Document:

EXECUTIVE COMPENSATION AND BENEFITS AGREEMENT

Jeff Meder
_____________                                                    Executive
--------------

Cost-U-Less, Inc.
8160 304th Ave. S.E.
Preston, Wa. 98050                                               the Company

1.   Employment.

The Company hereby employs Executive as its President and Chief Executive
Officer and Executive hereby accepts this Executive Compensation and Benefits
Agreement (together with Attachment A hereto, the "Agreement") in conjunction
with his employment with the Company.

2.   Effective Date.

This Agreement is effective as of September 1, 2002 (the "Effective Date"), and
shall continue through September 1, 2004, unless extended by mutual agreement or
terminated earlier as hereinafter provided.

3.   Duties and Responsibilities.

Executive will, during the term of this Agreement, faithfully and diligently
perform all such acts and duties, and have such responsibilities and furnish
such services, as are generally associated with and required for the position of
President and Chief Executive Officer and such other duties as the Board of
Directors of the Company (the "Board") or its designee(s) shall reasonably
direct. Executive will devote such time, energy and skill to the business of the
Company as shall reasonably be required for the performance of his/her duties.
Executive agrees, subject to his election as such, to serve as a director of the
Board during his term of employment.

4.   Salary and Bonus.

4.1 Salary. For the first year of this Agreement, Executive will be paid a
salary of $250,000 on an annualized basis, payable on regular Company paydays.
For each year

EXECUTIVE COMPENSATION AND BENEFITS AGREEMENT
Page 1 of 9
<PAGE>

thereafter that this Agreement is in full force and effect, Executive's annual
salary shall be reviewed by the Board for adjustment and may be increased as
determined appropriate by the Board. Except as specifically stated herein,
Executive otherwise will receive the same Company benefits and be subject to the
same policies, practices, terms and conditions of employment as are other senior
officers of the Company.

4.2 Bonus. In addition to Executive's base salary, Executive is eligible for
bonus based on the formula setforth in Exhibit B.

4.3 Car Allowance. Executive shall receive a monthly car allowance of $600 for
the term of the Agreement.

4.4 Vacation. Executive shall be eligible for four weeks paid vacation annually
during the term of the Agreement.

4.5 Disability Insurance. The Company will pay up to a maximum of $3,000 per
year toward Executive's disability insurance premium for the term of this
Agreement.

5.   Stock Option Grant.

Executive shall receive a grant of stock options in CUL that will vest in three
installments of 66,667 beginning September 1,2002 and then annually in 2003 and
2004, subject to the terms and conditions of the 1998 Stock Incentive
Compensation Plan (the "Stock Plan"). The exercise price and vesting schedule
are described in Attachment A hereto. Executive shall be eligible for
consideration for additional option grants in the sole discretion of the Board
and subject to the terms and conditions of the Stock Plan.

6.   Confidential Information, Nonsolicitation and Noncompetition.

Executive shall execute concurrently a Confidentiality, Nonsolicitation and
Noncompetition Agreement in the form provided by the Company.

7.   Termination and Severance.

7.1 Either party may terminate the employment relationship and this Agreement at
any time and for any reason, provided that the party electing to terminate the
employment relationship and this Agreement shall give at least 30 days written
notice to the other party.

7.2 Except as specifically provided for in this Agreement, Executive shall not
be eligible for severance pay or benefits under any other policy, program, plan,
or practice of the Company.

EXECUTIVE COMPENSATION AND BENEFITS AGREEMENT
Page 2 of 9
<PAGE>

7.3 If Executive's employment is terminated by the Company other than for cause,
as hereinafter defined, or pursuant to Sections 7.6 (disability) or 8 (Change of
Control) below, Executive shall receive as severance pay an amount equal to 12
months of Executive's base compensation at the time of termination. As an
additional severance benefit, the Company will pay up to 12 months of COBRA
premiums or until Executive becomes eligible for comparable group health
coverage or Medicare, whichever is earlier. Severance benefits shall not include
payment in connection with an award of any stock option or grant, the
eligibility for which will be governed solely by the terms of the Stock Plan.

7.4 If Executive's employment is terminated as a result of Executive's death or
for cause by the Company or if Executive terminates his employment for any
reason, Executive shall not be entitled to severance pay or benefits under this
Agreement.

7.5 For purposes of this Agreement, "cause" for termination includes, but is not
limited to, the following types of conduct and circumstances: failure to perform
Executive's duties under this Agreement; breach of the confidentiality,
nonsolicitation and noncompetition provisions of the Confidentiality,
Nonsolicitation and Noncompetition Agreement signed by Executive; material
violation of any statutory or common law duty of loyalty to the Company; conduct
or performance that, in the reasonable judgment of the Company, adversely
affects the interests of the Company or any of its affiliated or related
entities or injures or tends to injure the reputation of the Company or any of
its affiliated or related entities; or conduct that, in the reasonable judgment
of the Company, creates a conflict of interest or the appearance of a conflict
of interest between Executive and the Company or any of its affiliated or
related entities. If the basis for Executive's termination for cause is capable
of being cured by Executive within 7 days, the Company will give Executive a 7
day period to cure.

7.6 The Company, in its sole discretion, may elect to terminate this Agreement
and Executive's employment in the event Executive is unable or unwilling to
perform the essential duties and responsibilities of his position for a period
of more than six months due to disability without any obligation on the part of
the Company to provide severance pay or benefits to Executive.

7.7 For purposes of this paragraph 7, Executive's employment shall not be
considered terminated by the Company solely by reason of a change in Executive's
position, duties, responsibilities, compensation, benefits, or location of
employment provided Executive remains in a position deemed by the Company to be
consistent with his area of expertise and at substantially the same compensation
and benefits as described in paragraph 3 above.

EXECUTIVE COMPENSATION AND BENEFITS AGREEMENT
Page 3 of 9
<PAGE>

7.8 Severance pay and benefits under paragraph 7 are subject to applicable tax
and withholdings and deductions. Severance pay and benefits shall be paid
pro-rata on regular Company paydays.

7.9 In addition to the foregoing conditions, eligibility for and receipt of
severance pay and benefits under paragraph 7 are subject to Executive executing
and not revoking a Separation Agreement and Release of Claims in a form provided
to Executive by the Company at the time of termination.

7.10 Severance pay and benefits under paragraph 7 shall not be included as
compensation under any retirement plan maintained by the Company or an affiliate
unless the retirement plan provides otherwise.

7.11 Notwithstanding the foregoing, Executive shall not be eligible for
severance pay and benefits and shall forfeit any outstanding severance pay and
benefits under this paragraph 7 if:

     7.11.1 Executive is terminated by the Company and is transferred to or
offered employment by an affiliate of the Company within 120 days after
termination, unless Executive is no longer in such employment on the 120th day.

     7.11.2 Executive fails to execute any documents or satisfy conditions
required by the Company in order to receive severance pay and benefits under
this Agreement or fails to return property of the Company or an affiliate within
the time period designated by the Company for acceptance of severance pay and
benefits.

     7.11.3 Executive fails to execute or breaches any agreement required by the
Company, including but not limited to cessation of severance pay and benefits in
the event of rehire or reemployment by the Company or an affiliate or cessation
and repayment of severance pay and benefits in the event of any material breach
of any required confidentiality, nonsolicitation, nondisparagement, assistance
to the Company or assistance in defense of litigation agreements or a provision
of any Separation Agreement and Release of Claims signed by Executive.

     7.11.4 Executive accepts employment or enters into any business
relationship with, or becomes, or acquires ownership of more than a five percent
(5%) interest in, a competitor of the Company less than 12 months after
termination with the Company.

     7.11.5 Executive is eligible for severance pay and benefits under paragraph
8 of this Agreement.

EXECUTIVE COMPENSATION AND BENEFITS AGREEMENT
Page 4 of 9
<PAGE>

8.   Change of Control

8.1 If, following a Change of Control (as hereinafter defined), Executive's
employment is terminated by the Company other than for cause within 12 months
following such Change of Control or if Executive resigns from employment
following a material alteration in Executive's position that has a detrimental
impact on Executive (as defined in Section 8.3 below), Executive shall receive
as severance pay an amount equal to 12 months of Executive's base compensation.
As an additional severance benefit, the Company will pay up to 12 months of
COBRA premiums or until Executive becomes eligible for comparable group health
coverage or Medicare, whichever is earlier. Severance benefits shall not include
payment in connection with an award of any stock option or grant, the
eligibility for which will be governed solely by the terms of the Stock Plan. No
other severance pay or benefits shall be payable to Executive, including but not
limited to severance pay or benefits under paragraph 7 of this Agreement.

8.2 For the purposes of this paragraph 8, a "Change in Control" shall occur if
any of the following applies:

     8.2.1 Any "Person," as such term is used in Sections 13(d) and (14(d) of
the Securities Exchange Act of 1934, as amended (the "Exchange Act") (other than
the Company, any trustee or other fiduciary holding securities under an employee
benefit plan of the Company, or any company owned, directly or indirectly, by
the shareholders of the Company in substantially the same proportions as their
ownership of stock of the Company), is or becomes the "beneficial owner" (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing more than 50 percent of the combined
voting power of the Company's then outstanding securities;

     8.2.2 The shareholders of the Company approve a merger or other
consolidation of the Company with any other company, other than (1) a merger or
consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) more than 50 percent of the combined voting power of the
voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation or (2) a merger or consolidation
effected to implement a recapitalization of the Company (or similar transaction)
in which no Person acquires more than 50 percent of the combined voting power of
the Company's then outstanding securities;

     8.2.3 A tender or exchange offer is made for the common stock of the
Company (or securities convertible into common stock of the Company) and such
offer results in a portion of those securities being purchased and the offeror,
after the consummation of the offer, is the beneficial owner (as determined
pursuant to Section 13(d) of the Exchange Act), directly or

EXECUTIVE COMPENSATION AND BENEFITS AGREEMENT
Page 5 of 9
<PAGE>

indirectly, of securities representing more than 50 percent of the voting power
of outstanding securities of the Company; or

     8.2.4 The Company sells all or substantially all its operating assets to a
buyer that is not an affiliate of the Company.

8.3 For the purposes of this paragraph 8, there is a material alteration in the
employee's position that has a detrimental impact on the employee if:

     8.3.1 Executive's principal work location is moved more than 50 miles;

     8.3.2 Executive's salary is reduced by at least 15 percent of Executive's
base salary and the reduction is not the result of a general reduction in
compensation for reasons unrelated to Executive's assignment; or

     8.3.3 There is a material reduction in the scope of Executive's
responsibilities or authority.

8.4 Severance pay and benefits under paragraph 8 are subject to tax and other
applicable withholdings and deductions. Severance pay and benefits shall be paid
pro-rata on regular Company paydays.

8.5 In addition to the foregoing conditions, eligibility for and receipt of
severance pay and benefits under paragraph 8 are subject to Executive executing
and not revoking a Separation Agreement and Release of Claims in a form provided
to Executive by the Company at the time of termination.

8.6 Severance pay and benefits under paragraph 8 shall not be included as
compensation under any retirement plan maintained by the Company or an affiliate
unless the retirement plan provides otherwise.

8.7 Notwithstanding the foregoing, Executive shall not be eligible for severance
pay and benefits and shall forfeit any outstanding severance pay and benefits
under this paragraph 8 if:

     8.7.1 Executive receives an offer of severance benefits under any severance
plan or program maintained by the Company or an affiliate or enters into any
individual severance agreement with the Company or an affiliate that supersedes
this Agreement; or Executive is terminated pursuant to paragraph 7 of this
Agreement; or Executive voluntarily resigns from employment for any reason that
does not constitute a material alteration in Executive's position that has a
detrimental impact on Executive (as defined above).

EXECUTIVE COMPENSATION AND BENEFITS AGREEMENT
Page 6 of 9
<PAGE>

     8.7.2 Executive fails to execute any documents or satisfy conditions
required by the Company in order to receive severance pay and benefits under
this Agreement or fails to return property of the Company or an affiliate within
the time period designated by the Company for acceptance of severance pay and
benefits.

     8.7.3 Executive fails to execute or breaches any agreement required by the
Company, including, but not limited to, cessation of severance pay and benefits
in the event of rehire or reemployment by the Company or an affiliate, or
cessation and repayment of severance pay and benefits in the event of any
material breach of any required confidentiality, nonsolicitation,
noncompetition, nondisparagement, assistance to the Company or assistance in
defense of litigation agreements or a provision of any Separation Agreement and
Release of Claims signed by Executive.

     8.7.4 Executive becomes employed by the Company or an affiliate within 120
days after the Change in Control occurs, unless Executive is no longer in such
employment on the 120th day.

     8.7.5 Executive accepts employment or enters into any business relationship
with, or becomes, or acquires ownership of more than a five percent (5%)
interest in, a competitor of the Company less than 12 months after termination
with the Company.

9.   General Provisions.

9.1 Except as specifically provided herein, Executive's employment with the
Company shall be subject to the same terms and conditions as applicable to other
employees of the Company, including but not limited to the right of either party
to terminate the employment relationship at any time and for any reason upon
prior notice as provided in Section 7.1.

9.2 This Agreement shall be construed in accordance with and governed by the
laws of the State of Washington.

9.3 Executive agrees that any dispute (1) concerning the interpretation or
construction of this Agreement, (2) relating to any compensation or benefits
Executive may claim, or (3) relating in any way to any claim by Executive for
reinstatement or reemployment by the Company after execution of this Agreement
shall first be submitted to confidential mediation before a mediator selected by
the parties. Should any dispute not be resolved through mediation, it shall be
submitted and settled exclusively by confidential binding arbitration in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association or such comparable rules as may be agreed upon by the parties. The
parties shall be responsible for their own costs and legal fees in any mediation
or arbitration proceeding. Both parties agree that the procedures outlined in
this paragraph are the exclusive methods of dispute resolution.

EXECUTIVE COMPENSATION AND BENEFITS AGREEMENT
Page 7 of 9
<PAGE>

9.4 This Agreement and the Confidentiality, Nonsolicitation and Noncompetition
Agreement dated the date hereof contain the entire agreement between Executive
and the Company >concerning the subject matters discussed herein. Any
modification of this Agreement shall be effective only if in writing and signed
by each party or its duly authorized representative. This Agreement supersedes
all prior employment agreements between the parties. The terms of this Agreement
are contractual and not mere recitals. If, for any reason, any provision of this
Agreement shall be held invalid in whole or in part, such invalidity shall not
affect the remainder of this Agreement.

9.5 In no event shall the combined amounts of payments hereunder and payments
pursuant to the Stock Plan exceed the maximum amount that would be deductible
under Internal Revenue Code Section 280G.

9.6 The waiver of any breach of this Agreement by one party shall not constitute
waiver by the non-breaching party of any other breach of the Agreement.

9.7 This Agreement is subject to, and conditioned on, ratification of its terms
by the Board of Directors of the Company

COST -U- LESS, INC.

By   /s/ George Textor
   ---------------------------------
Its:  Compensation Committee Chairman        Date  October 22, 2002
     --------------------------------              ----------------

/s/ J. Jeffrey Meder
------------------------------------
Executive Signature                          Date  October 22, 2002
                                                   ----------------

Attachment A: Stock Option Vesting and Exercise Price

EXECUTIVE COMPENSATION AND BENEFITS AGREEMENT
Page 8 of 9
<PAGE>

                                  ATTACHMENT A

                                VESTING SCHEDULE

The exercise price shall be granted on September 1st, 2002 at fair market value
on date of grant.

The option with respect to 66,667 shares shall vest immediately on the date of
grant.

The option with respect to an additional 66,667 shares shall vest on September
1,2003.

The option with respect to the final 66,667 shares shall vest on September 1,
2004.

Notwithstanding the foregoing, vesting of the option may accelerate in the event
of a Corporate Transaction (as defined in the Stock Plan) in accordance with the
terms of the Stock Plan. (See Section 11.)

EXECUTIVE COMPENSATION AND BENEFITS AGREEMENT
Page 9 of 9
<PAGE>

                                  ATTACHMENT B

                                BONUS CALCULATION

The Company will pay you a bonus if the Company achieves planed EBITDA LEVELS.
The bonus will be based on a target amount of ten percent of your salary for
2002 (to be pro rated for the last two quarters for both salary and EBITDA) and
2003 and will be adjusted up or down depending on the actual level of EBITDA the
Company achieves for the calendar year according to the following formula:

                    (Actual EBITDA) - (85% budgeted EBITDA)
                    ---------------------------------------
Annual Bonus =              .20 x (Budgeted EBITDA)              x 10% of salary

EXECUTIVE COMPENSATION AND BENEFITS AGREEMENT
Page 10 of 9AMENDMENT TO EMPLOYMENT AGREEMENT

         In consideration for the mutual covenants herein contained, the parties
hereby amend the Employment Agreement dated as of July 29, 1997 between
Centennial Bank, an Oregon banking corporation (the "Employer") and Thaddeus
(Ted) R. Winnowski (the "Executive") (herein the "Agreement").

                                    RECITALS

         Employer and its parent, Centennial Bancorp, have entered into an
Agreement and Plan of Reorganization (the "Merger") with Umpqua Holdings
Corporation and Umpqua Bank providing for the Merger of Employer into Umpqua
Bank.

                                    AGREEMENT

         The parties agree to amend the Agreement as follows:

         1.       Section 2.2 of the Agreement shall be amended to read in its
                  entirety as follows:

                  "Section 2.2      Term.

                           The term of the Executive's employment under this
                  Agreement shall continue to the later of (i) December 31, 2002
                  or (ii) the earlier of the termination or the consummation of
                  the Merger." If the term extends beyond December 31, 2002, the
                  Executive shall be entitled to a monthly salary equal to his
                  base salary earned in December, 2002 and which shall include
                  no bonus or incentive compensation.

         2.       Section 3.3.1 of the Agreement shall be amended to read in its
                  entirety as follows:

                           "3.3.1 In the event of a Change of Control of the
                  Employer or Centennial Bancorp, Executive shall be entitled to
                  receive on a deferred basis as set forth in this Section 3.3.1
                  an amount equal to 2.99 x "Executive's Base Amount," less the
                  value of the acceleration of unvested stock options provided
                  in Section 3.5, such value to be determined in accordance with
                  IRC 280G. "Executive's Base Amount" of compensation will be
                  determined according to IRC 280G and is currently estimated to
                  approximate $276,046. Immediately following the Change of
                  Control, such amount will be placed by Employer in a "Rabbi
                  Trust" to secure the payments required in this Section 3.3.1.
                  The terms of the Rabbi Trust will be consistent with the model
                  provisions contained in IRC Rev. Proc. 92-64, 1992-2 CB 422.
                  The Rabbi Trust will provide for an independent third-party
                  trustee, shall be irrevocable and shall be invested in such
                  securities and other investments as selected by the trustee.
                  All costs of forming and administering the trust will be paid
                  from the contributions to,

<PAGE>

                  principal of, or interest earned by the trust. Payments from
                  the trust will commence in January of 2007 and will be made to
                  the Executive as follows: one tenth of the trust balance as of
                  the preceding December 31 will be paid in January of the first
                  year, one-ninth of the trust balance as of the preceding
                  December 31 will be paid in January of the second year,
                  one-eighth of the trust balance as of the preceding December
                  31 will be paid in January of the third year, etc., until the
                  entire amount of the Trust is paid in January 2016. In the
                  event of the death of Executive, all subsequent payments shall
                  be made to the party designated in a written notice by
                  Executive to Employer and in the event such party is deceased
                  or is an entity and is no longer in existence or Executive has
                  failed to provide Employer with written notice, then such
                  payments shall be made to the Executive's estate or as
                  thereafter directed by written notice of the estate to
                  Employer. At the time of a Change of Control, Employer agrees
                  to sell to Executive and Executive agrees to purchase the
                  Employer owned automobile currently used by Executive at the
                  vehicle's Kelly Blue Book wholesale value."

         3.       Add three new sections to the Agreement to read in their
                  entirety as follows:

                  3.3.3 In the event Executive becomes entitled to a payment or
                  benefit pursuant to the terms of this Agreement or of any
                  other plan, arrangement or agreement (collectively, the
                  "Payments") of the Employer or its successor (or any
                  affiliate) (collectively, the "Employer"), and the Employer's
                  Auditor determines that the Payments result in "excess
                  parachute payments" under section 280G of the Code, then
                  Executive shall receive, instead of the Payments, aggregate
                  payments equal to the Reduced Amount, if such Reduced Amount
                  would result in net after-tax payments to Executive that are
                  greater than the net after-tax payments he would have received
                  without regard to this section. For purposes of this
                  subsection 3.3.3, the "Reduced Amount" shall be the amount,
                  expressed as a present value, that maximizes the aggregate
                  present value of the payments without causing any payment to
                  be nondeductible by the Employer under section 280G of the
                  Code and "Employer's Auditor" shall mean the independent
                  auditors retained most recently prior to the transaction
                  implicating Section 280G of the Code by the Employer, or, if
                  the Employer is not the surviving entity following the Change
                  in Control, by the Employer's successor (or any affiliate).

                  3.3.4 If the amount of the aggregate payments to Executive
                  must be reduced under section 3.3.3, then Executive shall
                  direct in which order the payments are to be reduced, but no
                  change in the timing of any payment shall be made without the
                  consent of the Employer. As a result of uncertainty in the
                  application of sections 280G and 4999 of the Code at the time
                  of an initial determination by the Employer's Auditor, it is
                  possible that a payment will have been made by the Employer
                  that should

<PAGE>

                  not have been made (an "Overpayment") or that an additional
                  payment that will not have been made by the Employer could
                  have been made (an "Underpayment"). In the event that the
                  Employer's Auditor, based upon the assertion of a deficiency
                  by the Internal Revenue Service against the Employer or
                  Executive that the Employer's Auditor believes has a high
                  probability of success, determines that an Overpayment has
                  been made, such Overpayment shall be treated for all purposes
                  as a bilateral error subject to adjustment which Executive
                  shall repay to the Employer, together with interest at the
                  applicable federal rate specified in section 7872(f)(2) of the
                  Code. In the event that the Employer's Auditor determines that
                  an Underpayment has occurred, such Underpayment shall promptly
                  be paid or transferred by the Employer to, or for the benefit
                  of, Executive, together with interest at the applicable
                  federal rate specified in section 7872(f)(2) of the Code.

                  3.3.5 Notwithstanding the provisions of Sections 3.3.3 or
                  3.3.4, no amount shall be reduced or shall be payable by
                  Executive to the Employer if and to the extent that such
                  payment would not reduce the amount that is nondeductible
                  under section 280G of the Code or is subject to an excise tax
                  under section 4999 of the Code or, without the consent of
                  Executive, were to exceed $10,000.

         4. Executive acknowledges that he has relied upon his own legal counsel
with respect to all matters addressed in this amendment. Upon payment by
Employer to the trustee of the amounts provided by section 3.3.1 of the
Agreement, Executive will look only to the trustee and the funds in the Rabbi
Trust with respect to the Change of Control payment and any earnings thereon,
and hereby releases Employer for any acts, errors or omissions of the trustee;
except to the extent any claim of a creditor of Employer has been satisfied out
of the assets of the Rabbi Trust.

         5. Except as revised in this amendment, all other terms of the
Agreement remain in full force and effect.

Dated September 23, 2002

Centennial Bank

By:  /s/ Dick Williams                      /s/ Ted R. Winnowski
     -----------------------------------    -----------------------------------
         Dick Williams,                     Thaddeus (Ted) R. Winnowski
         Chairman, Centennial Bancorp       Executive

By:  /s/ Dan Giustina
     -----------------------------------
         Dan Giustina,
         Chairman, Centennial Bank

Employer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]