Document:

Form of Certificate of Designations

 Exhibit 4.1 
 FORM OF CERTIFICATE OF DESIGNATIONS 
 OF 

MANDATORILY CONVERTIBLE CUMULATIVE PARTICIPATING PREFERRED STOCK, 

SERIES B 
 Section 1. Definitions. Unless the context or use indicates another meaning or intent, the following terms shall have the following meanings, whether used in the singular or the plural:

 (a) “382 Rights Plan” means a shareholder rights plan designed to preserve the utilization of tax benefits
and assets and the associated declaration, issuance and exercise of related securities (including rights and shares of a new series of junior participating preferred stock). 
 (b) “Affiliate” means, with respect to any Person, any Person directly or indirectly controlling, controlled by or under common control with, such other person. For purposes of this
definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”) when used with respect to any Person, means the possession, directly or indirectly, of the power to
cause the direction of management or policies of such person, whether through the ownership of voting securities, by contract or otherwise. 
 (c) “Applicable Conversion Price” means the Conversion Price in effect at any given time. 
 (d) “Articles of Amendment” means this Articles of Amendment to designate the terms of Mandatorily Convertible Cumulative Participating Preferred Stock, Series B, of Columbia Banking
System, Inc., dated [Date]. 
 (e) “Articles of Incorporation” means the Amended and Restated Articles of
Incorporation of the Corporation, as may be amended from time to time. 
 (f) “Base Price” means $10.00 divided
by [an “Exchange Ratio”, as shall be determined prior to the filing of this Articles of Amendment]. 
 (g)
“Base Value” means 100. 
 (h) “Board of Directors” means the board of directors of the
Corporation. 
 (i) “Business Day” means any day other than a Saturday, Sunday or any other day on which banks
in the State of Washington are generally required or authorized by law to be closed. 
 (j) “Bylaws” means the
Bylaws of the Corporation as may be amended from time to time. 
 (k) “Closing Price” of the Common Stock (or
other relevant capital stock or equity interest) on any date of determination means the closing sale price or, if no closing sale price is reported, the last reported sale price of the shares of the Common Stock (or other relevant capital stock or
equity interest) on the NASDAQ Stock Market on such date. If the Common Stock (or other relevant capital stock or equity interest) is not traded on the NASDAQ Stock Market on any date of determination, the Closing Price of the Common Stock (or other
relevant capital stock or equity interest) on such date of determination means the closing sale price as reported in the composite transactions for the principal U.S. national or regional securities exchange on which the Common Stock (or other
relevant capital stock or equity interest) is so listed or quoted, or, if no closing sale price is reported, the last reported sale price on the principal U.S. national or regional securities exchange on which the Common Stock (or other relevant
capital stock or equity interest) is so listed or quoted, or if the Common Stock (or other relevant capital stock or equity interest) is not so listed or quoted on a U.S. national or regional securities exchange, the last quoted bid price for the
Common Stock (or other relevant capital stock or equity interest) in the over-the-counter market as reported by Pink Sheets LLC or similar organization, or, if that bid price is not available, the market price of the Common Stock (or other relevant
capital stock or equity interest) on that date as determined by a nationally recognized independent investment banking firm retained by the Corporation for this purpose. 

  
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 For purposes of this Articles of Amendment, all references herein to the “Closing
Price” and “last reported sale price” of the Common Stock (or other relevant capital stock or equity interest) on the NASDAQ Stock Market shall be such closing sale price and last reported sale price as reflected on the
website of the NASDAQ Stock Market (http://www.nasdaq.com) and as reported by Bloomberg Professional Service; provided that in the event that there is a discrepancy between the closing sale price or last reported sale price as reflected on
the website of the NASDAQ Stock Market and as reported by Bloomberg Professional Service, the closing sale price and last reported sale price on the website of the NASDAQ Stock Market shall govern. If a Reorganization Event has occurred and
(1) the Exchange Property consists only of shares of common stock, the “Closing Price” shall be based on the closing sale price per share of such common stock; (2) the Exchange Property consists only of cash, the “Closing
Price” shall be the cash amount paid per share; and (3) the Exchange Property consists of securities, cash and/or other property, the “Closing Price” shall be based on the sum, as applicable, of (x) the closing sale price of
such common stock, (y) the cash amount paid per share and (z) the value (as determined by the Board of Directors, acting in good faith, from time to time) of any other securities or property paid to the holders of the Common Stock in
connection with the Reorganization Event. 
 (l) “Common Stock” has the meaning set forth in Section 3.

 (m) “Corporation” means Columbia Banking System, a Washington corporation. 

(n) “Conversion Date” means a Mandatory Conversion Date or a Reorganization Conversion Date. 

(o) “Conversion Price” means for each share of Series B Preferred Stock, the Base Price, subject to adjustment as set
forth herein. 
 (p) “Current Market Price” means, on any date, the average of the daily Closing Price per share
of the Common Stock or other securities on each of the ten (10) consecutive Trading Days preceding the earlier of the day before the date in question and the day before the Ex-Date with respect to the issuance or distribution giving rise to an
adjustment to the Conversion Price pursuant to Section 10. 
 (q) “Dividend Payment Date” means
March 15, June 15, September 15 and December 15 of each year. 
 (r) “Dividend
Period” has the meaning set forth in Section 4(a). 
 (s) “Dividend Record Date” has the meaning
set forth in Section 4(a). 
 (t) “Effective Date” means the date on which shares of the Series B Preferred
Stock are first issued. 
 (u) “Exchange Property” has the meaning set forth in Section 11(a). 

(v) “Exchange Ratio” has the meaning set forth in Section 1(f). 

(w) “Ex-Date” when used with respect to any issuance or distribution, means the first date on which the Common Stock or
other securities trade without the right to receive the issuance or distribution giving rise to an adjustment to the Conversion Price pursuant to Section 10. 
 (x) “Holder” means the Person in whose name the shares of the Series B Preferred Stock are registered, which may be treated by the Corporation as the absolute owner of the shares of
Series B Preferred Stock for the purpose of making payment and settling conversions and for all other purposes. 
 (y)
“Junior Securities” has the meaning set forth in Section 3. 
 (z) “Liquidation
Preference” means, as to the Series B Preferred Stock, $100 per share (as adjusted for any split, subdivision, combination, consolidation, recapitalization or similar event with respect to the Series B Preferred Stock). 

  
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 (aa) “Mandatory Conversion Date” means, with respect to shares of Series B
Preferred Stock of any Holder, the date of the consummation of the transfer by such Holder of Series B Preferred Stock to third parties in a Widely Dispersed Offering; provided, however, that if a Mandatory Conversion Date would otherwise
occur on or after an Ex-Date for an issuance or distribution that results in an adjustment of the Conversion Price pursuant to Section 10 and on or before the record date for such issuance or distribution, such Mandatory Conversion Date shall
instead occur on the first calendar day after the record date for such issuance or distribution. 
 (bb) “Notice of
Mandatory Conversion” has the meaning set forth in Section 9(a). 
 (cc) “Parity Securities” has
the meaning set forth in Section 3. 
 (dd) “Person” has the meaning given to it in Section 3(a)(9) of
the Exchange Act and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act. 
 (ee) “Preferred Stock”
means any and all series of preferred stock of the Corporation, including the Series B Preferred Stock. 
 (ff)
“Regulatory Approvals” means, as to any Holder, to the extent applicable and required to permit such Holder to convert such Holder’s shares of Series B Preferred Stock into Common Stock and to own such Common Stock without such
Holder being in violation of applicable law, rule or regulation, receipt or making of approvals and authorizations of, filings and registrations with, notifications to, or determinations by any U.S. federal, state or foreign governmental authority
or self-regulatory organization, including the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. 
 (gg) “Reorganization Conversion Date” means, with respect to the shares of Series B Preferred Stock of any Holder, the date of the consummation of the Reorganization Event or, if later,
and applicable to such Holder, the first date on which all Regulatory Approvals with respect to the conversion of such shares shall have been obtained or made by such Holder; provided, however, that if a Reorganization Conversion Date
would otherwise occur on or after an Ex-Date for an issuance or distribution that results in an adjustment of the Conversion Price pursuant to Section 10 and on or before the record date for such issuance or distribution, such Reorganization
Conversion Date shall instead occur on the first calendar day after the record date for such issuance or distribution. 
 (hh)
“Reorganization Event” has the meaning set forth in Section 11(a). 
 (ii) “Series A Preferred
Stock” means the Fixed Rate Cumulative Perpetual Preferred Stock, Series A, of the Corporation. 
 (jj) “Series
B Preferred Stock” has the meaning set forth in Section 2. 
 (kk) “Trading Day” means a day on
which the shares of Common Stock: 
 (i) are not suspended from trading on any national or regional securities exchange or
association or over-the-counter market at the close of business; and 
 (ii) have traded at least once on the national or
regional securities exchange or association or over-the-counter market that is the primary market for the trading of the Common Stock. 
 (kk) “Voting Securities” means, at any time, shares of any class of capital stock of the Corporation that are then entitled to vote generally in the election of directors. 

(ll) “Widely Dispersed Offering” means (a) a widespread public distribution, including pursuant to Rule 144 under
the Securities Act of 1933, as amended, (b) a transfer in which no transferee (or group of associated transferees) would receive more than 2% of any class of Voting Securities of the Corporation or (c) a transfer to a transferee that would
control more than 50% of the Voting Securities of the Corporation without any transfer from the transferor. 

  
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 Section 2. Designation and Number of Shares. There is hereby created out of the
authorized and unissued shares of preferred stock of the Corporation a series of preferred stock designated as the “Mandatorily Convertible Cumulative Participating Preferred Stock, Series B” (the “Series B Preferred
Stock”). The number of shares constituting such series shall be 8,782. The Series B Preferred Stock shall have no par value. 
 Section 3. Ranking. The Series B Preferred Stock will, with respect to dividend rights and rights on liquidation, winding-up and dissolution, rank (i) on a parity with Series A Preferred
Stock and each other class or series of equity securities of the Corporation, if any, the terms of which do not expressly provide that such class or series will rank senior or junior to the Series B Preferred Stock as to dividend rights and rights
on liquidation, winding-up and dissolution of the Corporation (collectively referred to as “Parity Securities”), and (ii) senior to the Corporation’s common stock, no par value (the “Common Stock”) and
each other class or series of capital stock outstanding or established after the Effective Date by the Corporation the terms of which expressly provide that it ranks junior to the Series B Preferred Stock as to dividend rights and/or as to rights on
liquidation, winding-up and dissolution of the Corporation (collectively referred to as “Junior Securities”). The Corporation has the right to authorize and/or issue additional shares or classes or series of Junior Securities or
Parity Securities without the consent of the Holders. 
 Section 4. Dividends. 

(a) From and after the Effective Date, Holders shall be entitled to receive, when, as and if declared by the Board of Directors, out of
the funds legally available therefor, dividends in the amount determined as set forth in Section 4(b)(i), and no more. Except as otherwise provided herein, such dividends shall be payable quarterly in arrears (as provided below in this
Section 4(a)), but only when, as and if declared by the Board of Directors, on a “Dividend Payment Date”, commencing on [March] 15, 2013; provided that if any such Dividend Payment Date would otherwise occur on a day that is not a
Business Day, such Dividend Payment Date shall instead be (and any dividend payable on Series B Preferred Stock on such Dividend Payment Date shall instead be payable on) the immediately succeeding Business Day, unless such immediately succeeding
Business Day falls in the next calendar month, in which case such Dividend Payment Date shall instead be (and any such dividend shall instead be payable on) the immediately preceding Business Day. 

Dividends on Series B Preferred Stock shall accrue at any time that dividends on the Series B Preferred Stock are cumulative (whether or
not in any dividend period or periods (each, a “Dividend Period”) there shall be funds of the Corporation legally available for the payment of such dividends and whether or not such dividends are authorized or declared) and accrued
dividends shall accumulate to the extent not paid on the Dividend Payment Date first following the Dividend Period for which they accrue. As used herein, the term “accrued” with respect to dividends includes both accrued and accumulated
dividends. Dividends that are payable on Series B Preferred Stock on any Dividend Payment Date will be payable to holders of record of Series B Preferred Stock as they appear on the stock register of the Corporation on the applicable record date,
which shall be the 15th calendar day immediately preceding such Dividend Payment Date or such other record date fixed by the Board of Directors or any duly authorized committee of the Board of Directors that is not more than 60 nor less than 10 days
prior to such Dividend Payment Date (each, a “Dividend Record Date”). Any such day that is a Dividend Record Date shall be a Dividend Record Date whether or not such day is a Business Day. 

Each Dividend Period shall commence on and include a Dividend Payment Date (other than the initial Dividend Period, which shall commence
on and include the date of original issue of the Series B Preferred Stock, provided that, for any share of Series B Preferred Stock issued after such original issue date, the initial Dividend Period for such shares may commence on and include
such other date as the Board of Directors or a duly authorized committee of the Board of Directors shall determine and publicly disclose) and shall end 

  
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on and include the calendar day preceding the next Dividend Payment Date. Dividends that are payable on Series B Preferred Stock in respect of any Dividend Period shall be computed on the basis
of a 360-day year consisting of twelve 30-day months. The amount of dividends payable on Series B Preferred Stock on any date prior to the end of a Dividend Period, and for the initial Dividend Period, shall be computed on the basis of a 360-day
year consisting of twelve 30-day months, and actual days elapsed over a 30-day month. 
 (b) (i) Subject to
Section 4(a), if the Board of Directors declares and pays a dividend or other distribution in respect of Common Stock (other than with respect to a 382 Rights Plan; provided that Holders of Series B Preferred Stock participate in such
distribution under such 382 Rights Plan as if their shares of Series B Preferred Stock were converted into shares of Common Stock pursuant to Section 8 hereof), then the Board of Directors shall declare and pay to the Holders of the Series B
Preferred Stock, on the same dates on which such dividend or other distribution is declared and paid on the Common Stock, a dividend or other distribution in an amount per share of Series B Preferred Stock equal to the product of (x) the per
share dividend or other distribution declared and paid in respect of each share of Common Stock and (y) the number of shares of Common Stock into which such shares of Series B Preferred Stock is convertible as of the record date for such
dividend or distribution. 
 (ii) Subject to Section 4(a), the dividend rate, and the rate at which dividends shall accrue,
on each share of Series B Preferred Stock, for each Dividend Period, shall be at an annual rate equal to 15%, calculated with respect to the Base Value of a share of Series B Preferred Stock. 

(c) Dividends in arrears on the Series B Preferred Stock in respect of a Dividend Period not declared for payment or to the extent not
paid on the first Dividend Payment Date following the Dividend Period for which they accrue may be declared by the Board of Directors and paid on any date fixed by the Board of Directors, whether or not a Dividend Payment Date, to the holders of
record of Series B Preferred Stock as they appear on the stock register of the Corporation on a record date selected by the Board of Directors, which shall (a) not precede the date the Board of Directors declares the dividend payable and
(b) not be more than 60 days prior to the date the dividend is paid. 
 (d) So long as any share of Series B Preferred
Stock remains outstanding, (1) no dividend or interest shall be declared and paid or set aside for payment and no distribution shall be declared and made or set aside for payment on any Junior Securities (other than a dividend payable solely in
shares of Junior Securities) or trust preferred securities and (2) no shares of Junior Securities or trust preferred securities shall be purchased, redeemed or otherwise acquired by the Corporation, directly or indirectly. So long as any share
of Series B Preferred Stock remains outstanding, the foregoing limitations shall not apply if full dividends on all outstanding shares of Series B Preferred Stock for the then-current dividend period have been paid in full or declared and a sum
sufficient for the payment thereof set aside for all outstanding shares of Series B Preferred Stock. The foregoing limitations shall not apply (i) to redemptions, purchases or other acquisitions of shares of Junior Securities in connection with
any benefit plan or other similar arrangement with or for the benefit of any one or more employees, officers, directors or consultants or in connection with a dividend reinvestment or shareholder stock purchase plan; (ii) to any declaration of
a dividend in connection with any shareholders’ rights plan, or the issuance of rights, stock or other property under any shareholders’ rights plan, or the redemption or repurchase of rights pursuant thereto; and (iii) to conversions
into or exchanges for other Junior Securities and cash solely in lieu of fractional shares of the Junior Securities. 
 (e) So
long as any shares of Series B Preferred Stock remain outstanding, no dividends shall be declared or paid or set aside for payment on any Parity Securities for any period (other than with respect to a 382 Rights Plan) unless full dividends on all
outstanding shares of Series B Preferred Stock for the then-current dividend period have been paid in full or declared and a sum sufficient for the payment thereof set aside for all outstanding shares of Series B Preferred Stock. To the extent the
Corporation declares dividends on the Series B Preferred Stock and on any Parity Securities but does not make full payment of such declared dividends, the Corporation shall allocate the dividend payments on a pro rata basis among the holders of the

  
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shares of Series B Preferred Stock and the holders of any Parity Securities then outstanding. For purposes of calculating the pro rata allocation of partial dividend payments, the Corporation
shall allocate those payments so that the respective amounts of those payments bear the same ratio to each other as all accrued and unpaid dividends per share on the Series B Preferred Stock and all Parity Securities bear to each other. 

(f) At any time that dividends on the Series B Preferred Stock are not cumulative, and if a Conversion Date with respect to any share of
Series B Preferred Stock is prior to the record date for the payment of any dividend on the Common Stock, the Holder of such share of Series B Preferred Stock will not have the right to receive any corresponding dividends on the Series B Preferred
Stock. At any time that dividends on the Series B Preferred Stock are not cumulative, and if the Conversion Date with respect to any share of Series B Preferred Stock is after the Dividend Record Date for any declared dividend and prior to the
payment date for that dividend, the Holder thereof shall receive that dividend on the relevant payment date if such Holder was the Holder of record on the Dividend Record Date for that dividend. Any accrued and unpaid cumulative dividends on the
Series B Preferred Stock shall be payable in cash on the Conversion Date. 
 Section 5. Liquidation. 

(a) In the event the Corporation voluntarily or involuntarily liquidates, dissolves or winds up, the Holders at the time shall be
entitled to receive, for each share of the Series B Preferred Stock, the sum of (i) liquidating distributions in an amount equal to the Liquidation Preference, plus any accrued but unpaid dividends thereon to and including the date of such
liquidation, out of assets legally available for distribution to the Corporation’s shareholders, before any distribution of assets is made to the holders of the Common Stock or any other Junior Securities and (ii) after all distributions
have been made to Holders pursuant to clause (i) of this sentence, liquidating distributions, as determined by the Corporation (or the trustee or other Person or Persons administering its liquidation, dissolution or winding-up in accordance
with applicable law) as of a date that is at least ten (10) Business Days before the first liquidating distribution is made on Series B Preferred Stock, that would be made on the number of shares of Common Stock equal to the Base Value divided
by the Applicable Conversion Price as if all of the outstanding shares of Series B Preferred Stock had been converted into Common Stock on such date of determination, out of assets legally available for distribution to the Corporation’s
shareholders, simultaneous with any distribution of assets made to the holders of the Common Stock. The Corporation shall notify each Holder of the amount it has calculated pursuant to this Section 5 by first-class mail, postage prepaid,
addressed to the Holders at their respective last addresses appearing on the books of the Corporation. Such mailing shall be made not later than five Business Days before the first liquidating distribution is made on shares of Series B Preferred
Stock. 
 (b) In the event the assets of the Corporation available for distribution to shareholders upon any liquidation,
dissolution or winding-up of the affairs of the Corporation, whether voluntary or involuntary, shall be insufficient to pay in full the amounts payable with respect to all outstanding shares of the Series B Preferred Stock and the corresponding
amounts payable on any Parity Securities, Holders and the holders of such Parity Securities shall share ratably in any distribution of assets of the Corporation in proportion to the full respective liquidating distributions to which they would
otherwise be respectively entitled. 
 (c) For purposes of this Section 5, the Corporation’s consolidation or merger
with or into any other entity, the consolidation or merger of any other entity with or into the Corporation, or the sale of all or substantially all of the Corporation’s property or business will not constitute a liquidation, dissolution or
winding-up of the Corporation. 
 Section 6. Maturity. The Series B Preferred Stock shall be perpetual unless
converted in accordance with this Articles of Amendment. 
 Section 7. Redemptions. 

(a) Redemption. The shares of Series B Preferred Stock are not redeemable by the Corporation. 

  
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 (b) No Sinking Fund. The Series B Preferred Stock will not be subject to any
mandatory redemption, sinking fund or other similar provisions. 
 Section 8. Conversion. 

(a) Effective as of the close of business on the Mandatory Conversion Date with respect to the shares of Series B Preferred Stock of a
Holder, such Holder’s shares of Series B Preferred Stock shall automatically convert into shares of Common Stock as set forth below. The number of shares of Common Stock into which a share of Series B Preferred Stock shall be convertible shall
be determined by dividing the Base Value by the Applicable Conversion Price (subject to the conversion procedures of Section 9 hereof), provided that cash will be paid in lieu of fractional shares in accordance with Section 13
hereof. 
 (b) Notwithstanding anything herein to the contrary, in no event shall a transferee of a Widely Disbursed Offering be
entitled to receive shares of Common Stock upon any conversion of Series B Preferred Stock pursuant to this Section 8 or Section 11 to the extent (but only to the extent) that at such time the transferee Holder does not have any required
Regulatory Approvals. If any delivery of shares of Common Stock owed to a transferee upon conversion of Series B Preferred Stock is not made, in whole or in part, as a result of the foregoing limitations, the Corporation’s obligation to make
such delivery shall not be extinguished and the Corporation shall, at the option of the transferee Holder, deliver such shares as promptly as practicable after such converting Holder gives notice to the Corporation that the requirements of this
Section 8(b) are met. 
 Section 9. Conversion Procedures. 

(a) Each Holder shall promptly provide written notice to the Corporation of its intent to transfer its Series B Preferred Stock in a
Widely Dispersed Offering and, promptly upon receipt of each required Regulatory Approval applicable to the transferee, such transferee shall provide written notice to the Corporation of such receipt. Upon occurrence of the Mandatory Conversion Date
with respect to shares of any Holder, the Corporation shall provide notice of such conversion to such Holder (such notice a “Notice of Mandatory Conversion”). In addition to any information required by applicable law or regulation,
the Notice of Mandatory Conversion with respect to such Holder shall state, as appropriate: 
 (i) the Mandatory Conversion Date
applicable to such Holder; 
 (ii) the number of shares of Common Stock to be issued upon conversion of each share of Series B
Preferred Stock held of record by such Holder and subject to such mandatory conversion; and 
 (iii) the place or places where
certificates for shares of Series B Preferred Stock held of record by such Holder are to be surrendered for issuance of certificates representing shares of Common Stock. 
 (b) In the event that such Holder fails to surrender the required certificates for shares of Series B Preferred Stock held of record by such Holder within 30 days after delivery of the Mandatory
Conversion Date, the Corporation shall, by written notice to such Holder, indicate which shares have been converted pursuant to Section 8. 
 (c) Effective immediately prior to the close of business on any Conversion Date with respect to any share of Series B Preferred Stock, dividends shall no longer be declared on any such converted share of
Series B Preferred Stock and such share of Series B Preferred Stock shall cease to be outstanding, in each case, subject to the right of the Holder to receive any accrued and unpaid or declared and unpaid dividends on such share to the extent
provided in Section 4(f) and any other payments to which such Holder is otherwise entitled pursuant to Section 8, Section 11 or Section 13 hereof, as applicable. 

(d) No allowance or adjustment, except pursuant to Section 10, shall be made in respect of dividends payable to holders of the
Common Stock of record as of any date prior to the close of business on any Conversion Date with respect to any share of Series B Preferred Stock. Prior to the close of business on the Conversion Date with respect to any share of Series B Preferred
Stock, shares of Common Stock issuable 

  
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upon conversion thereof, or other securities issuable upon conversion of, such share of Series B Preferred Stock shall not be deemed outstanding for any purpose, and the Holder thereof shall have
no rights with respect to the Common Stock or other securities issuable upon conversion (including voting rights, rights to respond to tender offers for the Common Stock or other securities issuable upon conversion and rights to receive any
dividends or other distributions on the Common Stock or other securities issuable upon conversion) by virtue of holding such share of Series B Preferred Stock. 
 (e) Shares of Series B Preferred Stock duly converted in accordance with Section 8 or Section 11 of this Articles of Amendment will resume the status of authorized and unissued preferred stock,
undesignated as to series and available for future issuance. The Corporation may, from time to time, take such appropriate action as may be necessary to reduce the authorized number of shares of Series B Preferred Stock; provided,
however, that the Corporation shall not take any such action if such action would reduce the authorized number of shares of Series B Preferred Stock below the sum of (i) the number of shares of Series B Preferred Stock then outstanding
and (ii) the number of shares of Series B Preferred Stock issuable upon the exercise of any warrants then outstanding. 

(f) The Person or Persons entitled to receive the Common Stock and/or cash, securities or other property issuable upon conversion of
Series B Preferred Stock shall be treated for all purposes as the record holder(s) of such shares of Common Stock and/or securities as of the close of business on the applicable Conversion Date with respect thereto. In the event that a Holder shall
not by written notice designate the name in which shares of Common Stock and/or cash, securities or other property (including payments of cash in lieu of fractional shares) to be issued or paid upon conversion of shares of Series B Preferred Stock
should be registered or paid or the manner in which such shares should be delivered, the Corporation shall be entitled to register and deliver such shares, and make such payment, in the name of the Holder and in the manner shown on the records of
the Corporation. 
 (g) On the Mandatory Conversion Date with respect to any share of Series B Preferred Stock, certificates
representing shares of Common Stock shall be issued and delivered to the Holder thereof or such Holder’s designee upon presentation and surrender of the certificate evidencing the Series B Preferred Stock to the Corporation and, if required,
the furnishing of appropriate endorsements and transfer documents and the payment of all transfer and similar taxes. 

Section 10. Anti-Dilution Adjustments. 
 (a) The Conversion Price shall be subject to the following adjustments. 
 (i)
Stock Dividends and Distributions. If the Corporation pays dividends or other distributions on the Common Stock in shares of Common Stock, then the Conversion Price in effect immediately prior to the Ex-Date for such dividend or distribution
will be multiplied by the following fraction: 

OS0 

 
 OS1 

Where, 
  

			
	
OS0 =
	  	the number of shares of Common Stock outstanding immediately prior to the Ex-Date for such dividend or distribution.
		
	 OS1 =
	  	the sum of the number of shares of Common Stock outstanding immediately prior to the Ex-Date for such dividend or distribution plus the total number of shares of Common Stock
constituting such dividend or distribution.

  
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 For the purposes of this clause (i), the number of shares of Common Stock at the time outstanding shall not
include shares acquired by the Corporation. If any dividend or distribution described in this clause (i) is declared but not so paid or made, the Conversion Price shall be readjusted, effective as of the date the Board of Directors publicly
announces its decision not to make such dividend or distribution, to such Conversion Price that would be in effect if such dividend or distribution had not been declared. 
 (ii) Subdivisions, Splits and Combination of the Common Stock. If the Corporation subdivides, splits or combines the shares of Common Stock, then the Conversion Price in effect immediately prior to
the effective date of such share subdivision, split or combination will be multiplied by the following fraction: 
 OS0

  

OS1 
 Where, 

 

			
	
OS0 =
	  	the number of shares of Common Stock outstanding immediately prior to the effective date of such share subdivision, split or combination.
		
	 OS1 =
	  	the number of shares of Common Stock outstanding immediately after the opening of business on the effective date of such share subdivision, split or combination.

 For the purposes of this clause (ii), the number of shares of Common Stock at the time outstanding shall not include
shares acquired by the Corporation. If any subdivision, split or combination described in this clause (ii) is announced but the outstanding shares of Common Stock are not subdivided, split or combined, the Conversion Price shall be readjusted,
effective as of the date the Board of Directors publicly announces its decision not to subdivide, split or combine the outstanding shares of Common Stock, to such Conversion Price that would be in effect if such subdivision, split or combination had
not been announced. 
 (iii) Issuance of Stock Purchase Rights. If the Corporation issues to all or substantially all
holders of the shares of Common Stock rights or warrants (other than rights or warrants issued pursuant to a dividend reinvestment plan or share purchase plan or other similar plans) entitling them, for a period of up to 45 days from the date of
issuance of such rights or warrants, to subscribe for or purchase the shares of Common Stock at less than the Current Market Price on the date fixed for the determination of shareholders entitled to receive such rights or warrants, then the
Conversion Price in effect immediately prior to the Ex-Date for such distribution will be multiplied by the following fraction: 
 OS0 + Y

  
 OS0 + X

 Where, 
  

			
	
OS0 =
	  	the number of shares of Common Stock outstanding immediately prior to the Ex-Date for such distribution.
		
	 X =
	  	the total number of shares of Common Stock issuable pursuant to such rights or warrants.
		
	 Y =
	  	the number of shares of Common Stock equal to the aggregate price payable to exercise such rights or warrants divided by the Current Market Price on the date fixed for the
determination of shareholders entitled to receive such rights or warrants.

  
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 For the purposes of this clause (iii), the number of shares of Common Stock at the time outstanding shall
not include shares acquired by the Corporation. In the event that such rights or warrants described in this clause (iii) are not so issued, the Conversion Price shall be readjusted, effective as of the date the Board of Directors publicly
announces its decision not to issue such rights or warrants, to the Conversion Price that would then be in effect if such issuance had not been declared. To the extent that such rights or warrants are not exercised prior to their expiration or
shares of Common Stock are otherwise not delivered pursuant to such rights or warrants upon the exercise of such rights or warrants, the Conversion Price shall be readjusted to such Conversion Price that would then be in effect had the adjustment
made upon the issuance of such rights or warrants been made on the basis of the delivery of only the number of shares of Common Stock actually delivered. In determining the aggregate offering price payable for such shares of Common Stock, there
shall be taken into account any consideration received for such rights or warrants and the value of such consideration (if other than cash, to be determined by the Board of Directors). 

(iv) Debt or Asset Distributions. If the Corporation distributes to all or substantially all holders of shares of Common Stock
evidences of indebtedness, shares of capital stock, securities, cash or other assets (excluding any dividend or distribution referred to in clause (i) above, any rights or warrants referred to in clause (iii) above, any dividend or
distribution paid exclusively in cash, any consideration payable in connection with a tender or exchange offer made by the Corporation or any of its subsidiaries, and any dividend of shares of capital stock of any class or series, or similar equity
interests, of or relating to a subsidiary or other business unit in the case of certain spin-off transactions as described below), then the Conversion Price in effect immediately prior to the Ex-Date for such distribution will be multiplied by the
following fraction: 
 SP0 – FMV 

 
 SP0  
           
 Where, 

 

			
	
SP0 =
	  	the Current Market Price per share of Common Stock on the Trading Day immediately preceding the Ex-Date.
		
	 FMV =
	  	the fair market value of the portion of the distribution applicable to one share of Common Stock on such date as determined by the Board of Directors, provided that, if
“FMV” as set forth above is equal to or greater than “SP0” as set forth above, in lieu of the foregoing adjustment, adequate provision shall be made so that each Holder shall receive on the date on which such distribution is made to holders of Common
Stock, for each share of Preferred Stock, the amount of such distribution such Holder would have received had such holder owned a number of shares of Common Stock equal to the Base Value divided by the Applicable Conversion Price on the Ex-Date for
such distribution.

 In a “spin-off”, where the Corporation makes a distribution to all holders of shares of Common Stock consisting
of capital stock of any class or series, or similar equity interests of, or relating to, a subsidiary or other business unit, the Conversion Price will be adjusted on the 15th Trading Day after the effective date of the distribution by multiplying
such Conversion Price in effect immediately prior to such 15th Trading Day by the following fraction: 

MP0             

 
 MP0 + MPS 

  
 10 

 Where, 
  

			
	
MP0 =
	  	the average of the Closing Prices of the Common Stock over the first ten Trading Days commencing on and including the fifth Trading Day following the effective date of such
distribution.
		
	
MPS =
	  	the average of the Closing Prices of the capital stock or equity interests representing the portion of the distribution applicable to one share of Common Stock over the first ten
Trading Days commencing on and including the fifth Trading Day following the effective date of such distribution, or, if not traded on a national or regional securities exchange or over-the-counter market, the fair market value of the capital stock
or equity interests representing the portion of the distribution applicable to one share of Common Stock on such date as determined by the Board of Directors.

 In the event that such distribution described in this clause (iv) is not so paid or made, the Conversion Price shall
be readjusted, effective as of the date the Board of Directors publicly announces its decision not to pay or make such dividend or distribution, to the Conversion Price that would then be in effect if such dividend or distribution had not been
declared. 
 (v) Cash Distributions. If the Corporation makes a distribution consisting exclusively of cash to all
holders of the Common Stock, excluding (a) any cash dividend on the Common Stock to the extent a corresponding cash dividend is paid on the Series B Preferred Stock pursuant to Section 4(b), (b) any cash that is distributed in a
Reorganization Event or as part of a “spin-off” referred to in clause (iv) above, (c) any dividend or distribution in connection with the Corporation’s liquidation, dissolution or winding-up, and (d) any consideration
payable in connection with a tender or exchange offer made by the Corporation or any of its subsidiaries, then in each event, the Conversion Price in effect immediately prior to the Ex-Date for such distribution will be multiplied by the following
fraction: 
 SP0 – DIV 

 
 SP0             
     
 Where, 

 

			
	
SP0 =
	  	the Closing Price per share of Common Stock on the Trading Day immediately preceding the Ex-Date.
		
	 DIV =
	  	 the amount per share of Common Stock of the cash distribution, as determined pursuant to the introduction to this

paragraph (v).

 In the event that any distribution described in this clause (v) is not so made, the Conversion Price
shall be readjusted, effective as of the date the Board of Directors publicly announces its decision not to pay such distribution, to the Conversion Price which would then be in effect if such distribution had not been declared. 

Notwithstanding the foregoing, if “DIV” as set forth above is equal to or greater than “SP0” as set forth above, in lieu of the foregoing adjustment, adequate
provision shall be made so that each Holder shall have the right to receive on the date on which the relevant cash dividend or distribution is distributed to holders of Common Stock, for each share of Preferred Stock, the amount of cash such Holder
would have received had such Holder owned a number of shares of Common Stock equal to the Base Value divided by the Applicable Conversion Price on the Ex-Date for such distribution. 

  
 11 

 (vi) Self Tender Offers and Exchange Offers. If the Corporation or any of its
subsidiaries successfully completes a tender or exchange offer for the Common Stock where the cash and the value of any other consideration included in the payment per share of the Common Stock exceeds the Closing Price per share of the Common Stock
on the Trading Day immediately succeeding the expiration of the tender or exchange offer, then the Conversion Price in effect at the close of business on such immediately succeeding Trading Day will be multiplied by the following fraction:

 OS0 x SP0             

 
 AC + (SP0 x OS1)

 Where, 
  

			
		
	
SP0 =
	  	the Closing Price per share of Common Stock on the Trading Day immediately succeeding the expiration of the tender or exchange offer.
		
	
OS0 =
	  	the number of shares of Common Stock outstanding immediately prior to the expiration of the tender or exchange offer, including any shares validly tendered and not
withdrawn.
		
	 OS1 =
	  	the number of shares of Common Stock outstanding immediately after the expiration of the tender or exchange offer.
		
	 AC =
	  	the aggregate cash and fair market value of the other consideration payable in the tender or exchange offer, as determined by the Board of Directors.

 In the event that the Corporation, or one of its subsidiaries, is obligated to purchase shares of Common
Stock pursuant to any such tender offer or exchange offer, but the Corporation, or such subsidiary, is permanently prevented by applicable law from effecting any such purchases, or all such purchases are rescinded, then the Conversion Price shall be
readjusted to be such Conversion Price that would then be in effect if such tender offer or exchange offer had not been made. 

(vii) Rights Plans. To the extent that the Corporation has a rights plan in effect with respect to the Common Stock on the
Mandatory Conversion Date, upon conversion of any shares of the Series B Preferred Stock, Holders will receive, in addition to the shares of Common Stock, the rights under the rights plan, unless, prior to the Mandatory Conversion Date, the rights
have separated from the shares of Common Stock, in which case the Conversion Price will be adjusted at the time of separation as if the Corporation had made a distribution to all holders of the Common Stock as described in clause (iv) above,
subject to readjustment in the event of the expiration, termination or redemption of such rights. 
 (b) The Corporation may
make such decreases in the Conversion Price, in addition to any other decreases required by this Section 10, if the Board of Directors deems it advisable to avoid or diminish any income tax to holders of the Common Stock resulting from any
dividend or distribution of shares of Common Stock (or issuance of rights or warrants to acquire shares of Common Stock) or from any event treated as such for income tax purposes or for any other reason. 

(c) (i) All adjustments to the Conversion Price shall be calculated to the nearest 1/10 of a cent. No adjustment in the Conversion
Price shall be required if such adjustment would be less than $0.01; provided that any adjustments which by reason of this subparagraph are not required to be made shall be carried 

  
 12 

 
forward and taken into account in any subsequent adjustment; provided further that on the Mandatory Conversion Date adjustments to the Conversion Price will be made with respect to any
such adjustment carried forward and which has not been taken into account before such date. 
 (ii) No adjustment to the
Conversion Price shall be made if Holders may participate in the transaction that would otherwise give rise to an adjustment, as a result of holding the Series B Preferred Stock (including without limitation pursuant to Section 4(b) hereof),
without having to convert the Series B Preferred Stock, as if they held the full number of shares of Common Stock into which a share of the Series B Preferred Stock may then be converted. No single event shall be subject to adjustment under more
than one subsection of this Section 10 so as to result in duplication. 
 (iii) The Applicable Conversion Price shall not
be adjusted: 
 (A) with respect to a 382 Rights Plan; provided that Holders of Series B Preferred Stock participate in
such distribution under such 382 Rights Plan as if their shares of Series B Preferred Stock were converted into shares of Common Stock pursuant to Section 8 hereof; 
 (B) upon the issuance of any shares of Common Stock pursuant to any present or future plan providing for the reinvestment of dividends or interest payable on the Corporation’s securities and the
investment of additional optional amounts in shares of Common Stock under any such plan; 
 (C) upon the issuance of any shares
of Common Stock or rights or warrants to purchase those shares pursuant to any present or future employee, director or consultant benefit plan or program of or assumed by the Corporation or any of its subsidiaries; 

(D) upon the issuance of any shares of Common Stock pursuant to any option, warrant, right or exercisable, exchangeable or convertible
security outstanding as of the date shares of the Series B Preferred Stock were first issued and not substantially amended thereafter; 
 (E) for a change in the par value or no par value of Common Stock; or 
 (F) for
accrued and unpaid dividends on the Series B Preferred Stock. 
 (d) Whenever the Conversion Price is to be adjusted in
accordance with Section 10(a) or Section 10(b), the Corporation shall: (i) compute the Conversion Price in accordance with Section 10(a) or Section 10(b), taking into account the one cent threshold set forth in
Section 10(c) hereof; (ii) as soon as practicable following the occurrence of an event that requires an adjustment to the Conversion Price pursuant to Section 10(a) or Section 10(b), taking into account the one percent threshold
set forth in Section 10(c) hereof (or if the Corporation is not aware of such occurrence, as soon as practicable after becoming so aware), provide, or cause to be provided, a written notice to the Holders of the occurrence of such event; and
(iii) as soon as practicable following the determination of the revised Conversion Price in accordance with Section 10(a) or Section 10(b) hereof, provide, or cause to be provided, a written notice to the Holders setting forth in
reasonable detail the method by which the adjustment to the Conversion Price was determined and setting forth the revised Conversion Price. 
 Section 11. Reorganization Events. 
 (a) In the event that, prior to
the Mandatory Conversion Date with respect to the shares of Series B Preferred Stock of any Holder, there occurs: 
 (i) any
consolidation, merger or other similar business combination of the Corporation with or into another Person, in each case pursuant to which the Common Stock will be converted into cash, securities or other property of the Corporation or another
Person; 

  
 13 

 (ii) any sale, transfer, lease or conveyance to another Person of all or substantially all
of the property and assets of the Corporation, in each case pursuant to which the Common Stock will be converted into cash, securities or other property of the Corporation or another Person; 

(iii) any reclassification of the Common Stock into securities including securities other than the Common Stock; or 

(iv) any statutory exchange of the outstanding shares of Common Stock for securities of another Person (other than in connection with a
merger or acquisition); 
 (any such event specified in this Section 11(a), a “Reorganization Event”) then,
subject to Section 8(b), each share of such Holder’s Series B Preferred Stock outstanding immediately prior to such Reorganization Event shall remain outstanding but each Holder shall have the right, at its option, subject to the terms and
provisions of this Section 11, to convert any or all of such Holder’s shares of Series B Preferred Stock, effective as of the close of business on the Reorganization Conversion Date (with the term “Regulatory Approval” applied
for such purpose, as applicable, to the surviving entity in such Reorganization Event and its securities included in the Exchange Property (as defined below)), into the type and amount of securities, cash and other property receivable in such
Reorganization Event by the Holder (other than a counterparty to the Reorganization Event or an Affiliate of such counterparty) in respect of each such share of Series B Preferred Stock equal to the number of shares of Common Stock into which one
share of Series B Preferred Stock would then be convertible assuming that a Mandatory Conversion Date in respect of such shares of Series B Preferred Stock had occurred (such securities, cash and other property, the “Exchange
Property”). 
 (b) The conversion right of a Holder of Series B Preferred Stock pursuant to this Section 11 shall
be exercised by the Holder by the surrender of the certificates representing the shares to be converted to the Corporation or to the transfer agent for the Corporation, accompanied by a notice of reorganization conversion, no later than the tenth
day following the date of delivery to each Holder of a notice from the Corporation of the expected consummation or the consummation of a Reorganization Event. 
 (i) Immediately prior to the close of business on the Reorganization Conversion Date, each converting Holder of Series B Preferred Stock shall be deemed to be the Holder of record of the number of shares
of Common Stock deemed to be issuable upon conversion of such Holder’s Series B Preferred Stock in accordance with clause (i) or (ii) of Section 11(a), notwithstanding that the share register of the Corporation shall then be
closed or that certificates representing such Common Stock shall not then be actually delivered to such Person. 
 (ii) Upon
notice from the Corporation, each Holder of Series B Preferred Stock so converted shall promptly surrender to the Corporation or its transfer agent certificates representing the shares so converted (if not previously delivered), duly endorsed in
blank or accompanied by proper instruments of transfer. 
 (c) In the event that holders of the shares of Common Stock have the
opportunity to elect the form of consideration to be received in connection with any Reorganization Event, the Holders shall be entitled to the same right of election as holders of the shares of Common Stock with respect to the form of consideration
to be received pursuant to this Section 11. 
 (d) The above provisions of this Section 11 shall similarly apply to
successive Reorganization Events and the provisions of Section 10 shall apply to any shares of capital stock of the Corporation (or any successor) received by the holders of the Common Stock in any such Reorganization Event. 

(e) The Corporation (or any successor) shall, within seven days of the consummation of any Reorganization Event, provide written notice
to the Holders of such consummation of such event and of the kind and amount of the cash, securities or other property that constitutes the Exchange Property. Failure to deliver such notice shall not affect the operation of this Section 11.

  
 14 

 (f) The Corporation shall not enter into any agreement for a transaction constituting a
Reorganization Event unless such agreement provides for or does not interfere with or prevent (as applicable) conversion of the Series B Preferred Stock into the Exchange Property in a manner that is consistent with and gives effect to this
Section 11. 
 Section 12. Voting Rights. 

(a) Holders will not have any voting rights, including the right to elect any directors, except (i) voting rights, if any, required
by law, and (ii) voting rights, if any, described in this Section 12. 
 (b) So long as any shares of Series B
Preferred Stock are outstanding, the vote or consent of the Holders of three-quarters of the shares of Series B Preferred Stock at the time outstanding voting as a single class with all other classes and series of Parity Securities having similar
voting rights then outstanding, given in person or by proxy, either in writing without a meeting or by vote at any meeting called for the purpose, will be necessary for effecting or validating, whether or not such approval is required by Washington
law: 
 (i) any amendment or alteration (including by means of a merger, consolidation or otherwise) of the Articles of
Incorporation to authorize or create, or increase the authorized amount of, any shares of, or any securities convertible into shares of, any class or series of the Corporation’s capital stock ranking prior to the Series B Preferred Stock in the
payment of dividends or in the distribution of assets on any liquidation, dissolution or winding-up of the Corporation; 
 (ii)
any amendment, alteration or repeal (including by means of a merger, consolidation or otherwise) of any provision of the Articles of Incorporation (including this Articles of Amendment) or the Bylaws that would significantly and adversely alter or
change the terms, rights, preferences or privileges of the Series B Preferred Stock; or 
 (iii) the consummation of a binding
share exchange or reclassification involving the Series B Preferred Stock or a merger or consolidation of the Corporation with another entity; 

provided, however, that a Holder will have no right to vote under this provision or under Washington law if such voting rights arise due to
a Reorganization Event if (1) the Corporation shall have complied with Section 11(f) or (2) in each case (a) the Series B Preferred Stock remains outstanding or, in the case of any merger or consolidation with respect to which
the Corporation is not the surviving or resulting entity, is converted into or exchanged for preference securities of the surviving or resulting entity or its ultimate parent, that is an entity organized and existing under the laws of the United
States of America, any state thereof or the District of Columbia, and (b) such Series B Preferred Stock remaining outstanding or such preference securities, as the case may be, have such rights (including, but not limited to, the right of
conversion), preferences, privileges and voting powers that, taken as a whole, as are not materially less favorable to the Holders thereof than the rights, preferences, privileges and voting powers of the Series B Preferred Stock, taken as a whole,
immediately prior to the Reorganization Event; provided further, that any increase in the amount of the authorized Preferred Stock or any securities convertible into Preferred Stock or the creation and issuance, or an increase in the
authorized or issued amount, of any series of Preferred Stock or any securities convertible into preferred stock ranking equally with and/or junior to the Series B Preferred Stock with respect to the payment of dividends (whether such dividends are
cumulative or non-cumulative) and/or the distribution of assets upon the Corporation’s liquidation, dissolution or winding-up will not, in and of itself, be deemed to affect the voting powers, preferences or special rights of the Series B
Preferred Stock and, notwithstanding any provision of Washington law, Holders will have no right to vote solely by reason of such an increase, creation or issuance. 
 Each holder of Series B Preferred Stock will have one vote per share on any matter on which holders of Series B Preferred Stock are entitled to vote, including any action by written consent. 

  
 15 

 If an amendment, alteration, repeal, share exchange, reclassification, merger or consolidation described
above would adversely affect one or more but not all series of Preferred Stock with like voting rights (including the Series B Preferred Stock for this purpose), then only the series affected and entitled to vote shall vote as a class in lieu of all
such series of Preferred Stock. 
 (c) Notwithstanding the foregoing, Holders shall not have any voting rights if, at or prior
to the effective time of the act with respect to which such vote would otherwise be required, all outstanding shares of Series B Preferred Stock shall have been converted into shares of Common Stock. 

Section 13. Fractional Shares. 
 (a) No fractional shares of Common Stock will be issued as a result of any conversion of shares of Series B Preferred Stock. 
 (b) In lieu of any fractional share of Common Stock otherwise issuable in respect of any mandatory conversion pursuant to Section 8 hereof, the Corporation shall pay an amount in cash (computed to
the nearest cent) equal to the same fraction of the Closing Price of the Common Stock determined as of the second Trading Day immediately preceding the Mandatory Conversion Date. 

(c) If more than one share of the Series B Preferred Stock is surrendered for conversion at one time by or for the same Holder, the
number of full shares of Common Stock issuable upon conversion thereof shall be computed on the basis of the aggregate number of shares of the Series B Preferred Stock so surrendered. 

Section 14. Reservation of Common Stock. 
 (a) The Corporation shall at all times thereafter reserve and keep available out of its authorized and unissued Common Stock or shares acquired by the Corporation, solely for issuance upon the conversion
of shares of Series B Preferred Stock as provided in this Articles of Amendment, free from any preemptive or other similar rights, such number of shares of Common Stock as shall from time to time be issuable upon the conversion of all the shares of
Series B Preferred Stock then outstanding, assuming that the Applicable Conversion Price equaled the Base Price. 
 (b)
Notwithstanding the foregoing, the Corporation shall be entitled to deliver upon conversion of shares of Series B Preferred Stock, as herein provided, shares of Common Stock acquired by the Corporation (in lieu of the issuance of authorized and
unissued shares of Common Stock), so long as any such acquired shares are free and clear of all liens, charges, security interests or encumbrances (other than liens, charges, security interests and other encumbrances created by the Holders).

 (c) All shares of Common Stock delivered upon conversion of the Series B Preferred Stock shall be duly authorized, validly
issued, fully paid and non-assessable, free and clear of all liens, claims, security interests and other encumbrances (other than liens, charges, security interests and other encumbrances created by the Holders). 

(d) Prior to the delivery of any securities that the Corporation shall be obligated to deliver upon conversion of the Series B Preferred
Stock, the Corporation shall use its reasonable best efforts to comply with all federal and state laws and regulations thereunder requiring the registration of such securities with, or any approval of or consent to the delivery thereof by, any
governmental authority. 
 (e) The Corporation hereby covenants and agrees that, if at any time the Common Stock shall be listed
on the NASDAQ Stock Market or any other national securities exchange or automated quotation system, the Corporation will, if permitted by the rules of such exchange or automated quotation system, list and keep listed, so long as the Common Stock
shall be so listed on such exchange or automated quotation system, all the Common Stock issuable upon conversion of the Series B Preferred Stock. 

  
 16 

 Section 15. Replacement Certificates. The Corporation shall replace any
mutilated certificate at the Holder’s expense upon surrender of that certificate to the Corporation. The Corporation shall replace certificates that become destroyed, stolen or lost at the Holder’s expense upon delivery to the Corporation
of satisfactory evidence that the certificate has been destroyed, stolen or lost, together with any indemnity that may be required by the Corporation. 
 Section 16. Miscellaneous. 
 (a) All notices or communications in
respect of Series B Preferred Stock shall be sufficiently given if given in writing and delivered in person or by first class mail, postage prepaid, or if given in such other manner as may be permitted in this Certificate of Designations, in the
Articles of Incorporation or Bylaws or by applicable law. Notwithstanding the foregoing, if shares of Series B Preferred Stock are issued in book-entry form through The Depository Trust Corporation or any similar facility, such notices may be given
to the holders of Series B Preferred Stock in any manner permitted by such facility. 
 (b) The Corporation shall pay any and
all stock transfer and documentary stamp taxes that may be payable in respect of any issuance or delivery of shares of Series B Preferred Stock or shares of Common Stock or other securities issued on account of Series B Preferred Stock pursuant
hereto or certificates representing such shares or securities. The Corporation shall not, however, be required to pay any such tax that may be payable in respect of any transfer involved in the issuance or delivery of shares of Series B Preferred
Stock or Common Stock or other securities in a name other than that in which the shares of Series B Preferred Stock with respect to which such shares or other securities are issued or delivered were registered, or in respect of any payment to any
Person other than a payment to the registered holder thereof, and shall not be required to make any such issuance, delivery or payment unless and until the Person otherwise entitled to such issuance, delivery or payment has paid to the Corporation
the amount of any such tax or has established, to the satisfaction of the Corporation, that such tax has been paid or is not payable. 
 (c) No share of Series B Preferred Stock shall have any rights of preemption whatsoever as to any securities of the Corporation, or any warrants, rights or options issued or granted with respect thereto,
regardless of how such securities, or such warrants, rights or options, may be designated, issued or granted. 
 (d) The shares
of Series B Preferred Stock shall not have any voting powers, preferences or relative, participating, optional or other special rights, or qualifications, limitations or restrictions thereof, other than as set forth herein or in the Articles of
Incorporation or as provided by applicable law. 

  
 17Employment Agreement for Robert D. Sznewajs

 EXHIBIT 10.6 

 
  

 
 EMPLOYMENT AGREEMENT

 FOR 
 ROBERT D. SZNEWAJS 
 Effective Date: January 1, 2011 

West Coast Bancorp 
 and 
 West Coast Bank 

 
  

 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 SECTION 1
	 	THE PARTIES	  	 	1	  
	 SECTION 2
	 	TERM	  	 	1	  
	 SECTION 3
	 	POSITION	  	 	1	  
	 SECTION 4
	 	DUTIES	  	 	1	  
	 SECTION 5
	 	TIME COMMITMENT; OUTSIDE ACTIVITIES	  	 	2	  
	 SECTION 6
	 	COMPENSATION	  	 	2	  
	 SECTION 7
	 	GROUNDS FOR TERMINATION OF EMPLOYMENT	  	 	4	  
	 SECTION 8
	 	PAYMENTS UPON TERMINATION	  	 	7	  
	 SECTION 9
	 	SEVERANCE BENEFITS	  	 	7	  
	 SECTION 10
	 	TERMINATION UPON CHANGE IN CONTROL	  	 	11	  
	 SECTION 11
	 	EFFECT OF TERMINATION ON OTHER POSITIONS	  	 	12	  
	 SECTION 12
	 	NO MITIGATION OR OFFSET	  	 	12	  
	 SECTION 13
	 	CONFIDENTIALITY	  	 	12	  
	 SECTION 14
	 	ASSISTANCE WITH CLAIMS	  	 	13	  
	 SECTION 15
	 	GENERAL PROVISIONS	  	 	14	  
	 SIGNATURES
	 		  	 	16	  

 EMPLOYMENT AGREEMENT 

Effective Date: January 1, 2011 
  

	1.	THE PARTIES. This Employment Agreement (the “Agreement”) is made by and among:

  

	 	(a)	WEST COAST BANCORP (“Bancorp”) and WEST COAST BANK (the “Bank”), (collectively the “Company”); and 

 

	 	(b)	ROBERT D. SZNEWAJS (the “Executive”). 

  

	2.	TERM. The Company employs the Executive for a three-year term beginning effective as of January 1, 2011, and
expiring on December 31, 2013, subject to earlier termination under the terms and conditions of this Agreement. 

  

	3.	POSITION. 

  

	 	(a)	CEO and President. The Executive’s title will be Chief Executive Officer and President of Bancorp. At the discretion of the Board of Directors of
Bancorp, the Executive shall also be the Chief Executive Officer and/or President of the Bank. 

  

	 	(b)	Directorship. Subject to shareholder approval as required, the Executive will serve as a director of: 

 

	 	(1)	Bancorp and the Bank; and 

  

	 	(2)	Such of their subsidiaries and affiliated companies as the Company may designate from time to time. 

 

	4.	DUTIES. The Executive shall: 

 

	 	(a)	Use his best efforts to faithfully and efficiently perform— 

  

	 	(1)	Those duties that are specified for the Executive’s position in the Company’s bylaws and other governing documents; and 

 

	 	(2)	Any additional duties consistent with the Executive’s position as may be reasonably designated from time to time by the Company’s Board of Directors, either
with or without additional compensation; 

  

	 	(b)	Report directly to the Board of Directors of Bancorp and the Bank, as applicable; and 

 

	 	(c)	Comply with the Company’s employment policies, procedures and practices that apply to other senior executives. However, if there is a conflict between those
policies, procedures and practices and the terms and conditions of this Agreement, this Agreement shall control. 

  
 PAGE 1 EMPLOYMENT
AGREEMENT 

	5.	TIME COMMITMENT; OUTSIDE ACTIVITIES. 

 

	 	(a)	Except as provided in subsection (b) below, the Executive shall devote his full working time, attention and talents to performing his duties under Section 4.

  

	 	(b)	The Executive may engage in civic, community, investment and outside business activities provided they: 

 

	 	(1)	Do not interfere with his duties under Section 4; and 

  

	 	(2)	Are either: 

  

	 	(A)	Allowed under the Company’s Governance Policy as in effect at the time; or 

 

	 	(B)	Expressly approved in advance by Bancorp’s or the Bank’s Board of Directors, as applicable. 

 

	6.	COMPENSATION. 

  

	 	(a)	Salary. The Executive will receive an annual salary of $420,000, payable in accordance with the Company’s regular payroll schedule and practices.

  

	 	(b)	Bonus. The Executive’s targeted annual bonus will be 50 percent of his annual salary. The actual bonus amount for any year will be determined by
the Committee in its discretion under subsection (k) below. 

  

	 	(c)	SERP. The Executive shall receive retirement benefits under the terms and conditions of the Supplemental Executive Retirement Plan as restated
January 1, 2011. 

  

	 	(d)	Incentive Awards. The Executive shall not receive any stock option or restricted stock awards during the term of this Agreement. 

 

	 	(e)	Deferred Compensation. The Executive shall be entitled to participate in any deferred compensation plan or program available to the Company’s
senior executives. 

  

	 	(f)	Employee Benefits. To the extent allowed by law and regulations, the Executive shall participate in all pension benefit plans, welfare benefit plans,
insurance plans or programs and other fringe benefit plans or programs the Company has in effect for its employees and other senior executives. 

  
 PAGE 2 EMPLOYMENT
AGREEMENT 

	 	(g)	Vacation. 

  

	 	(1)	The Executive shall be entitled to four weeks of paid vacation each calendar year in addition to all holidays observed by the Company. 

 

	 	(2)	The Executive’s ability to carry over unused vacation time to a subsequent year and the minimum amount of vacation the Executive is required to take each year
shall be determined under the Company’s policies and practices as then in effect for its senior executives. 

  

	 	(h)	Fringe Benefits. The Executive shall receive such other fringe benefits and perquisites as are provided to the Company’s senior executives.

  

	 	(i)	Business Expenses. The Company shall reimburse the Executive, in accordance with the Company’s policies and procedures applicable to senior executives,
for all reasonable expenses incurred by him in the performance of his duties. 

  

	 	(j)	No Board Fees. The Executive shall not receive any additional compensation for serving on the Board of Directors of Bancorp, the Bank or any of their
subsidiaries or affiliated companies. 

  

	 	(k)	Annual Review. The Committee shall review the Executive’s compensation annually as follows: 

 

	 	(1)	The review shall determine: 

  

	 	(A)	The amount of the annual bonus, if any, for the previous year; and 

  

	 	(B)	Whether any other benefit increases or additional benefits are warranted. 

 

	 	(2)	In making its determinations under paragraph (1) above, the Committee shall take into account the reasonableness of the Executive’s overall compensation
package (for example, determining whether providing an additional benefit should offset increases in other types of compensation); and 

  

	 	(3)	The Executive will have the opportunity to meet with the Chair of the Committee reasonably in advance of each of the Committee’s annual meetings under this
subsection. 

  
 PAGE 3 EMPLOYMENT
AGREEMENT 

	7.	GROUNDS FOR TERMINATION OF EMPLOYMENT. The Executive’s employment may
be terminated for any of the following reasons: 

  

	 	(a)	Termination by the Company for Cause. The Company may terminate the Executive’s employment for cause as follows— 

 

	 	(1)	“Cause” means any of the following circumstances: 

  

	 	(A)	Embezzlement, dishonesty or other fraudulent acts involving the Company or the Company’s business operations; 

 

	 	(B)	Material breach of Section 13 of this Agreement; 

  

	 	(C)	Conviction (whether entered upon a verdict or a plea, including a plea of no contest) on any felony charge or on a misdemeanor reflecting upon the Executive’s
honesty; 

  

	 	(D)	An act or omission that materially injures the Company’s reputation, business affairs or financial condition, if that injury could have been reasonably avoided by
the Executive; or 

  

	 	(E)	Failure or refusal of the Executive to substantially perform his duties to the Company (except during a period of disability that does not exceed the maximum allowable
under subsection (f)(1) below), including willful misfeasance or gross negligence in the performance of those duties or willful disregard of the lawful directives of the Board; provided, however, that the Executive is first given—

  

	 	(i)	Written notice by the Committee specifying in detail the performance issues; and 

 

	 	(ii)	A reasonable opportunity to cure the issues specified in the notice. 

  

	 	(2)	Limitations. The Company may not terminate the Executive’s employment for cause unless: 

 

	 	(A)	Two-thirds of Bancorp’s Board of Directors determine that cause exists based upon substantial evidence (that is, proof by a preponderance of the evidence, clear
and convincing evidence or beyond a reasonable doubt is not required); 

  

	 	(B)	The Executive is given reasonable notice of the Board meeting called to make that determination; and 

 

	 	(C)	The Executive and the Executive’s legal counsel are given the opportunity to address that meeting. 

  
 PAGE 4 EMPLOYMENT
AGREEMENT 

	(b)	Termination by the Company without Cause. The Company may terminate the Executive’s employment without cause for any reason or for no reason.

  

	(c)	Termination by the Executive for Good Reason. Subject to the limitations in paragraph (2) below, the Executive may terminate his employment for good
reason as follows— 

  

	 	(1)	“Good Reason” means any one or more of the following conditions that occur without the Executive’s express written consent:

  

	 	(A)	A material reduction in the Executive’s salary; 

  

	 	(B)	A material diminution in the Executive’s authority, duties or responsibilities (including requiring the Executive to report to a corporate officer instead of
Bancorp’s Board of Directors); 

  

	 	(C)	A material diminution of the budget over which the Executive retains authority; 

 

	 	(D)	A relocation or transfer of the Executive’s place of employment to an office or location that is more than 35 miles from the Executive’s then current place of
employment; or 

	 	(E)	Any other action or inaction that constitutes a material breach of this Agreement by the Company. 

 

	 	(2)	Limitations. Generally, the Executive may not terminate his employment for Good Reason unless: 

 

	 	(A)	The termination occurs within two years of the date of the initial existence of the condition constituting Good Reason; 

 

	 	(B)	The Executive gives the Company notice of the existence of the Good Reason condition within 90 days of its initial existence; and 

 

	 	(C)	The Company has a reasonable opportunity of at least 30 days in which to cure the condition. The Company is not required to pay severance benefits under
Section 9 during this correction period. 

 If the Executive fails to comply with subparagraph (A) or (B) above,
the Executive’s termination of employment will be considered a termination for Good Cause under this Agreement only if the Executive and Bancorp agree that, under the facts and circumstances, the Executive’s termination of employment
qualifies as a “separation from service for good reason” for purposes of Internal Revenue Code § 409A. 

  
 PAGE 5 EMPLOYMENT
AGREEMENT 

	 	(d)	Termination by the Executive without Good Reason. The Executive may voluntarily terminate employment without good reason upon at least 60 days’
prior written notice to the Company. 

  

	 	(e)	Death. This Agreement will terminate immediately upon the Executive’s death. 

 

	 	(f)	Disability. The Company may terminate this Agreement upon the Executive’s disability as follows: 

 

	 	(1)	The disability must continue for either: 

  

	 	(A)	90 consecutive calendar days; or 

  

	 	(B)	180 calendar days in any 12 consecutive month period. 

  

	 	(2)	Disability will be determined by a physician selected by the Company with the Executive’s consent, which consent cannot be unreasonably withheld.

  

	 	(3)	For purposes of paragraphs (1) and (2) above, “disability” means any physical or mental condition which renders the Executive unable to perform,
with reasonable accommodations that do not cause an undue hardship to the Company, his essential job functions under this Agreement. 

  

	 	(4)	If the Company terminates this Agreement for disability under facts and circumstances that do not satisfy the requirement of paragraphs (1), (2) and
(3) above, the termination shall be treated as a termination without cause. 

  

	 	(g)	Separation from Service. For purposes of this Agreement, the Executive will have a termination of employment only if either: 

 

	 	(1)	The Company and the Executive reasonably anticipate that the Executive will not render any services to the Company after the date of termination under this Agreement;
or 

  

	 	(2)	The Company and the Executive agree that the Executive will continue to provide bona fide services to the Company (either as an employee or an independent contractor)
after the date of termination of employment under this Agreement, but only if those services do not rise to such a level that the termination of the Executive’s employment under this Agreement would no longer qualify as a “separation from
service” for purposes of Internal Revenue Code § 409A. 

  
 PAGE 6 EMPLOYMENT
AGREEMENT 

	8.	PAYMENTS UPON TERMINATION. Regardless of the reason for the termination, compensation and
benefits earned or accrued through the date of the termination of the Executive’s employment will be paid as follows: 

  

	 	(a)	The following amounts will be paid within the time required by the Oregon wage and hour laws: 

 

	 	(1)	Salary earned through the date of termination; and 

  

	 	(2)	The bonus for the year before the year in which the termination occurs to the extent unpaid as of the date of termination; 

 

	 	(b)	Business expenses reimbursable under this Agreement that were incurred though the date of termination will be paid as soon as administratively feasible, but in no event
later than 60 days following the termination date; and 

  

	 	(c)	Employee benefits and other fringe benefits accrued through the date of termination will be paid in accordance with the terms and conditions of the applicable plan or
arrangement. 

  

	9.	SEVERANCE BENEFITS. If the Executive’s employment is terminated by the Company without cause or by
the Executive for Good Reason, the Company will pay the Executive the following severance benefits in addition to the payments under Section 8: 

  

	 	(a)	At the times specified in paragraph (5) below, the Company will pay the Executive a total payment equal to the sum of the amounts determined under
paragraphs (1), (2), (3) and (4) below. 

  

	 	(1)	The product of: 

  

	 	(A)	The Executive’s annual base salary as in effect on the date of termination, multiplied by 

 

	 	(B)	The number of days from the date of termination through December 31, 2013, divided by 365. 

 

	 	(2)	The annualized amount of the bonus the Executive earned through the date of termination for the year in which the termination occurred, to the extent unpaid. For
this purpose, the amount of the bonus earned will be determined by the extent to which the Executive, as of the date of termination, was on track for achieving the bonus measurement criteria for the year in which the termination occurred.

  
 PAGE 7 EMPLOYMENT
AGREEMENT 

	(3)	The product of: 

  

	 	(A)	The average of— 

  

	 	(i)	The actual bonus paid or payable for the year before the year in which the termination occurs; and 

 

	 	(ii)	The bonus amount determined under paragraph (2) above, multiplied by 

  

	 	(B)	The number of days from January 1 of the year following the year in which the termination occurred, through December 31, 2013, divided by 365.

  

	 	(4)	An amount equal to the sum of the Executive’s “deemed matching contribution” (as determined under subparagraph (B) below) and the Executive’s
“deemed profit-sharing contribution” (as determined under subparagraph (C) below). 

  

	 	(A)	For purposes of determining the Executive’s deemed matching and profit-sharing contributions, the Executive’s “deemed 401(k) Plan compensation”
will be the total amount payable under subsection (a)(1), (2) and (3) above, but limited to the maximum amount allowable under the 401(k) Plan’s definition of “compensation” as in effect at that time;

  

	 	(B)	The deemed matching contributions will be determined as follows— 

 

	 	(i)	First, the Executive’s “deemed elective deferral contributions” will be determined by multiplying the Executive’s deemed 401(k) Plan compensation
under subparagraph (A) above by the lesser of: 

  

	 	(I)	The deferral percentage the Executive had in effect under the 401(k) Plan on the date of termination; or 

 

	 	(II)	The maximum deferral percentage allowed by the 401(k) Plan for highly compensated employees (if applicable to the Executive) for the plan year in which termination
occurs, if that percentage has been determined by the date of termination; 

  
 PAGE 8 EMPLOYMENT
AGREEMENT 

	 	(ii)	Second, the deemed matching contribution formula will be applied to the amount of the deemed elective deferral contributions as calculated under clause (i) above,
to determine the amount of the deemed matching contributions. For this purpose, the “deemed matching contribution formula” is: 

  

	 	(I)	The 401(k) Plan’s matching contribution formula for the plan year in which the termination occurs; or 

 

	 	(II)	If that formula has not been determined by the date of termination, the formula for the previous plan year; and 

 

	 	(C)	The deemed profit-sharing contributions will be determined by multiplying the Executive’s deemed 401(k) Plan compensation under subparagraph (A) above
by— 

  

	 	(i)	The actual bonus paid or payable for the bonus computation year that ended before the bonus computation year in which the termination occurs; and

  

	 	(ii)	The annualized amount of the bonus the Executive earned, determined as of the end of the month in which the termination occurs, for the bonus computation year in which
the termination occurs; and 

  

	 	(5)	The portion of the Executive’s separation pay that does not exceed the maximum 409A separation pay limit, shall be paid to the Executive in a lump-sum payment as
soon as administratively feasible after the date of termination, but in no event later than 15 business days after the date of termination. The portion of the Executive’s separation pay that exceeds the maximum 409A separation pay limit
will be paid to the Executive in a lump-sum payment on the first business day of the seventh month following the date of termination (or, if sooner, no later than 15 business days after the Executive’s death). The following definitions
apply for purposes of this paragraph: 

  

	 	(A)	“Separation pay” means the amount payable under subsection (a) above, reduced, to the extent required by Internal Revenue
Code § 409A, by amounts payable under subsections (c) and (d) below. 

  

	 	(B)	“Maximum 409A separation pay limit” means two times the lesser of: 

 

	 	(i)	The Executive’s annualized base salary for the year of termination; or 

  
 PAGE 9 EMPLOYMENT
AGREEMENT 

	 	(ii)	The maximum amount that may be taken into account as includible compensation under a qualified retirement plan pursuant to Internal Revenue Code § 401(a)(17)
for the year in which the termination occurs. 

  

	 	(b)	Upon the date of termination— 

  

	 	(1)	All stock options held by the Executive that are not otherwise vested as of that date shall become immediately vested and exercisable notwithstanding any vesting
provisions in the grant of those options; and 

  

	 	(2)	Any restrictions on the restricted stock held by the Executive shall immediately lapse. 

 

	 	(c)	The Company shall provide the Executive and his spouse with continued group health plan coverage (medical, dental and vision) as follows: 

 

	 	(1)	Coverage shall continue until whichever of the following occurs first: 

  

	 	(A)	The date the Executive qualifies for group health plan coverage provided by a subsequent employer; or 

 

	 	(B)	December 31, 2013. 

  

	 	(2)	During the continuation period, the Company shall continue to pay the employer portion of the premiums for coverage under its group health plans, except as provided
under paragraph (3) below. 

  

	 	(3)	If the Company reasonably determines that the Executive cannot participate in the Company’s group health plans because he is no longer actively performing services
for the Company, the Company will pay the COBRA coverage premiums for group health plan coverage for the Executive and his spouse. If the COBRA continuation coverage period expires before the benefits continuation period specified in
paragraph (1) above, the Company shall pay for the balance of the period remaining under paragraph (1) above, the premiums for a conversion or portability policy obtained by the Executive. 

 

	 	(4)	The Bank agrees that, at each time it renews its group health plan coverage during the Executive’s lifetime, it will request its insurance carrier to extend the
group health plan’s coverage to the Executive or to a group of the Bank’s retired executives that includes the Executive, provided this executive retiree coverage: 

 

	 	(A)	Does not adversely affect the premiums for the Bank’s active employees; 

  
 PAGE 10 EMPLOYMENT
AGREEMENT 

	 	(B)	Does not otherwise increase the Bank’s costs of providing group health plan coverage; 

 

	 	(C)	Is paid for solely by the retired executives; and 

  

	 	(D)	Such an arrangement is in compliance with applicable law as in effect at that time. 

 If, in the future, the Bank’s group health plan coverage is provided under an arrangement other than a group insurance policy issued by a commercial insurance carrier, the executive retiree coverage
described above shall be offered under such arrangement to the extent feasible, subject to the conditions of subparagraphs (A), (B), (C) and (D) above. 
  

	 	(d)	The Company shall provide the Executive with group life insurance coverage at the same level as is in effect on the date of termination until whichever of the following
first occurs: 

  

	 	(1)	The date the Executive qualifies for group life insurance coverage provided by a subsequent employer; or 

 

	 	(2)	December 31, 2013. 

  

	10.	TERMINATION UPON CHANGE IN CONTROL.

  

	 	(a)	If Covered by C-I-C Agreement. If the Executive’s employment terminates under circumstances that qualify as a “Termination
Event” as defined in the Change In Control Agreement dated December 30, 2008, between the Company and the Executive, as amended, (the “C-I-C Agreement”), the Executive will receive: 

 

	 	(1)	The payments payable under Section 8 of this Agreement; and 

  

	 	(2)	The severance benefits payable in accordance with the terms and conditions of the C-I-C Agreement in lieu of those payable under Section 9 of this Agreement.

  

	 	(b)	If Not Covered by C-I-C Agreement. If the Executive’s employment terminates under circumstances that do not qualify as a “Termination Event”
as defined in the C-I-C Agreement (e.g., because the change in beneficial ownership is not large enough to qualify as a change in control as defined under the C-I-C Agreement or because the termination occurs after the period of time
covered by that agreement), the compensation and benefits payable to the Executive upon termination of employment will be determined solely under this Agreement. 

  
 PAGE 11 EMPLOYMENT
AGREEMENT 

	11.	EFFECT OF TERMINATION ON OTHER
POSITIONS. If, on the date of the termination of his employment with the Company, the Executive is a member of the Board of Directors of the Company or any of its subsidiaries or affiliates,
or holds any other position with the Company or any of its subsidiaries or affiliates, the Executive shall be deemed to have resigned from all of those positions as of the date of his termination of employment. The Executive shall sign such
documents and take such actions as the Company may request to effect those resignations. 

  

	12.	NO MITIGATION OR OFFSET. Upon the termination of his employment, the
Executive shall be under no obligation to seek other employment. Any remuneration the Executive receives from any subsequent employment he may obtain shall not offset any amounts due the Executive under this Agreement. 

 

	13.	CONFIDENTIALITY. 

  

	 	(a)	Nondisclosure. The Executive shall not use or disclose any confidential information (as defined in subsection (c) below), either during or following
the term of this Agreement, except as required by the Executive’s duties under this Agreement or as otherwise allowed under subsection (b) below. 

 

	 	(b)	Exceptions. The nondisclosure obligation under subsection (a) above does not apply to any use or disclosure that is: 

 

	 	(1)	Made with Bancorp’s prior written consent; 

  

	 	(2)	Required by a court order or a subpoena from a government agency (provided, however, that the Executive must first provide Bancorp with reasonable notice of the court
order or subpoena in order to allow Bancorp the opportunity to contest the requested disclosure); or 

  

	 	(3)	Of confidential information that has been previously disclosed to the public by the Company or is in the public domain (other than by reason of Executive’s breach
of this Agreement). 

  

	 	(c)	“Confidential Information” means any of the Company’s (or its subsidiaries’ or affiliates’) trade secrets, customer or prospects lists,
information regarding product development, marketing plans, sales plans, strategic plans, projected acquisitions or dispositions, management agreements, management organization information (including data and other information relating to members of
the Board and management), operating policies or manuals, business plans, purchasing agreements, financial records, other similar financial, commercial, business or technical information or any information that the Company or any of its subsidiaries
or affiliates has received from its service providers, other vendors or customers that these third parties have designated as confidential or proprietary. 

  
 PAGE 12 EMPLOYMENT
AGREEMENT 

	 	(d)	Injunctive Relief and Other Remedies. The Executive acknowledges and agrees that the nondisclosure obligation under subsection (a) above relates to
special, unique and extraordinary matters and that a breach of that obligation will cause the Company irreparable injury for which adequate remedies are not available at law. Therefore, Executive agrees that: 

 

	 	(1)	The Company shall be entitled to an injunction, restraining order or such other equitable relief (without the requirement to post bond) restraining Executive from
committing any breach or threatened breach of the nondisclosure obligation under subsection (a) above; 

  

	 	(2)	If the Company is required to post a bond in order to secure an injunction or other equitable remedy, that bond shall be no more than a nominal amount; and

  

	 	(3)	These injunctive remedies are cumulative and are in addition to any other rights and remedies the Company may have at law or in equity. 

 

	 	(e)	Survival. This section shall survive the termination of the Executive’s employment. 

 

	14.	ASSISTANCE WITH CLAIMS. 

 

	 	(a)	The Executive agrees that, both during and after his employment with the Company, he will: 

 

	 	(1)	Assist the Company and its subsidiaries and affiliates in the defense of any claims, or potential claims that may be made or threatened to be made against any of them
in any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”); 

  

	 	(2)	Assist the Company and its subsidiaries and affiliates in the prosecution of any claims that may be made by the Company or any subsidiary or affiliate in any
Proceeding, to the extent that such claims relate to the Executive’s employment or the period of Executive’s employment with the Company; 

  

	 	(3)	Unless precluded by law, promptly notify the Company if he is asked to participate (or otherwise become involved) in any Proceeding involving such claims or potential
claims; and 

  

	 	(4)	Unless precluded by law, promptly notify the Company if he is asked to assist in any investigation (whether governmental or private) of the Company or any of its
subsidiaries or affiliates (or their actions), regardless of whether a lawsuit has then been filed against the Company or any subsidiary or affiliate with respect to that investigation. 

  
 PAGE 13 EMPLOYMENT
AGREEMENT 

	 	(b)	The Company agrees to reimburse the Executive for all of his reasonable out-of-pocket expenses associated with the assistance he renders under this section, including
travel expenses and any reasonable attorneys’ fees and expenses, and shall pay the Executive a reasonable per diem fee for his services. 

  

	15.	GENERAL PROVISIONS. 

 

	 	(a)	Applicable Law. 

  

	 	(1)	This Agreement shall be construed and its validity determined according to the laws of the State of Oregon, other than its law regarding conflicts of law or choice of
law. 

  

	 	(2)	Any dispute arising out of this Agreement must be brought in either Clackamas County or Multnomah County, Oregon, and the parties will submit to personal jurisdiction
in either of those counties. 

  

	 	(b)	Arbitration. Any dispute or claim arising out of or brought in connection with this Agreement, other than a claim by the Company under Section 13,
shall be submitted to final and binding arbitration as follows: 

  

	 	(1)	Before proceeding to arbitration, the parties shall first attempt, in good faith, to resolve the dispute or claim by informal meetings and discussions between them
and/or their attorneys. The Chairman of the Board will act on behalf of the Company at these meetings and discussions. This informal dispute resolution process will be concluded within 30 days or such longer or shorter period as may be
mutually agreed by the parties. 

  

	 	(2)	After exhausting the informal dispute resolution process under paragraph (1) above, upon the request of any party, the matter will be submitted to and settled by
arbitration under the rules then in effect of the American Arbitration Association (or under any other form of arbitration mutually acceptable to the parties involved). Any award rendered in arbitration will be final and will bind the parties,
and a judgment on it may be entered in the highest court of the forum having jurisdiction. The arbitrator will render a written decision, naming the substantially prevailing party in the action and, subject to subsection (c) below, will
award such party all costs and expenses incurred, including reasonable attorneys’ fees. 

  

	 	(c)	Attorneys’ Fees. 

  

	 	(1)	If any breach of or default under this Agreement results in either party incurring attorneys’ or other fees, costs or expenses (including those incurred in an
arbitration), the substantially prevailing party is entitled to recover from the non-prevailing party its reasonable legal fees, costs and expenses, including attorneys’ fees and the costs of the arbitration, except as provided in
paragraph (2) below. 

  
 PAGE 14 EMPLOYMENT
AGREEMENT 

	 	(2)	If the Executive is not the substantially prevailing party, the Executive shall be liable to pay the Company under paragraph (1) above only if the arbitrator
determines that: 

  

	 	(A)	There was no reasonable basis for the Executive’s claim (or the Executive’s response to the Company’s claim); or 

 

	 	(B)	The Executive engaged in unreasonable delay, failed to comply with a discovery order or otherwise acted in bad faith in the arbitration. 

 

	 	(3)	Either party shall be entitled to recover any reasonable attorneys’ fees and other costs and expenses it incurs in enforcing or collecting an
arbitration award. 

  

	 	(4)	If an award under this section is made to the Executive, and accountants or tax counsel selected by the Company with the Executive’s consent (which shall not be
unreasonably withheld) determine that the award is includible in the Executive’s gross income, the Company shall also pay the Executive a gross-up payment to offset the taxes imposed on that award, including the taxes on the gross-up payment
itself. This gross-up payment shall be determined following the methodology employed in the C-I-C Agreement. 

  

	 	(d)	Amendment. This Agreement may be amended only by a written agreement signed by the parties. 

 

	 	(e)	Notice. 

  

	 	(1)	Any notice given under this Agreement shall be in writing delivered to a Party at the address given below or to such other address as that Party has given the other
Parties in accordance with this section. 

  

					
	To the Executive:	  	 The last address on file in the Executive’s
 personnel file at the Company
	  	
			
	To the Company:	  	 Attn: General Counsel

5335 Meadows Road
 Suite 201

Lake Oswego, OR 97035
	  	

  

	 	(2)	A notice shall be deemed to have been given if it is: 

  

	 	(A)	Delivered by hand; 

  

	 	(B)	Mailed by certified U.S. mail, return receipt requested, with postage prepaid; or 

  
 PAGE 15 EMPLOYMENT
AGREEMENT 

	 	(C)	Delivered to a private carrier for guaranteed next-day delivery. 

  

	 	(f)	Entire Agreement. This Agreement constitutes the entire agreement between the Company and the Executive as to its subject matter. No rights are granted
to the Executive by virtue of this Agreement other than those specifically set forth in this document and any amendments to it. 

  

	 	(g)	Construction. The language of this Agreement was chosen jointly by the parties to express their mutual intent. No rule of construction based on which
party drafted the Agreement or certain of its provisions will be applied against any party. 

  

	 	(h)	Section Headings. The section headings used in this Agreement have been included for convenience of reference only. 

 

	 	(i)	Counterparts. This Agreement may be executed in one or more counterparts, and all counterparts will be construed together as one Agreement.

  

	 	(j)	Severability. If any provision of this Agreement is, to any extent, held to be invalid or unenforceable, it will be deemed amended as necessary to conform
to the applicable laws or regulations. However, if it cannot be amended without materially altering the intentions of the parties, it will be deleted and the remainder of this Agreement will be enforced to the extent permitted by law.

  

							
	EXECUTIVE:	 		 	COMPANY:
			
		 		 	WEST COAST BANCORP
				
	 /s/ Robert D. Sznewajs
	 		 	By:	 	/s/ Lloyd D. Ankeny         
	Robert D. Sznewajs	 		 	Title:	 	Chairman
		 		 	Date:	 	December 16, 2010
	 Date: January 12, 2011
	 		 		 	
		 		 	WEST COAST BANK
				
		 		 	By:	 	/s/ Lloyd D. Ankeny         
		 		 	Title:	 	Chairman
		 		 	Date:	 	December 16, 2010

  
 PAGE 16 EMPLOYMENT
AGREEMENT

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