Document:

Exhibit 10.40

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

THIS EXECUTIVE EMPLOYMENT
AGREEMENT (the “Agreement”) is made and entered into as of the 11th day of October, 2013 (the “Effective
Date”), by and between Bank of the Cascades, an Oregon state bank (the “Bank”), which is a wholly-owned
subsidiary of Cascade Bancorp (the “Bancorp”), (sometimes together referred to as the “Company”), and Sandra
R. Gianotti, an individual resident of the State of Oregon (“Executive”) (the signatories to this Agreement
will be referred to jointly as the “Parties”).

 

WITNESSETH:

 

WHEREAS, the Executive
currently serves as Senior Vice President and Operational Risk Manager of the Bank, and each of the Bank and the Executive
desire to continue such employment, subject to and on the terms and conditions set forth in this Agreement; and

 

WHEREAS, the Company
and Executive have read and understood the terms and provisions set forth in this Agreement and have been afforded a reasonable
opportunity to review this Agreement with their respective legal counsel.

 

NOW, THEREFORE, in
consideration of the mutual promises and covenants set forth in this Agreement, and for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Executive and the Company agree as follows:

 

1.          Term.
The initial term of Executive’s employment by the Company under this Agreement shall terminate on the second anniversary
of the Effective Date (the “Employment Period”); provided, however, that commencing on the second anniversary
of the Effective Date, and on each anniversary of such date (each a “Renewal Date”), the Employment Period shall
be automatically extended so as to terminate one (1) year from such Renewal Date. If, at least ninety (90) days prior to any Renewal
Date, the Company gives Executive notice that the Employment Period will not be so extended, this Agreement will continue for the
remainder of the then current Employment Period and then expire. The Employment Period may be sooner terminated under Section 5
of this Agreement.

 

2.          Position
and Duties. During the Employment Period, Executive will report directly to the Chief Executive Officer. Executive shall perform
all services reasonably required by the Chief Risk Officer in conformity with the appropriate standards of the banking industry
to fully execute the duties and responsibilities associated with her position. Executive will devote substantially all of her working
time, attention and energies to the performance of her duties for the Company. Notwithstanding the above, Executive will be permitted,
to the extent such activities do not interfere with the performance by Executive of her duties and responsibilities under this
Agreement, to (a) manage Executive’s personal, financial and legal affairs, and (b) serve on civic or charitable boards or
committees.

 

3.          Place
of Performance. Executive’s place of employment will be an office of the Company in Bend, Oregon.

 

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4.          Compensation
and Related Matters.

 

(a)          Base
Salary. During the Employment Period, the Company will pay Executive a base salary of not less than $175,000 per year (the
“Base Salary”), in approximate equal installments in accordance with the Company’s customary payroll practices.

 

(b)          Annual
Incentive Bonus. Beginning on the first anniversary of the Effective Date, and so long as Executive is employed by the Company
pursuant to this Agreement, Executive shall be entitled to participate in an executive bonus plan maintained by the Company. Executive’s
annual bonus, if any, shall be determined in consideration of the Company’s overall profitability, budget and officer bonuses.

 

(c)          Welfare,
Pension and Incentive Benefit Plans. During the Employment Period, Executive (and her spouse and/or dependents to the extent
provided in the applicable plans and programs) will be entitled to participate in and be covered under the welfare benefit plans
or programs maintained by the Company for the benefit of its employees pursuant to the terms of such plans and programs including,
without limitation, all medical, life, hospitalization, dental, disability, accidental death and dismemberment insurance plans
and programs. In addition, during the Employment Period, Executive will be eligible to participate in all retirement, savings and
other employee benefit plans and programs maintained from time to time by the Company for the benefit of its employees. All employee
benefits provided to Executive by the Company incident to Executive’s employment shall be governed by the applicable plan
documents, summary plan descriptions and employment policies, and may be modified, suspended or revoked at any time, in accordance
with the terms and provisions of the applicable documents. The Company shall also provide Executive with D&O Insurance coverage
during the term of this Agreement, which policy shall be customary for the size and operation of the Company in the industry in
which the Company operates.

 

(d)          Vacation.
Executive shall be entitled to receive 30 days paid vacation annually.

 

(e)          Consulting.
In the event Executive’s employment is terminated pursuant to Section 5(f), then Executive shall provide up to 120 hours
of consulting services to the Company within the first three (3) months following such termination concerning matters associated
with the operation of the Company’s business. Executive shall keep the Company informed of her availability to perform the
consulting services required under this Agreement, which services shall be performed at such times and such places as agreed to
by the parties. Executive shall be paid for the consulting services at an hourly rate equal to her annual Base Salary at the time
of termination divided by 2080 for each hour worked.

 

(f)          Reimbursement
of Business Expenses. During the Term of Employment, the Company shall promptly pay all reasonable expenses incurred by Executive
for business travel and other reasonable business-related expenses incurred by him in performing her obligations under this Agreement
in accordance with the Company’s travel and business expense policy, such expenses to be reviewed by the Board on a periodic
basis. The Company may provide Executive with a credit card for Executive’s business-related expenses.

 

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5.          Termination.
Executive’s employment under this Agreement may be terminated during the Employment Period under the following circumstances:

 

(a)          Death.
Executive’s employment under this Agreement will terminate upon her death.

 

(b)          Disability.
If, as a result of Executive’s Disability (as hereinafter defined), Executive is substantially unable to perform her duties
under this Agreement (with or without reasonable accommodation, as defined under the Americans With Disabilities Act) for an entire
period of six (6) consecutive months, and within thirty (30) days after a Notice of Termination (as defined in Section 6(a)) is
given by the Company to Executive, Executive does not return to the substantial performance of her duties on a full-time basis,
the Company has the right to terminate Executive’s employment under this Agreement for “Disability,” and
such termination will not be a breach of this Agreement by the Company. For purposes of this Agreement, “Disability”
means that Executive: (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical
or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than
twelve (12) months; or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to
result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement
benefits for a period of not less than three (3) months under the Company’s long term disability plan covering employees
of the Company. Medical determination of Disability may be made by either the Social Security Administration or by the provider
of the long term disability plan covering employees of the Company provided that the definition of “disability” applied
under such plan complies with the requirements of the preceding sentence. Upon the request of the Plan Administrator, the employee
must submit proof to the Plan Administrator of the Social Security Administration’s or the provider’s determination.

 

(c)          Cause.
The Company has the right to terminate Executive’s employment for Cause, and such termination will not be a breach of this
Agreement by the Company. “Cause” means termination of employment for one of the following reasons:

 

(i)          The
determination by the Board in the exercise of its reasonable judgment, after consultation with its legal counsel, that Executive
has committed an act or acts constituting (A) a felony or other crime, whether a felony or a misdemeanor, involving moral turpitude,
dishonesty or theft, (B) dishonesty or disloyalty that is harmful to the Company, or (C) fraud;

 

(ii)         The
determination by the Board in the exercise of its reasonable judgment, that Executive (A) has engaged in actions or omissions that
would constitute unsafe or unsound banking practices, or (B) has failed to follow the lawful and reasonable directives of the Board,
after written notice to Executive by the Company specifying in reasonable detail such failure;

 

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(iii)        The
determination by the Board in the exercise of its reasonable judgment, after consultation with its legal counsel, that Executive
has committed a breach or violation of this Agreement, and Executive has failed to cure such breach or violation within ten (10)
business days after written notice to Executive by the Company specifying in reasonable detail the alleged breach or violation;

 

(iv)        The
determination by the Board, after consultation with its legal counsel, that Executive has engaged in gross misconduct in the course
and scope of her employment with the Company including indecency, immorality, gross insubordination, dishonesty, unlawful harassment
or discrimination, use of illegal drugs, or fighting; or

 

(v)         In
the event Executive is prohibited from engaging in the business of banking by any governmental regulatory agency having jurisdiction
over the Company.

 

For purposes of this
Agreement, Executive shall not be deemed to be in breach of this Agreement for her failure to substantially perform her duties
under this Agreement where such failure results because of Executive’s Disability within the meaning of Section 5(b). In
such case, termination of Executive shall be governed by the provisions of Section 5(b).

 

Executive shall not be
deemed to have been terminated for Cause unless and until there has been delivered to Executive a copy of the resolution duly adopted
by the Board, finding that in the good faith opinion of the Board one or more of the causes for termination set forth in clauses
(ii), (iii), or (iv) above has occurred and specifying the particulars thereof in detail.

 

(d)          Good
Reason. Executive may terminate her employment for Good Reason (as hereinafter defined) by providing a Notice of Termination
(as hereinafter defined) to the Company within thirty (30) days after Executive has actual knowledge of the occurrence, without
the written consent of Executive, of one of the events set forth below, and such termination will not be a breach of this Agreement
and will entitle Executive to the compensation and benefits described in Section 7(a) hereof. For purposes of this Agreement, “Good
Reason” shall mean any of the following:

 

(i)          the
reduction by the Company of Executive’s Base Salary;

 

(ii)         the
requirement that Executive be based at any office or location that is more than fifty (50) miles from the Company’s main
office in Bend, Oregon;

 

(iii)        the
demotion of Executive or any material reduction in authority, or assignment of material duties that are substantially inconsistent
with the Executive’s position and title immediately prior to such assignment; or

 

(iv)        the
failure of any successor to Bancorp or the Bank to assume this Agreement pursuant to Section 14.

 

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(e)          Without
Cause. The Company has the right to terminate Executive’s employment under this Agreement without Cause by providing
Executive with a Notice of Termination, subject to the obligations set forth in Section 7(a) hereof.

 

(f)          Voluntary
Termination. Executive may voluntarily terminate employment with the Company at any time, and if such termination is not for
Good Reason, then, Executive shall only be entitled to compensation and benefits as described in Section 7(b) hereof.

 

6.          Termination
Procedure.

 

(a)          Notice
of Termination. Any termination of Executive’s employment by the Company or by Executive during the Employment Period
(other than termination due to Executive’s death) shall be communicated by written Notice of Termination to the other party
in accordance with Section 16. For purposes of this Agreement, a “Notice of Termination” means a written notice
which indicates the specific termination provision in this Agreement relied upon and sets forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of Executive’s employment.

 

(b)          Date
of Termination. “Date of Termination” shall mean (i) if Executive’s employment is terminated by her
death, the date of her death, (ii) if Executive’s employment is terminated due to Disability pursuant to Section 5(b), thirty
(30) days after Notice of Termination (provided that Executive has not returned to the substantial performance of her duties on
a full-time basis during such 30-day period), (iii) if Executive’s employment is terminated by Executive, thirty (30) days
after a Notice of Termination is given, or (iv) if Executive’s employment is terminated by the Company for any other reason,
the date on which a Notice of Termination is given or any later date (within thirty (30) days after the giving of such Notice of
Termination) set forth in such Notice of Termination.

 

7.          Compensation
Upon Termination or During Disability. In the event of Executive’s Disability or termination of her employment under
this Agreement during the Employment Period, the Company will provide Executive with the payments and benefits set forth below.
Executive agrees that the Company has the right to deduct any amounts owed by Executive to the Company for any reason, including,
without limitation, Executive’s misappropriation of Bank funds, from the payments set forth in this Section 7.

 

(a)          Termination
by the Company Without Cause or by Executive for Good Reason. If Executive’s employment is terminated by the Company
without Cause or by Executive for Good Reason:

 

(i)          the
Company will, pay to Executive (A) on the next regularly scheduled payroll date following the Date of Termination, her Base Salary
and accrued vacation pay through the Date of Termination and (B) within thirty (30) days of the Date of Termination, an amount
equal to eighteen (18) months of her Base Salary, plus an amount equal to the cash incentive at Target in effect for the Executive
in the year in which the Date of Termination occurs, pro-rated for the portion of the year prior to the Date of Termination;

 

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(ii)         the
Company will, within thirty (30) days of the Date of Termination, reimburse Executive, pursuant to the Company’s policy,
for reasonable business expenses incurred, but not paid, prior to the Date of Termination;

 

(iii)        the
Company shall also, at its sole expense, for a period of eighteen (18) months following the Date of Termination provide Executive
with medical, dental, disability and life insurance benefits equivalent to the benefit plan and programs available to Executive
by the Company immediately prior to the Date of Termination;

 

(iv)        Executive
will be entitled to any other rights, compensation and/or benefits as may be due to Executive following such termination to which
he is otherwise entitled in accordance with the terms and provisions of any plans or programs of the Company.

 

(b)          Termination
by the Company for Cause or by Executive Without Good Reason. If Executive’s employment is terminated by the Company
for Cause or by Executive (other than for Good Reason):

 

(i)          the
Company will, on the next regularly scheduled payroll date following the Date of Termination, pay to Executive her Base Salary
and her accrued vacation pay (to the extent required by law or the Company’s vacation policy) through the Date of Termination;

 

(ii)         the
Company will, within thirty (30) days of the Date of Termination, reimburse Executive, pursuant to the Company’s policy,
for reasonable business expenses incurred, but not paid, prior to the Date of Termination, unless such termination resulted from
a misappropriation of Bank funds; and

 

(iii)        Executive
will be entitled to any other rights, compensation and/or benefits as may be due to Executive following termination to which she
is otherwise entitled in accordance with the terms and provisions of any plans or programs of the Company.

 

(c)          Disability.
During any period that Executive fails to perform her duties under this Agreement as a result of incapacity due to Disability,
Executive will continue to receive her full Base Salary set forth in Section 4(a) until her employment is terminated pursuant to
Section 5(b). In the event Executive’s employment is terminated for Disability pursuant to Section 5(b):

 

(i)          the
Company will (A) on the next regularly scheduled payroll date following the Date of Termination, pay to Executive her Base Salary
and accrued vacation pay through the Date of Termination and (B) provide Executive with disability benefits pursuant to the terms
of the Company’s disability programs and/or practices, if any;

 

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(ii)         the
Company will, within thirty (30) days of the Date of Termination, reimburse Executive, pursuant to the Company’s policy,
for reasonable business expenses incurred, but not paid, prior to the Date of Termination; and

 

(iii)        Executive
will be entitled to any other rights, compensation and/or benefits as may be due to Executive following such termination to which
she is otherwise entitled in accordance with the terms and provisions of any plans or programs of the Company.

 

(d)        Death.
If Executive’s employment is terminated by her death:

 

(i)          the
Company will, on the next regularly scheduled payroll date following Executive’s death, pay in a lump-sum to Executive’s
beneficiary, legal representatives or estate, as the case may be, Executive’s earned but unpaid Base Salary and accrued vacation
as of the date of death;

 

(ii)         the
Company will, within thirty (30) days of the Date of Death, reimburse Executive’s beneficiary, legal representatives or estate,
as the case may be, pursuant to the Company’s policy, for reasonable business expenses incurred, but not paid, prior to the
date of death; and

 

(iii)        Executive’s
beneficiary, legal representatives or estate, as the case may be, will be entitled to any other rights, compensation and/or benefits
as may be due to Executive following the Date of Death to which she is otherwise entitled in accordance with the terms and provisions
of any plans or programs of the Company.

 

8.          Termination
in connection with a Change in Control. In the event of Executive’s termination of employment from Bancorp or the Bank
(or the successor of either), including for Good Reason, within twelve (12) months before or eighteen (18) months after a Change
in Control, other than a termination of employment due to death, Disability or for Cause, or termination of employment by the Executive
without Good Reason:

 

(a)          
the Company will pay to Executive, within thirty (30) days of the effective date of the Change in Control, an amount equal to (i)
twenty-four (24) months of the Executive’s Base Salary, plus (ii) an amount equal to twenty-four (24) months of the annual
cash incentive at Target in effect for the Executive in the year in which the Change in Control occurs (the “Change in
Control Payment”), subject to adjustment as set forth below;

 

(b)          the
Company shall also, at its sole expense, for a period of eighteen (18) months following the Date of Termination provide Executive
with medical, dental, disability and life insurance benefits equivalent to the benefit plan and programs available to Executive
by the Company immediately prior to the Date of Termination;

 

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(c)          the
Company will, within thirty (30) days of the Date of Termination, reimburse Executive, pursuant to the Company’s policy,
for reasonable business expenses incurred, but not paid, prior to the Date of Termination; and

 

(d)          the
Company will accelerate the vesting on and fully vest all outstanding unvested grants of Restricted Stock and Stock Options awarded
to the Executive pursuant to one or more Restricted Stock Agreements and one or more Stock Option Grant Agreements under the Incentive
Plan, notwithstanding anything to the contrary under the applicable Restricted Stock Agreement, Stock Option Grant Agreement or
the Incentive Plan.

 

(e)          the
Executive will be entitled to any other rights, compensation and/or benefits as may be due to Executive following such termination
to which the Executive is otherwise entitled in accordance with the terms and provisions of any plans or programs of the Company.

 

In addition, and solely
for purposes of this Agreement, a Change in Control Payment shall also become due as a result of the Executive’s termination
of employment, other than a termination of employment due to death, Disability or for Cause, or termination of employment by the
Executive without Good Reason, following or in connection with a “business combination” that does not rise to the level
of a Change in Control (as defined below). For this purpose, a “business combination” means a share exchange, merger
or consolidation of Bancorp or the Bank with any other corporation, even if such share exchange, merger or consolidation would
result in the voting securities of Bancorp or the Bank outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent
(50%) of the total voting power represented by the voting securities of Bancorp or the Bank or such surviving entity or its parent
outstanding immediately after such share exchange, merger or consolidation.

 

Notwithstanding the foregoing,
if the Change in Control Payment becomes due at a time when either Bancorp or the Bank is considered in a “troubled condition”
by applicable regulatory authorities and therefore subject to the restrictions of 12 C.F.R. Part 359, the maximum Change in Control
Payment shall be equal to twelve (12) months of the Executive’s Base Salary. In addition, the Change in Control Payment shall
not be paid to Executive, and Executive shall not be entitled to the Change in Control Payment, unless, and then only to the extent
that, the Change in Control Payment is approved by the FDIC and any other regulatory body which has the authority to comment on
the request for approval for the Change in Control Payment. The Change in Control Payment shall be made only in accordance with
applicable law, including, without limitation, 12 C.F.R. Part 359. In the event that the Company determines at any time before
or after payment of any portion of the Change in Control Payment that Executive has committed or is substantially responsible for,
or has violated, the respective acts or omissions, conditions or offenses outlined under 12 C.F.R. 359.4(a)(4), then the Company
shall have the right to demand the return of all or any portion of the Change in Control Payment made to Executive, and Executive
hereby agrees to immediately return all such amounts of the Change in Control Payment upon and in accordance with the Company’s
demand. Other than with respect to the Change in Control Payment, this Agreement shall remain in full force and effect regardless
of whether or not the Change in Control Payment is approved or denied by any regulatory body.

 

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For purposes of this
Agreement, a Change in Control means: (i) any Person acting individually or as a “group” for purposes of Section 13(d)
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) becomes the “beneficial owner”
(as defined in Rule 13d(3) of the Exchange Act), directly or indirectly, of securities of Bancorp or the Bank representing fifty
percent (50%) or more of the total voting power represented by Bancorp’s or the Bank’s then outstanding voting securities.
For this purpose, “Person” means any individual, corporation, partnership, trust, association, joint venture,
pool, syndicate, unincorporated organization, joint-stock company or similar organization or group acting in concert, but does
not include any employee stock ownership plan or similar employee benefit plan of Bancorp or the Bank. A “Person” shall
be deemed to be a beneficial owner as that term is used in Rule 13d(3) under the Exchange Act; (ii) the consummation of the sale,
liquidation or disposition by Bancorp or the Bank of all or substantially all of Bancorp’s or the Bank’s assets; (iii)
the consummation of a share exchange, merger or consolidation of Bancorp or the Bank with any other corporation, other than a share
exchange, merger or consolidation which would result in the voting securities of Bancorp or the Bank outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving
entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of Bancorp or
the Bank or such surviving entity or its parent outstanding immediately after such share exchange, merger or consolidation; or
(iv) a majority of the Bancorp Board is removed from office by a vote of Bancorp’s shareholders against the recommendation
of the then incumbent Bancorp Board or a majority of the directors elected at any annual or special meeting of shareholders are
not individuals nominated by the then incumbent Bancorp Board.

 

9.          Proprietary
Information.

 

(a)          Proprietary
Information. In the course of service to the Company, Executive will have access to (i) the identities of the Company’s
existing and prospective customers or clients, including names, addresses, credit status, and pricing levels; (ii) the buying and
selling habits and customs of the Company’s existing and prospective customers or clients; (iii) non-public financial information
about the Company; (iv) product and systems specifications, concepts for new or improved products and other product or systems
data; (v) the identities of, and special skills possessed by, the Company’s employees; (vi) the identities of and pricing
information about the Company’s vendors; (vii) training programs developed by the Company; (viii) pricing studies, information
and analyses; (ix) current and prospective products and inventories; (x) financial models, business projections and market studies;
(xi) the Company’s financial results and business conditions; (xii) business plans and strategies; (xiii) special processes,
procedures, and services of the Company and their vendors; and (xiv) computer programs and software developed by the Company or
their consultants, all of which are confidential and may be proprietary and are owned or used by the Company, or any of its subsidiaries
or affiliates. Such information will hereinafter be called “Proprietary Information” and will include any and
all items enumerated in the preceding sentence and coming within the scope of the business of the Company or any of its subsidiaries
or affiliates as to which Executive may have access, whether conceived or developed by others or by Executive alone or with others
during the period of service to the Company, whether or not conceived or developed during regular working hours. Proprietary Information
will not include any records, data or information which are in the public domain during or after the period of service by Executive
provided the same are not in the public domain as a consequence of disclosure directly or indirectly by Executive in violation
of this Agreement.

 

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(b)          Fiduciary
Obligations. Executive agrees that Proprietary Information is of critical importance to the Company and a violation of this
Section 9(b) and Section 9(c) would seriously and irreparably impair and damage the Company’s business. Executive agrees
that he will keep all Proprietary Information in a fiduciary capacity for the sole benefit of the Company.

 

(c)          Non-Use
and Non-Disclosure. Executive will not during the Employment Period or at any time thereafter (a) disclose, directly or indirectly,
any Proprietary Information to any person other than the Company or executives thereof at the time of such disclosure who, in the
reasonable judgment of Executive, need to know such Proprietary Information or such other persons to whom Executive has been specifically
instructed to make disclosure by the Board and in all such cases only to the extent required in the course of Executive’s
service to the Company or (b) use any Proprietary Information, directly or indirectly, for her own benefit or for the benefit of
any other person or entity. At the termination of her employment, Executive will deliver to the Company all notes, letters, documents
and records which may contain Proprietary Information which are then in her possession or control and will destroy any and all
copies and summaries thereof.

 

(d)          Return
of Documents. All notes, letters, documents, records, tapes and other media of every kind and description relating to the business,
present or otherwise, of the Company or its affiliates and any copies, in whole or in part, thereof (collectively, the “Documents”),
whether or not prepared by Executive, will be the sole and exclusive property of the Company. Executive will safeguard all Documents
and will surrender to the Company at the time her employment terminates, or at such earlier time or times as the Board or its designee
may specify, all Documents then in the Executive’s possession or control.

 

10.         Restrictions
on Activities of the Executive. Contemporaneously with the execution of this Agreement, or shortly thereafter, the Company
will provide Executive with access to Proprietary Information with additional opportunities to broaden the Company’s services
and develop the Company’s customers in a matter not previously available to the Executive. Ancillary to the consideration
to be provided pursuant to Section 9(a) hereof, including but not limited to the Company’s agreement to provide Proprietary
Information to Executive and Executive’s agreement not to disclose Proprietary Information, and in order to protect the Proprietary
Information, the Company and Executive agree to the non-competition provisions set forth in this Section.

 

(a)          Non-Competition.
Executive agrees that during the Employment period, and for the Non-Competition Period set forth below, Executive will not, except
as an employee of the Company, in any capacity for Executive or for others, directly or indirectly:

 

(i)          compete
or engage anywhere in the geographic area comprised of (A) any county in which the Company maintains an office or does business,
or (B) the area which consists of the fifty (50) mile radius surrounding the Executive’s primary place of business in Bend,
Oregon (the “Market Area”), in any business that is the same or similar, or offers competing products and services
which those offered by the Company;

 

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(ii)         take
any action to invest in, own, manage, operate, control, participate in, be employed or engaged by, or be connected in any manner
with any partnership, corporation or other business or entity engaging in a business the same or similar, or which offers competing
products and services as those offered by the Company anywhere within the Market Area; notwithstanding the foregoing, Executive
is permitted hereunder to own, directly or indirectly, up to one percent (1%) of the issued and outstanding securities of any publicly
traded financial institution conducting business within the Market Area;

 

(iii)        call
on, service, or solicit competing business from customers or prospective customers of the Company if, within the twenty-four (24)
months before the termination of Executive’s employment, Executive had or made contact with the customer, or had access or
potential access to Proprietary Information or information and files about the customer; or

 

(iv)        call
on, solicit, or induce any employee of the Company whom Executive had contact with, knowledge of, or association with in the course
of employment with the Company to terminate employment from the Company, and will not assist any other person or entity in such
activities.

 

(b)          Non-Competition
Period. The restrictions on Executive’s activities identified in Section 9(a) hereof will apply for eighteen (18) months
after the termination of Executive’s employment with the Company. The restrictions identified at Section 10(a) hereof will
be applicable without regard to the reason for the termination of Executive’s employment with the Company.

 

(c)          Tolling.
In the event that the Company will file a lawsuit in any court of competent jurisdiction alleging a breach of any of Executive’s
obligations under this Agreement, then any time period set forth in this Agreement, including the Non-Competition Period, will
be deemed tolled as of the time such lawsuit is filed and will remain tolled until such dispute is resolved either by written settlement
agreement resolving all claims raised by the lawsuit or by entry of a final judgment in such lawsuit and the final resolution of
any post-judgment appellate proceedings.

 

(d)          EXECUTIVE
REPRESENTS AND WARRANTS THAT THE KNOWLEDGE, SKILLS AND ABILITIES SHE POSSESSES AT THE TIME OF COMMENCEMENT OF EMPLOYMENT HEREUNDER
ARE SUFFICIENT TO PERMIT HER, IN THE EVENT OF TERMINATION OF HER EMPLOYMENT HEREUNDER, TO EARN A LIVELIHOOD SATISFACTORY TO HERSELF
WITHOUT VIOLATING ANY PROVISION OF SECTION 9 OR 10 HEREOF, FOR EXAMPLE, BY USING SUCH KNOWLEDGE, SKILLS AND ABILITIES, OR SOME
OF THEM, IN THE SERVICE OF A NON-COMPETITOR.

 

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(e)          Remedies.
Executive acknowledges and understands that Sections 10 and 11 and the other provisions of this Agreement are of a special and
unique nature, the loss of which cannot be adequately compensated for in damages by an action at law, and that the breach or threatened
breach of the provisions of this Agreement would cause the Company irreparable harm. In the event of a breach or threatened breach
by Executive of the provisions of this Agreement, the Company shall be entitled to an injunction restraining Executive from such
breach. Nothing contained in this Agreement shall be construed as prohibiting the Company from pursuing, or limiting the Company’s
ability to pursue, any other remedies available for any breach or threatened breach of this Agreement by Executive. The provision
of this Agreement relating to arbitration of disputes shall not be applicable to the Company to the extent it seeks an injunction
in any court to restrain Executive from violating Sections 10 and/or 11.

 

11.         Release.
Executive agrees that, if her employment is terminated under circumstances entitling him to payments under Sections 7(a) or 8(a)
of this Agreement, in consideration for the payments described in Sections 7(a) or 8(a), she will execute a General Release and
waiver of claims in favor of the Company, its parents, subsidiaries, affiliates, and their officers, directors, employees, agents,
and attorneys, in a form provided to Executive at the time of her separation of employment, and through which Executive releases
the Company from any and all claims as may relate to or arise out of her employment relationship, or the termination thereof (excluding
claims Executive may have under any “employee pension plan” as described in Section 3(3) of ERISA).

 

12.         Indemnification
and Insurance. During the term of this Agreement, Executive shall be indemnified and held harmless by the Company and shall
be covered by a directors and officers liability insurance policy covering acts or omissions occurring prior to (a) the termination
of this Agreement or (b) the termination of employment of Executive. The Company shall extend this coverage for the Executive for
a period of 3 years following termination other than for due cause.

 

13.         Arbitration;
Legal Fees and Expenses.

 

(a)          Executive
recognizes that differences may arise between him and the Company during or following her employment with the Company, and that
those differences may or may not be related to her employment. Executive acknowledges that by entering into this Agreement, she
anticipates gaining the benefits of a speedy, impartial dispute-resolution procedure for resolving any and all disputes between
herself and the Company or the Company. Notwithstanding paragraph (f) hereof, this Section 13 shall be governed by the Federal
Arbitration Act and to the extent that it is inconsistent with Oregon law, it will supersede Oregon law relating to the arbitrability
of any disputes.

 

    	12

    	 

    

 

(b)          Executive
and the Company consent to the resolution by final and binding arbitration of any claim, controversy, or dispute (“Claim(s)”)
between Executive and the Company, whether or not such Claims arise out of or relate to her employment by the Company, in accordance
with the Employment Arbitration Rules of the American Arbitration Association in effect on the date the claim or controversy arises.
The Claims covered by this Section 13 include, but are not limited to, claims for wages or other compensation due; claims for breach
of any contract or covenant (express or implied); tort claims (including, but not limited to, invasion of privacy, intentional
infliction of emotional distress, assault, battery, fraud, negligence, gross negligence, negligent hiring or retention); claims
of discrimination (including, but not limited to, race, gender, sexual harassment, religion, national origin, age, marital status,
or medical condition, handicap or disability); claims for benefits (except where an employee benefit or pension plan specifies
that its claims procedure shall culminate in an arbitration procedure different from this one); and claims for violation of any
federal, state, or other governmental law, statute, regulation, or ordinance, except claims excluded in the following paragraph.

 

(c)          Executive
and the Company understand that claims for workers’ compensation or unemployment compensation benefits are not covered by
this Agreement. Moreover, although Executive is prohibited from filing a lawsuit concerning Claims covered by this Agreement, Executive
understands that this Section 13 shall not prohibit him from filing a charge or complaint with any governmental agency. Finally,
Executive understands that this Section 14 does not apply with respect to any claims that the Company may have against Executive
relating to the operation of and the enforcement of Sections 9 or 10 hereof.

 

(d)          Either
party may initiate an arbitration proceeding by delivery of written notice to the other party hereto. Within thirty (30) days after
giving or receiving a demand for arbitration, the Company and Executive shall endeavor to select a mutually agreeable arbitrator.
Except as otherwise agreed upon by the Parties, the arbitration shall convene in Deschutes County, Oregon.

 

(e)          The
decision of the arbitrator shall be in writing and presented in separate findings of fact and law. The award of the arbitrator
shall be final and binding on the parties from which no appeal maybe taken and an order confirming the award or judgment upon the
award may be entered into in any court having jurisdiction there over.

 

(f)          Prior
to the appointment of the arbitrator, the Company or Executive may seek provisional remedies, including, without limitation, temporary
restraining orders and preliminary injunctions. After the appointment of the arbitrator, the arbitrator shall have sole authority
to grant such provisional remedies as the arbitrator, in her sole discretion, deems necessary or appropriate.

 

(g)          The
arbitrator shall have the authority to award any relief permitted by relevant federal or state statute, including, without limitation,
back wages, front wages, actual damages, compensatory damages, punitive damages, attorneys’ fees, and costs associated with
the arbitration proceeding. The arbitrator, in the award, may assess the fees and expenses of the arbitrator and of the arbitration
proceeding and the witness and attorneys’ fees of the parties or any part thereof, against either the Company or Executive
or both of them, taking into account the circumstances of the case. Except as assessed by the arbitrator in the award, the Company
and Executive shall each bear their own costs in connection with the arbitration proceeding.

 

    	13

    	 

    

 

(h)          Executive
and the Company acknowledge and agree that a party making a Claim pursuant to or arising under this Section 13 must give written
notice of such Claim within one (1) year of the occurrence of the event or conduct giving rise to the Claim. Failure to give notice
of any Claim within one (1) year shall constitute a waiver of the Claim, even if there is a federal or state statute of limitations
which would have given more time to pursue the Claim.

 

(i)          Except
with respect to claims described in Section 13(c), Executive and the Company acknowledge and agree that the arbitrator, and not
any federal, state, or local court or agency, shall have exclusive authority to resolve any dispute relating to the interpretation,
applicability, enforceability or formation of this Agreement, including, but not limited to, any claim that all or any part of
this Agreement is void or voidable. Such arbitrator shall have jurisdiction to hear and rule on pre-hearing disputes, and is authorized
to hold pre-hearing conferences by telephone or in person as the arbitrator deems necessary. The arbitrator shall have the authority
to entertain a motion to dismiss and/or a motion for summary judgment by any party and shall apply the standards governing such
motions under the Federal Rules of Civil Procedure. The arbitrator shall apply the substantive law (and the law of remedies, if
applicable) of the state in which the Claim arose, or federal law, or both, as applicable to the Claim(s) asserted. The Federal
Rules of Evidence shall apply to the arbitration proceeding.

 

14.         Agreement
Binding on Successors.

 

(a)          The
Company’s Successors. The Company shall
require any successor (whether direct or indirect, by purchase, merger, reorganization, sale, transfer of stock, consolidation
or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and agree
to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no succession
had taken place. As used in this Agreement, the “Bank”
means the Company and any
successor to the Company’s business and/or assets (by merger,
purchase or otherwise) which executes and delivers the agreement provided for in this Section 14
or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law.

 

(b)          Executive’s
Successors. No rights or obligations of Executive under this Agreement may be assigned or transferred by Executive other than
her rights to payments or benefits under this Agreement, which
may be transferred only by will or the laws of descent and distribution. Upon Executive’s death, this Agreement and all rights
of Executive under this Agreement shall inure to the benefit of
and be enforceable by Executive’s beneficiary or beneficiaries, personal or legal representatives, or estate, to the extent
any such person succeeds to Executive’s interests under this Agreement. Executive will
be entitled to select and change a beneficiary or beneficiaries to receive any benefit or compensation payable under this
Agreement following Executive’s death by giving the Company written
notice thereof in a form acceptable to the Company. In the event
of Executive’s death or a judicial determination of her incompetence, reference in this Agreement to Executive shall be deemed,
where appropriate, to refer to her beneficiary(ies), estate or other legal representative(s). If Executive should die following
her Date of Termination while any amounts would still be payable to him
under this Agreement if he had continued to live, unless otherwise
provided, all such amounts shall be paid in accordance with the
terms of this Agreement to such person or persons so appointed in writing by Executive, or otherwise to her legal representatives
or estate.

 

    	14

    	 

    

 

15.         Specified
Employee Delay. Notwithstanding the foregoing, if the Company determines that the Executive is a “specified employee”
within the meaning of Section 409(A) of the Internal Revenue Code of 1986, as amended (“Code”), or any successor section
(“Code Section 409(A)”), and that, as a result of such status, any portion of the payment under this Agreement would
be subject to additional taxation, the Company will delay paying any payment or portion thereof until the earliest permissible
date on which payments may commence without triggering such additional taxation or penalty. To the extent that the Executive is
a “specified employee,” as such term is defined in the Code, or any successor section, and payments to the Executive
are therefore delayed for six months, amounts payable pursuant to this Agreement shall bear interest at the prime rate as published
in The Wall Street Journal in effect from time to time, with such interest commencing on the date of termination and earned
until payment of such amounts shall commence.

 

16.         Notice.
For the purposes of this Agreement, notices, demands and all other communications provided for in this Agreement shall be in writing
and shall be deemed to have been duly given when delivered either personally or by United States certified or registered mail,
return receipt requested, postage prepaid, addressed as follows:

 

		If
                            to Executive:	Sandra R. Gianotti

62560 Quail
Ridge Road

Bend, OR 97702

At
her last known address evidenced on the Company’s
payroll records.

 

		If to
                            the Company:	Bank of the Cascades

1070 NW Wall
Street, Suite 301

Bend, OR 97701

 

or
to such other address as any party may have furnished to the others in writing in accordance with this Agreement,
except that notices of change of address shall be effective only upon receipt.

 

17.         Withholding.
All payments hereunder will be subject to any required withholding of federal, state and local taxes pursuant to any applicable
law or regulation.

 

18.         Restrictions
Upon Funding. The Company shall have no obligation to set aside, earmark or entrust any fund or money with which to pay its
obligations under this Agreement. Executive or any successor-in-interest
to Executive shall be and remain simply a general creditor of the Company in the same manner as any other creditor having a general
unsecured claim. For purposes of the Internal Revenue Code, the Company intends this Agreement to be an unfunded, unsecured promise
to pay on the part of the Company. For purposes of Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
the Company intends that this Agreement not be subject to ERISA. If it is deemed subject to ERISA, it is intended to be an unfunded
arrangement for the benefit of a select member of management, who is a highly compensated employee of the Company for the purpose
of qualifying this Agreement for the “top hat” plan exception under sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.
At no time shall Executive have or be deemed to have any lien nor right, title or interest in or to any specific investment or
to any assets of the Company. If the Company elects to invest in a life insurance, disability or annuity policy upon the life of
Executive, Executive shall assist the Company by freely submitting to a physical examination and supplying such additional information
necessary to obtain such insurance or annuities.

 

    	15

    	 

    

 

19.         Miscellaneous.
No provisions of this Agreement may be amended, modified, or waived unless agreed to in writing and signed
by Executive and by a duly authorized officer of the Company. No waiver by either party of any breach by the other party of any
condition or provision of this Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same
or at any prior or subsequent time. The respective rights and obligations of the Parties under
this Agreement shall survive Executive’s termination of employment
and the termination of this Agreement to the extent necessary for the intended preservation of such rights and obligations. The
validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Oregon
without regard to its conflicts of law principles.

 

20.         Validity.
The invalidity or unenforceability of any provision or provisions of this Agreement will not affect the validity or enforceability
of any other provision of this Agreement, which will remain in full force and effect.

 

21.         Counterparts.
This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original but all of which together
will constitute one and the same instrument.

 

22.         Section
Headings. The section headings in this Agreement are for convenience of reference only, and they form no part of this Agreement
and will not affect its interpretation.

 

23.         Entire
Agreement. Except as provided elsewhere herein, this Agreement sets
forth the entire agreement of the Parties with respect to
its subject matter and supersedes all prior agreements, promises, covenants,
arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative
of any party to this Agreement with respect to
such subject matter.

 

Voluntary Agreement.
The Parties acknowledge that each has carefully read this agreement, that each has had an opportunity to consult with her or its
attorney concerning the meaning, import and legal significance of this Agreement, that each understands its terms, that all understandings
and agreements between Executive and the Company relating to the subjects covered in this Agreement are contained in it, and that
each has entered into the Agreement voluntarily and not in reliance on any promises or representations by the other than those
contained in this Agreement.

 

    	16

    	 

    

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement to be effective as of the date
first above written.

 

	 	Cascade Bancorp
	 	 	 
	 	By: 	/s/ Peggy L. Biss
	 	 	 
	 	Bank of the Cascades
	 	 	 
	 	By: 	/s/ Peggy L. Biss
	 	 	 
	 	EXECUTIVE
	 	 	 
	 	/s/ Sandra R. Gianotti

 

    	17Exhibit 10.41

 

Bank of the Cascades

Deferred Bonus Agreement

 

 

BANK OF THE CASCADES

AMENDED AND RESTATED

DEFERRED BONUS AGREEMENT

 

THIS AMENDED AND RESTATED
DEFERRED BONUS AGREEMENT (this “Agreement”) is adopted this 12th day of December, 2008, by and between BANK OF THE
CASCADES, an Oregon corporation located in Bend, Oregon (the “Bank”), and SANDRA GIANOTTI (the “Employee”).

 

This
Agreement amends and restates the prior Manager Deferred Bonus Agreement effective as of December 15, 2004 between the Bank and
the Employee (the “Prior Agreement”). The parties intend this Agreement to be a material modification of the Prior
Agreement such that all amounts earned and vested prior to December 31, 2004 shall be subject to the provisions of Code Section
409A.

 

The purpose of this
Agreement is to provide specified benefits to the Employee, a member of a select group of management or highly compensated employees
who contribute materially to the continued growth, development and future business success of the Bank. This Agreement shall be
unfunded for tax purposes and for purposes of Title I of the Employee Retirement Income Security Act (“ERISA”).

 

Article 1

Definitions

 

Whenever used in this
Agreement, the following words and phrases shall have the meanings specified:

 

		1.1	“Bancorp” means Cascade Bancorp.

 

		1.2	“Beneficiary” means each designated person or entity, or the estate of the deceased
Employee, entitled to any benefits upon the death of the Employee pursuant to Article 6.

 

		1.3	“Beneficiary Designation Form” means the form established from time to time
by the Plan Administrator that the Employee completes, signs and returns to the Plan Administrator to designate one or more beneficiaries.

 

		1.4	“Board” means the Board of Directors of the Bank as from time to time constituted.

 

		1.5	“Bonus” means the cash bonus, if any, awarded to the Employee for services performed
during the Plan Year.

 

		1.6	“Change in Control” means the occurrence of any of the following events:

 

    	 

    	Bank of the Cascades
Deferred Bonus Agreement
 

    

 

		(a)	Any person acting individually or as a “group” for
purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) becomes the beneficial
owner (as defined in Rule 13d(3) of the Exchange Act), directly or indirectly, of securities of Bancorp representing fifty percent
(50%) or more of the total voting power represented by Bancorp’s then outstanding voting securities; 

		(b)	The consummation of the sale, liquidation or disposition by Bancorp
of all or substantially all of Bancorp’s or the Bank’s assets; or 

		(c)	The consummation of a share exchange, merger or consolidation
of Bancorp or the Bank with any other corporation, other than a share exchange, merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding
or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting
power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after
such share exchange, merger or consolidation; or

		(d)	A majority of the board of directors of Bancorp is removed from
office by a vote of Bancorp’s shareholders against the recommendation of Bancorp’s then incumbent board of directors
or a majority of the directors elected at any annual or special meeting of shareholders are not individuals nominated by Bancorp’s
then incumbent board of directors.

 

Notwithstanding the foregoing,
for the purposes of this Agreement, no transaction, series of transactions or change in the composition of the Board or of the
board of directors of Bancorp shall be considered a Change in Control unless it meets the requirements of Code Section 409A(a)(2)(A)(v).

 

		1.7	“Code” means the Internal Revenue Code of 1986, as amended, and all regulations
and guidance thereunder.

 

		1.8	“Crediting Rate” means the rate set by the Bank from time to time. As of the
date hereof, the Crediting Rate is six and one-quarter percent (6.25%).

 

		1.9	“Deferrals” means the amount of Bonus the Employee elects to defer according
to this Agreement.

 

		1.10	“Deferral Account” means the Bank’s accounting of the accumulated Deferrals
plus accrued interest and earnings.

 

		1.11	“Deferral Election Form” means each form established from time to time by the
Plan Administrator that the Employee completes, signs and returns to the Plan Administrator to designate the amount of Deferrals.

 

    	 

    	Bank of the Cascades
Deferred Bonus Agreement
 

    

 

		1.12	“Disability” means the Employee: (i) is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death
or can be expected to last for a continuous period of not less than twelve (12) months; or (ii) is, by reason of any medically
determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous
period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months
under an accident and health plan covering employees or directors of the Bank. Medical determination of Disability may be made
by either the Social Security Administration or by the provider of an accident or health plan covering employees or directors of
the Bank, provided that the definition of “disability” applied under such insurance program complies with the requirements
of the preceding sentence. Upon the request of the Plan Administrator, the Employee must submit proof to the Plan Administrator
of the Social Security Administration’s or the provider’s determination.

 

		1.13	“Distribution Election Form” means the form or forms established from time to
time by the Plan Administrator that the Employee completes, signs and returns to the Plan Administrator to designate the time and
form of distributions.

 

		1.14	“Early Retirement Age” means the Employee attaining age fifty (50) and completing
fifteen (15) Years of Service.

 

		1.15	“Early Termination” means Separation from Service before Normal Retirement Age
except when such Separation from Service occurs: (i) within twelve (12) months following a Change in Control; or (ii) due to death
or Termination for Cause.

 

		1.16	“Normal Retirement Age” means the Employee attaining age sixty-two (62) and
completing ten (10) Years of Service

 

		1.17	“Plan Administrator” means the Board or such committee or person as the Board
shall appoint.

 

		1.18	“Plan Year” means each twelve (12) month period commencing on January 1 and
ending on December 31 of each year.

 

		1.19	“Projected Balance” means the projected Deferral Account balance on the first
day of the month following the date which would have been the Normal Retirement Age had the Employee survived and continued to
be employed by the Bank. This amount shall be calculated assuming the Deferrals and the Crediting Rate remained constant from the
date of death until the date which would have been the Normal Retirement Age.

 

		1.20	“Separation from Service” means termination of the Employee’s employment
with the Bank for reasons other than death or Disability. Whether a Separation from Service has occurred is determined in
accordance with the requirements of Code Section 409A based on whether the facts and circumstances indicate that the Bank
and 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).

 

    	 

    	Bank of the Cascades
Deferred Bonus Agreement
 

    

 

		1.21	“Specified Employee” means an employee who at the time of Separation from Service
is a key employee of the Bank, if any stock of the Bank is publicly traded on an established securities market or otherwise. For
purposes of this Agreement, an 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
twelve (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 Agreement during the twelve (12) month
period that begins on the first day of April following the close of the identification period.

 

		1.22	“Termination for Cause” means a Separation from Service for:

		(a)	Gross negligence or gross neglect of duties to the Bank;

		(b)	Conviction of a felony or of a gross misdemeanor involving moral turpitude in connection with the
Employee’s employment with the Bank; or

		(c)	Fraud, disloyalty, dishonesty or willful violation of any law or significant Bank policy committed
in connection with the Employee's employment and resulting in a material adverse effect on the Bank.

 

		1.23	“Unforeseeable Emergency” means a severe financial hardship to the Employee
resulting from an illness or accident of the Employee, the Employee’s
spouse, the Beneficiary, or the Employee’s dependent (as defined in Section
152(a) of the Code), loss of the Employee’s property due to casualty, or other
similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Employee.

 

		1.24	“Years of Service” means the twelve (12) consecutive month period beginning
on the Employee’s date of hire and any twelve (12) month anniversary thereof during the entirety of which time the Employee
is an employee of the Bank. Service with a subsidiary or other entity controlled by the Bank before the time such entity became
a subsidiary or under such control shall not be considered “credited service” unless the Plan Administrator specifically
agrees to credit such service.

 

Article 2

Deferral Election

 

		2.1	Elections Generally. The Employee may annually file a Deferral Election Form with the Plan
Administrator no later than the end of the Plan Year preceding the Plan Year in which services leading to the Bonus to be deferred
will be performed.

 

    	 

    	Bank of the Cascades
Deferred Bonus Agreement
 

    

 

		2.2	Initial Election. After being notified by the Plan Administrator of becoming eligible to
participate in this Agreement, the Employee may make an initial deferral election by delivering to the Plan Administrator a signed
Deferral Election Form and Beneficiary Designation Form within thirty (30) days of becoming eligible. The Deferral Election Form
shall set forth the amount of Bonus to be deferred. However, if the Employee was eligible to participate in any other account balance
plans sponsored by the Bank (as referenced in Code Section 409A) prior to becoming eligible to participate in this Agreement, the
initial election to defer Bonus under this Agreement shall not be effective until the Plan Year following the Plan Year in which
the Employee became eligible to participate in this Agreement.

 

		2.3	Election Changes. The Employee may modify the amount of Bonus to be deferred annually by
filing a new Deferral Election Form with the Bank. The modified deferral shall not be effective until the calendar year following
the year in which the subsequent Deferral Election Form is received by the Bank.

 

		2.4	Hardship. If an Unforeseeable Emergency occurs, the Employee, by written instructions to
the Company, may discontinue deferrals hereunder. Any subsequent Deferral Elections may be made only in accordance with Section
2.1 hereof.

 

Article 3

Deferral Account

 

		3.1	Establishing and Crediting. The Bank shall establish a Deferral Account on its books for
the Employee and shall credit to the Deferral Account the following amounts:

		(a)	Any Deferrals hereunder;

		(b)	Interest, which, on the first day of each month, shall be credited at an annual rate equal to
the Crediting Rate, compounded monthly.

 

		3.2	Accounting Device Only. The Deferral Account is solely a device for measuring amounts to
be paid under this Agreement and is not a trust fund of any kind.

 

Article 4

Distributions During Lifetime

 

		4.1	Normal Retirement Benefit. Upon Separation from Service after attaining Normal Retirement
Age, the Bank shall distribute to the Employee the benefit described in this Section 4.1 in lieu of any other benefit under this
Article.

 

		4.1.1	Amount of Benefit. The benefit under this Section 4.1 is the Deferral Account balance at
Separation from Service.

 

    	 

    	Bank of the Cascades
Deferred Bonus Agreement
 

    

 

		4.1.2	Distribution of Benefit. The Bank shall distribute benefit to the Employee as elected on
the Distribution Election Form commencing within thirty (30) days following Separation from Service.

 

		4.2	Early Retirement Benefit. Upon Separation from Service after Early Retirement Age and before
Normal Retirement Age, the Bank shall distribute the benefit described in this Section 4.2 in lieu of any other benefit under this
Article.

 

		4.2.1	Amount of Benefit. The benefit under this Section 4.2 is the Deferral Account balance at
Separation from Service.

 

		4.2.2	Distribution of Benefit. The Bank shall distribute benefit to the Employee as elected on
the Distribution Election Form commencing within thirty (30) days following Separation from Service.

 

		4.3	Early Termination Benefit. Upon Early Termination, the Bank shall distribute to the Employee
the benefit described in this Section 4.3 in lieu of any other benefit under this Article.

 

		4.3.1	Amount of Benefit. The benefit under this Section 4.3 is the Deferral Account balance determined
as of the date of Separation from Service by recalculating the Deferral Account balance by reducing the Crediting Rate to the lesser
of: a) one-half of the Crediting Rate originally used or b) six percent (6%).

 

		4.3.2	Distribution of Benefit. The Bank shall distribute benefit to the Employee as elected
on the Distribution Election Form commencing within thirty (30) days following Separation from Service.

 

		4.4	Disability Benefit. Upon Disability prior to Early Retirement Age, the Bank shall distribute
the benefit described in this Section 4.4 in lieu of any other benefit under this Article.

 

		4.4.1	Amount of Benefit. The benefit under this Section 4.4 is the Deferral Account balance determined
as of the date of such Disability.

 

		4.4.2	Distribution of Benefit. The Bank shall distribute benefit to the Employee as elected on
the Distribution Election Form commencing within thirty (30) days following Disability.

 

		4.5	Change in Control Benefit. . If a Change in Control occurs followed within twelve (12) months
by Separation from Service prior to Early Retirement Age, the Bank shall distribute the benefit described in this Section 4.5 in
lieu of any other benefit under this Article.

 

 

		4.5.1	Amount of Benefit. The benefit under this Section 4.5 is the Deferral Account balance determined
as of the date of Separation from Service.

 

    	 

    	Bank of the Cascades
Deferred Bonus Agreement
 

    

 

		4.5.2	Distribution of Benefit. The Bank shall distribute the benefit to the Employee in a lump
sum within thirty (30) days following Separation from Service.

 

		4.6	Hardship Distribution. If an Unforeseeable Emergency occurs, the Employee may petition the
Board to receive a distribution from the Agreement (a “Hardship Distribution”). The Board in its sole discretion may
grant such petition. If granted, the Employee shall receive, within sixty (60) days, a distribution from the Agreement only to
the extent deemed necessary by the Board to remedy the Unforeseeable Emergency, plus an amount necessary to pay taxes reasonably
anticipated as a result of the distribution. In any event, the maximum amount which may be paid out pursuant to this Section 4.6
is the Deferral Account balance as of the day that the Employee petitioned the Board to receive a Hardship Distribution. Such a
distribution shall reduce the Deferral Account balance.

 

		4.7	Restriction on Commencement of Distributions.  Notwithstanding any provision of this
Agreement to the contrary, if the Employee is considered a Specified Employee, the provisions of this Section 4.7 shall govern
all distributions hereunder. If benefit distributions which would otherwise be made to the Employee due to Separation from Service
are limited because the Employee is a Specified Employee, then such distributions shall not be made during the first six (6) months
following Separation from Service. 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 Separation from Service.
All subsequent distributions shall be paid in the manner specified.

 

		4.8	Distributions Upon Taxation of Amounts Deferred. 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 Bank may make a limited distribution to the Employee in a manner that conforms to the requirements of Code
Section 409A. Any such distribution will decrease the Deferral Account balance.

 

		4.9	Change in Form or Timing of Distributions.  For distribution of benefits under this
Article 4, the Employee and the Bank may, subject to the terms of Section 10.1, amend this Agreement to delay the timing or change
the form of distributions.  Any such amendment:

 

		(a)	may not accelerate the time or schedule of any distribution, except as provided in Code Section
409A;

		(b)	must, for benefits distributable under Sections 4.1, 4.2, 4.3 and 4.5, delay the commencement of
distributions for a minimum of five (5) years from the date the first distribution was originally scheduled to be made; and

		(c)	must take effect not less than twelve (12) months after the amendment is made.

 

    	 

    	Bank of the Cascades
Deferred Bonus Agreement
 

    

 

		4.10	Limited Cashout. Notwithstanding any provision of this Agreement to the contrary, if at
the time benefits become distributable to the Employee hereunder, the Deferral Account balance is not greater than the applicable
dollar amount under Code Section 402(g)(1)(B), the Bank shall pay the entire Deferral Account balance to the Employee in a lump
sum within thirty (30) days following the event which caused benefits to become payable hereunder, provided that such payment must
result in the termination and liquidation of the entirety of the Employee’s interest under the Agreement and under any other
arrangements which are treated as if they were a single plan under Treasury Regulations Section 1.409a-1(c)(2).

 

Article 5

Distributions at Death

 

		5.1	Death During Active Service. If the Employee dies prior to Separation from Service and Disability,
the Bank shall distribute to the Beneficiary the benefit described in this Section 5.1. This benefit shall be distributed in lieu
of the benefit under Article 4.

 

		5.1.1	Amount of Benefit. The benefit under this Section 5.1 is the Deferral Account balance determined
as of the date of the Employee’s death. However, if the Employee dies prior to Normal Retirement Age, the benefit shall be
the Projected Balance.

 

		5.1.2	Distribution of Benefit. The Bank shall distribute the benefit to the Beneficiary in one
hundred twenty (120) equal monthly installments commencing on the first day of the fourth month following the Employee’s
death.

 

		5.2	Death During Distribution of a Benefit. If the Employee dies after any benefit distributions
have commenced under this Agreement but before receiving all such distributions, the Bank shall distribute to the Beneficiary the
remaining benefits at the same time and in the same amounts they would have been distributed to the Employee had the Employee survived.

 

		5.3	Death After Separation from Service But Before Benefit Distributions Commence. If the Employee
is entitled to benefit distributions under this Agreement but dies prior to the date that commencement of said benefit distributions
are scheduled to be made under this Agreement, the Bank shall distribute to the Beneficiary the same benefits to which the Employee
was entitled prior to death, except that the benefit distributions shall be paid in the manner specified in Section 5.1.2 and shall
commence on the first day of the fourth month following the Employee’s death.

 

    	 

    	Bank of the Cascades
Deferred Bonus Agreement
 

    

 

Article 6

Beneficiaries

 

		6.1	In General. The Employee shall have the right, at any time, to designate a Beneficiary to
receive any benefit distributions under this Agreement upon the death of the Employee. The Beneficiary designated under this Agreement
may be the same as or different from the beneficiary designated under any other plan of the Bank in which the Employee participates.

 

		6.2	Designation. The Employee shall designate a Beneficiary by completing and signing the Beneficiary
Designation Form and delivering it to the Plan Administrator or its designated agent. If the Employee names someone other than
the Employee’s spouse as a Beneficiary, the Plan Administrator may, in its sole discretion, determine that spousal consent
is required to be provided in a form designated by the Plan Administrator, executed by the Employee’s spouse and returned
to the Plan Administrator. The Employee's beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases
the Employee or if the Employee names a spouse as Beneficiary and the marriage is subsequently dissolved. The Employee shall have
the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation
Form and the Plan Administrator’s rules and procedures. Upon the acceptance by the Plan Administrator of a new Beneficiary
Designation Form, all Beneficiary designations previously filed shall be cancelled. The Plan Administrator shall be entitled to
rely on the last Beneficiary Designation Form filed by the Employee and accepted by the Plan Administrator prior to the Employee’s
death.

 

		6.3	Acknowledgment. No designation or change in designation of a Beneficiary shall be effective
until received, accepted and acknowledged in writing by the Plan Administrator or its designated agent.

 

		6.4	No Beneficiary Designation. If the Employee dies without a valid Beneficiary designation,
or if all designated Beneficiaries predecease the Employee, then the Employee’s spouse shall be the designated Beneficiary.
If the Employee has no surviving spouse, any benefit shall be paid to the personal representative of the Employee's estate.

 

		6.5	Facility of Distribution. If the Plan Administrator determines in its discretion that a
benefit is to be distributed to a minor, to a person declared incompetent or to a person incapable of handling the disposition
of that person’s property, the Plan Administrator may direct distribution of such benefit to the guardian, legal representative
or person having the care or custody of such individual. The Plan Administrator may require proof of incompetence, minority or
guardianship as it may deem appropriate prior to distribution of the benefit. Any distribution of a benefit shall be a distribution
for the account of the Employee and the Beneficiary, as the case may be, and shall completely discharge any liability under this
Agreement for such distribution amount.

 

    	 

    	Bank of the Cascades
Deferred Bonus Agreement
 

    

 

Article 7

General Limitations

 

		7.1	Termination for Cause. Notwithstanding any provision of this Agreement to the contrary,
the Bank shall not distribute any benefit under this Agreement in excess of the Deferrals if the Employee’s employment with
the Bank is terminated by the Bank or an applicable regulator due to a Termination for Cause.

 

		7.2	Misstatement. No benefit in excess of the Deferrals shall be distributed if an insurance
company which issued a life insurance policy covering the Employee and owned by the Bank denies coverage (i) for material misstatements
of fact made by the Employee on an application for such life insurance, or (ii) for any other reason.

 

		7.3	Removal. Notwithstanding any provision of this Agreement to the contrary, the Bank
shall not distribute any benefit under this Agreement if the Employee is subject to a final removal or prohibition order issued
by an appropriate federal banking agency pursuant to Section 8(e) of the Federal Deposit Insurance Act.

 

		7.4	Golden Parachute Indemnification Payments. Notwithstanding anything herein to the contrary,
any payments made to the Employee pursuant to this Agreement, or otherwise, shall be conditioned upon compliance with 12 U.S.C.
1828 and FDIC Regulation 12 CFR Part 359, Golden Parachute Indemnification Payments and any other regulations or guidance promulgated
thereunder.

 

		7.5	Forfeiture Provision. Prior to Separation from Service and during the eighteen (18) month
period thereafter, if the Employee directly or indirectly advises, invests in, owns, manages, operates, controls, is employed by,
provides services to, lends money to, guarantees any obligation of, lends Employee’s name to, or otherwise assists any person
engaged in or planning to be engaged in any business whose products, services, or activities compete or will compete in whole or
in part with the Bank’s products, services, or activities in Oregon or Idaho, the Employee shall forfeit any accrued interest
and shall be obligated to repay any interest already paid. Notwithstanding the forgoing, the Employee may own up to 1% of any class
of securities of any issuer if the securities are listed on a national or regional securities exchange or have been registered
under Section 12(g) of the Exchange Act without losing the right to any payments hereunder.

 

Article 8

Administration of Agreement

 

		8.1	Plan Administrator Duties. The Plan Administrator shall administer this Agreement according
to its express terms and shall also have the discretion and authority to (i) make, amend, interpret and enforce rules and regulations
for the administration of this Agreement and (ii) decide or resolve any and all questions, including interpretations of this Agreement,
as may arise in connection with this Agreement to the extent the exercise of such discretion and authority does not conflict with
Code Section 409A.

 

    	 

    	Bank of the Cascades
Deferred Bonus Agreement
 

    

 

 

		8.2	Agents. In the administration of this Agreement, the Plan Administrator may employ agents
and delegate to them such administrative duties as the Plan Administrator sees fit, including acting through a duly appointed representative,
and may from time to time consult with counsel who may be counsel to the Bank.

 

		8.3	Binding Effect of Decisions. Any decision or action of the Plan Administrator with respect
to any question arising out of or in connection with the administration, interpretation or application of this Agreement and the
rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in this
Agreement.

 

		8.4	Indemnity of Plan Administrator. The Bank shall indemnify and hold harmless the Plan Administrator
against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to
this Agreement, except in the case of willful misconduct by the Plan Administrator.

 

		8.5	Bank Information. The Bank shall supply full and timely
information to the Plan Administrator on all matters relating to the date and circumstances of the Employee’s death, Disability
or Separation from Service, and such other pertinent information as the Plan Administrator may reasonably require.

 

		8.6	Statement of Accounts. The Plan Administrator shall provide to the Employee, within one
hundred twenty (120) days after the end of each Plan Year, a statement setting forth the benefits to be distributed under this
Agreement.

 

Article 9

Claims and Review Procedures

 

		9.1	Claims Procedure. An Employee or Beneficiary (“claimant”) who has not received
benefits under this Agreement that he or she believes should be distributed shall make a claim for such benefits as follows:

 

		9.1.1	Initiation – Written Claim. The claimant initiates a claim by submitting to the Plan
Administrator a written claim for the benefits. If such a claim relates to the contents of a notice received by the claimant, the
claim must be made within sixty (60) days after such notice was received by the claimant. All other claims must be made within
one hundred eighty (180) days of the date on which the event that caused the claim to arise occurred. The claim must state
with particularity the determination desired by the claimant.

 

 

		9.1.2	Timing of Plan Administrator Response. The Plan Administrator shall respond to such
claimant within ninety (90) days after receiving the claim. If the Plan Administrator determines that special circumstances require
additional time for processing the claim, the Plan Administrator can extend the response period by an additional ninety (90) days
by notifying the claimant in writing, prior to the end of the initial ninety (90) day period, that an additional period is required.
The notice of extension must set forth the special circumstances and the date by which the Plan Administrator expects to render
its decision.

 

    	 

    	Bank of the Cascades
Deferred Bonus Agreement
 

    

  

		9.1.3	Notice of Decision. If the Plan Administrator denies part or all of the claim, the Plan
Administrator shall notify the claimant in writing of such denial. The Plan Administrator shall write the notification in a manner
calculated to be understood by the claimant. The notification shall set forth:

 

		(a)	The specific reasons for the denial;

		(b)	A reference to the specific provisions of this Agreement on which the denial is based;

		(c)	A description of any additional information or material necessary for the claimant to perfect the
claim and an explanation of why it is needed;

		(d)	An explanation of this Agreement’s review procedures and the time limits applicable to such
procedures; and

		(e)	A statement of the claimant’s right to bring a civil action under ERISA Section 502(a) following
an adverse benefit determination on review.

 

		9.2	Review Procedure. If the Plan Administrator denies part or all of the claim, the claimant
shall have the opportunity for a full and fair review by the Plan Administrator of the denial as follows:

 

		9.2.1	Initiation – Written Request. To initiate the review, the claimant, within sixty (60)
days after receiving the Plan Administrator’s notice of denial, must file with the Plan Administrator a written request for
review.

 

		9.2.2	Additional Submissions – Information Access. The claimant shall then have the opportunity
to submit written comments, documents, records and other information relating to the claim. The Plan Administrator shall also provide
the claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information
relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits.

 

		9.2.3	Considerations on Review. In considering the review, the Plan Administrator shall take into
account all materials and information the claimant submits relating to the claim, without regard to whether such information was
submitted or considered in the initial benefit determination.

 

		9.2.4	Timing of Plan Administrator Response. The Plan Administrator shall respond in writing to
such claimant within sixty (60) days after receiving the request for review. If the Plan Administrator determines that special
circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional
sixty (60) days by notifying the claimant in writing, prior to the end of the initial sixty (60) day period, that an additional
period is required. The notice of extension must set forth the special circumstances and the date by which the Plan Administrator
expects to render its decision.

 

    	 

    	Bank of the Cascades
Deferred Bonus Agreement
 

    

 

		9.2.5	Notice of Decision. The Plan Administrator shall notify the claimant in writing of its decision
on review. The Plan Administrator shall write the notification in a manner calculated to be understood by the claimant. A notification
of denial shall set forth:

 

		(a)	The specific reasons for the denial;

		(b)	A reference to the specific provisions of this Agreement on which the denial is based;

		(c)	A statement that the claimant is entitled to receive, upon request and free of charge, reasonable
access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to
the claimant’s claim for benefits; and

		(d)	A statement of the claimant’s right to bring a civil action under ERISA Section 502(a).

 

Article 10

Amendments and Termination

 

		10.1	Amendments. This Agreement may be amended only by a written agreement signed by the Bank
and the Employee. However, the Bank may unilaterally amend this Agreement to conform with written directives to the Bank from its
auditors or banking regulators or to comply with legislative changes or tax law.

 

		10.2	Plan Termination Generally. This Agreement may be terminated only by a written agreement
signed by the Bank and the Employee. Except as provided in Section 10.3, the termination of this Agreement shall not cause a distribution
of benefits under this Agreement. Rather, upon such termination benefit distributions will be made at the earliest distribution
event permitted under Article 4 or Article 5.

 

		10.3	Plan Terminations Under Section 409A. Notwithstanding anything to the contrary in Section
10.2, if the Bank terminates this Agreement in the following circumstances:

 

		(a)	Within thirty (30) days before or twelve (12) months after a Change in Control, provided that all
distributions are made no later than twelve (12) months following such termination of this Agreement and further provided that
all the Bank's arrangements which are substantially similar to this Agreement are terminated so the Employee
and all participants in the similar arrangements are required to receive all amounts of compensation deferred under the terminated
arrangements within twelve (12) months of such termination;

 

    	 

    	Bank of the Cascades
Deferred Bonus Agreement
 

    

 

		(b)	Upon the Bank’s dissolution or with the approval of a bankruptcy court provided that the
amounts deferred under this Agreement are included in the Employee's gross income in the latest of (i) the calendar year in which
this Agreement terminates; (ii) the calendar year in which the amount is no longer subject to a substantial risk of forfeiture;
or (iii) the first calendar year in which the distribution is administratively practical; or

		(c)	Upon the Bank’s termination of this and all other arrangements that would be aggregated with
this Agreement pursuant to Treasury Regulations Section 1.409A-1(c) if the Employee participated in such arrangements (“Similar
Arrangements”), provided that (i) the termination and liquidation does not occur proximate to a downturn in the financial
health of the Bank, (ii) all termination distributions are made no earlier than twelve (12) months and no later than twenty-four
(24) months following such termination, and (iii) the Bank does not adopt any new arrangement that would be a Similar Arrangement
for a minimum of three (3) years following the date the Bank takes all necessary action to irrevocably terminate and liquidate
the Agreement;

 

the Bank may distribute the Deferral
Account balance, determined as of the date of the termination of this Agreement, to the Employee in a lump sum subject to the above
terms.

 

Article 11

Miscellaneous

 

		11.1	Binding Effect. This Agreement shall bind the Employee and the Bank and their beneficiaries,
survivors, executors, administrators and transferees.

 

		11.2	No Guarantee of Employment. This Agreement is not a contract for employment. It does not
give the Employee the right to remain as an employee of the Bank nor interfere with the Bank's right to discharge the Employee.
It does not require the Employee to remain an employee nor interfere with the Employee's right to terminate employment at any time.

 

		11.3	Non-Transferability. Benefits under this Agreement cannot be sold, transferred, assigned,
pledged, attached or encumbered in any manner.

 

		11.4	Tax Withholding and Reporting. The Bank shall withhold any taxes that are required to be
withheld from the benefits provided under this Agreement. The Employee acknowledges that the Bank’s sole liability regarding
taxes is to forward any amounts withheld to the appropriate taxing authorities. The Bank shall satisfy all applicable reporting
requirements.

 

		11.5	Applicable Law. This Agreement and all rights hereunder shall be governed by the laws of
the State of Oregon, except to the extent preempted by the laws of the United States of America.

 

    	 

    	Bank of the Cascades
Deferred Bonus Agreement
 

    

 

		11.6	Unfunded Arrangement. The Employee and the Beneficiary are general unsecured creditors of
the Bank for the distribution of benefits under this Agreement. The benefits represent the mere promise by the Bank to distribute
such benefits. The rights to benefits are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, attachment or garnishment by creditors. Any insurance on the Employee's life or other informal funding asset is a
general asset of the Bank to which the Employee and Beneficiary have no preferred or secured claim.

 

		11.7	Reorganization. The Bank shall not merge or consolidate into or with another bank, or reorganize,
or sell substantially all of its assets to another bank, firm or person unless such succeeding or continuing bank, firm or person
agrees to assume and discharge the obligations of the Bank under this Agreement. Upon the occurrence of such an event, the term
“Bank” as used in this Agreement shall be deemed to refer to the successor or survivor entity.

 

		11.8	Entire Agreement. This Agreement constitutes the entire agreement between the Bank
and the Employee as to the subject matter hereof. No rights are granted to the Employee by virtue of this Agreement other than
those specifically set forth herein.

 

		11.9	Interpretation. Wherever the fulfillment of the intent and purpose of this Agreement requires
and the context will permit, the use of the masculine gender includes the feminine and use of the singular includes the plural

 

		11.10	Alternative Action. In the event it shall become impossible for the Bank or the Plan Administrator
to perform any act required by this Agreement due to regulatory or other constraints, the Bank or Plan Administrator may perform
such alternative act as most nearly carries out the intent and purpose of this Agreement and is in the best interests of the Bank,
provided that such alternative act does not violate Code Section 409A.

 

		11.11	Headings. Article and section headings are for convenient reference only and shall not control
or affect the meaning or construction of any provision herein.

 

		11.12	Validity. If any provision of this Agreement shall be illegal or invalid for any reason,
said illegality or invalidity shall not affect the remaining parts hereof, but this Agreement shall be construed and enforced as
if such illegal or invalid provision had never been included herein.

 

		11.13	Notice. Any notice or filing required or permitted to be given to the Bank or Plan Administrator
under this Agreement shall be sufficient if in writing and hand-delivered or sent by registered or certified mail to the address
below:

 

	1125 NW Bond Street
	Bend, OR  97701
	 

  

    	 

    	Bank of the Cascades
Deferred Bonus Agreement
 

    

 

Such notice shall be deemed given
as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration
or certification.

 

Any notice or filing required
or permitted to be given to the Employee under this Agreement shall be sufficient if in writing and hand-delivered or sent by mail
to the last known address of the Employee.

 

		11.14	Deduction Limitation on Benefit Payments. If the Bank reasonably anticipates that the Bank’s
deduction with respect to any distribution under this Agreement would be limited or eliminated by application of Code Section 162(m),
then to the extent deemed necessary by the Bank to ensure that the entire amount of any distribution from this Agreement is deductible,
the Bank may delay payment of any amount that would otherwise be distributed under this Agreement. The delayed amounts shall be
distributed to the Employee (or the Beneficiary in the event of the Employee's death) at the earliest date the Bank reasonably
anticipates that the deduction of the payment of the amount will not be limited or eliminated by application of Code Section 162(m).

 

IN WITNESS WHEREOF,
the Employee and a duly authorized representative of the Bank have signed this Agreement.

 

	EMPLOYEE	 	BANK
	 	 	 	 
	/s/ Sandra Gianotti	 	By: 	/s/ Peggy L. Biss
	SANDRA GIANOTTI	 	 	 
	 	 	 	 
	 	 	Title:	Executive Vice President

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