence to a federal, state or local governmental official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (ii) in
a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. If the Executive files a lawsuit for retaliation by the Bank for reporting a suspected violation of law, the Executive may disclose the trade
secret to an attorney and use the trade secret information in the court proceeding if the Executive files any document containing the trade secret under seal and does not disclose the trade secret except pursuant to court order. 

5.9 Relief. In the event of a breach or threatened breach by the Executive of any of the covenants contained in Sections 5.7 and 5.8,
any unpaid benefits under this Agreement shall be forfeited effective as of the date of such breach, unless sooner terminated by operation of another term or condition of this Agreement. The Executive acknowledges and agrees that the remedy at law
available to the Bank for breach of any of Executive’s obligations under this Agreement would be inadequate. The Executive therefore hereby consents and agrees that the Bank shall be entitled to seek, in addition to other available remedies, a
temporary or permanent injunction or other equitable relief against such breach or threatened breach of Sections 5.7 or 5.8 from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not
afford an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages or other available forms of relief. For the
avoidance of doubt, the covenants contained in this Agreement are in addition to, and not in lieu of, any other restrictive covenants or similar covenants or agreements between the Executive and the Bank. 

  

			
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 ARTICLE 6 

CLAIMS AND REVIEW PROCEDURES 

6.1 Claims Procedure (for Claims other than for Disability Benefits). An Executive or Beneficiary
(“claimant”) who has not received benefits under this Agreement (other than Disability Benefits) that he or she believes should be paid shall make a claim for such benefits as follows: 

6.1.1 Initiation – Written Claim. The claimant initiates a claim by submitting to the Bank a written claim for the
benefits. 
 6.1.2 Timing of Bank Response. The Bank shall respond to such claimant within ninety (90) days after
receiving the claim. If the Bank determines that special circumstances require additional time for processing the claim, the Bank can extend the response period by an additional ninety (90) days by notifying the claimant in writing, prior to
the end of the initial ninety (90)-day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Bank expects to render its
decision. 
 6.1.3 Notice of Decision. If the Bank denies part or all of the claim, the Bank shall notify the
claimant in writing or by electronic communication of such denial. The Bank shall write the notification in a manner calculated to be understood by the claimant. The notification shall set forth: 

(a) the specific reasons for the denial, 

(b) a reference to the specific provisions of this Agreement on which the denial is based, 

(c) a description of any additional information or material necessary for the claimant to perfect the claim and an explanation
of why it is needed, 
 (d) an explanation of this Agreement’s review procedures and the time limits applicable to such
procedures, and 
 (e) a statement of the claimant’s right to bring a civil action under ERISA Section 502(a)
following an adverse benefit determination on review. 
 6.2 Review Procedure. If the Bank denies part or all of the claim pursuant
to Section 6.1, the claimant shall have the opportunity for a full and fair review by the Bank of the denial, as follows: 

6.2.1 Initiation – Written Request. To initiate the review, the claimant, within sixty (60) days after receiving
the Bank’s notice of denial, must file with the Bank a written request for review. 
 6.2.2 Additional Submissions
– Information Access. The claimant shall then have the opportunity to submit written comments, documents, records, and other information relating to the claim. The Bank shall also provide the claimant, upon request and free of

  

			
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charge, reasonable access to, and copies of, all documents, records, and other information relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits. 

6.2.3 Considerations on Review. In considering the review, the Bank shall take into account all materials and
information the claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. 

6.2.4 Timing of Bank Response. The Bank shall respond in writing to such claimant within sixty
(60) days after receiving the request for review. If the Bank determines that special circumstances require additional time for processing the claim, the Bank can extend the response period by an additional sixty (60) days by notifying the
claimant in writing, prior to the end of the initial sixty (60)-day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the
Bank expects to render its decision. 
 6.2.5 Notice of Decision. The Bank shall notify the claimant in writing or by
electronic communication of its decision on the review. The Bank shall write the notification in a manner calculated to be understood by the claimant. If the Bank denies part or all of the appeal, the notification shall set forth: 

(a) the specific reasons for the denial, 

(b) a reference to the specific provisions of this Agreement on which the denial is based, 

(c) a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of,
all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits, and 

(d) a statement of the claimant’s right to bring a civil action under ERISA Section 502(a). 

6.3 Claims Procedure for Disability Benefits. A claimant who has not received a Disability Benefit under this Agreement that he or she
believes should be paid shall make a claim for such benefits as follows: 
 6.3.1 Initiation – Written Claim. The
claimant initiates a claim by submitting to the Bank a written claim for the benefits. 
 6.3.2 Timing of Bank Response.
The Bank shall respond to such claimant within forty-five (45) days after receiving the claim. If the Bank determines that additional time for processing the claim is required due to matters beyond its control, the Bank can extend the
response period by up to two (2) additional thirty (30) days by notifying the claimant in writing, prior to the end of the initial forty-five (45) day period (or first thirty (30)-day extension
period, if applicable) that an additional period is required. The notice of extension must set forth the reason for the extension, the standards on which entitlement to the 

  

			
	Salary Continuation Agreement – Audrey Duncan	  	Page 12 of 21

 
Disability Benefit is based, any unresolved issues that prevent a decision on the claim, the additional information, if any, the Executive must submit, and the date by which the Bank expects to
render its decision. If the Executive provides additional information, he or she will be provided with at least forty-five (45) days to provide the additional information. The period from which the Executive is notified of the additional
required information to the date he or she responds is not counted as part of the determination period. 
 6.3.3 Notice of
Decision. If the Bank denies part or all of the claim, the Bank shall notify the claimant in writing or by electronic communication of such denial. The Bank shall write the notification in a manner calculated to be understood by the
claimant. The notification shall set forth: 
 (a) the specific reasons for the denial; 

(b) a reference to the specific provisions of this Agreement on which the denial is based; 

(c) a description of any additional information or material necessary for the claimant to perfect the claim and an explanation
of why it is needed; 
 (d) a discussion of the decision that includes the basis for disagreeing with or not following: 

i. the views presented by health care professionals treating the claimant and vocational professionals who evaluated the
claimant; 
 ii. the views of medical or vocational experts whose advice was obtained on the Bank’s behalf, regardless
of whether the advice was relied on in making the benefit denial; and 
 iii. a disability determination made by the Social
Security Administration, if presented to the Bank; 
 (e) if the decision was based on medical necessity or experimental
treatment (or a similar exclusion or limit), either: 
 i. an explanation of the scientific or clinical judgment for the
denial, applying the terms of this Agreement to the claimant’s medical circumstances; or 
 ii. a statement that this
explanation will be provided free of charge upon request; 
 (f) either the specific internal rules, guidelines, protocols,
standards, or other similar criteria of the Bank relied on in making the denial, or notice that such rules, guidelines, protocols, standards, or other similar criteria of the Bank do not exist; 

  

			
	Salary Continuation Agreement – Audrey Duncan	  	Page 13 of 21

 (g) notice that the claimant is entitled to receive (on request and free of
charge) reasonable access to and copies of, all documents, records, and other information relevant to the claimant’s claim for benefits; 

(h) an explanation of this Agreement’s review procedures and the time limits applicable to such procedures; and 

(i) a statement of the claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse
benefit determination on review. 
 Claimants are guaranteed the right to present evidence and testimony regarding their
claim during the review process. If the Executive lives in a county with a significant population of non-English speaking persons, the Bank will provide, in the
non-English language(s), a statement of how to access oral and written language services in those languages. 

6.4 Review Procedure. If the Bank denies part or all of the claim pursuant to Section 6.3, the claimant shall have the opportunity
for a full and fair review by the Bank of the denial, as follows: 
 6.4.1 Initiation – Written Request.
To initiate the review, the claimant, within one hundred eighty (180) days after receiving the Bank’s notice of denial, must file with the Bank a written request for review. 

6.4.2 Additional Submissions – Information Access. The claimant shall then have the opportunity to submit written
comments, documents, records, and other information relating to the claim. The Bank shall also provide the claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant (as
defined in applicable ERISA regulations) to the claimant’s claim for benefits. 
 6.4.3 Considerations on Review.
In considering the review, the Bank shall take into account all materials and information the claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.
The appeal will be conducted by an appropriate named fiduciary, who is not the person who made the initial decision or the subordinate of that person. For claims involving medical judgment, including decisions about whether a treatment or drug is
experimental, investigational, or not medically necessary, the named fiduciary will consult with a health care professional who: 

(a) Has appropriate training and experience in the area of medicine involved, 

(b) Was not consulted during the initial denial, and 

(c) Is not a subordinate of the person who made the initial denial. 

  

			
	Salary Continuation Agreement – Audrey Duncan	  	Page 14 of 21

 The Bank will identify the medical or other experts who were consulted when
making the benefit determination, regardless of whether the expert’s advice was relied on in making the determination. 

Before a benefit denial is issued on appeal, the claimant will be provided (free of charge) with any new or additional evidence
considered, relied on, or generated by the Bank or other person making the benefit determination (or at the direction of the Bank or other person) regarding the claim. The claimant will be provided any new or additional evidence as soon as possible
and sufficiently in advance of the date the appeal denial notice is due, so that the claimant has a reasonable opportunity to respond. 

Before a benefit denial is issued on appeal, if the denial is issued based on a new or additional rationale, the claimant will
be provided, free of charge, with the rationale. The claimant will be provided with the rationale as soon as possible and sufficiently in advance of the date on which the appeal denial notice is due, so that the claimant has a reasonable opportunity
to respond. 
 6.4.4 Timing of Bank Response. The Bank shall respond in writing to such claimant within
forty-five (45) days after receiving the request for review. If the Bank determines that special circumstances require additional time for processing the claim, the Bank can extend the response period by an additional forty-five (45) days
by notifying the claimant in writing, prior to the end of the initial forty-five (45)-day period, that an additional period is required. The notice of extension must set forth the special circumstances and the
date by which the Bank expects to render its decision. 
 6.4.5 Notice of Decision. The Bank shall notify the claimant
in writing or by electronic communication of its decision on the review. The Bank shall write the notification in a manner calculated to be understood by the claimant. If the Bank denies part or all of the appeal, the notification shall set forth:

 (a) the specific reasons for the denial; 

(b) a reference to the specific provisions of this Agreement on which the denial is based; 

(c) a discussion of the decision that includes the basis for disagreeing with or not following: 

i. the views presented by health care professionals treating the claimant and vocational professionals who evaluated the
claimant; 
 ii. the views of medical or vocational experts whose advice was obtained on the Bank’s behalf, regardless
of whether the advice was relied on in making the benefit denial; and 
 iii. a disability determination made by the Social
Security Administration, if presented to the Bank; 

  

			
	Salary Continuation Agreement – Audrey Duncan	  	Page 15 of 21

 (d) if the decision was based on medical necessity or experimental treatment
(or a similar exclusion or limit), either: 
 i. an explanation of the scientific or clinical judgment for the denial,
applying the terms of this Agreement to the claimant’s medical circumstances; or 
 ii. a statement that this
explanation will be provided free of charge upon request; 
 (e) either the specific internal rules, guidelines, protocols,
standards. or other similar criteria of the Bank relied on in making the denial, or notice that such rules, guidelines, protocols, standards, or other similar criteria of the Bank do not exist, and 

(f) a statement of the claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse
benefit determination on review, including a description of any contractual limitations period relevant to the right to sue, with the calendar date on which the contractual limitations period expires for the claim. 

6.5 Claims Procedures Mandatory. The internal claims procedures set forth in this Article 6 are mandatory. If a claimant fails to
follow these claims procedures, or to timely file a request for appeal in accordance with this Article 6, the denial of the claim shall become final and binding on all persons for all purposes. 

ARTICLE 7 
 AMENDMENTS
AND TERMINATION 
 7.1 Amendment. This Agreement may be amended at any time by the Bank by a written agreement signed by the Bank
and the Executive. However, the Bank may unilaterally amend this Agreement to conform with written directives to the Bank from its auditors or banking regulators or to comply with legislative changes or tax law, including without limitation Code
Section 409A and any and all Treasury regulations and guidance promulgated thereunder. This Agreement may also be unilaterally amended by the Bank at any time, retroactively if required, if found necessary in the opinion of the Bank, in order
to ensure that this Agreement is characterized as a “top-hat” plan of deferred compensation maintained for a select group of management or highly compensated employees as described under ERISA Sections 201(2), 301(a)(3), and 401(a)(1), to
conform this Agreement to the provisions of Code Section 409A and to conform this Agreement to the requirements of any other applicable law (including ERISA, banking regulations, and the Code). No such amendment shall be considered prejudicial
to any interest of the Executive or a Beneficiary hereunder without written consent of the Executive or Beneficiary. 
 7.2 Suspension of
Agreement. The Bank may, in its sole discretion and prior to commencement of the payment of benefits under this Agreement, suspend this Agreement and cease all future accruals thereunder as of the date this Agreement is suspended. In such event,
and unless and until this Agreement is later reinstated, the Executive shall receive payments under this Agreement at the times and in the manner as set forth in Articles 2 and 3, provided that (i) the Accrual Balance for the purposes of
determining the benefits payable shall be determined as of the date this 

  

			
	Salary Continuation Agreement – Audrey Duncan	  	Page 16 of 21

 
Agreement is suspended under this Section 7.2. and (ii) for the purposes of Section 2.1.1 only, and any continuation of such payments under Section 3.2, as applicable, the annual
benefit shall be adjusted so that the present value, determined in accordance with generally accepted accounting principles, of all payments to be paid under Section 2.1.1 (or Section 3.2, as applicable) is equal to the Accrual Balance as
of the date this Agreement is suspended under this Section 7.2. If this Agreement is reinstated, the terms of this Agreement otherwise in effect prior to suspension under this Section 7.2 shall control. 

7.3 Agreement Termination Generally. The Bank may terminate this Agreement at any time. Except as provided in Section 7.4, the
termination of this Agreement shall not cause a distribution of benefits under this Agreement. Rather, after such termination, benefit distributions will be made at the earliest distribution event permitted under Article 2 or Article 3. 

7.4 Agreement Terminations Under Code Section 409A. Notwithstanding anything to the contrary in Section 7.2, if
this Agreement terminates in the following circumstances, the Bank shall distribute one hundred percent (100%) of the Accrual Balance, determined as of the date of the termination of this Agreement, to the Executive in a single lump-sum payment: 
 (a) Within thirty (30) days before or twelve (12) months after a
Change in Control, provided that all distributions are made no later than twelve (12) months following such termination of this Agreement and further provided that all the Bank’s arrangements which are substantially similar to this
Agreement are terminated so the Executive and all participants in the similar arrangements are required to receive all amounts of compensation deferred under the terminated arrangements within twelve (12) months of the termination of the
arrangements; and 
 (b) Upon the Bank’s termination of this and all other arrangements that would be aggregated with
this Agreement pursuant to Treasury Regulation Section 1.409A-1(c) if the Executive participated in such arrangements (“Similar Arrangement”), provided that (i) the termination and
liquidation does not occur proximate to a downturn in the financial health of the Bank, (ii) all termination distributions are made no earlier than twelve (12) months and no later than twenty-four (24) months following such
termination, and (iii) the Bank does not adopt any new arrangement that would be a Similar Arrangement for a minimum of three (3) years following the date the Bank takes all necessary action to irrevocably terminate and liquidate this
Agreement. 
 ARTICLES 8 

MISCELLANEOUS 
 8.1
Binding Effect. This Agreement shall bind the Executive and the Bank, and their beneficiaries, survivors, executors, administrators, and permitted transferees. 

8.2 No Guarantee of Employment. This Agreement is not an employment policy or contract. It does not give the Executive the right to
remain an employee of the Bank, nor does it interfere with the Bank’s right to discharge the Executive. It also does not require the Executive to remain an employee nor interfere with the Executive’s right to terminate employment at any
time. 

  

			
	Salary Continuation Agreement – Audrey Duncan	  	Page 17 of 21

 8.3 Non-Transferability. Benefits under this
Agreement cannot be sold, transferred, assigned, pledged, attached, or encumbered in any manner, except in accordance with Article 4 with respect to designation of Beneficiaries. 

8.4 Tax Withholding. The Bank shall withhold any taxes that are required to be withheld from the benefits provided under this
Agreement. 
 8.5 Applicable Law. This Agreement and all rights hereunder shall be governed by the laws of the State of Texas, except
to the extent preempted by the laws of the United States of America. 
 8.6 Unfunded Arrangement. The Executive and Beneficiary are
general unsecured creditors of the Bank for the payment of benefits under this Agreement. The benefits represent the mere promise by the Bank to pay such benefits. The rights to benefits are not subject in any manner to anticipation, alienation,
sale, transfer, assignment, pledge, encumbrance by the Executive, or attachment or garnishment by the Executive’s creditors. Any insurance on the Executive’s life is a general asset of the Bank to which the Executive and Beneficiary have
no preferred or secured claim. 
 8.7 Severability. Without limitation of any other section contained herein, in case any one or more
provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any other respect, such invalidity, illegality, or unenforceability shall not affect the other provisions of this Agreement. In the event
any one or more of the provisions found in this Agreement shall be held to be invalid, illegal, or unenforceable by any governmental regulatory agency or court of competent jurisdiction, this Agreement shall be construed as if such invalid, illegal,
or unenforceable provision had never been a part of this Agreement and such provision shall be deemed substituted by such other provisions as will most nearly accomplish the intent of the parties to the extent permitted by applicable law. 

8.8 Entire Agreement. This Agreement constitutes the entire agreement between the Bank and the Executive as to the subject matter
hereof. No rights are granted to the Executive by virtue of this Agreement other than those specifically set forth herein. 
 8.9 Plan
Administrator. The Bank shall have powers which are necessary to administer this Agreement, including but not limited to: 

(a) interpreting the provisions of this Agreement; 

(b) establishing and revising the method of accounting for this Agreement; 

(c) maintaining a record of benefit payments; and 

(d) establishing rules and prescribing any forms necessary or desirable to administer this Agreement. 

8.10 Named Fiduciary. For purposes of the ERISA, if applicable, the Bank shall be the named fiduciary and Plan Administrator under this
Agreement. The named fiduciary may delegate to others certain aspects of the management and operation responsibilities of this Agreement, including the employment of advisors and the delegation of ministerial duties to qualified individuals. 

  

			
	Salary Continuation Agreement – Audrey Duncan	  	Page 18 of 21

 8.11 Full Obligation. Notwithstanding any provision to the contrary, when the Bank
has paid either the lifetime benefits or death benefits to which the Executive has become entitled as appropriate under any section or subsection of this Agreement, the Bank has completed its obligation to the Executive. 

8.12 Code Section 409A. The benefits described in and provided by this Agreement are intended to be exempt from Code
Section 409A, as amended, and its corresponding regulations and related guidance, or to otherwise comply with the requirements of Code Section 409A. Notwithstanding any provision of this Agreement to the contrary, the interpretation and
distribution of the Executive’s benefits under this Agreement shall be made in a manner and at such times as to comply with all applicable provisions of Code Section 409A and the regulations and guidance promulgated thereunder, or an
exception therefrom to avoid the imposition of any accelerated or additional taxes. Any defined terms shall be construed consistent with Code Section 409A and any terms not specifically defined shall have the meaning set forth in Code
Section 409A. This Section 8.12 shall apply to distributions under this Agreement, but only to the extent required in order to avoid taxation of, or interest penalties on, the Executive under Code Section 409A. To the extent that any
payments made under this Agreement are determined to be subject to Code Section 409A, the following shall apply to such payment(s): 

(a) all payments to be made upon a termination of employment may only be made upon a “separation from service” under
Code Section 409A; 
 (b) for purposes of the limitations on nonqualified deferred compensation under Code
Section 409A, each payment of compensation shall be treated as a separate payment of compensation; and 
 (c)
notwithstanding anything in this Agreement to the contrary, if the Executive is a “specified employee” of a publicly traded corporation under Code Section 409A and if payment of any amount under this Agreement is required to be
delayed for a period of six (6) months after separation from service pursuant to Code Section 409A, payment of such amount shall be delayed as required by Code Section 409A, and the accumulated postponed amount shall be paid in a lump-sum payment within ten (10) days after the end of the six (6)-month period (or within sixty (60) days after death, if earlier). 

In no event may the Executive, directly or indirectly, designate the calendar year of a payment. No action or failure to act
pursuant to this Section 8.12 shall subject the Bank or the Holding Company thereof to any claim, liability, or expense, and neither the Bank nor the Holding Company shall have any obligation to indemnify or otherwise protect the Executive from
the obligation to pay any taxes pursuant to Code Section 409A. 
 ***SIGNATURE PAGE FOLLOWS*** 

  

			
	Salary Continuation Agreement – Audrey Duncan	  	Page 19 of 21

 IN WITNESS WHEREOF, the Executive and a duly authorized Bank officer have
signed this Agreement as of the date indicated below. 
  

			
	THIRD COAST BANK, SSB:
	
	 /s/ Troy A. Glander

	Name:	 	Troy A. Glander
	Its:	 	Director of Compensation Committee
	Date:	 	7/6/2020
	
	EXECUTIVE:
	
	 /s/ Audrey Duncan

	Audrey Duncan
	Date:	 	6/23/2020

  

			
	Salary Continuation Agreement – Audrey Duncan	  	Page 20 of 21EX-10.18

 Exhibit 10.18 

EXECUTION VERSION 

SEPARATION AGREEMENT 

This Separation Agreement (this “Agreement”) is made and entered into effective as of December 31, 2019, by and among
Dennis Bonnen (“EXECUTIVE”), and Heritage Bank (“BANK”). EXECUTIVE and BANK are sometimes referred to herein as a “party” and collectively as the “parties.” EXECUTIVE understands that in order to
receive the consideration set forth herein, he must execute and return this Agreement to the BANK by December 31, 2019 by 11:59 p.m. 

RECITALS 
 WHEREAS,
Heritage Bancorp, Inc., the parent of the BANK (“HERITAGE”), is party to that certain Agreement and Plan of Reorganization, dated August 27, 2019 (the “MERGER AGREEMENT”), with Third Coast Bancshares, Inc.
(“THIRD COAST BANCSHARES”), and a wholly owned merger subsidiary of THIRD COAST BANCSHARES (“MERGER SUB”); 

WHEREAS, pursuant to the terms of the MERGER AGREEMENT, MERGER SUB will merge with and into HERITAGE, with HERITAGE surviving the merger as a
wholly owned subsidiary of THIRD COAST BANCSHARES (the “MERGER”); 
 WHEREAS, following the MERGER, HERITAGE will merge
with and into THIRD COAST BANCSHARES, with THIRD COAST BANCSHARES surviving (the “SECOND STEP MERGER”); 
 WHEREAS,
following the SECOND STEP MERGER, the BANK will merge with and into Third Coast Bank, SSB (“THIRD COAST BANK”), with THIRD COAST BANK surviving (the “BANK MERGER”); 

WHEREAS, in connection with the entry into the MERGER AGREEMENT, EXECUTIVE and THIRD COAST BANK entered into that certain Employment
Agreement, dated August 27, 2019 (the “EMPLOYMENT AGREEMENT”); 
 WHEREAS, each of the parties to the EMPLOYMENT
AGREEMENT has agreed that it is in the best interest of parties thereto and the BANK to terminate the EMPLOYMENT AGREEMENT and to restructure the arrangement with EXECUTIVE; 

WHEREAS, in lieu of the EMPLOYMENT AGREEMENT, EXECUTIVE has agreed to enter into this AGREEMENT; 

WHEREAS, the BANK and EXECUTIVE agree that EXECUTIVE shall cease to be an employee of the BANK effective as of 11:59 p.m., Central Time, on
December 31, 2019 (the “SEPARATION DATE”); 
 WHEREAS, contemporaneously with the execution of this Agreement,
EXECUTIVE and THIRD COAST BANK are entering into a letter agreement that provides that the EMPLOYMENT AGREEMENT is void, ab initio; 

 WHEREAS, should the MERGER or BANK MERGER not occur for any reason, this Agreement and all
covenants contained herein (including but not limited to the cessation of EXECUTIVE’s employment with Heritage) shall be null and void; and 

WHEREAS, the parties now desire to enter into this Agreement for the purpose of providing for the orderly separation of service as an employee
of the BANK. 
 NOW, THEREFORE, in consideration of the promises and mutual agreements set forth in this Agreement, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows: 
 CESSATION OF EMPLOYMENT 

 

	 	1.	 Cessation of Employment. EXECUTIVE and BANK acknowledge and agree: 

a. This Agreement shall become effective at 12:01 a.m. of the eighth (8th) day following the date EXECUTIVE executes this Agreement unless
EXECUTIVE otherwise provides written notice of revocation in accordance with Section 15 within the seven (7) day revocation period (the “EFFECTIVE DATE”). 

b. EXECUTIVE’s employment Chairman and Chief Executive Officer of the BANK and from all other positions he may hold with BANK, HERITAGE
and any of their respective subsidiaries and affiliates (whether as an officer, manager, director, managing director, employee, or otherwise) shall cease and EXECUTIVE shall no longer hold such positions as of the SEPARATION DATE. 

CONSIDERATION 

2. Separation Payments. In consideration of EXECUTIVE’s execution of this Agreement, and his other agreements
contained herein, including in Sections 3, 7, 9, 11, 12 and 13 BANK will pay EXECUTIVE the following (collectively referred to the “SEPARATION PAYMENTS”): 

a. Cash Payment. An aggregate cash payment in an amount equal to ONE MILLION DOLLARS AND 00/100 ($1,000,000.00) to
be paid over three (3) consecutive years. The first two installments of $333,333.00 will be paid once a year, commencing annually on January 15th after the EFFECTIVE DATE. The third installment of $334,000.00 in the third year will be paid in
quarterly amounts of $83,500.00, commencing on January 15, 2022 with subsequent payments on April 15, 2022, July 15, 2022 and October 15, 2022.  

b. Tax Withholding. BANK acknowledges and agrees taxes will be withheld from the payments set forth in this section and EXECUTIVE will
receive an Internal Revenue Service Form W-2 for the payments set forth in this section. 

  
 - 2 - 

 3. Covenant Not to Sue:

a. EXECUTIVE represents that he has not initiated any action or charge against BANK or any of its predecessors, successors, parents,
subsidiaries, affiliates, agents, assigns, representatives or their present or former directors, officers, employees or agents with any federal, state or local court or administrative agency.     

b. BANK represents that neither BANK nor any of its parents, subsidiaries, affiliates, representatives, directors, officers, employees or
agents has initiated any action or charge against EXECUTIVE with any federal, state or local court or administrative agency.     

c. Nothing in this Agreement shall prohibit EXECUTIVE or BANK from reporting possible violations of federal law or regulation to any
governmental agency or entity, including but not limited to the Department of Justice, the Equal Employment Opportunity Commission, the Securities and Exchange Commission, Congress, and any agency Inspector General, or making other disclosures that
are protected under the whistleblower provisions of federal law or regulation. Further, this Agreement does not limit EXECUTIVE’s or BANK’s right to receive an award for information provided to the Securities and Exchange Commission or any
other securities regulatory agency or authority. However, each of EXECUTIVE and BANK represents that he or it is unaware of any act or omission on his or its part that may constitute a violation of any law, nor does EXECUTIVE or BANK know of any
basis on which any third party or governmental entity could assert such a claim.     
 ADDITIONAL PROVISIONS AND
COVENANTS 
 4. EXECUTIVE Board Service: Nothing in this Agreement, shall amend or modify any of the terms of the
MERGER AGREEMENT, including Section 6.13 of the MERGER AGREEMENT and Confidential Schedule 6.13 thereto.  

5. EXECUTIVE’S Heritage Bank Options: BANK acknowledges and agrees that nothing in this Agreement shall impair or
diminish EXECUTIVE’S rights to the Heritage Bank Stock Plan referenced in Section 1.11 of the MERGER AGREEMENT. 

6. Reporting: Nothing in this Agreement shall prohibit EXECUTIVE from reporting possible violations of federal law or
regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, Congress, and any agency Inspector General, or making other disclosures that are protected under the
whistleblower provisions of federal law or regulation or the applicable laws of Canada. Further, this Agreement does not limit EXECUTIVE’s right to receive an award for information provided to the Securities and Exchange Commission or any other
securities regulatory agency or authority. However, EXECUTIVE represents that he is unaware of any act or omission on EXECUTIVE’s part or the part of BANK that may 

  
 - 3 - 

 
constitute a violation of any law, nor does he know of any basis on which any third party or governmental entity could assert such a claim. 

7. Tax Consequences: EXECUTIVE acknowledges and agrees that BANK and its legal counsel have made no
representations regarding the proper tax treatment of the payments set out in Section 2. EXECUTIVE COVENANTS AND AGREES TO DEFEND AND INDEMNIFY AND HOLD HARMLESS BANK AND ITS SUCCESSORS AND ASSIGNS FROM AND AGAINST ANY TAXES, FINES,
PENALTIES, INTEREST, SUITS, CLAIMS, DEMANDS, LIENS, PROCEEDINGS, AND ANY OTHER LIABILITY RELATING TO THE PAYMENTS SET OUT IN SECTION 2 THAT MAY BE ASSESSED AGAINST EXECUTIVE’S INCOME OR PROPERTY (EXCLUDING TAX WITHHOLDINGS AND FINES, PENALTIES,
INTEREST, SUITS, CLAIMS, DEMANDS, LIENS AND PROCEEDINGS RELATED TO TAX WITHHOLDINGS, WHICH ARE THE SOLE RESPONSIBILITY OF BANK). 

8. Section 409A. EXECUTIVE certifies, acknowledges and agrees that he has been provided the
opportunity to consult with legal counsel and that in no event whatsoever shall BANK be liable for any additional tax, interest or penalty that may be imposed on EXECUTIVE by Code Section 409A or damages for failing to comply with Code
Section 409A in connection with this Agreement. 
 9. Confidentiality of Agreement. EXECUTIVE and BANK agree to
keep this Agreement and each of its terms completely confidential; however, any party may disclose the terms of this Agreement to such party’s attorneys, accountant, spouse, or as otherwise required by law. 

10. Intentionally Omitted. 

11. Confidentiality of BANK Information. EXECUTIVE shall keep in strict confidence, and will not, directly or
indirectly, at any time after EXECUTIVE’S employment with the BANK, disclose, furnish, disseminate, make available, or use any trade secrets or confidential business and technical information of the BANK or its customers or vendors, without
limitation as to when or how EXECUTIVE may have acquired such information. Such confidential information shall include, without limitation, the BANK’S unique selling, and servicing methods and business techniques, training, service and business
manuals, promotional materials, training courses and other training and instructional materials, vendor and product information, customer and prospective customer lists, other customer and prospective customer information and other business
information. EXECUTIVE specifically acknowledges that all such confidential information, whether reduced to writing, maintained on any form of electronic media, or maintained in EXECUTIVE’S mind or memory and whether compiled by the BANK,
and/or EXECUTIVE, derives independent economic value from not being readily known to or ascertainable by proper means by others who can obtain economic value from its disclosure or use, that reasonable efforts have been made by the BANK to maintain
the secrecy of such information, that such information is the sole property of the BANK and that any retention and use of such information by EXECUTIVE after the termination of EXECUTIVE’S employment shall constitute a misappropriation of the
BANK’S trade secrets. Nothing in this Agreement prevents EXECUTIVE from providing, without prior notice to the BANK, information to governmental or administrative authorities regarding possible violations of law or otherwise

  
 - 4 - 

 
testifying or participating in any investigation or proceeding by any governmental or administrative authorities regarding possible violations of law. 

12. Non-Competition. As an inducement for the parties to enter into this
Agreement, the parties hereof agree that for a period of three (3) years following the SEPARATION DATE, EXECUTIVE will not: (i) enter into or engage in any business which competes with BANK’S business within the Restricted Territory
(as defined in Section 12(d)); (ii) call on, service or solicit customers, business, or patronage, or sell, any products and services in competition with, or for any business, wherever located, that competes with, the BANK’s business
within the Restricted Territory; (iii) divert, entice or otherwise take away, directly or indirectly, any customers, business, or patronage or orders of the BANK within the Restricted Territory, or attempt to do so; or (iv) promote or
assist, financially or otherwise, any person, firm, association, partnership, corporation or other entity engaged in any business which competes with the BANK’s business within the Restricted Territory. If it shall be judicially determined that
EXECUTIVE violated any of EXECUTIVE’s obligations under Section 12, then the period applicable to each obligation that EXECUTIVE shall have been determined to have violated shall automatically be extended by a period of time equal in
length to the period during which such violation(s) occurred. The terms of Section 12 are defined as follows: 
  

	 	a.	 Indirect Competition: EXECUTIVE will be in violation thereof if EXECUTIVE engages in any or all of the
activities set forth therein directly as an individual on EXECUTIVE’s own account, or indirectly as a partner, joint venturer, employee, agent, salesperson, consultant, officer and/or director of any firm, association, partnership, corporation
or other entity, or as a stockholder of any corporation in which EXECUTIVE or EXECUTIVE’s spouse, child or parent owns, directly or indirectly, individually or in the aggregate, more than five percent (5%) of the outstanding stock.

  

	 	b.	 The BANK: For the purposes of this Section 12, the BANK shall include any and all direct and indirect
subsidiary, parent, affiliated, or related companies of the BANK for which EXECUTIVE worked or had responsibility at the time of separation of EXECUTIVE’s employment and at any time during the two (2) year period prior to such separation.

  

	 	c.	 The BANK’s Business: For the purposes of this Agreement, the “BANK’s business” means
managing, operating, controlling, participating in and carrying on domestic, international, personal and commercial banking services, including investment, trust, fiduciary, factoring and estate planning. 

 

	 	d.	 Restricted Territory: For the purposes of this Agreement, the “Restricted Territory” shall mean:
(i) the geographic area(s) within a fifty (50) mile radius of (A) the BANK’s location(s) as of the SEPARATION DATE, and (B) the THIRD COAST BANK’s location(s) as of the SEPARATION DATE; and (ii) all of the specific
customer accounts, whether within or outside of the geographic area described in (i) above, with which EXECUTIVE had any contact or for which EXECUTIVE had any responsibility (either direct or supervisory) at the

  
 - 5 - 

	 	
SEPARATION DATE and at any time during the one (1) year period prior to such SEPARATION DATE. 

  

	 	e.	 Extension: If it shall be judicially determined that EXECUTIVE has violated any of EXECUTIVE’s obligations
under Sections 11, 12, and 13 of this Agreement, then the period applicable to each obligation that EXECUTIVE shall have been determined to have violated shall automatically be extended by a period of time equal in length to the period during which
such violation(s) occurred.     

 13.
Non-Solicitation. EXECUTIVE will not directly or indirectly for a period of three (3) years following the SEPARATION DATE for any reason, attempt to disrupt, damage, impair or interfere with the
BANK’s business by solicit, recruit, attempts to hire or recruit, or induce the termination of employment of any of the BANK’s employees or customers, or by disrupting the relationship between the BANK and any of its consultants, agents,
representatives, vendors, or customers. BANK acknowledges that this covenant is necessary to enable the BANK to maintain a stable workforce and remain in business. 

14. Acknowledgement. EXECUTIVE acknowledges that he has fully informed himself of the terms, contents, conditions and
effects of this Agreement and that, in executing this Agreement, he does not rely and has not relied upon any representation (oral or written) or statement made by BANK any of its subsidiaries and affiliates, or any of its representatives,
including, but not limited to, any representation or statement with regard to the subject matter, basis, or effect of this Agreement. EXECUTIVE further acknowledges the following: that he has been advised to consult with an attorney prior to
executing this Agreement; that he is of sound mind and otherwise competent to execute this Agreement; and that he is entering into this Agreement knowingly and voluntarily and without any undue influence or pressures. 

15. Notices. For purposes of this Agreement, notices and all other communications provided for herein shall be in
writing and shall be deemed to have been duly given (a) when received if delivered personally or by courier, (b) on the date receipt is acknowledged if delivered by certified mail, postage prepaid, return receipt requested, or (c) one
day after transmission if sent by facsimile transmission or electronic mail with confirmation of transmission to Attn: Bank President, c/o Heritage Bank, 1850 Pearland Parkway Pearland, Texas 77581 or to Dennis Bonnen,
                                        .
 
 16. Applicable Law; Mediation and Arbitration. This Agreement is entered into under, and shall be governed for
all purposes by, the laws of the State of Texas, without regard to conflicts of laws principles thereof. Any dispute, controversy or claim arising out of or related to this Agreement or any breach of this Agreement shall be addressed first through
confidential mediation, and if that fails, through confidential and binding arbitration. Any such mediation shall take place in Texas before a single mediator selected by the agreement of the parties. BANK shall bear all fees and expenses of the
mediator. The parties shall bear the expense of their own attorneys’ fees. If the mediation fails to result in a prompt settlement, the arbitration shall be conducted in Texas by one arbitrator who is designated in accordance with the then
current employment rules and procedures of the American 

  
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Arbitration Association. The arbitrator shall prepare and publish a reasoned award. Each of the parties hereto shall bear their own, respective, costs of such arbitration.    

 As the sole exception to the exclusive and binding nature of the arbitration commitment set forth above, the parties agree
that BANK shall have the right to initiate an action in a court of competent jurisdiction located in Houston, Texas regarding enforceability of this Section and to request temporary, preliminary, and permanent injunctive or other equitable relief,
including, without limitation, specific performance, without the necessity of proving inadequacy of legal remedies or irreparable harm or posting bond or giving notice to the maximum extent permitted by law. However, nothing in this Section should
be construed to constitute a waiver of the parties’ rights and obligations to arbitrate regarding matters other than those specifically addressed in this Section. 

17. No Waiver. No failure by a party at any time to give notice of any breach by another party of, or to require
compliance with, any condition or provision of this Agreement shall be deemed to be a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. 

18. Severability. If any provision of this Agreement is determined to be invalid or unenforceable, then (a) the
invalidity or unenforceability of such provision shall not affect the validity or enforceability of any other provision of this Agreement, and all other provisions shall remain in full force and effect and (b) the provision held to be invalid
or unenforceable will be limited or modified in its application to the minimum extent necessary to avoid the invalidity or unenforceability (specifically including the provisions of Section 4 hereto), and, as so limited or modified, the
provision and the balance of this Agreement will be enforceable in accordance with its terms. 
 19. Assumption upon
Change of Control. In the event there is a Change of Control (as defined below) of THIRD COAST BANK, then THIRD COAST BANK shall obtain from the successor to THIRD COAST BANK an agreement to assume and to perform this AGREEMENT in the same
manner and to the same extent that THIRD COAST BANK would be required to perform if no Change of Control had taken place; provided that, in the event the successor does not (a) assume this Agreement as required by this Section 19 or
(b) the successor does not punctually perform BANK’s obligations hereunder, then any amount due and unpaid pursuant to Section 2 hereto shall become due and payable within thirty (30) days of successor’s receipt of written
notice of non-performance if not cured by the expiration of such thirty-day period.  

For purposes of this Agreement, “Change of Control” shall mean the sale of all or substantially all the assets of
THIRD COAST BANK; any merger, consolidation or acquisition of THIRD COAST BANK with, by or into another entity in which THIRD COAST BANK is not the surviving entity; or any change in the ownership of more than fifty percent (50%) of the voting stock
of THIRD COAST BANK in one or more related transactions. The MERGER shall not constitute a Change of Control for purposes of this Agreement.  

  
 - 7 - 

 20. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement. 

21. Headings. The section and paragraph headings in this Agreement have been inserted for purposes of convenience and
shall not be used for interpretive purposes. 
 22. Successors; Assigns. This Agreement shall be binding upon and
inure to the benefit of BANK and any successor or assign thereof, including THIRD COAST BANK following the BANK MERGER. This Agreement is personal to EXECUTIVE and shall not be assigned by EXECUTIVE without the explicit written consent of the other
parties hereto; provided, that none of the MERGER, the SECOND STEP MERGER or the BANK MERGER shall be considered an assignment and each of the MERGER, the SECOND STEP MERGER or the BANK MERGER are expressly permitted by this Agreement. 

23. Entire Agreement, Amendment, Binding Effect. This Agreement, together with that certain letter
agreement, dated as of the date hereof, between Dennis Bonnen and Third Coast Bank, SSB, constitutes the entire agreement of the parties with regard to the subject matter hereof. Any amendment to this Agreement must be signed by all parties to this
Agreement. This Agreement supersedes all other agreements between or among the parties, unless specifically modified or incorporated by reference by this Agreement. 

24. Injunctive Relief. Each party acknowledges and agrees that the covenants, obligations and agreements of such
party contained in this Agreement concern special, unique and extraordinary matters and that a violation of any of the terms of these covenants, obligations or agreements will cause the non-breaching party
irreparable injury for which adequate remedies at law are not available. Therefore, each party agrees that all parties to this Agreement will be entitled to an injunction, restraining order, or all other equitable relief (without the requirement to
post bond) as a court of competent jurisdiction may deem necessary or appropriate to restrain such party from committing any violation of the covenants, obligations or agreements referred to in this Agreement. These injunctive remedies are
cumulative and in addition to any other rights and remedies a party may have against any other party. 
 25. Return of
Company Property. With the exception of EXECUTIVE’s cell phone, iPad, computer and personal effects, EXECUTIVE agrees that upon the SEPARATION DATE, EXECUTIVE shall return to the BANK, in good condition, all property of the BANK, including,
without limitation, any keys or keycards, work papers, reports, drawing, photographs, negatives, prototypes, and the originals and all copies of any materials which contain, reflect, summarize, describe, analyze or refer or related to any other
confidential information as defined herein, whether in hard copy or generated and maintained on any form of electronic media. In the event that such items are not so returned, the BANK will have the right to charge EXECUTIVE for all reasonable
damages, costs, attorneys’ fees and other expenses incurred in searching for, taking, removing and/or recovering property. Notwithstanding anything to the contrary herein, the BANK acknowledges and agrees that

  
 - 8 - 

 
EXECUTIVE shall receive title and ownership to the 2018 Ford Raptor VIN
                        , currently or previously titled to HERITAGE. 

26. Incorporation of Recitals. The parties hereto acknowledge and agree that the recitals are incorporated in and made a
part of this Agreement. 
 [Remainder of Page Intentionally Left Blank; Signature Page Follows] 

  
 - 9 - 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
written above. 
  

			
	Heritage Bank
		
	By:	 	 /s/ Randy Ellis

		 	Randy Ellis
		 	Chair of Compensation Committee (with Approval and authorization of Board of Directors)
		
	Date:	 	December 31, 2019
	
	Dennis Bonnen
	
	 /s/ Dennis Bonnen

	Dennis Bonnen, individually
	Date:	 	12 - 30 - 19

 EXECUTED this 31st day of December, 2019. 

[Signature Page to Separation Agreement]

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