VENTURE FINANCIAL GROUP INC
EXHIBIT 10.1
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>f8kex101sager.htm
<DESCRIPTION>EXHIBIT 10.1
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<B><U><FONT size=2 face="serif">EXHIBIT 10.1</FONT></U></B><p>
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<B><U><FONT size=2 face="serif">VENTURE FINANCIAL GROUP, INC.</FONT></U></B><BR>
<B><FONT size=2 face="serif">EMPLOYMENT AGREEMENT </FONT></B>
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<B><FONT size=2 face="serif">FOR</FONT></B><P align="center">
<B><FONT size=2 face="serif">Sandra L. Sager</FONT></B><P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This EMPLOYMENT AGREEMENT ("Agreement") by and among VENTURE FINANCIAL GROUP, INC., a Washington corporation (the "Company"), VENTURE BANK, a Washington banking corporation (the "Bank")
(hereinafter the Company and the Bank are collectively referred to as the "Employer"), and </FONT><B><FONT size=2 face="serif">Sandra L. Sager </FONT></B><FONT size=2 face="serif">("Executive"), is dated November ____, 2005. </FONT></P>
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<FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1. </FONT><U><FONT size=2 face="serif">Employment</FONT></U><FONT size=2 face="serif">.  Starting December 19, 2005 (the "Effective Date"), Employer will employ Executive, subject to the terms and conditions set forth in
this Agreement. The employment is "at will." Notwithstanding the term of this Agreement, Employer may terminate Executive's employment at any time for any lawful reason or for no reason at all, subject to the provisions of this Agreement.</FONT></P>
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<FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2. </FONT><U><FONT size=2 face="serif">Term</FONT></U><FONT size=2 face="serif">. The term of the Agreement begins on the Effective Date and continues for two years. Unless either party informs the other party that they do
not wish to extend the Agreement at least 60 days prior to the end of the Term, this Agreement will automatically renew for an additional one-year term as of the end of each Term. "Term" as used herein includes the initial term and any extensions
thereto. </FONT><B><FONT size=2 face="serif"> </FONT></B></P>
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<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3. </FONT><U><FONT size=2 face="serif">Position</FONT></U><FONT size=2 face="serif">.  Executive will serve as Executive Vice President, Chief Financial Officer. Executive will faithfully and diligently perform the duties that are normal and customary to the position, as well as those duties assigned from time to time by the Chief Executive Officer of the Bank (the "CEO").</FONT></P>
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<FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4. </FONT><U><FONT size=2 face="serif">Obligations</FONT></U><FONT size=2 face="serif">.  Executive shall devote Executive's best efforts, energies, and skills to the position and shall not engage in any business or
employment activity that is not on Employer's behalf (whether or not pursued for gain or profit), except for (i) activities approved in writing in advance by the CEO and (ii) passive investments that do not involve Executive providing any advice or
services to the businesses in which the investments are made. Executive agrees to act in accordance with the laws of the State of Washington and the federal government and pursuant to the general guidelines and directions as established from time to
time by the Employer's Boards of Directors. </FONT></P>
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<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.</FONT>
<U><FONT size=2 face="serif">Compensation</FONT></U><FONT size=2 face="serif">.</FONT> </P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size=2 face="serif">(a) </FONT><U><FONT size=2 face="serif">Base Salary</FONT></U><FONT size=2 face="serif">. For services performed under this Agreement, Executive shall be</FONT>
<FONT size=2 face="serif">entitled to &#36;11,250 per month (&#36;135,000</FONT><B><FONT size=2 face="serif"> </FONT></B><FONT size=2 face="serif">on an annualized basis), which Employer may increase in its sole discretion (the "Base Salary"). The
Base Salary will be paid in accordance with the Bank's regular payroll schedule. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;<FONT size=2 face="serif"> (b) </FONT><U><FONT size=2 face="serif">Incentive Compensation</FONT></U><FONT size=2 face="serif">. In addition to the Base Salary, Executive will participate in the Venture Bank Annual
Incentive Plan (and any successor plans) and will be eligible to receive an annual bonus at a level pursuant to a formula determined by Employer from time to time based on factors</FONT></P>
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<FONT size=2 face="serif">including, but not limited to, the quality of Executive's performance of Executive's assigned duties and the pre-tax profits of the Bank. The Executive's bonus for 2005 will not be less than &#36;30,000. </FONT></P>
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<FONT size=2 face="serif">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  (c) </FONT><U><FONT size=2 face="serif">Other benefits</FONT></U><FONT size=2 face="serif">. During the term of this Agreement, Executive shall be entitled to receive all employee benefits Employer generally provides to
it's Executives including the following benefits: medical, dental, vision, life insurance, KSOP, voluntary life insurance, long-term disability insurance, and other benefits as outlined in Employer's Personnel Policy and Procedures Manual and as
provided to regular full-time employees of Employer.</FONT></P>
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<B><FONT size=2 face="serif">  </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d) </FONT><U><FONT size=2 face="serif">Relocation Expenses. </FONT></U><FONT size=2 face="serif">The Executive shall be entitled to reimbursement in full of all reasonable expenses
up to a maximum of &#36;7,500 incurred in relocating to within 20 miles of DuPont, Washington, provided Executive relocates and incurs the related expenses by September 30, 2006.</FONT></P>
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<FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6. </FONT><U><FONT size=2 face="serif">Reimbursable Expenses</FONT></U><FONT size=2 face="serif">. Executive is authorized to receive reimbursement for reasonable expenses incurred in performing his or her duties and in
promoting the business of Employer, provided that such expenses are incurred and accounted for in accordance with the policies and procedures established from time to time by Employer. </FONT></P>
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<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7. </FONT><U><FONT size=2 face="serif">Vacation</FONT></U><FONT size=2 face="serif">. Executive shall be entitled to paid vacation according to the Bank's Personnel Policy, but no less than 20 days of paid vacation each year. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8. </FONT><U><FONT size=2 face="serif">Definition of "Cause"</FONT></U><FONT size=2 face="serif">. Cause for termination of employment means any one or more of the following: </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B><FONT size=2 face="serif">(a) Willful misfeasance, gross negligence, or conduct involving dishonesty in the performance of Executive's duties, as reasonably determined by either
of the Boards of Directors or by the CEO;</FONT></P>
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<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
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<FONT size=2 face="serif">(b)</FONT>
<FONT size=2 face="serif">Conviction of any felony or of a crime in connection with Executive's duties;</FONT> </P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size=2 face="serif">(c)</FONT>
<FONT size=2 face="serif">Conduct significantly harmful to Employer, as reasonably determined by either of the</FONT>
<FONT size=2 face="serif">Boards of Directors, including but not limited to intentional violation of law or of any significant policy or procedure of the Employer;</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT size=2 face="serif">&nbsp;(d) Refusal or failure to act in accordance with a stipulation, requirement, or directive of either of the Boards of Directors or the Supervisor (provided such directive is lawful);</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e) Failure to faithfully or diligently perform any of the duties of Executive's employment which are specified in this Agreement, articulated by the CEO, or are usual and customary duties of
Executive's employment, if Executive has not corrected the problem or formulated a plan for its correction with the CEO (if such failure is not susceptible to immediate correction) within thirty (30) days after notice to Executive; or </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp; (f) Removal</FONT><B><FONT size=2 face="serif"> </FONT></B><FONT size=2 face="serif">of Executive from office or permanent prohibition of Executive from participating in the conduct of
Employer's affairs by an order issued by a bank regulatory authority. </FONT></P>
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<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><FONT size=2 face="serif">&nbsp;&nbsp; 9. </FONT><U><FONT size=2 face="serif">Definition of "Good Reason"</FONT></U><FONT size=2 face="serif">. Good Reason for Executive's resignation means any one or more of the following occurs without Executive's consent:</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;<B><FONT size=2 face="serif"> </FONT></B><FONT size=2 face="serif">(a) Reduction of Executive's salary or elimination of any compensation or benefit plan benefiting Executive unless such reduction or elimination is
applicable to all Executives; or </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">&nbsp;&nbsp; (b) A relocation or transfer of Executive's principal place of employment that would require Executive to commute on a regular basis more than 30 miles each way from the main business office
of the Bank as of the date of this Agreement (or the new administrative office in Dupont). </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp; 10. </FONT><U><FONT size=2 face="serif">Termination</FONT></U><FONT size=2 face="serif">.  Executive's employment may be terminated as described in this Section, in which event Executive will
receive payments for all Base Salary and benefits accrued as of the date of Executive's termination, which shall be paid in accordance with applicable law.  All compensation and benefits shall terminate as of the date of termination, except as
otherwise provided in this Agreement. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">&nbsp; (a) </FONT><U><FONT size=2 face="serif">For Cause or Without Good Reason</FONT></U><FONT size=2 face="serif">. If Executive's employment is terminated by Employer for Cause or by Executive
without Good Reason, Executive will have no right to receive compensation or other benefits after termination under this Section. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">&nbsp; (b) </FONT><U><FONT size=2 face="serif">Without Cause or for Good Reason</FONT></U><FONT size=2 face="serif">.  If Executive's employment is terminated by Employer without Cause, or by
Executive for Good Reason, the Bank will pay Executive a severance benefit equal to 12</FONT><B><FONT size=2 face="serif"> </FONT></B><FONT size=2 face="serif">months of Base Salary, based on the highest Base Salary paid to Executive in the
preceding twelve months (the "Severance Benefit"), subject to statutory payroll deductions.  The Severance Benefit will be paid in installments over the number of months of the continued Base Salary (the "Severance Benefit Period"), starting the
month following termination, in accordance with Employer's standard payroll procedures. Receipt of the Severance Benefit is conditioned on Executive having executed the Separation Agreement in substantially the form attached hereto as
</FONT><U><FONT size=2 face="serif">Exhibit A</FONT></U><FONT size=2 face="serif"> and the revocation period having expired without Executive having revoked the Separation Agreement. Receipt and continued receipt of the Severance Benefit is further
conditioned on Executive not being in violation of any material term of this Agreement or in violation of any material term of the Separation Agreement. </FONT><B><FONT size=2 face="serif"> </FONT></B></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">&nbsp; (c) </FONT><U><FONT size=2 face="serif">Death or Disability</FONT></U><FONT size=2 face="serif">. This Agreement terminates if Executive dies or if Executive is unable to perform Executive's
duties and obligations under this Agreement for a period of 90 calendar days as a result of a physical or mental disability arising at any time during the term of the Agreement, unless with reasonable accommodation Executive could continue to
perform his duties and making these accommodations would not cause an undue hardship to the Bank. If termination occurs under this Section 10(c), Executive or his estate will be entitled to receive only the compensation and benefits earned and
expenses reimbursable through the date this Agreement terminated. </FONT></P>
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<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font>
<FONT size=2 face="serif">&nbsp; (d)</FONT>
<U><FONT size=2 face="serif">Termination Related to Change in Control</FONT></U><FONT size=2 face="serif">. A "Change in Control" occurs if: (i) the Company merges or consolidates with another corporation and as a result less</FONT>
<FONT size=2 face="serif">than 50% of the combined voting power of the resulting corporation immediately after the merger or consolidation is held by persons who were the holders of the Company's voting securities immediately before the merger or
consolidation; or   (ii) any person, entity, or group of persons or entities, other than through merger or consolidation, acquires a majority of the Company's outstanding stock or substantially all of the Company's assets. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">&nbsp; Executive will be entitled to a Change in Control Benefit (defined below), in lieu of any other severance benefit provided herein, if there is a Change of Control and (1) within one year
following the effective date of such Change of Control, Employer terminates Executive's employment without Cause or</FONT></P>
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<FONT size=2 face="serif">Executive terminates Executive's employment for Good Reason or (2) at any time during the period starting 180 days prior to the public announcement of the transaction that will result in a Change of Control and ending at
the Change in Control, Employer terminates Executive's employment without Cause. The Change in Control Benefit equals 12 months of Base Salary, based on Executive's Base Salary at termination or at the Change in Control, whichever is greater. The
Change in Control Benefit will be paid in installments over the number of months of the continued Base Salary (the "Severance Benefit Period"), starting the month following termination, in accordance with Employer's standard payroll procedures and
subject to statutory payroll deductions. Receipt of the Change in Control Benefit is conditioned on Executive having executed the Separation Agreement in substantially the form attached hereto as </FONT><U><FONT size=2 face="serif">Exhibit
A</FONT></U><FONT size=2 face="serif"> and the revocation period having expired without Executive having revoked the Separation Agreement. Receipt and continued receipt of the Change in Control Benefit is further conditioned on Executive not being
in violation of any material term of this Agreement or in violation of any material term of the Separation Agreement. </FONT><B><FONT size=2 face="serif"> </FONT></B></P>
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<FONT size=2 face="serif">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  (e) </FONT><U><FONT size=2 face="serif">"Excess Parachute Payment" Restrictions</FONT></U><FONT size=2 face="serif">. If the benefits under Section 10(d), either alone or together with other payments to which Executive is
entitled to receive from Employer, would constitute an "excess parachute payment" as defined in Section 280G of the Internal Revenue Code of 1986, as amended (the "Code"), these benefits shall be reduced to the largest amount that will result in no
portion of the benefits being subject to the excise tax imposed by Section 4999 of the Code. The determination of any reduction in the benefits pursuant to the foregoing provisions, shall be made by mutual agreement of Employer and Executive or if
no agreement is possible, by Executive's accountants. </FONT></P>
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<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f) </FONT><U><FONT size=2 face="serif">Limitation on Severance or Change in Control Benefit</FONT></U><FONT size=2 face="serif">. Notwithstanding any other provision in this Agreement, Employer shall make no payment of any benefit provided for herein to the extent that such payment would be prohibited by the provisions of Part 359 of the regulations of the Federal Deposit
Insurance Corporation (the "FDIC") as the same may be amended from time to time, and if such payment is so prohibited, Employer shall use its best efforts to secure the consent of the FDIC or other applicable banking agencies to make such payments
in the highest amount permissible, up to the amount provided for in this Agreement.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size=2 face="serif">(g) </FONT><U><FONT size=2 face="serif">Return of Bank Property</FONT></U><FONT size=2 face="serif">.  If and when Executive ceases for any reason to be employed by Employer, Executive must return to Employer all keys, pass cards, identification cards and any other property of Employer.  At the same time, Executive also must return to Employer all originals and copies
(whether in hard copy, electronic or other form) of any documents, drawings, notes, memoranda, designs, devices, diskettes, tapes, manuals, and specifications which constitute proprietary information or material of Employer. The obligations in this
paragraph include the return of documents and other materials that may be in Executive's desk at work, Executive's car or place of residence, or in any other location under Executive's control.</FONT></P>
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<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11.</FONT>&nbsp;
<U><FONT size=2 face="serif">Restrictive Covenants</FONT></U><FONT size=2 face="serif">.</FONT></P>
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<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) </FONT><U><FONT size=2 face="serif">Confidential Information</FONT></U><FONT size=2 face="serif">. Executive acknowledges that in the course of Executive's</FONT>
<FONT size=2 face="serif">employment, Executive will have or obtain knowledge of confidential information and other secrets concerning Employer and its business, plans and strategies, its actual and prospective customers, and other matters which are
valuable to Employer and which Employer does not want disclosed. Executive will not during and after the Term, disclose to any other person or entity any confidential information concerning Employer, its business operations or customers, or use for
his own purposes or permit or assist others in the use of such confidential information, unless (i) either of the Boards of Directors consents to the use or disclosure of the information, (ii) the use or disclosure is consistent with Executive's
duties under this</FONT></P>
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<FONT size=2 face="serif">Agreement, or (iii) disclosure is required by law or court order. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) </FONT><U><FONT size=2 face="serif">Noncompetition</FONT></U><FONT size=2 face="serif">. Executive shall be subject to the noncompetition covenant in this Section 11(b), the duration of
which (the "Noncompete Period") depends on the circumstances of the Executive's termination.  If the Executive is terminated under Section 10(a) or Section 10(c), the Noncompete Period is twelve (12) months following termination.  If the Executive
is terminated under Section 10(b) or 10(d), the Noncompete Period equals the Severance Benefit Period as defined under Section 10(b) or Section 10(d), respectively, regardless of whether the Executive fails to perfect or forfeits the right to the
Severance Benefit or Change in Control Benefit. During the Noncompete Period, Executive shall not be employed or act in any capacity, either directly or indirectly or otherwise "participate" (as defined below) in any business conducting any of the
types of business conducted by Employer at the time of termination of employment in any market area delineated in Employer's CRA (Community Reinvestment Act of 1977) Plan at the time of termination. For purposes of this Agreement, the term
"participate" includes, without limitation, any direct or indirect interest in any such business, whether as an Executive, director, consultant, employee, partner, sole proprietor, stockholder, owner, or otherwise, other than by ownership of less
than one percent (1%) of the stock of any financial institution providing services in the areas delineated in Employer's CRA plan. The term "participate" shall also include participation, planning, or consulting for any startup financial
organization.</FONT></P>
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<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) </FONT><U><FONT size=2 face="serif">Nonsolicitation</FONT></U><FONT size=2 face="serif">.  During employment and for a period of 24 months</FONT><B><FONT size=2 face="serif"> </FONT></B><FONT size=2
face="serif">following termination (whether voluntary or not), Executive will not solicit any customer of Employer or of any of Employer's subsidiaries for services or products then provided by Employer or any of its subsidiaries. For purpose of
this Section, "customers" are defined as (i) all customers services by Employer or any of Employer's subsidiaries at any time within 12 months before termination of Executive's employment, (ii) all customers and potential customers whom Employer or
Employer's subsidiaries, with the knowledge or participation of Executive, actively solicited at any time 12 months before termination of Executive's employment, and (iii) all successors, owners, directors, partners and management personnel of the
customers described in (i) or (ii).</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size=2 face="serif">(d) </FONT><U><FONT size=2 face="serif">Nonraiding of Employees</FONT></U><FONT size=2 face="serif">. Executive recognizes that the Employer's workforce is a vital part of its business; therefore, Executive agrees that for 24 months following termination,</FONT><B><FONT size=2 face="serif"> </FONT></B><FONT size=2 face="serif">Executive will not directly or indirectly solicit
any employee to leave his or her employment with Employer or any of Employer's subsidiaries.  This includes that Executive will not (i) disclose to any third party the names, backgrounds, or qualifications of any of the employees or otherwise
identify them as potential candidates for employment, or (ii) personally or through any other person approach, recruit, interview or otherwise solicit employees to work for any other employer. For purposes of this Section, employees include all
employees working for Employer or any of Employer's subsidiaries at the time of termination of Executive's employment.</FONT><FONT size=2 face="serif"> </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(e) </FONT><U><FONT size=2 face="serif">Injunctive Relief</FONT></U><FONT size=2 face="serif">.  Executive acknowledges that it is impossible to measure in money the damages that will accrue
to Employer if Executive fails to observe the covenants in this Section 11 (the "Restrictive Covenants"); therefore, the Restrictive Covenants may be enforced by an action at law for damages and by an injunction to prohibit the restricted activity.
Executive hereby waives the claim or defense that an adequate remedy at law is available to Employer.  Nothing set forth herein shall prohibit Employer from pursuing all remedies available to it.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(f) </FONT><U><FONT size=2 face="serif">Reasonableness</FONT></U><FONT size=2 face="serif">.  The parties agree that this Agreement in its entirety, and in particular the Restrictive
Covenants, are reasonable both as to time and as to area. The parties additionally agree (i) that the Restrictive Covenants are necessary for the protection of Employer's business and goodwill;</FONT></P>
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<FONT size=2 face="serif">(ii) that the Restrictive Covenants are not any greater than are reasonably necessary to secure Employer's business and goodwill; and (iii) that the degree of injury to the public due to the loss of the service and skill of
Executive or the restrictions placed upon Executive's opportunity to make a living with Executive's skills upon enforcement of said restraints, does not and will not warrant non-enforcement of said restraints. The parties agree that if any portion
of the Restrictive Covenants is adjudged unreasonably broad, then the parties authorize said court or arbitrator to narrow same so as to make it reasonable, given all relevant circumstances, and to enforce the same. </FONT></P>
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<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (g) </FONT><U><FONT size=2 face="serif">Survival</FONT></U><FONT size=2 face="serif">. This Section 11 shall survive the termination of this Agreement.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12. </FONT><U><FONT size=2 face="serif">Creative Work</FONT></U><FONT size=2 face="serif">. Executive agrees that all creative work and work product, including but not limited to all
technology, business management tools, processes, software, patents, trademarks, and copyrights developed by Executive during employment with Employer, regardless of when or where such work or work product was produced, constitutes work made for
hire, all rights of which are owned by Employer. Executive hereby assigns to the Company and the Bank all rights, title, and interest, whether by way of copyrights, trade secret, trademark, patent, or otherwise, in all such work or work product,
regardless of whether the same is subject to protection by patent, trademark, or copyright laws. </FONT></P>
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<FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13. </FONT><U><FONT size=2 face="serif">Arbitration</FONT></U><FONT size=2 face="serif">. Any dispute arising under this agreement shall be settled by final, binding, private arbitration in Thurston County, Washington,
unless the arbitrator is unwilling to travel to Thurston County, in which case the arbitration will be held in Seattle, Washington. This includes disputes about the meaning of the agreement and performance under the agreement.  The arbitration will
be conducted by Judicial Dispute Resolution LLC with the arbitrator appointed and the arbitration conducted in accordance with Judicial Dispute Resolution rules and procedures. The arbitrator will have full authority to determine all issues,
including arbitrability. The arbitrator's award may be reduced to final judgment in Thurston County Superior Court. Each party shall bear its own costs in connection with the arbitration and shall share equally the fees and expenses of the
arbitrator, except that the arbitrator may award the prevailing party fees and costs. Notwithstanding the foregoing, an aggrieved party may seek a temporary restraining order or preliminary injunction in Thurston County Superior Court to preserve
the status quo during the arbitration proceeding, provided however, that the party seeking relief agrees that ultimate resolution of the dispute will still be determined through arbitration and not through court process. The filing of the court
action for injunctive relief shall not hinder or delay the arbitration process.</FONT><B><FONT size=2 face="serif"> </FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp; <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14. </FONT><U><FONT size=2 face="serif">Expenses/Attorneys' Fees</FONT></U><FONT size=2 face="serif">. The prevailing party shall be awarded all costs and expenses of the proceeding, including
but not limited to, attorneys' fees, filing and service fees, witness fees and arbitrator's fees. If arbitration is commenced, the arbitrator will have full authority and complete discretion to determine the "prevailing party" and the amount of
costs and expenses to be awarded. </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15. </FONT><U><FONT size=2 face="serif">Notices</FONT></U><FONT size=2 face="serif">. Any notice to be delivered under this Agreement shall be given in writing and delivered, personally or by certified mail, postage prepaid, addressed to the Employer or to Executive at their last known addresses.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16. </FONT><U><FONT size=2 face="serif">Governing Law</FONT></U><FONT size=2 face="serif">.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Washington.</FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17. </FONT><U><FONT size=2 face="serif">Waiver/Amendment</FONT></U><FONT size=2 face="serif">. This Agreement may not be amended, released, discharged,</FONT></P>
<P>
<FONT size=2 face="serif">abandoned, changed, or modified in any manner, except by an instrument in writing signed by each of the parties hereto. The failure of any party hereto to enforce at any time any of the provisions of this Agreement shall in
no way be construed to be a waiver of any such provision, nor in any way to affect the validity of this Agreement or any part thereof or the right of any party thereafter to enforce each and every such</FONT></P>
<P align="center">
<FONT size=2 face="serif">6</FONT></P>

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<P>
<FONT size=2 face="serif">provision. No waiver or any breach of this Agreement shall be held to be a waiver of any other or subsequent breach. </FONT></P>
<P>
&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18. </FONT><U><FONT size=2 face="serif">Severability</FONT></U><FONT size=2 face="serif">. If any provision of this Agreement shall be held by a court or arbitrator to be invalid or
unenforceable, the remaining provisions shall continue to be fully effective. If any part of this Agreement is held to be unenforceable as written, it shall be enforced to the maximum extent allowed by applicable law. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19. </FONT><U><FONT size=2 face="serif">Entire Agreement</FONT></U><FONT size=2 face="serif">.  This Agreement represents the entire employment agreement between the parties regarding the
subject matter hereof and together with Employer's employee handbook governs the terms of Executive's employment.  Where there is a conflict between this Agreement and the employee handbook, the terms of this Agreement shall govern. This Agreement
supersedes any other prior oral or written employment agreement between the parties on the subject matter hereof. This Agreement does not supersede any incentive compensation agreement (including stock option agreements) entered into separately by
the parties to this Agreement. </FONT></P>
<P>
<FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20. </FONT><U><FONT size=2 face="serif">Assignment</FONT></U><FONT size=2 face="serif">. Executive shall not assign or transfer any of Executive's rights pursuant to this Agreement, wholly or partially, to any other person
or to delegate the performance of its duties under the terms of this Agreement. Upon Executive's death, Executive's rights under this agreement shall inure to Executive's heirs, executors, administrators or assigns. The rights and obligations of
Employer under this Agreement shall inure to the benefit of and be binding in each and every respect upon the direct and indirect successors and assigns of Employer, regardless of the manner in which the successors or assigns succeed to the
interests or assets of Employer. This Agreement shall not be terminated by the voluntary or involuntary dissolution of Employer, by any merger, consolidation or acquisition where Employer is not the surviving corporation, by any transfer of all or
substantially all of Employer's assets, or by any other change in Employer's structure or the manner in which Employer's business or assets are held.  Executive's employment shall not be deemed terminated upon the occurrence of one of the foregoing
events. In the event of any merger, consolidation or transfer of assets, this Agreement shall be binding upon and shall inure to the benefit of the surviving corporation or the corporation to which the assets are transferred. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21. </FONT><U><FONT size=2 face="serif">Survival</FONT></U><FONT size=2 face="serif">.  If any benefits provided to Executive under this Agreement are still owed or claims under the Agreement
are still pending, at the time of termination of this Agreement, this Agreement shall continue in force with respect to those obligations or claims, until such benefits are paid in full or claims are resolved in full. The Restrictive Covenants and
dispute resolution provisions of this Agreement shall survive after termination of this Agreement, and shall be enforceable regardless of any claim Executive may have against Employer. </FONT></P>
<P align="center">
<FONT size=2 face="serif">7</FONT></P>

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<P>
&nbsp;&nbsp;&nbsp;&nbsp; <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 22. </FONT><U><FONT size=2 face="serif">ADVICE OF COUNSEL</FONT></U><FONT size=2 face="serif">. </FONT><B><FONT size=2 face="serif">Executive acknowledges that, in executing this Agreement,
Executive has had the opportunity to seek the advice of independent legal counsel, and has read and understood all of the terms and provisions of this Agreement. This Agreement shall not be construed against any party be reason of the drafting or
preparation hereof. </FONT></B></P>
<P>
<FONT size=2 face="serif">IN WITNESS WHEREOF, the parties have signed this Agreement effective on the day and year first above written. </FONT></P>
<TABLE width="106"><TR><TD nowrap width="100">
<FONT size=2 face="serif">EXECUTIVE:</FONT><BR>
</TD></TR></TABLE>
<TABLE width="393">
  <tr>
    <TD width=72>&nbsp;</TD><TD nowrap width="311">
<FONT size=2 face="serif">___________________________________</FONT><BR>
<FONT size=2 face="serif"><br>
___________________________________</FONT><BR>
<B><FONT size=2 face="serif">Sandra L. Sager</FONT></B><BR>
</TD>
  </tr>
  <TR><TD width=72>&nbsp;</TD><TD nowrap width="311">
&nbsp;</TD></TR></TABLE>
<TABLE><TR><TD width=72>&nbsp;</TD><TD nowrap>
<FONT size=2 face="serif">VENTURE FINANCIAL GROUP, INC.</FONT><BR>
</TD></TR></TABLE>
<TABLE width="394"><TR><TD width=72>&nbsp;</TD><TD nowrap width="312">
<FONT size=2 face="serif">By: ___________________________________</FONT><BR>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; James F. Arneson, President </FONT><BR>
</TD></TR></TABLE>
<TABLE><TR><TD width=72>&nbsp;</TD><TD nowrap>
<FONT size=2 face="serif">VENTURE BANK</FONT><BR>
</TD></TR></TABLE>
<TABLE width="400"><TR><TD width=72>&nbsp;</TD><TD nowrap width="318">
<FONT size=2 face="serif">By: ___________________________________</FONT><BR>
<FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; James F. Arneson, President/CEO </FONT><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">8</FONT></P>

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<A name="page_12"></A>

<P align="center">
<B><U><FONT size=2 face="serif">Exhibit A</FONT></U></B><p>
</P>
<P align="center">
<B><FONT size=2 face="serif">EMPLOYMENT SEPARATION AGREEMENT AND RELEASE OF CLAIMS</FONT></B></P>
<P>
<FONT size=2 face="serif"> This is a confidential agreement (this "Separation Agreement") between you,&nbsp; _______________, and us, Venture Financial Group, Inc. and Venture Bank (collectively, "Venture"). This Separation Agreement is dated for
reference purposes _____________, 20___, which is the date we delivered this Separation Agreement to you for your consideration.</FONT></P>
<P>
<B><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1. Termination of Employment. </FONT></B><FONT size=2 face="serif">Your employment terminates [or was terminated] on _______________, 20___ (the "Separation Date").
</FONT></P>
<P>
<B><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.  Payments.  </FONT></B><FONT size=2 face="serif">In exchange for your agreeing to the release of claims and other terms in this Separation Agreement, we will pay you the Severance Benefit specified in Section 10(b)
or the Change in Control Benefit in Section 10(d), as appropriate, of the Agreement between you and Employer dated __________________ (the "Employment Agreement"). Such provisions of the Employment Agreement are incorporated herein by
reference. You acknowledge that we are not obligated to make these payments to you unless you comply with the noncompetition provision in Section 11(b) of the Employment Agreement, which is incorporated herein by reference and otherwise comply with
the material terms of the Employment Agreement and of this Separation Agreement. </FONT></P>
<P>
<B><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.  COBRA Continuation Coverage.  </FONT></B><FONT size=2 face="serif">Your normal employee participation in Venture's group health coverage will terminate on the Separation Date. Continuation of group health coverage
thereafter will be made available to you and your dependents pursuant to federal law (COBRA). Continuation of group health coverage after the Separation Date is entirely at your expense, as provided under COBRA. </FONT></P>
<P>
<B><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.  Termination of Benefits.</FONT></B><FONT size=2 face="serif">  Except as provided in Section 3 above, your participation in all employee benefit plans and programs ended on the Separation Date. Your rights under any
pension benefit or other plans in which you may have participated will be determined in accordance with the written plan documents governing those plans. </FONT></P>
<P>
<B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5. Full Payment</FONT></B><FONT size=2 face="serif">. You acknowledge having received full payment of all compensation of any kind (including wages, salary, vacation, sick leave,
commissions, bonuses and incentive compensation) that you earned as a result of your employment by us. </FONT></P>
<P>
<B><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.  No Further Compensation.  </FONT></B><FONT size=2 face="serif">Any and all agreements to pay you bonuses or other incentive compensation are terminated.  You understand and agree that you have no right to receive
any further payments for bonuses or other incentive compensation. We owe no further compensation or benefits of any kind, except as described in Section 2 above. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size=2 face="serif">7. Release of Claims.</FONT></B></P>
<P>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)</FONT><B><FONT size=2 face="serif"> </FONT></B><FONT size=2 face="serif">You hereby release (i) Venture and its subsidiaries, affiliates, and benefit plans, (ii) each of
Venture's past and present shareholders, executives, directors, agents, employees, representatives, administrators, fiduciaries and attorneys, and (iii) the predecessors, successors, transferees and assigns of each of the persons and entities
described in this sentence, from any and all claims of any kind, known or unknown, that arose on or before the date you signed this Separation Agreement. </FONT></P>
<P>
<FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) The claims you are releasing include, without limitation, claims of wrongful termination, claims of constructive discharge, claims arising out of employment agreements, representations or policies related to your
employment, claims arising under federal, state or local laws or ordinances prohibiting discrimination or harassment or requiring accommodation on the basis of age, race, color, national origin, religion, sex, disability,</FONT></P>
<P align="center">
<FONT size=2 face="serif">9</FONT></P>

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<P>
<FONT size=2 face="serif">marital status, sexual orientation or any other status, claims of failure to accommodate a disability or religious practice, claims for violation of public policy, claims of retaliation, claims of failure to assist you in
applying for future position openings, claims of failure to hire you for future position openings, claims for wages or compensation of any kind (including overtime claims), claims of tortious interference with contract or expectancy, claims of fraud
or negligent misrepresentation, claims of breach of privacy, defamation claims, claims of intentional or negligent infliction of emotional distress, claims of unfair labor practices, claims arising out of any claimed right to stock or stock options,
claims for attorneys' fees or costs, and any other claims that are based on any legal obligations that arise out of or are related to your employment relationship with us. </FONT></P>
<P>
<FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) You specifically waive any rights or claims that you may have under the Title 49 of the Revised Code of Washington, the Civil Rights Act of 1964 (including Title VII of that Act), the Equal Pay Act of 1963, the Age
Discrimination in Employment Act of 1967 (ADEA), the Americans with Disabilities Act of 1990 (ADA), the Fair Labor Standards Act of 1938 (FLSA), the Family and Medical Leave Act of 1993 (FMLA), the Worker Adjustment and Retraining Notification Act
(WARN), the Employee Retirement Income Security Act of 1974 (ERISA), the National Labor Relations Act (NLRA), and all similar federal, state and local laws. </FONT></P>
<P>
<FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d) You agree not to seek any personal recovery (of money damages, injunctive relief or otherwise) for the claims you are releasing in this Separation Agreement, either through any complaint to any governmental agency or
otherwise.  You agree never to start any lawsuit or arbitration asserting any of the claims you are releasing in this Separation Agreement. You represent and warrant that you have not initiated any complaint, charge, lawsuit or arbitration involving
any of the claims you are releasing in this Separation Agreement. Should you apply for future employment with Venture, Venture has no obligation to consider you for future employment. </FONT></P>
<P>
<FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e) You represent and warrant that you have all necessary authority to enter into this Separation Agreement (including, if you are married, on behalf of your marital community) and that you have not transferred any
interest in any claims to your spouse or to any third party. </FONT></P>
<P>
<FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f) This Separation Agreement does not affect your rights, if any, to receive pension plan benefits, medical plan benefits, unemployment compensation benefits or workers' compensation benefits. This Separation Agreement
also does not affect your rights, if any, under agreements, bylaw provisions, insurance or otherwise, to be indemnified, defended or held harmless in connection with claims that may be asserted against you by third parties. </FONT></P>
<P>
<FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (g) You understand that you are releasing potentially unknown claims, and that you have limited knowledge with respect to some of the claims being released. You acknowledge that there is a risk that, after signing this
Separation Agreement, you may learn information that might have affected your decision to enter into this Separation Agreement. You assume this risk and all other risks of any mistake in entering into this Separation Agreement. You agree that this
release is fairly and knowingly made. </FONT></P>
<P>
<FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (h) You are giving up all rights and claims of any kind, known or unknown, except for the rights specifically given to you in this Separation Agreement. </FONT></P>
<P>
<FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><B><FONT size=2 face="serif">8. No Admission of Liability. </FONT></B><FONT size=2 face="serif">Neither this Separation Agreement nor the payments made under this Separation Agreement are an admission of liability
or wrongdoing by Venture. </FONT></P>
<P>
<B><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9. Venture Materials. </FONT></B><FONT size=2 face="serif">You represent and warrant that you have, or no later than the Separation Date will have, returned all keys, credit cards, documents and other materials that
belong to us, in accordance with Section 10(h) of the Employment Agreement, which is incorporated herein by reference. </FONT></P>
<P align="center">
<FONT size=2 face="serif">10</FONT></P>

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<A name="page_14"></A>

<P>
<B><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.  Nondisclosure Agreement.  </FONT></B><FONT size=2 face="serif">You will comply with the covenant regarding confidential information in Section 11(a) of the Employment Agreement, which covenant is incorporated
herein by reference. </FONT></P>
<P>
<B><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11. No Disparagement. </FONT></B><FONT size=2 face="serif">You may not disparage Venture or Venture's business or products, and may not encourage any third parties to sue Venture.</FONT></P>
<P>
<B><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12. Cooperation Regarding Other Claims</FONT></B><FONT size=2 face="serif">. If any claim is asserted by or against Venture as to which you have relevant knowledge, you will reasonably cooperate with us in the
prosecution or defense of that claim, including by providing truthful information and testimony as reasonably requested by us. </FONT></P>
<P>
<B><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13. Noncompetition; Nonsolicitation; No interference. </FONT></B><FONT size=2 face="serif">You will comply with Sections 11(a), (b) (c), and (d) of the Employment Agreement, incorporated herein by reference, and Venture
will have the right to enforce those provisions under the terms of Section 11(e) of the Employment Agreement, incorporated herein by reference.  Following the expiration of the respective covenants, you will not, apart from good faith competition,
interfere with Venture's relationships with customers, employees, vendors, or others. </FONT></P>
<P>
<B><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14.  Independent Legal Counsel.  </FONT></B><FONT size=2 face="serif">You are advised and encouraged to consult with an attorney before signing this Separation Agreement. You acknowledge that you have had an adequate
opportunity to do so. </FONT></P>
<P>
<B><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15. Consideration Period. </FONT></B><FONT size=2 face="serif">You have 21 days from the date this Separation Agreement is given to you to consider this Separation Agreement before signing it. You may use as much or as
little of this 21-day period as you wish before signing. If you do not sign and return this Separation Agreement within this 21-day period, you will not be eligible to receive the benefits described in this Separation Agreement.</FONT></P>
<P>
<B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16. Revocation Period and Effective Date</FONT></B><FONT size=2 face="serif">. You have 7 calendar days after signing this Separation Agreement to revoke it. To revoke this Separation
Agreement after signing it, you must deliver a written notice of revocation to Venture's President before the 7-day period expires. This Separation Agreement shall not become effective until the 8</FONT><SUP><FONT size=2
face="serif">th</FONT></SUP><FONT size=2 face="serif"> calendar day after you sign it. If you revoke this Separation Agreement it will not become effective or enforceable and you will not be entitled to the benefits described in this Separation
Agreement. </FONT></P>
<P>
<B><FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17.  Governing Law.  </FONT></B><FONT size=2 face="serif">This Separation Agreement is governed by the laws of the State of Washington that apply to contracts executed and to be performed entirely within the State of
Washington. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size=2 face="serif">&nbsp;18. Dispute Resolution.</FONT></B></P>
<P>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) </FONT><U><FONT size=2 face="serif">Arbitration</FONT></U><FONT size=2 face="serif">. Any dispute arising under this agreement shall be settled by final, binding, private
arbitration in Thurston County, Washington, unless the arbitrator is unwilling to travel to Thurston County, in which case the arbitration will be held in Seattle, Washington. This includes disputes about the meaning of the agreement and performance
under the agreement.  The arbitration will be conducted by Judicial Dispute Resolution LLC with the arbitrator appointed and the arbitration conducted in accordance with Judicial Dispute Resolution rules and procedures.  The arbitrator will have
full authority to determine all issues, including arbitrability. The arbitrator's award may be reduced to final judgment in Thurston County Superior Court. Each party shall bear its own costs in connection with the arbitration and shall share
equally the fees and expenses of the arbitrator, except that the arbitrator may award the prevailing party fees and costs. Notwithstanding the foregoing, an aggrieved party may seek a temporary restraining order or preliminary injunction in Thurston
County Superior Court to preserve the status quo during the arbitration proceeding, provided however, that the party seeking relief agrees that ultimate resolution of the dispute will</FONT></P>
<P align="center">
<FONT size=2 face="serif">11</FONT></P>

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<P>
<FONT size=2 face="serif">still be determined through arbitration and not through court process. The filing of the court action for injunctive relief shall not hinder or delay the arbitration process.</FONT><B><FONT size=2 face="serif">
</FONT></B></P>
<P>
<B><FONT size=2 face="serif"> </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) </FONT><U><FONT size=2 face="serif">Expenses/Attorneys' Fees</FONT></U><FONT size=2 face="serif">. The prevailing party shall be awarded all costs and expenses of the proceeding,
including but not limited to, attorneys' fees, filing and service fees, witness fees and arbitrator's fees. If arbitration is commenced, the arbitrator will have full authority and complete discretion to determine the "prevailing party" and the
amount of costs and expenses to be awarded. </FONT></P>
<P>
<FONT size=2 face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><B><FONT size=2 face="serif">19. Saving Provision</FONT></B><FONT size=2 face="serif">. If any part of this Separation Agreement is held to be unenforceable, it shall not affect any other part. If any part of this
Separation Agreement is held to be unenforceable as written, it shall be enforced to the maximum extent allowed by applicable law. </FONT></P>
<P>
<B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20.</FONT></B><FONT size=2 face="serif">  </FONT><B><FONT size=2 face="serif">Final and Complete Agreement</FONT></B><FONT size=2 face="serif">. Except for the Employment Agreement to
the extent it is expressly incorporated herein by reference, this Separation Agreement is the final and complete expression of all agreements between us on all subjects and supersedes and replaces all prior discussions, representations, agreements,
policies and practices. You acknowledge you are not signing this Separation Agreement relying on anything not set out herein. </FONT></P>
<TABLE border=0 cellspacing=1 cellpadding=0 width="640">
<TR valign="bottom">
	<TD width=298 nowrap align=left>
<B><FONT size=2 face="serif">Venture Financial Group, Inc.</FONT></B>&nbsp; <br>
&nbsp;</TD>
	<TD width=4>
&nbsp;	</TD>
	<TD width=334 nowrap align=left>
<B><FONT size=2 face="serif">Venture Bank</FONT></B>&nbsp; <br>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD width=298 nowrap align=left>
<FONT size=2 face="serif">By:_______________________________</FONT>&nbsp; <br>
&nbsp;</TD>
	<TD width=4>
&nbsp;	</TD>
	<TD width=334 nowrap align=left>
<FONT size=2 face="serif">By:_______________________________</FONT>&nbsp; <br>
&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD width=298 nowrap align=left>
<FONT size=2 face="serif">Title:______________________________</FONT>&nbsp;
	</TD>
	<TD width=4>
&nbsp;	</TD>
	<TD width=334 nowrap align=left>
<FONT size=2 face="serif">Title:______________________________</FONT>&nbsp;
	</TD>
</TR>
</TABLE><BR>
<P>
<B><FONT size=2 face="serif">I, the undersigned, having been advised to consult with an attorney, hereby agree to be bound by this Separation Agreement and confirm that I have read and understood each part of it.</FONT></B><FONT size=2 face="serif">
</FONT></P>
<TABLE>
  <tr>
    <TD nowrap>
<FONT size=2 face="serif">_________________________________________</FONT><BR>
&nbsp;</TD>
  </tr>
  <TR><TD nowrap>
<FONT size=2 face="serif">_________________________________________</FONT><BR>
<FONT size=2 face="serif">Printed Name </FONT><BR>
</TD></TR></TABLE>
<TABLE><TR><TD nowrap>
<FONT size=2 face="serif">_________________________________________</FONT><BR>
<FONT size=2 face="serif">Date </FONT><BR>
</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="serif">12</FONT>&nbsp;</P>

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