Document:

Each of the directors (and former directors)
of Bank of the Cascades identified below entered into an Indemnification Agreement with Bank of the Cascades, the form of which
is attached, effective on the dates indicated below.

 

The Indemnification Agreements between
Bank of the Cascades and Mr. Wells does not include Section 3. Otherwise, the Indemnification Agreements are substantially identical in all material respects.

 

	BOTC Directors	 	Effective Date
	Jerol E. Andres	 	February 3, 2011
	Chris Casciato	 	January 28, 2011
	Michael J. Connolly	 	January 28, 2011
	Henry Hewitt	 	February 2, 2011
	Judith Johansen	 	February 16, 2011
	J. LaMont Keen	 	November 17, 2011
	James B. Lockhart III	 	January 28, 2011
	Patricia L. Moss	 	February 2, 2011
	Ryan R. Patrick	 	February 2, 2011
	Thomas M. Wells	 	January 28, 2011
	Terry E. Zink	 	January 3, 2012
	Retired Director:	 	 
	Gary L. Hoffman	 	February 23, 2011

 

    	 

    	 

    

 

BANK OF THE CASCADES

INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement (this “Agreement”)
dated as of [_____], is made between Bank of the Cascades, an Oregon corporation (the “Bank”), and [_____] (“Indemnitee”).

 

RECITALS

 

A.           Indemnitee
is [currently serving] [willing to serve] as a director, officer, employee and/or agent of the Bank, and in such capacity Indemnitee
[is performing] [will perform] valuable services for the Bank.

 

B.           The
Bank’s Articles of Incorporation (the “Articles”) provide for the indemnification of members of its Board of
Directors, and the bylaws of the Bank (the “Bylaws”) further provide for the indemnification of members of its Board
of Directors to the full extent permitted by the laws of the State of Oregon, including the Bank Act (the “Act”).

 

C.           The
Act is not exclusive in the rights provided, and it contemplates that agreements may be entered into between the Bank and the members
of its Board of Directors, as well as its officers, employees and/or agents with respect to the indemnification of such directors,
officers, employees and/or agents.

 

D.           In
order to induce Indemnitee to [continue to] serve as a director, officer, employee and/or agent of the Bank, the Bank has agreed
to enter into this Agreement with Indemnitee.

 

AGREEMENT

 

In consideration of the recitals above,
the mutual covenants and agreements herein contained, and Indemnitee’s [continued] service as a director, officer, employee
and/or agent, as the case may be, of the Bank after the date hereof, the parties to this Agreement agree as follows:

 

1.           Indemnity
of Indemnitee

 

1.1           Scope.
If Indemnitee was or is made a party, or is threatened to be made a party, to or is otherwise involved (including, without limitation,
as a witness) in any Proceeding (as defined below), the Bank agrees to and shall hold harmless and indemnify Indemnitee from and
against any and all losses, claims, damages, liabilities or expenses (including attorneys’ fees, judgments, fines, taxes
or penalties, amounts paid in settlement and other expenses incurred in connection with such Proceeding) (collectively, “Damages”)
to the full extent permitted by law, notwithstanding that such indemnification is not specifically authorized by this Agreement,
the Articles, the Bylaws, the Act or otherwise.

 

    	 

    	 

    

 

In the event of any change, after the date
of this Agreement, in any applicable law, statute or rule regarding the right of an Oregon banking institution to indemnify a member
of its Board of Directors, such changes, to the extent that they would expand Indemnitee’s rights hereunder, shall be within
the purview of Indemnitee’s rights and the Bank’s obligations hereunder, and, to the extent that they would narrow
Indemnitee’s rights hereunder, shall be excluded from this Agreement.

 

1.2           Nonexclusivity.
The indemnification provided by this Agreement shall not be deemed exclusive of any rights to which Indemnitee may be entitled
under the Act, the Articles, the Bylaws, any agreement, any general or specific action of the Bank’s Board of Directors,
vote of shareholders or otherwise. To the extent that there is a conflict or inconsistency between the terms of this Agreement
and the Articles or Bylaws, it is the intent of the parties hereto that the Indemnitee shall enjoy the greater benefits regardless
of whether contained herein, in the Articles or in the Bylaws. No amendment or alteration of the Articles or Bylaws or any other
agreement shall adversely affect the rights provided to Indemnitee under this Agreement.

 

1.3           Partial
Indemnity. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Bank for some or a portion
of Indemnitee’s expenses incurred in any Proceeding, but not, however, for all of the total amount thereof, the Bank shall
nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

 

1.4           Burden
of Proof. In connection with any determination by the Board of Directors, any court or otherwise as to whether Indemnitee is
entitled to be indemnified hereunder, the Board of Directors or court shall presume that Indemnitee has satisfied the applicable
standard of conduct and is entitled to indemnification, and the burden of proof shall be on the Bank or its representative to establish,
by clear and convincing evidence, that Indemnitee is not so entitled.

 

1.5           Reliance
as Safe Harbor. Indemnitee shall be entitled to indemnification for any action or omission to act undertaken (i) in good faith
reliance upon the records of the Bank, including its financial statements, or upon information, opinions, reports or statements
furnished to Indemnitee by the officers or employees of the Bank or any of its subsidiaries in the course of their duties, or by
committees of the Board of Directors, or by any other person as to matters Indemnitee reasonably believes are within such other
person’s professional or expert competence, or (ii) on behalf of the Bank in furtherance of the interests of the Bank in
good faith in reliance upon, and in accordance with, the advice of legal counsel or accountants, provided such legal counsel or
accountants were selected with reasonable care by or on behalf of the Bank. In addition, the knowledge and/or actions, or failures
to act, of any other director, officer, agent or employee of the Bank shall not be imputed to Indemnitee for purposes of determining
the right to indemnity hereunder.

 

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1.6           Definition
of Proceeding. For purposes of this Agreement, “Proceeding” shall mean any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative and whether formal or informal, in which Indemnitee
is, was or becomes involved by reason of the fact that Indemnitee is or was a director, officer, employee and/or agent of the Bank
or that, being or having been such a director, officer, employee and/or agent, Indemnitee is or was serving at the Bank’s
request as a director, officer, partner, trustee, employee or agent of another foreign or domestic corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise (collectively a “Related Company”), including service with
respect to an employee benefit plan, whether the basis of such proceeding is alleged action (or inaction) by Indemnitee in an official
capacity as a director, officer, partner, trustee, employee or agent or in any other capacity while serving as a director, officer,
partner, trustee, employee or agent; provided, however, that, except with respect to an action to enforce the provisions of this
Agreement, “Proceeding” shall not include any action, suit or proceeding instituted by or at the direction of Indemnitee
unless such action, suit or proceeding is or was authorized by the Bank’s Board of Directors.

 

1.7           Survival.
The indemnification provided under this Agreement shall apply to any and all Proceedings, notwithstanding that Indemnitee has ceased
to be a director, officer, partner, trustee, employee or agent of the Bank or a Related Company.

 

1.8           Liability
Insurance. The Bank shall use its best efforts to purchase and maintain a policy or policies of insurance with reputable insurance
companies with A.M. Best ratings of “A” or better, providing Indemnitee with coverage for any liability asserted against,
or incurred by, Indemnitee or on Indemnitee’s behalf by reason of the fact that Indemnitee is or was a director, officer,
employee and/or agent of the Bank or that, being or having been such a director, officer, employee and/or agent, Indemnitee is
or was serving at the Bank’s request as a director, officer, partner, trustee, employee or agent of another foreign or domestic
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, including service with respect to an
employee benefit plan, whether or not the Bank would have the power to indemnify Indemnitee against such liability under the provisions
of this Agreement. Such insurance policies shall have coverage terms and policy limits at least as favorable to Indemnitee as the
insurance coverage provided to any other director or officer of the Bank. If the Bank has such insurance in effect at the time
the Bank receives from Indemnitee any notice of the commencement of a Proceeding, the Bank shall give prompt notice of the commencement
of such Proceeding to the insurers in accordance with the procedures set forth in the policy. The Bank shall thereafter take all
necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such proceeding
in accordance with the terms of such policy.

 

2.           Expense
Advances

 

2.1           Generally.
Subject to Section 2.2, the right to indemnification of Damages conferred by Section 1 shall include the right to have the Bank
pay Indemnitee’s expenses in any Proceeding as such expenses are incurred and in advance of such Proceeding’s final
disposition (such right is referred to hereinafter as an “Expense Advance”). The Indemnitee’s right to an Expense
Advance is absolute and shall not be subject to any condition that the Bank’s Board of Directors shall not have determined
that the Indemnitee is not entitled to be indemnified under applicable law.

 

2.2           Conditions
to Expense Advance. The Bank’s obligation to provide an Expense Advance is subject to the following conditions:

 

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2.2.1           Undertaking.
If the Proceeding arose in connection with Indemnitee’s service as a director, officer, employee and/or agent of the Bank
(and not in any other capacity in which Indemnitee rendered service, including service to any Related Company), then Indemnitee
or his or her representative shall have executed and delivered to the Bank a written undertaking, which must be an unlimited general
obligation, but shall be unsecured and interest-free and shall be accepted without reference to Indemnitee’s financial ability
to make repayment, by or on behalf of Indemnitee to repay all Expense Advances if and to the extent that it shall ultimately be
determined by a final, unappealable decision rendered by a court having jurisdiction over the parties and the question that Indemnitee
did not meet the standard of conduct described in 707.746 of the Act.

 

2.2.2           Cooperation.
Indemnitee shall give the Bank such information and cooperation as it may reasonably request and as shall be within Indemnitee’s
power.

 

2.2.3           Affirmation.
Indemnitee shall furnish, upon request by the Bank and if required under applicable law, a written affirmation of Indemnitee’s
good faith belief that he or she has met the standard of conduct described in 707.746 of the Act.

 

3.           Priority

 

3.1         Bank
Fully and Primarily Responsible. Given that certain Jointly Indemnifiable Claims may arise due to the relationship between
the Fund Entities and the Bank, and the service of Indemnitee as a Director of the Bank at the request of the Fund Entities, the
Bank acknowledges and agrees that the Bank shall be fully and primarily responsible for the indemnification and advancement of
expenses of Indemnitee in connection with any such Jointly Indemnifiable Claim, pursuant to and in accordance with the terms of
this Agreement, irrespective of any right of recovery Indemnitee may have from the Fund Entities or any of their respective Affiliates.
Under no circumstances shall the Bank be entitled to any right of contribution by the Fund Entities or any of their Affiliates
and no right of recovery Indemnitee may have from the Fund Entities or any of their respective Affiliates shall reduce or otherwise
alter the rights of Indemnitee or the obligations of the Bank under this Agreement.

 

3.2         Definitions.
For purposes of this Section 3:

 

3.2.1           Affiliate.
“Affiliate” shall mean, with respect to any person, any person directly or indirectly controlling, controlled by or
under common control with, such other person. For purposes of this definition, (i) “control” (including, with correlative
meanings, the terms “controlled by” and “under common control with”) when used with respect to any person,
means the possession, directly or indirectly, of the power to cause the direction of management and/or policies of such person,
whether through the ownership of voting securities by contract or otherwise or for purposes of the Bank Holding Company Act of
1956, as amended, and (ii) “person” has the meaning given to it in Section 3(a)(9) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), or any successor statute and as used in Sections 13(d)(3) and 14(d)(2)
of the Exchange Act.

 

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3.2.2           Fund
Entities. “Fund Entities” shall mean any corporation, limited liability company, partnership, joint venture, trust,
employee benefit plan or other entity or enterprise (other than the Bank, the Bank’s parent corporation or any other corporation,
limited liability company, partnership, joint venture, trust, employee benefit plan or other entity or enterprise as to which Indemnitee
has agreed, on behalf of the Bank or at the Bank’s request, to serve as a director, officer, employee or agent and which
service is covered by this Agreement) from whom Indemnitee may be entitled to indemnification or advancement of expenses with respect
to which, in whole or in part, the Bank may also have an indemnification or advancement obligation.

 

3.2.3           Jointly
Indemnifiable Claims. “Jointly Indemnifiable Claim” shall mean any claim for which Indemnitee may be entitled to
indemnification both from any Fund Entity, on the one hand, and the Bank, on the other hand, pursuant to applicable law, any indemnification
agreement or the certificate of incorporation, bylaws, partnership agreement, operating agreement, certificate of formation, certificate
of limited partnership or comparable organizational documents of the Bank or such Fund Entity.

 

4.           Procedures
for Enforcement

 

4.1          Enforcement.
In the event that a claim for indemnity, an Expense Advance or otherwise is made hereunder and is not paid in full within twenty
calendar days after written notice of such claim is delivered to the Bank, Indemnitee may, but need not, at any time thereafter
bring suit against the Bank to recover the unpaid amount of the claim (an “Enforcement Action”).

 

4.2          Presumptions
in Enforcement Action. In any Enforcement Action the following presumptions (and limitation on presumptions) shall apply:

 

(a)          The
Bank shall conclusively be presumed to have entered into this Agreement and assumed the obligations imposed on it hereunder in
order to induce Indemnitee to [continue to] serve as a director, officer, employee and/or agent, as the case may be, of the Bank;

 

(b)          Neither
(i) the failure of the Bank (including the Bank’s Board of Directors, independent or special legal counsel or the Bank’s
shareholders) to have made a determination prior to the commencement of the Enforcement Action that indemnification of Indemnitee
is proper in the circumstances nor (ii) an actual determination by the Bank, its Board of Directors, independent or special legal
counsel or shareholders that Indemnitee is not entitled to indemnification shall be a defense to the Enforcement Action or create
a presumption that Indemnitee is not entitled to indemnification hereunder; and

 

(c)          If
Indemnitee is or was serving as a director, officer, employee, trustee or agent of a corporation of which a majority of the shares
entitled to vote in the election of its directors is held by the Bank or in an executive or management capacity in a partnership,
joint venture, trust or other enterprise of which the Bank or a wholly-owned subsidiary of the Bank is a general partner or has
a majority ownership, then such corporation, partnership, joint venture, trust or enterprise shall conclusively be deemed a Related
Company and Indemnitee shall conclusively be deemed to be serving such Related Company at the request of the Bank.

 

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4.3          Attorneys’
Fees and Expenses for Enforcement Action. In the event Indemnitee is required to bring an Enforcement Action, the Bank shall
indemnify and hold harmless Indemnitee against all of Indemnitee’s fees and expenses in bringing and pursuing the Enforcement
Action (including attorneys’ fees at any stage, including on appeal); provided, however, that the Bank shall not be required
to provide such indemnity for such attorneys’ fees or expenses if a court of competent jurisdiction determines that each
of the material assertions made by Indemnitee in such Enforcement Action was not made in good faith or was frivolous.

 

5.     
     Limitations on Indemnity; Mutual Acknowledgment

 

5.1          Limitation
on Indemnity. No indemnity pursuant to this Agreement shall be provided by the Bank:

 

(a)          [Reserved];

 

(b)          For
Damages that have been paid directly to Indemnitee by an insurance carrier under a policy of officers’ and directors’
liability insurance maintained by the Bank;

 

(c)          On
account of Indemnitee’s conduct which is finally adjudged to fall within one or more of the exclusions set forth in the Act;
or

 

(d)          If
a final decision by a court having jurisdiction in the matter shall determine that such indemnification is not lawful.

 

5.2          Regulatory
Limitation. Notwithstanding anything herein to the contrary (including without limitation the last sentence of Section 2.1),
the Bank shall not be required to make any indemnification payment (including without limitation any Expense Advance) to the extent
such payment is prohibited or limited pursuant to 12 U.S.C. 1828(k) or by 12 C.F.R. Part 359 or 707.744 - 707.764 of the Act and
any such payment made shall be in compliance with requirements imposed pursuant to 12 U.S.C. 1828(k) or by 12 C.F.R, Part 359 or
707.744 - 707.764 of the Act (including without limitation any required agreements of Indemnitee)

 

6.           Notification
and Defense of Claim

 

6.1          Notification.
Promptly after receipt by Indemnitee of notice of the commencement of any Proceeding, Indemnitee will, if a claim in respect thereof
is to be made against the Bank under this Agreement, notify the Bank of the commencement thereof; but the omission so to notify
the Bank will not relieve the Bank from any liability which it may have to Indemnitee under this Agreement unless and only to the
extent that such omission can be shown to have actually and materially prejudiced the Bank’s ability to defend the Proceeding.

 

6.2          Defense
of Claim. With respect to any such Proceeding as to which Indemnitee notifies the Bank of the commencement thereof:

 

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(a)          The
Bank may participate therein at its own expense;

 

(b)          The
Bank, by itself or jointly with any other indemnifying party similarly notified, may assume the defense thereof, with counsel satisfactory
to Indemnitee. After notice from the Bank to Indemnitee of its election to assume the defense thereof, the Bank shall not be liable
to Indemnitee under this Agreement for any legal or other expenses (other than reasonable costs of investigation) subsequently
incurred by Indemnitee in connection with the defense thereof unless (i) the employment of counsel by Indemnitee has been authorized
by the Bank, (ii) Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Bank and Indemnitee
in the conduct of the defense of such action, or (iii) the Bank shall not in fact have employed counsel to assume the defense of
such action, in each of which cases the fees and expenses of counsel shall be at the expense of the Bank. The Bank shall not be
entitled to assume the defense of any action, suit or proceeding brought by or on behalf of the Bank or as to which Indemnitee
shall have made the conclusion provided for in (ii) above. For the avoidance of doubt, Indemnitee shall not be required to utilize
counsel selected by or representing the Bank or any other Indemnitee without the express consent of Indemnitee, which consent may
be withheld in his or her discretion;

 

(c)          The
Bank shall not be liable to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any Proceeding effected
without its written consent;

 

(d)          The
Bank shall not settle any action or claim in any manner which would impose any penalty or limitation on Indemnitee without Indemnitee’s
written consent; and

 

(e)          Neither
the Bank nor Indemnitee will unreasonably withhold its, his or her consent to any proposed settlement.

 

(f)          To
the fullest extent permitted by law, the Bank’s assumption of the defense of a Proceeding pursuant to this Section 6 will
constitute an irrevocable acknowledgement by the Bank that any expenses incurred by or for the account of Indemnitee in connection
therewith are indemnifiable by the Bank hereunder.

 

7.          Subrogation

 

In the event of payment under this Agreement
by or on behalf of the Bank, except as provided in Section 3, the Bank shall be subrogated to the extent of such payment to all
of the rights of recovery of Indemnitee, who shall execute all papers that may be required and shall do all things that may be
necessary to secure such rights, including without limitation, the execution of such documents as may be necessary to enable the
Bank effectively to bring suit to enforce such rights. The Bank shall pay or reimburse all expenses actually and reasonably incurred
by Indemnitee in connection with such subrogation.

 

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8.           Severability

 

Nothing in this Agreement is intended to
require or shall be construed as requiring the Bank to do or fail to do any act in violation of applicable law. The Bank’s
inability, pursuant to court order, to perform its obligations under this Agreement shall not constitute a breach of this Agreement.
The provisions of this Agreement shall be severable, as provided in this Section 8. If this Agreement or any portion hereof shall
be invalidated on any ground by any court of competent jurisdiction, then the Bank shall nevertheless indemnify Indemnitee to the
full extent permitted by any applicable portion of this Agreement that shall not have been invalidated, and the balance of this
Agreement not so invalidated shall be enforceable in accordance with its terms.

 

9.           Governing
Law; Binding Effect; Amendment and Termination; Specific Performance

 

(a)          This
Agreement shall be interpreted and enforced in accordance with the laws of the State of Oregon.

 

(b)          This
Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors
(including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the
business and/or assets of the Bank), assigns, spouses, heirs, executors and personal and legal representatives. The Bank shall
require and cause any successor(s) (whether directly or indirectly, whether in one or a series of transactions, and whether by
purchase, merger, consolidation, or otherwise) to all or a significant portion of the business and/or assets of the Bank and/or
its subsidiaries (on a consolidated basis), by written agreement in form and substance reasonably satisfactory to Indemnitee, expressly
to assume and agree to perform this Agreement in the same manner and to the same extent that the Bank would be required to perform
if no such succession had taken place; provided that no such assumption shall relieve the Bank from its obligations hereunder and
any obligations shall thereafter be joint and several.

 

(c)          No
amendment, modification, termination or cancellation of this Agreement shall be effective unless in writing signed by both parties.

 

(d)          The
parties recognize that if any provision of this Agreement is violated by the parties hereto, Indemnitee may be without an adequate
remedy at law. Accordingly, in the event of any such violation, Indemnitee shall be entitled, if Indemnitee so elects, to institute
proceedings, either in law or at equity, to obtain damages, to obtain specific performance, to enjoin such violation, or to obtain
any relief or any combination of the foregoing as Indemnitee may elect to pursue.

 

[SIGNATURE PAGE FOLLOWS]

 

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

 

	 	BANK OF THE CASCADES
	 	 
	 	By:	 
	 	 
	 	INDEMNITEE:
	 	 
	 	 

 

[Signature Page to Indemnification Agreement]CASCADE
BANCORP

 

2008 PERFORMANCE
INCENTIVE PLAN

As amended

 

1.          
PURPOSE; TYPES OF AWARDS.

 

The purpose of the Cascade Bancorp 2008
Performance Incentive Plan is to attract, motivate and retain employees and independent contractors of the Company, any Subsidiary
or Affiliate and non-employee directors of the Company, any Subsidiary or any Affiliate. The Plan is also designed to encourage
share ownership by such persons, thereby aligning their interest with those of the Company’s shareholders and to permit the
payment of compensation that qualifies as other performance based compensation under Section 162(m) of the Code. Pursuant to the
provisions hereof, there may be granted Options (including “incentive stock options”
and “non-qualified stock options”), and Other Stock-Based Awards, including
but not limited to Restricted Stock, Restricted Stock Units, Stock Appreciation Rights and Other Cash-Based Awards.

 

The 2008 Performance Incentive Plan shall become effective as
of January 1, 2008.

 

2.          
DEFINITIONS. For purposes of the Plan, the following terms shall be defined as set forth below:

 

(a)          “Adoption
Date” means the date that the Plan was adopted by the Board.

 

(b)          “Affiliate”
means an affiliate of the Company, as defined in Rule 12b-2 promulgated under Section 12 of the Exchange Act.

 

(c)          “Award”
means individually or collectively, a grant under the Plan of Options, Restricted Stock, Restricted Stock Units or Other Stock-Based
Awards or Other Cash-Based Awards.

 

(d)          “Award
Terms” means any written agreement, contract, notice or other instrument or document evidencing an Award.

 

(e)          “Board”
means the Board of Directors of the Company.

 

(f)          “Cause”
shall have the meaning set forth in the Grantee’s employment or other agreement with the Company, any Subsidiary or any Affiliate,
if any, provided that if the Grantee is not a party to any such employment or other agreement or such employment or other agreement
does not contain a definition of Cause, then Cause shall have the meaning set forth in the Award Terms.

 

(g)          
“Code” means the Internal Revenue Code of 1986, as amended from time to time.

 

(h)          
“Committee” means the Compensation Committee of the Board. Unless otherwise determined by the Board, the Committee
shall be comprised solely of directors who are (a) “non-employee directors” under Rule 16b-3 of the Exchange Act, (b)
“outside directors” under Section 162(m) of the Code, and (c) who otherwise meet the definition of “independent
directors” pursuant to the applicable requirements of any national stock exchange upon which the Stock is listed. Any director
appointed to the Committee who does not meet the foregoing requirements shall recuse himself or herself from all determinations
pertaining to Rule 16b-3 of the Exchange Act and Section 162(m) of the Code.

 

(i)          “Company”
means Cascade Bancorp, a corporation organized under the laws of the state of Oregon, or any successor corporation.

 

(j)          “Covered
Employee” shall have the meaning set forth in Section 162(m)(3) of the Code.

 

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(k)          “Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time, and as now or hereafter construed, interpreted
and applied by regulations, rulings and cases.

 

(l)          “Fair
Market Value” shall be the closing sales price per share of Stock for the date of grant on the principal securities exchange
on which the Stock is traded or, if there is no such sale on the relevant date, then on the last previous day on which a sale was
reported; if the Stock is not listed for trading on a national securities exchange, the fair market value of Stock shall be determined
in good faith by the Board.

 

(m)          “Grantee”
means a person who, as an employee or independent contractor of or non-employee director with respect to the Company, a Subsidiary
or an Affiliate, has been granted an Award under the Plan. The term “Grantee” also includes an entity that receives
an award, as described in Section 4(c), in lieu of the Award being granted to a non-employee director who was appointed to the
Board by the Award recipient.

 

(n)          “ISO”
means any Option designated as and intended to be and which qualifies as an incentive stock option within the meaning of Section
422 of the Code.

 

(o)          “NQSO”
means any Option that is designated as a nonqualified stock option or which does not qualify as an ISO.

 

(p)          “Option”
means a right, granted to a Grantee under Section 6(b)(i), to purchase shares of Stock. An Option may be either an ISO or an NQSO.

 

(q)          “Other
Cash-Based Award” means a cash-based Award granted to a Grantee under Section 6(b)(iv) hereof, including cash awarded
as a bonus or upon the attainment of Performance Goals or otherwise as permitted under the Plan.

 

(r)          “Other
Stock-Based Award” means an Award granted to a Grantee pursuant to Section 6(b)(iv) hereof, that may be denominated or
payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Stock, each of which may be subject
to the attainment of Performance Goals or a period of continued employment or other terms and conditions as permitted under the
Plan.

 

(s)          “Performance
Award” shall mean any right granted under Section 6(d) of the Plan. The Committee is hereby authorized to grant Performance
Awards to a Grantee subject to the terms of the Plan. A Performance Award granted under the Plan (i) may be denominated or payable
in cash, Shares (including, without limitation, Restricted Stock and Restricted Stock Units), other securities, other Awards or
other property and (ii) shall confer on the holder thereof the right to receive payments, in whole or in part, upon the achievement
of such performance goals during such performance periods as the Committee shall establish. Subject to the terms of the Plan, the
performance goals to be achieved during any performance period, the length of any performance period, the amount of any Performance
Award granted, the amount of any payment or transfer to be made pursuant to any Performance Award and any other terms and conditions
of any Performance Award shall be certified by the Committee. Performance Awards denominated in Shares (including, without limitation,
Restricted Stock and Restricted Stock Units) that are granted to a Grantee who may be a Covered Employee and that are intended
to be “qualified performance based compensation” within the meaning of Section 162(m), to the extent required by Section
162(m), shall be conditioned solely on the achievement of one or more objective Performance Goals established by the Committee
within the time prescribed by Section 162(m), and shall otherwise comply with the requirements of Section 162(m).

 

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(t)          “Performance
Goal” shall mean one or more of the following performance goals, either individually,
alternatively or in any combination, applied on a corporate, subsidiary, division, business unit or line of business basis: sales,
revenue, costs, expenses (including expense efficiency ratios and other expense measures), earnings (including one or more of net
profit after tax, gross profit, operating profit, earnings before interest and taxes, earnings before interest, taxes, depreciation
and amortization and net earnings), earnings per share, earnings per share from continuing operations, operating income, pre-tax
income, operating income margin, net income, margins (including one or more of gross, operating and net income margins), returns
(including one or more of return on actual or proforma assets, net assets, equity, investment, capital and net capital employed),
shareholder return (including total shareholder return relative to an index or peer group), stock price, growth of loans and deposits,
number of customers or households, economic value added, cash generation, cash flow, unit volume, working capital, market share,
cost reductions and strategic plan development and implementation. Such goals may reflect absolute entity or business unit performance
or a relative comparison to the performance of a peer group of entities or other external measure of the selected performance criteria.
Pursuant to rules and conditions adopted by the Committee on or before the 90th day of the applicable performance period for which
Performance Goals are established and while performance relating to such Performance Goal(s) remains substantially uncertain within
the meaning of Section 162(m) of the Code, the Committee may appropriately adjust any evaluation of performance under such goals
to exclude the effect of certain events, including any of the following events: material asset write-downs; litigation or claim
judgments or settlements; changes in tax law, accounting principles or other such laws or provisions affecting reported results;
severance, contract termination and other costs related to exiting certain business activities; and gains or losses from the disposition
of businesses or assets or from the early extinguishment of debt. 

 

(u)          “Person”
shall mean any individual or entity, including a corporation, partnership, limited liability company, association, joint venture,
or trust. 

 

(v)      
    “Plan” means this Cascade Bancorp 2008 Performance Incentive Plan, as amended
from time to time.

 

(w)          “Restricted
Stock” means an Award of shares of Stock to a Grantee under Section 6(b)(ii) that is subject to certain restrictions
and to a risk of forfeiture.

 

(x)     
     “Restricted Stock Unit” means a right granted to a Grantee under
Section 6(b)(iii) of the Plan to receive shares of Stock or cash subject to certain restrictions and to a risk of
forfeiture.

 

(y)   
       “Rule 16b-3” means Rule 16b-3, as from time to time in
effect promulgated by the Securities and Exchange Commission under Section 16 of the Exchange Act, including any successor to
such Rule.

 

(z)    
      “Stock” means shares of common stock of the Company.

 

(aa)         “Stock
Appreciation Right” means an Award that entitles a Grantee upon exercise to receive in cash the excess of the Fair Market
Value of the Stock underlying the Award over the base price established in respect of such Stock.

 

(bb)         “Subsidiary”
means any corporation in an unbroken chain of corporations beginning with the Company if, at the time of granting of an Award,
each of the corporations (other than the last corporation in the unbroken chain) owns stock possessing 50% or more of the total
combined voting power of all classes of stock in one of the other corporations in the chain.

 

3.          ADMINISTRATION.

 

(a)          The
Plan shall be administered by the Committee or, at the discretion of the Board. In the event the Board is the administrator of
the Plan, references herein to the Committee shall be deemed to include the Board. The Board may from time to time appoint a member
or members of the Committee in substitution for or in addition to the member or members then in office and may fill vacancies on
the Committee however caused. Subject to applicable law, the Board or the Committee may delegate to a sub-committee or individual
the ability to grant Awards to employees who are not subject to potential liability under Section 16(b) of the Exchange Act with
respect to transactions involving equity securities of the Company at the time any such delegated authority is exercised.

 

    	Page 3

    	 

    

 

(b)          The
decision of the Committee as to all questions of interpretation and application of the Plan shall be final, binding and conclusive
on all persons. The Committee shall have the authority in its discretion, subject to and not inconsistent with the express provisions
of the Plan, to administer the Plan and to exercise all the power and authority either specifically granted to it under the Plan
or necessary or advisable in the administration of the Plan, including without limitation, the authority to grant Awards, to determine
the persons to whom and the time or times at which Awards shall be granted, to determine the type and number of Awards to be granted,
the number of shares of Stock to which an Award may relate and the terms, conditions, restrictions, and Performance Goals relating
to any Award; to determine Performance Goals no later than such time as required to ensure that an underlying Award which is intended
to comply with the requirements of Section 162(m) of the Code so complies; to determine whether, to what extent, and under what
circumstances an Award may be settled, cancelled, forfeited, accelerated (including upon a “change in control”), exchanged,
or surrendered; to make adjustments in the terms and conditions (including Performance Goals)
applicable to Awards; to construe and interpret the Plan and any Award; to prescribe, amend and rescind rules and regulations relating
to the Plan; to determine the terms and provisions of the Award Terms (which need not be identical for each Grantee); and to make
all other determinations deemed necessary or advisable for the administration of the Plan. The Committee may correct any defect
or supply any omission or reconcile any inconsistency in the Plan or in any Award Terms granted hereunder in the manner and to
the extent it shall deem expedient to carry the Plan into effect and shall be the sole and final judge of such expediency. No Committee
member shall be liable for any action or determination made with respect to the Plan or any Award.

 

4.          ELIGIBILITY.

 

(a)          Awards
may be granted to officers, employees, independent contractors and non-employee directors of the Company or of any of the Subsidiaries
and Affiliates; provided, that (i) ISOs may be granted only to employees (including officers and directors who are also employees)
of the Company or any of its “related corporations” (as defined in the applicable regulations promulgated under the
Code) and (ii) Awards may be granted only to eligible participants who are not employed by the Company or a Subsidiary if such
employees perform substantial services for the Company or a Subsidiary.

 

(b)          No
ISO shall be granted to any employee of the Company or any of its Subsidiaries if such employee owns, immediately prior to the
grant of the ISO, stock representing more than 10% of the voting power or more than 10% of the value of all classes of stock of
the Company or a Subsidiary, unless the purchase price for the stock under such ISO shall be at least 110% of its Fair Market Value
at the time such ISO is granted and the ISO, by its terms, shall not be exercisable more than five years from the date it is granted.
In determining the stock ownership under this paragraph, the provisions of Section 424(d) of the Code shall be controlling.

 

(c)          Notwithstanding
anything in the Plan to the contrary, if an individual non-employee director serves on the Board because he or she was appointed
by an entity (the “appointing entity”) that has the right to appoint a non-employee director to the Board, and if as
part of the non-employee director’s relationship with the appointing entity all Awards must flow to the appointing entity,
then at the election of the non-employee director any Awards that would otherwise be granted to him or her may, at the discretion
of the Board, be granted directly to the appointing entity, provided the Award does not increase the appointing entity’s
ownership in the Company above 24.5%.

 

5.          STOCK
SUBJECT TO THE PLAN.

 

(a)          Stock
Subject to the Plan. The maximum number of shares of Stock reserved for the grant or settlement of Awards under the Plan (the
“Share Limit”) shall be (a) 6,000,000 shares of Stock, plus (b) the
number of shares of Stock which have been reserved but not issued under the Company’s 2002 Equity Incentive Plan, plus (c) any
shares of Stock returned to the Company’s 2002 Equity Incentive Plan after the effective date of this Plan as a result of
expiration, cancellation, or forfeiture of awards issued under such plan, and shall be subject to adjustment as provided herein.
Such shares may, in whole or in part, be authorized but unissued shares or shares that shall have been or may be reacquired by
the Company in the open market, in private transactions or otherwise. If any shares subject to an Award are forfeited, cancelled,
exchanged or surrendered or if an Award otherwise terminates or expires without a distribution of shares to the Grantee, the shares
of stock with respect to such Award shall, to the extent of any such forfeiture, cancellation, exchange, surrender, termination
or expiration, again be available for Awards under the Plan.

 

    	Page 4

    	 

    

 

(b)          Adjustments.
Except as provided in an Award Term or as otherwise provided in the Plan, in the event of any extraordinary dividend or other extraordinary
distribution (whether in the form of cash, Stock, or other property), recapitalization, stock split, reverse split, reorganization,
merger, consolidation, spin-off, recapitalization, combination, repurchase, or share exchange, or other similar corporate transaction
or event, the Committee shall make such equitable changes or adjustments as it deems necessary or appropriate to any or all of
(i) the number and kind of shares of Stock or other property (including cash) that may thereafter be issued in connection with
Awards or the total number of Awards issuable under the Plan, (ii) the number and kind of shares of Stock or other property issued
or issuable in respect of outstanding Awards, (iii) the exercise price, grant price or purchase price relating to any Award, (iv)
the Performance Goals and (v) the individual limitations applicable to Awards; provided that, with respect to ISOs, any adjustment
shall be made in accordance with the provisions of Section 424(h) of the Code and any regulations or guidance promulgated thereunder,
and provided further that no such adjustment shall cause any Award hereunder which is or becomes subject to Section 409A of the
Code to fail to comply with the requirements of such section.

 

6.          SPECIFIC
TERMS OF AWARDS.

 

(a)          General.
Subject to the terms of the Plan and any applicable Award Terms, (i) the term of each Award shall be for such period as may be
determined by the Committee, and (ii) payments to be made by the Company or a Subsidiary or Affiliate upon the grant, maturation,
or exercise of an Award may be made in such forms as the Committee shall determine at the date of grant or thereafter, including,
without limitation, cash, Stock or other property, and may be made in a single payment or transfer, in installments, or, subject
to the requirements of Section 409A of the Code on a deferred basis.

 

(b)          Awards.
The Committee is authorized to grant to Grantees the following Awards, as deemed by the Committee to be consistent with the purposes
of the Plan. The Committee shall determine the terms and conditions of such Awards, consistent with the terms of the Plan.

 

(i)          Options.
The Committee is authorized to grant Options to Grantees on the following terms and conditions:

 

(A)         The
Award Terms evidencing the grant of an Option under the Plan shall designate the Option as an ISO or an NQSO.

 

(B)         The
exercise price per share of Stock purchasable under an Option shall be determined by the Committee, but in no event shall the exercise
price of an Option per share of Stock be less than the Fair Market Value of a share of Stock as of the date of grant of such Option.
The purchase price of Stock as to which an Option is exercised shall be paid in full at the time of exercise; payment may be made
in cash, which may be paid by check, or other instrument acceptable to the Company, or, with the consent of the Committee, in shares
of Stock, valued at the Fair Market Value on the date of exercise (including shares of Stock that otherwise would be distributed
to the Grantee upon exercise of the Option), or if there were no sales on such date, on the next preceding day on which there were
sales or (if permitted by the Committee and subject to such terms and conditions as it may determine) by surrender of outstanding
Awards under the Plan, or the Committee may permit such payment of exercise price by any other method it deems satisfactory in
its discretion. In addition, subject to applicable law and pursuant to procedures approved by the Committee, payment of the exercise
price may be made pursuant to a broker-assisted cashless exercise procedure. Any amount necessary to satisfy applicable federal,
state or local tax withholding requirements shall be paid promptly upon notification of the amount due. The Committee may permit
the minimum amount of tax withholding to be paid in shares of Stock previously owned by the employee, or a portion of the shares
of Stock that otherwise would be distributed to such employee upon exercise of the Option, or a combination of cash and shares
of such Stock.

 

    	Page 5

    	 

    

 

(C)         Options
shall be exercisable over the exercise period (which shall not exceed ten years from the date of grant), at such times and upon
such conditions as the Committee may determine, as reflected in the Award Terms; provided that, the Committee shall have the authority
to accelerate the exercisability of any outstanding Option at such time and under such circumstances as it, in its sole discretion,
deems appropriate.

 

(D)         Upon
the termination of a Grantee’s employment or service with the Company and its Subsidiaries or Affiliates, the Options granted
to such Grantee, to the extent that they are exercisable at the time of such termination, shall remain exercisable for such period
as may be provided in the applicable Award Terms, but in no event following the expiration of their term. The treatment of any
Option that is unexercisable as of the date of such termination shall be as set forth in the applicable Award Terms.

 

(E)         Options
may be subject to such other conditions, as the Committee may prescribe in its discretion or as may be required by applicable law.

 

(ii)         
Stock and Restricted Stock.

 

(A)         The
Committee may grant Awards of Stock and Restricted Stock under the Plan, subject to such restrictions, terms and conditions, as
the Committee shall determine in its sole discretion and as shall be evidenced by the applicable Award Terms. The vesting of a
Restricted Stock Award granted under the Plan may be conditioned upon the completion of a specified period of employment or service
with the Company or any Subsidiary or Affiliate, upon the attainment of specified Performance Goals, or upon such other criteria
as the Committee may determine in its sole discretion.

 

(B)         The
Committee shall determine the purchase price (if any) to be paid by the Grantee for each share of Restricted Stock or unrestricted
stock or Restricted Stock Units subject to the Award. The Award Terms with respect to such stock award shall set forth the amount
(if any) to be paid by the Grantee with respect to such Award and when and under what circumstances such payment is required to
be made.

 

(C)         Except
as provided in the applicable Award Terms, no shares of Stock underlying a Restricted Stock Award may be assigned, transferred,
or otherwise encumbered or disposed of by the Grantee until such shares of Stock have vested in accordance with the terms of such
Award.

 

(D)         If
and to the extent that the applicable Award Terms may so provide, a Grantee shall have the right to vote and receive dividends
on Restricted Stock granted under the Plan. Unless otherwise provided in the applicable Award Terms, any Stock received as a dividend
on or in connection with a stock split of the shares of Stock underlying a Restricted Stock Award shall be subject to the same
restrictions as the shares of Stock underlying such Restricted Stock Award.

 

(E)         Upon
the termination of a Grantee’s employment or service with the Company and its Subsidiaries or Affiliates, the Restricted
Stock granted to such Grantee shall be subject to the terms and conditions specified in the applicable Award Terms.

 

(F)         The
Company shall not be required to issue stock certificates representing Restricted Stock awarded to a Grantee until the restricted
period related to such shares has lapsed. If any stock certificates representing Restricted Stock awarded under this Plan are issued
prior to the lapse of the restricted period, such stock certificate shall bear an appropriate legend referring to such restrictions.
Such certificates may be retained by the Company during the restricted period.

 

(iii)        Restricted
Stock Units.

 

(A)         The
Committee may grant Awards of Restricted Stock Units to Grantees, subject to such restrictions, terms and conditions, as the Committee
shall determine in its sole discretion and as shall be evidenced by applicable Award Terms. The vesting of a Restricted Stock Unit
granted under the Plan may be conditioned upon the completion of a specified period of employment or service with the Company or
any Subsidiary or Affiliate, upon the attainment of specified Performance Goals, or upon such other criteria as the Committee may
determine in its sole discretion.

 

    	Page 6

    	 

    

 

(B)         The
Committee shall have the authority to accelerate the settlement of any outstanding award of Restricted Stock Units at such time
and under such circumstances as it, in its sole discretion, deems appropriate, subject compliance with the requirements of Section
409A of the Code.

 

(C)         Unless
otherwise provided in the applicable Award Terms or except as otherwise provided in the Plan, upon the vesting of a Restricted
Stock Unit there shall be delivered to the Grantee, as soon as practicable following the date on which such Award (or any portion
thereof) vests, that number of shares of Stock equal to the number of Restricted Stock Units becoming so vested.

 

(D)         
Subject to compliance with the requirements of Section 409A of the Code, Restricted Stock Units may provide the Grantee with the
right to receive dividend equivalent payments with respect to Stock actually or notionally subject to the Award, which payments
may be either made currently or credited to an account for the Grantee, and may be settled in cash or Stock, as determined by the
Committee. Any such settlements and any such crediting of dividend equivalents may be subject to such conditions, restrictions
and contingencies as the Committee shall establish, including the reinvestment of such credited amounts in Stock equivalents.

 

(E)         Upon
the termination of a Grantee’s employment or service with the Company and its Subsidiaries or Affiliates, the Restricted
Stock Units granted to such Grantee shall be subject to the terms and conditions specified in the applicable Award Terms.

 

(iv)        Other
Stock-Based or Cash-Based Awards.

 

(A)         
The Committee may grant Awards to Grantees in the form of Other Stock-Based Awards or Other Cash-Based Awards, as deemed by the
Committee to be consistent with the purposes of the Plan. The Committee shall determine the terms and conditions of such Awards,
consistent with the terms of the Plan, at the date of grant or thereafter, including the Performance
Goals and performance periods. Stock or other securities or property delivered pursuant to an Award in the nature of a purchase
right granted under Section 6(iv) shall be purchased for such consideration, paid for at such times, by such methods, and in such
forms, including, without limitation, Stock, other Awards, notes or other property, as the Committee shall determine, subject to
any required corporate action.

 

(B)         With
respect to a Covered Employee, the maximum value of the aggregate payment that any Grantee may receive with respect to Other Cash-Based
Awards pursuant to this Section 6(b)(iv) in respect of any annual performance period is $5,000,000 and for any other performance
period in excess of one year, such amount multiplied by a fraction, the numerator of which is the number of months in the performance
period and the denominator of which is twelve. No payment shall be made to a Covered Employee prior to the determination by the
Committee that the Performance Goals have been attained. The Committee may establish such other rules applicable to the Other Stock-
or Cash-Based Awards to the extent not inconsistent with Section 162(m) of the Code.

 

(C)         Payments
earned in respect of any Cash-Based Award may be decreased or, with respect to any Grantee who is not a Covered Employee, increased
in the sole discretion of the Committee based on such factors as it deems appropriate.

 

7.          GENERAL
PROVISIONS.

 

(a)          Nontransferability,
Deferrals and Settlements. Unless otherwise determined by the Committee or provided in an Award Term or set forth below, but
in accordance with the Code and any applicable laws, Awards shall not be transferable by a Grantee except by will or the laws of
descent and distribution and shall be exercisable during the lifetime of a Grantee only by such Grantee or his guardian or legal
representative. Any Award shall be null and void and without effect upon any attempted assignment or transfer, except as herein
provided, including without limitation any purported assignment, whether voluntary or by operation of law, pledge, hypothecation
or other disposition, attachment, divorce, trustee process or similar process, whether legal or equitable, upon such Award. The
Committee may permit Grantees to elect to defer the issuance of shares of Stock or the settlement of Awards in cash under such
rules and procedures as established under the Plan to the extent that such deferral complies with Section 409A of the Code and
any regulations or guidance promulgated thereunder. Notwithstanding the foregoing but subject to applicable law, the Committee
in its sole discretion may grant transferable NQSOs that, upon becoming fully vested and exercisable, may be transferred to a third-party
pursuant to a transfer process approved or established up by the Company.

 

    	Page 7

    	 

    

 

(b)          No
Right to Continued Employment. Nothing in the Plan or in any Award granted or any Award Terms, promissory note or other agreement
entered into pursuant hereto shall confer upon any Grantee the right to continue in the employ or service of the Company, any Subsidiary
or any Affiliate or to be entitled to any remuneration or benefits not set forth in the Plan or the applicable Award Terms or to
interfere with or limit in any way the right of the Company or any such Subsidiary or Affiliate to terminate such Grantee’s
employment or service.

 

(c)          Cancellation
and Rescission of Awards. The following provisions of this Section 7(c) shall apply to Awards granted to Grantees. The Committee
or the Board, in its sole discretion, may cancel, rescind, forfeit, suspend or otherwise limit or restrict any unexpired Award
at any time if the Grantee engages in “Detrimental Activity” (as defined below). Furthermore, in the event a Grantee
engages in Detrimental Activity at any time prior to or during the six months after any exercise of an Award, lapse of a restriction
under an Award or delivery of Common Stock pursuant to an Award, such exercise, lapse or delivery may be rescinded until the later
of (i) one year after such exercise, lapse or delivery or (ii)one year after such Detrimental Activity. Upon such rescission, the
Company at its sole option may require the Grantee to (i) deliver and transfer to the Company the shares of Stock received by the
Grantee upon such exercise, lapse or delivery, (ii) pay to the Company an amount equal to any realized gain received by the Grantee
from such exercise, lapse or delivery, (iii) pay to the Company an amount equal to the market price (as of the exercise, lapse
or delivery date) of the Stock acquired upon such exercise, lapse or delivery minus the respective price paid upon exercise, lapse
or delivery, if applicable or (iv) pay the Company an amount equal to any cash awarded with respect to an Award. The Company shall
be entitled to set-off any such amount owed to the Company against any amount owed to the Grantee by the Company. Further, if the
Company commences an action against such Grantee (by way of claim or counterclaim and including declaratory claims), in which it
is preliminarily or finally determined that such Grantee engaged in Detrimental Activity or otherwise violated this Section 7(c),
the Grantee shall reimburse the Company for all costs and fees incurred in such action, including but not limited to, the Company’s
reasonable attorneys’ fees. As used in this Section 6.7, “Detrimental Activity” shall include: (i) the
failure to comply with the terms of the Plan or Award Terms; (ii) the failure to comply with any material term set forth in the
Grantee’s employee agreement; (iii) any activity that results in termination of the Grantee’s employment for cause;
or (iv) the Grantee being convicted of, or entering a guilty plea with respect to a crime whether or not connected with the Company.

 

(d)          Cancellation
of Restrictions. The Committee or the Board shall have the authority (and the Award Terms may so provide) to cancel all or
any portion of any outstanding restrictions and conditions prior to the expiration of the restricted period with respect to all
or part of a an Award on such terms and conditions as the Committee or the Board may deem appropriate. The Awards authorized under
this Plan shall contain such other provisions not inconsistent with the terms hereof as the Committee or the Board shall deem advisable.

 

(e)          Taxes.
The Company or any Subsidiary or Affiliate is authorized to withhold from any Award granted, any payment relating to an Award under
the Plan, including from a distribution of Stock, or any other payment to a Grantee, amounts of withholding and other taxes due
in connection with any transaction involving an Award, and to take such other action as the Committee may deem advisable to enable
the Company and Grantees to satisfy obligations for the payment of withholding taxes and other tax obligations relating to any
Award. This authority shall include authority to withhold or receive Stock or other property and to make cash payments in respect
thereof in satisfaction of a Grantee’s tax obligations; provided, however, that the amount of tax withholding to be satisfied
by withholding Stock shall be limited to the minimum amount of taxes, including employment taxes, required to be withheld under
applicable federal, state and local law.

 

    	Page 8

    	 

    

 

(f)          Shareholder
Approval; Amendment and Termination. The Plan shall take effect on the Adoption Date, subject to the requisite approval of
a majority of the shareholders of the Company, which approval must occur within twelve (12) months of the date that the Plan is
adopted by the Board. If such approval has not been obtained within the twelve (12) month period, all Awards previously granted,
exercised or purchased under the Plan shall be rescinded, canceled and become null and void. The Board may amend, alter or discontinue
the Plan and outstanding Awards thereunder, but no amendment, alteration, or discontinuation shall be made that would impair the
rights of a Grantee under any Award theretofore granted without such Grantee’s consent, or that without the approval of the
shareholders (as described below) would, except in the case of an adjustment as provided in Section 5, increase the total number
of shares of Stock reserved for the purpose of the Plan. In addition, shareholder approval shall be required with respect to any
amendment with respect to which shareholder approval is required under the Code, the rules of any stock exchange on which Stock
is then listed or any other applicable law. Unless earlier terminated by the Board pursuant to the provisions of the Plan, the
Plan shall terminate on the tenth anniversary of (i) its Adoption Date or (ii) the date the Plan is approved by a majority of the
shareholders of the Company, whichever is earlier. No Awards shall be granted under the Plan after such termination date.

 

(g)          No
Rights to Awards; No Shareholder Rights. No Grantee shall have any claim to be granted any Award under the Plan, and there
is no obligation for uniformity of treatment of Grantees. No Grantee shall have any right to payment or settlement under any Award
unless and until the Committee or its designee shall have determined that payment or settlement is to be made. Except as provided
specifically herein, a Grantee or a transferee of an Award shall have no rights as a shareholder with respect to any shares covered
by the Award until the date of the issuance of such shares.

 

(h)          Unfunded
Status of Awards. The Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation.
With respect to any payments not yet made to a Grantee pursuant to an Award, nothing contained in the Plan or any Award shall give
any such Grantee any rights that are greater than those of a general creditor of the Company.

 

(i)          No
Fractional Shares. No fractional shares of Stock shall be issued or delivered pursuant to the Plan or any Award. The Committee
shall determine whether cash, other Awards, or other property shall be issued or paid in lieu of such fractional shares or whether
such fractional shares or any rights thereto shall be forfeited or otherwise eliminated.

 

(j)          Regulations
and Other Approvals.

 

(i)          The
obligation of the Company to sell or deliver Stock with respect to any Award granted under the Plan shall be subject to all applicable
laws, rules and regulations, including all applicable federal and state securities laws, and the obtaining of all such approvals
by governmental agencies as may be deemed necessary or appropriate by the Committee.

 

(ii)         Each
Award is subject to the requirement that, if at any time the Committee determines, in its absolute discretion, that the listing,
registration or qualification of Stock issuable pursuant to the Plan is required by any securities exchange or under any state
or federal law, or the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or
in connection with, the grant of an Award or the issuance of Stock, no such Award shall be granted or payment made or Stock issued,
in whole or in part, unless listing, registration, qualification, consent or approval has been effected or obtained free of any
conditions not acceptable to the Committee.

 

(iii)        In
the event that the disposition of Stock acquired pursuant to the Plan is not covered by a then current registration statement
under the Securities Act of 1933, as amended (the “Securities Act”), and is not otherwise exempt from such
registration, such Stock shall be restricted against transfer to the extent required by the Securities Act or regulations thereunder,
and the Committee may require a Grantee receiving Stock pursuant to the Plan, as a condition precedent to receipt of such Stock,
to represent to the Company in writing that the Stock acquired by such Grantee is acquired for investment only and not with a
view to distribution.

 

    	Page 9

    	 

    

 

(k)          Section
409A. This Plan is intended to comply and shall be administered in a manner that is intended to comply with Section 409A of
the Code and shall be construed and interpreted in accordance with such intent. To the extent that an Award, issuance and payment
is subject to Section 409A of the Code, it shall be awarded, issued, and paid in a manner that will comply with Section 409A of
the Code, including proposed, temporary or final regulations or any other guidance issued by the Secretary of the Treasury and
the Internal Revenue Service with respect thereto. Any provision of this Plan that would cause an Award, issuance or payment to
fail to satisfy Section 409A of the Code shall have no force and effect until amended to comply with Code Section 409A (which amendment
may be retroactive to the extent permitted by applicable law).

 

(l)          Governing
Law. The Plan and all determinations made and actions taken pursuant hereto shall be governed by the laws of the state of Oregon
without giving effect to the conflict of laws principles thereof. Notwithstanding anything to the contrary herein, the Committee,
in order to conform with provisions of local laws and regulations in foreign countries in which the Company or its Subsidiaries
operate, shall have sole discretion to (i) modify the terms and conditions of Awards made to Grantees employed outside the United
States, (ii) establish sub-plans with modified exercise procedures and such other modifications as may be necessary or advisable
under the circumstances presented by local laws and regulations,; and (iii) take any action which it deems advisable to obtain,
comply with or otherwise reflect any necessary governmental regulatory procedures, exemptions or approvals with respect to the
Plan or any sub-plan established hereunder.

 

    	Page 10

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