Document:

EX-10.25

EXHIBIT 10.25

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

1

TABLE OF CONTENTS

Page

	 	 	 
	ARTICLE 1 DEFINITIONS

	1.1

1.2

1.3

1.4

1.5

1.6

1.7

1.8

1.9

1.10

1.11

1.12

1.13

1.14

	 	Account

Beneficiary

Code

Committee

Company

Early Retirement Date

ERISA

Normal Retirement Date

Participant

Plan

Retirement Plan

Trust

Trust Fund

Trustee

	 	 	 
	ARTICLE 2 ELIGIBILITY AND PARTICIPATION

	ARTICLE 3 PRE-2005 SUPPLEMENTAL RETIREMENT BENEFIT

	3.1

3.2

3.3

3.4

	 	Pre-2005 Grandfathered Account

Amount

Form of Payment

Benefit Commencement

	 	 	 
	ARTICLE 4 POST-2004 SUPPLEMENTAL RETIREMENT BENEFIT

	4.1

4.2

4.3

	 	Post-2004 Account

Six Month Payment Delay for Key Employees

Code Section 409A

	 	 	 
	ARTICLE 5 SURVIVOR BENEFITS

	5.1

5.2

	 	Pre-2005 Grandfathered Account Death Benefit

Post-2004 Account Death Benefit

	 	 	 
	ARTICLE 6 GENERAL PROVISIONS

	6.1

6.2

6.3

6.4

6.5

6.6

6.7

6.8

6.9

6.10

	 	Right to Amend or Terminate

No Right of Employment

Plan Funding

Unsecured Benefit

Reporting

Trust Agreement

Administration

No Assignment

Binding Effect

Governing Law

	 	 	 
	ARTICLE 7 DUTIES UPON INSOLVENCY

	7.1

7.2

7.3

	 	Duty to Inform

Actions Required

Insolvency

2

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.

1.7 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 terminates employment.

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, 2008 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, 2008 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 1st  day of May, 2008 to be effective as
of January 1, 2005.

NORTHRIM BANK

By: /s/ Ronald A. Davis

	 	 	Ronald A. Davis

	 	 	 	Its:
Chairman, Compensation Committee

ATTEST:

/s/ Susan E. Stenstrom     

Susan E. Stenstrom

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 May 1, 2008.

/s/ Mary A. Finkle

Secretary

3EX-10.26

EXHIBIT 10.26

NORTHRIM BANK

DEFERRED COMPENSATION PLAN

Originally Effective as of January 1, 1995

Amended Effective as of October 3, 1996

and

January 1, 2005

1

TABLE OF CONTENTS

	 	 	 
	ARTICLE I INTRODUCTION

ARTICLE II ELIGIBILITY

	 	

	ARTICLE III PAYMENT OF DEFERRED AMOUNTS AND INTEREST

	3.1

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

	 	Accounts

Salary Deferral

Bonus Deferral

Interest Credited to Accounts

Form and Timing of Payment for Pre-2005 Grandfathered Accounts

Form and Timing of Payment for Post-2004 Accounts

Limit on Payments

Code Section 409A

Status as a Key Employee

	 	 	 
	ARTICLE IV DISABILITY

ARTICLE V DEATH BENEFITS

	 	

	ARTICLE VI UNFORESEEABLE EMERGENCY

	ARTICLE VII AMENDMENT; TERMINATION; ADMINISTRATION.

	ARTICLE VIII MISCELLANEOUS PROVISIONS.

	8.1

8.2

8.3

8.4

8.5

8.6

8.7

8.8

8.9

	 	Assignment

Taxes

No Employment Agreement

Unfunded

Vesting

Duties Upon Insolvency

Claim Procedures

Change in Control

Entire Agreement

2

NORTHRIM BANK

DEFERRED COMPENSATION PLAN

ARTICLE I

INTRODUCTION

This Deferred Compensation Plan (the “Plan”) provides competitive fringe benefit planning to
key employees of Northrim Bank (the “Employer” or “Company”) by permitting such employees to defer
the receipt of compensation. The election to defer must be irrevocable and must be made in
accordance with the terms of the Plan. This Plan and the elections made hereunder shall bind the
Employer, its successors and assigns. The effective date of the Plan is January 1, 1995.

ARTICLE II

ELIGIBILITY

As of the Effective Date, all officers of the Employer are eligible to participate in this
Plan (“Eligible Employee(s)” or “Participant”). Other key employees may become eligible to
participate if so notified by the Compensation Committee, hereinafter “Committee.”

ARTICLE III

PAYMENT OF DEFERRED AMOUNTS AND INTEREST

3.1 Accounts. Salary and bonus deferrals made under this Article 3 shall be credited to a
Participant’s Accounts. Amounts deferred and vested prior to 2005 shall be credited to a Pre-2005
Grandfathered Account. Post-2004 deferrals shall be credited to a Post-2004 Account and
administered in accordance with Internal Revenue Code Section 409A.

All deferrals made hereunder shall be credited to special accounts on the books of the
Employer in the name of the Participants, and/or, with consent of the Employer’s Board and the
Committee, deposited in a grantor trust on behalf of such Participants. The Committee shall credit
such accounts with interest, in accordance with Section 3.4 hereof. Participant’s accounts will be
increased by his or her proportionate share of all interest credited to the accounts by the
Employer. A Participant is entitled to a statement of his or her accounts, at least annually,
within ninety (90) days after the close of the calendar year.

3.2 Salary Deferral. On or prior to December 31 of each year that this Plan is in effect, any
Eligible Employee may elect to defer receipt of at least five percent (5%) to a maximum of one
hundred percent (100%) of their salary to be paid in the calendar year following the year of
election. The election shall be in writing, on a form provided by the Committee, and shall be
irrevocable as to any Salary payable in the next year. Any such election will also be effective
with respect to future years’ salary unless revoked by the Participant prior to December 31 of the
year preceding the year in which the deferral is to take effect. New elections may be made in
accordance with the terms of this Section 3.2 if made by December 31 of the year preceding the year
for which the change is to take effect.

Notwithstanding the other provisions of this Section 3.2, an Eligible Employee may elect to
defer receipt of all or a portion of their remain salary to be paid in the current calendar year if
such election is made in writing within thirty (30) days after the Participant is first notified of
their eligibility to participate in the Plan by the Committee.

3.3 Bonus Deferral. On or prior to December 31 of each year that this Plan is in effect, any
Eligible Employee may elect to defer receipt of at least five percent (5%) to a maximum of one
hundred percent (100%) of their bonus for services to be performed in a succeeding Plan Year. The
election shall be in writing, on a form provided by the Committee, and shall be irrevocable as to
any bonus payable with respect to services to be performed.

Any such election will also be effective with respect to future years’ bonuses unless revoked
by the Participant prior to December 31 of the year preceding the year in which services are to be
performed. Any new election with respect to future years’ bonuses must be filed with the Committee
prior to December 31 of the year preceding the year during which the services to which the bonus
relates are to be performed.

Notwithstanding the other provisions of this Section 3.3, an Eligible Employee may elect to
defer receipt of all or any portion of their bonus if such election is made in writing within
thirty (30) days after the Participant is first notified of their eligibility to participate in the
Plan by the Committee.

3.4 Interest Credited to Accounts. The Committee shall credit all amounts deferred and
credited to a Participant’s Accounts as outlined in Sections 3.1 and 3.5 herein, with interest
compounded annually. The interest for any given year, or portion thereof, shall be Northrim Bank’s
average yield on the Bank’s total assets calculated on January 1, based on the prior year’s
performance, less one percentage (l%) point.

All taxes (including interest and penalties) levied or assessed with respect to the funds or
the income thereon, shall be paid by the Employer, unless under other applicable tax law, such
taxes are deemed an obligation of the Participant, in which case the Participant will pay.

3.5 Form and Timing of Payment for Pre-2005 Grandfathered Accounts. Subject to the
limitations contained herein, a Participant’s Pre-2005 Grandfathered Account shall be paid in
installments or as a lump sum in accordance with the Participant’s deferral election.

Notwithstanding the above, if installment payments were elected, the Committee may elect, in
its sole discretion, to accelerate payments provided an irrevocable request is made in writing at
least thirty (30) days prior to the commencement date of the first payment. If an accelerated
payment is made, the Participant will also pay to the company a penalty equal to two percent (2%)
of the accelerated amount. No such acceleration shall be made to the detriment of a current
creditor of the Company. If installment payments are elected, a calculation shall be made to
compute a level series of monthly payments based on the Participant’s account balance, the time
period selected and the applicable interest rate in effect as of the benefit commencement date.
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. Treasure Note Rate will be the
preceding twelve (12) months 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.

Any deferral must be for a minimum period of two years. A distribution of a Participant’s
account shall begin on the first day of the month following sixty (60) days (or as soon thereafter
as administratively possible) after the occurrence of the earliest of: (i) termination of
employment (voluntary or involuntary); (ii) disability; or (iii) passage of the period of time
stated on the Participant’s deferral election.

3.6 Form and Timing of Payment for Post-2004 Accounts. A Participant’s Post-2004 Account
shall be 100% vested and nonforfeitable at all times and shall become payable to the Participant at
the time specified in his election form. A Participant’s election form for his or her Post-2004
Account may provide that the Participant’s deferral period will end on a specified date or the date
he terminates employment.

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 the 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’s 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, 2008 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, 2008 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 his or her Post-2004 Account would otherwise have ended.

3.7 Limit on Payments. No amount will be paid under this Article III if such payment will
cause the Employer to pay excessive remuneration to such Employee as that term is defined by
Section 162(m) of the Internal Revenue Code (“Code”) of 1986. Payments from Pre-2005 Grandfathered
Accounts hereunder will be reduced to the extent necessary to avoid the limitations of Section
126(m) and amounts not paid due to such limitations shall be deferred and paid in the following
years.

Payments from Post-2004 Accounts hereunder will be reduced to the extent necessary to avoid
the limitations of Section 162(m) and amounts not paid due to such limitations shall be paid no
sooner than the form and timing provisions of Code Section 409A as provided in Section 3.6 permit.

3.8 Code Section 409A. This Plan 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 Plan shall not be deemed applicable to Pre-2005
Grandfathered Accounts or to constitute a material modification with respect to the administration
of such Pre-2005 Grandfathered Accounts. In the event that any provision of the 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.

3.9 Status as a Key Employee. 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 other such date as may be prescribed under Code
Section 409A), then in no event shall such Participant’s initial payment 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.

ARTICLE IV

DISABILITY

For purposes of determining commencement of payments due to disability, disability shall occur
when the Participant is receiving income replacement benefits for at least three (3) months under
the Employer’s accident or health plan by reason of medically determined physical or mental
impairment which is expected to result in death or last for at least twelve (12) months, or the
Committee determines that the Participant is unable to engage in any substantial gainful activity
by reason of a medically determinable physical or mental impairment that can be expected to result
in death or to last for a continuous period of not less than twelve (12) months.

ARTICLE V

DEATH BENEFITS

Any amount due to a Participant which is unpaid upon his or her death shall be paid to the
beneficiary designated by the Participant on a form provided by the Committee. The designated
beneficiary may be changed from time to time by filing a new beneficiary designation with the
Committee. A spouse must consent to a designation if more than fifty percent (50%) of the account
will be paid to a beneficiary other than the spouse. The designation last filed shall control. If
a Participant fails to designate a beneficiary, or if the person or persons designated on the
beneficiary designation predecease the Participant, and the beneficiary designation form does not
indicate who receives the amount due, the amount owing shall be paid in the following order:

	 	a.	 	surviving spouse

	 	b.	 	estate of deceased Participant.

Payments to the beneficiary of a deceased Participant shall be made in the manner described in
Article III, as if the beneficiary were the Participant.

ARTICLE VI

UNFORESEEABLE EMERGENCY

In the event of an unforeseeable emergency, the Participant may withdraw all or part of his or
her Accounts and any interest thereon. Provided, that the amount received by the Participant as a
result of the revocation or the amount withdrawn shall be limited to the amount necessary to
satisfy the unforeseeable emergency plus amounts necessary to pay taxes reasonably anticipated as a
result of the distribution.

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

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

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

This Article VI also applies to former Participants who incur an unforeseeable emergency and
who still have a Plan Account balance.

If a Participant obtains a payment upon an unforeseeable emergency, the Participant’s deferral
election under this Plan shall terminate.

ARTICLE VII

AMENDMENT; TERMINATION; ADMINISTRATION.

This Plan may be amended or terminated at any time by a written resolution adopted by the
Committee, provided that no amendment or termination shall effect the rights of Participants to
receive amounts deferred but unpaid as of such termination or amendment.

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.

Post-2004 Accounts administered under this Plan are 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 Plan relating to
Post-2004 Accounts shall not be deemed applicable to Grandfathered Pre-2005 Accounts or to
constitute a material modification of the Plan with respect to such Grandfathered Pre-2005
Accounts. In the event that any provision of the Plan would cause an amount deferred hereunder to
be subject to tax under the Internal Revenue 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 VIII

MISCELLANEOUS PROVISIONS.

8.1 Assignment. No amounts deferred hereunder shall be assignable in whole or in part, either
by voluntary or involuntary act or operation of law. Rights hereunder are not subject to
anticipation, alienation, sale, transfer, assignment, pledge or encumbrance, and such rights may
not be subject to the debts, contracts, liabilities, engagements or torts of the Participant or his
beneficiary. All amounts deferred hereunder remain the unrestricted assets of the Employer. Any
assets purchased shall remain the sole property of the Employer subject to the claims of its
general creditors and shall be available for the Employer’s use for whatever purpose desired. No
Participant hereunder shall have any right other than the unsecured promise of the Employer to pay
deferred compensation in the future.

8.2 Taxes. When payments are made pursuant to this Plan, such payments are subject to income
tax withholding. Payroll taxes (FICA) are withheld at the time compensation is deferred.

8.3 No Employment Agreement. Nothing in this Agreement shall be construed as creating a right
in the Participant to continued employment with the Employer.

8.4 Unfunded. The amounts credited hereunder shall at all times be subject to the general
creditors of the Employer. Amounts may, however, be deposited in a grantor trust.

8.5 Vesting. Amounts deferred hereunder will always be one hundred percent (100%)vested and
nonforfeitable.

8.6 Duties Upon Insolvency. The Employer shall be considered “insolvent” if: (i) Employer is
unable to pay its debt as they become due, (ii) the Employer is subject to a pending proceeding as
a debtor under the United States Bankruptcy Code, or (iii) the Employer is in FDIC receivership.
Upon the occurrence of insolvency, the Board of Directors and the Chief Executive Officer of the
Employer shall have the duty to inform the Committee and any Trustee holding Plan assets of the
Employer’s insolvency. Upon insolvency, the Committee and the Trustee shall hold the assets of the
Trust for the benefit of the Employer’s general creditors. Nothing hereunder shall diminish the
rights of Plan Participants or their beneficiaries to pursue their rights as general creditors with
respect to benefits due under the Plan.

Benefit payments will resume to Participants and beneficiaries when the Board of Directors and
the Chief Executive Officer inform the Committee and any Trustee that the Employer is no longer
insolvent. Provided there are sufficient Employer assets when payments subsequently resume, the
first payment following a discontinuance hereunder shall include the aggregate amount of all
payments due to the Plan Participants or the beneficiaries under the terms of the Plan for the
prior of such discontinuance.

8.7 Claim Procedures. Disputes arising hereunder shall be resolved utilizing the claims
procedures adopted by the Northrim Bank Savings Incentive Plan. Such procedures are hereby
incorporated by reference.

8.8 Change in Control. Upon a change in control, a rabbi trust in the form attached hereto as
Exhibit “A,” will be created and all amounts credited to Participants’ accounts will be deposited
in such Trust. For purposes of this Section 8.8, “change in control” means the date on which any
one person, or more than one person acting as a group, acquires ownership of stock of thee
Employer, that together with stock held by such person or group, constitutes more than 50% of the
total fair market value or total voting power of the stock of such corporation. However, if that
person or group already owns more than 50% of the total fair market value or total voting power of
the stock of the Employer, the acquisition of additional stock by the same person or group is not
considered a Change in Control. Persons will be considered to be acting as a group if they are
owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock,
or similar business transaction with the Employer.

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

8.9 Entire Agreement. This document, the Beneficiary Designation Form and the Election Form
shall constitute the entire agreement between the Employer and the Participant. All modifications
must be in writing. This document shall be construed by the laws of the State of Alaska to the
extent such laws are not preempted by federal law. Venue for any lawsuit shall be the United
States District Court of Alaska, at Anchorage.

This Plan is adopted to be effective as of the first day of January, 1995, by Northrim Bank
and was amended effective the third day of October, 1996.

This Plan, as amended, is adopted to be effective as of January 1, 2005.

NORTHRIM BANK

By: /s/ Ronald A. Davis

	 	 	Ronald A. Davis

Its Chairman, Compensation
Committee     

 

Adopted by the Board of Directors of Northrim Bank on May 1, 2008.

3

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