Document:

Employment Agreement - Anne Lee

 Exhibit 10.3 
  
 EMPLOYMENT AGREEMENT 
  
 THIS EMPLOYMENT AGREEMENT (the “Agreement”), is made and entered into as of January 1, 2004, by and among Coast Bank of Florida, a banking
corporation organized under the laws of the State of Florida (the “Bank”), Coast Financial Holdings, Inc., a Florida corporation (“CFHI”), and Anne V. Lee (the “Employee”), upon the following recitals of fact:

  
 RECITALS 
  
 A. Employee is currently employed by the Bank as its Executive Vice
President/Retail Banking Manager. 
  
 B. The Bank desires to
continue the employment of Employee, and Employee desires to continue as an employee of the Bank. 
  
 C. Employee may also perform certain services for CFHI and its subsidiaries as a part of her employment by the Bank, and some or all of her compensation
may be paid by CFHI and its subsidiaries as otherwise provided in this Agreement. Therefore, CFHI is willing to guarantee all payments which the Bank is obligated to make to Employee pursuant to this Agreement, to the extent permitted by law.

  
 D. The Bank and Employee are entering into this Agreement for
the purpose of continuing Employee’s employment upon the terms and conditions set forth herein. 
  
 NOW, THEREFORE, for and in consideration of the continued employment of Employee by the Bank, the CFHI guaranty, the mutual covenants set forth herein,
and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Bank and Employee agree as follows: 
  
 1. Recitals. The Recitals set forth above are true and correct and shall form a part of this Agreement. 
  
 2. Employment of Employee. The Bank hereby offers to continue the
employment of Employee, and Employee hereby accepts such employment, upon the terms and conditions set forth in this Agreement. 
  
 3. Term of Employment. Employee’s term of employment shall be for a period of two (2) years commencing on January 1, 2004 (the
“Commencement Date”) and ending at midnight on December 31, 2005, unless sooner terminated as provided herein. As used in this Agreement, “Term of Employment” shall refer to the period between the Commencement Date and the
effective date of Employee’s termination of employment pursuant to this Agreement. 
  
  

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 4. Duties of Employee. Employee shall serve as Executive Vice President/Retail Banking Manager of
the Bank, and shall report directly to the President of the Bank. Employee’s duties shall be established by the President of the Bank from time to time. Employee may also be requested to perform certain duties for CFHI and its subsidiaries, and
to serve as an officer of CFHI. Employee shall at all times faithfully, diligently, and conscientiously perform her duties to the Bank, to CFHI and its subsidiaries. A portion of said duties shall be to increase assets and to generate profits.
Employee will devote her entire productive time, ability and attention to the business of the Bank and to CFHI and its subsidiaries throughout her Term of Employment, and shall not directly or indirectly render any services to any other person or
organization, whether for compensation or otherwise, without the prior written consent of the Board of Directors for the Bank (the “Board”). The foregoing sentence, however, shall not be construed to prevent Employee from investing
personal assets in a form or manner which does not require any services on the part of Employee, provided such assets are not invested in a business which is in direct competition with the Bank, CFHI or its subsidiaries. 
  
 5. Principal Office. Employee will perform her duties from such
locations as the Board may determine from time to time; provided, however, Employee’s principal office shall at all times be located in Manatee County, Florida, unless Employee agrees otherwise. 
  
 6. Base Compensation. The annual base salary for the first year of
Employee’s Term of Employment will be $90,000.00. The annual base salary shall be paid to Employee in accordance with the Bank’s normal payroll practices. The Board shall meet at least annually to evaluate Employee’s performance and
to determine Employee’s annual base salary, which shall be established after taking into consideration appropriate criteria including the profitability of the Bank, the services rendered by Employee to the Bank and CFHI, and comparable salaries
paid to employees with duties and responsibilities similar to Employee within the community where the Bank has its principal place of business. Because Employee may also render services to CFHI and one or more of its subsidiaries, the
Employee’s salary may be paid in part by CFHI and CFHI subsidiaries, as determined in the sole discretion of the Board and CFHI. 
  
 7. Performance Bonus. In addition to the annual base salary described in Paragraph 6 above, if the net book value of the stock issued by CFHI is
equal to or greater than $9.01 per share as of the last day of the fiscal year, and the Bank meets or exceeds its budgeted net income goal for the fiscal year, Employee shall be entitled to a performance bonus calculated and paid in accordance with
Paragraph 8 below. 
  
 8. Calculation of Performance Bonus.
The annual performance bonus shall be calculated as follows: 
  
 (a) If the Bank meets its budgeted net income goal for the fiscal (calendar) year, as set forth in the Board-approved Business Plan in effect as of the first day of that fiscal (calendar) year, Employee shall receive
a performance bonus equal to 10% of Employee’s annual base salary in effect as of the first day of such fiscal year. 
  
 (b) If the Bank exceeds its budgeted net income goal for the fiscal (calendar) year as set forth in the Board-approved Business Plan in
effect as of the first day of the fiscal (calendar) year, the Board may, at its sole discretion, pay a performance bonus greater than the amount specified in Subparagraph 8(a) above. 
  

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 The performance bonus will be paid to Employee within thirty (30) days following the date the Bank’s accounting firm
completes and signs its annual audit for the year in which the performance bonus was earned. If the Bank fails to achieve its budgeted net income goal for any fiscal year, Employee may request the Board to consider payment of a performance bonus,
notwithstanding the Bank’s failure to meet the budgeted goal, based upon extenuating circumstances which are beyond the control of Employee. If Employee’s employment is terminated pursuant to Paragraph 10, 16 or 17 below, Employee shall
not be entitled to any portion of the performance bonus for the fiscal year in which termination occurs. If Employee’s employment is terminated pursuant to Paragraph 9, 18 or 19 below, and the conditions for payment of a performance bonus have
been met, Employee shall be entitled to receive a portion of the performance bonus calculated by multiplying the full performance bonus by a fraction, the numerator of which shall be the number of full months during the fiscal year that Employee was
employed and the denominator of which shall be twelve (12) months. 
  
 9. Disability of Employee. If Employee is unable to perform her duties pursuant to this Agreement by reason of illness or incapacity for a period of three (3) consecutive months (a “Temporary Disability”), and all sick
days, vacation days, and other paid absences have been exhausted, Employee’s base salary will be reduced by 50% until she is able to return to full-time employment. Except for the reduction of base salary, Employee shall be entitled to receive
the full benefits provided for in this Agreement during Employee’s Temporary Disability. Employee’s employment will be automatically terminated if Employee is unable to perform her duties pursuant to this Agreement by reason of illness or
incapacity for a period of more than six (6) consecutive months, or for six (6) months during any 12-month period (a “Permanent Disability”). In the event of a Permanent Disability, Employee shall receive her full base salary and benefits
for an additional six (6) months following the date employee is determined to be Permanently Disabled. Notwithstanding the foregoing, if the Bank provides a disability insurance policy to Employee which provides a qualification period for Permanent
Disability which is less than six (6) months, Employee shall be deemed Permanently Disabled as of the date determined in accordance with the policy. Compensation paid to Employee during any period of Temporary or Permanent Disability shall be
reduced by workers’ compensation benefits and disability benefits received by Employee pursuant to a disability policy purchased by the Bank. Base salary and other benefits due Employee during a period of disability shall be paid in the same
manner as otherwise provided in this Agreement. The term disability, as used in this Paragraph, shall mean that Employee is unable to perform her duties on a substantially full-time basis, as determined by the Board after taking into account such
medical certifications as the Board may require; provided, however, if the Bank has purchased a disability policy for Employee, the term “Disability” shall be defined in the same manner as used in the policy. 
  
 10. Death of Employee. The employment of Employee shall automatically
terminate upon the death of Employee, as of the date of death. 
  
 11. Business Expenses of Employee. All ordinary and necessary business expenses reasonably incurred by Employee in promoting the Bank, including expenditures for entertainment, seminars, speeches, meetings, and travel, are to be paid
for, in so far as possible, by the use of a credit card in the name of the Bank. The Bank will furnish Employee with a credit card for this purpose. Any such reasonable business expenses that cannot be charged on a credit card may be paid for by
Employee, who will later be reimbursed by the Bank. Employee will keep reasonable records and receipts for all business expenses, whether paid for by the use of a credit card or directly by Employee, as required by the Bank and/or Department of
Treasury policies. 
  

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 12. Vacations. The amount of Employee’s paid vacation time will be determined annually by the
Board, provided Employee’s annual vacation time shall never be less than four (4) weeks. Employee shall be entitled to take her vacation at such times as Employee may determine, in her sole discretion, provided the time of such vacation does
not substantially impair Employee’s ability to perform her duties pursuant to this Agreement or as otherwise directed by the Board. Employee will not be entitled to accrue unused vacation time. At the end of Employee’s Term of
Employment, the Bank will pay Employee for all of her unused vacation time calculated on a pro rata basis. 
  
 13. Additional Benefits. The Employee will have the following additional benefits: 
  
 (a) The Employee shall be entitled to full family medical and dental insurance benefits in accordance with
the terms of group health insurance plans made available to Bank employees from time to time, with all premiums for such insurance paid by the Bank. In the event of termination of employment, the Employee may timely submit claims for benefits as
provided by the terms of such plans. 
  
 (b) The
Bank maintains a 401(k) plan. The Employee shall receive such matching contributions to the Employee’s account in that plan or into the Employee’s account in any other 401(k) plan subsequently created by CFHI or any of its subsidiaries, as
may be approved pursuant to the terms of such plans. All rights of the Employee to funds in her 401(k) account shall be determined by the terms of any applicable 401(k) plan and by any applicable laws or regulations. 
  
 (c) Employee shall have the right to participate in any
stock option plan adopted by the Board from time to time. 
  
 14. Automobile Allowance. Employee shall be entitled to an automobile allowance in the amount of $400.00 per month which will be paid by the Bank, at the Employee’s discretion, either directly to the entity financing
Employee’s automobile or to the Employee. In the event of termination of employment, the Employee’s automobile allowance shall be paid for the entire month in which termination takes place, even though Employee may have worked only a
partial month. 
  
 15. Memberships. The Bank may pay for
Employee’s memberships in those organizations or clubs as may be approved by the Board. In the event of termination of employment, Employee’s membership shall be paid for the entire month in which termination takes place, even though
Employee may have worked only a partial month. 
  
 16.
Termination for Good Cause. If Employee (a) is charged with committing a felony; (b) is charged with driving under the influence or a misdemeanor drug offense; (c) is convicted of or pleads no contest to a misdemeanor; (d) is required to be
removed as an officer of either the Bank or CFHI by any regulatory authority; or (e) willfully breaches or habitually neglects her duties to the Bank as specified in this Agreement, the Bank may terminate this Agreement by giving written notice of
termination to Employee. The written notice shall specify with particularity the actions or inactions constituting good cause to terminate Employee, and shall specify a date when the termination shall become effective, which date shall be no less
than sixty (60) days following the 
  

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 date of the notice. Employee may be relieved of all duties between the date of the notice and the date termination is to
become effective, at the sole option of the Bank. Employee will be entitled to receive her full base salary and other benefits pursuant to this Agreement until the date termination becomes effective, unless Employee commences other full-time
employment prior to such date, in which event Employee’s base salary and benefits shall end on the date such other employment commences. After the date termination becomes effective, the Bank will have no further obligations to Employee except
as expressly provided in this Agreement. 
  
 17. Termination by
Employee. Employee may terminate this Agreement at any time upon sixty (60) days prior written notice to the Bank. In such event, both parties will continue to fulfill their respective obligations and responsibilities pursuant to this Agreement
until the effective date of the termination specified in the notice; provided, however, the Bank shall have the right to relieve Employee of some or all of her duties prior to the effective date of termination, at the sole option of the Bank. After
the date termination becomes effective, neither party will have any further obligations to the other except as expressly provided in this Agreement. 
  
 18. Termination by Bank Without Cause. The Bank may terminate this Agreement at any time without cause upon delivery of written notice of
termination to Employee. In such event, Employee will continue to receive her full base salary and other benefits pursuant to this Agreement for a period of one (1) year following the date of termination, unless Employee commences other full-time
employment within such one (1) year period, in which event Employee’s base salary and benefits shall end on the date such other employment commences. Employee shall have no obligation to seek or accept other employment during such one (1) year
period. Employee’s obligation to perform her duties shall end as of the date of termination except such transitional duties as the Board may reasonably request Employee to perform within a period of sixty (60) days following the date of
termination. 
  
 19. Termination Upon Change of Control of the
Bank. 
  
 (a) For purposes of this Paragraph, a “Change
of Control” is deemed to have occurred if: 
  
 (1) any individual, entity, or group (within the meaning of Sections 13(d)(3) or 14(d)(2) of the Exchange Act) other than James K. Toomey, his immediate family members (which shall include Mr. Toomey’s wife, children, and parents of
each of Mr. Toomey and his wife), or any of their respective affiliates (“Toomey Affiliates”), is or becomes, directly or indirectly, the “beneficial owner” (as defined by Rule 13d-3 promulgated under the Exchange Act) of
25% or more of the combined voting power of the then outstanding securities of CFHI entitled to vote generally in the election of Directors (“Voting Securities”); provided, however, that any acquisition by the
following will not constitute a Change of Control: 
  

	 	(i)	CFHI or any of its subsidiaries, 

  

	 	(ii)	any of the Toomey Affiliates, 

  

	 	(iii)	any employee benefit plan (or related trust) of CFHI or its subsidiaries, or 

  

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	 	(iv)	any corporation, bank, or other financial institution with respect to which, following such acquisition, more than 50% of the combined voting power of the outstanding voting
securities of such corporation entitled to vote generally in the election of directors is then beneficially owned by the individuals or entities who were the beneficial owners of the Voting Securities immediately prior to such acquisition in
substantially the same proportion as their ownership immediately prior to such acquisition of the Voting Securities; or 

  
 (2) as a result of a tender offer or exchange offer for the purchase of securities of CFHI, the offerees acquire the direct or indirect
power to exercise voting control over 50% or more of the Voting Securities; or 
  
 (3) as a result of a tender offer or exchange offer for the purchase of securities of CFHI (other than such an offer by CFHI for its own
securities), or as a result of a proxy contest, merger, consolidation, or sale of assets, or as a result of a combination of the foregoing, during any period of two consecutive years, individuals who, at the beginning of such period constitute the
Board, plus any new Directors of CFHI whose election or nomination for election by CFHI’s stockholders was or is approved by a vote of at least two-thirds of the Directors of CFHI then still in office who either were Directors of CFHI at the
beginning of such two year period or whose election or nomination for election was previously so approved (but excluding for this purpose, any individual whose initial assumption of office was or is in connection with the actual or threatened
election contest relating to the election of Directors of CFHI (as such term is used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act)), cease for any reason during such two year period to constitute at least two-thirds of the
members of the Board; or 
  
 (4) the stockholders
of CFHI approve a reorganization, merger, consolidation, or other combination, with or into any other corporation or entity regardless of which entity is the survivor, other than a reorganization, merger, consolidation, or other combination, which
would result in the Voting Securities outstanding immediately prior thereto continuing to represent (either by remaining outstanding or being converted into Voting Securities of the surviving entity) at least 60% of the combined voting power of the
Voting Securities or of the voting securities of the surviving entity outstanding immediately after such reorganization, merger, consolidation, or other combination; or 
  
 (5) the stockholders of CFHI approve a plan of liquidation or winding-up of CFHI or an agreement for the
sale or disposition by CFHI of all or substantially all of CFHI’s assets, or any distribution to security holders of assets of CFHI having a value equal to 30% or more of the total value of all assets of CFHI. 
  
 (b) For purposes of this Paragraph, the effective date for a Change of
Control (the “Change of Control Date”) will be determined as follows; 
  
 (1) with respect to any acquisition referred to in Section (a)(1) above, the date on which the acquisition of such percentage shall have
been completed; 
  

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 (2) with respect to a tender offer or exchange offer, the date of the purchase described
in Section (a)(2) above; 
  
 (3) with respect to
a change in the composition of the Board of Directors described in Section (a)(3) above, the date on which such change is adopted or is otherwise effective, whichever first occurs; or 
  
 (4) with respect to any stockholder approval described in Section (a)(4) above or Section (a)(5) above, the
date of such approval. 
  
 (c) Upon the occurrence of a Change of
Control, Employee shall have the right, in Employee’s sole discretion, for a period of 60 days following the Change of Control Date, to terminate Employee’s employment with the Bank, either with or without advance notice of termination to
the Bank; provided, however, that if advance notice of termination is given pursuant to this provision, the date of termination must occur within 60 days following the Change of Control Date. If Employee wishes to exercise this right of termination
following a Change of Control, Employee also must terminate any employment during such 60-day period with CFHI and CFHI subsidiaries where Employee may be employed in addition to the Bank. If Employee exercises this right of termination, Employee
shall be paid, in a lump sum, an amount of severance pay equivalent to 1.5 times Employee’s annual salary as of the Change of Control Date. The payment shall be treated as a form of employee compensation by the Bank, and payroll taxes shall be
withheld from the payment as if the payment were salary paid to Employee. The payment shall be deemed to be fully earned by Employee upon receipt, and future earnings by Employee will not be offset against the payment. 
  
 20. Restrictive Covenants. 
  
 (a) The Bank is a community bank with offices in Manatee County, Florida.
Although it was recently established, it has developed good will, substantial customer and prospective customer relationships, and Confidential Information, all of which are legitimate business interests worthy of protection. The Employee
acknowledges that the Bank’s legitimate business interests justify the protective covenants set forth in this Paragraph 20, and that each of the restraints set forth in this Paragraph are reasonably necessary to protect the Bank’s
legitimate business interests. These protective covenants are specifically designed to permit Employee to work outside of Manatee County and contiguous counties while restricting Employee’s ability to do any banking work inside the county or
contiguous counties which would or might cause competitive injury to the Bank’s goodwill and customer relationships, or compromise trade secrets or confidential information, within a reasonable period of time following a voluntary termination
of employment by Employee. Employee acknowledges that the protective covenants will not prevent her from obtaining employment in the banking industry outside of the protected area. Employee further agrees that the protective covenants are neither
over broad nor overlong, or otherwise inappropriate. Employee acknowledges receiving an opportunity to review these covenants with counsel, that these covenants were the result of negotiations between the parties, and that Employee desires to be
bound by the covenants in order to receive the benefits and advantages associated with execution of this Agreement. 
  

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 (b) If Employee terminates this Agreement pursuant to the provisions of Paragraph 17 or Paragraph 19
above, Employee agrees that for a period of one (1) year following the effective date of such termination, Employee will not directly or indirectly engage in any business or business venture in Manatee, Sarasota, Desoto, Hardee, Hillsborough and
Pinellas Counties which is competitive to the business of the Bank. Engaging in a competitive business shall include, but is not limited to, being employed by, contracting with, working for, providing services to, or assisting in any manner as an
owner, partner, agent, consultant, independent contractor, or employee of any person, firm or corporation engaged in such business. In the event of a breach or threatened breach of the restrictions set forth in this Subparagraph, the Bank shall be
entitled to injunctive relief restraining said breach or threatened breach, it being acknowledged and agreed that monetary damages resulting from such breach or threatened breach are not capable of being calculated with any reasonable degree of
certainty. This provision shall not, however, be construed as prohibiting the Bank from pursuing any other remedies available to it for such breach or threatened breach, including the recovery of damages. This covenant on the part of Employee shall
be construed as an agreement independent of any other provision of this Agreement. Venue for the enforcement of this covenant shall be in Manatee County, Florida. Notwithstanding anything to the contrary set forth in this Subparagraph, this covenant
shall not apply if Employee is terminated by the Bank pursuant to either Paragraph 16 or Paragraph 18 above, if Employee’s employment is terminated as a result of Employee’s disability pursuant to Paragraph 9 above, or Employee’s
employment is not continued beyond the initial two (2) year Term of Employment described in Paragraph 3 above. 
  
 (c) Confidential Information. During the course of her employment, Employee will acquire certain confidential and proprietary information
concerning the manner, means and methods used by the Bank, CFHI, and its subsidiaries to conduct their respective businesses. Employee agrees that such confidential information is the sole and exclusive property of the Bank, CFHI, and its
subsidiaries, and that she will not disclose any such information to any third parties, either directly or indirectly, or use such confidential information in any manner which is detrimental to the best interests of the Bank, CFHI, or its
subsidiaries. In the event of a breach or threatened breach of the restrictions set forth in this Subparagraph, the Bank and CFHI shall be entitled to injunctive relief restraining said breach or threatened breach, it being acknowledged and agreed
that monetary damages resulting from such breach or threatened breach are not capable of being calculated with any reasonable degree of certainty. As used herein, the term “Confidential Information” shall include, without limitation,
marketing plans and techniques, customer lists, prospect lists, pricing data, computer operating systems, databases, computer software, financial information, notations, memoranda, compilations, summaries, correspondence, business techniques,
management information systems, leases, employment information, contractual arrangements, reports of consultants, financial projections, financial models, and any other documentation created, developed, or used by the Bank, CFHI, or its subsidiaries
to conduct their respective businesses. The term Confidential Information shall not include information which was or becomes generally available to the public other than as a result of a disclosure by Employee. The restrictions set forth in this
Subparagraph are specifically intended to survive termination of Employee’s employment. 
  

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 21. Employee Policies. The Bank recognizes that Employee’s position and duties are unique,
and differ substantially from any other employee of the Bank. As a result, the employee policies of the Bank will not generally be applicable to Employee unless expressly provided by the Board. If a conflict arises between the employee policies of
the Bank and this Agreement, the provisions of this Agreement will control. Notwithstanding the foregoing, it is expressly agreed by the parties that the Bank’s policies, as they exist from time to time, regarding Equal Employment Opportunity
and Sexual Harassment shall at all times be applicable to Employee. 
  
 22. Indemnification of Employee. Employee shall be indemnified by the Bank for claims asserted against Employee as provided in Section 607.0850 of the Florida Statutes or pursuant to an indemnification resolution adopted by
the Board, whichever provides greater protection to the Employee. The Bank hereby exercises its power to indemnify Employee in accordance with Section 607.0850, and shall not revoke the exercise of such power without the prior written consent of
Employee. The indemnification provided by this Paragraph shall expressly survive the termination of Employee’s employment by the Bank. 
  
 23. CFHI Guarantee. CFHI hereby guarantees all payments due Employee in accordance with the terms and conditions of this Agreement. 
  
 24. Keyman Life Insurance. Employee agrees that the Bank may, at any
time during the Term of Employment, apply for and purchase in the Bank’s name and at the Bank’s expense a life insurance policy insuring the life of Employee in an amount to be determined by the Bank, in its sole discretion. Employee
agrees to cooperate with the Bank in obtaining such insurance by executing all necessary documents including applications and health insurance questionnaires, and submitting to medical examinations as may be reasonably required by the insurer. The
life insurance described in this Paragraph shall be solely for the benefit of the Bank, and Employee shall have no interest, right, or claim to such insurance. 
  

25. Compliance with Laws and Regulations. Employee warrants that she will comply with all applicable laws and regulations governing the
licensing of the Bank to conduct a general commercial banking business in the State of Florida. Employee will cooperate with the Bank in satisfying any and all requirements necessary for the Bank to maintain its licensure and status as a commercial
bank under the laws of the State of Florida. 
  
 26.
Notices. All notices required or permitted to be give pursuant to this Agreement shall be given by hand delivery, certified mail, or overnight courier service to the following addresses or such other addresses as either of the parties may
subsequently designate in writing by notice to the other: 
  

			
	 Bank or CFHI:
	  	 Coast Bank of Florida

	 	  	 c/o Chairman of the Board

	 	  	 2412 Cortez Road W

	 	  	 Bradenton, FL 34207

		
	 Employee:
	  	 Anne V. Lee

	 	  	 c/o Coast Bank of Florida

	 	  	 6205 Cortez Road W

	 	  	 Bradenton, FL 34210

  

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 27. Authority of the Bank. The undersigned, as President of the Bank, warrants and represents that
all requisite corporate action has been taken by the Bank to approve this Agreement, that he has the full authority to execute this Agreement on behalf of the Bank, and that the Bank shall be fully bound by the terms and conditions set forth herein.

  
 28. Governing Law. This Agreement shall be construed
and enforced in accordance with the laws of the State of Florida. 
  
 29. Attorney’s Fees and Court Costs. Should any litigation arise among the parties to construe or enforce this Agreement, the prevailing party shall be entitled to recover from the other party or parties all reasonable costs and
expenses incurred in such litigation, including reasonable attorney’s fees and costs of appeal. 
  
 30. WAIVER OF JURY TRIAL. AS A MATERIAL INDUCEMENT TO THE BANK AND CFHI TO ENTER INTO THIS AGREEMENT, THE PARTIES MUTUALLY WAIVE ANY RIGHT TO A
TRIAL BY JURY IN ANY LITIGATION ARISING OUT OF OR RELATING IN ANY MANNER TO THIS AGREEMENT, SPECIFICALLY INCLUDING ACTIONS TO ENFORCE OR INTERPRET THE RESTRICTIVE COVENANTS SET FORTH IN PARAGRAPH 20 OF THIS AGREEMENT. 
  
 31. Entire Agreement. This Agreement constitutes the complete
understanding of the parties regarding the subject matter hereof, and all promises, representations, warranties, and agreements regarding the subject matter of this Agreement, and inducements to the making of this Agreement which may have been
relied upon by either party, have been fully expressed in this Agreement. That certain Protective Covenant and Change of Control Agreement between Bank and Employee dated April 11, 2003, is hereby terminated in all respects. 
  
 32. Modifications in Writing. Any modification to this Agreement shall
not be valid or enforceable unless in writing and signed by all of the parties hereto. It is expressly agreed that this Agreement shall not be modified orally, by course of dealing, or by implied agreement. 
  
 33. Binding Effect. This Agreement shall be binding upon, and shall
inure to the benefit of, the Bank and CFHI and their respective successors and assigns. 
  
 34. Severability. If any paragraph, subparagraph, or provision of this Agreement is held to be invalid or unenforceable, the remainder of the Agreement shall not be affected thereby unless the overall intent
and purpose of this Agreement is destroyed by such invalidity or unenforceability. 
  
 35. Headings. The headings to the paragraphs contained in this Agreement are for convenience only, and are not intended to limit, restrict or otherwise modify the substance of the Agreement. 
  

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 WHEREFORE, Employee, the Bank, and CFHI have executed or caused the execution of this Agreement as of the
day and year first above written. 
  

									
	 	 	 	 	 	 	 COAST BANK OF FLORIDA

			
	 /s/ Anne V. Lee

	 	 By:
	 	 /s/ Brian P. Peters

	 Anne V. Lee
	 	 	 	 Brian P. Peters

			
	 COAST FINANCIAL HOLDINGS, INC.
	 	 	 	 
				
	 By:
	 	 /s/ Brian P. Peters

	 	 	 	 
	 	 	 Its:
	 	 President and CEO
	 	 	 	 

  

 -11-Promissory Note

 Exhibit 10.1 
  
 PROMISSORY NOTE 
  
 Solidus Networks, Inc. 
  

			
	 $15,500,000.00
	 	March 22, 2004
	 	 	Atlanta, Georgia

  
 Solidus Networks,
Inc., a Delaware corporation (the “Parent”), and Payment Acquisition Corp., a Delaware corporation and a wholly-owned subsidiary of the Parent (the “Merger Sub,” and together with the Parent referred to herein as
the “Borrowers”), jointly and severally, for value received, hereby promise to pay to InterCept, Inc., with an address at 3150 Holcomb Bridge Road, Suite 200, Norcross, GA 30071 (collectively with any successor or assignee, the
“Holder”), the principal amount of FIFTEEN MILLION FIVE HUNDRED THOUSAND DOLLARS ($15,500,000.00), together with interest on the unpaid principal balance outstanding from the date hereof until paid at the simple interest rate of
eight percent (8.0%) per annum (the “Interest Rate”), from the date written above until paid. 
  
 All agreements made in this Promissory Note (this “Note”) are expressly limited so that in no event whatsoever, whether by reason of
advancement of proceeds hereof, acceleration of maturity of the unpaid balance hereof or otherwise, shall the interest paid or agreed to be paid to the Holder for the use of the money advanced or to be advanced hereunder exceed the maximum rate
permitted by law (the “Maximum Rate”). If, for any circumstances whatsoever, the fulfillment of any provision of this Note or any other agreement or instrument now or hereafter evidencing, securing or in any way relating to the debt
evidenced hereby shall involve the payment of interest in excess of the Maximum Rate, then, ipso facto, the obligation to pay interest hereunder shall be reduced to the Maximum Rate; and if for any circumstance whatsoever, the Holder shall
ever receive interest, the amount of which would exceed the amount collectible at the Maximum Rate, such amount as would be excessive interest shall be applied to the reduction of the principal balance remaining unpaid hereunder and not to the
payment of interest. This provision shall control every other provision in any and all other agreements and instruments existing or hereafter arising between the Borrowers and the Holder with respect to the debt evidenced hereby. 

 
 1. Payment. 
  
 (a) Subject to Section 4 hereof, principal of, and any accrued and unpaid
interest on, this Note shall be due and payable in two installments. The first installment of Three Million Dollars ($3,000,000) in principal plus accrued and unpaid interest thereon (the “First Installment”) is due and payable on May 21,
2004 (the “Installment Date”), and all remaining principal and accrued interest thereon shall be due and payable on September 20, 2004 (the “Maturity Date”); provided, however, that (x) if the First
Installment is paid on or before the Installment Date, the amount of principal remaining outstanding after such payment shall be reduced by Three Million Dollars ($3,000,000); and (y) the Borrowers’ failure to pay the First Installment by the
Installment Date shall not constitute a default in the payment of principal or interest hereunder. (For avoidance of doubt, if the First Installment is paid on the Installment Date and there have been no prior prepayments, the remaining principal
balance on this Note after the Installment Payment shall be $9,500,000.00.) Time is of the essence of this Note. 

 (b) Interest on this Note shall accrue at the Interest Rate from the date hereof, and shall be payable in
arrears on the Installment Date and the Maturity Date as provided above. 
  
 (c) The Borrowers may, at their option, prepay the principal of this Note, in whole or in part, plus all accrued interest thereon, without payment of any premium or penalty, by giving written notice thereof to the
Holder at least five (5) days prior to the date selected for prepayment. 
  
 (d) Payment of principal and interest on this Note shall be made by wire transfer to the Holder according to written instructions provided by the Holder, provided that if the Holder fails to provide such instructions
at least three business days before such payment is due, then payment may be made by check delivered to the Holder on or before the date due by a method permitted in this Note. 
  
 (e) The obligations to make the payments provided for in this Note are absolute and unconditional and not subject to any
defense, set-off, counterclaim, rescission, recoupment or adjustment whatsoever. Each Borrower hereby expressly waives demand and presentment for payment, notice of non-payment, notice of dishonor, protest, notice of protest and diligence in taking
any action to collect any amount called for hereunder, and shall be directly and primarily liable for the payment of all sums owing and to be owing hereon, regardless of and without any notice, diligence, act or omission with respect to the
collection of any amount called for hereunder. 
  
 (f) This Note
is secured by that certain Guaranty Agreement dated of even date herewith signed and delivered by three individuals. 
  
 2. Covenants. The Borrowers hereby covenant and agree with the Holder that, so long as any amount remains unpaid on this Note, the Borrowers shall
deliver to the Holder: 
  
 (i) promptly after either Borrower
shall obtain actual knowledge of such, written notice of all legal or arbitral proceedings, and of all proceedings by or before any governmental or regulatory authority or agency, and each material development in respect of such legal or other
proceedings, materially affecting either Borrower; and 
  
 (ii)
promptly after either Borrower shall obtain actual knowledge of the occurrence of any Event of Default (as hereinafter defined) or any event which with notice or lapse of time or both would become an Event of Default (an Event of Default or such
other event being a “Default”), a notice specifying that such notice is a “Notice of Default” and describing such Default in reasonable detail, and, in such Notice of Default or as soon thereafter as practicable, a
description of the action the Borrowers have taken or propose to take with respect thereto. 
  

 2 

 3. Events of Default. 
  
 The occurrence of any of the following events shall constitute an event of default (an “Event of Default”):

  
 (a) A default in the payment of the principal or interest on
this Note, when and as the same shall become due and payable; provided, however, that the Borrowers’ failure to pay the First Installment by the Installment Date shall not constitute a default in the payment of principal or interest.

  
 (b) A default in the performance, or a breach, of any other
covenant or agreement of the Borrowers in this Note and continuance of such default or breach for a period of fifteen (15) days after receipt of notice from the Holder as to such breach or after the Borrowers had actual knowledge of such breach.

  
 (c) A default or event of default that remains uncured
following any applicable cure period shall have occurred with respect to any indebtedness for borrowed money of either Borrower in the amount of $250,000 or more and such indebtedness shall have been accelerated by its holder. 
  
 (d) Any representation, warranty, or certification made by the Borrowers in
or pursuant to this Note shall prove to have been false or misleading as of the date made in any material respect. 
  
 (e) The entry of a decree or order by a court having jurisdiction adjudging either Borrower a bankrupt or insolvent, or approving a petition seeking
reorganization, arrangement, adjustment or composition of or in respect of such Borrower, under federal bankruptcy law, as now or hereafter constituted, or any other applicable federal or state bankruptcy, insolvency or other similar law, and the
continuance of any such decree or order unstayed and in effect for a period of 30 days; or the commencement by either Borrower of a voluntary case under federal bankruptcy law, as now or hereafter constituted, or any other applicable federal or
state bankruptcy, insolvency, or other similar law, or the consent by either Borrower to the institution of bankruptcy or insolvency proceedings against it, or the filing by either Borrower of a petition or answer or consent seeking reorganization
or relief under federal bankruptcy law or any other applicable federal or state law, or the consent by either Borrower to the filing of such petition or to the appointment of a receiver, liquidator, assignee, trustee, sequestrator or similar
official of such Borrower or of any substantial part of the property of such Borrower, or the making by either Borrower of an assignment for the benefit of creditors, or the admission by either Borrower in writing of its inability to pay its debts
generally as they become due, or the taking of corporate action by such Borrower in furtherance of any such action. 
  
 4. Remedies Upon Default. 
  
 (a) Upon the occurrence of an Event of Default referred to in Sections 3(a) or 3(e), the principal amount then outstanding of, and the accrued interest
on, this Note shall become immediately due and payable without presentment, demand, protest or other formalities of any kind, all of which are hereby expressly waived by the Borrowers. Upon the occurrence of 
  

 3 

 an Event of Default other than ones referred to in Sections 3(a) and 3(e), the Holder may declare the principal amount
then outstanding of, and the accrued interest on, this Note to be due and payable immediately, and upon such declaration the same shall become due and payable immediately, without presentation, demand, protest or other formalities of any kind, all
of which are expressly waived by the Borrowers. If the maturity date of this Note is accelerated as provided in this Section 4(a), this Note shall bear interest at the simple interest rate of twelve (12%) per annum (the “Default
Rate”), commencing on the date of such acceleration without further notice. 
  
 (b) Upon the occurrence and during the continuance of an Event of Default, the Holder may institute such actions or proceedings in law or equity as it shall deem expedient for the protection of its rights and may
prosecute and enforce its claims against all assets of the Borrowers, and in connection with any such action or proceeding shall be entitled to receive from the Borrowers payment of the principal amount of this Note plus accrued interest to the date
of payment plus reasonable expenses of collection, including, without limitation, reasonable attorneys’ fees and expenses actually incurred. 
  
 5. Miscellaneous. 
  
 (a) Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be mailed by certified mail, return
receipt requested, or by Federal Express, Express Mail or similar overnight delivery or courier service or delivered (in person or by telecopy, telex or similar telecommunications equipment) against receipt to the party to whom it is to be given,
(i) if to the Borrowers, at their respective addresses as set forth below their signatures, Attention: President, (ii) if to the Holder, at its address set forth on the first page hereof, or (iii) in either case, to such other address as the party
shall have furnished in writing in accordance with the provisions of this Section 5(a). Any notice or other communication given by certified mail shall be deemed given at the time of certification thereof, except for a notice changing a party’s
address, which shall be deemed given at the time of receipt thereof. Any notice given by other means permitted by this Section 5(a) shall be deemed given at the time of receipt thereof. 
  
 (b) Upon receipt of evidence satisfactory to the Borrowers, of the loss, theft, destruction or mutilation of this Note (and
upon surrender of this Note if mutilated), including an affidavit of the Holder thereof that this Note has been lost, stolen, destroyed or mutilated together with an indemnity against any claim that may be made against the Borrowers on account of
such lost, stolen, destroyed or mutilated Note, and upon reimbursement of the Borrowers’ reasonable incidental expenses, the Borrowers shall execute and deliver to the Holder a new Note of like date, tenor and denomination. 
  
 (c) No failure to accelerate the indebtedness evidenced hereby by reason of
an Event of Default hereunder, or other indulgences granted from time to time or course of dealing hereunder, shall be construed as a novation of this Note or as a waiver of such right of acceleration or of the right of Holder thereafter to insist
upon strict compliance with the terms of this Note or to prevent the exercise of such right of acceleration or any other right granted hereunder or by applicable law. No extension of the time for payment of the indebtedness evidenced hereby, made by
agreement with any person now or hereafter liable for payment of the 
  

 4 

 indebtedness evidenced hereby, shall operate to release, discharge, modify, change, or affect the original liability of
the Borrowers hereunder or that of any other person now or hereafter liable for payment of the indebtedness evidenced hereby, either in whole or in part, unless the Holder agrees otherwise in writing. No right, power or remedy conferred by this Note
upon the Holder shall be exclusive of any other right, power or remedy referred to herein or now or hereafter available at law, in equity, by statute or otherwise, and all such remedies may be exercised singly or concurrently. 
  
 (d) This Note may be amended only by a written instrument executed by the
Borrowers and the Holder. 
  
 (e) THIS NOTE SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE UNITED STATES OF AMERICA AND THE STATE OF GEORGIA, EXCLUDING CHOICE OF LAW PRINCIPLES.  
  
 (f) Any dispute, controversy or claim arising out of or relating to this Note shall be settled by binding arbitration in accordance with the commercial
arbitration rules of the American Arbitration Association in force at the time and place and in the manner described in Section 10.6 of that certain Agreement and Plan of Merger, dated as of the date hereof by and among the Parent, the Merger Sub,
InterCept Payment Solutions, LLC, and InterCept, Inc. 
  
 (g) Each
Borrower irrevocably consents to the exclusive jurisdiction of the courts of the State of Georgia and of any federal court located in such State in connection with any action or proceeding arising out of or relating to this Note, any document or
instrument delivered pursuant to, in connection with or simultaneously with this Note, or a breach of this Note or any such document or instrument. 
  
 [The rest of this page is intentionally left blank, and signatures are on following page.] 
  

 5 

 IN WITNESS WHEREOF, each Borrower has caused this Note to be executed and dated the day and year first
above written. 
  

			
	Solidus Networks, Inc.
		
	 By:
	 	 /s/ John Rogers

	 Name:
	 	 John Rogers

	 Title:
	 	 President

  

			
	 Address:
	 	 One Market Street

	 	 	 Spear Street Tower

	 	 	 Suite 700

	 	 	 San Francisco, CA 94105

  

			
	Payment Acquisition Corp.
		
	 By:
	 	 /s/ John Rogers

	 Name:
	 	 John Rogers

	 Title:
	 	 President

  

			
	 Address:
	 	 One Market Street

	 	 	 Spear Street Tower

	 	 	 Suite 700

	 	 	 San Francisco, CA 94105

  

 6

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