Document:

EX-10.6

 Exhibit 10.6 

COASTAL FINANCIAL CORPORATION 

COASTAL COMMUNITY BANK 

AMENDED AND RESTATED CHANGE IN CONTROL SEVERANCE AGREEMENT 

THIS AMENDED AND RESTATED CHANGE IN CONTROL SEVERANCE AGREEMENT (“Agreement”) is entered into by and between COASTAL FINANCIAL CORPORATION, a
Washington corporation (“Company”), its wholly-owned subsidiary, COASTAL COMMUNITY BANK, a Washington state-chartered bank (“Bank”), and JOEL EDWARDS (“Executive”), as of June 19, 2018.

 The Company, the Bank, and the Executive agree as follows: 
  

	1.	Commitment of Executive. In the event that any person extends any proposal or offer that is intended to or may result in a Change in Control (defined below), Executive shall, at the Company’s or the
Bank’s request, assist the Company and/or the Bank in evaluating such proposal or offer. Further, subject to the additional terms and conditions of this Agreement, in order to receive the Change in Control Payment (defined below), Executive
cannot resign from the Company or the Bank during any period from the receipt of a specific Change in Control proposal up to the consummation of the transaction contemplated by such proposal. 

 

	2.	Change in Control. For purposes of this Agreement, “Change in Control” means a change in control as defined in Section 409A of the Internal Revenue Code and the rules, regulations and
guidance promulgated thereunder and issued by the Department of the Treasury, including the occurrence of any one or more of the following events: 

  

	 	a.	Merger. The Company merges into or consolidates with another entity, or merges another entity into the Company and, as a result, less than a majority of the combined voting power of the resulting entity or, if
applicable, the ultimate parent thereof, immediately after the merger or consolidation is held by persons who were stockholders of the Company immediately before the merger or consolidation; 

 

	 	b.	Acquisition of Significant Share Ownership. The acquisition by any person (within the meaning of Section 13(d) of the Securities Exchange Act, as amended), other any employee benefit plan or trust maintained
by the Company, of fifty percent (50%) or more of the combined voting power entitled to vote generally in the election of directors of the Company’s then outstanding voting securities; 

 

	 	c.	Change in Board Composition. During any period of two consecutive years, individuals who constitute the Company’s Board of Directors at the beginning of the two-year
period cease for any reason to constitute at least a majority of the Company’s Board of Directors; provided, however, that for purposes of this clause (c), each director who is first elected by the Board of Directors (or first nominated by the
Board of Directors for election by the stockholders) by a vote of at least two-thirds (2/3) of the directors who were directors at the beginning of the two-year period
shall be deemed to have also been a director at the beginning of such period; or 

  
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	 	d.	Sale of Assets. A sale, transfer, or other disposition of all or substantially all of the assets of the Company which is consummated and immediately following which the persons who were the owners of the Company
immediately prior to such sale, transfer, or disposition, do not own, directly or indirectly and in substantially the same proportions as their ownership immediately prior to the sale, transfer, or disposition, more than fifty percent (50%) of the
combined voting power entitled to vote generally in the election of directors of (i) the entity or entities to which such assets or ownership interest are sold or transferred or (ii) an entity that, directly or indirectly, owns more than
fifty percent (50%) of the combined voting power entitled to vote generally in the election of directors of the entities described in clause (i). 

  

	3.	Payment Obligations. 

  

	 	3.1	Termination Following Change in Control. If, consistent with Section 1, Executive remains employed with the Company and the Bank through the closing of a Change in Control and concurrent with or within
twenty-four (24) months after a Change in Control either the Company and the Bank terminate the Executive’s employment for reasons other than for Cause, or the Executive terminates his employment with the Company and the Bank for Good
Reason, then: 

  

	 	a.	within ten (10) days following the effective date of the Executive’s termination of employment, the Bank shall pay to the Executive a single lump sum cash payment (“Change in Control Payment”)
in an amount equal to two (2) times the sum of: (i) the Executive’s base salary as then in effect, (ii) the cash bonus earned by the Executive for the year prior to the year in which the Change in Control occurs, and
(iii) the grant date fair value of any equity incentive award received by the Executive in the year prior to the year in which the Change in Control occurs; and 

 

	 	b.	the Executive will fully vest in all unvested stock options and/or other equity incentive compensation awards previously granted to the Executive that would have vested based solely on the continued employment of the
Executive. 

  

	 	3.2	Termination Prior to Change in Control. If (i) the Company or the Bank terminates Executive’s employment without Cause before a Change in Control, and (ii) within ninety (90) days thereafter
the Company and/or the Bank enters into an agreement for a Change in Control or any party announces or is required by law to announce a prospective Change in Control, which Change in Control is consummated, then within ten (10) days following
the consummation of such Change in Control the Bank shall pay to the Executive the Change in Control Payment in a single lump sum. 

  
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	4.	MANDATORY REDUCTION OF PAYMENTS IN CERTAIN EVENTS. 

  

	 	4.1	Notwithstanding anything in this Agreement to the contrary, in the event it shall be determined that any payment or distribution by the Company or the Bank to or for the benefit of Executive (whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or otherwise) (such benefits, payments or distributions are hereinafter referred to as “Payments”) would, if paid, be subject to the excise tax imposed by
Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), (the “Excise Tax”), then, prior to the making of any Payments to the Executive, a calculation shall be made comparing (i) the net
after-tax benefit to Executive of the Payments after payment by Executive of the Excise Tax, to (ii) the net after-tax benefit to Executive if the Payments had been
limited to the extent necessary to avoid being subject to the Excise Tax. If the amount calculated under (i) above is less than the amount calculated under (ii) above, then the Payments shall be limited to the extent necessary to avoid
being subject to the Excise Tax (the “Reduced Amount”). The reduction of the Payments due hereunder, if applicable, shall be made by first reducing cash Payments against the latest amounts to be paid and then, to the extent
necessary, reducing those Payments having the next highest ratio of Parachute Value to actual present value of such Payments as of the date of the Change in Control, reducing the latest amounts to be paid first, as determined by a nationally
recognized accounting firm or compensation consulting firm mutually acceptable to the Company, the Bank and Executive (the “Determination Firm”). For purposes of this Section 4.1, present value shall be determined in good faith
in accordance with Section 280G(d)(4) of the Code. For purposes of this Section 4, the “Parachute Value” of a Payment means the present value as of the date of the Change in Control of the portion of such Payment that
constitutes a “parachute payment” under Section 280G(b)(2) of the Code, as determined by the Determination Firm for purposes of determining whether and to what extent the Excise Tax will apply to such Payment. 

 

	 	4.2	 All determinations required to be made under this Section 4, including whether an Excise Tax would otherwise
be imposed, whether the Payments shall be reduced, the amount of the Reduced Amount, and the assumptions to be utilized in arriving at such determinations, shall be made in writing in good faith by the Determination Firm which shall provide detailed
supporting calculations to the Company, the Bank and the Executive within fifteen (15) business days after the receipt of notice from the Executive that a Payment is due to be made, or such earlier time as is requested by the Company or the
Bank. All fees and expenses of the Determination Firm shall be borne solely by the Company or the Bank. Any determination by the Determination Firm shall be binding upon the Company, the Bank and the Executive. As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the initial determination by the Determination Firm hereunder, it is possible that Payments which the Executive 

  
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was entitled to, but did not receive pursuant to Section 4.1, could have been made without the imposition of the Excise Tax (“Underpayment”), consistent with the
calculations required to be made hereunder. In such event, the Determination Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company or the Bank to or for the benefit of
the Executive but no later than March 15 of the year after the year in which the Underpayment is determined to exist, which is when the legally binding right to such Underpayment arises. 

 

	5.	Termination of Agreement. This Agreement terminates immediately if, at any time before the Change in Control transaction closes, (i) the Company or the Bank terminates Executive’s employment for Cause,
(ii) Executive resigns from the Company or the Bank without Good Reason, (iii) Executive dies, or (iv) Executive is unable to perform his duties and obligations to the Company or the Bank for a period of ninety (90) consecutive
days as a result of a physical or mental disability, unless with reasonable accommodation Executive could continue to perform such duties and making these accommodations would not pose an undue hardship on the Company or the Bank. If no Change in
Control has occurred, this Agreement will terminate ninety (90) days after Executive’s employment is terminated by the Company or the Bank without Cause or by Executive for Good Reason, unless during such
ninety-day period, the Company or the Bank enters into an agreement for a Change in Control, or a Change in Control is announced or required by law to be announced, in which case this Agreement will terminate
upon payment of the Change in Control Payment pursuant to Section 3.2 or the abandonment of such Change in Control. 

  

	6.	Definitions. 

  

	 	6.1	Cause. “Cause” means any one of the following: 

  

	 	a.	Removal or discharge of Executive pursuant to order of any federal banking authority; 

  

	 	b.	Willful misfeasance or gross negligence in the performance of Executive’s duties, including without limitation the concealment from or knowing failure to disclose to, any federal banking regulatory authority or the
Board of Directors any material matters affecting the viability of the Company or the Bank; 

  

	 	c.	Indictment (or equivalent under applicable law) with respect to, the conviction of, or a plea of guilty or no contest to, a felony, or any other crime involving moral turpitude, fraud, theft, embezzlement, or
dishonesty, including Executive’s incarceration, with the exclusion of traffic violations; or 

  

	 	d.	Misconduct, dishonesty or illegal conduct, including, without limitation, a violation of any employment policy or code of conduct of the Company as may be in effect from time to time, if it causes material reputational
or financial harm or is otherwise injurious to the Company or to any entity in control of, controlled by or under common control with the Company. 

  
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	 	6.2	Good Reason. “Good Reason” means only any one or more of the following: 

  

	 	a.	Material reduction of Executive’s base salary or elimination of any significant compensation or benefit plan benefiting Executive, unless the reduction or elimination is generally applicable to substantially all
similarly situated employees (or similarly situated employees of a successor or controlling entity of the Company or the Bank) formerly benefited; 

  

	 	b.	The assignment to Executive without his consent of any authority or duties materially inconsistent with Executive’s position as of the date of this Agreement; or 

 

	 	c.	A relocation or transfer of Executive’s principal place of employment that would require Executive to commute on a regular basis more than thirty (30) miles each way from his present place of employment.

 The Company, the Bank and Executive agree that “Good Reason“ shall not exist unless and until Executive provides
the Company and the Bank with written notice of the acts alleged to constitute Good Reason within ninety (90) days of Executive’s knowledge of the occurrence of such event, and the Bank and the Company fail to cure such acts within thirty
(30) days of receipt of such notice, if curable. Executive must terminate his/her employment within sixty (60) days following the expiration of such cure period for the termination to be on account of Good Reason. 

 

	7.	Arbitration. At either the Company’s, the Bank’s, or Executive’s request, the parties must submit any dispute, controversy, or claim arising out of or in connection with, or relating to, this
Agreement or any breach or alleged breach of this Agreement, to arbitration under the American Arbitration Association’s rules then in effect (or under any other form of arbitration mutually acceptable to the parties). A single arbitrator
agreed on by the parties will conduct the arbitration. If the parties cannot agree on a single arbitrator, each party must select one arbitrator and those two arbitrators will select a third arbitrator. This third arbitrator will hear the dispute.
The arbitrator’s decision is final (except as otherwise specifically provided by law) and binds the parties, and any party may request any court having jurisdiction to enter a judgment and to enforce the arbitrator’s decision. The
arbitrator will provide the parties with a written decision naming the substantially prevailing party in the action. In any arbitration, if the Executive is the prevailing party, the Company and Bank shall pay all reasonable attorney’s fees of
the Executive, as well as the expenses and administrative fees related to the arbitration. If the Company and Bank are the prevailing party at the arbitration, each party shall pay its own attorney’s fees and expenses and its share of the
administrative fees and expenses related to the arbitration. All proceedings will be held at a place designated by the arbitrator in Snohomish County, Washington. The arbitrator, in rendering a decision as to any state law claims, will apply
Washington law. 

  
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	8.	Withholding. All payments required to be made by the Company or the Bank hereunder to Executive shall be subject to the withholding of such amounts, if any, relating to tax or other payroll deductions as the
Company or the Bank may reasonably determine should be withheld pursuant to any applicable law or regulation. 

  

	9.	Other Compensation and Terms of Employment. This Agreement is not an employment agreement. Accordingly, except with respect to the Change in Control Payment, this Agreement shall have no effect on the
determination of any compensation payable by the Company or the Bank to Executive, or upon any of the other terms of Executive’s employment with the Company or the Bank. The specific arrangements referred to herein are not intended to exclude
any other benefits which may be available to Executive upon a termination of employment with the Company or the Bank pursuant to employee benefit plans of the Company or the Bank or otherwise. 

 

	10.	Miscellaneous Provisions. 

  

	 	10.1	Entire Agreement. This Agreement constitutes the entire understanding and agreement between the parties concerning its subject matter and supersedes all prior agreements, correspondence, representations, or
understandings between the parties relating to its subject matter, including the Change in Control Severance Agreement dated as of January 1, 2016 (the “Prior Agreement”), by and between the Company, the Bank and the Executive.

  

	 	10.2	Effective Date. This Agreement shall be effective as of the date on which the registration statement on Form S-1 filed by the Company on June 19, 2018, with the
Securities and Exchange Commission (the “Registration Statement”) becomes effective. If the Registration Statement for any reason does not become effective, this Agreement shall be null and void and the Prior Agreement will continue
on the terms and conditions set forth in the Prior Agreement. 

  

	 	10.3	Binding Effect. This Agreement will bind and inure to the benefit of the Company’s, the Bank’s, and Executive’s heirs, legal representatives, successors, and assigns. 

 

	 	10.4	Waiver. Any waiver by a party of its rights under this Agreement must be written and signed by the party waiving its rights. A party’s waiver of the other party’s breach of any provision of this
Agreement will not operate as a waiver of any other breach by the breaching party. 

  

	 	10.5	Amendment. This Agreement may be modified only through a written instrument signed by all parties. 

  

	 	10.6	Severability. The provisions of this Agreement are severable. The invalidity of any provision will not affect the validity of other provisions of this Agreement. 

 

	 	10.7	Counsel Review. Executive acknowledges that he has had the opportunity to consult with independent counsel with respect to the negotiation, preparation, and execution of this Agreement. 

  
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	 	10.8	Governing Law and Venue. This Agreement will be governed by and construed in accordance with Washington law, except to the extent that federal law may govern certain matters. The parties must bring any legal
proceeding arising out of this Agreement in Snohomish County, Washington. 

  

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

 

	 	10.10	Compliance with Section 409A of the Internal Revenue Code. 

  

	 	(a)	General. It is the Company’s and the Bank’s intent that the payments and benefits provided under this Agreement shall be exempt from the application of, or otherwise comply with, the requirements of
Section 409A of the Internal Revenue Code (“Section 409A”). 

 Specifically, any
taxable benefits or payments provided under this Agreement are intended to be separate payments that qualify for the “short-term deferral” exception to Section 409A to the maximum extent possible, and to the extent they do not so
qualify, are intended to qualify for the involuntary separation pay exceptions to the maximum extent possible. This Agreement shall be construed, administered, and governed in a manner that effects such intent, and the Bank shall not take any action
that would be inconsistent with such intent. Without limiting the foregoing, the payments and benefits provided under this Agreement may not be deferred, accelerated, extended, paid out or modified in a manner that would result in the imposition of
an additional tax under Section 409A upon the Executive. 
 If neither the “short-term deferral” nor the involuntary
separation pay exceptions to Section 409A described above applies to a benefit, payment, or reimbursement under this Agreement, then notwithstanding any provision in this Agreement to the contrary, it is intended that any payment or benefit
which is provided pursuant to, or in connection with, this Agreement shall be provided and paid in a manner, and at such time and in such form as complies with the applicable requirements of Section 409A of the Code to avoid the unfavorable tax
consequences provided therein for non-compliance. Any reference in this Agreement to “involuntary termination,” “involuntarily terminate,” “termination of employment” or similar
terms or phrases shall be interpreted as a “separation from service” within the meaning of Section 409A. For purposes of Section 409A, any installment payment provided under this Agreement shall be treated as a separate payment.
Any provision in this Agreement that is determined to violate the requirements of Section 409A shall be void and without effect. To the extent permitted under Section 409A, the parties shall reform the provision, provided such reformation
shall not subject the Executive to additional tax or interest and the 

  
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Executive shall not be required to incur any additional compensation as a result of the reformation. In addition, any provision that is required to appear in this Agreement that is not expressly
set forth shall be deemed to be set forth herein, and this Agreement shall be administered in all respects as if such provision were expressly set forth. References in this Agreement to Section 409A of the Internal Revenue Code include rules,
regulations, and guidance of general application issued by the Department of the Treasury under Internal Revenue Code Section 409A. 
  

	 	(b)	Delay of Payments. If the Executive is deemed to be a “specified employee” within the meaning of Section 409A, then payment of his benefits under this Agreement that is payable because the
Executive’s employment terminates as set forth in the preceding provisions shall be delayed until six (6) months and one day after the date the benefit under such provisions is payable, unless the Executive dies between such date and the
payment date, at which time all such benefits shall then commence. 

  

	11.	Regulatory Provisions. In no event shall the Bank or the Company be obligated to make any payment pursuant to this Agreement that is prohibited by Section 18(k) of the Federal Deposit Insurance Act (codified
at 12 U.S.C. § 1828(k)), 12 C.F.R. Part 359, or any other applicable law. 

 [Remainder of page intentionally left
blank] 

  
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 Effective as of the date first set forth above. 

 

			
	COMPANY:
	
	COASTAL FINANCIAL CORPORATION
		
	By:	 	 /s/ Eric Sprink

	Printed Name: Eric Sprink
	Title:	 	President & CEO
	
	BANK:
	
	COASTAL COMMUNITY BANK
		
	By:	 	 /s/ Eric Sprink

	Printed Name: Eric Sprink
	Title:	 	President & CEO
	
	EXECUTIVE:
	
	 /s/ Joel Edwards

	Joel Edwards

  
 9EX-10.7

 Exhibit 10.7 

COMMERCIAL REAL ESTATE LEASE 

ARTICLE 1 
 BASIC TERMS

 This Article I contains the Basic Terms of this Lease between the Landlord and Tenant named below. Other Articles, Sections and
Paragraphs of the Lease referred to in this Article I explain and define the Basic Terms and are to be read in conjunction with the Basic Terms. 

1.1 Date of Lease. June 4, 2008. 

1.2 Landlord. JMHLS, LLC, a Washington Limited Liability Company, whose address is 9910 Vernon Rd., Lake Stevens, Washington 98258. 

1.3 Tenant. Coastal Community Bank, the address of which is 2817 Colby Avenue, Everett, Washington 98201. 

1.4 Property. The Property is Landlord’s real property located at 10520-19th Ave. SE, Everett, Washington. The Property includes the land, buildings and all other improvements located on a portion .of the property legally described as attached hereto as Exhibit A.

 1.5 Lease Term. Ten (10) years beginning on July 1, 2008 (“Commencement Date”), and ending on June 30,
2018, unless sooner terminated as set forth in this agreement. 
 1.6 Permitted Uses. Banking. 

1.7 Initial Security Deposit. None. 

1.8 Rent and Other Charges Payable by Tenant. 

(a) Base Rent. The basic rent shall be Sixteen Thousand Nine Hundred Thirty-Eight and 21/100 Dollars ($16,938.21) per month for the
first ten (10) years of this Lease. 
 (b) Other Periodic Payments. (i) Real Property Taxes on the entire area described in
Exhibit A; (ii) Utilities/Electrical Charges; (iii) Insurance Premiums; and (iv) Maintenance, Repairs and Alterations. 

ARTICLE 2 
 LEASE TERM

 2.1 Lease of Property For Lease Term. Landlord leases the Property to Tenant and Tenant leases the Property from Landlord for
the Lease Term. The Lease Term is for the period stated in Section 1.5 above and shall begin and end on the dates specified in Section 1.5 above, unless the beginning or end of the Lease Term is changed under any provision of this Lease. The
“Commencement Date” shall be the date specified in Section 1.5 above for the beginning of the Lease Term unless advanced or delayed under any provision of this Lease. 

 2.2 Renewal Provisions. Provided that all of the terms and conditions of this Lease have
been complied with by the Tenant, the Tenant shall have the option to renew this Lease for four (4) additional Terms of five (5) years of each Term. The renewal Terms shall begin upon the expiration of the primary or prior renewal Tenn.
Tenant’s right to extend the Term of this Lease may be exercised only in the event that Tenant is not in default at the time of the exercise of the renewal option and at the time such renewal option commences. The options to renew the Lease
provided for herein shall not be severable from the Lease. Tenant shall exercise a renewal option by delivering to the Landlord a written notice of its election to renew no later than 90 days prior to the expiration date of the primary term or prior
renewal term, as the case may be. All terms, provisions and covenants of this Lease Agreement shall apply to each of the renewal terms, except for the term of the Lease and the minimum rent. The minimum rent commencing with the first renewal year
and each anniversary date for the first two extension (years 15-20 and 20-25) thereafter (hereinafter referred to as the “Adjustment Date”), the monthly rent
shall be increased by the percentage of increase, if any, in the Consumer Price Index--All Urban Consumers, All Items (hereinafter referred to as the “CPI”) as published by the United States
Department of Labor, Bureau of Labor Statistics. The percentage of increase in the CPI will be determined by using the percentage change, as published for the month prior to the month in which the commencement date occurs as compared to that same
month each year thereafter. The monthly rent as adjusted on the Adjustment Date shall be the monthly rent until the next Adjustment Date. Any increase in subsequent years shall be added to the monthly rent as adjusted by the CPI increase on the
previous Adjustment Date. In no event shall the monthly rent be less than the monthly rent for the previous year. If the aforementioned CPI is discontinued, Landlord shall select another similar index which reflects consumer prices (by way of
illustration only, if the Commencement Date occurs in the month of June, then May shall be the base month for the purpose of determining the percentage increase in the CPI as compared with each subsequent May thereafter during the Lease Term). 

Provided, further, the last two (years 20-25 and 25-30)
renewal terms shall have the minimum monthly rent increased, if any, by the parties agreeing to the monthly rent to be charged for the next additional five-year extended term within seventy-five (75) days prior to the expiration date of a prior
renewal term. In the event Landlord and Tenant do not agree in writing within said 15 days after Tenant’s election to exercise the further renewal term, Landlord shall give written notice to Tenant of its appointment of an MAI Real Estate
Appraiser with at least 5 years full-time commercial real estate rental value appraisal experience to appraise and set the fair market monthly rental value. Tenant, within 10 days of the receipt of Landlord’s notice, may elect, by written
notice to Landlord, to appoint an MAI Real Estate Appraiser with the aforesaid qualifications. If Tenant does not, within said 10 day period, provide Landlord with the name of its appraiser, the single appraiser appointed by Landlord shall be the
sole appraiser. If each party shall have so appointed an appraiser, the two appraisers shall meet promptly in an attempt to set a fair market monthly rental for the next extended five year term. If the two appraisers are unable to agree within 30

  
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days after the second appraiser has been appointed, they shall attempt to select a third appraiser meeting the qualifications herein stated. If the two appraisers are unable to agree on a third
appraiser within a 10 day period, either of the parties to the Lease, by giving 10 days notice to the other party, may apply to the then presiding Judge of the Superior Court of Snohomish County for the selection of a third appraiser meeting the
qualifications stated in this paragraph. Each party shall bear  1⁄2 of the cost of the appraisers appointed pursuant to this paragraph. Within 30 days after
the selection of a third appraiser, a majority of the appraisers shall set the fair market monthly rental value for the extended term. If a majority of the appraisers are unable to set the fair market monthly rental value within the stipulated
period of time, the three appraisals shall be added together and their total divided by 3. The resulting quotient shall be the fair market value for the fair market monthly rental value. However, if the low appraisal and the high appraisal is/are 5%
lower and/or higher than the middle appraisal, the low appraisal and/or the high appraisal shall be disregarded. If only one appraisal is disregarded, the remaining two appraisals shall be added together and their total divided by 2. The resulting
quotient shall be the fair market rental value for the extended term. If both the low appraisal and the high appraisal are disregarded as stated in this paragraph, the middle appraisal shall be the fair market value. 

2.3 Holding Over. Tenant shall vacate the Property upon the expiration or earlier termination of this Lease. Tenant shall reimburse
Landlord for and indemnify Landlord against all damages which Landlord incurs from Tenant’s delay in vacating the Property. If Tenant does not vacate the Property upon the expiration or earlier termination of the Lease and Landlord thereafter
accepts rent from Tenant, Tenant’s occupancy of the Property shall he a “month-to-month” tenancy, subject to all of the terms of this Lease applicable to a month-to-month tenancy. 
 ARTICLE 3 

BASE RENT 
 3.1 Time and
Manner of Payment. Upon execution of this Lease, Tenant shall pay Landlord the Base Rent in the amount stated in Paragraph 1.8 (a) above for the first month of the Lease Term. On the first day of the second month of the Lease Term and each month
thereafter, Tenant shall pay Landlord the Base Rent, in advance. The Base Rent shall be payable at Landlord’s address or at such other place as Landlord may designate in writing. PROVIDED, HOWEVER, if the first month of the Lease is less than a
one month period, rent shall be a prorated portion of the monthly installment herein, based on a 30-day month. 

ARTICLE 4 
 OTHER CHARGES
PAYABLE BY TENANT 
 4.1 Additional Rent. All charges payable by Tenant other than Base Rent are called “Additional
Rent”. Unless otherwise agreed to, Tenant shall pay all Additional Rent then due with the next monthly installment of Base Rent. The term “rent” shall mean Base Rent and Additional Rent. 

  
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 4.2 Property Taxes. 

(a) Real Property Taxes. Tenant shall pay when due directly to Snohomish County all real property taxes the leased property during the Lease
Term. Tenant shall provide Landlord with a copy evidencing timely payment. 
 (b) Personal Property Taxes. 

(i) Tenant shall pay all taxes charged against trade fixtures, furnishings, equipment or any other personal property belonging to Tenant.
Tenant shall have personal property taxed separately from the Property. 
 (ii) If any of Tenant’s personal property is taxed with the
Property, Tenant shall pay the taxes for the personal property within fifteen (15) days after Tenant receives a written statement for such personal property taxes. 

(c) Tenant’s Right to Contest Taxes. Tenant may attempt to have the assessed valuation of the Property reduced or may initiate proceedings
to contest the real property taxes. If required by law, Landlord shall join in the proceedings brought by Tenant. However, Tenant shall pay all costs of the proceedings, including any costs or fees incurred by Landlord. Upon the final determination
of any proceeding or contest, Tenant shall immediately pay the real property taxes due, together with all costs, charges, interest and penalties incidental to the proceedings. If Tenant does not pay the real property taxes when due and contests such
taxes, Tenant shall not be in default under this lease for nonpayment of such taxes if Tenant deposits funds with Landlord or opens an interest-bearing account reasonably acceptable to Landlord in the joint names of Landlord and Tenant. The amount
of such deposit shall be sufficient to pay the real property taxes plus a reasonable estimate of the interest, costs, charges and penalties which may accrue if Tenant’s action is unsuccessful, less any applicable tax impounds previously paid by
Tenant to Landlord. The deposit shall be applied to the real property taxes due, as determined at such proceedings. The real property taxes shall be paid under protest from such deposit if such payment under protest is necessary to prevent the
Property from being sold under a “tax sale” or similar enforcement proceeding. 
 4.3 Utilities. Tenant shall pay, directly
to the appropriate supplier, the cost of all natural gas, electricity, sewer service, telephone, water, refuse disposal and other utilities and services supplied to the Property. 

4.4 Insurance Policies. 

(a) Liability Insurance. During the Lease Term, Tenant shall pay for and maintain commercial general liability insurance with broad form
property damage and contractual liability endorsements. This policy shall name Landlord, its property manager (if any), and other parties designated by Landlord as additional insureds using an endorsement form acceptable to Landlord, and shall
insure Tenant’s activities and those of Tenant’s employees, officers, contractors, licensees, agents, servants, employees, guests, invitees or visitors with respect to the Premises against loss, damage or liability for personal

  
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injury or bodily injury (including death) or loss or damage to property with a combined single limit of not less than $1,000,000, and a deductible of not more than $10,000. Tenant’s
insurance will be primary and noncontributory with any liability insurance carried by Landlord. 
 (b) Property and Rental Income
Insurance. During the Lease Term, Tenant shall maintain and pay for policies of insurance covering loss of or damage to the Property in the full amount of its replacement value. Such policy shall contain an Inflation Guard Endorsement and shall
provide protection against all perils included within the classification of fire, extended coverage, vandalism, malicious mischief, special extended perils (all risk), and any other perils which Landlord deems reasonably necessary. Landlord shall
not obtain insurance for Tenant’s fixtures or equipment installed by Tenant on the Property, or business income coverage, but Tenant may. 

ARTICLE 5 
 USE OF
PROPERTY 
 5.1 Permitted Uses. Tenant may use the Property only for the Permitted Uses set forth in Section 1.6 above.
Tenant shall be responsible for confirming that the building is adequate for its use in its present condition. Any improvement required for Tenant shall be at Tenant’s sole expense. 

5.2 Manner of Use. Tenant shall not cause or permit the Property to be used in any way which constitutes a violation of any law,
ordinance, or governmental regulation or order, which annoys or interferes with the rights of other tenants of Landlord, or which constitutes a nuisance or waste. Tenant shall obtain and pay for all permits, including a Certificate of Occupancy,
required for Tenant’s occupancy of the Property and shall promptly take all actions necessary to comply with all applicable statutes, ordinances, rules, regulations, orders and requirements regulating the use by Tenant of the Property,
including the Occupational Safety and Health Act. 
 5.3 Hazardous Materials. As used in this Lease, the term “Hazardous
Material” means any flammable items, explosives, radioactive materials, hazardous or toxic substances, material or waste or related materials, including any substances defined as or included in the definition of “hazardous
substances”, “hazardous wastes”, “hazardous materials” or “toxic substances” now or subsequently regulated under any applicable federal, state or local laws or regulations, including without limitation
petroleum-based products, paints, solvents, lead, cyanide, DDT, printing inks, acids, pesticides, ammonia compounds and other chemical products, asbestos, PCBs and similar compounds, and including any different products and materials which are
subsequently found to have adverse effects on the environment or the health and safety of persons. Tenant shall not cause or permit any Hazardous Material to be generated, produced, brought upon, used, stored, treated or disposed of in or about the
Property by Tenant, its agents, employees, contractors, sublessees or invitees without the prior written consent of Landlord. Landlord shall be entitled to take into account such other factors or facts as Landlord may reasonably determine to be
relevant in determining whether to grant or withhold consent to Tenant’s proposed activity with respect to Hazardous Material. 

  
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 5.4 Signs and Auctions. Tenant may place any signs on the Property without Landlord’s
prior written consent. 
 5.5 Indemnity. Tenant shall indemnify Landlord against and hold Landlord harmless from any and all costs,
claims or liability arising from: (a) Tenant’s use of the Property; (b) the conduct of Tenant’s business or anything else done or permitted by Tenant to be done in or about the Property, including any contamination of the
Property or any other property resulting from the presence or use of Hazardous Material caused or permitted by Tenant; (c) any breach or default in the performance of Tenant’s obligations under this Lease; (d) any misrepresentation or
breach of warranty by Tenant under this Lease; or (e) other acts or omissions of Tenant. Tenant shall defend Landlord against any such cost, claim or liability at Tenant’s expense with counsel reasonably acceptable to Landlord or, at
Landlord’s election, Tenant shall reimburse Landlord for any legal fees or costs incurred by Landlord in connection with any such claim. As a material part of the consideration to Landlord, Tenant assumes all risk of damage to property or
injury to persons in or about the Property arising from any cause, and Tenant hereby waives all claims in respect thereof against Landlord, except for any claim arising out of Landlord’s negligence or willful misconduct. As used in this
Section, the term “Tenant” shall include Tenant’s employees, agents, contractors and invitees, if applicable. Landlord shall be responsible for and shall hold harmless and indemnify Tenant as to any and all costs, fees, fines, etc.
related to any hazardous waste located on the property prior to Tenant’s occupancy. 
 5.6 Quiet Possession. If Tenant pays the
rent and complies with all other terms of this Lease, Tenant may occupy and enjoy the Property for the full Lease Term, subject to the provisions of this Lease. 

ARTICLE 6 
 CONDITION OF
PROPERTY; MAINTENANCE, REPAIRS AND ALTERATIONS 
 6.1 Existing Conditions. Tenant accepts the Property in its condition as of the
execution of the Lease. Tenant shall be responsible for any and all of Tenant’s improvements to the property. 
 6.2 Tenant’s
Obligations. 
 (a) Tenant shall keep all portions of the Property in good order, condition and repair (including landscaping, roof,
exterior walls, parking lot and foundation). If any portion of the Property or any system or equipment in the Property which Tenant is obligated to repair cannot be fully repaired or restored, Tenant shall promptly replace such portion of the
Property or system or equipment in the Property, regardless of whether the benefit of such replacement extends beyond the Lease Tenn. If any part of the Property is damaged by any act or omission of Tenant and Tenant fails to timely repair, then
Tenant shall pay Landlord the cost of repairing or replacing such damaged property, whether or not Landlord would otherwise be obligated to pay the cost of maintaining or repairing such property. It is the intention of Landlord and Tenant that at
all times Tenant shall maintain the portions of the Property which Tenant is obligated to maintain in an attractive and fully operative condition in the same general condition as when delivered to Tenant, unless Tenant further improves the condition
in which case it shall be maintained in such higher condition. 

  
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 (b) Tenant shall fulfill all of Tenant’s obligations under this Section at Tenant’s
sole expense. If Tenant fails to maintain, repair or replace the Property as required by this Section, Landlord may, upon twenty (20) days’ prior notice to Tenant (except that no notice shall be required in the case of an emergency) enter
the Property and perform such maintenance or repair including replacement, as needed on behalf of Tenant. In such case, Tenant shall reimburse Landlord for all costs incurred in performing such maintenance or repair immediately upon demand. 

6.3 Alterations, Additions, and Improvements. 

(a) Tenant may make any alterations, additions, or improvements to the Property without Landlord’s prior written consent. All alterations,
additions, and improvements shall be done in a good and workmanlike manner, in conformity with all applicable laws and regulations. Upon completion of any such work, Tenant shall provide Landlord with “as built” plans, copies of all
construction contracts, and proof of payment for all labor and materials. 
 (b) Tenant shall pay when due all claims for labor and material
furnished to the Property. 
 6.4 Condition Upon Termination. Upon the termination of the Lease, Tenant shall surrender the Property
to Landlord, broom clean and in the same condition as received less and except reasonable and normal wear and tear. However, Tenant shall not be obligated to repair any damage which Landlord is required to repair (Damage or Destruction). All
alterations, additions and improvements which Landlord has not required Tenant to remove shall become Landlord’s property and shall be surrendered to Landlord upon the expiration or earlier termination of the Lease, except that Tenant may
remove any of Tenant’s property which can be removed without material damage to the Property. 
 ARTICLE 7 

DAMAGE OR DESTRUCTION 

7.1 Partial Damage to Property. 

(a) Tenant shall notify Landlord in writing immediately upon the occurrence of any significant damage to the Property. If the Property is only
partially damaged (i.e., less than twenty-five percent (25%) of the Property is untenantable as a result of such damage and less than twenty-five percent (25%) of Tenant’s operations are materially impaired) this Lease shall
remain in effect and Tenant shall repair the damage as soon as reasonably possible; provided, however, if repair is not possible within thirty (30) days, Tenant, at its option, may terminate this Lease. 

7.2 Substantial or Total Destruction. If the Property is substantially or totally destroyed by any cause whatsoever (i.e., the damage to
the Property is greater than partial damage, and regardless of whether Landlord receives any Insurance proceeds, this Lease shall terminate as of the date the destruction occurred. 

  
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 7.3 Temporary Reduction of Rent. If the Property is destroyed or damaged and Landlord or
Tenant repairs or restores the Property, any rent payable during the period of such damage, repair and/or restoration shall be abated or reduced from the date of the damage in the same ratio that the portion of the Property rendered for the time
being unfit for occupancy shall bear to the entire Property. 
 ARTICLE 8 

CONDEMNATION 
 If all or
any portion of the Property is taken under the power of eminent domain or sold under the threat of that power (all of which are called “Condemnation”), this Lease shall terminate at the option of Tenant. 

ARTICLE 9 
 ASSIGNMENT
AND SUBLETTING 
 9.1 Landlord’s Consent Required. No portion of the Property or of Tenant’s interest in this Lease may
be acquired by any other person or entity, whether by sale, assignment, mortgage, sublease, transfer, operation of law, or act of Tenant, without Landlord’s prior written consent except as provided below. 

9.2 Tenant Affiliate. Tenant may assign this Lease or sublease the Property, without Landlord’s consent, to any corporation which
controls, is controlled by or is under common control with Tenant, or to any corporation resulting from the merger of or consolidation with Tenant (“Tenant’s Affiliate”). In such case, any Tenant’s Affiliate shall assume in
writing all of Tenant’s obligations under this Lease. 
 ARTICLE 10 

OPTION TO PURCHASE 

Provided that Tenant is not in default under the Lease, Tenant shall have the option to purchase the leased property, provided that Tenant
provides written notice to Landlord of its election to purchase the leased property at least two (2) months prior to the tenth (10th) anniversary of the Commencement Date of this Lease. The
purchase price shall be Three Million One Hundred Thousand Dollars ($3,100,000) and shall be paid in cash on closing. The sale shall be closed in escrow with Pacific Northwest Title Insurance Company (the “Title Company”) within 60 days
after Tenant provides Landlord with the written notice of its exercise of this option. Title to the Premises shall be conveyed to Tenant by statutory warranty deed subject only to the matters arising through Tenant and matters accepted by Tenant in
the preliminary commitment for title insurance issued by the Title Company and any supplement thereto, provided further that Landlord shall remove and satisfy as of the closing any mortgages, deeds of trust or liens arising through Landlord.
Landlord shall pay the premium for an owner’s title insurance policy in favor of Tenant and the real estate excise tax. Escrow fees shall be shared equally between Landlord and Tenant. Real estate taxes shall be prorated as of closing.
Tenant’s option under this Article shall terminate in the event Landlord offers Tenant a right of first opportunity to purchase pursuant to Article 11 below and Tenant does not elect to purchase the Offered Space pursuant to such right. 

  
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 ARTICLE 11 

RIGHT OF FIRST OPPORTUNITY 

Provided that Tenant is not in default under this Lease, Landlord shall, during the original ten (10) year term of this Lease, provide
written notice to Tenant at such time as Landlord desires to sell the leased Property, and shall provide Tenant the right to purchase the leased property for a purchase price of Two Million Six Hundred Fifty Thousand Dollars ($2,650,000), plus any
loan prepayment penalties which may be due Coastal Community Bank. Landlord shall provide Tenant written notice of its intent to sell the Property at least ninety (90) days prior to putting the leased property on the market for sale, or
soliciting or accepting any offers of purchase and sale. Tenant shall have thirty (30) days thereafter to provide Landlord of its intent to purchase after receipt of Landlord notice, and if Tenant gives notice of its intent to purchased within
said thirty (30) days, closing shall be within sixty (60) days of Tenant’s notice of intent to purchase. Costs shall be apportioned and the other terms as to status of title shall be as set forth in Article 10. If Tenant does not
given Landlord such timely notice, Landlord may sell to a third party on terms acceptable to Landlord. 
 ARTICLE 12 

DEFAULTS; REMEDIES 

12.1 Covenants and Conditions. Tenant’s performance of each of Tenant’s obligations under this Lease is a condition as well
as a covenant. Tenant’s right to continue in possession of the Property is conditioned upon such performance. Time is of the essence in the performance of all covenants and conditions. 

12.2 Defaults. Tenant shall be in material default under this Lease: 

(a) If Tenant abandons the Property or if Tenant’s vacation of the Property results in the cancellation of any Insurance. 

(b) If Tenant fails to pay rent or any other charge within 10 days of when due. 

(c) If Tenant fails to perform any of Tenant’s non-monetary obligations under this Lease for a
period of thirty (30) days after written notice from Landlord; provided that if more than thirty (30) days are required to complete such performance, Tenant shall not be in default if Tenant commences such performance within the thirty
(30) day period and thereafter diligently pursues its completion. 
 12.3 Remedies. On the occurrence and continuance beyond any
applicable cure period of any material default by Tenant, Landlord may, at any time thereafter, with or without notice or demand and without limiting Landlord in the exercise of any right or remedy which Landlord may have: 

  
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 (a) Terminate Tenant’s right to possession of the Property by any lawful means, in which
case this Lease shall terminate and Tenant shall immediately surrender possession of the Property to Landlord. 
 (b) Subject to
Landlord’s legal obligation to mitigate its damages, maintain Tenant’s right to possession, in which case this Lease shall continue in effect whether or not Tenant has abandoned the Property. In such event, Landlord shall be entitled to
enforce all of Landlord’s rights and remedies under this Lease, including the right to recover the rent as it becomes due; 
 (c) Pursue
any other remedy now or hereafter available to Landlord under the laws of the State of Washington. 
 12.4 Automatic Termination.
Subject to the provisions of Chapter 59.12 of the Revised Code of Washington, and notwithstanding any other term or provision hereof to the contrary, the Lease shall terminate on the occurrence of any act which affirms the Landlord’s intention
to terminate the Lease, including the filing of an unlawful detainer action against Tenant. On such termination, Landlord’s damages for default shall include costs and reasonable attorneys’ fees. 

ARTICLE 13 
 PROTECTION
OF LENDERS 
 13.1 Subordination. Landlord shall have the right to subordinate this Lease to any deed of trust or mortgage
encumbering the Property, any advances made on the security thereof and any renewals, modifications, consolidations, replacements or extensions thereof, whenever made or recorded provided that Tenant’s obligations under this Lease shall not be
increased in any material way (the performance of ministerial acts shall not be deemed material), and Tenant shall not be deprived of its rights under this Lease. Tenant shall cooperate with Landlord and any lender which is acquiring a security
interest in the Property or the Lease. Tenant shall execute such further documents and assurances as such lender may require, provided that Tenant’s obligations under this Lease shall not be increased in any material way (the performance of
ministerial acts shall not be deemed material), and Tenant shall not be deprived of its rights under this Lease. Tenant’s right to quiet possession of the Property during the Lease Term shall not be disturbed if Tenant pays the rent and
performs all of Tenant’s obligations under this Lease and is not otherwise in default. If any beneficiary or mortgagee elects to have this Lease prior to the lien of its deed of trust or mortgage and gives written notice thereof to Tenant. this
Lease shall be deemed prior to such deed of trust or mortgage whether this Lease is dated prior or subsequent to the date of said ground lease, deed of trust or mortgage or the date of recording thereof. 

13.2 Attornment. If Landlord’s interest in the Property is acquired by any sale, beneficiary under a deed of trust, mortgagee, or
purchaser at a foreclosure sale, Tenant shall attom to the transferee of or successor to Landlord’s interest in the Property and recognize such transferee or successor as Landlord under this Lease. 

  
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 13.3 Signing of Documents. Tenant shall sign and deliver any instrument or documents
necessary or appropriate to evidence any such attornment or subordination or agreement to do so. 
 13.4 Estoppel Certificates. Upon
Landlord’s written request, Tenant shall execute, acknowledge and deliver to Landlord a written statement certifying to the extent true: (i) that none of the terms or provisions of this Lease have been changed (or if they have been
changed, stating how they have been changed); (ii) that this Lease has not been canceled or terminated; (iii) the last date of payment of the Base Rent and other charges and the time period covered by such payment; (iv) that Landlord is
not in default under this Lease (or, if Landlord is claimed to be in default, stating why); and (v) such other representations or information with respect to Tenant or the Lease as Landlord may reasonably request or which any prospective
purchaser or encumbrancer of the Property may require. 
 ARTICLE 14 

LEGAL COSTS 
 14.1 Legal
Proceedings. If Tenant or Landlord shall be in breach or default under this Lease, such party (the “Defaulting Party”) shall reimburse the other party (the “Nondefaulting Party”) upon demand for any costs or expenses that the
Nondefaulting Party incurs in connection with any breach or default of the Defaulting Party under this Lease, whether or not suit is commenced or judgment entered. Such costs shall include legal fees and costs incurred for the negotiation of a
settlement, enforcement of rights or otherwise. Furthermore, if any action for breach of or to enforce the provisions of this Lease is commenced, the court in such action shall award to the party in whose favor a judgment is entered, a reasonable
sum as attorneys’ fees and costs. The losing party in such action shall pay such attorneys’ fees and costs. 
 ARTICLE 15

 MISCELLANEOUS PROVISIONS 

15.1 Landlord’s Liability. Landlord shall be responsible for and pay any costs, expenses, etc. not specifically required to be
paid by Tenant in this lease. 
 15.2 Severability. A determination by a court of competent jurisdiction that any provision of this
Lease or any part thereof is illegal or unenforceable shall not cancel or invalidate the remainder of such provision or this Lease, which shall remain in full force and effect. 

15.3 Interpretation. The captions of the Articles or Sections of this Lease are to assist the parties in reading this Lease and are not
a part of the terms or provisions of this Lease. Whenever required by the context of this Lease, the singular shall include the plural and the plural shall include the singular. The masculine, feminine and neuter genders shall each include the
other. In any provision relating to the conduct, acts or omissions of Tenant, the term “Tenant” shall include Tenant’s agents, employees, contractors, invitees, successors or others using the Property with Tenant’s expressed or
implied permission. 

  
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 15.4 Incorporation of Prior Agreements; Modifications. This Lease is the only agreement
between the parties pertaining to the lease of the Property and no other agreements are effective. All amendments to this Lease shall be in writing and signed by all parties. Any other attempted amendment shall be void. 

15.5 Notices. All notices required or permitted under this Lease shall be in writing and shall be personally delivered or sent by
certified mail, return receipt requested, postage prepaid. Notices to Tenant shall be delivered to the address specified in Section 1.3 above, except that upon Tenant’s taking possession of the Property, the Property shall be Tenant’s
address for notice purposes. Notices to Landlord shall be delivered to the address specified in Section 1.2 above. All notices shall be effective upon delivery. Either party may change its notice address upon written notice to the other party.

 15.6 Waivers. All waivers must be in writing and signed by the waiving party. Landlord’s failure to enforce any provision of
this Lease or its acceptance of rent shall not be a waiver and shall not prevent Landlord from enforcing that provision or any other provision of this Lease in the future. No statement on a payment check from Tenant or in a letter accompanying a
payment check shall be binding on Landlord. Landlord may, with or without notice to Tenant, negotiate such check without being bound to the conditions of such statement. 

15.7 Recordation. Tenant shall not record this Lease without prior written consent from Landlord. However, either Landlord or Tenant may
record a “Short Form” memorandum of this Lease. The party performing such recording shall pay all transfer taxes and recording fees. 

15.8 Binding Effect; Choice of Law. This Lease binds any party who legally acquires any rights or interest in this Lease from Landlord
or Tenant. The laws of the State of Washington shall govern this Lease, and venue shall be in Snohomish County, Washington. 
 15.9 Force
Majeure. If a Party cannot perform any of its obligations due to events beyond Landlord’s control, the time provided for performing such obligations shall be extended by a period of time equal to the duration of such events. Events beyond a
Party’s control include, but are not limited to, acts of God, war, civil commotion, labor disputes, strikes, fire, flood or other casualty, shortages of labor or material, government regulation or restriction and weather conditions. The
Tenant’s obligation to pay rent (after the commencement of the term of this Leases) shall not be excused by this Section. 
 15.10
Execution of Lease. This Lease may be executed in counterparts and, when all counterpart documents are executed, the counterparts shall constitute a single binding instrument, Landlord’s delivery of this Lease to Tenant shall not be deemed
to be an offer to lease and shall not be binding upon either party until executed and delivered by both parties. 

  
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 Landlord and Tenant have signed this Lease at the place and on the dates specified adjacent to
their signatures below and have initialed all Exhibits which are attached to or incorporated by reference in this Lease. 
  

							
	 DATED this 4th day of June, 2008.
	 		 		 	
				
	LANDLORD:	 		 		 	JMHLS, LLC, a Washington Limited Liability Company
				
		 		 	BY:	 	 /s/ John Haugen

		 		 	ITS:	 	Managing Member
				
	TENANT:	 		 		 	COASTAL COMMUNITY BANK
				
		 		 	BY:	 	 /s/ Eric Sprink

		 		 	ITS:	 	President

  

			
	STATE OF WASHINGTON	  	)
		  	) ss.
	COUNTY OF SNOHOMISH	  	)

 On this 4th day of June, 2008, before me, the undersigned, a Notary Public in .and for the State of
Washington, duly commissioned and sworn, personally appeared John Haugen, to me known to be the Managing Member of JMHLS, LLC, a Washington Limited Liability Company, the individual that executed the foregoing instrument, and acknowledged the said
instrument to be his free and voluntary act and deed for the uses and purposes therein mentioned. 
 Witness my hand and official seal
hereto affixed the day and year first above written. 
  

	
	[Illegible]
	Signature of Notary Public
	
	Residing at Camano Island
	My apt. expires: July 21, 2008

  
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	STATE OF WASHINGTON	  	)
		  	) ss.
	COUNTY OF SNOHOMISH	  	)

 On this 4th day of June, 2008, before me, the undersigned, a Notary Public in and for the State of Washington,
duly commissioned and sworn, personally appeared Eric Sprink, to me known to be the President of COASTAL COMMUNITY BANK, the entity that executed the foregoing instrument, and acknowledged the said instrument to be his free and voluntary act and
deed of said entity, for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute the said instrument on behalf of said entity. 

Witness my hand and official seal hereto affixed the day and year first above written. 

 

	
	[Illegible]
	Signature of Notary Public
	
	Residing at Camano Island
	My apt. expires: July 21, 2008

  
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