| A.   | Executive      currently serves as Chief Executive Officer of the Bank and the      Corporation. |
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| B.   | Corporation      and Bank desire Executive to continue his employment at the Bank and the      Corporation under the terms and conditions of this    Agreement. |
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| C.   | Executive      desires to continue his employment at the Bank and the Corporation under      the terms and conditions of thisAgreement. |
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| D.   | This      Agreement supersedes 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. The Bank      and the Corporation agree to employ Executive, and Executive accepts      employment by the Bank and the Corporation on the terms and conditions set      forth      in this Agreement. Executive's title will be Chief Executive      Officer of the Bank and theCorporation. |
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|   | 2.Term. The term of this      Agreement (“Term”) commences from the date hereof and expires on April 30,      2010, unless sooner terminated in accordance with Section 9 or extended      until April 30 of subsequent years in accordance with this Section 2.      Notwithstanding any termination or expiration of this Agreement, so long      as Executive is employed by the Corporation or any of its subsidiaries,      the provisions of Section 10 shall survive until such time as the      Corporation's Board of Directors specifically terminates Section      10. |
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| a.   | Each      year, commencing in 2008, Executive may include, as an agenda item for      consideration by the Boards of Directors of the Corporation and the Bank      at their annual organization meetings, the extension of the Term of this      Agreement for an additional one year (the “Extension Notice”). By way of      example, if the Term is extended at the annual meetings in 2008, then this      Agreement shall expire on April 30, 2011 rather than April 30, 2010, and      if the Term is subsequently extended at the      annual meetings in 2009, then this Agreement shall accordingly expire on      April 30, 2012. |
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| b.   | If      Executive provides the Extension Notice, then the Term of this Agreement      shall be extended for one additional year unless a majority of the Boards      of Directors of both the Corporation and Bank (excluding Executive, if the      Executive serves on the Board of Directors) elect not to extend the Term      at their annual organization meetings.  If the Boards of      Directors elect not to extend the Term, written notice of such fact shall      be promptly given to Executive. |
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| c.   | If      Executive fails to provide the Extension Notice, then the Term of this      Agreement shall be extended only if a majority of the Boards of Directors      of both the Corporation and Bank (excluding Executive, if the Executive      serves on the Board of Directors) elect to extend the Term for one      additional year and Executive agrees to such  extension. |
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| 3.   | Duties. The Corporation      and Bank will employ Executive as its Chief Executive Officer. Executive      will faithfully and diligently perform his assigned duties, which are as      follows: |
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|   | a.      Performance.      Executive will be responsible for establishing and executing the strategic      objectives for the Bank and the Corporation.  Executive will      direct the President of the Bank and the Corporation, and together they      will be responsible for all aspects of the Bank’s performance, including      without limitation, seeing that daily operational and managerial matters      are performed in a manner consistent with the Corporation's and the Bank's      policies. |
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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.   | Development and      Preservation of Investor Awareness. Executive will be responsible      for the development and preservation of the Corporation’s retail and      institutional investor relations. |
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| d.   | Report to      Board. Executive will report directly to the Corporation’s and      Bank’s boards of directors.. |
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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      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 commercialrelationship. |
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| 5.   | Salary. Executive will      initially receive an annual base salary of $290,000, 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 andperformance. |
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| 6.   | Incentive Compensation.      Each year during the Term, the Bank's board of directors will      determine the amount of incentive compensation to be paid by the Bank to      Executive for that year. Such incentive compensation 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 incentive compensation will be paid to      Executive no later than March 31 of the year following the year in which      the incentive compensation 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 thisAgreement. |
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| 8.   | Vacation      and Benefits. |
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| a.   | Vacation and      Holidays. Executive will receive six (6) weeks of paid vacation      each year. Each year, Executive may carry over up to three (3) 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      (SERP). 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 bank will reimburse Executive for ordinary and      necessary expenses which are consistent with past practice at the Bank      (including, without limitation, travel, entertainment, and similar      expenses) and which are incurred in performing and promoting the Bank's      business. Executive will present on a monthly basis itemized accounts of      these expenses, subject to any limits of Bank policy or the rules and      regulations of the Internal RevenueService. |
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|   | a. | Termination by Bank      for Cause. If, during the Term, the Bank terminates Executive's      employment for Cause (defined below), the Bank will pay Executive the      salary earned and expenses reimbursable under this Agreement incurred      through the date of his termination. Executive will have no right to      receive compensation or other benefits for any period after termination      under this Section 9.  Additionally, and immediately upon      termination, all equity grants that are vested and all equity grants not      yet vested shall terminate and may no longer be  exercised. |
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| 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 100% of the potential incentive compensation 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. Additionally, all unvested      equity grants will become immediately vested upon      termination.  All equity awards other than options shall be      settled immediately.  All vested options, including any      accelerated vesting as a result of termination, shall expire on, if not      exercised before, the earlier of (i) the same day of the third month after      the date of termination, or (ii) the expiration date of the option      provided in the award agreement.  In the event of a termination      related to a Change in Control pursuant to Section 10, the provisions of      Section 10 shall supersede thissection. |
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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. Additionally, all unvested equity grants will become      immediately vested upon Death or Disability.  All equity awards      other than options shall be settled immediately.  All vested      options, including any accelerated vesting as a result of Death or      Disability, shall expire on, if not exercised before, the earlier of (i)      one year after the date of Death or Disability, or (ii) the expiration      date of the option provided in the award  agreement. |
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| d.   | Return of Bank      Property. If and when Executive ceases, for any reason, to be      employed by the Bank or 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 the 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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|   | (1) | Reduction      of Executive's salary or reduction or elimination of any significant      compensation or benefit plan benefiting Executive, unless the reduction or      elimination is generally applicable to substantially all Bank employees      (or employees of a successor or controlling entity of the Bank) formerly      benefited; |
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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, without Executive’s consent, 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, currently 222 S.W. Columbia, Portland,  OR,. |
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|   | g. | Change in      Control. "Change in Control" means a change "in the ownership or      effective control" or "in the ownership of a substantial portion of the      assets" of the Bank, within the meaning of section 280G of the Internal      Revenue Code. |
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|   | a. | Payment      Triggers. Upon the occurrence of any of the following, each of which is a      "Triggering Event," Executive will be entitled to receive the payment and      benefits described in Section10(b): |
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| (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; |
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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 law to announce a prospective Change in      Control of the Bank and/or theCorporation; |
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| (4)   | A      "Comparable Position" means the position of President and Chief Operating      Officer of the acquiring company, on financial terms in the aggregate no      less favorable than this Agreement. |
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|   | b. | Payment Amount.      If a Triggering Event occurs, the Bank will pay Executive, upon the      closing of the Change in Control or termination of Executive's employment,      whichever is applicable, a single payment in an amount equal to two and      one-half (2.5) times the Executive's potential annual compensation less      the amount of any Termination Payments that may have been paid to      Executive pursuant to Section 9(b). Executive's potential annual      compensation is the Executive's current annual salary plus 100% of the      Executive's current potential incentive compensation, as described in      Section 6. If Executive's employment is terminated pursuant to Section      10(a), the Bank will also maintain and provide for one-year following      Executive's termination or the closing of the Change in Control, whichever      is later, at no cost to Executive, the benefits described in Section 8(b)      to which Executive is entitled (determined as of the day before the date      of such termination); but if Executive's participation in any such benefit      is thereafter barred or not feasible, or discontinued or materially      reduced, the Bank will arrange to provide Executive with either benefits      substantially similar to those benefits or a cash payment of substantially      similar value in lieu of the benefits.  Additionally, if      Executive's employment is terminated pursuant to Section 10(a), all      unvested equity grants will become immediately vested upon closing of the      Change in Control or termination of employment, whichever is      later.  All equity awards other than options shall be settled      immediately.  All vested options, including any accelerated      vesting as a result of termination or Change in Control, shall expire on,      if not exercised before, the earlier of (i) the same day of the third      month after the date of termination, or (ii) the expiration date of the      option provided in the awardagreement. |
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|   | c. | Limitations on      Payments Related to Change in Control. The following      apply |
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|   | notwithstanding      any other provision of thisAgreement: |
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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 forCause. |
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|   | d. | Survival. The      provisions of this Section 10 will survive any termination or expiration      of this Agreement until such time as the Corporation's Board of Directors      specifically terminates this Section10. |
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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. |
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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 employment with the Bank or Corporation,      or (ii) any customer of the Bank or Corporation to terminate his/her      relationship with the Bank or Corporation or to otherwise direct any      portion of his/her business away from the Bank or    Corporation. |
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| 13.   | Injunctive      Relief.  Executive acknowledges that the Corporation and      the Bank would be irreparably harmed if Executive breaches any of its      obligations under Sections 11 or 12 and that, in light of all of the facts      and circumstances of the relationship between Executive, the Corporation      and the Bank, the obligations referred to in Sections 11 and 12 are fair      and reasonably necessary for the protection of the Corporation’s and the      Bank's confidential information, goodwill and other protectable      interests..  Accordingly Executive agrees that in the event of a      breach or threatened breach thereof, the Corporation and/or the Bank shall      be entitled to injunctive relief to prevent such breach and to secure      enforcement (which shall be in addition to any other rights or remedies      available to the Corporation or the Bank) and neither the Corporation nor      the Bank shall not be required to post a bond as a condition for the      granting of this relief..  In addition, if a court, arbitrator      or other person called upon to adjudicate a dispute involving the      foregoing Sections 11 or 12 finds that the obligations thereunder are not      enforceable under applicable law because they are too broad in any      respect, then the court, arbitrator or other person may revise the      obligations to the minimum extent necessary to make such obligations      enforceable. |
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| 14.   | Covenants. Executive      specifically acknowledges the receipt of adequate consideration for the      covenants contained in Sections 11 and 12 and that the Corporation and/or      the Bank are entitled      to require him to comply with these Sections. These Sections will      survive termination of thisAgreement. |
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| 15.   | Arbitration. |
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|   | a. | Arbitration. At      either party's request, the parties must submit any dispute, controversy      or claim arising out of or in connection with, or relating to, this      Agreement or any breach or alleged breach of this Agreement, to      arbitration under the American Arbitration Association's      rules then in effect (or under any other form of arbitration mutually      acceptable to the parties). A single arbitrator agreed on by the parties      will conduct the arbitration. If the parties cannot agree on a single      arbitrator, each party must select one arbitrator and those two      arbitrators will select a third arbitrator. This third arbitrator will      hear the dispute. The arbitrator's decision is final (except as otherwise      specifically provided by law) and binds the parties, and either party may      request any court having jurisdiction to enter a judgment and to enforce      the arbitrator's decision. The arbitrator will provide the parties with a      written decision naming the substantially prevailing party in the action.      This prevailing party is entitled to reimbursement from the other party      for its costs and expenses, including reasonable attorneys'      fees, |
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| 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 Section15. |
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|   | a. | Entire      Agreement. This Agreement constitutes the entire understanding and      agreement between the parties concerning its subject matter and supersedes      all prior agreements, correspondence, representations, or understandings      between the parties relating to its subject matter, including without      limitation the Employment Agreements among the parties dated April 15,      2005 and May 16, 2006. |
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|   | b. | Binding Effect.      This Agreement will bind and inure to the benefit of the Bank’s,      Corporation's and Executive's heirs, legal representatives, successors and      assigns. |
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|   | c. | Litigation      Expenses. If either party successfully seeks to enforce any      provision of this Agreement or to collect any amount claimed to be due      under it, this party will be entitled to reimbursement from the other      party for any and all of its out-of-pocket expenses and costs including,      without limitation, reasonable attorneys' fees and costs incurred in      connection with the enforcement orcollection. |
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|   | d. | Waiver. Any      waiver by a party of its rights under this Agreement must be written and      signed by the party waiving its rights, A party's waiver of the other      party's breach of any provision of this Agreement will not operate as a      waiver of any other breach by the breaching  party. |
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|   | e. | Assignment. The      services to be rendered by Executive under this Agreement are unique and      personal. Accordingly, Executive may not assign any of his rights or      duties under this Agreement. |
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|   | f. | Amendment. This      Agreement may be modified only through a written instrument signed by both      parties. |
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|   | g. | Severability.      The provisions of this Agreement are severable. The invalidity of any      provision will not affect the validity of other provisions of this      Agreement. |
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|   | h. | Governing Law and      Venue. This Agreement will be governed by and construed in      accordance with Oregon law, except to the extent that certain matters may      be governed by federal law. The parties must bring any legal proceeding      arising out of this Agreement in Lane County,  Oregon. |
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