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Exhibit 10.5    
    

January 20,
2005 

Coastal
Bancshares Acquisition Corp.

9821 Katy Freeway, Suite 500

Houston, Texas 77024 

I-Bankers
Securities, Incorporated

Newbridge Securities Corporation

c/o I-Bankers Securities, Incorporated

1560 East Southlake Boulevard, Suite 232

Southlake, Texas 76092 

Re:
Initial Public Offering 

Gentlemen:

        The
undersigned stockholder and director of Coastal Bancshares Acquisition Corp. (the "Company"), in consideration of I-Bankers Securities Corporation and Newbridge
Securities Corporation (the "Representatives") entering into a letter of intent (the "Letter of Intent") to underwrite (the "Representatives") an initial public offering of the securities of the
Company ("IPO") and embarking on the IPO process, hereby agrees as follows (certain capitalized terms used herein are defined in paragraph 12 hereof): 

        1.     If
the Company solicits approval of its stockholders of a Business Combination, the undersigned will vote all Insider Shares owned by him in accordance with the majority
of the votes cast by the holders of the IPO Shares. 

        2.     In
the event that the Company fails to consummate a Business Combination within 18 months from the effective date (the "Effective Date") of the registration
statement relating to the IPO (or 24 months under the circumstances described in the prospectus relating to the IPO), the undersigned will take all reasonable actions within his power to cause
the Company to liquidate as soon as reasonably practicable. The undersigned waives any and all rights he may have to receive any distribution of cash, property or other assets as a result of such
liquidation with respect to his Insider Shares. 

        3.     The
undersigned acknowledges and agrees that the Company will not consummate any Business Combination that involves a company which is affiliated with any of the Insiders
unless the Company obtains an opinion from an independent investment banking firm reasonably acceptable to the Representatives that the business combination is fair to the Company's stockholders from
a financial perspective. 

        4.     Neither
the undersigned, any member of the family of the undersigned, nor any Affiliate of the undersigned will be entitled to receive and will not accept any
compensation for services rendered to the Company prior to the consummation of the Business Combination; provided that, commencing on the Effective Date, Coastal Acquisition, LLC, a limited liability
company ("Related Party"), shall be allowed to charge the Company an allocable share of Related Party's overhead, up to $7,500 per month, to compensate it for the Company's use of Related Party's
offices, utilities and personnel. Related Party and the undersigned shall also be entitled to reimbursement from the Company for their out-of-pocket expenses incurred in
connection with seeking and consummating a Business Combination. 

        5.     Neither
the undersigned, any member of the family of the undersigned, nor any Affiliate of the undersigned will be entitled to receive or accept a finder's fee or any
other compensation in the event the undersigned, any member of the family of the undersigned or any Affiliate of the undersigned originates a Business Combination. 

 

        6.     The
undersigned will escrow his Insider Shares for the three year period commencing on the Effective Date subject to the terms of a Stock Escrow Agreement which the
Company will enter into with the undersigned and Continental Stock Transfer & Trust Company as escrow agent. 

        7.     The
undersigned agrees that, during the three year period terminating on December 31, 2007, he will not become involved (whether as owner, manager, operator,
creditor, partner, shareholder, joint venturer, member, employee, officer, director, consultant or otherwise) with any Acquisition Fund (as defined in Section 12(v) below) that is
similar to a "TAC" or "Targeted Acquisition Corp.", unless such Acquisition Fund engages the Representatives to be the managing underwriters of the initial public offering of the Acquisition Fund's
securities. 

        The
undersigned hereby agrees and acknowledges that (i) the Representatives would be irreparably injured in the event of a breach by the undersigned of any of his obligations
under this paragraph 8, (ii) monetary damages would not be an adequate remedy for any such breach, and (iii) the Representatives shall be entitled to injunctive relief, in
addition to any other remedy they may have, in the event of such breach. 

        8.     I
agree to serve as a Director of the Company until the earlier of the consummation by the Company of a Business Combination or the liquidation of the Company. The
undersigned's biographical information furnished to the Company and the Representatives included in the S-1 Registration Statement is true and accurate in all respects, does not omit any
material information with respect to the undersigned's background and contains all of the information required to be disclosed pursuant to Section 401 of Regulation S-K,
promulgated under the Securities Act of 1933, as amended. The undersigned's Questionnaire furnished to the Company and the Representatives and annexed as Exhibit A hereto is true and accurate
in all respects. The undersigned represents and warrants that: 

        (a)   he
is not subject to or a respondent in any legal action for, any injunction, cease-and-desist order or order or stipulation to desist or refrain
from any act or practice relating to the offering of securities in any jurisdiction; 

        (b)   he
has never been convicted of or pleaded guilty to any crime (i) involving any fraud or (ii) relating to any financial transaction or handling of funds of
another person, or (iii) pertaining to any dealings in any securities and he is not currently a defendant in any such criminal proceeding; and 

        (c)   he
has never been suspended or expelled from membership in any securities or commodities exchange or association or had a securities or commodities license or
registration denied, suspended or revoked. 

        9.     I
have full right and power, without violating any agreement by which I am bound, to enter into this letter agreement and to serve as an officer of the Company. 

        10.   I
authorize any employer, financial institution, or consumer credit reporting agency to release to the Representatives and their respective legal representatives or
agents (including any investigative search firm retained by the Representatives) any information they may have about my background and finances (the "Information"). Neither the Representatives nor
their respective agents shall be violating my right of privacy in any manner in requesting and obtaining the Information and I hereby release them from liability for any damage whatsoever in that
connection. 

        11.   As
used herein, 

        (i)    "Business
Combination" shall mean an acquisition by merger, capital stock exchange, asset or stock acquisition, reorganization or otherwise, of an operating business
selected by the Company; 

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        (ii)   "Insiders"
shall mean all officers, directors and stockholders of the Company immediately prior to the IPO; 

        (iii)  "Insider
Shares" shall mean all of the shares of Common Stock of the Company owned by an Insider prior to the IPO; 

        (iv)  "IPO
Shares" shall mean the shares of Common Stock issued in the Company's IPO; and 

        (v)   "Acquisition
Fund" shall mean any company formed with the intent to offer securities to the public and use the proceeds to consummate one or more Business Combinations
which are unspecified at the time of the securities offering. 

	 	/s/  JEFFREY P. SANGALIS      
 Jeffrey P. Sangalis

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Exhibit 10.8    
    

 
 

INVESTMENT MANAGEMENT TRUST AGREEMENT    
    

        This Agreement is made as of                        , 2005 by and
between Coastal Bancshares Acquisition Corp. (the "Company") and Continental Stock Transfer &
Trust Company ("Trustee"). 

        WHEREAS,
the Company's Registration Statement on Form S-1, No. 333-118294 ("Registration Statement"), for its initial public offering of securities
("IPO") has been declared effective as of the date hereof by the Securities and Exchange Commission ("Effective Date"); and 

        WHEREAS,
I-Bankers Securities Incorporated and Newbridge Securities Corporation (collectively, the "Representatives") are acting as the representatives of the underwriters in
the IPO; and 

        WHEREAS,
as described in the Company's Registration Statement, and in accordance with the Company's Certificate of Incorporation, $                  of the gross
proceeds of the IPO
($                  if the underwriters' over-allotment option is exercised in full) will be delivered to the Trustee to be deposited and held in a trust
account for the benefit of the
Company and the holders of the Company's common stock, par value $.01 per share, issued in the IPO and in the event the Units are registered in Colorado, pursuant to
Section 11-51-302(6) of the Colorado Revised Statutes (the amount to be delivered to the Trustee will be referred to herein as the "Property"; the stockholders for whose
benefit the Trustee shall hold the Property will be referred to as the "Public Stockholders," and the Public Stockholders and the Company will be referred to together as the "Beneficiaries"); and 

        WHEREAS,
the Company and the Trustee desire to enter into this Agreement to set forth the terms and conditions pursuant to which the Trustee shall hold the Property; 

        IT
IS AGREED: 

        1.     Agreements
and Covenants of Trustee. The Trustee hereby agrees and covenants to: 

        (a)   Hold
the Property in trust for the Beneficiaries in accordance with the terms of this Agreement, including the terms of
Section 11-51-302(6) of the Colorado Statute in a segregated trust account ("Trust Account") established by the Trustee at a branch of JPMorgan Chase NY Bank selected by
the Trustee; 

        (b)   Manage,
supervise and administer the Trust Account subject to the terms and conditions set forth herein; 

        (c)   In
a timely manner, upon the instruction of the Company, to invest and reinvest the Property in any "Government Security." As used herein, Government Security means any
Treasury Bill issued by the United States, having a maturity of one hundred and eighty days or less; 

        (d)   Collect
and receive, when due, all principal and income arising from the Property, which shall become part of the "Property," as such term is used herein; 

        (e)   Notify
the Company of all communications received by it with respect to any Property requiring action by the Company; 

        (f)    Supply
any necessary information or documents as may be requested by the Company in connection with the Company's preparation of the tax returns for the Trust Account; 

        (g)   Participate
in any plan or proceeding for protecting or enforcing any right or interest arising from the Property if, as and when instructed by the Company to do so; 

        (h)   Render
to the Company and to the Representatives, and to such other person as the Company may instruct, monthly written statements of the activities of and amounts in
the Trust Account reflecting all receipts and disbursements of the Trust Account; and 

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        (i)    Commence
liquidation of the Trust Account only after receipt of and only in accordance with the terms of a letter ("Termination Letter"), in a form substantially similar
to that attached hereto as either Exhibit A or Exhibit B, signed on behalf of the Company by its President or Chairman of the Board and Secretary, and complete the liquidation of the
Trust Account and distribute the Property in the Trust Account only as directed in the Termination Letter and the other documents referred to therein. 

        2.     Agreements
and Covenants of the Company. The Company hereby agrees and covenants to: 

        (a)   Give
all instructions to the Trustee hereunder in writing, signed by the Company's President or Chairman of the Board. In addition, except with respect to its duties
under paragraph 1(i) above, the Trustee shall be entitled to rely on, and shall be protected in relying on, any verbal or telephonic advice or instruction which it in good faith believes
to be given by any one of the persons authorized above to give written instructions, provided that the Company shall promptly confirm such instructions in writing; 

        (b)   Hold
the Trustee harmless and indemnify the Trustee from and against, any and all expenses, including reasonable counsel fees and disbursements, or loss suffered by the
Trustee in connection with any action, suit or other proceeding brought against the Trustee involving any claim, or in connection with any claim or demand which in any way arises out of or relates to
this Agreement, the services of the Trustee hereunder, or the Property or any income earned from investment of the Property, except for expenses and losses resulting from the Trustee's gross
negligence or willful misconduct. Promptly after the receipt by the Trustee of notice of demand or claim or the commencement of any action, suit or proceeding, pursuant to which the Trustee intends to
seek indemnification under this paragraph, it shall notify the Company in writing of such claim (hereinafter referred to as the "Indemnified Claim"). The Trustee shall have the right to conduct and
manage the defense against such Indemnified Claim, provided, that the Trustee shall obtain the consent of the Company with respect to the selection of counsel, which consent shall not be unreasonably
withheld. The Company may participate in such action with its own counsel; and 

        (c)   Pay
the Trustee an initial acceptance fee of $1,000 and an annual fee of $3,000 (it being expressly understood that the Property shall not be used to pay such fee). The
Company shall pay the Trustee the initial acceptance fee and first year's fee at the consummation of the IPO and thereafter on the anniversary of the Effective Date. The Trustee shall refund to the
Company the fee (on a pro rata basis) with respect to any period after the liquidation of the Trust Fund. The Trustee shall also be entitled to reimbursement from the Company for all expenses paid or
incurred by it in the
administration of its duties hereunder including, but not limited to, all counsel, advisors' and agents' fees and disbursements and all taxes or other governmental charges. The Company shall not be
responsible for any other fees or charges of the Trustee except as set forth in this Section 2(c) and as may be provided in paragraph 2(b) hereof (it being expressly understood that the
Property shall not be used to make any payments to the Trustee under such paragraph). 

        3.     Limitations
of Liability. The Trustee shall have no responsibility or liability to: 

        (a)   Take
any action with respect to the Property, other than as directed in paragraph 1 hereof and the Trustee shall have no liability to any party except for
liability arising out of its own gross negligence or willful misconduct; 

        (b)   Institute
any proceeding for the collection of any principal and income arising from, or institute, appear in or defend any proceeding of any kind with respect to, any
of the Property unless and until it shall have received instructions from the Company given as provided herein to 

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do
so and the Company shall have advanced or guaranteed to it funds sufficient to pay any expenses incident thereto; 

        (c)   Change
the investment of any Property, other than in compliance with paragraph 1(c); 

        (d)   Refund
any depreciation in principal of any Property; 

        (e)   Assume
that the authority of any person designated by the Company to give instructions hereunder shall not be continuing unless provided otherwise in such designation,
or unless the Company shall have delivered a written revocation of such authority to the Trustee; 

        (f)    The
other parties hereto or to anyone else for any action taken or omitted by it, or any action suffered by it to be taken or omitted, in good faith and in the exercise
of its own best judgment, except for its gross negligence or willful misconduct. The Trustee may rely conclusively and shall be protected in acting upon any order, notice, demand, certificate, opinion
or advice of counsel (including counsel chosen by the Trustee), statement, instrument, report or other paper or document (not only as to its due execution and the validity and effectiveness of its
provisions, but also as to the truth and acceptability of any information therein contained) which is believed by the Trustee, in good faith, to be genuine and to be signed or presented by the proper
person or persons. The Trustee shall not be bound by any notice or demand, or any waiver, modification, termination or rescission of this
agreement or any of the terms hereof, unless evidenced by a written instrument delivered to the Trustee signed by the proper party or parties and, if the duties or rights of the Trustee are affected,
unless it shall give its prior written consent thereto; 

        (g)   Verify
the correctness of the information set forth in the Registration Statement or to confirm or assure that any acquisition made by the Company or any other action
taken by it is as contemplated by the Registration Statement; and 

        (h)   Pay
any taxes on behalf of the Trust Account (it being expressly understood that the Property shall not be used to pay any such taxes and that such taxes, if any, shall
be paid by the Company from funds not held in the Trust Account). 

        4.     Termination.
This Agreement shall terminate as follows: 

        (a)   If
the Trustee gives written notice to the Company that it desires to resign under this Agreement, the Company shall use its reasonable efforts to locate a successor
trustee. At such time that the Company notifies the Trustee that a successor trustee has been appointed by the Company and has agreed to become subject to the terms of this Agreement, the Trustee
shall transfer the management of the Trust Account to the successor trustee, including but not limited to the transfer of copies of the reports and statements relating to the Trust Account, whereupon
this Agreement shall terminate; provided, however, that, in the event that the Company does not locate a successor trustee within ninety days of receipt of the resignation notice from the Trustee, the
Trustee may submit an application to have the Property deposited with the United States District Court for the Southern District of New York and upon such deposit, the Trustee shall be immune from any
liability whatsoever; 

        (b)   At
such time that the Trustee has completed the liquidation of the Trust Account in accordance with the provisions of paragraph 1(i) hereof, and
distributed the Property in accordance with the provisions of the Termination Letter, this Agreement shall terminate except with respect to Paragraph 2(b); or 

        (c)   On
such date after                        , 2007 when the Trustee deposits the Property with the United States District Court for the
Southern District of New York in the event
that, prior to such date, the Trustee has not received a Termination Letter from the Company pursuant to paragraph 1(i). 

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        5.     Miscellaneous.

        (a)   The
Company and the Trustee each acknowledge that the Trustee will follow the security procedures set forth below with respect to funds transferred from the Trust
Account. Upon receipt of written instructions, the Trustee will confirm such instructions with an Authorized Individual at an Authorized Telephone Number listed on the attached Exhibit C. The
Company and the Trustee will each restrict access to confidential information relating to such security procedures to authorized persons. Each party must notify the other party immediately if it has
reason to believe unauthorized persons may have obtained access to such information, or of any change in its authorized personnel. In executing funds transfers, the Trustee will rely upon account
numbers or other identifying numbers of a beneficiary, beneficiary's bank or intermediary bank, rather than names. The Trustee shall not be liable for any loss, liability or expense resulting from any
error in an account number or other identifying number, provided it has accurately transmitted the numbers provided. 

        (b)   This
Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect to conflict of laws. It may be
executed in several counterparts, each one of which shall constitute an original, and together shall constitute but one instrument. 

        (c)   This
Agreement contains the entire agreement and understanding of the parties hereto with respect to the subject matter hereof. This Agreement or any provision hereof
may only be changed, amended or modified by a writing signed by each of the parties hereto; provided, however, that no such change, amendment or modification may be made without the prior written
consent of the Representative. As to any claim, cross-claim or counterclaim in any way relating to this Agreement, each party waives the right to trial by jury. 

        (d)   The
parties hereto consent to the jurisdiction and venue of any state or federal court located in the City of New York for purposes of resolving any disputes hereunder. 

        (e)   Any
notice, consent or request to be given in connection with any of the terms or provisions of this Agreement shall be in writing and shall be sent by express mail or
similar private courier service, by certified mail (return receipt requested), by hand delivery or by facsimile transmission: 

if
to the Trustee, to: 

Continental
Stock Transfer & Trust Company

17 Battery Place

New York, New York 10004

Attn: Steven G. Nelson

Fax No.:(212) 509-5150 

if
to the Company, to: 

Coastal
Bancshares Acquisition Corp.

9821 Katy Freeway, Suite 500

Houston, Texas 77024

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

Fax No.: 832-550-2045 

in
either case with a copy to: 

I-Bankers
Securities Incorporated

1560 East Southlake Boulevard

Suite 232

4

 

Southlake,
TX 76092

Attn: Michael McCrory

Fax: (817) 428-2779 

and

Newbridge
Securities Corporation

1451 W. Cypress Creek Road

Ft. Lauderdale, Florida 33309-1953

Attn: James Hosch

Fax: (954) 229-9937 

        (f)    This
Agreement may not be assigned by the Trustee without the prior consent of the Company. 

        (g)   Each
of the Trustee and the Company hereby represents that it has the full right and power and has been duly authorized to enter into this Agreement and to perform its
respective obligations as contemplated hereunder. The Trustee acknowledges and agrees that it shall not make any claims or proceed against the Trust Account, including by way of set-off,
and shall not be entitled to any funds in the Trust Account under any circumstance. 

[Signature
page to follow] 

5

 

        IN
WITNESS WHEREOF, the parties have duly executed this Investment Management Trust Agreement as of the date first written above. 

	 	 	CONTINENTAL STOCK TRANSFER & TRUST COMPANY, as Trustee
	

 	
 	

By:	

 
	 	 	 	

	 	 	Name:	 
	 	 	 	

	 	 	Title:	 
	 	 	 	

	

 	
 	

COASTAL BANCSHARES ACQUISITION CORP.
	

 	
 	

By:	

 
	 	 	 	
 Cary M. Grossman

Co-Chief Executive Officer

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EXHIBIT A  

 [LETTERHEAD OF COMPANY]  

 [INSERT DATE]  

________________________

________________________

________________________

Attn:          

Re:        Trust Account No. [                        ]

Termination Letter 

Gentlemen:

        Pursuant
to paragraph 1(i) of the Investment Management Trust Agreement between Coastal Bancshares Acquisition Corp. ("Company") and Continental Stock Transfer &
Trust Company ("Trustee"), dated as of                        , 2005 ("Trust Agreement"), this is to advise you that the Company
has entered into an agreement ("Business Agreement") with                  
("Target Business") to consummate a business combination with Target Business ("Business Combination") on or about [INSERT DATE]. The Company shall notify you at least
24 hours in advance of the actual date of the consummation of the Business Combination ("Consummation Date"). 

        In
accordance with the terms of the Trust Agreement, we hereby authorize you to commence liquidation of the Trust Account to the effect that, on the Consummation Date, all of funds held
in the Trust Account will be immediately available for transfer to the account or accounts that the Company shall direct on the Consummation Date. 

        On
the Consummation Date (i) counsel for the Company shall deliver to you written notification that (a) the Business Combination has been consummated and (b) the
provisions of Section 11-51-302(6) and Rule 51-3.4 of the Colorado Statute have been met and (ii) the Company shall deliver to you written
instructions with respect to the
transfer of the funds held in the Trust Account ("Instruction Letter"). You are hereby directed and authorized to transfer the funds held in the Trust Account immediately upon your receipt of the
counsel's letter and the Instruction Letter, in accordance with the terms of the Instruction Letter. In the event that certain deposits held in the Trust Account may not be liquidated by the
Consummation Date without penalty, you will notify the Company of the same and the Company shall direct you as to whether such funds should remain in the Trust Account and distributed after the
Consummation Date to the Company. Upon the distribution of all the funds in the Trust Account pursuant to the terms hereof, the Trust Agreement shall be terminated. 

        In
the event that the Business Combination is not consummated on the Consummation Date described in the notice thereof and we have not notified you on or before the original Consummation
Date of a new Consummation Date, then the funds held in the Trust Account shall be reinvested as 

provided
in the Trust Agreement on the business day immediately following the Consummation Date as set forth in the notice. 

	 	 	Very truly yours,
	 	 	 	 	 
	 	 	COASTAL BANCSHARES

ACQUISITION CORP.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Cary M. Grossman, Co-Chief

Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 W. Donald Brunson, Co-Chief

Executive Officer

EXHIBIT B  

 [LETTERHEAD OF COMPANY]  

 [INSERT DATE]  

________________________

________________________

________________________

Attn:          

Re:        Trust Account No. [                        ]

Termination Letter 

Gentlemen:

        Pursuant
to paragraph 1(i) of the Investment Management Trust Agreement between Coastal Bancshares Acquisition Corp. ("Company") and Continental Stock Transfer &
Trust Company ("Trustee"), dated as of                        , 2005 ("Trust Agreement"), this is to advise you that the Board of
Directors of the Company has voted to dissolve and liquidate the Company.
Attached hereto is a copy of the minutes of the meeting of the Board of Directors of the Company relating thereto, certified by the Secretary of the Company as true and correct and in full force and
effect. 

        In
accordance with the terms of the Trust Agreement, we hereby (a) certify to you that the provisions of Section 11-51-302(6) and
Rule 51-3.4 of the Colorado Statute have been met and (b) authorize you, to commence liquidation of the Trust Account. You will notify the Company and JPMorgan Chase NY Bank
("Designated Paying Agent") in writing as to when all of the funds in the Trust Account will be available for immediate transfer ("Transfer Date"). The Designated Paying Agent shall thereafter notify
you as to the account or accounts of the Designated Paying Agent that the funds in the Trust Account should be transferred to on the Transfer Date so that the Designated Paying Agent may commence
distribution of such funds in accordance with the Company's instructions. You shall have no obligation to oversee the Designated Paying Agent's distribution of the funds. Upon the payment to the
Designated Paying Agent of all the funds in the Trust Account, the Trust Agreement shall be terminated. 

	 	 	Very truly yours,
	 	 	 	 	 
	 	 	COASTAL BANCSHARES

ACQUISITION CORP.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Cary M. Grossman, Co-Chief

Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 W. Donald Brunson, Co-Chief

Executive Officer

EXHIBIT C  

 AUTHORIZED INDIVIDUAL(S)  

 AUTHORIZED FOR TELEPHONE CALL BACK  

	COMPANY:	 	Coastal Bancshares Acquisition Corp.

Coastal Bancshares Acquisition Corp.

9821 Katy Freeway, Suite 500

Houston, Texas 77024

Attn: Cary M. Grossman, Chairman

Telephone: (      )            

Attn: W. Donald Brunson, Co-Chief Financial Officer

Telephone: (      )              
	

TRUSTEE:	
 	

Continental Stock Transfer & Trust Company

17 Battery Place

New York, New York 10004

Attn: Steven G. Nelson, Chairman

Telephone: (212) 845-3200

QuickLinks

Exhibit 10.8

INVESTMENT MANAGEMENT TRUST AGREEMENT

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