<PAGE>

                                                                   EXHIBIT 10(H)

                              EMPLOYMENT AGREEMENT

     AGREEMENT between First Security Bank of Missoula, ("Bank"), and William L.
Bouchee, ("Executive"), and ratified by Glacier Bancorp, Inc. ("Company"),

                                    RECITALS

A.   First Security Bank of Missoula, ("Bank"), is a wholly owned subsidiary of
     Glacier Bancorp, Inc., ("Company").

B.   Executive is the Chief Executive Officer of the Bank and a director of the
     Bank.

C.   The Bank desires Executive to continue his employment at the Bank under the
     terms and conditions of this Agreement.

D.   Executive desires to continue his employment at the Bank under the terms
     and conditions of this Agreement.

                                    AGREEMENT

1.   EMPLOYMENT. The Bank agrees to employ Executive and Executive accepts
     employment by the Bank on the terms and conditions set forth in this
     Agreement. Executive's title will be the Chief Executive Officer of the
     Bank. During the term of this Agreement, Executive will serve as a director
     of the Bank.

2.   TERM. The term of this Agreement is for one year beginning January 1, 2007.

3.   DUTIES. The Bank will employ Executive as its Chief Executive Officer.
     Executive will faithfully and diligently perform his assigned duties, which
     are as follows:

     (a)  Bank Performance. Executive will be responsible for all aspects of the
          Bank's performance, including without limitation, directing that daily
          operational and managerial matters are performed in a manner
          consistent with the Bank's and Company's policies.

     (b)  Development and Preservation of Business. Executive will be
          responsible for the development and preservation of banking
          relationships and other business development efforts (including
          appropriate civic and community activities) in Missoula County.

     (c)  Report to Board. Executive will report directly to the Bank's board of
          directors and to the Chief Executive Officer of the Company. The
          Bank's board of directors may, from time to time, modify Executive's
          title or add, delete, or modify Executive's performance
          responsibilities to accommodate management succession, as well as any
          other management objectives of the Bank or of the Company. Executive
          will assume any additional positions, duties and responsibilities as
          may reasonably be requested of him with or without additional
          compensation, as appropriate and consistent with Sections 3(a) and
          3(b) of this Agreement.

4.   EXTENT OF SERVICES. Executive will devote all of his working time,
     attention and skill to the duties and responsibilities set forth in Section
     3. To the extent that such activities do not interfere with his duties
     under Section 3, Executive may participate in other businesses as a passive
     investor, but (a) Executive may not actively participate in the operation
     or management of those businesses, and (b) Executive may not, without the
     Bank's prior written consent, make or maintain any investment in a business
     with which the Bank or Company has an existing competitive or commercial
     relationship.

<PAGE>

5.   SALARY. Executive will receive an annual salary of $96,000.00 to be paid in
     accordance with the Bank's regular payroll schedule.

6.   INCENTIVE COMPENSATION. During the Term, the Bank's board of directors,
     subject to ratification by Company's board of directors, will determine the
     amount of bonus to be paid by the Bank to Executive for that year. In
     making this determination, the Bank's board of directors will consider
     factors such as Executive's performance of his duties and the safety,
     soundness and profitability of the Bank. Executive's bonus will reflect
     Executive's contribution to the performance of the Bank during the year.
     This bonus will be paid to Executive no later than January 31 of the year
     following the year in which the bonus is earned by Executive.

7.   INCOME DEFERRAL. Executive will be eligible to participate in any program
     available to the Bank's and Company's senior management for income
     deferral, for the purpose of deferring receipt of any or all of the
     compensation he may become entitled to under this Agreement.

8.   VACATION AND BENEFITS.

     (a)  Vacation and Holidays. Executive will receive four weeks of paid
          vacation each year in addition to all holidays observed by the Bank.
          Executive may carry over, in the aggregate, up to four weeks of unused
          vacation to a subsequent year. Any unused vacation time in excess of
          four weeks will not accumulate or carry over from one calendar year to
          the next. Each calendar year Executive shall take not less than one
          (1) week vacation.

     (b)  Benefits. Executive will be entitled to participate in any group life
          insurance, disability, health and accident insurance plans, profit
          sharing and pension plans and in other employee fringe benefit
          programs the Bank or Company may have in effect from time to time for
          its similarly situated employees, in accordance with and subject to
          any policies adopted by the Bank's board of directors with respect to
          the plans or programs, including without limitation, any incentive or
          employee stock option plan, deferred compensation plan, 401(k) plan,
          and Supplemental Executive Retirement Plan (SERP). Neither the Bank
          nor Company, through this Agreement, obligate itself to make any
          particular benefits available to its employees.

     (c)  Business Expenses. The Bank will reimburse Executive for ordinary and
          necessary expenses which are consistent with past practice at the Bank
          (including, without limitation, travel, entertainment, and similar
          expenses) and which are incurred in performing and promoting the
          Bank's business. Executive will present from time to time itemized
          accounts of these expenses, subject to any limits of the Bank policy
          or the rules and regulations of the Internal Revenue Service.

9.   TERMINATION OF EMPLOYMENT.

     (a)  Termination by the Bank for Cause. If the Bank terminates Executive's
          employment for Cause (defined below) before this Agreement terminates,
          the Bank will pay Executive the salary earned and expenses
          reimbursable under this Agreement incurred through the date of his
          termination. Executive will have no right to receive compensation or
          other benefits for any period after termination under this Section
          9(a).

     (b)  Other Termination by the Bank. If the Bank terminates Executive's
          employment without Cause before this Agreement terminates, or
          Executive terminates his employment for Good Reason (defined below),
          the Bank will pay Executive for the remainder of the Term the
          compensation and other benefits he would have been entitled to if his
          employment had not terminated.

     (c)  Death or Disability. This Agreement terminates (1) if Executive dies
          or (2) if Executive is unable to perform his duties and obligations
          under this Agreement for a period of 90 consecutive days as a result
          of a physical or mental disability arising at any time during the term
          of this Agreement, unless with reasonable accommodation Executive
          could continue to perform his duties under this Agreement and

<PAGE>

          making these accommodations would not pose an undue hardship on the
          Bank. If termination occurs under this Section 9(c), Executive or his
          estate will be entitled to receive all compensation and benefits
          earned and expenses reimbursable through the date Executive's
          employment terminated.

     (d)  Termination Related to a Change in Control.

          (1)  Termination by Bank. If the Bank, or its successor in interest by
               merger, or its transferee in the event of a purchase in an
               assumption transaction (for reasons other than Executive's death,
               disability, or Cause) (1) terminates Executive's employment
               within one year following a Change in Control (as defined below),
               or (2) terminates Executive's employment before the Change in
               Control but on or after the date that any party either announces
               or is required by law to announce any prospective Change in
               Control transaction and a Change in Control occurs within six
               months after the termination, the Bank will provide Executive
               with the payment and benefits described in Section 9(d)(3) below.

          (2)  Termination by Executive. If Executive terminates Executive's
               employment, with or without Good Reason, within one year
               following a Change in Control, the Bank will provide Executive
               with the payment and benefits described in Section 9(d)(3).

          (3)  Payments. If Section 9(d)(1) or (2) is triggered in accordance
               with its terms, the Bank will: (i) pay Executive in 12 monthly
               installments in an amount equal to the Executive's annual salary
               (determined as of the day before the date Executive's employment
               was terminated) and (ii) maintain and provide for one year
               following Executive's termination, at no cost to Executive, the
               benefits described in Section 8(b) to which Executive is entitled
               (determined as of the day before the date of such termination);
               but if Executive's participation in any such benefit is
               thereafter barred or not feasible, or discontinued or materially
               reduced, the Bank will arrange to provide Executive with either
               benefits substantially similar to those benefits or a cash
               payment of substantially similar value in lieu of the benefits.

     (e)  Limitations on Payments Related to Change in Control. The following
          apply notwithstanding any other provision of this Agreement:

          (1)  the total of the payments and benefits described in Section
               9(d)(3) will be less than the amount that would cause them to be
               a "parachute payment" within the meaning of Section 280G(b)(2)(A)
               of the Internal Revenue Code;

          (2)  the payment and benefits described in Section 9(d)(3) will be
               reduced by any compensation (in the form of cash or other
               benefits) received by Executive from the Bank or its successor
               after the Change in Control; and

          (3)  Executive's right to receive the payments and benefits described
               in Section 9(d)(3) terminates (i) immediately if before the
               Change in Control transaction closes, Executive terminates his
               employment without Good Reason, or the Bank terminates
               Executive's employment for Cause, or (ii) one year after a Change
               of Control occurs.

     (f)  Return of Bank Property. If and when Executive ceases, for any reason,
          to be employed by the Bank, Executive must return to the Bank all
          keys, pass cards, identification cards and any other property of the
          Bank. At the same time, Executive also must return to the Bank all
          originals and copies (whether in memoranda, designs, devices,
          diskettes, tapes, manuals, and specifications) which constitute
          proprietary information or material of the Bank. The obligations in
          this paragraph include the return of documents

<PAGE>

          and other materials which may be in his desk at work, in his car, in
          place of residence, or in any other location under his control.

     (g)  Cause. "Cause" means any one or more of the following:

          (1)  Willful misfeasance or gross negligence in the performance of
               Executive's duties;

          (2)  Conviction of a crime in connection with his duties;

          (3)  Conduct demonstrably and significantly harmful to the Bank, as
               reasonably determined on the advice of legal counsel by the
               Bank's board of directors; or

          (4)  Permanent disability, meaning a physical or mental impairment
               which renders Executive incapable of substantially performing the
               duties required under this Agreement, and which is expected to
               continue rendering Executive so incapable for the reasonably
               foreseeable future.

     (h)  Good Reason. "Good Reason" means only any one or more of the
          following:

          (1)  Reduction of Executive's salary or reduction or elimination of
               any compensation or benefit plan benefiting Executive, unless the
               reduction or elimination is generally applicable to other
               executive officers within the Company (or executive officers of a
               successor or controlling entity of the Bank) formerly benefitted;

          (2)  The assignment to Executive without his consent of any authority
               or duties materially inconsistent with Executive's position as of
               the date of this Agreement;

          (3)  The material breach of this Agreement by the Bank, or

          (4)  A relocation or transfer of Executive's principal place of
               employment outside Missoula County, Montana.

     (i)  Change in Control. "Change in Control" means a change "in the
          ownership or effective control" or "in the ownership of a substantial
          portion of the assets" of the Company and the Bank, within the meaning
          of Section 280G of the Internal Revenue Code.

10.  CONFIDENTIALITY. Executive will not, after the date this Agreement was
     signed, including during and after its Term, use for his own purposes or
     disclose to any other person or entity any confidential business
     information concerning the Bank or its business operations, unless (1) the
     Bank consents to the use or disclosure of confidential information; (2) the
     use or disclosure is consistent with Executive's duties under this
     Agreement, or (3) disclosure is required by law or court order. For
     purposes of this Agreement, confidential business information includes,
     without limitation, trade secrets (as defined under the Montana Uniform
     Trade Secrets Act, Montana Code Section 30-14-402), various confidential
     information on investment management practices, marketing plans, pricing
     structure and technology of either the Bank or Company. Executive will also
     treat the terms of this Agreement as confidential business information.

11.  NONCOMPETITION. During the Term and the terms of any extensions or renewals
     of this Agreement and for a period equal to one year after Executive's
     employment with the Bank and Company has terminated, Executive will not,
     directly or indirectly, as a shareholder, director, officer, employee,
     partner, agent, consultant, lessor, creditor or otherwise:

     (a)  provide management, supervisory or other similar services to any
          person or entity engaged in any business in counties in which the Bank
          or Company may have a presence which is competitive with the business
          of the Bank or Company or a subsidiary as conducted during the term of
          this Agreement or as conducted as of the date of termination of
          employment, including any preliminary steps associated with the
          formation of a new bank.

<PAGE>

     (b)  persuade or entice, or attempt to persuade or entice any employee of
          the Bank or Company or a subsidiary to terminate his/her employment
          with the Bank or a subsidiary.

     (c)  persuade or entice or attempt to persuade or entice any person or
          entity to terminate, cancel, rescind or revoke its business or
          contractual relationships with the Bank or Company.

12.  ENFORCEMENT.

     (a)  The Bank and Executive stipulate that, in light of all of the facts
          and circumstances of the relationship between Executive and the Bank,
          the agreements referred to in Sections 10 and 11 (including without
          limitation their scope, duration and geographic extent) are fair and
          reasonably necessary for the protection of the Bank's and Company's
          confidential information, goodwill and other protectable interests. If
          a court of competent jurisdiction should decline to enforce any of
          those covenants and agreements, Executive and the Bank request the
          court to reform these provisions to restrict Executive's use of
          confidential information and Executive's ability to compete with the
          Bank and Company to the maximum extent, in time, scope of activities
          and geography, the court finds enforceable.

     (b)  Executive acknowledges the Bank and Company will suffer immediate and
          irreparable harm that will not be compensable by damages alone if
          Executive repudiates or breaches any of the provisions of Sections 10
          or 11 or threatens or attempts to do so. For this reason, under these
          circumstances, the Bank, in addition to and without limitation of any
          other rights, remedies or damages available to it at law or in equity,
          will be entitled to obtain temporary, preliminary and permanent
          injunctions in order to prevent or restrain the breach, and the Bank
          will not be required to post a bond as a condition for the granting of
          this relief.

13.  COVENANTS. Executive specifically acknowledges the receipt of adequate
     consideration for the covenants contained in Sections 10 or 11 and that the
     Bank is entitled to require him to comply with these Sections. These
     Sections will survive termination of this Agreement. Executive represents
     that if his employment is terminated, whether voluntarily or involuntarily,
     Executive has experience and capabilities sufficient to enable Executive to
     obtain employment in areas which do not violate this Agreement and that the
     Bank's enforcement of a remedy by way of injunction will not prevent
     Executive from earning a livelihood.

14.  ARBITRATION.

     (a)  Arbitration. At either party's request, the parties must submit any
          dispute, controversy or claim arising out of or in connection with, or
          relating to, this Agreement or any breach or alleged breach of this
          Agreement, to arbitration under the American Arbitration Association's
          rules then in effect (or under any other form of arbitration mutually
          acceptable to the parties). A single arbitrator agreed on by the
          parties will conduct the arbitration. If the parties cannot agree on a
          single arbitrator, each party must select one arbitrator and those two
          arbitrators will select a third arbitrator. This third arbitrator will
          hear the dispute. The arbitrator's decision is final (except as
          otherwise specifically provided by law) and binds the parties, and
          either party may request any court having jurisdiction to enter a
          judgment and to enforce the arbitrator's decision. The arbitrator will
          provide the parties with a written decision naming the substantially
          prevailing party in the action. This prevailing party is entitled to
          reimbursement from the other party for its costs and expenses,
          including reasonable attorneys' fees.

     (b)  Governing Law. All proceedings will be held at a place designated by
          the arbitrator in Flathead County, Montana. The arbitrator, in
          rendering a decision as to any state law claims, will apply Montana
          law.

     (c)  Exception to Arbitration. Notwithstanding the above, if Executive
          violates Section 10 or 11, the Bank will have the right to initiate
          the court proceedings described in Section 12(b), in lieu of an
          arbitration proceeding under this Section 14.

15.  MISCELLANEOUS PROVISIONS.
<PAGE>

     (a)  Entire Agreement. This Agreement constitutes the entire understanding
          and agreement between the parties concerning its subject matter and
          supersedes all prior agreements, correspondence, representations, or
          understandings between the parties relating to its subject matter.

     (b)  Binding Effect. This Agreement will bind and inure to the benefit of
          the Bank's and Executive's heirs, legal representatives, successors
          and assigns.

     (c)  Litigation Expenses. If either party successfully seeks to enforce any
          provision of this Agreement or to collect any amount claimed to be due
          under it, this party will be entitled to reimbursement from the other
          party for any and all of its out-of-pocket expenses and costs
          including, without limitation, reasonable attorneys' fees and costs
          incurred in connection with the enforcement or collection.

     (d)  Waiver. Any waiver by a party of its rights under this Agreement must
          be written and signed by the party waiving its rights. A party's
          waiver of the other party's breach of any provision of this Agreement
          will not operate as a waiver of any other breach by the breaching
          party.

     (e)  Assignment. The services to be rendered by Executive under this
          Agreement are unique and personal. Accordingly, Executive may not
          assign any of his rights or duties under this Agreement.

     (f)  Amendment. This Agreement may be modified only through a written
          instrument signed by both parties and ratified by the Company.

     (g)  Severability. The provisions of this Agreement are severable. The
          invalidity of any provision will not affect the validity of other
          provisions of this Agreement.

     (h)  Governing Law and Venue. This Agreement will be governed by and
          construed in accordance with Montana law, except to the extent that
          certain regulatory matters may be governed by federal law. The parties
          must bring any legal proceeding arising out of this Agreement in
          Flathead County, Montana.

     (i)  Counterparts. This Agreement may be executed in one or more
          counterparts, each of which shall be deemed to be an original, but all
          of which taken together will constitute one and the same instrument.

Signed this 21st day of December, 2006.

                                        FIRST SECURITY BANK OF MISSOULA


                                        /s/ Allen J. Fetscher
                                        ----------------------------------------
                                        Allen J. Fetscher, Chairman


Attest:


By: /s/ Harold J. Fraser, Secretary
-------------------------------------
Harold J. Fraser, Secretary


                                        EXECUTIVE


                                        /s/ William L. Bouchee
                                        ----------------------------------------
                                        William L. Bouchee


Ratified
GLACIER BANCORP, INC.


/s/ Michael J. Blodnick
-------------------------------------
Michael J. Blodnick
President/CEO