Document:

EX-10.27

EXHIBIT 10.27

NORTHRIM BANK

SUPPLEMENTAL EXECUTIVE RETIREMENT

DEFERRED COMPENSATION PLAN

Originally Effective as of

February 1, 2002

1

Amended Effective as of

January 1, 2005

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	1.
	 	DEFINITIONS.	 	 	 	 	 	 	2	 
	2.	 	ELIGIBILITY AND PARTICIPATION.	 	 	3	 
	 
	 	 	(a)	 	 	REQUIREMENTS	 	 	3	 
	 
	 	 	(b)	 	 	REEMPLOYMENT	 	 	3	 
	3.	 	CONTRIBUTIONS AND BENEFITS.	 	 	3	 
	 
	 	 	(a)	 	 	CONTRIBUTIONS	 	 	3	 
	 
	 	 	(b)	 	 	INTENT	 	 	3	 
	 
	 	 	(c)	 	 	DEFINED CONTRIBUTION	 	 	3	 
	 
	 	 	(d)	 	 	SUBJECT TO CLAIMS	 	 	3	 
	4.	 	ALLOCATION OF FUNDS.	 	 	4	 
	 
	 	 	(a)	 	 	PRE-2005 GRANDFATHERED ACCOUNT	 	 	4	 
	 
	 	 	(b)	 	 	SEPARATE PARTICIPANT ACCOUNTS	 	 	4	 
	 
	 	 	(c)	 	 	DEEMED INVESTMENT DIRECTIONS OF PARTICIPANTS	 	 	4	 
	 
	 	 	(d)	 	 	POST-2004 ACCOUNTS	 	 	4	 
	5.	 	DISTRIBUTION OF BENEFITS.	 	 	4	 
	 
	 	 	(a)	 	 	PRE-2005 GRANDFATHERED ACCOUNT	 	 	4	 
	 
	 	 	(b)	 	 	RETIREMENT OF EMPLOYEE	 	 	4	 
	 
	 	 	(c)	 	 	DISABILITY OF THE PARTICIPANT	 	 	4	 
	 
	 	 	(d)	 	 	DISTRIBUTIONS ON DEATH	 	 	5	 
	 
	 	 	(e)	 	 	POST-2004 ACCOUNT	 	 	5	 
	 
	 	 	(f)	 	 	DISTRIBUTIONS FOR UNFORESEEABLE EMERGENCY.	 	 	6	 
	 
	 	 	(g)	 	 	CHANGE IN CONTROL	 	 	6	 
	 
	 	 	(h)	 	 	METHOD OF PAYMENT	 	 	7	 
	 
	 	 	(i)	 	 	TERMINATION	 	 	7	 
	 
	 	 	(j)	 	 	INCOME TAXES ON DISTRIBUTIONS	 	 	7	 
	6.	 	BENEFICIARIES; EMPLOYEE DATA	 	 	7	 
	7.
	 	ADMINISTRATION.	 	 	 	 	 	 	7	 
	 
	 	 	(a)	 	 	ADMINISTRATIVE AUTHORITY	 	 	7	 
	 
	 	 	(b)	 	 	PAYMENT OF FEES, EXPENSES AND TAXES.	 	 	8	 
	 
	 	 	(c)	 	 	CLAIMS PROCEDURE	 	 	8	 
	8.
	 	AMENDMENT.	 	 	 	 	 	 	8	 
	 
	 	 	(a)	 	 	RIGHT TO AMEND	 	 	8	 
	 
	 	 	(b)	 	 	AMENDMENTS TO ENSURE PROPER CHARACTERIZATION OF PLAN	 	 	8	 
	9.
	 	MISCELLANEOUS.	 	 	 	 	 	 	9	 
	 
	 	 	(a)	 	 	LIMITATIONS ON LIABILITY OF EMPLOYER	 	 	9	 
	 
	 	 	(b)	 	 	CONSTRUCTION	 	 	9	 
	 
	 	 	(c)	 	 	SPENDTHRIFT PROVISION	 	 	9	 

 

 

 

 

 

 

 

 

 

 

NORTHRIM BANK

SUPPLEMENTAL EXECUTIVE RETIREMENT

DEFERRED COMPENSATION PLAN

Originally Effective as of

February 1, 2002

Amended Effective as of

January 1, 2005

RECITALS:

A. This Northrim Bank Supplemental Executive Retirement Deferred Compensation Plan (the Plan)
is adopted by Northrim Bank (the Employer) for a limited number of its executive employees.

B. It is the desire of the Northrim Bank (the Employer) to provide to certain executive
employees (the Employees) a supplemental executive retirement fund so that upon certain conditions,
there will be funds available to them on their respective retirement.

C. This NORTHRIM SUPPLEMENTAL RETIREMENT DEFERRED COMPENSATION PLAN (the Plan) is adopted by
the Northrim Bank (the Employer) for such Employees to provide termination of employment and
related retirement benefits taxable pursuant to I.R.C. § 451.

D. It is anticipated that once this Plan is approved, contributions will be made to the
Participant Accounts(s) for their respective benefit.

E. The Plan is intended to be an unfunded defined contribution non-qualified deferred
compensation plan maintained by the Employer for the sole benefit of executive employees for the
purpose of providing for retirement or deferred compensation benefits. All Participants are
considered by the Employer to be in the upper level of “management.”

F. The Plan is intended to be a top-hat plan [a/k/a “supplemental executive retirement plan],
i.e., an unfunded deferred compensation plan maintained for a select group of management or highly
compensated employees, under Sections 201(2), 301(a)(3), and 401(a)(1) of the Employee Retirement
Income Security Act of 1974 (ERISA). All provisions of this Plan shall be interpreted consistent
with that intent.

G. It is the intent of the Employer and the Participant’s, that until distributed, a
Participant’s Accounts shall at all times remain unfunded and unvested, and subject to the general
creditors of the Employer.

Accordingly, the following Plan is adopted.

1. DEFINITIONS.

(a) BENEFICIARY means any person or person designated in accordance with the provisions of
Section 6 of the Plan.

(b) CODE or IRC shall mean the Internal Revenue Code of 1986 and the regulations there under,
as amended from time to time.

(c) EFFECTIVE DATE of this amended and restated plan is January 1, 2005. The Plan’s original
Effective Date was February 1, 2002.

(d) EMPLOYER means Northrim Bank, an Alaska corporation and its successors and assigns or any
other corporation or business organization that assumes the Employer’s obligations hereunder.

(e) NORMAL RETIREMENT AGE shall mean the age referenced in Section 3 below.

(f) PARTICIPANT means any Employee so designated in accordance with the provisions of
Section II who is or may become (or whose Beneficiaries may become) eligible to receive a benefit
under the Plan.

(g) PARTICIPANT ACCOUNT or ACCOUNTS shall mean then current balances (as adjusted pursuant to
the terms of this Plan) of the funds that are set aside by the Employer for the Participant
pursuant to the Plan, and shall include contribution credits and deemed income, gains, and losses
(to the extent realized as determined by the Employer, in its discretion) and credited thereto.
The Employer will use key man variable life insurance policies on each Participant to determine the
Participant’s Account. The death benefit and cash value of the policies remain the property of the
bank until distributed under the provisions of this Plan. A Participant’s or Beneficiary’s
Accounts shall be determined as of the date of reference.

(h) PLAN means this Northrim Bank Supplemental Executive Retirement Deferred Compensation
Plan, as amended from time to time.

(i) UNFORSEEABLE EMERGENCY means a severe financial hardship to the Participant resulting from
an illness or accident of the Participant, the Participant’s spouse, or a dependent of the
Participant (as defined in IRC § 152(a)), the loss of the Participant’s property due to casualty,
or other similar extraordinary and unforseeable circumstances, arising as a result of events beyond
a Participant’s control. Whether circumstances constitute such an unforseeable emergency depends
on the facts of each case as determined by the Compensation Committee in its discretion. Payment
may not be made if the unforseeable emergency may be relieved:

(i) Through reimbursement or compensation by insurance or otherwise; or

(ii) By liquidation of the Participant’s assets, to the extent that liquidation itself would
not cause severe financial hardship.

The definition provided in this Section 1(i) also applies to former Participants who incur an
unforeseeable emergency and who still have an Account balance. If a Participant obtains a payment,
upon an unforeseeable emergency, the Participant’s deferral election under this Plan shall
terminate.

2. ELIGIBILITY AND PARTICIPATION.

(a) REQUIREMENTS. The following conditions must be met before an Employee may participate in
the Plan:

(i) An Employee must be at all times a member of a select group of executive management or
highly compensated employees.

(ii) Participation in the Plan is contingent on the Employer determining that it wants to
extend benefits under the Plan to the Employee; such determination shall be at all times in the
sole and absolute discretion of the Employer.

(iii) The Employee must elect to participate in the Plan as a Participant.

(b) REEMPLOYMENT. If a Participant whose employment with the Employer is terminated is
subsequently reemployed, he or she may become a Participant in the Plan only in accordance the
provisions of Section 2(a), above.

3. CONTRIBUTIONS AND BENEFITS.

(a) CONTRIBUTIONS. Each year, the Employer shall contribute to each Participant’s Accounts
the following amounts:

	 	 	 	 	 	 	 	 	 
	Participant	 	Normal Retirement Age	 	Annual Contribution
	R. Marc Langland
	 	 	70	 	 	$	92,511	 
	Christopher N. Knudson
	 	 	60	 	 	$	54,225	 
	Victor P. Mollozzi
	 	 	60	 	 	$	45,000	 
	Joe Schierhorn
	 	 	60	 	 	$	44,992	 
	Bob Shake
	 	 	60	 	 	$	44,992	 
	Joe Beedle
	 	 	60	 	 	$	89,527	 

(b) INTENT. The funds contributed to the Participant’s Accounts are for the purpose of
providing the Participant a source of funds for future retirement. The funds are being set aside
not as part of his current or past compensation, but rather as an excess supplemental executive
employee retirement benefit to be paid to the Participant at some time in the future as further
provided within this Plan.

(c) DEFINED CONTRIBUTION. The contribution of the funds to the Participant’s Accounts are
intended to be a defined contribution and not provide a defined benefit.

(d) SUBJECT TO CLAIMS. Until distributed, a Participant’s Accounts shall at all times remain
subject to the general creditors of the Employer.

4. ALLOCATION OF FUNDS.

(a) PRE-2005 GRANDFATHERED ACCOUNT. Employer contributions shall be credited to a
Participant’s respective Accounts in accordance with this Section. Pre-2005 contributions shall be
credited to a Pre-2005 Grandfathered Account, and Post-2004 contributions shall be credited to a
Post-2004 Account. The total of the Participant’s respective Accounts will be adjusted from time
to time to reflect (i) distributions; (ii) the performance of the investments; (iii) credited or
debited with the increase or decrease in the realized net asset value or credited interest, as
applicable, from the designated investments, if any.

(b) SEPARATE PARTICIPANT ACCOUNTS. The Employer shall establish and maintain separate
Participant Accounts for each Participant.

(c) DEEMED INVESTMENT DIRECTIONS OF PARTICIPANTS. Subject to such limitations as may from
time to time be required by the Plan, the Employer or applicable law, the Participant may direct
the Employer in writing as to how the funds held in the Participants Accounts are to be invested
from time to time. When such written directions are given, the Employer may invest the funds
accordingly, but is not so required.

(d) POST-2004 ACCOUNTS. Post-2004 Accounts are intended to comply, and provisions concerning
the administration of such Accounts shall be construed in a manner consistent with the provisions
of Code Section 409A, including any rule or regulation promulgated thereunder. The provisions
governing the administration of Post-2004 Accounts shall not be deemed applicable to Pre-2005
Grandfathered Accounts or to constitute a material modification with respect to these
“grandfathered” accounts. In the event that any provision of this Plan would cause an amount
hereunder to be subject to tax under the Code prior to the time such amount is paid to a
Participant, such provision shall, without the necessity of further action by the Committee, be
deemed null and void.

5. DISTRIBUTION OF BENEFITS.

(a) PRE-2005 GRANDFATHERED ACCOUNT. The Participant’s Pre-2005 Grandfathered Account shall
not be distributed until the occurrence of such condition specifically provided below, and each of
which shall be construed as a condition precedent to any distribution being required under the
terms of this Plan.

(b) RETIREMENT OF EMPLOYEE. For Pre-2005 Grandfathered Accounts, the balance of a
Participant’s Accounts shall be distributed to the Participant (or his designated Beneficiary upon
the occurrence of both of the following: (i) the Employee’s written notice of retirement or
termination of employment; and, (ii) the Employee attaining the Normal Age of Retirement. At the
election of the Participant, in lieu of receiving the remaining balance of the Participant’s
Accounts, the Participant may receive the insurance policy held by the Employer for the
Participant’s Accounts, net of a distribution of cash value sufficient to pay the taxes on the
receipt of the policy. Such distribution shall occur unless otherwise agreed to in writing by the
Employer and the Participant.

(c) DISABILITY OF THE PARTICIPANT. If a Participant becomes disabled, the Employer will
distribute the Participant’s Accounts. “Disability” means the Participant (1) is unable to engage
in any substantial gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a continuous
period of not less than 12 months; or (2) is, by reason of any medically determinable physical or
mental impairment which can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months, receiving income replacement benefits for a period of
not less than three months under an accident and health plan covering employees of the
Participant’s Employer.

For Pre-2005 Grandfathered Accounts, distribution upon disability shall occur unless otherwise
agreed to in writing by the Employer and the Participant.

(d) DISTRIBUTIONS ON DEATH. Upon the death of the Participant, a death benefit shall be paid
by the Employer to the Participant’s Beneficiary(-ies). The death benefit shall be equal to the
greater of the face amount of the insurance policy shown below or the cash value of the
Participant’s Account.

	 	 	 	 	 
	Participant	 	Death Benefit
	R. Marc Langland
	 	$	500,000	 
	Christopher N. Knudson
	 	$	630,000	 
	Victor P. Mollozzi
	 	$	500,000	 
	Joseph M. Schierhorn
	 	$	500,000	 
	Robert L. Shake
	 	$	500,000	 
	Joseph M. Beedle
	 	$	500,000	 

(e) POST-2004 ACCOUNT. A Participant’s Post-2004 Account shall be 100% vested and
non-forfeitable at all times and shall become payable to the Participant on a specified date or the
date he terminates Employment.

All Participants must elect no later than December 31, 2008, to receive their
Post-2004 Account at a future specified date in a lump sum or in annual installments not to exceed
ten (10) years.

New Participants after December 31, 2008, must elect at the time they become a Participant to
receive their Post-2004 Account at a future specified date in a lump sum or annual installments not
to exceed ten (10) years. If the Participant elects a lump sum the Participant may receive the
insurance policy held by the Employer for the Participant’s Accounts, net of a distribution of cash
value sufficient to pay the taxes on the receipt of the policy.

A Participant may later elect at least twelve (12) months prior to the date on which the
Participant’s distribution for his Post-2004 Account would otherwise commence to change the
specified future distribution date on which payments were scheduled to begin, provided that the new
specified future distribution date is a date that is at least five (5) years later than the
Participant’s original commencement date for distribution of his Post-2004 Account.

If a Participant is a Key Employee as of the date on which he or she ceases to be employed by
the Company (or as of such other date as may be prescribed under Code Section 409A), then in no
event shall such Participant’s first payment date be less than six (6) months after the date of
such Participant’s cessation of employment. For this purpose a “Key Employee” shall be an employee
described in Code Section 416(i), as may be modified by Code Section 409A.

(f) DISTRIBUTIONS FOR UNFORESEEABLE EMERGENCY.

(i) In the event of an Unforeseeable Emergency of the Participant, the Participant may apply
in writing to the Compensation Committee for the distribution of all or any part of the
Participant’s Accounts. The Participant shall set forth the hardship.

(ii) The Compensation Committee shall consider the circumstances of the request and the best
interests of the Participant and his family and shall have the right, in its sole discretion, if
applicable, to allow such distribution, or, if applicable, to direct a distribution of part of the
amount requested, or to refuse to allow any distribution.

(iii) Upon a finding of Unforeseeable Emergency, the Employer shall make the appropriate
distribution to the Participant from the Participant’s Accounts. In no event shall the aggregate
amount of the distribution exceed either the full value of the Participant’s Accounts or the amount
determined by the Employer to be necessary to alleviate the Participant’s Unforeseeable Emergency
(which Unforeseeable Emergency may be considered to include any taxes due because of the
distribution occurring because of this Section), and that it is not reasonable available from other
resources of the Participant.

(iv) A hardship distribution shall be made only with the written consent of the Employer’s
board of director’s compensation committee.

(g) CHANGE IN CONTROL. Unless otherwise agreed to in writing by the Employer and the
Participant, if there is a change in the control of the Employer, then the entire remaining balance
of that Participant’s Accounts shall be distributed to the Participant. For purposes of this
Section, a “change of control” shall occur when: any one person, or more than one person acting as
a group, acquires ownership of stock of the Employer, that together with stock held by such person
or group, constitutes more than 50% of the total fair market value or total voting power of the
stock of such corporation. However, if that person or group already owns more than 50% of the
total fair market value or total voting power of the stock of the Employer, the acquisition of
additional stock by the same person or group is not considered a Change in Control. Persons will
be considered to be acting as a group if they are owners of a corporation that enters into a
merger, consolidation, purchase or acquisition of stock, or similar business transaction with the
Employer.

“Change in Control” also means the date that any unrelated person or group acquires more than
the 50% of the assets of the Employer that have a total gross fair market value equal to more than
50% of the total gross fair market value of all of the assets of the Employer immediately prior to
such acquisition. Gross fair market value means the value of the assets of the Employer, or the
value of the assets being disposed of, determined without regard to any liabilities associated with
such assets. Whether a person or group is unrelated to the Employer is determined in accordance
with Code Section 409A and applicable IRS guidance.

The Employer shall determine whether a change in control has occurred.

(h) METHOD OF PAYMENT. Unless otherwise agreed to in writing by the Employer and the
Participant, all distributions from the Participant’s Accounts shall be made in cash or by a
transfer of funds from the Employer to or for the benefit of the Participant, as so directed by the
Participant. Any payment due hereunder that is not paid out of the Participant’s Accounts shall be
by the Employer from its general assets.

(i) TERMINATION. After all funds held in the Participant Accounts have been distributed
pursuant to the above, the interest of the Participant in the Plan shall terminate.

(j) INCOME TAXES ON DISTRIBUTIONS. The Participant shall be solely responsible for the
payment of all applicable federal and state income related taxes on amounts distributed to him. At
the election of the Participant, the taxes maybe withheld by the Employer at the time of
distribution.

6. BENEFICIARIES; EMPLOYEE DATA. The Participant may designate any person or persons (who may
be named contingently or successively) to receive such benefits as may be payable under the Plan
upon or after the Participant’s death, and such designation may be changed from time to time by the
Participant filing a new designation. Each designation will revoke all prior designations by the
Employee, and shall be in a form prescribed by the Employer, and will be effective only when filed
in writing with the Employer during the Employee’s lifetime. The written designation may take a
form similar to attached Exhibit “A.”

(a) In the absence of a valid Beneficiary designation, or if, at the time any benefit payment
is due to a Beneficiary, there is no living Beneficiary validly named by the Employee, the Employer
shall pay any such benefit payment to the Employee’s spouse, if then living, but, if none, then to
the Employee’s estate.

(b) In determining the existence or identity of anyone entitled to a benefit payment, the
Employer may rely conclusively on information supplied by the Employee’s personal representative or
administrator. If a question arises as to the existence or identity of anyone entitled to receive
a benefit payment, or if a dispute arises with respect to any such payment, then, notwithstanding
the foregoing, the Employer, in its sole discretion, may distribute such payment to the Employee’s
estate or may take such other action as the Employer deems to be appropriate.

7. ADMINISTRATION.

(a) ADMINISTRATIVE AUTHORITY. Except as otherwise specifically provided herein, the Employer
board of director’s compensation committee shall have the sole responsibility for and the sole
control of the operation and administration of this Plan and shall have the power and authority to
take all action and to make all decisions and interpretations that may be necessary or appropriate
in order to administer and operate the Plan, including, without limiting the generality of the
foregoing, the power, duty, and responsibility to:

(i) Resolve and determine all disputes or questions arising under the Plan, including the
power to determine the rights of the Employee and Beneficiaries, and their respective benefits, and
to remedy any ambiguities, inconsistencies, or omissions in the Plan.

(ii) Adopt such rules of procedure and regulations as in its opinion may be necessary for the
proper and efficient administration of the Plan and as are consistent with the Plan.

(iii) The Employer may authorize one or more persons to execute any certificate or document on
behalf of the Employer, in which event any person notified by the Employer of such authorization
shall be entitled to accept and conclusively rely upon any such certificate or document executed by
such person as representing action by the Employer until such third person shall have been notified
of the revocation of such authority.

(b) PAYMENT OF FEES, EXPENSES AND TAXES.

(i) All income taxes generated from a distribution to the Employee (or Beneficiaries), shall
be paid either out of the Participant’s Accounts or directly by the Employee-Participant. All
income taxes generated as a result of accumulated but not distributed income, if any, shall be paid
by the Employer out of its own funds.

(ii) All other expenses incurred in the administration and operation of the Plan shall be paid
by the Employer out of its own funds.

(c) CLAIMS PROCEDURE. Any person claiming a benefit under the Plan (a Claimant) shall present
the claim, in writing, to the Employer, and the Employer shall respond in writing. If the claim is
denied, the written notice of denial shall state, in a manner calculated to be understood by the
claimant:

(i) The specific reason or reasons for the denial, with specific references to the Plan
provisions on which the denial is based; and,

(ii) A description of any additional material or information necessary for the Claimant to
perfect his or her claim and an explanation of why such material or information is necessary.

8. AMENDMENT.

(a) RIGHT TO AMEND. The Employer, by written instrument executed by the Employer, shall have
the right to amend the Plan at any time and with respect to any provisions hereof, and all parties
hereto or claiming any interest hereunder shall be bound by such amendment; provided however, that
no such amendment shall deprive a Participant or a Beneficiary of a right provided under the terms
of this Plan or the Participant’s Accounts.

(b) AMENDMENTS TO ENSURE PROPER CHARACTERIZATION OF PLAN. Notwithstanding the above, the Plan
may be amended by the Employer at any time, retroactively if required, if found necessary, in the
opinion of the Employer, in order to ensure that the Plan is characterized as a top-hat plan of
deferred compensation maintained for a single member of management or highly compensated employee
as described under ERISA Sections 201(2), 301 (a)(3), and 401 (a)(1) and to conform the Plan to the
provisions and requirements of any applicable law (including ERISA and the Code). No such
amendment shall be considered prejudicial to any interest of an Employee or a Beneficiary
hereunder.

Notwithstanding the foregoing, any termination of the Plan by the Committee shall be subject
to the provisions of Code Section 409A and applicable regulations regarding restrictions on the
Board’s right to terminate the Plan and to distribute Post-2004 Accounts.

9. MISCELLANEOUS.

(a) LIMITATIONS ON LIABILITY OF EMPLOYER. Neither the establishment of the Plan or any
modification thereof, nor the creation of any Accounts under the Plan, nor the payment of any
benefits under the Plan shall be construed as giving to any other employee or any other person any
legal or equitable right against the Employer or any officer thereof, except as provided by law or
by any specific Plan provision. The Employer does not in anyway guarantee any Employee’s Accounts
from loss, depreciation or decline in value, whether caused by poor investment performance of a
deemed investment or the inability to realize upon an investment due to an insolvency affecting an
investment vehicle or any other reason. In no event shall the Employer, any employee, officer, or
director of the Employer, be liable to any person on Accounts of any claim arising by reason of the
Plan or of any instrument or instruments implementing its provisions, or for the failure of the
Employee, Beneficiary, or other person to be entitled to any particular tax consequences with
respect to the Plan, or any credit or distribution hereunder.

(b) CONSTRUCTION. If any provision of the Plan is held to be illegal or void, such illegality
or invalidity shall not affect the remaining provisions of the Plan, but shall be fully severable,
and the Plan shall be construed and enforced as if said illegal or invalid provision had never been
inserted herein. For all purposes of the Plan, where the context admits, the singular shall
include the plural, and the plural shall include the singular. Headings of Articles and Sections
herein are inserted only for convenience of reference and are not to be considered in the
construction of the Plan. The laws of the State of Alaska shall govern control and determine all
questions of law arising with respect to the Plan and the interpretation and validity of its
respective provisions, except where those laws are preempted by the laws of the United States.
Participation under the Plan will not give any Employee the right to be retained in the service of
the Employer nor any right or claim to any benefit under the Plan unless such right or claim has
specifically accrued hereunder.

(i) The Plan is intended to be and at all times shall be interpreted and administered so as to
qualify as an unfunded non-qualified deferred compensation plan, and no provision of the Plan shall
be interpreted so as to give the Employee-Participant any right in any assets held pursuant to this
Plan which right is greater than the rights of a general unsecured creditor of the Employer.

(c) SPENDTHRIFT PROVISION. No amount payable to the Employee or a Beneficiary under the Plan
will, except as otherwise specifically provided by law, shall be subject in any manner to
anticipation, alienation, attachment, garnishment, sale, transfer, assignment (either at law or in
equity), levy, execution, pledge, encumbrance, charge or any other legal or equitable process, and
any attempt to do so will be void; nor will any benefit be in any manner liable for or subject to
the debts, contracts, liabilities, engagements, or torts of the person entitled thereto. Further,
the withholding of taxes from Plan benefit payments; the recovery under the Plan of overpayments of
benefits previously made to a Employee or Beneficiary, if applicable, the transfer of benefit
rights from the Plan to another plan, or the direct deposit of benefit payments to an Accounts in a
banking institution (if not actually part of an arrangement constituting an assignment or
alienation) shall not be construed as an assignment or alienation.

(i) In the event that any Employee’s or Beneficiary’s benefits hereunder are garnished or
attached by order of any court, the Employer may bring an action or a declaratory judgment in a
court of competent jurisdiction to determine the proper recipient of the benefits to be paid under
the Plan. During the pendency of said action, any benefits that become payable shall be held as
credits to the Employee’s or Beneficiary’s Accounts or, if the Employer prefers, paid into the
court as they become payable, to be distributed by the court to the recipient as the court deems
proper at the close of said action.

This Amended Supplemental Executive Retirement Deferred Compensation Plan has been duly
executed by the Company’s authorized representative this 1st_ day of May,
2008, to be effective as of January 1, 2005.

	 	 	 
	WITNESS

	 	NORTHRIM BANK
	/s/ Susan E. Stenstrom     

	 	By: /s/ Ronald A. Davis     
	 

	 	 
	Print Name: Susan E. Stenstrom     

	 	Ronald A. Davis

Its: Chairman, Compensation Committee

2EX-10.64

Exhibit 10.64

SETTLEMENT AGREEMENT AND GENERAL RELEASE

This Settlement Agreement and General Release (the “Agreement”) is entered into this
2nd day of May 2008 between Robert Gregg (“Gregg”) and NationsHealth, Inc. (the
“Company” or “NationsHealth”) (collectively the “Parties”).

WHEREAS, the Parties are parties to that certain Separation Agreement and General Release,
dated December 16, 2005 (the “Separation Agreement”), pursuant to which Gregg had certain
put rights, including the right to deliver a Put Notice (as defined in the Separation Agreement) to
the Company;

WHEREAS, on April 4, 2007, Gregg delivered a Put Notice (the “Put Notice”) to the
Company, whereby Gregg put $750,000 worth of the Company’s common stock, par value $0.0001 per
share (the “Common Stock”), representing 500,000 shares of Common Stock, pursuant to the
terms of the Separation Agreement. On or about July 16, 2007, 288,000 shares of Common Stock were
transferred to the Robert Gregg Revocable Trust Dated December 18, 2000 (the “Gregg Trust”)
by RGGPLS, LLC (f/k/a RGGPLS Holding, Inc.) (the “Stock Transfer”). On July 16, 2007,
Gregg executed an Acknowledgement (the “Acknowledgement”), pursuant to which Gregg
acknowledged that the proceeds from any sale of shares of Common Stock that Gregg received as part
of the Stock Transfer to any third party shall satisfy a portion of the Company’s put obligation
pursuant to the terms and conditions set forth in the Separation Agreement, subject to the Company
satisfying any Put Shortfall (as defined in the Acknowledgement); and

WHEREAS, the Parties desire to provide for the terms of the Company’s payments to Gregg in
connection with the Put Notice, and terminate any further obligations of the Company under the Put
Notice and Section 2 of the Separation Agreement, pursuant to the terms of this Agreement.

NOW, THEREFORE, in consideration of the promises and conditions set forth herein, each of the
Parties agree as follows:

1. The above recitals are true and correct.

2. The Put Shortfall resulting from the sale of the 275,880 shares of Common Stock received by
Gregg as part of the Stock Transfer equals $213,203.55 (the “Prior Shortfall Amount”). The
Prior Shortfall Amount shall be paid by the Company to Gregg or his designee(s) pursuant to the
following payment schedule (the “Prior Shortfall Payment Schedule”):

	 	 	 	 	 
	Date	 	Amount
	Date hereof
	 	$	90,000.00	 
	Date hereof
	 	$	39,000.00	 
	June 1, 2008
	 	$	39,000.00	 
	July 1, 2008
	 	$	39,000.00	 
	August 1, 2008
	 	$	6,203.55	 

Subject to Paragraph 4(a) below, no interest shall accrue on any unpaid amounts of the Prior
Shortfall Amount.

3. (a) If the closing of any Change of Control (as defined below) occurs before the purchase
of the 224,120 shares of Common Stock from Gregg pursuant to Section 3(b) below, at such closing,
the Company shall pay Gregg or his designee(s) an amount equal to (x) 224,120, multiplied by, (y)
the difference between (A) $1.50, and (B) the consideration received by Gregg for the sale of such
shares in such Change of Control, as finally determined.

(b) The Company shall either (x) arrange for the sale of 224,120 shares of Common Stock held
by Gregg (or his related trust entities), or (y) purchase 224,120 shares of Common Stock from Gregg
at the closing market price of such shares of Common Stock on the date of purchase by the Company,
in either case, on or before September 1, 2008. Gregg or his designee shall receive the proceeds
of such purchase, either by a third-party or the Company, on the date of such sale. The Parties
anticipate that the proceeds of the sale of the 224,120 shares of Common Stock shall be less than
$1.50 per share of Common Stock (the “Subsequent Shortfall”). The Company agrees to pay
Gregg or his designee(s) the amount of the Subsequent Shortfall as follows: on the first day of
each calendar month, commencing on August 1, 2008, the Company shall pay Gregg an amount equal to
the lesser of (x) the Subsequent Shortfall, or (y) $40,000, until the Subsequent Shortfall is fully
repaid. Notwithstanding the foregoing, in the event that (i) the sale of these 224,120 shares of
Common Stock does not occur prior to August 1, 2008 and (ii) the proceeds of such sale are not less
than $1.50 per share of Common Stock such that there is no Subsequent Shortfall, Gregg agrees to
promptly repay to the Company any payments made to him pursuant to this Section 3(b).

4. (a) In the event the Company fails to make any payment required under Paragraph 2 or 3
above or Paragraph 4(b) below when due and such failure is not cured within five (5) days after
written notice thereof is provided by Gregg to an officer of the Company, (i) all unpaid portions
under such Paragraph shall bear interest at the rate of 12% per annum, compounded daily, from the
date of such failure and (ii) such unpaid portions, together with any such interest thereon, shall
become immediately due and payable by the Company; provided, that in no event shall the interest
rate exceed the maximum rate allowable under law.

(b) In the event (i) the Company sells all or substantially all of its assets or enters into
any transaction or series of transactions whereby holders of its voting securities immediately
prior to such transaction(s) do not continue to own a majority of the Company’s (or its
successor’s) outstanding voting securities immediately after such transaction(s), (ii) of a
Bankruptcy Event (as defined below) (each a “Change of Control”) or (iii) any
representation made by the Company pursuant to Paragraph 4(d) below is or becomes untrue and in
some manner negatively impacts the Company’s ability to pay, or Gregg’s ability to receive or
maintain, the payments required by this Agreement, all unpaid portions under Paragraphs 2 and 3
above (together with any interest that has accrued under Paragraph 4(a) above) shall become
immediately due and payable by the Company. For purposes of this Paragraph 4(b), “Bankruptcy
Event” shall mean the occurrence of any of the following:

(1) The Company shall (i) apply for or consent to the appointment of a
receiver, trustee, liquidator or custodian of itself or of all or a substantial part
of its property, (ii) be unable, or admit in writing its inability, to pay its debts
generally as they mature, (iii) make a general assignment for the benefit of its or
any of its creditors, (iv) be dissolved or liquidated in full or in part, (v)
commence a voluntary case or other proceeding seeking liquidation, reorganization or
other relief with respect to itself or its debts under any bankruptcy, insolvency or
other similar law now or hereafter in effect or consent to any such relief or to the
appointment of or taking possession of its property by any official in an
involuntary case or other proceeding commenced against it, or (vi) take any action
for the purpose of effecting any of the foregoing; or

(2) Proceedings for the appointment of a receiver, trustee, liquidator or
custodian of the Company or of all or a substantial part of the property thereof, or
an involuntary case or other proceedings seeking liquidation, reorganization or
other relief with respect to the Company or the debts thereof under any bankruptcy,
insolvency or other similar law now or hereafter in effect shall be commenced and an
order for relief entered or such proceeding shall not be dismissed or discharged
within forty-five (45) days of commencement.

(c) Each payment by the Company pursuant to this Agreement shall be made without set-off or
counterclaim by the Company and shall be made in lawful currency of the United States of America
and in immediately available funds by wire transfer to an account designated by Gregg. Further,
the Company waives presentment, demand, protest or notice of any kind in connection with any such
payment (except as specifically required by this Agreement) .

(d) The Company represents and warrants to Gregg as follows:

(1) The Company has all power and authority to execute, deliver and perform this
Agreement and to consummate and perform each of the transactions contemplated hereby, and
each of the transactions contemplated hereby have been duly authorized by all requisite
action of the Company.

(2) Upon execution and delivery of this Agreement by the Company, this Agreement shall
constitute the legal, valid and binding obligation of the Company, enforceable in accordance
with its terms, except to the extent that its enforcement is limited by bankruptcy,
insolvency, reorganization or other laws relating to or affecting the enforcement of
creditors’ rights generally and by general principles of equity.

(3) No consent, approval or authorization of, or registration, qualification or filing
with, any federal, state or local governmental or regulatory authority, or any other person,
is required to be made by the Company in connection with the execution, delivery or
performance of this Agreement or the consummation or performance by the Company of the
transactions contemplated hereby.

(4) The execution, delivery and performance by the Company of this Agreement and the
consummation by the Company of the transactions contemplated hereby do not violate,
contravene, trigger any rights or conflict with or require any consent under the Company’s
governing documents or any provision of any agreement, instrument, law, regulation,
judgment, injunction, order or decree binding upon or applicable to the Company or its
properties.

5. Subject to the compliance by the Company of its obligations under this Agreement, Gregg
shall have no further, and expressly waives, any additional or other rights to put shares of Common
Stock to the Company, regardless of whether such rights are established, under the Separation
Agreement or any prior written agreement with the Company.

6. (a) Subject to the last sentence of this paragraph, the compliance in all material respects
by the Company of its obligations under this Agreement and the General Release and
Non-Disparagement Agreement, of even date herewith (the “Company Release”), by and among
the Company, Gregg Trust, Pamela Fay Gregg, and Pamela Fay Gregg and Kathryn G. Pincus as trustees
of the Exempt Descendants Trust established under that certain unrecorded trust agreement known as
the Robert Gregg 2004 Multigenerational Trust, and the compliance in all material respects by the
Company Parties (as such term is defined in the RGGPLS Release, which is defined below) of each of
their obligations under the General Release and Non-Disparagement Agreement (the “RGGPLS
Release”), of even date herewith, by and among the Gregg Parties (as such term is defined in
the RGGPLS Release) and such Company Parties, in consideration of the payment and mutual promises
and covenants set forth in this Agreement, Gregg, on behalf of himself, his heirs, successors,
current and former agents, representatives, attorneys, assigns, executors, trusts, beneficiaries,
and administrator, hereby releases and forever discharges NationsHealth and each and all of its
current and former parents, divisions, subsidiaries and affiliates, attorneys, stockholders,
employees, representatives and agents and each and all of their predecessors, successors, assigns,
officers, directors, managers, trustees and members (collectively, the “NationsHealth
Group”), from any and all charges, complaints, claims, liabilities, obligations, promises,
agreements, controversies, damages, actions, causes of action, suits, rights, demands, costs,
losses, debts and expenses (including attorneys’ fees) of any nature whatsoever, whether in law or
in equity, which Gregg now has or ever may have had through the date hereof against the
NationsHealth Group, including, but not limited to, any and all matters related in any way to
Gregg’s direct or indirect equity interest in NationsHealth, the Separation Agreement and any other
contractual or tort claims relating to Gregg’s direct or indirect equity interest in NationsHealth
and Gregg’s separation from employment with NationsHealth. Notwithstanding the foregoing, nothing
in this provision shall waive or supercede any obligations under this Agreement, the Company
Release, the RGGPLS Release, or the Tag-Along and Piggyback Rights Agreement (the “Tag-Along
and Piggyback Rights Agreement”), of even date herewith, by and among the Holders (as such term
is defined therein) and the RGGPLS Parties (as such term is defined therein), or release or waive
any obligations under Paragraphs 3(b) and 5 of the Separation Agreement.

(b) Subject to the last sentence of this paragraph and the compliance in all material respects
by Gregg of his obligations hereunder and the RGGPLS Release, and the compliance in all material
respects by the Gregg Parties under the RGGPLS Release and the Company Release, in consideration of
the payment and mutual promises and covenants set forth in this Agreement, NationsHealth on behalf
of itself and each and all of its current and former parents, divisions, subsidiaries and
affiliates (collectively, the “NationsHealth Releasors”), hereby releases and forever
discharges Gregg and each and all his heirs, successors, current and former agents,
representatives, attorneys, assigns, executors, beneficiaries, and administrators, from any and all
charges, complaints, claims, liabilities, obligations, promises, agreements, controversies,
damages, actions, causes of action, suits, rights, demands, costs, losses, debts and expenses
(including attorneys’ fees) of any nature whatsoever, whether in law or in equity, which the
NationsHealth Releasors now have or ever may have had through the date hereof against the Gregg,
including, but not limited to, any and all matters related in any way to Gregg’s direct or indirect
equity interest in NationsHealth and Gregg’s separation from NationsHealth. Notwithstanding the
foregoing, nothing in this provision shall waive or supercede any obligations under this Agreement,
the Company Release, the RGGPLS Release, the Tag-Along and Piggyback Rights Agreement, the Lock-Up
Agreement (as defined below) or the Irrevocable Proxy in favor of RGGPLS, of even date herewith,
binding on each of the Holders (as such term is defined therein), nor shall it release Gregg from
any criminal acts impacting the Company or willful misconduct by Gregg of which the Company is not
aware or should not have been aware at the time of execution of this Agreement that has a material
adverse effect on the Company.

7. Gregg agrees that he and his agents will not publicize or disclose, directly or indirectly,
the existence of this Agreement, the terms hereof, or the circumstances giving rise to the
Agreement, to anyone other than Gregg’s attorney, accountant, financial advisor and members of his
immediate family or as required by law. Gregg further agrees that he will advise any individual to
whom the terms, conditions or existence of this Agreement have been disclosed of the
confidentiality requirements of this paragraph and that he will use his best efforts to ensure that
the confidentiality requirements are complied with in all respects.

8. Neither Party shall make or cause to be made, any written (including, but not limited to,
any e-mails or internet postings, remarks or statements) or verbal assertions, statements, or other
communications regarding such other Party (including all parents, subsidiaries, divisions of
NationsHealth) or such other Party’s business or operations, which may be in any manner whatsoever
defamatory, detrimental, disparaging or unfavorable to the other Party. Such restriction shall
extend to all matters relating to such Party (including all parents, subsidiaries, divisions of
NationsHealth), including all personal and business matters of such Party (including all parents,
subsidiaries, divisions of NationsHealth). Notwithstanding the foregoing, Gregg shall not be
prohibited by the foregoing sentences from providing or presenting objective, factual information
about the Company and its management to the management of the Company or to any members of the
Board of Directors of the Company, provided, however, (a) Gregg shall not be permitted to make
disparaging or negative personal, character attacks or statements concerning any officer, employee
or director of the Company in providing such information or making such presentation to such
management or member of the Board of Directors of the Company, and (b) nothing in this Section 8
shall be construed as providing any rights to Gregg to attend meeting of, or make presentations to,
the Board of Directors of the Company. The Parties acknowledge that damages at law would be an
inadequate remedy for the breach by either Party of any of the provisions of this Paragraph 8, and
agree that in the event of such breach such Party may obtain temporary and permanent injunctive
relief restraining the violating Party from such breach, and, to the extent permissible under the
applicable statutes and rules of procedure, a temporary injunction may be granted immediately upon
the commencement of any such suit. Nothing contained herein shall be construed as prohibiting the
Parties from pursuing any other remedies available at law or equity for such breach or threatened
breach of Paragraph 8, or for any breach or threatened breach of any other provision of this
Agreement. Each of the Parties understands and agrees that its covenant contained in this Paragraph
8 serves as material inducement for the Parties to enter into this Agreement and that its
obligations under this Paragraph 8 survive the termination of this Agreement. Further, Gregg
understands and agrees that his breach of the obligations set forth in this Paragraph 8 would be a
material breach of this Agreement, entitling the Company to all available remedies at law and
equity.

9. Gregg agrees to take all reasonable steps to assign to the Company all of his interests in
the internet domain names: (a) www.uspgi.com and (b)
www.unitedstatespharmaceuticalgroup.com.

10. On the date hereof, the Company shall pay attorney’s fees and costs actually incurred by
Gregg in connection with the negotiation and execution of this Agreement, as well as any other
matters relating to the prior discussions and negotiations between the Parties since late January
2008, up to a maximum amount of $65,000.

11. This Agreement constitutes a compromise settlement of disputed and contested matters
between the Parties and is the product of arms-length negotiations. It shall not be construed as
an admission of any sort by either of the Parties, nor shall it be used as evidence in a proceeding
of any kind, except one in which one of the Parties alleges breach of the terms of this Agreement
or one in which one of the Parties elects to use this Agreement as a defense to any claim.

12. This Agreement constitutes an integrated agreement, containing the entire understanding of
the Parties with respect to the matters addressed herein and, except as set forth in this
Agreement, no representations, warranties or promises have been made or relied on by the Parties.
This Agreement shall prevail over any prior communications between the Parties or their
representations relative to matters addressed herein.

13. Any claim, controversy, or dispute between Gregg and the Company (including, without
limitation, the Company’s affiliates, subsidiaries, officers, employees, representatives or agents)
arising out of or related to this Agreement (except as provided in Paragraph 8) shall be submitted
to and settled by arbitration before a single arbitrator in a forum of the American Arbitration
Association (“AAA”) located in Broward County in the State of Florida and conducted in accordance
with the National Rules for the Resolution of Commercial Disputes. In such arbitration: (a) the
arbitrator shall agree to treat as confidential evidence and other information presented by the
Parties to the same extent as Confidential Information must be held confidential by Gregg under the
terms of this Agreement, and (b) the arbitrator shall have ten (10) business days from the closing
statements or submission of post-hearing briefs by the parties to render a decision. All
AAA-imposed costs of said arbitration, including the arbitrator’s fees, if any, shall be borne by
the Company. The non-prevailing party, as determined by the arbitrator, shall pay the prevailing
party for all reasonable legal fees and costs incurred by the prevailing party in connection with
the enforcement of this Agreement, including those legal fees and costs incurred prior to the
institution of an arbitration proceeding. Any arbitration award shall be final and binding upon
the Parties, and any court having jurisdiction may enter a judgment on the award.

14. The Parties agree that a failure by any party at any time to require performance of any
provision of this Agreement shall not waive, affect, diminish, obviate or void in any way that
party’s full right or ability to require performance of the same, or any other provisions of this
Agreement, at any time thereafter.

15. This Agreement shall be interpreted, enforced and governed under the laws of the State of
Florida, without regard to conflict of laws principles.

16. Each Party agrees to take all reasonable steps necessary or advisable to effectuate the
purposes of this Agreement.

17. The Parties warrant and represent that they have read and understand the foregoing
provisions of this Agreement and that they and their respective signatories are fully authorized
and competent to execute this Agreement on their behalves. Gregg further warrants and represents
that he has not previously assigned or transferred any of the claims that are the subject of the
release contained herein.

18. The Parties agree that any and all payments made hereunder in respect of Common Stock
shall be accounted for in a manner expected to result in capital gains treatment of such payment
for the recipient(s) thereof.

19. The Company and Gregg acknowledge that, concurrent with execution of this Agreement, (a)
shares of Common Stock beneficially owned by the Gregg Trust and the Exempt Descendants Trust
established under that certain unrecorded trust agreement known as the Robert Gregg 2004
Multigenerational Trust (the “Gregg Shares”) are being distributed by RGGPLS to such
beneficial owners and registered in their respective names; (b) Gregg and such owners are entering
into the Tag-Along and Piggyback Rights Agreement; and (c) Gregg and such owners are entering into
the Lock-Up and Right of First Offer Agreement with RGGPLS (the “Lock-Up Agreement”). The
Company and Gregg agree (a) the Gregg Shares are not subject to any restrictions on sale or
transfer other than those restrictions contained in the Lock-Up Agreement and restrictions
generally applicable under securities laws (and shall contain a legend reflecting all such
restrictions), and (b) to take all reasonable steps necessary for holders to effects sales of the
Gregg Shares in a manner consistent with the terms of the Lock-Up Agreement and otherwise after
December 31, 2010, consistent with applicable securities laws, including without limitation,
facilitating the delivery of any necessary and appropriate legal opinions by the Company’s legal
counsel, and directing the transfer agent for the Company’s securities to register any Gregg Shares
in the name(s) or account(s) designated by the purchaser or transferee of such shares, as
appropriate.

[SIGNATURE BLOCKS APPEAR ON THE FOLLOWING PAGE]

IN WITNESS WHEREOF, the Parties hereto have caused this Settlement Agreement and General
Release to be duly executed and delivered as of the date first above written.

	 	 	 
	NATIONSHEALTH, INC.	 	 
	By: /s/ Timothy Fairbanks

	 	/s/ Robert Gregg
	 

	 	 
	Title: Chief Financial Officer

	 	ROBERT GREGG

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