Document:

Exhibit 10.1

FORM OF

EMPLOYMENT AGREEMENT

          THIS
EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into as of this ___
day of _____________, 2008, by and between Anchor Bancorp (the “Company”), and
its wholly owned subsidiary, Anchor Bank (the “Bank”), and
______________________ (the “Employee”).

          WHEREAS,
the Employee is currently serving as the __________________________ of the
Bank; 

          WHEREAS,
the Employee has made and will continue to make a major contribution to the success
of the Company and the Bank in the position of __________________________; 

          WHEREAS,
the board of directors of the Company and the board of directors of the Bank
(collectively, the “Board of Directors”) recognize that the possibility of a change
in control of the Bank or the Company may occur and that such possibility, and
the uncertainty and questions which may arise among management, may result in
the departure or distraction of key management to the detriment of the Company,
the Bank and their respective stockholders;

          WHEREAS,
the Board of Directors believes that it is in the best interests of the Company
and the Bank to enter into this Agreement with the Employee in order to assure
continuity of management of the Company and its subsidiaries; and

          WHEREAS,
the Board of Directors has approved and authorized the execution of this
Agreement with the Employee;

          NOW,
THEREFORE, in consideration of the foregoing and of the respective covenants
and agreements of the parties herein, it is AGREED as follows:

          1. Definitions.

                    (a)          The
term “Change in Control” means (1) an offeror other than the Company purchases
shares of stock of the Company or the Bank pursuant to a tender or exchange
offer for such shares; (2) an event of a nature that results in the acquisition
of control of the Company or the Bank within the meaning of the Bank Holding
Company Act of 1956, as amended, under 12 U.S.C. Section 1841 (or any successor
statute or regulation) or requires the filing of a change of control notice
with the Federal Deposit Insurance Corporation (“FDIC”) under 12 U.S.C. Section
1817(j) (or any successor statute or regulation); (3) any person (as the term
is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934
(“Exchange Act”)) that is or becomes the beneficial owner (as defined in Rule
13d-3 under the Exchange Act) directly or indirectly of securities of the
Company or the Bank representing 25% or more of the combined voting power of
the Company’s or the Bank’s outstanding securities; (4) individuals who are
members of the board of directors of the Company immediately following the
Effective Date or who are members of the board of directors of the Bank
immediately following the Effective Date (in each case, the “Incumbent Board”)
cease

for any reason to constitute at least a majority thereof, provided that any person becoming a director subsequently whose election was approved by a
vote of at least three-quarters of the directors comprising the Incumbent
Board, or whose nomination for election by the Company’s or the Bank’s
stockholders was approved by the nominating committee serving under an
Incumbent Board, shall be considered a member of the Incumbent Board; or (5)
consummation of a plan of reorganization, merger, acquisition, consolidation,
sale of all or substantially all of the assets of the Company or a similar
transaction in which the Company is not the resulting entity, provided that the
term “Change in Control” shall not include an acquisition of securities by an
employee benefit plan of the Bank or the Company.  

                    (b)          The
term “Consolidated Subsidiaries” means any subsidiary or subsidiaries of the
Company (or its successors) that are part of the affiliated group (as defined
in Section 1504 of the Internal Revenue Code of 1986, as amended (the “Code”),
without regard to subsection (b) thereof) that includes the Bank, including but
not limited to the Company.

                    (c)          The
term “Date of Termination” means the date upon which the Employee experiences a
Separation from the Company or the Bank or both, as specified in a notice of
termination pursuant to Section 8 of this Agreement or the date a succession
becomes effective under Section 10.

                    (d)          The
term “Effective Date” means the date of this Agreement.

                    (e)          The
term “Involuntary Termination” means the Employee’s termination of employment
(i) by either the Company or the Bank or both without the Employee’s express
written consent; or (ii) by the Employee by reason of a material diminution of
or interference with his/her duties, responsibilities or benefits, including
(without limitation) any of the following actions unless consented to in
writing by the Employee: (1) a requirement that the Employee be based at any
place other than Lacey, Washington, or within a radius of 35 miles from the
location of the Company’s administrative offices as of the Effective Date,
except for reasonable travel on Company or Bank business; (2) a material
demotion of the Employee; (3) a material reduction in the number or seniority
of personnel reporting to the Employee or a material reduction in the frequency
with which, or in the nature of the matters with respect to which such
personnel are to report to the Employee, other than as part of a Bank- or
Company-wide reduction in staff; (4) a reduction in the Employee’s salary or a
material adverse change in the Employee’s perquisites, benefits, contingent
benefits or vacation, other than as part of an overall program applied
uniformly and with equitable effect to all members of the senior management of
the Bank or the Company; (5) a material permanent increase in the required
hours of work or the workload of the Employee; or (6) the failure of the board
of directors of the Company (or a board of directors of a successor of the
Company) to elect him/her as ___________________________ of the Company (or a
successor of the Company) or any action by the board of directors of the
Company (or a board of directors of a successor of the Company) removing
him/her from such office, or the failure of the board of directors of the Bank
(or any successor of the Bank) to elect him/her as ______________________________
of the Bank (or any successor of the Bank) or any action by such board (or a
board of a successor of the Bank) removing

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him/her from such office. The term “Involuntary Termination” does not
include Termination for Cause, termination of employment due to death or
permanent disability pursuant to Section 7(f) of this Agreement, retirement or
suspension or temporary or permanent prohibition from participation in the
conduct of the Bank’s affairs under Section 8 of the Federal Deposit Insurance
Act (“FDIA”).

                    (f)          The
term “Section 409A” shall mean Section 409A of the Code and the regulations and
guidance of general applicability issued thereunder.

                    (g)          The
term “Separation from Service” shall have the same meaning as in Section 409A,
taking into account all rules and presumptions provided for in the final
Section 409A regulations.

                    (h)          The
terms “Termination for Cause” and “Terminated For Cause” mean Employee’s
termination of employment with either the Company or the Bank, as the case may
be, because of the Employee’s personal dishonesty, willful misconduct, breach
of a fiduciary duty involving personal profit, intentional failure to perform
stated duties, willful violation of any law, rule, or regulation (other than
traffic violations or similar offenses) or final cease-and-desist order, or
(except as provided below) material breach of any provision of this Agreement.
No act or failure to act by the Employee shall be considered willful unless the
Employee acted or failed to act with an absence of good faith and without a
reasonable belief that his/her action or failure to act was in the best
interest of the Company or the Bank. The Employee shall not be deemed to have
been Terminated for Cause unless and until there shall have been delivered to
the Employee a copy of a resolution, duly adopted by the affirmative vote of
not less than a majority of the entire membership of the Board of Directors at
a meeting of the Board duly called and held for such purpose (after reasonable
notice to the Employee and an opportunity for the Employee, together with the
Employee’s counsel, to be heard before the Board), stating that in the good
faith opinion of the Board of Directors the Employee has engaged in conduct
described in the preceding sentence and specifying the particulars thereof in
detail.

          2. Term.
The term of this Agreement shall be a period of three years commencing on the
Effective Date, subject to earlier termination as provided herein. Beginning on
the first anniversary of the Effective Date, and on each anniversary
thereafter, the term of this Agreement shall be extended for a period of one
year in addition to the then-remaining term, provided that (i) neither the Employee
nor the Company has given notice to the other in writing at least 90 days prior
to such anniversary that the term of this Agreement shall not be extended
further; and (ii) prior to such anniversary, the Board of Directors, or a
committee of the Board of Directors which has been delegated authority to act
on such matters by the Board of Directors (“Committee”), explicitly reviews and
approves the extension. Reference herein to the term of this Agreement shall
refer to both such initial term and such extended terms. 

          3. Employment.
The Employee shall be employed as the ____________________________ of the
Company and as the _____________________________ of the Bank. As such, the
Employee shall render all services and possess the powers as are customarily
performed by persons situated in

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similar executive capacities, and shall have such other powers and
duties as the Board of Directors may prescribe from time to time. The Employee
shall also render services to any subsidiary or subsidiaries of the Company or
the Bank as requested by the Company or the Bank from time to time consistent
with his/her executive position. The Employee shall devote his/her best efforts
and reasonable time and attention to the business and affairs of the Company
and the Bank to the extent necessary to discharge his/her responsibilities
hereunder. The Employee may (i) serve on charitable or civic boards or
committees and, in addition, on such corporate boards as are approved in a
resolution adopted by a majority of the Board of Directors or a Committee,
which approval shall not be withheld unreasonably, and (ii) manage personal
investments, so long as such activities do not interfere materially with
performance of his/her responsibilities hereunder or give rise to violations of
applicable securities laws.

          4. Cash
Compensation.

                    (a)          Salary.
The Company and the Bank jointly agree to pay the Employee during the term of
this Agreement a base salary (the “Salary”) the annualized amount of which in
any year shall be not less than the annualized aggregate amount of the
Employee’s base salary from the Company and any Consolidated Subsidiaries in
effect at the Effective Date; provided that any amounts of salary actually paid
to the Employee by any Consolidated Subsidiaries shall reduce the amount to be
paid by the Company and the Bank to the Employee. The Salary shall be paid no
less frequently than monthly and shall be subject to customary tax withholding.
The amount of the Employee’s Salary shall be increased (but shall not be
decreased) from time to time in accordance with the amounts of salary approved
by the Board of Directors or the Committee or the board of directors or the
appropriate committee of any of the Consolidated Subsidiaries after the
Effective Date. The amount of the Salary shall be reviewed by the Board of
Directors or the Committee at least annually during the term of this Agreement. 

                    (b)          Bonuses.
The Employee shall be entitled to participate in an equitable manner with all
other executive officers of the Company and the Bank in such performance-based
and discretionary bonuses, if any, as are authorized and declared by the Board
of Directors or the Committee for executive officers. Any such bonus shall be
paid no later than 21⁄2 months after the end of the calendar year in which the
Employee obtains a
nonforfeitable right to the bonus. 

                    (c)          Expenses.
The Employee shall be entitled to receive prompt reimbursement for all reasonable
expenses incurred by the Employee in performing services under this Agreement
in accordance with the policies and procedures applicable to the executive
officers of the Company and the Bank, provided that the Employee accounts for
such expenses as required under such policies and procedures. 

          5. Benefits.

                    (a)          Participation
in Benefit Plans. The Employee shall be entitled to participate, to the
same extent as executive officers of the Company and the Bank generally, in all
plans of the

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Company and the Bank relating to pension, retirement, thrift,
profit-sharing, savings, group or other life insurance, hospitalization,
medical and dental coverage, travel and accident insurance, education, cash
bonuses, and other retirement or employee benefits or combinations thereof. In
addition, the Employee shall be entitled to be considered for benefits under
all of the stock, stock option, and equity-based plans in which the Company’s
or the Bank’s executive officers are eligible or become eligible to
participate. 

                    (b)          Fringe
Benefits. The Employee shall be eligible to participate in, and receive
benefits under, any other fringe benefit plans or perquisites which are or may
become generally available to the Company’s or the Bank’s executive officers,
including but not limited to supplemental retirement, deferred compensation
program, supplemental medical or life insurance plans, company cars, club dues,
physical examinations, financial planning and tax preparation services.

          6. Vacations;
Leave. The Employee shall be entitled (i) to annual paid vacation in
accordance with the policies established by the Board of Directors or the
Committee for executive officers, and (ii) to voluntary leaves of absence, with
or without pay, from time to time at such times and upon such conditions as the
Board of Directors or the Committee may determine in its discretion.

          7. Termination
of Employment.

                    (a)          Involuntary
Termination. The Board of Directors may terminate the Employee’s employment
at any time, but, except in the case of Termination for Cause, termination of
employment shall not prejudice the Employee’s right to compensation or other
benefits under this Agreement. In the event of Involuntary Termination other
than after a Change in Control which occurs during the term of this Agreement,
the Company and the Bank jointly shall (i) pay to the Employee during the
remaining term of this Agreement the Salary at the rate in effect immediately
prior to the Date of Termination, including the pro rata portion of any
incentive award, payable in such manner and at such times as the Salary would
have been payable to the Employee under Section 4(a) if the Employee had
continued to be employed by the Company and the Bank, and (ii) provide to the
Employee during the remaining term of this Agreement substantially the same
group life insurance, hospitalization, medical, dental, prescription drug and
other health benefits, and long-term disability insurance (if any) for the
benefit of the Employee and his/her dependents and beneficiaries who would have
been eligible for such benefits if the Employee had not suffered Involuntary
Termination, on terms substantially as favorable to the Employee, including
amounts of coverage and deductibles and other costs to him, as if he/she had
not suffered Involuntary Termination. Notwithstanding the foregoing, if (but
for this sentence) (i) the taxable payments under this Section 7(a) would
either extend over a long enough period, or have a sufficient cumulative value,
to cause a portion of the payments to not to be considered severance payments
under Section 409A (so that the excess portion would be considered deferred
compensation for purposes of Section 409A), then the first payments made under
this Section 7(a) shall be considered as made pursuant to a separation pay
program to the extent permitted under Section 409A, with the balance of the
payments (the

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“Excess Separation Payments”) being considered deferred compensation,
(ii) the manner in which the Excess Severance Payments are paid shall be
modified if and to the minimum extent necessary to cause those payments to
comply with Section 409A, and (iii) if at the time of the Employee’s Separation
from Service he/she is a “specified employee” within the meaning of Section
409A, then no portion of the Excess Separation Payment shall be paid earlier
than six months after the Employee’s Separation from Service (with any payments
delayed on account of this requirement paid with the first payment that is not
so limited).

                    (b)          Termination
for Cause. In the event of Termination for Cause, the Company and the Bank
shall pay to the Employee the Salary and provide benefits under this Agreement
only through the Date of Termination, and shall have no further obligation to
the Employee under this Agreement.

                    (c)          Voluntary
Termination. The Employee’s employment may be voluntarily terminated by the
Employee at any time upon at least 90 days’ written notice to the Company and
the Bank or such shorter period as may be agreed upon between the Employee and
the Board of Directors. In the event of such voluntary termination, the Company
and the Bank shall be obligated jointly to continue to pay to the Employee the
Salary and provide benefits under this Agreement only through the Date of
Termination, at the time such payments are due, and shall have no further
obligation to the Employee under this Agreement.

                    (d)          Change
in Control. In the event of Employee’s Involuntary Termination after a
Change in Control, the Company and the Bank jointly shall (i) pay to the
Employee in a lump sum in cash within 25 business days after the Date of
Termination an amount equal to 299% of the Employee’s “base amount” as defined
in Section 280G of the Code; and (ii) provide to the Employee during the
remaining term of this Agreement substantially the same group life insurance,
hospitalization, medical, dental, prescription drug and other health benefits,
and long-term disability insurance (if any) for the benefit of the Employee and
his/her dependents and beneficiaries who would have been eligible for such
benefits if the Employee had not suffered Involuntary Termination, on terms
substantially as favorable to the Employee, including amounts of coverage and
deductibles and other costs to him, as if he/she had not suffered an
Involuntary Termination.

                    (e)          Death.
In the event of the death of the Employee while employed under this Agreement
and prior to any termination of employment, the Company and the Bank jointly
shall pay to the Employee’s estate, or such person as the Employee may have
previously designated in writing, the Salary which was not previously paid to
the Employee and which he/she would have earned if he/she had continued to be
employed under this Agreement through the last day of the calendar month in
which the Employee died, together with the benefits provided hereunder through
such date.

                    (f)          Disability.
If the Employee becomes entitled to benefits under the terms of the
then-current disability plan, if any, of the Company or the Bank (the
“Disability Plan”) or becomes otherwise unable to fulfill his/her duties under
this Agreement, he/she shall be entitled to receive such group and other
disability benefits, if any, as are then provided by the Company or the

6

Bank for executive employees. In the event of such disability, this
Agreement shall not be suspended, except that (i) the obligation to pay the
Salary to the Employee shall be reduced in accordance with the amount of
disability income benefits received by the Employee, if any, pursuant to this
paragraph such that, on an after-tax basis, the Employee shall realize from the
sum of disability income benefits and the Salary the same amount as he/she
would realize on an after-tax basis from the Salary if the obligation to pay
the Salary were not reduced pursuant to this Section 7(f); and (ii) upon a
resolution adopted by a majority of the disinterested members of the Board of
Directors or the Committee, the Company and the Bank may discontinue payment of
the Salary beginning six months following a determination that the Employee has
become entitled to benefits under the Disability Plan or otherwise unable to
fulfill his/her duties under this Agreement. If the Employee’s disability does
not constitute a disability within the meaning of Section 409A, then payments
under this Section 7(f) shall not commence until the earlier of the Employee’s
death or the sixth month anniversary of the Employee’s Separation from Service,
with any delayed payments being made with the first permissible payment.

                    (g)          Temporary
Suspension or Prohibition. If the Employee is suspended and/or temporarily
prohibited from participating in the conduct of the Bank’s affairs by a notice
served under Section 8(e)(3) or (g)(1) of the FDIA, 12 U.S.C.
Section 1818(e)(3) and (g)(1), or pursuant to Section 32.16.090 of the
Revised Code of Washington (“R.C.W.”), the Bank’s obligations under this
Agreement shall be suspended as of the date of service, unless stayed by
appropriate proceedings. If the charges in the notice are dismissed, the Bank
may in its discretion (i) pay the Employee all or part of the compensation
withheld while its obligations under this Agreement were suspended and
(ii) reinstate in whole or in part any of its obligations which were
suspended.

                    (h)          Permanent
Suspension or Prohibition. If the Employee is removed and/or permanently
prohibited from participating in the conduct of the Bank’s affairs by an order
issued under Section 8(e)(4) or (g)(1) of the FDIA, 12 U.S.C. Section
1818(e)(4) and (g)(1), or pursuant to R.C.W. Section 32.16.090, all obligations
of the Bank under this Agreement shall terminate as of the effective date of
the order, but vested rights of the contracting parties shall not be affected.

                    (i)          Default
of the Bank. If the Bank is in default (as defined in Section 3(x)(1) of
the FDIA), all obligations under this Agreement shall terminate as of the date
of default, but this provision shall not affect any vested rights of the
contracting parties.

                    (j)          Termination
by Regulators. All obligations under this Agreement shall be terminated,
except to the extent determined that continuation of this Agreement is
necessary for the continued operation of the Bank: (1) at the time the FDIC
enters into an agreement to provide assistance to or on behalf of the Bank
under the authority contained in Section 13(c) of the FDIA; or (2) by the
FDIC, at the time the agency approves a supervisory merger to resolve problems
related to operation of the Bank or Company, respectively. Any rights of the
parties that have already vested, however, shall not be affected by any such
action.

7

                    (k)          Reductions
of Benefits. Notwithstanding any other provision of this Agreement, if
payments and the value of benefits received or to be received under this
Agreement, together with any other amounts and the value of benefits received
or to be received by the Employee, would cause any amount to be nondeductible
by the Company or any of the Consolidated Subsidiaries for federal income tax
purposes pursuant to or by reason of Section 280G of the Code, then payments
and benefits under this Agreement shall be reduced (not less than zero) to the
extent necessary so as to maximize amounts and the value of benefits to be
received by the Employee without causing any amount to become nondeductible
pursuant to or by reason of Section 280G of the Code. The Employee shall
determine the allocation of such reduction among payments and benefits to the
Employee.

                    (l)          Further
Reductions. Any payments made to the Executive pursuant to this Agreement,
or otherwise, are subject to and conditioned upon their compliance with 12
U.S.C. Section 1828(k) and any regulations promulgated thereunder. 

          8. Notice
of Termination. In the event that the Company or the Bank, or both, desire
to terminate the employment of the Employee during the term of this Agreement,
the Company or the Bank, or both, shall deliver to the Employee a written
notice of termination, stating whether such termination constitutes Termination
for Cause or Involuntary Termination, setting forth in reasonable detail the
facts and circumstances that are the basis for the termination, and specifying
the date upon which employment shall terminate, which date shall be at least 30
days after the date upon which the notice is delivered, except in the case of
Termination for Cause. In the event that the Employee determines in good faith
that he/she has experienced an Involuntary Termination of his/her employment,
he/she shall send a written notice to the Company and the Bank stating the
circumstances that constitute such Involuntary Termination and the date upon
which his/her employment shall have ceased due to such Involuntary Termination.
In the event that the Employee desires to effect a Voluntary Termination,
he/she shall deliver a written notice to the Company and the Bank, stating the
date upon which employment shall terminate, which date shall be at least 90
days after the date upon which the notice is delivered, unless the parties
agree to a date sooner.

          9. Attorneys’
Fees. The Company and the Bank jointly shall pay all legal fees and related
expenses (including the costs of experts, evidence and counsel) incurred by the
Employee as a result of (i) the Employee’s contesting or disputing any
termination of employment, or (ii) the Employee’s seeking to obtain or enforce
any right or benefit provided by this Agreement or by any other plan or
arrangement maintained by the Company or the Bank (or a successor) or the
Consolidated Subsidiaries under which the Employee is or may be entitled to
receive benefits; provided that the Company’s and the Bank’s obligation to pay
such fees and expenses is subject to the Employee’s prevailing with respect to
the matters in dispute in any action initiated by the Employee or the
Employee’s having been determined to have acted reasonably and in good faith
with respect to any action initiated by the Company or the Bank. 

8

          10. No
Assignments.

                    (a)          This
Agreement is personal to each of the parties hereto, and no party may assign or
delegate any of its rights or obligations hereunder without first obtaining the
written consent of the other parties; provided, however, that the
Company and the Bank shall require any successor or assign (whether direct or
indirect, by purchase, merger, consolidation or otherwise) by an assumption
agreement in form and substance satisfactory to the Employee, to expressly
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company and/or the Bank would be required to perform it, if no
such succession or assignment had taken place. Failure to obtain such an
assumption agreement prior to the effectiveness of any such succession or
assignment shall be a breach of this Agreement and shall entitle the Employee
to compensation and benefits from the Company and the Bank in the same amount
and on the same terms as the compensation pursuant to Section 7(d) of this
Agreement. For purposes of implementing the provisions of this Section 10(a),
the date on which any such succession becomes effective shall be deemed the
Date of Termination.

                    (b)          This
Agreement and all rights of the Employee hereunder shall inure to the benefit
of and be enforceable by the Employee’s personal and legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees. 

          11. Notice.
For the purposes of this Agreement, notices and all other communications
provided for in this Agreement shall be in writing and shall be deemed to have
been duly given when personally delivered or sent by certified mail, return
receipt requested, postage prepaid, to the Company and Bank at their home
offices, to the attention of the Board of Directors with a copy to the
Secretary of the Company and the Secretary of the Bank, or, if to the Employee,
to such home or other address as the Employee has most recently provided in
writing to the Company or the Bank.

          12. Amendments.
No amendments or additions to this Agreement shall be binding unless in writing
and signed by both parties, except as herein otherwise provided. 

          13. Headings.
The headings used in this Agreement are included solely for convenience and
shall not affect, or be used in connection with, the interpretation of this
Agreement.

          14. Severability.
The provisions of this Agreement shall be deemed severable and the invalidity
or unenforceability of any provision shall not affect the validity or
enforceability of the other provisions hereof.

          15. Governing
Law. This Agreement shall be governed by the laws of the State of
Washington.

          16. Arbitration.
Any dispute or controversy arising under or in connection with this Agreement
shall be settled exclusively by arbitration in accordance with the rules of the
American Arbitration Association then in effect. Judgment may be entered on the
arbitrator’s award in any

9

court having jurisdiction. Notwithstanding the foregoing, the Company,
the Bank, or both may resort to the Superior Court of Grays Harbor County,
Washington for injunctive and such other relief as may be available in the
event that the Employee engages in conduct, after termination of the Agreement
that amounts to a violation of the Washington Trade Secrets Act or amounts to
unlawful interference with the business expectancies of the Company or the
Bank.

          17. Deferral
of Non-Deductible Compensation. In the event that the Employee’s aggregate
compensation (including compensatory benefits which are deemed remuneration for
purposes of Section 162(m) of the Code) from the Company and the Consolidated
Subsidiaries for any calendar year exceeds the maximum amount of compensation deductible
by the Company or any of the Consolidated Subsidiaries in any calendar year
under Section 162(m) of the Code (the “maximum allowable amount”), then any
such amount in excess of the maximum allowable amount shall be mandatorily
deferred with interest thereon at 8% per annum to a calendar year such that the
amount to be paid to the Employee in such calendar year, including deferred
amounts and interest thereon, does not exceed the maximum allowable amount.
Subject to the foregoing, deferred amounts including interest thereon shall be
payable at the earliest time permissible, and in no event later than required
by Section 409A.

          18. Knowing
and Voluntary Agreement. Employee represents and agrees that he/she has
read this Agreement, understands its terms, and that he/she has the right to
consult counsel of choice and has either done so or knowingly waives the right
to do so. Employee also represents that he/she has had ample time to read and
understand the Agreement before executing it and that he/she enters into this
Agreement without duress or coercion from any source.

* * * * *

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          IN WITNESS
WHEREOF, the parties have executed this Agreement as of the day and year first
above written.

          THIS
AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE
PARTIES.  

	
 

	
 

	
 

	
 

	
Attest:

	
 

	
ANCHOR
 BANCORP

	
 

	
 

	
 

	
 

	

	
 

	

	
Cheryl L.
 Dill, Secretary

	
 

	
By:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Its:

	
Director

	
 

	
 

	
 

	
 

	
Attest:

	
 

	
ANCHOR BANK

	
 

	
 

	
 

	
 

	

	
 

	

	
Cheryl L.
 Dill, Secretary

	
 

	
By:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Its:

	
Director

	
 

	
 

	
 

	
 

	
 

	
 

	
EMPLOYEE

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	

11Exhibit 10.2 

FORM OF

CHANGE IN CONTROL SEVERANCE AGREEMENT

          THIS CHANGE
IN CONTROL SEVERANCE AGREEMENT (the “Agreement”) is made and entered into as of
this ____ day of ___________, 2008, (the “Commencement Date”), by and between
ANCHOR BANK (which, together with any successor thereto which executes and
delivers the assumption agreement provided for in Section 5(a) hereof or which
otherwise becomes bound by all of the terms and provisions of this Agreement by
operation of law, is hereinafter referred to as the “Bank”), and
_______________ (the “Employee”).

          WHEREAS,
the Employee is currently serving as _______________________________; and

          WHEREAS,
the board of directors of the Bank (the “Board”) recognizes that the
possibility of a change in control of the Bank or of its holding company,
Anchor Bancorp (the “Company”), may exist and that such possibility, and the
uncertainty and questions which it may raise among management, may result in
the departure or distraction of key management to the detriment of the Bank,
the Company and its stockholders; and

          WHEREAS,
the Board believes it is in the best interests of the Bank to enter into this
Agreement with the Employee in order to assure continuity of management of the
Bank and to reinforce and encourage the continued attention and dedication of
the Employee to the Employee’s assigned duties without distraction in the face
of potentially disruptive circumstances arising from the possibility of a
change in control of the Company and/or the Bank, although no such change is
now contemplated; and

          WHEREAS,
the Board has approved and authorized the execution of this Agreement with the
Employee;

          NOW,
THEREFORE, in consideration of the foregoing and of the respective covenants
and agreements of the parties herein, it is AGREED as follows:

          1.
Certain Definitions.

                    (a)          The
term “Change in Control” means (1) an offeror other than the Company purchases
shares of stock of the Company or the Bank pursuant to a tender or exchange
offer for such shares; (2) an event of a nature that results in the acquisition
of control of the Company or the Bank within the meaning of the Bank Holding
Company Act of 1956, as amended, under 12 U.S.C. Section 1841 (or any successor
statute or regulation) or requires the filing of a notice with the Federal
Deposit Insurance Corporation (“FDIC”) under 12 U.S.C. Section 1817(j) (or any
successor statute or regulation); (3) any person (as the term is used in Sections
13(d) and 14(d) of the Securities Exchange Act of 1934 (“Exchange Act”)) that
is or becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange
Act) directly or indirectly of securities of the Company or the Bank
representing 25% or more of the combined voting power of the Company’s or the
Bank’s outstanding 

securities; (4) individuals who are members of the board of directors
of the Company immediately following the Commencement Date or who are members
of the Board immediately following the Commencement Date (in each case, the
“Incumbent Board”) cease for any reason to constitute at least a majority
thereof, provided that any person becoming a director subsequent to the
Commencement Date whose election was approved by a vote of at least
three-quarters of the directors comprising the Incumbent Board or whose
nomination for election by the Company’s stockholders was approved by the
nominating committee serving under an Incumbent Board, shall be considered a
member of the Incumbent Board; or (5) consummation of a plan of reorganization,
merger, acquisition, consolidation, sale of all or substantially all of the
assets of the Company or a similar transaction in which the Company is not the
resulting entity, provided that the term “Change in Control” shall not
include an acquisition of securities by an employee benefit plan of the Bank or
the Company.

                    (b)          The
term “Commencement Date” means the date of this Agreement.

                    (c)          The
term “Consolidated Subsidiaries” means any subsidiary or subsidiaries of the
Company (or its successors) that are part of the affiliated group (as defined
in Section 1504 of the Internal Revenue Code of 1986, as amended (the “Code”),
without regard to subsection (b) thereof) that includes the Bank, including but
not limited to the Company.

                    (d)          The
term “Date of Termination” means the date upon which the Employee ceases to
serve as an employee of the Bank.

                    (e)          The
term “Involuntary Termination” means the termination of the employment of
Employee (i) by the Bank, without his/her express written consent; or (ii) by
the Employee by reason of a material diminution of or interference with his/her
duties, responsibilities or benefits, including (without limitation) any of the
following actions unless consented to in writing by the Employee: (1) a
requirement that the Employee be based at any place other than Lacey,
Washington, or within a radius of 35 miles from the location of the Bank’s
administrative offices as of the Commencement Date, except for reasonable
travel on Company or Bank business; (2) a material demotion of the Employee;
(3) a material reduction in the number or seniority of personnel reporting to
the Employee or a material reduction in the frequency with which, or in the
nature of the matters with respect to which such personnel are to report to the
Employee, other than as part of a Bank- or Company-wide reduction in staff; (4)
a reduction in the Employee’s salary or a material adverse change in the
Employee’s perquisites, benefits, contingent benefits or vacation, other than
as part of an overall program applied uniformly and with equitable effect to
all members of the senior management of the Bank; (5) a material permanent
increase in the required hours of work or the workload of the Employee; or (6)
any purported termination of the Employee’s employment, except for Termination
for Cause (and, if applicable, the requirements of Section 1(g) hereof), which purported
termination shall not be effective for purposes of this Agreement. The term
“Involuntary Termination” does not include Termination for Cause, retirement or
suspension or temporary or permanent prohibition from participation in the
conduct of the Bank’s affairs under Section 8 of the Federal Deposit Insurance
Act.

2

                    (f)          The
term “Section 409A” means Section 409A of the Code and the regulations and
guidance of general applicability issued thereunder.

                    (g)          The
terms “Termination for Cause” and “Terminated for Cause” mean termination of
the employment of the Employee because of the Employee’s personal dishonesty,
willful misconduct, breach of a fiduciary duty involving personal profit,
intentional failure to perform stated duties, willful violation of any law,
rule, or regulation (other than traffic violations or similar offenses) or
final cease-and-desist order, or (except as provided below) material breach of
any provision of this Agreement. No act or failure to act by the Employee shall
be considered willful unless the Employee acted or failed to act with an
absence of good faith and without a reasonable belief that his/her action or
failure to act was in the best interest of the Company or the Bank. The
Employee shall not be deemed to have been Terminated for Cause unless and until
there shall have been delivered to the Employee a copy of a resolution, duly
adopted by the affirmative vote of not less than a majority of the entire
membership of the board of directors at a meeting of the Board duly called and
held for such purpose (after reasonable notice to the Employee and an
opportunity for the Employee, together with the Employee’s counsel, to be heard
before the Board), stating that in the good faith opinion of the board of
directors the Employee has engaged in conduct described in the preceding
sentence and specifying the particulars thereof in detail.

          2. Term.
The term of this Agreement shall be a period of three years beginning on the
Commencement Date, subject to earlier termination as provided herein. Beginning
on the first anniversary of the Commencement Date, and on each anniversary
thereafter, the term of this Agreement shall be extended for a period of one
year in addition to the then-remaining term, provided that prior to such
anniversary, the board of directors explicitly reviews and approves the
extension. Reference herein to the term of this Agreement shall refer to both
such initial term and such extended terms.

          3.
Severance Benefits.

                    (a)          If
after a Change in Control, the Bank shall terminate the Employee’s employment
other than for Termination for Cause, or employment is terminated in the event
of Involuntary Termination by the Employee, each within 12 months following a
Change in Control, the Bank shall (i) pay the Employee his/her salary,
including the pro rata portion of any incentive award, through the Date of
Termination; (ii) continue to pay, for the remaining term of this Agreement,
for the life, health and disability coverage that is in effect with respect to
the Employee and his/her eligible dependents; and (iii) pay to the Employee in
a lump sum in cash, within 25 days after the later of the date of such Change
in Control or the Date of Termination, an amount equal to 299% of the
Employee’s “base amount” as determined under Section 280G of the Code.

          Notwithstanding
any other provision of this Agreement, if payments and the value of benefits
received or to be received under this Agreement, together with any other
amounts and the value of benefits received or to be received by the Employee,
would cause any amount to be nondeductible by the Company or any of the
Consolidated Subsidiaries for federal income tax purposes pursuant 

3

to or by reason of Section 280G of the Code, then payments and benefits
under this Agreement shall be reduced (not less than zero) to the extent
necessary so as to maximize amounts and the value of benefits to be received by
the Employee without causing any amount to become nondeductible pursuant to or
by reason of Section 280G of the Code. The Employee shall determine the
allocation of such reduction among payments and benefits to the Employee.

                    (b)          The
Employee shall not be required to mitigate the amount of any payment or benefit
provided for in this Agreement by seeking other employment or otherwise, nor
shall the amount of any payment or benefit provided for in this Agreement be
reduced by any compensation earned by the Employee as the result of employment
by another employer, by retirement benefits after the Date of Termination or
otherwise. This Agreement does not constitute a contract of employment or
impose on the Company or the Bank any obligation to retain the Employee, to
change the status of the Employee’s employment, or to change the Company’s or
the Bank’s policies regarding termination of employment. 

                    (c)          Notwithstanding
the provisions of Section 3(a), payments under Section 3(a)(iii) thereunder: 

	
 

	
 

	
 

	
(i)          shall
 be payable only if the Employee’s termination of employment also constitutes
 a “separation from service” within the meaning of Section 409A, taking into
 account the relevant rules and presumptions in the final Section 409A
 regulations; 

	
 

	
 

	
 

	
(ii)          shall
 be considered made under a “separation pay plan” (within the meaning of
 Section 409A) to the extent such payment may be treated as made under a
 separation pay plan. Any additional amounts due the Employee under Section
 3(a)(iii) shall be (A) considered deferred compensation for purposes of
 Section 409A, and (B) subject to subparagraph (iii) below.

	
 

	
 

	
 

	
(iii)          that
 are considered to be deferred compensation under Section 409A shall not be
 paid earlier than six months after the Employee’s separation from service (as
 defined in Section 3(c)(i) above), if the Employee is a “specified employee”
 (within the meaning of Section 409A). Payment(s) delayed on account of the
 preceding sentence shall be paid on the earlier of the 185th day
 following the Employee’s separation from service (as herein defined) or
 his/her death.

          The purpose
of this paragraph 3(c) is to cause the Agreement to comply with Section 409A,
and these provisions (and the Agreement) shall be administered and interpreted
accordingly.

          4.
Attorneys’ Fees. If the Employee is purportedly Terminated for Cause and
the Bank denies payments and/or benefits under Section 3(a) of this Agreement
on the basis that the Employee experienced Termination for Cause, but it is
determined by a court of competent jurisdiction or by an arbitrator pursuant to
Section 12 that “cause” as contemplated by Section 1(g) of this Agreement did
not exist for termination of the Employee’s employment, or if in any event it
is determined by 

4

any such court or arbitrator that the Bank has failed to make timely
payment of any amounts or provision of any benefits owed to the Employee under
this Agreement, the Employee shall be entitled to reimbursement for all
reasonable costs, including attorneys’ fees, incurred in challenging such
termination of employment or collecting such amounts or benefits. Such
reimbursement shall be in addition to all rights to which the Employee is
otherwise entitled under this Agreement. 

          5.
No Assignments.

                    (a)          This
Agreement is personal to each of the parties hereto, and neither party may
assign or delegate any of its rights or obligations hereunder without first
obtaining the written consent of the other party; provided, however,
that the Bank shall require any successor or assign (whether direct or
indirect, by purchase, merger, consolidation, operation of law or otherwise) to
all or substantially all of the business and/or assets of the Bank, by an
assumption agreement in form and substance satisfactory to the Employee, to
expressly assume and agree to perform this Agreement in the same manner and to
the same extent that the Bank would be required to perform it if no such
succession or assignment had taken place. Failure of the Bank to obtain such an
assumption agreement prior to the effectiveness of any such succession or
assignment shall be a breach of this Agreement and shall entitle the Employee
to compensation and benefits from the Bank in the same amount and on the same
terms that Employee would be entitled to hereunder if an event of Involuntary
Termination occurred, in addition to any payments and benefits to which the
Employee is entitled under Section 3 hereof. For purposes of implementing the
provisions of this Section 5(a), the date on which any such succession becomes
effective shall be deemed the Date of Termination.

                    (b)          This
Agreement and all rights of the Employee hereunder shall inure to the benefit
of and be enforceable by the Employee’s personal and legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees. In the event of the death of the Employee, unless otherwise provided
herein, all amounts payable hereunder shall be paid to the Employee’s devisee,
legatee, or other designee or, if there be no such designee, to the Employee’s
estate.

          6. Deferred
Payments. If following a termination of the Employee, the aggregate
payments to be made by the Bank under this Agreement and all other plans or
arrangements maintained by the Company or any of the Consolidated Subsidiaries
would exceed the limitation on deductible compensation contained in Section
162(m) of the Code in any calendar year, any such amounts in excess of such
limitation shall be mandatorily deferred with interest thereon at 8.0% per
annum to a calendar year such that the amount to be paid to the Employee in
such calendar year, including deferred amounts, does not exceed such limitation,
provided, however, that such deferral shall not extend past when the
deferred amount must be paid pursuant to Section 409A.

          7. Delivery
of Notices. For the purposes of this Agreement, all notices and other
communications to any party hereto shall be in writing and shall be deemed to
have been duly given 

5

when delivered
or sent by certified mail, return receipt requested, postage prepaid, addressed
as follows:

	
 

	
 

	
 

	
 

	
 

	
If to the
 Employee:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
At the
 address last appearing on the personnel records of the Employee

	
 

	
 

	
 

	
 

	
 

	
 

	
If to the
 Bank:

	
Anchor Bank

 120 N. Broadway
Aberdeen, Washington 98520

 Attention: Secretary

	
 

or to such other address as such party may have furnished to the other
in writing in accordance herewith, except that a notice of change of address
shall be effective only upon receipt.

          8. Amendments.
No amendments or additions to this Agreement shall be binding unless in writing
and signed by both parties, except as herein otherwise provided. 

          9. Headings.
The headings used in this Agreement are included solely for convenience and
shall not affect, or be used in connection with, the interpretation of this
Agreement.

          10. Severability.
The provisions of this Agreement shall be deemed severable and the invalidity
or unenforceability of any provision shall not affect the validity or
enforceability of the other provisions hereof.

          11. Governing
Law. This Agreement shall be governed by the laws of the State of
Washington to the extent that federal law does not govern.

          12. Arbitration.
Any dispute or controversy arising under or in connection with this Agreement
shall be settled exclusively by binding arbitration, conducted before a panel
of three arbitrators in a location selected by the Employee within 100 miles of
such Employee’s job location with the Bank, in accordance with the rules of the
American Arbitration Association then in effect. Judgment may be entered on the
arbitrators’ award in any court having jurisdiction. 

* * * * *

6

          IN
WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year first above written.

          THIS
AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE
PARTIES.

	
 

	
 

	
 

	
Attest:

	
 

	
ANCHOR BANK

	
 

	
 

	
 

	

	
 

	

	
Cheryl L.
 Dill, Secretary

	
 

	
By: Jerald
 L. Shaw

	
 

	
 

	
Its:
 President and Chief Executive Officer

	
 

	
 

	
 

	
 

	
 

	
EMPLOYEE

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	

	
 

	
 

	
 

	

7

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