Exhibit 10.3

 

AGREEMENT WITH RESPECT TO

SUPPLEMENTAL COMPENSATION AGREEMENT

AMONG MOUNTAIN BANK HOLDING COMPANY,

MT. RAINIER NATIONAL BANK AND STERLIN E. FRANKS

 

This Agreement is made and entered into effective this 3rd day of March, 2005,
by and among Mountain Bank Holding Company (the “Company”), Mt. Rainier National
Bank (“Bank” or “Employer”) and Sterlin E. Franks (the “Executive”).

 

Recitals

 

A. Effective January 1, 2002, the Company, the Bank and the Executive entered
into an Executive Supplemental Compensation Agreement (the “Agreement”).

 

B. In connection with the execution of the Agreement, each of the Company, the
Bank and the Executive reviewed certain summaries of, and descriptions of the
effects of, the Agreement.

 

C. Each of the Company, the Bank and the Executive understood and intended that
the Agreement be an arrangement that, as described in the recitals to such
Agreement, was to “reasonably induce the Executive to remain in the Employer’s
employment.”

 

D. At the time of the execution of the Agreement, neither the Company, the Bank
nor the Executive was aware of a particular provision of the Agreement, the
effect of which would be to allow the Executive to voluntarily terminate
employment after a five-year period and nonetheless receive certain benefits
under the Agreement upon reaching the age of 65.

 

E. Such voluntary termination provision is contrary to the intent of the
Company, the Bank and the Executive insofar as it does not serve as an incentive
to long-term retention of the Executive.

 

F. The Company, the Bank and the Executive desire to restate the voluntary
termination provisions of the Agreement to reflect the intent of each of them at
the time the Agreement was executed, such restatement to be effective for all
purposes as of the date of the original execution of the Agreement.

 

Agreement

 

NOW, THEREFORE, the parties agree as follows:

 

1. Restatement of Section 5.2 of Agreement. Section 5.2 of the Agreement
(“Voluntary Termination by the Executive”), shall be omitted in its entirety and
replaced by the following:

 

If the Executive’s employment is terminated by voluntary resignation prior to
the date specified in this Agreement at Paragraph 1.6 which constitutes “Early
Retirement Date/ Early Retirement Age,” and such resignation is not subject to
the provisions of subparagraph 5.4 regarding Termination on Account of or After
a Change in Control, the Executive shall forfeit any and all rights and benefits
he may have under the terms of this Agreement and shall have no right to be paid
any of the amounts which would otherwise be due or paid to the Executive by the
Bank pursuant to the terms of this Agreement.

 

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2. No Effect on Remainder of Agreement. To the extent that any paragraph, term,
or provision of the Agreement is not specifically amended herein, said
paragraph, term, or provision shall remain in full force and effect as set forth
in the Agreement.

 

3. Effective as of Date of Execution. The Company, the Bank and the Executive
expressly agree that the restatement of the Agreement as set forth above is for
the purpose of conforming the terms of the Agreement to their respective intents
at the time of execution of the Agreement, and shall be deemed to be effective
for all purposes as of January 1, 2002.

 

IN WITNESS HEREOF, Executive, a duly authorized Bank representative, and a duly
authorized Company representative have signed this Agreement as of the date
above written.

 

Bank: Mt. Rainier National Bank By:  

/s/ Steve W. Moergeli

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Title:   President and CEO Company: By:  

/s/ Roy T. Brooks

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Title:   President and CEO Executive: By:  

/s/ Sterlin E. Franks

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Title:   Senior Vice President and Credit Administrator

 

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