Document:

Exhibit

EMPLOYMENT AGREEMENT
This Employment Agreement (the “Agreement”) is made and entered into effective the 1st day of January, 2020 (the “Effective Date”), by and between Northrim Bank, a state‐chartered commercial bank, with its principal office in Anchorage, Alaska (the “Employer”), and Benjamin Craig (the “Executive”).
In consideration of the mutual promises made in this Agreement, the parties agree as follows:
		
	1.
	Employment.

Employer employs Executive and Executive accepts employment with Employer as Executive Vice President, Chief Information Officer of Northrim Bank.
		
	2.
	Term.

The term of this Agreement (the “Term”) shall commence on the Effective Date and, unless terminated earlier pursuant to Section 5, shall continue through December 31, 2020; provided, however, that on January 1, 2021 and each succeeding January 1, the Term shall automatically be extended for one additional year unless, not later than ninety days prior to any such January 1, either party shall have given written notice to the other that it does not wish to extend the Term. In the event the Term is not extended, Executive shall have no rights to any of the severance payments or benefits continuation described in Section 5 except as specifically provided for in Section 5.a. 
		
	3.
	Duties.

The Executive will serve as Executive Vice President, Chief Information Officer of Northrim Bank. Executive shall render such executive, management and administrative services and perform such tasks in connection with the affairs and overall operation of the Employer as is customary for the Executive’s position, subject to the direction of Employer’s President and Board of Directors. Executive shall devote necessary time, attention and effort to Employer’s business in order to properly discharge the Executive’s responsibilities under this Agreement.
		
	4.
	Compensation, Benefits, Reimbursement and Profit Sharing.

		
	a.
	Base Salary.

In consideration for all services rendered by Executive during the term of this Agreement, Employer shall pay Executive an annual base salary (before all customary and proper payroll deductions) of $234,665 as adjusted from time to time (“Base Salary”). The Board of Directors of the Employer shall review Executive’s salary each year, in a manner consistent with that used for all management employees of the Employer, and in its sole discretion may adjust such salary commensurate with the Executive’s performance under this Agreement.
		
	b.
	Profit Sharing Plan. 

Under the Northrim BanCorp, Inc. Profit Sharing Plan (the “Plan”), Executive shall be eligible to receive an annual profit share based on performance as defined by the Board of Directors. Executive will be classified in the Executive tier under the Plan’s Responsibility Factors. If Employer is required to prepare an accounting restatement due to “material noncompliance of the Employer,” the Employer will recover from the Executive any incentive compensation during the three (3) years prior to the date of the restatement, in excess of what would have been paid under the restatement. Executive’s signature on this Agreement authorizes Employer to offset or deduct from any compensation Employer may owe Executive, any excess payments (in whole or in part) that Executive may owe Employer due to such restatement(s). 
		
	c.
	Stock Incentive Plan. 

Executive shall be eligible for awards under the Employer’s Stock Incentive Plan. The type, timing and size of awards will be at the discretion of the Board of Directors.

		
	d.
	Supplemental Executive Retirement Plan (“SERP”), and Deferred Compensation Plan. 

Executive shall also be entitled to receive an annual contribution equal to five percent (5%) of annual Base Salary in accordance with the Employer’s SERP, as may be adjusted at the discretion of the Board of Directors from time to time. The Executive may also participate in the Employer’s Deferred Compensation Plan.
		
	e.
	Other Benefits. 

Throughout the term of this Agreement, Executive shall be entitled to participate in health insurance, disability and other employee benefit plans and programs of Employer, as in effect from time to time, on a basis at least as favorable as that accorded to any other officer of Employer and to the extent consistent with applicable law and the terms of the applicable employee benefit plans and programs.
		
	f.
	Expenses. 

Employer shall reimburse Executive for the Executive’s reasonable expenses (including, without limitation: travel, entertainment, and similar expenses) incurred in performing and promoting the business of the Employer, subject to any limits of company policy and the rules and regulations of the Internal Revenue Service, including the Internal Revenue Code of 1986, as amended (referred to throughout this Agreement as “IRC” or the “Code”). Executive shall present from time to time, itemized accounts and receipts of any such expenses as required by Employer and the Code.
		
	5.
	Termination of Agreement.

		
	g.
	Termination Due to a Change of Control. 

If (A) Employer (either Northrim BanCorp, Inc. or Northrim Bank) is subjected to a Change of Control (as defined in Section 5.f.(i)), and (B) either Employer or its assigns terminates Executive’s employment without Cause (either during the annual term of this Agreement or by refusing to extend this Agreement when the annual termination occurs every December 31) or Executive terminates their employment for Good Reason within seven hundred and thirty days of such Change of Control, then Employer shall pay Executive: (i) all Base Salary earned and all reimbursable expenses incurred under this Agreement through such termination date; (ii) an amount equal to one times Executive’s highest Base Salary over the prior three years, and (iii) an amount equal to one times Executive’s average Profit Share over the prior three years. The amounts described in clause (i) shall be paid no later than three business days after the date on which employment is terminated.  The amounts described in clauses (ii), and (iii) herein shall be paid no later than forty-five days after the day on which employment is terminated. No payment will be made pursuant to clauses (ii) and (iii) unless the Executive has signed an agreement, in a form acceptable to Employer, that releases and holds Employer harmless from all known and unknown claims and liabilities arising out of Executive’s employment with Employer or the performance of this Agreement (“Release Agreement”) and the Release Agreement has become irrevocable prior to the payment date.
		
	(i)
	Benefits Continuation. 

In addition, Executive shall be entitled to health and dental insurance benefits for a period of one year following the termination of this Agreement. These benefits will be provided at Employer’s expense, but such period shall count towards the Employer’s continuation of coverage obligation under Section 4980B of the Code (commonly referred to as “COBRA”); provided, however, that if Employer determines in its sole discretion that its provision of COBRA or health or dental insurance benefits or any premium payments for such benefits cannot be made without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act) or incurring an excise or penalty tax, under either Section 105(h) of the Code or the Patient Protection and Affordable Care Act of 2010, Employer will in lieu thereof provide to Executive a taxable payment in an amount equal to the monthly COBRA premium that Executive would be required to pay to continue their group health coverage in effect on the date of the Executive’s termination of employment (which amount will be based on the premium for the first month of 

COBRA coverage) for the one year following the termination of employment, which payment will be made regardless of whether Executive elects COBRA continuation coverage and will be paid at the same time any amounts described in the first paragraph of Section 5.a. are paid to Executive.
		
	(ii)
	Age and Service Credit. 

Executive shall also be entitled to receive age credit and credit for period of service towards all SERP plans for the remaining period of time covered by this Agreement. If Executive is hired by Employer, its assigns, any company in control of Employer, or any company controlled by Employer during the period covered by this Agreement, then Executive will be entitled to be treated for all purposes relating to future compensation, and benefits, as if this Agreement had never been terminated and as if Executive had performed the Executive’s responsibilities as an executive throughout the period originally covered by this Agreement.
		
	h.
	Termination by Employer Without Cause or by Executive for Good Reason. 

If Employer terminates Executive’s employment without Cause, or if Executive terminates their employment for Good Reason, Employer shall pay Executive in a lump sum: (i) all Base Salary earned and all reimbursable expenses incurred under this Agreement through such termination date; and (ii) an amount equal to point-seventy-five (0.75) times Executive’s highest Base Salary over the prior three years. The amount described in clause (i) shall be paid no later than three business days after the day on which employment is terminated. The amount described in clause (ii) shall be paid on the first day of the month following a period of six months after the termination of employment, provided that the payment may be made sooner if either (A) the amount does not exceed the amount described in Section 1.409A-1(b)(9)(iii)(A) (the “IRC Safe Harbor”) or (B) at the Executive’s election, the amount described in clause (ii), is reduced to fit within the IRC Safe Harbor. No payment will be made pursuant to clause (ii) unless the Executive has signed a Release Agreement which has become irrevocable prior to the payment date. 
		
	(iii)
	Benefits Continuation. 

In addition, Executive shall be entitled to health and dental insurance benefits for a period of nine months following the termination of this Agreement. These benefits will be provided at Employer’s expense, but such period shall count towards the Employer’s continuation of coverage obligation under Section 4980B of the Code (commonly referred to as “COBRA”); provided, however, that if Employer determines in its sole discretion that its provision of COBRA or health or dental insurance benefits or any premium payments for such benefits cannot be made without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act) or incurring an excise or penalty tax, under either Section 105(h) of the Code or the Patient Protection and Affordable Care Act of 2010, Employer will in lieu thereof provide to Executive a taxable payment in an amount equal to the monthly COBRA premium that Executive would be required to pay to continue their group health coverage in effect on the date of termination of employment (which amount will be based on the premium for the first month of COBRA coverage) for the nine months following the termination of employment, which payment will be made regardless of whether Executive elects COBRA continuation coverage and will be paid at the same time any amounts described in clause (i) of the first paragraph of Section 5.b are paid to Executive.
		
	(iv)
	Age and Service Credit. 

Executive shall also be entitled to receive age credit and credit for period of service towards all SERP plans for the remaining period of time covered by this Agreement. If Executive is hired by Employer, its assigns, any company in control of Employer, or any company controlled by Employer during the period covered by this Agreement, then Executive will be entitled to be treated for all purposes relating to future compensation, and benefits, as if this Agreement had never been terminated and as if Executive had performed their responsibilities as an executive throughout the period originally covered by this Agreement.

		
	i.
	Termination by Employer for Cause or by Executive Without Good Reason. 

If Employer terminates Executive’s employment for Cause or if Executive terminates their employment without Good Reason, Employer shall pay Executive upon the effective date of such termination only such Base Salary earned and expenses reimbursable under this Agreement incurred through such termination date. In such case, Executive shall have no right to receive compensation or other benefits for any period after termination under this Agreement. 
If any disputed termination under Section 5.c. is subsequently determined to have been without Cause, Executive's recovery shall be limited to those payments and benefits set out under Section 5.b.
		
	j.
	Termination Due to Total Disability. 

If Executive shall have been unable to perform his duties due to a Total Disability, then Employer may at any time after the end of the applicable period of nonperformance terminate Executive’s employment, effective immediately, consistent with Employer’s obligation to provide a leave of absence and/or reasonably accommodate Executive under applicable laws, and Executive shall be entitled to: (A) all Base Salary earned and reimbursement for expenses incurred under this Agreement through the termination date; (B) full Base Salary for the year following the termination date (less the amount of any payments received by Executive during such one year period under any Employer‐sponsored disability plan); and (C) health and dental insurance benefits for a period of one year following the termination date, which benefits will be provided at Employer’s expense, but such period shall count towards the Employer’s continuation of coverage obligation under Section 4980B of Code (commonly referred to as “COBRA”); provided, however, that if Employer determines in its sole discretion that its provision of COBRA or health or dental insurance benefits or any premium payments for such benefits cannot be made without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act) or incurring an excise or penalty tax, under either Section 105(h) of the Code or the Patient Protection and Affordable Care Act of 2010, Employer will in lieu thereof provide to Executive a taxable payment in an amount equal to the monthly COBRA premium that Executive would be required to pay to continue their group health coverage in effect on the date of their termination of employment (which amount will be based on the premium for the first month of COBRA coverage) for the one year following the termination of employment, which payment will be made regardless of whether Executive elects COBRA continuation coverage and will be paid at the same time any other amounts described in this Section 5.d are paid to Executive. All such compensation shall be paid Executive in one (1) lump sum the first day of the month following a period of six (6) months after Executive’s employment was terminated, provided that Executive has signed a Release Agreement which has become irrevocable prior to the payment date.
		
	k.
	Termination Upon Death of Executive. 

Executive’s employment under this Agreement shall be terminated upon the death of Executive. In such case, the Employer shall be obligated to pay to the surviving spouse of Executive, or if there is none, to the Executive’s estate: (A) that portion of Executive’s Base Salary that would otherwise have been paid to the Executive for the month in which their death occurred, and (B) any amounts due the Executive pursuant to the Northrim Bank Savings Incentive Plan (401-K) and the Northrim BanCorp, Inc. Profit Sharing Plan, any supplemental deferred compensation plan, and any other death, insurance, employee benefit plan or stock benefit plan provided to Executive by the Employer, according to the terms of the respective plans.
		
	l.
	Termination Definitions.

		
	(v)
	“Change of Control.” 

For purposes of this Agreement, the term “Change of Control” shall mean the occurrence of one or more of the following events: (A) one person or entity acquiring or otherwise becoming the owner of twenty-five percent (25%) or more of Employer’s outstanding common stock; (B) replacement of a majority of the incumbent directors of Northrim BanCorp, Inc. or Northrim Bank by directors whose 

elections have not been supported by a majority of the Board of either company, as appropriate; (C) dissolution or sale of fifty percent (50%) or more in value of the assets, of either Northrim BanCorp, Inc. or Northrim Bank; or (D) a change “in the ownership or effective control” or “in the ownership of a substantial portion of the assets” of Employer, within the meaning of Section 280G of the Code.
		
	(vi)
	“Cause.” 

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

For purposes of this Agreement, termination for “Good Reason” shall mean termination by Executive as a result of any material breach of this Agreement by Employer. Good Reason shall include, but not be limited to: (A) a material reduction in Executive’s compensation defined as a reduction equal to or greater than five percent (5%) of Executive’s then annual base salary; (B) a material reduction in Executive’s duties and responsibilities, but not merely a change in title; or (C) relocation of Executive’s primary workplace by more than fifty miles. “Good Reason” will only be deemed to occur if, within ninety days after a material reduction or change described above first occurs, the Executive provides notice to the Employer of the existence of Good Reason and of the Executive’s intended termination of employment due to Good Reason, and the Employer does not remove the Good Reason condition within ninety days after receiving such notice from the Executive. The Executive’s written notice must explain the basis on which the Executive believes Good Reason exists, the cure period, and the date on which the Executive intends to terminate employment, which must be no later than six months after the existence of the Good Reason. The provisions of Section 5.f.(iii) are intended to comply with the Good Reason safe harbor provisions of Code Section 409A and applicable regulations.
		
	(viii)
	“Total Disability.”

For purposes of this Agreement, “Total Disability” shall mean a medically diagnosed physical or mental illness, existing for a period of six consecutive months, or for a total of six months within any twelve month period, and that renders Executive incapable of performing their essential job functions under this Agreement, even after the Executive has been accorded reasonable accommodation. Employer’s Board of Directors, acting in good faith, in accordance with applicable law, shall make the final determination of whether Executive is suffering under any Total Disability (as herein defined) and, for purposes of making such determination, may require Executive to submit themselves to a physical examination by a physician mutually agreed upon by the Executive and Employer’s Board of Directors at Employer’s expense.

		
	(ix)
	Termination from Employment. 

A termination from employment under this Agreement shall mean a “Separation from Service” as interpreted in accordance with Code Section 409A and generally meaning the date on which the Executive is no longer performing services for the Employer. The Executive shall not have a Separation from 

Service while on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed six months, or if longer, so long as the Executive retains a right to reemployment under an applicable statute or contract. A leave of absence constitutes a bona fide leave of absence only if there is a reasonable expectation that the Executive will return to perform services. 
		
	6.
	Limit on Severance Payment for Change of Control.

Notwithstanding anything above in Section 5.a., if the severance payment provided for in that Section, together with any other payments which the Executive has the right to receive from the Employer, would constitute a “parachute payment” (as defined in Section 280G(b)(2) of the Code), the severance payment shall be reduced. The reduction shall be in an amount so that the present value of the total amount received by the Executive from the Employer or its affiliates and subsidiaries will be two point nine-nine (2.99) times the Executive’s base amount (as defined in Section 280G(b)(3) of the Code) and so that no portion of the amounts received by the Executive shall be subject to the excise tax imposed by Section 4999 of the Code (excise tax). Insofar as permitted by the Code, Employer shall reduce those elements of the severance pay package specified by the Executive, provided, however, that Employer will not reduce the SERP credits provided for in Section 5.a.(ii). The determination as to whether any reduction in the severance payment is necessary shall be made by the Employer in good faith, and the determination shall be conclusive and binding on Executive. If through error or otherwise Executive should receive payments under this Agreement, together with other payments the Executive has the right to receive from the Employer, in excess of two point nine-nine (2.99) times their base amount, Executive shall immediately repay the excess to Employer upon notification that an overpayment has been made.
		
	7.
	Covenant Not To Compete.

a.    Executive agrees that for the term of this Agreement and for a period of nine months after this Agreement is terminated pursuant to Section 5.a. or 5.b., Executive will not directly or indirectly be employed by, own, manage, operate, support, join, or benefit in any way from any business activity within the State of Alaska that is competitive with Employer’s business or reasonably anticipated business of which Executive has knowledge. For purposes of the foregoing, Executive will be deemed to be connected with such business if the business is carried on by: (A) a partnership in which Executive is a general or limited partner; or (B) a corporation of which Executive is a shareholder (other than a shareholder owning less than five percent (5%) of the total outstanding shares of the corporation), officer, director, employee or consultant, whether paid or unpaid. In the event of an alleged breach by Executive of this Section 7, the nine months non-compete period shall be extended until such breach or violation has been duly cured, and shall restart so that Employer has received the intended benefit of nine full months of non-competition by Executive.
b.    The parties agree that if a trial judge with jurisdiction over a dispute related to this Agreement should determine that the restrictive covenant set forth above is unreasonably broad, the parties authorize such trial judge to narrow the covenant so as to make it reasonable, given all relevant circumstances, and to enforce such covenant. The provisions of this Section 7 shall survive termination of this Agreement.
		
	8.
	Nondisclosure of Confidential Information.

a.    During the term of Executive’s employment and thereafter, Executive agrees to hold Employer’s Confidential Information in strict confidence, and not disclose or use it at any time except as authorized by Employer and for Employer’s benefit. If anyone tries to compel Executive to disclose any Confidential Information, by subpoena or otherwise, Executive agrees immediately to notify Employer so that Employer may take any actions it deems necessary to protect its interests. Executive’s agreement to protect Employer’s Confidential Information applies both during the term of this Agreement and after employment ends, regardless of the reason it ends.
b.    “Confidential Information” includes, without limitation, any information in whatever form that Employer considers to be confidential, proprietary, information and that is not publicly or generally available relating to Employer’s: trade secrets (as defined by the Uniform Trade Secrets Act), know-how, 

concepts, methods, research and development; product, content and technology development plans; marketing plans; databases; inventions; research data and mechanisms, software (including functional specifications, source code and object code), procedures, engineering, purchasing, accounting, marketing, sales, customers, advertisers, joint venture partners, suppliers, financial status, contracts or employees. Confidential Information includes information developed by Executive, alone or with others, or entrusted to Employer by its customers or others.
		
	9.
	Non-Solicitation.

During the course of Executive’s employment and for a period of nine months from the date of termination of employment for any reason, Executive shall not within the State of Alaska directly or indirectly solicit or entice any of the following to cease, terminate or reduce any relationship with Employer or to divert any business from Employer: (A) any person who was an employee of Employer during the nine months period immediately preceding the termination of Executive’s employment; (B) any customer or client of Employer; or (C) any prospective customer or client of Employer from whom Executive actively solicited business within the last nine months of Executive’s employment. In the event of an alleged breach by Executive of this Section 9, the nine month non-solicitation period shall be extended until such breach or violation has been duly cured, and shall restart so that Employer has received the intended benefit of nine uninterrupted months of non-solicitation by Executive.
		
	10.
	Non-Disparagement. 

Executive will not, during the Term or after the termination or expiration of this Agreement or Executive’s employment, make disparaging statements, in any form, about Employer’s officers, directors, agents, employees, products or services which Executive knows, or has reason to believe, are false or misleading. This Section 10 does not, in any way, restrict or impede Executive from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation or order. Executive shall promptly provide written notice of any such order to Employer’s Board of Directors. Nothing in this Section 10 is intended to limit Executive’s legal right to make reports to or cooperate with any law enforcement or other government agency.  
		
	11.
	Mutual Agreement to Arbitrate.

a.    Except as provided in Section 11.b., in the event of a dispute or claim between Executive and Employer related to Executive’s employment or termination of employment, all such disputes or claims will be resolved exclusively by confidential arbitration in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association (“AAA”). This means that the parties agree to waive their rights to have such disputes or claims decided in court by a jury. Instead, such disputes or claims will be resolved by an impartial AAA arbitrator whose decision will be final. 
b.    The only disputes or claims that are not subject to arbitration are any claims by Executive for workers’ compensation or unemployment benefits, and any claim by Executive for benefits under an employee benefit plan that provides its own arbitration procedure. Also, Executive and Employer may seek equitable relief (such as an injunction or declaratory relief) in court in appropriate circumstances. Specifically, Executive recognizes that Employer does not have an adequate remedy at law to protect its business from Executive’s breach of Sections 7, 8, or 9 of this Agreement, and therefore Employer shall be entitled to bring an action for a temporary restraining order and preliminary injunctive relief pre-arbitration, in the event of any actual or threatened breach by Executive of Sections 7, 8, or 9. In such court proceeding, Employer shall not be required to post a bond or other security, and Employer may also be awarded actual damages caused by Executive’s breach of Sections 7, 8, or 9 of this Agreement as well as repayment of all or a portion of any severance that Employer previously paid to Executive.  
c.    Except as provided by section 11.b., the arbitration procedure will afford Executive 

and Employer the full range of legal, equitable, and/or statutory remedies. Employer will pay all costs that are unique to arbitration, except that the party who initiates arbitration will pay the filing fee charged by AAA. Executive and Employer shall be entitled to discovery sufficient to adequately arbitrate their claims, including access to essential documents and witnesses, as determined by the arbitrator and subject to limited judicial review. In order for any judicial review of the arbitrator’s decision to be successfully accomplished, the arbitrator will issue a written decision that will decide all issues submitted and will reveal the essential findings and conclusions on which the award is based. 
		
	12.
	Miscellaneous.

a.    This Agreement contains the entire agreement between the parties with respect to Executive’s employment with Employer, and is subject to modification or amendment only upon agreement in writing signed by both parties.
b.    This Agreement shall bind and inure to the benefit of the heirs, legal representatives, successors and assigns of the parties, except that Employer’s rights and obligations may not be assigned.
c.    If any provision of this Agreement is invalid or otherwise unenforceable, in whole or in part, then such provision shall be modified so as to be enforceable to the maximum extent permitted by law. If such provision cannot be modified to be enforceable, the provision shall be severed from the Agreement to the extent it is unenforceable. All other provisions and any partially enforceable provisions shall remain unaffected and shall remain in full force and effect.
d.    In the event of any claim or dispute arising out of this Agreement, the party that substantially prevails shall be entitled to reimbursement of all expenses incurred in connection with such claim or dispute, including, without limitation, attorneys’ fees and other professional fees. This paragraph shall apply to expenses incurred with or without suit, and in any judicial, arbitration or administrative proceedings, including all appeals therefrom.
e.    Any notice required to be given under this Agreement to either party shall be given by personal service (i.e., via hand delivery) or by depositing a copy of such notice in the United States registered or certified mail, postage prepaid, addressed to the following address, or such other address as addressee shall designate in writing:

Employer:     

3111 “C” Street
Anchorage, AK 99503

Executive:    

Address on file with Northrim Bank Human Resources Department.

f.    This Agreement shall in all respects, including all matters of construction, validity and performance, be governed by and construed and enforced according to the laws of the State of Alaska.
g.    This Agreement (and all payments and other benefits provided under this Agreement and provided under any other agreement incorporated by reference) is intended to be exempt from the requirements of Code Section 409A, to the maximum extent possible, whether pursuant to the short-term deferral exception described in Treasury Regulation Section 1.409A-1(b)(4), the involuntary separation pay plan exception described in Treasury Regulation Section 1.409A-1(b)(9)(iii), or otherwise.  To the extent Code Section 409A is applicable to such payments and benefits, the parties intend that this Agreement (and such payments and benefits) comply with the deferral, payout and other limitations and restrictions imposed under Code Section 409A.  In the event that any provision of the Agreement would cause a benefit or amount 

provided hereunder to be subject to tax under the Internal Revenue Code prior to the time such amount is paid, such provision shall, without the necessity of further action by the signatories to this Agreement, be null and void as of the Effective Date. In addition, if Executive is a “specified employee” (within the meaning of Code Section 409A), then to the extent necessary to avoid subjecting Executive to the imposition of any additional tax under Code Section 409A, amounts that would otherwise be payable under this Agreement during the six (6) month period immediately following Executive’s “Separation from Service” for reasons other than Executive’s death (except those payments that may be exempt from or otherwise not subject to Code Section 409A, as determined by Employer in its reasonable, good faith discretion) will not be paid to Executive during such period, but shall instead be accumulated and paid to Executive in a lump sum on the first business day after the date that is six (6) months following Executive’s Separation from Service. Notwithstanding the foregoing, Employer makes no representations that the payments and benefits provided under this Agreement comply with, or are exempt from, Code Section 409A, and in no event will Employer be liable for all or any portion of any taxes, penalties, interest, or other expenses that may be incurred by Executive on account of any failure to comply with, or be exempt from, Code Section 409A, or for any interest on account of any delay in payment deemed necessary to comply with Code Section 409A.
h.    Notwithstanding any provision to the contrary in this Agreement, no payment of any type or amount of compensation or benefits shall be made or owed by Employer to Executive pursuant to this Agreement or otherwise to the extent that payment of such type or amount is restricted or prohibited by, is not permitted under, or has not received any required approval under, any applicable federal or state statute, regulation, rule, policy, order, opinion, interpretation or similar issuance, whether now in existence or hereafter adopted or imposed, including without limitation any provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act or regulations promulgated thereunder, 12 USC 1828(k) or 12 CFR Part 359. In the event that any payment made to Executive hereunder, under any prior employment agreement or arrangement or otherwise is required under any applicable federal or state statute, regulation, rule, policy, order, opinion, interpretation or similar issuance or under any agreement with or policy or plan of Employer to be paid back to Employer, Executive shall upon written demand from Employer promptly pay such amount back to Employer.

EMPLOYER:
NORTHRIM BANK

By: /s/ Krystal M. Nelson    
Krystal M. Nelson
Its: Chairman of the Compensation Committee of the Board of Directors

EXECUTIVE:

/s/ Benjamin Craig    
Benjamin CraigExhibit 10.1

 

 

 

Employment Agreement

Dear Peter:

This letter
agreement sets forth the terms of your employment with Aviat Networks, Inc. (the “Company”), as well as our understanding
with respect to any termination of that employment relationship. This Agreement will become effective January 2, 2020 (the “Start
Date”).

1.
Position and Duties. You will be employed by the Company as its President and Chief Executive Officer, reporting
to the Board of Directors. This position will be based at our location in Austin, Texas, but you will required to travel to Aviat’s
other office locations as needed. Business travel expenses will be reimbursed by the Company. You accept employment with the Company
on the terms and conditions set forth in this Agreement, and you agree during your employment not to engage in any business, other
employment or other activities which would conflict with your obligations to the Company or create an actual or the appearance
of a conflict of interest with the Company’s interests or your employment relationship with the Company. The Company will
recommend that you be elected as a member of the Board at no additional compensation.

2.
Term of Employment. Your employment with the Company is at will, which means that your employment is for no specified
term, and may be terminated by you or the Company at any time, with or without cause or notice, subject to the provisions of Paragraphs
5 and 6 below.

3.
Compensation. You will be compensated by the Company for your services as follows:

(a) Salary: Effective on the Start
Date, you will be paid a base salary of $400,000 per year (“Base Salary”), less applicable taxes and withholdings,
in accordance with the Company’s normal payroll procedures and applicable law. In conjunction with your annual performance
review, the Base Salary will be reviewed by the Board, and may be subject to adjustment based upon various factors including, but
not limited to, your performance and the Company’s profitability.

(b) Annual Short-Term Incentive Plan:
Subject to the Board’s discretion to substitute alternative short-term incentives when deemed advisable, and subject to approval
of such a plan for Company employees each year, you will be eligible to participate in the Company’s Annual Incentive Plan
with a target annual bonus of 70% of Base Salary at target, based upon achievement of the same performance objectives, floors and
caps determined by the Board for the Annual Incentive Plan for executives generally. Such performance objectives and metrics will
be reviewed and set by the Board in the first quarter of each fiscal year. You will participate in any alternative short-term incentive
adopted by the Board in lieu of a cash bonus. For fiscal year 2020, you will participate in the FY2020 AIP plan already in place
on a pro-rated basis for time worked (6/12ths) of the FY2020 annual award at 70% of Base Salary, but subject to all other terms
of the plan, which shall control.

    	 

    Peter Smith
Employment Agreement

    

(c) Equity Grants: As soon as practicable
after the Start Date, you shall receive an equity award in the form of restricted stock units (“RSUs”). You shall receive
18,750 RSUs which shall vest if and when the price of the Company’s common stock reaches $22.50, subject to your continuous
employment from the grant date until the vesting date. If a vesting threshold is not reached within two years of the Start Date,
those RSUs shall be cancelled and given no further effect. You shall receive 27,750 RSUs which shall vest if and when the price
of the Company’s common stock reaches $30, subject to your continuous employment from the grant date until the vesting date.
If a vesting threshold is not reached within three years of the Start Date, those RSUs shall be cancelled and given no further
effect. Subject to Board approval, you shall be eligible to participate in the FY2022 long-term incentive plan. Both the grants
of RSUs and the participation in the FY2022 long-term incentive plan shall be subject to any award agreement and/or the terms of
the plan, which shall control.

(d) Benefits: You will have the
right, on the same basis as other employees of the Company, to participate in and to receive benefits under any Company group medical,
dental, or other group insurance plans, as well as under the Company’s business expense reimbursement, educational assistance,
holiday, and other benefit plans and policies. You will also be eligible to participate in the Company’s 401(k) plan and
will be eligible to participate in any new benefits for which executives are eligible in the future.

(e) Vacation and Holidays: You will
receive 4 weeks of personal, sick or vacation time in accordance with the Company’s PTO policy and will receive paid holiday
time in accordance with the Company’s Holiday program.

(f) Earned Compensation: For purposes
of those Paragraphs of this Agreement pertaining to termination of the employment relationship, whether involuntary or voluntary,
unless otherwise expressly provided herein, no part of (i) the Annual Incentive Plan for the year in which the termination occurs,
(ii) no part of any performance shares for any multi-year period or periods in which the termination occurs and (iii) no part of
any equity awards that are not vested as of the termination date will be deemed earned as of the date of termination.

4.
Relocation.

(a) The Company will pay for temporary
living expenses in Austin, Texas for 3 months, with a maximum expenditure of $10,000 per month. Subsequent housing expenses are
your responsibility. You may utilize the services of Cornerstone Relocation to assist with your home sale and marketing, real estate
agent selection, home sale program, home finding assistance, temporary living assistance, home purchase assistance, household goods
and automobile assistance. There is no cost for Cornerstone’s services provided you follow the Cornerstone process for real
estate agent selection.

    	2

    Peter Smith
Employment Agreement

    

(b) The Company will reimburse you for
the reasonable cost (not to exceed $75,000) of moving your personal possessions from your current principal residence to a new
principal residence in Austin, and for transportation of your immediate family members to Austin

(c) The Company will reimburse you and/or
pay directly for the reasonable cost of temporary living accommodations in Austin for up to three months from the Start Date, subject
to a maximum of $10,000 per month.

(d) All reimbursement under this Paragraph
4 will be made in accordance with the Company’s expense reimbursement policies and procedures. To the extent reimbursements
or payments under this Paragraph create a taxable liability under this Paragraph 4, the Company will reimburse you for the approximate
amount of such tax liability, to be paid in the year such taxes are payable, but shall not reimburse more than $75,000 for such
tax liability. Reimbursement shall be made promptly after submission of required documentation, but in any event, no later than
the last day of the year following the year in which the expense is incurred.

5.
Termination. Your employment may be terminated under the circumstances set forth below. In all cases, upon termination,
you (or your estate) shall receive reimbursement for any approved Company expenses and, except for termination under Paragraph
5(d), you (or your estate) shall receive any accrued, but unused PTO time. In all cases, except as otherwise provided herein, you
shall cease vesting and immediately forfeit all unvested equity awards.

(a) Voluntary Termination. In the
event that you voluntarily resign from your employment with the Company (other than for Good Reason or Good Reason Following a
Change of Control as defined in Paragraphs 5(f) and 6(b)), you will be entitled to no compensation or benefits from the Company
other than those earned under Paragraph 3 through the date of termination. You agree that if you voluntarily terminate your employment
with the Company for any reason, you will provide the Company with at least 10 business days’ written notice of your resignation.
The Company shall have the option, in its sole discretion, to make your resignation effective at any time prior to the end of such
notice period, provided the Company pays you an amount equal to the base salary and benefits you would have earned through the
end of the notice period.

(b) Termination on Account of Death.
In the event that your employment terminates as a result of your death, you will be entitled to no compensation or benefits from
the Company other than those earned under Paragraph 3 through the date of termination. However, the Company will pay your estate
the prorated portion of any short-term incentive bonus that you would have earned during the incentive bonus period in which your
employment terminates (the pro-ration shall be equal to the percentage of that bonus period that you are actually employed by the
Company); such prorated bonus will be paid at the time that such incentive bonuses are paid to other Company employees.

    	3

    Peter Smith
Employment Agreement

    

(c) Termination by Disability: If,
by reason of any physical or mental incapacity, you have been or will be prevented from performing your then-current duties under
this Agreement with reasonable accommodation, then, to the extent permitted by law, the Company may terminate your employment without
any advance notice. Upon such termination, if you sign a general release of known and unknown claims in a form satisfactory to
the Company which becomes valid and irrevocable within 60 days of your termination, and you fully comply with your obligations
under Paragraphs 7, 8 and 10 of this Agreement, the Company will provide you with a pro-rated bonus as a severance payment as described
in Paragraph 5(e)(iii). Any stock options or other equity-related awards granted to you by the Company shall be treated as described
in Paragraph 5(e)(iv). Nothing in this paragraph shall affect your rights under any applicable Company disability plan.

(d) Termination for Cause: The Company
may terminate your employment at any time for Cause (as described below) without providing any notice (except to the extent expressly
provided below). If your employment is terminated by the Company for Cause, you shall be entitled to no compensation or benefits
from the Company other than those earned under Paragraph 3 through the date of your termination. For purposes of this Agreement,
a termination for Cause occurs if you are terminated for any of the following reasons: (i) theft, dishonesty, misconduct or falsification
of any employment or Company records; (ii) improper disclosure of the Company’s confidential or proprietary information;
(iii) any action by you which has a material detrimental effect on the Company’s reputation or business; (iv) your refusal
or inability to perform any assigned duties (other than as a result of a disability), after written notice from the Company to
you of, and a 30-day opportunity to cure, such refusal or inability; (v) your material breach of this Agreement or of the employee
proprietary information/confidentiality/assignment of inventions agreement not otherwise described in this paragraph, after written
notice from the Company to you of, and a 30-day opportunity to cure, such breach; (vi) your violation of the Company’s Code
of Conduct; or (vii) your conviction (including any plea of guilty or no contest) for any criminal act that impairs your ability
to perform your duties under this Agreement.

(e) Termination Without Cause: The
Company may terminate your employment without Cause at any time with or without advance notice. If your employment is terminated
by the Company without Cause, and you sign a general release of known and unknown claims in a form satisfactory to the Company
within the applicable review period which thereupon is (or, if any revocation period is required by law, following expiration of
such period becomes) valid and irrevocable within 60 days of your termination, and you fully comply with your obligations under
Paragraphs 7, 8 and 10, you will receive the following severance benefits:

(i)
payments at your final Base Salary rate for a period of twelve (12) months following your termination; such payments will
be subject to applicable withholding and made in accordance with the Company’s normal payroll practices; provided, however,
that any such payments that would have been paid in accordance with the Company’s normal payroll practices before your release
becomes valid and irrevocable will accumulate and be paid only if and when both (x) your release becomes valid and irrevocable
and (y) such validity and irrevocability in no event occurs more than 60 days after your termination;

    	4

    Peter Smith
Employment Agreement

    

(ii)
payment of the premiums necessary to continue your group health insurance under COBRA provided you have timely elected COBRA
coverage until the earlier of (x) twelve (12) months following your termination date; or (y) the date you first became eligible
to participate in another employer’s group health insurance plan; or (z) the date on which you are no longer eligible for
COBRA coverage;

(iii)
the Company will pay you the prorated portion of any incentive bonus that you would have earned, if any, during the incentive
bonus period in which your employment terminates (the pro-ration shall be equal to the percentage of that bonus period that you
are actually employed by the Company), and such prorated bonus will be paid to you at the time that such incentive bonuses are
paid to other Company employees, or at any earlier time required by applicable law; and

(iv)
with respect to any stock options or other equity-related awards granted to you by the Company, you will cease vesting upon
your termination date; however, you will be entitled to purchase any vested shares of stock that are subject to those options until
the earlier of (x) twelve (12) months following your termination date, or (y) the date on which the applicable option(s) expire(s);
except as set forth in this subparagraph, your Company stock options and other equity-related awards will continue to be subject
to and governed by the Plan and the applicable agreements between you and the Company.

(f) Resignation for Good Reason:
If you resign from your employment with the Company for Good Reason (as defined in this paragraph), and such resignation does not
qualify as a resignation for Good Reason Following a Change of Control (as defined in Paragraph 6(b), and you sign a general release
of known and unknown claims in a form satisfactory to the Company within the applicable review period which thereupon is (or, if
any revocation period is required by law, following expiration of such period becomes) valid and irrevocable within 60 days of
your termination, and you fully comply with your obligations under Paragraphs 7, 8 and 10, you shall receive the severance benefits
described in Paragraph 5(e). For purposes of this Paragraph, “Good Reason” means any of the following conditions, which
condition(s) remain in effect 60 days after written notice from you to the Chairman of said condition(s):

(i)
a reduction in your Base Salary, below the Base Salary in effect as of the Start Date, other than a reduction that is similarly
applicable to all members of the Company’s executive staff; or

(ii)
a material diminution in your authority, duties and responsibilities;

(iii)
your dismissal from the Board of Directors, except as incident to your termination from employment; or

(iv)
the relocation of the Company’s workplace to a location that is more than 75 miles from its planned location in Austin,
TX.

The foregoing condition(s) shall not constitute “Good
Reason” if you do not provide the Chairman with the written notice described above within 45 days after you first become
aware of the condition(s).

    	5

    Peter Smith
Employment Agreement

    

(g) Termination or Resignation For Good
Reason Following a Change of Control: If, within 12 months following any Change of Control (as defined below), your employment
is terminated by the Company without Cause, or if you resign from your employment with the Company for Good Reason Following a
Change of Control (as defined below), and you sign a general release of known and unknown claims in a form satisfactory to the
Company within the applicable review period which thereupon is (or, if any revocation period is required by law, following expiration
of such period becomes) valid and irrevocable within 60 days of your termination, and you fully comply with your obligations under
Paragraphs 7, 8 and 10, you shall receive the severance benefits described in Paragraph 5(e). In addition, if such termination
occurs, you shall receive a payment (in lieu of any payment under subparagraph 5(e)(iii)) equal to your target incentive bonus
for the year in which your employment terminates. Such payment will be made to you within 15 days following the date on which the
general release of claims described above becomes irrevocable. The Company will also accelerate the vesting of all unvested stock
options granted to you by the Company, and all other then-unvested equity-related awards that vest based solely on continued employment
by the Company or its affiliates (unless the terms of such other equity-related awards expressly provide that there is not to be
any such acceleration. The total cash compensation pursuant to this section shall not exceed $750,000.

6.
Change of Control/Good Reason.

(a) For purposes of this Agreement, a “Change
of Control” of the Company shall mean the occurrence of any of the following:

(i)
any merger, consolidation, share exchange or Acquisition, unless, immediately following such merger, consolidation, share
exchange or Acquisition, at least 50% of the total voting power (in respect of the election of directors, or similar officials
in the case of an entity other than a corporation) of (A) the entity resulting from such merger, consolidation or share exchange,
or the entity which has acquired all or substantially all of the assets of the Company (in the case of an asset sale that satisfies
the criteria of an Acquisition) (in either case, the “Surviving Entity”), or (B) if applicable, the ultimate parent
entity that directly or indirectly has beneficial ownership (within the meaning of Rule l3d-3 promulgated under the Exchange Act)
of 50% or more of the total voting power (in respect of the election of directors, or similar officials in the case of an entity
other than a corporation) of the Surviving Entity (the “Parent Entity”) is represented by Company securities that were
outstanding immediately prior to such merger, consolidation, share exchange or Acquisition (or, if applicable, is represented by
shares into which such Company securities were converted pursuant to such merger, consolidation, share exchange or Acquisition),
or

(ii)
any person or group of persons (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended
and in effect from time to time) directly or indirectly acquires beneficial ownership (determined pursuant to Securities and Exchange
Commission Rule 13d-3 promulgated under the said Exchange Act) other than through a merger, consolidation, share exchange, or Acquisition,
of securities possessing more than 50% of the total combined voting power of the Company’s outstanding securities other than
(A) an employee benefit plan of the Company or any of its Affiliates, (B) a trustee or other fiduciary holding securities under
an employee benefit plan of the Company or any of its Affiliates, or (C) an underwriter temporarily holding securities pursuant
to an offering of such securities, or

    	6

    Peter Smith
Employment Agreement

    

(iii)
a majority of the Board determines that a Change of Control has occurred, or

(iv)
the complete liquidation or dissolution of the Company.

For the purposes of this Agreement, the term “Affiliate”
means any corporation, partnership, limited liability company, business trust, or other entity controlling, controlled by or under
common control with the Company, and “Acquisition” means a merger or consolidation of the Company into another person
(i.e., which merger or consolidation the Company does not survive) or the sale, transfer, or other disposition of all or substantially
all of the Company’s assets to one or more persons in a single transaction or series of related transactions.

(b) For purposes of this Agreement, “Good
Reason Following a Change of Control” means any of the following conditions, which condition(s) remain in effect 60 days
after written notice from you to the Chairman of said condition(s):

(i)
a material and adverse change in your position, duties or responsibilities for the Company, as measured against your position,
duties or responsibilities immediately prior to the Change of Control; or

(ii)
a reduction in your Base Salary as measured against your Base Salary immediately prior to the Change in Control; or

(iii)
a material reduction in your employee benefits, other than a reduction that is similarly applicable to a majority of the
members of the Company’s executive staff; or

(iv)
the relocation of the Company’s workplace to a location that is more than 75 miles from its planned location in Austin,
TX.

7.
Confidential and Proprietary Information: As a condition of your employment, you agree to sign and abide by the Company’s
standard form of employee proprietary information/confidentiality/assignment of inventions agreement.

8.
Termination Obligations.

(a) You agree that all property, including,
without limitation, all equipment, proprietary information, documents, books, records, reports, notes, contracts, lists and computer
files and data, and copies thereof, created on any medium and furnished to, obtained by, or prepared by you in the course of or
incident to your employment, belongs to the Company and shall be returned to the Company promptly upon any termination of your
employment.

    	7

    Peter Smith
Employment Agreement

    

(b) Upon your termination for any reason,
and as a condition of your receipt of any severance benefits hereunder, you will promptly resign in writing from all offices and
directorships then held with the Company or any affiliate of the Company.

(c) Following the termination of your employment
with the Company for any reason, you shall fully cooperate with the Company in all matters relating to the winding up of pending
work on behalf of the Company and the orderly transfer of work to other employees of the Company. You shall also cooperate in the
defense of any action brought by any third party against the Company.

9.
Limitation of Payments and Benefits.

To the extent that any of the payments
and benefits provided for in this Agreement or otherwise payable to you (the “Payments”) constitute “parachute
payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), the
amount of such Payments shall be either:

(a) the full amount of the Payments, or

(b) a reduced amount that would result
in no portion of the Payments being subject to the excise tax imposed pursuant to Section 4999 of the Code (the “Excise Tax”),
whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the Excise Tax,
results in the receipt by you, on an after-tax basis, of the greatest amount of benefit. In the event that any Excise Tax is imposed
on the Payments, you will be fully responsible for the payment of any and all Excise Tax, and the Company will not be obligated
to pay all or any portion of any Excise Tax.

10.
Other Activities. You agree that during your employment and for a period of one year following the termination of
your employment (the “Restricted Period”), you will not, as a compensated or uncompensated officer, director, consultant,
advisor, partner, joint venturer, investor, independent contractor, employee or otherwise, provide any labor, services, advice
or assistance to any entity or its successor involved in the design, manufacture, distribution (directly or indirectly), or integration
of any digital microwave products and used in terrestrial microwave point-to-point telecommunications networks anywhere in the
world. You acknowledge and agree that the restrictions contained in the preceding sentence are reasonable and necessary. You also
agree that during the Restricted Period, you will not solicit any employee of the Company directly or indirectly to leave employment
with the Company for any purpose, including but not limited to for purposes of providing labor, services, advice or assistance
to any entity or individual. You also agree that during the Restricted Period, you may not, directly or indirectly, solicit or
attempt to solicit business from the Company’s customers or actively sought prospective customers with whom you had contact
during your employment for the purpose of providing products or services that are competitive with those provided by the Company.
In the event of your breach of this Paragraph, the Company shall not be obligated to provide you with any further severance payments
or benefits subsequent to such breach, in addition to other remedies available under applicable laws. If any of the covenants contained
in this Paragraph 10 are held to be unenforceable by a court of competent jurisdiction because of the temporal or geographic scope
of such provision or the area covered thereby, the parties agree that the court making such determination shall have the power
to reduce the duration and/or geographic area of such provision and, in its reduced form, such provision shall be enforceable.
You agree that (i) the provisions of this Paragraph 10 are necessary and reasonable to protect the Company’s confidential
information, inventions, and goodwill; (ii) the specific temporal and substantive provisions are reasonable and necessary to protect
the Company’s business interests; and (iii) in the event of any breach of any of the covenants set forth herein, the Company
would suffer substantial irreparable harm and would not have an adequate remedy at law for such breach. In recognition of the foregoing,
you agree that in the event of a breach or threatened breach of any of these covenants, in addition to such other remedies as the
Company may have at law, without posting any bond or security, the Company shall be entitled to seek and obtain equitable relief,
in the form of specific performance, and/or temporary, preliminary or permanent injunctive relief, or any other equitable remedy
which then may be available. The seeking of such injunction or order shall not affect the Company’s right to seek and obtain
damages or other equitable relief on account of any such actual or threatened breach.

    	8

    Peter Smith
Employment Agreement

    

11.
Dispute Resolution. The parties agree that any suit, action, or proceeding arising out of or relating to this Agreement,
the parties’ employment relationship, or the termination of that relationship for any reason, shall be brought in the appropriate
state or federal court appropriate for disputes arising in Austin, Texas, and you agree to submit to the personal jurisdiction
of such court. The parties irrevocably waive, to the fullest extent permitted by law, any objection they may have to the laying
of venue for any such suit, action or proceeding brought in such court. If any one or more provisions of this Paragraph 11 shall
for any reason be held invalid or unenforceable, it is the specific intent of the parties that such provisions shall be modified
to the minimum extent necessary to make it or its application valid and enforceable.

12.
Compliance with Section 409A of the Internal Revenue Code. This Agreement is intended to comply with, or otherwise
be exempt from, Section 409A of the Code and the rules and regulations promulgated thereunder (collectively, “Section 409A”).
However, the Company has not made and is making no representation to you relating to the tax treatment of any payment pursuant
to this Agreement under Section 409A and the corresponding provisions of any applicable State income tax laws.

Notwithstanding anything to the contrary
in this Agreement, any payments or benefits due hereunder upon a termination of employment which are a “deferral of compensation”
within the meaning of Section 409A shall only be payable or provided to you upon a “separation from service” as defined
for purposes of Section 409A. In addition, if you are a “specified employee” as determined pursuant to Section 409A
as of the date of your separation from service, as so defined, and if any payments or entitlements provided for in this Agreement
constitute a “deferral of compensation” within the meaning of Section 409A and cannot be paid or provided in the manner
provided herein without subjecting you to additional tax, interest or penalties under Section 409A, then any such payment or entitlement
which is otherwise payable during the first six months following your separation from service shall be paid or provided to you
in a lump sum on the earlier of (i) the first business day of the seventh calendar month immediately following the month in which
your separation from service occurs or (ii) the date of your death. To the extent required to satisfy the provisions of the foregoing
sentence with respect to any benefit to be provided in-kind, the Company shall bill you, and you shall promptly pay, the value
for tax purposes of any such benefit and the Company shall therefore promptly refund the amount so paid by you as soon as allowed
by the foregoing sentence.

    	9

    Peter Smith
Employment Agreement

    

For purposes of Section 409A, the right
to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments. With respect
to any reimbursement of your expenses, or any provision of in-kind benefits to you, as specified under this Agreement, such reimbursement
of expenses or provision of in-kind benefits shall be subject to the following conditions: (1) the expenses eligible for reimbursement
or the amount of in-kind benefits provided in one taxable year shall not affect the expenses eligible for reimbursement or the
amount of in-kind benefits provided in any other taxable year, except for any medical reimbursement arrangement providing for the
reimbursement of expenses referred to in Section 105(b) of the Code; (2) the reimbursement of an eligible expense shall be made
no later than the end of the year after the year in which such expense was incurred; and (3) the right to reimbursement or in-kind
benefits shall not be subject to liquidation or exchange for another benefit.

13.
Severability. If any provision of this Agreement is deemed invalid, illegal or unenforceable, such provision shall
be modified so as to make it valid, legal and enforceable, and the validity, legality and enforceability of the remaining provisions
of this Agreement shall not in any way be affected.

14.
Confirmation of Rights which Are not Dependent Upon Signing a Release. Whether or not you sign a release as provided
in certain provisions of this Agreement, (a) you will be paid all wages due as of your last day of work, (b) your health care coverage
as a primary insured under the Company’s health plan will continue through the end of the month in which your last day of
work falls, (c) thereafter, you (or your family) will be eligible for continuation of health insurance at your own expense if you
timely elect coverage under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), and (d) you (or your family)
will receive information regarding your right to continue health insurance under COBRA.

15.
Applicable Withholding. All salary, bonus, severance and other payments identified in this Agreement are subject
to applicable withholding by the Company.

16.
Assignment. In view of the personal nature of the services to be performed under this Agreement by you, you cannot
assign or transfer any of your obligations under this Agreement.

17.
Entire Agreement. This Agreement and the agreements referred to above constitute the entire agreement between you
and the Company regarding the terms and conditions of your employment, and they supersede all prior negotiations, representations
or agreements between you and the Company regarding your employment, whether written or oral. This Agreement sets forth our entire
agreement regarding the Company’s obligation to provide you with severance benefits upon any termination of your employment,
and you shall not be entitled to receive any other severance benefits from the Company pursuant to any Company severance plan,
policy or practice.

    	10

    Peter Smith
Employment Agreement

    

18.
Governing Law. The Agreement, and any disputes related thereto, shall be governed by and interpreted in accordance
with the laws of the State of Texas, regardless of any conflict of law principles requiring the application of any other law.

19.
Modification. This Agreement may only be modified or amended by a supplemental written agreement signed by you and
an authorized representative of the Board.

20.
Indemnification, Advancement, Insurance. You will be entitled to indemnification and advancement in accordance with
the Company’s bylaws as currently in effect. The Company will provide reasonable directors’ and officers’ insurance
coverage for its directors and officers, including you.

Please sign and date this letter on the spaces provided below to
acknowledge your acceptance of the terms of this Agreement.

 

	Sincerely,	 	 
	 	 	 
	Aviat Networks, Inc.	 	 
	 	 	 
	By:	  /s/ Walter Stanley Gallagher

 

	 	 
	 	 Walter Stanley Gallagher	 	 
	 	 	 	 

 

I agree to and accept employment with
Aviat Networks, Inc. on the terms and conditions set forth in this Agreement.

	 	 
	 	 
	Dated: December 16, 2019	
        /s/ Peter Smith

	 	Peter Smith

 

    	11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}]]