DEFERRED COMPENSATION AGREEMENT
This Deferred Compensation Agreement (the "Agreement") is made and entered into this 19th day of June, 1996
by and between Klickitat Valley Bank (the "Bank") and Wesley A. Kangas ("Kangas").
(1) The Bank is a state-chartered Washington financial institution with its principal office in Goldendale,
(2) Kangas is now employed full-time by the Bank as its President and Chief Executive Officer, and has served in
that position and in other positions at the Bank since 1968.
(3) The Bank recognizes the contributions that Kangas has made to the success and profitability of the Bank, and
desires to provide deferred compensation and other consideration to Kangas as compensation for his services
and for the confidentiality covenants set forth in the Agreement.
Now, therefore, it is agreed:
1. Deferred Compensation.
1.1 Kangas shall become eligible for deferred compensation under the Agreement upon his retirement as a full-
time employee of the Bank.
1.2 As of the date of his retirement (the "Retirement Date"), Kangas shall be entitled to payment of deferred
compensation in the principal sum of $180,000.00, payable either monthly or annually as determined by Kangas,
and subject to the following conditions:
1.2.1 For the calendar year in which Kangas retires, if Kangas has been employed by the Bank for any portion of
such year, the aggregate of salary received by Kangas in such year plus deferred compensation under the
Agreement may not exceed $100,000.00.
1.2.2 For any subsequent calendar year, Kangas may not receive deferred compensation payments under the
Agreement in an amount exceeding $60,000.00.
1.2.3 At least thirty (30) days prior to the beginning of any calendar year in which Kangas is entitled to receive
deferred compensation under the Agreement, Kangas shall notify the Bank in writing of
(i) the amount of deferred compensation to be paid for such calendar year, and
(ii) whether such deferred compensation is t