<PAGE>


                                   EXHIBIT 10.19
                FORM OF SEVERANCE PAY AGREEMENT ENTERED INTO BETWEEN
                INTERWEST BANK AND STEPHEN M. WALDEN, H. GLENN MOUW,
                       CLARK W. DONNELL AND KENNETH G. HULETT

<PAGE>

                              SEVERANCE PAY AGREEMENT


1.     Employer:     InterWest Bank   (InterWest)

2.     Employee:     ___________________________________ of InterWest Bank.

3.     Duties:       InterWest hereby agrees to continue the employment of
       Employee as an Officer of InterWest with such duties and responsibilities
       as may be determined from time to time by the Board of Directors and by
       Senior Management of InterWest, subject to the terms hereof.

4.     Successors:   This Agreement shall be binding upon InterWest and its
       Successors and Assigns.

5.     Severance Pay:   Except as provided in Paragraph 8 below, if InterWest
       terminates Employee, Employee shall be entitled to receive Severance Pay
       as follows:

       5.1.   An amount equal to three (3) weeks' total compensation for each
       twelve (12) months of employment by Employee with InterWest and/or its
       successors.

       5.2    Employee shall be entitled to a minimum of an amount equal to six
       (6) months Total Compensation, and

       5.3.   The total Severance Pay compensation shall not exceed an amount
       equal to twelve (12) months Total Compensation.

6.     Change of Control.

       6.1.   In the event of a Change of Control, during the term of
       Employment, Employee will be entitled to Severance Pay in an amount equal
       to twelve (12) months Total Compensation, provided however, Employee
       shall not be eligible for Severance Pay if Employee is offered
       substantially equivalent employment by a successor entity that includes
       the following:

              6.1.1  Comparable salary and benefits, and

              6.1.2. A comparable position of authority and responsibility, and

<PAGE>

       6.1.3. Does not require Employee to relocate beyond a reasonable
              commuting distance, which distance may, but need not be,
              established by InterWest as a matter of policy, and

       6.1.4. The Employee is not permanently terminated by such successor
              entity within one (1) year following such Change of Control.

       6.2    For the purposes of this Agreement, the term "Change of Control"
       shall mean the acquisition of InterWest, or a substantial part thereof,
       by another company; the merger of InterWest into another company with the
       other company surviving; the sale of substantially all of the assets of
       InterWest to another company; or a hostile acquisition of substantially
       all of the stock of InterWest.  For purposes of Change of Control, the
       term InterWest includes InterWest Bank and its holding company, InterWest
       Bancorp.

7.     Other Benefits.      The Severance Pay Compensation provided herein shall
       be the exclusive provision regarding Severance Pay, but shall be in
       addition to other benefits to which Employee may otherwise be entitled.

8.     Termination:         Employee shall not be entitled to Severance Pay if
       the Employment is terminated for any of the following reasons:

       8.1.   Employee may terminate employment upon thirty (30) days' notice.

       8.2.   Employee shall not be entitled to any Severance Pay if Employee's
       employment is terminated during the first ninety (90) days of employment
       with InterWest.

       8.3.   InterWest may terminate Employee immediately without advance
       notice for gross misconduct, which includes, but is not limited to,
       drunkenness on the job; the use, sale or possession of illegal drugs on
       the property of the Bank or its subsidiaries; dishonesty; insubordination
       or willful failure to discharge assigned duties; harassment of fellow
       employees or customers of the Bank; violation of the conflict of interest
       policy of the Bank or its subsidiaries; fighting or assault; theft;
       possession of unauthorized weapons or firearms (loaded or unloaded) on
       the premises of the Bank or its subsidiaries; or conviction of a criminal
       offense.

       8.4.   The employment relationship shall terminate upon Employee's death.

       8.5.   If Employee becomes totally disabled as defined in the Group
       Insurance Policy providing Disability Income Benefits to Employee.

<PAGE>

       8.6.   If the Employment is terminated because Employee becomes so
              disabled that Employee is unable to perform the material and
              substantial duties of the Employment position Employee then holds,
              even with reasonable accommodation by Employer.

9.     Definitions.

       For the purposes of this Agreement, the term "Total Compensation" shall
       mean Employee's base salary and, if Employee has been employed for a
       sufficient period of time to participate in performance bonuses, shall
       include such bonuses. The monthly average pay, and bonuses when
       applicable, for the prior twelve months shall be averaged and multiplied
       times the appropriate number of months to determine the Total
       Compensation for such term.



EMPLOYEE:                                 INTERWEST BANK
                                          By Compensation Committee of the
                                          Board of Directors:


------------------------------------      -------------------------------------
                                          Vern Sims, Chairman

Date:
     -------------------------------      -------------------------------------
                                          Clark H. Mock


                                          -------------------------------------
                                          C. Stephen Lewis


                                          -------------------------------------
                                          B. R. Beeksma