Document:

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                                  EXHIBIT 10.1
                       NONQUALIFIED STOCK OPTION AGREEMENT

      This Nonqualified Stock Option Agreement is made and entered into pursuant
to the terms of the 2003 Stock Incentive Plan (the "Plan") adopted by the Board
of Directors and Shareholders of Umpqua Holdings Corporation (the "Company").
Unless otherwise defined herein, capitalized terms defined in this Nonqualified
Stock Option Agreement shall have the meanings as defined in the Plan.

THE "OPTIONEE"                                         RAYMOND P. DAVIS
                                                     ---------------------------

NUMBER OF SHARES OF THE                                25,000
                                                     ---------------------------
COMPANY'S COMMON STOCK

"EXERCISE PRICE" PER SHARE                             $   28.425
                                                     ---------------------------

"DATE OF GRANT"                                        1/18/2006
                                                     ---------------------------

"EXPIRATION DATE"                                      1/17/2016
                                                     ---------------------------

1.    TERMS OF THE OPTION.

      1.1 Grant of Option. The Company hereby grants to the Optionee the right,
privilege, and option (the "Option") to purchase up to the number of shares of
Common Stock indicated above (the "Option Shares") at the Exercise Price
indicated above, subject to adjustment in accordance with the terms and
conditions of the Plan. The Option may only be exercised as to a whole number of
shares of Common Stock.

      1.2 Status of the Option as a Nonqualified Stock Option. The Company
intends that the Option will not qualify as an incentive stock option within the
meaning of Section 422 of the Internal Revenue Code of 1986, as amended.

      1.3 Limited Transferability of Option. The Option may be transferred by
gift to Permitted Transferees. "Permitted Transferees" includes the Optionee's
spouse, children or a trust for the exclusive benefit of any combination of the
Optionee, the Optionee's spouse and the Optionee's children. A transfer to a
Permitted Transferee will not be effective unless and until the Optionee and the
transferee of the Option execute and deliver to the Company a
Transfer/Assumption of Nonqualified Stock Option Agreement in the form requested
by the Company. Notwithstanding any transfer of the Option, the Optionee shall
remain liable to the Company for any income tax withholding amounts, which the
Bank is required to withhold at the time that the transferred Option is
exercised. Other than as set forth above, the Option and the rights of the
Optionee under this Nonqualified Stock Option Agreement may only be transferred
by will or by the laws of descent and distribution upon the death of Optionee.

      1.4 Reservation of Shares. The Company agrees that at all times there will
be reserved for issuance upon exercise of the Option such number of shares of
its Common Stock as is required for such issuance.

2.    TIME OF EXERCISE OF OPTION.

      2.1 When the Option Becomes Exercisable. Except as otherwise set forth in
Section 5.2 below, the Option may only be exercised in accordance with the
vesting schedule attached hereto (the "Vesting Schedule") and only to the extent
not previously exercised. In the event of certain changes in the capital
structure of the Company, the number of Option Shares vesting at any time as
indicated in the Vesting Schedule may be adjusted as determined appropriate by
the Committee.

      2.2 Effect of Unpaid Leaves of Absence. Unless the Committee at the time
of such leave determines otherwise, if at any time during the term of the
Option, the Optionee is on unpaid leave from the Company or any Subsidiary, the
Option may not be exercised during such unpaid leave and the dates contained in
the Vesting Schedule shall be extended by the length of such unpaid leave.

      2.3 Expiration and Termination of Option. The Option will expire upon the
close of business on the Expiration Date and may terminate earlier upon certain
events as set forth in Section 4 of this Nonqualified Stock Option Agreement. To
the extent that the Option has not been exercised prior to the Expiration Date
or any earlier termination, all further rights to purchase shares pursuant to
the Option will cease and terminate at such time.

3.    OPTION EXERCISE PROCEDURES.

      3.1 Who May Exercise the Option. Only the Optionee (or, in the case of
exercise after death of the Optionee, by the

<PAGE>

executor, administrator, heir, or legatee of the Optionee, as the case may be)
or the Permitted Transferee may exercise the Option.

      3.2 Notice of Exercise. A "Notice of Exercise" must be signed and
delivered to the Company's corporate Secretary or such other person as the
Company may designate at the Company's principal business office of the Company.
A copy of the Company's current form of Notice of Exercise is attached hereto.
The Company, however, reserves the right to revise its form of Notice of
Exercise from time-to-time as it determines to be appropriate. If, at the time
of the exercise of the Option, the Company does not have an effective
registration statement on file with the Securities and Exchange Commission that
covers the issuance of shares upon the exercise of the Option, the Notice of
Exercise will also contain certain representations from the Optionee as required
under applicable state and federal securities laws. A copy of the then-current
form of Notice of Exercise may be obtained at any time from the Company. A
notice will only be effective if submitted on the form in effect at the time of
such exercise.

      3.3 Payment of Exercise Price. The Notice of Exercise must indicate the
manner of payment of the Exercise Price for the number of shares so purchased.
Payment shall be made by cash, by the surrender to the Company for cancellation
of shares of Common Stock or other securities of the Company, based on the Fair
Market Value of the Common Stock, (provided that the surrendered shares of
Common Stock or other securities of the Company shall have been held by the
Optionee for not less than six months), such other valid consideration as the
Committee may, in its sole discretion, permit or any combination of the
foregoing.

      3.4 Payment of Tax Withholding. The Optionee shall pay or make adequate
provision for payment of Tax Withholding upon exercise of the Option. The notice
of exercise shall indicate the method of payment of Tax Withholding, which may
be accomplished by payment in cash, the Company withholding other amounts
payable by the Company to the Optionee, by the application of shares to be
received upon exercise of the Option based on Fair Market Value of the Common
Stock, the surrender of shares of Common Stock or other securities of the
Company based on the Fair Market Value of the Common Stock (provided that the
surrendered shares of Common Stock or other securities of the Company shall have
been held by the Optionee for not less than six months) or any combination of
the foregoing.

      3.5 Delivery of Shares Following Exercise. The Company will make delivery
of a certificate representing the Option Shares purchased within a reasonable
time after it receives the Notice of Exercise, payment in full of the Exercise
Price of the Option Shares being purchased and the payment or adequate provision
for payment of Tax Withholding. However, if any law or regulation requires the
Company to take any action with respect to the issuance of the Option Shares,
including, without limitation, actions that may be required for compliance with
federal and state securities laws or the listing requirements of any stock
exchange upon which the Company's Common Stock is then listed, then the date of
delivery of such certificate may be extended for the period necessary to take
such action. The Optionee shall only become the holder of such shares when the
issuance of the shares is reflected on the Company's stock transfer record,
except that if the Option is exercised conditioned on the occurrence of a Change
of Control Transaction, as provided for in Section 5.3 below, the Optionee shall
be deemed a holder of such shares as of the effective date of the Change of
Control Transaction.

4.    TERMINATION OF THE OPTION

      4.1 Effect of the Death of the Optionee. If the Optionee dies while an
employee of the Company or any Subsidiary, the Option will terminate one year
after the date of such death or, if sooner, upon the Expiration Date. In such
event, the Option may be exercised only to the extent the Optionee was entitled
to exercise the Option on the date of the Optionee's death and only by a
Permitted Transferee or the person or persons to whom the Optionee's rights
under the Option may pass by the Optionee's will or by the laws of descent and
distribution of the state or country of the Optionee's domicile at the time of
death.

      4.2 Effect of the Disability of the Optionee. If the Optionee's employment
by the Company or any Subsidiary terminates as a result of the Optionee becoming
Disabled (as defined in the Plan) while an employee of the Company or any
Subsidiary, the Option will terminate one year after the date of such
termination of employment or, if sooner, upon the Expiration Date. In such
event, the Option may be exercised only to the extent the Optionee or Permitted
Transferee was entitled to exercise the Option on the date of such termination.

      4.3 Effect of Termination of the Employment of the Optionee for Cause. If
the Optionee's employment with the Company or any Subsidiary is terminated for
"cause," the Option will terminate on the effective date of the termination of
the Optionee's employment and shall no longer be exercisable as to any of the
remaining Option Shares. "Cause" shall have the definition given in the attached
vesting schedule.

      4.4 Effect of any other Termination of the Employment of the Optionee. If
the Optionee's employment with the Company or any Subsidiary terminates for any
reason other than the reasons set forth in Sections 4.1, 4.2 or 4.3 of this
Nonqualified Stock Option Agreement, the Option will terminate thirty (30) days
after the date of such termination of employment or, if sooner, upon the
Expiration Date. In such event, the Option may be exercised only to the extent
the Optionee or Permitted Transferee was entitled to exercise the Option on the
date of such termination.

<PAGE>

      4.5 Effect of Change of Control Transaction. Notwithstanding the
provisions of Sections 2.3, 4.1, 4.2, 4.3 or 4.4, the Option may terminate upon
the earlier occurrence of a Change of Control Transaction as provided in Section
5.5 below.

5.    EFFECT OF CHANGE OF CONTROL TRANSACTION

      5.1 Notice of Change of Control Transaction. The Company will provide the
Optionee with written notice of any Change of Control Transaction and will
undertake reasonable efforts to provide such notice at least fifteen (15) days
prior to the effective date of the Change of Control Transaction. Such notice
shall generally describe the expected Change of Control Transaction and the
anticipated effects of the transaction on the Optionee's rights under this
Nonqualified Stock Option Agreement.

      5.2 Accelerated Vesting. Accelerated vesting upon the occurrence of a
Change of Control Transaction, if any, shall be as set forth in the Vesting
Schedule.

      5.3 Conditional Exercise and Deferred Payment. In anticipation of a Change
of Control Transaction, the Optionee shall be permitted to tender a notice of
exercise of the Option that is conditioned on the Change of Control Transaction
actually occurring and the Optionee shall not be required to tender payment of
the exercise price or amounts that the Company may be required to withhold for
tax purposes until after the occurrence of the Change of Control Transaction.

      5.4 Effect on Option Shares and Exercise Price. Following the occurrence
of any Change of Control Transaction, the Option shall be exercisable for the
number and kind of shares, other securities, debt instruments, cash or other
property for which the Option Shares would have been exchanged if they had been
outstanding at the time of the Change of Control Transaction. In addition, the
Exercise Price shall be adjusted such that the aggregate exercise price
following such Change of Control Transaction shall be equal to the product of
the Exercise Price per Share prior to the Change of Control Transaction
multiplied by the number of Option Shares that could be purchased under the
Option at such time without regard to the Vesting Schedule. The determination of
the Committee as to what, if any, adjustments need to be made to the Option
Shares and the Exercise Price and the extent thereof will be final and
conclusive and shall be binding upon the Optionee.

      5.5 Termination. The Option shall terminate effective as of the effective
date of a Change of Control Transaction, unless the terms and conditions of the
Change of Control Transaction provide for the assumption of the Plan and the
continuation of this Nonqualified Stock Option Agreement. Alternatively, the
terms and conditions of the Change of Control Transaction may provide for the
issuance to the Optionee by the Company's successor of a substitute option
granted under a plan adopted by such successor and, subject to Sections 5.2 and
5.4 above, containing terms and conditions substantially equivalent to the terms
and conditions of the Option.

6.    REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE OPTIONEE.

      6.1. No Effect on Employment. The Optionee understands and agrees that
nothing contained in this Nonqualified Option Agreement will be construed to
limit or restrict the rights of the Company to terminate the employment of the
Optionee at any time, with or without cause, to change the duties of the
Optionee or to increase or decrease the Optionee's compensation. Without
limiting the foregoing, the Optionee understands and agrees that the vesting of
shares under this Nonqualified Stock Option Agreement is subject to and is
conditioned upon the continued employment of the Optionee by the Company or a
Subsidiary and that such employment can be terminated at any time by the Company
or its Subsidiary prior to some or all of the Option Shares vesting. In the
event of any such termination, the Optionee understands and agrees that the
Optionee shall have not right or claim, under contract, under any other legal
principle or under any equitable principle to any portion of the unvested Option
Shares.

      6.2 Rights Prior to Exercise of the Option. The Optionee understands and
agrees that the Optionee will have no rights as a shareholder in the Option
Shares, including, without limitation, the right to vote or receive dividends,
until the issuance of the shares is reflected in the Company's stock transfer
records.

      6.3 Tax Implications. The Optionee understands that, under federal, state
and local income tax laws as they currently exist, the exercise of the Option
will result in ordinary income to the Optionee in the amount by which the Fair
Market Value (as of the date of exercise) of the shares acquired upon exercise
exceeds the Exercise Price.

      6.4 Underwriter's Lock-up. If the Optionee is then an executive officer of
the Company, the Optionee by accepting the Option, agrees that whenever the
Company undertakes a firm underwritten public offering of its securities and if
requested by the managing underwriter in such offering, the Optionee will enter
into an agreement not to sell or dispose of any securities of the Company owned
or controlled by the Optionee provided that such restriction will not extend
beyond twelve (12) months from the effective date of the registration statement
filed in connection with such offering.

      6.5 Disclosures. The Optionee acknowledges receipt of a copy of the Plan
and certain related information and represents that the Optionee has fully
reviewed the terms and conditions of the Plan and this Nonqualified Stock Option
Agreement and has had the

<PAGE>

opportunity to obtain the advice of counsel prior to executing this Nonqualified
Stock Option Agreement. The Optionee represents and warrants that the Optionee
is not relying upon any representations, agreements or understandings of or with
the Company except for those set forth in this Nonqualified Stock Option
Agreement.

7.    MISCELLANEOUS PROVISIONS

      7.1 Binding Effect. This Nonqualified Stock Option Agreement will be
binding upon and inure to the benefit of the parties hereto and their heirs,
executors, administrators, successors, and assigns.

      7.2 Notices. All notices or other communications pursuant to this
Agreement shall be in writing and shall be deemed duly given if delivered
personally or by courier service or if mailed by certified mail, return receipt
requested, prepaid and addressed to the Company at its corporate offices to the
attention of the Corporate Secretary or, with respect to the Optionee, to the
latest address reflected on the Company's administrative records, or such other
address as such party shall have furnished to the other party in writing.

      7.3 Governing Law and Interpretation. This Nonqualified Stock Option
Agreement and the Option granted hereunder will be governed by the laws of the
State of Oregon as to all matters, including but not limited to matters of
validity, construction, effect, and performance, without giving effect to rules
of choice of law. This Nonqualified Stock Option Agreement hereby incorporates
by reference all of the provisions of the Plan and will in all respects be
interpreted and construed in such manner as to effectuate the intent of the
Plan. In the event of a conflict between the terms of this Nonqualified Stock
Option Agreement and the Plan, the terms of the Plan will prevail. All matters
of interpretation of the Plan and this Nonqualified Stock Option Agreement,
including the applicable terms and conditions and the definitions of the words,
will be determined in the sole and final discretion of the Committee or the
Company's Board of Directors.

      7.4. Arbitration. The parties agree to submit any dispute arising under
this Nonqualified Stock Option Agreement to final, binding, private arbitration
in Portland, Oregon. This includes not only disputes about the meaning or
performance of the Nonqualified Stock Option Agreement, but disputes about its
negotiation, drafting, or execution. The dispute will be determined by a single
arbitrator in accordance with the then-existing rules of arbitration procedure
of Multnomah County, Oregon Circuit Court, except that there shall be no right
of de novo review in Circuit Court and the arbitrator may charge his or her
standard arbitration fees rather than the fees prescribed in the Multnomah
County Circuit Court arbitration procedures. The proceeding will be commenced by
the filing of a civil complaint in Multnomah County Circuit Court and a
simultaneous request for transfer to arbitration. The parties expressly agree
that they may choose an arbitrator who is not on the list provided by the
Multnomah County Circuit Court Arbitration Department, but if they are unable to
agree upon the single arbitrator within ten days of receipt of the Arbitration
Department list, they will ask the Arbitration Department to make the selection
for them. The arbitrator will have full authority to determine all issues,
including arbitrability, to award any remedy, including permanent injunctive
relief, and to determine any request for costs and expenses in accordance with
Section 7.5 of this Agreement. The arbitrator's award may be reduced to final
judgment in Multnomah County Circuit Court. The complaining party shall bear the
arbitration expenses and may seek their recovery if it prevails. Notwithstanding
any other provision of this Agreement, an aggrieved party may seek a temporary
restraining order or preliminary injunction in Multnomah County Circuit Court to
preserve the status quo during the arbitration proceeding.

      7.5 Attorney Fees. If any suit, action, or proceeding is instituted in
connection with any controversy arising out of this Nonqualified Stock Option
Agreement or the enforcement of any right hereunder, the prevailing party will
be entitled to recover, in addition to costs, such sums as the arbitrator or
court may adjudge reasonable as attorney fees, including fees on any appeal.

UMPQUA HOLDINGS CORPORATION

By:

OPTIONEE:

_____________________________________________

DATE:
     ________________________________________

<PAGE>

                       NONQUALIFIED STOCK OPTION AGREEMENT
                                VESTING SCHEDULE

Under the Nonqualified Stock Option Agreement to which this Vesting Schedule is
attached, Option Shares shall vest and the Option may be exercised only as the
number of Option Shares in accordance with the following schedule:

<TABLE>
<CAPTION>
                     Number of        Aggregate Number
Vesting Date      Shares Vesting      of Vested Shares
------------      --------------      ----------------
<S>               <C>                 <C>
 1/18/2007            7,500                 7,500
 1/18/2008            7,500                15,000
 1/18/2009            5,000                20,000
 1/18/2010            5,000                25,000
</TABLE>

ACCELERATED VESTING. Upon the occurrence of a Change of Control Transaction, all
unvested Option Shares shall vest as of the effective date of the Change of
Control Transaction notwithstanding the terms of the Vesting Schedule.

<PAGE>

TO:   UMPQUA HOLDINGS CORPORATION

      This Notice of Exercise serves as an irrevocable notice from the
undersigned of the undersigned's intent to exercise the following Nonqualified
Stock Option to purchase shares of the Company's Common Stock (all of which are
vested under the Option) under and in accordance with the terms and conditions
set forth in the Plan under which the Nonqualified Stock Option was granted and
the terms of the written Nonqualified Stock Option Agreement.

<TABLE>
<CAPTION>

DATE OF GRANT      NUMBER OF SHARES TO      EXERCISE PRICE PER        AGGREGATE
                      BE EXERCISED                SHARE             EXERCISE PRICE
-------------      -------------------      ------------------      --------------
<S>                <C>                      <C>                     <C>

</TABLE>

                                         (MUST EQUAL NUMBER OF SHARES
                                         MULTIPLIED BY EXERCISE PRICE PER SHARE)

METHOD OF PAYMENT  (INDICATED SELECTED METHOD OR METHODS)

<TABLE>
<CAPTION>
Exercise         Tax
 Price        Withholding
--------      -----------
<S>           <C>              <C>
________       ________        Cash Payment.  My check is stapled to this notice.
                                Mail my certificate to the address of record listed on the bottom of this form.
                                Deliver my shares to Broker listed in the "Broker Section" of this form.

________       ________        Delivery of certificate(s) representing shares of the Company's Common Stock that I have held for at
                               least six months. The certificate(s) are duly endorsed for cancellation of that number of shares
                               that have a fair market value as of the date of exercise equal to the aggregate exercise price less
                               any cash payment enclosed.

________       ________        Delivery of an affidavit attesting to my ownership of _________ shares of the Company's Common Stock
                               that I have held for at least six months. The shares which I currently own will not be cancelled but
                               the new certificate representing the shares being purchased by this exercise will be reduced by that
                               number of shares that have a fair market value as of the date of exercise equal to the aggregate
                               exercise price less any cash payment enclosed.

________       ________        Broker Assisted Cashless Exercise. I have instructed the following broker to wire transfer to the
                               Company from my account an amount equal to the aggregate exercise price and/or Tax Withholding.
</TABLE>

1.1.1 BROKER INFORMATION

Name of Broker:                                      Telephone Number:

Brokerage Firm:                                      Fax Number:

Mailing Address:                                     Account Number:

OPTIONEE:

<TABLE>
<S>                                          <C>
_________________________________________    _________________________________________
(signature of the Optionee)                  (name of the Optionee, printed)

_________________________________________    _________________________________________
                                             (date of signing of notice of exercise)

_________________________________________    _________________________________________
(mailing address for shareholder records)    (Optionee's social security number)
</TABLE><PAGE>

                                                                    EXHIBIT 10.1
                            2006 EMPLOYMENT AGREEMENT

                      Columbia River Bank - James C. McCall

      This Employment Agreement (the "Agreement") is made and entered into
effective the 1st day of April 2006 by and between Columbia River Bank, an
Oregon corporation ("Bank") and James C. McCall ("Employee").

                                    RECITALS

      (1) Bank is a state-chartered Oregon financial institution, and is the
wholly owned subsidiary of Columbia Bancorp ("Bancorp"). Bancorp's principal
office is at 420 East Third Street, Suite 200, The Dalles, Oregon 97058.

      (2) Bank desires to employ Employee as an officer of Bank on the terms and
conditions set forth herein.

      Now, therefore, it is agreed:

      1. RELATIONSHIP AND DUTIES.

      1.1 EMPLOYMENT AND TITLE. Bank shall employ Employee as an officer of Bank
with the title of Executive Emeritus. Subject to the terms and conditions
hereof, employee shall perform such duties and exercise such authority subject
to the general direction of the President and Chief Executive Officer of the
Bank and of the Boards of Directors of Bancorp and the Bank. Such services and
duties shall be exercised in good faith and in accordance with standards of
reasonable business judgment. As used herein, references to "Bank" shall be
deemed to also refer to and include Bancorp where the context requires.

      1.2 DUTIES; CONFLICTS. Employee shall devote his time, attention and
efforts to the diligent performance of his duties while performing as an officer
of the Bank. Employee will not accept employment with any other individual,
corporation, partnership, governmental authority or any other entity, or engage
in any other venture for profit which Bancorp, or any subsidiary, parent, sister
or affiliated corporation of Bancorp, considers to be in conflict with their
best interests or to be in competition with their business, or which may
interfere in any substantial way with Employee's performance of his duties
hereunder.

      1.3 SERVICE ON OTHER COMPANY BOARDS. Nothing in the Agreement shall
prohibit Employee from serving on the board of directors of any profit or
non-profit corporation not in direct competition with Bancorp or with any
subsidiary, parent, sister or affiliated corporation of Bancorp. In addition,
Employee may own stock in any other corporation whether or not the stock is
publicly traded; provided, that if such corporation operates a business in
competition with Bancorp Employee may not own more than five percent (5%) of the
outstanding shares of such corporation.

      2. TERM OF EMPLOYMENT.

      2.1 THREE-YEAR TERM. The term of employment under the Agreement shall
begin on April 1, 2006 and end on March 31, 2009.

      3. TERMINATION.

      3.1 DEFINITION. As used in the Agreement, "termination" shall mean the
termination of Employee's employment relation with Bank, whether initiated by
Bank or by Employee, and whether for cause or without cause.

Page 1 - 2006 EMPLOYMENT AGREEMENT (CRB - McCall)

<PAGE>

      3.2 TERMINATION EVENTS. Notwithstanding any other provisions of the
Agreement, the employment of Employee shall terminate immediately on the earlier
to occur of any of the following:

            3.2.1 Employee's death;

            3.2.2 The discharge of Employee by Bank for cause. "Cause" as used
herein shall mean (i) Employee's gross negligence or willful misconduct as shall
constitute, as a matter of law, a breach of the covenants and obligations of
Employee hereunder; (ii) failure or refusal of Employee to comply with the
provisions of the Agreement; (iii) Employee's conviction by any duly constituted
court with competent jurisdiction of a crime (other than traffic offenses); (iv)
Employee's malfeasance or incompetence, provided that in applying this criteria
Bank shall not be unreasonable or arbitrary, and provided further that prior to
effecting a dismissal under this Section (iv) Bank shall afford Employee with
fair and reasonable written warning and with a fair and reasonable opportunity
to cure any defects in Employee's performance.

      3.3 TERMINATION BY EMPLOYEE. Employee may terminate his employment with
Bank with or without cause by giving thirty (30) days written notice of
termination. "Cause" as used herein shall include Bank's failure or refusal to
comply with the provisions of the Agreement.

      3.4 EFFECT OF TERMINATION. The termination of Employee's employment shall
constitute a tender by Employee of his resignation as an officer of Bank, and as
a member of any board of directors or board committees of Bancorp or its
affiliates if Employee is a member thereof at the time of termination.

      3.5 PAYMENT ON TERMINATION. If Employee's employment is terminated by
Employee with or without cause, or by Bank with or without cause, Employee shall
be paid all base salary and benefits accrued under the Agreement as of the
termination date.

      3.6 SEVERANCE PAYMENT. If Employee's employment is terminated by Employee
with cause, or by Bank without cause, Employee shall be paid all base salary and
benefits accrued under the Agreement as of the termination date, and in
addition, shall be entitled to a severance payment equal to the greater of (i)
one month's base salary (based on an annual salary figure equal to $119,000
rather than Employee's actual annual salary) multiplied by the number of full
calendar years Employee has been employed by Bank or any predecessor thereof, or
(ii) one month's base salary (based on an annual salary figure equal to $119,000
rather than Employee's actual annual salary) multiplied by twelve (12). For
purposes of Section 3.6(i) a period of continuous full-time employment for six
months or more in a calendar year shall count as a full calendar year. If for
any period Employee has been employed simultaneously by Bank and by one or more
of its affiliates, such period shall count only once in determining the
severance payment under Section 3.6(i). The severance payment provided herein
shall be paid in full within thirty (30) days of the date of Employee's
termination. Employee shall not be entitled to such severance payment if
Employee's employment is terminated by Bank with cause, in which case Employee
shall only be entitled to receive on termination a payment equal to Employee's
base salary and benefits accrued under the Agreement as of the termination date,
and no other payments.

      3.7 PERFORMANCE BONUS. If Employee's employment is terminated by Employee
with cause, or by Bank without cause, Employee shall be paid, in addition to the
amounts payable under Sections 3.5 and 3.6 of the Agreement: (i) all
nonforfeitable deferred compensation, if any; and (ii) unpaid performance bonus
payments, if any, payable under Section 4.2 of the Agreement, which shall be
declared earned and payable based upon performance up to, and shall be pro-rated
as of, the date of termination. Employee shall not be entitled to such unpaid
performance bonus payments if Employee's employment is terminated by Bank with
cause, or by Employee without cause.

      3.8 EFFECT OF DISABILITY. Notwithstanding any other provision of the
Agreement, Employee's inability to perform the services required of Employee
under the Agreement because of disability shall not constitute cause for
termination; provided, that Employee shall receive no base salary under the
Agreement for hours not worked as a result of such disability. Nothing herein
shall preclude Employee from utilizing earned and available sick leave during
any period of disability. "Disability" as used herein shall mean the

Page 2 - 2006 EMPLOYMENT AGREEMENT (CRB - McCall)

<PAGE>

inability of Employee, due to illness, accident, or other physical or mental
incapacity, to perform the services required under the Agreement.

      3.9 EARLY TERMINATION OPTION. Notwithstanding any other provision in the
Agreement or any retirement arrangement contract between the parties, Employee
may terminate his employment with the Bank without cause at any time on or after
April 1, 2006 and if Employee does so, Bank shall pay Employee the sum of $6,000
per month (with a pro-rata payment for any partial month) for the period
beginning on the date of such termination by Employee through and including
March, 2008.

      4. COMPENSATION.

      4.1 BASE SALARY AND HOURS. For the period beginning April 1, 2006 and
ending March 31, 2009 Employee shall be paid an annual base salary of $72,000,
payable in equal bimonthly installments and subject to any deductions required
by law. Employee shall devote no less than one hundred twenty (120) hours per
four-week period to his duties under the Agreement; provided, that Employee's
failure or refusal to work in excess of 120 hours per such for-week period shall
not constitute cause for termination.

      4.2 PERFORMANCE BONUS. Employee shall be entitled to consideration for
annual performance bonus compensation for each calendar year constituting a
percentage of annual base salary earned from his employment by Bank during such
calendar year. Bonus compensation shall be subject to any deductions required by
law. The Bank or Bancorp Board shall timely, and at least once yearly, determine
the amount of and the formulas and methods for establishing such bonus
compensation. The amount of such bonus compensation shall at all times be
discretionary, and Bank may decline to award a performance bonus to Employee in
any year.

            4.2.1 Employee shall be entitled to a pro-rata performance bonus for
less than a full year of performance if Employee's employment is terminated by
Employee with cause, or by the Bank without cause (including termination
following a change of control as described in Section 7.4 of the Agreement),
prior to the date on which Employee would otherwise be entitled to consideration
for Employee's annual performance bonus. In such circumstances, such pro-rata
performance bonus shall be declared earned and payable as of the date of
termination.

      5. BENEFITS; PURCHASE OF SHARES.

      5.1 ELIGIBILITY FOR GENERAL BENEFITS. Employee shall be eligible to
participate in any plan of Bank or its affiliates relating to stock options,
stock purchases, profit sharing, group life insurance, medical coverage,
education and other retirement or employee benefits that Bank or its affiliates
may adopt for the benefit of employees.

      5.2 CAR ALLOWANCE. Employee shall receive no car allowance.

      5.3 ADDITIONAL BENEFITS. Employee shall be eligible to participate in any
other benefits which may be or become applicable to Bank's employees of similar
rank. In addition, Employee shall be entitled to: (i) a reasonable expense
account for use in connection with Bank business; and (ii) any other benefits
which in Bank's judgment are commensurate with the responsibilities and
functions to be performed by Employee under the Agreement, including the payment
of reasonable expenses for attendance by Employee and Employee's spouse at
annual meetings of the Oregon Bankers Association.

      5.4 SHARE OWNERSHIP. During the term of the Agreement, including
extensions, Employee shall purchase shares of Bancorp Stock, including purchases
through the exercise of stock options, in accordance with the share ownership
policies and requirements established by Bancorp or Bank management in effect
from time to time for employees of comparable rank.

Page 3 - 2006 EMPLOYMENT AGREEMENT (CRB - McCall)

<PAGE>

      6. VACATIONS AND LEAVES.

      6.1 PAID VACATION. During the term of the Agreement, Employee shall be
entitled to annual paid vacation benefits identical to those offered to
employees of Bank holding executive vice president or higher positions, subject
to adjustment based on Employee's part-time status pursuant to the mutual
agreement of the parties. The timing of vacations shall be scheduled in a
reasonable manner by Employee. Employee shall not be entitled to receive any
additional compensation from Bank on account of his failure to take a vacation,
and may not accumulate unused vacation time from one calendar year to the next.

      6.2 LEAVES WITH OR WITHOUT PAY. The Bank Board may grant Employee a leave
or leaves of absence, with or without pay, at such time or times and upon such
terms and conditions as the Board may determine.

      6.3 MANDATORY ABSENCE. In each calendar year Employee shall be absent from
Bank for one period of two consecutive weeks. Such period may include vacation,
leave, sick leave, attendance at seminars or conventions, or any combination
thereof.

      7. CHANGE OF CONTROL.

      7.1 SURVIVAL OF RIGHTS. Employee's rights on termination of employment
under Section 3 of the Agreement, as well as all other rights of Employee under
the Agreement or applicable law, shall survive a change of control of Bancorp or
Bank whether or not Employee opposed or favored the change of control.

      7.2 RIGHTS ON CHANGE OF CONTROL. If a change of control of Bancorp or Bank
occurs while the Agreement is in effect, Employee shall have ninety (90) days
following the date such change of control becomes effective to elect to
terminate Employee's employment with cause. If Employee so elects to terminate,
such termination shall constitute a termination by Employee with cause, and
Employee shall receive all payments and benefits due to Employee on termination
by Employee with cause under Section 3 of the Agreement.

      7.3 BASE COMPENSATION. Following a change of control, Bank shall not
reduce Employee's base compensation in effect prior to the effective date of the
change of control for a period of time equal to the greater of (i) twelve (12)
months from the effective date of the change of control; (ii) one (1) month for
each full calendar year Employee has been employed by Bank; or (iii) the
remaining term of the Agreement, including any extensions thereof. For purposes
of this Subsection 7.3, a period of continuous full-time employment for six
months or more in a calendar year shall count as a full calendar year.

      7.4 TERMINATION WITHOUT CAUSE.

            7.4.1 If following a change of control which is effective on or
before December 31, 2006 Bank terminates Employee's employment within one (1)
year of the effective date of the change of control because of a reduction in
force or for any other reason, other than for cause pursuant to Section 3.3 of
the Agreement, such termination shall constitute a termination by Bank without
cause, and Employee shall receive all payments and benefits due to Employee on
termination under Sections 3.5 and 3.6 of the Agreement, plus: (i) all
nonforfeitable deferred compensation, if any; and (ii) unpaid performance bonus
payments, if any, payable under Section 4.2 of the Agreement, which shall be
declared earned and payable based upon performance up to, and shall be pro-rated
as of, the date of termination.

            7.4.2 If following a change of control which is effective on or
after April 1, 2006 Bank terminates Employee's employment within one (1) year of
the effective date of the change of control because of a reduction in force or
for any other reason, other than for cause pursuant to Section 3.3 of the
Agreement, such termination shall constitute a termination by Bank without
cause, and Employee shall receive all payments and benefits due to Employee on
termination under Sections 3.5 and 3.6 of the Agreement, plus: (i) all
nonforfeitable deferred compensation, if any; and (ii) unpaid performance bonus
payments, if any, payable under Section 4.2 of the Agreement, which shall be
declared earned and payable

Page 4 - 2006 EMPLOYMENT AGREEMENT (CRB - McCall)

<PAGE>

based upon performance up to, and shall be pro-rated as of, the date of
termination; provided, that the severance payment under Section 3.6 shall be
determined based on Employee's actual base salary at the time of termination
rather than on an annual base salary equal to $119,000.

      7.5 OPTIONS AND STOCK. If Employee is a participant in a restricted stock
plan or share option plan, and such plan is terminated involuntarily as a result
of the change of control, all stock and options shall be declared fully vested
and shall be paid, awarded or otherwise distributed. With respect to any
unexercised options under any stock option plan, such options may be exercised
within the period provided in such plan. Effective as of the date of the change
of control, any holding period established for stock paid as bonus or other
compensation shall be deemed terminated, except as otherwise provided by law.

      7.6 DEFINITION. As used in this Section, "control" shall mean the
acquisition during Employee's employment of twenty-five percent (25%) or more of
the voting securities of Bancorp or Bank by any person, or persons acting as a
group within the meaning of Section 13(d) of the Securities Exchange Act of
1934, or to such acquisition of a percentage between ten percent (10%) and
twenty-five percent (25%) if the Board or the Comptroller of the Currency, the
FDIC, or the Federal Reserve Bank have made a determination that such
acquisition constitutes or will constitute control of Bancorp or Bank. The term
"person" refers to an individual, corporation, bank, bank holding company, or
other entity, but excludes any Employee Stock Ownership Plan established for the
benefit of employees of Bancorp or any of its subsidiaries or other affiliates.

      8. POST TERMINATION COVENANTS.

      8.1 NON-COMPETE COVENANTS. If Employee terminates his employment without
cause, or if Employee's employment is terminated by Bank for cause, then for one
year from the date of such termination Employee will not, without the prior
written consent of Bank:

            8.1.1 Undertake full or part-time work, either as an employee or as
a consultant, for another financial institution if such work is to be done, in
whole or in part, in or from an office or other work site in Yamhill, Wasco,
Hood River, Jefferson, Deschutes, Sherman or Gilliam Counties, Oregon, in
Klickitat County, Washington, or in any other county in Oregon or Washington in
which Bancorp or any of its affiliates has a place of business at the time of
termination; or

            8.1.2 Hire for any financial institution or other employer
(including himself) any employee of Bancorp or any of its affiliates, or
directly or indirectly cause such an employee to leave his or her employment to
work for another employer, if such employee is to work in or from an office or
other work site in Yamhill, Wasco, Hood River, Jefferson, Deschutes, Sherman or
Gilliam Counties, Oregon, in Klickitat County, Washington, or in any other
county in Oregon or Washington in which Bancorp or any of its affiliates has a
place of business at the time of termination.

      8.2 LIQUIDATED DAMAGES FOR BREACH OF NON-COMPETE COVENANTS; OTHER
REMEDIES. If Employee breaches the covenants of Section 8.1, Employee shall be
liable to Bank for liquidated damages equal to the lesser of (i) $18,000, or
(ii) $1,500 multiplied by the number of months (including fractions thereof)
between the date of breach and one year from the date of Employee's termination
of employment. For example, if the date of breach occurs six months after the
date of Employee's termination, liquidated damages shall be $9,000 (6 x $1,500).
The parties agree that Bank's actual money damages upon Employee's breach will
be difficult to compute, and further agree that the liquidated damages formula
provided herein reasonably represents Bank's actual money damages. Employee
shall pay the liquidated damages required hereunder within ten (10) days of the
date Bank makes written demand for such payment. Nothing herein shall preclude
Bank from enforcing any other legal or equitable remedies it may have upon
Employee's breach, including injunctive relief. Such other remedies may be
enforced in addition to Bank's right to liquidated damages under this Section.

      8.3 LIMITATION. The covenants in Sections 8.1 and 8.2 do not apply if
Employee terminates his employment for cause, if Employee terminates his
employment for any reason within ninety (90) days

Page 5 - 2006 EMPLOYMENT AGREEMENT (CRB - McCall)

<PAGE>

after the effective date of a change of control within the meaning of Section 7
of the Agreement, or if Employee's employment is terminated by Bank without
cause.

      8.4 ADDITIONAL COVENANTS. The following provisions shall apply and be
binding on Employee following Employee's termination of employment under all
circumstances, whether termination occurred with cause, without cause, following
illness or disability, because of a change of control, or for any other reason:

            8.4.1 Employee shall fully cooperate in the defense or prosecution
of any litigation arising from or relating to matters about which Employee has
knowledge based on his employment or other work, paid or unpaid, for Bank and
its affiliates. To the extent allowed by law Employee shall receive reasonable
compensation in connection with his performance under this Section 8.4.1;

            8.4.2 Employee shall at all times keep all confidential and
proprietary information gained from his employment by Bank, or from other
previous, present or subsequent paid or unpaid work for Bank and its affiliates,
in strictest confidence, and will not disclose or otherwise disseminate such
information to anyone, other than to employees of Bank or its affiliates, except
as may be required by law, regulation or subpoena; and

            8.4.3 Employee shall not take or use for any purpose confidential or
proprietary information of Bank or its affiliates, including without limitation
customer or potential customer lists and trade secrets.

      8.5 ADVANCEMENT OF EMPLOYEE. Employee acknowledges and agrees that the
Agreement constitutes either an initial employment of Employee, insofar as
Employee's previous contract with Employer has expired, or constitutes a bona
fide advancement of Employee with the Employer under ORS 653.295 in several
respects.

      9. MISCELLANEOUS.

      9.1 RECITALS; LAW; AMENDMENTS. Each and every portion of the Agreement is
contractual and not a mere recital, and all recitals shall be deemed
incorporated into the Agreement. The Agreement shall be governed by and
interpreted according to Oregon law and any applicable federal law. The
Agreement may not be amended except by a subsequent written agreement signed by
all parties hereto.

      9.2 ENTIRE AGREEMENT. The Agreement contains the entire understanding and
agreement of the parties with respect to the parties' relationship, and all
prior negotiations, discussions or understandings, oral or written, are hereby
integrated herein. No prior negotiations, discussions or agreements not
contained herein or in such documents shall be binding or enforceable against
the parties.

      9.3 COUNTERPARTS. The Agreement may be signed in several counterparts. The
signature of one party on any counterpart shall bind such party just as if all
parties had signed that counterpart. Each counterpart shall be considered an
original. All counterparts of the Agreement shall together constitute one
original document.

      9.4 SUCCESSORS AND ASSIGNS. All rights and duties of Bank under the
Agreement shall be binding on and inure to the benefit of Bank's successors and
assigns, including any person or entity which acquires a controlling interest in
Bank and any person or entity which acquires all or substantially all of Bank's
assets. Bank and any such successor or assign shall be and remain jointly and
severally liable to Employee under the Agreement. Employee may not assign or
transfer Employee's rights or interests in or under the Agreement other than by
a will or by the laws of descent and distribution. The Agreement shall inure to
the benefit of and be enforceable by Employee's estate or legal representative.

      9.5 WAIVER. Any waiver by any party hereto of any provision of the
Agreement, or of any breach thereof, shall not constitute a waiver of any other
provision or of any other breach. If any provision,

Page 6 - 2006 EMPLOYMENT AGREEMENT (CRB - McCall)

<PAGE>

paragraph or subparagraph herein shall be deemed invalid, illegal or
unenforceable in any respect, the validity and enforceability of the remaining
provisions, paragraphs and subparagraphs shall not be affected.

      9.6 ARBITRATION. Any dispute, controversy, claim or difference concerning
or arising from the Agreement or the rights or performance of either party under
the Agreement, including disputes about the interpretation or construction of
the Agreement, shall be settled through binding arbitration in the State of
Oregon and in accordance with the National Rules For The Resolution of
Employment Disputes. A judgment upon the award rendered in such arbitration may
be entered in any court of competent jurisdiction.

      9.7 EMPLOYEE HANDBOOK. Employee agrees to be bound by the terms and
conditions of any employee handbook of Bank or its affiliates as may be in
effect from time to time, except that in the event of a conflict between such
employee handbook and the Agreement, the Agreement shall control.

      9.8 CAPTIONS. All captions, titles and headings in the Agreement are for
convenience only, and shall not be construed to limit any term of the Agreement.

      9.9 DEFINITION. When used herein in reference to a corporation,
"affiliate" shall mean, without limitation, any parent or subsidiary of the
corporation and any entity controlled by the corporation.

      9.10 EXCEPTIONS. The Bank Board or the management of Bank may, in its
discretion, make exceptions to one or more of the conditions imposed upon
Employee contained in the Agreement, provided that any such exceptions must be
approved in writing.

      9.11 PRIOR CONTRACTS. The Agreement replaces and supersedes all prior
written employment agreements and amendments thereof between the parties.

________________________________________
Employee

COLUMBIA RIVER BANK

By:
   _____________________________________

Title:
      __________________________________

Page 7 - 2006 EMPLOYMENT AGREEMENT (CRB - McCall)

<PAGE>

                 FIRST AMENDMENT TO 2002 SPLIT DOLLAR AGREEMENT

                      COLUMBIA RIVER BANK - JAMES C. McCALL

      This Amendment (the "Amendment") is made and entered into effective the
1st day of April, 2006 by and between COLUMBIA RIVER BANK, a state-chartered
commercial bank located in The Dalles, Oregon (the "Bank"), and JAMES C. McCALL
(the "Executive").

                                    RECITALS

      WHEREAS, the Executive and the Bank made and entered into a 2002 Split
Dollar Agreement (the "Agreement") on the 18th day of January, 2002; and

      WHEREAS, the Executive and the Bank wish to specify in writing certain
amendments to the Agreement;

      NOW, THEREFORE, in consideration of the services to be performed by the
Executive in the future, as well as the mutual promises and covenants contained
herein, the Executive and the Bank agree as follows:

      1. Increase in Benefit Coverage. Effective April 1, 2006, the coverage
afforded to Insured under the Agreement shall be increased to $215,000.00, and
Insured's transferee or beneficiary shall have rights in and to the designated
proceeds whether or not Insured is terminated from employment, and regardless of
whether any such termination occurs prior to Insured's Normal Retirement Age.

      2. Ratification. Executive and the Bank hereby reaffirm and ratify all
remaining terms of the Agreement not specifically amended
herein.

_______________________________________
Executive

COLUMBIA RIVER BANK

By:
   ____________________________________

Title:
      _________________________________

Page 8 - 2006 EMPLOYMENT AGREEMENT (CRB - McCall)

<PAGE>

           FIRST AMENDMENT TO EXECUTIVE SALARY CONTINUATION AGREEMENT

                      COLUMBIA RIVER BANK - JAMES C. McCALL

      This Amendment (the "Amendment") is made and entered into effective the
1st day of April, 2006 by and between COLUMBIA RIVER BANK, a state-chartered
commercial bank located in The Dalles, Oregon (the "Bank"), and JAMES C. McCALL
(the "Executive").

                                    RECITALS

      WHEREAS, the Executive and the Bank made and entered into an Executive
Salary Continuation Agreement (the "Agreement") on the 3rd day of June, 2002;
and

      WHEREAS, the Executive and the Bank wish to specify in writing certain
amendments to the Agreement;

      NOW, THEREFORE, in consideration of the services to be performed by the
Executive in the future, as well as the mutual promises and covenants contained
herein, the Executive and the Bank agree as follows:

      1. Amendment of Section 2.1(1). Section 2.1(1) of the Agreement is amended
to provide:

            "2.1(1) Amount of Benefit. The annual benefit under this Section 2.1
is $ 23,000. Commencing at the end of the first Payment Year, and each Payment
Year thereafter, the annual benefit shall be increased 3% percent from the
previous Payment Year."

      2. Ratification. Executive and the Bank hereby reaffirm and ratify all
remaining terms of the Agreement not specifically amended herein.

_______________________________________
Executive

COLUMBIA RIVER BANK

By:
   ____________________________________

Title:
      _________________________________

Page 9 - 2006 EMPLOYMENT AGREEMENT (CRB - McCall)

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