Document:

Prepared by MERRILL CORPORATION

QuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

EMPLOYMENT AGREEMENT    
  

    THIS AGREEMENT (the "Agreement") is made and entered into this 1ST day of January, 2000, by and between NORTHRIM BANK, a state-chartered
commercial bank, with its principal office in Anchorage, Alaska (the "Bank"), and VICTOR P. MOLLOZZI (the "Executive"). 

    In
consideration of the mutual promises made in this Agreement, the parties agree as follows: 

    1.  Employment.

    Bank
employs Executive and Executive accepts employment with Bank as its Senior Credit Officer. 

    2.  Term.

    The
fixed term of this Agreement shall be a three (3) year period commencing on the date set forth above. 

    3.  Duties.

    Executive
will serve as Senior Vice President and Senior Credit Officer. Executive shall render such executive, management and administrative services and perform such tasks in
connection with the affairs and overall operation of the Bank as is customary for his position, subject to the direction of Bank's Chairman, President, and Board of Directors. Executive shall devote
necessary time, attention and effort to Bank's business in order to properly discharge his responsibilities under this Agreement. 

    4.  Compensation, Benefits, Reimbursement and Bonus.

    a.  In consideration for all services rendered by Executive during the term of this Agreement, Bank shall pay Executive
an annual base salary (before all customary and proper payroll deductions) of $135,000. The Board of Directors of the Bank shall review Executive's salary at the end of each year, in a manner
consistent with that used for all management employees of the Bank, and in its sole discretion may adjust such salary commensurate with the Executive's performance under this Agreement. 

    b.  Under the Bank's Incentive Compensation Plan, Executive shall be eligible to receive an annual bonus based on
performance as defined by the Board of Directors. Executive's annual target bonus will equal 25% of base salary. This is the amount payable for ambitious, but expected, results as determined by the
Board of Directors. Executive's bonus may be more or less than this amount at the Board of Directors discretion but may not exceed 35% of base salary. 

    c.  Executive shall be eligible for stock option grants under the Bank's Stock Option Plan. The timing and size of
awards will be at the discretion of the Board of Directors. 

    d.  Executive shall also be entitled to receive an annual contribution equal to 5% of annual base salary in accordance
with the Bank's Supplemental Executive Retirement Plan and the Executive may also participate in the Bank's Deferred Compensation Plan. 

    e.  Throughout the term of this Agreement, Bank shall provide Executive with reasonable health insurance, disability and
other employee benefits. Executive shall participate in all employee benefit plans and programs of Bank on a basis at least as favorable as that accorded to any other officer of Bank. Bank shall
reimburse Executive for his reasonable expenses (including, without limitation, travel, entertainment, and similar expenses) incurred in performing and promoting the business of Bank. Executive shall
present from time to time itemized accounts of any such expenses, subject to any limits of company policy and the rules and regulations of the Internal Revenue Service. 

1

 

    5.  Termination of Agreement.

    a.  This Agreement may be terminated at any time by either the Board of Directors of Bank or by Executive upon sixty
(60) days prior written notice. 

     (i) Termination Due to a Change in Control. If Bank is subjected to a Change in Control (as
defined in Section 5(b)(i)), and either Bank or its assigns terminates this Agreement without cause or Executive terminates this Agreement for good reason, then Bank shall pay Executive upon
the effective date of
such termination all salary earned and all reimbursable expenses incurred under this Agreement through such termination date, plus a pro rata portion of the annual target bonus for the year of
termination, and in addition, an amount equal to two (2) times Executive's average annual W-2 compensation over the prior three years. Provided, however, that the payment described
in this Section 5(a)(i) will be less than the amount that would cause it to be a "parachute payment" within the meaning of Section 280G(b)(2)(A) of the Internal Revenue Code. 

    (ii) Termination by Bank Without Cause or by Executive for Good Reason. If Bank terminates this
Agreement without cause, or if Executive terminates this Agreement for Good Reason, Bank shall pay Executive upon the effective date of such termination all salary earned and all reimbursable expenses
incurred under this Agreement through such termination date, plus a pro rata portion of the annual target bonus for the year of termination, and, in addition, an amount equal to the greater of:
(A) two (2) year's salary payable hereunder, or (B) the salary payable under the fixed term of this Agreement for the remainder of the fixed term of this Agreement. 

    In
addition, the Executive shall be entitled to health and dental insurance benefits for the remaining period covered by this Agreement. These benefits will be provided at Bank's
expense, but such period shall count towards the Bank's continuation of coverage obligation under Section 4980B of the Internal Revenue Code ("COBRA"). The Executive shall also be entitled to
receive age credit and credit for period of service towards all pension/SERP plans for the remaining period of time covered by this Agreement. If Executive is hired by Bank, its assigns, any company
in control of Bank, or any company controlled by Bank during the period covered by this Agreement, then Executive will be entitled to be treated for all purposes relating to future compensation,
benefits, and retirement, as if this Agreement had never been terminated and as if Executive had performed his responsibilities as an Executive throughout the period originally covered by this
Agreement. 

   (iii) Termination by Bank for Cause or by Executive Without Good Reason. If Bank terminates this
Agreement for Cause or if Executive terminates this Agreement without Good Reason, Bank shall pay Executive upon the effective date of such termination only such salary earned and expenses
reimbursable under this Agreement incurred through such termination date. In such case, Executive shall have no right to receive compensation or other benefits for any period after termination under
this Agreement. If Bank terminates this Agreement on account of any mental or physical disability that prevents Executive from discharging his duties under this Agreement, Executive shall be entitled
to: (A) all salary earned, and reimbursement for expenses incurred, under this Agreement through the termination date and, in addition, full salary for the year following the termination date
(less the amount of any payments received by Executive during such one (1) year period under any Bank-sponsored disability plan), and (B) health and dental insurance benefits
for a period of one (1) year following the termination date, which benefits will be provided at Bank's expense, but such period shall count towards the Bank's continuation of coverage
obligation under Section 4980B of Code (commonly referred to as "COBRA"). 

2

 

    (iv) Termination Upon Death of Executive. Executive's term of employment under this Agreement
shall be terminated upon the death of Executive. In such case, the Bank shall be obligated to pay to the surviving spouse of Executive, of if there is none, to the Executive's estate: (A) that
portion of Executive's salary that would otherwise have been paid to him for the month in which his death occurred, and (B) any amounts due him pursuant to the Bank's pension plan, any
supplemental deferred compensation plan, and any other death, insurance, employee benefit plan or stock benefit plan provided to Executive by the Bank. 

    (b) Termination Definitions.

     (i) "Change in Control." For purposes of this Agreement, "Change in
Control" means a change "in the ownership or effective control" or "in the ownership of a substantial portion of the assets" of the Bank, within the meaning of Section 280G of the Internal
Revenue Code. 

    (ii) "Cause." For purposes of this Agreement, termination for "Cause"
shall include termination because Executive (A) continually fails to substantially perform his duties with the Bank, (B) is adjudged guilty of any crime involving a breach of his
fiduciary duties to the Bank, (C) is willfully and continually failing to comply with any law, rule, or regulation (other than traffic violations or similar offenses) or final cease and desist
order of a regulatory agency having jurisdiction over Bank, or (D) is unable to substantially perform his duties with the Bank due to drug addiction or chronic alcoholism. Notwithstanding the
foregoing, Executive shall not be deemed to have been terminated for Cause unless and until there shall have been delivered to him a copy of a resolution duly adopted by the affirmative vote of not
less than three-quarters (3/4) of the entire membership of the Bank's Board of Directors at a meeting of the Board called for such purpose (after reasonable notice to Executive and an opportunity for
him, together with his counsel, to be heard before the Board), finding that in the good faith opinion of the Board, he was guilty of conduct that constitutes Cause (as defined above) and specifying
the conduct in detail. 

   (iii) "Disability." For purposes of this Agreement, "Disability" shall mean a medically
diagnosed physical or mental impairment that may be expected to result in death, or to be of long, continued duration, and that renders Executive incapable of performing the duties required under this
Agreement. Bank's Board of Directors, acting in good faith, shall make the final determination of whether Executive is suffering under any Disability (as herein defined) and, for purposes of making
such determination, may require Executive to submit himself to a physical examination by a physician mutually agreed upon by the Executive and Bank's Board of Directors at Bank's expense. 

    (iv) "Good Reason." For purposes of this Agreement, termination for "Good Reason" shall mean
termination by Executive as a result of any material breach of this Agreement by Bank. Good Reason shall include, but not be limited to: (A) a material reduction in Executive's compensation
defined as a reduction equal to or greater than five percent (5%) of Executive's then annual base salary, (B) a material reduction in Executive's duties and responsibilities, but not merely a
change in title, or (C) relocation of Executives primary workplace by more than fifty (50) miles. 

    6.  Restrictive Covenant.

    a.  Executive agrees that for the term of this Agreement and for a period of two (2) years after Bank's
termination of this Agreement for Cause or Executive's termination of this Agreement without Good Reason (with the understanding that the two (2) year period will be shortened to one
(1) year upon the completion of a transaction constituting a change of control, as defined in Section 5(b)(i)), he will not directly or indirectly pursue any acquisition or
organizational opportunities related to financial institutions in Alaska. 

3

 

    b.  The parties agree that if a trial judge with jurisdiction over a dispute related to this Agreement should determine
that the restrictive covenant set forth above is unreasonably broad, the parties authorize such trial judge to narrow the covenant so as to make it reasonable, given all relevant circumstances, and to
enforce such covenant. The provisions of this paragraph shall survive termination of this Agreement. 

    7.  Miscellaneous.

    a.  This Agreement contains the entire agreement between the parties with respect to Executive's employment with Bank,
and is subject to modification or amendment only upon agreement in writing signed by both parties. 

    b.  This Agreement shall bind and inure to the benefit of the heirs, legal representatives, successors and assigns of
the parties, except that Bank's rights and obligations may not be assigned. 

    c.  If any provision of this Agreement is invalid or otherwise unenforceable, all other provisions shall remain
unaffected and shall be enforceable to the fullest extent permitted by law. 

    d.  In the event of any claim or dispute arising out of this Agreement, the party that substantially prevails shall be
entitled to reimbursement of all expenses incurred in connection with such claim or dispute, including, without limitation, attorneys' fees and other professional fees. This paragraph shall apply to
expenses incurred with or without suit, and in any judicial, arbitration or administrative proceedings, including all appeals therefrom. 

    e.  Any notice required to be given under this Agreement to either party shall be given by personal service or by
depositing a copy of such notice in the United States registered or certified mail, postage prepaid, addressed to the following address, or such other address as addressee shall designate in writing: 

	 
	 	 

	Bank:	 	3111 "C" Street

Anchorage, AK 99503
	

Executive:	
 	

11950 Ginami Street

Anchorage, AK 99516

    f.   This Agreement shall be governed by and construed in accordance with the laws of the State of Alaska. 

	BANK:	 	NORTHRIM BANK
	

 	
 	

By:	
 	

/s/ Marc Langland

	 	 	 	 	Its:	 	President and CEO
	
EXECUTIVE:	
 	

/s/ Victor P. Mollozzi
 Victor P. Mollozzi

4

QuickLinks

EMPLOYMENT AGREEMENTPrepared by MERRILL CORPORATION

QuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

PLAN AND AGREEMENT OF REORGANIZATION AND MERGER    
  

This
Plan and Agreement of Reorganization and Merger, dated as of March 7, 2001 (the "Plan"), is made by and among Northrim Bank, an Alaska state chartered bank (the "Bank"), Northrim
BanCorp, Inc., an Alaska corporation (the "Holding Company"), and Northrim Interim Bank (In Organization), an interim bank being formed under the banking laws of the State of Alaska (the
"Interim Bank"). 

 
 

RECITALS    
  

	A.
	The
Bank is a banking corporation organized and existing under the laws of the State of Alaska, with its principal office in Anchorage, Alaska.

	B.
	The
Holding Company is a corporation duly organized under the laws of the State of Alaska, formed for the purpose of becoming a registered bank holding company within the meaning of
the Federal Bank Holding Company Act of 1956, as amended. It has its registered office in Anchorage, Alaska.

	C.
	The
Interim Bank is a corporation in the process of being formed as an interim bank under the laws of the State of Alaska. The Interim Bank is being formed by the Holding Company to
facilitate the reorganization of Northrim Bank into a wholly-owned subsidiary of the Holding Company. All of the capital stock of the Interim Bank will be subscribed for by the Holding
Company.

	D.
	The
Bank currently has options outstanding (the "Options") under an Employee Stock Option and Restricted Stock Award Plan and an Employee Stock Incentive Plan (collectively, the
"Plans") and the Boards of Directors of the Bank and the Holding Company intend that the Holding Company will adopt the Plans and Options.

	E.
	The
Board of Directors of the Bank and the Holding Company believe that the reorganization described herein will permit greater flexibility in responding to the changing financial
requirements of banking customers and in meeting the competition of other financial institutions. 

 
 

ARTICLE 1
  
    MERGER    
  

    1.1  Effective Date.  The Effective Date shall follow the satisfaction of all requirements of law and the
occurrence of all events required by Article 5 hereof, and shall be such date as is agreed to by the parties. 

    1.2  The Merger.  Upon the Effective Date, the Interim Bank shall merge with and into the Bank, with the
Bank surviving the merger and continuing to operate under the charter and Articles of Incorporation of the Bank (the "Continuing Bank"). The name of the Continuing Bank shall be Northrim Bank. The
business of the Continuing Bank shall be that of a state bank. Its main office and established and authorized branches shall be the same as those of the Bank immediately prior to the Effective Date.
Each outstanding share of Bank common stock shall remain outstanding as shares of the Continuing Bank and each outstanding share of Interim Bank common stock will be cancelled. 

    1.3  Assets.  All rights, franchises and interests of the Interim Bank in and to every type of property
(real, personal and mixed) and choses in action shall be transferred to and vested in the Bank by virtue of such merger without any deed or other transfer. 

    1.4  Liabilities.  Upon the Effective Date, the Continuing Bank shall be liable for all liabilities of
the Interim Bank and all deposits, debts, liabilities, obligations and contracts of the Interim Bank, 

1

 

matured or unmatured, accrued, absolute, contingent or otherwise, whether or not reflected or reserved against on the books of account or records of the Interim Bank, shall be those of the Continuing
Bank and shall not be released or impaired by the merger; and all rights of creditors and other obligees and all liens on property of the Interim Bank shall be preserved unimpaired. 

 
 

ARTICLE 2
  
    TERMS OF EXCHANGE    
  

    2.1  The Exchange.  On the Effective Date, (i) each outstanding share of common stock of the Bank
shall be converted into the right to receive one (1) share of the common stock of the Holding Company, and (ii) all options to purchase shares of the Bank common stock which are
outstanding immediately prior to the consummation of the reorganization shall be converted into options to purchase shares of common stock of the Holding Company, with the number of shares subject to
the option, the exercise price and the duration of the option remaining unchanged. No separate documents of assignment or transfer shall be required to effect such exchange or conversion. 

2.1.1
Adoption of Stock Option Plans. As part of the reorganization and as of the Effective Date, the Holding Company will adopt as its own and assume
the Plans as each are then in effect for the Bank. 

2.1.2  Shareholder Approval. Concurrently with and incorporated within the resolution of the shareholders providing for approval of the Plan shall be
deemed to be a resolution of the shareholders of the Holding Company approving adoption of the Plans. 

    2.2  Exchange of Certificates.  Each former shareholder of the Bank whose shares are exchanged for the
Holding Company shares pursuant to Section 2.1 hereof shall be issued certificates evidencing such Holding Company shares upon delivering to the Holding Company the stock certificate or
certificates formerly representing the holder's Bank shares. 

2.2.1  Submission of Certificates. To encourage the prompt submission of such certificates by the persons receiving the Holding Company shares in the
reorganization, any dividends which become payable with respect to their Holding Company shares will be withheld, without interest, until they submit such Bank shares for exchange. 

2.2.2
Evidence of Ownership of Holding Company Stock. Subject to Section 2.2.1, until surrendered, each certificate of Bank stock shall be
deemed, without any action by the holder thereof, to evidence the ownership of the number of shares of the Holding Company stock which the holder would be entitled to receive upon surrender. 

 
 

ARTICLE 3
  
    CAPITAL STOCK    
  

    3.1  Interim Bank, Continuing Bank.  Upon the Effective Date, the capital and surplus of the Interim Bank
shall be returned to the Holding Company in cancellation of all of the shares of the Interim Bank issued therefor. The capital and surplus of the Continuing Bank shall consist of the capital and
surplus of the Bank immediately prior to the merger. 

3.1.1
Continuing Bank Stock. To the Holding Company there shall be allocated a number of shares of common stock of the Continuing Bank which shall be
equal to the number of shares of Bank stock outstanding immediately prior to the Effective Date. 

    3.2  Holding Company.  Upon the Effective Date, the Holding Company stock outstanding immediately prior
to the Effective Date shall be repurchased by the Holding Company at the price paid therefor. The capital paid for such shares shall be repaid to the holder of such shares, and the shares 

2

 

shall be cancelled. Pursuant to Section 2.1, upon the Effective Date, each outstanding share of common stock of the Bank shall be converted into the right to receive one share of common stock
of the Holding Company. 

 
 

ARTICLE 4
  
    OPERATIONS    
  

    Board of Directors. Upon the Effective Date, the Board of Directors of the Continuing Bank shall consist of all
of the persons who are directors of the Bank immediately before the Effective Date. 

 
 

ARTICLE 5
  
    EVENTS PRECEDING CONSUMMATION    
  

    5.1  Presentation to Shareholders.  As soon as reasonably possible, the Bank shall cause this Plan to be
presented to its shareholders for approval by the holders of at least two-thirds of the outstanding capital stock of the Bank at a meeting of the shareholders, duly called by the
directors, upon notice provided in accordance with applicable law. This Agreement shall also be submitted for ratification and confirmation to shareholders of the Interim Bank and to the shareholders
of the Holding Company for their consent in accordance with applicable provisions of law and their Articles of Incorporation and Bylaws. 

    5.2  Submission to Regulatory Authorities, etc.  Northrim, the Holding Company and the Interim Bank shall
proceed expeditiously and cooperate fully in procuring all other consents and approvals and in taking any and all other action and satisfying all other requirements prescribed by law or otherwise as
may be necessary to consummate the merger on the terms herein provided, including without limitation, all requisite approvals or non-objection (as the case may be) by the Alaska Department
of Commerce and Economic Development, Division of Banking, Securities and Corporations (the "Alaska Division of Banking"), the Federal Deposit Insurance Corporation (the "FDIC") and the Board of
Governors of the Federal Reserve System. 

    The
proper officers of the Holding Company, the Bank and the Interim Bank shall, in the name and on behalf of the Holding Company, the Bank and the Interim Bank, make all such
arrangements, do and perform all such acts and things, and prepare, execute and deliver all such certificates, notices, applications and other instruments and documents as may be reasonably necessary
or appropriate in order to consummate the transactions herein described. 

    5.3  Required Approvals.  The reorganization and merger shall not be consummated until each of the
following events has occurred: 

(a)  The
Board of Directors of the Holding Company and the Interim Bank shall have approved this Plan and the plan of reorganization and merger embodied herein. 

(b)  A
majority of the entire Board of Directors and the holders of two-thirds of the outstanding stock of the Bank shall have approved this Plan and the plan of
reorganization and merger embodied herein. 

(c)  The
Alaska Division of Banking shall have approved the reorganization and merger contemplated by this Plan and shall have issued all appropriate certificates and permits to the
Bank and Holding Company. 

(d)  The
Board of Governors of the Federal Reserve System shall not have objected to the notice of the proposed reorganization contemplated by this Plan or shall otherwise have approved
an application by the Holding Company filed pursuant to the Bank Holding Company Act of 1956, as amended. 

3

 

(e)  The FDIC shall have approved or not objected to the merger. 

(f)  Davis
Wright Tremaine LLP shall have issued an opinion, to the effect that the reorganization will qualify as a tax-free reorganization pursuant to applicable
provisions of the Internal Revenue Code. 

 
 

ARTICLE 6
  
    TERMINATION    
  

    6.1  Right of Termination.  This Plan may be terminated and the plan of reorganization and merger
abandoned by any party by resolution of its Board of Directors at any time prior to the Effective Date if for any reason the consummation of the reorganization is considered inadvisable in the opinion
of such Board of Directors. 

4

 

    WITNESS the signatures of the corporate parties, each hereunto set by its President and attested by its Corporate Secretary. 

	 	 	NORTHRIM BANK
	

 	
 	

By:	
 	

/s/ R. Marc Langland
 R. Marc Langland

Its President
	Attest:	 	 	 	 
	

/s/ Mary A. Finkle
 Mary A. Finkle

Its Corporate Secretary	
 	

 	
 	

 
	

 	
 	

NORTHRIM BANCORP, INC.
	

 	
 	

By:	
 	

/s/ R. Marc Langland
 R. Marc Langland

Its President
	Attest:	 	 	 	 
	

/s/ Mary A. Finkle
 Mary A. Finkle

Its Corporate Secretary	
 	

 	
 	

 
	

 	
 	

NORTHRIM INTERIM BANK (IN ORGANIZATION)
	

 	
 	

By:	
 	

/s/ R. Marc Langland
 R. Marc Langland

Its President
	Attest:	 	 	 	 
	

/s/ Mary A. Finkle
 Mary A. Finkle

Its Corporate Secretary	
 	

 	
 	

 

5

 

	STATE OF ALASKA	 	 	 	)
	 	 	 	 	) ss.
	JUDICIAL DISTRICT	 	3rd	 	)

    On this 10th day of March, 2001, before me, a Notary Public in and for the State of Alaska, personally appeared R. Marc Langland, as President, and Mary A.
Finkle, as Corporate Secretary, of NORTHRIM BANK, personally known to me (or proved to me on the basis of satisfactory evidence) to be the persons who executed this instrument and acknowledged it to
be their free and voluntary acts and deeds for the uses and purposes mentioned in the instrument. 

    IN
WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. 

	

Seal	
 	

/s/ Gerri D. Tokar
 NOTARY PUBLIC in and for the State of Alaska, residing at          

My appointment expires July 17th 2002

Print Name Gerri D. Tokar

	STATE OF ALASKA	 	 	 	)
	 	 	 	 	) ss.
	JUDICIAL DISTRICT	 	3rd	 	)

    On this 10th day of March, 2001, before me, a Notary Public in and for the State of Alaska, personally appeared R. Marc Langland, as President, and Mary A.
Finkle, as Corporate Secretary, of NORTHRIM BANCORP, INC., personally known to me (or proved to me on the basis of satisfactory evidence) to be the persons who executed this instrument and
acknowledged it to be their free and voluntary acts and deeds for the uses and purposes mentioned in the instrument. 

    IN
WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. 

	

Seal	
 	

/s/ Gerri D. Tokar
 NOTARY PUBLIC in and for the State of Alaska, residing at          

My appointment expires July 17th 2002

Print Name Gerri D. Tokar

6

 

	STATE OF ALASKA	 	 	 	)
	 	 	 	 	) ss.
	JUDICIAL DISTRICT	 	3rd	 	)

    On this 10th day of March, 2001, before me, a Notary Public in and for the State of Alaska, personally appeared R. Marc Langland, as President, and Mary A.
Finkle, as Corporate Secretary, of NORTHRIM INTERIM BANK (IN ORGANIZATION), personally known to me (or proved to me on the basis of satisfactory evidence) to be the persons who executed this
instrument and acknowledged it to be their free and voluntary acts and deeds for the uses and purposes mentioned in the instrument. 

    IN
WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. 

	

Seal	
 	

/s/ Gerri D. Tokar
 NOTARY PUBLIC in and for the State of Alaska, residing at          

My appointment expires July 17th 2002

Print Name Gerri D. Tokar

7

QuickLinks

PLAN AND AGREEMENT OF REORGANIZATION AND MERGER

RECITALS

ARTICLE 1 MERGER

ARTICLE 2 TERMS OF EXCHANGE

ARTICLE 3 CAPITAL STOCK

ARTICLE 4 OPERATIONS

ARTICLE 5 EVENTS PRECEDING CONSUMMATION

ARTICLE 6 TERMINATION

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00033-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00033-of-00352.parquet"}]]