Document:

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                                                                 Exhibit 10.34.3

                              AMENDMENT No. 2 to

                           CAPITAL ACCUMULATION PLAN

The Capital Accumulation Plan (the "Plan"), amended and restated as of September
16, 1998, is hereby further amended effective December 1, 2001, as follows:

1.  Article 3.2 "Participation Election"

     a.  The third sentence is amended to read as follows:

          "In the Participation Election Form, the Participant shall designate
          (i) for Eligible Employees, the total dollar amount of Deferrals to be
          made under the Plan during the Deferral Period (as a whole multiple of
          Total Compensation to a maximum established by the Committee, which
          currently is six times Total Compensation, or, for non-employee
          Directors, the Stock Option Gains from Options to be deferred under
          the Plan during the Deferral Period (as a total number of Options to
          purchase up to a maximum of 18,000 shares of Stock), (ii) the form of
          Retirement Benefit distributions, and (iii) any other information or
          elections required by the Administrator."

2.  All other terms and conditions of the Plan remain in full force and effect.<PAGE>

                                                                   Exhibit 10.10

                              EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the "Agreement") is made and entered by and
between Columbia State Bank, a Washington banking corporation ("Columbia Bank")
together with Columbia Banking System, Inc., a Washington corporation ("CBSI")
(collectively, the "Employer"), and DON L. HIRTZEL (the "Executive"). This
Agreement shall become effective as of October 31, 2000.

                                    RECITALS

     A.   Executive has until recently been serving as a Senior Vice President
          and Regional Manager of another financial institution doing business
          in King County, Washington.

     B.   Employer plans to substantially increase its level of business
          activity in King County and desires to assure itself of the exclusive
          services of Executive to act as Executive Vice President and Northern
          Region Manager of Columbia Bank under the terms of this Agreement.

     C.   Executive desires to accept this management position under the terms
          of this Agreement.

     In consideration of the mutual promises made in this Agreement, the parties
agree as follows:

                                    AGREEMENT

     1.   Employment.

     Employer employs Executive and Executive accepts employment with Employer
on the terms and conditions set forth in this Agreement.

     2.   Term.

     The term of this Agreement will commence as of October 31, 2000, and will
continue until December 31, 2003, unless extended or sooner terminated as
provided in this Agreement.

     3.   Duties.

          (a)  Executive will serve as Executive Vice President of Columbia Bank
               and Manager of the Northern Region of the Bank, headquartered in
               the metropolitan area of Seattle/Bellevue, Washington. In such
               capacity, and subject to the authority of the Chief Executive
               Officer and the Boards of Directors of Columbia Bank and CBSI
               (separately or collectively, the "Board" as applicable), as
               appropriate, Executive will

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               render the executive management services and perform such tasks
               in connection with the affairs of Columbia Bank and CBSI that are
               normal and customary to the positions that he holds.

          (b)  Executive will perform such other duties as may be appropriate to
               his position and as may be prescribed from time to time by the
               Chief Executive Officer of the Board, or that are provided in the
               Bylaws of Columbia Bank of CBSI.

          (c)  Executive will devote his best efforts and all necessary time,
               attention, and effort to the business and affairs of Employer and
               its affiliates, as such business and affairs now exist or
               hereafter may be changed or supplemented, in order to properly
               discharge his responsibilities under this Agreement.

     4.   Salary, Bonus, and Other Compensation.

          4.1  Salary.

               (a)  During the term of this Agreement, Employer will pay
                    Executive an annual (calendar year) base salary of not less
                    than $150,000 per year (payable at the rate of $12,500 per
                    month) beginning October 31, 2000.

               (b)  Columbia Bank will guarantee payment of any portion of
                    Executive's compensation that may be allocated to a
                    subsidiary of CBSI.

               (c)  If this Agreement terminates prior to December 31, 2003,
                    then Employer will pay Executive such greater or lesser
                    amount of the agreed compensation as provided in Section 5.

          4.2  Bonus.

               (a)  Executive will be paid $50,000 as a signing bonus. The
                    payment will be made on the first business day following
                    January 1, 2001. Executive agrees to forfeit the signing
                    bonus in the event that he terminates his employment without
                    good reason prior to December 31, 2001.

               (b)  Executive will be eligible to participate in the bonus
                    pools, if any, that the Board may establish for senior
                    executives, either under an executive incentive plan or
                    otherwise. Executive will be eligible to receive such
                    bonuses up to 35% of base salary if annual financial targets
                    are met.

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          4.3  Stock Options and Stock Grant

               (a)  Executive will be awarded an option to purchase 15,000
                    shares of the common stock of CBSI. The exercise price will
                    be the price at the close of business on the effective date
                    of this Agreement. The shares will vest upon completion of
                    three years employment and the Executive will have five
                    years from the date of vesting in which to exercise the
                    options. Earlier vesting will occur in the event that
                    Executive is terminated without cause prior to the term of
                    this Agreement.

               (b)  Executive will be awarded 5,000 restricted shares of CBSI
                    common stock. The award will be evidenced by a Restricted
                    Stock Award Agreement in form acceptable to CBSI and will
                    require that the Executive remain a Senior Executive of
                    Employer for five years from the date of grant before the
                    restrictions lapse and that the shares will be held in
                    escrow pending completion of that requirement. If Executive
                    is dismissed without cause before that date, all
                    restrictions will lapse, the escrow will be terminated and
                    the shares will belong to Executive free of all restrictions
                    imposed on behalf of Employer.

          4.4  Benefits. In addition to the base salary and bonus payable or
potentially payable to Executive pursuant to this Section 4, Executive will be
entitled to receive benefits similar to those offered to other senior executives
of Employer. During the year 2001, Executive will receive a car allowance of
$4,300, a parking allowance of $1,920 and $5,028 reimbursement of country club
dues.

     5.   Termination of Agreement.

          5.1  Early Termination.

               (a)  This Agreement may be terminated at any time by the Board of
                    Employer or by Executive, and it shall terminate upon
                    Executive's death or disability. Any termination by the
                    Board of Employer other than termination for cause (as
                    defined below) shall not prejudice Executive's right to
                    compensation or other benefits under this Agreement. Except
                    as provided in Section 7, if Executive voluntarily
                    terminates his employment before December 31, 2003, he will
                    be entitled only to such payments as he would have the right
                    to receive upon termination for cause under subsection
                    5.l(b).

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               (b)  Except as provided in Section 7, if Employer terminates his
                    Agreement without cause, Employer shall pay Executive upon
                    the effective date of such termination all salary earned,
                    benefits accrued and all reimbursable expenses hereunder
                    incurred through such termination date and, in addition,
                    liquidated damages in an amount equal to the greater of (i)
                    two years' salary, or (ii) salary for the then-remaining
                    term of the Agreement payable hereunder. If Employer
                    terminates this Agreement for cause, Employer shall pay
                    Executive upon the effective date of such termination only
                    such salary earned, benefits accrued and expenses
                    reimbursable hereunder incurred through such termination
                    date. Executive shall have no right to receive compensation
                    or other benefits for any period after termination for
                    cause.

               (c)  For purposes of this Agreement, the term "cause" shall mean
                    (i) willful misfeasance or gross negligence in the
                    performance of his duties; (ii) conduct demonstrably and
                    significantly harmful to Employer or a financial institution
                    subsidiary); or (iii) conviction of a felony. For purposes
                    of this Agreement, "disability" shall mean a medically
                    reimbursable physical or mental impairment that may be
                    expected to result in death, or to be of long, continued
                    duration, and that renders Executive incapable of performing
                    the duties required under this Agreement. The Board or the
                    Compensation Committee of the Board ("Committee"), acting in
                    good faith, shall make the final determination of whether
                    Executive is suffering under any disability as herein
                    defined and, for purposes of making such determination, may
                    require Executive to submit himself to a physical
                    examination by a physician mutually agreed upon by Executive
                    and the Board or the Committee at Employer's expense.

          5.2  Obligations. Except as otherwise provided in Section 4 or Section
7 or in a particular option grant, Executive's rights, if any, to vested but
unexercised stock options will continue for a period of one year after early
termination, other than termination for cause and Executive's unvested stock
options, if any, shall terminate immediately.

     6.   Restrictive Covenant.

          6.1  Noncompetition.

               (a)  Executive agrees that except as otherwise set forth in this
                    Agreement, he will not, during the term of this Agreement
                    and for a period of two years after the later of (i)
                    expiration of the term of this Agreement, or (ii) completion
                    of service as an active officer of CBSI or Columbia Bank,
                    directly or indirectly, become

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                    interested in, as principal shareholder, director or
                    officer, any financial institution (other than an
                    institution controlled by, controlling, or under common
                    control with Employer and its affiliates) that competes
                    within the State of Washington with Employer or any of its
                    affiliates, with respect to activities of the type performed
                    by such companies within such service area immediately prior
                    to Executive's termination.

               (b)  The restrictions concerning competition after termination as
                    contained in this Section 6.1 shall apply only in the event
                    that Executive voluntarily terminates employment with
                    Employer without good reason. For purposes of this
                    Agreement, termination for "good reason" shall mean
                    termination by Executive as a result of any material breach
                    of this Agreement by Employer, or any substantial diminution
                    of duties of Executive by the Board of either Columbia Bank
                    or CBSI. The provisions restricting competition by Executive
                    may be waived by the Employer.

          6.2  Noninterference. During the noncompetition period described in
Section 6.1, Executive shall not solicit or attempt to solicit any other
employee of Employer or its affiliates to leave the employ of those companies,
or in any way interfere with the relationship between Employer and any other
employee of Employer or its affiliates.

          6.3  Interpretation. If a court or any other administrative body with
jurisdiction over a dispute related to this Agreement should determine that the
restrictive covenants set forth above is unreasonably broad, the parties
authorize such court or administrative body to narrow the covenants so as to
make it reasonable, given all relevant circumstances, and to enforce such
revised covenants. The covenants in this paragraph shall survive termination of
this Agreement.

     7.   Change of Control.

          7.1  Benefits. The parties recognize that a "change of control" of
Employer (as defined in Section 7.2) could be detrimental to Executive's
continued employment. Accordingly, in order to give further assurances to the
Executive to enter into this Agreement, if:

               (a)  There is a change of control; and either;

               (b)  Within 730 days of such change in control, Executive
                    terminates his employment with Employer; or

               (c)  At any time from and after sixty days prior to the public
                    announcement by Employer of a transaction that will result
                    in

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                    the change of control, Employer (or its successor)
                    terminates Executive's employment without cause, then
                    Executive, as of the date of termination of his employment,
                    subject to the remaining provisions of this Section 7.1,
                    shall be paid or provided with: (i) continued payment of his
                    base salary, the pro-rata portion of any incentive payment
                    expected to be received for the year when termination occurs
                    and all benefits provided for in this Agreement until two
                    years following termination or December 31, 2003, whichever
                    is longer; and (ii) vesting of all stock options and lapse
                    of all restrictions with respect to any restricted stock
                    awards shall occur. The provisions of this Section 7.1 shall
                    survive expiration of the term of the Agreement.

          7.2  Definitions. For purposes of this Agreement, the term "change of
control" shall mean the occurrence of one or more of the following events:

               (a)  One person or entity acquiring or otherwise becoming the
                    owner of twenty-five percent or more of CBSI's outstanding
                    common stock;

               (b)  Replacement of a majority of the incumbent directors of CBSI
                    by directors whose elections have not been supported by a
                    majority of the Board of company; or

               (c)  Dissolution or sale of fifty percent or more in value of the
                    assets, of either CBSI or Columbia Bank.

     8.   Miscellaneous.

          8.1  This Agreement contains the entire agreement between the parties
with respect to Executive's employment with Employer and his covenant not to
compete with Employer and its affiliates, and is subject to modification or
amendment only upon amendment in writing signed by both parties.

          8.2  This Agreement shall bind and inure to the benefit of the heirs,
legal representatives, successors, and assigns of the parties, except that
Employer's rights and obligations may not be assigned. The provisions of Section
6.1 of this Agreement are intended to confer upon CBSI and its subsidiaries and
affiliates the benefits of Executive's covenant not to compete.

          8.3  If any provision of this Agreement is invalid or otherwise
unenforceable, all other provisions shall remain unaffected and shall be
enforceable to the fullest extent permitted by law.

          8.4  This Agreement is made with reference to and is intended to be

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construed in accordance with the laws of the State of Washington. Venue for any
action arising out of or concerning this Agreement shall lie in Pierce County,
Washington. In the event of a dispute under this Agreement not involving
injunctive relief, the dispute shall be arbitrated pursuant to the Superior
Court Mandatory Arbitration Rules ("MAR") adopted by the Washington State
Supreme Court, irrespective of the amount in controversy. This Agreement shall
be deemed as stipulation to that effect pursuant to MAR 1.2 and 8.1. The
arbitrator, in his or her discretion, may award attorney's fees to the
prevailing party or parties.

          8.5  Any notice required to be given under this Agreement to either
party shall be given by personal service or by depositing a copy thereof in the
United States registered or certified mail, postage prepaid, addressed to the
following address, or such other address as addressee shall designate in
writing:

                  Employer:              1102 Broadway
                                         Tacoma, WA 98402

                  Executive:             //Address of record//

     IN WITNESS WHEREOF, the parties have executed this Agreement effective on
October 31, 2000.

                                         COLUMBIA STATE BANK

                                         By: /s/ Melanie J. Dressel
                                            ------------------------------------
                                         Melanie J. Dressel
                                         Its President and CEO

                                         COLUMBIA BANKING SYSTEM, INC.

                                         By: /s/ J. James Gallagher
                                            ------------------------------------
                                         J. James Gallagher
                                         Its Vice Chairman and CEO

                                         EXECUTIVE

                                             /s/ Don L. Hirtzel
                                         ---------------------------------------
                                         Don L. Hirtzel

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