Document:

First Amendment to the Deferred Compensation Agreement

 Exhibit 10.12 
 FIRST AMENDMENT TO 
 DEFERRED COMPENSATION AGREEMENT 
 First Amendment, dated as of September 23, 2008 (the “Amendment”), to the Deferred Compensation Agreement, dated as of February 27, 1979
(as amended, the “Deferred Compensation Agreement”), by and among The LaPorte Savings Bank (the “Bank”) and Lee A. Brady (the “Employee”). Capitalized terms which are not defined herein shall have the same meaning as
set forth in the Deferred Compensation Agreement. 
 W I T N E S S E T H: 
 WHEREAS, the parties desire to amend the Deferred Compensation Agreement to comply with the final regulations issued in April 2007 by the Internal
Revenue Service under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”); 
 NOW, THEREFORE, in
consideration of the premises, the mutual agreements herein set forth and such other consideration the sufficiency of which is hereby acknowledged, the Bank and the Employee hereby agree as follows: 
 Section 1. New Section 1(a) of the Deferred Compensation Agreement. A new Section 1(a) is hereby added to read in its entirety as
follows: 
 “(a) Specified Employee means an employee who at the time of Retirement is a key employee of the Bank, if any
stock of LaPorte Bancorp, Inc. is publicly traded on an established securities market or otherwise. For purposes of this Deferred Compensation Agreement, the Employee is a key employee if the Employee meets the requirements of Code
Section 416(i)(1)(A)(i), (ii), or (iii) (applied in accordance with the regulations thereunder and disregarding section 416(i)(5)) at any time during the 12-month period ending on December 31 (the “identification period”).
If the Employee is a key employee during an identification period, the Employee is treated as a key employee for purposes of this Deferred Compensation Agreement during the twelve (12) month period that begins on the first day of April
following the close of the identification period.” 
 Section 2. New Section 1(b) of the Deferred Compensation
Agreement. A new Section 1(b) is hereby added to read in its entirety as follows: 
 “(b) Retirement means
termination of the Employee’s employment with the Bank for any reason other than death. Whether a Retirement has occurred is determined based on whether the facts and circumstances indicate that the Bank and the Employee reasonably anticipated
that no further services would be performed after a certain date or that the level of bona fide services the Employee would perform after such date (whether as an employee or as an independent contractor) would permanently decrease to no more than
twenty percent (20%) of the average level of bona fide services performed (whether as an employee or an independent contractor) over the immediately preceding thirty-six (36) month period (or the full period of services to the Bank if the
Employee has been providing services to the Bank less than thirty-six (36) months).” 

 Section 3. New Section 1(c) of the Deferred Compensation Agreement. A new
Section 1(c) is hereby added to read in its entirety as follows: 
 “(c) Restriction on Timing of
Distributions. Notwithstanding any provision of this Amendment to the contrary, if the Employee is considered a Specified Employee, the provisions of this Section 1(c) shall govern all distributions hereunder. If benefit distributions
which would otherwise be made to the Employee due to a Retirement are limited because the Employee is a Specified Employee, then such distributions shall not be made during the first six (6) months following Retirement. Rather, any distribution
which would otherwise be paid to the Employee during such period shall be accumulated and paid to the Employee in a lump sum on the first day of the seventh month following the Retirement. All subsequent distributions shall be paid in the manner
specified.” 
 Section 4. New Section 1(d) of the Deferred Compensation Agreement. A new Section 1(d) is hereby
added to read in its entirety as follows: 
 “(d) Distributions Upon Income Inclusion Under Section 409A of the
Code. If, pursuant to Code Section 409A, the Federal Insurance Contributions Act or other state, local or foreign tax, the Employee becomes subject to tax on the amounts deferred hereunder, then the Company may make a limited distribution to
the Employee in accordance with the provisions of Treasury Regulations Section 1.409A-3(j)(4)(vi), (vii) and (xi). Any such distribution will decrease the Employee’s benefit hereunder.” 
 Section 5. Effectiveness. This Amendment shall be deemed effective as of January 1, 2005, as if executed on such date. Except as
expressly set forth herein, this Amendment shall not by implication or otherwise alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Deferred Compensation Agreement, all of
which are ratified and affirmed in all respects and shall continue in full force and effect and shall be otherwise unaffected. 
 Section 6. Governing Law. This Amendment and the rights and obligations hereunder shall be governed by and construed in accordance with the laws of the State of Indiana. 
 Section 7. Counterparts. This Amendment may be executed in any number of counterparts, each of which shall for all purposes be deemed an
original, and all of which together shall constitute but one and the same instrument. 
 Section 8. Compliance with
Section 409A. This Deferred Compensation Agreement shall be interpreted and administered consistent with Section 409A of the Code. 

 IN WITNESS WHEREOF, the Bank and the Employee have duly executed this Amendment as of the day and year
first written above. 
  

					
	EMPLOYEE	 		 	THE LAPORTE SAVINGS BANK
			
	 /s/ Lee A. Brady
	 		 	 By: /s/ Debra Varnak

	Lee Brady	 		 	 Title Senior V.P. Human ResourcesAmendment to Employment Agreement

 Exhibit 10.1.1 
 AMENDMENT TO EMPLOYMENT AGREEMENT 
 This Amendment to Employment Agreement (this
“Amendment”) amends the Consulting and Executive Employment Agreement between Cowlitz Bancorporation, Cowlitz Bank, and Richard J. Fitzpatrick dated February 10, 2003 (together, the “Agreement”). This Amendment
is effective December 17, 2008. 
 1. Section 5(b) of the Agreement is hereby amended in its entirety to read as follows: 
  

	 	“(b)	Good Reason. For the purposes of this Agreement, ‘Good Reason’ for Executive’s resignation will exist if 

  

	 	(i)	Without the written consent of Executive, any one or more of the following occurs: (A) a material diminution of Executive’s base compensation; (B) a change of 20 or
more miles in, or a change to a location in the State of Oregon as, the principal geographic location at which Executive must perform services for Cowlitz, which Executive and Cowlitz agree is a material breach of this Agreement; (C) a material
diminution in the Executive’s authority, duties or responsibilities; (D) a material diminution in the authority, duties, or responsibilities of the supervisor to whom the Executive is required to report, including a requirement that
Executive report to a corporate officer or employee instead of reporting directly to the Board of Directors; (E) a material diminution in the budget over which the Executive retains authority; or (F) any other action or inaction by Cowlitz
that constitutes a material breach of this Agreement; 

  

	 	(ii)	Executive provides notice to Cowlitz of the existence of the condition within 90 days of the initial existence of the condition; 

  

	 	(iii)	Cowlitz has 30 days following receipt of such notice to remedy the condition and fails to do so; and 

  

	 	(iv)	Executive resigns within twelve months of such event occurring.” 

 2.
Section 5(c) of the Agreement is hereby amended in its entirety to read as follows: 
  

	 	“(c)	Disability. For the purposes of this Agreement, ‘Disability’ means (i) Executive is unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or (ii) Executive is, by reason of any medically determinable physical
or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health
plan covering Cowlitz employees. For so long as Executive receives short-term disability benefits, Cowlitz shall be relieved of its obligation to pay any cash compensation provided in Section 3(a) and (c) of this Agreement for so long as
such disability benefits are being paid to Executive.” 

  

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 3. Section 5(d) of the Agreement is hereby amended in its entirety to read as follows: 
  

	 	“(d)	Change in Control. For purposes of this Agreement, a ‘Change in Control’ shall be deemed to have occurred on the date that a “change in the ownership,”
“a change in the effective control,” or “a change in the ownership of a substantial portion of the assets” (as those terms are defined in Section 1.409A-3(i)(5) of the Treasury Regulations promulgated under the
Internal Revenue Code of 1986, as amended) of Cowlitz occurs and includes: 

  

	 	(i)	the date on which any one person, or more than one person acting as a group (as set forth in Section 1.409A-3(i)(5) of the Treasury Regulations), acquires ownership of stock of
Cowlitz that, together with stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of Cowlitz; 

  

	 	(ii)	the date on which Cowlitz merges or consolidates with another entity and as a result less than 50% of the total fair market value or total voting power of the stock of the resulting
entity immediately after the merger or consolidation is held by any one person, or more than one person acting as a group, who were the holders of Cowlitz’s voting securities immediately before the merger or consolidation;

  

	 	(iii)	the date on which any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition
by such person or persons) ownership of stock of Cowlitz possessing 30% or more of the total voting power of the stock of Cowlitz; 

  

	 	(iv)	the date on which a majority of members of Cowlitz’ Board of Directors is replaced during any 12-month period by directors whose appointment or election is not endorsed by a
majority of the members of Cowlitz’s board of directors before the date of the appointment or election; or 

  

	 	(v)	the date on which any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition
by such person or persons) assets from Cowlitz that have a total gross fair market value (the value of the assets of Cowlitz, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets)
equal to or more than 40% of the total gross fair market value of all of the assets of Cowlitz immediately before such acquisition or acquisitions.” 

 4. Section 7(a) of the Agreement is hereby amended in its entirety to read as follows: 
 “(a) Notwithstanding anything to the contrary in Section 6, if Executive terminates employment due to a Change in Control within thirty days of the Change in Control, or if there is a Termination Without Cause or Termination For
Good Reason within twenty-four months following a Change in Control, the Executive shall be entitled to receive, in a lump sum on the date of Termination: (W) the Executive’s highest annual Base Salary; plus (X) the
Executive’s highest annual performance bonus under Section 3(c); plus (Y) the value of the contributions that Cowlitz would have made to or for the credit of Executive’s account if the amounts referred to in
(W) and (X) had been received by Executive on a basis that made them eligible for a Cowlitz contribution to a Cowlitz-sponsored retirement plan (for purposes of making this calculation all such contributions shall be considered to have
been fully-vested when made); plus (Z) the value of the annual Cowlitz contributions being made to any employee welfare benefit plans, whether qualified or non-qualified, in which the Executive participated at the time of the
Change in Control (including without limitation, plans for hospitalization, medical care, major medical, dental, disability, survivor benefits, and life insurance). An example of the calculation of Executive’s benefits is set forth as
Addendum A to this Agreement.” 
  

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 5. Section 17 of the Agreement is hereby amended in its entirety to read as follows: 
 “17. Attorneys’ Fees; Indemnification; Damages. Cowlitz shall
indemnify, hold harmless and defend Executive against (i) any tax penalties or increased tax liability of Executive due to Cowlitz’s failure to comply with the terms of this Agreement or breach of this Agreement, and (ii) costs,
including legal fees and expenses, incurred by Executive in connection with or arising out of any action, suit or proceeding (including any tax controversy) in which Executive may be involved, as a result of Executive’s efforts, in good faith,
to defend or enforce the terms of this Agreement. For purposes of this Agreement, any settlement agreement that provides for payment of any amounts in settlement of Cowlitz’s obligations hereunder shall be conclusive evidence of
Executive’s entitlement to indemnification hereunder, and any such indemnification payments shall be in addition to amounts payable pursuant to such settlement agreement, unless such settlement agreement expressly provides otherwise.
Cowlitz’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which Cowlitz
may have against Executive or others. In no event shall Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to Executive under any of the provisions of this Agreement and such amounts
shall not be reduced whether or not Executive obtains other employment. Unless it is determined that Executive has acted in bad faith, Cowlitz shall pay as incurred, to the full extent permitted by law, all legal fees and expenses that Executive may
reasonably incur as a result of or in connection with his consultation with legal counsel or arising out of any action, suit, proceeding, tax controversy or contest (regardless of the outcome thereof) by Cowlitz, Executive or others regarding the
validity or enforceability of, or liability under, any provision of this Agreement or any guarantee of performance thereof (including as a result of any contest by Executive about the amount of any payment pursuant to this Agreement), plus in each
case interest on any delayed payment (except a six-month delay required under Section 22 of this Agreement, which shall bear interest as set forth therein), all payments due and outstanding shall bear interest at the rate of 1 1/2% per month until such payment is made. 
 6. Section 20 of the Agreement is hereby amended in its entirety to read as follows: 
 “20. Regulatory Matters. Notwithstanding any other provision in this Agreement, Executive shall not be entitled to any benefit provided for herein to the extent that the payment of such benefit would be prohibited or restricted
by (i) the applicable provisions of the Emergency Economic Stabilization Act of 2008, if any, and its implementing regulations and guidelines, (ii) the provisions of Part 359 of the regulations of the Federal Deposit Insurance Corporation,
as they may be amended from time to time, or (iii) any other applicable statute or regulation. If any such payment is so prohibited or restricted, Cowlitz and its successors and assigns shall use its best efforts to secure the consent of the
appropriate regulatory agencies to make such payment in the highest amount permissible, up to the amount provided for in this Agreement. Upon removal of any prohibition or restriction on payment of benefits, Cowlitz or its successor or assign shall
immediately pay all amounts due to Executive pursuant to this Agreement together with interest on the amounts owed accrued at the rate of Prime plus 2% per annum.” 
  

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 7. The following is added to the Agreement as Section 22: 
 “22. 409A. 
 22.1 For purposes of this Agreement, the term termination or resignation means a termination of employment that meets the definition of “separation of service” as defined in Section 409A of the Internal
Revenue Code and regulations promulgated thereunder. 
 22.2 Notwithstanding any provision of this Agreement to the contrary,
if, at the time of Executive’s “separation of service” with Cowlitz, he or she is a “specified employee” and one or more of the payments or benefits received or to be received by Executive pursuant to this Agreement would
constitute an item of “deferred compensation” subject to Section 409A of the Internal Revenue Code and regulations promulgated thereunder, no such payment or benefit will be provided under this Agreement until the earlier of:
(a) the date that is six (6) months following Executive’s termination of employment with Cowlitz or (b) the Executive’s death, unless the payment or distribution is exempt from the application of Section 409A. The terms
“separation of service,” “specified employee,” and “deferred compensation” have the meanings set forth in Section 409A of the Internal Revenue Code and regulations promulgated thereunder. In the event any of
Executive’s benefits that are paid in installments under this Agreement are subject to the six-month delay set forth in this Section 22, the first installment payment shall be made on the first business day of the seventh month following
termination of employment and shall equal the aggregate installment payments Executive would have received during the first six months plus the payment Executive is otherwise entitled to receive for the seventh month plus interest for
the period of any such delay calculated using the six month Treasury bill rate in effect on the date on which the payment is delayed pursuant to this Section and compounded daily. If the conditions of the severance exception under Treasury
Regulation Section 1.409A-1(b)(9)(iii) (or any successor Regulation thereto) are satisfied, payment of benefits shall not be delayed for six (6) months following termination of employment to the extent permitted under the severance
exception.” 
 8. Except as specifically set forth herein, the Agreement as previously executed shall continue in full force and effect as written. The
parties acknowledge that the intent of this Amendment is to amend the Agreement to comply, to the extent required, with certain provisions of Internal Revenue Code Section 409A and regulations promulgated thereunder and to add the provisions
set forth herein; provided, however, the parties do not intend to amend the calculation of the benefits provided in the Agreement. 
 9. Addendum A to
this Amendment is hereby added as Addendum A to the Agreement. 
 IN WITNESS WHEREOF, the parties have caused this Amendment to be
executed as of the effective date stated above. 
  

									
	EMPLOYEE	 		 	COWLITZ BANCORPORATION
				
	/S/ Richard J. Fitzpatrick	 		 	By:	 	/S/ Linda Tubbs
	Richard J. Fitzpatrick	 		 		 	Linda Tubbs, Director
		 		 		 		 	Chair of Compensation Committee
				
		 		 		 	COWLITZ BANK
					
		 		 		 	By:	 	/S/ Linda Tubbs
		 		 		 		 	Linda Tubbs, Director
		 		 		 		 	Chair of Compensation Committee

  

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 ADDENDUM A 
 Example of Change in Control Payment 
 If a change in control had been announced or occurred prior to
December 31, 2007 and termination occurred as of December 31, 2007 Executive would have received the following, subject to 280G cutback, if any, in the form of a lump sum payment: 
 3 * $272,318 (highest annual base salary (2007)) = $816,954 
 3 * $155,610 (highest annual performance bonus (2006)) = $466,830 
 3 * $57,893 (deemed value of certain contributions to retirement plan) = $173,679 
 3 * $26,608.33 (value of annual welfare benefit plan contributions) = $79,825 
 Total = $1,537,288 
  

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