Document:

Exhibit 10.2

 

IDERA PHARMACEUTICALS,
INC. 

2013 STOCK INCENTIVE
PLAN

RESTRICTED STOCK UNIT AGREEMENT

 

This RESTRICTED STOCK
UNIT AGREEMENT (the “Agreement”), dated as of ________________ (the “Date of Grant”), is
delivered by Idera Pharmaceuticals, Inc. (the “Company”) to Vincent J. Milano (the “Participant”).

 

RECITALS

 

The Idera Pharmaceuticals,
Inc. 2013 Stock Incentive Plan (the “Plan”) provides for the grant of restricted stock units in accordance with
the terms and conditions of the Plan. The Board has decided to make this grant of restricted stock units as an inducement for the
Participant to promote the best interests of the Company and its stockholders. The Participant hereby acknowledges the receipt
of a copy of the official prospectus for the Plan, which is available by accessing the Company’s intranet at https://intranet.iderapharma.com.
Paper copies of the Plan and the official Plan prospectus are available by contacting the General Counsel of the Company. This
Agreement is made pursuant to the Plan and is subject in its entirety to all applicable provisions of the Plan. Capitalized terms
used herein and not otherwise defined will have the meanings set forth in the Plan.

 

1.            
Grant of Stock Units. Subject to the terms and conditions set forth in this Agreement and in the Plan, the Company
hereby grants the Participant _______ restricted stock units, subject to the restrictions set forth below and in the Plan (the
 “Stock Units”). Each Stock Unit represents the right of the Participant to receive a share of common stock of
the Company (“Common Stock”), if and when the specified conditions are met in Section 3 below, and on the applicable
payment date set forth in Section 5 below.

 

2.            
Stock Unit Account. Stock Units represent hypothetical shares of Common Stock, and not actual shares of stock. The
Company shall establish and maintain a Stock Unit account, as a bookkeeping account on its records, for the Participant and shall
record in such account the number of Stock Units granted to the Participant. No shares of Common Stock shall be issued to the Participant
at the time the grant is made, and the Participant shall not be, and shall not have any of the rights or privileges of, a stockholder
of the Company with respect to any Stock Units recorded in the Stock Unit account. The Participant shall not have any interest
in any fund or specific assets of the Company by reason of this award or the Stock Unit account established for the Participant.

 

3.            
Vesting. The Stock Units shall be fully vested as of the Date of Grant.

 

4.            
Payment of Stock Units and Tax Withholding.

 

(a)              
Prior to, or on, _______________, the Company shall issue to the Participant one share of Common Stock for each vested Stock
Unit, subject to applicable tax withholding obligations.

 

(b)              
All obligations of the Company under this Agreement shall be subject to the rights of the Company and its subsidiaries
(the “Employer”) as set forth in the Plan to withhold amounts required by law to be withheld for any FICA,
federal income, state, local and other tax liabilities (“Withholding Taxes”), if applicable. By accepting this
Agreement, Participant hereby elects, effective on the date Participant accepts this Agreement, to sell shares of Common Stock
issued in respect of the Agreement in an amount having an aggregate Fair Market Value equal to the Withholding Taxes, and to allow
UBS Financial Services Inc. (the “Broker”) to remit the cash proceeds of such sale to the Company (a “Sell
to Cover”). The Participant represents that the Participant has adopted a 10b5-1 Plan to permit Participant to conduct
a Sell to Cover sufficient to satisfy the Withholding Taxes. To the extent not paid in accordance with the immediately preceding
sentences, the Participant shall be required to pay to the Employer, or make other arrangements satisfactory to the Employer to
provide for the payment of, any federal, state, local or other taxes that the Employer is required to withhold with respect to
the Stock Units.

 

     

     

    

 

(c)              
The obligation of the Company to deliver Common Stock shall also be subject to the condition that if at any time the Board
shall determine in its discretion that the listing, registration or qualification of the shares upon any securities exchange or
under any state or federal law, or the consent or approval of any governmental regulatory body is necessary or desirable as a condition
of, or in connection with, the issuance of shares, the shares may not be issued in whole or in part unless such listing, registration,
qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Board. The
issuance of shares, if any, to the Participant pursuant to this Agreement is subject to any applicable taxes and other laws or
regulations of the United States or of any state, municipality or other country having jurisdiction thereof.

 

5.            
No Stockholder Rights; Dividend Equivalents. Neither the Participant, nor any person entitled to receive payment
in the event of the Participant’s death, shall have any of the rights and privileges of a stockholder with respect to shares
of Common Stock, including voting or dividend rights, until certificates for shares have been issued upon payment of Stock Units.
The Participant acknowledges that no election under Section 83(b) of the Code is available with respect to Stock Units.

 

6.            
Grant Subject to Plan Provisions. This grant is made pursuant to the Plan, the terms of which are incorporated herein
by reference, and in all respects shall be interpreted in accordance with the Plan. The grant and payment of the Stock Units are
subject to the provisions of the Plan and to interpretations, regulations and determinations concerning the Plan established from
time to time by the Board in accordance with the provisions of the Plan, including, but not limited to, provisions pertaining to
(a) rights and obligations with respect to withholding taxes, (b) the registration, qualification or listing of the shares of Common
Stock, (c) changes in capitalization of the Company and (d) other requirements of applicable law. The Board shall have the authority
to interpret and construe the Stock Units pursuant to the terms of the Plan, and its decisions shall be conclusive as to any questions
arising hereunder.

 

7.            
No Employment or Other Rights. The grant of the Stock Units shall not confer upon the Participant any right to be
retained by or in the employ or service of any Employer and shall not interfere in any way with the right of any Employer to terminate
the Participant’s employment or service at any time. The right of any Employer to terminate at will the Participant’s
employment or service at any time for any reason is specifically reserved.

 

     

     

    

 

8.            
Assignment and Transfers. Except as the Board may otherwise permit pursuant to the Plan, the rights and interests
of the Participant under this Agreement may not be sold, assigned, encumbered or otherwise transferred except, in the event of
the death of the Participant, by will or by the laws of descent and distribution. In the event of any attempt by the Participant
to alienate, assign, pledge, hypothecate, or otherwise dispose of the Stock Units or any right hereunder, except as provided for
in this Agreement, or in the event of the levy or any attachment, execution or similar process upon the rights or interests hereby
conferred, the Company may terminate the Stock Units by notice to the Participant, and the Stock Units and all rights hereunder
shall thereupon become null and void. The rights and protections of the Company hereunder shall extend to any successors or assigns
of the Company and to the Company’s parents, subsidiaries, and affiliates. This Agreement may be assigned by the Company
without the Participant’s consent.

 

9.            
Applicable Law; Jurisdiction. The validity, construction, interpretation and effect of this Agreement shall be governed
by and construed in accordance with the laws of the State of Delaware, without giving effect to the conflicts of laws provisions
thereof. Any action arising out of, or relating to, any of the provisions of this Agreement shall be brought only in the United
States District Court for the District of Massachusetts, or if such court does not have jurisdiction or will not accept jurisdiction,
in any court of general jurisdiction in Boston, Massachusetts, and the jurisdiction of such court in any such proceeding shall
be exclusive. Notwithstanding the foregoing sentence, on and after the date a Participant receives shares of Common Stock hereunder,
the Participant will be subject to the jurisdiction provision set forth in the Company’s bylaws.

 

10.          
Notice. Any notice to the Company provided for in this instrument shall be addressed to the Company in care of the
General Counsel at the corporate headquarters of the Company, and any notice to the Participant shall be addressed to such Participant
at the current address shown on the payroll of the Employer. Any notice shall be delivered by hand, or enclosed in a properly sealed
envelope addressed as stated above, registered and deposited, postage prepaid, in a post office regularly maintained by the United
States Postal Service or by the postal authority of the country in which the Participant resides or to an internationally recognized
expedited mail courier.

 

11.          
Recoupment Policy. The Participant agrees that, subject to the requirements of applicable law, the Stock Units, and
the right to receive and retain any Common Stock or cash payments covered by this Agreement, shall be subject to rescission, cancellation
or recoupment, in whole or part, if and to the extent so provided under any “clawback” or similar policy of the Company
in effect on the Date of Grant or that may be established thereafter.

 

12.           Application
of Section 409A of the Code. This Agreement is intended to be exempt from section 409A of the Code under the
 “short-term deferral” exception and to the extent this Agreement is subject to section 409A of the Code, it
will in all respects be administered in accordance with section 409A of the Code. Any provision that would cause this
Agreement to fail to satisfy section 409A of the Code shall have no force or effect until amended to comply with section 409A
of the Code (which amendment may be retroactive to the extent permitted by section 409A of the Code and may be made by the
Company without the consent of the Participant). Any reference in this Agreement to section 409A of the Code will also
include any proposed, temporary or final regulations, or any other guidance, promulgated with respect to such Section by the
U.S. Department of the Treasury or the Internal Revenue Service. Notwithstanding the foregoing, if the Stock Units constitute
 “deferred compensation” under section 409A of the Code and the Stock Units become vested and settled upon the
Participant’s separation from service, payment with respect to the Stock Units shall be delayed for a period of six (6)
months after the Participant’s separation from service if the Participant is a “specified employee” as
defined under section 409A of the Code and if required pursuant to section 409A of the Code. If payment is delayed, the Stock
Units shall be settled and paid within thirty (30) days after the date that is six (6) months following the
Participant’s separation from service. Payments with respect to the Stock Units may only be paid in a manner and upon
an event permitted by section 409A of the Code, and each payment shall be treated as a separate payment, and the right to a
series of installment payments under the Stock Units shall be treated as a right to a series of separate payments. In no
event shall the Participant, directly or indirectly, designate the calendar year of payment.

 

[Signature Page
Follows]

 

     

     

    

 

IN WITNESS WHEREOF,
the Company has caused its duly authorized officer to execute this Agreement, and the Participant has executed this Agreement,
effective as of the Date of Grant.

 

		IDERA PHARMACEUTICALS, INC.
	 	 
	 	 
	 	Name:  	                           
	 	Title:	 

 

I hereby accept the award of Stock Units
described in this Agreement, and I agree to be bound by the terms of the Plan and this Agreement. I hereby agree that all decisions
and determinations of the Board with respect to the Stock Units shall be final and binding.

 

	 	 	 
	Date	 	ParticipantExhibit 10.1

    

    

    

    
      FIRST FINANCIAL NORTHWEST BANK

      SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

      This First Financial Northwest Bank Supplemental Executive Retirement Plan (“Plan”)

        is adopted as of this 10th day January, 2020 (the “Effective Date”) by First Financial Northwest Bank, a Washington state chartered commercial bank (the “Employer” or
        the “Bank”) for the benefit of Joseph W. Kiley III (the “Executive”).  The purpose of the Plan is to provide certain supplemental nonqualified pension benefits to
        certain executives who have contributed substantially to the success of the Employer and the Employer desires to incentivize the executives to continue in its employ.

      This Plan is intended to be and shall be administered as an income tax nonqualified, unfunded plan primarily for the purpose of providing deferred
        compensation for a select group of management or highly compensated employees within the meaning of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), Sections 201(2), 301(a)(3), and
        401(a)(1).  This Plan is intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and, accordingly, the intent of the parties hereto is that the
        Plan shall be operated and interpreted consistent with the requirements thereof.

      ARTICLE 1

        DEFINITIONS

          Whenever used in
        this Plan, the following terms have the meanings specified:
        

        

            1.1.  “Account Balance” means, as of any date, the liability that should be accrued by the Bank under generally accepted accounting principles (“GAAP”) on behalf of the Executive. 

          1.2. “Annuity Contract” means the following annuity contract(s) purchased and solely owned by the Bank:  a Flexible Premium Indexed Deferred Annuity Contract
          issued by Protective Life Insurance Company, contract #FG0000046 or such other annuity contracts (a) as the Bank may purchase from time to time in accordance with Plan Section 2.3
          or otherwise, the income value of which the Bank intends to serve as the measure of the Plan benefit for Executive and (b) are identified by Policy number in writing by the Bank as an “Annuity Contract” under this Plan.

          1.3.  “Beneficiary” means the person or entity designated, or otherwise determined in accordance with Article 4, in writing by the Executive to receive death
          benefits pursuant to this Plan in the event of the Executive’s death.

          1.4.  “Beneficiary Designation Form” means the form established from time to time by the Plan Administrator that the Executive completes, signs, and returns
          to the Plan Administrator to designate one or more Beneficiaries.

          1.5.  “Board” means the Board of Directors of the Employer.

          1.6.  “Change in Control” means the occurrence, through sale, exchange, merger, redemption or otherwise of a (i) change in ownership as defined in Treasury
          Regulation §l.409A-3(i)(5)(v), (ii) change in effective control as defined in Treasury Regulation §l.409A-3(i)(5)(vi), or (iii) change in the ownership of a substantial portion of the assets of the Company as defined in Treasury Regulation
          §1.409A-3(i)(5)(vii) as currently in effect and as may hereafter from time to time be amended.

              (a)  the merger, acquisition or consolidation of
          the Company or the Bank with any corporation pursuant to which the other corporation immediately after such merger, acquisition or  

       

        

      
        
          

      

      consolidation owns more than 50% of the voting securities (defined as any securities which vote generally in the election of its
          directors) of the Company or the Bank, as appropriate, outstanding immediately prior thereto or more than 50% of the Company’s or Bank’s total fair market value, as appropriate, immediately prior thereto;

               (b)  the date that any person, or persons acting as a group, as described in Treas. Reg.
          §1.409A-3(i)(5) (a “Person”), other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company or the Bank or in a fiduciary capacity, or a corporation controlling the Company the Bank or owned directly or
          indirectly by the shareholders of the Company or the Bank in substantially the same proportions as their ownership of stock of the Company or the Bank, becomes the beneficial owner (as defined in Rule 13d-3 under the Securities and Exchange Act
          of 1934, as amended), directly or indirectly, of securities of the Company or the Bank representing more than 80% of the total voting power represented by the Company's or the Bank’s then outstanding voting securities (as defined above);

    

     

      

            (c)  the date that a majority of the members of the board of directors of the Company or the Bank is replaced during any 12-month period by
        directors whose appointment or election is not endorsed by a two-third majority of the members of the board of directors of the Company before the date of the appointment or election; or

     

      

            (d)  the date that any Person acquires (or has acquired within the 12-month period ending on such date) substantially all of the assets of the
        Company or the Bank; provided, however, that any of the following acquisitions will be excluded from such calculation:

     

      

    
      
        	
                

                

              	
                (i)        an acquisition by a shareholder of the Company (immediately before the acquisition) in exchange for or with respect to its stock;

              

      

      
        	
                

                

              	
                (ii)       an acquisition by an entity 50% or more of the total value or voting power of which is owned directly or indirectly by the Company;

              

      

      
        	
                

                

              	
                (iii)      an acquisition by a Person that owns directly or indirectly 50% or more of the total value or voting power of the outstanding stock of
                  the Company; or

              

      

      
        	
                

                

              	
                (iv)      an acquisition by an entity 50% or more of the total value or voting power of which is owned directly or indirectly by a Person described in paragraph
                  (iii) above.

              

      

          1.7.  “Company” means First Financial Northwest, Inc.

          1.8.  “ERISA” means the Employee Retirement Income Security Act of 1974.

          1.9.  “Involuntary Termination” shall have the same meaning as in the Executive’s employment agreement.  If there is no employment agreement in effect
          with respect to the Executive, then Involuntary Termination shall have the same meaning as in Treas. Reg. §1.409A-1(n).  The term “Involuntary Termination” shall not include a Termination for Cause as defined in Section 5.3.

          1.10.  “Normal Retirement Age” means age sixty-nine (69).

          1.11.  “Rider” means the income rider attached to the Annuity Contract as an endorsement or other product feature that operates as an income
          rider, with such feature providing for a withdrawal or payment feature for the life of the annuitant.

      2

      

      
        
          

      

          1.12.  “Section 409A” means Section 409A of the Code and the Treasury Regulations and other guidance of general applicability issued thereunder.

          1.13.  “Separation from Service” means complete separation from service as that term is defined and interpreted in Section 409A.  For the avoidance of doubt, the
          Executive shall not be considered to have experienced a Separation from Service for purposes of the Plan if he continues to perform any service as an Employee for the Employer or an affiliated entity, even if such reduced service would constitute
          a separation from service under the Section 409A regulations.

      ARTICLE 2

          ASSET FINANCING, OWNERSHIP AND RIGHTS

          2.1.   Annuity Contract and Other Investments.  For purposes of satisfying its obligations to
          provide benefits under this Plan, the Bank has initially invested in the Annuity Contract and may invest in other investments.  However, nothing in this Section shall require the Bank to invest in any particular form of investment.

          2.2.   Ownership of the Annuity Contract.  The Bank is the sole owner of the
          Annuity Contract, and other such investments, and shall have the right to exercise all incidents of ownership.  The Bank shall be the beneficiary of the death proceeds of the Annuity Contract.  The Bank shall at all times be entitled to the
          Annuity Contract’s cash surrender value, as that term is defined in the Annuity Contract.

          2.3.   Right to Annuity Contract.  Notwithstanding any provision hereof to the contrary, the Bank
          shall have the right to sell or surrender any Annuity Contract without terminating this Plan, provided the Bank replaces the Annuity Contract with a comparable annuity policy, or asset of comparable value, with a comparable lifetime withdrawal
          feature and comparable benefit value.  Without limitation, the Annuity Contract at all times shall be the exclusive property of the Bank and shall be subject to the claims of the Bank’s creditors.

          2.4.   Rabbi Trust.  Employer may establish a “rabbi trust” to which contributions may be made to
          provide the Employer with a source of funds for purposes of satisfying the obligations of the Employer under the Plan.  The trust shall constitute an unfunded arrangement and shall not affect the status of the Plan as an unfunded plan for
          purposes of ERISA. Neither the Executive nor the Beneficiary shall have any beneficial ownership interest in any assets held in the trust.

      ARTICLE 3

        RETIREMENT AND OTHER BENEFITS

          3.1.   Normal Retirement Benefit. Upon the Executive’s Separation from Service after reaching
          Normal Retirement Age for any reason other than death, the Executive will be entitled to the monthly benefit payment described in this Section 3.1.  The amount of the benefit will equal the amount that is paid from the Annuity Contract through
          the Rider designated under this Plan to benefit the Executive, commencing on the first (1st) day of the second month following the date of the Executive’s Separation from Service, payable monthly and continuing for the Executive’s lifetime. 
          Subject to section 3.4, this shall be the Executive’s benefit in lieu of any other benefit under this Plan.

          3.2.   Early Termination Benefit.  In the event the Executive should incur a Separation from
          Service prior to Normal Retirement Age for any reason other than death or Change in Control, the Executive will be entitled to the monthly benefit payment described in this Section 3.2.  The amount of the benefit will be a percentage of the
          amount that is paid from the Annuity Contract through the Rider designated under this Plan to benefit the Executive.  The percentage is the ratio of the Account Balance on the date of 

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      Separation from Service to the projected Account Balance at Normal Retirement Age.  This percentage will be applied to the amount that
          is paid from the Annuity Contract through the Rider at Normal Retirement Age.  In the event the Executive dies prior to reaching Normal Retirement Age, benefits will be payable in accordance with Article 3.4 instead of this Article 3.2.  If the
          Executive survives to Normal Retirement Age, benefit payments will commence on the first day of the second month following the Executive’s Normal Retirement Age and will continue for the Executive's lifetime.  Subject to Article 3.4, this shall
          be the Executive’s benefit in lieu of any other benefit under this Plan.

          3.3.   Change in Control Benefit.  If the Executive is actively employed at the time of a Change in
          Control and experiences an Involuntary Termination within twenty-four (24) months following the Change in Control, the Executive will fully vest in the Normal Retirement Benefit as provided for in Article 3.1, with such benefit payable in the
          amount as provided for in Article 3.1.  Notwithstanding the foregoing, if in connection with the Change in Control the acquiring or surviving entity does not formally assume this Plan and its obligations at the time of the Change in Control, then
          the Executive shall be entitled to the benefit provided for in this Article 3.3 without regard to whether he experiences an Involuntary Termination. The Employer will establish a “rabbi trust”, if one has not already been established, for the
          purposes of this Plan, to which assets will be contributed to provide the Employer with a source of funds for purposes of satisfying the obligations of the Employer under the Plan.  The amount of the contribution to the “rabbi trust” will be the
          amount sufficient to satisfy the benefit under Article 3.1.  In the event the Executive dies prior to reaching Normal Retirement Age, benefits will be payable in accordance with Article 3.4 instead of this Article 3.3.  If the Executive survives
          to Normal Retirement Age, benefits payable under this Article 3.3 will commence on the first day of the second month following the later of the Executive’s Normal Retirement Age or Separation from Service and will continue for the Executive's
          lifetime.  Subject to Article 3.4, this shall be the Executive’s benefit in lieu of any other benefit under this Plan.

          3.4.   Death Benefits.

                         (a)  Death During Active Service. Upon the death of the Executive while in active service with the Employer, the Employer shall pay to the Executive’s Beneficiary the Account Balance, payable in a lump sum no later
          than sixty (60) days from the date of such death.  This shall be the Executive’s benefit in lieu of any other benefit under this Plan.

    

    

     

      

             (b)  Death Following a Separation from Service but Prior to Commencement of Benefits.  Upon the death of the Executive following a Separation from Service, having qualified for benefits, but prior to Commencement of
        Benefits, the Employer shall pay to the Executive’s Beneficiary the Account Balance, payable in a lump sum no later than sixty (60) days from the date of such death.  This shall be the Executive’s benefit in lieu of any other benefit under this
        Plan.

     

      

    
               (c)  Death During Benefit Period.  Upon death of the Executive after benefit payments have commenced but before receiving a total of one hundred eighty (180) monthly payments, the Employer shall pay to the Executive’s
          Beneficiary in a single lump sum the present value of the remaining payments (that is, one hundred eighty (180) payments less the number of payments already made), based on the accrued liability rate used in the Plan, no later than sixty (60)
          days from the date of death.  If the Executive dies after receiving at least one hundred eighty (180) payments, this Agreement will terminate and no additional payments will be made to the Executive’s Beneficiary under the Plan. 

      

      

          3.5.   Restriction on Timing of Distributions. Notwithstanding the applicable provisions
          of this Plan regarding timing of payments, the following special rules shall apply if the stock of the Employer is publicly traded at the time of the Executive’s Separation from Service in order for this Plan to comply with Section 409A: (i) to
          the extent the Executive is a “specified employee” (as defined under Section 409A) at 

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      the time of a distribution and to the extent such applicable provisions of Section 409A and the regulations thereunder require a delay
          of such distributions by a six-month period after the date of such Executive’s Separation from Service with the Employer, no such distribution shall be made prior to the date that is six months after the date of the Executive’s Separation from
          Service, and (ii) any such delayed payments shall be paid to the Executive in a single lump sum within five (5) business days after the end of the six (6) month delay, without interest.

      ARTICLE 4

        BENEFICIARIES

          4.1.   Beneficiary Designations. The Executive shall have the right to designate at any time a
          Beneficiary to receive any benefits payable under this Plan upon the death of the Executive. The Beneficiary designated under this Plan may be the same as or different from the Beneficiary designation under any other benefit plan of the Employer
          in which the Executive participates.

          4.2.   Beneficiary Designation; Changes. The Executive shall designate a Beneficiary by completing
          and signing the Beneficiary Designation Form and delivering it to the Plan Administrator or its designated agent. The Executive’s Beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Executive or if the
          Executive names a spouse as Beneficiary and the Executive and his spouse subsequently are divorced or legally separated. The Executive shall have the right to change a Beneficiary by completing, signing, and otherwise complying with the terms of
          the Beneficiary Designation Form and the Plan Administrator’s rules and procedures, as in effect from time to time. Upon the acceptance by the Plan Administrator of a new Beneficiary Designation Form, all Beneficiary designations previously filed
          shall be cancelled. The Plan Administrator shall be entitled to rely on the last Beneficiary Designation Form filed by the Executive and accepted by the Plan Administrator before the Executive’s death.

          4.3.   Acknowledgment. No designation or change in designation of a Beneficiary shall be effective
          until received in writing by the Plan Administrator or its designated agent.

          4.4.   No Beneficiary Designation. If the Executive dies without a valid Beneficiary designation,
          or if all designated Beneficiaries predecease the Executive, then the Executive’s spouse shall be the designated Beneficiary, unless the Executive and his spouse are legally separated. If the Executive has no surviving spouse, or the Executive
          and his spouse are legally separated, the benefits shall be distributed to the personal representative of the Executive’s estate.

          4.5.   Facility of Payment. If a benefit is payable to a minor, to a person declared incapacitated,
          or to a person incapable of handling the disposition of his or her property, the Employer may pay such benefit to the guardian, legal representative, or person having the care or custody of the minor, incapacitated person, or incapable person.
          The Employer may require proof of incapacity, minority, or guardianship as it may deem appropriate before distribution of the benefit. Distribution shall completely discharge the Employer from all liability for the benefit.

      ARTICLE 5

        GENERAL LIMITATIONS

          5.1.   Limits on Payments.  Notwithstanding anything contained in this Plan to the contrary, it is
          understood and agreed that the Bank shall not be required to make any payment or take any action under this Plan if: (a) such payment or action is prohibited by any governmental agency having jurisdiction over the Bank (hereinafter referred to as
          “Regulatory Authority”) in light of the fact that the Bank has been declared by Regulatory Authority to be troubled, or operating in an unsafe or unsound matter; or (b) such 

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      payment or action (i) would be prohibited by or would violate any provision of state or federal law applicable to the Bank, as now in
          effect or hereafter amended, (ii) would be prohibited by or would violate any applicable rules, regulations, orders or statements of policy, whether now existing or hereafter promulgated, of any Regulatory Authority, or (iii) otherwise would be
          prohibited by any Regulatory Authority.

          5.2.   Excess Parachute or Golden Parachute Payment. Notwithstanding any provision of this
          Agreement to the contrary, any benefit provided under this Agreement when added to all other amounts or benefits provided to or on behalf of Executive in connection with his termination of employment, would result in the imposition of an excise
          tax under Section 4999 of the Code, such payments shall be retroactively (if necessary) reduced to the extent necessary to avoid such excise tax imposition, or shall be forfeited to the extent the benefit would be a prohibited golden parachute
          payment pursuant to 12 C.F.R. §359.2 and for which the appropriate federal banking agency had not given written consent to pay pursuant to 12 C.F.R. §359.4. Upon written notice to Executive, together with calculations of Bank's independent
          auditors, Executive shall remit to Bank the amount of the reduction plus such interest as may be necessary to avoid the imposition of such excise tax. Notwithstanding the foregoing or any other provision of this contract to the contrary, if any
          portion of the amount herein payable to the Executive is determined to be non-deductible pursuant to the regulations promulgated under Section 280G of the Code, the Bank shall be required only to pay to Executive the amount determined to be
          deductible under Section 280G of the Code.

          5.3.   Termination for Cause. Notwithstanding anything to the contrary contained herein, in the
          event of the Executive's termination for Cause, this Plan shall terminate and no benefits shall be payable under the Plan.  For this purpose, “Cause” shall have the same meaning as in the Executive’s employment agreement with the Employer.  If no
          such employment agreement is in effect, or such employment agreement does not include a definition of “Cause” or a similar definition, then “Cause” shall be defined as (i) willful misconduct or gross neglect of duties which, in either case, has
          resulted, or in all probability is likely to result, in material economic damage to the Bank; provided that within 30 days after receiving notice of such misconduct or neglect, on which the Board is relying to terminate the Executive for cause,
          the Executive is are provided the opportunity to defend himself before the Board; or (ii) a repeated failure by the Executive to follow the written directives of the Board or any written Bank policy or guidelines expressly approved by the Board
          which has resulted, or in all probability is likely to result, in material economic damage to the Bank; provided, however, that if the Executive initially refuses to obey the written directives of the Board, (a) the Executive is furnished a
          written statement by the Board that it believes in good faith that the acts or non-acts in respect of the direction that is given the Executive were in the best interests of the Bank, and (b) the Executive is provided the opportunity to discuss
          with the Board reasons for not complying with the Board's directives; provided further that the Executive’s refusal to follow any written directive of the Board that would cause the Executive to commit any illegal act or engage in any illegal
          course of conduct shall not be grounds for terminating the Executive’s employment for Cause.

      ARTICLE 6

        CLAIMS AND REVIEW PROCEDURES

           6.1.   Claims

            Procedure. A person or Beneficiary (a “claimant”) who has not received benefits under the Plan that he or she believes should be paid shall make a claim for such benefits as follows:

                 (a)  Initiation - Written Claim. The claimant initiates a claim by submitting to the Plan Administrator a written claim for the benefits. If the claim relates to the contents of a notice received by the claimant, the
          claim must be made within sixty (60) days after the notice was received by the claimant. All other claims must be made within one hundred eighty (180) days after the date of the event that caused the claim to arise. The claim must state with
          particularity the determination desired by the claimant. 

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               (b)  Timing
            of Plan Administrator Response. The Plan Administrator shall respond to such claimant within ninety (90) days after receiving the claim. If the Plan Administrator determines that special circumstances require additional time for processing
          the claim, the Plan Administrator can extend the response period by an additional ninety (90) days, by notifying the claimant in writing, prior to the end of the initial ninety (90)-day period, that an additional period is required. The notice of
          extension must set forth the special circumstances and the date by which the Plan Administrator expects to render its decision.  The time period shall begin at the time a claim is filed, whether or not all information necessary for a
          determination accompanies the filing.

    

     

      

    
               (c)  Notice
            of Decision. If the Plan Administrator denies part or all of the claim, the Plan Administrator shall notify the claimant in writing of such denial. The Plan Administrator shall write the notification in a manner calculated to be understood
          by the claimant. The notification shall set forth: 

       

        

      
        	
                

                

              	

              	
                   (i)     The specific reasons for the denial,

              

      

      
        	
                

                

              	

              	
                   (ii)     A reference to the specific provisions of the Plan on which the denial is based,

              

      

      
        	
                

                

              	

              	
                   (iii)    A description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it is needed, and

              

      

      
        	
                

                

              	

              	
                   (iv)     An explanation of the Plan’s review procedures and the time limits applicable to such procedures.

              

      

          6.2.   Review Procedure. If the Plan Administrator denies part or all of the claim, the claimant
          shall have the opportunity for a full and fair review by the Plan Administrator of the denial, as follows:

                (a)  Initiation - Written Request. To
          initiate the review, the claimant, within sixty (60) days (180 days for a Disability claim) after receiving the Plan Administrator’s notice of denial, must file with the Plan Administrator a written request for review.

                (b)  Additional Submissions - Information
            Access. The claimant shall then have the opportunity to submit written comments, documents, records and other information relating to the claim. The Plan Administrator shall also provide the claimant, upon request and free of charge,
          reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits.

                (c)  Considerations on Review. In
          considering the review, the Plan Administrator shall take into account all materials and information the claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit
          determination.

                (d)  Timing of Plan Administrator Response.
          The Plan Administrator shall respond in writing to such claimant within sixty (60) days after receiving the request for review. If the Plan Administrator determines that special circumstances require additional time for processing the claim, the
          Plan Administrator can extend the response period by an additional sixty (60) days by notifying the claimant in writing, prior to the end of the initial sixty (60)-day period, that an additional period is required. The notice of extension must
          set forth the special circumstances and the date by which the Plan Administrator expects to render its decision.

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                 (e)  Notice of Decision. The Plan
          Administrator shall notify the claimant in writing of its decision on review. The Plan Administrator shall write the notification in a manner calculated to be understood by the claimant. The notification shall set forth:

      
        	
                

                

              	

              	
                   (i)     The specific reasons for the denial,

              

      

      
        	
                

                

              	

              	
                   (ii)    A reference to the specific provisions of the Plan on which the denial is based,

              

      

      
        	
                

                

              	

              	
                   (iii)    A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in
                  applicable ERISA regulations) to the claimant’s claim for benefits, and

              

      

      
        	
                

                

              	

              	
                   (iv)     A statement of the claimant’s right to bring a civil action under ERISA Section 502(a).

              

      

                 (f)  Statute of Limitations.  If the Plan
          Administrator provides the claimant with a final notice of denial of appeal, in order to preserve the Executive’s claim, the claimant must file an action with respect to the denied claim no later than the second anniversary of the date of the
          Plan Administrator's final notice of denial of appeal.

      ARTICLE 7

        MISCELLANEOUS

          7.1.   Amendments and Termination.  Subject to Article 7.12 of this Plan, this Agreement may be
          amended or terminated solely by a written agreement signed by the Bank and by the Executive.

          7.2.   No Guarantee of Employment. This Plan is not an employment policy or contract. It does not
          give any Executive the right to remain an employee of the Employer, nor does it interfere with the Employer’s right to discharge the Executive. It also does not require any Executive to remain an employee nor interfere with any Executive’s right
          to terminate employment at any time.

          7.3.   Non-Transferability. Benefits under this Plan cannot be sold, transferred, assigned,
          pledged, attached, or encumbered in any manner.

          7.4.   Tax Withholding. The Employer shall withhold any taxes that are required to be withheld from
          the benefits provided under this Plan.

          7.5.   Applicable Law. Except to the extent preempted by the laws of the United States of America,
          the validity, interpretation, construction and performance of this Plan shall be governed by and construed in accordance with the laws of the State of Washington, without giving effect to the principles of conflict of laws of such state.

          7.6.   Unfunded Arrangement. The Executive and the Beneficiary are general unsecured creditors of
          the Employer for the payment of benefits under this Plan. The benefits represent the mere promise by the Employer to pay such benefits. The rights to benefits are not subject in any manner to anticipation, alienation, sale, transfer, assignment,
          pledge, encumbrance, attachment, or garnishment by creditors. Any insurance, annuity contract or other asset purchased by Employer to fund its obligations under this Plan shall be a general asset of the Employer to which the Executive and
          Beneficiary have no preferred or secured claim.

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          7.7.   Benefit Provision.  Notwithstanding the provisions of this Plan in the payment of the
          benefits under Article 3, if the Plan benefits are informally funded by Annuity Contract(s) identified in the Plan, then any benefits payable under this Plan are contingent solely upon the amount that is provided by said Annuity Contract(s) or
          other provision as provided for in Article 2.

          7.8.   Severability. If any provision of this Plan is held invalid, such invalidity shall not
          affect any other provision of this Plan, and each such other provision shall continue in full force and effect to the full extent consistent with law. If any provision of this Plan is held invalid in part, such invalidity shall not affect the
          remainder of the provision, and the remainder of such provision together with all other provisions of this Plan shall continue in full force and effect to the full extent consistent with law.

          7.9.   Headings. The headings of articles herein are included solely for convenience of reference
          and shall not affect the meaning or interpretation of any provision of this Plan.

          7.10.    
        Notices. All notices, requests, demands, and other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered by hand or mailed, certified
          or registered mail, return receipt requested, with postage prepaid. Unless otherwise changed by notice, notice shall be properly addressed to the Executive if addressed to the address of the Executive on the books and records of the Employer at
          the time of the delivery of such notice, and properly addressed to the Employer if addressed to the Board, at 201 Wells Avenue South, Renton, Washington, 98057.

          7.11.    Termination or Modification of Plan Because of Changes in Law, Rules or Regulations. The Employer is entering into this Plan on the assumption that certain existing tax laws, rules,
          and regulations will continue in effect in their current form. If that assumption materially changes and the change has a material detrimental effect on this Plan, then the Employer reserves the right to terminate or modify this Plan accordingly,
          provided that the Executive is provided a benefit that is economically equivalent to the benefit provided under the Plan prior to the change in assumption, and such equivalent benefit does result in a violation of Section 409A.

      ARTICLE 8

        ADMINISTRATION OF AGREEMENT

          8.1.   Plan Administrator Duties. This Plan shall be administered by a Plan Administrator
          consisting of the Board or such committee or person(s) as the Board shall appoint. The Plan Administrator shall have the sole and absolute discretion and authority to interpret and enforce all appropriate rules and regulations for the
          administration of this Plan and the rights of the Executive under this Plan, to decide or resolve any and all questions or disputes arising under this Plan, including benefits payable under this Plan and all other interpretations of this Plan, as
          may arise in connection with the Plan. No benefit shall be payable hereunder to any person unless the Plan Administrator, in its sole discretion, determines such benefit is due.

          8.2.   Agents. In the administration of this Plan, the Plan Administrator may employ agents and
          delegate to them such administrative duties as it sees fit (including acting through a duly appointed representative) and may from time to time consult with counsel, who may be counsel to the Employer.

          8.3.   Binding Effect of Decisions. The decision or action of the Plan Administrator with respect
          to any question arising out of or in connection with the administration, interpretation, and application of the Plan and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any
          interest in the Plan.  Without limiting the foregoing, it is acknowledged that the value of the benefits payable hereunder may be difficult to determine in the event the Employer does not actually purchase and maintain the Annuity Contract as
          contemplated hereunder; therefore, in such event, the 

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       Employer shall have the right to make any reasonable assumptions in determining the benefits payable hereunder and any such
          determination made in good faith shall be binding on the Executive.

          8.4.   Indemnity of Plan Administrator. The Plan Administrator shall not be liable to any person
          for any action taken or omitted in connection with the interpretation and administration of this Plan, unless such action or omission is attributable to the gross negligence or willful misconduct of the Plan Administrator or any of its members.
          The Employer shall indemnify and hold harmless the members of the Plan Administrator against any and all claims, losses, damages, expenses, or liabilities arising from any action or failure to act with respect to this Plan, except in the case of
          gross negligence or willful misconduct by the Plan Administrator or any of its members.

          8.5.   Employer Information. To enable the Plan Administrator to perform its functions, the
          Employer shall supply full and timely information to the Plan Administrator on all matters relating to the date and circumstances of the retirement, death, or Separation of Service of the Executive and such other pertinent information as the Plan
          Administrator may reasonably require.

      This Supplemental Executive Retirement Plan Agreement is hereby adopted as of the date written above.

      	
              THE EXECUTIVE:

            	 	
              FIRST FINANCIAL NORTHWEST BANK

               

               

            
	/s/Joseph W. Kiley III 

            	 	
              By:

            	/s/Richard P. Jacobson 

            
	 	 	
               

                

              Title:

            	 EVP, CFO & COO

            

      

      

      
        

          

          

          

          

          

        

        

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      BENEFICIARY DESIGNATION

      FIRST FINANCIAL NORTHWEST BANK

      SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

      

      

      I, Joseph W. Kiley III, designate the following as Beneficiary of any death benefits under the First Financial Northwest Bank Supplemental Executive
        Retirement Plan for the benefit of Joseph W. Kiley III:

      

      
        	
                 

              	
                Primary: 

                

              	
                 

              
	
                 

              	
                 

              	
                 

              
	 	 	 
	
                 

              	
                Contingent:  

                

              	
                 

              
	
                 

              	
                 

              	
                 

              

      

      Note: To name a trust as Beneficiary, please provide the name of the trustee(s) and the exact name and date of the trust agreement.

      I understand that I may change these Beneficiary designations by filing a new written designation with the Employer. I further understand that the
        designations will be automatically revoked if the Beneficiary predeceases me, or if I have named my spouse as Beneficiary and our marriage is subsequently dissolved.

      
        	
                 

              	
                Signature: 

                

              	/s/Joseph W. Kiley III

              
	
                 

              	
                 

              	
                 

              
	
                 

              	
                Date: 

                

              	January 10, 2020 	

              

      

      Accepted by the Employer this 10th day of January, 2020.

      

        	
                 

              	
                By: 

                

              	/s/Richard P. Jacobson

              
	
                 

              	
                 

              	
                 

              
	 	Print Name: 

              	Richard P. Jacobson 

              
	 	 	 
	 	Title: 

              	EVP, CFO & COO  

              

      

      

    

  

   

  

   

  

   

  

   

  

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