Jerome  Dansker





(the  "Effective  Date"),  between  Jerome  Dansker,  having  an  office  at One

Rockefeller  Plaza,  Suite  400,  New  York,  New  York  10020  ("Dansker"), and

Intervest Bancshares Corporation, a Delaware corporation having an office at One

Rockefeller  Plaza,  Suite  400,  New  York, New York 10020 (the "Corporation").





     Commencing  as  of  the  Effective  Date,  the Corporation wishes to employ

Dansker to perform services for the Corporation in connection with the operation

of the business of the corporation, and Dansker wishes to perform such services.


     W1TNESSETH,  the  parties hereto, in consideration of the premises, and the

mutual  covenants  and  agreements  herein  contained,  agree  as  follows:


     1.     Employment.  The  Corporation  hereby  employs  Dansker  and Dansker


hereby  accepts  employment upon the terms and conditions hereinafter set forth.


     2.     Services.



          a.     Duties.  Dansker  is  engaged as Chief Executive Officer of the


Corporation  and,  subject  to  the direction of the board of directors, Dansker

shall  perform  and discharge well and faithfully such duties as may be assigned

or  delegated  to  him.  Dansker shall have all requisite power and authority on

behalf of the Corporation to perform such duties, including, without limitation,

the  authority  to  hire  and  fire  employees  and  to  retain  the services of

independent  contractors.


          b.     Time Devoted; Other Businesses.  During the Term, Dansker shall


devote  so much of his time to the affairs of the Corporation as in his judgment

the  conduct  of  his  duties  shall  require. Nothing herein contained shall be

deemed  to  limit  or preclude Dansker from engaging, directly or indirectly, in

any  other  business,  or  from  directly  or  indirectly financing, purchasing,

acquiring,  operating,  leasing, holding, selling or otherwise disposing of real

property  for  his own account or for the account of any such other business, or

from  performing  services  on  behalf  of any other corporation, partnership or

other  business entity, including, but not limited to, any other business entity

with which any of the officers, directors or shareholders of the Corporation may

be  affiliated,  directly  or  indirectly.  It  is  understood and agreed by the

Corporation  that Dansker may participate in other ventures which are engaged in

the  same  or  similar  businesses as the Corporation. The Corporation shall not

have  any  right  to  participate  in any such other businesses, transactions or

investments,  or  in any profits or income earned or derived by Dansker from the

conduct  of any such businesses, transactions or investments and no compensation

or  benefits derived from other activities or employment shall reduce in any way

anything  due  Dansker  under  this Agreement.  The Corporation acknowledges and

understands  that Dansker also renders services to and has a separate employment

agreement  with  Intervest  Mortgage  Corporation.


     3.     Compensation;  Benefits.



          a.     Salary.  The  Corporation  shall pay to Dansker during the Term


hereof, for his services to be performed pursuant hereto, a salary, which at the

inception of the Term shall be at the annual rate of $200,000 per annum, subject

to  withholding  for  federal,  state  and local taxes, as required by law. Such

salary  shall  be increased annually, effective as of July 1 of each year, by an

amount  equal  to  the  greatest of: (1) the product obtained by multiplying the

salary  for  the  preceding year (ending June 30) as adjusted in accordance with

this  formula,  by the six percent (6%), (2) the product obtained by multiplying

the  salary  for  the  preceding  year (ending June 30) by that percentage which

shall  be  the  percentage  equivalent  to  a  fraction,  the numerator of which





fraction  shall  be that amount, if any, by which the "Consumer Price Index" (as

hereinafter  defined)  as  of  the June 1 preceding the July 1 effective date of

such  salary increase, shall exceed the Consumer Price Index as of June 1 of the

prior  year,  and  the denominator of which fraction shall be the Consumer Price

Index  as  of  such  June  1  of the prior year; and (3) .015% of the Asset Size

Increase  of  the  Corporation  for the year ending June 30 preceding the July 1

effective  date  of  such salary increase, provided that the Asset Size Increase

criteria  shall only be applied if the Corporation had net income in such twelve

month  period.


          As  used  herein, "Consumer Price Index" shall mean the Consumer Price

Index  for  All  Wage Earners and Clerical Workers for New York and NorthEastern

New  Jersey,  published  by  the Bureau of Labor Statistics of the United States

Department  of  Labor, (Base 1967 = 100).  If the Consumer Price Index ceases to

use (1967 = 100) as the basis of calculation, or if the Consumer Price Index (as

herein  defined)  ceases to be published by the Bureau of Labor Statistics, then

the  Corporation  and  Dansker shall substitute such index as they shall jointly

designate.  As  used  herein,  the  Asset  Size increase shall be the difference

between  the  total  assets  of  the  Corporation  on  a  consolidated basis, as

reflected  on the balance sheet of the Corporation as of June 30 of any year, as

compared  with  the  total assets of the Corporation on a consolidated basis, as

reflected  on  the  balance  sheet of the Corporation as of June 30 of the prior



          The  above  salary shall be payable in arrears, in accordance with the

normal  payroll  cycle  of  the  Corporation  (but  not  less  frequently  than

monthly),with the initial payment being due on the first payroll cycle after the

Effective  Date.


          In  addition  to the salary described above, Dansker shall be entitled

to  receive such bonuses or incentive compensation as may, from time to time, be

approved  by  the  Board  of Directors in connection with his performance of his

regular,  assigned  duties  hereunder. Dansker shall also be entitled to receive

such  bonuses  or incentive compensation as may, from time to time,  be approved

by  the  Board  of  Directors  in  connection  with the performance of duties or

responsibilities  beyond  those  assigned  to  Dansker  in  the ordinary course,

including  but not limited to services in connection with the raising of capital

and  acquisitions.


          b.     Expense  Account.  During  the  Term,  the  Corporation  shall


provide  Dansker  with  an  expense  account, which at the inception of the Term

shall be in the amount of $500.00 per month, payable in arrears on the first day

of  each  month, commencing August 1, 2004. Such monthly expense account payment

shall  increase  annually,  effective  as  of  July  1 of each year, in the same

proportion  as  the increase in Dansker's salary for such year.  The Corporation

and  Dansker  agree  that  such amount is a reasonable estimation of the normal,

recurring expenses (other than travel expenses) likely to be incurred by Dansker

in  performing his duties for the Corporation. Accordingly, Dansker shall not be

required  to  account  to  the Corporation for such expenses. In addition to the

foregoing  expense  account,  Dansker  shall be entitled to reimbursement of all

travel expenses incurred by him in the performance of duties for the Corporation

or  any  of  its  subsidiaries  or  affiliated  entities,  including,  without

limitation,  travel  in  connection  with  attendance  at  conventions,  trade

associations  and  similar  meetings.  Travel  expenses  shall  include, without

limitation, registration and attendance fees, transportation, meals and lodging.


          c.     Vacation.  Dansker  shall  be  entitled  to four (4) weeks paid


vacation  during  the  first  two  years  of  the  Term; and five (5) weeks paid

vacation  during  each  of  the remaining years of the Term, such vacation to be

taken  by  Dansker  at  such  times  as he shall elect during such year.  Unused

vacation, if not so taken, shall be paid to Dansker as accrued salary, in a lump

sum,  upon  the  expiration  of  each  annual  period  (July  1  to  June  30).





          d.     Other Benefits.  Dansker shall  be  entitled  to participate in


employee  benefit  plans  or  programs of the Corporation, if any, to the extent

that his position, tenure, salary, age, health and other qualifications make him

eligible  to  participate,  subject  to  the  rules  and  regulations applicable



          e.     Death  or  Disability of Dansker.  In the event of the death or


disability  of  Dansker,  the  Corporation  shall  make  the following payments:


               i.     In the event of the disability of Dansker, the Corporation

shall pay to Dansker, or if he shall subsequently die, to Dansker's wife, if she

shall  survive  Dankser  (but  only for so long during the Distribution Term (as

hereafter  defined)  as  Dansker's  wife  shall  survive)  and, if she shall not

survive  Dansker  or having survived Dansker, shall die prior to the  expiration

of  the  Distribution  Term,  to  Dansker's  estate, the Distribution Amount (as

hereafter defined), at the times herein specified and for the Distribution Term;


               ii.     In  the event of the disability of Dansker, Dansker shall

remain  entitled,  during  the  Distribution  Term,  to  participate in employee

benefit  plans or programs of the Corporation and shall, during the Distribution

Term,  continue  to receive the full benefit of this Agreement (except  that the

Distribution  Amount  shall  be  paid in lieu of the salary specified by Section

3(a));  and


               iii.     In  the  event  of the death of Dansker, the Corporation

shall  pay to Dansker's wife, if she shall survive Dansker (but only for so long

during the Distribution Term as Dansker's wife shall survive), and, if she shall

not  survive  Dansker  or  having  survived  Dansker,  shall  die  prior  to the

expiration  of  the  Distribution  Term,  to  Dansker's estate, the Distribution

Amount,  at  the  times  provided  for  and  for  the  Distribution  Term.


                    The  "Distribution  Amount"  shall  be  an amount equal to a

percentage of the amount which from time to time would have been paid monthly on

account of Dansker's salary, pursuant to the terms of this Employment Agreement,

had  this  Employment  Agreement  continued in force and effect for the whole or

that  portion  of  the  balance of the stated Term constituting the Distribution

Term. The percentage shall be fifty percent (50%) in the case of disability, and

twenty  five percent (25%) in the case of death. The Distribution Amount (or the

balance of any remaining Distribution Amount if monthly payments have previously

commenced  due  to disability) shall, in the case of death, be paid to Dansker's

estate  in  a lump sum and shall, for these purposes, be calculated on the basis

of  annual  salary  increases  at the rate of six percent (6%). The Distribution

Amount shall, in the case of disability, be paid monthly during the Distribution

Term  in  an  amount  equal  to fifty percent (50%) of the monthly payment which

would  have been made in accordance with the terms of this Employment Agreement,

had  such payments so continued. The Distribution Term shall be that period that

shall  be equal to the greater of (i) three years, and (ii) the number of months

remaining in the stated Term of this Employment Agreement. The obligation of the

Corporation  to  pay the Distribution Amount shall survive the expiration of the

Term  of  this  Employment  Agreement.


                    As  used  herein  "Disability"  shall  mean the inability to

perform  the  services  called  for  hereunder  by  reason of mental or physical

illness  for  a  continuous  period of six (6) months, provided. that should any

such  disability  cease, Dansker may, at his election, resume the performance of

duties  hereunder, in which case he shall be fully reinstated (including salary,

benefits  and  authority)  to  the position he occupied prior to the date of his

cessation  of  services  as  a  result  of  disability.


          f.     No  Impairment.  Nothing herein contained shall limit or impair


the  right,  power  and  authority of the Corporation to confer upon or award to

Dansker,  on  account of the services performed or to be performed by Dansker on

behalf  of  the  Corporation  (whether  or  not





pursuant  to  this  Employment Agreement), any bonus, stock options, warrants or

any  other  form  of  benefit  or  compensation.


          g.     Tax  Payments.  Annually,  on  or before April 15 of each year,


the  Corporation  shall pay to Dansker or Dansker's wife, as the case may be, an

amount  which is equal to the sum of (A) the federal, state and local taxes that

would  be  due  in connection with the value of any benefit or payment hereunder

(other  than  salary  or  Distribution  Amounts), and (B) the federal, state and

local  taxes  payable as a result of the payment set forth in (A) above, in each

case  based upon the highest tax bracket then applicable to individual taxpayers

under  federal,  state  and  local  tax  laws for the then marital status of the

recipient  of  the  amounts,


          h.     Legal Representative.  Should Dansker  or Dansker's wife have a


legal  representative  appointed  for  any  reason, such representative shall be

empowered to make any elections or decisions which Dansker or Dansker's wife may

have  otherwise  been  permitted  to  make.


          i.     Affiliates.  To  the  extent deemed necessary or appropriate by


the  Corporation,  payments  due  pursuant  to this Agreement may be made by the

Corporation  or any of its subsidiaries and benefits prescribed hereunder may be

furnished  pursuant  to the plans of the Corporation or any of its subsidiaries.


          j.     No  Relocation.  In  no  event  shall  Dansker  be  required to


relocate  outside  of  the  City  of  New  York.


     4.     Term.  The  term  of  this  Employment  Agreement (the "Term") shall


commence on the effective date and shall expire June 30, 2014, unless terminated

by  Dansker  upon  thirty  (30) days' prior notice (in which case the respective

obligations of the parties hereunder shall terminate upon the payment of accrued

entitlements  and  which  termination  shall  not  include  Dansker's  death  or




     5.     Indemnification.



          a.     To  the  fullest extent permitted by law, the Corporation shall

indemnify  and  hold  harmless  Dansker  against  all losses, claims, damages or

liabilities  (including  legal  fees,  disbursements,  and  any  other  expenses

incurred  in  investigating or defending against any such loss, claim, damage or

liability) arising (i) by reason of any acts or omissions or any alleged acts or

omissions  arising out of Dansker's activities in connection with the conduct of

the  business  of  the  Corporation  (or  any  of its subsidiaries or affiliated

entities),  (ii)  by  reason of the performance by Dansker of the services to be

performed  by Dansker, pursuant to the terms of this Employment Agreement, (iii)

by  reason  of  any  claim  or allegation of failure to perform such services in

accordance with the terms of this Employment Agreement, or (iv) by reason of the

performance  of  services  alleged  to  be  beyond  the  scope  of the authority

conferred  upon Dansker pursuant to the terms of this Employment Agreement. This

indemnity  shall  not cover losses, claims, damages or liabilities arising under

subdivisions (i), (ii) or (iii) of the preceding sentence, in each such instance

aforesaid  to the extent that such loss, claim, damage or liability results from

the  gross  negligence  or  willful  misconduct  of Dansker, The indemnification

provided  in  this  section  5:  (i)  shall  survive  the  expiration or earlier

termination  of this Employment Agreement; (ii) shall be in addition to, and not

a  limitation  of  any  common  law  or  contractual  rights  of indemnification

available  to Dansker at law or in equity; and (iii) shall include all costs and

expenses  of  enforcing  this  indemnity.


          b.     All  costs  and  expenses  paid  or  incurred  by  Dansker  in

investigating,  defending or settling any claim, loss, damage or liability, that

may  be  subject  to  a right of indemnification hereunder, shall be paid by the

Corporation  upon  the  request  of  Dansker.





     6.     Change  of  Control.  In  the  event  of any sale of assets, sale of


stock,  merger,  reorganization  or other transaction involving the Corporation,

the  successor  to  the Corporation shall, as a condition to the consummation of

such  transaction,  expressly  assume  and  perform  this  Agreement.


     7.     Miscellaneous,



          a.     Governing  Law.  This  agreement  shall  be  governed  by,  and


construed and enforced in accordance with the laws of the State of New


          b.     Entire  Agreement.  This  agreement  constitutes  the  entire


agreement  between  the  parties  with respect to the subject matter hereof, and

supersedes  any  prior  agreement  or understanding between them with respect to

such  subject  matter.


          c.     Arbitration.  Any  controversy  or  claim  arising  out  of, or


relating  to  this  agreement,  or  the  breach  thereof,  shall  be  settled by

arbitration  in accordance with the Commercial Arbitration Rules of the American

Arbitration  Association,  and  judgment  upon  the  award  rendered  by  the

arbitrator(s)  may  be  entered  in  any  court  having  jurisdiction.


          d.     Successors  and  Assigns.  No  party  may  assign,  pledge  or


encumber its rights or obligations under this Agreement. This Agreement shall be

binding  upon  and  may  be  enforced  by  the  parties  hereto  and their legal



          e.     Counterparts.  This  Agreement  may  be executed in one or more


counterparts, all of which shall constitute one and the same instrument.


          f.     Headings.  The  section  headings  in  this  Agreement  are for


convenience  of  reference  only, and shall not be deemed to alter or affect the

meaning  or  interpretation  of  any  provisions  hereof.


          g.     Compliance.  In  performing  services  hereunder, Dansker shall


comply  with  all  applicable  laws  and  regulations  that  may  apply  to  the

Corporation  and  its  subsidiaries, including any code of ethics that may, from

time  to  time,  be  approved  by  the  Corporation


     IN  WITNESS  WHEREOF, the parties hereto have executed this agreement as of

the  date  first  above  written.


                              INTERVEST BANCSHARES CORPORTION



                              By:   /s/ Lowell S. Dansker


                                    Lowell S. Dansker, President


                                    /s/ Jerome Dansker


                                    Jerome Dansker