Document:

Unassociated Document

    Exhibit
4.7

    

    3DICON
CORPORATION

    2011
EQUITY INCENTIVE PLAN

    
      
        	 
      

      

    

     

    This 3DIcon
Corporation 2011 Equity
Incentive Plan] (the "Plan") is designed to retain
directors, executives and selected employees and consultants and reward them for
making contributions to the success of the Company.  These objectives
are accomplished by making long-term incentive awards under the Plan thereby
providing Participants with a proprietary interest in the growth and performance
of the Company.

    

    
      	
              1.

            	
              Definitions.

            

    

    

    
      	
            	
              (a)

            	
              "Board" - The Board of
      Directors of the Company.

            

    

    

    
      	
            	
              (b)

            	
              "Change in Control" -
      Means, and shall be deemed to have occurred upon the occurrence of, any
      one of the following events:

            

    

    

    
      	
               
      

            	
              (i)

            	
              The
      acquisition in one transaction by any individual, entity or group (within
      the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a "Person") of beneficial
      ownership (within the meaning of Rule l3d-3 promulgated under the Exchange
      Act) of shares or other securities (as defined in Section 3(a)(10) of the
      Exchange Act) representing 51% or more of outstanding Stock of the
      Company; provided, however, that a Change
      in Control as defined in this clause (1) shall not be deemed to occur in
      connection with any acquisition by the Company, an employee benefit plan
      of the Company or any Person who immediately prior to the effective date
      of this Plan is a holder of Stock (a "Current Stockholder") so
      long as such acquisition does not result in any Person other than the
      Company, such employee benefit plan or such Current Stockholder
      beneficially owning shares or securities representing 51% or more of the
      outstanding; or

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Any
      election has occurred of persons as directors of the Company that causes
      two-thirds or more of the Board to consist of persons other than (i)
      persons who were members of the Board on the effective date of this Plan
      and (ii) persons who were nominated by the Board for election as members
      of the Board at a time when at least two-thirds of the Board consisted of
      persons who were members of the Board on the effective date of this Plan;
      provided, however, that any
      person nominated for election by the Board when at least two-thirds of the
      members of the Board are persons described in subclause (i) or (ii) and
      persons who were themselves previously nominated in accordance with this
      clause (2) shall, for this purpose, be deemed to have been nominated by a
      Board composed of persons described in subclause (ii);
  or

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (iii)

            	
              Approval
      by the stockholders of the Company of a reorganization, merger,
      consolidation or similar transaction (a "Reorganization
      Transaction"), in each case, unless, immediately following such
      Reorganization Transaction, more than 50% of, respectively, the
      outstanding shares of common stock (or similar equity security) of the
      corporation or other entity resulting from or surviving such
      Reorganization Transaction and the combined voting power of the securities
      of such corporation or other entity entitled to vote generally in the
      election of directors, is then beneficially owned, directly or indirectly,
      by the individuals and entities who were the respective beneficial owners
      of the outstanding Stock immediately prior to such Reorganization
      Transaction in substantially the same proportions as their ownership of
      the outstanding Stock immediately prior to such Reorganization
      Transaction; or

            

    

    

    
      	
               
      

            	
              (iv)

            	
              Approval
      by the stockholders of the Company of (i) a complete liquidation or
      dissolution of the Company or (ii) the sale or other disposition of all or
      substantially all of the assets of the Company to a corporation or other
      entity, unless, with respect to such corporation or other entity,
      immediately following such sale or other disposition more than 50% of,
      respectively, the outstanding shares of common stock (or similar equity
      security) of such corporation or other entity and the combined voting
      power of the securities of such corporation or other entity entitled to
      vote generally in the election of directors, is then beneficially owned,
      directly or indirectly, by the individuals and entities who were the
      respective beneficial owners of the outstanding Stock immediately prior to
      such sale or disposition in substantially the same proportions as their
      ownership of the outstanding Stock immediately prior to such sale or
      disposition.

            

    

    

    
      	
            	
              (c)

            	
              "Code" - The Internal
      Revenue Code of 1986, as amended from time to
  time.

            

    

    

    
      	
            	
              (d)

            	
              "Committee" - The
      Compensation Committee of the Company's Board, or such other committee of
      the Board that is designated by the Board to administer the Plan, composed
      of not less than two members of the Board who are disinterested persons,
      as contemplated by Rule 16b-3 ("Rule 16b-3") promulgated
      under the Securities Exchange Act of 1934, as amended (the "Exchange
      Act").

            

    

    

    
      	
            	
              (e)

            	
              "Company" –3DIcon
      Corporation and its subsidiaries including subsidiaries of
      subsidiaries.

            

    

    

    
      	
            	
              (f)

            	
              "Exchange Act" - The Securities
      Exchange Act of 1934, as amended from time to
  time.

            

    

    

    
      	
            	
              (g)

            	
              "Fair Market Value" - The
      fair market value of the Company's issued and outstanding Stock as
      determined in good faith by the Board or
  Committee.

            

    

    

    
      	
            	
              (h)

            	
              "Grant" - The grant of
      any form of stock option, stock award, or stock purchase offer, whether
      granted singly, in combination, or in tandem, to a Participant pursuant to
      such terms, conditions and limitations as the Committee may establish in
      order to fulfill the objectives of the
Plan.

            

    

    

    
      	
            	
              (i)

            	
              "Grant Agreement" - An
      agreement between the Company and a Participant that sets forth the terms,
      conditions and limitations applicable to a
  Grant.

            

    

     

    
      
        
        

      

      
        - 2
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              (j)

            	
              "Option" - Either an
      Incentive Stock Option, in accordance with Section 422 of Code, or a
      Nonstatutory Option, to purchase the Company's Stock that may be awarded
      to a Participant under the Plan. A Participant who receives an award of an
      Option shall be referred to as an "Optionee."

            

    

    

    
      	
            	
              (k)

            	
              "Participant" - A
      director, officer, employee or consultant of the Company to whom an Award
      has been made under the Plan.

            

    

    

    
      	
            	
              (l)

            	
              "Restricted Stock Purchase
      Offer" - A Grant of the right to purchase a specified number of
      shares of Stock pursuant to a written agreement issued under the
      Plan.

            

    

    

    
      	
            	
              (m)

            	
              "Securities Act" - The
      Securities Act of 1933, as amended from time to
  time.

            

    

    

    
      	
            	
              (n)

            	
              "Stock" - Authorized and
      issued or unissued shares of common stock of the
  Company.

            

    

    

    
      	
            	
              (o)

            	
              "Stock Award" - A Grant
      made under the Plan in stock or denominated in units of stock for which
      the Participant is not obligated to pay additional
      consideration.

            

    

    

    
      	
              2.

            	
              Administration.
      The Plan shall be administered by the Board, provided, however, that the Board
      may delegate such administration to the Committee. Subject to the
      provisions of the Plan, the Board and/or the Committee shall have
      authority to (a) grant, in its discretion, Incentive Stock Options in
      accordance with Section 422 of the Code, or Nonstatutory Options, Stock
      Awards or Restricted Stock Purchase Offers; (b) determine in good faith
      the fair market value of the Stock covered by any Grant; (c) determine
      which eligible persons shall receive Grants and the number of shares,
      restrictions, terms and conditions to be included in such Grants; (d)
      construe and interpret the Plan; (e) promulgate, amend and rescind rules
      and regulations relating to its administration, and correct defects,
      omissions and inconsistencies in the Plan or any Grant; (f) consistent
      with the Plan and with the consent of the Participant, as appropriate,
      amend any outstanding Grant or amend the exercise date or dates thereof;
      (g) determine the duration and purpose of leaves of absence which may be
      granted to Participants without constituting termination of their
      employment for the purpose of the Plan or any Grant; and (h) make all
      other determinations necessary or advisable for the Plan's administration.
      The interpretation and construction by the Board of any provisions of the
      Plan or selection of Participants shall be conclusive and final. No member
      of the Board or the Committee shall be liable for any action or
      determination made in good faith with respect to the Plan or any Grant
      made thereunder.

            

    

    

    
      	
              3.

            	
              Eligibility.

            

    

    

    
      	
            	
              (a)

            	
              General:  The
      persons who shall be eligible to receive Grants shall be directors,
      officers, employees or consultants to the Company. The term consultant
      shall mean any person, other than an employee, who is engaged by the
      Company to render services and is compensated for such services. An
      Optionee may hold more than one Option. Any issuance of a Grant to an
      officer or director of the Company subsequent to the first registration of
      any of the securities of the Company under the Exchange Act shall comply
      with the requirements of Rule
16b-3.

            

    

     

    
      
        
        

      

      
        - 3
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              (b)

            	
              Incentive Stock
      Options:  Incentive Stock Options may only be issued to
      employees of the Company. Incentive Stock Options may be granted to
      officers or directors, provided they are also employees of the Company.
      Payment of a director's fee shall not be sufficient to constitute
      employment by the Company.

            

    

    

               The
Company shall not grant an Incentive Stock Option under the Plan to any employee
if such Grant would result in such employee holding the right to exercise for
the first time in any one calendar year, under all Incentive Stock Options
granted under the Plan or any other plan maintained by the Company, with respect
to shares of Stock having an aggregate fair market value, determined as of the
date the Option is granted, in excess of $100,000. Should it be determined that
an Incentive Stock Option granted under the Plan exceeds such maximum for any
reason other than a failure in good faith to value the Stock subject to such
option, the excess portion of such option shall be considered a Nonstatutory
Option. To the extent the employee holds two (2) or more such Options which
become exercisable for the first time in the same calendar year, the foregoing
limitation on the exercisability of such Option as Incentive Stock Options under
the Federal tax laws shall be applied on the basis of the order in which such
Options are granted. If, for any reason, an entire Option does not qualify as an
Incentive Stock Option by reason of exceeding such maximum, such Option shall be
considered a Nonstatutory Option.

    

    
      	
            	
              (c)

            	
              Nonstatutory
      Option:  The provisions of the foregoing Section 3(b)
      shall not apply to any Option designated as a "Nonstatutory Option" or
      which sets forth the intention of the parties that the Option be a
      Nonstatutory Option.

            

    

    

    
      	
            	
              (d)

            	
              Stock Awards and
      Restricted Stock Purchase Offers:  The provisions of this
      Section 3 shall not apply to any Stock Award or Restricted Stock Purchase
      Offer under the Plan.

            

    

    

    
      	
              4.

            	
              Stock.

            

    

    

    
      	
            	
              (a)

            	
              Authorized
      Stock: Stock subject to Grants may be either unissued or reacquired
      Stock.

            

    

    

    
      	
            	
              (b)

            	
              Number of
      Shares:  Subject to adjustment as provided in Section
      5(i) of the Plan, the total number of shares of Stock which may be
      purchased or granted directly by Options, Stock Awards or Restricted Stock
      Purchase Offers, or purchased indirectly through exercise of Options
      granted under the Plan shall not exceed ONE HUNDRED MILLION
      (100,000,000).  If any Grant shall for any reason terminate or
      expire, any shares allocated thereto but remaining unpurchased upon such
      expiration or termination shall again be available for Grants with respect
      thereto under the Plan as though no Grant had previously occurred with
      respect to such shares. Any shares of Stock issued pursuant to a Grant and
      repurchased pursuant to the terms thereof shall be available for future
      Grants as though not previously covered by a
  Grant.

            

    

     

    
      
        
        

      

      
        - 4
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              (c)

            	
              Reservation of
      Shares:  The Company shall reserve and keep available at
      all times during the term of the Plan such number of shares as shall be
      sufficient to satisfy the requirements of the Plan. If, after reasonable
      efforts, which efforts shall not include the registration of the Plan or
      Grants under the Securities Act, the Company is unable to obtain authority
      from any applicable regulatory body, which authorization is deemed
      necessary by legal counsel for the Company for the lawful issuance of
      shares hereunder, the Company shall be relieved of any liability with
      respect to its failure to issue and sell the shares for which such
      requisite authority was so deemed necessary unless and until such
      authority is obtained.

            

    

     

    
      	
            	
              (d)

            	
              Application of
      Funds: The proceeds received by the Company from the sale of Stock
      pursuant to the exercise of Options or rights under Stock Purchase
      Agreements will be used for general corporate
    purposes.

            

    

    
      
        
           

          
            	
                  	
                    (e)

                  	
                    No Obligation to
      Exercise:  The issuance of a Grant shall impose no
      obligation upon the Participant to exercise any rights under such
      Grant.

                  

          

        

      

    

    

    
      	
              5.

            	
              Terms
      and Conditions of Options.

            

    

    

    Options
granted hereunder shall be evidenced by agreements between the Company and the
respective Optionees, in such form and substance as the Board or Committee shall
from time to time approve. Option agreements need not be identical, and in each
case may include such provisions as the Board or Committee may determine, but
all such agreements shall be subject to and limited by the following terms and
conditions:

    

    
      	
            	
              (a)

            	
              Number of
      Shares: Each Option shall state the number of shares to which it
      pertains.

            

    

    

    
      	
            	
              (b)

            	
              Exercise Price:
      Each Incentive Stock Option shall state the exercise price, which shall be
      determined as follows:

            

    

    

    
      	
               
      

            	
              (i)

            	
              Any
      Incentive Stock Option granted to a person who at the time the Option is
      granted owns (or is deemed to own pursuant to Section 424(d) of the Code)
      stock possessing more than ten percent (10%) of the total combined voting
      power or value of all classes of stock of the Company ("Ten Percent Holder")
      shall have an exercise price of no less than 110% of the Fair Market Value
      of the Stock as of the date of grant;
and

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Incentive
      Stock Options granted to a person who at the time the Option is granted is
      not a Ten Percent Holder shall have an exercise price of no less than 100%
      of the Fair Market Value of the Stock as of the date of
    grant.

            

    

    

    For the
purposes of this Section 5(b), the Fair Market Value shall be as determined by
the Board in good faith, which determination shall be conclusive and binding;
provided however, that if there is a public market for such Stock, the Fair
Market Value per share shall be the average of the bid and asked prices (or the
closing price if such stock is listed on the NASDAQ National Market System or
Small Cap Issue Market) on the date of grant of the Option, or if listed on a
stock exchange, the closing price on such exchange on such date of
grant.

    
 

    
      
        
        

      

      
        - 5
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    The
exercise price of each Nonstatutory Stock Option shall be determined at the
discretion of the Board of Directors of the Corporation.

      

    
      	
            	
              (c)

            	
              Medium and Time of
      Payment:  The exercise price shall become immediately due
      upon exercise of the Option and shall be paid in cash or check made
      payable to the Company. Should the Company's outstanding Stock be
      registered under Section 12(g) of the Exchange Act at the time the Option
      is exercised, then the exercise price may also be paid as
      follows:

            

    

    

    
      	
               
      

            	
              (i)

            	
              in
      shares of Stock held by the Optionee for the requisite period necessary to
      avoid a charge to the Company's earnings for financial reporting purposes
      and valued at Fair Market Value on the exercise date,
  or

            

    

    

    
      	
               
      

            	
              (ii)

            	
              through
      a special sale and remittance procedure pursuant to which the Optionee
      shall concurrently provide irrevocable written instructions (a) to a
      Company designated brokerage firm to effect the immediate sale of the
      purchased shares and remit to the Company, out of the sale proceeds
      available on the settlement date, sufficient funds to cover the aggregate
      exercise price payable for the purchased shares plus all applicable
      Federal, state and local income and employment taxes required to be
      withheld by the Company by reason of such purchase and (b) to the Company
      to deliver the certificates for the purchased shares directly to such
      brokerage firm in order to complete the sale
  transaction.

            

    

    

    At the discretion of the Board,
exercisable either at the time of Option grant or of Option exercise, the
exercise price may also be paid (i) by Optionee's delivery of a promissory note
in form and substance satisfactory to the Company and permissible under
applicable securities rules and bearing interest at a rate determined by the
Board in its sole discretion, but in no event less than the minimum rate of
interest required to avoid the imputation of compensation income to the Optionee
under the Federal tax laws, or (ii) in such other form of consideration
permitted by the Delaware General Corporation Law as may be acceptable to the
Board.

    

    
      	
            	
              (d)

            	
              Term and Exercise of
      Options:  Any Option granted to an employee of the
      Company shall become exercisable over a period of no longer than five (5)
      years. In no event shall any Option be exercisable after the expiration of
      ten (10) years from the date it is granted, and no Incentive Stock Option
      granted to a Ten Percent Holder shall, by its terms, be exercisable after
      the expiration of five (5) years from the date of the Option. Unless
      otherwise specified by the Board or the Committee in the resolution
      authorizing such Option, the date of grant of an Option shall be deemed to
      be the date upon which the Board or the Committee authorizes the granting
      of such Option.

            

    

    

    Each
Option shall be exercisable to the nearest whole share, in installments or
otherwise, as the respective Option agreements may provide. During the lifetime
of an Optionee, the Option shall be exercisable only by the Optionee and shall
not be assignable or transferable by the Optionee, and no other person shall
acquire any rights therein. To the extent not exercised, installments (if more
than one) shall accumulate, but shall be exercisable, in whole or in part, only
during the period for exercise as stated in the Option agreement, whether or not
other installments are then exercisable.

     

    
      
        
        

      

      
        - 6
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              (e)

            	
              Termination of Status
      as Employee, Consultant or Director:  If Optionee's
      status as an employee shall terminate for any reason other than Optionee's
      disability or death, then Optionee (or if the Optionee shall die after
      such termination, but prior to exercise, Optionee's personal
      representative or the person entitled to succeed to the Option) shall have
      the right to exercise the portions of any of Optionee's Incentive Stock
      Options which were exercisable as of the date of such termination, in
      whole or in part, within 90 days after such termination (or, in the event
      of "termination
      for good cause" as that term is defined in Delaware case law
      related thereto, or by the terms of the Plan or the Option Agreement or an
      employment agreement, the Option shall automatically terminate as of the
      termination of employment as to all shares covered by the
      Option).

            

    

    

    With respect to Nonstatutory Options
granted to employees, directors or consultants, the Board may specify such
period for exercise, not less than 90 days (except that in the case of "termination for
cause" or removal of a director), the Option shall automatically
terminate as of the termination of employment or services as to shares covered
by the Option, following termination of employment or services as the Board
deems reasonable and appropriate. The Option may be exercised only with respect
to installments that the Optionee could have exercised at the date of
termination of employment or services. Nothing contained herein or in any Option
granted pursuant hereto shall be construed to affect or restrict in any way the
right of the Company to terminate the employment or services of an Optionee with
or without cause.

    

    
      	
            	
              (f)

            	
              Disability of
      Optionee:  If an Optionee is disabled (within the meaning
      of Section 22(e)(3) of the Code) at the time of termination, the ninety
      (90) day period set forth in Section 5(e) shall be a period, as determined
      by the Board and set forth in the Option, of not less than six months nor
      more than one year after such
termination.

            

    

    

    
      	
            	
              (g)

            	
              Death of
      Optionee:  If an Optionee dies while employed by, engaged
      as a consultant to, or serving as a Director of the Company, the portion
      of such Optionee's Option which was exercisable at the date of death may
      be exercised, in whole or in part, by the estate of the decedent or by a
      person succeeding to the right to exercise such Option at any time within
      (i) a period, as determined by the Board and set forth in the Option, of
      not less than six (6) months nor more than one (1) year after Optionee's
      death, which period shall not be more, in the case of a Nonstatutory
      Option, than the period for exercise following termination of employment
      or services, or (ii) during the remaining term of the Option, whichever is
      the lesser. The Option may be so exercised only with respect to
      installments exercisable at the time of Optionee's death and not
      previously exercised by the
Optionee.

            

    

    

    
      	
            	
              (h)

            	
              Nontransferability of
      Option:  No Option shall be transferable by the Optionee,
      except by will or by the laws of descent and
  distribution.

            

    

     

    
      
        
        

      

      
        - 7
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              (i)

            	
              Recapitalization:  Subject
      to any required action of shareholders, the number of shares of Stock
      covered by each outstanding Option, and the exercise price per share
      thereof set forth in each such Option, shall be proportionately adjusted
      for any increase or decrease in the number of issued shares of Stock of
      the Company resulting from a stock split, stock dividend, combination,
      subdivision or reclassification of shares, or the payment of a stock
      dividend, or any other increase or decrease in the number of such shares
      affected without receipt of consideration by the Company; provided,
      however, the conversion of any convertible securities of the Company shall
      not be deemed to have been "effected
      without receipt of consideration" by the
  Company.

            

    

    

    In the
event of a proposed dissolution or liquidation of the Company, a merger or
consolidation in which the Company is not the surviving entity, or a sale of all
or substantially all of the assets or capital stock of the Company
(collectively, a "Reorganization"), unless
otherwise provided by the Board, this Option shall terminate immediately prior
to such date as is determined by the Board, which date shall be no later than
the consummation of such Reorganization.  In such event, if the entity
which shall be the surviving entity does not tender to Optionee an offer, for
which it has no obligation to do so, to substitute for any unexercised Option a
stock option or capital stock of such surviving entity, as applicable, which on
an equitable basis shall provide the Optionee with substantially the same
economic benefit as such unexercised Option, then the Board may grant to such
Optionee, in its sole and absolute discretion and without obligation, the right
for a period commencing thirty (30) days prior to and ending immediately prior
to the date determined by the Board pursuant hereto for termination of the
Option or during the remaining term of the Option, whichever is the lesser, to
exercise any unexpired Option or Options without regard to the installment
provisions of Paragraph 6(d) of the Plan; provided, that any such right granted
shall be granted to all Optionees not receiving an offer to receive substitute
options on a consistent basis, and provided further, that any such exercise
shall be subject to the consummation of such Reorganization.

    

    Subject to any required action of
shareholders, if the Company shall be the surviving entity in any merger or
consolidation, each outstanding Option thereafter shall pertain to and apply to
the securities to which a holder of shares of Stock equal to the shares subject
to the Option would have been entitled by reason of such merger or
consolidation.

    

    In the event of a change in the Stock
of the Company as presently constituted, which is limited to a change of all of
its authorized shares without par value into the same number of shares with a
par value, the shares resulting from any such change shall be deemed to be the
Stock within the meaning of the Plan.

    

    To the extent that the foregoing
adjustments relate to stock or securities of the Company, such adjustments shall
be made by the Board, whose determination in that respect shall be final,
binding and conclusive. Except as expressly provided in this Section 5(i), the
Optionee shall have no rights by reason of any subdivision or consolidation of
shares of stock of any class or the payment of any stock dividend or any other
increase or decrease in the number of shares of stock of any class, and the
number or price of shares of Stock subject to any Option shall not be affected
by, and no adjustment shall be made by reason of, any dissolution, liquidation,
merger, consolidation or sale of assets or capital stock, or any issue by the
Company of shares of stock of any class or securities convertible into shares of
stock of any class.

    

    
      
        
        

      

      
        - 8
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    The Grant of an Option pursuant to the
Plan shall not affect in any way the right or power of the Company to make any
adjustments, reclassifications, reorganizations or changes in its capital or
business structure or to merge, consolidate, dissolve, or liquidate or to sell
or transfer all or any part of its business or assets.

    

    
      	
            	
              (j)

            	
              Rights as a
      Shareholder:  An Optionee shall have no rights as a
      shareholder with respect to any shares covered by an Option until the
      effective date of the issuance of the shares following exercise of such
      Option by Optionee. No adjustment shall be made for dividends (ordinary or
      extraordinary, whether in cash, securities or other property) or
      distributions or other rights for which the record date is prior to the
      date such stock certificate is issued, except as expressly provided in
      Section 5(i) hereof.

            

    

    

    
      	
            	
              (k)

            	
              Modification,
      Acceleration, Extension, and Renewal of Options:  Subject
      to the terms and conditions and within the limitations of the Plan, the
      Board may modify an Option, or, once an Option is exercisable, accelerate
      the rate at which it may be exercised, and may extend or renew outstanding
      Options granted under the Plan or accept the surrender of outstanding
      Options (to the extent not theretofore exercised) and authorize the
      granting of new Options in substitution for such Options, provided such
      action is permissible under Section 422 of the Code and applicable state
      securities laws. Notwithstanding the provisions of this Section 5(k),
      however, no modification of an Option shall, without the consent of the
      Optionee, alter to the Optionee's detriment or impair any rights or
      obligations under any Option theretofore granted under the
      Plan.

            

    

    

    
      	
            	
              (l)

            	
              Exercise Before
      Exercise Date:  At the discretion of the Board, the
      Option may, but need not, include a provision whereby the Optionee may
      elect to exercise all or any portion of the Option prior to the stated
      exercise date of the Option or any installment thereof. Any shares so
      purchased prior to the stated exercise date shall be subject to repurchase
      by the Company upon termination of Optionee's employment as contemplated
      by Section 5(n) hereof prior to the exercise date stated in the Option and
      such other restrictions and conditions as the Board or Committee may deem
      advisable.

            

    

      

    
      	
            	
              (m)

            	
              Other
      Provisions:  The Option agreements authorized under the
      Plan shall contain such other provisions, including, without limitation,
      restrictions upon the exercise of the Options, as the Board or the
      Committee shall deem advisable. Shares shall not be issued pursuant to the
      exercise of an Option, if the exercise of such Option or the issuance of
      shares thereunder would violate, in the opinion of legal counsel for the
      Company, the provisions of any applicable law or the rules or regulations
      of any applicable governmental or administrative agency or body, such as
      the Code, the Securities Act, the Exchange Act, applicable state
      securities laws, Delaware corporation law, and the rules promulgated under
      the foregoing or the rules and regulations of any exchange upon which the
      shares of the Company are listed. Without limiting the generality of the
      foregoing, the exercise of each Option shall be subject to the condition
      that if at any time the Company shall determine that (i) the satisfaction
      of withholding tax or other similar liabilities, or (ii) the listing,
      registration or qualification of any shares covered by such exercise upon
      any securities exchange or under any state or federal law, or (iii) the
      consent or approval of any regulatory body, or (iv) the perfection of any
      exemption from any such withholding, listing, registration, qualification,
      consent or approval is necessary or desirable in connection with such
      exercise or the issuance of shares thereunder, then in any such event,
      such exercise shall not be effective unless such withholding, listing
      registration, qualification, consent, approval or exemption shall have
      been effected, obtained or perfected free of any conditions not acceptable
      to the Company.

            

    

     

    
      
        
        

      

      
        - 9
-

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              (n)

            	
              Repurchase
      Agreement:  The Board may, in its discretion, require as
      a condition to the Grant of an Option hereunder, that an Optionee execute
      an agreement with the Company, in form and substance satisfactory to the
      Board in its discretion ("Repurchase Agreement"),
      (i) restricting the Optionee's right to transfer shares purchased under
      such Option without first offering such shares to the Company or another
      shareholder of the Company upon the same terms and conditions as provided
      therein; and (ii) providing that upon termination of Optionee's employment
      with the Company, for any reason, the Company (or another shareholder of
      the Company, as provided in the Repurchase Agreement) shall have the right
      at its discretion (or the discretion of such other shareholders) to
      purchase and/or redeem all such shares owned by the Optionee on the date
      of termination of his or her employment at a price equal to: (A) the fair
      value of such shares as of such date of termination; or (B) if such
      repurchase right lapses at 20% of the number of shares per year, the
      original purchase price of such shares, and upon terms of payment
      permissible under the applicable state securities laws; provided that in
      the case of Options or Stock Awards granted to officers, directors,
      consultants or affiliates of the Company, such repurchase provisions may
      be subject to additional or greater restrictions as determined by the
      Board or Committee.

            

    

    

    
      	
              6.

            	
              Stock
      Awards and Restricted Stock Purchase
Offers.

            

    

    

    
      	
            	
              (a)

            	
              Types of
      Grants.

            

    

    

    
      	
               
      

            	
              (i)

            	
              Stock
      Award.  All or part of any Stock Award under the Plan may
      be subject to conditions established by the Board or the Committee, and
      set forth in the Stock Award Agreement, which may include, but are not
      limited to, continuous service with the Company, achievement of specific
      business objectives, increases in specified indices, attaining growth
      rates and other comparable measurements of Company performance. Such
      Awards may be based on Fair Market Value or other specified
      valuation.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Restricted Stock
      Purchase Offer.  A Grant of a Restricted Stock Purchase
      Offer under the Plan shall be subject to such (i) vesting contingencies
      related to the Participant's continued association with the Company for a
      specified time and (ii) other specified conditions as the Board or
      Committee shall determine, in their sole discretion, consistent with the
      provisions of the Plan.

            

    

     

    
      
        
        

      

      
        - 10
-

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              (b)

            	
              Conditions and
      Restrictions.  Shares of Stock which Participants may
      receive as a Stock Award under a Stock Award Agreement or Restricted Stock
      Purchase Offer under a Restricted Stock Purchase Offer may include such
      restrictions as the Board or Committee, as applicable, shall determine,
      including restrictions on transfer, repurchase rights, right of first
      refusal, and forfeiture provisions. When transfer of Stock is so
      restricted or subject to forfeiture provisions it is referred to as "Restricted Stock".
      Further, with Board or Committee approval, Stock Awards or Restricted
      Stock Purchase Offers may be deferred, either in the form of installments
      or a future lump sum distribution. The Board or Committee may permit
      selected Participants to elect to defer distributions of Stock Awards or
      Restricted Stock Purchase Offers in accordance with procedures established
      by the Board or Committee to assure that such deferrals comply with
      applicable requirements of the Code including, at the choice of
      Participants, the capability to make further deferrals for distribution
      after retirement. Any deferred distribution, whether elected by the
      Participant or specified by the Stock Award Agreement, Restricted Stock
      Purchase Offers or by the Board or Committee, may require the payment be
      forfeited in accordance with the provisions of Section 6(c). Dividends or
      dividend equivalent rights may be extended to and made part of any Stock
      Award or Restricted Stock Purchase Offers denominated in Stock or units of
      Stock, subject to such terms, conditions and restrictions as the Board or
      Committee may establish.

            

    

    

    
      	
            	
              (c)

            	
              Cancellation and
      Rescission of Grants.  Unless the Stock Award Agreement
      or Restricted Stock Purchase Offer specifies otherwise, the Board or
      Committee, as applicable, may cancel any unexpired, unpaid, or deferred
      Grants at any time if the Participant is not in compliance with all other
      applicable provisions of the Stock Award Agreement or Restricted Stock
      Purchase Offer, the Plan and with the following
  conditions:

            

    

    

    
      	
               
      

            	
              (i)

            	
              A
      Participant shall not render services for any organization or engage
      directly or indirectly in any business which, in the judgment of the chief
      executive officer of the Company or other senior officer designated by the
      Board or Committee, is or becomes competitive with the Company, or which
      organization or business, or the rendering of services to such
      organization or business, is or becomes otherwise prejudicial to or in
      conflict with the interests of the Company. For Participants whose
      employment has terminated, the judgment of the chief executive officer
      shall be based on the Participant's position and responsibilities while
      employed by the Company, the Participant's post-employment
      responsibilities and position with the other organization or business, the
      extent of past, current and potential competition or conflict between the
      Company and the other organization or business, the effect on the
      Company's customers, suppliers and competitors and such other
      considerations as are deemed relevant given the applicable facts and
      circumstances.  A Participant who has retired shall be free,
      however, to purchase as an investment or otherwise, stock or other
      securities of such organization or business so long as they are listed
      upon a recognized securities exchange or traded over-the-counter, and such
      investment does not represent a substantial investment to the Participant
      or a greater than ten percent (10%) equity interest in the organization or
      business.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              A
      Participant shall not, without prior written authorization from the
      Company, disclose to anyone outside the Company, or use in other than the
      Company's business, any confidential information or material, as defined
      in the Company's Proprietary Information and Invention Agreement or
      similar agreement regarding confidential information and intellectual
      property, relating to the business of the Company, acquired by the
      Participant either during or after employment with the
      Company.

            

    

     

    
      
        
        

      

      
        - 11
-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (iii)

            	
              A
      Participant shall disclose promptly and assign to the Company all right,
      title and interest in any invention or idea, patentable or not, made or
      conceived by the Participant during employment by the Company, relating in
      any manner to the actual or anticipated business, research or development
      work of the Company and shall do anything reasonably necessary to enable
      the Company to secure a patent where appropriate in the United States and
      in foreign countries.

            

    

    

    
      	
               
      

            	
              (iv)

            	
              Upon
      exercise, payment or delivery pursuant to a Grant, the Participant shall
      certify on a form acceptable to the Committee that he or she is in
      compliance with the terms and conditions of the Plan. Failure to comply
      with all of the provisions of this Section 6(c) prior to, or during the
      six months after, any exercise, payment or delivery pursuant to a Grant
      shall cause such exercise, payment or delivery to be rescinded. The
      Company shall notify the Participant in writing of any such rescission
      within two years after such exercise, payment or delivery. Within ten days
      after receiving such a notice from the Company, the Participant shall pay
      to the Company the amount of any gain realized or payment received as a
      result of the rescinded exercise, payment or delivery pursuant to a Grant.
      Such payment shall be made either in cash or by returning to the Company
      the number of shares of Stock that the Participant received in connection
      with the rescinded exercise, payment or
  delivery.

            

    

    

    
      	
            	
              (d)

            	
              Nonassignability.

            

    

    

    
      	
               
      

            	
              (i)

            	
              Except
      pursuant to Section 6(e)(iii) and except as set forth in Section 6(d)(ii),
      no Grant or any other benefit under the Plan shall be assignable or
      transferable, or payable to or exercisable by, anyone other than the
      Participant to whom it was granted.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Where
      a Participant terminates employment and retains a Grant pursuant to
      Section 6(e)(ii) in order to assume a position with a governmental,
      charitable or educational institution, the Board or Committee, in its
      discretion and to the extent permitted by law, may authorize a third party
      (including but not limited to the trustee of a "blind" trust),
      acceptable to the applicable governmental or institutional authorities,
      the Participant and the Board or Committee, to act on behalf of the
      Participant with regard to such
Awards.

            

    

    

    
      	
            	
              (e)

            	
              Termination of
      Employment.  If the employment or service to the Company
      of a Participant terminates, other than pursuant to any of the following
      provisions under this Section 6(e), all unexercised, deferred and unpaid
      Stock Awards or Restricted Stock Purchase Offers shall be cancelled
      immediately, unless the Stock Award Agreement or Restricted Stock Purchase
      Offer provides otherwise:

            

    

     

    
      
        
        

      

      
        - 12
-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (i)

            	
              Retirement Under a
      Company Retirement Plan.  When a Participant's employment
      terminates as a result of retirement in accordance with the terms of a
      Company retirement plan, the Board or Committee may permit Stock Awards or
      Restricted Stock Purchase Offers to continue in effect beyond the date of
      retirement in accordance with the applicable Grant Agreement and the
      exercisability and vesting of any such Grants may be
      accelerated.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Rights in the Best
      Interests of the Company.  When a Participant resigns
      from the Company and, in the judgment of the Board or Committee, the
      acceleration and/or continuation of outstanding Stock Awards or Restricted
      Stock Purchase Offers would be in the best interests of the Company, the
      Board or Committee may (i) authorize, where appropriate, the acceleration
      and/or continuation of all or any part of Grants issued prior to such
      termination and (ii) permit the exercise, vesting and payment of such
      Grants for such period as may be set forth in the applicable Grant
      Agreement, subject to earlier cancellation pursuant to Section 9 or at
      such time as the Board or Committee shall deem the continuation of all or
      any part of the Participant's Grants are not in the Company's best
      interest.

            

    

    

    
      	
               
      

            	
              (iii)

            	
              Death or Disability of
      a Participant.

            

    

    

    
      	
               
      

            	
              (1)

            	
              In
      the event of a Participant's death, the Participant's estate or
      beneficiaries shall have a period up to the expiration date specified in
      the Grant Agreement within which to receive or exercise any outstanding
      Grant held by the Participant under such terms as may be specified in the
      applicable Grant Agreement. Rights to any such outstanding Grants shall
      pass by will or the laws of descent and distribution in the following
      order: (a) to beneficiaries so designated by the Participant; if none,
      then (b) to a legal representative of the Participant; if none, then (c)
      to the persons entitled thereto as determined by a court of competent
      jurisdiction. Grants so passing shall be made at such times and in such
      manner as if the Participant were
living.

            

    

    

    
      	
               
      

            	
              (2)

            	
              In
      the event a Participant is deemed by the Board or Committee to be unable
      to perform his or her usual duties by reason of mental disorder or medical
      condition which does not result from facts which would be grounds for
      termination for cause, Grants and rights to any such Grants may be paid to
      or exercised by the Participant, if legally competent, or a committee or
      other legally designated guardian or representative if the Participant is
      legally incompetent by virtue of such
  disability.

            

    

    

    
      	
               
      

            	
              (3)

            	
              After
      the death or disability of a Participant, the Board or Committee may in
      its sole discretion at any time (1) terminate restrictions in Grant
      Agreements; (2) accelerate any or all installments and rights; and (3)
      instruct the Company to pay the total of any accelerated payments in a
      lump sum to the Participant, the Participant's estate, beneficiaries or
      representative; notwithstanding that, in the absence of such termination
      of restrictions or acceleration of payments, any or all of the payments
      due under the Grant might ultimately have become payable to other
      beneficiaries.

            

    

     

    
      
        
        

      

      
        - 13
-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (4)

            	
              In
      the event of uncertainty as to interpretation of or controversies
      concerning this Section 6, the determinations of the Board or Committee,
      as applicable, shall be binding and
conclusive.

            

    

    

    
      
        	
                7. 

              	
                Change
      in Control. Unless
      otherwise provided in the applicable Grant Agreement, in the event of a
      Change in Control, 50% of the vesting restrictions applicable to each
      Participant’s Grant(s) shall terminate fully and the Participant shall
      immediately have the right to the delivery of share certificates or
      exercise of Options, i.e. to the extent that a Participant’s Option(s) are
      unvested, 50% of such unvested portion shall
  vest.

              

      

    

    

    
      
        	
                8. 

              	
                Investment
      Intent.  All Grants under the Plan are intended to be exempt
      from registration under the Securities Act provided by Rule 701
      thereunder. Unless and until the granting of Options or sale and issuance
      of Stock subject to the Plan are registered under the Securities Act or
      shall be exempt pursuant to the rules promulgated thereunder, each Grant
      under the Plan shall provide that the purchases or other acquisitions of
      Stock thereunder shall be for investment purposes and not with a view to,
      or for resale in connection with, any distribution thereof. Further,
      unless the issuance and sale of the Stock have been registered under the
      Securities Act, each Grant shall provide that no shares shall be purchased
      upon the exercise of the rights under such Grant unless and until (i) all
      then applicable requirements of state and federal laws and regulatory
      agencies shall have been fully complied with to the satisfaction of the
      Company and its counsel, and (ii) if requested to do so by the Company,
      the person exercising the rights under the Grant shall (A) give written
      assurances as to knowledge and experience of such person (or a
      representative employed by such person) in financial and business matters
      and the ability of such person (or representative) to evaluate the merits
      and risks of exercising the Option, and (B) execute and deliver to the
      Company a letter of investment intent and/or such other form related to
      applicable exemptions from registration, all in such form and substance as
      the Company may require. If shares are issued upon exercise of any rights
      under a Grant without registration under the Securities Act, subsequent
      registration of such shares shall relieve the purchaser thereof of any
      investment restrictions or representations made upon the exercise of such
      rights.

              

      

    

    

    
      
        	
                9. 

              	
                Amendment,
      Modification, Suspension or Discontinuance of the Plan.  The
      Board may, insofar as permitted by law, from time to time, with respect to
      any shares at the time not subject to outstanding Grants, suspend or
      terminate the Plan or revise or amend it in any respect whatsoever, except
      that without the approval of the shareholders of the Company, no such
      revision or amendment shall (i) increase the number of shares subject to
      the Plan, (ii) decrease the price at which Grants may be granted, (iii)
      materially increase the benefits to Participants, or (iv) change the class
      of persons eligible to receive Grants under the Plan; provided, however,
      no such action shall alter or impair the rights and obligations under any
      Option, or Stock Award, or Restricted Stock Purchase Offer outstanding as
      of the date thereof without the written consent of the Participant
      thereunder. No Grant may be issued while the Plan is suspended or after it
      is terminated, but the rights and obligations under any Grant issued while
      the Plan is in effect shall not be impaired by suspension or termination
      of the Plan.

              

      

    

    

    
      
        
        

      

      
        - 14
-

        
          

        

      

      
        
        

      

       

    

    In the
event of any change in the outstanding Stock by reason of a stock split, stock
dividend, combination or reclassification of shares, recapitalization, merger,
or similar event, the Board or the Committee may adjust proportionally (a) the
number of shares of Stock (i) reserved under the Plan, (ii) available for
Incentive Stock Options and Nonstatutory Options and (iii) covered by
outstanding Stock Awards or Restricted Stock Purchase Offers; (b) the Stock
prices related to outstanding Grants; and (c) the appropriate Fair Market Value
and other price determinations for such Grants. In the event of any other change
affecting the Stock or any distribution (other than normal cash dividends) to
holders of Stock, such adjustments as may be deemed equitable by the Board or
the Committee, including adjustments to avoid fractional shares, shall be made
to give proper effect to such event. In the event of a corporate merger,
consolidation, acquisition of property or stock, separation, reorganization or
liquidation, the Board or the Committee shall be authorized to issue or assume
stock options, whether or not in a transaction to which Section 424(a) of the
Code applies, and other Grants by means of substitution of new Grant Agreements
for previously issued Grants or an assumption of previously issued
Grants.

    

    
      
        	
                10.

              	
                Tax
      Withholding. The Company shall have the right to deduct applicable taxes
      from any Grant payment and withhold, at the time of delivery or exercise
      of Options, Stock Awards or Restricted Stock Purchase Offers or vesting of
      shares under such Grants, an appropriate number of shares for payment of
      taxes required by law or to take such other action as may be necessary in
      the opinion of the Company to satisfy all obligations for withholding of
      such taxes. If Stock is used to satisfy tax withholding, such stock shall
      be valued based on the Fair Market Value when the tax withholding is
      required to be made.

              

      

    

    

    
      
        	
                11.

              	
                Availability
      of Information. During the term of the Plan and any additional period
      during which a Grant granted pursuant to the Plan shall be exercisable,
      the Company shall make available, not later than one hundred and twenty
      (120) days following the close of each of its fiscal years, such financial
      and other information regarding the Company as is required by the bylaws
      of the Company and applicable law to be furnished in an annual report to
      the shareholders of the
Company.

              

      

    

    

    
      
        	
                12.

              	
                Notice.
      Any written notice to the Company required by any of the provisions of the
      Plan shall be addressed to the chief personnel officer or to the chief
      executive officer of the Company, and shall become effective when it is
      received by the office of the chief personnel officer or the chief
      executive officer.

              

      

    

    

    
      
        	
                13.

              	
                Indemnification
      of Board. In addition to such other rights or indemnifications as they may
      have as directors or otherwise, and to the extent allowed by applicable
      law, the members of the Board and the Committee shall be indemnified by
      the Company against the reasonable expenses, including attorneys' fees,
      actually and necessarily incurred in connection with the defense of any
      claim, action, suit or proceeding, or in connection with any appeal
      thereof, to which they or any of them may be a party by reason of any
      action taken, or failure to act, under or in connection with the Plan or
      any Grant granted thereunder, and against all amounts paid by them in
      settlement thereof (provided such settlement is approved by independent
      legal counsel selected by the Company) or paid by them in satisfaction of
      a judgment in any such claim, action, suit or proceeding, except in any
      case in relation to matters as to which it shall be adjudged in such
      claim, action, suit or proceeding that such Board or Committee member is
      liable for negligence or misconduct in the performance of his or her
      duties; provided that within sixty (60) days after institution of any such
      action, suit or Board proceeding the member involved shall offer the
      Company, in writing, the opportunity, at its own expense, to handle and
      defend the same.

              

      

    

     

    
      
        
        

      

      
        - 15
-

        
          

        

      

      
        
        

      

    

     

    
      
        	
                14.

              	
                Governing
      Law. The Plan and all determinations made and actions taken pursuant
      hereto, to the extent not otherwise governed by the Code or the securities
      laws of the United States, shall be governed by the law of the State of
      Delaware and construed
accordingly.

              

      

    

    

    
      
        	
                15.

              	
                Termination
      Dates. The Plan shall terminate ten years later, subject to earlier
      termination by the Board pursuant to Section
9.

              

      

    

    

    The foregoing 3DIcon Corporation 2011
Equity Incentive Plan (consisting of 16 pages, including this page) was duly
adopted and approved by the Board of Directors on December 29,
2010.

    

    
      
        
          	
                  3DICON
      CORPORATION

                
	 
      
	
                  By:

                	/s/
      Martin Keating
	 
      	
                  Name:
      Martin Keating

                
	 
      	
                  Title:
      Chief Executive Officer

                

        

      

    

     

    
      
         

      

      
        - 16
-Unassociated Document

    
      

      
EXHIBIT
99.1

    

    EMPLOYMENT
AGREEMENT

    FOR

    ROBERT
D. SZNEWAJS

    

    Effective
Date:  January 1, 2011

    

    West
Coast Bancorp

    and

    West
Coast Bank

     

    
      

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE OF
CONTENTS

    

    
      
        
          	 
      	 
      	
                  Page

                
	 
      	 
      	 
      
	
                  Section
      1

                	
                  The
      Parties

                	
                  1

                
	 
      	 
      	 
      
	
                  Section
      2

                	
                  Term

                	
                  1

                
	 
      	 
      	 
      
	
                  Section
      3

                	
                  Position

                	
                  1

                
	 
      	 
      	 
      
	
                  Section
      4

                	
                  Duties

                	
                  1

                
	 
      	 
      	 
      
	
                  Section
      5

                	
                  Time
      Commitment; Outside Activities

                	
                  2

                
	 
      	 
      	 
      
	
                  Section
      6

                	
                  Compensation

                	
                  2

                
	 
      	 
      	 
      
	
                  Section
      7

                	
                  Grounds
      for Termination of Employment

                	
                  4

                
	 
      	 
      	 
      
	
                  Section
      8

                	
                  Payments
      Upon Termination

                	
                  7

                
	 
      	 
      	 
      
	
                  Section
      9

                	
                  Severance
      Benefits

                	
                  7

                
	 
      	 
      	 
      
	
                  Section
      10

                	
                  Termination
      Upon Change In Control

                	
                  11

                
	 
      	 
      	 
      
	
                  Section
      11

                	
                  Effect
      of Termination on Other Positions

                	
                  12

                
	 
      	 
      	 
      
	
                  Section
      12

                	
                  No
      Mitigation or Offset

                	
                  12

                
	 
      	 
      	 
      
	
                  Section
      13

                	
                  Confidentiality

                	
                  12

                
	 
      	 
      	 
      
	
                  Section
      14

                	
                  Assistance
      with Claims

                	
                  13

                
	 
      	 
      	 
      
	
                  Section
      15

                	
                  General
      Provisions

                	
                  14

                
	 
      	 
      	 
      
	
                  Signatures

                	
                    
      

                	
                  16

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EMPLOYMENT
AGREEMENT

    

    Effective
Date:  January 1, 2011

    

    
      	
              1.

            	
              The
      Parties. 
      This Employment Agreement (the “Agreement”) is made by and
      among:

            

    

    

    
      	
               
      

            	
              (a)

            	
              WEST COAST
      BANCORP (“Bancorp”) and WEST COAST BANK (the “Bank”), (collectively
      the “Company”); and

            

    

     

    
      	
               
      

            	
              (b)

            	
              ROBERT
      D. SZNEWAJS (the “Executive”).

            

    

     

    
      	
              2.

            	
              Term.  The
      Company employs the Executive for a three-year term beginning effective as
      of January 1, 2011, and expiring on December 31, 2013,
      subject to earlier termination under the terms and conditions of this
      Agreement.

            

    

    

    
      	
              3.

            	
              Position.

            

    

    

    
      	
               
      

            	
              (a)

            	
              CEO and
      President.  The Executive’s title will be Chief Executive
      Officer and President of Bancorp.  At the discretion of the
      Board of Directors of Bancorp, the Executive shall also be the Chief
      Executive Officer and/or President of the
Bank.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Directorship.  Subject
      to shareholder approval as required, the Executive will serve as a
      director of:

            

    

     

    
      	
               
      

            	
              (1)

            	
              Bancorp
      and the Bank; and

            

    

    

    
      	
               
      

            	
              (2)

            	
              Such
      of their subsidiaries and affiliated companies as the Company may
      designate from time to time.

            

    

    

    
      	
              4.

            	
              Duties.  The
      Executive shall:

            

    

    

    
      	
               
      

            	
              (a)

            	
              Use
      his best efforts to faithfully and efficiently
  perform—

            

    

    

    
      	
               
      

            	
              (1)

            	
              Those
      duties that are specified for the Executive’s position in the Company’s
      bylaws and other governing documents;
and

            

    

    

    
      	
               
      

            	
              (2)

            	
              Any
      additional duties consistent with the Executive’s position as may be
      reasonably designated from time to time by the Company’s Board of
      Directors, either with or without additional
  compensation;

            

    

    

    
      	
               
      

            	
              (b)

            	
              Report
      directly to the Board of Directors of Bancorp and the Bank, as
      applicable; and

            

    

    

    
      	
               
      

            	
              (c)

            	
              Comply
      with the Company’s employment policies, procedures and practices that
      apply to other senior executives.  However, if there is a
      conflict between those policies, procedures and practices and the terms
      and conditions of this Agreement, this Agreement shall
      control.

            

    

    
       

      
        
PAGE
1  EMPLOYMENT AGREEMENT

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              5.

            	
              Time Commitment;
      Outside Activities.

            

    

    

    
      	
               
      

            	
              (a)

            	
              Except
      as provided in subsection (b) below, the Executive shall devote his
      full working time, attention and talents to performing his duties under
      Section 4.

            

    

    

    
      	
               
      

            	
              (b)

            	
              The
      Executive may engage in civic, community, investment and outside business
      activities provided they:

            

    

    

    
      	
               
      

            	
              (1)

            	
              Do
      not interfere with his duties under Section 4;
  and

            

    

    

    
      	
               
      

            	
              (2)

            	
              Are
      either:

            

    

    

    
      	
               
      

            	
              (A)

            	
              Allowed
      under the Company’s Governance Policy as in effect at the time;
      or

            

    

     

    
      	
               
      

            	
              (B)

            	
              Expressly
      approved in advance by Bancorp’s or the Bank’s Board of Directors, as
      applicable.

            

    

     

    
      	
              6.

            	
              Compensation.

            

    

    

    
      	
               
      

            	
              (a)

            	
              Salary.  The
      Executive will receive an annual salary of $420,000, payable in accordance
      with the Company’s regular payroll schedule and
  practices.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Bonus.  The
      Executive’s targeted annual bonus will be 50 percent of his annual
      salary.  The actual bonus amount for any year will be determined
      by the Committee in its discretion under subsection (k)
      below.

            

    

    

    
      	
               
      

            	
              (c)

            	
              SERP.  The
      Executive shall receive retirement benefits under the terms and conditions
      of the Supplemental Executive Retirement Plan as restated
      January 1, 2011.

            

    

    

    
      	
               
      

            	
              (d)

            	
              Incentive
      Awards.  The Executive shall not receive any stock option
      or restricted stock awards during the term of this
    Agreement.

            

    

    

    
      	
               
      

            	
              (e)

            	
              Deferred
      Compensation.  The Executive shall be entitled to
      participate in any deferred compensation plan or program available to the
      Company’s senior executives.

            

    

    

    
      	
               
      

            	
              (f)

            	
              Employee
      Benefits.  To the extent allowed by law and regulations,
      the Executive shall participate in all pension benefit plans, welfare
      benefit plans, insurance plans or programs and other fringe benefit plans
      or programs the Company has in effect for its employees and other senior
      executives.

            

    

     

    
      

    

    PAGE
2  EMPLOYMENT AGREEMENT

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (g)

            	
              Vacation.

            

    

    

    
      	
               
      

            	
              (1)

            	
              The
      Executive shall be entitled to four weeks of paid vacation each calendar
      year in addition to all holidays observed by the
  Company.

            

    

    

    
      	
               
      

            	
              (2)

            	
              The
      Executive’s ability to carry over unused vacation time to a subsequent
      year and the minimum amount of vacation the Executive is required to take
      each year shall be determined under the Company’s policies and practices
      as then in effect for its senior
executives.

            

    

    

    
      	
               
      

            	
              (h)

            	
              Fringe
      Benefits.  The Executive shall receive such other fringe
      benefits and perquisites as are provided to the Company’s senior
      executives.

            

    

    

    
      	
               
      

            	
              (i)

            	
              Business
      Expenses.  The Company shall reimburse the Executive, in
      accordance with the Company’s policies and procedures applicable to senior
      executives, for all reasonable expenses incurred by him in the performance
      of his duties.

            

    

    

    
      	
               
      

            	
              (j)

            	
              No Board
      Fees.  The Executive shall not receive any additional
      compensation for serving on the Board of Directors of Bancorp, the Bank or
      any of their subsidiaries or affiliated
  companies.

            

    

    

    
      	
               
      

            	
              (k)

            	
              Annual
      Review.  The Committee shall review the Executive’s
      compensation annually as follows:

            

    

    

    
      	
               
      

            	
              (1)

            	
              The
      review shall determine:

            

    

     

    
      	
               
      

            	
              (A)

            	
              The
      amount of the annual bonus, if any, for the previous year;
    and

            

    

     

    
      	
               
      

            	
              (B)

            	
              Whether
      any other benefit increases or additional benefits
      are warranted.

            

    

     

    
      	
               
      

            	
              (2)

            	
              In
      making its determinations under paragraph (1) above, the Committee
      shall take into account the reasonableness of the Executive’s overall
      compensation package (for example, determining whether providing an
      additional benefit should offset increases in other types of
      compensation); and

            

    

     

    
      	
               
      

            	
              (3)

            	
              The
      Executive will have the opportunity to meet with the Chair of the
      Committee reasonably in advance of each of the Committee’s annual meetings
      under this subsection.

            

    

     

    
      

    

    PAGE
3  EMPLOYMENT AGREEMENT

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              7.

            	
              Grounds
      for Termination of Employment.  The
      Executive’s employment may be terminated for any of the following
      reasons:

            

    

    

    
      	
               
      

            	
              (a)

            	
              Termination by the Company for
      Cause.  The Company may terminate the Executive’s
      employment for cause as follows—

            

    

    

    
      	
               
      

            	
              (1)

            	
              “Cause”
      means any of the following
circumstances:

            

    

    

    
      	
               
      

            	
              (A)

            	
              Embezzlement,
      dishonesty or other fraudulent acts involving the Company or the Company’s
      business operations;

            

    

    

    
      	
               
      

            	
              (B)

            	
              Material
      breach of Section 13 of this
Agreement;

            

    

    

    
      	
               
      

            	
              (C)

            	
              Conviction
      (whether entered upon a verdict or a plea, including a plea of no contest)
      on any felony charge or on a misdemeanor reflecting upon the Executive’s
      honesty;

            

    

    

    
      	
               
      

            	
              (D)

            	
              An
      act or omission that materially injures the Company’s reputation, business
      affairs or financial condition, if that injury could have been reasonably
      avoided by the Executive; or

            

    

    

    
      	
               
      

            	
              (E)

            	
              Failure
      or refusal of the Executive to substantially perform his duties to the
      Company (except during a period of disability that does not exceed the
      maximum allowable under subsection (f)(1) below), including willful
      misfeasance or gross negligence in the performance of those duties or
      willful disregard of the lawful directives of the Board; provided,
      however, that the Executive is first
given—

            

    

    

    
      	
               
      

            	
              (i)

            	
              Written
      notice by the Committee specifying in detail the performance issues;
      and

            

    

    

    
      	
               
      

            	
              (ii)

            	
              A
      reasonable opportunity to cure the issues specified in
      the notice.

            

    

    

    
      	
               
      

            	
              (2)

            	
              Limitations.  The
      Company may not terminate the Executive’s employment for cause
      unless:

            

    

    

    
      	
               
      

            	
              (A)

            	
              Two-thirds
      of Bancorp’s Board of Directors determine that cause exists based upon
      substantial evidence (that is, proof by a preponderance of the evidence,
      clear and convincing evidence or beyond a reasonable doubt is not
      required);

            

    

    

    
      	
               
      

            	
              (B)

            	
              The
      Executive is given reasonable notice of the Board meeting called to make
      that determination; and

            

    

    

    
      	
               
      

            	
              (C)

            	
              The
      Executive and the Executive’s legal counsel are given the opportunity to
      address that meeting.

            

    

     

    
      

    

    PAGE
4  EMPLOYMENT AGREEMENT

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              Termination by the Company
      without Cause.  The Company may terminate the Executive’s
      employment without cause for any reason or for no
  reason.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Termination by the Executive
      for Good Reason.  Subject to the limitations in
      paragraph (2) below, the Executive may terminate his employment for
      good reason as follows—

            

    

    

    
      	
               
      

            	
              (1)

            	
              “Good
      Reason” means any one or more of the following conditions that
      occur without the Executive’s express written
  consent:

            

    

    

    
      	
               
      

            	
              (A)

            	
              A
      material reduction in the Executive’s
salary;

            

    

    

    
      	
               
      

            	
              (B)

            	
              A
      material diminution in the Executive’s authority, duties or
      responsibilities (including requiring the Executive to report to a
      corporate officer instead of Bancorp’s Board of
  Directors);

            

    

    

    
      	
               
      

            	
              (C)

            	
              A
      material diminution of the budget over which the Executive retains
      authority;

            

    

    

    
      	
               
      

            	
              (D)

            	
              A
      relocation or transfer of the Executive’s place of employment to an office
      or location that is more than 35 miles from the Executive’s then current
      place of employment; or

            

    

    

    
      	
               
      

            	
              (E)

            	
              Any
      other action or inaction that constitutes a material breach of this
      Agreement by the Company.

            

    

    

    
      	
               
      

            	
              (2)

            	
              Limitations.  Generally,
      the Executive may not terminate his employment for Good Reason
      unless:

            

    

     

    
      	
               
      

            	
              (A)

            	
              The
      termination occurs within two years of the date of the initial existence
      of the condition constituting Good
Reason;

            

    

    

    
      	
               
      

            	
              (B)

            	
              The
      Executive gives the Company notice of the existence of the Good Reason
      condition within 90 days of its initial existence;
  and

            

    

    

    
      	
               
      

            	
              (C)

            	
              The
      Company has a reasonable opportunity of at least 30 days in which to cure
      the condition.  The Company is not required to pay severance
      benefits under Section 9 during this correction
    period.

            

    

    

    If the
Executive fails to comply with subparagraph (A) or (B) above, the
Executive’s termination of employment will be considered a termination for Good
Cause under this Agreement only if the Executive and Bancorp agree that, under
the facts and circumstances, the Executive’s termination of employment qualifies
as a “separation from service for good reason” for purposes of Internal Revenue
Code § 409A.

     

    
      

    

    PAGE
5  EMPLOYMENT AGREEMENT

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (d)

            	
              Termination by the Executive
      without Good Reason.  The Executive may voluntarily
      terminate employment without good reason upon at least 60 days’ prior
      written notice to the Company.

            

    

    

    
      	
               
      

            	
              (e)

            	
              Death. This Agreement
      will terminate immediately upon the Executive’s
  death.

            

    

    

    
      	
               
      

            	
              (f)

            	
              Disability.  The
      Company may terminate this Agreement upon the Executive’s disability as
      follows:

            

    

    

    
      	
               
      

            	
              (1)

            	
              The
      disability must continue for
either:

            

    

    

    
      	
               
      

            	
              (A)

            	
              90
      consecutive calendar days; or

            

    

     

    
      	
               
      

            	
              (B)

            	
              180
      calendar days in any 12 consecutive month
  period.

            

    

     

    
      	
               
      

            	
              (2)

            	
              Disability
      will be determined by a physician selected by the Company with the
      Executive’s consent, which consent cannot be
      unreasonably withheld.

            

    

    

    
      	
               
      

            	
              (3)

            	
              For
      purposes of paragraphs (1) and (2) above, “disability” means any
      physical or mental condition which renders the Executive unable to
      perform, with reasonable accommodations that do not cause an undue
      hardship to the Company, his essential job functions under
      this Agreement.

            

    

    

    
      	
               
      

            	
              (4)

            	
              If
      the Company terminates this Agreement for disability under facts and
      circumstances that do not satisfy the requirement of paragraphs (1),
      (2) and (3) above, the termination shall be treated as a termination
      without cause.

            

    

    

    
      	
               
      

            	
              (g)

            	
              Separation from
      Service.  For purposes of this Agreement, the Executive
      will have a termination of employment only if
  either:

            

    

    

    
      	
               
      

            	
              (1)

            	
              The
      Company and the Executive reasonably anticipate that the Executive will
      not render any services to the Company after the date of termination under
      this Agreement; or

            

    

    

    
      	
               
      

            	
              (2)

            	
              The
      Company and the Executive agree that the Executive will continue to
      provide bona fide services to the Company (either as an employee or an
      independent contractor) after the date of termination of employment under
      this Agreement, but only if those services do not rise to such a level
      that the termination of the Executive’s employment under this Agreement
      would no longer qualify as a “separation from service” for purposes of
      Internal Revenue
Code § 409A.

            

    

     

    
      

    

    PAGE
6  EMPLOYMENT AGREEMENT

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              8.

            	
              Payments
      Upon Termination.  Regardless
      of the reason for the termination, compensation and benefits earned or
      accrued through the date of the termination of the Executive’s employment
      will be paid as follows:

            

    

    

    
      	
               
      

            	
              (a)

            	
              The
      following amounts will be paid within the time required by the Oregon wage
      and hour laws:

            

    

     

    
      	
               
      

            	
              (1)

            	
              Salary
      earned through the date of termination;
and

            

    

     

    
      	
               
      

            	
              (2)

            	
              The
      bonus for the year before the year in which the termination occurs to the
      extent unpaid as of the date of
termination;

            

    

     

    
      	
               
      

            	
              (b)

            	
              Business
      expenses reimbursable under this Agreement that were incurred though the
      date of termination will be paid as soon as administratively feasible, but
      in no event later than 60 days following the termination date;
      and

            

    

     

    
      	
               
      

            	
              (c)

            	
              Employee
      benefits and other fringe benefits accrued through the date of termination
      will be paid in accordance with the terms and conditions of the applicable
      plan or arrangement.

            

    

     

    
      	
              9.

            	
              Severance
      Benefits.  If the
      Executive’s employment is terminated by the Company without cause or by
      the Executive for Good Reason, the Company will pay the Executive the
      following severance benefits in addition to the payments under Section
      8:

            

    

     

    
      	
               
      

            	
              (a)

            	
              At
      the times specified in paragraph (5) below, the Company will pay the
      Executive a total payment equal to the sum of the amounts determined under
      paragraphs (1), (2), (3) and
      (4) below.

            

    

     

    
      	
               
      

            	
              (1)

            	
              The
      product of:

            

    

     

    
      	
               
      

            	
              (A)

            	
              The
      Executive’s annual base salary as in effect on the date
      of termination,

            

    

     

    multiplied by

     

    
      	
               
      

            	
              (B)

            	
              The
      number of days from the date of termination through
      December 31, 2013, divided by
365.

            

    

     

    
      	
               
      

            	
              (2)

            	
              The
      annualized amount of the bonus the Executive earned through the date of
      termination for the year in which the termination occurred, to the extent
      unpaid.  For this purpose, the amount of the bonus earned will
      be determined by the extent to which the Executive, as of the date of
      termination, was on track for achieving the bonus measurement criteria for
      the year in which the termination
occurred.

            

    

     

    
      

    

    PAGE
7  EMPLOYMENT AGREEMENT

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (3)           The
product of:

     

    
      	
               
      

            	
              (A)

            	
              The
      average of—

            

    

     

    
      	
               
      

            	
              (i)

            	
              The
      actual bonus paid or payable for the year before the year in which the
      termination occurs; and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              The
      bonus amount determined under paragraph (2)
  above,

            

    

     

    multiplied
by

     

    
      	
               
      

            	
              (B)

            	
              The
      number of days from January 1 of the year following the year in which the
      termination occurred, through December 31, 2013, divided by
      365.

            

    

     

    
      	
               
      

            	
              (4)

            	
              An
      amount equal to the sum of the Executive’s “deemed matching contribution”
      (as determined under subparagraph (B) below) and the Executive’s
      “deemed profit-sharing contribution” (as determined under
      subparagraph (C) below).

            

    

     

    
      	
               
      

            	
              (A)

            	
              For
      purposes of determining the Executive’s deemed matching and profit-sharing
      contributions, the Executive’s “deemed 401(k) Plan compensation” will
      be the total amount payable under subsection (a)(1), (2) and (3)
      above, but limited to the maximum amount allowable under the 401(k) Plan’s
      definition of “compensation” as in effect at that
  time;

            

    

     

    
      	
               
      

            	
              (B)

            	
              The
      deemed matching contributions will be determined
      as follows—

            

    

     

    
      	
               
      

            	
              (i)

            	
              First,
      the Executive’s “deemed elective deferral contributions” will be
      determined by multiplying the Executive’s deemed 401(k) Plan compensation
      under subparagraph (A) above by the lesser
  of:

            

    

     

    
      	
               
      

            	
              (I)

            	
              The
      deferral percentage the Executive had in effect under the 401(k) Plan
      on the date of termination; or

            

    

     

    
      	
               
      

            	
              (II)

            	
              The
      maximum deferral percentage allowed by the 401(k) Plan for highly
      compensated employees (if applicable to the Executive) for the plan year
      in which termination occurs, if that percentage has been determined by the
      date of termination;

            

    

     

    
      
PAGE
8  EMPLOYMENT AGREEMENT

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (ii)

            	
              Second,
      the deemed matching contribution formula will be applied to the amount of
      the deemed elective deferral contributions as calculated under
      clause (i) above, to determine the amount of the deemed matching
      contributions.  For this purpose, the “deemed matching
      contribution formula” is:

            

    

     

    
      	
               
      

            	
              (I)

            	
              The
      401(k) Plan’s matching contribution formula for the plan year in
      which the termination occurs; or

            

    

     

    
      	
               
      

            	
              (II)

            	
              If
      that formula has not been determined by the date of termination, the
      formula for the previous plan year;
and

            

    

     

    
      	
               
      

            	
              (C)

            	
              The
      deemed profit-sharing contributions will be determined by multiplying the
      Executive’s deemed 401(k) Plan compensation under
      subparagraph (A) above by—

            

    

     

    
      	
               
      

            	
              (i)

            	
              The
      actual bonus paid or payable for the bonus computation year that ended
      before the bonus computation year in which the termination occurs;
      and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              The
      annualized amount of the bonus the Executive earned, determined as of the
      end of the month in which the termination occurs, for the bonus
      computation year in which the termination occurs;
  and

            

    

     

    
      	
               
      

            	
              (5)

            	
              The
      portion of the Executive’s separation pay that does not exceed the maximum
      409A separation pay limit, shall be paid to the Executive in a lump-sum
      payment as soon as administratively feasible after the date of
      termination, but in no event later than 15 business days after the date of
      termination.  The portion of the Executive’s separation pay that
      exceeds the maximum 409A separation pay limit will be paid to the
      Executive in a lump-sum payment on the first business day of the seventh
      month following the date of termination (or, if sooner, no later than 15
      business days after the Executive’s death).  The following
      definitions apply for purposes of this
  paragraph:

            

    

     

    
      	
               
      

            	
              (A)

            	
              “Separation pay” means
      the amount payable under subsection (a) above, reduced, to the extent
      required by Internal Revenue Code § 409A, by amounts payable
      under subsections (c) and
(d) below.

            

    

     

    
      	
               
      

            	
              (B)

            	
              “Maximum 409A separation pay
      limit” means two times the
  lesser of:

            

    

     

    
      	
               
      

            	
              (i)

            	
              The
      Executive’s annualized base salary for the year of termination;
      or

            

    

     

    
      

    

    PAGE
9  EMPLOYMENT AGREEMENT

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (ii)

            	
              The
      maximum amount that may be taken into account as includible compensation
      under a qualified retirement plan pursuant to Internal Revenue Code
      § 401(a)(17) for the year in which the termination
      occurs.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Upon
      the date of termination—

            

    

     

    
      	
               
      

            	
              (1)

            	
              All
      stock options held by the Executive that are not otherwise vested as of
      that date shall become immediately vested and exercisable notwithstanding
      any vesting provisions in the grant of those options;
  and

            

    

     

    
      	
               
      

            	
              (2)

            	
              Any
      restrictions on the restricted stock held by the Executive shall
      immediately lapse.

            

    

     

    
      	
               
      

            	
              (c)

            	
              The
      Company shall provide the Executive and his spouse with continued group
      health plan coverage (medical, dental and vision) as
    follows:

            

    

     

    
      	
               
      

            	
              (1)

            	
              Coverage
      shall continue until whichever of the following occurs
    first:

            

    

     

    
      	
               
      

            	
              (A)

            	
              The
      date the Executive qualifies for group health plan coverage provided by a
      subsequent employer; or

            

    

     

    
      	
               
      

            	
              (B)

            	
              December
      31, 2013.

            

    

     

    
      	
               
      

            	
              (2)

            	
              During
      the continuation period, the Company shall continue to pay the employer
      portion of the premiums for coverage under its group health plans, except
      as provided under paragraph (3)
below.

            

    

     

    
      	
               
      

            	
              (3)

            	
              If
      the Company reasonably determines that the Executive cannot participate in
      the Company’s group health plans because he is no longer actively
      performing services for the Company, the Company will pay the COBRA
      coverage premiums for group health plan coverage for the Executive and his
      spouse.  If the COBRA continuation coverage period expires
      before the benefits continuation period specified in paragraph (1)
      above, the Company shall pay for the balance of the period remaining under
      paragraph (1) above, the premiums for a conversion or portability
      policy obtained by the Executive.

            

    

     

    
      	
               
      

            	
              (4)

            	
              The
      Bank agrees that, at each time it renews its group health plan coverage
      during the Executive’s lifetime, it will request its insurance carrier to
      extend the group health plan’s coverage to the Executive or to a group of
      the Bank’s retired executives that includes the Executive, provided this
      executive retiree coverage:

            

    

    

    
      	
               
      

            	
              (A)

            	
              Does
      not adversely affect the premiums for the Bank’s
      active employees;

            

    

     

    
      

    

    PAGE
10  EMPLOYMENT AGREEMENT

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (B)

            	
              Does
      not otherwise increase the Bank’s costs of providing group health plan
      coverage;

            

    

    

    
      	 	
              (C) 

            	
              Is
      paid for solely by the retired executives;
and

            

    

    

    
      	
               
      

            	
              (D)

            	
              Such
      an arrangement is in compliance with applicable law as in effect at that
      time.

            

    

    

    If, in
the future, the Bank’s group health plan coverage is provided under an
arrangement other than a group insurance policy issued by a commercial insurance
carrier, the executive retiree coverage described above shall be offered under
such arrangement to the extent feasible, subject to the conditions of
subparagraphs (A), (B), (C) and (D) above.

    

    
      	
               
      

            	
              (d)

            	
              The
      Company shall provide the Executive with group life insurance coverage at
      the same level as is in effect on the date of termination until whichever
      of the following first occurs:

            

    

     

    
      	
               
      

            	
              (1)

            	
              The
      date the Executive qualifies for group life insurance coverage provided by
      a subsequent employer; or

            

    

     

    
      	
               
      

            	
              (2)

            	
              December
      31, 2013.

            

    

     

    
      	
              10.

            	
              Termination Upon
      Change In Control.

            

    

     

    
      	
               
      

            	
              (a)

            	
              If Covered by C-I-C
      Agreement.  If
      the Executive’s employment terminates under circumstances that qualify as
      a “Termination Event” as defined in the Change In Control Agreement dated
      December 30, 2008, between the Company and the Executive, as amended,
      (the “C-I-C Agreement”), the Executive
    will receive:

            

    

     

    
      	
               
      

            	
              (1)

            	
              The
      payments payable under Section 8 of this Agreement;
    and

            

    

     

    
      	
               
      

            	
              (2)

            	
              The
      severance benefits payable in accordance with the terms and conditions of
      the C-I-C Agreement in lieu of those payable under Section 9 of
      this Agreement.

            

    

     

    
      	
               
      

            	
              (b)

            	
              If Not Covered by C-I-C
      Agreement.  If the Executive’s employment terminates
      under circumstances that do not qualify as a “Termination Event” as
      defined in the C-I-C Agreement (e.g., because the change in
      beneficial ownership is not large enough to qualify as a change in control
      as defined under the C-I-C Agreement or because the termination
      occurs after the period of time covered by that agreement), the
      compensation and benefits payable to the Executive upon termination of
      employment will be determined solely under
      this Agreement.

            

    

     

    
      

    

    PAGE
11  EMPLOYMENT AGREEMENT

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              11.

            	
              Effect
      of Termination on Other Positions. 
      If, on the date of the termination of his employment with the Company, the
      Executive is a member of the Board of Directors of the Company or any of
      its subsidiaries or affiliates, or holds any other position with the
      Company or any of its subsidiaries or affiliates, the Executive shall be
      deemed to have resigned from all of those positions as of the date of his
      termination of employment.  The Executive shall sign such
      documents and take such actions as the Company may request to effect those
      resignations.

            

    

     

    
      	
              12.

            	
              No
      Mitigation or Offset.  Upon
      the termination of his employment, the Executive shall be under no
      obligation to seek other employment.  Any remuneration the
      Executive receives from any subsequent employment he may obtain shall not
      offset any amounts due the Executive under this
  Agreement.

            

    

     

    
      	
              13.

            	
              Confidentiality.

            

    

    

    
      	
               
      

            	
              (a)

            	
              Nondisclosure.  The
      Executive shall not use or disclose any confidential information (as
      defined in subsection (c) below), either during or following the term
      of this Agreement, except as required by the Executive’s duties under this
      Agreement or as otherwise allowed under subsection (b)
    below.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Exceptions.  The
      nondisclosure obligation under subsection (a) above does not apply to
      any use or disclosure that is:

            

    

    

    
      	
               
      

            	
              (1)

            	
              Made
      with Bancorp’s prior written
consent;

            

    

    

    
      	
               
      

            	
              (2)

            	
              Required
      by a court order or a subpoena from a government agency (provided,
      however, that the Executive must first provide Bancorp with reasonable
      notice of the court order or subpoena in order to allow Bancorp the
      opportunity to contest the requested disclosure);
  or

            

    

    

    
      	
               
      

            	
              (3)

            	
              Of
      confidential information that has been previously disclosed to the public
      by the Company or is in the public domain (other than by reason of
      Executive’s breach of this
Agreement).

            

    

    

    
      	
               
      

            	
              (c)

            	
              “Confidential
      Information” means any of the Company’s (or its subsidiaries’ or
      affiliates’) trade secrets, customer or prospects lists, information
      regarding product development, marketing plans, sales plans, strategic
      plans, projected acquisitions or dispositions, management agreements,
      management organization information (including data and other information
      relating to members of the Board and management), operating policies or
      manuals, business plans, purchasing agreements, financial records, other
      similar financial, commercial, business or technical information or any
      information that the Company or any of its subsidiaries or affiliates has
      received from its service providers, other vendors or customers that these
      third parties have designated as confidential
      or proprietary.

            

    

     

    
      

    

    PAGE
12  EMPLOYMENT AGREEMENT

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (d)

            	
              Injunctive Relief and Other
      Remedies.  The Executive acknowledges and agrees that the
      nondisclosure obligation under subsection (a) above relates to special,
      unique and extraordinary matters and that a breach of that obligation will
      cause the Company irreparable injury for which adequate remedies are not
      available at law.  Therefore, Executive agrees
    that:

            

    

    

    
      	
               
      

            	
              (1)

            	
              The
      Company shall be entitled to an injunction, restraining order or such
      other equitable relief (without the requirement to post bond) restraining
      Executive from committing any breach or threatened breach of the
      nondisclosure obligation under subsection (a)
  above;

            

    

    

    
      	
               
      

            	
              (2)

            	
              If
      the Company is required to post a bond in order to secure an injunction or
      other equitable remedy, that bond shall be no more than a nominal amount;
      and

            

    

    

    
      	
               
      

            	
              (3)

            	
              These
      injunctive remedies are cumulative and are in addition to any other rights
      and remedies the Company may have at law or in
  equity.

            

    

    

    
      	
               
      

            	
              (e)

            	
              Survival.  This
      section shall survive the termination of the
      Executive’s employment.

            

    

    

    
      	
              14.

            	
              Assistance with
      Claims.

            

    

    

    
      	
               
      

            	
              (a)

            	
              The
      Executive agrees that, both during and after his employment with the
      Company, he will:

            

    

    

    
      	
               
      

            	
              (1)

            	
              Assist
      the Company and its subsidiaries and affiliates in the defense of any
      claims, or potential claims that may be made or threatened to be made
      against any of them in any action, suit or proceeding, whether civil,
      criminal, administrative or investigative (a
  “Proceeding”);

            

    

     

    
      	
               
      

            	
              (2)

            	
              Assist
      the Company and its subsidiaries and affiliates in the prosecution of any
      claims that may be made by the Company or any subsidiary or affiliate in
      any Proceeding, to the extent that such claims relate to the Executive’s
      employment or the period of Executive’s employment with the
      Company;

            

    

     

    
      	
               
      

            	
              (3)

            	
              Unless
      precluded by law, promptly notify the Company if he is asked to
      participate (or otherwise become involved) in any Proceeding involving
      such claims or potential claims;
and

            

    

     

    
      	
               
      

            	
              (4)

            	
              Unless
      precluded by law, promptly notify the Company if he is asked to assist in
      any investigation (whether governmental or private) of the Company or any
      of its subsidiaries or affiliates (or their actions), regardless of
      whether a lawsuit has then been filed against the Company or any
      subsidiary or affiliate with respect to that
  investigation.

            

    

     

    
      
PAGE
13  EMPLOYMENT AGREEMENT

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              The
      Company agrees to reimburse the Executive for all of his reasonable
      out-of-pocket expenses associated with the assistance he renders under
      this section, including travel expenses and any reasonable attorneys’ fees
      and expenses, and shall pay the Executive a reasonable per diem fee for
      his services.

            

    

     

    
      	
              15.

            	
              General
      Provisions.

            

    

    

    
      	
               
      

            	
              (a)

            	
              Applicable
      Law.

            

    

     

    
      	
               
      

            	
              (1)

            	
              This
      Agreement shall be construed and its validity determined according to the
      laws of the State of Oregon, other than its law regarding conflicts of law
      or choice of law.

            

    

     

    
      	
               
      

            	
              (2)

            	
              Any
      dispute arising out of this Agreement must be brought in either Clackamas
      County or Multnomah County, Oregon, and the parties will submit to
      personal jurisdiction in either of those
  counties.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Arbitration.  Any
      dispute or claim arising out of or brought in connection with this
      Agreement, other than a claim by the Company under Section 13, shall
      be submitted to final and binding arbitration as
  follows:

            

    

    

    
      	
               
      

            	
              (1)

            	
              Before
      proceeding to arbitration, the parties shall first attempt, in good faith,
      to resolve the dispute or claim by informal meetings and discussions
      between them and/or their attorneys.  The Chairman of the Board
      will act on behalf of the Company at these meetings and
      discussions.  This informal dispute resolution process will be
      concluded within 30 days or such longer or shorter period as may be
      mutually agreed by the parties.

            

    

    

    
      	
               
      

            	
              (2)

            	
              After
      exhausting the informal dispute resolution process under
      paragraph (1) above, upon the request of any party, the matter will
      be submitted to and settled by arbitration under the rules then in effect
      of the American Arbitration Association (or under any other form of
      arbitration mutually acceptable to the parties involved).  Any
      award rendered in arbitration will be final and will bind the parties, and
      a judgment on it may be entered in the highest court of the forum having
      jurisdiction.  The arbitrator will render a written decision,
      naming the substantially prevailing party in the action and, subject to
      subsection (c) below, will award such party all costs and expenses
      incurred, including reasonable attorneys’
fees.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Attorneys’
      Fees.

            

    

     

    
      	
               
      

            	
              (1)

            	
              If
      any breach of or default under this Agreement results in either party
      incurring attorneys’ or other fees, costs or expenses (including those
      incurred in an arbitration), the substantially prevailing party is
      entitled to recover from the non-prevailing party its reasonable legal
      fees, costs and expenses, including attorneys’ fees and the costs of the
      arbitration, except as provided in paragraph (2)
    below.

            

    

     

    
      

    

    PAGE
14  EMPLOYMENT AGREEMENT

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (2)

            	
              If
      the Executive is not the substantially prevailing party, the Executive
      shall be liable to pay the Company under paragraph (1) above only if
      the arbitrator determines that:

            

    

     

    
      	
               
      

            	
              (A)

            	
              There
      was no reasonable basis for the Executive’s claim (or the Executive’s
      response to the Company’s claim);
or

            

    

     

    
      	
               
      

            	
              (B)

            	
              The
      Executive engaged in unreasonable delay, failed to comply with a discovery
      order or otherwise acted in bad faith in
    the arbitration.

            

    

     

    
      	
               
      

            	
              (3)

            	
              Either
      party shall be entitled to recover any reasonable attorneys’ fees and
      other costs and expenses it incurs in enforcing or collecting an
      arbitration award.

            

    

     

    
      	
               
      

            	
              (4)

            	
              If
      an award under this section is made to the Executive, and accountants or
      tax counsel selected by the Company with the Executive’s consent (which
      shall not be unreasonably withheld) determine that the award is includible
      in the Executive’s gross income, the Company shall also pay the Executive
      a gross-up payment to offset the taxes imposed on that award, including
      the taxes on the gross-up payment itself.  This gross-up payment
      shall be determined following the methodology employed in the
      C-I-C Agreement.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Amendment.  This
      Agreement may be amended only by a written agreement signed by the
      parties.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Notice.

            

    

     

    
      	
               
      

            	
              (1)

            	
              Any
      notice given under this Agreement shall be in writing delivered to a Party
      at the address given below or to such other address as that Party has
      given the other Parties in accordance with this
  section.

            

    

     

    
      
        
          
            	
                    To
      the Executive:

                  	 	
                    The
      last address on file in the Executive’s

                    personnel
      file at the Company

                  
	 
      	 	 
      
	
                    To
      the Company:

                  	 	
                    Attn:  General
      Counsel

                  
	 
      	 	
                    5335
      Meadows Road

                  
	 
      	 	
                    Suite
      201

                  
	 
      	 	
                    Lake
      Oswego, OR 97035

                  

          

        

      

    

    

    
      	
               
      

            	
              (2)

            	
              A
      notice shall be deemed to have been given if it
  is:

            

    

    

    
      	
               
      

            	
              (A)

            	
              Delivered
      by hand;

            

    

    

    
      	
               
      

            	
              (B)

            	
              Mailed
      by certified U.S. mail, return receipt requested, with postage prepaid;
      or

            

    

     

    
      

    

    PAGE
15  EMPLOYMENT AGREEMENT

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (C)

            	
              Delivered
      to a private carrier for guaranteed next-day
  delivery.

            

    

    

    
      	
               
      

            	
              (f)

            	
              Entire
      Agreement.  This Agreement constitutes the entire
      agreement between the Company and the Executive as to its subject
      matter.  No rights are granted to the Executive by virtue of
      this Agreement other than those specifically set forth in this document
      and any amendments to it.

            

    

     

    
      	
               
      

            	
              (g)

            	
              Construction.  The
      language of this Agreement was chosen jointly by the parties to express
      their mutual intent.  No rule of construction based on which
      party drafted the Agreement or certain of its provisions will be applied
      against any party.

            

    

     

    
      	
               
      

            	
              (h)

            	
              Section
      Headings.  The section headings used in this Agreement
      have been included for convenience of reference
  only.

            

    

     

    
      	
               
      

            	
              (i)

            	
              Counterparts.  This
      Agreement may be executed in one or more counterparts, and all
      counterparts will be construed together as one
  Agreement.

            

    

     

    
      	
               
      

            	
              (j)

            	
              Severability.  If
      any provision of this Agreement is, to any extent, held to be invalid or
      unenforceable, it will be deemed amended as necessary to conform to the
      applicable laws or regulations.  However, if it cannot be
      amended without materially altering the intentions of the parties, it will
      be deleted and the remainder of this Agreement will be enforced to the
      extent permitted by law.

            

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                EXECUTIVE:

                              	 	
                                COMPANY:

                              
	 
      	 	 
      
	 
      	 	
                                WEST
      COAST BANCORP

                              
	 
      	 	 
      
	
                                /s/ Robert D. Sznewajs

                              	 	
                                By:

                              	
                                /s/ Lloyd D.
    Ankeny  

                              
	
                                Robert
      D. Sznewajs

                              	 	 
      
	 
      	 	
                                Title:

                              	
                                Chairman  

                              
	 	 	 	 
	 	 	Date: 	December
      16, 2010 
	Date:
      January 12, 2011  	 	 
      
	 
      	 	
                                WEST
      COAST BANK

                              
	 
      	 	 
      
	 
      	 	
                                By:

                              	
                                /s/ Lloyd D.
    Ankeny  

                              
	 
      	 	 
      
	 
      	 	
                                Title:

                              	
                                Chairman  

                              
	 	 	 	 
	 	 	Date: 	December
      16,
2010 

                      

                    

                  

                

              

            

          

        

      

    

    

    

    PAGE 16  EMPLOYMENT
AGREEMENT

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