UMPQUA HOLDINGS CORP
EXHIBIT 10.4
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>2
<FILENAME>v32505exv10w4.htm
<DESCRIPTION>EXHIBIT 10.4
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.4</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LONG TERM INCENTIVE<BR>
RESTRICTED STOCK UNIT AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Long Term Incentive Restricted Stock Unit Agreement (this &#147;<U>Agreement</U>&#148;) is
made and entered into as of the Grant Date indicated below pursuant to the terms of the 2007 Long
Term Incentive Plan (the &#147;<U>Plan</U>&#148;) of Umpqua Holding Corporation (the &#147;<U>Company</U>&#148;) by
and between the Company and the person named below as the Participant.
</DIV>


<DIV align="left">
<DIV style="font-size: 1pt; margin-top: 16pt; width: 100%;  border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="80%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>The &#147;Participant&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Total Target Number of Restricted Stock Units (&#147;Target Units&#148;)</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Maximum Number of Restricted Stock Units</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;Grant Date&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;Settlement Date&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Performance Vesting</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top"><B>See Exhibit&nbsp;A</B></TD>
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<DIV align="left">
<DIV style="font-size: 1pt; margin-top: 16pt; width: 100%;  border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company hereby awards to the Participant and the Participant accepts the right to receive
shares of the Company&#146;s Common Stock (&#147;<U>Stock</U>&#148;) on the Settlement Date, or such earlier date
as provided herein, to the extent Units are vested in accordance with the terms hereof. This Award
(&#147;<U>Award</U>&#148;) is being made as part of the Participant&#146;s compensation package without the
payment of any consideration other than the Participant&#146;s services as an employee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms and conditions of this Award are set forth on the following pages of this Agreement
subject to the terms and conditions of the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participant&#146;s right to receive shares under this Agreement is conditioned on shareholder
approval of the Plan.
</DIV>
<DIV align="center">
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    <TD width="40%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
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    <TD colspan="3" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="font-variant: SMALL-CAPS">Umpqua Holdings Corporation</FONT></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-variant: SMALL-CAPS">Participant:</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Raymond P. Davis, Chief Executive Officer
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Long Term Incentive Restricted Stock Unit Agreement

</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Long Term Incentive Restricted Stock Unit Award<BR>
Terms and Conditions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1. </B><U><B>Definitions </B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise defined herein, capitalized terms used in this Agreement shall have the
meanings as defined in the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. &#147;<U>Agreement</U>&#148; shall have the meaning given on page 1 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. &#147;<U>Award</U>&#148; means this Long Term Incentive Restricted Stock Unit Award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. &#147;<U>Cause</U>&#148; means the definition of &#147;Cause&#148; given in any employment agreement the
Participant has with the Company or a Subsidiary, or if no such definition exists, the occurrence
of any one or more of the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Dishonest or fraudulent conduct by Participant with respect to the performance of
Participant&#146;s duties with the Company;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Conduct by Participant that materially discredits the Company or any of its subsidiaries
or is materially detrimental to the reputation of the Company or any of its subsidiaries, including
but not limited to conviction or a plea of nolo contendere of Participant of a felony or crime
involving moral turpitude;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Participant&#146;s willful misconduct or gross negligence in performance of Participant&#146;s
duties, including but not limited to Participant&#146;s refusal to comply in any material respect with
the legal directives of the Board, if such misconduct or negligence has not been remedied or is not
being remedied to the Board&#146;s reasonable satisfaction within thirty (30)&nbsp;days after written notice,
including a detailed description of the misconduct or negligence, has been delivered by the Board
to Participant;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;An order or directive from a state or federal banking regulatory agency requesting or
requiring removal of Participant or a finding by any such agency that Participant&#146;s performance
threatens the safety or soundness of the Company or any Subsidiary; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Material breach of Participant&#146;s fiduciary duties to the Company if such breach has not
been remedied or is not being remedied to the Board&#146;s reasonable satisfaction within thirty (30)
days after written notice, including a detailed description of the breach, has been delivered by
the Board to the Participant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4. &#147;<U>Company</U>&#148; means Umpqua Holdings Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5. &#147;<U>Disability</U>&#148; means having a mental or physical impairment that has lasted or is
expected to last for a continuous period of 12&nbsp;months or more and, in the Committee&#146;s sole
discretion, renders the Participant unable to perform the duties that were assigned to the
Participant during the 12&nbsp;month period prior to such determination. The Committee&#146;s determination
of the existence of an individual&#146;s disability will be effective when communicated in writing to
the Participant and will be conclusive on all of the parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6. &#147;<U>Earnings Per Share</U>&#148; means the fully diluted earnings per share based upon
Operating
Earnings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Long Term Incentive Restricted Stock Unit Agreement

</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7. &#147;<U>EPS Growth</U>&#148; means the compounded annual Earnings Per Share growth rate over the
Measurement Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8. &#147;<U>Grant Date</U>&#148; means the date of the grant of the Award, as specified on page 1
hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9. &#147;<U>Good Reason</U>&#148; means the definition of &#147;Good Reason&#148; given in any employment
agreement the Participant has with the Company, or if no definition is so given, there shall be no
circumstances giving rise to Good Reason under this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10. &#147;<U>Measurement Period</U>&#148; means with respect to each vesting tranche, for purposes of
performance based vesting under Section&nbsp;2.1, the performance period described in Section&nbsp;2.1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11. &#147;<U>Measurement Start Date</U>&#148; means the first day of the fiscal quarter in which the
Grant Date occurs. (For example, if the Grant Date is within the first fiscal quarter, the
Measurement Start Date will be January 1 of that year).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12. &#147;<U>Operating Earnings</U>&#148; shall be based upon net income excluding merger or
acquisition related expenses for any applicable period, but will include any amortization for core
deposit intangibles.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13. &#147;<U>Participant</U>&#148; means the individual identified on page 1 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14. &#147;<U>Peer Group</U>&#148; means the group of banks or bank holding companies set forth in, or
determined according to, <U>Exhibit&nbsp;B</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15. &#147;<U>Performance Vesting Matrix</U>&#148; means the matrix in <U>Exhibit&nbsp;A</U> hereto, by
which the number of vested Units for the vesting tranche are determined in accordance with Section
2.1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16. &#147;<u>Plan</u>&#148; shall have the meaning given on page 1 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17. &#147;<u>Settlement Date</u>&#148; means date indicated on page 1 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18. &#147;<u>Stock</u>&#148; means the Common Stock of the Company, and any successor entity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19. &#147;<u>Subsidiary</u>&#148; has the meaning given in the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.20. &#147;<U>Target Units</U>&#148; means the target number of Units eligible for vesting in a
vesting tranche, as shown on <U>Exhibit&nbsp;A</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.21. &#147;<U>Units</U>&#148; means the restricted stock units awarded under this Agreement.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>2. </B><U><B>Vesting of Units</B></U><B>. </B>Vesting of Units is subject to the double trigger vesting
requirements which include: (1)&nbsp;the performance based vesting requirements set forth in Section&nbsp;2.1
and (2)&nbsp;the service based vesting requirement set forth in Section&nbsp;2.2.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. <U>Performance Based Vesting Requirements</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;With respect to the performance based vesting requirements, Units will be eligible for
vesting in three tranches. Subject to Section&nbsp;2.1(b) and (c), vesting of the first tranche will be
measured based on the Company&#146;s financial performance over the 12&nbsp;month period which commenced as
of the Measurement Start Date; the second tranche will be measured based on the Company&#146;s
financial
performance over the 24&nbsp;month period which commenced as of the Measurement Start Date; and the
third tranche will be measured based on the Company&#146;s financial performance over the 36&nbsp;month
period which
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Long Term Incentive Restricted Stock Unit Agreement

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">commenced as of Measurement Start Date. The Target Units for each of the respective
tranches is set forth in <U>Exhibit&nbsp;A</U>. Subject to Section&nbsp;2.1(b) and (c), the amount of Units
within each tranche that vest shall be based on the vesting percentage of the Target Units for such
tranche, as shown on the Performance Vesting Matrix on <U>Exhibit&nbsp;A</U>. That percentage shall be
determined based on the Company&#146;s ranking in the Peer Group based on EPS Growth, and calculated as
set forth in <U>Exhibit&nbsp;A</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;With respect to the performance measurement for the first or second tranches, in the event
the Company&#146;s EPS Growth is negative for the respective Measurement Period, no Units shall vest in
that tranche and instead the performance measurement for such tranche shall be deferred and the
Units shall be included in the next tranche for purposes of measuring performance vesting. (For
example, if EPS Growth for the first Measurement Period is negative, vesting of both the Units for
the first and second tranches shall be measured based on the EPS Growth for the second Measurement
Period. If EPS Growth is again negative for the second Measurement Period, vesting of all Units
shall be measured based on the EPS Growth for the third Measurement Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Notwithstanding the foregoing, in the event the service based vesting is accelerated
pursuant to Section&nbsp;2.2(b) or 2.2(c), any vesting tranche for which the full performance period, as
described in Section&nbsp;2.1(a) subject to 2.1(b), has not yet ended, shall be measured for performance
based vesting based on the performance period which commenced on the Measurement Start Date and
ended as of the fiscal quarter most recently ended prior to the event triggering accelerated
vesting under Section&nbsp;2.2(b) or 2.2(c).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;In the event Section&nbsp;2.2(b) applies, the total amount of Units preliminarily calculated as
having vested under Section&nbsp;2.1(a) and 2.1(c) shall be reduced for early service vesting by
multiplying such amount by a fraction the numerator being the number of full fiscal quarters
between the Measurement Start Date and the date of termination of Participant&#146;s employment and the
denominator being twelve (12). (See <U>Exhibit&nbsp;A</U> for an example). If accelerated service
based vesting is triggered by Section&nbsp;2.2(c), there is no reduction for early vesting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. <U>Service Requirements</U>. The service requirement for vesting shall be satisfied as
set forth in Section&nbsp;2.2(a) or accelerated under Section&nbsp;2.2(b) or (c), and any Units which are
vested for purposes of the performance based vesting requirements in Section&nbsp;2.1 shall fully vest
as of such event:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Participant has been continuously employed by the Company or a Subsidiary through the
Settlement Date. (Participant will be deemed continuously employed notwithstanding any unpaid
leaves of absence if such leave of absence is in accordance with the Company or Subsidiary&#146;s sick
leave, family leave or military leave policies or that otherwise is with the prior written approval
of the Company or its Subsidiary and such leave continues only for so long as the Company or its
Subsidiary has agreed and occurs only in accordance with the terms and conditions as have been
required by the Company or its Subsidiary, in each instance as determined by the Company or its
Subsidiary in its sole discretion); or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Participant ceases to be employed by the Company or a Subsidiary prior to the Settlement
Date due to termination by the Company without Cause or by the Participant for Good Reason, or due
to Participant&#146;s death or Disability; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;There is a &#147;Change of Control Transaction,&#148; as defined in the Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;In the event the Participant voluntarily terminates employment without Good
Reason or is terminated by the Company for Cause prior to the Settlement Date, this Agreement
shall terminate without vesting of any Units.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Long Term Incentive Restricted Stock Unit Agreement

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3. </B><U><B>Settlement of Award and Issuance of Share Certificates </B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. <U>Issuance of Shares of Stock</U>. The Company shall issue to the Participant, as soon
as practicable following the vesting under Section&nbsp;2.2 (but not earlier than the publication of the
earnings release for the Peer Group for the quarter ended immediately prior to or as of the vesting
date permitting the calculation required pursuant to <U>Exhibit&nbsp;A</U>), and upon payment of all
required tax withholding pursuant to Section&nbsp;4 hereof, a number of whole shares of Stock equal to
the number of Units that have vested. Notwithstanding the foregoing, if the Participant is a
&#147;specified employee&#148; as defined in Section&nbsp;409A of the Internal Revenue Code and there is
accelerated vesting under Section&nbsp;2.2(b), the Stock shall not be issued until the seventh month
following termination of Executive&#146;s employment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. <U>No Additional Payment Required</U>. The Participant shall not be required to make
any additional payment of consideration upon settlement of the Award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. <U>Stock Certificate</U>. The certificate for the shares of Stock as to which the Award
is settled shall be registered in the name of the Participant, or, if applicable, in the names of
the beneficiaries of the Participant. The Company may at any time place legends referencing any
applicable restrictions on all certificates representing shares of Stock issued upon settlement of
the Award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. <U>Restrictions on Grant of the Award and Issuance of Shares</U>. The grant of the
Award and issuance of shares of Stock upon settlement of the Award shall be subject to compliance
with all applicable requirements of federal and state securities laws. No shares of Stock may be
issued hereunder if the issuance of such shares would constitute a violation of any applicable
federal, state or foreign securities laws or other law or regulations or the requirements of any
stock exchange or market system upon which the Stock may then be listed. The inability of the
Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the
Company&#146;s legal counsel to be necessary to the lawful issuance and sale of any shares subject to
the Award shall relieve the Company of any liability with respect to the failure to issue or sell
such shares as to which such requisite authority shall not have been obtained; provided, however,
the Company shall undertake commercially reasonable efforts to timely obtain all such consents and
approvals. As a condition to the settlement of the Award, the Company may require the Participant
to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any
applicable law or regulation and to make any representation or warranty with respect thereto as may
be requested by the Company. In the unanticipated event the Company is unable to issue the shares
of stock Participant is entitled within six months of the settlement date, the Company shall pay
Participant the cash equivalent value of such shares based upon the fair market value of the common
stock on the date of the cash payment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5. <U>Fractional Shares</U>. The Company shall not be required to issue fractional shares
upon the settlement of the Award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. </B><U><B>Payment of Tax Withholding Amounts</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. <U>Tax Withholding</U>. At the time the Award is settled, the Participant will be
required to remit to the Company an amount sufficient to satisfy federal, state, and local taxes
and FICA withholding requirements prior to the delivery of any certificate or certificates for the
Stock. The Participant hereby authorizes withholding from payroll and any other amounts payable to
the Participant, and otherwise agrees to make adequate provision for, any sums required to satisfy
such tax withholding obligations of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. <U>Alternative Provisions for the Payment of Tax Withholding Amounts</U>. As an
alternative to the payment of tax withholding in cash, the Committee (as defined in the Plan), in
its sole discretion,
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Long Term Incentive Restricted Stock Unit Agreement

</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">may allow the Participant to pay tax withholding (i)&nbsp;by the Company
withholding such amount from other amounts payable by the Company to the Participant, including
salary, (ii)&nbsp;by surrender of shares of Common Stock or other securities of the Company in the
manner specified in Section&nbsp;6.11 of the Plan, (iii)&nbsp;by the application of shares of Stock to be
issued under this Agreement up to an amount not greater than the Company&#146;s minimum statutory
withholding rate for federal and state tax purposes, including payroll taxes, that are applicable
to such supplemental taxable income, or (iv)&nbsp;any combination of the foregoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>5.&nbsp;</B><U><B>Restrictions on Transfer</B></U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <U>Transfer Restrictions</U>. Prior to the full vesting of the Units, and for the
shorter of (i)&nbsp;a 2-year period after vesting or (ii)&nbsp;six months after termination of Participant&#146;s
employment, neither this Award, nor any Unit, nor any shares of Stock issued in settlement shall be
subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
or garnishment by creditors of the Participant or the Participant&#146;s beneficiary, except by will or
by the laws of descent and distribution. Notwithstanding the foregoing, Participant may surrender
shares of Stock in accordance with Section&nbsp;4.2 above for the limited purpose of paying tax
withholding on the shares of Stock issued pursuant to this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <U>Safekeeping of Stock Certificate</U>. During the period of any transfer
restrictions pursuant to Section&nbsp;5.1, the stock certificate representing the shares of Stock issued
pursuant to this Agreement may be retained by the Company or its transfer agent. After expiration
of the transfer restriction period, upon the written request of the Participant, the Company will
deliver or cause to be delivered to the Participant a stock certificate representing shares issued
pursuant to this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6. </B><U><B>Adjustment of Units</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of any change to the Stock of the Company as described in Article&nbsp;VII of the
Plan, the number and/or kind of Units shall be adjusted in accordance with Article&nbsp;VII of the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7. </B><U><B>Representations, Warranties and Covenants of the Participant</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. <U>No Shareholder Rights</U>. The Participant shall have no rights as a shareholder
with respect to any shares which may be issued in settlement of this Award until the date of the
issuance of a certificate for such shares (as evidenced by the appropriate entry on the books of
the Company or of a duly authorized transfer agent of the Company).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. <U>No Right to Continued Service</U>. The Participant understands and agrees that
nothing contained in this Agreement will be construed to limit or restrict the rights of the
Company or of any Subsidiary of the Company to terminate the employment of the Participant at any
time, with or without cause, to change the duties of the Participant or to increase or decrease the
Participant&#146;s compensation. Without limiting the foregoing, the Participant understands and agrees
that the vesting of Units under this Agreement is directly conditioned upon the Participant
continuing to be employed by the Company or a Subsidiary of the Company and that the Participant&#146;s
relationship with the Company or a Subsidiary of the Company can be terminated at any time with or
without notice to the Participant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. <U>Tax Treatment</U>. The Company has advised the Participant to seek the Participant&#146;s
own tax and financial advice with regard to the federal and state tax considerations resulting from
the
Participant&#146;s receipt of the Units or Stock pursuant to this Award. The Participant
understands that the Company will report to appropriate taxing authorities the payment to the
Participant of compensation
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">income upon settlement of the Award. The Participant understands that
he or she is solely responsible for the payment of all federal and state taxes resulting from this
Award and the issuance of the Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4. <U>Disclosures</U>. The Participant acknowledges receipt of a copy of the Plan and
represents that the Participant has fully reviewed the terms and conditions of the Plan and this
Agreement and has had an opportunity to obtain the advice of counsel prior to executing this
Agreement. The Participant represents and warrants that the Participant is not relying upon any
representations, agreements or understandings of or with the Company except for those set forth in
this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <U>Underwriter Lock-up</U>. The Participant agrees that whenever the Company undertakes
a firmly underwritten public offering of its securities, the Participant will, if requested to do
so by the managing underwriter in such offering, enter into an agreement not to sell or dispose of
any securities of the Company owned or controlled by the Participant provided that such restriction
will not extend beyond 12&nbsp;months from the effective date of the registration statement filed in
connection with such offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>8. </B><U><B>Miscellaneous Provisions</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. <U>Binding Effect</U>. This Agreement will be binding upon and inure to the benefit of
the parties hereto and their respective successors and permitted assigns. The rights and
obligations of the Company under this Agreement may be assigned without prior notice to or the
consent of the Participant. The rights and obligations of the Participant under this Agreement may
not be assigned by the Participant except as may be permitted by Section&nbsp;5 of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. <U>Amendment and Waiver</U>. This Agreement may be amended, modified and supplemented
only by written agreement signed by both the Participant and an authorized officer of the Company.
No waiver of any provision of this Agreement or any rights or obligations of any party hereunder
shall be effective, except pursuant to a written instrument signed by the party or parties waiving
compliance, and any such waiver shall be effective only in the specific instance and for the
specific purpose stated in such writing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3. <U>Notices</U>. All notices or other communications pursuant to this Agreement shall be
in writing and shall be deemed duly given if delivered personally or by courier service, or if
mailed by certified mail, return receipt requested, prepaid and addressed to the Company&#146;s
executive offices to the attention of the Corporate Secretary, or if to the Participant, to the
address maintained by the personnel department, or such other address as such party shall have
furnished to the other party in writing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4. <U>Governing Law and Interpretation</U>. This Agreement will be governed by the laws of
the State of Oregon as to all matters, including but not limited to matters of validity,
construction, effect, and performance, without giving effect to rules of choice of law. This
Agreement hereby incorporates by reference all of the provisions of the Plan and will in all
respects be interpreted and construed in such manner as to effectuate the terms and intent of the
Plan. In the event of a conflict between the terms of this Agreement and the Plan, the terms of
the Plan will prevail. All matters of interpretation of the Plan and this Agreement, including the
applicable terms and conditions and the definitions of the words, will be determined at the sole
and final discretion of the Committee or the Company&#146;s Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5. <U>IRC Section&nbsp;409A Compliance</U>. Notwithstanding any other provision of Agreement,
it is intended that any deferred compensation benefit which is provided pursuant to or in
connection with this Agreement shall be provided and issued in a manner, and at such time and in
such form, as complies with the applicable requirements of Section&nbsp;409A of the Internal Revenue
Code to avoid the unfavorable tax
consequences provided therein for non-compliance. Any provision in this Agreement that is
determined to violate the requirements of Section&nbsp;409A shall be void and without effect. To the
extent permitted under
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Long Term Incentive Restricted Stock Unit Agreement

</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Section&nbsp;409A, the parties shall reform the provision, provided such
reformation shall not subject the Participant to additional tax or interest and the Company shall
not be required to incur any additional compensation as a result of the reformation. In addition,
any provision that is required to appear in this Agreement that is not expressly set forth shall be
deemed to be set forth herein, and this Agreement shall be administered in all respects as if such
provision were expressly set forth. References in this Agreement to Section&nbsp;409A of the Code
include rules, regulations, and guidance of general application issued by the Department of the
Treasury under Internal Revenue Code Section&nbsp;409A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6. <U>Attorney Fees</U>. If any suit, action or proceeding is instituted in connection
with any controversy arising out of this Agreement or the enforcement of any right hereunder, the
prevailing party will be entitled to recover, in addition to costs, such sums as the court or
arbitrator may adjudge reasonable as attorney fees, including fees on any appeal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7. <U>Arbitration</U>. The parties agree to submit any dispute arising under this
Agreement to final, binding, private arbitration in Portland, Oregon. This includes not only
disputes about the meaning or performance of the Agreement, but disputes about its negotiation,
drafting, or execution. The dispute will be determined by a single arbitrator in accordance with
the then-existing rules of arbitration procedure of Multnomah County, Oregon Circuit Court, except
that there shall be no right of de novo review in Circuit Court and the arbitrator may charge his
or her standard arbitration fees rather than the fees prescribed in the Multnomah County Circuit
Court arbitration procedures. The proceeding will be commenced by the filing of a civil complaint
in Multnomah County Circuit Court and a simultaneous request for transfer to arbitration. The
parties expressly agree that they may choose an arbitrator who is not on the list provided by the
Multnomah County Circuit Court Arbitration Department, but if they are unable to agree upon the
single arbitrator within ten days of receipt of the Arbitration Department list, they will ask the
Arbitration Department to make the selection for them. The arbitrator will have full authority to
determine all issues, including arbitrability, to award any remedy, including permanent injunctive
relief, and to determine any request for costs and expenses in accordance with Section&nbsp;8.6 of this
Agreement. The arbitrator&#146;s award may be reduced to final judgment in Multnomah County Circuit
Court. The complaining party shall bear the arbitration expenses and may seek their recovery if it
prevails. Notwithstanding any other provision of this Agreement, an aggrieved party may seek a
temporary restraining order or preliminary injunction in Multnomah County Circuit Court to preserve
the status quo during the arbitration proceeding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8. <U>IRC 280G Adjustment</U>. If the benefit payments under this Agreement, either alone
or together with other payments to which the Participant is entitled to receive from the Company,
would constitute an &#147;excess parachute payment&#148; as defined in Section&nbsp;280G of the Internal Revenue
Code of 1986, as amended (the &#147;Code&#148;), such benefit payments shall be reduced to the largest amount
that will result in no portion of benefit payments under this Agreement being subject to the excise
tax imposed by Section&nbsp;4999 of the Code. The determination of which benefits to reduce shall be
made by the Participant, provided the Company&#146;s accountants confirm that such reduction satisfies
the requirements of this Section.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9. <U>Entire Agreement</U>. This Agreement and the Plan embody the entire agreement and
understanding of the parties hereto in respect to the subject matter contained herein and
supersedes all prior written or oral communications or agreements all of which are merged herein.
There are no restrictions, promises, warranties, covenants, or undertakings, other than those
expressly set forth or referred to herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10. <U>Repayment Obligation</U>. Participant&#146;s eligibility to shares of Stock under this
Agreement is based upon the Company&#146;s achievement of the performance levels determined pursuant to
<U>Exhibit&nbsp;A</U>.
If after shares of Stock are issued to Participant, it is later determined that performance
level as compared to the Peer Group changed as a result of recalculations in the Company&#146;s EPS
Growth was not met as (i)&nbsp;a
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Long Term Incentive Restricted Stock Unit Agreement

</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">result of any intentional misstatement, fraud or action of an officer
of the Company, or (ii)&nbsp;a material error that, in either case, results in a restatement of the
Company&#146;s financial statements, and such restatement changes the vesting percentage otherwise
achieved, Participant agrees to repay or cancel any improperly made payment, award or benefit upon
demand by the Company.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">* * *
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Long Term Incentive Restricted Stock Unit Agreement

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->Page 9 of 11<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>EXHIBIT A</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PERFORMANCE VESTING</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(a) </B><U><B>Target Units</B></U><B>:</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="79%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">First Tranche:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">12,000 shares</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Second Tranche:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8,000 shares</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Third Tranche:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4,000 shares</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>(b) </B><U><B>Performance Vesting Matrix</B></U><B>:</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>(A)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>(B)</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>EPS Growth Peer Group Value</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Range</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Vesting Percentage of Target</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>(Rank/Total in Peer Group)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Units in Tranche</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><B>0.000 &#150; 0.175</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>175%</B>
</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>
0.176 &#150; 0.275
</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>150%
</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><B>

0.276 &#150; 0.375
</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>
125%
</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>0.376 &#150; 0.625
</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>
100%
</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><B>
0.626 &#150; 0.725<BR>
</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>
75%<BR>
</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>
0.726 &#150; 0.825<BR>
</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>
50%

</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><B>
0.826 &#150; 0.925
</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>25%
</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>0.926 &#150; 1.000</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>0%</B></TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Peer Group institutions are ranked and assigned integer numbers with the highest performing
institution receiving a ranking = 1. To determine the EPS Growth Peer Group Value (Column A), the
Company&#146;s rank is divided by the total number of institutions in the Peer Group (including the
Company). The applicable vesting percentage (Column B) is determined based on the corresponding
EPS Growth Peer Group Value, as shown in the matrix above.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Examples</U>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;The Grant Date is March&nbsp;1, 2007. Vesting of the first tranche is measured based on EPS Growth
for the 12&nbsp;month-period ended December&nbsp;31, 2007. The Company&#146;s EPS Growth is positive and the
Company ranks 5th out of 20. The EPS Growth Peer Group Value = 5/20 = 0.25. The applicable
percentage for performance based vesting of the first tranche is 150%.<BR>
First Tranche: 12,000 shares *1.50 = 18,000 shares. No payout until service vesting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;Same facts as in Example (a)&nbsp;above, except that the Company&#146;s EPS Growth is negative. The
12,000 Units in the first tranche are combined with the 8,000 Units in the second tranche for
purposes of measuring vesting based on EPS Growth for the 24&nbsp;month-period ended December&nbsp;31, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(c)&nbsp;Same facts as in Example (a)&nbsp;above, but Participant is terminated without Cause on September
15, 2008. For January&nbsp;1, 2007 through June&nbsp;30, 2008, the Company&#146;s EPS Growth is positive and the
Company ranks 10th out of 19 (one institution in the Peer Group disqualifies). The EPS Growth Peer
Group Value = 10/19 = 0.53. The applicable performance vesting percentage for the first tranche is
100%. Second Tranche: 8,000 shares*1.00 = 8,000. Third Tranche: 4,000 shares*1.00 = 4,000 shares.<BR>
Payout would be (18,000&#043;8,000&#043;4,000)*(6/12) = 15,000 shares
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(c)&nbsp;Same facts as in Example (b)&nbsp;above, except that instead of termination on September&nbsp;15, 2008,
there is a Change in Control on September&nbsp;15, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt">Payout would be: 18,000&#043;8,000&#043;4,000 = 30,000 shares. (No reduction for early service vesting).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Long Term Incentive Restricted Stock Unit Agreement

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->Page 10 of 11<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>EXHIBIT B</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PEER GROUP</B>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="79%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Name</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">State</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Trading Symbol</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">City National Corp
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CA
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CIN</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">UCBH Holding Inc
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CA
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">UCBH</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Wintrust Financial Corp
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">IL
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">WTFC</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Sterling Financial Corp
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">WA
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">STSA</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Trustmark Corp
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MS
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">TRMK</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">First Midwest Bancorp
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">IL
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">FMBI</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Susquehanna Bancshares Inc
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">PA
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">SUSQ</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Old National Bancorp
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">IN
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ONB</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Cathay General Bancorp
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CA
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CATY</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Greater Bay Bancorp
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CA
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">GBBK</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Pacific Capital Bancorp
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CA
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">PCBC</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">United Bankshares Inc
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">WV
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">UBSI</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Chittenden Corp
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">VT
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CHZ</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Provident Bancshares Inc
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MD
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">PBKS</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Irwin Financial Corp
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">OH
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">IFC</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CVB Financial Corp
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CA
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CVBF</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SVB Financial Corp
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CA
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">SIVB</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">First Community Bancorp
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CA
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">FCBP</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Glacier Bancorp
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MT
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">GBCI</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">With respect to any Measurement Period, the following companies shall be eliminated from the
Peer Group:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any company which has entered into a Plan of Merger or similar transaction which has
resulted in its post-merger assets size exceeding that of Umpqua by more than 100&nbsp;percent.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any company which has liquidated, sold or transferred all or substantially all (80% or
more) of its assets, or disposed of all of its insured depository subsidiaries.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any company whose shares are no longer traded on the NYSE or NASDAQ Global Select
markets or equivalent.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Long Term Incentive Restricted Stock Unit Agreement

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->Page 11 of 11<!-- /Folio -->
</DIV>

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