Document:

Release and Severance Agreement

 Exhibit 10.1 
 RELEASE AND SEVERANCE AGREEMENT 
 This Release and Severance Agreement
(this”Agreement”) is made as of March 6, 2006 by and between Trex Company, Inc., a Delaware corporation (“Trex”), and Philip J. Pifer, an individual residing at 10914 Lake Windermere Drive, Great Falls, VA
22066 (“Employee”). 
 WHEREAS, Trex has notified Employee that his employment with Trex terminates as of January 3,
2006 (the “Termination Date”), regardless of whether Employee executes and delivers this Agreement; and 
 WHEREAS, Trex
wishes to provide Employee certain assistance in transitioning his employment from Trex to another employer and to obtain from Employee certain acknowledgments and agreements and, as a result, Trex is willing to provide Employee with the benefits
set forth in this Agreement; and 
 WHEREAS, the parties intend this Agreement to memorialize the parties’ intent and understandings
with respect to all matters concerning the termination of Employee’s employment with Trex. 
 NOW, THEREFORE, in consideration of the
mutual promises, covenants and agreements set forth in this Agreement, the parties hereby agree as follows: 
  

	 	1.	Payment of Salary. Effective as of the Termination Date, Employee is terminated and, to the extent applicable, resigns from (i) employment with Trex and any
subsidiaries, joint ventures, affiliates, partnerships or any other business ventures of Trex (Trex and any subsidiaries, joint ventures, affiliates, partnerships or other business ventures of Trex are hereinafter collectively referred to as the
“Trex Affiliates”), (ii) any Trex Affiliate Board of Directors and any Trex Affiliate Board of Directors’ positions and (iii) any other position, office, membership or partnership with or in any Trex Affiliate. In
addition, Employee agrees that he shall have no right to further employment, membership, partnership, or any other position or office with or in any Trex Affiliate after the Termination Date. Through and including the Termination Date, Employee
shall be paid at his current annual base salary rate of $285,000.00 and receive benefits as normally provided under Trex’s benefits policies and plans immediately prior to the Termination Date. Following the Termination Date, Employee shall not
be eligible for any annual bonus payment or for any contribution to Trex’s 401(k) Profit Sharing Plan (the “401(k) Plan”) other than a matching contribution as provided in Section 9. Employee shall be paid all salary
earned through the Termination Date, less standard deductions and withholdings for applicable federal, state and local taxes on the next regularly scheduled pay date. 

  

	 	2.	 Severance Pay. In addition to the payment described in Section 1 above, in consideration for Employee executing and delivering this Agreement, Trex
shall continue to pay Employee at his current annual base salary rate of $285,000.00 through the first anniversary of the Termination Date (the “Severance Payment Period”). The amounts payable by Trex to Employee pursuant to this
Section 2 (the “Severance Payments”) shall 

	 	 
be paid in equal bi-weekly installments in accordance with Trex’s regular payroll practices existing as of the date hereof, with payments to begin on
Trex’s first regular payroll date after the seven (7) day waiting period set forth in Section 28 has expired, and to continue on Trex’s regular payroll dates thereafter until fully paid. 

  

	 	3.	Vacation Pay. Trex shall pay Employee for twenty-two (22) days of unused vacation leave for 2006, less standard deductions and withholdings for applicable federal,
state, and local taxes, within thirty (30) days after the Termination Date. 

  

	 	4.	Tax Gross-Up. Trex shall make Employee whole on the amount of any tax liability incurred by Employee in 2005 as a result of Employee’s relocation to Virginia from New
Jersey, as well as for the automobile leased by Trex for Employee’s use, in each case to the extent Trex has not already made Employee whole for such liability. 

  

	 	5.	Outplacement Services; Legal Fees. Trex shall pay for outplacement services provided to Employee by Crenshaw Associates, Inc. through the expiration of the Severance Payment
Period upon the presentment by Employee or Crenshaw Associates, Inc. to Trex of reasonably detailed invoices for such services, it being understood and agreed that Trex shall not be obligated pursuant to this Section 5 or otherwise to pay more
than $25,000 for outplacement services provided to Employee by Crenshaw Associates, Inc. or any third party. Trex shall also pay up to $10,000 of Employee’s legal fees in connection with Employee’s negotiation, execution and delivery of
this Agreement promptly upon receipt of an invoice therefor from Outten & Golden LLP, Employee’s legal counsel. 

  

	 	6.	Reimbursement of Business Expenses. Employee shall be eligible to be reimbursed for any reasonable and necessary expenses incurred by him in connection with his employment
with Trex through the Termination Date in accordance with applicable Trex expense reimbursement policies, provided that any requests for such reimbursement must be made in writing within fifteen (15) days after the date hereof.

  

	 	7.	Health and Dental. Employee’s health and dental insurance coverage with Trex shall be continued through the Severance Payment Period. Trex shall provide Employee with
notice concerning Employee’s rights under COBRA to continue health coverage at Employee’s own expense after expiration of the Severance Payment Period. 

  

	 	8.	Financial Planning. Employee shall be eligible to be reimbursed for any financial planning expenses incurred by him through December 31, 2005, in an amount up to
$10,000, in accordance with applicable Trex financial planning benefit policies. 

  

	 	9.	Other Benefits Plans. Nothing in this Agreement shall affect Employee’s vested benefits as of the Termination Date under the 401(k) Plan other than matching
contributions to which Employee is entitled for employee contributions made prior to the Termination Date. Except as expressly provided in this Agreement, Employee shall not be entitled to and shall not participate in any Trex benefit plans
following the Termination Date. 

  

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	 	10.	Automobile. Trex shall reimburse Employee $3,450 in connection with the deposit previously paid by or on behalf of Employee for the automobile leased by Trex for
Employee’s use, it being acknowledged and agreed by the parties that Employee has returned such automobile to Trex or the applicable leasing company. 

  

	 	11.	Waiver and Release of Claims. 

  

	 	a.	In consideration of the commitments undertaken by Trex and outlined in this Agreement, Employee, for himself, his attorneys, heirs, executors, administrators, successors, and
assigns, does hereby fully and forever release and discharge the Trex Affiliates and all of their subsidiaries, affiliate corporations and all related entities, as well as all of their predecessors, successors, assigns, directors, officers, agents,
employees, former employees, insurers and attorneys (hereinafter “Releasees”) from all suits, causes of action, and/or claims, demands or entitlements of any nature whatsoever, whether known, unknown, or unforeseen, which he has or
may have against the Releasees arising out of or in connection with his employment (and the termination thereof) by Trex, or any related event, transaction, or matter occurring or existing on or before the date of his execution of this Agreement.
Employee agrees, without limiting the generality of this Release, not to file or otherwise institute any claim or lawsuit seeking damages and not to otherwise assert any claims that are lawfully released herein. Employee further hereby irrevocably
and unconditionally waives any and all rights to recover any relief or damages concerning the claims that are lawfully released herein. Employee represents and warrants that he has not previously filed or joined in any such claims, demands or
entitlements against the Releasees and that he shall indemnify and hold harmless the Releasees from all liabilities, claims, demands, costs, and/or expenses incurred as a result of any such claims. 

 EMPLOYEE HEREBY ACKNOWLEDGES AND AGREES THAT THIS RELEASE IS A GENERAL RELEASE AND THAT BY SIGNING THIS AGREEMENT, HE IS SIGNING THIS RELEASE.

  

	 	b.	 This Release specifically includes, but is not limited to, all claims relating to Employee’s employment and the termination of that employment, all claims of
breach of contract, employment discrimination (including, but not limited to, discrimination on the basis of race, sex, religion, national origin, age, disability or any other protected status, and coming within the scope of Title VII of the Civil
Rights Act, the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Americans with Disabilities Act, the Family & Medical Leave Act, the Virginia Human Rights Act, all as amended, or any other applicable
state, federal, or local law), claims under the Employee Retirement Income Security Act, as amended, claims under the Fair Labor Standards Act, as amended, the Virginia Wage Payment Act, as amended (or any other applicable federal, state or local
statute relating to payment of wages), and claims concerning recruitment, hiring, discharge, promotions, transfers, right to reemployment, wages, bonus or incentive pay, severance pay, stock, stock options, benefits due, 

  

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sick leave, holiday pay, vacation pay, life insurance, pension, 401(k) or other retirement plan, any other leave, group medical insurance, any other fringe
benefits, worker’s compensation, termination, employment status, libel, slander, defamation, fraud, intentional or negligent misrepresentation and/or infliction of emotional distress, together with any and all tort, contract, or other claims
which might have been asserted by Employee or on his behalf in any suit, charge of discrimination, or claim against the Releasees. 

  

	 	12.	Return of Trex Property. Employee shall immediately return to Trex all of Trex’s materials, equipment and business records of each Trex Affiliate in Employee’s
possession, including but not limited to, any keys, security cards, corporate credit cards, and the originals and all copies of all files, materials, or documents (whether in tangible or electronic form) relating to the business of any Trex
Affiliate. These items shall be forwarded to Employee’s immediate supervisor’s attention, and packaged and shipped so as to insure no physical damage is incurred. Employee shall use a Mailboxes Plus, or other such service. Trex shall
reimburse Employee for all reasonable, out-of-pocket costs of such shipment. 

  

	 	13.	2004 Agreement. The parties hereby acknowledge and agree that the Employee Agreement dated July 20, 2004 by and between Trex and Employee (the “2004
Agreement”), a copy of which is attached hereto as Exhibit A, shall continue to survive in accordance with its terms, and that nothing in this Agreement shall affect the parties’ respective rights and obligations under the 2004
Agreement, it being acknowledged and agreed by the parties that (a) for purposes of Section 2 of the 2004 Agreement, “proprietary and confidential information of the Company” shall not include (i) information that is or
becomes generally available to the public other than as a result of unauthorized disclosure by Employee or persons to whom Employee has made the information available, (ii) information that has been released without restriction by Trex to
another party, or (iii) information that was received by Employee on a non-confidential basis, prior to receipt by Trex, from a third party lawfully possessing and lawfully entitled to disclose such information and (b) Section 4 of
the 2004 Agreement shall not prohibit Employee from being employed by a company that engages in multiple lines of business, including those described in Section 4 of the 2004 Agreement (the “Competitive Lines of Business”) if
the services Employee provides to such company are unrelated to and do not otherwise involve the Competitive Lines of Business. 

  

	 	14.	Non-Solicitation of Trex Employees. Employee hereby covenants and agrees that, in addition to his obligations under Section 5 of the 2004 Agreement, through the second
(2nd) anniversary of the Termination Date, Employee shall not, directly or indirectly, on behalf of himself or
any other entity, induce or attempt to induce any customer, supplier or other business relation of any Trex Affiliate to cease doing business with any Trex Affiliate or in any way interfere with the relationship between any such customer, supplier
or business relation and any Trex Affiliate. 

  

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	 	15.	Further Covenants. 

  

	 	a.	Employee agrees not to make any public statement or statements concerning any Trex Affiliate or any of their business objectives, management practices, or other sensitive
information without first receiving Trex’s written approval, it being understood, however, that, subject to the immediately succeeding sentence and Section 2 of the 2004 Agreement, Employee shall be permitted to discuss with prospective
employers Employee’s duties and responsibilities at Trex. Employee agrees that he shall not make any disparaging, defamatory or denigrating statements regarding any of the Trex Affiliates or any of their businesses, employees, agents, officers
or directors. 

  

	 	b.	Trex agrees not to publicly disparage, defame or denigrate Employee in any way, and to make reasonable efforts to prevent its officers and directors from doing so as well by
informing them of Trex’s obligation and commitment under this Section 15(b). “Publicly” means in any forum or context in which the statements are intended to or would reasonably be expected to be communicated or repeated to a
broad audience. The term “publicly” is not intended to preclude purely private social conversation, but would encompass without limitation comments in a context in which they could reasonably be expected to gain wide or notable circulation
either in Winchester, Virginia or in executive corporate ranks generally or, in the case of comments by Trex with respect to Employee, become known by an actual or prospective employer. Nothing in this Section 15(b) shall prevent Trex from
(i) responding publicly to incorrect, disparaging, defamatory or derogatory public statements or reports after a request for a retraction has been made by Trex and refused by Employee, to the extent reasonably necessary to correct or refute any
such public statement or report, or (ii) making any truthful statement to the extent (A) necessary with respect to any litigation, arbitration or mediation involving this Agreement or any Equity Award, including, but not limited to, the
enforcement of this Agreement or (B) required by law or by any court, arbitrator, mediator or administrative or legislative body (including any committee thereof) with apparent or actual jurisdiction to order such person to disclose or make
accessible such information. In addition, Trex agrees to respond to any inquiries about the reasons for Employee’s separation from Trex with a statement substantially similar to the following: 

 “Trex has reorganized its executive management team and eliminated the position of SVP of Sales & Marketing. As a result, Andrew Ferrari
will be performing as both COO and SVP of Sales & Marketing, and Phil Pifer departed. While Trex believes that this is a necessary and cost saving measure, Trex is sad to see Mr. Pifer leave. He has made valuable contributions during
his tenure with Trex, and we will miss his leadership.” 
  

	 	16.	 Continuing Assistance. In addition, Employee agrees to fully cooperate with the Trex Affiliates with respect to any litigation, investigation or legal
proceeding to which any of the Trex Affiliates is a party and as to which Employee has relevant information. Trex 

  

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will reimburse Employee in accordance with its standard policies therefor for Employee’s out-of-pocket travel and other incidental expenses reasonably
incurred by Employee incurred as a result of his cooperation pursuant to this Section 16. 

  

	 	17.	Standstill. Employee agrees that, for a period of three (3) years from the Termination Date, unless Employee shall have been specifically invited in writing by Trex to
perform any of the following actions, neither Employee nor any of his “associates” or “affiliates” (as such terms are defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the “1934 Act”))
shall in any manner, directly or indirectly, (a) effect or seek, offer or propose (whether publicly or otherwise) to effect, or cause or participate in or in any way assist (including acting as a financing source) any other person to effect or
seek, offer or propose (whether publicly or otherwise) to effect or participate in (i) any acquisition of any securities of any kind or class, whether equity or debt, or assets of any Trex Affiliate (or of any successor to or person in control
of Trex or having beneficial ownership thereof), except that this clause (i) shall not prohibit Employee from acquiring any securities of Trex of any kind or class, whether equity or debt, of any Trex Affiliate (or of any successor to or person
in control of Trex or having beneficial ownership thereof) provided that the beneficial ownership of such securities by (x) Employee and (y) Employee’s “associates” and “affiliates” (as such terms are defined in
Rule 12b-2 under the 1934 Act) does not in the aggregate equal or exceed two and one-half percent (2.5%) of Trex’s outstanding securities and securities deemed outstanding pursuant to Rule 13d-3(d)(1) under the 1934 Act, (ii) any
tender or exchange offer, merger or other business combination involving any Trex Affiliate, (iii) any recapitalization, restructuring, liquidation, dissolution or other extraordinary transaction with respect to any Trex Affiliate, or
(iv) any solicitation of proxies or consents to vote any voting securities of any Trex Affiliate, (b) form, join or in any way participate in a “group” (as defined in Rule 13d-5 under the 1934 Act) that shall take any of the
actions referred to in clause (a) above, (c) take any action which might force any Trex Affiliate to make a public announcement regarding any of the types of matters set forth in clause (a) above, or (d) enter into any
discussions or arrangements with any third party with respect to any of the foregoing. Nothing herein shall prohibit Employee from selling any security of any Trex Affiliate held by him provided that such sale is permissible under applicable federal
and state securities laws and in accordance with any contractual restrictions. 

  

	 	18.	Effect on Stock Options, Performance Shares and Restricted Stock. 

  

	 	a.	The following is a full and complete list of the Trex equity compensation awards that Employee holds as of the Termination Date(collectively, the “Equity Awards”),
all of which were granted under Trex’s Amended and Restated 1999 Stock Option and Incentive Plan (the “1999 Plan”) prior to the amendment and restatement of the 1999 Plan by Trex’s 2005 Stock Incentive Plan:

  

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	 	  	Number of Shares Remaining	  	 Date of Grant

	Stock Option	  	60,000	  	July 9, 2004
	Stock Option	  	2,051	  	March 9, 2005
	Stock Option	  	12,000	  	March 9, 2005
			
	 	  	Number of Unvested Shares	  	 Date of Grant

	Restricted Stock	  	1,159	  	March 9, 2005
			
	 	  	Number of Units	  	 Date of Grant

	Performance Shares	  	4,500	  	March 9, 2005

  

	 	b.	Employee’s termination of employment pursuant to this Agreement shall be considered a “termination” for the purpose of Section 10.4 of the 1999 Plan and, in
accordance with Section 10.4 of the 1999 Plan, each of the Stock Option grants listed above shall terminate at the close of business on the ninetieth (90th) day following the Termination Date. 

  

	 	c.	Employee shall be fully vested in the Restricted Stock grant listed above as of the Termination Date. 

  

	 	d.	Employee’s Performance Share award listed above shall terminate as of the Termination Date in accordance with the terms and conditions of the 1999 Plan and his Performance
Share Award agreement. 

  

	 	19.	No Admission of Liability. The parties agree and understand that neither this Agreement nor anything contained herein shall be construed as an admission by any Trex Affiliate
of any liability whatsoever, which liability is expressly denied. 

  

	 	20.	Knowing and Voluntary Waiver. Employee acknowledges that (a) Employee has carefully read and fully understands all the provisions of this Agreement, (b) Employee
has been advised to consult an attorney, and that if Employee has not consulted with an attorney, Employee has done so voluntarily, (c) Employee has not relied upon any representation or statement, written or oral, not contained herein, and
(d) Employee has entered into this Agreement knowingly and voluntarily. 

  

	 	21.	Acknowledgement of Consideration. Employee acknowledges that Employee’s waiver and release of rights and claims, and Employee’s undertaking of agreements and
obligations as set forth in this Agreement are in exchange for valuable consideration which Employee would not otherwise be entitled to receive. 

  

	 	22.	Severability. The parties agree that the provisions of this Agreement are divisible and separable so that if any provision or provisions hereof shall be held unreasonable,
unlawful or unenforceable, such holding shall not impair or void the remaining provisions of this Agreement. 

  

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	 	23.	Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of the Commonwealth of Virginia (excluding the choice of laws rules thereof).

  

	 	24.	Notice. All notices, demands, requests, or other communications which are required to be given or otherwise given by either party to the other party pursuant to this
Agreement shall be in writing and shall be deemed delivered upon (a) deposit in the United States mail, registered or certified mail, (b) hand delivery, (c) delivery to an overnight courier, or (d) transmission by facsimile, in
each case addressed to the part to whom directed at the address set forth below or at such other addresses as may be substituted therefore by notice given hereunder. 

 If to Trex: 
 Trex Company, Inc. 
 160 Exeter Drive 
 Winchester, VA 22603-8605 
 Attention: Colleen Combs 
 If to Employee: 
 Philip J. Pifer 
 10914 Lake Windermere Drive 
 Great Falls, VA 22066 
 with a copy (which shall not constitute notice) to: 
 Wendi S. Lazar, Esq. 
 Outten & Golden LLP 
 3 Park Avenue, 29th Floor 
 New York, NY 10016

  

	 	25.	Breach or Violation. Employee and Trex agree that, in the event of violation of the provisions of this Agreement, in addition to any damages allowed by law or as
otherwise provided for in this Agreement, Employee and Trex shall be entitled to injunctive relief. In addition and without limiting the generality of the preceding sentence, if Employee fails to comply with Employee’s obligations or the
conditions set forth in Section 14, 15, 16 or 17 of this Agreement or Section 2, 3, 4 or 5 of the 2004 Agreement on one or more occasions, Employee shall be required to and shall, within fifteen (15) days after Employee’s receipt
of written notice to Employee from Trex, repay to Trex the full amount of the Severance Payments previously paid by Trex and shall not be entitled to any additional Severance Payments. The provision of notice by Trex and the payment by Employee in
accordance with the preceding sentence shall not constitute an election of remedies by Trex, which, consistent with the first sentence of this Section 25, shall continue to be entitled to any and all remedies provided at law or equity for
Employee’s failure to comply as set forth in the preceding sentence. In the event of a judicial determination that any restriction contained in this Agreement is unreasonable, Employee and Trex agree that the court may modify such restriction
to make it reasonable prior to granting any injunctive relief. 

  

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	 	26.	Certain Representations. Each of the parties represents and acknowledges that in executing and delivering this Agreement such party does not rely and has not relied
upon any oral or written representation or statement made by the other party or the other party’s agents, representatives or attorneys with regard to the subject matter, basis or effect of this Agreement or otherwise. 

 

	 	27.	Entire Agreement. This Agreement and the 2004 Agreement contain the entire agreement between the parties relating to the subject matter of this Agreement and the 2004
Agreement and, except as expressly provided in this Agreement, supersede all other agreements between the parties relating to the subject matter hereof or thereof, whether such agreements are written or oral. This Agreement may not be altered or
amended except by an instrument in writing signed by the parties hereto. 

  

	 	28.	Acknowledgment. With respect to the General Release in Sections 11(a) and (b) hereof, Employee agrees and understands that he is specifically releasing all claims under
the Age Discrimination in Employment Act, as amended, 29 U.S.C. § 621 et seq. Employee acknowledges that he has read and understands this Agreement and executes it voluntarily and without coercion. He further acknowledges that he
is being advised herein in writing to consult with an attorney prior to executing this Agreement, and that he has been given a period of twenty-one (21) days within which to consider and execute this Agreement, unless he voluntarily chooses to
execute this Agreement before the end of the twenty-one day period. Employee understands that he has seven (7) days following his execution of this Agreement to revoke it in writing, and that this Agreement is not effective or enforceable until
after this seven-day period. For such revocation to be effective, notice must be received by Trex no later than the end of the seventh calendar day after the date on which Employee executes this Agreement. Employee expressly agrees that, in the
event he revokes this Agreement, the Agreement shall be null and void and have no legal or binding effect whatsoever. The parties recognize that Employee may elect to sign this Agreement prior to the expiration of the twenty-one day consideration
period specified herein, and Employee acknowledges that if he elects to do so, such election is knowing and voluntary and comes after being advised herein in writing to consult with an attorney prior to doing so. 

 [Remainder of page intentionally left blank.] 
  

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

	
	 /s/ Philip J. Pifer

	Philip J. Pifer

 TREX COMPANY, INC. 
  

			
	By:	 	 /s/ Anthony J. Cavanna

		 	Anthony J. Cavanna
		 	 Chairman of the Board of Directors and Chief Executive Officer

  

 -10-Fee Continuation Agreement with Rand Elliott

 Exhibit 10.27 
 DIRECTOR FEE CONTINUATION AGREEMENT 
 THIS AGREEMENT, made and entered into this First Day of
January, 2003, by and between AmericanWest Bank, a bank organized and existing under the laws of the State of Washington (hereinafter referred to as the “Bank”), and Rand Elliott, a member of the Board of Directors of the Bank (hereinafter
referred to as the “Director”). 
 WITNESSETH: 
 WHEREAS, it is the consensus of the Board of Directors (hereinafter referred to as the “Board”) that the Director’s services to the Bank in the past have been of exceptional merit and have constituted
an invaluable contribution to the general welfare of the Bank and in bringing it to its present status of operating efficiency, and its present position in its field of activity; 
 WHEREAS, the Director’s experience, knowledge of the affairs of the Bank, reputation, and contacts in the industry are so valuable that assurance of
the Director’s continued services is essential for the future growth and profits of the Bank and it is in the best interests of the Bank to arrange terms of continued service for the Director so as to reasonably assure the Director’s
remaining in the Bank’s service during the Director’s lifetime or until the age of retirement; 
 WHEREAS, it is the desire of the
Bank that the Director’s services be retained as herein provided; 
 WHEREAS, the Director is willing to continue to serve the Bank
provided the Bank agrees to pay the Director of the Director’s beneficiary(ies), certain benefits in accordance with the terms and conditions hereinafter set forth; 
 ACCORDINGLY, it is the desire of the Bank and the Director to enter into this Agreement under which the Bank will agree to make certain payments to the Director at retirement or the Director’s beneficiary(ies) in
the event of the Director’s death pursuant to this Agreement; 
 FURTHERMORE, it is the intent of the parties hereto that this Director
Plan be considered an unfunded arrangement maintained primarily to provide supplemental retirement benefits for the Director, and to be considered a non-qualified benefit plan for purposes of the Employee Retirement Security Act of 1974, as amended
(“ERISA”). The Director is fully advised of the Bank’s financial status and has had substantial input in the design and operation of this benefit plan; and 
 NOW, THEREFORE, in consideration of services performed in the past and to be performed in the future as well as of the mutual promises and covenants herein contained it is agreed as follows: 

	I.	SERVICE 

 The Director will continue to serve the
Bank in such capacity and with such duties and responsibilities as may be assigned, and with such compensation as may be determined from time to time by the Board of Directors of the Bank. 
  

	II.	FRINGE BENEFITS 

 The fee continuation benefits
provided by this Agreement are granted by the Bank as a fringe benefit to the Director and are not part of any fee reduction plan or an arrangement deferring a bonus or a fee increase. The Director has no option to take any current payment or bonus
in lieu of these fee continuation benefits except as set forth hereinafter. 
  

	III.	RETIREMENT DATE AND NORMAL RETIREMENT AGE 

  

	 	A.	Retirement Date: 

 If the Director continuously
serves the Bank, the Director shall be eligible to retire from active service with the Bank on January 1, 2010 and receive the benefits described below, unless by action of the Board of Directors this period of active service shall be shortened
or extended. 
  

	 	B.	Normal Retirement Age: 

 Normal Retirement Age shall
mean the date on which the Director attains age sixty-five (65). 
  

	IV.	RETIREMENT BENEFIT AND POST-RETIREMENT DEATH BENEFIT 

 Upon said retirement, the Bank, commencing with the first day of the month following the date of such retirement, shall pay the Director a monthly benefit of five hundred dollars ($500). Said benefit shall be paid for a period of one
hundred twenty (120) months; provided, that if less than one hundred twenty (120) such monthly payments have been made prior to the death of the Director, the Bank shall either, at the discretion of the Bank, continue such monthly payments
to the individual or individuals the Director may have designated in writing and filed with the Bank until the full number of one hundred twenty (120) monthly payments have been made, or make the total amount of said payments due in a lump sum*
reduced to present value as set forth in Subparagraph XI (K) to said beneficiary(ies). In the absence of any effective beneficiary designation, any such amounts becoming due and payable upon the death of the Director shall be payable to the
duly qualified executor or administrator of the Director’s estate. Said payments due hereunder shall begin the first day of the second month following the decease of the Director. 
  

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	V.	DEATH BENEFIT PRIOR TO RETIREMENT 

 In the event the
Director should die while actively serving the Bank at any time after the date of this Agreement but prior to January 1, 2010 (or such later date as may be agreed upon), the Bank will pay a monthly benefit of Five Hundred Dollars ($500) for a
period of One Hundred Twenty (120) months, or at the discretion of the Bank, a lump sum* reduced to present value as set forth in Subparagraph XI (K), to such individual or individuals as the Director may have designated in writing and filed
with the Bank. In the absence of any effective beneficiary designation, any such amounts becoming due and payable upon the death of the Director shall be payable to the duly qualified executor or administrator of the Director’s estate. Said
payments due hereunder shall begin the first day of the second month following the decease of the Director. 
  

	VI.	BENEFIT ACCOUNTING 

 The Bank shall account for this
benefit using the regulatory accounting principles of the Bank’s primary federal regulator. The Bank shall establish an accrued liability retirement account for the Director into which appropriate reserves shall be accrued. 
  

	VII.	VESTING 

 Director’s interest in the benefits
that are the subject of this Agreement shall be subject to a vesting schedule described in Schedule A. 
  

	VIII.	OTHER TERMINATION OF SERVICE 

 Subject to
Subparagraph VIII (i) hereinbelow, in the event that the service of the Director shall terminate prior to January 1, 2010 by the Director’s voluntary action, or by the Director’s discharge by the Bank without cause, then this
Agreement shall terminate upon the date of such termination of service and the Bank shall pay to the Director the vested percentage of benefits earned as of the date of termination. Such benefits shall be payable commencing on the Retirement Date
described above. 
 In the event the Director’s death should occur after such severance but prior to the completion of the monthly
payments provided for in this Paragraph VIII, the remaining installments, or a lump sum*, at the discretion of the Bank, shall be paid to such individual or individuals as the Director may have designated in writing and filed with the Bank. In the
absence of any effective beneficiary designation, any such amounts shall be payable to the duly qualified executor or administrator of the Director’s estate. Said payments due hereunder shall begin the first day of the second month following
the decease of the Director. 
 (i) Discharge for Cause: In the event the Director shall be discharged or removed from the Board for
cause at any time, all benefits provided 

  

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herein shall be forfeited. The term “for cause” shall mean any of the following: (i) gross negligence or gross neglect; (ii) the
commission of a felony or gross misdemeanor involving moral turpitude, fraud, or dishonesty; (iii) the willful violation of any law, rule or regulation (other than a traffic violation or similar offense); (iv) an intentional failure to
perform state duties; or (v) a breach of fiduciary duty involving personal profit. If a dispute arises as to discharge “for cause,” such dispute shall be resolved by arbitration as set forth in this Director Plan. 
  

	IX.	CHANGE OF CONTROL 

 The term “Change in
Control” shall mean: (i) any merger or consolidation of the Bank in which the Bank is not the surviving corporation, and any merger or consolidation of the Bank’s parent company in which the parent company is not the surviving
corporation; (ii) any sale, exchange, transfer or other disposition (in one transaction or a series of transactions) of any assets of the Bank or its parent company having an aggregate fair market value of more than 50% of the total value of
the assets of the Bank or such parent company; or (iii) any person (as such term is used in sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934) becomes a beneficial owner, directly or indirectly, of the Bank or its parent
company representing more than 50% of the Bank’s or such parent company’s then outstanding voting stock. 
  

	X.	RESTRICTIONS ON FUNDING 

 The Bank shall have no
obligation to set aside, earmark or entrust any fund or money with which to pay its obligations under this Director Plan. The Directors, their beneficiary(ies), or any successor in interest shall be and remain simply a general creditor of the Bank
in the same manner as any other creditor having a general claim for matured and unpaid compensation. 
 The Bank reserves the absolute right,
at its sole discretion, to either fund the obligations undertaken by this Director Plan or to refrain from funding the same and to determine the extent, nature and method of such funding. Should the Bank elect to fund this Director Plan, in whole or
in part, through the purchase of life insurance, mutual funds, disability policies or annuities, the Bank reserves the absolute right, in its sole discretion, to terminate such funding at any time, in whole or in part. At no time shall any Director
be deemed to have any lien or right, title or interest in or to any specific funding investment or assets of the Bank. 
 If the Bank elects
to invest in a life insurance, disability or annuity policy upon the life of the Director, then the Director shall assist the Bank by freely submitting to a physical exam and supplying such additional information necessary to obtain such insurance
or annuities. 
  

 4 

	XI.	MISCELLANEOUS 

  

	 	A.	Status as an Unsecured General Creditor: 

 Notwithstanding anything contained herein to the contrary: (i) neither the Director, the Director’s spouse of the Director’s designated beneficiaries shall have any legal or equitable rights, interests, or claims in or to any
specific property or assets of the Bank as a result of this Agreement; (ii) none of the Bank’s assets shall be held in or under any trust for the benefit of the Director, the Director’s spouse or the Director’s designated
beneficiaries or held in any way as security for the fulfillment of the obligations of the Bank under this Agreement; (iii) all of the Bank’s assets shall be and remain the general unpledged and unrestricted assets of the Bank;
(iv) the Bank’s obligation under this Agreement shall be that of an unfunded and unsecured promise by the Bank to pay money in the future; and (v) the Director, the Director’s spouse and the Director’s designated
beneficiaries shall be unsecured general creditors with respect to any benefits which may be payable under the terms of this Agreement. 
 Notwithstanding the above, the Director and the Bank acknowledge and agree that, in the event of a Change in Control and at the written request of the Director, the Bank shall establish, not later than the effective date of the Change in
Control, a Rabbi Trust or multiple Rabbi Trusts (the “Trust” or “Trusts”) upon such terms and conditions as the Bank in its sole discretion deems appropriate and in compliance with applicable provisions of the Code in order to
permit the Bank to make contributions and/or transfer assets to the Trust or Trusts to discharge its obligations pursuant to this Agreement. The principal of the Trust or Trusts and any earnings thereon shall be held separate and apart from other
funds of the Bank to be used exclusively for discharge of the Bank’s obligations pursuant to this Agreement and shall continue to be subject to the claims of the Bank’s general creditors until paid to the Director or his beneficiaries in
such manner and at such times as specified in this Agreement. 
  

	 	B.	Binding Obligation of the Bank and any Successor in Interest: 

 The Bank shall not merge or consolidate into or with another bank or sell substantially all of its assets to another bank, firm or person until such bank, firm or person expressly agree, in writing, to assume and
discharge the duties and obligations of the Bank under this Director Plan. This Director Plan shall be binding upon the parties hereto, their successors, beneficiaries, heirs and personal representatives. 
  

 5 

	 	C.	Amendment or Revocation: 

 Subject to Paragraph
XIII, it is agreed by and between the parties hereto that, during the lifetime of the Director, this Director Plan may be amended or revoked at any time or times, in whole or in part, by the mutual written consent of the Director and the Bank.

  

	 	D.	Gender: 

 Whenever in this Director Plan words are
used in the masculine or neuter gender, they shall be read and construed as in the masculine, feminine or neuter gender, whenever they should so apply. 
  

	 	E.	Effect on Other Bank Benefit Plans: 

 Nothing
contained in this Director Plan shall affect the right of the Director to participate in or be covered by any qualified or non-qualified pension, profit sharing, group, bonus or other supplemental compensation or fringe benefit plan constituting a
part of the Bank’s existing or future compensation structure. 
  

	 	F.	Headings: 

 Headings and subheadings in this
Director Plan are inserted for reference and convenience only and shall not be deemed a part of this Director Plan. 
  

	 	G.	Applicable Law: 

 The validity and interpretation of
this Agreement shall be governed by the laws of the State of Washington. 
  

	 	H.	12 U.S.C § 1828(k): 

 Any payments made to the
Director pursuant to this Director Plan, or otherwise, are subject to and conditioned upon their compliance with 12 U.S.C. § 1828(k) or any regulations promulgated thereunder. 
  

	 	I.	Partial Invalidity: 

 If any term, provision,
covenant, or condition of this Director Plan is determined by an arbitrator or a court, as the case may be, to be invalid, void, or unenforceable, such determination shall not render any other term, provision, covenant, or condition invalid, void,
or unenforceable, and the Director Plan shall remain in full force and effect notwithstanding such partial invalidity. 
  

 6 

	 	J.	Continuation as Director: 

 Neither this Agreement
nor the payments of any benefits hereunder shall be construed as giving to the Director any right to be retained as a member of the Board of Directors of the Bank. 
  

	 	K.	Present Value: 

 All present value calculations
under this Agreement shall be based on the following discount rate: 
  

			
	Discount Rate:	  	The discount rate as used in the FASB 87 calculations for the Executive plan.

  

	XII.	ERISA PROVISION 

  

	 	A.	Named Fiduciary and Plan Administrator: 

 The
“Named Fiduciary and Plan Administrator” of this Director Plan shall be AmericanWest Bank until its resignation or removal by the Board. As Named Fiduciary and Plan Administrator, the Bank shall be responsible for the management, control
and administration of the Director Plan. The Named Fiduciary may delegate to others certain aspects of the management and operation responsibilities of the Director Plan including the employment of advisors and the delegation of ministerial duties
to qualified individuals. 
  

	 	B.	Claims Procedure and Arbitration: 

 In the event a
dispute arises over benefits under this Director Plan and benefits are not paid to the Director (or to the Director’s beneficiary(ies) in the case of the Director’s death) and such claimants feel they are entitled to receive such benefits,
then a written claim must be made to the Named Fiduciary and Plan Administrator named above within sixty (60) days from the date payments are refused. The Named Fiduciary and Plan Administrator shall review the written claim and if the claim is
denied, in whole or in part, it shall provide in writing within sixty (60) days of receipt of such claim its specific reasons for such denial, reference to the provisions of this Director Plan upon which the denial is based and any additional
material or information necessary to perfect the claim. Such written notice shall further indicate the additional steps to be taken by claimants if a further review of the claim denial is desired. A claim shall be deemed denied if the Named
Fiduciary and Plan Administrator fail to take any action within the aforesaid sixty-day period. 
 If claimants desire a second review they
shall notify the Named Fiduciary and Plan Administrator in writing within sixty (60) days of the first claim denial. Claimants may review this Director Plan or any documents 

  

 7 

 
relating thereto and submit any written issues and comments it may feel appropriate. In their sole discretion, the Named Fiduciary and Plan Administrator
shall then review the second claim and provide a written decision within sixty (60) days of receipt of such claim. This decision shall likewise state the specific reasons for the decision and shall include reference to specific provisions of
the Plan Agreement upon which the decision is based. 
 If claimants continue to dispute the benefit denial based upon completed performance
of this Director Plan or the meaning and effect of the terms and conditions thereof, then claimants may submit the dispute to an arbitrator for final arbitration. The arbitrator shall be selected by mutual agreement of the Bank and the claimants.
The arbitrator shall operate under any generally recognized set of arbitration rules. The parties hereto agree that they and their heirs, personal representatives, successors and assigns shall be bound by the decision of such arbitrator with respect
to any controversy properly submitted to it for determination. 
 Where a dispute arises as to the Bank’s discharge of the Director
“for cause,” such dispute shall likewise be submitted to arbitration as above described and the parties hereto agree to be bound by the decision thereunder. 
  

	XIII.	TERMINATION OR MODIFICATION OF AGREEMENT BY REASON OF CHANGES IN THE LAW, RULES OR REGULATIONS 

 The Bank is entering into this Agreement upon the assumption that certain existing tax laws, rules and regulations will continue in effect in their
current form. If any said assumptions should change and said change has a detrimental effect on this Director Plan, then the Bank reserves the right to terminate or modify this Agreement accordingly. Upon Change of Control (Paragraph IX), this
paragraph shall become null and void effective immediately upon said Change of Control. 
  

 8 

 IN WITNESS WHEREOF, the parties hereto acknowledge that each has carefully read this Agreement and
executed the original thereof on the first day set forth hereinabove, and that, upon execution, each has received a conforming copy. 
  

					
		 	 AMERICANWEST BANK
 Spokane, Washington

		 
			
	 /s/ Evelyn Dugger
  
	 	 By:
	 	 /s/ Wes Colley
  

	 Witness
	 		 	 Wes Colley

		 		 	 President and CEO

			
	 /s/ Jacqueline A. Barnard
  
	 		 	 /s/ Rand Elliott
  

	 Witness
	 		 	 Rand Elliott, Director

  

 9 

 SCHEDULE A 
 VESTING SCHEDULE 
  

				
	 End of Calendar Year
	  	 Vested
 Percentage
	 
	 December 31, 2002
	  	100	%

  

 10 

 SCHEDULE B 
 WAIVER OF PRIOR PLAN BENEFITS 
 In consideration for the benefits made available to the
Director by this Agreement, the Director and agrees as follows: 
 (a) The Director is party to that certain Executive Salary Continuation
Agreement made with the Bank or its predecessor (the “Prior Plan Agreement”); 
 (b) This Agreement and the benefits hereunder are
provided as a substitute for the Prior Plan Agreement and the benefits provided thereunder; 
 (c) The Prior Plan Agreement and the benefits
thereunder are hereby terminated effective as of the date of this Agreement; 
 (d) The Director hereby waives and relinquishes for himself
or herself, and his or her heirs, beneficiaries, legal representatives, agents, successors and assigns, any and all right, entitlement and interest that the Employee has or may have pursuant to the Prior Plan Agreement and the benefits thereunder;

 (e) The Director accepts the Employee Benefits afforded by this Agreement in full and complete substitution for the benefits otherwise
provided by the Prior Plan Agreement; and the Director acknowledges he (i) has had an opportunity to consult with advisors of the Director’s own choice in determining to enter into this Agreement and this Waiver, (ii) understands that
the effect of this Waiver is to terminate, waive and relinquish forever all rights, entitlements and interests that the Director has or may have under the Prior Plan Agreement and the benefits thereunder as a condition to receiving the benefits
under this Agreement; and (iii) the Director is entering into this Agreement and this Waiver voluntarily and with full appreciation of the effect of doing so. 
  

			
		 	 /s/ Rand Elliott

		 	Rand Elliott

 I consent to and agree to be bound by the foregoing Waiver: 
  

	
	 /s/ Janis Elliott
  

	 Spouse’s Signature

	

  

 11

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