Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

(e) On November 20, 2008, AmericanWest Bank ("Bank"), the principal operating subsidiary of AmericanWest Bancorporation, entered into an amendment to the employment agreement with executive officer B. Nicole Sherman, in connection with a change in her title and duties and her relocation to Utah to manage the Bank's Utah operations. The amendment:

(i) recognizes that the change in title, duties and principal office for Ms. Sherman constitutes grounds for a resignation with good cause under the terms her current employment agreement, allows Ms. Sherman until April 30, 2009 to exercise her right to resign for good cause and receive severance benefits under the terms of the employment agreement, and provides that after April 30, 2009 the change in title, duties and principal office will no longer constitute grounds for a resignation with good cause;

(ii) provides for an increase of $9,250 in Ms. Sherman's base salary to account for the effect of state personal income taxes in Utah;

(iii) provides for payment or reimbursement by the Bank of certain moving and relocation expenses in connection with Ms. Sherman's relocation to Utah, including gross-up for income taxes;

(iv) provides for a relocation bonus equal to four month's base salary; and

(v) requires Ms. Sherman to refund to the Bank the moving and relocation costs and relocation bonus described in (iii) and (iv) above if Ms. Sherman resigns on or before October 31, 2009.

A copy of the amendment is included as an exhibit 99.1 to this Form 8-K.

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