Document:

exv10w55

 

Exhibit 10.55

ASYST TECHNOLOGIES, INC.

September 11, 2007

Dear Mr. Lowe

     This letter is to confirm the termination of your employment with Asyst Technologies, Inc., or
any of its direct and indirect subsidiary and affiliated entities (together, the “Company”). To
ensure that there are no ambiguities, this letter first explains in detail both your rights and
obligations and those of the Company upon termination of your employment. If, in exchange for a
release, you wish to accept additional benefits to which you would otherwise not be entitled,
indicate your agreement by signing, dating and returning the enclosed Release Agreement to me by
September 14, 2007.

     Your position and responsibilities as Senior Vice President, Global Customer Solutions Group
shall terminate as of September 14, 2007, and your employment with the Company will end effective
October 1, 2007. Thereafter, you will no longer be an employee of the Company. You will be paid
all earned and unpaid salary together with any accrued and unused PTO pay, less deductions required
or permitted by law in your final paycheck on October 1, 2007.

     Your coverage under the Company group health and benefit plans will end on October 1, 2007.
However, you will have the opportunity to exercise your option to continue the benefits under the
Company group health plans under COBRA after that date. You will be provided a benefits packet
containing information on your COBRA rights and conversion to a direct pay plan. Please call the
Company’s Human Resources Administrator if you have any questions about COBRA conversion.
Additionally, please keep Human Resources informed of any address changes in case we need to mail
you future W-2’s and other correspondences to your attention.

     Your obligations under the Confidential Information and Inventions Assignment Agreement or
similar agreement remain in effect. We have enclosed a copy of this agreement as Attachment
1 for your reference. You will also be required to sign a copy of Asyst’s Termination
Certificate as of your last day of employment, also included in Attachment 1.

     In addition to the foregoing to which you are entitled, Asyst is prepared to offer you
additional benefits to which you would otherwise not be entitled in exchange for an agreement to
release all claims known or unknown against the Company and its affiliates. If you wish to accept
such additional benefits in exchange for your release, your signature on the enclosed Release
Agreement will reflect your agreement. Before signing the Release Agreement, which is set forth
below, you are advised to consult an attorney. Please also note that even if you do sign the
Release Agreement, you may change your mind and revoke your Release Agreement and forego the
additional benefits, provided you notify me in writing within seven (7) days of your signing that
you no longer want the additional benefits described below.

	 	 	 	 	 
	 	 	 
	 	                                                   /s/ Steve Debenham
 	 
	 	Steve Debenham
 	 
	 	VP, General Counsel and Secretary 	 
	 

     Encl.

 

 

RELEASE AGREEMENT

     This Release Agreement (“Release”) is intended to constitute a binding agreement between you,
Alan S. Lowe (“Employee”), and Asyst Technologies, Inc., on behalf of its direct and indirect
subsidiary and affiliated entities (“Asyst” or the “Company”). Please review the terms carefully.
By signing below, you are agreeing to release all claims against Asyst in return for the benefits
provided herein. We advise you to consult with an attorney concerning its terms and obligations,
and the specific effect on your legal rights. This Release is deemed effective eight (8) days
after your signature on this Release (the “Effective Date”).

     1. As of September 14, 2007, your position and responsibilities as Senior Vice President,
Global Customer Solutions Group, shall terminate. You will be paid your current base salary and
continue to accrue PTO pay through September 14, 2007.

     2. Upon and in consideration of your acceptance, execution and continued observance of the
terms and conditions of this Release, Asyst agrees to provide you with the following additional
benefits to which you are not otherwise entitled unless you sign and do not timely revoke this
Release:

          (a) For the period from September 14, 2007 until September 30, 2007 (the “Transition Period”),
you shall remain an employee of Asyst, subject to the terms and conditions of this Release.
Effective September 30, 2007, your employment with Asyst shall automatically terminate (the
“Employment Termination Date”). You understand you have no recall rights;

          (b) During the Transition period, you shall be relieved of your day-to-day responsibilities as
an Asyst employee, but shall be reasonably available to provide transition assistance to Asyst, by
either e-mail or phone, as reasonably requested coordinated by Asyst’s C.E.O., including any
successor, and/or for such related or other projects as may be reasonably requested by the Company;

          (c) During the Transition Period, you shall continue to be paid your current base salary (less
payroll and other deductions and withholdings); however, during the Transition Period you shall not
accrue any further PTO or be eligible to participate in any Asyst compensation, bonus or equity
programs (including executive and MBO, profit sharing, 401K matching or ESPP programs);

          (d) Your current medical, health and insurance benefits shall continue, at Asyst’s expense,
during the Transition Period but will automatically terminate as of the Employment Termination
Date; and

          (e) During the Transition Period, you shall be allowed to accept and commence employment with
another employer; provided, however, that (x) the principle business of any such employer not
compete directly with Asyst in the business of semiconductor capital equipment and automated
material handling systems, and (y) such employment not unreasonably conflict during the Transition
Period with your obligations under subsection (b), above, and elsewhere under this Agreement.

     3. During the Transition Period, you will be entitled to reimbursement of reasonable business
expenses actually incurred in relation to any transition assistance you may be requested to
provide. Such expenses, including any travel, meals or cell phone usage, shall be submitted,

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reviewed and reimbursed pursuant to Asyst’s standard travel, expense and reimbursement
policies and procedures. Any use of credit or telephone cards, cellular phones, pagers, laptop
computers, PDAs, and other materials or equipment provided to you by or through Asyst will not be
authorized beyond your Employment Termination Date, and any expenses whatsoever incurred after the
Employment termination Date will not be eligible for reimbursement.

     4. Asyst will make reasonable efforts to provide you with voice mail access during the
Transition Period; however, normal telephone and all e-mail access shall be terminated as of
September 14, 2007.

     5. You shall only have the right to be paid your earned base salary through that Employment
Termination Date, but shall not be entitled or eligible to receive (or be deemed to have earned)
any additional compensation or accrued benefits (except to the extent expressly provided in this
Release Agreement). You understand that, except as provided herein, you will not be entitled to
any additional payments, severance, bonus or commission payments or other benefits from Asyst
associated with any claimed work or right to work beyond the Employment Termination Date. In
addition, to the extent that your accrued PTO balance is negative as of the Employment Termination
Date, you hereby agree, and direct and authorize Asyst to deduct appropriate amounts in lieu of
this negative accrued PTO balance from any final pay or payment due you in conjunction with your
employment or termination of your employment.

     6. You and Asyst agree that this Release is contractual in nature and not a mere recital, and
that this Release shall be interpreted as though drafted jointly by the Employee and Asyst.

     7. Unless to the extent expressly otherwise provided for in this Agreement, in conjunction
with your execution of this Release, if you have existing stock options or grants they will
continue to vest through September 30, 2007; however, your vesting shall cease automatically as of
that date and all such vesting shall be subject to the original terms and conditions of your option
grant and the Asyst stock option plan from which the grant issued. Unless to the extent expressly
otherwise provided for in this Agreement, in conjunction with your execution of this Release,
nothing herein shall operate to continue vesting, extend the original term of the options granted
to you or abridge Asyst’s rights to cancel options or repurchase shares, as provided in such option
or stock grant or the Asyst stock option plan from which the grant issued. Please refer to the
plan terms and conditions. Additional information regarding stock options is available. Contact
Stock Administration at 510-661-5208 for additional information.

     8. During the course of your employment with Asyst, you have had access to or have had
possession of confidential and proprietary information or materials of Asyst (including, but not
limited to, technical information, business plans, client, supplier and employee information,
telephone records or lists, and non-public financial information). You acknowledge and understand
that all such information or material constitutes confidential information of Asyst and/or its
customers and affiliates; you agree that you shall not retain and that you must return to Asyst all
originals and copies of such material. You further agree that you shall not use, disclose or
divulge any such material or other confidential or trade secret information of Asyst, its customers
or affiliates to any third party company, individual or institution without the direct written
authorization of Asyst’s C.E.O., and that your confidentiality obligations to Asyst are continuing
into the future regardless of termination of your employment. You further understand and agree
that your compliance with the terms, conditions and commitments set forth in the Termination
Certificate, as well as in other agreements you may have with the Company, is a material aspect of
the Company’s agreement to provide any severance or benefits you may receive in conjunction with
termination of your employment.

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     9. In consideration of these additional benefits, you, on behalf of your heirs, spouse and
assigns, hereby completely release and forever discharge Asyst, its past and present parent
companies, subsidiaries, affiliates, and each of their past and present agents, officers,
directors, shareholders, employees, attorneys, insurers, successors and assigns (collectively
referred to as “Released Parties”) from any and all claims, of any and every kind, nature and
character, known or unknown, foreseen or unforeseen, based on any act or omission occurring prior
to the date of your signing this Release, including but not limited to any claims arising out of
your offer of employment, your employment or termination of your employment with Asyst, or your
right to purchase, or actual purchase of shares of stock of the Company. The matters released
include, but are not limited to, any claims under federal, state or local laws, including but not
limited to claims arising under the Age Discrimination in Employment Act of 1967 (“ADEA”) as
amended by the Older Workers’ Benefit Protection Act (“OWBPA”), and any common law tort, contract
or statutory claims, and any claims for attorneys’ fees and costs.

     10. You understand and agree that this Release extinguishes all claims, whether known or
unknown, foreseen or unforeseen, except for those claims not released as expressly described below.
You expressly waive any rights or benefits under Section 1542 of the California Civil Code, or any
equivalent statute. California Civil Code Section 1542 provides as follows:

“A general release does not extend to claims which the creditor does
not know or suspect to exist in his or her favor at the time of
executing the release, which if known by him or her must have
materially affected his or her settlement with the debtor.”

You fully understand that, if any fact with respect to any matter covered by this Release is
found hereafter to be other than or different from the facts now believed by you to be true, you
expressly accept and assume that this Release shall be and remain effective, notwithstanding such
difference in the facts.

     11. The only claims not released through this Release are any claims that cannot be released
by law such as claims for unemployment insurance benefits, workers’ compensation benefits, and
claims relating to the validity of this Release under the ADEA as amended by the OWBPA. You also
understand that you may be a witness or provide information to governmental agencies related to
your employment, as allowed by law.

     12. You understand, represent and agree that:

	 	(a)	 	You are 40 years of age or over;
	 
	 	(b)	 	You have had 45 days to consider this Release and to consult an
attorney or other advisor before signing this Release;
	 
	 	(c)	 	You have read this Release in full and understand all of the
terms and conditions set forth herein;
	 
	 	(d)	 	You knowingly and voluntarily agree to all of the terms and
conditions set forth herein and intend to be legally bound by them;
	 
	 	(e)	 	The Company has informed you in writing to consult an attorney
before signing this Release, if you wish;

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	 	(f)	 	You may revoke this Release under the ADEA as amended by the
OWBPA and only if you do so within seven (7) days after signing it (in which
case you will forfeit in full and agree immediately to refund, return to and
reimburse Asyst any and all benefits provided to you under Paragraph 11, above
if already paid); and
	 
	 	(g)	 	This Release will not become effective or enforceable with
respect to claims arising under the ADEA, as amended by the OWBPA, until seven
(7) days after you have signed it.

     13. You represent that you have not filed any complaints, claims, grievances or actions
against any Released Parties in any state, federal or local court or agency, other than for
workers’ compensation benefits, unemployment insurance benefits or otherwise not subject by law to
your waiver or releases herein.

     14. You agree that you will not disclose voluntarily or allow anyone else to disclose either
the existence, reason for or contents of this Release without the Company’s prior written consent,
unless required to do so by law. Notwithstanding this provision, you are authorized to be a
witness or provide information to governmental agencies related to your employment, as allowed by
law. You also are authorized to disclose this Release to your spouse, attorneys and tax advisors
on a “need to know” basis, on the condition that they agree to hold the terms of the Release,
including all payments, in strictest confidence. You are further authorized to make appropriate
disclosures as required by law, provided that you notify the Company in writing of such legal
obligations to disclose at least five (5) business days in advance of disclosure. You further
agree to pay the Company $1,000 per occurrence and to indemnify and hold harmless the Company for
and against any and all costs, losses or liability, whatsoever, including reasonable attorney’s
fees, caused by you breach of the non-disclosure provisions.

     15. The parties agree that this Release shall be binding upon their successors and assignees.
Each represents that it has not transferred to any person or entity any of the rights released or
transferred through this Release. If a court of competent jurisdiction declares or determines that
any provision of this Release is invalid, illegal or unenforceable, the invalid, illegal or
unenforceable provision(s) shall be deemed not a part of this Release, but the remaining provisions
shall continue in full force and effect.

     16. Each party agrees that any differences, disputes or controversies between us arising from
this Release, and rights or obligations hereunder, or any liabilities asserted or arising from your
employment or its termination, shall be exclusively submitted to binding arbitration before an
independent and qualified arbitrator with the American Arbitration Association under the Employment
Arbitration Rules then in effect. Arbitration shall be the exclusive forum for any dispute, claim
or cause for disputes covered by this paragraph and the decision and award by the arbitrator shall
be final, binding upon and non-appealable by the parties, except as allowed by law, and may be
enforced by any state or federal court having jurisdiction. We each, to the fullest extent
permitted by law, waive any right or expectation against the other to trial or adjudication by a
jury of any claim, cause or action arising hereunder, or the rights, duties or liabilities created
thereby.

     Notwithstanding the above, we agree that each party, upon breach or threatened breach of
Paragraphs 10 and 21 of this Release, or claims relating to trade-secrets and proprietary
information, are excluded from this paragraph, and for which either party may seek all necessary
and proper relief, including, but not limited to, specific performance, from a court of competent
jurisdiction.

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     17. The laws of the State of California shall govern the construction and enforcement of this
Release, and any rights, obligations or liabilities hereunder, without regard to conflicts of laws
considerations.

     18. You further agree that for a period of six (6) months after the termination of your
employment with the Company, you shall not induce or attempt to induce any employee, agent or
consultant of the Company to terminate his or her association with the Company. The Company and
you agree that the provisions of this paragraph contain restrictions that are not greater than
necessary to protect the interests of the Company.

     19. To accept this Release, please sign and date this Release and return the original executed
document to Human Resources, Asyst Technologies, Inc., 46897 Bayside Parkway, Fremont, California
94538, no later than October 29, 2007.

     20. If you do not return a copy of the executed Release by that date, the offer of the
benefits described in Paragraph 2 and elsewhere of this Release will be automatically deemed
revoked.

     21. You understand that this Release constitutes the entire agreement between you and the
Company with respect to any matters referred to in this Release. This Release supersedes any and
all of the other agreements between you and Asyst, including any offer letter, change of control
agreement or other agreement, except for the Confidential Information and Inventions Assignment
Agreement and your Agreement to Arbitrate or similar agreements that you may have executed
previously in conjunction with your employment with Asyst, as well as the accompanying Termination
Certificate, which terms and conditions are incorporated herein by this reference and made a
material part of this Release, attached hereto as Attachment 1, which remains in full force
and effect. No other consideration, agreements, representations, oral statements, understandings
or course of conduct which are not expressly set forth in this Release should be implied or are
binding. You understand and agree that this Release shall not be deemed or construed at any time
or for any purposes as an admission of any liability or wrongdoing by either you or the Company.
Any modification of this Release, or change to the benefits offered hereunder, must be in writing
and executed in advance by you and Asyst, or else such notification will not be binding or
effective.

     22. In the event that you breach any of your obligations under this Release or as otherwise
imposed by contract or law, Asyst will be entitled to obtain all relief provided by law or equity.

     23. The parties agree and represent that they have not relied and do not rely upon any oral
representation or statement regarding the subject matter or effect of this Release made by any
other party to this Release or any party’s agents, attorneys or representatives.

I, THE UNDERSIGNED, HAVE HAD A SUFFICIENT OPPORTUNITY TO CONSIDER THIS RELEASE AND HAVE BEEN
ADVISED IN WRITING THAT I MAY CONSULT WITH AN ATTORNEY CONCERNING ITS TERMS AND EFFECT PRIOR TO
EXECUTING THIS RELEASE.

I, THE UNDERSIGNED, HAVE READ THIS RELEASE AND UNDERSTAND THAT I ENTER THIS RELEASE INTENDING TO
AND DO WAIVE, SETTLE AND RELEASE ALL CLAIMS I HAVE OR MIGHT HAVE AGAINST THE RELEASED PARTIES TO
THE FULL EXTENT PERMITTED BY LAW. I SIGN THIS RELEASE VOLUNTARILY AND KNOWINGLY.

ACKNOWLEDGED, UNDERSTOOD AND AGREED:

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	Date: 9/12/07 	 	/s/ Alan S. Lowe
 
	 	 	Alan Lowe 	 
	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Asyst Technologies, Inc.

 	 
	Date: 9/12/07 	 	By:  	/s/ Steve Debenham
 	 
	 	 	 	Steve Debenham 	 
	 	 	 	VP, General Counsel and Secretary 	 

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 ATTACHMENT 1

Confidential Information and Inventions Assignment Agreement, Agreement to Arbitrate and

Termination Certificate

-8-exv10w21

 

EXHIBIT 10.21

NORTHRIM BANK

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Originally Effective as of July 1, 1994

Amended Effective as of January 6, 2000,

January 8, 2004 and January 1, 2005

i

 

TABLE OF CONTENTS

Page

	 	 	 	 	 
	ARTICLE 1 DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	1.1 Account
	 	 	1	 
	1.2 Beneficiary
	 	 	1	 
	1.3 Code
	 	 	1	 
	1.4 Committee
	 	 	1	 
	1.5 Company
	 	 	1	 
	1.6 Early Retirement Date
	 	 	1	 
	1.7 ERISA
	 	 	2	 
	1.8 Normal Retirement Date
	 	 	2	 
	1.9 Participant
	 	 	2	 
	1.10 Plan
	 	 	2	 
	1.11 Retirement Plan
	 	 	2	 
	1.12 Trust
	 	 	2	 
	1.13 Trust Fund
	 	 	2	 
	1.14 Trustee
	 	 	2	 
	 
	 	 	 	 
	ARTICLE 2 ELIGIBILITY AND PARTICIPATION
	 	 	2	 
	 
	 	 	 	 
	ARTICLE 3 PRE-2005 SUPPLEMENTAL RETIREMENT BENEFIT
	 	 	2	 
	 
	 	 	 	 
	3.1 Pre-2005 Grandfathered Account
	 	 	2	 
	3.2 Amount
	 	 	3	 
	3.3 Form of Payment
	 	 	3	 
	3.4 Benefit Commencement
	 	 	3	 
	 
	 	 	 	 
	ARTICLE 4 POST-2004 SUPPLEMENTAL RETIREMENT BENEFIT
	 	 	3	 
	 
	 	 	 	 
	4.1 Post-2004 Account
	 	 	3	 
	4.2 Six Month Payment Delay for Key Employees
	 	 	4	 
	4.3 Code Section 409A
	 	 	4	 
	 
	 	 	 	 
	ARTICLE 5 SURVIVOR BENEFITS
	 	 	5	 
	 
	 	 	 	 
	5.1 Pre-2005 Grandfathered Account Death Benefit
	 	 	5	 
	5.2 Post-2004 Account Death Benefit
	 	 	5	 
	 
	 	 	 	 
	ARTICLE 6 GENERAL PROVISIONS
	 	 	5	 
	 
	 	 	 	 
	6.1 Right to Amend or Terminate
	 	 	5	 
	6.2 No Right of Employment
	 	 	5	 
	6.3 Plan Funding
	 	 	5	 
	6.4 Unsecured Benefit
	 	 	6	 
	6.5 Reporting
	 	 	6	 
	6.6 Trust Agreement
	 	 	6	 

 

Page

	 	 	 	 	 
	6.7 Administration
	 	 	6	 
	6.8 No Assignment
	 	 	6	 
	6.9 Binding Effect
	 	 	6	 
	6.10 Governing Law
	 	 	7	 
	 
	 	 	 	 
	ARTICLE 7 DUTIES UPON INSOLVENCY
	 	 	8	 
	 
	 	 	 	 
	7.1 Duty to Inform
	 	 	8	 
	7.2 Actions Required
	 	 	8	 
	7.3 Insolvency
	 	 	8	 

 

NORTHRIM BANK

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

     The purpose of this Supplemental Executive Retirement Plan (the “Plan”) is to award
individuals for their continued commitment to Northrim Bank (“Bank”), and to provide a supplemental
retirement benefit, since retirement benefits under Northrim Bank Retirement Plan have been limited
in recent years by Congress under the Internal Revenue Code. It is intended that this Plan will
assist in retaining and attracting individuals of exceptional ability by providing them with the
benefits provided hereunder.

     This Plan will be effective as of July 1, 1994.

ARTICLE 1

DEFINITIONS

     1.1 Account or Accounts means the record-keeping accounts maintained hereunder on the books
and records of the Company to record Participant’s benefits, as well as the increase in value
attributable to interest earned thereon, all as described hereafter.

     1.2 Beneficiary shall mean the individual(s) designed by the Participant on a form provided by
the Committee. If no individual is designated, the Beneficiary shall be: (i) the spouse, if the
participant is married on the date of death; or if unmarried, the Participant’s estate.

     1.3 Code shall mean the Internal Revenue Code of 1986, as amended from time to time, or any
succession thereto.

     1.4 Committee shall mean the Compensation Committee of the Board of Directors, which shall
administer the Plan in accordance with Section 4.7 hereof.

     1.5 Company shall mean Northrim Bank or any successor corporate entity. The Company may
delegate authority necessary to administer the Plan to any person or committee.

     1.6 Early Retirement Date shall mean the first day of any month between a Participant’s 55th
and 65th birthdays, provided the Participant has then completed at least 5 years of vesting service
under the terms of the Company’s Savings Incentive Plan.

1

 

     1.7 ERISA shall mean the Employee Retirement Income Security Act of 1974, as amended, and any
regulations issued pursuant thereto.

     1.8 Normal Retirement Date shall mean the Participant’s 65th birthday. No Participant shall
be forced to mandatorily retire merely because such Participant attains his or her Normal
Retirement Date.

     1.9 Participant shall initially mean those individuals listed on Exhibit “A” to this Plan.
Other individuals may be added from time to time with the consent of the Board of Directors of
Northrim Bank.

     1.10 Plan shall mean this Supplemental Executive Retirement Plan.

     1.11 Retirement Plan shall mean the Northrim Bank Defined Benefit Retirement Plan and Trust
Agreement as may be amended from time to time.

     1.12 Trust shall mean the Rabbi Trust Agreement entered into between the Company and the
Trustee, as amended from time to time, if adopted by the Board of Directors of the Company.

     1.13 Trust Fund shall mean the cash and other investments held and administered by the Trustee
in accordance with the provisions of the Trust and the Plan.

     1.14 Trustee shall mean the Committee or any duly appointed additional or successor corporate
or independent trustee appointed and acting in accordance with Paragraph 4.6 and Article 4 hereof
and the Trust Agreement.

ARTICLE 2

ELIGIBILITY AND PARTICIPATION

     Initially, the individuals listed on Exhibit “A” shall be the only eligible Participants under
this Plan. The Company may, in its sole discretion, select other eligible Participants from among
a select group of the Company’s management or highly compensated employees within the meaning of
Sections 201, 301 and 401 of ERISA.

     All such additional Participants, when added, shall be listed on Exhibit “A” to this Plan.

ARTICLE 3

PRE-2005 SUPPLEMENTAL RETIREMENT BENEFIT

     3.1 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.

 

     3.2 Amount. Upon attaining Normal Retirement Age, or Early Retirement Age, a supplemental
retirement benefit shall be payable under the terms of this Plan. The amount of such payment shall
be’ based on a contribution being credited annually pursuant to the terms of this Plan. Such
contributions shall be credited on January 1 to an account maintained on behalf of the Participant.
The account shall be further credited with interest compounded annually. Interest will be
credited for the year, or any portion thereof, as of January 1 based on the Bank’s average yield on
the Bank’s total assets, less a three year rolling average of net loan charge-offs expressed as a
percentage of average loans outstanding for the respective periods. The amount payable to the
Participant will be the sum of the contribution(s) plus accrued interest credited to such
Participant’s account.

     The amount of a Participant’s annual contribution and such Participant’s eligibility date for
such contribution shall be attached hereto as Exhibit “B”. Such exhibits shall be individualized
for each Participant and shall be numbered in consecutive order beginning with B-1.

     3.3 Form of Payment. The supplemental benefit from this Plan, as determined in Section 3.2,
shall be paid-in monthly installments as follows:

          (a) A calculation shall be made to convert the account balance payable under Section 3.2 to
equal installment payments payable over a period not to exceed fifteen (15) years, in accordance
with Participant’s election, or if no election is made, the period shall be fifteen (15) years.
The conversion shall be based upon the time period selected and the applicable interest rate in
effect as of the date of benefit commencement. For purposes of this paragraph, the applicable
interest rate will be fifty (50) basis points over the applicable U.S. Treasury Note Rate. The
applicable U.S. Treasury Note Rate will be the preceding twelve (12) month average, preceding the
commencement of payments, and will be the nearest quoted rate for a maturity representing
two-thirds of the installment pay-out period. For example, if the installment period is fifteen
(15) years, the applicable U.S. Treasury Note Rate will be the rate for a note whose term is
two-thirds of the fifteen (15) year installment period, i.e., a 10-Year U.S. Treasury Note. The
applicable interest rate will, therefore, be fifty (50) basis points over the prior average annual
rate for a 10-Year U.S. Treasury Note.

          (b) Notwithstanding the above, the Participant may elect to receive a lump sum payment of the
supplemental benefit under this Plan, as determined in Section 3.2. Such election must be
irrevocable and made at least 60 days before the date benefits would commence under Section 3.2 or
3.4.

     3.4 Benefit Commencement. A Participant’s Pre-2005 Supplemental Retirement Benefit shall
commence as soon as reasonably practicable following 91 days after the Participant’s termination of
employment with the Company, provided the Participant has attained Normal Retirement Age or Early
Retirement Age.

ARTICLE 4

POST-2004 SUPPLEMENTAL RETIREMENT BENEFIT

     4.1 Post-2004 Account. A Participant’s Post-2004 Account shall be 100% vested and
nonforfeitable at all times and shall become payable to the Participant upon the expiration of

 

the deferral period elected by the Participant’s annual election form. An initial election
form for his or her Post-2004 Account may provide that the deferral period will end on a specified
date or the date he ceases to be a Participant.

     Any deferral election for his or her Post-2004 Account to a specified future distribution date
must be for at least two Plan Years, so that the earliest specified future distribution date that a
Participant may elect will be January 1 following two Plan Years of deferral (counting the
Participant’s initial Plan Year of eligibility if he or she first becomes a Participant on a date
after January 1 of a Plan Year).

     Notwithstanding the foregoing, a Participant or former Participant may later elect at least 12
months prior to the date on which the Participant deferral period for his or her Post-2004 Account
would otherwise have ended to change the specified future distribution date on which payments will
commence, provided that election changes the specified future distribution date to a date that is
at least five (5) years later than the Participant’s deferral period for his or her Post-2004
Account would otherwise have ended.

     All Participants must elect no later than December 31, 2007 to receive their Post-2004
Account at the end of the Participant’s deferral period in a lump sum or in annual installments not
to exceed ten (10) years. New Participants after December 31, 2007 must elect at the time they
become a Participant to receive their Post-2004 Account at the end of the Participant’s deferral
period in a lump sum or in annual installments not to exceed ten (10) years. A Participant may
later elect at least twelve (12) months prior to the date on which the Participant’s deferral
period for his or her Post-2004 Account would otherwise have ended to change the form of payment
the Participant previously elected to a lump sum payment or a specified number of annual
installments not to exceed ten (10) years, provided that election also changes the distribution
date of the Participant’s Post-2004 Account to a date that is at least five (5) years later than
the Participant’s deferral period for is or her Post-2004 Account would otherwise have ended.

     4.2 Six Month Payment Delay for Key Employees. 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.

     4.3 Code Section 409A. This Article 4 is intended to comply and shall be interpreted and
construed in a manner consistent with the provisions of Code Section 409A, including any rule or
regulation promulgated thereunder. The provisions of this Article 4 shall not be deemed applicable
to the Pre-2005 Supplemental Retirement Benefits described in Article 3 however, or to constitute a
material modification with respect to such “grandfathered” Accounts. In the event that any
provision of this Article or Plan would cause an amount deferred 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.

 

ARTICLE 5

SURVIVOR BENEFITS

     5.1 Pre-2005 Grandfathered Account Death Benefit. If the Participant dies prior to the
commencement of such benefits, payments shall commence to the Beneficiary as soon as practicable
after the Participant’s death in installments over fifteen (15) years determined as provided in
Section 3.3(a), unless the Committee elects to accelerate payments without penalty to the
Beneficiary. If the Participant dies after commencement of benefits, benefits shall continue over
the remaining schedule to the Beneficiary, unless the Committee elects to accelerate such payments
without penalty to the Beneficiary.

     5.2 Post-2004 Account Death Benefit. If a Participant dies prior to the commencement of
payments from his or her Post-2004 Account, the Participant’s Beneficiary shall receive the
Participant’s Post-2004 Account in the most recent form of payment properly elected by the
Participant prior to his or her death in accordance with the terms of this Plan. If the
Participant made no form of payment election, the Participant’s Post-2004 Account will be paid to
the Beneficiary in ten (10) annual installments, beginning as soon as reasonably practicable after
the Participant’s death. If a Participant dies after payments to the Participant have already
commenced and the Participant had elected installment payments, the Participant Beneficiary shall
receive the remaining annual installment payments that would otherwise have been paid to the
Participant. This Paragraph 5.2 also applies to former Participants who still have a Post-2004
Account balance at the time of their death.

ARTICLE 6

GENERAL PROVISIONS

     6.1 Right to Amend or Terminate. The Company may, by written resolution of its Board of
Directors, in its sole discretion, terminate, suspend or amend this Plan at any time, in whole or
in part. However, no termination, amendment or suspension of the Plan will affect a Participant’s
or Beneficiary’s rights to benefits accrued to the date of amendment, and no amendment shall
accelerate benefits to the Participants to the detriment of the Company’s creditors.

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

     6.2 No Right of Employment. Nothing contained herein will confer upon any Participant the
right to be retained in the service of the Company, nor will it interfere with the right of the
Company to discharge or otherwise deal with any Participant without regard to the existence of the
Plan.

     6.3 Plan Funding. Supplemental retirement benefits may be paid either from a Trust Fund
established by the Company or from the general or segregated assets of the Company. All Trust Fund
assets, as well as non-Trust Fund assets, shall at all times remain subject to the claims of the
general creditors of the Company.

 

     6.4 Unsecured Benefit. The unpaid balance of any account maintained pursuant to this Plan or
Trust is an unsecured, general obligation of the Company. No Participant has ownership rights with
respect to any asset of the Company or any Trust Fund by reason of his participation in this Plan
or any Trust that may be established hereunder.

     6.5 Reporting. The Company is not required to render any report or accounting to any
Participant until benefits under this Plan are actually paid.

     6.6 Trust Agreement. If the Company elects to establish a Trust Fund for the payment of
supplemental retirement benefits, the Trustee shall receive and hold all contributions to the Trust
Fund made by the Company pursuant to the Plan and shall hold, invest, reinvest, and distribute such
fund in accordance with the terms and provisions of this Plan and the Trust Agreement. The Company
or the Committee may engage the services of qualified, independent investment managers for the
purpose of providing some or all of the investment management for this Plan. The Company or the
Committee may modify the Trust Agreement from time to time to accomplish the purposes of this Plan
and may, with approval, remove any Trustee and select any successor Trustee. No amendment to the
Plan, however, will bind the Trustee without its consent.

     6.7 Administration. The Company designates the Compensation Committee to administer, construe
and interpret this Plan. The Committee shall perform administrative duties as required herein, and
shall serve for such terms as the Company may designate or until a successor has been appointed or
until removed by the Company. No Committee member shall vote on a matter that related solely to
his entitlement to benefits hereunder.

     The construction and interpretation by the Committee of any provision of this Plan shall be
final, conclusive and binding upon all parties, including the Company and its employees. The
Committee has the sole discretion to decide all issues under this Plan and any Trust that may be
established hereunder. Any decision of the Committee that is not an abuse of discretion or
arbitrary and capricious, shall be upheld by a court of law. The Committee may adopt rules and
regulations to assist it in the administration of the Plan. No member of the Committee shall be
liable for any act performed or determination made, unless attributable to willful misconduct or
lack of good faith. The Company shall hold the Committee and its members harmless and indemnify
them from liability unless such liability stems from willful misconduct or lack of good faith. All
expenses of administration of the Plan shall be borne by the Company and no part thereof shall be
payable by a Participant in this Plan.

     6.8
No Assignment. Except as provided below, no rights hereunder are assignable in whole or in
part, either by voluntary or involuntary act or by operation of law. Rights hereunder are not
subject to anticipation, alienation, sale, transfer, assignment, pledge or encumbrance. Such
rights are not subject to the debts, contracts, liabilities, engagements or torts of the
Participant or his Beneficiary. Notwithstanding the above, the Participant’s and Beneficiary’s
rights hereunder may be assigned to a trust created under the Participant’s Last Will and Testament
or similar dispositive instrument.

     6.9
Binding Effect. This Agreement is binding upon the parties hereto, and their respective
heirs, executors, administrators, successors and assigns. This Agreement shall bind

 

the Company, and any successor thereto whether as a result of merger, sale of stock, sale of
substantially all the assets, or otherwise.

     6.10 Governing Law. This Agreement shall be governed by the laws of the State of Alaska
except as may be preempted or superseded by federal law. Venue shall be the United States District
Court, State of Alaska, at Anchorage.

 

ARTICLE 7

DUTIES UPON INSOLVENCY

     7.1 Duty to Inform. The Board of Directors and/or the Chief Executive Officer of the Company
shall have the duty to inform the Trustee (if a Trust is established) of the Company’s bankruptcy
or insolvency, as defined in Section 7.3 below.

     7.2 Actions Required. When informed of the Company’s insolvency or bankruptcy by the Board of
Directors and/or the Chief Executive Officer, the Trustee shall suspend payments to any Participant
or Trust Beneficiary and shall hold assets for the benefit of the Company’s general creditors.
Furthermore, if the Trustee receives other written allegations from any other source (with proper
written documentation supporting the same) of the Company’s insolvency, the Trustee shall suspend
all such payments and hold the Trust assets for the benefit of the Company’s general creditors, and
must determine within 30 days whether the Company is in fact insolvent. If the Trustee determines
that the Company is not insolvent, the Trustee will resume payments, including any benefits
previously suspended. In all cases where the Trustee has actual knowledge of, or has a
determination of the Company’s insolvency, the Trustee shall deliver trust assets to satisfy claims
of the Company’s general creditors as directed by a court of competent jurisdiction.

     7.3 Insolvency. Insolvency shall mean the complete inability of the Company to meet its
obligations to the Company’s creditors in due course.

     This Amended Supplemental Executive Retirement Plan has been duly executed by the Company’s
authorized representative this 2nd day of August, 2007 to be effective as of
January 1, 2005.

	 	 	 	 	 
	 	 	NORTHRIM BANK
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Ronald A. Davis
	 

	 	 	 	 
	 

	 	 	 	Ronald A. Davis
	 

	 	 	 	Its: Chairman of the Compensation Committee

ATTEST:

	 	 	 
	/s/ Gerri Tokar-Hines

	 	 
	 

	 	 

Adopted by the Board of Directors of Northrim Bank on November 3, 1994.

I certify that an amendment to the Plan was approved and adopted by the Board of Directors of
Northrim Bank on January 6, 2000.

 

I certify that an amendment to the Plan was approved and adopted by the Board of Directors of
Northrim Bank on January 8, 2004.

I certify that an amendment to the Plan was approved and adopted by the Board of Directors of
Northrim Bank on August 2, 2007 effective as of January 1, 2005.

	 	 	 	 	 
	 	 	 
	 	                                                     /s/ Mary A. Finkle
 	 
	 	Secretary

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