**PACIFIC      CONTINENTAL**

**EMPLOYMENT      AGREEMENT**

| A.   | Executive                currently                serves as President and Chief Operating Officer of the Bank and Vice                President of the Corporation, |
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| B.   | Corporation                and Bak                desire Executive to continue his employment at the Bank and Corporation                under the terms and conditions of this                Agreement. |
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| C.   | Executive                desires to continue his employment at the Bank and Corporation under                the                terms and conditions of this                Agreement. |
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| D.   | This                Agreement supercedes any and all other employment, severance or similar                agreements that may currently be in effect for Executive with either                the                Bank or the Corporation. |
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**1.      Employment. **

**Term.      **

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| **3.  ** | **Duties.**The                Bank will employ Executive as its President and the Corporation will                employ Executive as its Vice President. Executive will faithfully                and                diligently perform his assigned duties, which are as                follows: |
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| b.   | Development                and Preservation of Business.                Executive will be responsible for the development and preservation                of                banking relationships and other business development efforts (including                appropriate civic and community activities) in the Bank's market                area, |
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| c.   | Report                to the Chief Executive Officer.                Executive will report directly to the Bank's Chief Executive                Officer, |
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| 4.   |  **Extent                of Services.**Executive                will devote all of his working time, attention and skill to the duties                and                responsibilities set forth in Section 3. To the extent that such                activities do not interfere with his duties under Section 3, Executive                may                participate in other businesses as a passive investor, but (a) Executive                may not actively participate in the operation or management of those                businesses, and (b) Executive may not, without the Bank's or the                Corporation's prior written consent, make or maintain any investment                in a                business with which the Bank and/or Corporation has an existing                competitive or commercial                relationship. |
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| **5.  ** | **Salary.**In                addition to normal fees as a member of the Boards of Directors of                the Bank                and the Corporation, Executive will initially receive an annual base                salary of $190,000, to be paid in accordance with the Bank's regular                payroll schedule. Subsequent salary increases are subject to the                Bank's                and Corporation's annual review of Executive's compensation and                performance. |
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| **6.  ** | **Incentive                Compensation.**Each                year during the Term, the Bank's board of directors will determine                the                amount of bonus to be paid by the Bank to Executive for that year.                Such                bonus shall be determined in accordance with the Bank's incentive                programs, as such programs are in effect as of the date of this Agreement                and as they may be modified with Executive's prior approval., This                bonus                will be paid to Executive no later than February 15 of the year following                the year in which the bonus is earned by                Executive. |
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| 7.   |  **Income                Deferral**Executive                will be eligible to participate in any program available to the Bank's                and                Corporation's senior management for income deferral, for the purpose                of                deferring receipt of any or all of the compensation he may become                entitled                to under this Agreement. |
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**8.**
**Vacation      and Benefits.**

| a.   | Vacation and Holidays.                Executive will receive five (5) weeks of paid vacation each year.                Each                year, Executive may carry over up to two (2) weeks of unused vacation                to                the following year. Any unused vacation time in excess of four (4)                weeks                will not accumulate or carry over from one calendar year to the                next, |
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| b.   | Benefits..                Executive will be entitled to participate in any group life insurance,                disability, health and accident insurance plans, profit sharing and                pension plans and in other employee fringe benefit programs the Bank                or                Corporation may have in effect from time to time for its similarly                situated employees, in accordance with and subject to any policies                adopted                by the Bank's or Corporation's board of directors with respect to                the                plans or programs, including without limitation, any incentive or                employee                stock option plan, deferred compensation plan, 401(k) plan (including                matching or profit plan), and Supplemental Executive Retirement Plan                (SERF). Neither the Bank nor Corporation though this Agreement obligates                itself to make any particular benefits available to its                employees. |
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| c.   | Business                Expenses.                The Bar l< will reimburse Executive for ordinary and necessary expenses                which are consistent with past practice at the Bank (including, without                limitation, travel, entertainment, and similar expenses) and which                are                incurred in performing and promoting the Bank's business. Executive                will                present on a monthly basis itemized accounts of these expenses, subject                to                any limits of Bank policy or the rules and regulations of the Internal                Revenue Service. |
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**9.**
**Termination      of Employment.**

| b.   | Other                Termination By Bank.                If, during the Term, *the*Bank                terminates Executive's employment without Cause, or Executive terminates                his employment for Good Reason (defined below), the Bank will pay                Executive the compensation (including the bonus described in Section                6)                and other benefits (described in Section 8) he would have been entitled                to                if his employment had not terminated (the "Termination                Payment"),                for a period of twelve months. In the event of a termination related                to a                Change in Control pursuant to Section 10, the provisions of Section                10                shall supersede this section. |
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| c.   | Death                or Disability.                This Agreement terminates (1) if Executive dies or (2) if Executive                is                unable to perform his duties and obligations under this Agreement                for a                period of 90 days as a result of a physical or mental disability                (such                inability being, a "Disability"),                unless with reasonable accommodation Executive could continue to                perform                his duties under this Agreement and making these accommodations would                not                pose an undue hardship on the Bank. If termination occurs under this                Section 9(c), Executive or his estate will be entitled to receive                all                compensation and benefits earned and expenses reimbursable through                the                date Executive's employment                terminated, |
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| d.   | Return                of Bank Property.                If                and when Executive ceases, for any reason, to be employed by the                Bank or                the Corporation, Executive must return to the Bank all keys, pass                cards,                identification cards and any other property of the Bank or Corporation,                At                the same time, Executive also must return to the Bank all originals                and                copies (whether in hard copy, electronic or other form) of any documents,                drawings, notes, memoranda, designs, devices, diskettes, tapes, manuals,                and specifications which constitute proprietary information or material                of                the Bank or Corporation. The obligations in this paragraph include                the                return of documents and other materials which may be in his desk                at work,                in his car, in place of residence, or in any other location under                his                control. |
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| (1)   | Willful                misfeasance or gross negligence in the performance of Executive's                duties; |
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| (3)   | Conduct                demonstrably and significantly harmful to the Bank, as reasonably                determined on the advice of legal counsel by the Bank's board of                directors. |
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| (2)   | The                assignment to Executive without his consent of any authority or duties                materially inconsistent with Executive's position as of the date                of this                Agreement; or |
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| (3)   | A                relocation or transfer of Executive's principal place of employment                that                would require Executive to commute on a regular basis more than 50                miles                each way from his present place of                employment. |
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**10.**
**Payment      Related to a Change in Control.**

| (1)   | A                Change in Control of the Bank and/or the Corporation is consummated                while                Executive is employed by the Bank, and Executive is not offered a                Comparable Position (as defined below) with the acquiring                company; |
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| (2)   | Within                one year after accepting a Comparable Position with the acquiring                company,                Executive's employment ceases for any reason other than termination                for                Cause; or |
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| (3)   | The                Bank terminates Executive's employment without Cause or Executive                resigns                for Good Reason, and within one year' thereafter the Bank and/or                the                Corporation enters into an agreement for a Change in Control or any                party                announces or is required by Iaw to announce a prospective Change                in                Control of the Bank and/or the                Corporation. |
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| (4)   | A                "Comparable                Position"                means the position of CEO of the acquiring company, on financial                terms in                the aggregate no less favorable than this                Agreement, |
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|   | c.. |   | Limitations                on Payments Related to Change in ControI..                The following apply |
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| (1)   | If                the total of the payments and benefits described in Section 10(b)                will be                an amount that would cause them to be a "parachute payment" within                the                meaning of Section 280G(b)(2)(A) of the Internal Revenue Code (a                "Parachute                Payment Amount"),                then such payment(s) shall be reduced so that the total amount thereof                is                $1 less than the Parachute Payment Amount;                and |
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| (2)   | Executive's                right to receive the payments and benefits described in Section 10(b)                terminates immediately if before the Change in Control transaction                closes,                Executive terminates his employment without Good Reason or the Bank                terminates Executive's employment for                Cause. |
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| **11.  ** | **Confidentiality.**Executive                will not, after the date this Agreement is signed, including during                and                after its Term, use for his own purposes or disclose to any other                person                or entity any confidential business information concerning the Bank                or                Corporation or their business operations, unless (1) the Bank or                Corporation consents to the use or disclosure of their respective                confidential information; (2) the use or disclosure is consistent                with                Executive's duties under this Agreement or (3) disclosure is required                by                law or court order. For purposes of this Agreement, confidential                business                information includes, without limitation, trade secrets, various                confidential information concerning all aspects of current and future                operations, nonpublic information on investment management practices,                marketing plans, pricing structure and technology of either the Bank                or                Corporation. Executive will also treat the terms of this Agreement                as                confidential business information. |
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| **12.  ** | **Nonsolicitation.**For                two years after Executive's employment under this Agreement terminates,                Executive will not, directly or indirectly, persuade or entice, or                attempt                to persuade or entice, (i) any employee of the Bank or Corporation                to                terminate his/her |
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**13.**
**Enforcement.**

| **14.  ** | **Covenants.**Executive                specifically acknowledges the receipt of adequate consideration for                the                covenants contained in Sections 11 and 12 and that the Bank is                *entitled*to                require him to comply with these Sections. These Sections will survive                termination of this Agreement. |
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**15.**
**Arbitration.**

| b.   | Governing                Law.                All proceedings will be held at a place designated by the arbitrator                in                Lane County, Oregon. |
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| c.   | Exception                to Arbitration,                Notwithstanding the above, if Executive violates Section 11 or 12,                the                Bank and/or Corporation will have the right to initiate the court                proceedings described in Section 13b), in lieu of an arbitration                proceeding under this Section 15, |
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**16.**
**Miscellaneous      Provisions.**

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