VENTURE FINANCIAL GROUP INC
EXHIBIT 10.1
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<p align="right"><b>EXHIBIT 10.1</b></p>
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<FONT size=2 face="serif">THIRD AMENDMENT TO </FONT><BR>
<FONT size=2 face="serif">VENTURE FINANCIAL GROUP, INC.</FONT><BR>
<FONT size=2 face="serif">EMPLOYMENT AGREEMENT</FONT><BR>
<FONT size=2 face="serif">Ken F. Parsons, Sr.</FONT></TD></TR></TABLE>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This THIRD AMENDMENT dated effective July 1, 2007 amends the Employment Agreement by and among Venture Financial Group, Inc., Venture Bank, and Ken F. Parsons, Sr. dated as of January 1, 2004,
as previously amended on April 20, 2005 and September 26, 2006 (the &#147;Employment Agreement&#148;).</FONT></P>
<FONT size=2 face="serif">1.</FONT>&nbsp;
	<FONT size=2 face="serif">Section 1 of the Employment Agreement is amended to read in its entirety:</FONT>&nbsp;
	<p>&nbsp;&nbsp;&nbsp;&nbsp; <FONT size=2 face="serif">&#147;1.</FONT>&nbsp;
	<U><FONT size=2 face="serif">Employment</FONT></U><FONT size=2 face="serif">. Parsons agrees to serve the Company as Chief Executive Officer, Chairman of the Board of Directors, and Director. Parsons also agrees to </FONT>&nbsp;
	<FONT size=2 face="serif">serve in other additionally associated capacities as may be assigned by the</FONT>&nbsp;<FONT size=2 face="serif">Company's Board of Directors (&#147;Board&#148;), the duties of which are consistent with</FONT>&nbsp;<FONT size=2 face="serif">those normally performed by a Chief Executive Officer, Chairman, or Director.</FONT>&nbsp;
	<FONT size=2 face="serif">The Board will appoint/elect Parsons to serve as Chief Executive Officer, and a member of the Executive Committee of the Company. Subject to eligibility and</FONT>&nbsp;<FONT size=2 face="serif">the Board members&#146; fiduciary duties, the Board will nominate Parsons as a</FONT>&nbsp;<FONT size=2 face="serif">Director of the Company and use their best efforts to have him appointed/elected.</FONT>&nbsp;
	<FONT size=2 face="serif">Upon election, the Board will appoint/elect Parsons to serve as Chairman, and a</FONT>&nbsp;<FONT size=2 face="serif">member of the Executive Committee of the Bank. Parsons shall remain in these</FONT>&nbsp;<FONT size=2 face="serif">positions through June 30, 2007 on a full-time basis, and then remain in the</FONT>&nbsp;<FONT size=2 face="serif">employee positions on a reduced hours basis until his retirement or until</FONT>&nbsp;<FONT size=2 face="serif">terminated as provided herein. In his positions, Parsons will continue to provide</FONT>&nbsp;<FONT size=2 face="serif">significant services to the Employer, including engaging in special projects and</FONT>&nbsp;<FONT size=2 face="serif">implementing strategic initiatives, at the direction of the Board of Directors. The</FONT>&nbsp;<FONT size=2 face="serif">parties agree that the reduction in service, as provided in this Section, is not</FONT>&nbsp;<FONT size=2 face="serif">intended to trigger any payment of benefits under The 2005 Venture Financial</FONT>&nbsp;<FONT size=2 face="serif">Group, Inc. Supplemental Executive Retirement Plan (the &#147;SERP&#148;).&#148;</FONT>&nbsp;
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<FONT size=2 face="serif">2.</FONT>&nbsp;
	<FONT size=2 face="serif">Section 3.A. of the Employment Agreement is amended to read in its entirety:</FONT>&nbsp;
	<p>&nbsp;&nbsp;&nbsp;&nbsp; <FONT size=2 face="serif">&#147;3.</FONT>&nbsp;
	<U><FONT size=2 face="serif">Compensation</FONT></U><FONT size=2 face="serif">. The Employer shall pay Parsons, as compensation</FONT>&nbsp;<FONT size=2 face="serif">for his full-time and part-time services during the term of employment:</FONT>&nbsp;
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<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>
<FONT size=2 face="serif">A.</FONT>&nbsp;
	<FONT size=2 face="serif">Commencing on January 1, 2004, the Employer shall</FONT>&nbsp;<FONT size=2 face="serif">pay Parsons a base compensation for full-time employment of not less than two</FONT>&nbsp;&nbsp;
	<FONT size=2 face="serif">hundred thirty-five thousand and two hundred dollars (&#36;235,200) per annum,</FONT>&nbsp;<FONT size=2 face="serif">which salary shall be payable in equal installments, at least monthly, as set forth</FONT>&nbsp;<FONT size=2 face="serif">in the Employer&#146;s Policy Manual. The Board may increase this base</FONT>&nbsp;<FONT size=2 face="serif">compensation in its discretion. After June 30, 2007, during his reduced hours</FONT>&nbsp;<FONT size=2 face="serif">employment, Parsons will be paid at the minimum rate of one hundred fifty</FONT>&nbsp;<FONT size=2 face="serif">thousand
dollars ($150,000) per annum.&#148; </FONT>
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<FONT size=2 face="serif">3.&nbsp;&nbsp; Section 7 of the Employment Agreement is amended to read in its entirety:</FONT></P>
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<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp; &#147;7. </FONT><U><FONT size=2 face="serif">Retirement</FONT></U><FONT size=2 face="serif">. Parsons may elect, with not less than six (6) months prior written notice to the Board, to retire on any date after he attains
age sixty-five, provided that he continues his employment with the Employer until his retirement date. Parsons will receive retirement benefits pursuant to the terms and conditions of the SERP.&#148;</FONT></P>
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<FONT size=2 face="serif">4.&nbsp;&nbsp; Section 9.B.(iii) shall be amended to read in its entirety&#148;</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size=2 face="serif">&#147;(iii) Fully vested rights to all stock options or restricted stock granted or awarded under the Plan and such benefits as are provided under any deferred compensation arrangements between
Parsons and the Employer, including the SERP, paid in accordance with the terms of those arrangements.&#148;</FONT></P>
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<FONT size=2 face="serif">5.&nbsp;&nbsp; Except as specifically set forth
herein, the Employment Agreement as previously executed shall continue in full
force and effect as written.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first written above.</FONT></P>
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<B><FONT size=2 face="serif">VENTURE FINANCIAL GROUP, INC.</FONT></B>&nbsp;
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<B><FONT size=2 face="serif">EXECUTIVE</FONT></B>&nbsp;
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&nbsp;
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<FONT size=2 face="serif">By:</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
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&nbsp;
	<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Larry Schorno</FONT>&nbsp;
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<FONT size=2 face="serif">&nbsp;&nbsp; Ken F. Parsons, Sr.</FONT>&nbsp;
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Chairman of the Compensation Committee</FONT>&nbsp;
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&nbsp;
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<B><FONT size=2 face="serif">VENTURE BANK</FONT></B>&nbsp;
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<FONT size=2 face="serif">By:</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
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&nbsp;
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Larry Schorno</FONT>&nbsp;
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&nbsp;
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 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Chairman of the Compensation Committee&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>&nbsp;
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&nbsp;
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