Document:

EX-10.1

 Exhibit 10.1 

EXECUTION VERSION 
 April 29,
2018 
 Gregory J. Goff 
 At the address on file with the
Company 
 Dear Greg:  
 This letter
(this “Letter Agreement”) is intended to memorialize our agreement regarding the terms of your employment with Marathon Petroleum Corporation (“Parent”) and your rights to certain compensation and benefits upon and
following the closing date (the “Effective Date”) of the proposed acquisition (the “Transaction”) of Andeavor (the “Company”) by Parent pursuant to the Agreement and Plan of Merger, dated as of the
date hereof, between the Company, Parent, Mahi Inc., a wholly owned subsidiary of Parent, and Mahi LLC, a wholly owned subsidiary of Parent (the “Merger Agreement”). In the event that (i) your employment with the Company
terminates for any reason prior to the Effective Date or (ii) the Merger Agreement is terminated without the closing of the Transaction, this Letter Agreement will be void ab initio and will have no further force or effect and
none of the parties will have any obligations hereunder.  
 From the Effective Date until the first anniversary of the
Effective Date, subject to earlier termination of your employment or extension by mutual agreement between you and Parent, you will be employed by Parent with the following payments and benefits and you agree to accept the following terms of
continued employment and service: 
  

	1.	 Position. During the period of your employment hereunder, your title will be Executive Vice Chairman.
You will have all of the customary authorities, duties and responsibilities that accompany the position of Executive Vice Chairman, as discussed and agreed with the Chief Executive Officer of Parent. Upon the Effective Date, you will also be
appointed as a member of Parent’s Board of Directors. 

  

	2.	 Target Annual Direct Compensation during Period of Employment. 

 

	 	A.	 Annual Base Salary. Your annual base salary will be at a rate of $1,600,000 per year during your
employment hereunder, and will be paid in accordance with Parent’s normal payroll practices. 

  

	 	B.	 Annual Bonus Opportunity. Beginning in 2019, you will be eligible to receive an annual target bonus
opportunity of 160% of your base salary, with the actual amount of the annual bonus paid and performance goals and other terms and conditions that are determined by Parent in accordance with the terms and conditions of Parent’s annual bonus
program, as in effect from time to time for similarly situated executives. 

	 	C.	 Long-Term Incentive Opportunity. You will be eligible to receive an annual target long-term incentive
with a grant date value of $12,250,000. The long-term incentive awards will be subject to the terms and conditions of Parent’s long-term incentive program, as in effect from time to time for similarly situated executives; provided that
(i) for awards in the form of options to purchase Parent common stock, you will be deemed eligible for retirement treatment and (ii) awards in any other form will provide that, on termination by Parent without cause or resignation by you
for any reason more than one year following the Effective Date, such awards will continue to vest in accordance with their terms, with any performance-based awards vesting based on actual performance. 

 

	3.	 Termination of Employment. Provided that you remain employed with Parent through the first anniversary
of the Effective Date, or if your employment is terminated by Parent or its affiliates prior to such date without Cause (as defined in the CIC Plan), upon your termination (other than your termination for Cause, as defined in the CIC Plan), you
shall be entitled to receive the Change in Control Benefit (as defined in the CIC Plan) applicable to the Chief Executive Officer in accordance with the terms and conditions of the Company’s Amended and Restated Executive Severance and Change
in Control Plan (the “CIC Plan”), and such termination shall be treated as a Qualifying Termination for purposes of your outstanding, unvested equity-based awards granted prior to the Effective Date. For the avoidance of doubt, you
hereby waive your right to resign for Good Reason through the first anniversary of the Effective Date under the CIC Plan and under your outstanding, unvested equity-based awards granted prior to the Effective Date. 

For purposes of this Letter Agreement, “Qualifying Termination” means a termination without Cause or for Good Reason as
defined under the Company Amended and Restated 2011 Long-Term Incentive Plan. 
  

	4.	 Benefits and Compliance with Parent Policies. During your employment with Parent, you will be eligible
to participate in the employee retirement and welfare plans that are comparable in the aggregate to those provided to you by the Company before the Effective Time. You will be credited with your years of service with the Company and its subsidiaries
before the Effective Time for purposes of vesting, eligibility to participate in, benefit entitlement and levels of benefits under any applicable compensation or benefit plans of the Company or Parent following the Effective Date. For the avoidance
of doubt, this Letter Agreement will not affect your rights or benefits pursuant to the Company’s Executive Security Plan, Pension Plan, Executive Deferred Compensation Plan, or similar Company benefit plans. During your employment, you will be
subject to all applicable compensation and benefit and governance policies of Parent that are applicable to similarly situated executives, as in effect from time to time. 

 

	5.	 Confidentiality. In the course of your employment with and involvement with Parent, the Company and
their respective affiliates, you have obtained, or may obtain, confidential information, confidential knowledge or confidential data concerning Parent, the Company and their respective affiliates’ businesses, strategies, operations, clients,
customers, prospects, financial affairs, organizational and personnel matters, policies, procedures and other nonpublic matters, or concerning those of third parties. You hereby covenant and agree that, at any time during or after your employment,
you will not disclose any Confidential Information, except when required to perform your duties to Parent or one of its affiliates, by law or judicial process, and that all Confidential Information remains the sole property of Parent and its
applicable affiliates. “Confidential Information” 

  
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means all non-public information concerning trade secrets, know-how, software, developments, inventions, processes,
technology, designs, the financial data, strategic business plans or any proprietary or confidential information, whether tangible or intangible, documents or materials in any form or media, including (without limitation) any of the foregoing
relating to research, operations, finances, current and proposed products and services, vendors, customers, advertising and marketing, and other non-public, proprietary, and confidential information of the
Company or Parent. The foregoing confidentiality provision contained herein is in addition to and not in limitation of your duties as an officer, employee or service provider under applicable law. For purposes of this Section 5 and
Section 6 of this Letter Agreement, references to Parent, the Company and their affiliates will include their predecessor and any successor entities. For the avoidance of doubt, nothing in this Letter Agreement limits, restricts or in any other
way affects your communicating with any governmental agency or entity concerning matters relevant to the governmental agency or entity. You and Parent agree that no confidentiality or other obligation you owe to Parent or the Company prohibits you
from reporting possible violations of U.S. Federal law or regulation to any governmental agency or entity under any whistleblower protection provision of U.S. Federal or U.S. State law or regulation (including Section 21F of the Securities
Exchange Act of 1934 or Section 806 of the Sarbanes-Oxley Act of 2002) or requires you to notify Parent or the Company of any such report. In making any such report, however, you are not authorized to disclose communications with counsel that
were made for the purpose of receiving legal advice, that contain legal advice or that are protected by the attorney work product or similar privilege. 

  

	6.	 Non-Competition. You hereby covenant and agree that, during your
employment and for 36 months thereafter, you will not directly or indirectly serve as an officer, director, owner, contractor, consultant, or employee of any the following organizations (or any of their respective subsidiaries or divisions):
HollyFrontier Corporation; PBF Energy Inc.; Phillips 66; Valero Energy Corporation; Magellan Midstream Partners, L.P.; Enbridge Energy Partners, L.P.; Western Gas Partners, L.P.; Buckeye Partners, L.P.; EnLink Midstream Partners, L.P.; DCP Midstream
Partners, L.P.; NuStar Energy L.P.; Genesis Energy, L.P.; and Holly Energy Partners, L.P., or otherwise engage in any business activity directly or indirectly competitive with the business of Parent or its affiliates (or their respective
subsidiaries or divisions) as in effect from time to time. 

  

	7.	 Express Acknowledgment. You acknowledge and agree that: It is the intention of the parties hereto
that the foregoing covenants, including without limitation the noncompetition covenant of Section 6, be valid, legal and enforceable. Notwithstanding the foregoing, if any of the covenants set forth herein is finally held to
be invalid, illegal or unenforceable (whether in whole or in part), such covenant shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability, and the remaining covenants shall not be affected
thereby. Any termination of your services shall have no effect on the continuing operation of the foregoing covenants of Sections 5 or 6, which shall survive in accordance with their terms. In the event of a breach or threatened breach of Sections 5
or 6, you agree that Parent will be entitled to injunctive relief in a court of appropriate jurisdiction to remedy any such breach or threatened breach, and you acknowledge that damages would be inadequate and insufficient. 

  
 - 3 - 

	8.	 Tax Matters. This Letter Agreement is intended to comply with, or otherwise be exempt from, the
requirements of Section 409A of the Internal Revenue Code of 1986, as amended (together with the applicable regulations thereunder, “Section 409A”). To the extent that any provision in this Letter Agreement
is ambiguous as to its compliance with Section 409A or to the extent any provision in this Letter Agreement must be modified to comply with Section 409A (including, without limitation, Treasury Regulation
1.409A-3(c)), such provision will be read, or will be modified (with the mutual consent of the parties, which consent will not be unreasonably withheld), as the case may be, in such a manner so that all
payments due under this Letter Agreement will comply with, or otherwise be exempt from, Section 409A. For purposes of Section 409A, each payment made under this Letter Agreement will be treated as a separate payment. In no event may you,
directly or indirectly, designate the calendar year of payment. 

 Notwithstanding any provision of this Letter Agreement
to the contrary, if necessary to comply with the restriction in Section 409A(a)(2)(B) of the Code concerning payments to “specified employees” (as defined in Section 409A) any payment on account of your separation from service
that would otherwise be due hereunder within six months after such separation will nonetheless be delayed until the first business day of the seventh month following your date of termination and the first such payment will include the cumulative
amount of any payments that would have been paid prior to such date if not for such restriction. 
  

	9.	 Entire Agreement. This Letter Agreement and the CIC Plan constitutes Parent’s only statement
relating to the terms and conditions of your employment with Parent and supersedes any previous communications or representations, oral or written, from or on behalf of Parent or any of its affiliates (including the Company) as of the Effective
Date. 

  

	10.	 Representations. You confirm and represent, by signing this Letter Agreement, that you understand and
accept all of the terms and conditions of this Letter Agreement. 

  

	11.	 Miscellaneous. 

 

	 	A.	 Amendment. This Letter Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal representatives. 

  

	 	B.	 Withholding. Parent may withhold from any amounts payable under this Letter Agreement such federal,
state, local or foreign taxes as are be required to be withheld pursuant to any applicable law or regulation. 

  

	 	C.	 Choice of Law. This Letter Agreement will be governed and construed in accordance with the laws of the
State of Ohio. 

  

	 	D.	 Severability. The invalidity or unenforceability of any provision of this Letter Agreement will not
affect the validity or enforceability of any other provision of this Letter Agreement, and this Letter Agreement will be construed as if such invalid or unenforceable provision were omitted (but only to the extent that such provision cannot be
appropriately reformed or modified). 

  
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	 	E.	 Waiver of Breach. No waiver by any party hereto of a breach of any provision of this Letter Agreement by
any other party, or of compliance with any condition or provision of this Letter Agreement to be performed by such other party, will operate or be construed as a waiver of any subsequent breach by such other party of any similar or dissimilar
provisions and conditions at the same or any prior or subsequent time. The failure of any party hereto to take any action by reason of such breach will not deprive such party of the right to take action at any time while such breach continues.

  

	 	F.	 Notices. Notices and all other communications provided for in this Letter Agreement will be in writing
and will be delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid, or prepaid overnight courier to the parties at the addresses set forth below (or such other addresses as will be specified by the
parties by like notice): 

  

					
		 	To Parent:	  	 539 South Main Street
 Findlay, OH 45840

Attention: General Counsel

			
		 	Or to you:	  	Address on file with Parent

 Each party, by written notice furnished to the other party, may modify the applicable delivery address, except
that notice of change of address will be effective only upon receipt. Such notices, demands, claims and other communications will be deemed to have been given in the case of delivery by overnight service with guaranteed next day delivery, the next
day or the day designated for delivery; or in the case of certified or registered U.S. mail, five (5) days after deposit in the U.S. mail; provided, however, that in no event shall any such communications be deemed to be given
later than the date they are actually received. 
  

	12.	 Resignation from Positions. Immediately upon termination of your employment for any reason, unless
otherwise requested by Parent, you will automatically be deemed to have (i) resigned from all positions (including, without limitation, any management, officer or director position) with Parent and its affiliates and (ii) relinquished any
power of attorney, signing authority, trust authorization or bank account signatory authorization that you may hold on behalf of Parent or its affiliates. Your execution of this Letter Agreement will be deemed the grant by you to the officers of
Parent of a limited power of attorney to sign in your name and on your behalf such documentation as may be necessary or appropriate for the limited purposes of effectuating such resignations and relinquishments. 

 

	13.	 Survivorship. Upon the expiration or other termination of this Letter Agreement, the respective rights
and obligations of the parties hereto will survive such expiration or other termination of the extent necessary to carry out the intentions of the parties under this Letter Agreement. 

 

	14.	 Counterparts. This Letter Agreement may be executed in separate counterparts, each of which is deemed to
be an original and all of which taken together constitute one and the same agreement. 

  
 - 5 - 

 
			
	Sincerely,
	
	MARATHON PETROLEUM CORPORATION
		
	 By:
	 	 /s/ Gary R. Heminger

		 	Name: Gary R. Heminger
		 	Title: Chairman and Chief Executive Officer

  
 [Signature Page to Letter Agreement]

 I agree with and accept the terms and conditions of this Letter Agreement: 

 

	
	/s/ Gregory J. Goff
	Name: Gregory J. Goff
	Date:

 [Signature Page to Letter Agreement]EX-10.1

 Exhibit 10.1 

EXCHANGE AGREEMENT 
 This
EXCHANGE AGREEMENT is made and entered into as of September 26, 2018 (this “Agreement”) by and between Coastal Financial Corporation, a Washington corporation (the “Company”), and CJA Private Equity Financial
Restructuring Master Fund I LP, a limited partnership formed under the laws of the Cayman Islands (the “Investor”). 

RECITALS 

A.    The Investor is, as of the date hereof, the record and beneficial owner of 261,444 shares of the Company’s
Class C Nonvoting Common Stock, no par value per share (the “Non-Voting Shares”); 

B.    The Company issued 64,118 of the Non-Voting Shares pursuant to that certain
Investment Agreement, dated April 13, 2012, by and between the Company and the Investor (the “Investment Agreement”); and 

C.    The Company and the Investor desire to exchange (the “Non-Voting
Exchange”) the Non-Voting Shares owned by the Investor for shares of the Company’s voting common stock, no par value per share (the “Voting Common Stock” and such shares of
Voting Common Stock, the “Exchange Shares”), on the terms and subject to the conditions set forth herein. 
 NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereby agree as follows: 

ARTICLE I 
 THE
CLOSING; CONDITIONS TO THE CLOSING 
 Section 1.1    The Closing. 

(a)    The closing of the Non-Voting Exchange (the “Closing”) will
take place remotely via the electronic exchange of documents and signature pages, as the parties may agree. The Closing shall take place on September 28, 2018; provided, however, that the conditions set forth in Sections 1.1(c), (d) and
(e) shall have been satisfied or waived, or at such other place, time and date as shall be agreed between the Company and the Investor. The time and date on which the Closing occurs is referred to in this Agreement as the “Closing
Date.” 
 (b)    Subject to the fulfillment or waiver of the conditions to the Closing in this
Section 1.1, at the Closing (i) the Company will cause the transfer agent for the Voting Common Stock to register the Exchange Shares in the name of the Investor and deliver reasonably satisfactory evidence of such registration to the
Investor and (ii) the Investor will deliver the certificate(s) or book-entry shares representing the Non-Voting Shares to the Company. 

(c)    The respective obligations of each of the Investor and the Company to consummate the
Non-Voting Exchange are subject to the fulfillment (or waiver by the Company 

  
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and the Investor, as applicable) prior to the Closing of the conditions that (i) any approvals, non-objections or authorizations of all United States
and other governmental, regulatory or judicial authorities (collectively, “Governmental Entities”) required for the consummation of the Non-Voting Exchange shall have been obtained or made in
form and substance reasonably satisfactory to each party and shall be in full force and effect and all waiting periods required by United States and other applicable law, if any, shall have expired and (ii) no provision of any applicable United
States or other law and no judgment, injunction, order or decree of any Governmental Entity shall prohibit consummation of the Non-Voting Exchange as contemplated by this Agreement or impose material limits on
the ability of any party to this Agreement to consummate the transactions contemplated by this Agreement. 
 (d)    The
obligation of the Investor to consummate the Non-Voting Exchange is also subject to the fulfillment (or waiver by the Investor) at or prior to the Closing of each of the following conditions: 

(i)    (A) the representations and warranties of the Company set forth in Article III of this Agreement shall be true and
correct in all material respects as though made on and as of the date of this Agreement and as of the Closing Date (other than representations and warranties that by their terms speak as of another date, which representations and warranties shall be
true and correct in all material respects as of such other date) and (B) the Company shall have performed in all material respects all obligations required to be performed by it under this Agreement at or prior to the Closing; 

(ii)    the Investor shall have received a certificate signed on behalf of the Company by an executive officer certifying
to the effect that the conditions set forth in Section 1.1(d)(i) have been satisfied; 
 (iii)    the Company
shall have delivered evidence of issuance in book-entry form of the Exchange Shares to the Investor; 
 (iv)    the
Exchange Shares shall have been authorized for listing on The NASDAQ Global Select Market (“NASDAQ”), subject to official notice of issuance, if required; and 

(v)    the issuance of the Exchange Shares will not cause the number of shares of Voting Common Stock owned by the
Investor, taking into account the Exchange Shares, to exceed 9.9% of the issued and outstanding shares of Voting Common Stock. 

(e)    The obligation of the Company to consummate the Non-Voting Exchange is also
subject to the satisfaction or waiver, at or prior to the Closing, of the following conditions: 
 (i)    (A) the
representations and warranties of Investor set forth in Article IV of this Agreement shall be true and correct in all material respects as though made on and as of the date of this Agreement and as of the Closing Date (other than representations and
warranties that by their terms speak as of another date, which representations and warranties shall be true and correct in all material respects as of such other date) and (B) covenants and obligations of Investor to be performed or observed on
or before the Closing Date under this Agreement will have been performed or observed in all material respects; and 

  
 2 

 (ii)    the Company shall have received a certificate signed on behalf
of Investor by an executive officer or managing principal certifying to the effect that the conditions set forth in Section 1.1(e)(i) have been satisfied. 

Section 1.2    Interpretation. When a reference is made in this Agreement to
“Recitals,” “Articles,” “Sections,” “Schedules” such reference shall be to a Recital, Article or Section of, or Schedule to, this Agreement, unless otherwise indicated. The terms defined in the singular have a
comparable meaning when used in the plural, and vice versa. References to “herein,” “hereof,” “hereunder” and the like refer to this Agreement as a whole and not to any particular section or provision, unless the
context requires otherwise. The headings contained in this Agreement are for reference purposes only and are not part of this Agreement. Whenever the words “include,” “includes” or “including” are used in this
Agreement, they shall be deemed followed by the words “without limitation.” No rule of construction against the draftsperson shall be applied in connection with the interpretation or enforcement of this Agreement, as this Agreement is the
product of negotiation between sophisticated parties advised by counsel. Except as expressly stated in this Agreement, all references to any statute, rule or regulation are to the statute, rule or regulation as amended, modified, supplemented or
replaced from time to time (and, in the case of statutes, include any rules and regulations promulgated under the statute) and to any section of any statute, rule or regulation include any successor to the section. References to a “business
day” shall mean any day except Saturday, Sunday and any day on which banking institutions in the State of Washington generally are authorized or required by law or other governmental actions to close. 

ARTICLE II 
 NON-VOTING EXCHANGE 
 Section 2.1    Non-Voting Exchange. On the terms and subject to the conditions set forth in this Agreement, upon the Closing (i) the Company agrees to issue to the Investor, in exchange for 261,444 Non-Voting Shares, 261,444 Exchange Shares, and (ii) the Investor agrees to deliver to the Company certificate(s) or book-entry shares representing the Non-Voting Shares
in exchange for such number of Exchange Shares. 
 Section 2.2    Exchange
Documentation. Settlement of the Non-Voting Exchange will take place on the Closing Date, at which time the Investor will cause delivery of the Non-Voting Shares
to the Company or its designated agent and the Company will cause delivery of the Exchange Shares to the Investor. 

Section 2.3    Securities Act Exemption. The
Non-Voting Exchange is being effected pursuant to an exemption from registration under the Securities Act of 1933 (as amended, the “Securities Act”), including but not limited to
Section 3(a)(9) thereof. 

  
 3 

 ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

The Company represents and warrants to the Investor as of the date hereof and as of the Closing Date: 

Section 3.1    Existence and Power. 

(a)    Organization, Authority and Significant Subsidiaries. The Company is duly organized, validly existing and in
good standing under the laws of the State of Washington and has all necessary power and authority to own, operate and lease its properties and to carry on its business in all material respects as it is being currently conducted, and except as has
not, individually or in the aggregate, had and would not reasonably be expected to have a Company Material Adverse Effect (as defined below) has been duly qualified as a foreign corporation for the transaction of business and is in good standing
under the laws of each other jurisdiction in which it owns or leases properties or conducts any business so as to require such qualification; each subsidiary of the Company that is a “significant subsidiary” within the meaning of Rule 1-02(w) of Regulation S-X under the Securities Act, including, without limitation, Coastal Community Bank, has been duly organized and is validly existing in good standing
under the laws of its jurisdiction of organization. The articles of incorporation and bylaws of the Company filed with the Securities and Exchange Commission (the “SEC”) are true, complete and correct copies of such documents as in
full force and effect as of the date hereof. 
 (b)    Capitalization. The outstanding capital stock of the
Company (including securities convertible into, or exercisable or exchangeable for, capital stock of the Company) as of September 1, 2018, is set forth on Schedule A and the only changes therein since such date have been de
minimis exercises of options to purchase Voting Common Stock. The outstanding shares of capital stock of the Company have been duly authorized and are validly issued and outstanding, fully paid and
non-assessable. 
 Section 3.2    Authorization and
Enforceability. 
 (a)    The Company has the corporate power and authority to execute and deliver this Agreement
and to carry out its obligations hereunder, which includes the issuance of the Exchange Shares. 
 (b)    The execution,
delivery and performance by the Company of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of the Company, and no further approval or authorization
is required on the part of the Company. Assuming due authorization, execution and delivery by Investor, this Agreement is a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors’ rights and remedies generally, and to general principles of equity, including principles of commercial reasonableness, good faith and fair
dealing (regardless of whether enforcement is sought in a proceeding at law or in equity) (the “Bankruptcy Exceptions”). 

Section 3.3    Exchange Shares. The Exchange Shares have been duly and validly
authorized by all necessary corporate action, and, when issued and delivered pursuant to this Agreement, such Exchange Shares will be duly and validly issued and fully paid and non-assessable free and clear of
any liens or encumbrances, will not be issued in violation of any preemptive rights, and will not subject the holder thereof to personal liability. 

  
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Section 3.4    Non-Contravention. 

(a)    The execution, delivery and performance by the Company of this Agreement and the consummation of the transactions
contemplated hereby, and compliance by the Company with the provisions hereof, will not (i) violate, conflict with, or result in a breach of any provision of, or constitute a default (or an event which, with notice or lapse of time or both,
would constitute a default) under, or result in the termination of, or accelerate the performance required by, or result in a right of termination or acceleration of, or result in the creation of, any lien, security interest, charge or encumbrance
upon any of the properties or assets of the Company or any Company subsidiary under any of the terms, conditions or provisions of (A) its organizational documents or (B) any note, bond, mortgage, indenture, deed of trust, license, lease,
agreement or other instrument or obligation to which the Company or any Company subsidiary is a party or by which it or any Company subsidiary may be bound, or to which the Company or any Company subsidiary or any of the properties or assets of the
Company or any Company subsidiary may be subject, or (ii) subject to compliance with the statutes and regulations referred to in the next paragraph, violate any statute, rule or regulation or any judgment, ruling, order, writ, injunction or
decree applicable to the Company or any Company subsidiary or any of their respective properties or assets except, in the case of clauses (i)(B) and (ii), for those occurrences that, individually or in the aggregate, have not had and would not
reasonably be expected to have a Company Material Adverse Effect. 
 (b)    Other than the filing of any current report
on Form 8-K required to be filed with the SEC, such filings and approvals as are required to be made or obtained under any state “blue sky” laws, and such consents and approvals that have been made
or obtained, no notice to, filing with or review by, or authorization, consent or approval of, any Governmental Entity is required to be made or obtained by the Company in connection with the consummation by the Company of the Non-Voting Exchange except for any such notices, filings, reviews, authorizations, consents and approvals the failure of which to make or obtain would not, individually or in the aggregate, reasonably be expected to
have a Company Material Adverse Effect. 
 Section 3.5    Offering of
Securities. Neither the Company nor any person acting on its behalf has taken any action (including any offering of any securities of the Company under circumstances which would require the integration of such offering with the offering of
the Exchange Shares under the Securities Act and the rules and regulations of the SEC promulgated thereunder), which would reasonably be expected to subject the offering, issuance or sale of the Exchange Shares to the Investor pursuant to this
Agreement to the registration requirements of the Securities Act. 
 ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF INVESTOR 

The Investor represents and warrants to the Company as of the date hereof and as of the Closing Date: 

Section 4.1    Organization; Authority. Investor is an entity, duly organized,
validly existing and in good standing under the laws of the jurisdiction of its organization with the requisite 

  
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power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder. The execution, delivery and performance
by Investor of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary action on the part of Investor, and no further approval or authorization is required on the part of Investor. This
Agreement has been duly and validly executed and delivered by Investor. Assuming due authorization, execution and delivery by Company, this Agreement constitutes the legal, valid and binding obligation of Investor, enforceable against Investor in
accordance with its terms and conditions, except as enforceability may be limited by the Bankruptcy Exceptions. 

Section 4.2    Non-Contravention. The
execution, delivery and performance by the Investor of this Agreement and the consummation of the transactions contemplated hereby, and compliance by the Investor with the provisions hereof, will not (i) violate, conflict with, or result in a
breach of any provision of, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or result in the termination of, or accelerate the performance required by, or result in a right of
termination or acceleration of, or result in the creation of, any lien, security interest, charge or encumbrance upon any of the properties or assets of the Investor under any of the terms, conditions or provisions of (A) its organizational
documents or (B) any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or other instrument or obligation to which the Investor is a party or by which it may be bound, or to which the Investor or any of the properties or
assets of the Investor may be subject, or (ii) violate any statute, rule or regulation or any judgment, ruling, order, writ, injunction or decree applicable to the Investor or any of its properties or assets except, in the case of clauses
(i)(B) and (ii), for those occurrences that, individually or in the aggregate, have not had and would not reasonably be expected to have a material adverse effect on the ability of the Investor to consummate the transactions contemplated by this
Agreement. 
 ARTICLE V 

COVENANTS 

Section 5.1    Commercially Reasonable Efforts. Subject to the terms and
conditions of this Agreement, each of the parties will use its commercially reasonable efforts in good faith to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper or desirable, or advisable under
applicable laws, so as to permit consummation of the Non-Voting Exchange, as promptly as practicable and otherwise to enable consummation of the transactions contemplated hereby and shall use commercially
reasonable efforts to cooperate with the other party to that end. 

Section 5.2    Exchange Listing. On or prior to the Closing, the Company shall, at
its expense, cause the Exchange Shares to be listed on the NASDAQ, subject to official notice of issuance, if required. 

Section 5.3    Certain Notifications Until Closing. From the date hereof until the
Closing, each party shall promptly notify the other party of (a) any fact, event or circumstance of which it is aware and which would reasonably be likely to cause any representation or warranty of such party contained in this Agreement to be
untrue or inaccurate in any material respect or to cause 

  
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any covenant or agreement of such party contained in this Agreement not to be complied with or satisfied in any material respect, (b) any action or proceeding pending or, to the knowledge of
such party, threatened against such party that questions or might question the validity of this Agreement or seeks to enjoin or otherwise restrain the transactions contemplated hereby, and, (c) with respect to the Company, any fact,
circumstance, event, change, occurrence, condition or development of which the Company is aware and which, individually or in the aggregate, has had or would reasonably be expected to have a Company Material Adverse Effect; provided, however, that
delivery of any notice pursuant to this Section 5.4 shall not limit or affect any rights of or remedies available to such party; provided, further, that, with respect to subsection (c) a failure to comply with this Section 5.4 shall
not constitute a breach of this Agreement or the failure of any condition set forth in Section 1.1 to be satisfied unless the underlying Company Material Adverse Effect, action, proceeding or material breach would independently result in the
failure of a condition set forth in Section 1.1 to be satisfied. 
 ARTICLE VI 

ADDITIONAL AGREEMENTS 

Section 6.1    Unregistered Exchange Shares. The Investor acknowledges that the
Exchange Shares have not been registered under the Securities Act or under any state securities laws. The Investor is acquiring the Exchange Shares pursuant to an exemption from registration under the Securities Act, including but not limited to
Section 3(a)(9) thereof. 
 Section 6.2    No Legends. The Company and the
Investor agree that the Exchange Shares shall be issued in book-entry form without any restrictive legends. 

Section 6.3    Legal Fee Reimbursement. As reimbursement for the Company’s
legal fees incurred in connection with this Agreement and the transactions contemplated hereby, the Investor agrees to pay to Kilpatrick Townsend & Stockton LLP (“Kilpatrick”) the lesser of (i) the amount of Kilpatrick’s
reasonable and documented legal fees for services rendered by Kilpatrick to the Company in connection with this Agreement and the transactions contemplated hereby and (ii) $5,000. The Investor shall make such payment within a reasonable time
following receipt of an invoice from Kilpatrick documenting the amount of such fees (but in any event within sixty (60) days following receipt of such invoice). 

ARTICLE VII 

MISCELLANEOUS 

Section 7.1    Termination. This Agreement may be terminated at any time
prior to the Closing: 
 (a)    by either the Investor or the Company if the Closing shall not have occurred by
October 31, 2018; provided, however, that in the event the Closing has not occurred by such date, the parties will consult in good faith to determine whether to extend the term of this Agreement, it being understood that the parties shall be
required to consult only until the fifth (5th) day after such date and not be under any obligation to extend the term of this Agreement thereafter;

  
 7 

 
provided, further, that the right to terminate this Agreement under this Section 7.1(a) shall not be available to any party whose breach of any representation or warranty or failure to
perform any obligation under this Agreement shall have caused or resulted in the failure of the Closing to occur on or prior to such date; 

(b)    by either the Investor or the Company in the event that any Governmental Entity shall have issued an order, decree
or ruling or taken any other action restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement (or if any such Governmental Entity informs the Investor or the Company that it intends to disapprove any notice or
application required to be filed by such party in order to consummate the transactions contemplated by this Agreement) and such order, decree, ruling or other action shall have become final and non-appealable;
or 
 (c)    by the mutual written consent of the Investor and the Company. 

In the event of termination of this Agreement as provided in this Section 7.1, this Agreement shall forthwith become void and there shall be no liability
on the part of either party hereto except that nothing herein shall relieve either party from liability for any willful breach of this Agreement. 

Section 7.2    Survival of Representations and Warranties. The representations and
warranties of the Company and the Investor made herein or in any certificates delivered in connection with the Closing shall survive the Closing without limitation. 

Section 7.3    Amendment. No amendment of any provision of this Agreement will be
effective unless made in writing and signed by an officer or a duly authorized representative of each of the Company and the Investor. No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or further exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative of any rights or remedies provided by law. 

Section 7.4    Waiver of Conditions. The conditions to each party’s
obligation to consummate the Non-Voting Exchange are for the sole benefit of such party and may be waived by such party in whole or in part to the extent permitted by applicable law. No waiver will be
effective unless it is in a writing signed by a duly authorized officer of the waiving party that makes express reference to the provision or provisions subject to such waiver. 

Section 7.5    Governing Law; Submission to Jurisdiction, etc. This Agreement and
any claim, controversy or dispute arising under or related to this Agreement, the relationship of the parties, and/or the interpretation and enforcement of the rights and duties of the parties shall be enforced, governed, and construed in all
respects (whether in contract or in tort) in accordance with the federal law of the United States if and to the extent such law is applicable, and otherwise in accordance with the laws of the State of Washington applicable to contracts made and to
be performed entirely within such State. Each of the parties hereto agrees (a) to submit to the exclusive jurisdiction and venue of the United States District Court for the Western District of Washington for any and all civil actions, suits or
proceedings arising out of or relating to this Agreement or the Non-Voting Exchange contemplated hereby and (b) that notice may be served upon (i) the Company at the address and in the manner set
forth for notices to the Company in Section 7.6 and (ii) the Investor at the address and in the manner set forth for notices to the Company in Section 7.6, but otherwise in accordance with federal law. 

  
 8 

 Section 7.6    Notices. Any
notice, request, instruction or other document to be given hereunder by any party to the other will be in writing and will be deemed to have been duly given (a) on the date of delivery if delivered personally, or by electronic mail or
facsimile, upon confirmation of receipt, or (b) on the first business day following the date of dispatch if delivered by a recognized next day courier service. All notices hereunder shall be delivered as set forth below or pursuant to such
other instructions as may be designated in writing by the party to receive such notice. 
 If to the Company: 

Coastal Financial Corporation 

5415 Evergreen Way 
 Everett,
Washington 98203 
 Attention: Eric Sprink, President and CEO 

Electronic Mail: esprink@coastalbank.com 

With a copy to: 
 Kilpatrick
Townsend & Stockton LLP 
 607 14th Street NW, Suite 1000 

Washington, DC 20005 

Attention: Aaron M. Kaslow 

Electronic Mail: akaslow@kilpatricktownsend.com 

If to the Investor: 
 CJA
Private Equity Financial Restructuring Master Fund I LP 
 c/o Gapstow Capital Partners 

654 Madison Avenue, Suite 601 

New York, New York 10065 

Attention: Christopher J. Acito, Member of the General Partner 

Facsimile: (646) 735-3494 

With a copy to: 
 Wiggin and
Dana LLP 
 400 Atlantic Street 

Stamford, Connecticut 06901 

Attention: Mark S. Kaduboski 

Electronic Mail: mkaduboski@wiggin.com 

  
 9 

 Section 7.7    Definitions. 

(a)    When a reference is made in this Agreement to a subsidiary of a person, the term “subsidiary” means
any corporation, partnership, joint venture, limited liability company or other entity (x) of which such person or a subsidiary of such person is a general partner or (y) of which a majority of the voting securities or other voting
interests, or a majority of the securities or other interests of which having by their terms ordinary voting power to elect a majority of the board of directors or persons performing similar functions with respect to such entity, is directly or
indirectly owned by such person and/or one or more subsidiaries thereof. 
 (b)    The term “Company Material
Adverse Effect” means any event, circumstance, change or occurrence that has had or would reasonably be expected to have a material adverse effect on the (1) ability of the Company to consummate the
Non-Voting Exchange and the other transactions contemplated by this Agreement and to perform its obligations hereunder on a timely basis, and (2) business, results of operation, assets, liabilities or
condition (financial or otherwise) of the Company and its consolidated subsidiaries taken as a whole; provided, however, that clause (2) above shall not be deemed to include: (i) the effects of (A) changes after the date hereof in
general business, economic or market conditions (including changes generally in prevailing interest rates, credit availability and liquidity, currency exchange rates and price levels or trading volumes in the United States or foreign securities or
credit markets), or any outbreak or escalation of hostilities, declared or undeclared acts of war or terrorism, in each case generally affecting the industries or geographic areas in which the Company and its subsidiaries operate, (B) changes
or proposed changes after the date hereof in generally accepted accounting principles or regulatory accounting requirements, or authoritative interpretations thereof, (C) changes or proposed changes after the date hereof in securities, banking
and other laws of general applicability or related policies or interpretations of Governmental Entities (in the case of each of these clauses (A), (B) and (C), other than changes or occurrences to the extent that such changes or occurrences have or
would reasonably be expected to have a disproportionate adverse effect on the Company and its consolidated subsidiaries taken as a whole relative to comparable U.S. banking or financial services organizations), (D) changes in the market price or
trading volume of the Voting Common Stock or any other equity, equity-related or debt securities of the Company or its consolidated subsidiaries (it being understood and agreed that the exception set forth in this clause (D) does not apply to
the underlying reason giving rise to or contributing to any such change), or (E) actions or omissions of the Company or any Company subsidiary expressly required by the terms of the Non-Voting Exchange.

 Section 7.8    Assignment. Neither this Agreement nor any right, remedy,
obligation nor liability arising hereunder or by reason hereof shall be assignable by any party hereto without the prior written consent of each other party, and any attempt to assign any right, remedy, obligation or liability hereunder without such
consent shall be void. 
 Section 7.9    Severability. If any provision of this
Agreement, or the application thereof to any person or circumstance, is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to persons or
circumstances other than those as to which it has been held invalid or unenforceable, will remain in full force and effect and shall in no way be affected, impaired or invalidated thereby, so long as the economic or legal substance of the
transactions contemplated hereby is not affected 

  
 10 

 
in any manner materially adverse to any party. Upon such determination, the parties shall negotiate in good faith in an effort to agree upon a suitable and equitable substitute provision to
effect the original intent of the parties. 
 Section 7.10    No Third-Party
Beneficiaries. Nothing contained in this Agreement, expressed or implied, is intended to confer upon any person or entity other than the Company and the Investor any benefit, right or remedies. 

Section 7.11    Entire Agreement, etc. This Agreement (including the Schedules
hereto) constitutes the entire agreement, and supersedes all other prior agreements, understandings, representations and warranties, both written and oral, between the parties, with respect to the subject matter hereof. For the avoidance of doubt,
the Investment Agreement shall remain in full force and effect, but shall be deemed amended hereby, and any provisions in this Agreement that supplement, duplicate or contradict any provision of the Investment Agreement shall be deemed to supersede
the corresponding provision of the Investment Agreement from and after the effective date hereof. 

Section 7.12    Counterparts and Facsimile. For the convenience of the parties
hereto, this Agreement may be executed in any number of separate counterparts, each such counterpart being deemed to be an original instrument, and all such counterparts will together constitute the same agreement. Executed signature pages to this
Agreement may be delivered by electronic transmission or facsimile and such electronic transmissions and facsimiles will be deemed as sufficient as if actual signature pages had been delivered. 

Section 7.13    Specific Performance. The parties agree that irreparable damage
would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms. It is accordingly agreed that the parties shall be entitled (without the necessity of posting a bond) to specific
performance of the terms hereof, this being in addition to any other remedies to which they are entitled at law or equity. 

[Remainder of Page Intentionally Left Blank] 

  
 11 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective authorized officers as of the day and year first above written. 
  

			
	Coastal Financial Corporation
		
	By:	 	 /s/ Eric Sprink

	Name:	 	Eric Sprink
	Title:	 	President and Chief Executive Officer
	
	CJA Private Equity Financial Restructuring Master Fund I LP
		
	By:	 	 /s/ Christopher J. Acito

	Name:	 	Christopher J. Acito
	Title:	 	Member of the general partner

 [Signature Page to Exchange Agreement] 

  
 12 

 Schedule A – Capitalization as of September 1, 2018 

 

					
	 	  	Outstanding	 
	 Voting Common Stock
	  	 	11,521,849	 
	 Class B Nonvoting Common Stock
	  	 	100,000	 
	 Class C Nonvoting Common Stock
	  	 	261,444	 
	 Options to purchase Voting Common Stock
	  	 	699,270	 

  
 Sch. A-1

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