Document:

Exhibit 10.21

    
      

    

    Exhibit
      10.21

    TREDEGAR
      CORPORATION

    

    NOTICE
      OF STOCK UNIT AWARD

    

    You
      have
      been granted the following Stock Unit Award by the Executive Compensation
      Committee of the Board of Directors of Tredegar Corporation ("Tredegar"):

    

    
      	
              Name
                of Participant:

            	
              [Name]

            

    

    

    
      	
              Date
                of Grant:

            	
              [Grant
                date]

            

    

    

    
      	
              Number
                of Stock Units:

            	
              [Number
                of Stock Units]

            

    

    

    
      	
              Vesting:

            	
              The
                requirements for earning the award and vesting in the shares of Common
                Stock issued in settlement of the award are set forth in the attached
                Stock Unit Award Terms and
                Conditions.

            

    

    

    
      	
              Expiration
                Date:

            	
              None.

            

    

    

    
      	
              Transferability:

            	
              None;
                other than by will or the laws of descent and
                distribution.

            

    

    

    In
      addition to the foregoing terms, your Stock Unit Award is subject to all of
      the
      terms and conditions contained in the attached Stock Unit Award Terms and
      Conditions which are incorporated in this Notice of Stock Unit Award by this
      reference. If any provision of this Notice of Stock Unit Award is inconsistent
      with the aforementioned Stock Unit Award Terms and Conditions, the Stock Unit
      Award Terms and Conditions will control.

    

    Please
      acknowledge your acceptance of this Stock Unit Award and the attached Stock
      Unit
      Award Terms and Conditions by signing and returning one copy of this Notice
      of
      Stock Award to Pat Thomas, Tredegar Corporation, 1100 Boulders Parkway,
      Richmond, Virginia, 23225.

    

    
      	 	
              TREDEGAR
                CORPORATION

            
	 	 	 
	 	 	 
	 	
              By:

            	 
	 	 	 
	 	 	 
	 	
              Participant

            
	 	 	 
	 	
              Date:

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TREDEGAR
      CORPORATION

     

    STOCK
      UNIT AWARD TERMS AND CONDITIONS

    

    THESE
      STOCK UNIT AWARD TERMS AND CONDITIONS (“Terms and Conditions”) effective as of
      the ____ day of ____________, 2007, govern the Stock Unit Award made by Tredegar
      Corporation, a Virginia corporation (the “Company”), to the participant (the
“Participant”) named in the Notice of Stock Unit Award to which these Terms and
      Conditions are attached (the “Grant Notice”), and are made in accordance with
      and subject to the provisions of the Company's 2004 Equity Incentive Plan (the
      “Plan”). A copy of the Plan has been made available to Participant. All terms
      used in these Terms and Conditions that are defined in the Plan have the same
      meaning given them in the Plan.

    

    1.    Grant
      of Stock Unit Award.
      In
      accordance
      with the Plan, and effective as of the Date of Grant specified in the Grant
      Notice (the “Date of Grant”), the Company granted to the Participant, subject to
      the terms and conditions of the Plan and these Terms and Conditions, the number
      of Stock Units specified in the Grant Notice (the “Stock Units”). The
      Participant will earn the Stock Units to the extent that the requirements of
      Section 2 are satisfied. The Company will issue shares of Common Stock in
      accordance with Section 3 in settlement of the Stock Units, if any, that the
      Participant earns in accordance with Section 2.

    

    2.    Earning
      Stock Units.
      This
      Section 2 determines the number of Stock Units that the Participant earns under
      these Terms and Conditions.

    

    (a)   Performance
      Criteria.
      The
      Participant will earn Stock Units based on the EPA for calendar year 2007 as
      follows:

    

    
      	 	
              2007
                EPA

            	
              Stock
                Units Earned

            

    

    

    
      	 	
              $____________
                (Threshold)

            	
              ______

            

    

    
      	 	
              $____________
                (Target)

            	
              ______

            

    

    
      	 	
              $____________
                or more (Maximum)

            	
              ______

            

    

    

    If
      the
      EPA for calendar year 2007 is greater than the Threshold but less than the
      Target, then the additional number of Stock Units earned by the Participant
      in
      excess of _______ Stock Units will be determined based on a straight line
      interpolation of the EPA in excess of the Threshold. If the EPA for calendar
      year 2007 is greater than the Target but less than the Maximum, then the
      additional number of Stock Units earned by the Participant in excess of _______
      Stock Units will be determined based on a straight line interpolation of the
      EPA
      in excess of the Target.

    

    (b)    Effect
      of Termination During 2007.
      Except
      as provided in subparagraphs (c) and (d), no Stock Units will be earned if
      the
      Participant’s employment with, and service to, the Company and its Affiliates
      terminates or is terminated before January 1, 2008.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (c)    Disability
      Termination or Death During 2007.
      This
      subparagraph (c) applies if the Participant’s employment with, and service to,
      the Company and its Affiliates terminates before January 1, 2008, on account
      of
      the Participant’s permanent and total disability (as defined in Section 22(e)(3)
      of the Code) or death. In that event, the number of Stock Units earned by the
      Participant shall equal the number determined in accordance with subparagraph
      (a) multiplied by a fraction. The numerator of the fraction shall be the number
      of whole months that the Participant was employed by, or providing services
      to,
      the Company or an Affiliate during 2007 (including any period that the
      Participant was absent from work for illness, injury or short term disability
      prior to termination of employment) and the denominator shall be
      twelve.

    

    (d)    Change
      in Control.
      The
      Participant will earn _______ Stock Units if there is a Change in Control before
      January 1, 2008.

    

    3.    Settlement
      of Stock Units.
      The
      Stock Units will be settled in accordance with this Section 3.

    

    (a)    Committee
      Certification.
      As soon
      as practicable after 2007 (but no later than March 15, 2008), the Committee will
      determine the number of Stock Units that are earned under the provisions of
      Section 2. The Committee’s determination shall be set forth in writing, as part
      of the minutes of a meeting of the Committee, by unanimous consent or otherwise.
      Notwithstanding the preceding sentences, a written determination of the
      Committee shall not be required in the case of Stock Units that are earned
      pursuant to the provisions of Section 2(d).

    

    (b)    Issuance
      of Common Stock.
      As soon
      as practicable after the Committee’s certification under subparagraph (a) (but
      no later than March 15, 2008), the Committee shall issue shares of Common Stock
      under the Plan in settlement of the Stock Units earned by the Participant.
      The
      number of shares of Common Stock issued shall equal the number of Stock Units
      earned by the Participant. Notwithstanding the preceding sentences, _______
      shares of Common Stock shall be issued to the Participant on the Control Change
      Date if the Stock Units are earned pursuant to the provisions of Section
      2(d).

    

    (c)    Registration,
      etc.
      Shares
      of Common Stock issued in settlement of the Stock Units shall be registered
      in
      the name of the Participant on the stock transfer books of the Company and
      may
      be evidenced by one or more certificates. Certificates evidencing shares of
      Common Stock that have not become Vested (as defined below) shall be held by
      the
      Company in accordance with the terms of the Plan and shall bear an appropriate
      legend as the Committee shall determine. Custody of those certificates, without
      legend, shall be delivered after the shares have become Vested (as defined
      below).

    

    4.    Vesting
      in Common Stock.
      The
      Participant’s interest in the shares of Common Stock issued under Section 3(b)
      shall be nonforfeitable and transferable (“Vested”) as provided in this Section
      4.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (a)    Immediate
      Vesting.
      The
      Participant’s interest in one-half of the shares of Common Stock issued under
      Section 3(b) shall be immediately Vested as of the date that the shares are
      issued. Notwithstanding the preceding sentence, the Participant shall have
      a
      Vested interest in all of the shares of Common Stock issued under Section 3(b)
      if the Common Stock was issued because the Stock Units were earned in accordance
      with Section 2(c) (because the Participant’s employment with the Company and its
      Affiliates ended in 2007 on account of death or permanent and total disability
      (as defined above)) or Section 2(d) (because of a Change in Control during
      2007).

    

    (b)    Delayed
      Vesting.
      The
      Participant’s interest in any shares of Common Stock that are not immediately
      Vested under subparagraph (a) shall become Vested (i) on January 15, 2009,
      if
      the Participant remains in the continuous employ of, or service to, the Company
      or an Affiliate from the Date of Grant until January 15, 2009, (ii) on the
      date
      that the Participant’s employment and service ends on account of death or
      permanent and total disability (as defined above) if the Participant remains
      in
      the continuous employ of, or service to, the Company or an Affiliate from the
      Date of Grant until such termination or (iii) on a Control Change Date that
      occurs before January 15, 2009, if the Participant remains in the continuous
      employ of, or service to, the Company or an Affiliate from the Date of Grant
      until the Control Change Date.

    

    (c)    Forfeiture.
      Shares
      of Common Stock that have not Vested under subparagraph (a) or (b) on or before
      the date that the Participant’s employment with the Company and its Affiliates
      terminates or is terminated shall be forfeited as of the date of such
      termination.

    

    5.    Nontransferability.
      The
      Stock Units are nontransferable except by will or by the laws of descent and
      distribution. Shares of Common Stock issued in settlement of the Stock Units
      cannot be transferred before the shares become Vested. 

    

    6.    Grant
      of Stock Power.
      The
      Participant hereby appoints Patricia A. Thomas, or her successor, as the true
      and lawful attorney of the Participant, to endorse and execute for and in the
      name and stead of the Participant any certificates evidencing the shares of
      Common Stock issued in settlement of the Stock Units if any of the shares are
      forfeited.

    

    7.    Shareholder
      Rights.
      The
      Participant shall not have any rights as a shareholder of the Company with
      respect to the Stock Units. Upon the issuance of shares of Common Stock in
      settlement of the Stock Units, the Participant shall have all of the rights
      of a
      shareholder of the Company with respect to those shares, including the right
      to
      vote the shares and to receive, free of all restrictions, ordinary cash
      dividends. Stock received as a dividend on, or in connection with a stock split
      of any shares of Common Stock issued in settlement of the Stock Units shall
      be
      subject to the same vesting restrictions as the underlying shares of Common
      Stock. The Participant’s right to receive any extraordinary dividends or
      distributions with respect to shares of Common Stock issued in settlement of
      the
      Stock Units that have not become Vested shall be at the sole discretion of
      the
      Committee, but in the event of any such extraordinary event, the Committee
      shall
      take action appropriate to preserve the value of, and to prevent the unintended
      enhancement of value in such shares of Common Stock.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    8.    
Definitions.
      The
      following definitions shall apply to these Terms and Conditions:

    

    (a)    Control
      Change Date
      means
      the date on which a Change in Control (as defined below) occurs. If a Change
      in
      Control occurs on account of a series of transactions, the Control Change Date
      is the date of the last of such transactions.

    

    (b)    Change
      in Control
      means
      the occurrence of any of the following events:

    

    (1)    any
      Person or group (within the meaning of Sections 13(d)(3) and 14(d)(2) of
      the Securities Exchange Act of 1934, as amended) (other than a Person who is
      not
      an Acquiring Person), at any time becomes the Beneficial Owner of
      50% or
      more
      of the combined voting power of the then outstanding voting securities of the
      Company entitled to vote generally in the election of directors (the "Voting
      Securities"), other than (i) through an acquisition of Voting Securities
      directly from the Company, (ii) as a result of the Company's repurchase of
      Voting Securities if, thereafter, such Beneficial Owner purchases no additional
      Voting Securities, or (iii) pursuant to a Business Combination (as defined
      below) that does not constitute a Change in Control pursuant to subparagraph
      8(b)(3) below;

    

    (2)    Continuing
      Directors cease to constitute a majority of the members of the Board other
      than
      pursuant to a Business Combination that does not constitute a Change in Control
      pursuant to subparagraph 8(b)(3) below;

    

    (3)    Consummation
      of a reorganization, merger, share exchange or consolidation (a "Business
      Combination"), in each case, unless immediately following such Business
      Combination, (i) all or substantially all of the Persons who were the
      Beneficial Owners, respectively, of the Common Stock and Voting Securities
      outstanding immediately prior to such Business Combination Beneficially Own
      more
      than 80% of, respectively, the then outstanding shares of common stock and
      the
      combined voting power of the then outstanding voting securities entitled to
      vote
      generally in the election of directors, as the case may be, of the corporation
      resulting from such Business Combination (including, without limitation, a
      corporation which as a result of such transaction owns the Company through
      one
      or more Subsidiaries) in substantially the same proportions as their ownership,
      immediately prior to such Business Combination, of the Common Stock and Voting
      Securities, as the case may be, (ii) no Person (other than a Person who is
      not an Acquiring Person) Beneficially Owns 50% or more of, respectively, the
      then outstanding shares of common stock of the corporation resulting from such
      Business combination or the combined voting power of the then outstanding voting
      securities of such corporation and (iii) at least a majority of the members
      of the board of directors of the corporation resulting from such Business
      Combination are Continuing Directors; or

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (4)    the
      shareholders of the Company approve a complete liquidation or dissolution of
      the
      Company or the consummation of a sale or other disposition of all or
      substantially all of the assets of the Company, in each case, unless immediately
      following such liquidation, dissolution, sale or other disposition,
      (i) more than 80% of, respectively, the then outstanding shares of common
      stock of such corporation and the combined voting power of the then outstanding
      voting securities of such corporation entitled to vote generally in the election
      of directors is then Beneficially Owned by all or substantially all of the
      Persons who were the Beneficial Owners, respectively, of the Common Stock and
      Voting Securities outstanding immediately prior to such sale or other
      disposition in substantially the same proportion as their ownership, immediately
      prior to such sale or other disposition, of such Common Stock and Voting
      Securities, as the case may be, (ii) less than 20% of, respectively, the
      then outstanding shares of common stock of such corporation and the combined
      voting power of the then outstanding voting securities of such corporation
      entitled to vote generally in the election of directors is then Beneficially
      Owned by any Person (other than any Person who is not an Acquiring Person),
      and
      (iii) at least a majority of the members of the board of directors of such
      corporation are Continuing Directors immediately following such sale or
      disposition.

    

      For
        purposes of the definition of Change
        of Control,
        the
        terms Acquiring
        Person,
        Beneficial
        Owner,
        Company,
        Continuing
        Director,
        and
Person
        shall
        have the same definitions given them in the Rights Agreement between Tredegar
        Corporation and American Stock Transfer & Trust Company, dated as of June
        30, 1999, as amended.

    

     

    (c)    EPA
      has the
      same meaning as set forth in the 2007 Incentive Plan for Executive Officers
      as
      in effect at the time the Stock Units were awarded; provided, however, that
      the
      Committee may adjust the performance criteria, the calculation of EPA or both
      on
      account of changes in generally accepted accounting principles; changes in
      the
      allocation of revenues, expenses, assets and liabilities between the Company
      or
      one or more of its business units; changes in tax law and other events or
      circumstances to assure that the performance criteria and calculation of EPA
      reflect an accurate assessment of the economic profit added of the Company
      or
      one or more of its business units.

    

    9.    Withholding.
      The
      Participant shall pay the Company any amount of taxes as may be necessary in
      the
      opinion of the Company to satisfy tax withholding required under the laws of
      any
      country, state, province, city or other jurisdiction, including but not limited
      to income taxes, capital gains taxes, transfer taxes, and social security
      contributions. In lieu thereof, the Company shall have the right to retain,
      from
      the shares of Common Stock to be issued under Section 3, the number of shares
      of
      Common Stock with Fair Market Value equal to the minimum amount required to
      be
      withheld. In any event, the Company shall have the right to deduct from all
      amounts paid to a Participant in cash (whether under the Plan or otherwise)
      any
      taxes required to be withheld. The Participant shall promptly notify the Company
      of any election made pursuant of Section 83(b) of the Code.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    10.    No
      Right to Continued Employment.
      The
      award of the Stock Units does not give Participant any right with respect to
      continuance of employment by the Company or an Affiliate, nor shall it interfere
      in any way with the right of the Company or an Affiliate to terminate his or
      her
      employment at any time.

    

    11.    Change
      in Capital Structure.
      The
      number of Stock Units and the performance criteria in Section 2 shall be
      adjusted as the Committee determines is equitably required in the event the
      Company effects one or more stock dividends, stock split-ups subdivisions or
      consolidations of shares, other similar changes in capitalization or such other
      events as are described in the Plan.

    

    12.    Governing
      Law.
      These
      Terms and Conditions and the Grant Notice shall be governed by the laws of
      the
      Commonwealth of Virginia.

    

    13.    Conflicts.
      In the
      event of any conflict between the provisions of the Plan as in effect on the
      Date of Grant and the provisions of these Terms and Conditions or the Grant
      Notice, the provisions of the Plan shall govern. All references herein to the
      Plan shall mean the plan as in effect on the Date of Grant.

    

    14.    Participant
      Bound by Plan.
      Participant hereby acknowledges that a copy of the Plan has been made available
      to him or her and agrees to be bound by all the terms and provisions of the
      Plan.

    

    15.    Binding
      Effect.
      Subject
      to the limitations stated above and in the Plan, these Terms and Conditions
      and
      the Grant Notice shall be binding upon Participant and his or her successors
      in
      interest and the successors of the Company.

     

     

    7Exhibit 10.(i)

    
      

    

    Exhibit
      (10)(i)

       

      FRONTIER
        BANK

      CHANGE
        OF
        CONTROL AGREEMENT

      

      This
        CHANGE OF CONTROL AGREEMENT (this “Agreement”) is made by and between FRONTIER
        FINANCIAL CORPORATION and FRONTIER BANK (hereinafter jointly referred to
        as the
“Bank”), and __________________(hereinafter referred to as “Executive”). The
        Bank and Executive are sometimes referred to herein as “the
        Parties.”

       

      WHEREAS,
        Executive has rendered valuable services to the Bank, and the Board of Directors
        of the Bank (the “Board”) desires to be assured that Executive will continue
        rendering such services to the Bank; and

       

      WHEREAS,
        the Board wishes to assure the Bank of continuity of management in the event
        of
        a Change of Control of the Bank; and

       

      WHEREAS,
        Executive desires assurance that Executive will be protected in the event
        of any
        Change of Control;

       

      NOW,
        THEREFORE, in consideration of the mutual covenants and promises herein,
        the
        Parties agree as follows:

       

       1.    Severance
        Benefits.
        The Bank
        agrees that if there is a Change of Control of the Bank and the Bank terminates
        Executive’s employment other than for Cause, as defined below, or Executive
        terminates this Agreement for Good Reason, as defined below, within twenty-four
        (24) months after such Change of Control, Executive shall receive the benefits
        provided in Paragraphs 1.1
        and
1.2
        (the
“Severance Benefit”):

       

                1.1    Executive
        shall receive a lump sum payment equal to two (2) times Executive’s W-2
        compensation before salary deferrals (excluding any gains from stock-based
        compensation) over the twelve (12) months prior to the effective date of
        the
        Change of Control, less statutory payroll deductions on the first day of
        the
        seventh calendar month following the discontinuance of Executive’s employment
        due to a Change of Control; and

                

                1.2    Executive
        shall continue to be covered by all of the Bank’s medical and dental plans for
        twenty-four (24) months following discontinuance of Executive’s employment due
        to a Change of Control.

       

       2.    Termination
        Before Change of Control.
        If
        Executive’s employment is involuntarily terminated (other than for Cause, as
        defined below) or Executive dies or terminates employment due to disability
        as
        defined below on or after the date of the press release announcing the entering
        into of an agreement that will result in a Change of Control of the Bank,
        Executive shall be entitled to the Severance Benefits described in Section
        1,
        said
        benefits to be paid after the Change of Control actually occurs but no earlier
        than the first day of the seventh calendar month following the discontinuance
        of
        Executive’s employment due to a Change of Control. For purposes of this
        paragraph, “disability” shall be determined using the definition of that term in
        the Bank’s long-term disability plan in effect at the time of the disability, or
        if no such plan is then in effect, the definition of “disability” contained in
        such other plan providing a disability benefit. If there is no such plan
        then in
        effect, the definition of “disability” found in Internal Revenue Code Section
        22(e), as may be amended from time to time, shall apply.

      
        
          
            
            

          

          
            -
              1
              -

            
              

            

          

          
            
            

          

        

      

       

                      
        3.      Consideration.

       

                3.1    The
        amounts paid to Executive hereunder shall be considered severance pay in
        consideration of the past services Executive has rendered to the Bank and
        in
        consideration of Executive’s continued service from the date hereof to the date
        of Executive’s entitlement to such payments, and in further consideration for
        the covenant not to compete/non-solicitation, as described in Section
13.

       

                3.2    Executive
        shall have no duty to mitigate the amount of any payment under this Agreement
        by
        seeking other employment. Should Executive actually receive earnings from
        any
        such other employment, the payments called for hereunder shall not be reduced
        or
        offset by any such future earnings.

       

         
 4.    Change
        of Control.“Change
        of Control” as used herein will be deemed to have occurred when there is a
        Change in the Ownership of the Bank. For purposes of this Agreement, a Change
        in
        the Ownership of the Bank shall be deemed to occur when any one person, or
        more
        than one person acting as a group, acquires ownership of the Bank stock that,
        together with stock held by such person or group, constitutes more than fifty
        percent (50%) of the total fair market value or total voting power of the
        Bank.
        A Change in Ownership of the Bank will not occur when any one person, or
        more
        than one person acting as a group, owning more than fifty percent (50%) of
        the
        total fair market value or total voting power of the stock of the Bank acquires
        additional stock. For the purposes of this section, an increase in the
        percentage of stock owned by any one person, or more than one person if acting
        as a group, as a result of a transaction in which the Bank acquires its stock
        in
        exchange for property will be treated as an acquisition of stock.

       

         
 5.    Cause.
        For
        purposes of this Agreement, “Cause” shall mean:

       

                5.1    The
        willful breach or habitual neglect of assigned duties related to the Bank,
        including compliance with the Bank’s policies, and such breach or neglect is
        materially detrimental to the Bank;

       

                5.2    Conviction
        (including any plea of nolo
        contendere)
        of
        Executive of any felony or crime involving dishonesty or moral
        turpitude;

                

                5.3    Any
        act
        of personal dishonesty knowingly taken by Executive in connection with
        Executive’s responsibilities as an employee and intended to result in personal
        enrichment of Executive or any other person;

       

                5.4     Bad
        faith
        conduct that is materially detrimental to the Bank;

       

                5.5    Inability
        of Executive to perform Executive’s duties due to alcohol or illegal drug
        use;

      
        
          
          

        

        
          -
            2
            -

          
            

          

        

        
          
          

        

      

                

                5.6    Executive’s
        failure to comply with any material legal written directive of the Board;
        or

       

                5.7    Any
        act
        or omission of Executive which is of substantial detriment to the Bank because
        of Executive’s intentional failure to comply with any statute, rule or
        regulation, except any act or omission believed by Executive in good faith
        to
        have been in or not opposed to the best interest of the Bank (without intent
        of
        Executive to gain, directly or indirectly, a profit to which Executive was
        not
        legally entitled) and except that Cause shall not mean bad judgment or
        negligence other than habitual neglect of duty.

       

       6.    Good
        Reason.
        For
        purposes of this Agreement, “Good Reason” means any one or more of the
        following: reduction of Executive’s base compensation without Executive’s
        consent (other than as part of an overall program applied uniformly to all
        members of senior management of the Bank); assignment of Executive to a position
        which provides Executive with significantly less responsibility; or the
        relocation or transfer of Executive’s principal place of employment to a
        different location in excess of thirty (30) miles of Executive’s then existing
        principal job location.

       

       7.    Effect
        on Other Benefits.
        The
        arrangements called for by this Agreement are not intended to have any effect
        on
        Executive’s participation in any other benefits available to executive personnel
        or to preclude other compensation or additional benefits as may be authorized
        by
        the Board from time-to-time.

       

       8.    Voluntary
        Retirement.
        In the
        event Executive, after attaining age 60, voluntarily retires within twelve
        (12)
        months following a Change of Control of the Bank, Executive shall receive
        as a
        Severance Benefit a lump sum payment equal to one (1) times Executive’s W-2
        compensation before salary deferrals (excluding any gains from stock-based
        compensation) over the twelve (12) months prior to the effective date of
        the
        Change of Control. Such payment shall be made on the first day of the seventh
        calendar month after the discontinuance of Executive’s employment. In addition,
        Executive shall continue to be covered by all of the Bank’s medical and dental
        plans for twelve (12) months after the discontinuance of Executive’s
        employment.

       

       9.    Golden
        Parachute (FDIC).
        The Bank
        shall not be obligated to make, and Executive shall not be entitled to, any
        payment under this Agreement if such payment would constitute a “golden
        parachute” payment prohibited by 12 U.S.C. 1828(k) or 12 CFR 359.0 et
        seq.
        The
        Bank shall have no liability to Executive under or in relation to this payment
        should any payment be deemed a prohibited “golden parachute”
payment.

       

      10.        
        Golden
        Parachute (IRS).
        Executive is aware that under this Agreement payments made to Executive may
        constitute an “excess parachute payment” under Section 280G of the Internal
        Revenue Code, as amended, and thus would subject Executive to the Excise
        Tax
        under Internal Revenue Code Section 4999, as amended.

       

      11.        
        Binding
        Effect.
        This
        Agreement shall be binding and shall inure to the benefit of the respective
        successors, assigns, legal representative and heirs of the Parties.

       

      12.        
        Miscellaneous.
        If any
        provision of this Agreement shall be held by a court of competent jurisdiction
        to be invalid or unenforceable, the remaining provisions shall continue to
        be
        fully effective. No provision of this Agreement may be modified or waived
        unless
        such waiver or modification is agreed to in writing by Executive and the
        Board.
        This is the entire agreement between the Parties and replaces any prior
        agreement regarding Change of Control. This Agreement shall be governed under
        the laws of the State of Washington.

      
        
          
          

        

        
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      13.         Covenant
        Not to Compete/Non-Solicitation.
        Executive agrees that if Executive receives a Severance Benefit under this
        Agreement, the following shall apply:

       

                                  
        13.1    Executive
        shall not, for a period of two (2) years after termination of employment
        with
        the Bank, directly or indirectly become interested in, as a principal
        shareholder, director, or officer, any financial institution, now existing
        or
        organized hereafter, that competes or will compete with the Bank, including
        any
        successor, or any of the Bank’s affiliates within any county in which the Bank
        does business; provided, that Executive shall not be deemed a “principal
        shareholder” unless (i) Executive’s investment in such an institution exceeds 2%
        of the institution’s outstanding voting securities or (ii) Executive is active
        in the organization, management or affairs of such institution. The provisions
        restricting competition by Executive may be waived by action of the Board.
        Executive recognizes and agrees that any breach of this covenant by Executive
        will cause immediate and irreparable injury to the Bank, and Executive hereby
        authorizes recourse by the Bank to injunction and/or specific performance,
        as
        well as to the other legal or equitable remedies to which the Bank may be
        entitled.

       

                                   
        13.2    During
        the non-competition period described in Paragraph 13.1,
        Executive shall not solicit or attempt to solicit any other employee of the
        Bank
        or its affiliates to leave the employ of those companies, or in any way
        interfere with the relationship between the Bank and any other employee of
        the
        Bank.

       

                     
        14.    Dispute
        Resolution.
        The
        Parties agree to attempt to resolve all disputes arising out of this Agreement
        by mediation. Any party desiring mediation may begin the process by giving
        the
        other party a written Request to Mediate, describing the issues involved
        and
        inviting the other party to join with the calling party to name a mutually
        agreeable mediator and a timeframe for the mediation meeting. The Parties
        and
        mediator may adopt any procedural format that seems appropriate for the
        particular dispute. The contents of all discussions during the mediation
        shall
        be confidential and non-discoverable in subsequent arbitration or litigation,
        if
        any. If the Parties can, through the mediation process, resolve the dispute(s),
        the agreement reached by the Parties shall be reduced to writing, signed
        by the
        Parties, and the dispute shall be at an end.

       

      If
        the
        result of the mediation is a recognition that the dispute cannot be successfully
        mediated, or if either party believes mediation would be unproductive or
        too
        slow, then either party may seek to resolve the dispute in accordance with
        the
        procedures established by Judicial Arbitration and Mediation Services,
        Inc.

       

      The
        award
        rendered by the arbitrator (whether through Judicial Arbitration and Mediation
        Services, Inc. or otherwise) shall be final, and judgment may be entered
        upon it
        in accordance with applicable law in any court having jurisdiction
        thereof.

      
        
          
          

        

        
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      The
        arbitrator shall allocate the costs charged by Judicial Arbitration and
        Mediation Services, Inc., or other arbitrator as the case may be, for the
        arbitration between the Parties in a manner which the arbitrator considers
        equitable. It is agreed that the arbitrator shall award to the prevailing
        or
        substantially prevailing party all fees incurred by such party with regard
        to
        such arbitration, including reasonable legal and accounting fees. If the
        arbitrator determines that there is no prevailing or substantially prevailing
        party, the legal and accounting fees shall be the responsibility of each
        party.

       

      Notwithstanding
        the above, if Executive violates Section 13
        above,
        the Bank will be entitled, in addition to the rights set forth heretofore,
        to
        commence legal action in a court of competent jurisdiction to obtain a
        temporary, primary and permanent injunction in order to prevent or restrain
        the
        breach of Section 13,
        and the
        Bank will not be required to post a bond as a condition to the granting of
        any
        such relief.

       

      15.    Independent
        Legal Counsel.
        Executive acknowledges that they have had the opportunity to review and consult
        with their own personal legal counsel regarding this Agreement.

       

      16.    Termination.
        This
        Agreement shall terminate immediately and without notice (1) upon the voluntary
        or involuntary termination of Executive’s employment, death or disability (as
        defined in Section 2)
        occurring prior to the date of the press release announcing the entering
        into an
        agreement that will result in a Change of Control of the Bank; or (2) if
        Executive’s employment with the Bank is reduced to part time (defined for
        purposes of this Agreement as less than thirty (30) hours per work week)
        other
        than due to short-time disability or medical leave; or (3) upon written notice
        to Executive if Executive’s duties and responsibilities are reduced
        significantly as determined by the Personnel Committee of the Board of
        Directors.

       

      17.    Compliance
        with Internal Revenue Code Section 409A.
        Where
        required, the provisions of this Agreement are intended to comply with the
        requirements of Section 409A of the Internal Revenue Code. Notwithstanding
        any other provision of this Agreement, this Agreement shall be interpreted
        and
        administered in accordance with the requirements of Section 409A of the
        Internal Revenue Code.

       

      IN
        WITNESS WHEREOF, the Parties have signed this Agreement this 3rd
        day of
        January, 2007.

       

      
        	
                FRONTIER
                  FINANCIAL CORPORATIONFRONTIER BANK

              	 	
                EXECUTIVE

              
	 	 	 
	
                By:

              	 	 	 
	 	
                John
                  Dickson, President

              	 	 

      

       

       

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