SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   FORM 10-Q/A
                               (Amendment No. 2)

[X]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934

                  For the Quarterly Period Ended June 30, 2003

                                       OR

[  ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934

                         Commission File Number: 0-26556

                           KLAMATH FIRST BANCORP, INC.
             (Exact name of registrant as specified in its charter)


                     Oregon                                      93-1180440
---------------------------------------------------         -------------------
(State or other jurisdiction of incorporation                 (I.R.S. Employer
or organization)                                                I.D. Number)

540 Main Street, Klamath Falls, Oregon                             97601
---------------------------------------------------         -------------------
 (Address of principal executive offices)                       (Zip Code)

Registrant's telephone number, including area code:           (541) 882-3444
---------------------------------------------------         -------------------

Securities registered pursuant to
  Section 12 (b) of the Act:                                       None
---------------------------------                           -------------------

Securities registered pursuant to
  Section 12 (g) of the Act:             Common Stock, par value $.01 per share
---------------------------------        --------------------------------------
                                                      (Title of Class)



     Indicate  by check mark  whether the  Registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
Registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. YES X    NO .

     Indicate by check mark whether the Registrant is an  accelerated  filer (as
defined in Exchange Act Rule 12b-2).      YES X    NO

     As  of  July 31,  2003,   there  were  issued  6,980,635  shares  of  the
Registrant's  Common  Stock.  The  Registrant's  voting  common  stock is traded
over-the-counter  and is listed on the Nasdaq  National  Market under the symbol
"KFBI."

                          KLAMATH FIRST BANCORP, INC.
                        QUARTERLY REPORT ON FORM 10-Q/A
                  FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2003

                                EXPANATORY NOTE


The  purpose of this Form  10-Q/A  ("Form  10-Q/A")  is to amend Part II - Other
Information,  Item 6 Exhibits and Reports on Form 8-K Exhibits a) 10(a)  through
Exhibits  10(i) of the Quarterly  Report on Form 10-Q of Klamath First  Bancorp,
Inc. for the quarterly  period ended June 30, 2003, to include copies of all the
participants  joint  beneficiary  agreements for bank owned life insurance death
benefits finalized and executed during the quarter.

<PAGE>
                          KLAMATH FIRST BANCORP, INC.

                               TABLE OF CONTENTS


                          PART II - OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

Signatures

<PAGE>
PART II - OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

Exhibits

Exhibit Number    Description
---------------   -----------

Exhibit 10(a).4   Joint Beneficiary Agreement for Kermit K. Houser
Exhibit 10(b).4   Joint Beneficiary Agreement for Marshall J. Alexander
Exhibit 10(c).4   Joint Beneficiary Agreement for Ben A. Gay
Exhibit 10(d).5   Joint Beneficiary Agreement for Frank X. Hernandez
Exhibit 10(e).5   Joint Beneficiary Agreement for Craig M Moore
Exhibit 10(f).5   Joint Beneficiary Agreement for James E. Essany
Exhibit 10(g).5   Joint Beneficiary Agreement for Walter F. Dodrill
Exhibit 10(h).5   Joint Beneficiary Agreement for Nina G. Drake
Exhibit 10(i).5   Joint Beneficiary Agreement for Jeffrey D. Schlenker

Exhibit 31        Section 302 Certification *
Exhibit 32        Section 906 Certification *

Signatures


*    Previously filed on August 14, 2003
<PAGE>
                                                                 Exhibit 10(a).4
                           JOINT BENEFICIARY AGREEMENT

Insurer(s):               1 - Massachusetts Mutual Life Insurance Company
                          2 - New York Life Insurance Company
                          3 - Northwestern Mutual Life Insurance Company
                          4 - Southland Life Insurance Company

Policy Number(s):         1 - 0052952
                          2 - 56603383
                          3 - 16354475
                          4 - 0600098087

Bank:                     Klamath First Federal Savings and Loan Association

Insured:                  Kermit K. Houser

Relationship to Bank:     Executive

Effective Date:           January 1, 2003

The  respective   rights  and  duties  of  the  Bank  and  the  Insured  in  the
above-referenced policy shall be pursuant to the terms set forth below:


I.   DEFINITIONS

     Refer  to the  policy  contract  for the  definition  of any  terms in this
     Agreement  that is not defined  herein.  If the definition of a term in the
     policy is  inconsistent  with the  definition of a term in this  Agreement,
     then the  definition  of the  term as set  forth  in this  Agreement  shall
     supersede  and  replace  the  definition  of the  term as set  forth in the
     policy.


II.  POLICY TITLE AND OWNERSHIP

     Title and ownership shall reside in the Bank for its use and for the use of
     the Insured all in accordance with this  Agreement.  The Bank alone may, to
     the extent of its interest, exercise the right to borrow or withdraw on the
     policy cash values.  Where the Bank and the Insured (or assignee,  with the
     consent of the  Insured)  mutually  agree to exercise the right to increase
     the coverage under the subject Joint Beneficiary  Designation policy, then,
     in such  event,  the  rights,  duties and  benefits  of the parties to such
     increased  coverage  shall  continue  to be  subject  to the  terms of this
     Agreement.


III. BENEFICIARY DESIGNATION RIGHTS

     The Insured  (or  assignee)  shall have the right and power to  designate a
     beneficiary or beneficiaries to receive the Insured's share of the proceeds
     payable  upon the death of the  Insured,  and to elect and change a payment
     option for such beneficiary,  subject to any right or interest the Bank may
     have in such proceeds, as provided in this Agreement.


IV.  PREMIUM PAYMENT METHOD

     Subject to the Bank's  absolute  right to surrender or terminate the policy
     at any time and for any reason,  the Bank shall pay an amount  equal to the
     planned premiums and any other premium payments that might become necessary
     to keep the policy in force.


V.   TAXABLE BENEFIT

     Annually the Insured will  receive a taxable  benefit  equal to the assumed
     cost of insurance as required by the Internal Revenue Service. The Bank (or
     its administrator)  will report to the Insured the amount of imputed income
     each year on Form W-2 or its equivalent.


VI.  DIVISION OF DEATH PROCEEDS

     Subject to Paragraphs VII and IX herein, the division of the death proceeds
     of the policy is as follows:

     A.   Provided  the policy  (policies)  specified  above are in force at the
          time of the  Insured's  death,  should the  Insured be employed by the
          Bank,  retired  from the Bank  after  attaining  age  sixty-five  (65)
          without  an earlier  termination  of  service  from the Bank,  or been
          subject to a termination pursuant to a Change in Control as defined in
          the Insured's Executive Salary Continuation  Agreement and Section XVI
          below, at the time of Insured's death, the Insured's beneficiary(ies),
          designated in accordance  with  Paragraph III, shall be entitled to an
          amount equal to  $1,616,420.00  until age seventy (70),  $1,131,494.00
          after the  attainment of age seventy (70) but before the attainment of
          age eighty (80),  $484,926.00 after the attainment of age eighty (80),
          but in no event shall the benefit exceed one hundred percent (100%) of
          the  net-at-risk  insurance  portion of the proceeds.  The net-at-risk
          insurance  portion  is the total  proceeds  less the cash value of the
          policy.

     B.   Provided  the policy  (policies)  specified  above are in force at the
          time of the Insured's death, should the Insured not be employed by the
          Bank at the time of his or her death, the Insured's  beneficiary(ies),
          designated in accordance  with Paragraph III, shall be entitled to the
          greater of $293,896.00 or the "Death  Benefit:  After  Termination" as
          specified  in  Schedule  "A"  of  the  Executive  Salary  Continuation
          Agreement as of the date the Insured  terminated  employment  with the
          Bank.  However,  should the Insured be not employed by the Bank at the
          time of his or her death because of "Termination for Cause" as defined
          in Paragraph IX (A) of this Agreement, the Insured's beneficiary(ies),
          designated  in accordance  with  Paragraph  III,  shall be entitled to
          $25,000.

     C.   The Bank shall be entitled to the remainder of such proceeds.

     D.   The Bank and the Insured (or  assignees)  shall share in any  interest
          due on the death proceeds on a pro rata basis as the proceeds due each
          respectively bears to the total proceeds, excluding any such interest.

     E.   In the event that either the Policy is  terminated  or the proceeds of
          the Policy are insufficient to provide the benefit  specified  herein,
          other than as a result of any  intentional  act of the  Insured  which
          results in the  termination of the Policy,  then the Bank shall pay to
          the Insured's beneficiary(ies) an amount which, when combined with the
          proceeds of the Policy actually  received,  will provide a total after
          tax  death   benefit   equal  to  the  benefit   level   specified  in
          Subparagraphs VI (A) or (B).


VII. DIVISION OF THE CASH SURRENDER VALUE OF THE POLICY

     The Bank shall at all times be entitled to an amount  equal to the policy's
     cash value, as that term is defined in the policy contract, less any policy
     loans and unpaid interest or cash  withdrawals  previously  incurred by the
     Bank  and any  applicable  surrender  charges.  Such  cash  value  shall be
     determined as of the date of surrender or death as the case may be.


VIII. RIGHTS OF PARTIES WHERE POLICY ENDOWMENT OR ANNUITY ELECTION EXISTS

     In the event the policy  involves  an  endowment  or annuity  element,  the
     Bank's right and interest in any endowment proceeds or annuity benefits, on
     expiration  of  the  deferment  period,   shall  be  determined  under  the
     provisions of this Agreement by regarding  such  endowment  proceeds or the
     commuted  value of such annuity  benefits as the policy's cash value.  Such
     endowment proceeds or annuity benefits shall be considered to be like death
     proceeds for the purposes of division under this Agreement.


IX.  TERMINATION FOR CAUSE

     "Termination for Cause" shall have the definition provided in the Insured's
     Employment  Agreement,  as amended from time to time, with the Bank. If the
     Insured has no Employment Agreement with the Bank,  "Termination for Cause"
     shall include  termination  because of the Insured's  personal  dishonesty,
     incompetence,  willful  misconduct,  breach  of  fiduciary  duty  involving
     personal  profit,  intentional  failure to perform stated  duties,  willful
     violation of any law, rule, or regulation (other than traffic violations or
     similar  offenses) or final  cease-and-desist  order.  For purposes of this
     Section,  no act,  or the  failure  to act,  on  Insured's  part  shall  be
     "willful" unless done, or omitted to be done, not in good faith and without
     reasonable  belief that the action or omission was in the best  interest of
     the Bank or its affiliates.  Notwithstanding  the foregoing,  Insured shall
     not be deemed to have been  terminated  for Cause  unless  and until  there
     shall  have  been  delivered  to the  Insured a copy of a  resolution  duly
     adopted  by the  affirmative  vote of not less  than  three-fourths  of the
     members  of the Board at a meeting  of the Board  called  and held for that
     purpose (after  reasonable  notice to Insured and an opportunity,  together
     with counsel, to be heard before the Board), finding that in the good faith
     opinion of the Board, Insured was guilty of conduct justifying  termination
     for Cause and specifying the reasons thereof.


X.   TERMINATION OF AGREEMENT.

     This Agreement shall terminate upon the occurrence of surrender,  lapse, or
     other  termination  of the Policy by the Bank, and subject to the Insured's
     benefits provided by VI (E) above and the option as set forth hereinbelow

     Upon such termination of this Agreement but prior to the termination of the
     policy by the Bank, the Insured (or assignee) shall have a fifteen (15) day
     option to receive  from the Bank an  absolute  assignment  of the policy in
     consideration of a cash payment to the Bank, whereupon this Agreement shall
     terminate.  Such cash payment referred to hereinabove  shall be the greater
     of:

     i.   The  Bank's  share of the cash value of the policy on the date of such
          assignment, as defined in this Agreement; or

     ii.  The  amount of the  premiums  that have been paid by the Bank prior to
          the date of such assignment.

     If, within said fifteen (15) day period, the Insured fails to exercise said
     option, fails to procure the entire aforestated cash payment, or dies, then
     the option shall terminate and the Insured (or assignee) agrees that all of
     the Insured's rights,  interest and claims in the policy shall terminate as
     of the date of the termination of this Agreement.

     The  Insured   expressly   agrees  that  this  Agreement  shall  constitute
     sufficient written notice to the Insured of the Insured's option to receive
     an absolute assignment of the policy as set forth herein.

     Except as provided above,  this Agreement shall terminate upon distribution
     of the death benefit proceeds in accordance with Paragraph VI above.


XI.  INSURED'S OR ASSIGNEE'S ASSIGNMENT RIGHTS

     The Insured may not, without the written consent of the Bank, assign to any
     individual,  trust or other  organization,  any right, title or interest in
     the subject  policy nor any rights,  options,  privileges or duties created
     under this Agreement.


XII. AGREEMENT BINDING UPON THE PARTIES

     This  Agreement  shall  bind  the  Insured  and  the  Bank,   their  heirs,
     successors, personal representatives and assigns.


XIII. ADMINISTRATIVE AND CLAIMS PROVISIONS

     The  following  provisions  are part of this  Agreement and are intended to
     meet the  requirements  of the Employee  Retirement  Income Security Act of
     1974 ("ERISA"):

     A.   Named Fiduciary and Plan Administrator.

          The "Named Fiduciary and Plan Administrator" of this Joint Beneficiary
          Designation  Agreement shall be Klamath First Federal Savings and Loan
          Association   until  its  resignation  or  removal  by  the  Board  of
          Directors.  As Named Fiduciary and Plan Administrator,  the Bank shall
          be responsible for the management, control, and administration of this
          Joint Beneficiary Plan as established  herein. The Named Fiduciary may
          delegate to others  certain  aspects of the  management  and operation
          responsibilities of the Plan, including the employment of advisors and
          the delegation of any ministerial duties to qualified individuals.



     B.   Funding Policy.

          Subject to the Bank's  absolute  right to surrender  or terminate  the
          policy at any time and for any  reason,  the  funding  policy for this
          Joint  Beneficiary  Plan shall be to maintain  the  subject  policy in
          force by paying, when due, all premiums required.

     C.   Basis of Payment of Benefits.

          Direct  payment by the  Insurer  is the basis of  payment of  benefits
          under this  Agreement,  with those benefits in turn being based on the
          payment of premiums as provided in this Agreement.

     D.   Claim Procedures.

          Claim  forms or claim  information  as to the  subject  policy  can be
          obtained by contacting Benmark,  Inc.  (800-544-6079).  When the Named
          Fiduciary  has a claim  which  may be  covered  under  the  provisions
          described  in the  insurance  policy,  they should  contact the office
          named above, and they will either complete a claim form and forward it
          to an  authorized  representative  of the  Insurer or advise the named
          Fiduciary what further  requirements  are necessary.  The Insurer will
          evaluate and make a decision as to payment. If the claim is payable, a
          benefit  check  will be  issued in  accordance  with the terms of this
          Agreement.

          In the  event  that a claim is not  eligible  under  the  policy,  the
          Insurer will notify the Named  Fiduciary of the denial pursuant to the
          requirements  under the terms of the policy. If the Named Fiduciary is
          dissatisfied  with the denial of the claim and wishes to contest  such
          claim denial, they should contact the office named above and they will
          assist in making an  inquiry to the  Insurer.  All  objections  to the
          Insurer's  actions  should be in writing and  submitted  to the office
          named above for transmittal to the Insurer.


XIV. GENDER

     Whenever  in this  Agreement  words  are used in the  masculine  or  neuter
     gender,  they shall be read and construed as in the masculine,  feminine or
     neuter gender, whenever they should so apply.





XV.  INSURANCE COMPANY NOT A PARTY TO THIS AGREEMENT

     The Insurer shall not be deemed a party to this Agreement, but will respect
     the rights of the parties as herein  developed  upon  receiving an executed
     copy of this Agreement. Payment or other performance in accordance with the
     policy  provisions  shall  fully  discharge  the  Insurer  from any and all
     liability.


XVI. CHANGE OF CONTROL

     For the purpose of this Agreement, a "Change in Control" of the Bank or its
     Holding Company,  Klamath First Bancorp, Inc. ("KFBI"),  shall be deemed to
     occur if and when (a) an offeror  other than KFBI  purchases  shares of the
     common stock of the KFBI or the Bank pursuant to a tender or exchange offer
     for such shares, (b) any person (as such term is used in Sections 13(d) and
     14(d)(2)  of  the  Securities  Exchange  Act of  1934)  is or  becomes  the
     beneficial owner, directly or indirectly, of securities of KFBI or the Bank
     representing  25% or more of the  combined  voting  power  of  KFBI's  then
     outstanding  securities,  (c) the  membership  of the board of directors of
     KFBI or the Bank changes as the result of a contested  election,  such that
     individuals  who were directors at the beginning of any  twenty-four  month
     period  (whether  commencing  before  or after the  effective  date of this
     Agreement)  do not  constitute  a majority  of the Board at the end of such
     period,  or  (d)  shareholders  of  KFBI  or the  Bank  approve  a  merger,
     consolidation, sale or disposition of all or substantially all of KFBI's or
     the Bank's assets, or a plan of partial or complete liquidation.


XVII. AMENDMENT OR REVOCATION, AND EXCHANGE OF POLICY

     Subject to the Bank's  absolute  right to surrender or terminate the policy
     at any time and for any  reason,  it is agreed by and  between  the parties
     hereto  that,  during the lifetime of the Insured,  this  Agreement  may be
     amended or revoked at any time or times, in whole or in part, by the mutual
     written  consent  of the  Insured  and the  Bank.  The Bank  may,  however,
     unilaterally  and  without the consent of the  Insured,  exchange  any life
     insurance  policy(ies) that are the subject matter of this Agreement,  with
     or  without  replacing  said  policy(ies)  and,  in the  event of a same or
     similar exchange, the Insured expressly agrees to the same.


XVIII. SEVERABILITY AND INTERPRETATION

     If a provision of this  Agreement  is held to be invalid or  unenforceable,
     the remaining  provisions  shall  nonetheless be  enforceable  according to
     their  terms.  Further,  in the  event  that  any  provision  is held to be
     overbroad as written such  provision  shall be deemed amended to narrow its
     application  to the  extent  necessary  to make the  provision  enforceable
     according to law and enforced as amended.


XIX. APPLICABLE LAW

     The  laws  of  the  State  of  Oregon   shall   govern  the   validity  and
     interpretation of this Agreement.
<PAGE>


XX.  EFFECT OF THE LIFE INSURANCE POLICY'S CONTESTABILITY CLAUSES

     The parties  herein  understand  and agree that the payment of the benefits
     provided  herein are  subject to the Life  Insurance  Policy's  suicide and
     contestability clauses and other such clauses, and if such clauses preclude
     the Insurer from paying the full death  proceeds,  then, in such event,  no
     death  benefits  of  whatever  nature  shall be  payable to  Insured's  (or
     Insured's   Assignee's)   beneficiary(s)   under  this  Joint   Beneficiary
     Designation Agreement.


Executed at Klamath Falls, Oregon this 9th day of May, 2003.


                               KLAMATH FIRST FEDERAL
                               SAVINGS AND LOAN ASSOCIATION
                               Klamath Falls, Oregon



/s/ Nina G. Drake               By:  /s/ Rodney Murray
Witness                         Rodney Murray, Board Chairman


/s/ Nina G. Drake               By:  /s/ Kermit K. Houser
Witness                         Kermit K. Houser


<PAGE>


                          BENEFICIARY DESIGNATION FORM
                 FOR THE JOINT BENEFICIARY DESIGNATION AGREEMENT

I.   PRIMARY   DESIGNATION
     (You  may  refer  to  the  beneficiary   designation information
        prior to completion of this form.)

A.   Person(s) as a Primary  Designation:  ____________________________________
     (Please  indicate the  percentage for each beneficiary.)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)


B.   Estate as a Primary Designation:

My Primary Beneficiary is The Estate of ___________________________ as set forth
in the last will and testament dated the _____ day of ________________, ________
and any codicils thereto.

C.   Trust as a Primary Designation:

Name of the Trust:  ____________________________________________________________
Execution Date of the Trust: _____ / _____ / _________
Name of the Trustee: __________________________________________________________
Beneficiary(ies) of the Trust (please indicate the percentage for each
beneficiary):
___________________________________________________________________________
___________________________________________________________________________
Is this an Irrevocable Life Insurance Trust?  ________ Yes     ________ No
(If yes and this designation is for a Split Dollar agreement, an Assignment of
Rights form should be completed.)


<PAGE>


II.  SECONDARY (CONTINGENT) DESIGNATION

A.   Person(s) as a Secondary  (Contingent)  Designation:
     (Please  indicate the percentage for each beneficiary.)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)


B.   Estate as a Secondary (Contingent) Designation:

My Secondary Beneficiary is The Estate of ______________________________________
as set forth in my last will and testament dated the ____ day of ________, _____
and any codicils thereto.

C.   Trust as a Secondary (Contingent) Designation:

Name of the Trust:  ____________________________________________________________
Execution Date of the Trust: _____ / _____ / _________
Name of the Trustee: __________________________________________________________
Beneficiary(ies) of the Trust (please indicate the percentage for each
beneficiary):
___________________________________________________________________________
___________________________________________________________________________

All sums  payable  under the Joint  Beneficiary  Agreement by reason of my death
shall be paid to the Primary Beneficiary(ies),  if he or she survives me, and if
no Primary Beneficiary(ies) shall survive me, then to the Secondary (Contingent)
Beneficiary(ies).  This  beneficiary  designation is valid until the participant
notifies the bank in writing.



__________________________                     Date ____________________________
Kermit K. Houser
<PAGE>
                                                                 Exhibit 10(b).4
                           JOINT BENEFICIARY AGREEMENT

Insurer(s):               1 - Massachusetts Mutual Life Insurance Company
                          2 - New York Life Insurance Company
                          3 - Northwestern Mutual Life Insurance Company
                          4 - Southland Life Insurance Company

Policy Number(s):         1 - 0052937
                          2 - 56603368
                          3 - 16368459
                          4 - 0600098072

Bank:                     Klamath First Federal Savings and Loan Association

Insured:                  Marshall J. Alexander

Relationship to Bank:     Executive

Effective Date:           January 1, 2003

The  respective   rights  and  duties  of  the  Bank  and  the  Insured  in  the
above-referenced policy shall be pursuant to the terms set forth below:


I.   DEFINITIONS

     Refer  to the  policy  contract  for the  definition  of any  terms in this
     Agreement  that is not defined  herein.  If the definition of a term in the
     policy is  inconsistent  with the  definition of a term in this  Agreement,
     then the  definition  of the  term as set  forth  in this  Agreement  shall
     supersede  and  replace  the  definition  of the  term as set  forth in the
     policy.


II.  POLICY TITLE AND OWNERSHIP

     Title and ownership shall reside in the Bank for its use and for the use of
     the Insured all in accordance with this  Agreement.  The Bank alone may, to
     the extent of its interest, exercise the right to borrow or withdraw on the
     policy cash values.  Where the Bank and the Insured (or assignee,  with the
     consent of the  Insured)  mutually  agree to exercise the right to increase
     the coverage under the subject Joint Beneficiary  Designation policy, then,
     in such  event,  the  rights,  duties and  benefits  of the parties to such
     increased  coverage  shall  continue  to be  subject  to the  terms of this
     Agreement.


III. BENEFICIARY DESIGNATION RIGHTS

     The Insured  (or  assignee)  shall have the right and power to  designate a
     beneficiary or beneficiaries to receive the Insured's share of the proceeds
     payable  upon the death of the  Insured,  and to elect and change a payment
     option for such beneficiary,  subject to any right or interest the Bank may
     have in such proceeds, as provided in this Agreement.


IV.  PREMIUM PAYMENT METHOD

     Subject to the Bank's  absolute  right to surrender or terminate the policy
     at any time and for any reason,  the Bank shall pay an amount  equal to the
     planned premiums and any other premium payments that might become necessary
     to keep the policy in force.


V.   TAXABLE BENEFIT

     Annually the Insured will  receive a taxable  benefit  equal to the assumed
     cost of insurance as required by the Internal Revenue Service. The Bank (or
     its administrator)  will report to the Insured the amount of imputed income
     each year on Form W-2 or its equivalent.


VI.  DIVISION OF DEATH PROCEEDS

     Subject to Paragraphs VII and IX herein, the division of the death proceeds
     of the policy is as follows:

     A.   Provided  the policy  (policies)  specified  above are in force at the
          time of the  Insured's  death,  should the  Insured be employed by the
          Bank, retired from the Bank after attaining age sixty-two (62) without
          an earlier  termination of service from the Bank, or been subject to a
          termination  pursuant  to a  Change  in  Control  as  defined  in  the
          Insured's  Executive  Salary  Continuation  Agreement  and Section XVI
          below, at the time of Insured's death, the Insured's beneficiary(ies),
          designated in accordance  with  Paragraph III, shall be entitled to an
          amount equal to  $1,492,090.00  until age seventy (70),  $1,044,463.00
          after the  attainment of age seventy (70) but before the attainment of
          age eighty (80),  $447,627.00 after the attainment of age eighty (80),
          but in no event shall the benefit exceed one hundred percent (100%) of
          the  net-at-risk  insurance  portion of the proceeds.  The net-at-risk
          insurance  portion  is the total  proceeds  less the cash value of the
          policy.

     B.   Provided  the policy  (policies)  specified  above are in force at the
          time of the Insured's death, should the Insured not be employed by the
          Bank at the time of his or her death, the Insured's  beneficiary(ies),
          designated in accordance  with Paragraph III, shall be entitled to the
          greater of $200,209.00 or the "Death  Benefit:  After  Termination" as
          specified  in  Schedule  "A"  of  the  Executive  Salary  Continuation
          Agreement as of the date the Insured  terminated  employment  with the
          Bank.  However,  should the Insured be not employed by the Bank at the
          time of his or her death because of "Termination for Cause" as defined
          in Paragraph IX (A) of this Agreement, the Insured's beneficiary(ies),
          designated  in accordance  with  Paragraph  III,  shall be entitled to
          $25,000.

     C.   The Bank shall be entitled to the remainder of such proceeds.

     D.   The Bank and the Insured (or  assignees)  shall share in any  interest
          due on the death proceeds on a pro rata basis as the proceeds due each
          respectively bears to the total proceeds, excluding any such interest.

     E.   In the event that either the Policy is  terminated  or the proceeds of
          the Policy are insufficient to provide the benefit  specified  herein,
          other than as a result of any  intentional  act of the  Insured  which
          results in the  termination of the Policy,  then the Bank shall pay to
          the Insured's beneficiary(ies) an amount which, when combined with the
          proceeds of the Policy actually  received,  will provide a total after
          tax  death   benefit   equal  to  the  benefit   level   specified  in
          Subparagraphs VI (A) or (B).


VII. DIVISION OF THE CASH SURRENDER VALUE OF THE POLICY

     The Bank shall at all times be entitled to an amount  equal to the policy's
     cash value, as that term is defined in the policy contract, less any policy
     loans and unpaid interest or cash  withdrawals  previously  incurred by the
     Bank  and any  applicable  surrender  charges.  Such  cash  value  shall be
     determined as of the date of surrender or death as the case may be.


VIII. RIGHTS OF PARTIES WHERE POLICY ENDOWMENT OR ANNUITY ELECTION EXISTS

     In the event the policy  involves  an  endowment  or annuity  element,  the
     Bank's right and interest in any endowment proceeds or annuity benefits, on
     expiration  of  the  deferment  period,   shall  be  determined  under  the
     provisions of this Agreement by regarding  such  endowment  proceeds or the
     commuted  value of such annuity  benefits as the policy's cash value.  Such
     endowment proceeds or annuity benefits shall be considered to be like death
     proceeds for the purposes of division under this Agreement.


IX.  TERMINATION FOR CAUSE

     "Termination for Cause" shall have the definition provided in the Insured's
     Employment  Agreement,  as amended from time to time, with the Bank. If the
     Insured has no Employment Agreement with the Bank,  "Termination for Cause"
     shall include  termination  because of the Insured's  personal  dishonesty,
     incompetence,  willful  misconduct,  breach  of  fiduciary  duty  involving
     personal  profit,  intentional  failure to perform stated  duties,  willful
     violation of any law, rule, or regulation (other than traffic violations or
     similar  offenses) or final  cease-and-desist  order.  For purposes of this
     Section,  no act,  or the  failure  to act,  on  Insured's  part  shall  be
     "willful" unless done, or omitted to be done, not in good faith and without
     reasonable  belief that the action or omission was in the best  interest of
     the Bank or its affiliates.  Notwithstanding  the foregoing,  Insured shall
     not be deemed to have been  terminated  for Cause  unless  and until  there
     shall  have  been  delivered  to the  Insured a copy of a  resolution  duly
     adopted  by the  affirmative  vote of not less  than  three-fourths  of the
     members  of the Board at a meeting  of the Board  called  and held for that
     purpose (after  reasonable  notice to Insured and an opportunity,  together
     with counsel, to be heard before the Board), finding that in the good faith
     opinion of the Board, Insured was guilty of conduct justifying  termination
     for Cause and specifying the reasons thereof.


X.   TERMINATION OF AGREEMENT.

     This Agreement shall terminate upon the occurrence of surrender,  lapse, or
     other  termination  of the Policy by the Bank, and subject to the Insured's
     benefits provided by VI (E) above and the option as set forth hereinbelow

     Upon such termination of this Agreement but prior to the termination of the
     policy by the Bank, the Insured (or assignee) shall have a fifteen (15) day
     option to receive  from the Bank an  absolute  assignment  of the policy in
     consideration of a cash payment to the Bank, whereupon this Agreement shall
     terminate.  Such cash payment referred to hereinabove  shall be the greater
     of:

     i.   The  Bank's  share of the cash value of the policy on the date of such
          assignment, as defined in this Agreement; or

     ii.  The  amount of the  premiums  that have been paid by the Bank prior to
          the date of such assignment.

     If, within said fifteen (15) day period, the Insured fails to exercise said
     option, fails to procure the entire aforestated cash payment, or dies, then
     the option shall terminate and the Insured (or assignee) agrees that all of
     the Insured's rights,  interest and claims in the policy shall terminate as
     of the date of the termination of this Agreement.

     The  Insured   expressly   agrees  that  this  Agreement  shall  constitute
     sufficient written notice to the Insured of the Insured's option to receive
     an absolute assignment of the policy as set forth herein.

     Except as provided above,  this Agreement shall terminate upon distribution
     of the death benefit proceeds in accordance with Paragraph VI above.


XI.  INSURED'S OR ASSIGNEE'S ASSIGNMENT RIGHTS

     The Insured may not, without the written consent of the Bank, assign to any
     individual,  trust or other  organization,  any right, title or interest in
     the subject  policy nor any rights,  options,  privileges or duties created
     under this Agreement.


XII. AGREEMENT BINDING UPON THE PARTIES

     This  Agreement  shall  bind  the  Insured  and  the  Bank,   their  heirs,
     successors, personal representatives and assigns.


XIII. ADMINISTRATIVE AND CLAIMS PROVISIONS

     The  following  provisions  are part of this  Agreement and are intended to
     meet the  requirements  of the Employee  Retirement  Income Security Act of
     1974 ("ERISA"):

     A.   Named Fiduciary and Plan Administrator.

          The "Named Fiduciary and Plan Administrator" of this Joint Beneficiary
          Designation  Agreement shall be Klamath First Federal Savings and Loan
          Association   until  its  resignation  or  removal  by  the  Board  of
          Directors.  As Named Fiduciary and Plan Administrator,  the Bank shall
          be responsible for the management, control, and administration of this
          Joint Beneficiary Plan as established  herein. The Named Fiduciary may
          delegate to others  certain  aspects of the  management  and operation
          responsibilities of the Plan, including the employment of advisors and
          the delegation of any ministerial duties to qualified individuals.



     B.   Funding Policy.

          Subject to the Bank's  absolute  right to surrender  or terminate  the
          policy at any time and for any  reason,  the  funding  policy for this
          Joint  Beneficiary  Plan shall be to maintain  the  subject  policy in
          force by paying, when due, all premiums required.

     C.   Basis of Payment of Benefits.

          Direct  payment by the  Insurer  is the basis of  payment of  benefits
          under this  Agreement,  with those benefits in turn being based on the
          payment of premiums as provided in this Agreement.

     D.   Claim Procedures.

          Claim  forms or claim  information  as to the  subject  policy  can be
          obtained by contacting Benmark,  Inc.  (800-544-6079).  When the Named
          Fiduciary  has a claim  which  may be  covered  under  the  provisions
          described  in the  insurance  policy,  they should  contact the office
          named above, and they will either complete a claim form and forward it
          to an  authorized  representative  of the  Insurer or advise the named
          Fiduciary what further  requirements  are necessary.  The Insurer will
          evaluate and make a decision as to payment. If the claim is payable, a
          benefit  check  will be  issued in  accordance  with the terms of this
          Agreement.

          In the  event  that a claim is not  eligible  under  the  policy,  the
          Insurer will notify the Named  Fiduciary of the denial pursuant to the
          requirements  under the terms of the policy. If the Named Fiduciary is
          dissatisfied  with the denial of the claim and wishes to contest  such
          claim denial, they should contact the office named above and they will
          assist in making an  inquiry to the  Insurer.  All  objections  to the
          Insurer's  actions  should be in writing and  submitted  to the office
          named above for transmittal to the Insurer.


XIV. GENDER

     Whenever  in this  Agreement  words  are used in the  masculine  or  neuter
     gender,  they shall be read and construed as in the masculine,  feminine or
     neuter gender, whenever they should so apply.





XV.  INSURANCE COMPANY NOT A PARTY TO THIS AGREEMENT

     The Insurer shall not be deemed a party to this Agreement, but will respect
     the rights of the parties as herein  developed  upon  receiving an executed
     copy of this Agreement. Payment or other performance in accordance with the
     policy  provisions  shall  fully  discharge  the  Insurer  from any and all
     liability.


XVI. CHANGE OF CONTROL

     For the purpose of this Agreement, a "Change in Control" of the Bank or its
     Holding Company,  Klamath First Bancorp, Inc. ("KFBI"),  shall be deemed to
     occur if and when (a) an offeror  other than KFBI  purchases  shares of the
     common stock of the KFBI or the Bank pursuant to a tender or exchange offer
     for such shares, (b) any person (as such term is used in Sections 13(d) and
     14(d)(2)  of  the  Securities  Exchange  Act of  1934)  is or  becomes  the
     beneficial owner, directly or indirectly, of securities of KFBI or the Bank
     representing  25% or more of the  combined  voting  power  of  KFBI's  then
     outstanding  securities,  (c) the  membership  of the board of directors of
     KFBI or the Bank changes as the result of a contested  election,  such that
     individuals  who were directors at the beginning of any  twenty-four  month
     period  (whether  commencing  before  or after the  effective  date of this
     Agreement)  do not  constitute  a majority  of the Board at the end of such
     period,  or  (d)  shareholders  of  KFBI  or the  Bank  approve  a  merger,
     consolidation, sale or disposition of all or substantially all of KFBI's or
     the Bank's assets, or a plan of partial or complete liquidation.


XVII. AMENDMENT OR REVOCATION, AND EXCHANGE OF POLICY

     Subject to the Bank's  absolute  right to surrender or terminate the policy
     at any time and for any  reason,  it is agreed by and  between  the parties
     hereto  that,  during the lifetime of the Insured,  this  Agreement  may be
     amended or revoked at any time or times, in whole or in part, by the mutual
     written  consent  of the  Insured  and the  Bank.  The Bank  may,  however,
     unilaterally  and  without the consent of the  Insured,  exchange  any life
     insurance  policy(ies) that are the subject matter of this Agreement,  with
     or  without  replacing  said  policy(ies)  and,  in the  event of a same or
     similar exchange, the Insured expressly agrees to the same.


XVIII. SEVERABILITY AND INTERPRETATION

     If a provision of this  Agreement  is held to be invalid or  unenforceable,
     the remaining  provisions  shall  nonetheless be  enforceable  according to
     their  terms.  Further,  in the  event  that  any  provision  is held to be
     overbroad as written such  provision  shall be deemed amended to narrow its
     application  to the  extent  necessary  to make the  provision  enforceable
     according to law and enforced as amended.


XIX. APPLICABLE LAW

     The  laws  of  the  State  of  Oregon   shall   govern  the   validity  and
     interpretation of this Agreement.
<PAGE>


XX.  EFFECT OF THE LIFE INSURANCE POLICY'S CONTESTABILITY CLAUSES

     The parties  herein  understand  and agree that the payment of the benefits
     provided  herein are  subject to the Life  Insurance  Policy's  suicide and
     contestability clauses and other such clauses, and if such clauses preclude
     the Insurer from paying the full death  proceeds,  then, in such event,  no
     death  benefits  of  whatever  nature  shall be  payable to  Insured's  (or
     Insured's   Assignee's)   beneficiary(s)   under  this  Joint   Beneficiary
     Designation Agreement.


Executed at Klamath Falls, Oregon this 23rd day of May, 2003.


                               KLAMATH FIRST FEDERAL
                               SAVINGS AND LOAN ASSOCIATION
                               Klamath Falls, Oregon



/s/ Nina G. Drake               By:  /s/ Kermit K. Houser
Witness                         Kermit K. Houser, President and CEO


/s/ Nina G. Drake               By:  /s/ Marshall J. Alexander
Witness                         Marshall J. Alexander


<PAGE>


                          BENEFICIARY DESIGNATION FORM
                 FOR THE JOINT BENEFICIARY DESIGNATION AGREEMENT

I.   PRIMARY   DESIGNATION
     (You  may  refer  to  the  beneficiary   designation information
        prior to completion of this form.)

A.   Person(s) as a Primary  Designation:  ____________________________________
     (Please  indicate the  percentage for each beneficiary.)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)


B.   Estate as a Primary Designation:

My Primary Beneficiary is The Estate of ___________________________ as set forth
in the last will and testament dated the _____ day of ________________, ________
and any codicils thereto.

C.   Trust as a Primary Designation:

Name of the Trust:  ____________________________________________________________
Execution Date of the Trust: _____ / _____ / _________
Name of the Trustee: __________________________________________________________
Beneficiary(ies) of the Trust (please indicate the percentage for each
beneficiary):
___________________________________________________________________________
___________________________________________________________________________
Is this an Irrevocable Life Insurance Trust?  ________ Yes     ________ No
(If yes and this designation is for a Split Dollar agreement, an Assignment of
Rights form should be completed.)


<PAGE>


II.  SECONDARY (CONTINGENT) DESIGNATION

A.   Person(s) as a Secondary  (Contingent)  Designation:
     (Please  indicate the percentage for each beneficiary.)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)


B.   Estate as a Secondary (Contingent) Designation:

My Secondary Beneficiary is The Estate of ______________________________________
as set forth in my last will and testament dated the ____ day of ________, _____
and any codicils thereto.

C.   Trust as a Secondary (Contingent) Designation:

Name of the Trust:  ____________________________________________________________
Execution Date of the Trust: _____ / _____ / _________
Name of the Trustee: __________________________________________________________
Beneficiary(ies) of the Trust (please indicate the percentage for each
beneficiary):
___________________________________________________________________________
___________________________________________________________________________

All sums  payable  under the Joint  Beneficiary  Agreement by reason of my death
shall be paid to the Primary Beneficiary(ies),  if he or she survives me, and if
no Primary Beneficiary(ies) shall survive me, then to the Secondary (Contingent)
Beneficiary(ies).  This  beneficiary  designation is valid until the participant
notifies the bank in writing.



__________________________                     Date ____________________________
Marshall J. Alexander
<PAGE>
                                                                 Exhibit 10(c).4
                           JOINT BENEFICIARY AGREEMENT

Insurer(s):               1 - Massachusetts Mutual Life Insurance Company
                          2 - New York Life Insurance Company
                          3 - Northwestern Mutual Life Insurance Company
                          4 - Southland Life Insurance Company

Policy Number(s):         1 - 0052948
                          2 - 56603379
                          3 - 16354459
                          4 - 0600098083

Bank:                     Klamath First Federal Savings and Loan Association

Insured:                  Ben A. Gay

Relationship to Bank:     Executive

Effective Date:           January 1, 2003

The  respective   rights  and  duties  of  the  Bank  and  the  Insured  in  the
above-referenced policy shall be pursuant to the terms set forth below:


I.   DEFINITIONS

     Refer  to the  policy  contract  for the  definition  of any  terms in this
     Agreement  that is not defined  herein.  If the definition of a term in the
     policy is  inconsistent  with the  definition of a term in this  Agreement,
     then the  definition  of the  term as set  forth  in this  Agreement  shall
     supersede  and  replace  the  definition  of the  term as set  forth in the
     policy.


II.  POLICY TITLE AND OWNERSHIP

     Title and ownership shall reside in the Bank for its use and for the use of
     the Insured all in accordance with this  Agreement.  The Bank alone may, to
     the extent of its interest, exercise the right to borrow or withdraw on the
     policy cash values.  Where the Bank and the Insured (or assignee,  with the
     consent of the  Insured)  mutually  agree to exercise the right to increase
     the coverage under the subject Joint Beneficiary  Designation policy, then,
     in such  event,  the  rights,  duties and  benefits  of the parties to such
     increased  coverage  shall  continue  to be  subject  to the  terms of this
     Agreement.


III. BENEFICIARY DESIGNATION RIGHTS

     The Insured  (or  assignee)  shall have the right and power to  designate a
     beneficiary or beneficiaries to receive the Insured's share of the proceeds
     payable  upon the death of the  Insured,  and to elect and change a payment
     option for such beneficiary,  subject to any right or interest the Bank may
     have in such proceeds, as provided in this Agreement.


IV.  PREMIUM PAYMENT METHOD

     Subject to the Bank's  absolute  right to surrender or terminate the policy
     at any time and for any reason,  the Bank shall pay an amount  equal to the
     planned premiums and any other premium payments that might become necessary
     to keep the policy in force.


V.   TAXABLE BENEFIT

     Annually the Insured will  receive a taxable  benefit  equal to the assumed
     cost of insurance as required by the Internal Revenue Service. The Bank (or
     its administrator)  will report to the Insured the amount of imputed income
     each year on Form W-2 or its equivalent.


VI.  DIVISION OF DEATH PROCEEDS

     Subject to Paragraphs VII and IX herein, the division of the death proceeds
     of the policy is as follows:

     A.   Provided  the policy  (policies)  specified  above are in force at the
          time of the  Insured's  death,  should the  Insured be employed by the
          Bank, retired from the Bank after attaining age sixty-two (62) without
          an earlier  termination of service from the Bank, or been subject to a
          termination  pursuant  to a  Change  in  Control  as  defined  in  the
          Insured's  Executive  Salary  Continuation  Agreement  and Section XVI
          below, at the time of Insured's death, the Insured's beneficiary(ies),
          designated in accordance  with  Paragraph III, shall be entitled to an
          amount  equal to  $1,044,460.00  until age seventy  (70),  $731,122.00
          after the  attainment of age seventy (70) but before the attainment of
          age eighty (80),  $313,338.00 after the attainment of age eighty (80),
          but in no event shall the benefit exceed one hundred percent (100%) of
          the  net-at-risk  insurance  portion of the proceeds.  The net-at-risk
          insurance  portion  is the total  proceeds  less the cash value of the
          policy.

     B.   Provided  the policy  (policies)  specified  above are in force at the
          time of the Insured's death, should the Insured not be employed by the
          Bank at the time of his or her death, the Insured's  beneficiary(ies),
          designated in accordance  with Paragraph III, shall be entitled to the
          greater of $174,077.00 or the "Death  Benefit:  After  Termination" as
          specified  in  Schedule  "A"  of  the  Executive  Salary  Continuation
          Agreement as of the date the Insured  terminated  employment  with the
          Bank.  However,  should the Insured be not employed by the Bank at the
          time of his or her death because of "Termination for Cause" as defined
          in Paragraph IX (A) of this Agreement, the Insured's beneficiary(ies),
          designated  in accordance  with  Paragraph  III,  shall be entitled to
          $25,000.

     C.   The Bank shall be entitled to the remainder of such proceeds.

     D.   The Bank and the Insured (or  assignees)  shall share in any  interest
          due on the death proceeds on a pro rata basis as the proceeds due each
          respectively bears to the total proceeds, excluding any such interest.

     E.   In the event that either the Policy is  terminated  or the proceeds of
          the Policy are insufficient to provide the benefit  specified  herein,
          other than as a result of any  intentional  act of the  Insured  which
          results in the  termination of the Policy,  then the Bank shall pay to
          the Insured's beneficiary(ies) an amount which, when combined with the
          proceeds of the Policy actually  received,  will provide a total after
          tax  death   benefit   equal  to  the  benefit   level   specified  in
          Subparagraphs VI (A) or (B).


VII. DIVISION OF THE CASH SURRENDER VALUE OF THE POLICY

     The Bank shall at all times be entitled to an amount  equal to the policy's
     cash value, as that term is defined in the policy contract, less any policy
     loans and unpaid interest or cash  withdrawals  previously  incurred by the
     Bank  and any  applicable  surrender  charges.  Such  cash  value  shall be
     determined as of the date of surrender or death as the case may be.


VIII. RIGHTS OF PARTIES WHERE POLICY ENDOWMENT OR ANNUITY ELECTION EXISTS

     In the event the policy  involves  an  endowment  or annuity  element,  the
     Bank's right and interest in any endowment proceeds or annuity benefits, on
     expiration  of  the  deferment  period,   shall  be  determined  under  the
     provisions of this Agreement by regarding  such  endowment  proceeds or the
     commuted  value of such annuity  benefits as the policy's cash value.  Such
     endowment proceeds or annuity benefits shall be considered to be like death
     proceeds for the purposes of division under this Agreement.


IX.  TERMINATION FOR CAUSE

     "Termination for Cause" shall have the definition provided in the Insured's
     Employment  Agreement,  as amended from time to time, with the Bank. If the
     Insured has no Employment Agreement with the Bank,  "Termination for Cause"
     shall include  termination  because of the Insured's  personal  dishonesty,
     incompetence,  willful  misconduct,  breach  of  fiduciary  duty  involving
     personal  profit,  intentional  failure to perform stated  duties,  willful
     violation of any law, rule, or regulation (other than traffic violations or
     similar  offenses) or final  cease-and-desist  order.  For purposes of this
     Section,  no act,  or the  failure  to act,  on  Insured's  part  shall  be
     "willful" unless done, or omitted to be done, not in good faith and without
     reasonable  belief that the action or omission was in the best  interest of
     the Bank or its affiliates.  Notwithstanding  the foregoing,  Insured shall
     not be deemed to have been  terminated  for Cause  unless  and until  there
     shall  have  been  delivered  to the  Insured a copy of a  resolution  duly
     adopted  by the  affirmative  vote of not less  than  three-fourths  of the
     members  of the Board at a meeting  of the Board  called  and held for that
     purpose (after  reasonable  notice to Insured and an opportunity,  together
     with counsel, to be heard before the Board), finding that in the good faith
     opinion of the Board, Insured was guilty of conduct justifying  termination
     for Cause and specifying the reasons thereof.


X.   TERMINATION OF AGREEMENT.

     This Agreement shall terminate upon the occurrence of surrender,  lapse, or
     other  termination  of the Policy by the Bank, and subject to the Insured's
     benefits provided by VI (E) above and the option as set forth hereinbelow

     Upon such termination of this Agreement but prior to the termination of the
     policy by the Bank, the Insured (or assignee) shall have a fifteen (15) day
     option to receive  from the Bank an  absolute  assignment  of the policy in
     consideration of a cash payment to the Bank, whereupon this Agreement shall
     terminate.  Such cash payment referred to hereinabove  shall be the greater
     of:

     i.   The  Bank's  share of the cash value of the policy on the date of such
          assignment, as defined in this Agreement; or

     ii.  The  amount of the  premiums  that have been paid by the Bank prior to
          the date of such assignment.

     If, within said fifteen (15) day period, the Insured fails to exercise said
     option, fails to procure the entire aforestated cash payment, or dies, then
     the option shall terminate and the Insured (or assignee) agrees that all of
     the Insured's rights,  interest and claims in the policy shall terminate as
     of the date of the termination of this Agreement.

     The  Insured   expressly   agrees  that  this  Agreement  shall  constitute
     sufficient written notice to the Insured of the Insured's option to receive
     an absolute assignment of the policy as set forth herein.

     Except as provided above,  this Agreement shall terminate upon distribution
     of the death benefit proceeds in accordance with Paragraph VI above.


XI.  INSURED'S OR ASSIGNEE'S ASSIGNMENT RIGHTS

     The Insured may not, without the written consent of the Bank, assign to any
     individual,  trust or other  organization,  any right, title or interest in
     the subject  policy nor any rights,  options,  privileges or duties created
     under this Agreement.


XII. AGREEMENT BINDING UPON THE PARTIES

     This  Agreement  shall  bind  the  Insured  and  the  Bank,   their  heirs,
     successors, personal representatives and assigns.


XIII. ADMINISTRATIVE AND CLAIMS PROVISIONS

     The  following  provisions  are part of this  Agreement and are intended to
     meet the  requirements  of the Employee  Retirement  Income Security Act of
     1974 ("ERISA"):

     A.   Named Fiduciary and Plan Administrator.

          The "Named Fiduciary and Plan Administrator" of this Joint Beneficiary
          Designation  Agreement shall be Klamath First Federal Savings and Loan
          Association   until  its  resignation  or  removal  by  the  Board  of
          Directors.  As Named Fiduciary and Plan Administrator,  the Bank shall
          be responsible for the management, control, and administration of this
          Joint Beneficiary Plan as established  herein. The Named Fiduciary may
          delegate to others  certain  aspects of the  management  and operation
          responsibilities of the Plan, including the employment of advisors and
          the delegation of any ministerial duties to qualified individuals.



     B.   Funding Policy.

          Subject to the Bank's  absolute  right to surrender  or terminate  the
          policy at any time and for any  reason,  the  funding  policy for this
          Joint  Beneficiary  Plan shall be to maintain  the  subject  policy in
          force by paying, when due, all premiums required.

     C.   Basis of Payment of Benefits.

          Direct  payment by the  Insurer  is the basis of  payment of  benefits
          under this  Agreement,  with those benefits in turn being based on the
          payment of premiums as provided in this Agreement.

     D.   Claim Procedures.

          Claim  forms or claim  information  as to the  subject  policy  can be
          obtained by contacting Benmark,  Inc.  (800-544-6079).  When the Named
          Fiduciary  has a claim  which  may be  covered  under  the  provisions
          described  in the  insurance  policy,  they should  contact the office
          named above, and they will either complete a claim form and forward it
          to an  authorized  representative  of the  Insurer or advise the named
          Fiduciary what further  requirements  are necessary.  The Insurer will
          evaluate and make a decision as to payment. If the claim is payable, a
          benefit  check  will be  issued in  accordance  with the terms of this
          Agreement.

          In the  event  that a claim is not  eligible  under  the  policy,  the
          Insurer will notify the Named  Fiduciary of the denial pursuant to the
          requirements  under the terms of the policy. If the Named Fiduciary is
          dissatisfied  with the denial of the claim and wishes to contest  such
          claim denial, they should contact the office named above and they will
          assist in making an  inquiry to the  Insurer.  All  objections  to the
          Insurer's  actions  should be in writing and  submitted  to the office
          named above for transmittal to the Insurer.


XIV. GENDER

     Whenever  in this  Agreement  words  are used in the  masculine  or  neuter
     gender,  they shall be read and construed as in the masculine,  feminine or
     neuter gender, whenever they should so apply.





XV.  INSURANCE COMPANY NOT A PARTY TO THIS AGREEMENT

     The Insurer shall not be deemed a party to this Agreement, but will respect
     the rights of the parties as herein  developed  upon  receiving an executed
     copy of this Agreement. Payment or other performance in accordance with the
     policy  provisions  shall  fully  discharge  the  Insurer  from any and all
     liability.


XVI. CHANGE OF CONTROL

     For the purpose of this Agreement, a "Change in Control" of the Bank or its
     Holding Company,  Klamath First Bancorp, Inc. ("KFBI"),  shall be deemed to
     occur if and when (a) an offeror  other than KFBI  purchases  shares of the
     common stock of the KFBI or the Bank pursuant to a tender or exchange offer
     for such shares, (b) any person (as such term is used in Sections 13(d) and
     14(d)(2)  of  the  Securities  Exchange  Act of  1934)  is or  becomes  the
     beneficial owner, directly or indirectly, of securities of KFBI or the Bank
     representing  25% or more of the  combined  voting  power  of  KFBI's  then
     outstanding  securities,  (c) the  membership  of the board of directors of
     KFBI or the Bank changes as the result of a contested  election,  such that
     individuals  who were directors at the beginning of any  twenty-four  month
     period  (whether  commencing  before  or after the  effective  date of this
     Agreement)  do not  constitute  a majority  of the Board at the end of such
     period,  or  (d)  shareholders  of  KFBI  or the  Bank  approve  a  merger,
     consolidation, sale or disposition of all or substantially all of KFBI's or
     the Bank's assets, or a plan of partial or complete liquidation.


XVII. AMENDMENT OR REVOCATION, AND EXCHANGE OF POLICY

     Subject to the Bank's  absolute  right to surrender or terminate the policy
     at any time and for any  reason,  it is agreed by and  between  the parties
     hereto  that,  during the lifetime of the Insured,  this  Agreement  may be
     amended or revoked at any time or times, in whole or in part, by the mutual
     written  consent  of the  Insured  and the  Bank.  The Bank  may,  however,
     unilaterally  and  without the consent of the  Insured,  exchange  any life
     insurance  policy(ies) that are the subject matter of this Agreement,  with
     or  without  replacing  said  policy(ies)  and,  in the  event of a same or
     similar exchange, the Insured expressly agrees to the same.


XVIII. SEVERABILITY AND INTERPRETATION

     If a provision of this  Agreement  is held to be invalid or  unenforceable,
     the remaining  provisions  shall  nonetheless be  enforceable  according to
     their  terms.  Further,  in the  event  that  any  provision  is held to be
     overbroad as written such  provision  shall be deemed amended to narrow its
     application  to the  extent  necessary  to make the  provision  enforceable
     according to law and enforced as amended.


XIX. APPLICABLE LAW

     The  laws  of  the  State  of  Oregon   shall   govern  the   validity  and
     interpretation of this Agreement.
<PAGE>


XX.  EFFECT OF THE LIFE INSURANCE POLICY'S CONTESTABILITY CLAUSES

     The parties  herein  understand  and agree that the payment of the benefits
     provided  herein are  subject to the Life  Insurance  Policy's  suicide and
     contestability clauses and other such clauses, and if such clauses preclude
     the Insurer from paying the full death  proceeds,  then, in such event,  no
     death  benefits  of  whatever  nature  shall be  payable to  Insured's  (or
     Insured's   Assignee's)   beneficiary(s)   under  this  Joint   Beneficiary
     Designation Agreement.


Executed at Klamath Falls, Oregon this 16th day of May, 2003.


                               KLAMATH FIRST FEDERAL
                               SAVINGS AND LOAN ASSOCIATION
                               Klamath Falls, Oregon



/s/ Nina G. Drake               By:  /s/ Kermit K. Houser
Witness                         Kermit K. Houser, President and CEO


/s/ Nina G. Drake               By:  /s/ Ben A. Gay
Witness                         Ben A. Gay


<PAGE>


                          BENEFICIARY DESIGNATION FORM
                 FOR THE JOINT BENEFICIARY DESIGNATION AGREEMENT

I.   PRIMARY   DESIGNATION
     (You  may  refer  to  the  beneficiary   designation information
        prior to completion of this form.)

A.   Person(s) as a Primary  Designation:  ____________________________________
     (Please  indicate the  percentage for each beneficiary.)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)


B.   Estate as a Primary Designation:

My Primary Beneficiary is The Estate of ___________________________ as set forth
in the last will and testament dated the _____ day of ________________, ________
and any codicils thereto.

C.   Trust as a Primary Designation:

Name of the Trust:  ____________________________________________________________
Execution Date of the Trust: _____ / _____ / _________
Name of the Trustee: __________________________________________________________
Beneficiary(ies) of the Trust (please indicate the percentage for each
beneficiary):
___________________________________________________________________________
___________________________________________________________________________
Is this an Irrevocable Life Insurance Trust?  ________ Yes     ________ No
(If yes and this designation is for a Split Dollar agreement, an Assignment of
Rights form should be completed.)


<PAGE>


II.  SECONDARY (CONTINGENT) DESIGNATION

A.   Person(s) as a Secondary  (Contingent)  Designation:
     (Please  indicate the percentage for each beneficiary.)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)


B.   Estate as a Secondary (Contingent) Designation:

My Secondary Beneficiary is The Estate of ______________________________________
as set forth in my last will and testament dated the ____ day of ________, _____
and any codicils thereto.

C.   Trust as a Secondary (Contingent) Designation:

Name of the Trust:  ____________________________________________________________
Execution Date of the Trust: _____ / _____ / _________
Name of the Trustee: __________________________________________________________
Beneficiary(ies) of the Trust (please indicate the percentage for each
beneficiary):
___________________________________________________________________________
___________________________________________________________________________

All sums  payable  under the Joint  Beneficiary  Agreement by reason of my death
shall be paid to the Primary Beneficiary(ies),  if he or she survives me, and if
no Primary Beneficiary(ies) shall survive me, then to the Secondary (Contingent)
Beneficiary(ies).  This  beneficiary  designation is valid until the participant
notifies the bank in writing.



__________________________                     Date ____________________________
Ben A. Gay
<PAGE>
                                                                 Exhibit 10(d).5
                           JOINT BENEFICIARY AGREEMENT

Insurer(s):               1 - Massachusetts Mutual Life Insurance Company
                          2 - New York Life Insurance Company
                          3 - Northwestern Mutual Life Insurance Company
                          4 - Southland Life Insurance Company

Policy Number(s):         1 - 0052951
                          2 - 56603382
                          3 - 16354464
                          4 - 0600098086

Bank:                     Klamath First Federal Savings and Loan Association

Insured:                  Frank X. Hernandez

Relationship to Bank:     Executive

Effective Date:           January 1, 2003

The  respective   rights  and  duties  of  the  Bank  and  the  Insured  in  the
above-referenced policy shall be pursuant to the terms set forth below:


I.   DEFINITIONS

     Refer  to the  policy  contract  for the  definition  of any  terms in this
     Agreement  that is not defined  herein.  If the definition of a term in the
     policy is  inconsistent  with the  definition of a term in this  Agreement,
     then the  definition  of the  term as set  forth  in this  Agreement  shall
     supersede  and  replace  the  definition  of the  term as set  forth in the
     policy.


II.  POLICY TITLE AND OWNERSHIP

     Title and ownership shall reside in the Bank for its use and for the use of
     the Insured all in accordance with this  Agreement.  The Bank alone may, to
     the extent of its interest, exercise the right to borrow or withdraw on the
     policy cash values.  Where the Bank and the Insured (or assignee,  with the
     consent of the  Insured)  mutually  agree to exercise the right to increase
     the coverage under the subject Joint Beneficiary  Designation policy, then,
     in such  event,  the  rights,  duties and  benefits  of the parties to such
     increased  coverage  shall  continue  to be  subject  to the  terms of this
     Agreement.


III. BENEFICIARY DESIGNATION RIGHTS

     The Insured  (or  assignee)  shall have the right and power to  designate a
     beneficiary or beneficiaries to receive the Insured's share of the proceeds
     payable  upon the death of the  Insured,  and to elect and change a payment
     option for such beneficiary,  subject to any right or interest the Bank may
     have in such proceeds, as provided in this Agreement.


IV.  PREMIUM PAYMENT METHOD

     Subject to the Bank's  absolute  right to surrender or terminate the policy
     at any time and for any reason,  the Bank shall pay an amount  equal to the
     planned premiums and any other premium payments that might become necessary
     to keep the policy in force.


V.   TAXABLE BENEFIT

     Annually the Insured will  receive a taxable  benefit  equal to the assumed
     cost of insurance as required by the Internal Revenue Service. The Bank (or
     its administrator)  will report to the Insured the amount of imputed income
     each year on Form W-2 or its equivalent.


VI.  DIVISION OF DEATH PROCEEDS

     Subject to Paragraphs VII and IX herein, the division of the death proceeds
     of the policy is as follows:

     A.   Provided  the policy  (policies)  specified  above are in force at the
          time of the  Insured's  death,  should the  Insured be employed by the
          Bank, retired from the Bank after attaining age sixty-two (62) without
          an earlier  termination of service from the Bank, or been subject to a
          termination  pursuant  to a  Change  in  Control  as  defined  in  the
          Insured's  Executive  Salary  Continuation  Agreement  and Section XVI
          below, at the time of Insured's death, the Insured's beneficiary(ies),
          designated in accordance  with  Paragraph III, shall be entitled to an
          amount  equal to  $1,064,980.00  until age seventy  (70),  $745,486.00
          after the  attainment of age seventy (70) but before the attainment of
          age eighty (80),  $319,494.00 after the attainment of age eighty (80),
          but in no event shall the benefit exceed one hundred percent (100%) of
          the  net-at-risk  insurance  portion of the proceeds.  The net-at-risk
          insurance  portion  is the total  proceeds  less the cash value of the
          policy.

     B.   Provided  the policy  (policies)  specified  above are in force at the
          time of the Insured's death, should the Insured not be employed by the
          Bank at the time of his or her death, the Insured's  beneficiary(ies),
          designated in accordance  with Paragraph III, shall be entitled to the
          greater of $100,000.00 or the "Death  Benefit:  After  Termination" as
          specified  in  Schedule  "A"  of  the  Executive  Salary  Continuation
          Agreement as of the date the Insured  terminated  employment  with the
          Bank.  However,  should the Insured be not employed by the Bank at the
          time of his or her death because of "Termination for Cause" as defined
          in Paragraph IX (A) of this Agreement, the Insured's beneficiary(ies),
          designated  in accordance  with  Paragraph  III,  shall be entitled to
          $25,000.

     C.   The Bank shall be entitled to the remainder of such proceeds.

     D.   The Bank and the Insured (or  assignees)  shall share in any  interest
          due on the death proceeds on a pro rata basis as the proceeds due each
          respectively bears to the total proceeds, excluding any such interest.

     E.   In the event that either the Policy is  terminated  or the proceeds of
          the Policy are insufficient to provide the benefit  specified  herein,
          other than as a result of any  intentional  act of the  Insured  which
          results in the  termination of the Policy,  then the Bank shall pay to
          the Insured's beneficiary(ies) an amount which, when combined with the
          proceeds of the Policy actually  received,  will provide a total after
          tax  death   benefit   equal  to  the  benefit   level   specified  in
          Subparagraphs VI (A) or (B).


VII. DIVISION OF THE CASH SURRENDER VALUE OF THE POLICY

     The Bank shall at all times be entitled to an amount  equal to the policy's
     cash value, as that term is defined in the policy contract, less any policy
     loans and unpaid interest or cash  withdrawals  previously  incurred by the
     Bank  and any  applicable  surrender  charges.  Such  cash  value  shall be
     determined as of the date of surrender or death as the case may be.


VIII. RIGHTS OF PARTIES WHERE POLICY ENDOWMENT OR ANNUITY ELECTION EXISTS

     In the event the policy  involves  an  endowment  or annuity  element,  the
     Bank's right and interest in any endowment proceeds or annuity benefits, on
     expiration  of  the  deferment  period,   shall  be  determined  under  the
     provisions of this Agreement by regarding  such  endowment  proceeds or the
     commuted  value of such annuity  benefits as the policy's cash value.  Such
     endowment proceeds or annuity benefits shall be considered to be like death
     proceeds for the purposes of division under this Agreement.


IX.  TERMINATION FOR CAUSE

     "Termination for Cause" shall have the definition provided in the Insured's
     Employment  Agreement,  as amended from time to time, with the Bank. If the
     Insured has no Employment Agreement with the Bank,  "Termination for Cause"
     shall include  termination  because of the Insured's  personal  dishonesty,
     incompetence,  willful  misconduct,  breach  of  fiduciary  duty  involving
     personal  profit,  intentional  failure to perform stated  duties,  willful
     violation of any law, rule, or regulation (other than traffic violations or
     similar  offenses) or final  cease-and-desist  order.  For purposes of this
     Section,  no act,  or the  failure  to act,  on  Insured's  part  shall  be
     "willful" unless done, or omitted to be done, not in good faith and without
     reasonable  belief that the action or omission was in the best  interest of
     the Bank or its affiliates.  Notwithstanding  the foregoing,  Insured shall
     not be deemed to have been  terminated  for Cause  unless  and until  there
     shall  have  been  delivered  to the  Insured a copy of a  resolution  duly
     adopted  by the  affirmative  vote of not less  than  three-fourths  of the
     members  of the Board at a meeting  of the Board  called  and held for that
     purpose (after  reasonable  notice to Insured and an opportunity,  together
     with counsel, to be heard before the Board), finding that in the good faith
     opinion of the Board, Insured was guilty of conduct justifying  termination
     for Cause and specifying the reasons thereof.


X.   TERMINATION OF AGREEMENT.

     This Agreement shall terminate upon the occurrence of surrender,  lapse, or
     other  termination  of the Policy by the Bank, and subject to the Insured's
     benefits provided by VI (E) above and the option as set forth hereinbelow

     Upon such termination of this Agreement but prior to the termination of the
     policy by the Bank, the Insured (or assignee) shall have a fifteen (15) day
     option to receive  from the Bank an  absolute  assignment  of the policy in
     consideration of a cash payment to the Bank, whereupon this Agreement shall
     terminate.  Such cash payment referred to hereinabove  shall be the greater
     of:

     i.   The  Bank's  share of the cash value of the policy on the date of such
          assignment, as defined in this Agreement; or

     ii.  The  amount of the  premiums  that have been paid by the Bank prior to
          the date of such assignment.

     If, within said fifteen (15) day period, the Insured fails to exercise said
     option, fails to procure the entire aforestated cash payment, or dies, then
     the option shall terminate and the Insured (or assignee) agrees that all of
     the Insured's rights,  interest and claims in the policy shall terminate as
     of the date of the termination of this Agreement.

     The  Insured   expressly   agrees  that  this  Agreement  shall  constitute
     sufficient written notice to the Insured of the Insured's option to receive
     an absolute assignment of the policy as set forth herein.

     Except as provided above,  this Agreement shall terminate upon distribution
     of the death benefit proceeds in accordance with Paragraph VI above.


XI.  INSURED'S OR ASSIGNEE'S ASSIGNMENT RIGHTS

     The Insured may not, without the written consent of the Bank, assign to any
     individual,  trust or other  organization,  any right, title or interest in
     the subject  policy nor any rights,  options,  privileges or duties created
     under this Agreement.


XII. AGREEMENT BINDING UPON THE PARTIES

     This  Agreement  shall  bind  the  Insured  and  the  Bank,   their  heirs,
     successors, personal representatives and assigns.


XIII. ADMINISTRATIVE AND CLAIMS PROVISIONS

     The  following  provisions  are part of this  Agreement and are intended to
     meet the  requirements  of the Employee  Retirement  Income Security Act of
     1974 ("ERISA"):

     A.   Named Fiduciary and Plan Administrator.

          The "Named Fiduciary and Plan Administrator" of this Joint Beneficiary
          Designation  Agreement shall be Klamath First Federal Savings and Loan
          Association   until  its  resignation  or  removal  by  the  Board  of
          Directors.  As Named Fiduciary and Plan Administrator,  the Bank shall
          be responsible for the management, control, and administration of this
          Joint Beneficiary Plan as established  herein. The Named Fiduciary may
          delegate to others  certain  aspects of the  management  and operation
          responsibilities of the Plan, including the employment of advisors and
          the delegation of any ministerial duties to qualified individuals.



     B.   Funding Policy.

          Subject to the Bank's  absolute  right to surrender  or terminate  the
          policy at any time and for any  reason,  the  funding  policy for this
          Joint  Beneficiary  Plan shall be to maintain  the  subject  policy in
          force by paying, when due, all premiums required.

     C.   Basis of Payment of Benefits.

          Direct  payment by the  Insurer  is the basis of  payment of  benefits
          under this  Agreement,  with those benefits in turn being based on the
          payment of premiums as provided in this Agreement.

     D.   Claim Procedures.

          Claim  forms or claim  information  as to the  subject  policy  can be
          obtained by contacting Benmark,  Inc.  (800-544-6079).  When the Named
          Fiduciary  has a claim  which  may be  covered  under  the  provisions
          described  in the  insurance  policy,  they should  contact the office
          named above, and they will either complete a claim form and forward it
          to an  authorized  representative  of the  Insurer or advise the named
          Fiduciary what further  requirements  are necessary.  The Insurer will
          evaluate and make a decision as to payment. If the claim is payable, a
          benefit  check  will be  issued in  accordance  with the terms of this
          Agreement.

          In the  event  that a claim is not  eligible  under  the  policy,  the
          Insurer will notify the Named  Fiduciary of the denial pursuant to the
          requirements  under the terms of the policy. If the Named Fiduciary is
          dissatisfied  with the denial of the claim and wishes to contest  such
          claim denial, they should contact the office named above and they will
          assist in making an  inquiry to the  Insurer.  All  objections  to the
          Insurer's  actions  should be in writing and  submitted  to the office
          named above for transmittal to the Insurer.


XIV. GENDER

     Whenever  in this  Agreement  words  are used in the  masculine  or  neuter
     gender,  they shall be read and construed as in the masculine,  feminine or
     neuter gender, whenever they should so apply.





XV.  INSURANCE COMPANY NOT A PARTY TO THIS AGREEMENT

     The Insurer shall not be deemed a party to this Agreement, but will respect
     the rights of the parties as herein  developed  upon  receiving an executed
     copy of this Agreement. Payment or other performance in accordance with the
     policy  provisions  shall  fully  discharge  the  Insurer  from any and all
     liability.


XVI. CHANGE OF CONTROL

     For the purpose of this Agreement, a "Change in Control" of the Bank or its
     Holding Company,  Klamath First Bancorp, Inc. ("KFBI"),  shall be deemed to
     occur if and when (a) an offeror  other than KFBI  purchases  shares of the
     common stock of the KFBI or the Bank pursuant to a tender or exchange offer
     for such shares, (b) any person (as such term is used in Sections 13(d) and
     14(d)(2)  of  the  Securities  Exchange  Act of  1934)  is or  becomes  the
     beneficial owner, directly or indirectly, of securities of KFBI or the Bank
     representing  25% or more of the  combined  voting  power  of  KFBI's  then
     outstanding  securities,  (c) the  membership  of the board of directors of
     KFBI or the Bank changes as the result of a contested  election,  such that
     individuals  who were directors at the beginning of any  twenty-four  month
     period  (whether  commencing  before  or after the  effective  date of this
     Agreement)  do not  constitute  a majority  of the Board at the end of such
     period,  or  (d)  shareholders  of  KFBI  or the  Bank  approve  a  merger,
     consolidation, sale or disposition of all or substantially all of KFBI's or
     the Bank's assets, or a plan of partial or complete liquidation.


XVII. AMENDMENT OR REVOCATION, AND EXCHANGE OF POLICY

     Subject to the Bank's  absolute  right to surrender or terminate the policy
     at any time and for any  reason,  it is agreed by and  between  the parties
     hereto  that,  during the lifetime of the Insured,  this  Agreement  may be
     amended or revoked at any time or times, in whole or in part, by the mutual
     written  consent  of the  Insured  and the  Bank.  The Bank  may,  however,
     unilaterally  and  without the consent of the  Insured,  exchange  any life
     insurance  policy(ies) that are the subject matter of this Agreement,  with
     or  without  replacing  said  policy(ies)  and,  in the  event of a same or
     similar exchange, the Insured expressly agrees to the same.


XVIII. SEVERABILITY AND INTERPRETATION

     If a provision of this  Agreement  is held to be invalid or  unenforceable,
     the remaining  provisions  shall  nonetheless be  enforceable  according to
     their  terms.  Further,  in the  event  that  any  provision  is held to be
     overbroad as written such  provision  shall be deemed amended to narrow its
     application  to the  extent  necessary  to make the  provision  enforceable
     according to law and enforced as amended.


XIX. APPLICABLE LAW

     The  laws  of  the  State  of  Oregon   shall   govern  the   validity  and
     interpretation of this Agreement.
<PAGE>


XX.  EFFECT OF THE LIFE INSURANCE POLICY'S CONTESTABILITY CLAUSES

     The parties  herein  understand  and agree that the payment of the benefits
     provided  herein are  subject to the Life  Insurance  Policy's  suicide and
     contestability clauses and other such clauses, and if such clauses preclude
     the Insurer from paying the full death  proceeds,  then, in such event,  no
     death  benefits  of  whatever  nature  shall be  payable to  Insured's  (or
     Insured's   Assignee's)   beneficiary(s)   under  this  Joint   Beneficiary
     Designation Agreement.


Executed at Klamath Falls, Oregon this 19th day of May, 2003.


                               KLAMATH FIRST FEDERAL
                               SAVINGS AND LOAN ASSOCIATION
                               Klamath Falls, Oregon



/s/ Nina G. Drake               By:  /s/ Kermit K. Houser
Witness                         Kermit K. Houser, President and CEO


/s/ Nina G. Drake               By:  /s/ Frank X. Hernandez
Witness                         Frank X. Hernandez


<PAGE>


                          BENEFICIARY DESIGNATION FORM
                 FOR THE JOINT BENEFICIARY DESIGNATION AGREEMENT

I.   PRIMARY   DESIGNATION
     (You  may  refer  to  the  beneficiary   designation information
        prior to completion of this form.)

A.   Person(s) as a Primary  Designation:  ____________________________________
     (Please  indicate the  percentage for each beneficiary.)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)


B.   Estate as a Primary Designation:

My Primary Beneficiary is The Estate of ___________________________ as set forth
in the last will and testament dated the _____ day of ________________, ________
and any codicils thereto.

C.   Trust as a Primary Designation:

Name of the Trust:  ____________________________________________________________
Execution Date of the Trust: _____ / _____ / _________
Name of the Trustee: __________________________________________________________
Beneficiary(ies) of the Trust (please indicate the percentage for each
beneficiary):
___________________________________________________________________________
___________________________________________________________________________
Is this an Irrevocable Life Insurance Trust?  ________ Yes     ________ No
(If yes and this designation is for a Split Dollar agreement, an Assignment of
Rights form should be completed.)


<PAGE>


II.  SECONDARY (CONTINGENT) DESIGNATION

A.   Person(s) as a Secondary  (Contingent)  Designation:
     (Please  indicate the percentage for each beneficiary.)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)


B.   Estate as a Secondary (Contingent) Designation:

My Secondary Beneficiary is The Estate of ______________________________________
as set forth in my last will and testament dated the ____ day of ________, _____
and any codicils thereto.

C.   Trust as a Secondary (Contingent) Designation:

Name of the Trust:  ____________________________________________________________
Execution Date of the Trust: _____ / _____ / _________
Name of the Trustee: __________________________________________________________
Beneficiary(ies) of the Trust (please indicate the percentage for each
beneficiary):
___________________________________________________________________________
___________________________________________________________________________

All sums  payable  under the Joint  Beneficiary  Agreement by reason of my death
shall be paid to the Primary Beneficiary(ies),  if he or she survives me, and if
no Primary Beneficiary(ies) shall survive me, then to the Secondary (Contingent)
Beneficiary(ies).  This  beneficiary  designation is valid until the participant
notifies the bank in writing.



__________________________                     Date ____________________________
Frank X. Hernandez
<PAGE>
                                                                 Exhibit 10(e).5
                           JOINT BENEFICIARY AGREEMENT

Insurer(s):               1 - Massachusetts Mutual Life Insurance Company
                          2 - New York Life Insurance Company
                          3 - Northwestern Mutual Life Insurance Company
                          4 - Southland Life Insurance Company

Policy Number(s):         1 - 0052953
                          2 - 56603384
                          3 - 16355908
                          4 - 0600098088

Bank:                     Klamath First Federal Savings and Loan Association

Insured:                  Craig M. Moore

Relationship to Bank:     Executive

Effective Date:           January 1, 2003

The  respective   rights  and  duties  of  the  Bank  and  the  Insured  in  the
above-referenced policy shall be pursuant to the terms set forth below:


I.   DEFINITIONS

     Refer  to the  policy  contract  for the  definition  of any  terms in this
     Agreement  that is not defined  herein.  If the definition of a term in the
     policy is  inconsistent  with the  definition of a term in this  Agreement,
     then the  definition  of the  term as set  forth  in this  Agreement  shall
     supersede  and  replace  the  definition  of the  term as set  forth in the
     policy.


II.  POLICY TITLE AND OWNERSHIP

     Title and ownership shall reside in the Bank for its use and for the use of
     the Insured all in accordance with this  Agreement.  The Bank alone may, to
     the extent of its interest, exercise the right to borrow or withdraw on the
     policy cash values.  Where the Bank and the Insured (or assignee,  with the
     consent of the  Insured)  mutually  agree to exercise the right to increase
     the coverage under the subject Joint Beneficiary  Designation policy, then,
     in such  event,  the  rights,  duties and  benefits  of the parties to such
     increased  coverage  shall  continue  to be  subject  to the  terms of this
     Agreement.


III. BENEFICIARY DESIGNATION RIGHTS

     The Insured  (or  assignee)  shall have the right and power to  designate a
     beneficiary or beneficiaries to receive the Insured's share of the proceeds
     payable  upon the death of the  Insured,  and to elect and change a payment
     option for such beneficiary,  subject to any right or interest the Bank may
     have in such proceeds, as provided in this Agreement.


IV.  PREMIUM PAYMENT METHOD

     Subject to the Bank's  absolute  right to surrender or terminate the policy
     at any time and for any reason,  the Bank shall pay an amount  equal to the
     planned premiums and any other premium payments that might become necessary
     to keep the policy in force.


V.   TAXABLE BENEFIT

     Annually the Insured will  receive a taxable  benefit  equal to the assumed
     cost of insurance as required by the Internal Revenue Service. The Bank (or
     its administrator)  will report to the Insured the amount of imputed income
     each year on Form W-2 or its equivalent.


VI.  DIVISION OF DEATH PROCEEDS

     Subject to Paragraphs VII and IX herein, the division of the death proceeds
     of the policy is as follows:

     A.   Provided  the policy  (policies)  specified  above are in force at the
          time of the  Insured's  death,  should the  Insured be employed by the
          Bank, retired from the Bank after attaining age sixty-two (62) without
          an earlier  termination of service from the Bank, or been subject to a
          termination  pursuant  to a  Change  in  Control  as  defined  in  the
          Insured's  Executive  Salary  Continuation  Agreement  and Section XVI
          below, at the time of Insured's death, the Insured's beneficiary(ies),
          designated in accordance  with  Paragraph III, shall be entitled to an
          amount  equal to  $1,329,820.00  until age seventy  (70),  $930,874.00
          after the  attainment of age seventy (70) but before the attainment of
          age eighty (80),  $398,946.00 after the attainment of age eighty (80),
          but in no event shall the benefit exceed one hundred percent (100%) of
          the  net-at-risk  insurance  portion of the proceeds.  The net-at-risk
          insurance  portion  is the total  proceeds  less the cash value of the
          policy.

     B.   Provided  the policy  (policies)  specified  above are in force at the
          time of the Insured's death, should the Insured not be employed by the
          Bank at the time of his or her death, the Insured's  beneficiary(ies),
          designated in accordance  with Paragraph III, shall be entitled to the
          greater of $100,000.00 or the "Death  Benefit:  After  Termination" as
          specified  in  Schedule  "A"  of  the  Executive  Salary  Continuation
          Agreement as of the date the Insured  terminated  employment  with the
          Bank.  However,  should the Insured be not employed by the Bank at the
          time of his or her death because of "Termination for Cause" as defined
          in Paragraph IX (A) of this Agreement, the Insured's beneficiary(ies),
          designated  in accordance  with  Paragraph  III,  shall be entitled to
          $25,000.

     C.   The Bank shall be entitled to the remainder of such proceeds.

     D.   The Bank and the Insured (or  assignees)  shall share in any  interest
          due on the death proceeds on a pro rata basis as the proceeds due each
          respectively bears to the total proceeds, excluding any such interest.

     E.   In the event that either the Policy is  terminated  or the proceeds of
          the Policy are insufficient to provide the benefit  specified  herein,
          other than as a result of any  intentional  act of the  Insured  which
          results in the  termination of the Policy,  then the Bank shall pay to
          the Insured's beneficiary(ies) an amount which, when combined with the
          proceeds of the Policy actually  received,  will provide a total after
          tax  death   benefit   equal  to  the  benefit   level   specified  in
          Subparagraphs VI (A) or (B).


VII. DIVISION OF THE CASH SURRENDER VALUE OF THE POLICY

     The Bank shall at all times be entitled to an amount  equal to the policy's
     cash value, as that term is defined in the policy contract, less any policy
     loans and unpaid interest or cash  withdrawals  previously  incurred by the
     Bank  and any  applicable  surrender  charges.  Such  cash  value  shall be
     determined as of the date of surrender or death as the case may be.


VIII. RIGHTS OF PARTIES WHERE POLICY ENDOWMENT OR ANNUITY ELECTION EXISTS

     In the event the policy  involves  an  endowment  or annuity  element,  the
     Bank's right and interest in any endowment proceeds or annuity benefits, on
     expiration  of  the  deferment  period,   shall  be  determined  under  the
     provisions of this Agreement by regarding  such  endowment  proceeds or the
     commuted  value of such annuity  benefits as the policy's cash value.  Such
     endowment proceeds or annuity benefits shall be considered to be like death
     proceeds for the purposes of division under this Agreement.


IX.  TERMINATION FOR CAUSE

     "Termination for Cause" shall have the definition provided in the Insured's
     Employment  Agreement,  as amended from time to time, with the Bank. If the
     Insured has no Employment Agreement with the Bank,  "Termination for Cause"
     shall include  termination  because of the Insured's  personal  dishonesty,
     incompetence,  willful  misconduct,  breach  of  fiduciary  duty  involving
     personal  profit,  intentional  failure to perform stated  duties,  willful
     violation of any law, rule, or regulation (other than traffic violations or
     similar  offenses) or final  cease-and-desist  order.  For purposes of this
     Section,  no act,  or the  failure  to act,  on  Insured's  part  shall  be
     "willful" unless done, or omitted to be done, not in good faith and without
     reasonable  belief that the action or omission was in the best  interest of
     the Bank or its affiliates.  Notwithstanding  the foregoing,  Insured shall
     not be deemed to have been  terminated  for Cause  unless  and until  there
     shall  have  been  delivered  to the  Insured a copy of a  resolution  duly
     adopted  by the  affirmative  vote of not less  than  three-fourths  of the
     members  of the Board at a meeting  of the Board  called  and held for that
     purpose (after  reasonable  notice to Insured and an opportunity,  together
     with counsel, to be heard before the Board), finding that in the good faith
     opinion of the Board, Insured was guilty of conduct justifying  termination
     for Cause and specifying the reasons thereof.


X.   TERMINATION OF AGREEMENT.

     This Agreement shall terminate upon the occurrence of surrender,  lapse, or
     other  termination  of the Policy by the Bank, and subject to the Insured's
     benefits provided by VI (E) above and the option as set forth hereinbelow

     Upon such termination of this Agreement but prior to the termination of the
     policy by the Bank, the Insured (or assignee) shall have a fifteen (15) day
     option to receive  from the Bank an  absolute  assignment  of the policy in
     consideration of a cash payment to the Bank, whereupon this Agreement shall
     terminate.  Such cash payment referred to hereinabove  shall be the greater
     of:

     i.   The  Bank's  share of the cash value of the policy on the date of such
          assignment, as defined in this Agreement; or

     ii.  The  amount of the  premiums  that have been paid by the Bank prior to
          the date of such assignment.

     If, within said fifteen (15) day period, the Insured fails to exercise said
     option, fails to procure the entire aforestated cash payment, or dies, then
     the option shall terminate and the Insured (or assignee) agrees that all of
     the Insured's rights,  interest and claims in the policy shall terminate as
     of the date of the termination of this Agreement.

     The  Insured   expressly   agrees  that  this  Agreement  shall  constitute
     sufficient written notice to the Insured of the Insured's option to receive
     an absolute assignment of the policy as set forth herein.

     Except as provided above,  this Agreement shall terminate upon distribution
     of the death benefit proceeds in accordance with Paragraph VI above.


XI.  INSURED'S OR ASSIGNEE'S ASSIGNMENT RIGHTS

     The Insured may not, without the written consent of the Bank, assign to any
     individual,  trust or other  organization,  any right, title or interest in
     the subject  policy nor any rights,  options,  privileges or duties created
     under this Agreement.


XII. AGREEMENT BINDING UPON THE PARTIES

     This  Agreement  shall  bind  the  Insured  and  the  Bank,   their  heirs,
     successors, personal representatives and assigns.


XIII. ADMINISTRATIVE AND CLAIMS PROVISIONS

     The  following  provisions  are part of this  Agreement and are intended to
     meet the  requirements  of the Employee  Retirement  Income Security Act of
     1974 ("ERISA"):

     A.   Named Fiduciary and Plan Administrator.

          The "Named Fiduciary and Plan Administrator" of this Joint Beneficiary
          Designation  Agreement shall be Klamath First Federal Savings and Loan
          Association   until  its  resignation  or  removal  by  the  Board  of
          Directors.  As Named Fiduciary and Plan Administrator,  the Bank shall
          be responsible for the management, control, and administration of this
          Joint Beneficiary Plan as established  herein. The Named Fiduciary may
          delegate to others  certain  aspects of the  management  and operation
          responsibilities of the Plan, including the employment of advisors and
          the delegation of any ministerial duties to qualified individuals.



     B.   Funding Policy.

          Subject to the Bank's  absolute  right to surrender  or terminate  the
          policy at any time and for any  reason,  the  funding  policy for this
          Joint  Beneficiary  Plan shall be to maintain  the  subject  policy in
          force by paying, when due, all premiums required.

     C.   Basis of Payment of Benefits.

          Direct  payment by the  Insurer  is the basis of  payment of  benefits
          under this  Agreement,  with those benefits in turn being based on the
          payment of premiums as provided in this Agreement.

     D.   Claim Procedures.

          Claim  forms or claim  information  as to the  subject  policy  can be
          obtained by contacting Benmark,  Inc.  (800-544-6079).  When the Named
          Fiduciary  has a claim  which  may be  covered  under  the  provisions
          described  in the  insurance  policy,  they should  contact the office
          named above, and they will either complete a claim form and forward it
          to an  authorized  representative  of the  Insurer or advise the named
          Fiduciary what further  requirements  are necessary.  The Insurer will
          evaluate and make a decision as to payment. If the claim is payable, a
          benefit  check  will be  issued in  accordance  with the terms of this
          Agreement.

          In the  event  that a claim is not  eligible  under  the  policy,  the
          Insurer will notify the Named  Fiduciary of the denial pursuant to the
          requirements  under the terms of the policy. If the Named Fiduciary is
          dissatisfied  with the denial of the claim and wishes to contest  such
          claim denial, they should contact the office named above and they will
          assist in making an  inquiry to the  Insurer.  All  objections  to the
          Insurer's  actions  should be in writing and  submitted  to the office
          named above for transmittal to the Insurer.


XIV. GENDER

     Whenever  in this  Agreement  words  are used in the  masculine  or  neuter
     gender,  they shall be read and construed as in the masculine,  feminine or
     neuter gender, whenever they should so apply.





XV.  INSURANCE COMPANY NOT A PARTY TO THIS AGREEMENT

     The Insurer shall not be deemed a party to this Agreement, but will respect
     the rights of the parties as herein  developed  upon  receiving an executed
     copy of this Agreement. Payment or other performance in accordance with the
     policy  provisions  shall  fully  discharge  the  Insurer  from any and all
     liability.


XVI. CHANGE OF CONTROL

     For the purpose of this Agreement, a "Change in Control" of the Bank or its
     Holding Company,  Klamath First Bancorp, Inc. ("KFBI"),  shall be deemed to
     occur if and when (a) an offeror  other than KFBI  purchases  shares of the
     common stock of the KFBI or the Bank pursuant to a tender or exchange offer
     for such shares, (b) any person (as such term is used in Sections 13(d) and
     14(d)(2)  of  the  Securities  Exchange  Act of  1934)  is or  becomes  the
     beneficial owner, directly or indirectly, of securities of KFBI or the Bank
     representing  25% or more of the  combined  voting  power  of  KFBI's  then
     outstanding  securities,  (c) the  membership  of the board of directors of
     KFBI or the Bank changes as the result of a contested  election,  such that
     individuals  who were directors at the beginning of any  twenty-four  month
     period  (whether  commencing  before  or after the  effective  date of this
     Agreement)  do not  constitute  a majority  of the Board at the end of such
     period,  or  (d)  shareholders  of  KFBI  or the  Bank  approve  a  merger,
     consolidation, sale or disposition of all or substantially all of KFBI's or
     the Bank's assets, or a plan of partial or complete liquidation.


XVII. AMENDMENT OR REVOCATION, AND EXCHANGE OF POLICY

     Subject to the Bank's  absolute  right to surrender or terminate the policy
     at any time and for any  reason,  it is agreed by and  between  the parties
     hereto  that,  during the lifetime of the Insured,  this  Agreement  may be
     amended or revoked at any time or times, in whole or in part, by the mutual
     written  consent  of the  Insured  and the  Bank.  The Bank  may,  however,
     unilaterally  and  without the consent of the  Insured,  exchange  any life
     insurance  policy(ies) that are the subject matter of this Agreement,  with
     or  without  replacing  said  policy(ies)  and,  in the  event of a same or
     similar exchange, the Insured expressly agrees to the same.


XVIII. SEVERABILITY AND INTERPRETATION

     If a provision of this  Agreement  is held to be invalid or  unenforceable,
     the remaining  provisions  shall  nonetheless be  enforceable  according to
     their  terms.  Further,  in the  event  that  any  provision  is held to be
     overbroad as written such  provision  shall be deemed amended to narrow its
     application  to the  extent  necessary  to make the  provision  enforceable
     according to law and enforced as amended.


XIX. APPLICABLE LAW

     The  laws  of  the  State  of  Oregon   shall   govern  the   validity  and
     interpretation of this Agreement.
<PAGE>


XX.  EFFECT OF THE LIFE INSURANCE POLICY'S CONTESTABILITY CLAUSES

     The parties  herein  understand  and agree that the payment of the benefits
     provided  herein are  subject to the Life  Insurance  Policy's  suicide and
     contestability clauses and other such clauses, and if such clauses preclude
     the Insurer from paying the full death  proceeds,  then, in such event,  no
     death  benefits  of  whatever  nature  shall be  payable to  Insured's  (or
     Insured's   Assignee's)   beneficiary(s)   under  this  Joint   Beneficiary
     Designation Agreement.


Executed at Klamath Falls, Oregon this 14th day of May, 2003.


                               KLAMATH FIRST FEDERAL
                               SAVINGS AND LOAN ASSOCIATION
                               Klamath Falls, Oregon



/s/ Nina G. Drake               By:  /s/ Kermit K. Houser
Witness                         Kermit K. Houser, President and CEO


/s/ Kathryn Rutledge            By:  /s/ Craig M. Moore
Witness                         Craig M. Moore


<PAGE>


                          BENEFICIARY DESIGNATION FORM
                 FOR THE JOINT BENEFICIARY DESIGNATION AGREEMENT

I.   PRIMARY   DESIGNATION
     (You  may  refer  to  the  beneficiary   designation information
        prior to completion of this form.)

A.   Person(s) as a Primary  Designation:  ____________________________________
     (Please  indicate the  percentage for each beneficiary.)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)


B.   Estate as a Primary Designation:

My Primary Beneficiary is The Estate of ___________________________ as set forth
in the last will and testament dated the _____ day of ________________, ________
and any codicils thereto.

C.   Trust as a Primary Designation:

Name of the Trust:  ____________________________________________________________
Execution Date of the Trust: _____ / _____ / _________
Name of the Trustee: __________________________________________________________
Beneficiary(ies) of the Trust (please indicate the percentage for each
beneficiary):
___________________________________________________________________________
___________________________________________________________________________
Is this an Irrevocable Life Insurance Trust?  ________ Yes     ________ No
(If yes and this designation is for a Split Dollar agreement, an Assignment of
Rights form should be completed.)


<PAGE>


II.  SECONDARY (CONTINGENT) DESIGNATION

A.   Person(s) as a Secondary  (Contingent)  Designation:
     (Please  indicate the percentage for each beneficiary.)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)


B.   Estate as a Secondary (Contingent) Designation:

My Secondary Beneficiary is The Estate of ______________________________________
as set forth in my last will and testament dated the ____ day of ________, _____
and any codicils thereto.

C.   Trust as a Secondary (Contingent) Designation:

Name of the Trust:  ____________________________________________________________
Execution Date of the Trust: _____ / _____ / _________
Name of the Trustee: __________________________________________________________
Beneficiary(ies) of the Trust (please indicate the percentage for each
beneficiary):
___________________________________________________________________________
___________________________________________________________________________

All sums  payable  under the Joint  Beneficiary  Agreement by reason of my death
shall be paid to the Primary Beneficiary(ies),  if he or she survives me, and if
no Primary Beneficiary(ies) shall survive me, then to the Secondary (Contingent)
Beneficiary(ies).  This  beneficiary  designation is valid until the participant
notifies the bank in writing.



__________________________                     Date ____________________________
Craig M. Moore
<PAGE>
                                                                 Exhibit 10(f).5
                           JOINT BENEFICIARY AGREEMENT

Insurer(s):               1 - Massachusetts Mutual Life Insurance Company
                          2 - New York Life Insurance Company
                          3 - Northwestern Mutual Life Insurance Company
                          4 - Southland Life Insurance Company

Policy Number(s):         1 - 0052946
                          2 - 56603377
                          3 - 16365674
                          4 - 0600098081

Bank:                     Klamath First Federal Savings and Loan Association

Insured:                  James E. Essany

Relationship to Bank:     Executive

Effective Date:           January 1, 2003

The  respective   rights  and  duties  of  the  Bank  and  the  Insured  in  the
above-referenced policy shall be pursuant to the terms set forth below:


I.   DEFINITIONS

     Refer  to the  policy  contract  for the  definition  of any  terms in this
     Agreement  that is not defined  herein.  If the definition of a term in the
     policy is  inconsistent  with the  definition of a term in this  Agreement,
     then the  definition  of the  term as set  forth  in this  Agreement  shall
     supersede  and  replace  the  definition  of the  term as set  forth in the
     policy.


II.  POLICY TITLE AND OWNERSHIP

     Title and ownership shall reside in the Bank for its use and for the use of
     the Insured all in accordance with this  Agreement.  The Bank alone may, to
     the extent of its interest, exercise the right to borrow or withdraw on the
     policy cash values.  Where the Bank and the Insured (or assignee,  with the
     consent of the  Insured)  mutually  agree to exercise the right to increase
     the coverage under the subject Joint Beneficiary  Designation policy, then,
     in such  event,  the  rights,  duties and  benefits  of the parties to such
     increased  coverage  shall  continue  to be  subject  to the  terms of this
     Agreement.


III. BENEFICIARY DESIGNATION RIGHTS

     The Insured  (or  assignee)  shall have the right and power to  designate a
     beneficiary or beneficiaries to receive the Insured's share of the proceeds
     payable  upon the death of the  Insured,  and to elect and change a payment
     option for such beneficiary,  subject to any right or interest the Bank may
     have in such proceeds, as provided in this Agreement.


IV.  PREMIUM PAYMENT METHOD

     Subject to the Bank's  absolute  right to surrender or terminate the policy
     at any time and for any reason,  the Bank shall pay an amount  equal to the
     planned premiums and any other premium payments that might become necessary
     to keep the policy in force.


V.   TAXABLE BENEFIT

     Annually the Insured will  receive a taxable  benefit  equal to the assumed
     cost of insurance as required by the Internal Revenue Service. The Bank (or
     its administrator)  will report to the Insured the amount of imputed income
     each year on Form W-2 or its equivalent.


VI.  DIVISION OF DEATH PROCEEDS

     Subject to Paragraphs VII and IX herein, the division of the death proceeds
     of the policy is as follows:

     A.   Provided  the policy  (policies)  specified  above are in force at the
          time of the  Insured's  death,  should the  Insured be employed by the
          Bank, retired from the Bank after attaining age sixty-two (62) without
          an earlier  termination of service from the Bank, or been subject to a
          termination  pursuant  to a  Change  in  Control  as  defined  in  the
          Insured's  Executive  Salary  Continuation  Agreement  and Section XVI
          below, at the time of Insured's death, the Insured's beneficiary(ies),
          designated in accordance  with  Paragraph III, shall be entitled to an
          amount equal to $957,420.00 until age seventy (70),  $670,194.00 after
          the  attainment  of age seventy (70) but before the  attainment of age
          eighty (80),  $287,226.00 after the attainment of age eighty (80), but
          in no event shall the benefit exceed one hundred percent (100%) of the
          net-at-risk  insurance  portion  of  the  proceeds.   The  net-at-risk
          insurance  portion  is the total  proceeds  less the cash value of the
          policy.

     B.   Provided  the policy  (policies)  specified  above are in force at the
          time of the Insured's death, should the Insured not be employed by the
          Bank at the time of his or her death, the Insured's  beneficiary(ies),
          designated in accordance  with Paragraph III, shall be entitled to the
          greater of $100,000.00 or the "Death  Benefit:  After  Termination" as
          specified  in  Schedule  "A"  of  the  Executive  Salary  Continuation
          Agreement as of the date the Insured  terminated  employment  with the
          Bank.  However,  should the Insured be not employed by the Bank at the
          time of his or her death because of "Termination for Cause" as defined
          in Paragraph IX (A) of this Agreement, the Insured's beneficiary(ies),
          designated  in accordance  with  Paragraph  III,  shall be entitled to
          $25,000.

     C.   The Bank shall be entitled to the remainder of such proceeds.

     D.   The Bank and the Insured (or  assignees)  shall share in any  interest
          due on the death proceeds on a pro rata basis as the proceeds due each
          respectively bears to the total proceeds, excluding any such interest.

     E.   In the event that either the Policy is  terminated  or the proceeds of
          the Policy are insufficient to provide the benefit  specified  herein,
          other than as a result of any  intentional  act of the  Insured  which
          results in the  termination of the Policy,  then the Bank shall pay to
          the Insured's beneficiary(ies) an amount which, when combined with the
          proceeds of the Policy actually  received,  will provide a total after
          tax  death   benefit   equal  to  the  benefit   level   specified  in
          Subparagraphs VI (A) or (B).


VII. DIVISION OF THE CASH SURRENDER VALUE OF THE POLICY

     The Bank shall at all times be entitled to an amount  equal to the policy's
     cash value, as that term is defined in the policy contract, less any policy
     loans and unpaid interest or cash  withdrawals  previously  incurred by the
     Bank  and any  applicable  surrender  charges.  Such  cash  value  shall be
     determined as of the date of surrender or death as the case may be.


VIII. RIGHTS OF PARTIES WHERE POLICY ENDOWMENT OR ANNUITY ELECTION EXISTS

     In the event the policy  involves  an  endowment  or annuity  element,  the
     Bank's right and interest in any endowment proceeds or annuity benefits, on
     expiration  of  the  deferment  period,   shall  be  determined  under  the
     provisions of this Agreement by regarding  such  endowment  proceeds or the
     commuted  value of such annuity  benefits as the policy's cash value.  Such
     endowment proceeds or annuity benefits shall be considered to be like death
     proceeds for the purposes of division under this Agreement.


IX.  TERMINATION FOR CAUSE

     "Termination for Cause" shall have the definition provided in the Insured's
     Employment  Agreement,  as amended from time to time, with the Bank. If the
     Insured has no Employment Agreement with the Bank,  "Termination for Cause"
     shall include  termination  because of the Insured's  personal  dishonesty,
     incompetence,  willful  misconduct,  breach  of  fiduciary  duty  involving
     personal  profit,  intentional  failure to perform stated  duties,  willful
     violation of any law, rule, or regulation (other than traffic violations or
     similar  offenses) or final  cease-and-desist  order.  For purposes of this
     Section,  no act,  or the  failure  to act,  on  Insured's  part  shall  be
     "willful" unless done, or omitted to be done, not in good faith and without
     reasonable  belief that the action or omission was in the best  interest of
     the Bank or its affiliates.  Notwithstanding  the foregoing,  Insured shall
     not be deemed to have been  terminated  for Cause  unless  and until  there
     shall  have  been  delivered  to the  Insured a copy of a  resolution  duly
     adopted  by the  affirmative  vote of not less  than  three-fourths  of the
     members  of the Board at a meeting  of the Board  called  and held for that
     purpose (after  reasonable  notice to Insured and an opportunity,  together
     with counsel, to be heard before the Board), finding that in the good faith
     opinion of the Board, Insured was guilty of conduct justifying  termination
     for Cause and specifying the reasons thereof.


X.   TERMINATION OF AGREEMENT.

     This Agreement shall terminate upon the occurrence of surrender,  lapse, or
     other  termination  of the Policy by the Bank, and subject to the Insured's
     benefits provided by VI (E) above and the option as set forth hereinbelow

     Upon such termination of this Agreement but prior to the termination of the
     policy by the Bank, the Insured (or assignee) shall have a fifteen (15) day
     option to receive  from the Bank an  absolute  assignment  of the policy in
     consideration of a cash payment to the Bank, whereupon this Agreement shall
     terminate.  Such cash payment referred to hereinabove  shall be the greater
     of:

     i.   The  Bank's  share of the cash value of the policy on the date of such
          assignment, as defined in this Agreement; or

     ii.  The  amount of the  premiums  that have been paid by the Bank prior to
          the date of such assignment.

     If, within said fifteen (15) day period, the Insured fails to exercise said
     option, fails to procure the entire aforestated cash payment, or dies, then
     the option shall terminate and the Insured (or assignee) agrees that all of
     the Insured's rights,  interest and claims in the policy shall terminate as
     of the date of the termination of this Agreement.

     The  Insured   expressly   agrees  that  this  Agreement  shall  constitute
     sufficient written notice to the Insured of the Insured's option to receive
     an absolute assignment of the policy as set forth herein.

     Except as provided above,  this Agreement shall terminate upon distribution
     of the death benefit proceeds in accordance with Paragraph VI above.


XI.  INSURED'S OR ASSIGNEE'S ASSIGNMENT RIGHTS

     The Insured may not, without the written consent of the Bank, assign to any
     individual,  trust or other  organization,  any right, title or interest in
     the subject  policy nor any rights,  options,  privileges or duties created
     under this Agreement.


XII. AGREEMENT BINDING UPON THE PARTIES

     This  Agreement  shall  bind  the  Insured  and  the  Bank,   their  heirs,
     successors, personal representatives and assigns.


XIII. ADMINISTRATIVE AND CLAIMS PROVISIONS

     The  following  provisions  are part of this  Agreement and are intended to
     meet the  requirements  of the Employee  Retirement  Income Security Act of
     1974 ("ERISA"):

     A.   Named Fiduciary and Plan Administrator.

          The "Named Fiduciary and Plan Administrator" of this Joint Beneficiary
          Designation  Agreement shall be Klamath First Federal Savings and Loan
          Association   until  its  resignation  or  removal  by  the  Board  of
          Directors.  As Named Fiduciary and Plan Administrator,  the Bank shall
          be responsible for the management, control, and administration of this
          Joint Beneficiary Plan as established  herein. The Named Fiduciary may
          delegate to others  certain  aspects of the  management  and operation
          responsibilities of the Plan, including the employment of advisors and
          the delegation of any ministerial duties to qualified individuals.



     B.   Funding Policy.

          Subject to the Bank's  absolute  right to surrender  or terminate  the
          policy at any time and for any  reason,  the  funding  policy for this
          Joint  Beneficiary  Plan shall be to maintain  the  subject  policy in
          force by paying, when due, all premiums required.

     C.   Basis of Payment of Benefits.

          Direct  payment by the  Insurer  is the basis of  payment of  benefits
          under this  Agreement,  with those benefits in turn being based on the
          payment of premiums as provided in this Agreement.

     D.   Claim Procedures.

          Claim  forms or claim  information  as to the  subject  policy  can be
          obtained by contacting Benmark,  Inc.  (800-544-6079).  When the Named
          Fiduciary  has a claim  which  may be  covered  under  the  provisions
          described  in the  insurance  policy,  they should  contact the office
          named above, and they will either complete a claim form and forward it
          to an  authorized  representative  of the  Insurer or advise the named
          Fiduciary what further  requirements  are necessary.  The Insurer will
          evaluate and make a decision as to payment. If the claim is payable, a
          benefit  check  will be  issued in  accordance  with the terms of this
          Agreement.

          In the  event  that a claim is not  eligible  under  the  policy,  the
          Insurer will notify the Named  Fiduciary of the denial pursuant to the
          requirements  under the terms of the policy. If the Named Fiduciary is
          dissatisfied  with the denial of the claim and wishes to contest  such
          claim denial, they should contact the office named above and they will
          assist in making an  inquiry to the  Insurer.  All  objections  to the
          Insurer's  actions  should be in writing and  submitted  to the office
          named above for transmittal to the Insurer.


XIV. GENDER

     Whenever  in this  Agreement  words  are used in the  masculine  or  neuter
     gender,  they shall be read and construed as in the masculine,  feminine or
     neuter gender, whenever they should so apply.





XV.  INSURANCE COMPANY NOT A PARTY TO THIS AGREEMENT

     The Insurer shall not be deemed a party to this Agreement, but will respect
     the rights of the parties as herein  developed  upon  receiving an executed
     copy of this Agreement. Payment or other performance in accordance with the
     policy  provisions  shall  fully  discharge  the  Insurer  from any and all
     liability.


XVI. CHANGE OF CONTROL

     For the purpose of this Agreement, a "Change in Control" of the Bank or its
     Holding Company,  Klamath First Bancorp, Inc. ("KFBI"),  shall be deemed to
     occur if and when (a) an offeror  other than KFBI  purchases  shares of the
     common stock of the KFBI or the Bank pursuant to a tender or exchange offer
     for such shares, (b) any person (as such term is used in Sections 13(d) and
     14(d)(2)  of  the  Securities  Exchange  Act of  1934)  is or  becomes  the
     beneficial owner, directly or indirectly, of securities of KFBI or the Bank
     representing  25% or more of the  combined  voting  power  of  KFBI's  then
     outstanding  securities,  (c) the  membership  of the board of directors of
     KFBI or the Bank changes as the result of a contested  election,  such that
     individuals  who were directors at the beginning of any  twenty-four  month
     period  (whether  commencing  before  or after the  effective  date of this
     Agreement)  do not  constitute  a majority  of the Board at the end of such
     period,  or  (d)  shareholders  of  KFBI  or the  Bank  approve  a  merger,
     consolidation, sale or disposition of all or substantially all of KFBI's or
     the Bank's assets, or a plan of partial or complete liquidation.


XVII. AMENDMENT OR REVOCATION, AND EXCHANGE OF POLICY

     Subject to the Bank's  absolute  right to surrender or terminate the policy
     at any time and for any  reason,  it is agreed by and  between  the parties
     hereto  that,  during the lifetime of the Insured,  this  Agreement  may be
     amended or revoked at any time or times, in whole or in part, by the mutual
     written  consent  of the  Insured  and the  Bank.  The Bank  may,  however,
     unilaterally  and  without the consent of the  Insured,  exchange  any life
     insurance  policy(ies) that are the subject matter of this Agreement,  with
     or  without  replacing  said  policy(ies)  and,  in the  event of a same or
     similar exchange, the Insured expressly agrees to the same.


XVIII. SEVERABILITY AND INTERPRETATION

     If a provision of this  Agreement  is held to be invalid or  unenforceable,
     the remaining  provisions  shall  nonetheless be  enforceable  according to
     their  terms.  Further,  in the  event  that  any  provision  is held to be
     overbroad as written such  provision  shall be deemed amended to narrow its
     application  to the  extent  necessary  to make the  provision  enforceable
     according to law and enforced as amended.


XIX. APPLICABLE LAW

     The  laws  of  the  State  of  Oregon   shall   govern  the   validity  and
     interpretation of this Agreement.
<PAGE>


XX.  EFFECT OF THE LIFE INSURANCE POLICY'S CONTESTABILITY CLAUSES

     The parties  herein  understand  and agree that the payment of the benefits
     provided  herein are  subject to the Life  Insurance  Policy's  suicide and
     contestability clauses and other such clauses, and if such clauses preclude
     the Insurer from paying the full death  proceeds,  then, in such event,  no
     death  benefits  of  whatever  nature  shall be  payable to  Insured's  (or
     Insured's   Assignee's)   beneficiary(s)   under  this  Joint   Beneficiary
     Designation Agreement.


Executed at Klamath Falls, Oregon this 13th day of May, 2003.


                               KLAMATH FIRST FEDERAL
                               SAVINGS AND LOAN ASSOCIATION
                               Klamath Falls, Oregon



/s/ Nina G. Drake               By:  /s/ Kermit K. Houser
Witness                         Kermit K. Houser, President and CEO


/s/ Kathryn Rutledge            By:  /s/ James E. Essany
Witness                         James E. Essany


<PAGE>


                          BENEFICIARY DESIGNATION FORM
                 FOR THE JOINT BENEFICIARY DESIGNATION AGREEMENT

I.   PRIMARY   DESIGNATION
     (You  may  refer  to  the  beneficiary   designation information
        prior to completion of this form.)

A.   Person(s) as a Primary  Designation:  ____________________________________
     (Please  indicate the  percentage for each beneficiary.)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)


B.   Estate as a Primary Designation:

My Primary Beneficiary is The Estate of ___________________________ as set forth
in the last will and testament dated the _____ day of ________________, ________
and any codicils thereto.

C.   Trust as a Primary Designation:

Name of the Trust:  ____________________________________________________________
Execution Date of the Trust: _____ / _____ / _________
Name of the Trustee: __________________________________________________________
Beneficiary(ies) of the Trust (please indicate the percentage for each
beneficiary):
___________________________________________________________________________
___________________________________________________________________________
Is this an Irrevocable Life Insurance Trust?  ________ Yes     ________ No
(If yes and this designation is for a Split Dollar agreement, an Assignment of
Rights form should be completed.)


<PAGE>


II.  SECONDARY (CONTINGENT) DESIGNATION

A.   Person(s) as a Secondary  (Contingent)  Designation:
     (Please  indicate the percentage for each beneficiary.)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)


B.   Estate as a Secondary (Contingent) Designation:

My Secondary Beneficiary is The Estate of ______________________________________
as set forth in my last will and testament dated the ____ day of ________, _____
and any codicils thereto.

C.   Trust as a Secondary (Contingent) Designation:

Name of the Trust:  ____________________________________________________________
Execution Date of the Trust: _____ / _____ / _________
Name of the Trustee: __________________________________________________________
Beneficiary(ies) of the Trust (please indicate the percentage for each
beneficiary):
___________________________________________________________________________
___________________________________________________________________________

All sums  payable  under the Joint  Beneficiary  Agreement by reason of my death
shall be paid to the Primary Beneficiary(ies),  if he or she survives me, and if
no Primary Beneficiary(ies) shall survive me, then to the Secondary (Contingent)
Beneficiary(ies).  This  beneficiary  designation is valid until the participant
notifies the bank in writing.



__________________________                     Date ____________________________
James E. Essany
<PAGE>
                                                                 Exhibit 10(g).5
                           JOINT BENEFICIARY AGREEMENT

Insurer(s):               1 - Massachusetts Mutual Life Insurance Company
                          2 - New York Life Insurance Company
                          3 - Northwestern Mutual Life Insurance Company
                          4 - Southland Life Insurance Company

Policy Number(s):         1 - 0052944
                          2 - 56603375
                          3 - 16354390
                          4 - 0600098079

Bank:                     Klamath First Federal Savings and Loan Association

Insured:                  Walter F. Dodrill

Relationship to Bank:     Executive

Effective Date:           January 1, 2003

The  respective   rights  and  duties  of  the  Bank  and  the  Insured  in  the
above-referenced policy shall be pursuant to the terms set forth below:


I.   DEFINITIONS

     Refer  to the  policy  contract  for the  definition  of any  terms in this
     Agreement  that is not defined  herein.  If the definition of a term in the
     policy is  inconsistent  with the  definition of a term in this  Agreement,
     then the  definition  of the  term as set  forth  in this  Agreement  shall
     supersede  and  replace  the  definition  of the  term as set  forth in the
     policy.


II.  POLICY TITLE AND OWNERSHIP

     Title and ownership shall reside in the Bank for its use and for the use of
     the Insured all in accordance with this  Agreement.  The Bank alone may, to
     the extent of its interest, exercise the right to borrow or withdraw on the
     policy cash values.  Where the Bank and the Insured (or assignee,  with the
     consent of the  Insured)  mutually  agree to exercise the right to increase
     the coverage under the subject Joint Beneficiary  Designation policy, then,
     in such  event,  the  rights,  duties and  benefits  of the parties to such
     increased  coverage  shall  continue  to be  subject  to the  terms of this
     Agreement.


III. BENEFICIARY DESIGNATION RIGHTS

     The Insured  (or  assignee)  shall have the right and power to  designate a
     beneficiary or beneficiaries to receive the Insured's share of the proceeds
     payable  upon the death of the  Insured,  and to elect and change a payment
     option for such beneficiary,  subject to any right or interest the Bank may
     have in such proceeds, as provided in this Agreement.


IV.  PREMIUM PAYMENT METHOD

     Subject to the Bank's  absolute  right to surrender or terminate the policy
     at any time and for any reason,  the Bank shall pay an amount  equal to the
     planned premiums and any other premium payments that might become necessary
     to keep the policy in force.


V.   TAXABLE BENEFIT

     Annually the Insured will  receive a taxable  benefit  equal to the assumed
     cost of insurance as required by the Internal Revenue Service. The Bank (or
     its administrator)  will report to the Insured the amount of imputed income
     each year on Form W-2 or its equivalent.


VI.  DIVISION OF DEATH PROCEEDS

     Subject to Paragraphs VII and IX herein, the division of the death proceeds
     of the policy is as follows:

     A.   Provided  the policy  (policies)  specified  above are in force at the
          time of the  Insured's  death,  should the  Insured be employed by the
          Bank, retired from the Bank after attaining age sixty-two (62) without
          an earlier  termination of service from the Bank, or been subject to a
          termination  pursuant  to a  Change  in  Control  as  defined  in  the
          Insured's  Executive  Salary  Continuation  Agreement  and Section XVI
          below, at the time of Insured's death, the Insured's beneficiary(ies),
          designated in accordance  with  Paragraph III, shall be entitled to an
          amount equal to $882,230.00 until age seventy (70),  $617,561.00 after
          the  attainment  of age seventy (70) but before the  attainment of age
          eighty (80),  $264,669.00 after the attainment of age eighty (80), but
          in no event shall the benefit exceed one hundred percent (100%) of the
          net-at-risk  insurance  portion  of  the  proceeds.   The  net-at-risk
          insurance  portion  is the total  proceeds  less the cash value of the
          policy.

     B.   Provided  the policy  (policies)  specified  above are in force at the
          time of the Insured's death, should the Insured not be employed by the
          Bank at the time of his or her death, the Insured's  beneficiary(ies),
          designated in accordance  with Paragraph III, shall be entitled to the
          greater of $100,000.00 or the "Death  Benefit:  After  Termination" as
          specified  in  Schedule  "A"  of  the  Executive  Salary  Continuation
          Agreement as of the date the Insured  terminated  employment  with the
          Bank.  However,  should the Insured be not employed by the Bank at the
          time of his or her death because of "Termination for Cause" as defined
          in Paragraph IX (A) of this Agreement, the Insured's beneficiary(ies),
          designated  in accordance  with  Paragraph  III,  shall be entitled to
          $25,000.

     C.   The Bank shall be entitled to the remainder of such proceeds.

     D.   The Bank and the Insured (or  assignees)  shall share in any  interest
          due on the death proceeds on a pro rata basis as the proceeds due each
          respectively bears to the total proceeds, excluding any such interest.

     E.   In the event that either the Policy is  terminated  or the proceeds of
          the Policy are insufficient to provide the benefit  specified  herein,
          other than as a result of any  intentional  act of the  Insured  which
          results in the  termination of the Policy,  then the Bank shall pay to
          the Insured's beneficiary(ies) an amount which, when combined with the
          proceeds of the Policy actually  received,  will provide a total after
          tax  death   benefit   equal  to  the  benefit   level   specified  in
          Subparagraphs VI (A) or (B).


VII. DIVISION OF THE CASH SURRENDER VALUE OF THE POLICY

     The Bank shall at all times be entitled to an amount  equal to the policy's
     cash value, as that term is defined in the policy contract, less any policy
     loans and unpaid interest or cash  withdrawals  previously  incurred by the
     Bank  and any  applicable  surrender  charges.  Such  cash  value  shall be
     determined as of the date of surrender or death as the case may be.


VIII. RIGHTS OF PARTIES WHERE POLICY ENDOWMENT OR ANNUITY ELECTION EXISTS

     In the event the policy  involves  an  endowment  or annuity  element,  the
     Bank's right and interest in any endowment proceeds or annuity benefits, on
     expiration  of  the  deferment  period,   shall  be  determined  under  the
     provisions of this Agreement by regarding  such  endowment  proceeds or the
     commuted  value of such annuity  benefits as the policy's cash value.  Such
     endowment proceeds or annuity benefits shall be considered to be like death
     proceeds for the purposes of division under this Agreement.


IX.  TERMINATION FOR CAUSE

     "Termination for Cause" shall have the definition provided in the Insured's
     Employment  Agreement,  as amended from time to time, with the Bank. If the
     Insured has no Employment Agreement with the Bank,  "Termination for Cause"
     shall include  termination  because of the Insured's  personal  dishonesty,
     incompetence,  willful  misconduct,  breach  of  fiduciary  duty  involving
     personal  profit,  intentional  failure to perform stated  duties,  willful
     violation of any law, rule, or regulation (other than traffic violations or
     similar  offenses) or final  cease-and-desist  order.  For purposes of this
     Section,  no act,  or the  failure  to act,  on  Insured's  part  shall  be
     "willful" unless done, or omitted to be done, not in good faith and without
     reasonable  belief that the action or omission was in the best  interest of
     the Bank or its affiliates.  Notwithstanding  the foregoing,  Insured shall
     not be deemed to have been  terminated  for Cause  unless  and until  there
     shall  have  been  delivered  to the  Insured a copy of a  resolution  duly
     adopted  by the  affirmative  vote of not less  than  three-fourths  of the
     members  of the Board at a meeting  of the Board  called  and held for that
     purpose (after  reasonable  notice to Insured and an opportunity,  together
     with counsel, to be heard before the Board), finding that in the good faith
     opinion of the Board, Insured was guilty of conduct justifying  termination
     for Cause and specifying the reasons thereof.


X.   TERMINATION OF AGREEMENT.

     This Agreement shall terminate upon the occurrence of surrender,  lapse, or
     other  termination  of the Policy by the Bank, and subject to the Insured's
     benefits provided by VI (E) above and the option as set forth hereinbelow

     Upon such termination of this Agreement but prior to the termination of the
     policy by the Bank, the Insured (or assignee) shall have a fifteen (15) day
     option to receive  from the Bank an  absolute  assignment  of the policy in
     consideration of a cash payment to the Bank, whereupon this Agreement shall
     terminate.  Such cash payment referred to hereinabove  shall be the greater
     of:

     i.   The  Bank's  share of the cash value of the policy on the date of such
          assignment, as defined in this Agreement; or

     ii.  The  amount of the  premiums  that have been paid by the Bank prior to
          the date of such assignment.

     If, within said fifteen (15) day period, the Insured fails to exercise said
     option, fails to procure the entire aforestated cash payment, or dies, then
     the option shall terminate and the Insured (or assignee) agrees that all of
     the Insured's rights,  interest and claims in the policy shall terminate as
     of the date of the termination of this Agreement.

     The  Insured   expressly   agrees  that  this  Agreement  shall  constitute
     sufficient written notice to the Insured of the Insured's option to receive
     an absolute assignment of the policy as set forth herein.

     Except as provided above,  this Agreement shall terminate upon distribution
     of the death benefit proceeds in accordance with Paragraph VI above.


XI.  INSURED'S OR ASSIGNEE'S ASSIGNMENT RIGHTS

     The Insured may not, without the written consent of the Bank, assign to any
     individual,  trust or other  organization,  any right, title or interest in
     the subject  policy nor any rights,  options,  privileges or duties created
     under this Agreement.


XII. AGREEMENT BINDING UPON THE PARTIES

     This  Agreement  shall  bind  the  Insured  and  the  Bank,   their  heirs,
     successors, personal representatives and assigns.


XIII. ADMINISTRATIVE AND CLAIMS PROVISIONS

     The  following  provisions  are part of this  Agreement and are intended to
     meet the  requirements  of the Employee  Retirement  Income Security Act of
     1974 ("ERISA"):

     A.   Named Fiduciary and Plan Administrator.

          The "Named Fiduciary and Plan Administrator" of this Joint Beneficiary
          Designation  Agreement shall be Klamath First Federal Savings and Loan
          Association   until  its  resignation  or  removal  by  the  Board  of
          Directors.  As Named Fiduciary and Plan Administrator,  the Bank shall
          be responsible for the management, control, and administration of this
          Joint Beneficiary Plan as established  herein. The Named Fiduciary may
          delegate to others  certain  aspects of the  management  and operation
          responsibilities of the Plan, including the employment of advisors and
          the delegation of any ministerial duties to qualified individuals.



     B.   Funding Policy.

          Subject to the Bank's  absolute  right to surrender  or terminate  the
          policy at any time and for any  reason,  the  funding  policy for this
          Joint  Beneficiary  Plan shall be to maintain  the  subject  policy in
          force by paying, when due, all premiums required.

     C.   Basis of Payment of Benefits.

          Direct  payment by the  Insurer  is the basis of  payment of  benefits
          under this  Agreement,  with those benefits in turn being based on the
          payment of premiums as provided in this Agreement.

     D.   Claim Procedures.

          Claim  forms or claim  information  as to the  subject  policy  can be
          obtained by contacting Benmark,  Inc.  (800-544-6079).  When the Named
          Fiduciary  has a claim  which  may be  covered  under  the  provisions
          described  in the  insurance  policy,  they should  contact the office
          named above, and they will either complete a claim form and forward it
          to an  authorized  representative  of the  Insurer or advise the named
          Fiduciary what further  requirements  are necessary.  The Insurer will
          evaluate and make a decision as to payment. If the claim is payable, a
          benefit  check  will be  issued in  accordance  with the terms of this
          Agreement.

          In the  event  that a claim is not  eligible  under  the  policy,  the
          Insurer will notify the Named  Fiduciary of the denial pursuant to the
          requirements  under the terms of the policy. If the Named Fiduciary is
          dissatisfied  with the denial of the claim and wishes to contest  such
          claim denial, they should contact the office named above and they will
          assist in making an  inquiry to the  Insurer.  All  objections  to the
          Insurer's  actions  should be in writing and  submitted  to the office
          named above for transmittal to the Insurer.


XIV. GENDER

     Whenever  in this  Agreement  words  are used in the  masculine  or  neuter
     gender,  they shall be read and construed as in the masculine,  feminine or
     neuter gender, whenever they should so apply.





XV.  INSURANCE COMPANY NOT A PARTY TO THIS AGREEMENT

     The Insurer shall not be deemed a party to this Agreement, but will respect
     the rights of the parties as herein  developed  upon  receiving an executed
     copy of this Agreement. Payment or other performance in accordance with the
     policy  provisions  shall  fully  discharge  the  Insurer  from any and all
     liability.


XVI. CHANGE OF CONTROL

     For the purpose of this Agreement, a "Change in Control" of the Bank or its
     Holding Company,  Klamath First Bancorp, Inc. ("KFBI"),  shall be deemed to
     occur if and when (a) an offeror  other than KFBI  purchases  shares of the
     common stock of the KFBI or the Bank pursuant to a tender or exchange offer
     for such shares, (b) any person (as such term is used in Sections 13(d) and
     14(d)(2)  of  the  Securities  Exchange  Act of  1934)  is or  becomes  the
     beneficial owner, directly or indirectly, of securities of KFBI or the Bank
     representing  25% or more of the  combined  voting  power  of  KFBI's  then
     outstanding  securities,  (c) the  membership  of the board of directors of
     KFBI or the Bank changes as the result of a contested  election,  such that
     individuals  who were directors at the beginning of any  twenty-four  month
     period  (whether  commencing  before  or after the  effective  date of this
     Agreement)  do not  constitute  a majority  of the Board at the end of such
     period,  or  (d)  shareholders  of  KFBI  or the  Bank  approve  a  merger,
     consolidation, sale or disposition of all or substantially all of KFBI's or
     the Bank's assets, or a plan of partial or complete liquidation.


XVII. AMENDMENT OR REVOCATION, AND EXCHANGE OF POLICY

     Subject to the Bank's  absolute  right to surrender or terminate the policy
     at any time and for any  reason,  it is agreed by and  between  the parties
     hereto  that,  during the lifetime of the Insured,  this  Agreement  may be
     amended or revoked at any time or times, in whole or in part, by the mutual
     written  consent  of the  Insured  and the  Bank.  The Bank  may,  however,
     unilaterally  and  without the consent of the  Insured,  exchange  any life
     insurance  policy(ies) that are the subject matter of this Agreement,  with
     or  without  replacing  said  policy(ies)  and,  in the  event of a same or
     similar exchange, the Insured expressly agrees to the same.


XVIII. SEVERABILITY AND INTERPRETATION

     If a provision of this  Agreement  is held to be invalid or  unenforceable,
     the remaining  provisions  shall  nonetheless be  enforceable  according to
     their  terms.  Further,  in the  event  that  any  provision  is held to be
     overbroad as written such  provision  shall be deemed amended to narrow its
     application  to the  extent  necessary  to make the  provision  enforceable
     according to law and enforced as amended.


XIX. APPLICABLE LAW

     The  laws  of  the  State  of  Oregon   shall   govern  the   validity  and
     interpretation of this Agreement.
<PAGE>


XX.  EFFECT OF THE LIFE INSURANCE POLICY'S CONTESTABILITY CLAUSES

     The parties  herein  understand  and agree that the payment of the benefits
     provided  herein are  subject to the Life  Insurance  Policy's  suicide and
     contestability clauses and other such clauses, and if such clauses preclude
     the Insurer from paying the full death  proceeds,  then, in such event,  no
     death  benefits  of  whatever  nature  shall be  payable to  Insured's  (or
     Insured's   Assignee's)   beneficiary(s)   under  this  Joint   Beneficiary
     Designation Agreement.


Executed at Klamath Falls, Oregon this 21st day of May, 2003.


                               KLAMATH FIRST FEDERAL
                               SAVINGS AND LOAN ASSOCIATION
                               Klamath Falls, Oregon



/s/ Nina G. Drake               By:  /s/ Kermit K. Houser
Witness                         Kermit K. Houser, President and CEO


/s/ Kathryn Rutledge            By:  /s/ Walter F. Dodrill
Witness                         Walter F. Dodrill


<PAGE>


                          BENEFICIARY DESIGNATION FORM
                 FOR THE JOINT BENEFICIARY DESIGNATION AGREEMENT

I.   PRIMARY   DESIGNATION
     (You  may  refer  to  the  beneficiary   designation information
        prior to completion of this form.)

A.   Person(s) as a Primary  Designation:  ____________________________________
     (Please  indicate the  percentage for each beneficiary.)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)


B.   Estate as a Primary Designation:

My Primary Beneficiary is The Estate of ___________________________ as set forth
in the last will and testament dated the _____ day of ________________, ________
and any codicils thereto.

C.   Trust as a Primary Designation:

Name of the Trust:  ____________________________________________________________
Execution Date of the Trust: _____ / _____ / _________
Name of the Trustee: __________________________________________________________
Beneficiary(ies) of the Trust (please indicate the percentage for each
beneficiary):
___________________________________________________________________________
___________________________________________________________________________
Is this an Irrevocable Life Insurance Trust?  ________ Yes     ________ No
(If yes and this designation is for a Split Dollar agreement, an Assignment of
Rights form should be completed.)


<PAGE>


II.  SECONDARY (CONTINGENT) DESIGNATION

A.   Person(s) as a Secondary  (Contingent)  Designation:
     (Please  indicate the percentage for each beneficiary.)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)


B.   Estate as a Secondary (Contingent) Designation:

My Secondary Beneficiary is The Estate of ______________________________________
as set forth in my last will and testament dated the ____ day of ________, _____
and any codicils thereto.

C.   Trust as a Secondary (Contingent) Designation:

Name of the Trust:  ____________________________________________________________
Execution Date of the Trust: _____ / _____ / _________
Name of the Trustee: __________________________________________________________
Beneficiary(ies) of the Trust (please indicate the percentage for each
beneficiary):
___________________________________________________________________________
___________________________________________________________________________

All sums  payable  under the Joint  Beneficiary  Agreement by reason of my death
shall be paid to the Primary Beneficiary(ies),  if he or she survives me, and if
no Primary Beneficiary(ies) shall survive me, then to the Secondary (Contingent)
Beneficiary(ies).  This  beneficiary  designation is valid until the participant
notifies the bank in writing.



__________________________                     Date ____________________________
Walter F. Dodrill
<PAGE>
                                                                 Exhibit 10(h).5
                           JOINT BENEFICIARY AGREEMENT

Insurer(s):               1 - Massachusetts Mutual Life Insurance Company
                          2 - New York Life Insurance Company
                          3 - Northwestern Mutual Life Insurance Company
                          4 - Southland Life Insurance Company

Policy Number(s):         1 - 0052945
                          2 - 56603376
                          3 - 16359716
                          4 - 0600098080

Bank:                     Klamath First Federal Savings and Loan Association

Insured:                  Nina G. Drake

Relationship to Bank:     Executive

Effective Date:           January 1, 2003

The  respective   rights  and  duties  of  the  Bank  and  the  Insured  in  the
above-referenced policy shall be pursuant to the terms set forth below:


I.   DEFINITIONS

     Refer  to the  policy  contract  for the  definition  of any  terms in this
     Agreement  that is not defined  herein.  If the definition of a term in the
     policy is  inconsistent  with the  definition of a term in this  Agreement,
     then the  definition  of the  term as set  forth  in this  Agreement  shall
     supersede  and  replace  the  definition  of the  term as set  forth in the
     policy.


II.  POLICY TITLE AND OWNERSHIP

     Title and ownership shall reside in the Bank for its use and for the use of
     the Insured all in accordance with this  Agreement.  The Bank alone may, to
     the extent of its interest, exercise the right to borrow or withdraw on the
     policy cash values.  Where the Bank and the Insured (or assignee,  with the
     consent of the  Insured)  mutually  agree to exercise the right to increase
     the coverage under the subject Joint Beneficiary  Designation policy, then,
     in such  event,  the  rights,  duties and  benefits  of the parties to such
     increased  coverage  shall  continue  to be  subject  to the  terms of this
     Agreement.


III. BENEFICIARY DESIGNATION RIGHTS

     The Insured  (or  assignee)  shall have the right and power to  designate a
     beneficiary or beneficiaries to receive the Insured's share of the proceeds
     payable  upon the death of the  Insured,  and to elect and change a payment
     option for such beneficiary,  subject to any right or interest the Bank may
     have in such proceeds, as provided in this Agreement.


IV.  PREMIUM PAYMENT METHOD

     Subject to the Bank's  absolute  right to surrender or terminate the policy
     at any time and for any reason,  the Bank shall pay an amount  equal to the
     planned premiums and any other premium payments that might become necessary
     to keep the policy in force.


V.   TAXABLE BENEFIT

     Annually the Insured will  receive a taxable  benefit  equal to the assumed
     cost of insurance as required by the Internal Revenue Service. The Bank (or
     its administrator)  will report to the Insured the amount of imputed income
     each year on Form W-2 or its equivalent.


VI.  DIVISION OF DEATH PROCEEDS

     Subject to Paragraphs VII and IX herein, the division of the death proceeds
     of the policy is as follows:

     A.   Provided  the policy  (policies)  specified  above are in force at the
          time of the  Insured's  death,  should the  Insured be employed by the
          Bank, retired from the Bank after attaining age sixty-two (62) without
          an earlier  termination of service from the Bank, or been subject to a
          termination  pursuant  to a  Change  in  Control  as  defined  in  the
          Insured's  Executive  Salary  Continuation  Agreement  and Section XVI
          below, at the time of Insured's death, the Insured's beneficiary(ies),
          designated in accordance  with  Paragraph III, shall be entitled to an
          amount equal to $763,570.00 until age seventy (70),  $534,499.00 after
          the  attainment  of age seventy (70) but before the  attainment of age
          eighty (80),  $229,071.00 after the attainment of age eighty (80), but
          in no event shall the benefit exceed one hundred percent (100%) of the
          net-at-risk  insurance  portion  of  the  proceeds.   The  net-at-risk
          insurance  portion  is the total  proceeds  less the cash value of the
          policy.

     B.   Provided  the policy  (policies)  specified  above are in force at the
          time of the Insured's death, should the Insured not be employed by the
          Bank at the time of his or her death, the Insured's  beneficiary(ies),
          designated in accordance  with Paragraph III, shall be entitled to the
          greater of $100,000.00 or the "Death  Benefit:  After  Termination" as
          specified  in  Schedule  "A"  of  the  Executive  Salary  Continuation
          Agreement as of the date the Insured  terminated  employment  with the
          Bank.  However,  should the Insured be not employed by the Bank at the
          time of his or her death because of "Termination for Cause" as defined
          in Paragraph IX (A) of this Agreement, the Insured's beneficiary(ies),
          designated  in accordance  with  Paragraph  III,  shall be entitled to
          $25,000.

     C.   The Bank shall be entitled to the remainder of such proceeds.

     D.   The Bank and the Insured (or  assignees)  shall share in any  interest
          due on the death proceeds on a pro rata basis as the proceeds due each
          respectively bears to the total proceeds, excluding any such interest.

     E.   In the event that either the Policy is  terminated  or the proceeds of
          the Policy are insufficient to provide the benefit  specified  herein,
          other than as a result of any  intentional  act of the  Insured  which
          results in the  termination of the Policy,  then the Bank shall pay to
          the Insured's beneficiary(ies) an amount which, when combined with the
          proceeds of the Policy actually  received,  will provide a total after
          tax  death   benefit   equal  to  the  benefit   level   specified  in
          Subparagraphs VI (A) or (B).


VII. DIVISION OF THE CASH SURRENDER VALUE OF THE POLICY

     The Bank shall at all times be entitled to an amount  equal to the policy's
     cash value, as that term is defined in the policy contract, less any policy
     loans and unpaid interest or cash  withdrawals  previously  incurred by the
     Bank  and any  applicable  surrender  charges.  Such  cash  value  shall be
     determined as of the date of surrender or death as the case may be.


VIII. RIGHTS OF PARTIES WHERE POLICY ENDOWMENT OR ANNUITY ELECTION EXISTS

     In the event the policy  involves  an  endowment  or annuity  element,  the
     Bank's right and interest in any endowment proceeds or annuity benefits, on
     expiration  of  the  deferment  period,   shall  be  determined  under  the
     provisions of this Agreement by regarding  such  endowment  proceeds or the
     commuted  value of such annuity  benefits as the policy's cash value.  Such
     endowment proceeds or annuity benefits shall be considered to be like death
     proceeds for the purposes of division under this Agreement.


IX.  TERMINATION FOR CAUSE

     "Termination for Cause" shall have the definition provided in the Insured's
     Employment  Agreement,  as amended from time to time, with the Bank. If the
     Insured has no Employment Agreement with the Bank,  "Termination for Cause"
     shall include  termination  because of the Insured's  personal  dishonesty,
     incompetence,  willful  misconduct,  breach  of  fiduciary  duty  involving
     personal  profit,  intentional  failure to perform stated  duties,  willful
     violation of any law, rule, or regulation (other than traffic violations or
     similar  offenses) or final  cease-and-desist  order.  For purposes of this
     Section,  no act,  or the  failure  to act,  on  Insured's  part  shall  be
     "willful" unless done, or omitted to be done, not in good faith and without
     reasonable  belief that the action or omission was in the best  interest of
     the Bank or its affiliates.  Notwithstanding  the foregoing,  Insured shall
     not be deemed to have been  terminated  for Cause  unless  and until  there
     shall  have  been  delivered  to the  Insured a copy of a  resolution  duly
     adopted  by the  affirmative  vote of not less  than  three-fourths  of the
     members  of the Board at a meeting  of the Board  called  and held for that
     purpose (after  reasonable  notice to Insured and an opportunity,  together
     with counsel, to be heard before the Board), finding that in the good faith
     opinion of the Board, Insured was guilty of conduct justifying  termination
     for Cause and specifying the reasons thereof.


X.   TERMINATION OF AGREEMENT.

     This Agreement shall terminate upon the occurrence of surrender,  lapse, or
     other  termination  of the Policy by the Bank, and subject to the Insured's
     benefits provided by VI (E) above and the option as set forth hereinbelow

     Upon such termination of this Agreement but prior to the termination of the
     policy by the Bank, the Insured (or assignee) shall have a fifteen (15) day
     option to receive  from the Bank an  absolute  assignment  of the policy in
     consideration of a cash payment to the Bank, whereupon this Agreement shall
     terminate.  Such cash payment referred to hereinabove  shall be the greater
     of:

     i.   The  Bank's  share of the cash value of the policy on the date of such
          assignment, as defined in this Agreement; or

     ii.  The  amount of the  premiums  that have been paid by the Bank prior to
          the date of such assignment.

     If, within said fifteen (15) day period, the Insured fails to exercise said
     option, fails to procure the entire aforestated cash payment, or dies, then
     the option shall terminate and the Insured (or assignee) agrees that all of
     the Insured's rights,  interest and claims in the policy shall terminate as
     of the date of the termination of this Agreement.

     The  Insured   expressly   agrees  that  this  Agreement  shall  constitute
     sufficient written notice to the Insured of the Insured's option to receive
     an absolute assignment of the policy as set forth herein.

     Except as provided above,  this Agreement shall terminate upon distribution
     of the death benefit proceeds in accordance with Paragraph VI above.


XI.  INSURED'S OR ASSIGNEE'S ASSIGNMENT RIGHTS

     The Insured may not, without the written consent of the Bank, assign to any
     individual,  trust or other  organization,  any right, title or interest in
     the subject  policy nor any rights,  options,  privileges or duties created
     under this Agreement.


XII. AGREEMENT BINDING UPON THE PARTIES

     This  Agreement  shall  bind  the  Insured  and  the  Bank,   their  heirs,
     successors, personal representatives and assigns.


XIII. ADMINISTRATIVE AND CLAIMS PROVISIONS

     The  following  provisions  are part of this  Agreement and are intended to
     meet the  requirements  of the Employee  Retirement  Income Security Act of
     1974 ("ERISA"):

     A.   Named Fiduciary and Plan Administrator.

          The "Named Fiduciary and Plan Administrator" of this Joint Beneficiary
          Designation  Agreement shall be Klamath First Federal Savings and Loan
          Association   until  its  resignation  or  removal  by  the  Board  of
          Directors.  As Named Fiduciary and Plan Administrator,  the Bank shall
          be responsible for the management, control, and administration of this
          Joint Beneficiary Plan as established  herein. The Named Fiduciary may
          delegate to others  certain  aspects of the  management  and operation
          responsibilities of the Plan, including the employment of advisors and
          the delegation of any ministerial duties to qualified individuals.



     B.   Funding Policy.

          Subject to the Bank's  absolute  right to surrender  or terminate  the
          policy at any time and for any  reason,  the  funding  policy for this
          Joint  Beneficiary  Plan shall be to maintain  the  subject  policy in
          force by paying, when due, all premiums required.

     C.   Basis of Payment of Benefits.

          Direct  payment by the  Insurer  is the basis of  payment of  benefits
          under this  Agreement,  with those benefits in turn being based on the
          payment of premiums as provided in this Agreement.

     D.   Claim Procedures.

          Claim  forms or claim  information  as to the  subject  policy  can be
          obtained by contacting Benmark,  Inc.  (800-544-6079).  When the Named
          Fiduciary  has a claim  which  may be  covered  under  the  provisions
          described  in the  insurance  policy,  they should  contact the office
          named above, and they will either complete a claim form and forward it
          to an  authorized  representative  of the  Insurer or advise the named
          Fiduciary what further  requirements  are necessary.  The Insurer will
          evaluate and make a decision as to payment. If the claim is payable, a
          benefit  check  will be  issued in  accordance  with the terms of this
          Agreement.

          In the  event  that a claim is not  eligible  under  the  policy,  the
          Insurer will notify the Named  Fiduciary of the denial pursuant to the
          requirements  under the terms of the policy. If the Named Fiduciary is
          dissatisfied  with the denial of the claim and wishes to contest  such
          claim denial, they should contact the office named above and they will
          assist in making an  inquiry to the  Insurer.  All  objections  to the
          Insurer's  actions  should be in writing and  submitted  to the office
          named above for transmittal to the Insurer.


XIV. GENDER

     Whenever  in this  Agreement  words  are used in the  masculine  or  neuter
     gender,  they shall be read and construed as in the masculine,  feminine or
     neuter gender, whenever they should so apply.





XV.  INSURANCE COMPANY NOT A PARTY TO THIS AGREEMENT

     The Insurer shall not be deemed a party to this Agreement, but will respect
     the rights of the parties as herein  developed  upon  receiving an executed
     copy of this Agreement. Payment or other performance in accordance with the
     policy  provisions  shall  fully  discharge  the  Insurer  from any and all
     liability.


XVI. CHANGE OF CONTROL

     For the purpose of this Agreement, a "Change in Control" of the Bank or its
     Holding Company,  Klamath First Bancorp, Inc. ("KFBI"),  shall be deemed to
     occur if and when (a) an offeror  other than KFBI  purchases  shares of the
     common stock of the KFBI or the Bank pursuant to a tender or exchange offer
     for such shares, (b) any person (as such term is used in Sections 13(d) and
     14(d)(2)  of  the  Securities  Exchange  Act of  1934)  is or  becomes  the
     beneficial owner, directly or indirectly, of securities of KFBI or the Bank
     representing  25% or more of the  combined  voting  power  of  KFBI's  then
     outstanding  securities,  (c) the  membership  of the board of directors of
     KFBI or the Bank changes as the result of a contested  election,  such that
     individuals  who were directors at the beginning of any  twenty-four  month
     period  (whether  commencing  before  or after the  effective  date of this
     Agreement)  do not  constitute  a majority  of the Board at the end of such
     period,  or  (d)  shareholders  of  KFBI  or the  Bank  approve  a  merger,
     consolidation, sale or disposition of all or substantially all of KFBI's or
     the Bank's assets, or a plan of partial or complete liquidation.


XVII. AMENDMENT OR REVOCATION, AND EXCHANGE OF POLICY

     Subject to the Bank's  absolute  right to surrender or terminate the policy
     at any time and for any  reason,  it is agreed by and  between  the parties
     hereto  that,  during the lifetime of the Insured,  this  Agreement  may be
     amended or revoked at any time or times, in whole or in part, by the mutual
     written  consent  of the  Insured  and the  Bank.  The Bank  may,  however,
     unilaterally  and  without the consent of the  Insured,  exchange  any life
     insurance  policy(ies) that are the subject matter of this Agreement,  with
     or  without  replacing  said  policy(ies)  and,  in the  event of a same or
     similar exchange, the Insured expressly agrees to the same.


XVIII. SEVERABILITY AND INTERPRETATION

     If a provision of this  Agreement  is held to be invalid or  unenforceable,
     the remaining  provisions  shall  nonetheless be  enforceable  according to
     their  terms.  Further,  in the  event  that  any  provision  is held to be
     overbroad as written such  provision  shall be deemed amended to narrow its
     application  to the  extent  necessary  to make the  provision  enforceable
     according to law and enforced as amended.


XIX. APPLICABLE LAW

     The  laws  of  the  State  of  Oregon   shall   govern  the   validity  and
     interpretation of this Agreement.
<PAGE>


XX.  EFFECT OF THE LIFE INSURANCE POLICY'S CONTESTABILITY CLAUSES

     The parties  herein  understand  and agree that the payment of the benefits
     provided  herein are  subject to the Life  Insurance  Policy's  suicide and
     contestability clauses and other such clauses, and if such clauses preclude
     the Insurer from paying the full death  proceeds,  then, in such event,  no
     death  benefits  of  whatever  nature  shall be  payable to  Insured's  (or
     Insured's   Assignee's)   beneficiary(s)   under  this  Joint   Beneficiary
     Designation Agreement.


Executed at Klamath Falls, Oregon this 14th day of May, 2003.


                               KLAMATH FIRST FEDERAL
                               SAVINGS AND LOAN ASSOCIATION
                               Klamath Falls, Oregon



/s/ Kelly A. Male               By:  /s/ Kermit K. Houser
Witness                         Kermit K. Houser, President and CEO


/s/ Kathryn Rutledge            By:  /s/ Nina G. Drake
Witness                         Nina G. Drake


<PAGE>


                          BENEFICIARY DESIGNATION FORM
                 FOR THE JOINT BENEFICIARY DESIGNATION AGREEMENT

I.   PRIMARY   DESIGNATION
     (You  may  refer  to  the  beneficiary   designation information
        prior to completion of this form.)

A.   Person(s) as a Primary  Designation:  ____________________________________
     (Please  indicate the  percentage for each beneficiary.)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)


B.   Estate as a Primary Designation:

My Primary Beneficiary is The Estate of ___________________________ as set forth
in the last will and testament dated the _____ day of ________________, ________
and any codicils thereto.

C.   Trust as a Primary Designation:

Name of the Trust:  ____________________________________________________________
Execution Date of the Trust: _____ / _____ / _________
Name of the Trustee: __________________________________________________________
Beneficiary(ies) of the Trust (please indicate the percentage for each
beneficiary):
___________________________________________________________________________
___________________________________________________________________________
Is this an Irrevocable Life Insurance Trust?  ________ Yes     ________ No
(If yes and this designation is for a Split Dollar agreement, an Assignment of
Rights form should be completed.)


<PAGE>


II.  SECONDARY (CONTINGENT) DESIGNATION

A.   Person(s) as a Secondary  (Contingent)  Designation:
     (Please  indicate the percentage for each beneficiary.)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)


B.   Estate as a Secondary (Contingent) Designation:

My Secondary Beneficiary is The Estate of ______________________________________
as set forth in my last will and testament dated the ____ day of ________, _____
and any codicils thereto.

C.   Trust as a Secondary (Contingent) Designation:

Name of the Trust:  ____________________________________________________________
Execution Date of the Trust: _____ / _____ / _________
Name of the Trustee: __________________________________________________________
Beneficiary(ies) of the Trust (please indicate the percentage for each
beneficiary):
___________________________________________________________________________
___________________________________________________________________________

All sums  payable  under the Joint  Beneficiary  Agreement by reason of my death
shall be paid to the Primary Beneficiary(ies),  if he or she survives me, and if
no Primary Beneficiary(ies) shall survive me, then to the Secondary (Contingent)
Beneficiary(ies).  This  beneficiary  designation is valid until the participant
notifies the bank in writing.



__________________________                     Date ____________________________
Nina G. Drake
<PAGE>
                                                                 Exhibit 10(i).5
                           JOINT BENEFICIARY AGREEMENT

Insurer(s):               1 - Massachusetts Mutual Life Insurance Company
                          2 - New York Life Insurance Company
                          3 - Northwestern Mutual Life Insurance Company
                          4 - Southland Life Insurance Company

Policy Number(s):         1 - 0052957
                          2 - 56603388
                          3 - 16355916
                          4 - 0600098092

Bank:                     Klamath First Federal Savings and Loan Association

Insured:                  Jeffery D. Schlenker

Relationship to Bank:     Executive

Effective Date:           January 1, 2003

The  respective   rights  and  duties  of  the  Bank  and  the  Insured  in  the
above-referenced policy shall be pursuant to the terms set forth below:


I.   DEFINITIONS

     Refer  to the  policy  contract  for the  definition  of any  terms in this
     Agreement  that is not defined  herein.  If the definition of a term in the
     policy is  inconsistent  with the  definition of a term in this  Agreement,
     then the  definition  of the  term as set  forth  in this  Agreement  shall
     supersede  and  replace  the  definition  of the  term as set  forth in the
     policy.


II.  POLICY TITLE AND OWNERSHIP

     Title and ownership shall reside in the Bank for its use and for the use of
     the Insured all in accordance with this  Agreement.  The Bank alone may, to
     the extent of its interest, exercise the right to borrow or withdraw on the
     policy cash values.  Where the Bank and the Insured (or assignee,  with the
     consent of the  Insured)  mutually  agree to exercise the right to increase
     the coverage under the subject Joint Beneficiary  Designation policy, then,
     in such  event,  the  rights,  duties and  benefits  of the parties to such
     increased  coverage  shall  continue  to be  subject  to the  terms of this
     Agreement.


III. BENEFICIARY DESIGNATION RIGHTS

     The Insured  (or  assignee)  shall have the right and power to  designate a
     beneficiary or beneficiaries to receive the Insured's share of the proceeds
     payable  upon the death of the  Insured,  and to elect and change a payment
     option for such beneficiary,  subject to any right or interest the Bank may
     have in such proceeds, as provided in this Agreement.


IV.  PREMIUM PAYMENT METHOD

     Subject to the Bank's  absolute  right to surrender or terminate the policy
     at any time and for any reason,  the Bank shall pay an amount  equal to the
     planned premiums and any other premium payments that might become necessary
     to keep the policy in force.


V.   TAXABLE BENEFIT

     Annually the Insured will  receive a taxable  benefit  equal to the assumed
     cost of insurance as required by the Internal Revenue Service. The Bank (or
     its administrator)  will report to the Insured the amount of imputed income
     each year on Form W-2 or its equivalent.


VI.  DIVISION OF DEATH PROCEEDS

     Subject to Paragraphs VII and IX herein, the division of the death proceeds
     of the policy is as follows:

     A.   Provided  the policy  (policies)  specified  above are in force at the
          time of the  Insured's  death,  should the  Insured be employed by the
          Bank, retired from the Bank after attaining age sixty-two (62) without
          an earlier  termination of service from the Bank, or been subject to a
          termination  pursuant  to a  Change  in  Control  as  defined  in  the
          Insured's  Executive  Salary  Continuation  Agreement  and Section XVI
          below, at the time of Insured's death, the Insured's beneficiary(ies),
          designated in accordance  with  Paragraph III, shall be entitled to an
          amount equal to  $2,037,770.00  until age seventy (70),  $1,426,439.00
          after the  attainment of age seventy (70) but before the attainment of
          age eighty (80),  $611,331.00 after the attainment of age eighty (80),
          but in no event shall the benefit exceed one hundred percent (100%) of
          the  net-at-risk  insurance  portion of the proceeds.  The net-at-risk
          insurance  portion  is the total  proceeds  less the cash value of the
          policy.

     B.   Provided  the policy  (policies)  specified  above are in force at the
          time of the Insured's death, should the Insured not be employed by the
          Bank at the time of his or her death, the Insured's  beneficiary(ies),
          designated in accordance  with Paragraph III, shall be entitled to the
          greater of $100,000.00 or the "Death  Benefit:  After  Termination" as
          specified  in  Schedule  "A"  of  the  Executive  Salary  Continuation
          Agreement as of the date the Insured  terminated  employment  with the
          Bank.  However,  should the Insured be not employed by the Bank at the
          time of his or her death because of "Termination for Cause" as defined
          in Paragraph IX (A) of this Agreement, the Insured's beneficiary(ies),
          designated  in accordance  with  Paragraph  III,  shall be entitled to
          $25,000.

     C.   The Bank shall be entitled to the remainder of such proceeds.

     D.   The Bank and the Insured (or  assignees)  shall share in any  interest
          due on the death proceeds on a pro rata basis as the proceeds due each
          respectively bears to the total proceeds, excluding any such interest.

     E.   In the event that either the Policy is  terminated  or the proceeds of
          the Policy are insufficient to provide the benefit  specified  herein,
          other than as a result of any  intentional  act of the  Insured  which
          results in the  termination of the Policy,  then the Bank shall pay to
          the Insured's beneficiary(ies) an amount which, when combined with the
          proceeds of the Policy actually  received,  will provide a total after
          tax  death   benefit   equal  to  the  benefit   level   specified  in
          Subparagraphs VI (A) or (B).


VII. DIVISION OF THE CASH SURRENDER VALUE OF THE POLICY

     The Bank shall at all times be entitled to an amount  equal to the policy's
     cash value, as that term is defined in the policy contract, less any policy
     loans and unpaid interest or cash  withdrawals  previously  incurred by the
     Bank  and any  applicable  surrender  charges.  Such  cash  value  shall be
     determined as of the date of surrender or death as the case may be.


VIII. RIGHTS OF PARTIES WHERE POLICY ENDOWMENT OR ANNUITY ELECTION EXISTS

     In the event the policy  involves  an  endowment  or annuity  element,  the
     Bank's right and interest in any endowment proceeds or annuity benefits, on
     expiration  of  the  deferment  period,   shall  be  determined  under  the
     provisions of this Agreement by regarding  such  endowment  proceeds or the
     commuted  value of such annuity  benefits as the policy's cash value.  Such
     endowment proceeds or annuity benefits shall be considered to be like death
     proceeds for the purposes of division under this Agreement.


IX.  TERMINATION FOR CAUSE

     "Termination for Cause" shall have the definition provided in the Insured's
     Employment  Agreement,  as amended from time to time, with the Bank. If the
     Insured has no Employment Agreement with the Bank,  "Termination for Cause"
     shall include  termination  because of the Insured's  personal  dishonesty,
     incompetence,  willful  misconduct,  breach  of  fiduciary  duty  involving
     personal  profit,  intentional  failure to perform stated  duties,  willful
     violation of any law, rule, or regulation (other than traffic violations or
     similar  offenses) or final  cease-and-desist  order.  For purposes of this
     Section,  no act,  or the  failure  to act,  on  Insured's  part  shall  be
     "willful" unless done, or omitted to be done, not in good faith and without
     reasonable  belief that the action or omission was in the best  interest of
     the Bank or its affiliates.  Notwithstanding  the foregoing,  Insured shall
     not be deemed to have been  terminated  for Cause  unless  and until  there
     shall  have  been  delivered  to the  Insured a copy of a  resolution  duly
     adopted  by the  affirmative  vote of not less  than  three-fourths  of the
     members  of the Board at a meeting  of the Board  called  and held for that
     purpose (after  reasonable  notice to Insured and an opportunity,  together
     with counsel, to be heard before the Board), finding that in the good faith
     opinion of the Board, Insured was guilty of conduct justifying  termination
     for Cause and specifying the reasons thereof.


X.   TERMINATION OF AGREEMENT.

     This Agreement shall terminate upon the occurrence of surrender,  lapse, or
     other  termination  of the Policy by the Bank, and subject to the Insured's
     benefits provided by VI (E) above and the option as set forth hereinbelow

     Upon such termination of this Agreement but prior to the termination of the
     policy by the Bank, the Insured (or assignee) shall have a fifteen (15) day
     option to receive  from the Bank an  absolute  assignment  of the policy in
     consideration of a cash payment to the Bank, whereupon this Agreement shall
     terminate.  Such cash payment referred to hereinabove  shall be the greater
     of:

     i.   The  Bank's  share of the cash value of the policy on the date of such
          assignment, as defined in this Agreement; or

     ii.  The  amount of the  premiums  that have been paid by the Bank prior to
          the date of such assignment.

     If, within said fifteen (15) day period, the Insured fails to exercise said
     option, fails to procure the entire aforestated cash payment, or dies, then
     the option shall terminate and the Insured (or assignee) agrees that all of
     the Insured's rights,  interest and claims in the policy shall terminate as
     of the date of the termination of this Agreement.

     The  Insured   expressly   agrees  that  this  Agreement  shall  constitute
     sufficient written notice to the Insured of the Insured's option to receive
     an absolute assignment of the policy as set forth herein.

     Except as provided above,  this Agreement shall terminate upon distribution
     of the death benefit proceeds in accordance with Paragraph VI above.


XI.  INSURED'S OR ASSIGNEE'S ASSIGNMENT RIGHTS

     The Insured may not, without the written consent of the Bank, assign to any
     individual,  trust or other  organization,  any right, title or interest in
     the subject  policy nor any rights,  options,  privileges or duties created
     under this Agreement.


XII. AGREEMENT BINDING UPON THE PARTIES

     This  Agreement  shall  bind  the  Insured  and  the  Bank,   their  heirs,
     successors, personal representatives and assigns.


XIII. ADMINISTRATIVE AND CLAIMS PROVISIONS

     The  following  provisions  are part of this  Agreement and are intended to
     meet the  requirements  of the Employee  Retirement  Income Security Act of
     1974 ("ERISA"):

     A.   Named Fiduciary and Plan Administrator.

          The "Named Fiduciary and Plan Administrator" of this Joint Beneficiary
          Designation  Agreement shall be Klamath First Federal Savings and Loan
          Association   until  its  resignation  or  removal  by  the  Board  of
          Directors.  As Named Fiduciary and Plan Administrator,  the Bank shall
          be responsible for the management, control, and administration of this
          Joint Beneficiary Plan as established  herein. The Named Fiduciary may
          delegate to others  certain  aspects of the  management  and operation
          responsibilities of the Plan, including the employment of advisors and
          the delegation of any ministerial duties to qualified individuals.



     B.   Funding Policy.

          Subject to the Bank's  absolute  right to surrender  or terminate  the
          policy at any time and for any  reason,  the  funding  policy for this
          Joint  Beneficiary  Plan shall be to maintain  the  subject  policy in
          force by paying, when due, all premiums required.

     C.   Basis of Payment of Benefits.

          Direct  payment by the  Insurer  is the basis of  payment of  benefits
          under this  Agreement,  with those benefits in turn being based on the
          payment of premiums as provided in this Agreement.

     D.   Claim Procedures.

          Claim  forms or claim  information  as to the  subject  policy  can be
          obtained by contacting Benmark,  Inc.  (800-544-6079).  When the Named
          Fiduciary  has a claim  which  may be  covered  under  the  provisions
          described  in the  insurance  policy,  they should  contact the office
          named above, and they will either complete a claim form and forward it
          to an  authorized  representative  of the  Insurer or advise the named
          Fiduciary what further  requirements  are necessary.  The Insurer will
          evaluate and make a decision as to payment. If the claim is payable, a
          benefit  check  will be  issued in  accordance  with the terms of this
          Agreement.

          In the  event  that a claim is not  eligible  under  the  policy,  the
          Insurer will notify the Named  Fiduciary of the denial pursuant to the
          requirements  under the terms of the policy. If the Named Fiduciary is
          dissatisfied  with the denial of the claim and wishes to contest  such
          claim denial, they should contact the office named above and they will
          assist in making an  inquiry to the  Insurer.  All  objections  to the
          Insurer's  actions  should be in writing and  submitted  to the office
          named above for transmittal to the Insurer.


XIV. GENDER

     Whenever  in this  Agreement  words  are used in the  masculine  or  neuter
     gender,  they shall be read and construed as in the masculine,  feminine or
     neuter gender, whenever they should so apply.





XV.  INSURANCE COMPANY NOT A PARTY TO THIS AGREEMENT

     The Insurer shall not be deemed a party to this Agreement, but will respect
     the rights of the parties as herein  developed  upon  receiving an executed
     copy of this Agreement. Payment or other performance in accordance with the
     policy  provisions  shall  fully  discharge  the  Insurer  from any and all
     liability.


XVI. CHANGE OF CONTROL

     For the purpose of this Agreement, a "Change in Control" of the Bank or its
     Holding Company,  Klamath First Bancorp, Inc. ("KFBI"),  shall be deemed to
     occur if and when (a) an offeror  other than KFBI  purchases  shares of the
     common stock of the KFBI or the Bank pursuant to a tender or exchange offer
     for such shares, (b) any person (as such term is used in Sections 13(d) and
     14(d)(2)  of  the  Securities  Exchange  Act of  1934)  is or  becomes  the
     beneficial owner, directly or indirectly, of securities of KFBI or the Bank
     representing  25% or more of the  combined  voting  power  of  KFBI's  then
     outstanding  securities,  (c) the  membership  of the board of directors of
     KFBI or the Bank changes as the result of a contested  election,  such that
     individuals  who were directors at the beginning of any  twenty-four  month
     period  (whether  commencing  before  or after the  effective  date of this
     Agreement)  do not  constitute  a majority  of the Board at the end of such
     period,  or  (d)  shareholders  of  KFBI  or the  Bank  approve  a  merger,
     consolidation, sale or disposition of all or substantially all of KFBI's or
     the Bank's assets, or a plan of partial or complete liquidation.


XVII. AMENDMENT OR REVOCATION, AND EXCHANGE OF POLICY

     Subject to the Bank's  absolute  right to surrender or terminate the policy
     at any time and for any  reason,  it is agreed by and  between  the parties
     hereto  that,  during the lifetime of the Insured,  this  Agreement  may be
     amended or revoked at any time or times, in whole or in part, by the mutual
     written  consent  of the  Insured  and the  Bank.  The Bank  may,  however,
     unilaterally  and  without the consent of the  Insured,  exchange  any life
     insurance  policy(ies) that are the subject matter of this Agreement,  with
     or  without  replacing  said  policy(ies)  and,  in the  event of a same or
     similar exchange, the Insured expressly agrees to the same.


XVIII. SEVERABILITY AND INTERPRETATION

     If a provision of this  Agreement  is held to be invalid or  unenforceable,
     the remaining  provisions  shall  nonetheless be  enforceable  according to
     their  terms.  Further,  in the  event  that  any  provision  is held to be
     overbroad as written such  provision  shall be deemed amended to narrow its
     application  to the  extent  necessary  to make the  provision  enforceable
     according to law and enforced as amended.


XIX. APPLICABLE LAW

     The  laws  of  the  State  of  Oregon   shall   govern  the   validity  and
     interpretation of this Agreement.
<PAGE>


XX.  EFFECT OF THE LIFE INSURANCE POLICY'S CONTESTABILITY CLAUSES

     The parties  herein  understand  and agree that the payment of the benefits
     provided  herein are  subject to the Life  Insurance  Policy's  suicide and
     contestability clauses and other such clauses, and if such clauses preclude
     the Insurer from paying the full death  proceeds,  then, in such event,  no
     death  benefits  of  whatever  nature  shall be  payable to  Insured's  (or
     Insured's   Assignee's)   beneficiary(s)   under  this  Joint   Beneficiary
     Designation Agreement.


Executed at Klamath Falls, Oregon this 16th day of May, 2003.


                               KLAMATH FIRST FEDERAL
                               SAVINGS AND LOAN ASSOCIATION
                               Klamath Falls, Oregon



/s/ Nina G. Drake               By:  /s/ Kermit K. Houser
Witness                         Kermit K. Houser, President and CEO


/s/ Nina G. Drake               By:  /s/ Jeffery D. Schlenker
Witness                         Jeffery D. Schlenker


<PAGE>


                          BENEFICIARY DESIGNATION FORM
                 FOR THE JOINT BENEFICIARY DESIGNATION AGREEMENT

I.   PRIMARY   DESIGNATION
     (You  may  refer  to  the  beneficiary   designation information
        prior to completion of this form.)

A.   Person(s) as a Primary  Designation:  ____________________________________
     (Please  indicate the  percentage for each beneficiary.)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)


B.   Estate as a Primary Designation:

My Primary Beneficiary is The Estate of ___________________________ as set forth
in the last will and testament dated the _____ day of ________________, ________
and any codicils thereto.

C.   Trust as a Primary Designation:

Name of the Trust:  ____________________________________________________________
Execution Date of the Trust: _____ / _____ / _________
Name of the Trustee: __________________________________________________________
Beneficiary(ies) of the Trust (please indicate the percentage for each
beneficiary):
___________________________________________________________________________
___________________________________________________________________________
Is this an Irrevocable Life Insurance Trust?  ________ Yes     ________ No
(If yes and this designation is for a Split Dollar agreement, an Assignment of
Rights form should be completed.)


<PAGE>


II.  SECONDARY (CONTINGENT) DESIGNATION

A.   Person(s) as a Secondary  (Contingent)  Designation:
     (Please  indicate the percentage for each beneficiary.)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)

Name_____________________________   Relationship___________________  / _______%
Address:_______________________________________________________________________
           (Street)                   (City)           (State)           (Zip)


B.   Estate as a Secondary (Contingent) Designation:

My Secondary Beneficiary is The Estate of ______________________________________
as set forth in my last will and testament dated the ____ day of ________, _____
and any codicils thereto.

C.   Trust as a Secondary (Contingent) Designation:

Name of the Trust:  ____________________________________________________________
Execution Date of the Trust: _____ / _____ / _________
Name of the Trustee: __________________________________________________________
Beneficiary(ies) of the Trust (please indicate the percentage for each
beneficiary):
___________________________________________________________________________
___________________________________________________________________________

All sums  payable  under the Joint  Beneficiary  Agreement by reason of my death
shall be paid to the Primary Beneficiary(ies),  if he or she survives me, and if
no Primary Beneficiary(ies) shall survive me, then to the Secondary (Contingent)
Beneficiary(ies).  This  beneficiary  designation is valid until the participant
notifies the bank in writing.



__________________________                     Date ____________________________
Jeffery D. Schlenker

<PAGE>
                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.


                                        KLAMATH FIRST BANCORP, INC.

Date:   September 12, 2003              By: /s/ Kermit K. Houser
                                        -------------------------
                                        Kermit K. Houser, President and
                                        Chief Executive Officer


Date:   September 12, 2003              By: /s/ Marshall J. Alexander
                                        ------------------------------
                                        Marshall J. Alexander, Executive Vice
                                        President and Chief Financial Officer