Document:

LEASE AGREEMENT

                                     BETWEEN

                              JLC CONTRACTING, INC.
                                  (AS LANDLORD)

                                       AND

                             THE YOLO COMMUNITY BANK
                                   (AS TENANT)
<PAGE>

                                 LEASE AGREEMENT

         This Lease Agreement ("Lease"), dated September 30, 2004 for reference
purposes only, is entered into by and between JLC Contracting, Inc., a
California corporation ("Landlord"), and The Yolo Community Bank, a California
corporation ("Tenant").

         Landlord hereby leases, grants, bargains, sells and conveys to Tenant
and Tenant hereby accepts, pursuant to this Lease, as follows:

                                    ARTICLE 1
                           DEFINITIONS AND ATTACHMENTS
                           ---------------------------

         1.1      Basic Data. Each reference in this Lease to any of the
following subjects shall incorporate the data or definition specified below:
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Landlord:                                JLC Contracting, Inc.
--------------------------------------------------------------------------------

Landlord's Address:                      2229 Rockville
                                         Fairfield, CA  94534
--------------------------------------------------------------------------------

Landlord's Phone and Fax Number:         Phone:  707 864 8842

                                         Fax:    707 426 5422
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Landlord's Federal ID Number:            68-0366803
--------------------------------------------------------------------------------

Landlord's Managing Agent:               None
--------------------------------------------------------------------------------

Tenant:                                  The Yolo Community Bank
--------------------------------------------------------------------------------

Tenant's Address:                        The Yolo Community Bank
                                         400 Second Street

                                         Woodland, CA  95695

                                         Tenant's Phone Number:   530 668 5800
                                         Tenant's Fax Number:     530 661 3964
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Premises:                                Approximately Three Thousand One
                                         Hundred and Fifty-Seven  (3,157)
                                         square feet of office space located on
                                         the first floor of the building
                                         ("Building") located at 711 Jefferson
                                         Street, Suite A in the City of
                                         Fairfield ("City"), County of Solano
                                         ("County"), State of California
                                         ("State"), as further shown on the
                                         site plan attached hereto as Exhibit
                                         "A" (the "Premises Plan").
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Project:                                 The Building located at 711 Jefferson
                                         Street, Suite A, Fairfield, California
                                         and surrounding land.
--------------------------------------------------------------------------------

                                      -1-
<PAGE>

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Permitted Use:                           Operation of a financial institution
                                         and related services, office and
                                         administrative uses, and any other
                                         uses allowed by law (including up to
                                         one (1) automated teller machines
                                         ("ATMs"), night depository, and
                                         related lighting and security systems).
--------------------------------------------------------------------------------

Initial Term:                            An initial period commencing on the
                                         Commencement Date and expiring on the
                                         last day of the Fifth (5th) Lease
                                         Year, subject to extension and earlier
                                         termination as hereafter provided.
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Extension Period:                        One (1) Extension Period of Five (5)
                                         years.
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<TABLE>
<CAPTION>
Annual Basic Rental, Lease Years 1                         Rent Schedule
through 5:                                                 -------------

The initial Basic Rental Rate shall be:    Year   Rent/Mo.  Per 3,157 s.f.  Per 506 s.f. C.A.
                                           ----   --------  --------------  -----------------
<S>                                       <C>     <C>          <C>              <C>
$1.75 per month/ 3175 s.f. of Premises
$0.85 per month/506 s.f. of Common Area   1-2005  $5,954.85    $5,524.75        $430.10
                                          2-2006  $5,954.85    $5,524.75        $430.10
with increases at the rate of 3% every    3-2007  $6,133.51    $5,690.50        $443.01
two (2) years according to the Rent       4-2008  $6,133.51    $5,690.50        $443.01
Schedule.                                 5-2009  $6,317.52    $5,861.22        $456.30
--------------------------------------------------------------------------------

<CAPTION>
Extension Period Annual Basic Rental,                      Rent Schedule
Lease Years 6 through 10:                                  -------------

with increases at the rate of 2-1/2%       Year   Rent/Mo.  Per 3,157 s.f.  Per 506 s.f. C.A.
per year according to the Rent Schedule    ----   --------  --------------  -----------------
<S>                                       <C>     <C>          <C>              <C>
                                          6-2010  $6,475.46    $6,007.75        $467.71
                                          7-2011  $6,637.36    $6,157.95        $479.41
                                          8-2012  $6,803.30    $6,311.90        $491.40
                                          9-2013  $6,973.39    $6,469.70        $503.69
                                          10-2014 $7,147.74    $6,631.45        $516.29
--------------------------------------------------------------------------------
</TABLE>

Landlord's Cash Allowance:               $33,000.00
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Tenant's Proportionate Share:            N/A.
--------------------------------------------------------------------------------

Scheduled Plan Submission Dates:         Landlord has, prior to the Effective
                                         Date, provided Tenant with copies of
                                         Landlord's Final Construction Drawings:
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Time Estimated for Completion of         Sixty (60) days after completion of
Tenant's Work:                           Landlord's Work, as set forth herein.
                                         Target completion date for Tenant's
                                         Work is March 1, 2005
--------------------------------------------------------------------------------

Scheduled Delivery Date:                 January 1, 2005.
--------------------------------------------------------------------------------

Brokers:                                 Landlord represented by:  None

                                         Tenant represented by:   None

                                         Commission to both brokers to be paid
                                         100% by Landlord.
--------------------------------------------------------------------------------

         1.2      Defined Terms. As used herein, the following terms shall have
the meanings specified below:

                                      -2-
<PAGE>

                  (a)      "Additional Insurance" has the meaning set forth in
Section 12.5(c).

                  (b)      "Building" means the building in the Project in which
the Premises are located.

                  (c)      "Common Areas" means those retail areas and
facilities which may be furnished by Landlord in the Project for the common use
of Landlord, tenants and other occupants of the Project and others entitled
thereto, their officers, agents and employees, including, without limitation,
all truckways, driveways, loading docks, delivery passages, sidewalks,
corridors, landscaped and planted areas, retaining walls, stairways, elevators,
rest rooms, lobby and other similar areas, facilities or improvements, if any.

                  (d)      "Effective Date" shall have the meaning set forth in
Section 18.8.

                  (e)      "Inspection Period" means the period beginning on
the Premises Delivery Date and ending sixty (60) business days thereafter;

                  (f)      "Interest Rate" means the lesser of ten percent (l0%)
per annum or the highest interest rate allowed by Law.

                  (g)      "Landlord's Work" has the meaning set forth in
Section 8.1.

                  (h)      "Landlord's Delay" means any actual delay in the
completion of the Tenant's Work which is due to any act or omission of
Landlord, its agents or contractors, including, without limitation: (1) delay in
the giving of authorizations or approvals by Landlord within the time limits set
forth in the Lease; (2) delay attributable to the acts or failures to act of
Landlord, where such acts or failures to act actually and materially delay the
completion of the Tenant's Work; (3) delay attributable to the interference of
Landlord, its agents or contractors with the completion of the Tenant's Work;
(4) delay attributable to the failure of Landlord to pay, when due, any amounts
required to be paid by Landlord pursuant to the Lease; (5) delay attributable to
Landlord's failure to have substantially completed the Landlord's Work and
delivered the Premises as required under the Lease, or to have provided Tenant
with incomplete or inaccurate Building plans; and (6) delay attributable to
Landlord's failure to provide Tenant or Tenant's contractors with access to the
Premises (and parking lot areas) necessary to allow Tenant to complete the
construction of the Tenant Improvements within the Construction Period. No
Landlord Delay shall be deemed to have occurred unless and until Tenant has
given written notice to Landlord specifying the action or inaction which Tenant
contends constitutes a Landlord Delay. If such action or inaction is not cured
with one (1) business day after Landlord's receipt of such notice, then a
Landlord Delay, as set forth in such notice, shall be deemed to have occurred
commencing as of the date Landlord received such notice and continuing for the
number of days the substantial completion of the Tenant Improvements was, in
fact, delayed as a result of such action or inaction.

                  (i)      "Law(s)" means all present and future federal, state,
and local statutes, common law, ordinances, regulations, orders, and other
requirements of governmental authorities, including without limitation building
codes and the Americans with Disabilities Act.

                  (j)      "Lease Year" shall have the following meaning: the
first "Lease Year" shall mean that period commencing on the Commencement Date
and ending on the following December 31st (unless such period is less than five
(5) months, in which case the first Lease Year shall end on the December 31st of
the first full calendar year succeeding the Commencement Date). Thereafter,
"Lease Year" shall mean each successive twelve (12) month period during the
Term.

                  (k)      "Memorandum of Lease" shall have the meaning ascribed
to that term in Section 18.6.

                  (l)      "Normal Business Hours" means those hours and days
during which the business in the Premises may elect to be open for business to
the public. As of the date of this Lease, Normal Business Hours are, to the
extent permitted by applicable Law, 8:00 a.m. to 6:00 p.m., Mondays through
Saturdays, (national, state and local holidays excluded) and such additional
hours as Tenant may elect.

                                      -3-
<PAGE>

                  (m)      "Permit Contingency Period" means that period
beginning on the date which Tenant files its application with the City of
Fairfield for approval of its Permits and ending on the Two Hundred Tenth
(210th) day thereafter, during which Tenant shall attempt to obtain the Permits.

                  (n)      "Permits" are any and all governmental licenses,
approvals, permits and other determinations, including, without limitation, sign
permits, required for the completion of Tenant's Work and the conduct of the
Permitted Use on the Premises, including, but not limited to, a zoning change,
variance, use permit, environmental law compliance, utility connection permit,
sign approval, and building permit, all for the operation of a financial
institution as shown on Tenant's plans. No such license, approval or other
determination shall be treated as a Permit under this Lease unless the same
shall have been validly issued on terms and conditions acceptable to Tenant and
all applicable appeal or review periods for such approval have expired without
the filing of an appeal or request for review including without limitation by
any ballot initiative or judicial action (hereinafter "Appeal"), or if an Appeal
has been filed or occurs, that the Appeal has been resolved on terms
satisfactory to Tenant in its reasonable discretion.

                  (o)      "Personalty" means Tenant's trade fixtures,
furniture, equipment, signs, and any items identifying Tenant's business or
Tenant's proprietary marks, inventory and other personal property located in or
on the Premises (including, but not limited to, the ATMs, night depository and
vault).

                  (p)      "Premises Delivery Date" means the date on which
Landlord delivers possession of the Premises to Tenant and the Premises are
available to Tenant to commence Tenant's Work, provided that such date shall be
no earlier than sixty (60) days after Tenant's receipt of Landlord's notice that
Landlord's Work in the Premises is Substantially Complete (with such actually
being the case), including the Substantial Completion of all exterior
improvements to the Project described in the plans referenced in Exhibit "B".

                  (q)      "Rental" has the meaning set forth in Section 5.1.

                  (r)      "Substantially Complete" or "Substantially Completed"
means all of Landlord's Work is complete except for minor punch list items,
provided such other work will not (i) impede the completion of Tenant's Work or
preclude Tenant from obtaining any Permit or governmental approval that it needs
to open for business or otherwise operate its business at the Premises,
including without limitation a certificate of occupancy, (ii) have a total cost
in excess of five percent (5%) of the total costs of Landlord's Work, and (iii)
take longer than fifteen (15) days to complete.

                  (s)      "Taxes" has the meaning set forth in Section 6.2.

                  (t)      "Tenant Improvements" mean all interior structures
and Personalty located on the Premises, including the ATMs and all
identification, advertising and media required by Tenant to be located on the
Premises for the operation of its business.

                  (u)      "Tenant Initial Improvements" mean all Tenant
Improvements constructed prior to the Commencement Date.

                  (v)      "Tenant's Work" has the meaning set forth in Section
8.2.

                  (w)      "Term" means the Initial Term and, after exercise of
Tenant's renewal option(s), the Extension Period(s).

                  (x)      "Unavoidable Delay" has the meaning set forth in
Section 18.12.

         1.3      Attachments. The following documents attached hereto or
delivered separately to Tenant, as well as all drawings and documents prepared
pursuant thereto, are hereby made a part hereof:

         Exhibit "A"       Plan of Premises

         Exhibit "A-1"     Project Legal Description

                                      -4-
<PAGE>

         Exhibit "B"       Description of Landlord's Work

         Exhibit "C"       Description of Tenant's Work

         Exhibit "D"       Form of Declaration of Commencement Date

         Exhibit "E"       Insurance Coverage

         Exhibit "F"       Signage Renderings

         Exhibit "G"       Form of Subordination, Non-Disturbance and Attornment
                           Agreement

         Exhibit "H"       Form of Memorandum of Lease

         Exhibit "I"       Interim Parking Agreement.

                                    ARTICLE 2
                                    PREMISES
                                    --------

         2.1      Demise. Landlord hereby leases to Tenant, and Tenant hereby
leases from Landlord, the Premises and hereby grants to Tenant, its customers,
guests, invitees, employees, agents and licensees for use twenty-four (24) hours
a day, seven (7) days a week, all non-exclusive easements, rights and privileges
appurtenant thereto, including the right to use the "Common Areas" as specified
more fully below for the Term and at the Rental hereinafter described.

         2.2      Landlord's Representation Regarding the Condition of Premises.
Landlord, to its actual knowledge, represents to Tenant that as of the Premises
Delivery Date, the Premises and the Project, shall be in compliance with all
applicable Law, including, but not limited to, environmental laws and
regulations pertaining to hazardous materials, zoning (including, without
limitation, as to the use permitted hereunder, and the American with
Disabilities Act), and that any HVAC, electrical, plumbing or any other systems
currently existing in or serving the Premises, shall be in good working order,
and in compliance with applicable law, and any HVAC, electrical, plumbing or any
other systems to be upgraded, installed in or to serve the Premises by Landlord
shall be new and, in either case, shall be of the capacity specified in Exhibit
"B" and that Landlord prior to the Premises Delivery Date shall remove from the
Premises and any area in which Tenant's work may be performed, any hazardous
materials or installations, including, without limitation, all asbestos. The
foregoing representation shall not apply to any installation or repair to be
undertaken by Tenant in accordance with the terms of this Lease and Tenant shall
be responsible under the American with Disabilities Act for all "requirements"
within the Premises. On or before the Premises Delivery Date, Landlord shall
deliver to Tenant, if available, a certificate from the local building permit
authority confirming that the Premises is free from all asbestos.

         2.3      Landlord Providing Information. Landlord acknowledges that it
has provided Tenant with a legible copy of Landlord's most recent title policy
for the premises and the Project, if available, or if not a current preliminary
report for the Premises and the Project, and, a copy of the current paid tax
bill, and an engineered land survey, whether they are applicable solely to the
Premises and the Project or to a larger parcel of which the Premises and the
Project are a part. Landlord has also provided Tenant with any other information
concerning the Premises and the Project as Tenant may reasonably request,
including, without limitation, any available "as-built" plans describing the
Premises and the mechanical systems contained therein; a current, preliminary
drawing accurately showing dimensions of the proposed location of the Premises
(and service areas) and existing and proposed improvements for the remainder of
the Project; a floor plan for the Premises showing the demising walls and
location of all columns and other structural elements within the Premises; a
copy of Landlord's most recent environmental and soils reports; and complete
information regarding existing and proposed grades and the locations, sizes,
elevations, flow lines and pressures, as applicable, for all utility mains which
are to be extended to serve the Premises.

         2.4      Conditions to Lease. This Lease is expressly conditioned upon
satisfaction or waiver by Tenant of each of the following conditions within the
time limits set forth:

                                      -5-
<PAGE>

                  (a)      Landlord shall be able to obtain or have issued to
Tenant (at Landlord's sole cost), the Title Policy upon the recordation of the
Memorandum showing the leasehold title to the Premises vested solely in Tenant;

                  (b)      Inspection of the Premises by Tenant and its agents
within the Inspection Period to verify that (i) the Premises shall contain not
less than the square footage set forth in Section 1.1; (ii) the Premises shall
not contain Hazardous Materials, and (iii) the Premises are suitable in all
respects for Tenant's purposes;

                  (c)      Within the Permit Contingency Period, Tenant shall at
its expense, procure any and all Permits. Landlord agrees and represents to
Tenant that Tenant will not be prevented from obtaining (or complying with) any
Permits as the result of Landlord's acts or omissions;

                  (d)      Within the Inspection Period, receipt by Tenant of
evidence reasonably satisfactory to Tenant that Landlord has received a building
permit to complete Landlord's Work, as described in Exhibit "B", attached
hereto;

                  (e)      Within the Inspection Period, receipt by Tenant of
any Non-Disturbance Agreement, as required by Section 15.3;

         Tenant will use reasonable efforts and due diligence to satisfy the
conditions set forth in this Section 2.4. Tenant will notify Landlord promptly
upon waiver or satisfaction of each of the conditions set forth in this Section
2.4. Except as otherwise stated in Section 2.5, if within ten (10) days after
the expiration of the applicable time period Tenant does not terminate this
Lease by written notice to Landlord the conditions shall be deemed waived.
Landlord hereby grants to Tenant, its agents, employees, contractors, and
representatives the right to enter the Premises during normal business hours for
the purpose of conducting its due diligence investigation and verifying the
square footage of the Premises, as set forth above, provided that such
activities do not materially interfere with the performance of Landlord's Work.

         2.5      Notice of Inspection Results. Within the Inspection Period,
and provided Tenant has not elected to terminate the Lease, Tenant shall notify
Landlord of the results of any inspections performed by Tenant. This notice
shall include a statement of objections ("Objections"), if any, and actions
Landlord is requested to correct or cure the same regarding: (a) title and
access to the Premises; (b) the soil condition of the Premises; and (c) any
other conditions related to the Premises. All monetary liens or encumbrances
against title to the Premises ("Monetary Liens") shall be deemed to be included
in Objections timely delivered to Landlord and Landlord shall remove the same
from title for the Premises or obtain a Non Disturbance Agreement for said
Monetary Liens on or prior to the time Tenant records its Memorandum provided,
however, that Monetary Liens shall not include nondelinquent taxes and
assessments. Any notice to Landlord containing objections, but not expressly
stating that it is a termination notice from Tenant, shall not cancel this Lease
and Landlord shall respond to any objections in the manner set forth in Section
2.6.

         2.6      Correcting Objections. Within ten (10) days subsequent to the
date Tenant provides Landlord with any notice pursuant to Section 2.5 of the
results of any inspections performed by Tenant, Landlord shall deliver to Tenant
a notice ("Corrective Action Notice") specifying either that (a) Landlord will
perform all or part of the corrective action requested by Tenant or (b) Landlord
will not perform all or part of the corrective action requested by Tenant. If
Landlord does not, within the foregoing time period, deliver a written
commitment to Tenant to take all of the corrective action requested by Tenant or
fails to completely correct or cure any objection Landlord has agreed to correct
or cure prior to the expiration of the Inspection Period, Tenant may terminate
this Lease by delivering a written termination notice to Landlord within the
later of (i) ten (10) days following Tenant's receipt of the Corrective Action
Notice or (ii) the expiration of the Inspection Period.

                                    ARTICLE 3
                                      TERM

         3.1      Commencement Date. The Commencement Date shall be the earlier
to occur of the following: (i) the day on which Tenant commences its normal
business operations from the Premises, or (ii) that day which is sixty (60) days
after the later of (a) the Premises Delivery Date or (b) the date on which
Tenant obtains

                                      -6-
<PAGE>

its Permits required for the completion of the Tenant's Work ("Tenant's
Construction Period"), which Tenant's Construction Period shall be extended one
(1) day for each day Tenant's construction of the Tenant's Work is delayed by
Landlord Delays. Landlord and Tenant hereby agree to execute a Declaration of
Commencement Date, in the form attached hereto as Exhibit "D", to confirm the
Commencement Date, the Term, the number of rentable square feet in the Premises
and the other matters listed thereon. Failure to execute said Declaration of
Commencement Date shall not affect the commencement or expiration of the Term.
Notwithstanding the foregoing in no event shall the Commencement Date occur
until (a) Landlord has duly executed and acknowledged and delivered to Tenant
(i) the Memorandum of Lease required by Section 18.6, and (ii) any Non
Disturbance Agreement(s) as required by Section 15.2.

         3.2      Option To Extend Term. Tenant shall have the right to extend
the Term for the Extension Period specified in Section 1.1, provided no Event of
Default (after the appropriate notice and cure provisions provided herein) shall
have occurred and be continuing on the date Tenant provides Landlord notice
that it is exercising Tenant's option for the Extension Period or on the date
that the applicable option would take effect. Tenant's election to extend the
Term shall be deemed to have been made for Extension Period unless Tenant has
provided written notice to Landlord of its election not to exercise said option
at least one hundred eighty (180) days prior to the expiration of the Initial
Term. In the event that the Term shall be extended as provided hereunder, the
Extension Period shall be upon the same terms and conditions as are in effect
under this Lease immediately preceding the commencement of the Extended Term,
except that the Annual Basic Rental due from Tenant shall be increased as
provided in Section 1.1 and Section 5.2.

         3.3      Termination.

                  (a)      This Lease shall terminate on the scheduled
expiration of the Term, which is not event shall be beyond the last extension
period as stated in Section 1.1. Upon the expiration of the Term, Tenant hereby
waives all rights to, any notice to terminate, vacate or quit the Premises.

                  (b)      In the event Tenant, within the Permit Contingency
Period, is unable, despite its reasonable efforts, to obtain all Permits, Tenant
shall have the unilateral right and option to terminate this Lease by written
notice to Landlord delivered on or before that date specified in Section 2.4.
provided that Tenant shall have applied for all Permits on or before that date
which is ninety (90) days after Landlord's delivery to Tenant of construction
drawings for Landlord's Work.

                  (c)      If the Premises Delivery Date does not occur within
sixty (60) days after the Scheduled Delivery Date, Tenant may elect to cancel
this Lease by giving thirty (30) days prior written notice of such election to
Landlord within fifteen (15) days after the expiration of the above referenced
sixty (60) day period. In the event Tenant exercises its right to terminate this
Lease as provided under the foregoing sentence, Landlord shall reimburse Tenant
for all reasonable out of pocket costs incurred by Tenant prior to the date
Tenant terminates the Lease ("Termination Fee") on or before that date which is
thirty (30) days after receipt of Tenant's notice of termination; provided,
however, that if Landlord is able to cause the Premises Delivery Date to occur
within thirty (30) days of its receipt of termination notice given pursuant to
this provision of the Lease, any such Tenant termination notice shall be deemed
to be rescinded and of no further effect.

                  (d)      Upon termination of this Lease in accordance with
Section 2.4 and/or, in the event of termination by Tenant under subparagraph (c)
above, and the payment by Landlord of the Termination Fee, neither Landlord nor
Tenant shall have any further obligations or liability under this Lease (other
than with respect to those obligations or liabilities which this Lease expressly
provides survive such termination).

         3.4      Holding Over. Any holding over by Tenant after the expiration
of the Term with the consent of Landlord shall be on a month-to-month basis,
terminable by either party on thirty (30) days notice, and shall be at the
Annual Basic Rental specified herein (prorated on a monthly basis), provided
the Annual Basic Rental shall be increased monthly, rather than annually, for
the first month after the expiration of the Term by ten percent (10%) and for
each month thereafter by the Percentage Increase (which is the Consumer Price
Index effective as of the first day of the calendar month prior to the month for
which the calculation is being made) and shall otherwise be on the terms and
conditions set forth herein, so far as applicable. Any holding over without the
consent of Landlord shall be treated as a tenancy at sufferance at one hundred
and twenty-five percent (125%) of the Annual Basic

                                      -7-
<PAGE>

Rental specified herein (prorated on a daily basis) and shall otherwise be on
the terms and conditions set forth herein, so far as applicable.

                                    ARTICLE 4
                                       USE
                                       ---

         4.1      Permitted Use. The Premises may be used for the Permitted Use
and, subject to Landlord's approval, which approval shall not be unreasonably
withheld, conditioned, or delayed, any other lawful retail use provided that
such other use is not precluded by the REA or another tenant exclusive then in
effect. Nothing contained herein shall constitute a covenant of continuous
operations by Tenant and Tenant shall have the right to cease operation of its
business at any time.

         4.2      Exclusive Use. Provided that Tenant has not ceased the conduct
of the Permitted Use specified in Section 4.1, for a period longer than one
hundred eighty (180) days, excluding discontinuances due to events of damage or
destruction or due to interruption or discontinuance of service and utilities to
the Premises, or Landlord's failure to perform its obligations under this Lease
("Exempted Discontinuances"), Tenant shall have the exclusive right within the
Project except for providing banking, lending or other financial services and
ATMs, and Landlord shall not enter into a lease or other agreement that would
permit the tenancy or occupancy of any portion of the Project (excluding the
Premises) for any use in violation of the above specified restrictions; provided
that the restrictions of this Section 4.2 shall not apply to any existing
mortgage lender located in the Building or to the possible location of an Edward
Jones office in the building owned by Landlord located at 720 Texas Street,
Fairfield, California. In the event a violation of any of the covenants set
forth in this Section 4.2 continues for more than thirty (30) days after notice
thereof from Tenant to Landlord, then in addition to any other right or remedy
it may have as a result of violation of the covenants, Tenant may terminate this
Lease upon sixty (60) days written notice to Landlord, unless Landlord is
diligently pursuing a cure, or as a result of a judicial decision it is
determined that such exclusive is unenforceable. Tenant's exclusive rights set
forth herein shall be included in the Memorandum of Lease. With respect to the
Project only the foregoing exclusive or use restriction shall, if Landlord is a
corporation, limited liability company or other entity, apply to all activities
of officers, directors, members, subsidiaries and Affiliates of Landlord and
shall, if Landlord is a partnership, apply to all activities of general partners
of Landlord. Tenant may enforce this covenant by a mandatory or prohibitory
injunction obtained in the event of a breach of Landlord's obligations
hereunder.

                                    ARTICLE 5
                                     RENTAL
                                     ------

         5.1      Rentals Payable; Net Rental. Commencing on the Commencement
Date and continuing throughout the Term, Tenant agrees to pay to Landlord as
rental ("Rental") for the Premises, the following:

                  (a)      an annual sum equal to the Annual Basic Rental; plus

                  (b)      all additional sums, charges or amounts of whatever
nature to be paid by Tenant to Landlord under this Lease, whether or not such
sums, charges or amounts are referred to as additional rental ("Additional
Rental").

         5.2      Annual Basic Rental; Rental During Extended Term. Annual Basic
Rental in the amount provided under Section 1.1 shall be payable in equal
monthly installments of one-twelfth (1/12th) of such annual sum, in advance, on
the first day of each full calendar month during the Term, the first such
payment to include also any prorated Annual Basic Rental for the period from the
Commencement Date to the first day of the first full calendar month in the
Term.

         5.3      Delinquent Rental. Tenant shall pay all Rental when due and
payable, without any setoff, deduction or prior demand therefor whatsoever
(except as otherwise expressly provided herein). If any payment of Rental is not
made within ten (l0) business days after receipt of written notice from Landlord
that the same is delinquent there shall be added thereto, as Additional Rental
to compensate Landlord for the inconvenience, administrative burden and expense
created hereby, an amount equal to five percent (5%) of the amount due, making
the total Rental due, including the Additional Rental, one hundred five percent
(105%) of the Rental that would

                                      -8-
<PAGE>

otherwise be due. Such late charges on overdue Rental shall be in addition to,
and not in limitation of, Landlord's other rights and remedies in the event of
such late payment.

                                    ARTICLE 6
                                      TAXES
                                      -----

         6.1      Taxes. Landlord shall pay, prior to delinquency, all general
real estate taxes and installments of special assessments coming due during the
Lease term on the Premises, and all personal property taxes with respect to
Landlord's personal property, if any, on the Premises. Tenant shall be
responsible for paying all personal property taxes with respect to Tenant's
personal property at the Premises.

                                    ARTICLE 7
                                  COMMON AREAS
                                  ------------

         7.1      Use of Common Areas. Landlord grants to Tenant and its agents,
employees and (where such areas are open to the public) its customers, a
non-exclusive license to use in common with others entitled thereto during the
Term, the Common Areas, subject to the exclusive control and management thereof
at all times by Landlord and subject to the right of Landlord to designate and
change from time to time the portions so to be used. Tenant's use of the Common
Areas will include a license, coupled with an interest, to use the lobby area of
the Building (containing approximately 506 square feet of floor space) for
walk-up access to Tenant's ATMs and night depository to be located in the
exterior wall of the Premises within the lobby area and for the installation of
such security systems and lighting as required by applicable laws regarding
ATMs. A portion of Tenant's Basic Rent as indicated in the Rent Schedule in
Section 1.1 is allocated as payment for such usage right.

         7.2      Management and Operation of Common Areas. Landlord will, at
Landlord's sole cost and expense, operate and maintain or will cause to be
operated and maintained the Common Areas in a first-class, clean and safe
condition consistent with comparable first-class retail centers. Landlord will
have the right to establish, modify and enforce reasonable rules and regulations
("Rules and Regulations") with respect to the Common Areas and Tenant shall
abide by the same, subject to any limitations set forth herein. Notwithstanding
the above, neither Tenant nor any of its employees, agents, customers, invitees
and/or licensees shall have any obligation to conform to, abide by, or take any
other action with respect to any such Rule or Regulation which (A) purports to
deprive Tenant of any of material rights under this Lease; (B) purports to
impose on Tenant any material obligation or obligations beyond those contained
in this Lease; and/or (C) is enforced in a discriminatory fashion by Landlord.
Tenant acknowledges that the Rules and Regulations expressly set forth in
Exhibit "I" do not deprive Tenant of any of material rights under this Lease or
impose on Tenant any material obligation or obligations beyond those contained
in this Lease. Whenever the Rules and Regulations conflict with this Lease, this
Lease shall control and be deemed the prevailing document for purposes of
resolving the conflict.

         7.3      Parking. During the term of this Lease, Tenant shall have the
nonexclusive use in common with Landlord, other tenants of the Building, their
guests and invitees, of the non-reserved common automobile parking areas,
driveways, and footways, subject to rules and regulations for the use thereof as
prescribed from time to time by Landlord. Landlord reserves the right to
designate parking areas within the Project or in reasonable proximity thereto,
for Tenant and Tenant's agents and employees. Tenant shall provide Landlord with
a list of all license numbers for the cars owned by Tenant, its agents and
employees. Separated structured parking, if any, located about the Building is
reserved for tenants of the Building who rent such parking spaces. Tenant hereby
leases from Landlord, three (3) on-site spaces in the Project parking area and
seven (7) off-site spaces (to be located in the parking lot to be constructed at
the corner of Empire and Jefferson). Until such offsite parking is available,
interim parking is to be provided by Landlord to Tenant per the Letter Agreement
attached hereto and incorporated herein as Exhibit "I". In consideration Tenant
leasing the Premises under this Lease, Tenant shall not be required to pay any
monthly rental for the above spaces throughout the term of the Lease.

                                    ARTICLE 8
                                  IMPROVEMENTS
                                  ------------

         8.1      Landlord's Work. Subject to Unavoidable Delay, Landlord will
promptly and at its sole cost and expense, complete the work, if any, to be
performed by Landlord which is described in the plans referenced

                                      -9-
<PAGE>

in Exhibit "B", together with all other items designated or described in
Exhibit B (collectively "Landlord's Work"), whether necessary to permit Tenant
to commence the work to be performed by Tenant ("Tenant's Work") under Exhibit
"C" or otherwise. Subject to Section 18.12, Landlord shall cause Landlord's Work
to be Substantially Complete before the Scheduled Delivery Date specified in
Section 1.1 in accordance herewith and Exhibit "B". If Landlord's Work is not
Substantially Complete before the Scheduled Delivery Date, Tenant shall be
entitled to a credit against Rental two (2) days for each day that Landlord's
Work is not Substantially Complete beyond the Scheduled Delivery Date. In the
event of any conflict between Exhibit "B" and the Lease, Exhibit "B" shall
control. Landlord hereby warrants and guarantees Landlord's Work to be free from
defects in workmanship and materials for a period of one (1) year from the
Premises Delivery Date. Upon the expiration of said one (1) year period,
Landlord shall assign to Tenant all warranties and guarantees with respect to
Landlord's Work and, to the extent of any such warranties and guarantees are not
assignable, Landlord agrees to enforce the same for the benefit of Tenant.
Landlord shall promptly (i) repair any latent defects in Landlord's Work no
matter when appearing and (ii) repair any so-called punch-list items about which
Tenant notifies Landlord within sixty (60) days of the Premises Delivery Date.
Landlord's Work shall be performed in a good and workmanlike manner, using new
materials, and the Premises shall be delivered free of all liens and
encumbrances and not in violation of any applicable Laws. In the event a
mechanic's lien is recorded with respect to Landlord's Work, Landlord shall
indemnify, defend and hold Tenant harmless from all costs, losses, damages or
causes of action arising from any such lien.

         8.2      Tenant's Work. Subject to Section 18.12, on or before the
Commencement Date, Tenant shall, at its sole cost and expense, complete all
Tenant's Work in substantial accordance with the Final Plans (as defined below)
as approved by Landlord. Ten (10) days prior to the Premises Delivery Date,
Tenant will be permitted by Landlord to enter the Premises for the purpose of
performing Tenant's Work and for the purpose of installing its fixtures and
other equipment, provided (i) Tenant shall have obtained Landlord's written
approval of the Final Plans, (ii) Tenant shall have deposited with Landlord the
certificates of insurance required in Sections 12.3 and 12.4; and (iii) Tenant's
activities shall not interfere with or delay Landlord's Work which shall be
reasonably determined by Landlord. Tenant shall, at its expense, remove from the
Premises and from the Project all trash which may accumulate in connection with
Tenant's activities and, should Tenant fail to do so, Landlord may, no earlier
than five (5) business days after providing written notice to Tenant, in
addition to any other right or remedy of Landlord, remove such trash following
written notice to Tenant, at Tenant's expense, and the reasonable expenses so
incurred by Landlord shall be due and payable by Tenant as Additional Rental,
upon demand. During such period, Tenant shall perform all duties and obligations
imposed by this Lease, including, without limitation, those provisions relating
to insurance and indemnification. All improvements to the Premises made or
performed by Tenant pursuant to Sections 8.2 or 10.4 and Exhibit "C" shall be
the property of Tenant throughout the Term. Upon the expiration of the Term or
earlier termination of this Lease, all improvements to the Premises, not
including any trade fixtures, ATMs, vault, equipment, Tenant's signs and any
items identifying the Tenant's business or Tenant's proprietary marks, or other
removable personal property, shall be Landlord's property and shall be
surrendered to Landlord unless Landlord notifies Tenant to remove any such
improvements made by Tenant pursuant to Exhibit "C" or Section 10.4 which
Tenant shall do at its sole cost and expense prior to the end of the Term.
Notwithstanding anything to the contrary contained herein, Landlord shall
continue to be liable for (a) latent defects, and (b) patent defects in
Landlord's Work, notice of which, is delivered to Landlord within one (1) year
of the Premises Delivery Date.

         8.3      Mechanic's Liens. No work which Landlord permits Tenant to do
or which Tenant is obligated to perform pursuant to this Lease, whether in the
nature of erection, construction, alteration or repair, shall be deemed to be
for the immediate use and benefit of Landlord so that no mechanic's or other
lien shall be allowed against the estate of Landlord by reason of any consent
given by Landlord to Tenant to improve the Premises. In the event any mechanic's
or other lien shall at any time be filed against the Premises by reason of work,
labor, services or materials performed or furnished, or alleged to be performed
or furnished, to Tenant or to any one holding the Premises through or under
Tenant, Tenant, within thirty (30) days of filing, shall cause the same to be
discharged of record or bonded. If Tenant shall fail to cause such lien to be so
discharged or bonded after being notified of the filing thereof, then, in
addition to any other right or remedy of Landlord, Landlord may discharge the
same by paying the amount claimed to be due or may cause the same to be bonded,
and the amount so paid by Landlord, including reasonable attorney fees incurred
by Landlord in either defending against such lien or procuring the discharge or
bonding of such lien, shall be due and payable by Tenant to Landlord, as
Additional Rental, upon demand.

                                      -10-
<PAGE>

         8.4      Tenant's Personalty.

                  (a)      Tenant's Personalty located in or upon the Premises
shall not become a part of the Premises. Tenant's Personalty is and shall remain
the property of Tenant and shall be treated as trade fixtures and personal
property of Tenant for the purposes of this Lease. Tenant may remove its
Personalty from the Premises (other than HVAC or other building systems) at any
time prior to the termination of this Lease. Tenant, at its own cost and
expense, may install, place, reinstall or replace upon the Premises, or remove
from the Premises, any such Personalty. Any replacement Personalty shall not
become the property of Landlord but shall remain Tenant's property the same as
the original Personalty.

                  (b)      Landlord waives any statutory landlord's lien and any
attachment for Rent on the Personalty that Landlord may have or may hereafter
acquire. Landlord acknowledges and agrees that Tenant's Personalty may be leased
from an equipment lessor or encumbered by Tenant's lender (jointly "Equipment
Lessor") and that Tenant may execute and enter into an equipment lease or
security agreement with respect to such Personalty ("Equipment Lease"). If and
to the extent required by any Equipment Lease or Equipment Lessor, Landlord
shall execute and deliver to the Equipment Lessor a written consent or
acknowledgment, in recordable form in which Landlord (i) acknowledges and agrees
that the Personalty which is the subject of the Equipment Lease constitute the
personal property of Tenant, and shall not be considered to be part of the
Premises, regardless of whether or by what means they become attached thereto,
(ii) agrees that it shall not claim any interest in such Personalty, and (iii)
agrees that Equipment Lessor may enter the Premises for the purpose of
exercising any right it may have under the provisions of the Equipment Lease,
including the right to remove such Personalty, provided that such Equipment
Lessor agrees to repair any damage resulting from such removal and such removal
and repair is completed within thirty (30) days after any termination of this
Lease.

         8.5      Landlord's Construction Plans. Landlord shall deliver to
Tenant final construction drawings describing Landlord's Work, including floor
plans, exterior elevations and a site plan, on or before the Effective Date.
Landlord has delivered to Tenant final construction drawings describing
Landlord's Work.

         8.6      Tenant's Construction Plans. Tenant, at its own cost and
expense, shall engage an architect to prepare preliminary space plans or
construction working drawings ("Preliminary Space Plans") for Tenant's initial
renovation, improvements, and/or alterations. Tenant shall use reasonable
efforts to submit the Preliminary Space Plans to Landlord for Landlord's
approval, which shall not be unreasonably withheld, conditioned or delayed,
within forty five (45) days of the Effective Date. Landlord acknowledges that it
is familiar with Tenant's typical storefront designs, including its awnings,
signs, parapets and trade colors. Landlord also acknowledges that the
Preliminary Space Plans shall include the ATMs which will be installed in the
Premises, but will be accessible outside the Premises from the Common Area, and
may include a security system to be installed in the Premises. It shall be
unreasonable for Landlord to disapprove professionally designed, lawfully
permitted storefront designs which arc generally consistent with storefronts at
Tenant's other locations; provided, however, that Tenant shall not materially
change the City-approved, exterior elevation without first obtaining Landlord's
written approval prior to seeking the City's approval. Any such changes to the
exterior elevation pursuant to the foregoing sentence shall be at Tenant's sole
expense. In the event Landlord fails to review Tenant's Preliminary Space Plans
within five (5) days after receipt thereof, Tenant's Preliminary Space Plans
shall be deemed approved; this provision shall also apply to any subsequent
submissions by Tenant.

         Within forty five (45) days after the Preliminary Space Plans have been
approved, Tenant, at its sole cost and expense, shall prepare and deliver to
Landlord four copies and one sepia of its final plans or construction drawings
and specifications for Tenant's Work, based on the approved Preliminary Space
Plans ("Final Plans") covering the items of construction and improvements that
were included in the approved Preliminary Space Plans. Within five (5) days
after receipt of the Final Plans, Landlord shall either approve the Final Plans
or deliver to Tenant its specific objections to the Final Plans together with
its proposed solution to each objection. Landlord shall not disapprove of the
Final Plans if the same are in substantial conformance with the approved
Preliminary Space Plans. Tenant shall obtain Landlord's consent to any material
changes to the Final Plans as approved by Landlord, provided that Landlord shall
be deemed to have granted such consent (i) with respect to any changes required
by the City or County, as applicable, where the Premises is located as a
condition of Tenant being able to obtain any permits necessary for it to
construct Tenant's Work or (ii) if Landlord fails to disapprove of such change
within five (5) days after receipt of a request from Tenant for approval of the
same. In the event of any discrepancy

                                      -11-
<PAGE>

between the provisions of this Lease (including the Exhibits) and the Final
Plans (as defined below) provided to and approved by Landlord, the Final Plans
shall control. Tenant shall engage and supervise the performance of a general
contractor for the purpose of performing the Tenant's Work.

         8.7      Landlord's Cash Allowance. Landlord shall pay Landlord's Cash
Allowance to Tenant in the amount not to exceed Thirty-Three Thousand and
no/100ths Dollars ($33,000.00) no later than five (5) business days after the
submission by Tenant to Landlord of copies of paid invoices for labor,
materials or equipment incurred by Tenant in connection with the completion of
Tenant's improvements on the Premises and a copy of Tenant's certificate of
occupancy. In the event Landlord fails to pay Tenant Landlord's Cash Allowance
as hereinbefore provided, Tenant shall have the right to setoff such Landlord's
Cash Allowance against Annual Basic Rental and Additional Rental.

                                    ARTICLE 9
                                   OPERATIONS
                                   ----------

         9.1      Operations by Tenant.

                  (a)      With regard to the use and occupancy of the Premises
and Project, Tenant will at its expense: (i) keep the inside and outside of all
glass in the doors and windows of the Premises in a good, clean and safe
condition: (ii) keep all exterior store surfaces of the Premises in a good,
clean and safe condition; (iii) replace promptly any cracked or broken glass of
the Premises with glass of like kind and quality; (iv) maintain the Premises in
a clean, orderly, sanitary and attractive condition and reasonably free of
insects, rodents, vermin and other pests; (v) have garbage, trash, rubbish and
refuse removed from the interior of the Premises on a daily basis; and (vi)
comply with all Laws, now or hereafter in force, except that Tenant shall have
no responsibility to correct or remedy (A) any violations of Laws related in any
way to the Premises existing on or prior to the Premises Delivery Date, (B) any
violations of Laws caused by the action of Landlord, its employees, agents or
contractors, (C) any violations of Laws related to the existence of Hazardous
Materials on the Premises except as provided in Section 9.3; and/or (D) any
violations of Law requiring (1) structural repair or modifications or (2)
repairs or modifications to the utility or center service equipment located
outside of or not exclusively serving the Premises or (3) installations of new
Project service equipment, such as fire detection or suppression equipment,
unless such repairs, modifications, or installations are due to Tenant's Work,
alterations, or repairs in the Premises or Tenant's particular manner of use of
the Premises (as opposed to retail store operations, generally), or are due to
the negligence or willful misconduct of Tenant or any agent, employee, or
contractor of Tenant, or the result of a new Law or new interpretation of a Law.

                  (b)      In regard to the use and occupancy of the Premises
and Project, Tenant will not: (i) use or permit the use of any loudspeakers,
phonographs, public address systems or sound amplifiers audible or visible
outside of the Premises; (ii) permit undue accumulations of garbage, trash,
rubbish or other refuse within or without the Premises; or (iii) cause or permit
objectionable odors to emanate or to be dispelled from the Premises.

         9.2      Signage. Tenant shall not have the right to place or suffer to
be placed or maintained on the exterior of the Premises any sign, awning,
advertising matter or any other thing of any kind unless first approved by
Landlord, such approval not to be unreasonably withheld, conditioned or delayed.
Tenant's exterior signage much comply with the City of Fairfield standards.
Tenant shall obtain all necessary Permits for such exterior sign, awning, and
advertising matter and it shall be professionally prepared and similar to that
signage used by substantially all of Tenant's other financial centers. Landlord
shall not have the right to approve interior signage of the Premises. Tenant
will, at its sole cost and expense, maintain such sign, decoration, lettering,
advertising matter, or other thing as may be permitted hereunder in good
condition and repair at all times. Landlord's approval of signage as required
herein shall not be unreasonably withheld, delayed or conditioned. The foregoing
notwithstanding, it shall be unreasonable for Landlord to disapprove
professionally prepared, lawfully permitted exterior signage consistent with
Tenant's standard permanent store signage used at Tenant's other financial
centers. Notwithstanding anything to the contrary set forth herein, Landlord
hereby approves Tenant's proposed signage renderings attached hereto as Exhibit
"F". Notwithstanding the above, Tenant shall have the right to maintain two (2)
signs in the signage on two (2) sides of the building on the Premises.

         9.3      Hazardous Materials. Without limiting the generality of their
other covenants hereunder, Tenant agrees in regard to the use and occupancy of
the Premises, and Landlord agrees in regard to the remainder of

                                      -12-
<PAGE>

the Project and the Common Area, to comply with all environmental Laws,
including, without limitation, those applicable to "Hazardous Materials." Tenant
shall indemnify, defend, and hold harmless Landlord and its officers, employees,
agents, contractors and those claiming by, through or under Landlord, from and
against all loss, cost and expense (including, without limitation, attorney's
fees) of whatever nature suffered or incurred by Landlord (i) on account of the
breach by Tenant of its covenant in the first sentence of this Section 9.3 with
regard to the presence of Hazardous Materials on the Premises; or (ii) caused by
Hazardous Materials brought onto the Project or the Common Area by Tenant or
Tenant's employees, agents, vendors, guests or invitees in violation of said
covenant. Landlord shall indemnify, defend, and hold harmless Tenant and its
officers, employees, agents, contractors and those claiming by, through or under
Tenant, from and against all loss, cost and expense (including, without
limitation, attorney's fees) of whatever nature suffered or incurred by Tenant
on account of the breach by Landlord of its covenant in the first sentence of
this Section 9.3 with regard to the release of Hazardous Materials by Landlord
or Landlord's employees, agents, or contractors. Notwithstanding any other term
or condition of this Lease, Landlord agrees that the use or disposal of wastes
or materials such as cleaning products in quantities and concentrations
customarily found in food service establishments similar to Tenant's which are
used in a manner that does not violate any environmental Laws shall not
constitute a breach of this Lease. Nothing set forth above shall be construed to
obligate Tenant to remove, remediate or otherwise respond to, or to indemnify,
defend or hold harmless Landlord (or any other person) as a result of or in
connection with, or to pay to Landlord (or any other person) as Common Area
Expense or otherwise any costs or expenses arising out of, any Hazardous
Materials that (x) were present on or under the Premises, Common Area or any
other portion of the Project on the Premises Delivery Date or at any time prior
thereto, (y) which may migrate onto or under the Premises, Common Areas or other
portion of the Project at any time after the Premises Delivery Date from
adjacent property or sources not owned by Tenant or any person under Tenant's
control, or (z) otherwise not placed onto the Premises or Common Area by Tenant
or Tenant's agents, employees, or contractors, and Tenant shall have no
responsibility under this Lease whatsoever for any such Hazardous Materials. For
purposes of this Lease, Hazardous Materials mean any substance or material that
is toxic, hazardous to health, radioactive, reactive or corrosive or that is
defined or designated as a hazardous or extremely hazardous toxic waste,
material or substance by Law.

                                   ARTICLE 10
                             REPAIRS AND ALTERATIONS
                             -----------------------

         10.1     Repairs To Be Made By Landlord.

                  (a)      Repairs. Landlord's sole repair and maintenance
obligations with respect to the Building and the Common Area of the Project
are, at its expense, (i) to operate, maintain and repair the Common Areas as
provided in Section 7.2 above; (ii) to keep in good order, condition and repair
all common utility systems, service equipment, HVAC, electrical, plumbing and
other mechanical systems in the Building located outside of, or not exclusively
serving the Premises and all structural components of the Building including,
without limitation, the load-bearing walls, structural columns, structural floor
and structural ceiling of the Building, the storefront (excluding, however, all
doors, door frames, windows and glass, repairs to which are the responsibility
of each tenant), and the roof over the Building; and (iii) to make all other
repairs necessitated by (a) the acts or omissions of Landlord, its agents,
employees or contractors or the failure of Landlord to perform its obligations
hereunder or (b) latent defects and items not in compliance with Laws in the
construction of the Building and in Landlord's Work on the Premises; provided
Tenant shall give Landlord notice of the necessity for such repairs with respect
to the Premises and provided that the necessity for such repairs shall not arise
from nor be caused by the negligence or willful acts of Tenant, its agents,
concessionaires, officers, employees, licensees, contractors, vendors, guests or
invitees.

                  (b)      Compliance with Law(s). After delivery of the
Premises to Tenant, Landlord will comply with all Law(s) pertaining to the
condition of the Building and the Premises related to those items which Landlord
constructed or caused to be constructed in the Building or the Premises or which
Landlord is required to maintain and/or repair pursuant hereto. Any improvements
that are from time to time required to be made to the Premises in connection
with complying with any applicable Laws (including building codes and the
Americans with Disabilities Act) shall be completed by Landlord at Landlord's
sole cost and expense.

                  (c)      Emergency Repairs. If any maintenance or repair for
which Landlord is obligated is of an emergency nature which if not attended to
immediately will or might result in injury or damage to

                                      -13-
<PAGE>

persons or property, or materially interfere with the conduct of Tenant's
business at the Premises, then Tenant, after reasonable efforts to contact
Landlord, may make such emergency repairs or perform such maintenance as is
necessary to meet the emergency at Landlord's expense. Landlord will promptly
reimburse Tenant the reasonable cost of the emergency repairs or maintenance
within thirty (30) days after receipt of an itemized statement accompanied by
invoices for the repairs and charges.

         10.2     Repairs To Be Made By Tenant. All repairs to the Premises or
any installations, equipment or facilities therein, other than those repairs
required to be made by Landlord pursuant to Section 10.1 or Article 13, or those
required as the result of the negligence or willful acts of Landlord, its
agents, employees, or contractors, shall be made by Tenant at its expense.
Without limiting the generality of the foregoing, Tenant will keep the interior
of the Premises, together with all HVAC, electrical, plumbing and other
mechanical systems located within, and exclusively serving the Premises (other
than items to be repaired by Landlord pursuant to Section 10.1), and all plate
glass windows, in good order, condition and repair and will make all
replacements thereto from time to time required at its expense; and will
surrender the Premises at the expiration of the Term or at such other time as
it may vacate the Premises in as good condition as when received, excepting only
ordinary wear and tear, damage by Casualty and any damage caused by the failure
of Landlord to perform its obligations under Section 10.1.

         10.3     Damage to the Premises. Tenant will repair promptly, at its
expense, any damage to the Premises and, upon demand, shall reimburse Landlord,
as Additional Rental, for the cost of the repair of any damage elsewhere in the
Project caused by bringing into the Premises any property for Tenant's use, or
by the installation or removal of such property, regardless of fault or by whom
such damage shall be caused (unless caused by Landlord, its agents, employees,
or contractors); and in default of such repairs by Tenant, at the expiration of
ten (10) days after notice to Tenant, Landlord may exercise its self-help rights
provided in Section 18.10.

         10.4     Alterations by Tenant. Tenant will not make any structural
alterations, renovations, improvements or other installations in, on, or to the
Premises or any part thereof (including, without limitation, any alterations of
the storefront or any cutting or drilling into any structural element of the
Building) until Tenant shall have received Landlord's written approval, which
approval Landlord agrees shall not be unreasonably withheld, delayed or
conditioned. Any structural modifications to the Premises which materially
affect the structure of the Premises or Building shall require Landlord's prior
written approval, which approval shall be subject to Landlord's sole discretion.
Tenant may at its sole cost, without Landlord's consent (a) make non-structural,
interior, remodeling or refurbishing alterations which (i) do not affect the
storefront or Project systems, and (ii) are in compliance with the requirements
of Section 8.2 or (b) make any such other alterations or repairs which are of an
emergency nature, provided the same are made in a workmanlike manner and
utilizing good quality materials. Tenant shall have the right to place and
install personal property, trade fixtures, equipment, signs or other items
identifying Tenant's business or Tenant's proprietary marks and other temporary
installations in and upon the Premises, and fasten the same to the Premises. All
personal property, equipment, machinery, trade fixtures, signs or other items
identifying Tenant's business or Tenant's proprietary marks, and temporary
installations, whether acquired by Tenant at the commencement of the Lease term
or placed or installed on the Premises by Tenant thereafter, shall remain
Tenant's property free and clear of any claim by Landlord. Tenant shall have the
right to remove the same at any time during the term of this Lease provided that
all damage to the Premises caused by such removal shall be repaired by Tenant at
Tenant's expense.

         10.5     Changes and Additions to the Project.

                  (a)      Subject to Section 10.5(b), Landlord reserves the
right at any time and from time to time, without the same constituting breach of
Landlord's covenant of quiet enjoyment (express or implied) or an actual or
constructive eviction, and without incurring any liability to Tenant or
otherwise affecting Tenant's obligations under this Lease: (i) to make such
changes, alterations, improvements, repairs or replacements in or to the Project
(including the Common Areas) and the fixtures and equipment thereof, and in or
to the land on which the Project is located, or properties adjacent thereto, as
Landlord may deem necessary or desirable in connection with the remodeling,
reconstruction, redevelopment, redesigning or expansion of the Project or
otherwise, and in connection, therewith, to change the arrangement and/or
location of entrances or passageways, doors and doorways, access ramps, parking
and drive lanes, corridors, elevators or other public parts of the Project, the
Common Areas of the Project; (ii) to make additions, alterations, and
modifications to and rearrangements and reductions of the

                                      -14-
<PAGE>

Project, including the Common Areas; (iii) to change the dimensions and types of
other retail stores; (iv) to convert Common Areas into leasable areas; and (v)
to expand the size of the Project by acquiring or making available additional
land or space and constructing additions thereon.

                  (b)      Landlord's right to make or cause to be made
additions, alterations, modifications or other changes to the Project or Common
Areas as described in Section 10.5(a) above (hereinafter collectively referred
to as "Landlord's Alterations") shall be subject to the following conditions:
Landlord hereby agrees not to construct or maintain or permit any other party or
occupant of the Project to construct or maintain any building, barrier or signs,
or to allow any other changes to the Common Area, within the Premises without
Tenant's consent, which consent may not be unreasonably withheld, conditioned or
delayed; provided, however, Landlord shall be permitted to locate within the
Premises directional signs or temporary improvements normally and customarily
found in common areas of similar Projects located in the Fairfield area;
provided, however, any such signs or improvements shall not materially and
adversely interfere with Tenant's or Tenant's invitees access to, or use of the
Project or the Premises, nor Tenant's right to use the lobby for ATM
installation and access, nor Tenant's parking rights granted under this Lease.
For purposes of this paragraph, a material change in grade shall be deemed a
"barrier." It shall be reasonable for Tenant to withhold its consent for
Landlord's Alterations if the same: (i) materially or adversely interferes with
the visibility of the Premises from the Common Areas; (ii) materially or
adversely alters the trade flow to the Premises or the ATMs; (iii) obstructs
Tenant's service door, if any, or impairs Tenant's right of ingress and egress
through such door; or (iv) materially reduces the quantity or proximity of the
Common Area seating or parking, materially adversely affects traffic flow,
ingress or egress to, or visibility of the Premises or the ATMs. Notwithstanding
anything to the contrary set forth in this Lease, Landlord shall have no right
to (and Landlord shall not) relocate the Premises or the ATMs.

                  (c)      Tenant agrees that Landlord shall have the right to
place in the Premises (but in such manner as not unreasonably to interfere with
Tenant's use of the Premises) utility lines telecommunication lines, shafts,
pipes and the like, for the use and benefit of Landlord and other tenants and
occupants of the Project, and to replace and maintain and repair such lines
(provided such work does not unreasonably interfere with Tenant's use of its
Premises), shafts, pipes and the like, in, over and upon the Premises; Landlord
shall use all reasonable efforts to place any such lines, shafts, pipes and the
like above the finished ceiling, within columns or risers, or otherwise not
visible within the usable area of the Premises. Such lines, shafts, pipes and
the like, shall not be deemed part of the Premises under this Lease. Tenant
shall have no rights with respect to the land or improvements below the floor
slab, above the interior surface of the ceiling of the Premises, or air rights
above the Premises.

         10.6     Roof and Walls. Except as permitted under Section 18.17,
Landlord shall have the exclusive right to use all or any part of the roof and
walls of the Project and the air rights above the roof for any purpose, provided
Tenant's operations are not disrupted thereby.

                                   ARTICLE 11
                                    UTILITIES
                                    ---------

         11.1     Water, Electricity, Telephone, and Natural Gas. Landlord will
provide at points in or adjacent to the Premises the facilities described in
Exhibit "B" to enable Tenant to obtain water, electricity, telephone, HVAC, and
natural gas for the Premises. Tenant shall make application for, arrange for,
pay for (directly to such utility) and be solely responsible for all charges for
utility services for the Premises, except that Landlord shall be solely
responsible for the payment of any initial connection or so-called "tap-in"
fees. All utilities shall be separately metered with the installation of said
meters to be at Landlord's expense. Landlord shall have the same rights and
remedies for nonpayment by Tenant of any utility charges that Landlord has under
this Lease for failure of Tenant to pay Rental. Without limitation of the
foregoing, Tenant acknowledges that the lighting of Tenant's signs on or at the
Premises, including, without limitation the lighting under Tenant's storefront
canopy, if any, will be connected to Tenant's electrical meter. Notwithstanding
the foregoing, Landlord and Tenant agree that water shall not be separately
metered to the Premises. There will be only one (1) meter to the Building for
water and Tenant shall pay fifty percent (50%) of the charges for water usage
billed to the Building as Tenant's share, which payment shall be due within ten
(10) days of Tenant's receipt of Landlord's invoice thereof or upon such other
date as mutually agreed upon by Landlord and Tenant.

                                      -15-
<PAGE>

         11.2     Trash and Garbage Removal. Tenant shall be solely responsible
for trash and garbage removal from the Premises, including the placing of all
trash and garbage in containers which Landlord will provide for such purpose,
which containers shall be an adequately sized and screened trash dumpster or
compactor enclosure located as shown on the Site Plan. Tenant may elect to use
the trash and garbage removal service furnished by Landlord to tenants in the
Project. Tenant's election shall be by written notice to Landlord. If Tenant
elects to use the garbage removal service provided by Landlord, Tenant shall pay
for such service monthly, as Additional Rental, in accordance with a uniform
exhibit of charges to be established by Landlord. In no event shall Tenant be
obligated to pay Landlord more for trash and garbage removal than the
prevailing competitive rates of reputable independent trash removal contractors
for service similar to that provided by Landlord.

         11.3     Cleaning Services. Tenant shall, at its expense, provide the
Premises (including, without limitation, exterior plate glass, exterior doors
and framing, exterior walls, exterior signs, the sidewalks immediately adjacent
to the Premises and the service entrance) with those janitorial, window
cleaning, pest and vermin control, repainting and other services required to
maintain the Premises in a clean, sanitary, safe, and attractive condition in
accordance with the standards of comparable retail establishments, but in any
event, not less than the reasonable standards established by Landlord for the
Common Areas and other retail tenants.

         11.4     Discontinuance and Interruptions of Services. Except as
otherwise expressly provided herein Landlord shall not be liable to Tenant for
damages or otherwise (a) if any utility shall become unavailable from any public
utility company, public authority or any other person or entity supplying or
distributing such utility, or (b) for any interruption in any service hereunder
(including, without limitation, any heating, ventilation or air-conditioning)
caused by the making of any necessary repairs or improvements or by any cause
beyond Landlord's reasonable control, and the same shall not constitute a
termination of this Lease or an eviction of Tenant. In no event shall Landlord
be liable to Tenant for indirect or consequential damages. The forgoing
notwithstanding, in the event Tenant is unable to operate its business from a
part or all of the Premises due to the interruption of any utilities and
services Landlord is required to provide hereunder due to Landlord's negligence
or the negligence of Landlord's employees, agents, servants or contractors and
Tenant shall not be in default, Tenant shall receive a proportionate abatement
of Annual Basic Rental for that period of time commencing upon the second (2nd)
consecutive business day upon which Tenant is unable to operate its business
from the Premises and extending through the day prior to the day Tenant may
reopen the Premises.

                                   ARTICLE 12
                             INDEMNITY AND INSURANCE

         12.1     Tenant's Indemnity. Tenant shall indemnify, defend and hold
Landlord harmless from and against any and all costs, loss, damage or expense
arising out of death of or injury to persons, or loss of or damage to property
in connection with the entry onto the Premises by Tenant, its agents, employees,
or contractors prior to the Premises Delivery Date, or the use and enjoyment of
the Premises by Tenant, its agents, officers, directors, contractors, employees,
vendors, guests and invitees (collectively, the "Tenant Parties"), or any
negligent act or omission by any of them, except and to the extent that any such
loss, cost, damage or expense arising out of death of or injury to persons, or
loss of or damage to property is caused by or results from the negligent or
unlawful acts or omissions or willful misconduct of Landlord, its employees,
agents or contractors. This indemnity and hold harmless agreement shall include
indemnity against all expenses and liabilities incurred in or in connection with
any such claim or proceeding brought thereon, and the defense thereof with
counsel selected by Tenant and reasonably acceptable to Landlord or counsel
selected by an insurance company which has accepted liability for any such
claim. This Section 12.1 shall survive the termination of this Lease.

         12.2     Landlord's Indemnity. Landlord shall indemnify, defend, and
hold harmless Tenant and each other Tenant Party from and against any and all
claims, demands, liabilities, fines, suits, actions, proceedings, orders,
decrees, judgments, losses, damages, costs and expenses, whether arising in
connection with death of or injury to persons, loss of or damage to property, or
otherwise (including, without limitation, reasonable attorneys' fees), occurring
in (i) the Common Areas or any portion of the Building or Project outside the
Premises, or (ii) any negligent act or omission or willful misconduct of
Landlord (or any of its agents, employees, or contractors), or (iii) any breach
of default in the performance of any of Landlord's obligations arising out of
this Lease, except and to the extent that any such loss, cost, damage or expense
is caused by or results from the negligent or unlawful acts or omissions or
willful misconduct of Tenant (or any of its agents, employees or contractors).
This indemnity and

                                      -16-
<PAGE>

hold harmless agreement shall include indemnity against all expenses and
liabilities incurred in or in connection with any such claim or proceeding
brought thereon, and the defense thereof with counsel selected by Landlord and
reasonably acceptable to Tenant or counsel selected by an insurance company
which has accepted liability for any such claim. This Section 12.2 shall survive
the termination of this Lease.

         12.3     Tenant's Insurance. At all times after the execution of this
Lease, Tenant will take out and keep in force, at its expense the following
insurance coverages with the limits as listed on Exhibit "E":

                  (a)      commercial general liability insurance, written on an
occurrence basis and including contractual liability coverage for any
liabilities assumed under this Lease for property damage and personal injury,
and coverage against all claims for injury to or death of persons or damage to
property on or about the Premises;

                  (b)      casualty insurance covering all of Tenant's
Personalty and improvements made by Tenant located in or at the Premises, in an
amount not less than ninety percent (90%) of their full replacement value from
time to time, including replacement cost endorsement, providing protection
against any peril included within the classification Fire and Extended Coverage,
sprinkler damage, vandalism, theft, burglary, malicious mischief, and the other
additional perils as covered in a "special form - causes of loss" (formerly "all
risks") standard insurance policy (but excluding flood, earthquake, rent loss or
lost profits and terrorism insurance). Any such policy proceeds shall be used
for the repair or replacement of the insured property damaged or destroyed
unless this Lease shall cease and terminate under the provisions of Article 13
in which case the proceeds of such insurance may be retained by Tenant in the
event this Lease is so terminated;

                  (c)      if and to the extent required by law, worker's
compensation employee liability or similar insurance in form and amounts
required by law; and

                  (d)      automobile liability insurance.

         12.4     Tenant's Contractor's Insurance. Tenant shall require any
contractor of Tenant performing work on the Premises to take out and keep in
force, at no expense to Landlord the following insurance coverages with the
limits as listed in Exhibit "E".

                  (a)      commercial general liability insurance, including
contractor's liability coverage, contractual liability coverage, completed
operations coverage, broad form property damage endorsement and contractor's
protective liability coverage, to afford protection to the limit of not less
than the limits as listed on Exhibit "E".

                  (b)      worker's compensation employer's liability or similar
insurance in form and amounts required by law.

                  (c)      automobile liability insurance.

         12.5     Landlord's Insurance.

                  (a)      Casualty Insurance. At all times during the Term,
Landlord will maintain in force casualty insurance insuring the Building,
including the Premises (except for any such part Tenant is required to insure
against pursuant to Section 12.3) for the full insurable value thereof from
time to time, including replacement cost endorsement, providing protection
against any peril included within the classification Fire and Extended Coverage,
sprinkler damage, vandalism, theft, burglary, malicious mischief, and the other
additional perils as covered in a "special form - causes of loss" (formerly "all
risks") standard insurance policy.

                  (b)      Liability Insurance. During the entire Term, Landlord
will maintain in force commercial general liability insurance written on an
occurrence basis, including, without limitation, contractual liability coverage
for any liabilities assumed under this Lease for property damage and personal
injury, and a broad form property damage endorsement with the limits as listed
on Exhibit "E".

                                      -17-
<PAGE>

                  (c)      Additional Insurance. During the Term, Landlord may
obtain additional insurance coverage or endorsements for all or portions of the
Project that are commercially reasonable, including without limitations,
earthquake, flood and terrorism insurance ("Additional Insurance").

         12.6      Policy Requirements. The company or companies writing any
insurance which Tenant, Tenant's contractor's or Landlord is required to take
out and maintain or cause to be taken out or maintained pursuant to Sections
12.3, 12.4, and 12.5, shall be with a company or companies licensed or admitted
to do business in the state in which the Premises are located. Notwithstanding
anything to the contrary contained herein, Tenant's obligation to carry
insurance may be satisfied by coverage under a so-called blanket umbrella or
excess policy or policies of insurance and Tenant may self-insure, subject to
the provisions contained herein; provided, however, that the coverage afforded
Landlord will not be reduced or diminished as a result thereof. Landlord shall
name Tenant and any lender of Tenant's secured by Tenant's interest in the
Premises (or any improvements contained therein) of which Landlord has received
notice as an additional insured on Landlord's commercial general liability
policy or policies required to be carried hereunder. Landlord and any lender of
Landlord secured by Landlord's interest in the Premises of which Tenant has
received notice shall be an additional insured on Tenant's commercial general
liability policy or policies required to be carried pursuant to this Lease. Each
such policy shall also contain a provision by which the insurer agrees that such
policy shall not be canceled except after thirty (30) days' written notice to
the additional insured. A certificate of each such policy, shall be deposited
with Landlord by Tenant promptly upon commencement of Tenant's obligation or
Tenant's contractors to procure the same. With respect to the Premises, any
liability insurance carried by Tenant shall be deemed primary to any liability
insurance carried by Landlord.

         12.7     Failure to Maintain Required Insurance. If Tenant shall fail
to perform any of its obligations under Sections 12.3 or 12.4, then in addition
to any other right or remedy of Landlord after fifteen (15) days notice from
Landlord, Landlord may perform the same and the cost thereof shall be deemed
Additional Rental and shall be payable within thirty (30) days Tenant's receipt
of Landlord's demand for the same accompanied by an invoice or other
documentation showing the amount of the subject premiums. If Landlord shall fail
to perform its obligation to cause the Premises to be covered by fire or
casualty insurance as required by Section 12.5(a), then in addition to any other
right or remedy of Tenant after thirty (30) days notice from Tenant, Tenant may
obtain such insurance on Landlord's behalf insuring the Premises (and any other
portion of the Project necessary to obtain such coverage). Landlord shall
reimburse the Tenant for the costs within thirty (30) days Landlord's receipt of
Tenant's demand for the same accompanied by an invoice or other documentation
showing the amount of the subject premiums.

         12.8     Waiver of Subrogation. Notwithstanding any other provision in
this Lease, in the event the Premises or its contents, or any other portion of
the Project, are damaged or destroyed by fire or other insured casualty,
Landlord, to the extent of the coverage of Landlord's policies of fire insurance
and endorsements as required above and as otherwise carried by Landlord, hereby
waives its rights, if any, against Tenant with respect to such damage or
destruction, even if said damage or destruction shall have been caused, in whole
or in part, by the negligence of Tenant, its agents, servants, employees or
contractors. Notwithstanding any other provision in this Lease, in the event the
Premises or its contents are damaged or destroyed by fire or other insured
casualty, Tenant to the extent of coverage of Tenant's policies of fire
insurance and endorsements as required above and as otherwise carried by
Landlord, hereby waives its right, if any, against Landlord with respect to such
damage or destruction, even if said fire or other casualty shall have been
caused, in whole or in part, by the negligence of Landlord, its agents,
servants, employees, or contractors. The insurance policies obtained by Landlord
and Tenant pursuant to Sections 12.3(b) and 12.5(a) respectively shall contain
endorsements waiving any right of subrogation which the insurer may otherwise
have against the non-insuring party. If at any time, Landlord's or Tenant's
insurance carrier refuses to write insurance which contains a consent to the
foregoing waiver of subrogation, Landlord or Tenant, as the case may be, shall
notify the other party in writing, and upon the giving of such notice, the
provisions of this paragraph shall be null and void as to any casualty which
occurs after the date of such notice.

                                   ARTICLE 13
                             DAMAGE AND DESTRUCTION
                             ----------------------

         13.1     Damage to the Premises. If during the Term there shall be
damage to the Premises, included in Landlord's Work, or the same are destroyed,
by fire, the elements, accident or other casualty (any such

                                      -18-
<PAGE>

causes are referred to herein as a "Casualty") Landlord shall, to the extent of
available insurance proceeds, promptly proceed to restore the Premises to the
same condition in which it was immediately prior to the occurrence of such
damage, except as otherwise provided in Section 13.2.

         13.2     Landlord's and Tenant's Option to Terminate Lease.

                  (a)      Notwithstanding the provisions of Section 13.1 if
the area occupied by other retail tenants is damaged to the extent of sixty
percent (60%) or more of the gross leasable area of the Project, Landlord or
Tenant may elect to terminate this Lease by giving to the other party notice of
such election within sixty (60) days after the occurrence of such event. If such
notice is given, the rights and obligations of the parties shall cease as of
the date of such notice and Tenant shall vacate and surrender the Premises to
Landlord. Upon such termination, Rental (other than any Additional Rental due
Landlord by reason of Tenant's failure to perform any of its obligations
hereunder) shall be adjusted as of the date of such termination.

                  (b)      In the event of any Casualty which is not or cannot
be repaired or restored by Landlord for any reason within one (1) year following
the occurrence of such Casualty, Tenant shall have the right to terminate this
Lease on thirty (30) days notice to Landlord upon the earlier to occur of: (a)
the date on which it becomes apparent that such repairs or restoration cannot be
completed within such one (1) year period; or (b) upon the expiration of such
one (1) year period, if such repairs or restoration have not been Substantially
Completed by such date, provided that such notice is given not later than thirty
(30) days after the expiration of said one (1) year period.

                  (c)      In the event that the Premises are substantially
damaged or destroyed by Casualty or eminent domain during the last twenty-four
(24) months of the Lease, Tenant or Landlord may terminate this Lease upon
written notice to the other within thirty (30) days of such Casualty.

         13.3     Abatement of Rental. During the repair and restoration of the
Premises or the Tenant Control Area by Landlord, Rental will be abated
proportionately with the degree to which Tenant's use of the Premises is
impaired. The abatement of Rental will commence on the date of such damage or
destruction and continue during the period of Landlord's repair or restoration,
but in no event longer than one (1) year after the Casualty. Tenant will
continue the operation of its business on the Premises during such period of
repair and restoration to the extent reasonably practicable as determined in
Tenant's reasonable judgment and so as not to interfere with repairs. Unless
this Lease is terminated by Landlord or Tenant, as the case may be, Tenant shall
refixture the Premises in a manner and to a condition equal to the existing
prior to such Casualty, and the proceeds of all fire or casualty insurance
carried by Tenant pursuant to this Lease shall be used for said purpose.

                                   ARTICLE 14
                                  CONDEMNATION
                                  ------------

         14.1     Total Taking. In the event that the entire Premises is taken
for any public or quasi-public use under any statute, or by right of eminent
domain, or by purchase in lieu of eminent domain (collectively, a "Total
Taking"), then this Lease may be terminated by Tenant by written notice to
Landlord effective the date that possession of the Premises is taken by the
condemning agency or authority.

         14.2     Partial Taking. In the event that a portion of the Premises is
taken as a result of the exercise of the power of eminent domain or under the
threat of the exercise of such power (a "Partial Taking"), and the portion not
so taken would not, in the reasonable discretion of Tenant, be adequate for the
continued operation of Tenant's business, Tenant shall have the right to
terminate this Lease by written notice to the other of its desire to do so,
provided that such notice is given not later than thirty (30) days after Tenant
has been notified of such taking. (For the purposes of Sections 14.1, 14.2 and
14.3, the term "Premises" includes that portion of the Common Area utilized for
access to Tenant's ATMs.) Should this Lease not be terminated in accordance with
the foregoing provisions in the event of a Partial Taking, Landlord shall, at
Landlord's cost and expense, to, as soon as reasonably possible, restore the
remaining portion of the Premises to an architectural unit of substantially
similar quality and character as existed prior to such taking, and, thereafter,
all Rental and payment obligations of Tenant shall be adjusted on an equitable
basis, taking into account the relative value of the portion of the building
floor area of the Premises taken as compared to the portion remaining.

                                      -19-
<PAGE>

         14.3     Abatement of Rental During Restoration. During the repair and
restoration of the Premises by Landlord, Rental will be abated proportionately
with the degree to which Tenant's use of the building floor area of the Premises
is impaired. The abatement of Rental will commence on the date of destruction
and continue during the period of such repair or restoration but in no event
longer than one (1) year after the taking. Tenant will continue the operation of
its business on the Premises during any period of repair and restoration to the
extent reasonably practicable from the standpoint of prudent business management
and so as to not interfere with the repairs by Landlord.

         14.4     Payment of Award. All compensation awarded or paid for or in
connection with a Total Taking or Partial Taking is hereby collectively referred
to as the "Award". Any Award for (a) Landlord's fee interest in the Premises and
the Project; and (b) "bonus value" of the Lease will belong to Landlord.
Notwithstanding the aforementioned, Tenant will retain and have a claim for the
following items: (i) compensation for the taking of Tenant's leasehold estate;
(ii) the Unamortized Cost of Tenant Improvements (to the extent Landlord has not
contributed to the cost thereof); (iii) that portion (if any) of the Award made
to Landlord for the taking that results in the enhancement of the Award to
Landlord as a result of Tenant's Personalty or fixtures that are removable by
Tenant under the terms of this Lease, but that are required to be taken or are
acquired by the condemnor; (iv) all compensation payable by the condemning
authority and attributable to Tenant's occupancy under this Lease, including
without limitation thereto, all compensation relating to Tenant's loss of
income, good will, moving and relocation expenses; and (v) any other claim or
right of recovery to which Tenant is entitled by Law with respect to the subject
Partial Taking or Total Taking.

                                   ARTICLE 15
                    ASSIGNMENT AND SUBLETTING; SUBORDINATION
                    ----------------------------------------

         15.1     Landlord's Consent Required.

                  (a)      Except to the extent expressly provided in Section
15.1(b), Tenant will not assign this Lease, in whole or in part, nor sublet all
or any part of the Premises, nor license concessions or lease departments
therein, without first obtaining the written consent of Landlord, which consent
shall not be unreasonably withheld, delayed or conditioned; provided, however
that in the event Landlord withholds its consent to such assignment or sublease,
Tenant shall have the option to terminate this Lease. Consent by Landlord to any
assignment or subletting shall not constitute a waiver of the requirement for
such consent to any subsequent assignment or subletting.

                  (b)      Notwithstanding anything to the contrary contained
elsewhere in this Lease, Tenant may, without Landlord's prior consent:

                           (i)      Assign this Lease, or sublet all or any part
of the Premises to its parent corporation or to any subsidiary or Affiliate of
Tenant, or to a joint venture in which Tenant is a joint venture partner
responsible for the conduct of the business in the Premises, provided any such
assignment or subletting is made in good faith and not for the sole purpose of
avoiding the restrictions on assignments or subletting set forth in this
Article. The term "parent" means any entity that controls Tenant; and the term
"Affiliate" means any entity which is directly or indirectly controlled by or
controlling any parent or subsidiary of Tenant. The terms "control" and
"controlled by" and "controlling" shall have the meanings given those terms
under the federal securities laws.

                           (ii)     Assign this Lease or sublet all or any part
of the Premises to any corporation into which or with which Tenant or its parent
may merge or to any corporation or other business entity or to any company which
may result from a reorganization or consolidation by or with Tenant, or to which
Tenant shall sell all or substantially all of its assets in the state in which
the Premises is located or all or substantially all of its corporate shares.

                           (iii)    Assign this Lease to another financial
institution.

         The assignments and sublettings described in this Subsection (b) are
sometimes hereinafter referred to as "Permitted Transfers".

                                      -20-
<PAGE>

                  (c)      It shall be a condition of any assignment, other
transfer, or subletting permitted under Section 15.1(b) that the assignee,
transferee, or tenant agree directly with Landlord, in a written instrument
reasonably satisfactory to Landlord, to be bound by all Tenant obligations
hereunder, including, without limitation, the obligation to pay Rental and other
amounts provided for under this Lease and the covenant against further
assignment or other transfer or subletting. In connection with an assignment
that is a Permitted Transfer, or an assignment to an assignee whose net worth is
in excess of Five Million Dollars ($5,000,000.00), Tenant shall be released from
its obligations hereunder, including, without limitation, the obligation to pay
Rental and other amounts provided for under this Lease. Upon any assignment to
any assignee in which Tenant is not released from liability under this Lease,
Tenant shall only be liable for the default of such assignee if the Landlord has
signed a written instrument agreeing that Tenant shall be released from all
liability under this Lease in the event that, following such assignment, the
Landlord agrees to amend or modify any term of this Lease, and provided Landlord
provides Tenant with concurrent notice with such assignee of any default by such
assignee. Landlord shall execute a commercially reasonable non-disturbance
agreement at the request of any person or entity subleasing the Premises from
Tenant pursuant to a Permitted Transfer or other sublease otherwise approved by
Landlord, provided that said sublease is on the same terms of this Lease (other
than those provisions herein which are not expressly applicable to any sublessee
of the Premises) wherein, among other things, Landlord shall agree to recognize
the applicable sublease and the rights of the subtenant thereunder in the event
of a default by Tenant hereunder so long as the applicable subtenant is not in
default beyond any applicable time to cure under the sublease. Landlord will not
have the right to repossess the Premises in the event of a proposed assignment
or subletting hereunder.

                  (d)      No transfer of any shares of, or any interest in,
Tenant shall be deemed an assignment hereunder.

         15.2     Subordination and Non-Disturbance Agreement. This Lease shall
be subject and subordinate to the lien of any and all mortgages or deed of trust
that may be recorded against Landlord's interest in the Premises after the
Effective Date of the Lease (collectively "Future Encumbrance(s)"), provided the
mortgagee or beneficiary of any such Future Encumbrance ("Encumbrancer")
executes and delivers to Tenant a Subordination, Non-Disturbance and Attornment
Agreement ("SNDA") that satisfies the requirements of this Section 15.2. Upon
the written request of Landlord, Tenant shall execute and deliver a SNDA in a
form reasonably acceptable to Landlord, Tenant, and Encumbrancer, and
subordinating Tenant's interest in the Premises to Future Encumbrances recorded
after the Effective Date of this Lease, subject to satisfaction of the following
requirements: the SNDA must provide that (a) so long as Tenant is not in default
beyond the period of notice and opportunity to cure provided in this Lease at
the date of any foreclosure or trustee sale, and (b) so long as Tenant attorns
to the Encumbrancer, then (i) this Lease shall not terminate by reason of such
foreclosure or trustee sale; (ii) Tenant's possession of the Premises shall not
be disturbed; (iii) the Encumbrancer, upon foreclosure or the occurrence of a
trustee sale, or its successors and assigns, including without limitation any
successful bidders at any such foreclosure or trustee sale ("Successors or
Assigns"), shall recognize Tenant and all of Tenant's rights under this Lease
and shall be obligated to fully and completely perform Landlord's duties and
obligations under this Lease arising from and after the date of such foreclosure
or trustee sale; (iv) the Encumbrancer or its Successors and Assigns upon
foreclosure or the occurrence of a trustee sale shall agree that the net
proceeds arising from casualty or condemnation loss to the Premises shall be
available to Tenant for restoration of the Improvements in accordance with
Article 14; and (v) the Encumbrancer shall not name Tenant in any foreclosure
proceeding, unless required by law.

         As part of the SNDA to be executed by Tenant, Tenant shall agree to
provide to the Encumbrancer (simultaneously with notice to Landlord) notice of
Landlord's defaults and the same periods to cure such defaults as those provided
Landlord in Section 16.3 and, provided that Landlord has provided Tenant with
the name and contact information for such Lender, that no notices to Landlord
shall be effective unless given to such Lender. Additionally, the SNDA may
contain such other provisions reasonably acceptable to Tenant as are typically
found in SNDAs with institutional lenders. Tenant shall not be required to
execute an SNDA that waives or alters its rights and entitlements or increase
its obligations under this Lease. A form SNDA acceptable to Tenant is attached
hereto as Exhibit "G".

         15.3     Security Instruments. Upon the earlier to occur of (i) thirty
(30) days following the Effective Date or (ii) the first date on which Tenant
is authorized to commence Tenant's Work hereunder, Landlord shall obtain and
deliver to Tenant a non-disturbance agreement ("Non-Disturbance Agreement") from
the

                                      -21-
<PAGE>

lienholder(s) (e.g. beneficiary, mortgagee, etc.) of all mortgage(s) or deed(s)
of trust or similar instrument(s) encumbering the Premises and/or Common Area,
which encumbrance existed on or prior to the recordation of the Memorandum,
providing the assurances set forth in Section 15.2. Tenant shall have no
obligation to commence construction on the Premises or payment of Rental or any
other sum due under this Lease until Tenant has received all Non-Disturbance
Agreements required by this Section 15.3 and any similar agreement(s) required
by Section 15.4. If Tenant does not receive a Non-Disturbance Agreement required
by this Section 15.3 within the specified time, and if all other contingencies
have been satisfied, Tenant may either: (a) extend the Commencement Date and the
time for Tenant's performance of any duty, obligation or liability hereunder
until such time as Landlord delivers to Tenant the required Non-Disturbance
Agreement(s), or (b) terminate this Lease without further liability.

         15.4     Master Lessor. In the event Landlord is or becomes the tenant
under the terms of any underlying Lease (the "Master Lease"), Landlord covenants
and agrees that within sixty (60) days after the Effective Date it shall obtain
from the lessor under such Master Lease (the "Master Lessor") an agreement in
form and content acceptable to Tenant and Landlord, which provides that so long
as Tenant is not in default hereunder, the Master Lessor shall not disturb
Tenant's use and possession of the Premises upon the default by Landlord herein
under the Master Lease or upon termination of the Master Lease for any other
reason, so lone as Tenant agrees to attorn to said Master Lessor. In the event
Landlord fails to provide Tenant with such an acceptable agreement within the
sixty (60) day time limit, Tenant may terminate this Lease as provided for in
Section 15.3.

         15.5     Leasehold Financing. This Section 15.5 will apply when Tenant
provides Landlord with notice of an assignment of this Lease to a lender
("Tenant's Lender") as security for an indebtedness with the identity of and
address for notices to Tenant's Lender and a request by Tenant's Lender for all
notices to Tenant pursuant to this Lease be also given to Tenant's Lender.
Thereafter, no notice to Tenant will be effective, unless the notice is also
given concurrently to Tenant's Lender. In addition to any other rights granted
to Tenant under this Lease, including without limitation this Article 15 and
Section 8.4, Tenant shall have the right to mortgage and otherwise encumber its
leasehold estate and its Improvements, and other property located on the
Premises (as well as all other rights and easements granted to Tenant under this
Lease), and such mortgage or encumbrance, and any sale, conveyance, or
assignment pursuant thereto (whether by foreclosure or conveyance in lieu
thereof) shall be deemed permitted assignments of this Lease.

         Provided Tenant is not in breach under this Lease beyond the applicable
cure period, Landlord will agree not to change or accept the surrender of this
Lease by Tenant, without the consent of Tenant's Lender.

         If Tenant fails to cure a default after due notice, Tenant's Lender
shall, within five (5) days after end of the applicable grace period, have the
right to give Landlord notice of the election of Tenant's Lender to undertake to
cure all defaults of Tenant. If Tenant's Lender makes an election to cure,
lender shall: (a) promptly begin performance of all the obligations of Tenant
that Tenant's Lender is reasonably able to perform; and (b) begin and diligently
pursue all steps necessary to obtain possession of the Premises by foreclosure
or otherwise. Landlord will suspend the exercise of the remedies of Landlord
during the time lender is performing the foregoing.

         In the event the interest of Tenant in this Lease is terminated by
Tenant's Lender or as a result of rejection of this Lease by a bankruptcy
trustee, Landlord shall, on the request of Tenant's Lender, recognize Tenant's
Lender as the tenant of the Premises and enter into a new Lease with Tenant's
Lender on the same provisions contained in this Lease. Upon foreclosure,
Tenant's Lender may, without consent of Landlord, assign this Lease to a third
party that assumes and agrees to perform all of the obligations of Tenant, in
which case Tenant's Lender shall be automatically released from further
responsibility under this Lease. The assignee may use the Premises for any
lawful purpose, subject to all other provisions of this Lease.

                                   ARTICLE 16
                                     DEFAULT
                                     -------

         16.1     "Event of Default" Defined. Any one or more of the following
events shall constitute an "Event of Default":

                  (a)      Tenant shall fail to pay Rental or other charges on
or before the same becomes due hereunder, and such failure continues for five
(5) business days after written notice from Landlord thereof;

                                      -22-
<PAGE>

                  (b)      Tenant shall fail to perform or observe any other
term or condition contained in this Lease for thirty (30) days after written
notice from Landlord thereof unless such default is of such a nature that it
cannot be cured within such thirty (30) day period, in which event no Event of
Default shall occur so long as Tenant shall commence the curing of the default
within such thirty (30) day period and shall thereafter promptly and diligently
prosecute the curing of the same to completion;

                  (c)      Tenant shall vacate or abandon the Premises within
the meaning of California Civil Code Section 1951.3; and

                  (d)      Except as otherwise provided by applicable law, if
the estate hereby created shall be taken on execution or by other process of
law, or if Tenant shall be judicially declared bankrupt or insolvent according
to law, or if any assignment shall be made of the property of Tenant for the
benefit of creditors, or if a receiver, guardian, conservator, trustee in
involuntary bankruptcy or other similar officer shall be appointed to take
charge of all or any substantial part of Tenant's property by a court of
competent jurisdiction, or if a petition shall be filed for the reorganization
of Tenant under any provisions of a law now or hereafter enacted, and such
proceeding is not dismissed within sixty (60) days after it is begun, or if
Tenant shall file a petition for such reorganization, or for arrangements under
any provisions of such laws providing a plan for a debtor to settle, satisfy or
extend the time for the payment of debts.

         16.2     Remedies. On the occurrence and during the continuance of any
Event of Default hereunder (after giving effect to any applicable cure periods),
Landlord may, at any time thereafter, with or without notice or demand and
without limiting Landlord in the exercise of any right or remedy which Landlord
may have:

                  (a)      Terminate Tenant's right to possession of the
Premises by any lawful means, in which case this Lease shall terminate and
Tenant shall immediately surrender possession of the Premises to Landlord. In
such event Landlord shall have the immediate right to re-enter the Premises and
remove all persons and property and such property may be removed and stored in a
public warehouse or elsewhere at the cost of, and for the account of Tenant, all
without service of notice or resort to legal process and without being deemed
guilty of trespass, or becoming liable for any loss or damage which may be
occasioned thereby; and Landlord shall be entitled to recover from Tenant all
damages incurred by Landlord by reason of Tenant's default, including (i) the
worth at the time of the award of all Monthly Base Rent, Additional Rent and
other charges which were earned or were payable at the time of the termination;
(ii) the worth at the time of the award of the amount by which the unpaid
Monthly Base Rent, Additional Rent and other charges which would have been
earned or were payable after termination until the time of the award exceeds the
amount of such rental loss that Tenant proves could have been reasonably
avoided; (iii) the worth at the time of the award of the amount by which the
unpaid Monthly Base Rent, Additional Rent and other charges which would have
been payable for the balance of the term after the time of award exceeds the
amount of such rental loss that Tenant proves could have been reasonably
avoided; (iv) any other amount necessary to compensate Landlord for all the
detriment proximately caused by Tenant's failure to perform its obligations
under this Lease or which in the ordinary course of things would be likely to
result therefrom whether provided by this Lease or allowed by applicable law,
including, but not limited to, any costs or expenses incurred by Landlord in
maintaining or preserving the Premises after such default, the cost of
recovering possession of the Premises, expenses of reletting, including
necessary renovation or alteration of the Premises, Landlord's reasonable
attorneys' fees, and any real estate commissions or other such fees paid or
payable; and (v) at Landlord's election, such other amounts in addition to or in
lieu of the foregoing as may be permitted by applicable California law from time
to time. As used in subparts (i) and (ii) above, "the worth at the time of the
award" is computed by allowing interest on unpaid amounts at the rate of fifteen
percent (15%) per annum, or such lesser amount as may then be the maximum lawful
rate. As used in subpart (iii) above, the "worth at the time of the award" is
computed by discounting such amount at the discount rate of the Federal Reserve
Bank of San Francisco at the time of the award, plus one percent (1%). If Tenant
shall have abandoned the Premises, Landlord shall have the option of (i)
retaking possession of the Premises and recovering from Tenant the amount
specified in this Section 16.2(a), or (ii) proceeding under Section 16.2(b);

                  (b)      Maintain Tenant's right to possession, in which case
this Lease shall continue in effect whether or not Tenant shall have abandoned
the Premises. In such event, Landlord shall be entitled to enforce all of
Landlord's rights and remedies under this Lease, including the right to recover
the rent as it becomes due hereunder. Tenant acknowledges that Landlord has the
remedy described in California Civil Code Section 1951.4 in

                                      -23-
<PAGE>

that Landlord may continue the Lease in effect after Tenant's breach and
abandonment and recover rent as it becomes due:

                  (c)      Pursue any other remedy now or hereafter available to
Landlord under the laws or judicial decisions of the state in which the Premises
is located.

                  (d)      Tenant hereby expressly waives any and all rights of
redemption granted by or under any present or future laws in the event of Tenant
being evicted or dispossessed for any cause, or in the event of Landlord
obtaining possession of the Premises, by reason of the violation by Tenant of
any of the covenants or conditions of this Lease, or otherwise.

                  (e)      Landlord's exercise of any right or remedy shall not
prevent it from exercising any other right or remedy.

         16.3     Landlord's Default; Remedies.

                  (a)      Landlord shall be in default under this Lease if
Landlord fails to: (a) pay any obligation of Landlord under this Lease or any
mortgage, trust deed, judgment, assessment, tax or other encumbrance affecting
the Premises and to which this Lease is subordinate, within ten (l0) days after
receipt of notice from Tenant, any governmental authority, or the holder of such
mortgage, trust deed judgment or encumbrance, stating the obligation Landlord
has failed to pay; or (b) begin performing any other obligation of Landlord,
within thirty (30) days after receipt of notice from Tenant stating the
obligation Landlord has failed to perform, and diligently pursue completion of
the required performance. In the event of a default by Landlord, Tenant may pay
or perform any obligation of Landlord, in addition to the right to exercise all
other legal and equitable remedies of Tenant. If Tenant elects to pay or perform
any Landlord obligation, Landlord shall, upon demand, reimburse Tenant the full
amount paid or costs or expenses incurred by Tenant. If Landlord fails to
promptly reimburse Tenant, Tenant may deduct each month up to twenty percent
(20%) of the Rental to offset any such amounts to be reimbursed to Tenant until
Tenant is fully reimbursed. Notwithstanding the above, however, in the event
Tenant is owed any such reimbursement from Landlord and there does not then
exist sufficient remaining Term to allow Tenant to fully recover such
reimbursement, in such event Tenant shall be entitled to offset such
reimbursement owed on a prorated basis over the then remaining Term to the
extent necessary to recover any such reimbursement owed. In no event shall the
twenty percent (20%) limitation on monthly offset rights apply to Landlord's
Cash Allowance, which must be paid pursuant to the terms of Section 8.7. It is
specifically understood that Tenant shall at no time be obligated to make any
payment or perform any obligation of Landlord and that, if Tenant does make
payments or perform obligations of Landlord, no continuing obligation to do so
at any future time or times shall be created on the part of Tenant.

                  (b)      Notwithstanding the foregoing, in the event Landlord
in good faith disputes Tenant's right to offset, deduct or abate any monies from
Rental or other sums owed by Tenant to Landlord (except for Tenant's right to
receive Landlord's Cash Allowance), Landlord shall have the right within the
fifteen (15) day period following Tenant's notice to Landlord of Landlord's
default, to institute a reference proceeding in accordance with the provisions
set forth below to resolve such dispute. Pending the resolution of such
dispute, Tenant shall not be entitled to offset any monies from Rental or other
sums owed by Tenant to Landlord if Landlord so exercises this right. If it is
determined pursuant to such reference proceeding that Tenant was entitled to
recover or offset of any money from Rental or other sums owed by Tenant to
Landlord, Tenant shall be entitled to the payment of all such money from
Landlord as follows. Within fifteen (15) days following such a determination,
Landlord shall pay to Tenant the amount owed to Tenant as determined by the
referee together with interest thereon at the Interest Rate from the date
Landlord so exercised its right to submit the matter to reference. In the event
Landlord fails to make such payment within such fifteen-day period in full or
in part, Tenant shall be entitled to offset or abate the amount so owed from
Rental and other sums next coming due to Landlord under this Lease.

                  (c)      Any dispute between Landlord and Tenant which is to
be resolved by a reference proceeding pursuant to the provisions of this Lease
shall be resolved by a proceeding in accordance with the provisions of
California Code of Civil Procedure Sections 638, et seq. (or any similar
successor statute) for a determination to be made which shall be binding upon
the parties as if tried before a court or jury. The parties agree specifically
as to the following:

                                      -24-
<PAGE>

                           (i)      Within five (5) business days after service
of a demand by a party hereto, the parties shall agree upon a single referee who
shall then try all issues, whether of fact or law, and then report a finding and
judgment thereon. If the parties are unable to agree upon a referee, either
party may seek to have one appointed, pursuant to California Code of Civil
Procedure Section 640 (or any similar successor statute), by the presiding judge
of the Solano County Superior Court.

                           (ii)     The compensation of the referee shall be
such charge as is customarily charged by the referee for like services. The cost
of such proceedings shall initially be borne equally by the parties. However,
the prevailing party in such proceedings shall be entitled, in addition to all
other costs, to recover its contribution for the cost of the referee as an item
of damages and/or recoverable costs.

                           (iii)    If a reporter is requested by either party,
then a reporter shall be present at all proceedings, and the fees of such
reporter shall be borne by the party requesting such reporter. Such fees shall
be an item of recoverable costs. Only a party shall be authorized to request a
reporter.

                           (iv)     The referee shall apply all California Rules
of Procedure and Evidence and shall apply the substantive law of California in
deciding the issues to be heard. Notice of any motions before the referee shall
be given, and all matters shall be set at the convenience of the referee.

                           (v)      The referee's decision under California Code
of Civil Procedure Section 644 shall stand as the judgment of the court, subject
to appellate review as provided by the laws of the State of California.

                           (vi)     The parties agree that they shall in good
faith endeavor to cause any such dispute to be decided within ninety (90) days.
The date of hearing for any proceeding shall be determined by agreement of the
parties and the referee, or if the parties cannot agree, then by the referee.

                           (vii)    The referee shall have the power to award
damages and other relief.

                                   ARTICLE 17
                        LANDLORD'S ACCESS TO THE PREMISES
                        ---------------------------------

         17.1     Landlord's Right of Access. Subject to Tenant's security
procedures, Landlord and its agents will have access to the Premises during
Tenant's normal business hours upon reasonable notice or with the consent of the
store manager for the following purposes: (i) to inspect the Premises to
ascertain if the Premises are in good repair (provided that, so long as no Event
of Default has occurred and is continuing, Landlord may conduct no more than two
such inspections in any calendar year); (ii) to make repairs to the Premises
that Landlord is required or permitted to make under the Lease or applicable
Laws; (iii) to perform work necessary to prevent waste or deterioration of the
Premises if Tenant fails to repair and maintain the Premises as required under
the Lease; or (iv) to show the Premises to potential lenders, buyers or tenants
of the Premises. Landlord will conduct its activities in the Premises in this
Section 17.1 in a manner that will cause the least possible inconvenience,
annoyance or disturbance to Tenant.

         17.2     Access During the Last Month of Term. If during the last month
of the Term, Tenant shall have removed all of Tenant's Personalty therefrom,
Landlord may immediately enter and alter, renovate and redecorate the Premises,
without elimination or abatement of Rental, or incurring liability to Tenant for
any compensation, and such acts shall have no effect upon otherwise applicable
terms of this Lease.

                                   ARTICLE 18
                                  MISCELLANEOUS
                                  -------------

         18.1     Waiver. Failure on the part of Landlord or Tenant to complain
of any action or non-action on the part of the other, no matter how long the
same may continue, shall never be a waiver by Landlord or Tenant of its rights
hereunder. Further, no waiver at any time of any of the provisions hereof by
Landlord or Tenant

                                      -25-
<PAGE>

shall be construed as a waiver of any of the other provisions hereof, and a
waiver at any time of any of the provisions hereof shall not be construed as a
waiver at any subsequent time of the same provisions. The consent or approval of
Landlord or Tenant to or of any action by the other requiring such consent or
approval shall not be construed to waive or render unnecessary Landlord's or
Tenant's consent or approval to or of any subsequent similar act by the other.

         18.2     Covenant of Quiet Enjoyment. Subject to the terms and
provisions of this Lease and so long as no Event of Default shall have occurred
and be continuing, Landlord warrants and covenants and agrees that Tenant, may
quietly have, hold, and enjoy the Premises during the Term.

         18.3     Brokerage. Except as otherwise disclosed in Section 1.1,
Tenant and Landlord warrant and represent to each other that they have not
dealt with any broker in connection with the consummation of this Lease, and, in
the event of any brokerage claims by parties, other than the brokers so
disclosed, against the indemnified party from any other party predicated upon
dealings with the indemnifying party, the indemnifying party agrees to defend
the same and indemnify the other against any such claim.

         18.4     Invalidity of Particular Provisions. If any term or provision
of this Lease, or the application thereof, to any person or circumstances shall,
to any extent, be invalid or unenforceable, the remainder of this Lease, or the
application of such term or provisions to persons or circumstances other than
those as to which it is held invalid or unenforceable, shall not be affected
thereby, and each term and provision of this Lease shall be valid and be
enforced to the fullest extent permitted by law.

         18.5     Provisions Binding, Etc. Except as herein otherwise expressly
provided, the terms hereof shall be binding upon and shall inure to the benefit
of the successors and assigns, respectively, of Landlord and Tenant and, if
Tenant shall be an individual, upon and to his heirs, executors, administrators,
legal representatives, successors and assigns. Each term and each provision of
this Lease to be performed by Tenant shall be construed to be both a covenant
and a condition. The reference contained to the successors and assigns of Tenant
is not intended to constitute a consent to assignment by Tenant, but has
reference only to those instances in which Landlord may later give consent to a
particular assignment as required by the provisions of this Lease. If Tenant is
several persons, natural or corporate, the liability of such persons for
compliance with the obligations of Tenant under this Lease shall be joint and
several.

         18.6     Recording. Tenant agrees not to record this Lease, but upon
the Effective Date, the parties shall execute a Memorandum of Lease in the form
attached hereto as Exhibit "H". In no event shall such document set forth the
Rental or Additional Rental payable by Tenant under this Lease; and any such
document shall expressly state that it is executed pursuant to the provisions
contained in this Lease, and is not intended to vary the terms and conditions of
this Lease.

         18.7     Notices. Any notice, demand, request, approval, consent or
other instrument which may be or is required to be given under this Lease shall
be in writing and shall be deemed to have been given three (3) days after having
been mailed by United States registered or certified mail, return receipt
requested, postage prepaid, or when received or refused, if sent by overnight
courier or delivery service or by personal delivery to the address of a party
received or refused by an individual over eighteen years of age, addressed to
Landlord or Tenant at the respective addresses set forth in Section 1.1 or such
other address or addresses as either party may designate by notice to the other
in accordance with this Section 18.7, provide any change in address shall
include a street address for personal delivery. Notices to Tenant shall be sent
to the attention of [Vice President and General Counsel with a copy to the
attention of Lease Administrator].

         18.8     Effective Date. The submission of this document for
examination and negotiation does not constitute an offer to lease, or a
reservation of, or option for, the Premises, and this document shall become
binding only upon the execution and delivery hereof by both Landlord and Tenant
as of the effective date noted above their signatures (the "Effective Date").
All negotiations, consideration, representations and understandings between
Landlord and Tenant are incorporated herein and may be modified or altered only
by written agreement signed by both Landlord and Tenant, and no act or omission
of any employee or agent of Landlord or course of prior dealings between the
parties, shall alter, change or modify any of the provisions hereof. This Lease
may be executed in more than one counterpart, and each such counterpart shall be
deemed to be an original document.

                                      -26-
<PAGE>

         18.9     Interpretation.

                  (a)      All captions, table of contents and index of defined
terms appearing in this Lease are inserted only as a matter of convenience and
in no way amplify, define, construe or describe the scope or intent of this
Lease. Except where otherwise expressly provided, each reference in this Lease
to a Section, Article or Exhibit shall mean the referenced Section, Article or
Exhibit of this Lease.

                  (b)      The neuter, feminine or masculine pronoun when used
herein shall each include each of the other genders and the use of the singular
shall include the plural. All terms defined in this Lease in the single form
shall have comparable meanings when used in the plural form and vice versa.

                  (c)      The parties hereto agree that all the provisions of
this Lease are to be construed as covenants and agreements as though the words
importing such covenants and agreements were used in each separate provision
hereof.

                  (d)      Although the printed sections of this Lease may have
been drawn by Tenant, this Lease shall not be construed for or against Landlord
or Tenant, but this Lease shall be interpreted in accordance with the general
tenor of the language in an effort to reach the intended result.

                  (e)      The parties hereto agree that all references in this
Lease to statutes shall be deemed to refer to such statutes or regulations as
they may be amended from time to time and to any successor statute or regulation
hereto.

         18.10    Self-Help. Landlord shall have the right, but shall not be
required, to pay such sums or do any act which requires the expenditure of
moneys which may be necessary or appropriate by reason of the failure or neglect
of Tenant to perform any of the provisions of this Lease following notice and
the expiration of applicable notice and/or grace periods, and in the event of
the exercise of such right by Landlord, Tenant agrees to pay to Landlord
forthwith upon demand all such reasonable sums, with interest thereon from the
date Landlord pays such sums at the Interest Rate; and if Tenant shall default
in such payment, Landlord shall have the same rights and remedies as Landlord
has hereunder for the failure of Tenant to pay Rental.

         18.11    No Joint Venture. Any intention to create a joint venture or
partnership relation between the parties is hereby expressly disclaimed.

         18.12    Unavoidable Delay. In the event that either party hereto shall
be delayed or hindered in or prevented from the performance of any act required
hereunder by reason of strikes, lockouts, inability to procure labor or
materials, failure of power, restrictive governmental laws or regulations,
riots, insurrection, war, fire or other casualty or other reason of a similar
nature beyond the reasonable control of the party delayed in performing work or
doing the act required under the terms of this Lease, then performance of such
act shall be excused for the period of the delay and the period from the
performance of any such act shall be extended for a period equivalent to the
period of such delay (any such delay is herein referred to as an "Unavoidable
Delay"). During the period of performance of Tenant's Work in Section 3.1 above,
the provisions of this Section 18.12 shall not operate to excuse Tenant from
completing construction of the Premises within the Time Estimated for Completion
of Tenant's Work unless Tenant gives written notice of the delaying event to
Landlord within five (5) business days of the occurrence of such delaying event.
Such written notice shall specify the nature of the delaying event and the
number of days of delay claimed to be resulting therefrom. The Time Estimated
for Completion of Tenant's Work shall be extended for a period equivalent to the
period of actual delay. After the Commencement Date, the provisions of this
Section 18.12 shall not operate to extend the Term. Tenant shall not be excused
from its obligations under the Lease because of the condition of the market for
rental space or because of any other market conditions affecting only price.
This Section 18.12 shall not be applicable to Tenant's obligations to pay Rental
or any other sums, money, costs, charges or expenses required to be paid by
Tenant hereunder; i.e., delays or failures to perform on the part of Tenant
resulting from its lack of funds shall not be deemed to be an Unavoidable Delay.
If the time limit for any event to be performed by one party hereunder is
extended as a result of an Unavoidable Delay (a "Delayed Event"), then the time
limit imposed on the other party with respect to providing notice of such
Delayed Event or of such other party's election of options with respect thereto,
shall be extended for a time period equivalent to such Unavoidable Delay.

                                      -27-
<PAGE>

         18.13    Applicable Law; Choice of Law and Forum. The laws of the state
in which the Premises are located shall govern the validity, performance and
enforcement of this Lease. If either party institutes legal suit or action for
enforcement of any obligation contained herein, it is agreed that the venue of
such suit or action shall be the county in which the Premises are located, or
the United States District Court having jurisdiction over such county. Landlord
and Tenant hereby waive trial by jury in any action, proceeding or counterclaim
brought by either party against the other or any matter whatsoever arising out
of or in any way connected with this Lease, the relationship of Landlord and
Tenant created hereby, Tenant's use or occupancy of the Premises, and/or any
claim for injury or damage. In the event Landlord commences any action or
proceeding for nonpayment of Rental, Tenant shall not interpose any counterclaim
of any nature or description, other than a compulsory counterclaim, in any
action or proceeding. The foregoing shall not be constructed as a waiver of
Tenant's right to assert such claim in a separate action or proceeding
instituted by Tenant.

         18.14    Landlord Representations and Warranties. The following
representations and warranties are made for the benefit of Tenant:

                  (a)      If Landlord is a corporation, Landlord represents and
warrants that Landlord is duly organized, validly existing, in good standing in
the state of its incorporation, and has all requisite power and authority to own
and lease property and conduct business in the state where the Premises are
located, and each individual executing this Lease on behalf of Landlord is duly
authorized to execute and deliver this Lease on behalf of Landlord;

                  (b)      If Landlord is a partnership, each individual
executing this Lease represents and warrants that he or she is duly authorized
to execute and deliver this Lease on behalf of the partnership, and that the
persons who have executed this Lease on behalf of the partnership are all of
the partners whose signatures are necessary to bind the partnership;

                  (c)      If Landlord is an individual or individuals, each
individual executing this Lease represents and warrants that he or she is duly
authorized to execute and deliver this Lease;

                  (d)      If more than one person is Landlord, they represent
and warrant that the obligations of such persons as Landlord are joint and
several;

                  (e)      Landlord represents and warrants that this Lease is
binding on Landlord in accordance with its terms;

                  (f)      Landlord represents and warrants that Landlord is the
fee owner of the Premises;

                  (g)      Landlord represents and warrants to the best of its
knowledge, except as otherwise disclosed to Tenant in writing, that there are no
provisions, including any limiting or conflicting exclusive rights, restrictions
or prohibitions, contained in the leases of other tenants in the Project, or
elsewhere that would adversely affect or prohibit the construction of Tenant
Improvements, the conduct of Tenant's Permitted Use, or Tenant's exercise of its
Exclusive Use pursuant to Section 4.2 on the Premises, or prohibit Tenant's
right to use the Outdoor Cafe Seating Area, depicted on Exhibit "A", pursuant to
Section 1.1; and

                  (h)      Landlord represents and warrants that Landlord has no
actual knowledge except as otherwise disclosed to Tenant in writing of (i)
enacted, pending or proposed condemnation proceedings or other governmental
action, (ii) pending or threatened litigation, (iii) current or proposed plans
to alter access to the Premises, or (iv) the presence on the Premises or the
Project of (A) anything dangerous to humans, which would adversely affect the
construction of Tenant Improvements or the conduct of Tenant's Permitted Use on
the Premises or (B) any Hazardous Materials.

         18.15    Tenant Representations and Warranties. The following
representations and warranties are made for the benefit of Landlord:

                  (a)      Tenant represents and warrants that Tenant is duly
organized, validly existing, in good standing in the state of its incorporation,
and has all requisite power and authority to own and lease property

                                      -28-
<PAGE>

and conduct business in the state where the Premises are located, and that each
individual executing this Lease on behalf of Tenant is duly authorized to
execute and deliver this Lease on behalf of Tenant; and

                  (b)      Tenant represents and warrants that this Lease is
binding on Tenant in accordance with its terms.

         18.16    Estoppel Certificates. Each party within twenty (20) days
after receipt of written notice from the other party will execute and deliver to
the other party a commercially reasonable estoppel certificate stating that this
Lease is unmodified and in full force and effect, or in full force and effect as
modified, and stating the modifications and that there are no defaults under the
Lease, or stating the default and the nature thereof if defaults are claimed.
The estoppel certificate also will state the amount of Rental and the dates to
which the Rental has been paid in advance. Failure to deliver the estoppel
certificate within twenty (20) days will be conclusive upon the party failing to
deliver the estoppel certificate for the benefit of the party requesting the
estoppel certificate and any successor to the party requesting the estoppel
certificate, that this Lease is in full force and effect and has not been
modified except as may be represented by the party requesting the estoppel
certificate. Execution of the estoppel certificate will not constitute a waiver
of claims by either party with respect to any default under this Lease if the
party executing the estoppel certificate is not aware of the default.

         18.17    Antennae Roof Rights. Tenant shall have the right to install
and maintain on the roof of the building of the Premises not more than [two (2)]
antennae and/or satellite dishes (which dishes shall be between [one foot and
ten feet in diameter and up to fifteen square feet at the base]) as necessary
for Tenant's communications and data transmission network, and equipment to meet
Tenant's excess HVAC needs, if any; provided, however, Tenant shall use
commercially reasonable efforts to cause such antennae and/or satellite dishes
not to be visible from the street. Tenant shall also have the right to install
and remove, at its sole cost and expense, the cabling and conduit reasonably
necessary to connect the rooftop satellite dishes and equipment to Tenant's
equipment on and within the Premises in locations subject to Landlords'
approval. The installation and any costs relating thereto, and the maintenance,
repair, insurance obligations and liability, with respect to such equipment and
dishes, shall be borne completely by Tenant and Tenant shall be responsible to
repair any and all damages resulting or arising from Tenant's installation,
maintenance or use of such equipment and shall be responsible not to invalidate
any roof warranty of Landlord as a result of such work. Tenant shall indemnify,
defend and hold Landlord harmless from and against any and all claims, costs
(including attorney fees and costs) damages and expenses resulting or arising in
any manner whatsoever as a result of its use of said roof other than those
arising as a result of the negligence or misconduct of Landlord or its agents or
employees.

         18.18    Riders. Exhibits "A", "A-1", "B", "C", "D", "E", "F", "G",
"H", and "I" are attached hereto are hereby made a part hereof.

         18.19    Transfer of Landlord's Interest. If Landlord's interest in the
Premises is sold or conveyed, other than pursuant to a mortgage or transfer for
security purposes only, Landlord will be relieved of all obligations and
liabilities accruing on the part of Landlord after the date the sale is
consummated. Landlord will not be relieved of any obligation under this Lease if
such sale or transfer occurs prior to the completion of construction of the
Premises and the satisfaction of all conditions hereto which are the obligation
of Landlord to satisfy in connection with the construction of the Premises,
including without limitation, payment of Landlord's Cash Allowance.

         18.20    IN WITNESS WHEREOF, the parties have caused this Lease to be
effective as of October __, 2004.

                                      -29-
<PAGE>

                                          LANDLORD: JLC CONTRACTING, INC., a
                                          California corporation

                                          By: /s/ [ILLEGIBLE]
                                              ----------------------------------
                                          Print Name: [ILLEGIBLE]
                                                     ---------------------------
                                          Title: CEO
                                                --------------------------------

                                          TENANT:  THE YOLO COMMUNITY BANK, a
                                          California corporation

                                          By:
                                              ----------------------------------
                                          Print Name:
                                                     ---------------------------
                                          Title:
                                                --------------------------------

                                      -30-
<PAGE>

                                   EXHIBIT "A"
                                    FAIRFIELD
                                PLAN OF PREMISES

                               [GRAPHIC OMITTED]
<PAGE>

                                  EXHIBIT "A-1"

                            PROJECT LEGAL DESCRIPTION
                            -------------------------

                                      A-1
<PAGE>

                                   EXHIBIT "B"

                         DESCRIPTION OF LANDLORD'S WORK
                         ------------------------------

I.    Landlord's Work Described: Landlord's Work means all improvements shown on
those plans entitled "[ILLEGIBLE TEXT]" dated 1/1, 2004, prepared by Kyoob
Design, together with all of the items listed below in subsections (A) and (B),
and included in the Landlord's Proposal attached hereto as Schedule B-1 as the
scope of work dated July 23, 2004. Landlord will complete all of the Landlord's
Work by the date specified as the Scheduled Delivery Date in Section 1.1 of the
Lease and in accordance with Tenant's plans for the Premises at Landlord's sole
cost and expense, using all new, first-class quality equipment and materials
prior to delivering possession of the Premises to Tenant. Landlord warrants that
any item of Landlord's Work identified as "Existing" is present in the Premises
as of the date hereof and will be upgraded, refurbished or replaced so that it
is in good repair and working condition for at least five (5) years after the
Commencement Date:

                  A.       Common Area Work: All driveway approaches, surfacing
paving, curbs, curb-cuts, bumpers, street signs, gutters, concrete work,
sidewalks, landscaping, and internal access roads and paved parking area(s) as
shown on the Site Plan. Parking for the Project shall include and be sufficient
to satisfy the required number of parking stalls required by the applicable
zoning or parking code for the City/County where the Premises is located.

                  B.       Other Governmental Required Work. All other
improvements located on or off of the Project as may be required, imposed or
accepted by any governmental entity, including but not limited to the
City/County, as applicable, where the Premises is located as a condition of or
in connection with the opening Tenant's store on the Premises.

II.   Landlord's Representation, Warranties and Covenants. Landlord hereby
represents, warrants and covenants to Tenant as an inducement to Tenant to enter
into the Lease as follows:

                  A.       When completed, Landlord's Work shall be free from
liens or materialmen, contractors, subcontractors, laborers, and all other
mechanics' liens. Prior to or on the Commencement Date, Landlord shall provide
Tenant with copies of lien releases from all materialmen, contractors,
subcontractors, laborers, and other applicable entities or individuals that
Landlord hired to perform Landlord's Work or any portion thereof;

                  B.       Landlord's Work shall be constructed, installed, and
completed in accordance with all applicable Laws (including building codes and
the ADA), and permits;

                  C.       Landlord shall cooperate and coordinate with Tenant's
architect with respect to the improvements being made by Landlord on the
Premises;

                  D.       Landlord shall construct or cause to be constructed
all improvements covered by this Exhibit in a good and workmanlike manner;

                  E.       Landlord shall obtain all permits for Landlord's Work
and shall have all necessary building code inspections completed prior to
delivering possession of the Premises to Tenant;

                  F.       After reasonable notice, Tenant's construction
manager or its designated representative may enter upon the Premises during
construction of Landlord's Work to inspect the progress and to determine if
Landlord's Work is being completed in accordance herewith and Tenant's standards
and plans and whether the work is progressing on schedule. Landlord and Tenant
shall cooperate to ensure that the completed work is acceptable to Tenant;

III.  No Substantial Work Deviations. No substantial deviations or changes shall
be made or permitted in connection with the Landlord's Work without the prior
written consent and approval of Tenant.

                                      B-1
<PAGE>

IV.   No Waiver. If Tenant takes possession of the Premises prior to the date
on which Landlord's Work has been Substantially Completed, no such entry into
possession shall be deemed to be a waiver by Tenant of any of Landlord's
obligations to complete Landlord's Work as specified herein.

V.    Evidence of Construction Funds. Prior to commencing construction of
Landlord's Work, Landlord shall deliver evidence reasonably satisfactory to
Tenant that Landlord has or shall have the ability to pay or advance the total
costs of Landlord's Work specified in this Exhibit to the Lease. Landlord's
failure to so provide such evidence shall entitle Tenant to terminate this
Lease upon fifteen (15) days notice, provided that if such evidence is
produced during said 15-day period the Lease shall not be deemed terminated.

VI.   Parties Obligations Upon Delivery of Possession. Upon delivery of
possession of the Premises to Tenant, Tenant shall inspect the Premises to
determine whether Landlord's Work has been completed. If Landlord's Work has
been completed in accordance with the terms of the Lease and Tenant's plans and
specifications, then Tenant's construction manager shall indicate on the notice
attached as Exhibit "D" that Tenant has accepted Landlord's Work. If Landlord's
Work has not been completed according to the terms of the Lease and Tenant's
plans and specifications, then Tenant shall indicate which items were not
completed and shall indicate whether (a) Tenant elects to accept possession of
the Premises without requiring completion of Landlord's Work by Landlord (in
which case Tenant may complete such items as if they were originally intended to
be completed by Tenant at Landlord's expense); or (b) Tenant refuses to accept
possession of the Premises until Landlord's Work is Substantially Completed
correctly.

VII.  Builders' Risk Insurance. Until Landlord's Work is completed, Landlord
shall carry and maintain, or cause its general contractor to carry and maintain,
Builder's All Risk insurance in amount reasonably estimated to cover the total
costs of Landlord's Work. Such insurance shall comply in all respects with and
be subject to the general policy requirements set forth in the Lease.]

                                      B-2
<PAGE>

                                  SCHEDULE B-1
                                  ------------

                                  SCOPE OF WORK
                                  -------------

                              JLC Contracting, Inc.
                                    Proposal
                         711 Jefferson Street, Fairfield

                                  July 23, 2004

Description              3663 square foot commercial retail/office space "warm
                         shell".  Inclusive; complete exterior finish, finished
                         common space lobby/stairwell.

Shell Preparation        o   Insulate, drywall, and fire tape all exterior walls
                         o   Sprinkler system prepped for ceiling drops
                         o   10-ton HVAC roof mount unit with plenum drops for
                             extension
                         o   Rough plumbing underground for restroom, janitor's
                             closet, and staff sink
                         o   Water meter and copper stub out
                         o   Electrical switchgear and 200-amp panel, 3-phase
                         o   Telco feed to building
                         o   Perimeter glazing at rear to accommodate `bank' use
                         o   Rear exit door
                         o   ATM area in lobby

Specific Amenities       o   Six (6) designated on-site parking spaces
                         o   Five (5) permitted off-site parking spaces
                         o   Formal request to the City of Fairfield for 20
                             minute parking zone in front of building

Terms                    o   Five (5) year lease with Five (5) year Tenant
                             option
                         o   3% increase every two years, 2.5%/yr if option is
                             exercised
                         o   3157 square feet @ $1.75 per foot
                         o   506 square feet common area @ $.85 per foot
                         o   $33,000 T_ allowance
                         o   60 day build-out time allowance
                         o   Tenant responsible for all utilities;  gas,
                             electricity, water, sewer, garbage, etc. and 1/2
                             utilities for common space
                         o   Lease to commence 1/1/05
                         o   Building to be complete and ready for occupancy on
                             1/1/05
<PAGE>

                                   EXHIBIT "C"

                          DESCRIPTION OF TENANT'S WORK
                          ----------------------------

    (To Be Attached or Referenced after Final Plans are Approved by Landlord)

                                      C-1
<PAGE>

                                   EXHIBIT "D"
                    FORM OF DECLARATION OF COMMENCEMENT DATE
                    ----------------------------------------

                       DECLARATION OF COMMENCEMENT DATE

                  This Declaration of Commencement Date ("Declaration") is
attached to and made a part of that certain Lease Agreement, dated 9/20, 2004
(the "Lease") by and between JLC Contracting, Inc., a California corporation
("Landlord"), and Yolo Community Bank, a California corporation ("Tenant"). The
terms used in this Declaration that are defined in the Lease shall have the same
meanings as provided in the Lease.

                  This Declaration is being provided pursuant to the terms and
provisions of the Lease. The parties to the Lease desire to confirm that the
following terms which are defined in the Lease shall have the meanings set forth
below for all purposes in the Lease:

                  The Rental Commencement Date is March 1, 2005.

                  The Lease Expiration Date is March 31, 2010.

                  This Declaration shall be binding on the parties hereto, their
successor and assigns and all subtenants of Tenant and any other party claiming
under or through Tenant. The Lease is in full force and effect as of the date
hereof in accordance with its terms, and Tenant is in possession of the
Premises.

WITNESS:                                 LANDLORD:  JLC CONTRACTING, INC., a
                                         California corporation

----------------------------------       By:   JLC Contracting, Inc.
/s/ John                                 Name: /s/ John L. [Illegible]
                                               ---------------------------------
                                         Title:       CEO
                                               ---------------------------------

WITNESS:                                 TENANT:  THE YOLO COMMUNITY BANK, a
                                         California corporation

                                         By:  [Illegible]
----------------------------------       Name: /s/ JOHN A. DIMICHELE
                                               ---------------------------------
                                         Title:     President/CEO
                                               ---------------------------------

                                      D-1
<PAGE>

                                   EXHIBIT "E"
                               INSURANCE COVERAGE
                               ------------------

         (a-1)   Commercial General Liability - Tenant
                 -------------------------------------

                 Bodily                              Injured                 and
                 Property Damage        $1,000,000   per occurrence
                                                     combined

                                        $1,000,000   general aggregate

                 Fire Legal Liability   $1,000,000   any one fire

         (a-2)   Commercial General Liability - Landlord
                 ---------------------------------------

                 Bodily                              Injured                 and
                 Property Damage        $1,000,000   per occurrence
                                                     combined

                                        $1,000,000   general aggregate

                 Fire Legal Liability   $1,000,000   any one fire

         (b)     Automobile Liability
                 --------------------

                 Bodily                              Injured                 and
                 Property Damage        $1,000,000   per accident

                 Hired                            and                  Non-Owned
                 Automobiles            $1,000,000

         (c)     Workers Compensation
                 --------------------

                 Workers Compensation:  STATUTORY

                                      E-1
<PAGE>

                                   EXHIBIT "F"

                               SIGNAGE RENDERINGS
                               ------------------

                                (To be attached)

                                      F-1
<PAGE>

                                   EXHIBIT "G"

         FORM OF SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT
                                                               ---------

                  This Subordination, Non-Disturbance and Attornment Agreement
("Agreement") is dated this __________ day of __________, 200__ between
______________________, a __________________________ ("Lender") and The Yolo
Community Bank, a California corporation ("Tenant").

                                    RECITALS

                  A.       Tenant has entered into a certain lease (the "Lease")
dated ______, 200_ with ____________________ ("Landlord") of a portion of a
certain building commonly known as _______________________, ______________,
__________. The leased premises described in the Lease are hereinafter referred
to as the "Premises".

                  B.       A Memorandum/Notice of Lease dated __________, 200_
by and between Tenant and Landlord regarding the Lease is to be recorded with
the __________ County Registry.

                  C.       Lender has made a loan to Landlord, which loan is
secured by a mortgage and security agreement dated _______ 200__ (the
"Mortgage") to be recorded and an assignment of leases and rents dated ________
200__ (the "Assignment") to be recorded with said Registry both with respect to
the Premises (with the Mortgage, Assignment and the other documents executed by
Landlord in connection with such loan being hereinafter referred to as the "Loan
Documents").

                  For mutual consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties hereto agree as follows:

                  1.       Tenant agrees that the lien of the Lease is and shall
be subject and subordinate to the lien of the Mortgage and to the lien of the
Assignment and to all renewals, amendments, modifications, consolidations,
replacements and extensions thereof, now or hereafter executed, to the full
extent of all amounts secured thereby, said subordination to have the same force
and effect as if the Mortgage, the Assignment, and such renewals, modifications,
consolidations, replacements and extensions thereof had been executed,
acknowledged, delivered and recorded prior to the Lease, and amendments or
modifications or any notice thereof. Provided, however, that the foregoing
subordination provision shall not be deemed or construed as limiting Tenant's
rights under the Lease and or Landlord's obligations thereunder, including
without limitation, the use of insurance proceeds and condemnation awards, and
notwithstanding any inconsistent provisions of the Mortgage with respect
thereto, such proceeds and awards shall be applied as set forth in the Lease.

                  2.       Lender agrees that Tenant shall not be named or
joined as a party defendant in any action, suit or proceeding which may be
instituted by Lender to foreclose or seek other remedies under the Mortgage or
the Assignment by reason of a default or event of default under the Mortgage or
the Assignment, unless applicable law requires Tenant to be made a party thereto
as a condition to Lender's proceeding against Landlord or prosecuting such
rights and remedies. Lender further agrees that, so long as Tenant is not in
default beyond any applicable grace period of any term, covenant or condition of
the Lease, in the event of any entry by Lender pursuant to the Mortgage, a
foreclosure of the Mortgage, or the exercise by Lender of any of its rights
under the Mortgage, Assignment, or any of the Loan Documents (a) Tenant's
possession of the Premises and Tenants rights and privileges under the Lease, or
any extensions or renewals thereof, shall not be diminished or interfered with
by Lender in the exercise of any of its rights under the Loan Documents or by
any party who acquires the Premises from Lender as a result of the exercise by
Lender of any such rights, and (b) Tenant's occupancy of the Premises shall not
be disturbed by Lender in the exercise of any of its rights under the Loan
Documents during the term of the Lease or any extensions or renewals thereof or
by any party who acquires the Premises from Lender as a result of the exercise
by Lender of any such rights.

                  3.       Tenant agrees that, in the event of a foreclosure of
the Mortgage by Lender, the acceptance of a deed in lieu of foreclosure by
Lender, or Lender's exercise of any of its rights under the Mortgage or

                                      G-1
<PAGE>
Assignment, Tenant will attorn to and recognize Lender as its landlord under the
Lease for the remainder of the term of the Lease (including all extension
periods which have been or are hereafter exercised) upon the same terms and
conditions as are set forth in the Lease, and Tenant hereby agrees to perform
all of the obligations of Tenant pursuant to the Lease.

Lease:

                  4.       Tenant agrees that, in the event Lender succeeds to
the interest of Landlord under the Lease:

                           (a)      Lender shall not be liable in damages for
any act or omission of any prior landlord (including Landlord), unless Lender
received notice of such act or omission and was given the same opportunity to
cure as is provided to Landlord under the terms of the Lease, and provided
nothing herein shall derogate from the obligation of Lender to perform all of
the obligations of Landlord pursuant to the Lease once Lender succeeds to the
interest of Landlord under the Lease;

                           (b)      Lender shall not be liable for the return of
any security deposit unless such security deposit is actually received by
Lender;

                           (c)      Lender shall not be bound by any rent or
additional rent which Tenant might have prepaid for more than one (1) month in
advance under the Lease (unless so required under the Lease);

                           (d)      Lender shall not be bound by any amendments
or modifications of the Lease (which has the effect of reducing rent, decreasing
the term or canceling the Lease prior to its expiration except as a result of
either the exercise of a right to terminate as set forth in the Lease or as
provided by law, or as a result of a default of landlord) made without the
consent of Lender, which consent shall not be unreasonably withheld, delayed or
conditioned; and

                           (e)      Lender shall not be subject to any offsets
or defenses which Tenant might have against any prior landlord (including
Landlord) except in cases where Tenant has given Lender written notice of the
event or circumstances giving rise to such damages, offsets or defenses and the
same period of time to cure as is provided to Landlord under the Lease.

                  5.       Lender hereby approves of, and consents to, the
Lease. Notwithstanding anything to the contrary contained in the Mortgage or the
Assignment, Tenant shall be entitled to use and occupy the Premises and exercise
all its rights under the Lease, and the Lease and Landlord's and Tenant's
performance thereunder shall not constitute a default under the Mortgage or
Assignment. Tenant agrees to give Lender a copy of any notice of default under
the Lease served upon Landlord at the same time as such notice is given to
Landlord.

                  6.       The terms and provisions of this agreement, shall be
automatic and self operative without execution of any further instruments on the
part of any other parties hereto. Without limiting the foregoing, Lender and
Tenant agree, within thirty (30) days after request therefor by the other party,
to execute an instrument in confirmation of the foregoing provisions, in form
and substance reasonably satisfactory to Lender and Tenant, pursuant to which
the parties shall acknowledge the continued effectiveness of the Lease in the
event of such foreclosure or other exercise of rights.

                  7.       Any notice to be delivered hereunder shall be in
writing and shall be sent registered or certified mail, return receipt
requested, postage prepaid, or overnight delivery by Federal Express, Purolator
Courier, United Parcel Service. U.S. Postal Service, Express Mail, or similar
overnight courier which delivers only upon signed receipt or the addressee, or
its agent. The time of the giving of any notice shall be the time or receipt
thereof by the addressee or any agent or the addressee, except that in the event
that the addressee shall refuse to receive any notice, or there shall be no
person available (during normal business hours) to receive such notice, the time
of giving notice shall be deemed to be the time of such refusal or attempted
delivery as the case may be. All notices addressed to Lender or Tenant, as the
case may be, shall be delivered to the respective addresses set forth opposite
their names below, or such other addresses as they may hereafter specify by
written notice delivered in accordance herewith:

                                       G-2
<PAGE>

            If to Tenant:    The Yolo Community Bank

                             ------------------------------

                             ------------------------------

                             ------------------------------

            With a copy to:
                             ------------------------------

                             ------------------------------

                             ------------------------------

            If to Lender:    JLC Contracting, Inc.

                             ------------------------------

                             ------------------------------

                             ------------------------------

                  8.       The term "Lender" as used herein includes any direct
or more remote successor or assign of the named Lender herein, including without
limitation, any purchaser at a foreclosure sale, and any successor or assign
thereof, and the term "Tenant" as used herein includes any direct or more remote
successor and assign of the named Tenant herein.

                  9.       This Agreement may be executed in several
counterparts, and all so executed shall constitute one agreement, binding on all
parties hereto, notwithstanding that all parties are not signatories to the
original or the same counterpart.

                  Executed under seal as of the day and year first above
written.

                                          TENANT:  THE YOLO COMMUNITY BANK

                                          By:
                                              ----------------------------------
                                          Name:
                                                      --------------------------
                                          Title:
                                                 -------------------------------

                                          LENDER:  [                           ]
                                                    ---------------------------

                                          By:
                                              ----------------------------------
                                          Name:
                                                      --------------------------
                                          Title:
                                                 -------------------------------

                                      G-3
<PAGE>

STATE OF ______________  )

                         )                                                ss:
COUNTY OF _____________  )             _______________________, 200__

                  Then personally appeared the above-named
______________________________________, _____________________, as aforesaid, and
acknowledged the foregoing instrument to be the free act and deed of said
corporation.

                                          -------------------------------------
                                          Notary                       Public
                                          My Commission Expires:

STATE OF ______________  )

                         )                                                ss:
COUNTY OF _____________  )             _______________________, 200___

                  Then personally appeared the above-named
____________________________________, of THE YOLO COMMUNITY BANK, and
acknowledged the foregoing instrument to be the free act and deed of said
limited liability company.

                                          -------------------------------------
                                          Notary                       Public
                                          My Commission Expires:

                                      G-4
<PAGE>

                                   EXHIBIT "H"

                               MEMORANDUM OF LEASE
                               -------------------

RECORDATION REQUESTED BY:

AFTER RECORDATION RETURN TO:
Robert M. McCormick
Downey Brand LLP
555 Capitol Mall, 10th Floor
Sacramento, CA  95814

RETURN BY:  MAIL (X) PICK UP ( )

                                                                  Store # ___

                               MEMORANDUM OF LEASE
                               -------------------

                  This Memorandum of Lease ("Memorandum") is made as of this
_______ day of ______,200_, between JLC CONTRACTING, INC., a California
corporation, having an office for business at [__________________] ("Landlord"),
and THE YOLO COMMUNITY BANK, a California corporation, having an office for
business at [__________________] ("Tenant").

                  In consideration of One Dollar ($1.00) and other valuable
consideration paid by Tenant to Landlord and the mutual covenants contained in
that certain Lease between the parties hereto dated on or about ______, [as
amended on _____________], (the "Lease"), Landlord has leased and does hereby
lease to Tenant, and Tenant has hired and does hereby hire from Landlord, upon
the terms and conditions set forth in the Lease, the real property described on
Exhibit A to this Lease. The "Project" of which the leased real property is a
part is described on Exhibit B to this Memorandum. Exhibits A and B are
incorporated herein by reference.

                  The term of this Lease is _______ years commencing on the
Commencement Date as defined in the Lease. The Lease provides for options to
renew for __________ terms [Add if applicable: and contains an option to
purchase, a right of first refusal to purchase and a right of first refusal to
lease the Premises] during the term of the Lease and any extension or renewal
thereof.

                  The Lease contains the following covenants and agreements:

                  [Add any non-exclusive easements and common area use rights]

                  [Add exclusive use or non-compete clause contained in Lease]

                  The above-referenced covenants and restrictions are intended
as a benefit to the Premises and a burden on the remainder of the Project, and
are intended to run with the Land as long as the Lease remains in effect.

                  The purpose of this Memorandum is to give record notice of
the Lease and of the terms thereof and the rights created thereby. It is not
intended to amend or modify any of the rights and obligations set forth in the
Lease. To the extent that any provisions of this Memorandum and the Lease
conflict, the provisions of the Lease control.

                                      H-1
<PAGE>

                  This Memorandum may be executed in one or more counterparts,
each of which shall be deemed an original, but all of which together constitute
one and the same instrument.

TENANT:                                  LANDLORD:

THE YOLO COMMUNITY BANK,                 JLC CONTRACTING, INC.,

a California corporation                 a California corporation

By: /s/ John A. DiMichele
    -------------------------------      By: /s/ JLC Contracting, Inc.
Name: John A. DiMichele                      ---------------------------------
      -----------------------------      Name:   John L. [Illegible]
Its:  President/CEO                           --------------------------------
     ------------------------------      Its:  CEO
                                              --------------------------------
                                                  [ILLEGIBLE]

                                      H-2
<PAGE>

STATE OF CALIFORNIA         )
                            )      ss:
COUNTY OF ______________    )

                  On __________________, 200_ before me, _______________, Notary
Public, personally appeared __________________________, personally known to me
(or proved to me on the basis of satisfactory evidence) to be the person(s)
whose name(s) is/are subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in his/her/their authorized capacity(ies),
and that by his/her/their signature(s) on the instrument the person(s), or the
entity upon behalf of which the person(s) acted, executed the instrument.

Witness my hand and official seal.

-----------------------------------
Notary Public

STATE OF CALIFORNIA         )
                            )      ss:
COUNTY OF ______________    )

                  On __________________, 200_ before me, _______________, Notary
Public, personally appeared __________________________, personally known to me
(or proved to me on the basis of satisfactory evidence) to be the person(s)
whose name(s) is/are subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in his/her/their authorized capacity(ies),
and that by his/her/their signature(s) on the instrument the person(s), or the
entity upon behalf of which the person(s) acted, executed the instrument.

Witness my hand and official seal.

-----------------------------------
Notary Public

                                      H-3
<PAGE>

                                    Exhibit A
                                Legal Description
                                -----------------

                                      H-4
<PAGE>

                                   EXHIBIT "I"

                            INTERIM PARKING AGREEMENT
                            -------------------------

                         (See attached letter agreement)

                                      I-1
<PAGE>

                                    Exhibits
                                    --------

            Exhibit "A"    Plan of Premises

            Exhibit "A-1"  Project Legal Description

            Exhibit "B"    Description of Landlord's Work

            Exhibit "C"    Description of Tenant's Work

            Exhibit "D"    Form of Declaration of Commencement Date

            Exhibit "E"    Insurance Coverage

            Exhibit "F"    Signage Renderings

            Exhibit "G"    Form of Subordination, Non-Disturbance and Attornment
                           Agreement

            Exhibit "H"    Form of Memorandum of Lease

            Exhibit "I"    Interim Parking Agreement================================================================================

                              NORTH VALLEY BANCORP
                                  401(k) PLAN

                         (Effective September 1, 2004)

================================================================================
<PAGE>

                              NORTH VALLEY BANCORP
                                  401(k) PLAN

                               TABLE OF CONTENTS
                               -----------------
                                                                            Page
                                                                            ----
ARTICLE 1. GENERAL..........................................................  2
   1.01. Name. .............................................................  2
   1.02. Purpose............................................................  3
   1.03. Effective Date. ...................................................  3
   1.04. Use Of A Trust Equivalent. ........................................  3
ARTICLE 2. GENERAL DEFINITIONS..............................................  4
   2.01. Account. ..........................................................  4
   2.02. Accrued Benefit. ..................................................  5
   2.03. Affiliated Employer. ..............................................  5
   2.04. Beneficiary........................................................  5
   2.05. Break In Service. .................................................  5
   2.06. Catch-Up Contributions.............................................  6
   2.07. Code. .............................................................  6
   2.08. Compensation. .....................................................  6
   2.09. Direct Rollover. ..................................................  7
   2.10. Distributee........................................................  7
   2.11. Early Retirement Date..............................................  7
   2.12. Elective Contributions.............................................  8
   2.13. Eligible Employee..................................................  8
   2.14. Eligible Retirement Plan. .........................................  8
   2.15. Eligible Rollover Distribution.....................................  8
   2.16. Employee. .........................................................  9
   2.17. Employer. .........................................................  9
   2.18. Employment Commencement Date. ..................................... 10
   2.19. ERISA.............................................................. 10
   2.20. Highly Compensated Employee........................................ 10
   2.21. Hour Of Service. .................................................. 10
   2.22. Matching Contributions............................................. 11
   2.23. Nonelective Contributions.......................................... 11
   2.24. Nonhighly Compensated Employee..................................... 11
   2.25. Normal Retirement Age.............................................. 11
   2.26. Participant. ...................................................... 11
   2.27. Participating Affiliated Employer. ................................ 12
   2.28. Plan. ............................................................. 12
   2.29. Plan Administrator................................................. 12
   2.30. Plan Year.......................................................... 12

                                      -i-
<PAGE>

   2.31. Qualified Elective Contributions................................... 12
   2.32. Qualified Joint And Survivor Annuity. ............................. 12
   2.33. Qualified Matching Contributions. ................................. 13
   2.34. Qualified Nonelective Contributions. .............................. 13
   2.35  Qualified Pre-Retirement Survivor Annuity........................... 13
   2.36. Reemployment Commencement Date. ................................... 13
   2.37. Rollover Contributions............................................. 13
   2.38. Severance From Employment.......................................... 14
   2.39. Suspense Account. ................................................. 14
   2.40. Top-Paid Group..................................................... 14
   2.41. Trust. ............................................................ 15
   2.42. Trustee............................................................ 15
   2.43. Trust Fund. ....................................................... 15
   2.44. Valuation Date. ................................................... 15
   2.45. Vested. ........................................................... 15
   2.46. Vesting Computation Period. ....................................... 15
ARTICLE 3. ELIGIBILITY AND PARTICIPATION.................................... 16
   3.01. Eligibility And Entry Date. ....................................... 16
   3.02. Excluded Employees. ............................................... 16
   3.03. Participation...................................................... 17
   3.04. Inactive Status. .................................................. 17
   3.05. Suspension Of Current Participation................................ 17
   3.06. Reemployed Former Participants And Excluded Employees.............. 18
   3.07. Leaves Of Absence. ................................................ 19
   3.08. Service With An Affiliated Employer. .............................. 19
   3.09. Leased Employees................................................... 19
   3.10. Military Service................................................... 21
ARTICLE 4. CONTRIBUTIONS.................................................... 21
   4.01. Employer Contributions-Elective Contributions....................... 21
   4.02. Employer Contributions-Nonelective Contributions.................... 23
   4.03. Employer Contributions-Matching Contributions....................... 23
   4.04. Employer Determination. ........................................... 24
   4.05. Profits Not Required............................................... 24
   4.06. Form Of Contribution............................................... 25
   4.07. Time Of Contributions.............................................. 25
   4.08. Rollover Contributions............................................. 25
ARTICLE 5. ALLOCATIONS OF CONTRIBUTIONS AND VALUATION....................... 26
   5.01. Valuation Of The Trust or Custodial Account........................ 26
   5.02. Order Of Adjustment................................................ 26
   5.03. Allocation Of Investment Results................................... 27
   5.04. Allocation Of Employer Nonelective Contributions................... 27
   5.05. Allocation Of Employer Elective Contributions And
         Matching Contributions............................................. 27

                                      -ii-
<PAGE>

   5.06. Application Of Forfeitures......................................... 28
   5.07. Permitted Reallocations............................................ 28
ARTICLE 6. LIMITATION ON CONTRIBUTIONS AND BENEFITS......................... 28
   6.01. Special Definitions. .............................................. 28
   6.02. Limitation On Allocations. ........................................ 32
   6.03. Suspense Account. ................................................. 34
   6.04. Leased Employees................................................... 34
   6.05. Nondiscrimination Limitations...................................... 35
   6.06. Maximum Amount Of Elective Deferrals............................... 41
   6.07. Nondiscrimination Test For Matching Contributions.................. 43
ARTICLE 7. VESTING AND FORFEITURES ......................................... 47
   7.01. Full Vesting. ..................................................... 47
   7.02. Partial Vesting-Matching and Nonelective Accounts. ................. 48
   7.03. Years Of Service................................................... 48
   7.04. Forfeitures........................................................ 49
   7.05. Effect of Certain Distributions.................................... 50
   7.06. Amendments to Vesting Schedule..................................... 51
   7.07. No Divestment for Cause............................................ 52
   7.08. Lost Beneficiary................................................... 52
ARTICLE 8. PARTICIPANT LOANS................................................ 53
   8.01. Participant Loans.................................................. 53
ARTICLE 9. TOP HEAVY PLAN RULES ............................................ 56
   9.01. Special Definitions. .............................................. 56
   9.02. Determination Of Top Heavy Status. ................................ 58
   9.03. Benefits Taken Into Account. ...................................... 58
   9.04. Minimum Benefits................................................... 59
   9.05. Safe Harbor Plan Exception......................................... 60
ARTICLE 10. PAYMENT OF BENEFITS............................................. 60
  10.01. Action Upon Termination of Employment. ............................ 60
  10.02. Measure of Benefits. .............................................. 61
  10.03. Nonliability....................................................... 61
  10.04. Source of Benefits. ............................................... 61
  10.05. Mechanics of Payment............................................... 61
  10.06. Method of Payment of Benefits...................................... 61
  10.07. Commencement of Payment of Benefits................................ 66
  10.08. Hardship Distributions. ........................................... 79
  10.09. Age 59-1/2 Withdrawals. ........................................... 80
  10.10. Early Retirement. ................................................. 81
  10.11. Normal Retirement.................................................. 81
  10.12. Late Retirement. .................................................. 81
  10.13. Amount of Death Benefits. ......................................... 81
  10.14. Manner of Payment of Death Benefits. .............................. 82
  10.15. Designation of Beneficiary. ....................................... 85

                                     -iii-
<PAGE>

  10.16. Absence of Valid Designation of Beneficiaries...................... 85
  10.17. Distributions to Incapacitated Participants........................ 86
  10.18. Repayment of Overpayment of Benefits............................... 86
  10.19. Alternate Payees. ................................................. 86
  10.20. Eligible Rollover Distributions Direct Rollovers................... 87
  10.21. Distribution Upon Severance of Employment.......................... 87
ARTICLE 11. BENEFIT CLAIMS AND APPEALS...................................... 87
  11.01. Claims............................................................. 87
ARTICLE 12. PLAN ADMINISTRATION ............................................ 91
  12.01. Appointment of the Plan Administrator.............................. 91
  12.02. Employment Records................................................. 91
  12.03. Reports and Disclosure............................................. 91
  12.04. Retention of Records............................................... 92
  12.05. Appointment of Committee Officers. ................................ 92
  12.06. Committee Action. ................................................. 94
  12.07. Rights and Duties.................................................. 94
  12.08. Investments. ...................................................... 96
  12.09. Independent Qualified Accountant. ................................. 96
  12.10. Standard of Care................................................... 96
  12.11. Allocation and Delegation of Responsibility........................ 97
  12.12. Bonding. .......................................................... 97
ARTICLE 13. AMENDMENT AND TERMINATION....................................... 98
  13.01. Amendment. ........................................................ 98
  13.02. No Amendment To Reduce Protected Benefits.......................... 98
  13.03. Plan Termination. ................................................. 99
  13.04. Reversions......................................................... 99
  13.05. Segregation Of Trust Assets. ......................................101
  13.06. Transfer to New Plan. .............................................101
  13.07. Bankruptcy.........................................................101
  13.08. Employer Merger....................................................101
  13.09. Suspension of Contributions. ......................................102
  13.10. Plan Merger........................................................102
ARTICLE 14. PARTICIPANT-DIRECTED INDIVIDUAL ACCOUNTS........................102
  14.01. Directed Individual Accounts Permitted.............................102
  14.02. Separate Account Established.......................................102
  14.03. Fiduciary Duty. ...................................................103
ARTICLE 15. MISCELLANEOUS...................................................103
  15.01. Limitation of Rights; Employment Relationship......................103
  15.02. Release from Liability. ...........................................103
  15.03. Disputes...........................................................104
  15.04. Alienation.........................................................104
  15.05. Indemnity. ........................................................105
  15.06. Construction. .....................................................105

                                      -iv-
<PAGE>

  15.07. Applicable Law; Severability. .....................................105
  15.08. Agent for Service of Legal Process. ...............................106
ARTICLE 16. SAFE HARBOR PROVISIONS .........................................106
  16.01. Rules of Employer Election and Application. .......................106
  16.02. Definitions........................................................106
  16.03. ADP Test Safe Harbor...............................................107
  16.04. ACP Test Safe Harbor Contributions.................................108
  16.05. Safe Harbor Notice. ...............................................108

                                      -v-
<PAGE>

                              NORTH VALLEY BANCORP
                                  401(k) PLAN
                                  -----------

This Amendment and Restatement of the Deferred Salary Profit Sharing Thrift Plan
for Employees of North Valley Bancorp and its Affiliates and the renaming such
plan as the North Valley Bancorp 401(k) Plan (Plan) is adopted by North Valley
Bancorp (Employer), effective September 1, 2004, except as otherwise indicated.

                                    RECITALS
                                    --------

A.       Effective as of January 1, 1984, Employer adopted the Plan.

B.       The Plan was restated in its entirety effective January 1, 1994 and was
         subsequently restated in its entirety on February 20, 1997.

C.       Effective July 1, 2002 the Plan was amended and restated to include
         certain changes required by the Uniform Services Employment and
         Reemployment Rights Act (USERRA), the Uruguay Round Agreement Act of
         1994 (GATT), the Small Business Job Protection Act of 1996 (SBJPA '96),
         the Taxpayer Relief Act of 1997 (TRA '97) and the Community Renewal Tax
         Relief Act of 2000.

D.       Effective October 12, 2000, North Valley Bancorp acquired Six Rivers
         National Bank. All employees who participated in the Six Rivers
         National Bank Profit Sharing 401(k) Plan (Six Rivers Plan) on the day
         before the acquisition were eligible to participate in this Plan on the
         first day of the payroll period following the acquisition date.

E.       Effective July 1, 2002, the Plan was amended as follows:

         1.       To allow Participants to defer up to fifty percent (50%) of
                  their compensation;

         2.       To exclude severance pay and taxable fringe benefits from the
                  definition of compensation for only salary deferral
                  contributions; and

         3.       To provide that salary deferrals can be reinstated on the
                  first day of each month.

                                      -1-
<PAGE>

F.       Effective January 1, 2002, the Plan was amended to reflect certain
         changes required by the Economic Growth and Tax Relief Reconciliation
         Act of 2001 (EGTRRA).

G.       Effective January 1, 2003, the Plan was amended by the former prototype
         plan sponsor, Diversified Investment Advisors, to adopt the provisions
         described in Question and Answer No. 3 of Final Treasury Regulations
         section 1.401(a)(9)-1 published on April 17, 2002 regarding the plan
         document provisions necessary to comply with Internal Revenue Code
         section 401(a)(9).

H.       In August, 2004, the Employer further wishes to amend the Plan to:

         1.       Provide for the participation of the employees of Yolo
                  Community Bank effective September 1, 2004 as a result of the
                  merger of Yolo Community Bank into new Yolo Community Bank, a
                  wholly-owned subsidiary of North Valley Bancorp effective
                  August 31, 2004.

         2.       Provide for the crediting of prior service with Yolo Community
                  Bank for purposes of eligibility, accrual of benefits and
                  vesting under the Plan; and

         3.       Provide the Employer the opportunity to make safe harbor
                  contributions to the Plan for each Plan Year that the Employer
                  so elects and provides the required "safe harbor" notice under
                  the Code; and

I.       The Employer desires to amend and restate the Plan to clarify and
         conform certain provisions with its original intent that was not
         accurately captured in the August 2004, amendment and restatement.

                              OPERATIVE PROVISIONS
                              --------------------

NOW, THEREFORE, the Employer hereby amends, restates and continues the Plan upon
the following terms and conditions

                               ARTICLE 1. GENERAL

1.01.    Name.
         ----

         The name of this Plan shall be North Valley Bancorp 401(k) Plan.

                                      -2-
<PAGE>

1.02.    Purpose.
         -------

         The Employer wishes to establish a plan whereby a portion of its
         revenues will be shared with those of its Employees who shall be
         eligible to participate in accordance with the terms and conditions
         hereinafter set forth and thereby to:

         A.       Promote in the Employees an interest in the successful
                  operation of the Employer's business and in the increased
                  efficiency of their work; and

         B.       Provide the Employees with an opportunity to accumulate funds
                  for their retirement, for the payment of disability benefits
                  or for the payment of death benefits for their dependents and
                  Beneficiaries. This Plan and the Trust are created and
                  maintained for the Employer's eligible Employees and their
                  Beneficiaries, and are intended for their exclusive benefit as
                  a plan and a trust which qualify under Internal Revenue Code
                  (Code) sections401(a) and 501(a) and the provisions of the
                  Employee Retirement Income Security Act of 1974 (ERISA), as
                  each may be amended from time to time.

1.03.    Effective Date.
         --------------

         The general Effective Date of this restatement is September 1, 2004.
         The changes to the required minimum distributions are effective
         January1, 2003.

1.04.    Use Of A Trust Equivalent.
         -------------------------

         All contributions under this Plan shall be held under group annuity
         contract that complies with all of the requirements of Internal Revenue
         Code section 401(f) so that the Plan does not need to have an
         associated trust agreement. All references to the term "Trust" shall be
         to the group annuity contract as required by the context.

                                      -3-
<PAGE>

                         ARTICLE 2. GENERAL DEFINITIONS

For purposes of this Plan, the following definitions shall apply:

2.01.    Account.
         -------

         "Account" means either the Participant's Elective Account, Matching
         Account, Nonelective Account, Rollover Account, Catch-Up Account, or
         any other account established by the Plan Administrator on behalf of a
         Participant. All such accounts shall be referred to as the "Accounts"
         of the Participant.

         A.       Elective Account.
                  ----------------

                  "Elective Account" means the account maintained by the Plan
                  Administrator for each Participant representing Elective
                  Contributions by the Employer, adjusted for withdrawals,
                  income, expenses, and realized and unrealized gains and losses
                  attributable thereto.

         B.       Matching Account.
                  ----------------

                  "Matching Account" means the account maintained by the Plan
                  Administrator for each Participant representing Matching
                  Contributions, adjusted for withdrawals, income, expenses, and
                  realized and unrealized gains and losses attributable thereto.

         C.       Nonelective Account.
                  -------------------

                  "Nonelective Account" means the account maintained by the Plan
                  Administrator for each Participant representing Nonelective
                  Contributions by the Employer and forfeitures added thereto
                  adjusted for withdrawals, income, expenses, and realized and
                  unrealized gains and losses attributable thereto.

         D.       Rollover Account.
                  ----------------

                  "Rollover Account" means the account maintained by the Plan
                  Administrator for each Participant representing Rollover
                  Contributions adjusted for withdrawals, income, expenses and
                  realized and unrealized gains and losses attributable thereto.

                                      -4-
<PAGE>

         E.       Catch-Up Account.
                  ----------------

                  "Catch-Up Account" means the account maintained by the Plan
                  Administrator for each Participant representing Elective
                  Contributions that are classified as Catch-Up Contributions,
                  adjusted for withdrawals, income, expenses, and realized and
                  unrealized gains and losses attributable thereto.

2.02     Accrued Benefit.
         ---------------

         The "Accrued Benefit" is the amount credited to the Participant's
         Accounts.

2.03.    Affiliated Employer.
         -------------------

         "Affiliated Employer" means any corporation which is a member of a
         controlled group of corporations (as defined in Code section414(b))
         which includes the Employer; any trade or business (whether or not
         incorporated) which is under common control (as defined in Code
         section414(c)) with the Employer; any organization (whether or not
         incorporated) which is a member of an affiliated service group (as
         defined in Code section414(m)) which includes the Employer; and any
         other entity required to be aggregated with the Employer pursuant to
         the regulations under Code section414(o).

2.04.    Beneficiary.
         -----------

         "Beneficiary" means the person(s) entitled under the provisions of this
         Plan to receive benefits after the death of a Participant.

2.05.    Break In Service.
         ----------------

         "Break In Service" means a twelve (12) consecutive month period
         beginning on an Employee's Severance From Employment date or any
         anniversary thereof in which the Employee is not credited with an Hour
         of Service. The following special rules apply in determining whether an
         Employee who is on leave has incurred a Break In Service:

         A.       If an individual is absent from work because of maternity or
                  paternity leave beyond the first anniversary of his Severance
                  From Employment date, the twelve (12) consecutive month period

                                      -5-
<PAGE>

                  beginning on the individual's Severance From Employment date
                  shall not constitute a Break In Service. For purposes of this
                  paragraph, maternity or paternity leave means a leave of
                  absence by:

                  1.       Reason of the pregnancy of the individual;

                  2.       Reason of the birth of a child of the individual;

                  3.       Reason of the placement of a child with the
                           individual in connection with the adoption of such
                           child by the individual; or

                  4.       For purposes of caring for a child for the period
                           beginning immediately following such birth or
                           placement.

         B.       If an individual is absent from work because of FMLA leave and
                  returns to employment with the Employer following such FMLA
                  leave, he shall not incur a Break In Service during any twelve
                  (12) consecutive month period beginning on his Severance From
                  Employment date or anniversaries thereof in which he is absent
                  because of such FMLA leave. For purposes of this paragraph,
                  FMLA leave means an approved leave of absence pursuant to the
                  Family and Medical Leave Act of 1993

2.06.    Catch-Up Contributions.
         ----------------------

         "Catch-Up Contributions" means Elective Contributions made to the Plan
         in accordance with Code section 414(v).

2.07.    Code.
         ----

         "Code" means the Internal Revenue Code of 1986, as it may be amended
         from time to time.

2.08.    Compensation.
         ------------

         A.       "Compensation" means wages as defined in Code section3401(a)
                  including amounts deferred pursuant to Code sections 125 (to a
                  cafeteria plan), 402(e)(3) (to a Code section 401(k) plan),
                  402(h) (to a simplified employee pension plan), 403(b) (to a
                  tax-sheltered annuity arrangement) and 132(f) (to a qualified
                  transportation fringe benefit plan). Compensation shall not
                  include severance pay or taxable fringe benefits that are

                                      -6-
<PAGE>

                  included in the Participant's W-2 statement. However, for
                  purposes of Nonelective Contributions only, severance pay and
                  taxable fringe benefits shall be included.

         B.       The annual Compensation of each Participant taken into account
                  in determining allocations for any Plan Year beginning after
                  December31, 2001, shall not exceed two hundred thousand
                  dollars ($200,000), as adjusted for cost-of-living increases
                  in accordance with Code section 401(a)(17)(B). Annual
                  Compensation means Compensation during the Plan Year or such
                  other consecutive twelve (12) month period over which
                  Compensation is otherwise determined under the plan (the
                  determination period). The cost-of-living adjustment in effect
                  for a calendar year applies to annual Compensation for the
                  determination period that begins with or within such calendar
                  year. Compensation shall include all Compensation paid during
                  the Plan Year, not just Compensation earned while a
                  Participant.

2.09.    Direct Rollover.
         ---------------

         For purposes of the Eligible Rollover Distributions article, a "Direct
         Rollover" is a payment by the Plan to the Eligible Retirement Plan
         specified by the Distributee.

2.10.    Distributee.
         -----------

         For purposes of the Eligible Rollover Distributions article, a
         "Distributee" includes an Employee or former Employee. In addition, the
         Employee's or former Employee's surviving spouse and the Employee's or
         former Employee's spouse or former spouse who is the alternate payee
         under a qualified domestic relations order, as defined in Code section
         414(p), are Distributees with regard to the interest of the spouse or
         former spouse.

2.11     Early Retirement Date.
         ---------------------

         "Early Retirement Date" means the date the Participant attains the
         Early Retirement Age of age fifty-five (55) and the completion of four
         (4) Years of Service.

                                      -7-
<PAGE>

2.12.    Elective Contributions.
         ----------------------

         "Elective Contributions" means those contributions made to the Plan by
         the Employer that were subject to the cash or deferred election under
         the Employer Contributions-Elective Contributions article, below.

2.13.    Eligible Employee.
         -----------------

         "Eligible Employee" means any Employee that has attained age twenty-one
         (21) and that is not excluded from participating in the Plan under the
         Excluded Employee paragraph of the Plan.

2.14.    Eligible Retirement Plan.
         ------------------------

         An Eligible Retirement Plan, for purposes of an Eligible Rollover
         Distribution, is an individual retirement account described in Code
         section 408(a), an individual retirement annuity described in Code
         section 408(b), an annuity plan described in Code section 403(a), an
         annuity contract or custodial account described in Code section 403(b)
         and an eligible plan under Code section 457(b) which is maintained by a
         state, political subdivision of a state, or any agency or
         instrumentality of a state or political subdivision of a state and
         which agrees to separately account for amounts transferred into such
         plan from this Plan, or a qualified trust described in Code section
         401(a), that accepts the Distributee's Eligible Rollover Distribution.
         The definition of Eligible Retirement Plan shall also apply in the case
         of a distribution to a surviving spouse, or to a spouse or former
         spouse who is the alternate payee under a qualified domestic relation
         order, as defined in Code section 414(p).

2.15.    Eligible Rollover Distribution.
         ------------------------------

         "Eligible Rollover Distribution" means any distribution of all or any
         portion of the balance to the credit of the Distributee; provided,
         however, that an Eligible Rollover Distribution does not include:

         A.       Any distribution that is one of a series of substantially
                  equal periodic payments (not less frequently than annually)
                  made for the life (or life expectancy) of the Distributee or
                  the joint lives (or joint life expectancies) of the
                  Distributee and the Distributee's designated beneficiary, or
                  for a specified period of ten (10) years or more;

                                      -8-
<PAGE>

         B.       Any distribution to the extent such distribution is required
                  under Code section 401(a)(9);

         C.       The portion of any distribution that is not includible in
                  gross income (determined without regard to the exclusion for
                  net unrealized appreciation with respect to employer
                  securities); provided, however, that:

                  1.       A portion of a distribution shall not fail to be an
                           Eligible Rollover Distribution merely because the
                           portion consists of after-tax Employee contributions
                           that are not includible in gross income; and

                  2.       Notwithstanding the preceding clause, such portion
                           may be transferred only to an individual retirement
                           account described in Code section 408(a) or an
                           individual retirement annuity described in Code
                           section 408(b), or to a qualified defined
                           contribution plan described in Code section 401(a) or
                           403(a) that agrees to separately account for amounts
                           so transferred, including separately accounting for
                           the portion of such distribution that is includible
                           in gross income and the portion of such distribution
                           that is not so includible; and

         D.       Any hardship distribution as described in Code
                  section401(k)(2)(B)(i)(IV).

2.16.    Employee.
         --------

         "Employee" means an individual, who is employed by the Employer.

2.17.    Employer.
         --------

         "Employer" means the Employer adopting this Plan, any predecessor
         employer and any successor assuming the Plan, which shall be the
         principal sponsoring Employer. The principal sponsoring Employer shall
         be the plan sponsor (as defined in section3(16)(B) of ERISA) and shall
         be responsible for the administration and management of the Plan except
         for those duties specifically delegated to the Plan Administrator or
         the Trustee. "Employer" also means any Participating Affiliated
         Employer that has adopted the Plan when the context requires such an
         interpretation or any Participating Affiliated Employer that the
         principal sponsoring Employer has formally approved its participation
         in the Plan.

                                      -9-
<PAGE>

2.18.    Employment Commencement Date.
         ----------------------------

         "Employment Commencement Date" means the date on which the Employee
         first performs an Hour of Service for the Employer.

2.19.    ERISA.
         -----

         "ERISA" means the Employee Retirement Income Security Act of 1974,
         Public Law93-406, enacted September2, 1974, as it may be amended from
         time to time.

2.20.    Highly Compensated Employee.
         ---------------------------

         "Highly Compensated Employees" means any Employee who:

         A.       Was a five percent (5%) owner of the Employer at any time
                  during the Plan Year or the preceding Plan Year; or

         B.       Had total Compensation from the Employer in excess of ninety
                  thousand dollars ($90,000) (as adjusted pursuant to Code
                  section414(q)) for the preceding Plan Year. The Employer is
                  not making a "Top Paid Group" election.

2.21.    Hour Of Service.
         ---------------

         "Hour Of Service" means each hour for which an Employee is paid or
         entitled to payment for the performance of duties for the Employer.

         For purposes of determining an Employee's initial or continued
         eligibility to participate in the Plan or the nonforfeitable interest
         in the Participant's Account, an Employee will receive credit for the
         aggregate of all time period(s) commencing with the Employee's first
         day of employment or reemployment and ending on the date a Break In
         Service begins. The first day of employment or reemployment is the
         first day the Employee performs an Hour Of Service. An Employee will
         also receive credit for any Break In Service of less than twelve (12)
         consecutive months. Fractional periods of a year will be expressed in
         terms of days.

         In the case of an individual who is absent from work for maternity or
         paternity reasons, as further defined in the Break In Service
         paragraph, the twelve (12) consecutive month period beginning on the
         first anniversary of the first date of such absence shall not
         constitute a Break In Service.

                                      -10-
<PAGE>

         If the Employer is a member of an affiliated service group (under Code
         section 414(m)), a controlled group of corporations (under Code
         section 414(b)), a group of trades or businesses under common control
         (under Code section 414(c)) or any other entity required to be
         aggregated with the Employer pursuant to Code section 414(o), service
         will be credited for any employment for any period of time for any
         other member of such group. Service will also be credited for any
         individual required under Code section414(n) or Code section 414(o) to
         be considered an Employee of any Employer aggregated under Code section
         414(b), (c) or (m).

         If the Employer maintains the plan of a predecessor employer, service
         with such employer will be treated as service for the Employer.

2.22.    Matching Contributions.
         ----------------------

         "Matching Contributions" means those contributions made to the Plan by
         the Employer under the Employer Contributions-Matching Contributions
         paragraph and which were not subject to the cash or deferred election
         under the Employer Contributions-Elective Contributions paragraph.

2.23.    Nonelective Contributions.
         -------------------------

         "Nonelective Contributions" means those contributions
         made to the Plan by the Employer under the Employer
         Contributions-Nonelective Contributions paragraph and which were not
         subject to the cash or deferred election under the Employer
         Contributions-Elective Contributions paragraph.

2.24.    Nonhighly Compensated Employee.
         ------------------------------

         "Nonhighly Compensated Employee" means an Employee who is not a Highly
         Compensated Employee.

2.25.    Normal Retirement Age.
         ---------------------

         "Normal Retirement Age" means age sixty-five (65).

2.26.    Participant.
         -----------

         "Participant" means any Employee or former Employee who has met the
         Plan's eligibility requirements, commenced participation in the Plan,
         and

                                      -11-
<PAGE>

         is or may become eligible to receive a benefit under the Plan, or whose
         Beneficiaries may be eligible to receive any such benefit.

2.27.    Participating Affiliated Employer.
         ---------------------------------

         "Participating Affiliated Employer" means an Affiliated Employer who
         has adopted this Plan by signing this Plan or an adoption agreement or
         any Affiliated Employer who North Valley Bancorp has formally allowed
         to participate in the Plan through formal Board of Directors resolution
         and/or Plan amendment. The current Participating Affiliated Employers
         are North Valley Bank, Bank Processing, Inc, Six Rivers Bank and,
         effective September1, 2004, Yolo Community Bank.

2.28.    Plan.
         ----

         "Plan" means North Valley Bancorp 401(k) Plan as set forth herein and
         any amendments hereto.

2.29.    Plan Administrator.
         ------------------

         "Plan Administrator" means the Administrative Retirement Committee
         appointed pursuant to article 12 of this Plan.

2.30.    Plan Year.
         ---------

         "Plan Year" means the twelve (12) consecutive month period ending on
         the last day of December.

2.31.    Qualified Elective Contributions.
         --------------------------------

         "Qualified Elective Contributions" means Nonelective Contributions and
         Matching Contributions to the extent taken into account under the terms
         of the Plan in determining the Actual Deferral Percentage ("Qualified
         Nonelective Contributions" and "Qualified Matching Contributions").
         Qualified Nonelective Contributions and Qualified Matching
         Contributions under this Plan, or any other plan of the Employer, shall
         be taken into account as provided in Treasury Regulations to the extent
         needed to meet the Actual Deferral Percentage test, below.

2.32.    Qualified Joint And Survivor Annuity.
         ------------------------------------

         A "Qualified Joint and Survivor Annuity" is an immediate annuity for
         the life of the Participant with a survivor annuity for the life of the
         Participant's spouse which is fifty percent (50%) of the amount of the
         annuity which is

                                      -12-
<PAGE>

         payable during the joint lives of the Participant and the Participant's
         spouse and which is the amount of benefit which can be purchased with
         the Participant's vested Accrued Benefit. However, if the Participant
         so elects, the percentage(s) of the survivor annuity of the Qualified
         Joint and Survivor Annuity under the Plan shall be fifty percent (50%),
         seventy-five percent (75%), one hundred percent (100%); provided that
         the Qualified Joint and Survivor Annuity shall be the actuarial
         equivalent of the Qualified Joint and Survivor Annuity described in the
         first (1st) sentence of this section.

2.33.    Qualified Matching Contributions.
         --------------------------------

         "Qualified Matching Contributions" shall mean Matching Contributions
         which are subject to the distribution and nonforfeitability
         requirements under Code section 401(k) when made.

2.34.    Qualified Nonelective Contributions.
         -----------------------------------

         "Qualified Nonelective Contributions" shall mean contributions (other
         than Matching Contributions or Qualified Matching Contributions) made
         by the employer and allocated to Participants' Accounts that the
         Participants may not elect to receive in cash until distributed from
         the plan; that are nonforfeitable when made; and that are distributable
         only in accordance with the distribution provisions that are applicable
         to Elective Contributions and Qualified Matching Contributions.

2.35     Qualified Pre-Retirement Survivor Annuity.
         -----------------------------------------

         A "Qualified Pre-Retirement Survivor Annuity" is a survivor annuity for
         the life of the surviving spouse of the Participant which is the
         actuarial equivalent of the vested Accrued Benefit of the Participant.

2.36.    Reemployment Commencement Date.
         ------------------------------

         "Reemployment Commencement Date" means the date on which a former
         Employee first performs an Hour of Service for the Employer after the
         Employee's reemployment.

2.37.    Rollover Contributions.
         ----------------------

         "Rollover Contributions" means any distribution from an Eligible
         Retirement Plan defined in the Rollover Contributions paragraph.

                                      -13-
<PAGE>

2.38.    Severance From Employment.
         -------------------------

         "Severance From Employment" means discontinuance of employment with the
         Employer for any reason.

2.39.    Suspense Account.
         ----------------

         "Suspense Account" means the account provided in the Suspense Account
         article of the Limitation On Contributions and Benefits article, below.

2.40.    Top-Paid Group.
         --------------

         "Top-Paid Group" means the group of Employees consisting of the top
         twenty percent (20%) of all Employees when ranked on the basis of total
         compensation; excluding:

         A.       Unless the Employer otherwise elects pursuant to regulations
                  promulgated under Code section 414(q), Employees who:

                  1.       Have not completed six (6) months of service by the
                           end of the year including service from the
                           immediately preceding year;

                  2.       Are Part-Time Employees;

                  3.       Are Seasonal Employees; or

                  4.       Have not attained age twenty-one (21) by the end of
                           the year.

         B.        Employees who are nonresident aliens described in Code
                   section 414(q)(11); and

         C.        Employees who are covered under a collective bargaining
                   agreement or agreements that the Secretary of Labor finds to
                   be collective bargaining agreements between employee
                   representatives and the Employer, which agreements satisfy
                   Code section 7701(a)(46) and Temporary Regulations section
                   301.7701-17T, but only if ninety percent (90%) or more of the
                   Employees of the Employer covered by such agreements and this
                   Plan covers only Employees who are not so covered; such

                                      -14-
<PAGE>

                   Employees shall also be excluded from the group of Employees
                   in the top twenty percent (20%) group.

         For purposes of the Highly Compensated Employees article above, no
         Top-Paid Group election has been made.

2.41.    Trust.
         ----

         "Trust" means the Trust Agreement, or any trust equivalent, executed by
         the Employer.

2.42.    Trustee.
         -------

         "Trustee" means the Trustee(s) signing the Trust and any successor
         Trustee(s). If a group annuity contract is being used in lieu of a
         trust agreement, the term Trustee shall refer to the issuer of the
         group annuity contract.

2.43.    Trust Fund.
         ----------

         "Trust Fund" means the fund held by the Trustee pursuant to the terms
         of the Trust and for the purpose of this Plan.

2.44.    Valuation Date.
         --------------

         "Valuation Date" means each day of the Plan Year for which current
         Trust Fund information is available.

2.45.    Vested.
         ------

         "Vested" means that portion of the Participant's Account in which the
         Participant or the Participant's Beneficiary has an unconditional,
         nonforfeitable right which is legally enforceable against the Plan.

2.46.    Vesting Computation Period.
         --------------------------

         A "Vesting Computation Period" shall mean the twelve (12) consecutive
         month period beginning with the later of the Employee's Employment
         Commencement Date or the effective date of this Plan, and each Plan
         Year thereafter, beginning with the Plan Year in which ends the
         Employees first twelve (12) consecutive month period of Service.

                                      -15-
<PAGE>

                    ARTICLE 3. ELIGIBILITY AND PARTICIPATION

3.01.    Eligibility And Entry Date.
         --------------------------

         All Eligible Employees may participate in the Plan. An Eligible
         Employee becomes a Participant on the January 1 or July 1 following the
         completion of six (6) months of actual Service with the Employer.

         Yolo Community Bank Employees, who are Eligible Employees on September
         1, 2004 and either (i) were enrolled as participants in the Yolo
         Community Bank 401(k) Profit Sharing Plan as of August 30, 2004 or (ii)
         were eligible to be enrolled as participants in the Yolo Community Bank
         401(k) Profit Sharing Plan as of July 1, 2004 due to completing one (1)
         month or more of Service with Yolo Community Bank before July 1, 2004,
         shall become Participants in the Plan effective September 1, 2004. Yolo
         Community Bank employees who are Eligible Employees on October 1, 2004
         and had completed one (1) month or more of Service with Yolo Community
         Bank before October 1, 2004 shall become Participants in the Plan
         effective October 1, 2004.

         Yolo Community Bank Employees who became Participants as of September
         1, 2004 and did not timely submit a Compensation reduction agreement
         before September 1, 2004, will have a second opportunity to submit a
         Compensation reduction agreement before October 1, 2004.

3.02.    Excluded Employees.
         ------------------

         This Plan excludes:

         A.       Employees who are nonresident aliens and who receive no earned
                  income (within the meaning of Code section911(d)(2)) from the
                  Employer which constitutes income from sources within the
                  United States (within the meaning of Code section861(a)(3)).

         B.       Leased employees as defined in Code section414(n).

         C.       Any Employee of the controlled group of the Employer who does
                  not affirmatively adopt the Plan or who North Valley Bancorp
                  does not specifically formally include in the Plan through
                  formal Board of Directors resolution and/or Plan amendment.

                                      -16-
<PAGE>

3.03.    Participation.
         -------------

         The Plan Administrator, using employment dates certified by the
         Employer, shall determine which Employees are eligible to participate,
         and the Plan Administrator shall furnish such information and attendant
         data to the Trustee. The Plan Administrator shall notify each Employee
         of the Employee's eligibility and of any application or requirements
         for participation. To become a Participant, each Employee must enroll
         in the Plan in accordance with the requirements established by the Plan
         Administrator. By becoming a Participant, the Employee agrees to be
         bound by all terms, conditions and covenants of this Plan as then in
         effect or as thereafter amended.

3.04.    Inactive Status.
         ---------------

         If any Participant fails, in any Plan Year after the Participant
         commences participation under the Plan, to accumulate one (1) Hour of
         Service, despite the Participant's continued employment by the
         Employer, the Participant shall be placed on inactive status. In such
         cases, such Plan Year shall not be considered as a Period Of Service
         for the purposes of determining the Participant's Vested interest or
         for purposes of benefit accrual. If such Participant accumulates one
         (1) Hour of Service for the Employer in a subsequent Plan Year, the
         Participant shall revert to active status as of the first day of such
         Plan Year.

3.05.    Suspension Of Current Participation.
         -----------------------------------

         If any Participant (a) has a Severance From Employment; (b) becomes a
         member of an ineligible class of Employees; (c) is granted an unpaid
         leave of absence; or (d) is granted a waiver of participation, such
         Participant shall cease to be an active Participant under this Plan.
         Such Participant's Nonelective Account shall be placed on inactive
         status, and the Participant shall not share in the allocation of
         Employer contributions or forfeitures but the Participant's Accounts
         shall continue to receive allocations of Trust investment results. If
         in the year of the event suspending current participation the
         Participant has one (1) or more Hours of Service in that Plan Year
         prior to such event, then the Participant shall be allocated a share of
         any Employer contributions or forfeitures for that Plan Year pursuant
         to the Allocation Of Employer Contributions paragraph, below, based
         upon the Participant's Compensation prior to the date of suspension,
         unless employment on the last day of the Plan Year is required in order
         to receive such an allocation, and that Plan Year shall count for
         vesting purposes.

                                      -17-
<PAGE>

3.06.    Reemployed Former Participants And Excluded Employees.
         -----------------------------------------------------

         A.       If a terminated Participant is reemployed by the Employer
                  before a Break in Service occurs, the Participant shall
                  continue to participate in the Plan in the same manner as if a
                  Severance From Employment had not occurred.

         B.       A Participant who had a Vested right to all or a portion of
                  the Participant's Account derived from Employer contributions
                  at the time of the Participant's Severance From Employment
                  shall receive credit for all Periods Of Service prior to the
                  Participant's Break in Service upon completing a Period Of
                  Service after the Participant's return to the employ of the
                  Employer.

         C.       A Participant who did not have a Vested right to any portion
                  of the Participant's Account derived from Employer
                  contributions at the time of the Participant's Severance From
                  Employment shall be considered a new Employee for eligibility
                  purposes if the number of consecutive one (1) year Breaks in
                  Service equals or exceeds the greater of five (5) or the
                  aggregate number of Periods Of Service before such Break in
                  Service; otherwise, such Periods Of Service prior to the
                  Participant's Break in Service shall count for eligibility
                  purposes.

         D.       If a Participant becomes ineligible to participate because the
                  Participant is no longer a member of an eligible class of
                  Employees, but has not incurred a Break in Service, such
                  Employee shall participate immediately upon return to an
                  eligible class of Employees. If such Participant incurs a
                  Break in Service, the Participant's eligibility to participate
                  shall be determined pursuant to the two preceding paragraphs.

         E.       If an Employee who is not a member of the eligible class of
                  Employees becomes a member of the eligible class, such
                  Employee shall participate immediately if such Employee has
                  satisfied the minimum age and service requirements and would
                  have previously become a Participant had the Employee been in
                  the eligible class.

         F.       Periods Of Service and Breaks in Service shall always be
                  measured on the same computation period.

                                      -18-
<PAGE>

3.07.    Leaves Of Absence.
         -----------------

         Service with the Employer shall not be deemed to have been interrupted
         by the fact that an Employee has been on leave of absence with the
         consent of the Employer, provided that the Employee returns to the
         employ of the Employer at the expiration of such leave. Such
         Participant shall continue to receive Periods Of Service on the vesting
         schedule. Leaves of absence shall mean leaves granted by the Employer,
         in accordance with rules uniformly applied to all Employees, for
         reasons determined by the Employer to be in its best interests. Service
         with the Employer shall likewise not be deemed to have been terminated
         while an Employee is a member of the Armed Forces of the United States,
         provided that the Employee returns to the service of the Employer
         within ninety (90) days (or such longer period as may be prescribed by
         law) from the date the Employee first became entitled to discharge from
         the Armed Forces. Employees who do not return to the employ of the
         Employer within thirty (30) days following the end of the leave of
         absence, or within the required time in the case of service with the
         Armed Forces, shall be deemed to have terminated their employment as of
         the date when their leave began (unless such failure to return was the
         result of their death, total disability or approved early, deferred or
         normal retirement, in which case the date of such event shall be the
         date of Severance From Employment).

3.08.    Service With An Affiliated Employer.
         -----------------------------------

         All employees of all Affiliated Employers shall be treated as employed
         by a single employer for purposes of determining Service; provided,
         however, that employees of an Affiliated Employer shall not participate
         in this Plan unless the Affiliated Employer has adopted this Plan as a
         plan for its employees or if North Valley Bancorp has not formally
         adopted a Board of Directors resolution and/or Plan amendment to
         provide for participation in the Plan of the employees of the
         Affiliated Employer. Periods of Service with Yolo Community Bank prior
         to September 1, 2004 shall be credited to Employees who were employees
         of Yolo Community Bank as of August 31, 2004 for purposes of
         eligibility, accrual of benefits and vesting.

3.09.    Leased Employees.
         ----------------

         "Leased Employee" means any person who is not an Employee of the
         Employer and who provides services to the Employer if:

                                      -19-
<PAGE>

         A.       Such services are provided pursuant to an agreement between
                  the Employer and the leasing organization;

         B.       Such person has performed such services for the Employer or
                  related person on a substantially full time basis for a period
                  of at least one (1) year; and

         C.       Such services are performed under primary direction or control
                  by the Employer.

         Any Leased Employee shall be treated as an Employee of the recipient
         Employer, and the portion of the Leased Employee's total compensation
         received from, or on behalf of, the leasing organization that is
         attributable to the performance of services for the recipient Employer
         shall be utilized for purposes of providing the Leased Employee with
         benefits under this Plan if the Leased Employee is otherwise eligible
         under the Plan's Eligibility Requirements. Notwithstanding the
         foregoing, if such Leased Employees do not constitute more than twenty
         percent (20%) of the Employer's nonhighly compensated workforce within
         the meaning of Code section414(n)(1)(c)(ii), a Leased Employee shall
         not be treated as an Employee of the Employer if such Leased Employee
         is covered by a plan which is maintained by the leasing organization
         if, with respect to such Leased Employee, such plan:

         A.       Is a money purchase pension plan with a nonintegrated employer
                  contribution rate for each participant of at least ten percent
                  (10%) of compensation, as defined in Code section415(c)(3),
                  but including amounts contributed pursuant to a salary
                  reduction agreement, which are excludable from the Employee's
                  gross income under Code sections 125, 402(a)(8), 402(h),
                  403(b) or 132(f);

         B.       Provides for full and immediate vesting; and

         C.       Provides for immediate participation for each employee of the
                  leasing organization other than employees who perform
                  substantially all of their services for the leasing
                  organization and other than employees whose compensation from
                  the leasing organization in each Plan Year during the four (4)
                  year period ending with the Plan Year is less than one
                  thousand dollars ($1,000).

                                      -20-
<PAGE>

3.10.    Military Service.
         ----------------

         Notwithstanding any provision of this Plan to the contrary with regard
         to an Employee who after serving in the uniformed services is
         reemployed on or after December 12, 1994 within the time required by
         USERRA, contributions, benefits and service credit with respect to
         qualified military service will be provided in accordance with Code
         section 414(u).

                            ARTICLE 4. CONTRIBUTIONS

4.01.    Employer Contributions-Elective Contributions.
         ---------------------------------------------

         A.       Each year, the Employer shall make contributions to this Plan
                  and the Trust in an amount equal to the total compensation
                  reduction elections of all Participants made pursuant to this
                  article.

         B.       Each Plan Year, a Participant may elect to enter into a
                  written Compensation reduction agreement with the Employer to
                  defer up to fifty percent (50%), in nonfractional increments
                  of one percent (1%), of his Compensation which would have been
                  received for the Plan Year but for the deferral election.
                  Except as provided in paragraph D below, such election will be
                  applicable to all payroll periods within such Plan Year,
                  whereby the Participant agrees to accept a reduction in
                  Compensation from the Employer equal to any whole percentage
                  of such Participant's Compensation per payroll period, not to
                  exceed the amount which will cause the Plan to violate the
                  provisions of the Limitation On Contributions And Benefits
                  article, below, and not to exceed the maximum amount allowable
                  as a deduction to the Employer under Code section404.

         C.       For the period September 1, 2004 through December 31, 2004
                  (Period), a Yolo Community Bank Employee who became a
                  Participant on September 1, 2004 may elect to enter into a
                  written Compensation reduction agreement with the Employer to
                  defer a flat whole dollar amount per pay period which will not
                  exceed fifty percent (50%) of his Compensation which would
                  have been received for the Plan Year but for the deferral
                  election. Except as provided in paragraph D below, such
                  election will be applicable to all payroll periods within such
                  Period whereby the Participant agrees to accept a reduction in
                  Compensation from the Employer equal to any flat whole dollar
                  of such Participant's Compensation per payroll period, not to
                  exceed the amount which will cause the

                                      -21-
<PAGE>

                  Plan to violate the provisions of the Limitation On
                  Contributions And Benefits article, below, and not to exceed
                  the maximum amount allowable as a deduction to the Employer
                  under Code section 404.

         D.       The Employer may allow a Participant upon proper notice and
                  approval to enter into a special salary reduction agreement to
                  make additional Elective Contributions in an amount up to one
                  hundred percent (100%) of his Compensation for the payroll
                  period(s) designated by the Employer. However, the maximum
                  amount under paragraph B and C for any Plan Year may not
                  exceed fifty percent (50%) of the Participant's Compensation
                  for such Plan Year.

         E.       All Employees who are eligible to make Elective Contributions
                  under this Plan and who have attained age fifty (50) before
                  the close of the Plan Year shall be eligible to make Catch-Up
                  Contributions in accordance with, and subject to the
                  limitations of, Code section414(v).

         F.       Compensation reduction agreements shall be subject to the
                  following:

                  1.       A Compensation reduction agreement shall apply to
                           each payroll period during which an effective
                           Compensation reduction agreement is on file with the
                           Employer.

                  2.       A Compensation reduction agreement may be amended by
                           a Participant at any time if the purpose of the
                           amendment is to cease the amount of such
                           Participant's Compensation which is subject to
                           Compensation reduction. If a Participant ceases his
                           Elective Contributions he may not again participate
                           until the first day of any month.

                  3.       A Compensation reduction agreement may be amended by
                           a Participant prior to the beginning of the first day
                           of any month if the purpose of the amendment is to
                           increase or decrease (but not totally cease) the
                           amount of such Participant's Compensation which is
                           subject to Compensation reduction during such period
                           and the remainder of such Plan Year.

                  4.       Compensation reduction agreements and amendments to
                           Compensation reduction agreements shall be effective
                           as

                                      -22-
<PAGE>

                           of, and shall not apply to any payroll period
                           preceding, the payroll period next following the date
                           the Compensation reduction agreement or amendment to
                           the Compensation reduction agreement is executed by
                           the Participant and the Employer.

                  5.       In general, Compensation reduction agreements (other
                           than a participant's initial election) or amendments
                           to compensation reduction agreements are effective as
                           of the first day of the next month.

                  6.       The Employer may amend or revoke its Compensation
                           reduction agreement with any Participant at any time
                           if the Employer determines that such revocation or
                           amendment is necessary to ensure that the Plan will
                           not exceed the limitations of the Limitation On
                           Contributions And Benefits article, below.

                  7.       Except as provided above or as specifically allowed
                           by the Plan Administrator, a Compensation reduction
                           agreement applicable to any given Plan Year, once
                           made, may not be revoked or amended by the
                           Participant or the Employer.

4.02.    Employer Contributions-Nonelective Contributions.
         ------------------------------------------------

         A.       For each Plan Year, the Employer may make a discretionary
                  contribution which is not limited to its current or
                  accumulated net profit. The amount to be contributed to this
                  Plan shall not be subject to the election provided in the
                  Employer Contributions-Elective Contributions article, above.

         B.       In addition, the Employer may in its discretion contribute an
                  amount, which amount shall be deemed an Employer Qualified
                  Nonelective Contribution.

4.03.    Employer Contributions-Matching Contributions.
         ---------------------------------------------

         A.       Each payroll period and except as provided in paragraph B
                  below, the Employer shall contribute to each eligible
                  Participant's account an amount equal to twenty-five percent
                  (25%) of the Participant's Elective Deferrals. The maximum
                  amount of Elective Deferrals for which such Matching
                  Contributions will be made is five percent (5%) of
                  Compensation which means that the

                                      -23-
<PAGE>

                  maximum Matching Contribution will be one and one-fourth
                  percent (1.25%) of Compensation.

         B.       Effective September 1, 2004 to December 31, 2004, each payroll
                  period, the Employer shall contribute to each eligible
                  Participant's account who is an employee of Yolo Community
                  Bank, an amount equal to fifty percent (50%) of the
                  Participant's Elective Deferrals. The maximum amount of
                  Elective Deferrals for which such Matching Contributions will
                  be made is six percent (6%) which means that the maximum
                  Matching Contributions will be three percent (3%) of
                  Compensation during that period.

         C.       In addition, the Employer may in its discretion, contribute an
                  amount, which amount shall be deemed an Employer Qualified
                  Matching Contribution.

4.04.    Employer Determination.
         ----------------------

         The Employer shall determine the amount of any contributions to be made
         by it to the Plan. Such determination shall be final and conclusive,
         and shall not be subject to change as a result of a subsequent
         adjustment of the Employer's records. The determination by the Employer
         of such contribution, or the earnings on which such contribution is
         based, shall be binding on the Trustees and all Participants, and shall
         not be subject to review in any manner. Neither the Trustees,
         Participants nor any person interested in the Trust Fund shall have any
         right to question that action, the judgment of the Employer, the
         accuracy of the books of account or other data or the method of
         accounting upon which the Employer might rely. The Trustees shall have
         no right or duty to inquire into the amount of the Employer's
         contribution, but shall be accountable only for funds actually
         received.

4.05.    Profits Not Required.
         --------------------

         The Employer may make contributions to the Plan without regard to
         current or accumulated earnings and profits for the taxable year or
         years ending with or within the Plan Year. Notwithstanding the
         foregoing, the Plan shall continue to be designed to qualify as a
         "profit sharing plan" for purposes of the Code and ERISA.

                                      -24-
<PAGE>

4.06.    Form Of Contribution.
         --------------------

         Employer contributions shall be made to the Trustee in the form of any
         property which is acceptable to the Trustee. It shall be the Employer's
         responsibility to determine the fair market value of any property
         contributed which is not cash or equivalent. No contribution shall be
         made in the form of the Employer's promissory note, whether secured or
         not.

4.07.    Time Of Contributions.
         ---------------------

         A.       Nonelective Contributions and Matching Contributions may be
                  made at any time, but not later than the final date for filing
                  the Employer's federal income tax returns for such year
                  (including extensions). If the contribution is accrued for the
                  preceding Plan Year, and is actually made after the close of
                  the Plan Year for which it is to be deducted, the contribution
                  shall be accompanied by the Employer's signed statement to the
                  Trustee that payment of the contribution is on account of the
                  preceding Plan Year and shall be allocated to Participants'
                  Nonelective and Matching Accounts as of the last day of the
                  preceding Plan Year. Notwithstanding the foregoing, Matching
                  Contributions

         B.       Elective Contributions shall be made no later than the final
                  date for filing the Employer's federal income tax returns for
                  such year (including extensions); provided, however, that
                  Elective Contributions accumulated through payroll deductions
                  shall be paid to the Trustee as of the earliest date on which
                  such contributions can reasonably be segregated from the
                  Employer's general assets, but in any event within fifteen
                  (15) business days following the end of the month in which
                  such amounts would otherwise have been payable to the
                  Participant in cash. The provisions of Department of Labor
                  regulations 2510.3-102 are incorporated herein by reference.
                  Furthermore, any additional Employer contributions which are
                  allocable to the Participant's Elective Account for a Plan
                  Year shall be paid to the Plan no later than the twelve (12)
                  month period immediately following the close of such Plan
                  Year.

4.08.    Rollover Contributions.
         ----------------------

         An Eligible Employee who is entitled to receive an Eligible Rollover
         Distribution from an Eligible Retirement Plan as such terms are defined

                                      -25-
<PAGE>

         in the Eligible Rollover Distributions paragraph may elect at the time
         and in the manner prescribed by the Plan Administrator, to have any
         portion of such Eligible Rollover Distribution contributed to this
         Plan. Such Eligible Rollover Distribution may include after-tax
         employee contributions from an Eligible Retirement Plan.

             ARTICLE 5. ALLOCATIONS OF CONTRIBUTIONS AND VALUATION

5.01.    Valuation Of The Trust or Custodial Account
         -------------------------------------------

         The assets of the Trust shall be valued at fair market value on a
         "daily valuation basis" as of each Valuation Date. The Trustees, as of
         the close of business on each Valuation Date, shall determine the net
         worth of the assets of the Trust at their fair market value (using
         criteria and sources of information that the Trustees, in the Trustees
         sole discretion, deems appropriate), and shall deduct all fees and
         expenses for which the Trustees have not yet obtained reimbursement
         from the Employer or from the Trust. Such valuation shall not include
         any segregated accounts (which shall be valued separately) or
         contributions for the current Plan Year made by the Employer or any
         Employee as of such Valuation Date or thereafter, which shall be valued
         separately.

5.02.    Order Of Adjustment.
         -------------------

         Subject to the provisions of this Allocations Of Contributions And
         Valuation article, as of each Valuation Date, the Plan Administrator
         shall adjust the Participants' Accounts as follows, in the order
         stated:

         A.       First, reflect proportionately any adjustment of fair market
                  value of assets in the manner as provided in the Allocation Of
                  Investment Results article, below;

         B.       Second, allocate proportionately any income or loss in the
                  manner provided in the Allocation Of Investment Results
                  article, below;

         C.       Third, allocate Employer contributions in the manner provided
                  in the Allocation Of Employer Nonelective Contributions and
                  the Allocation Of Employer Elective Contributions and Matching
                  Contributions articles, below; provided that forfeitures
                  arising during the Plan Year shall first be made available to
                  reinstate previously forfeited account balances of former
                  Participants, if any, in accordance with the Effect of Certain
                  Distributions article below. The remaining forfeitures, if
                  any, shall be used to reduce the

                                      -26-

<PAGE>

                  Employer's Nonelective Contributions or Employer's Matching
                  Contributions hereunder.

5.03.    Allocation Of Investment Results.
         --------------------------------

         Income or loss generated since the immediately preceding Valuation Date
         by a segregated account, less a prorated portion of the Plan's
         administrative cost, shall be allocated solely to the account or
         investment involved. As of any Valuation Date, the income or loss
         attributable to the remaining assets of the Plan, reduced by expenses
         incurred since the preceding Valuation Date, shall be allocated to the
         Accounts of the Participants and Beneficiaries who had unpaid balances
         in their Accounts as of such Valuation Date in proportion to the
         balances in such Accounts as of the prior Valuation Date after reducing
         such prior Valuation Date balances by amounts withdrawn or distributed
         since such Valuation Date, if any.

5.04.    Allocation Of Employer Nonelective Contributions.
         ------------------------------------------------

         A.       The Employer's Nonelective Contributions to this Plan shall be
                  allocated among the Nonelective Accounts of the Participants
                  eligible to receive an allocation of Nonelective Contributions
                  in the ratio that each Eligible Participant's Compensation for
                  such period bears to the aggregate Compensation for all
                  Participants during such period.

         B.       If the Employer makes a Qualified Nonelective Contribution for
                  a given Plan Year, such contribution shall only be allocated
                  to those Nonhighly Compensated Employees whose Compensation
                  tests in ascending order from the lowest testing Compensation
                  to the testing Compensation needed to pass the Actual Deferral
                  Percentage Test.

5.05.    Allocation Of Employer Elective Contributions And Matching
         -----------------------------------------------------------
         Contributions.
         -------------

         The Employer's Elective Contributions, Catch-Up Contributions and
         Matching Contributions shall be allocated among the Elective Accounts,
         Catch-Up Contributions and Matching Accounts, respectively, of those
         Participants making the election for a contribution to this Plan under
         the Employer Contributions-Elective Contributions article, above, in
         the amount so elected by the Participant and in the appropriate amount
         of the Matching Contribution. Employer Elective Contributions and
         Catch-Up Contributions, if any, will be allocated as soon as
         administratively

                                      -27-
<PAGE>

         feasible following the last day of each payroll period during the Plan
         Year. Employer Matching Contributions, if any, will be allocated as of
         each payroll period during the Plan Year. Employer Matching
         Contributions will not be allocated to Employer Elective Contributions
         that are Catch-Up Contributions under the Employer Contribution
         Elective Contributions paragraph.

5.06.    Application Of Forfeitures.
         --------------------------

         Each Plan Year, forfeitures arising during that year shall first be
         made available to reinstate previously forfeited account balances of
         former Participants, if any, in accordance with the Allocation of
         Forfeitures article, below. The remaining forfeitures shall be applied
         to reduce the Employer's Nonelective Contribution or Employer's
         Matching Contributions for the Plan Year in which such forfeitures
         occur.

         Notwithstanding the above, forfeitures may first be used to pay
         administrative expenses under the Plan, as directed by the Employer.

5.07.    Permitted Reallocations.
         -----------------------

         In the event that any amount of any Participant's Compensation for a
         Plan Year has been found by the Internal Revenue Service, the
         California Franchise Tax Board, or a court of competent jurisdiction in
         a final decision, to be unreasonable, contributions for the affected
         Plan Year shall be applied to reduce the Employer's Nonelective
         Contribution the following Plan Year. The Participant's Nonelective
         Accounts and the allocation of investment results shall be adjusted to
         reflect the results of such allocation in each subsequent Plan Year.

              ARTICLE 6. LIMITATION ON CONTRIBUTIONS AND BENEFITS

6.01.    Special Definitions.
         -------------------

         For purposes of this article, the following definitions shall apply:

         A.       Annual Additions.
                  ----------------

                  "Annual Additions" means the sum of the following amounts
                  allocated on behalf of a Participant for a Limitation Year:

                  1.      All Employer contributions;

                  2.      All forfeitures;

                                      -28-
<PAGE>

                  3.      All Employee contributions;

                  4.       Amounts allocated to an individual medical account
                           (as defined in Code section 415(1)(2)) which is part
                           of a pension or annuity plan maintained by the
                           Employer; and

                  5.       Amounts derived from contributions paid or accrued
                           which are attributable to post-retirement medical
                           benefits allocated to the separate account of a key
                           employee (as defined in Code section 419A(d)(3))
                           under a welfare benefit plan (as defined in Code
                           section 419(e)) maintained by the Employer.

         B.       Employer.
                  --------

                  "Employer" means the Employer that adopts this Plan. In the
                  case of a group of employers which constitutes a controlled
                  group of corporations (as defined in Code section414(b) as
                  modified by Code section415(h)), or which constitutes trades
                  or businesses (whether or not incorporated) which are under
                  common control (as defined in Code section414(c) as modified
                  by Code section415(h), or which constitutes an affiliated
                  service group (as defined in Code section414(m)), or which is
                  required to be aggregated with the Employer pursuant to the
                  regulations under Code section414(o), all such employers shall
                  be considered a single employer for purposes of applying the
                  limitations of this article.

         C.       Excess Amount.
                  -------------

                  "Excess amount" means the excess of the Participant's Annual
                  Additions for the Limitation Year over the Maximum Permissible
                  Amount, less loading and other administrative charges
                  allocated to such excess.

         D.       Limitation Year.
                  ---------------

                  "Limitation Year" means the Plan Year unless any other twelve
                  (12) consecutive month period is adopted for all plans of the
                  Employer adopted by the Employer and each Participating
                  Affiliated Employer.

                                      -29-
<PAGE>

         E.      Maximum Permissible Amount.
                 --------------------------

                  Except to the extent otherwise permitted for catch-up
                  contributions under the Maximum Amount Of Elective Deferrals
                  article, below, and Code section 414(v), if applicable, the
                  Annual Addition that may be contributed or allocated to a
                  Participant's Account under the Plan for any limitation year
                  shall not exceed the lesser of:

                  1.       Forty thousand dollars ($40,000), as adjusted for
                           increases in the cost-of-living under Code section
                           415(d), or

                  2.       One hundred percent (100%) of the Participant's Total
                           Compensation, within the meaning of Code
                           section415(c)(3), for the Plan Year.

                  The compensation limit referred to in (2) shall not apply to
                  any contribution for medical benefits after separation from
                  service (within the meaning of Code section401(h) or Code
                  section419A(f)(2)) which is otherwise treated as an Annual
                  Addition.

         F.       Total Compensation.
                  ------------------

                  1.       Except as otherwise provided herein, the term "Total
                           Compensation" means the Participant's compensation
                           from the Employer for the Plan Year and includes:

                           a.       The Participant's wages, salaries, fees for
                                    professional services, and other amounts
                                    received (without regard to whether or not
                                    an amount is paid in cash) for personal
                                    services actually rendered in the course of
                                    employment with the Employer maintaining the
                                    Plan to the extent that the amounts are
                                    includable in gross income (including, but
                                    not limited to, commissions paid salesmen,
                                    compensation for services on the basis of a
                                    percentage of profits, commissions on
                                    insurance premiums, tips, bonuses, fringe
                                    benefits, and reimbursements or other
                                    expense allowances under a nonaccountable
                                    plan (as described in Treasury regulations
                                    section 1.162-2(c)), including foreign
                                    earned income (as defined in Code section
                                    911(b)), whether or not excludable from
                                    gross income under

                                      -30-
<PAGE>

                                    Code section 911, and without regard to the
                                    exclusions from gross income in Code
                                    sections 931 and 933.

                           b.       In the case of a Participant who is an
                                    employee within the meaning of Code section
                                    401(c)(1) and the regulations thereunder,
                                    the Participant's earned income (as
                                    described in Code section 401(c)(2) and the
                                    regulations thereunder).

                           c.       Amounts described in Code sections
                                    104(a)(3), 105(a) and 105(h), but only to
                                    the extent that these amounts are includable
                                    in the gross income of the Participant,
                                    including foreign earned income (as defined
                                    in Code section 911(b)), whether or not
                                    excludable from gross income under Code
                                    section911, and without regard to the
                                    exclusions from gross income according to
                                    the principles set forth in Code sections
                                    931 and 933.

                           d.       Amounts paid or reimbursed by the Employer
                                    for moving expenses incurred by the
                                    Participant, but only to the extent that at
                                    the time of the payment it is reasonable to
                                    believe that these amounts are not
                                    deductible by the Participant under Code
                                    section217.

                           e.       The value of a nonqualified stock option
                                    granted to the Participant by the Employer,
                                    but only to the extent that the value of the
                                    option is includable in the gross income of
                                    the Participant for the taxable year in
                                    which granted.

                           f.       The amount includable in the gross income of
                                    the Participant upon making the election
                                    described in Code section 83(b).

                           g.       Any elective deferral (as defined in Code
                                    section402(g)(3)), and any amount which is
                                    contributed or deferred by the Employer at
                                    the election of the Employee and which is
                                    not includable in the gross income of the
                                    Employee by reason of Code sections 125, 457
                                    or 132(f)(4).

                                      -31-
<PAGE>

                  2.       The term "Total Compensation" shall not include
                           items such as:

                           a.       Any distributions from a plan of deferred
                                    compensation are not considered as
                                    compensation regardless of whether such
                                    amounts are includable in the gross income
                                    of the Employee when distributed. However,
                                    any amounts received by an Employee pursuant
                                    to an unfunded nonqualified plan may be
                                    considered as compensation in the year such
                                    amounts are includable in the gross income
                                    of the Employee.

                           b.       Amounts realized from the exercise of a
                                    nonqualified stock option, or when
                                    restricted stock (or property) held by an
                                    Employee either becomes freely transferable
                                    or is no longer subject to a substantial
                                    risk of forfeiture under Code section 83 and
                                    the regulations thereunder.

                           c.       Amounts realized from the sale, exchange or
                                    other disposition of stock acquired under a
                                    qualified stock option.

                           d.       Other amounts which receive special tax
                                    benefits, such as premiums for group-term
                                    life insurance (but only to the extent that
                                    the premiums are not includable in the gross
                                    income of the employee), or contributions
                                    made by an Employer (whether or not under a
                                    salary reduction agreement) towards the
                                    purchase of an annuity contract described in
                                    Code section 403(b) (whether or not the
                                    contributions are excludable from the gross
                                    income of the Employee).

6.02.    Limitation On Allocations.
         -------------------------

         A.       The amount of Annual Additions which may be allocated under
                  this Plan on a Participant's behalf for a Limitation Year
                  shall not exceed the lesser of the Maximum Permissible Amount
                  or any other limitation contained in this Plan.

         B.       Prior to the determination of the Participant's actual Total
                  Compensation for a Limitation Year, the Maximum Permissible

                                      -32-
<PAGE>

                  Amount may be determined on the basis of the Participant's
                  estimated Total Compensation for such Limitation Year. Such
                  estimated Total Compensation shall be determined on a
                  reasonable basis and shall be uniformly determined for all
                  Participants similarly situated. Any Employer contributions
                  (including allocations of forfeitures) based on estimated
                  Total Compensation shall be reduced by any Excess Amounts
                  carried over from prior years.

         C.       As soon as is administratively feasible after the end of the
                  Limitation Year, the Maximum Permissible Amount for such
                  Limitation Year shall be determined on the basis of the
                  Participant's actual Total Compensation for such Limitation
                  Year.

         D.       If there is an Excess Amount with respect to a Participant for
                  a Limitation year, such Excess Amount shall be disposed of as
                  follows:

                  1.       First, any Excess Amounts attributed to allocations
                           under the North Valley Bancorp Employee Stock
                           Ownership Plan shall be reduced prior to reducing
                           allocations or contributions under this Plan.

                  2.       Second, any Excess Amounts attributed to this Plan
                           shall be reduced, to the extent possible, by
                           distribution of elective deferrals (within the
                           meaning of Code section 402(g)(3) that have not been
                           matched), along with the distribution of gains
                           attributable to those elective deferrals in
                           accordance with Treasury Regulation section
                           1.415-6(b)(6)(iv).

                  3.       Third, any Excess Amounts attributed to this Plan
                           shall be reduced to the extent possible by
                           distribution of elective deferrals (and earnings as
                           described above) that have been matched and the
                           Employer Matching Contributions attributable thereto:

                  4.       Fourth, any Excess Amount remaining shall be returned
                           to the Employer or held in the Suspense Account.

         E.       Notwithstanding the foregoing, the otherwise permissible
                  Elective Contribution Amount for any Participant under this
                  Plan may be reduced to the extent necessary as determined by
                  the Employer, to prevent allocations in violation of this
                  Limitation On Allocations.

                                      -33-
<PAGE>

6.03.    Suspense Account.
         ----------------

         In the event that the Excess Amount in any year exceeds the maximum
         amount that may be allocated, or in the event of an unintentional
         error, computational or otherwise, by the Employer, in allocating
         Annual Additions to a Participant's Account, if such amount is not
         returned to the Employer, such amount, as determined by the Employer,
         may be held in the Suspense Account, subject to the following
         limitations and conditions:

         A.       Investment gains and losses and other income may not be
                  reallocated to this Suspense Account;

         B.       The amounts in this Suspense Account shall be allocated as of
                  each Allocation Date on which such amount may be allocated
                  until the Suspense Account is exhausted;

         C.       No Employer contributions may be made at any time when the
                  Suspense Account has unallocated amounts or when their
                  allocation would be precluded by Code section 415; and

         D.       Upon termination of the Plan, the Suspense Account shall
                  revert to the Employer to the extent that it may not then be
                  allocated to any Participant's Nonelective Account.

6.04.    Leased Employees.
         ----------------

         In the event that the interest of a leased employee (as defined in Code
         section414(n)) in a leasing organization's qualified plan attributable
         to services performed for the recipient Employer by the leased employee
         is treated a provided under a qualified plan of the recipient Employer
         pursuant to the provisions of Code section414(n) and the regulations
         thereunder, such interest shall be treated as being provided under a
         separate qualified plan of the recipient employer and shall be taken
         into account under this Plan for purposes of the limitations set forth
         in this Limitation On Contributions And Benefits article. In the event
         that the total of the benefits provided to the leased employee under
         the leasing organization's qualified plan and under all qualified plans
         maintained by the Employer would result in an Excess Amount, the
         benefits provided to the leased employee under the qualified plans
         maintained by the Employer shall be reduced in accordance with the
         provisions of this Limitation On Contributions And Benefits article in
         the same manner as if the benefits provided to the leased employee
         under the leasing organization's qualified plan were actually being
         provided by the recipient

                                      -34-
<PAGE>

         Employer's plan of the same type and as if the provisions of such plan
         required that compliance with the requirements of Code section415 be
         accomplished by means of reductions in the benefits being provided to
         the leased employee under all other plans.

6.05.    Nondiscrimination Limitations.
         -----------------------------

         A.       Special Compensation Deferral Definitions.
                  -----------------------------------------

                  For purposes of the limitations set forth in this
                  Nondiscrimination Limitations article and the Maximum Amount
                  of Elective Deferrals article, below, the following
                  definitions shall apply:

                  1.       Actual Deferral Percentage.
                           --------------------------

                           "Actual Deferral Percentage" for a specified group of
                           Employees for a Plan Year means the average of the
                           ratios, calculated separately for each eligible
                           Employee in such group, of the amount of the
                           Employer's Contributions made under the Plan on
                           behalf of such Employee for such Plan Year, to the
                           Employee's Preelection Compensation for such Plan
                           Year.

                  2.       Employer's Contributions.
                           ------------------------

                           "Employer's Contributions" on behalf of any
                           Participant means:

                           a.       Any Elective Deferrals made pursuant to the
                                    Participant's deferral election, including
                                    Excess Elective Deferrals as determined
                                    under the Maximum Amount Of Elective
                                    Deferrals article, below, but excluding
                                    Excess Elective Deferrals distributed to a
                                    Nonhighly Compensated Employee under this
                                    Plan or another plan of the Employer or an
                                    Affiliated Employer, and excluding Elective
                                    Deferrals that are taken into account in the
                                    Actual Contribution Percentage test, below
                                    (provided the Actual Deferral Percentage is
                                    satisfied both with and without exclusion of
                                    these Elective Deferrals); and excluding
                                    Catch-Up Contributions, and

                           b.       At the election of the Employer, Qualified
                                    Elective Contributions.

                                      -35-
<PAGE>

                  3.       Employee's Preelection Compensation.
                           -----------------------------------

                            "Employee's Preelection Compensation" means the
                            amount of the Employee's compensation prior to
                            calculating the Elective Contribution made on behalf
                            of the Employee under the deferral election of the
                            Employer Contributions-Elective Contributions
                            article.

                  4.       Qualified Elective Contributions.
                           --------------------------------

                           "Qualified Elective Contributions" means Nonelective
                           Contributions and Matching Contributions to the
                           extent taken into account under the terms of the Plan
                           in determining the Actual Deferral Percentage
                           (Qualified Nonelective Contributions and Qualified
                           Matching Contributions). Qualified Nonelective
                           Contributions and Qualified Matching Contributions
                           under this Plan, or any other plan of the Employer,
                           shall be taken into account as provided in Treasury
                           Regulations to the extent needed to meet the Actual
                           Deferral Percentage test, below. Such contributions
                           shall satisfy the requirements of the Full Vesting
                           article, below, and the distribution restrictions
                           contained in the Commencement Of Payment Of Benefits
                           article, below, when they are contributed to the
                           Plan.

                  5.       Elective Deferrals.
                           ------------------

                           "Elective Deferrals" means with respect to any
                           taxable year, the sum of:

                           a.       Any Employer contribution under a qualified
                                    cash or deferral arrangement (as defined in
                                    Code section401(k)) to the extent not
                                    includable in gross income for the taxable
                                    year under Code section402(e)(3) (determined
                                    without regard to Code section402(g)(3)(A))
                                    excluding Catch-Up Contributions;

                           b.       Any Employer contribution to the extent not
                                    includable in gross income for the taxable
                                    year under Code section402(h)(1)(B)
                                    (determined without regard to Code section
                                    402(g)(3));

                                      -36-
<PAGE>

                           c.       Any Employer contribution to any plan as
                                    described under Code section 501(c)(18); and

                           d.       Any Employer contribution to purchase an
                                    annuity contract under Code section 403(b)
                                    under a salary reduction agreement (within
                                    the meaning of Code section 3121(a)(5)(D)).

                  6.       Excess Contributions.
                           --------------------

                           "Excess Contributions" means, with respect to any
                           Plan Year, the excess of:

                           a.       The aggregate amount of Employer
                                    contributions actually taken into account in
                                    computing the Actual Deferral Percentage of
                                    Highly Compensated Employees for such Plan
                                    Year, over

                           b.       The maximum amount of such contributions
                                    permitted by the Actual Deferral Percentage
                                    test (determined by reducing contributions
                                    made on behalf of Highly Compensated
                                    Employees in order of the Actual Deferral
                                    Percentages, beginning with the highest of
                                    such percentages in the manner provided in
                                    the Treasury Regulations).

         B.       Actual Deferral Percentage Test.
                  -------------------------------

                  1.       The Actual Deferral Percentage for eligible Highly
                           Compensated Employees for such Plan Year shall not
                           exceed the greater of:

                           a.       One hundred twenty-five percent (125%) of
                                    the Actual Deferral Percentage for all
                                    Nonhighly Compensated Employees for the
                                    current Plan Year; or

                           b.       The lesser of:

                                    (1)      Two hundred percent (200%) of the
                                             Actual Deferral Percentage for all
                                             Nonhighly Compensated Employees for
                                             the current Plan Year; or

                                      -37-
<PAGE>

                                    (2)      The Actual Deferral Percentage for
                                             all Nonhighly Compensated Employees
                                             for the current Plan Year plus two
                                             percent (2%).

                  2.       This Plan is using the current year testing method
                           for purposes of the Actual Deferral Percentage Test.

                  3.       In the event that this Plan satisfies the
                           requirements of Code section 401(a)(4), 401(k) or
                           410(b) only if aggregated with one (1) or more other
                           plans, or if one (1) or more other plans satisfy the
                           requirements of Code section 410(b) only if
                           aggregated with this Plan, then the Actual Deferral
                           Percentage test shall be applied by determining the
                           Actual Deferral Percentages of the Employees as if
                           all such plans were a single plan.

                  4.       The Actual Deferral Percentage for any Participant
                           who is a Highly Compensated Employee for the Plan
                           Year and who is eligible to have Elective Deferrals
                           or Qualified Elective Contributions allocated to such
                           Participant's accounts under two (2) or more plans or
                           arrangements described in Code section 401(k) that
                           are maintained by the Employer or an Affiliated
                           Employer shall be determined as if all such Elective
                           Deferrals (and, if applicable, such Qualified
                           Elective Contributions) were made under a single
                           arrangement. If a Highly Compensated Employee
                           participates in two (2) or more cash or deferred
                           arrangements that have different plan years, all cash
                           or deferred arrangements ending with or within the
                           same calendar year shall be treated as a single
                           arrangement.

                  5.       For purposes of the Actual Deferral Percentage test,
                           Elective Deferrals and Qualified Elective
                           Contributions must be made before the last day of the
                           twelve (12) month period immediately following the
                           Plan Year to which contributions relate. The Employer
                           shall maintain records sufficient to demonstrate
                           satisfaction of the Actual Deferral Percentage test
                           and the amount of Qualified Elective Contributions
                           used in such test.

                  6.       The determination and treatment of the Elective
                           Deferrals, Qualified Elective Contributions and
                           Actual Deferral Percentage of any Participant shall
                           satisfy such other

                                      -38-
<PAGE>

                           requirements as may be prescribed by the Secretary of
                           the Treasury, including, but not limited to, the
                           requirement that the amount of the Nonelective
                           Contributions, including the Qualified Nonelective
                           Contributions, satisfies Code section401(a)(4), and
                           the requirement that the amount of the Nonelective
                           Contributions, excluding the Qualified Nonelective
                           Contributions and those Nonelective Contributions
                           treated as Matching Contributions for purposes of the
                           Actual Contribution Percentage test, below, satisfies
                           Code section 401(a)(4).

         C.       Adjustment For Excessive Allocations.
                  ------------------------------------

                  In the event that the initial allocations of the Employer's
                  contributions made pursuant to the Employer
                  Contributions-Elective Contributions article does not satisfy
                  one of the Actual Deferral Percentage tests, then the
                  Employer's Contributions shall be adjusted pursuant to the
                  options set forth below:

                  1.       Each Highly Compensated Employee, beginning with the
                           Participant with the largest amount of Elective
                           Contributions, shall have such Participant's portion
                           of the Excess Contributions (and any earnings
                           attributable to such excess) distributed to such
                           Participant until one of the Actual Deferral
                           Percentage tests is satisfied in the manner provided
                           in the Treasury Regulations. Excess Contributions
                           that are to be distributed shall be distributed on or
                           before the fifteenth day of the third month following
                           the end of each Plan Year if administratively
                           feasible, but in no event later than the close of the
                           following Plan Year.

                  2.       The amount of Excess Contributions to be distributed
                           under this paragraph shall be reduced by any Excess
                           Elective Deferral, below, previously distributed to
                           the Participant for the Participant's taxable year
                           ending with or within the Plan Year.

                  3.       Elective Contributions reduced under this paragraph
                           shall not be eligible for Employer Matching
                           Contributions.

                           Excess Contributions shall be treated as Annual
                           Additions under the Plan.

                                      -39-
<PAGE>

                  4.       Excess Contributions that are distributed to the
                           Participant shall be adjusted for any income or loss.
                           The income or loss allocable to Excess Contributions
                           is calculated as follows:

                           a.       Income or loss allocable to the
                                    Participant's Elective Account (and, if
                                    applicable, the Qualified Nonelective
                                    Account or the Qualified Matching Account or
                                    both) for the Plan Year multiplied by a
                                    fraction, the numerator of which is such
                                    Participant's Excess Contributions for the
                                    Plan Year and the denominator of which is
                                    the Participant's Account balance(s)
                                    attributable to Elective Deferrals (and
                                    Qualified Elective Contributions if any of
                                    such contributions are included in the
                                    Actual Deferral Percentage test) as of the
                                    beginning of such Plan Year; and

                           b.       Income or loss allocable to the period
                                    between the end of the Plan Year and the
                                    date of distribution shall be disregarded in
                                    determining income or loss.

                  5.       Excess Contributions shall be distributed from the
                           Participant's Elective Account and Qualified Matching
                           Account (if applicable) in proportion to the
                           Participant's Elective Deferrals and Qualified
                           Matching Contributions (to the extent used in the
                           Actual Deferral Percentage test) for the Plan Year.
                           Excess Contributions shall be distributed from the
                           Participant's Qualified Nonelective Account only to
                           the extent that such Excess Contributions exceed the
                           balance in the Participant's Elective Account and
                           Qualified Matching Account.

                  6.       A portion of the Nonelective Contributions or
                           Matching Contributions shall be deemed a Qualified
                           Nonelective Contribution or a Qualified Matching
                           Contribution and shall be reallocated to the Accounts
                           of those Nonhighly Compensated Employees whose
                           Compensation tests in ascending order from the lowest
                           testing Compensation to the testing Compensation
                           needed to pass the Actual Deferral Percentage test in
                           the amounts necessary to satisfy the Actual Deferral
                           Percentage test.

                                      -40-
<PAGE>

6.06.    Maximum Amount Of Elective Deferrals.
         ------------------------------------

         No Employee shall be permitted to have Elective Deferrals during any
         calendar year in excess of twelve thousand dollars ($12,000) or such
         larger amount as provided by the Secretary of the Treasury. All
         Employees who are eligible to make Elective Deferrals under this Plan
         and who have attained age fifty (50) before the close of the Plan Year
         shall be eligible to make Catch-Up Contributions in accordance with,
         and subject to the limitations of, Code section 414(v). Such Catch-Up
         Contributions shall not be taken into account for purposes of the
         provisions of the Plan implementing the required limitations of Code
         sections 402(g) and 415. The Plan shall not be treated as failing to
         satisfy the provisions of the plan implementing the requirements of
         Plan Code sections 401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416,
         as applicable, by reason of the making of such Catch-Up Contributions.
         If an Employee's Elective Deferrals for a year would be more than the
         amount permitted (Excess Elective Deferral), the following shall apply:

         A.       Any direction for such Excess Elective Deferral shall be
                  invalid and the directed deferral shall not be made.

         B.       A Participant may withdraw all or part of any Excess Elective
                  Deferral by notice in accordance with rules established by the
                  Plan Administrator. A Participant's withdrawal shall be
                  reduced by the amount of any Excess Contributions previously
                  distributed.

         C.       If an Excess Elective Deferral occurs because of combined
                  Elective Deferrals under this Plan and another plan, the
                  Participant may withdraw the excess only if the following
                  conditions are satisfied:

                  1.       The Participant notifies the Plan Administrator of
                           the Excess Elective Deferral by March 1 following the
                           close of the year, unless the Plan Administrator
                           waives the deadline.

                  2.       The notice specifies how much of the Excess Elective
                           Deferral is to be withdrawn from this Plan.

                  3.       Other applicable rules of the Plan Administrator are
                           followed.

         D.       A Participant may assign to this Plan any Excess Elective
                  Deferrals made during a taxable year of the Participant by
                  notifying

                                      -41-
<PAGE>

                  the Plan Administrator on or before March 1 following the
                  close of the year, unless the Plan Administrator waived the
                  deadline, of the amount of the Excess Elective Deferrals to be
                  assigned to the Plan.

         E.       Notwithstanding any other provision of the Plan, Excess
                  Elective Deferrals, plus any income and minus any also
                  allocable thereto, shall be distributed no later than April 15
                  to any Participant to whose account Excess Elective Deferrals
                  were assigned for the preceding year and who claims Excess
                  Elective Deferrals for such taxable year.

         F.       Excess Elective Deferrals shall be treated as Employer
                  contributions for all purposes under the Code; provided,
                  however, that:

                  1.       Excess Elective Deferrals of Nonhighly Compensated
                           Employees shall not be taken into account under the
                           Actual Deferral Percentage test; and

                  2.       Excess Elective Deferrals shall not be treated as
                           Annual Additions under the Plan to the extent
                           distributed in accordance with this paragraph.

         G.       The amount of Excess Elective Deferrals that may be
                  distributed with respect to a Participant for a taxable year
                  shall be reduced by any Excess Contributions, above,
                  previously distributed to the Participant for the Plan Year
                  beginning with or within the taxable year.

         H.       Excess Elective Deferrals that are distributed to the
                  Participant shall be adjusted for the income allocable to the
                  Excess Elective Deferrals, which shall be the sum of the
                  allocable gain or loss for the taxable year of the
                  Participant. The income allocable to Excess Elective Deferrals
                  is calculated as follows:

                  1.       The income for the taxable year allocable to the
                           Participant's Elective Account multiplied by a
                           fraction, the numerator of which is such
                           Participant's Excess Elective Deferrals for the
                           taxable year and the denominator of which is the sum
                           of the Participant's account balance attributable to
                           Elective Deferrals as of the beginning of the taxable
                           year plus the Participant's Elective Deferrals for
                           the taxable year; and

                                      -42-
<PAGE>

                  2.       Income or loss allocable to the period between the
                           end of the Plan Year and the date of distribution
                           shall be disregarded in determining income or loss.

6.07.    Nondiscrimination Test For Matching Contributions.
         -------------------------------------------------

         A.       Special Definitions.
                  -------------------

                  For purposes of this paragraph, the following definitions
                  shall apply:

                  1.       Actual Contribution Percentage.
                           ------------------------------

                           "Actual Contribution Percentage" means the average
                           (expressed as a percentage) of the Contribution
                           Percentages of the Participants in a group.

                  2.       Contribution Percentage
                           -----------------------

                           "Contribution Percentage" means the ratio (expressed
                           as a percentage) of the sum of the Participant's
                           Contribution Percentage Amounts to the Participant's
                           Compensation for the Plan Year (whether or not the
                           Employee was a Participant for the entire Plan Year).

                  3.       Contribution Percentage Amounts.
                           -------------------------------

                           "Contribution Percentage Amounts" means the Employer
                           Matching Contributions (to the extent taken into
                           account for purposes of the Actual Contribution
                           Percentage test) made under the Plan on behalf of the
                           Participant for the Plan Year. Such Contribution
                           Percentage Amounts shall include forfeitures of
                           Excess Aggregate Contributions or Matching
                           Contributions allocated to the Participant's Account
                           which shall be taken into account in the year in
                           which such forfeitures are allocated. The Employer
                           shall include Qualified Matching and Nonelective
                           Contributions in the Contribution Percentage Amounts
                           and Elective Deferrals in the Contribution Percentage
                           Amounts so long as the Actual Deferral Percentage
                           test is met before the Elective Deferrals are used in
                           the Actual Contribution Percentage test and continues
                           to be met following the exclusion of those Elective
                           Deferrals that are used to meet the Actual
                           Contribution Percentage test. The amount of such

                                      -43-
<PAGE>

                           Qualified Matching and Nonelective Contributions and
                           Elective Deferrals so used shall be such amounts as
                           are needed to meet the Actual Contribution Percentage
                           test.

                  4.       Excess Aggregate Contributions.
                           ------------------------------

                           "Excess Aggregate Contributions" means with respect
                           to any Plan Year, the excess of:

                           a.       The aggregate amount of the Matching
                                    Contributions and Excess Contributions made
                                    on behalf of the Highly Compensated Employee
                                    group for such Plan Year, over.

                           b.       The maximum amount of such contributions
                                    permitted under the Actual Contribution
                                    Percentage test.

                           The amount of Excess Aggregate Contributions with
                           respect to any Plan Year shall be determined after
                           first determining and correcting the Excess
                           Contributions in accordance with the Maximum Amount
                           Of Elective Deferrals article and the Adjustment For
                           Excessive Allocations article.

         B.       Actual Contribution Percentage Test.
                  -----------------------------------

                  1.       The Actual Contribution Percentage for eligible
                           Highly Compensated Employees for such Plan Year shall
                           not exceed the greater of:

                           a.       One hundred twenty-five percent (125%) of
                                    the Actual Contribution Percentage for all
                                    other eligible Employees for the current
                                    Plan Year; or

                           b.       The lesser of:

                                    (1)      Two hundred percent (200%) of the
                                             Actual Contribution Percentage for
                                             all other eligible Employees for
                                             the current Plan Year; or

                                    (2)      The Actual Contribution Percentage
                                             for all other eligible Employees
                                             for the current Plan Year plus two
                                             percent (2%).

                                      -44-
<PAGE>

                  2.       This Plan is using the current year testing method
                           for purposes of the Average Contribution Percentage
                           Test.

                  3.       The Actual Contribution Percentage of the Highly
                           Compensated Employees will be reduced (beginning with
                           such Highly Compensated Employee whose Actual
                           Contribution Percentage is the highest) so that the
                           limit is not exceeded. The amount by which each
                           Highly Compensated Employee's Contribution Percentage
                           Amounts is reduced shall be treated as an Excess
                           Aggregate Contribution.

                  4.       In the event that this Plan satisfies the
                           requirements of Code section 401(a)(4), 401(m) or
                           410(b), only if aggregated with one (1) or more other
                           plans, of if one or more other plans satisfy the
                           requirements of Code section410(b) only if aggregated
                           with this Plan, then the Actual Contribution
                           Percentage test shall be applied by determining the
                           Contribution Percentages of the Employees as if all
                           such plans were a single plan. Plans may be
                           aggregated in order to satisfy Code section 401(m)
                           only if they have the same Plan Year.

                  5.       The Contribution Percentage for any Highly
                           Compensated Employee for the Plan Year who is
                           eligible to receive Matching Contributions, Qualified
                           Matching Contributions or Qualified Nonelective
                           Contributions, or Elective Deferrals allocated to
                           such Participant's account under two (2) or more
                           plans described in Code section401(a) or arrangements
                           described in Code section401(k)) that are maintained
                           by the Employer or an Affiliated Employer shall be
                           determined as if all such contributions and Elective
                           Deferrals were made under a single plan. If a Highly
                           Compensated Employee participates in two (2) or more
                           cash or deferred arrangements that have different
                           plan years, all cash or deferred arrangements ending
                           with or within the same calendar year shall be
                           treated as a single arrangement.

                  6.       For purposes of the Actual Contribution Percentage
                           test, Matching Contributions, Qualified Matching
                           Contributions and Qualified Nonelective Contributions
                           will be considered made for a Plan Year if made no
                           later than the end of the twelve (12) month period
                           beginning on the day after the

                                      -45-
<PAGE>

                           close of the Plan Year. The Employer shall maintain
                           records sufficient to demonstrate satisfaction of the
                           Actual Contribution Percentage test and the amount of
                           Qualified Nonelective Contributions and Qualified
                           Matching Contributions used in such test.

                  7.       The determination and treatment of the Contribution
                           Percentage of any Participant shall satisfy such
                           other requirements as may be prescribed by the
                           Secretary of the Treasury.

         C.       Adjustment For Excessive Contribution Percentage.
                  ------------------------------------------------

                  1.       In the event that the Plan shall fail to satisfy the
                           Actual Contribution Percentage test in any Plan Year,
                           then the Plan Administrator shall direct the Trustee
                           to distribute the amount of the Excess Aggregate
                           Contributions, plus any income and minus any loss
                           allocable thereto, to the Highly Compensated Employee
                           group or, if the amount is forfeitable, forfeit such
                           Excess Aggregate Contributions. Such distribution or
                           forfeiture shall be made on behalf of the Highly
                           Compensated Employee group in order of their
                           Contribution Percentages beginning with the highest
                           of such percentages in the manner provided in the
                           Treasury Regulations. Forfeitures of Excess Aggregate
                           Contributions shall be allocated after all other
                           forfeitures under the Plan in the same manner as
                           designated in the Forfeitures article. However, no
                           such forfeiture shall be allocated to a Highly
                           Compensated Employee whose contributions are reduced
                           pursuant to this paragraph. Excess Aggregate
                           Contributions shall be distributed or forfeited on or
                           before the fifteenth day of the third month following
                           the end of the Plan Year if administratively
                           feasible, but in no event later than the close of the
                           following Plan Year.

                  2.       Notwithstanding any other provision of this Plan,
                           Excess Aggregate Contributions, plus any income and
                           minus any loss allocable thereto, shall be forfeited,
                           or if not forfeitable, distributed, no later than the
                           last day of each Plan Year to Participants to whose
                           accounts such Excess Aggregate Contributions were
                           allocated for the preceding Plan Year.

                                      -46-
<PAGE>

                  3.       Excess Aggregate Contributions shall be treated as
                           Annual Additions under the Plan.

                  4.       Excess Aggregate Contributions shall be adjusted for
                           any income or loss up to the date of distribution.
                           The income or loss allocable to Excess Aggregate
                           Contributions is calculated as follows:

                           a.       Income or loss allocable to the
                                    Participant's Matching Account (if any, and
                                    if all amounts therein are not used in the
                                    Actual Deferral Percentage test) and, if
                                    applicable, Qualified Nonelective Account
                                    and Elective Account for the Plan Year
                                    multiplied by a fraction, the numerator of
                                    which is such Participant's Excess Aggregate
                                    Contributions for the Plan Year and the
                                    denominator of which is the Participant's
                                    account balance(s) attributable to
                                    Contribution Percentage Amounts as of the
                                    beginning of such Plan Year; and

                           b.       Income or loss allocable to the period
                                    between the end of the Plan Year and the
                                    date of distribution should be disregarded
                                    in determining income or loss.

                  5.       Forfeitures of Excess Aggregate contributions shall
                           be reallocated to the accounts of Nonhighly
                           Compensated Employees.

                  6.       Excess Aggregate Contributions shall be forfeited, if
                           forfeitable, or distributed on a pro rata basis from
                           the Participants Matching Account, and Qualified
                           Matching Account (and, if applicable, the
                           Participants Qualified Nonelective Account, or both).

                       ARTICLE 7. VESTING AND FORFEITURES

7.01.    Full Vesting.
         ------------

         A.       A Participant shall become one hundred percent (100%) Vested
                  in the full amount credited to the Participant's Nonelective
                  Account and Matching Account when the Participant attains
                  Normal

                                      -47-
<PAGE>

                  Retirement Age, or terminates employment with the Employer by
                  reason of death.

         B.       A Participant shall be fully Vested at all times in the
                  Participant's Elective Account, Qualified Matching
                  Contributions and Qualified Nonelective Contributions that are
                  treated as Elective Contributions, Catch-Up Account and
                  Rollover Account.

7.02.    Partial Vesting-Matching and Nonelective Accounts.
         -------------------------------------------------

         Prior to the time that a Participants' Matching Account and
         Nonelectiive Account become one hundred percent (100%) vested pursuant
         to the Full Vesting article above, the Participants' Matching Accounts
         and Nonelective Accounts shall become Vested as follows:

                    ---------------------------------------
                    |                                     |
                    |    Years of                Percent  |
                    |    Service                  Vested  |
                    |-------------------------------------|
                    |      0                        0%    |
                    |-------------------------------------|
                    |      1                       25%    |
                    |-------------------------------------|
                    |      2                       50%    |
                    |-------------------------------------|
                    |      3                       75%    |
                    |-------------------------------------|
                    |      4                      100%    |
                    ---------------------------------------

7.03.    Years Of Service.
         ----------------

         A.       An Employee shall be credited with Years Of Service as
                  follows:

                  1.       An Employee shall be credited with one (1) Year of
                           Service for each Vesting Computation Period in which
                           an Employee performs one thousand (1,000) Hours of
                           Service.

                  2.       An Employee who is absent from work for maternity or
                           paternity leave reasons shall be credited for
                           purposes of this article with Service as described in
                           the Service article from the date she was first
                           absent from work to the earlier of the anniversary of
                           that date or the date she again performs an Hour of
                           Service for the Company.

                  3.       If an Employee's Service terminates prior to his
                           earning any vested percentage, once the Participant
                           has incurred five (5) consecutive one (1) year Breaks
                           in Service, his Service

                                      -48-
<PAGE>

                           prior to such termination shall be disregarded for
                           vesting purposes in the event of a renewal of
                           Service.

                  4.       In the case of an Employee who incurs a one (1) year
                           Break in Service followed by a renewal of Service,
                           Service prior to the one (1) year Break in Service
                           shall be excluded for purposes of vesting in the
                           Account established after Service has been renewed
                           until he has completed one (1) Year of Service
                           subsequent to his renewal of Service.

                  5.       In the case of an Employee who has five (5)
                           consecutive one (1) year Breaks in Service followed
                           by a renewal of Service, all Years of Service after
                           such break in Service shall be disregarded for
                           purposes of determining the vested percentage of the
                           Participant's Company Account attributable to
                           allocations made for Fiscal Years prior to such break
                           in Service.

                  6.       Only Employees who were employees of Yolo Community
                           Bank as of August 31, 2004, prior to the merger of
                           Yolo Community Bank into the new Yolo Community Bank,
                           a wholly-owned subsidiary of North Valley Bancorp,
                           shall have Service with Yolo Community Bank prior to
                           September1, 2004 count for determining Years of
                           Service for vesting purposes under the Plan.

                  7.       All Employees who participated in the Six Rivers Plan
                           on the day before the October 12, 2000 acquisition of
                           Six Rivers National Bank by North Valley Bancorp
                           shall have service with Six Rivers National Bank
                           prior to October 12, 2000 count for vesting purposes
                           under the Plan.

7.04.    Forfeitures.
         -----------

         A.       Vested Percentage.
                  -----------------

                  The Participant's Vested percentage in the Participant's
                  Nonelective Account and Matching Account shall be determined
                  by the Participant's place on the vesting schedule at the date
                  of the Participant's Severance From Employment.

                                      -49-
<PAGE>

         B.       Time Of Forfeiture.
                  ------------------

                  The forfeiture of that portion of a Participant's Nonelective
                  Account and Matching Account in which the Participant is not
                  Vested shall occur as of the last day of the Plan Year
                  following, or coincident with, the earlier of:

                  1.       The distribution of the entire Vested portion of the
                           Participant's Nonelective Account and Matching
                           Account; or

                  2.       The last day of the Plan Year in which the
                           Participant incurs five (5) consecutive one (1) year
                           Periods Of Severance.

                  If the Participant had no Vested right to any portion of the
                  Participant's Account at the time of the Participant's
                  Severance From Employment, the preceding sentence shall apply
                  as if a distribution of the Participant's Nonelective Account
                  and Matching Account occurred on the date of the Participant's
                  Severance From Employment. If the Participant has been
                  reemployed prior to the time of reallocation, no forfeiture
                  shall occur and all Periods of Service prior to the Periods Of
                  Severance shall count on the vesting schedule.

         C.       Allocation Of Forfeitures.
                  -------------------------

                  Amounts which are forfeited shall be applied pursuant to the
                  Application of Forfeitures article, above.

7.05.    Effect of Certain Distributions.
         -------------------------------

         A.       For purposes of determining a Participant's Vested interest in
                  the Participant's Account derived from Employer contributions
                  attributable to years prior to the distribution hereinafter
                  described, Periods of Service shall not include service with
                  respect to which the Participant has received, or is deemed to
                  have received, distribution of the Participant's entire Vested
                  Account, made on account of the Participant's Severance From
                  Employment, in an amount not in excess of or in any amount
                  which the Participant elected to receive. If such a
                  Participant did not have a Vested right to all of the
                  Participant's Account and is later reemployed by the Employer
                  before the close of the first period of five (5) consecutive
                  one (1) year Periods Of Severance commencing after the
                  Participant's Severance From Employment, the Participant's

                                      -50-
<PAGE>

                  forfeited Account shall be reinstated, unadjusted by any gains
                  or losses occurring subsequent to the Valuation Date or other
                  valuation date preceding the Participant's Severance From
                  Employment providing the Participant repays the amount that
                  was previously distributed to him (without interest) within
                  five (5) years after reemployment. The source for such
                  reinstatement shall first be any forfeitures occurring during
                  the year. If such source is insufficient, then the Employer
                  shall contribute an amount which is sufficient to restore any
                  such forfeited Accounts; provided, however, that if a
                  discretionary contribution is made for such year pursuant to
                  the Employer Contributions-Nonelective Contributions article
                  above, such contribution shall first be applied to restore any
                  such Accounts and the remainder shall be allocated in
                  accordance with the Allocation Of Employer Nonelective
                  Contributions article above.

         B.       For purposes of this Effect of Certain Distributions article,
                  if the value of a terminated Participant's Vested portion of
                  the Account is zero (0), the terminated Participant shall be
                  deemed to have received a distribution of such Vested portion
                  of the Account upon Severance From Employment.

7.06.    Amendments to Vesting Schedule.
         ------------------------------

         A.       Amendment.
                  ---------

                  If the Plan's vesting schedule set forth in the Partial
                  Vesting article, above, is amended or if the Plan is amended
                  in any way that directly or indirectly affects the computation
                  of a Participant's nonforfeitable percentage, or if the Plan
                  is deemed amended by an automatic change to or from a Top
                  Heavy vesting schedule, each Participant with at least three
                  (3) Periods of Service with the Employer may elect within a
                  reasonable period (known as the Election Period, and described
                  in the Election Period article, below) after the adoption of
                  the amendment or change, to have such Participant's
                  nonforfeitable percentage computed under the Plan without
                  regard to such amendment or change.

         B.       Election Period.
                  ---------------

                  The election period shall begin when the Plan amendment is
                  adopted, and end on the latest of the following dates:

                                      -51-
<PAGE>

                  1.       The date which is sixty (60) days after the date on
                           which the Plan amendment is adopted;

                  2.       The date which is sixty (60) days after the Plan
                           amendment becomes effective; or

                  3.       The date which is sixty (60) days after the day on
                           which the Participant is issued written notice of the
                           Plan amendment by the Employer or Plan Administrator.

         C.       Service Requirements.
                  --------------------

                  A Participant shall be considered to have completed five (5)
                  Periods of Service if the Participant has completed three (3)
                  Periods of Service prior to the expiration of the election
                  period.

         D.       Election Only by Participant.
                  ----------------------------

                  The election is available only to an individual who is a
                  Participant in the Plan at the time the election is made.

         E.       Irrevocable Election.
                  --------------------

                  Such election shall be irrevocable.

         F.       No Effect on Vested Rights.
                  --------------------------

                  Such amendment shall not reduce the Vested percentage of a
                  Participant's Account under the preamendment vesting schedule
                  as of the later of the date on which such amendment is adopted
                  or the effective date of such amendment.

7.07.    No Divestment for Cause.
         -----------------------

         Except as hereafter provided in the Lost Beneficiary article, below,
         this Plan does not permit divestment for cause. No Vested benefit
         provided hereunder to a Participant or Beneficiary shall be forfeited
         or divested for any reason or cause whatsoever, including withdrawal of
         a Participant's contributions or earnings thereon.

7.08.    Lost Beneficiary.
         ----------------

         If, according to the records of the Plan, a Participant or Beneficiary
         has reached Normal Retirement Age and has not made a claim for
         benefits,

                                      -52-
<PAGE>

         the Participant's or Beneficiary's Vested Account balance shall be held
         until the end of the Plan Year after the Participant's Normal
         Retirement Age, at which time it shall be forfeited pursuant to the
         provisions of the Forfeitures article, above; provided, however, that
         if a claim is later made by the Participant or Beneficiary for the
         forfeited benefit, the Employer will reinstate the amount of the Vested
         Account balance that had been forfeited, unadjusted by any gains or
         losses attributable to such amount.

                          ARTICLE 8. PARTICIPANT LOANS

8.01.    Participant Loans.
         -----------------

         A.       Authorization for Participant Loans; Participant Loan Rules.
                  -----------------------------------------------------------

                  Loans to Participants shall only be permitted pursuant to the
                  terms and conditions set forth in this article and any other
                  nondiscriminatory rules established by the Plan Administrator.
                  All loan limits are determined as of the date the Trustee
                  reserves funds for the loan. The funds will be disbursed to
                  the Participant as soon as is administratively feasible after
                  all required documents have been completed and a sufficient
                  portion of the Participant's Account has been liquidated, if
                  necessary.

         B.       Loan Funding Limits.
                  -------------------

                  The loan amount must meet the following limits:

                  1.       Plan Minimum Limit.
                           ------------------

                           The minimum amount for any loan is one thousand
                           dollars ($1,000).

                  2.       Legal Maximum Limit.
                           -------------------

                           The maximum a Participant may borrow, including the
                           outstanding balance of existing loans, is based upon
                           such Participant's Vested interest in this Plan and
                           all other qualified plans maintained by an Affiliated
                           Employer (the "Vested Interest"). The maximum amount
                           is equal to fifty percent (50%) of Vested Interest,
                           not to exceed fifty thousand dollars ($50,000).
                           However, the fifty thousand dollar ($50,000) amount
                           is reduced by the Participant's highest outstanding
                           balance of all loans from any Affiliated Employer's
                           qualified plans during the twelve (12) month

                                      -53-
<PAGE>

                           period ending on the date before the date on which
                           the loan is made.

                  3.       Source of Loan Funding.
                           ----------------------

                           A loan to a Participant shall be made solely from the
                           assets of such Participant's own Account(s) and all
                           interest paid shall be credited to said Account.

                  4.       Interest Rate.
                           -------------

                           The interest rate charged on Participant loans shall
                           be the Prime rate plus one percent (1%).

                  5.       Repayment.
                           ---------

                           Substantially level amortization shall be required of
                           each loan with payments made at least monthly,
                           through payroll deduction, provided that payment can
                           be made by check for advance loan payments, or when a
                           Participant is on a leave of absence or transferred
                           to the employ of an Affiliated Employer which is not
                           participating in the Plan. Loans may be prepaid in
                           full or in part at any time. The loan repayment
                           period shall be as mutually agreed upon by the
                           Participant and the Plan Administrator, not to exceed
                           five (5) years. However, the term may be for any
                           period not to exceed fifteen (15) years if the
                           purpose of the loan is to acquire the Participant's
                           principal residence.

                  6.       Loan Application, Note and Security.
                           -----------------------------------

                           A Participant shall apply for any loan in accordance
                           with the procedures established by the Plan
                           Administrator. The Plan Administrator shall
                           administer Participant loans and shall specify the
                           time frame for approving loan applications. All loans
                           shall be evidenced by a promissory note and secured
                           only by a Participant's Account balance. The Plan
                           shall have a lien on fifty percent (50%) of a
                           Participant's Account to the extent of any
                           outstanding loan balance.

                                      -54-
<PAGE>

                  7.       Default, Suspension and Call Feature.
                           ------------------------------------

                           a.       Default.
                                    -------

                                    A loan is treated as a default if any
                                    scheduled loan payment is not made by the
                                    end of the calendar quarter following the
                                    due date for such payment, provided that the
                                    Administrator may agree to a suspension of
                                    loan payments for up to twelve (12) months
                                    for a Participant who is on a leave of
                                    absence. A Participant shall then have
                                    thirty (30) days from the time such
                                    Participant receives written notice of the
                                    default and a demand for past due amounts to
                                    cure the default before it becomes final.

                           b.       Actions Upon Default.
                                    --------------------

                                    In the event of default, the Plan
                                    Administrator may direct the Trustee to
                                    execute upon its security interest in the
                                    Participant's Account by deducting the
                                    unpaid loan balance from the Account,
                                    including interest to the date of default
                                    and report the default as a taxable
                                    distribution. As soon as a Plan withdrawal
                                    or distribution to such Participant would
                                    otherwise be permitted, the Administrator
                                    may instruct the Trustee to distribute the
                                    note to the Participant.

                           c.       Call Feature.
                                    ------------

                                    The Plan Administrator shall have the right
                                    to call any Participant loan once employment
                                    with the Employer terminates.

                                      -55-
<PAGE>

                        ARTICLE 9. TOP HEAVY PLAN RULES

9.01.    Special Definitions.
         -------------------

         For purposes of this article, the following definitions shall apply:

         A.       Aggregation Group.
                  -----------------

                  "Aggregation Group" means either a Required Aggregation Group
                  or a Permissive Aggregation Group.

                  1.       "Required Aggregation Group" means each qualified
                           plan of the Employer in which at least one (1) Key
                           Employee is a participant, in the Plan Year
                           containing the Determination Date and each other plan
                           of the Employer which enables any plan of the
                           Employer in which a Key Employee is a participant to
                           meet the requirements of Code section401(a)(4) or
                           410. A terminated qualified plan shall be aggregated
                           with other plans of the Employer if the terminated
                           plan was maintained within the last five (5) years
                           ending on the Determination Date and would, but for
                           the fact that it terminated, be part of a Required
                           Aggregation Group.

                  2.       "Permissive Aggregation Group" means the Required
                           Aggregation Group and any plan of the Employer which
                           is not in the Required Aggregation Group but which
                           the Employer elects as included in the Required
                           Aggregation Group; provided, however, that the
                           resulting group, taken as a whole, would continue to
                           meet the requirements of Code section401(a)(4) and
                           410.

         B.       Determination Date.
                  ------------------

                  "Determination Date" means, with respect to any Plan Year, the
                  last day of the preceding Plan Year, or, in the case of the
                  first Plan Year, the last day of such Plan Year.

         C.       Key Employee.
                  ------------

                  Key Employee means any Employee or former Employee (including
                  any deceased Employee) who at any time during the Plan Year
                  that includes the Determination Date was an officer of

                                      -56-
<PAGE>

                  the Employer having annual Compensation greater than one
                  hundred and thirty thousand dollars ($130,000) (as adjusted
                  under Code section416(i)(1)), a five (5%) percent owner of the
                  Employer, or a one percent (1%) owner of the Employer having
                  Annual Compensation of more than one hundred and fifty
                  thousand dollars ($150,000). For this purpose, annual
                  compensation means compensation within the meaning of Code
                  section 415(c)(3). The determination of who is a Key Employee
                  will be made in accordance with Code section416(i)(1) and the
                  applicable regulations and other guidance of general
                  applicability issued thereunder.

         D.       Nonkey Employee.
                  ---------------

                  "Nonkey Employee" means any Employee or former Employee (and
                  the Employee's Beneficiaries) who is not a Key Employee.

         E.       Top Heavy Group.
                  ---------------

                  "Top Heavy Group" means any Aggregation Group if, as of the
                  Determination Date, the sum of:

                  1.       The present value of Accounts of the Key Employees
                           under all defined benefit plans included in the
                           group, and

                  2.       The accounts of the Key Employees under all defined
                           contribution plans included in the group,

                  exceeds sixty percent (60%) of a similar sum determined for
                  all Employees.

         F.       Top Heavy Plan Year.
                  -------------------

                  "Top Heavy Plan Year" means a Plan Year for which the Plan is
                  determined to be top heavy.

         G.       Total Compensation.
                  ------------------

                  "Total Compensation" means "Total Compensation" as defined in
                  the Total Compensation paragraph under the Limitation On
                  Contributions And Benefits article, above.

                                      -57-
<PAGE>

 9.02.   Determination Of Top Heavy Status.
         ---------------------------------

         A determination shall be made each Plan Year as to whether the Plan is
         a "Top Heavy Plan" for such Plan Year as follows:

         A.       The Plan shall be a Top Heavy Plan for any Plan Year if, as of
                  the Determination Date, the present value of Accounts or the
                  sum of the accounts of the Key Employees under this Plan and
                  any plan of an Aggregation Group, exceeds sixty percent (60%)
                  of:

                  1.       The present value of Accounts, or

                  2.       The sum of the accounts of all Employees,

                  under this Plan and any Plan of an Aggregation Group.

         B.       Notwithstanding the preceding subparagraph, in the case of a
                  Required Aggregation Group, each plan in the group will be
                  considered a Top Heavy Plan if the Required Aggregation Group
                  is a Top Heavy Group; no plan in the group will be considered
                  a Top Heavy Plan if the Required Aggregation Group is not a
                  Top Heavy Group.

         C.       Notwithstanding the preceding subparagraphs, in the case of a
                  Permissive Aggregation Group, only a plan that is part of the
                  Required Aggregation Group will be considered a Top Heavy Plan
                  if the Permissive Aggregation Group is a Top Heavy Group; no
                  plan in the Permissive Aggregation Group will be considered a
                  Top Heavy Plan if the Permissive Aggregation Group is not a
                  Top Heavy Group.

9.03.    Benefits Taken Into Account.
         ---------------------------

         For purposes of determining Accounts under this article:

         A.       Plan distributions made within the Plan Year that includes the
                  Determination shall be taken into account; however, in the
                  case of distributions made after the Valuation Date and prior
                  to the Determination Date, such distributions are not included
                  as such to the extent that they are already included in
                  determining Accounts or Accounts as of the Valuation Date.
                  This subparagraph shall also apply to distributions under a
                  terminated plan that if it had not been terminated would have
                  been required to be

                                      -58-
<PAGE>

                  included in the Aggregation Group. However, in the case of a
                  distribution made for a reason other than Severance From
                  Employment, death, or disability, distributions made within
                  the Plan Year that includes the Determination Date, or within
                  the four (4) preceding Plan Years shall be taken into account.

         B.       In the case of unrelated rollovers (both initiated by the
                  Employee and made from a plan maintained by one employer to a
                  plan maintained by another employer), the plan providing the
                  distributions shall include such distributions and the plan
                  accepting the distribution shall include the distribution.

         C.       If any individual is a Nonkey Employee with respect to any
                  plan for any Plan Year, but such individual was a Key Employee
                  with respect to such plan for any prior Plan Year, then the
                  Accounts for such individual shall not be taken into account.

         D.       If any individual has not performed services for any Employer
                  maintaining the Plan at any time during the one (1) year
                  period ending on the Determination Date, any Account for, and
                  the Account of, such individual shall not be taken into
                  account.

         E.       The Account of any Nonkey Employee shall be determined under
                  the method which is used for accrual purposes for all plans of
                  the Employer, or, if there is no such method, as if such
                  benefit accrued not more rapidly than the slowest accrual rate
                  permitted under Code section411(b)(1)(C).

9.04.    Minimum Benefits.
         ----------------

         Notwithstanding any other provision of this Plan, if the Plan is a Top
         Heavy Plan, then:

         A.       For any Top Heavy Plan Year, the sum of the Employer's
                  contributions and forfeitures allocated to the Participant's
                  Nonelective Account of each Nonkey Employee, who is both a
                  Participant and is employed by the Employer on the last day of
                  the Plan Year, shall be equal to at least three percent (3%)
                  of such Nonkey Employee's Total Compensation; provided,
                  however, that if the sum of the Employer's contributions and
                  forfeitures allocated to the Participant's Nonelective Account
                  of each Key Employee for such Top Heavy Plan Year is less than
                  three percent (3%) of each Key Employee's Total Compensation
                  up to a maximum of two hundred thousand dollars ($200,000) or
                  such larger amount as the Secretary of the Treasury may
                  designate, then the sum of the Employer's contributions and
                  forfeitures allocated to each Nonkey Employee shall be equal
                  to the largest percentage allocated to each Key Employee based
                  upon Total Compensation up to a maximum of two hundred
                  thousand dollars ($200,000) or such larger amount as

                                      -59-
<PAGE>

                  the Secretary of the Treasury may designate, except this
                  provision shall not apply to a plan required to be in an
                  Aggregation Group if such plan enables a defined benefit plan
                  required to be in such group to meet the requirements of Code
                  section 401(a)(4) or Code section 410. Matching Contributions
                  shall be taken into account for purposes of satisfying the
                  minimum three percent (3%) contribution requirements described
                  above. Matching Contributions that are used to satisfy the
                  minimum contribution requirements shall be treated as Matching
                  Contributions for purposes of the Actual Contribution
                  Percentage test and other requirements of Code section 401(m).

         B.       For any Top Heavy Plan Year, the minimum allocations set forth
                  above shall be allocated to each Nonkey Employee who is a
                  Participant even though such Nonkey Employee has failed to
                  complete a Period Of Service.

         C.       The minimum benefit requirement of an Employer contribution
                  consisting of three percent (3%) of Compensation shall be met
                  by contributions to the North Valley Bancorp Employee Stock
                  Ownership Plan.

9.05.    Safe Harbor Plan Exception.
         --------------------------

         The top-heavy requirements of Code section 416 and this Plan Article 9
         shall not apply in any year in which the Plan consists solely of a cash
         or deferred arrangement which meets the requirements of Code
         section401(k)(12) and Matching Contributions with respect to which the
         requirements of Code section 401(m)(11) are met.

                        ARTICLE 10. PAYMENT OF BENEFITS

10.01.   Action Upon Termination of Employment.
         -------------------------------------

         Upon a Participant's Termination of Employment for any reason, the
         Employer shall notify the Trustee and Plan Administrator of the
         terminated Participant's name and address, the date on which the
         Participant's employment terminated, and the reason for such
         termination.

                                      -60-
<PAGE>

10.02.   Measure of Benefits.
         -------------------

         The benefit distributable to a Participant upon Termination of
         Employment, or to the Participant's Beneficiary or Beneficiaries in the
         event of the Participant's death, shall be the value of the
         Participant's Accounts as of the Valuation Date next succeeding (or
         coinciding with) the Participant's Termination of Employment. The
         percentage of Vested interest shall be determined in accordance with
         the Vesting and Forfeitures article upon Termination of Employment;
         provided, however, that a Participant whose participation is terminated
         retroactively in accordance with the Leaves of Absence article, above,
         shall only be entitled to a Vested benefit in the Participant's
         Nonelective Account as of the Valuation Date following the
         Participant's Break in Service.

10.03.   Nonliability.
         ------------

         The Employer does not guarantee the Trust, the Participants or their
         Beneficiaries against loss of or depreciation in value of any right or
         benefit that any of them may acquire under the terms of this Plan. All
         of the benefits payable hereunder shall be paid or provided for solely
         from the Trust Fund.

10.04.   Source of Benefits.
         ------------------

         The amount of benefits payable shall be paid out of the assets
         comprising such Participant's Accounts. The distribution shall be made
         in cash.

10.05.   Mechanics of Payment.
         --------------------

         The Trustee, with respect to any benefit, is authorized to pay benefits
         directly from the Trust Fund.

10.06.   Method of Payment of Benefits.
         -----------------------------

         Upon a Participant's Termination of Employment, the Plan Administrator
         shall determine the Vested amount credited to the Participant's
         Account(s) and after consultation with the Participant or the
         Participant's Beneficiary, the Plan Administrator shall select the
         method of payment of benefits from among the following.

                                      -61-
<PAGE>

         A.       Joint and Survivor Automatic Payment.
                  ------------------------------------

                  (1)      Unless otherwise elected as provided below, a
                           Participant who is married on the Annuity Starting
                           Date shall receive the value of the Participant's
                           benefits in the form of an immediate Qualified Joint
                           and Survivor Annuity. The Participant may elect to
                           have such annuity distributed upon attainment of the
                           earliest retirement age under the Plan.

                  (2)      Any election to waive the Qualified Joint and
                           Survivor Annuity must be made by the Participant in
                           writing during the Election Period and be consented
                           to in writing by the Participant's spouse. Such
                           spouse's written consent must designate a beneficiary
                           or a form of benefits which may not be changed
                           without spousal consent (unless the spousal consent
                           expressly permits designations by the Participant
                           without any requirement of further spousal consent),
                           acknowledge the effect of such election, and be
                           witnessed by a Plan representative or a notary
                           public. Such consent shall not be required if it is
                           established to the satisfaction of the Plan
                           Administrator that the required consent cannot be
                           obtained because there is no spouse, the spouse
                           cannot be located, or other circumstances that may be
                           prescribed by Treasury Regulations. The election made
                           by the Participant and consented to by the
                           Participant's spouse may be revoked by the
                           Participant in writing without the consent of the
                           spouse at any time during the Election Period. Any
                           new election must comply with the requirements of
                           this subparagraph. A former spouse's waiver shall not
                           be binding on a new spouse.

                  (3)      With regard to the election, the Plan Administrator
                           shall provide the Participant, within a reasonable
                           period of time before the Annuity Starting Date (and
                           consistent with Treasury Regulations), a written
                           explanation of:

                           (a)      The terms and conditions of the Qualified
                                    Joint and Survivor Annuity;

                           (b)      The Participant's right to make an election
                                    to waive the Qualified Joint and Survivor
                                    Annuity;

                                      -62-
<PAGE>

                           (c)      The right of the Participant's spouse to
                                    consent to any election to waive the
                                    Qualified Joint and Survivor Annuity; and

                           (d)      The right of the Participant to revoke such
                                    election, and the effect of such revocation.

                  (4)      For purposes of the Qualified Joint and Survivor
                           Annuity, the Election Period means the period of
                           ninety (90) days ending on the Annuity Starting Date.

                  (5)      The Qualified Joint and Survivor Annuity provided in
                           the Joint and Survivor Automatic Payment article
                           shall apply only to Participants who are credited
                           with one (1) Hour of Service on or after August 23,
                           1984. Former Participants, who are not credited with
                           an Hour of Service on or after August 23, 1984, shall
                           be provided with the rights to a joint and survivor
                           annuity in accordance with section 303(e)(1) of the
                           Retirement Equity Act of 1984. The Qualified Joint
                           and Survivor Annuity shall apply to the Participant's
                           benefits derived from both Employer contributions and
                           Employee voluntary contributions, but shall not apply
                           to a rollover account or a voluntary deductible
                           Employee contributions account.

                  (6)      Waiver of the thirty (30) day period. The Annuity
                           Starting Date for a distribution in a form other than
                           a qualified joint and survivor annuity may be less
                           than thirty (30) days after receipt of the written
                           explanation described in the preceding paragraph
                           provided:

                           (a)      The Participant has been provided with
                                    information that clearly indicates that the
                                    Participant has at least thirty (30) days to
                                    consider whether to waive the qualified
                                    joint and survivor annuity and elect (with
                                    spousal consent) to a form of distribution
                                    other than a qualified joint and survivor
                                    annuity;

                           (b)      The Participant is permitted to revoke any
                                    affirmative distribution election at least
                                    until the Annuity Starting Date or, if
                                    later, at any time prior to the expiration
                                    of the seven (7) day period that begins the
                                    day after the explanation of the qualified
                                    joint and survivor annuity is provided to
                                    the Participant; and

                                      -63-
<PAGE>

                           (c)      The Annuity Starting Date is a date after
                                    the date that the written explanation was
                                    provided to the Participant.

                  (7)      For purposes of this Plan, "Annuity Starting Date"
                           means the first day of the first period for which an
                           amount is payable as an annuity, or in the case of a
                           benefit not payable in the form of an annuity, the
                           first day on which all events have occurred which
                           entitled the Participant to such benefit.

         B.       Unmarried Participants.
                  ----------------------

                  Unless otherwise elected, a Participant who is not married on
                  the Annuity Starting Date shall receive the value of the
                  Participant's benefits in the form of a life annuity. An
                  election to waive the life annuity shall comply with the
                  provisions of this Method of Payment of Benefits paragraph as
                  if it were an election to waive the Qualified Joint and
                  Survivor Annuity by a married Participant, but without the
                  spousal consent requirement.

         C.       Option to Elect Other Payout.
                  ----------------------------

                  In the event a Participant duly elects not to receive the
                  retirement benefit in the form of a Qualified Joint and
                  Survivor Annuity, or if such Participant is not married and
                  duly elects not to receive the retirement benefit in the form
                  of a life annuity, or if the Qualified Joint and Survivor
                  Annuity does not apply to the Participant, the Plan
                  Administrator shall direct the Trustee to distribute to the
                  Participant, or the Participant's Beneficiary, any amount to
                  which the Participant is entitled under the Plan in one or
                  more of the following methods as elected by the Participant:

                  (1)      Lump Sum.
                           --------

                           A single lump sum distribution of the Participant's
                           Accrued Benefit in cash or in-kind.

                  (2)      Contract-Term Certain Annuity.
                           -----------------------------

                           The purchase of a nontransferable, fixed variable
                           installment-Contract of such type and from such
                           insurer as Trustee shall select, payable over a
                           guaranteed term of five

                                      -64-
<PAGE>

                           (5), ten (10) or fifteen (15) years to the
                           Participant. The payments shall be substantially
                           equal in amount and shall occur at least annually.

                  (3)      Contract - Life Annuity.
                           -----------------------

                           The purchase of a nontransferable, fixed or variable
                           installment Contract of such type and from such
                           Insurer as the Trustee shall select, payable over the
                           Participant's life expectancy, or the joint life
                           expectancy of the Participant and the Participant's
                           designated Beneficiary. The payments shall be
                           substantially equal in amount and shall occur at
                           least annually.

         D.       If the value of the Participant's Vested benefit does not
                  exceed five thousand dollars ($5,000.00), the Plan
                  Administrator may immediately distribute such benefit without
                  such Participant's consent and without such Participant's
                  spouse's consent. However, a Participant's Vested benefit may
                  not be paid prior to the later of the Participant's attainment
                  of age sixty-two (62) or Normal Retirement Age without the
                  written consent of the Participant and the Participant's
                  spouse if the value exceeds, or has ever exceeded, five
                  thousand dollars ($5,000.00). No distribution may be made
                  under this subparagraph after the Annuity Starting Date unless
                  the Participant and the Participant's spouse (or where the
                  Participant has died, the surviving spouse) consents in
                  writing to such distribution.

         E.       Rollover Contributions Disregarded In Involuntary Cash-Outs.
                  -----------------------------------------------------------

                  For distributions made after December 31, 2001, for purposes
                  of subsection D, above, the value of a Participant's
                  nonforfeitable Account balance shall be determined without
                  regard to that portion of the Account balance that is
                  attributable to Rollover Contributions (and earnings allocable
                  thereto) within the meaning of Code sections 402(c),
                  403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16). If the
                  value of the Participant's nonforfeitable Account balance as
                  so determined is five thousand dollars ($5,000) or less, the
                  plan may immediately distribute the Participant's entire
                  nonforfeitable Account balance.

         F.       Death and other nonretirement benefits payable under the Plan
                  shall be incidental to the primary purpose of the Plan. Thus,
                  distributions to the Participant under the Plan shall be in
                  sufficient

                                      -65-
<PAGE>

                  amounts so that the relationship of a Participant's total
                  benefits under the Plan to the deferred compensation payable
                  to the Participant under the Plan is such that the primary
                  purpose of the Plan is to provide deferred compensation to the
                  Participant, all as defined in the incidental death benefit
                  rules in effect prior to January 1, 1989, or for calendar
                  years beginning after December31, 1988, the requirements of
                  Code section401(a)(9)(G) and the regulations promulgated
                  thereunder.

         G.       If the monthly installment distributed is less than one
                  hundred dollars ($100) per month, the Trustee may require the
                  distributee to receive his benefit distributions in equal
                  quarterly, semi-annual or annual installments.

10.07.   Commencement of Payment of Benefits.
         -----------------------------------

         A.       Unless a Participant otherwise elects, distribution of the
                  funds due to a terminated Participant shall be made on the
                  occurrence of an event which would result in the distribution
                  had the terminated Participant remained in the employ of the
                  Employer (upon the Participant's death or eligibility for
                  normal or disability retirement). However, the Participant may
                  elect to cause the terminated Participant's Account to be
                  payable to such terminated Participant as soon as is
                  administratively feasible after the Valuation Date following
                  the Participant's Termination of Employment and without
                  unreasonable delay due to causes beyond the control of the
                  Employer, Plan Administrator, Trustee or other Fiduciary.

         B.       Benefits shall begin to be paid to the Participant not later
                  than the sixtieth day after the latest of the close of the
                  Plan Year in which:

                  (1)      Occurs the date on which the Participant is the
                           earlier of age sixty-five (65) or the Normal
                           Retirement Age;

                  (2)      Occurs the tenth anniversary of the year in which the
                           Participant commenced participation in the Plan;

                  (3)      The Participant terminates his service with the
                           Employer; or

                  (4)      At such later date as the Participant (or where the
                           Participant has died, the Participant's Beneficiary)
                           may request; provided that the Participant or the
                           Participant's Beneficiary must submit a written
                           statement to the Trustee

                                      -66-
<PAGE>

                           which describes the benefit and the date on which
                           payment shall commence; and further provided that the
                           then present value of the payments projected to be
                           made over the Participant's then life expectancy is
                           more than fifty percent (50%) of the then present
                           value of the total payments projected to be made to
                           the Participant and the Participant's Beneficiaries.

         C.       Required Minimum Distributions.
                  ------------------------------

                  (1)      Notwithstanding anything contained in this Plan to
                           the contrary, unless the Participant or the
                           Participant's Beneficiary has made a valid election
                           under TEFRA section242(b), the Participant's entire
                           interest either (a) will be distributed to the
                           Participant not later than the Required Beginning
                           Date or (b) will be distributed beginning not later
                           than the Required Beginning Date, in accordance with
                           the Treasury Regulations promulgated under Code
                           section401(a)(9), over the life of the Participant or
                           over the lives of the Participant and the
                           Participant's designated Beneficiary (or over a
                           period not extending beyond the life expectancy of
                           the Participant or the life expectancy of the
                           Participant and the Participant's designated
                           Beneficiary). For purposes of the preceding
                           provision, the Required Beginning Date shall be April
                           1 of the calendar year following the calendar year in
                           which the Participant attains age seventy and
                           one-half (70-1/2) or, in the case of a Participant
                           other than a Participant who is a Five Percent (5%)
                           Owner, at any time during the five (5) Plan Year
                           period ending in the calendar year in which the
                           Participant attains age seventy and one-half
                           (70-1/2), in which the Participant retires, whichever
                           is later; provided, however, that if the Participant
                           becomes a Five Percent (5%) Owner during any
                           subsequent Plan Year, the Required Beginning Date
                           shall be April 1 of the calendar year following the
                           calendar year in which such subsequent Plan Year
                           ends.

                  (2)      Notwithstanding the foregoing, effective January 1,
                           2003, the following provisions shall apply:

                                      -67-
<PAGE>

         A.       Minimum Distribution Requirements.
                  ---------------------------------

                  Section 1.        General Rules.
                                    -------------

                  1.1.     Effective Date.
                           --------------

                           Unless an earlier effective date is specified in the
                           Plan, the provisions of this article will apply for
                           purposes of determining required minimum
                           distributions for calendar years beginning with the
                           2003 calendar year.

                  1.2.     Coordination With Minimum Distribution Requirements
                           ---------------------------------------------------
                           Previously In Effect.
                           --------------------

                           If the Plan specifies an effective date of this
                           article that is earlier than calendar years beginning
                           with the 2003 calendar year, required minimum
                           distributions for 2002 under this article will be
                           determined as follows. If the total amount of 2002
                           required minimum distributions under the Plan made to
                           the distributee prior to the effective date of this
                           article equals or exceeds the required minimum
                           distributions determined under this article, then no
                           additional distributions will be required to be made
                           for 2002 on or after such date to the distributee. If
                           the total amount of 2002 required minimum
                           distributions under the plan made to the distributee
                           prior to the effective date of this article is less
                           than the amount determined under this article, then
                           required minimum distributions for 2002 on and after
                           such date will be determined so that the total amount
                           of required minimum distributions for 2002 made to
                           the distributee will be the amount determined under
                           this article.

                                      -68-
<PAGE>

                  1.3.     Precedence.
                           ----------

                           The requirements of this article will take precedence
                           over any inconsistent provisions of the Plan.

                  1.4.     Requirements Of Treasury Regulations Incorporated.
                           -------------------------------------------------

                           All distributions required under this article will be
                           determined and made in accordance with the Treasury
                           regulations under section401(a)(9) of the Internal
                           Revenue Code.

                  1.5.     TEFRA Section 242(b)(2) Elections.
                           ---------------------------------

                           Notwithstanding the other provisions of this article,
                           distributions may be made under a designation made
                           before January 1, 1984, in accordance with section
                           242(b)(2) of TEFRA and the provisions of the Plan
                           that relate to section 242(b)(2) of TEFRA.

                  Section 2.        Time And Manner Of Distribution.
                                    -------------------------------

                  2.1.     Required Beginning Date.
                           -----------------------

                           The Participant's entire interest will be
                           distributed, or begin to be distributed, to the
                           Participant no later than the Participant's Required
                           Beginning Date.

                  2.2.     Death Of Participant Before Distributions Begin.
                           -----------------------------------------------

                           If the Participant dies before distributions begin,
                           the Participant's entire interest will be
                           distributed, or begin to be distributed, no later
                           than as follows:

                           (a)      If the Participant's surviving spouse is the
                                    Participant's sole designated

                                      -69-
<PAGE>

                                    Beneficiary, then, except as provided in the
                                    Plan, distributions to the surviving spouse
                                    will begin by December 31 of the calendar
                                    year immediately following the calendar year
                                    in which the Participant died, or by
                                    December 31 of the calendar year in which
                                    the Participant would have attained age
                                    seventy and one-half (70-1/2), if later.

                           (b)      If the Participant's surviving spouse is not
                                    the Participant's sole designated
                                    Beneficiary, then, except as provided in the
                                    Plan, distributions to the designated
                                    Beneficiary will begin by December 31 of the
                                    calendar year immediately following the
                                    calendar year in which the Participant died.

                           (c)      If there is no designated Beneficiary as of
                                    September 30 of the year following the year
                                    of the Participant's death, the
                                    Participant's entire interest will be
                                    distributed by December 31 of the calendar
                                    year containing the fifth (5th) anniversary
                                    of the Participant's death.

                           (d)      If the Participant's surviving spouse is the
                                    participant's sole designated Beneficiary
                                    and the surviving spouse dies after the
                                    Participant but before distributions to the
                                    surviving spouse begin, this section 2.2,
                                    other than section 2.2(a), will apply as if
                                    the surviving spouse were the Participant.

                           For purposes of this section 2.2 and section 4,
                           unless section 2.2(d) applies, distributions are
                           considered to begin on the Participant's Required
                           Beginning Date. If section 2.2(d) applies,
                           distributions are considered to begin on the date
                           distributions are required to begin to the surviving
                           spouse under section 2.2(a). If distributions under
                           an

                                      -70-
<PAGE>

                           annuity purchased from an insurance company
                           irrevocably commence to the participant before the
                           Participant's Required Beginning Date (or to the
                           Participant's surviving spouse before the date
                           distributions are required to begin to the surviving
                           spouse under section 2.2(a)), the date distributions
                           are considered to begin is the date distributions
                           actually commence.

                  2.3.     Forms Of Distribution.
                           ---------------------

                           Unless the Participant's interest is distributed in
                           the form of an annuity purchased from an insurance
                           company or in a single sum on or before the Required
                           Beginning Date, as of the first distribution calendar
                           year distributions will be made in accordance with
                           sections 3 and 4 of this article. If the
                           Participant's interest is distributed in the form of
                           an annuity purchased from an insurance company,
                           distributions thereunder will be made in accordance
                           with the requirements of section401(a)(9) of the Code
                           and the Treasury regulations.

                  Section 3.       Required Minimum Distributions During
                                   -------------------------------------
                                   Participant's Lifetime.
                                   ----------------------

                  3.1.     Amount Of Required Minimum Distribution For Each
                           ------------------------------------------------
                           Distribution Calendar Year.
                           --------------------------

                           During the Participant's lifetime, the minimum amount
                           that will be distributed for each distribution
                           calendar year is the lesser of:

                           (a)      The quotient obtained by dividing the
                                    Participant's account balance by the
                                    distribution period in the Uniform Lifetime
                                    Table set forth in section 1.401(a)(9)-9 of
                                    the Treasury regulations, using the
                                    Participant's age as of the participant's
                                    birthday in the distribution calendar year;
                                    or

                                      -71-
<PAGE>

                           (b)      If the Participant's sole designated
                                    beneficiary for the distribution calendar
                                    year is the Participant's spouse, the
                                    quotient obtained by dividing the
                                    Participant's account balance by the number
                                    in the Joint and Last Survivor Table set
                                    forth in section 1.401(a)(9)-9 of the
                                    Treasury regulations, using the
                                    Participant's and spouse's attained ages as
                                    of the Participant's and spouse's birthdays
                                    in the distribution calendar year.

                  3.2.     Lifetime Required Minimum Distributions Continue
                           ------------------------------------------------
                           Through Year Of Participant's Death.
                           -----------------------------------

                           Required minimum distributions will be determined
                           under this section 3 beginning with the first
                           distribution calendar year and up to and including
                           the distribution calendar year that includes the
                           Participant's date of death.

                  Section 4.        Required Minimum Distributions After
                                    ------------------------------------
                                    Participant's Death.
                                    -------------------

                  4.1.     Death On Or After Date Distributions Begin.
                           ------------------------------------------

                           (a)      Participant Survived By Designated
                                    ----------------------------------
                                    Beneficiary.
                                    -----------

                                    If the Participant dies on or after the date
                                    distributions begin and there is a
                                    designated Beneficiary, the minimum amount
                                    that will be distributed for each
                                    distribution calendar year after the year of
                                    the Participant's death is the quotient
                                    obtained by dividing the Participant's
                                    account balance by the longer of the
                                    remaining life expectancy of the Participant
                                    or the remaining life expectancy of the
                                    Participant's designated Beneficiary,
                                    determined as follows:

                                      -72-
<PAGE>

                                    (1)      The Participant's remaining life
                                             expectancy is calculated using the
                                             age of the Participant in the year
                                             of death, reduced by one for each
                                             subsequent year.

                                    (2)      If the Participant's surviving
                                             spouse is the participant's sole
                                             designated beneficiary, the
                                             remaining life expectancy of the
                                             surviving spouse is calculated for
                                             each distribution calendar year
                                             after the year of the Participant's
                                             death using the surviving spouse's
                                             age as of the spouse's birthday in
                                             that year. For distribution
                                             calendar years after the year of
                                             the surviving spouse's death, the
                                             remaining life expectancy of the
                                             surviving spouse is calculated
                                             using the age of the surviving
                                             spouse as of the spouse's birthday
                                             in the calendar year of the
                                             spouse's death, reduced by one for
                                             each subsequent calendar year.

                                    (3)      If the Participant's surviving
                                             spouse is not the participant's
                                             sole designated Beneficiary, the
                                             designated Beneficiary's remaining
                                             life expectancy is calculated using
                                             the age of the Beneficiary in the
                                             year following the year of the
                                             Participant's death, reduced by one
                                             for each subsequent year.

                           (b)      No Designated Beneficiary.
                                    -------------------------

                                    If the Participant dies on or after the date
                                    distributions begin and there is no
                                    designated Beneficiary as of

                                      -73-
<PAGE>

                                    September 30 of the year after the year of
                                    the Participant's death, the minimum amount
                                    that will be distributed for each
                                    distribution calendar year after the year of
                                    the Participant's death is the quotient
                                    obtained by dividing the Participant's
                                    account balance by the Participant's
                                    remaining life expectancy calculated using
                                    the age of the Participant in the year of
                                    death, reduced by one for each subsequent
                                    year.

                  4.2.     Death Before Date Distributions Begin.
                           -------------------------------------

                           (a)      Participant Survived by Designated
                                    Beneficiary.

                                    Except as provided in the Plan, if the
                                    Participant dies before the date
                                    distributions begin and there is a
                                    designated Beneficiary, the minimum amount
                                    that will be distributed for each
                                    distribution calendar year after the year of
                                    the Participant's death is the quotient
                                    obtained by dividing the Participant's
                                    account balance by the remaining life
                                    expectancy of the Participant's designated
                                    Beneficiary, determined as provided in
                                    section 4.1.

                           (b)      No Designated Beneficiary.

                                    If the Participant dies before the date
                                    distributions begin and there is no
                                    designated Beneficiary as of September 30 of
                                    the year following the year of the
                                    Participant's death, distribution of the
                                    Participant's entire interest will be
                                    completed by December 31 of the calendar
                                    year containing the fifth (5th) anniversary
                                    of the Participant's death.

                                      -74-
<PAGE>

                           (c)      Death Of Surviving Spouse Before
                                    Distributions To Surviving Spouse Are
                                    Required To Begin.

                                    If the Participant dies before the date
                                    distributions begin, the Participant's
                                    surviving spouse is the Participant's sole
                                    designated Beneficiary, and the surviving
                                    spouse dies before distributions are
                                    required to begin to the surviving spouse
                                    under section 2.2(a), this section 4.2 will
                                    apply as if the surviving spouse were the
                                    Participant.

                  Section 5.        Definitions.
                                    -----------

                  5.1.     Designated Beneficiary.
                           ----------------------

                           The individual who is designated as the Beneficiary
                           under section 10.13 of the Plan is the designated
                           Beneficiary under section 401(a)(9) of the Internal
                           Revenue Code and section 1.401(a)(9)-1, Q&A-4, of the
                           Treasury regulations.

                  5.2.     Distribution Calendar Year.
                           --------------------------

                           A calendar year for which a minimum distribution is
                           required. For distributions beginning before the
                           Participant's death, the first distribution calendar
                           year is the calendar year immediately preceding the
                           calendar year which contains the Participant's
                           Required Beginning Date. For distributions beginning
                           after the Participant's death, the first distribution
                           calendar year is the calendar year in which
                           distributions are required to begin under section
                           2.2. The Required Minimum Distribution for the
                           Participant's first distribution calendar year will
                           be made on or before the Participant's Required
                           Beginning Date. The required minimum distribution for

                                      -75-
<PAGE>

                           other distribution calendar years, including the
                           required minimum distribution for the distribution
                           calendar year in which the Participant's Required
                           Beginning Date occurs, will be made on or before
                           December 31 of that distribution calendar year.

                  5.3.     Life Expectancy.
                           ---------------

                           Life expectancy as computed by use of the Single Life
                           Table in section1.401(a)(9)-9 of the Treasury
                           regulations.

                  5.4.     Participant's Account Balance.
                           -----------------------------

                           The Account balance as of the last Valuation Date in
                           the calendar year immediately preceding the
                           distribution calendar year (valuation calendar year)
                           increased by the amount of any contributions made and
                           allocated or forfeitures allocated to the Account
                           balance as of dates in the valuation calendar year
                           after the valuation date and decreased by
                           distributions made in the valuation calendar year
                           after the valuation date. The Account balance for the
                           valuation calendar year includes any amounts rolled
                           over or transferred to the Plan either in the
                           valuation calendar year or in the distribution
                           calendar year if distributed or transferred in the
                           valuation calendar year.

                  5.5      Required Beginning Date.
                           -----------------------

                           The Required Beginning Date is the date specified in
                           section 10.07(C)(1), above.

         D.       If any required minimum distributions for the 2002
                  distribution calendar year were made in accordance with the
                  section401(a)(9) Final and Temporary regulations, the
                  following shall apply:

                                      -76-
<PAGE>

                  Section 1.        Effective Date of Plan Amendment For
                                    ------------------------------------
                                    Section 401(a)(9) Final And Temporary
                                    -------------------------------------
                                    Treasury Regulations.
                                    --------------------

                                    Article A, Minimum Distribution
                                    Requirements, applies for purposes of
                                    determining required minimum distributions
                                    for distribution calendar years beginning
                                    with the 2003 calendar year.

                  Section 2.        Election To Apply 5-Year Rule To
                                    --------------------------------
                                    Distributions To Designated Beneficiaries.
                                    -----------------------------------------

                                    If the Participant dies before distributions
                                    begin and there is a designated Beneficiary,
                                    distribution to the designated Beneficiary
                                    is not required to begin by the date
                                    specified in section 2.2 of Article A,
                                    above, but the Participant's entire interest
                                    will be distributed to the designated
                                    Beneficiary by December 31 of the calendar
                                    year containing the fifth (5th) anniversary
                                    of the Participant's death. If the
                                    Participant's surviving spouse is the
                                    Participant's sole designated Beneficiary
                                    and the surviving spouse dies after the
                                    Participant but before distributions to
                                    either the Participant or the surviving
                                    spouse begin, this election will apply as if
                                    the surviving spouse were the Participant.
                                    This election will apply to all
                                    distributions.

                  Section 3.       Election To Allow Participants or
                                   ---------------------------------
                                   Beneficiaries To Elect 5-Year Rule.
                                   ----------------------------------

                                    Participants or Beneficiaries may elect on
                                    an individual basis whether the 5-year rule
                                    or the life expectancy rule in sections 2.2
                                    and 4.2 of Article A, above, applies to
                                    distributions after the death of a
                                    Participant who has a designated
                                    Beneficiary. The election must be made no
                                    later than the earlier of September 30 of
                                    the calendar year in which distribution
                                    would be required to begin under section2.2
                                    of Article A, above, or by September30 of
                                    the calendar year which contains the fifth
                                    anniversary of the Participant's (or, if
                                    applicable, surviving spouse's) death. If
                                    neither the Participant nor

                                      -77-
<PAGE>

                                    Beneficiary makes an election under this
                                    paragraph, distributions will be made in
                                    accordance with sections 2.2 and 4.2 of
                                    Article A, above, and, if applicable, the
                                    elections in section 2 above.

                  Section 4.        Election To Allow Designated Beneficiary
                                    ----------------------------------------
                                    Receiving Distributions Under 5-Year Rule To
                                    --------------------------------------------
                                    Elect Life Expectancy Distributions.
                                    -----------------------------------

                                    A designated Beneficiary who is receiving
                                    payments under the five (5) year rule may
                                    make a new election to receive payments
                                    under the life expectancy rule until
                                    December 31, 2003, provided that all amounts
                                    that would have been required to be
                                    distributed under the life expectancy rule
                                    for all distribution calendar years before
                                    2004 are distributed by the earlier of
                                    December 31, 2003 or the end of the five (5)
                                    year period.

         E.       A Participant's Elective Account, Matching Account, Rollover
                  Account, Catch-up Account and Nonelective Contributions
                  treated as Elective Contributions, shall not be distributable
                  earlier than upon the Participant's retirement, death,
                  separation from service, attainment of age fifty-nine and
                  one-half (59-1/2), certain corporate changes as provided
                  below, or termination of the Plan as provided below.
                  Notwithstanding the foregoing, a Participant's Nonelective
                  Account shall not be eligible for in-service distributions.

         F.       A Participant's Elective Account, and Matching Contributions
                  and Nonelective Contributions to the extent treated as
                  Elective Contributions, may be distributed, in the form of a
                  lump sum distribution only, upon:

                  (1)      The termination of the Plan without the establishment
                           of another defined contribution plan other than an
                           employee stock ownership plan;

                  (2)      The disposition by a corporation to an unrelated
                           corporation of substantially all of the assets
                           (within the meaning of Code section409(d)(2)) used in
                           a trade or business of such corporation if such
                           corporation continues to maintain this Plan after the
                           disposition, but only with

                                      -78-
<PAGE>

                           respect to employees who continue employment with the
                           corporation acquiring such assets; or

                  (3)      The disposition by a corporation to an unrelated
                           entity of such corporation's interest in a subsidiary
                           (within the meaning of Code section409(d)(3)) if such
                           corporation continues to maintain this Plan, but only
                           with respect to employees who continue employment
                           with such subsidiary.

10.08.   Hardship Distributions.
         ----------------------

         The Plan Administrator in accordance with uniform principles
         consistently applied, may direct the Trustee to distribute to any
         Participant in any one Plan Year up to one hundred percent (100%) of
         the Participant's Vested Accounts (including Elective, Matching,
         Nonelective, Catch-Up and Rollover Account), valued as of the last
         Valuation Date, other than income allocated to the Participant's
         Elective and Catch-Up Accounts, if the Participant has an immediate and
         heavy financial need and the distribution is necessary to satisfy such
         financial need. A financial need shall not fail to qualify as immediate
         and heavy merely because such need was reasonably foreseeable or
         voluntarily incurred by the Participant. An immediate and heavy
         financial need shall be found if all of the following requirements are
         satisfied:

         A.       The distribution is on account of:

                  1.       Medical expenses described in Code section213(d)
                           incurred for the Participant or the Participant's
                           spouse or dependents;

                  2.       The purchase (excluding mortgage payments) of a
                           principal residence of the Participant;

                  3.       The payment of tuition for the next twelve (12)
                           months of post-secondary education for the
                           Participant, or the Participant's spouse or
                           dependents; or

                  4.       The need to prevent the eviction of the Participant
                           from the Participant's principal residence or
                           foreclosure on the mortgage of the Participant's
                           principal residence.

                                      -79-
<PAGE>

         B.       The need cannot be relieved through:

                  1.       Reimbursement or compensation by insurance or
                           otherwise;

                  2.       Reasonable liquidation of the assets of the
                           Participant and the Participant's spouse to the
                           extent that such liquidation would not itself cause
                           an immediate and heavy financial need;

                  3.       Cessation of Elective Contributions or Employee
                           contributions under the Plan; or

                  4.       Other distributions or nontaxable loans from any plan
                           maintained by the Employer or by any other employer,
                           or by borrowing from commercial sources on reasonable
                           commercial terms.

         C.       A distribution will be considered as necessary to satisfy an
                  immediate and heavy financial need of the Participant if:

                  1.       The distribution is not in excess of the amount of
                           the immediate and heavy financial need;

                  2.       The Participant has obtained all distributions, other
                           than hardship distributions, and all nontaxable loans
                           under all plans maintained by the Employer;

                  3.       This Plan, and other plans maintained by the
                           Employer, provide that the Participant's Elective
                           Contributions and Employee contributions will be
                           suspended for six (6) months after the receipt of the
                           hardship distribution.

                  4.       Prior to the withdrawal of the Participant's Account,
                           the Participant must make a request in writing to the
                           Plan Administrator.

10.09.   Age 59-1/2 Withdrawals.
         ----------------------

         A Participant who continues in employment as an Employee and who has
         attained the age of fifty-nine and one-half (59-1/2) is permitted to
         withdraw upon request all or any portion of his Account.

                                      -80-
<PAGE>

10.10.   Early Retirement.
         ----------------

         When the Participant attains the Early Retirement Date, the Participant
         shall become eligible for early retirement benefits. If a Participant
         separates from service with a nonforfeitable benefit before satisfying
         the age requirements, but after having satisfied the service
         requirement, the Participant will be entitled to elect an Early
         Retirement benefit upon satisfaction of the age requirement.

10.11.   Normal Retirement.
         -----------------

         When the Participant attains Normal Retirement Age, the Participant
         shall become one hundred percent (100%) Vested in the Participant's
         Matching and Nonelective Accounts.

10.12.   Late Retirement.
         ---------------

         At the request of a Participant and with the consent of the Employer,
         such Participant may be continued in employment beyond such
         Participant's Normal Retirement Age. The Trustee may pay the
         Participant normal retirement benefits, as provided in this article,
         even though the Participant continues employment; or, the payment of
         the Participant's normal retirement benefits may be deferred until
         after the end of the Plan Year in which the Participant's employment is
         terminated. In either case, the Participant shall share in any Employer
         contributions if otherwise eligible. Such Participant shall, at all
         times, have a one hundred percent (100%) Vested interest in the
         Participant's Regular Account. If a Participant continues active
         employment beyond Normal Retirement Age, but dies before actual
         retirement, the undistributed amount of the Participant's Accounts
         shall be paid as a death benefit to the Participant's designated
         Beneficiary.

10.13.   Amount of Death Benefits.
         ------------------------

         Upon the death of a Participant prior to Termination of Employment, the
         Participant's Beneficiaries shall be entitled to such deceased
         Participant's Account balances, plus the face amount of any ordinary or
         term life insurance policy in force on the life of the deceased
         Participant other than key person insurance purchased by the Trustee.

                                      -81-
<PAGE>

10.14.   Manner of Payment of Death Benefits.
         -----------------------------------

         A.       Unless otherwise elected as provided below, a Vested
                  Participant who dies before the Annuity Starting Date and who
                  has a surviving spouse shall have the death benefit paid to
                  the surviving spouse in the form of a Qualified Preretirement
                  Survivor Annuity. Payment of such benefits must commence by
                  the date the Participant would have attained the Normal
                  Retirement Age under the Plan, unless the surviving spouse
                  elects to have the annuity distributed immediately or at a
                  later date.

                  (1)      Any election to waive the Qualified Preretirement
                           Survivor Annuity must be made by the Participant in
                           writing during the Election Period and shall require
                           the spouse's consent in the same manner provided in
                           the Method Of Payment Of Benefits paragraph, above
                           except that any such election and consent need not
                           specify the form of benefits which the surviving
                           spouse shall receive upon the death of the
                           Participant.

                  (2)      With regard to the election, the Plan Administrator
                           shall provide to each Participant a written
                           explanation of the Qualified Preretirement Survivor
                           Annuity containing comparable information to that
                           required pursuant to the Joint And Survivor Automatic
                           Payment paragraph, above. Such information shall be
                           provided to a Participant within whichever of the
                           following periods ends last:

                           (a)      The period beginning with the first day of
                                    the Plan Year in which the Participant
                                    attains age thirty-two (32) and ending with
                                    the close of the Plan year preceding the Pan
                                    year in which the Participant attains age
                                    thirty-five (35);

                           (b)      A reasonable period after the Participant
                                    becomes a participant in the Plan;

                           (c)      In the case of a Participant who separates
                                    from service before attaining age
                                    thirty-five (35), a reasonable period after
                                    such separation.

                  (3)      For purposes of the Qualified Preretirement Survivor
                           Annuity, the Election Period means the period
                           beginning on

                                      -82-
<PAGE>

                           the first day of the Plan Year in which the
                           Participant attains age thirty-five (35) and ending
                           on the date of the Participant's death. In the event
                           a Vested Participant separates from service prior to
                           the first day of the Plan Year in which the
                           Participant attains age thirty-five (35), the
                           Election Period shall begin on the date of such
                           separation from service.

                  (4)      The Qualified Joint and Survivor Annuity provided in
                           the Joint and Survivor Automatic Payment article
                           shall apply only to Participants who are credited
                           with one (1) Hour of Service on or after August 23,
                           1984. Former Participants, who are not credited with
                           an Hour of Service on or after August 23, 1984, shall
                           be provided with rights to the Qualified
                           Preretirement Survivor Annuity in accordance with
                           section 303(e)(2) of the Retirement Equity Act of
                           1984. The Qualified Preretirement Survivor Annuity
                           shall apply to the Participant's benefits derived
                           from both Employer contributions and Employee
                           voluntary contributions, but shall not apply to
                           amounts in the Participant's rollover account or a
                           voluntary deductible Employee contributions account.

                  (5)      If the value of the Qualified Preretirement Survivor
                           Annuity does not exceed five thousand dollars
                           ($5,000) for Plan Years beginning after August 5,
                           1997, the Plan Administrator may immediately
                           distribute such amount to the Participant's surviving
                           spouse. However, such amount may not be paid without
                           the written consent of the surviving spouse if the
                           value exceeds five thousand dollars ($5,000.00) for
                           Plan Years beginning after August 5, 1997. No
                           distribution may be made under this subparagraph
                           after the Annuity Starting Date unless the
                           Participant's surviving spouse consents in writing to
                           such distribution.

                  (6)      In the event the death benefit is not paid in the
                           form of a Qualified Preretirement Survivor Annuity,
                           it shall be paid to the Participant's Beneficiary by
                           any of the methods set forth in the Option To Elect
                           Other Payout paragraph, above.

         B.       If the Beneficiary is to be paid a lump sum distribution
                  qualified under Code section402(e), the Plan Administrator
                  shall cause the Trustee to collect the proceeds of any
                  Contracts and pay them

                                      -83-
<PAGE>

                  to the Beneficiary, together with a total distribution of all
                  of the Participant's Accrued Benefit in a single tax year of
                  the Beneficiary.

         C.       Notwithstanding anything contained in this Plan to the
                  contrary, effective for Plan Years beginning after December
                  31, 1984, unless the Participant or the Participant's
                  Beneficiary has made a valid election under TEFRA section
                  242(b):

                  (1)      If distribution has been commenced to the Participant
                           and the Participant dies before the Participant's
                           entire interest has been distributed, then the
                           remaining portion of the Participant's interest shall
                           be distributed at least as rapidly as under the
                           method of distributions being utilized as of the date
                           of the Participant's death.

                  (2)      If the Participant dies before the distribution of
                           the Participant's interest has begun, either:

                           (a)      The entire interest of the Participant shall
                                    be distributed by the end of the fifth
                                    calendar year following the calendar year of
                                    the Participant's death; or

                           (b)      If any portion of the Participant's interest
                                    is payable to (or for the benefit of) a
                                    designated Beneficiary, such portion shall
                                    be distributed over the life of such
                                    designated Beneficiary (or over a period not
                                    extending beyond the life expectancy of such
                                    designated Beneficiary) and such
                                    distribution shall begin by the end of the
                                    calendar year following the calendar year of
                                    the Participant's death; provided however,
                                    that if the designated Beneficiary is the
                                    Participant's surviving spouse, then the
                                    date on which the distributions are required
                                    to begin shall not be earlier than the date
                                    on which the Participant would have attained
                                    age seventy and one-half (70-1/2) and, if
                                    the surviving spouse dies before the
                                    distributions to such spouse begin, this
                                    provision shall be applied as if the
                                    surviving spouse were the Participant.

         For purposes of this subparagraph, any amount paid to a child shall be
         treated as if it had been paid to the surviving spouse if such amount
         will become payable to the surviving spouse upon such child reaching

                                      -84-
<PAGE>

         majority or such other designated event all as prescribed by the
         Secretary of the Treasury.

10.15.   Designation of Beneficiary.
         --------------------------

         Each Participant shall have the right to designate, on forms provided
         by the Plan Administrator, a Beneficiary or Beneficiaries to receive
         the Participant's death benefits, and shall have the right, at any
         time, to revoke such designation or to substitute another such
         Beneficiary or Beneficiaries without the consent of any Beneficiary;
         provided, however, that a married Participant and spouse shall both
         designate any nonspouse Beneficiary or Beneficiaries, unless the spouse
         cannot be located or unless otherwise permitted by law. Any designation
         by a married Participant and spouse of a non-spouse Beneficiary must be
         made by the Participant in writing and be consented to in writing by
         the Participant's spouse. Such spouse's written consent must designate
         a Beneficiary who may not be changed without spousal consent (unless
         the spousal consent expressly permits designations by the Participant
         without any requirement of further spousal consent), acknowledge the
         effect of such election, and be witnessed by a Plan representative or a
         notary public. Such consent shall not be required if it is established
         to the satisfaction of the Plan Administrator that the required consent
         cannot be obtained because there is no spouse, the spouse cannot be
         located, or other circumstances that may be prescribed by Treasury
         Regulations. The election made by the Participant and consented to by
         the Participant's spouse may be revoked by the Participant in writing
         without the consent of the spouse at any time during the Election
         Period. Any new election must comply with the requirements of this
         subparagraph. A former spouse's waiver shall not be binding on a new
         spouse.

10.16.   Absence of Valid Designation of Beneficiaries.
         ---------------------------------------------

         If, upon the death of a Participant or Beneficiary, there is no valid
         designation of Beneficiary on file, the Plan Administrator shall
         designate as the Beneficiary, in order of priority:

         A.       The surviving spouse;

         B.       The surviving children, including adopted children, in equal
                  shares, or their issue by right of representation;

         C.       Surviving parents, in equal shares; or

                                      -85-
<PAGE>

         D.       The Participant's heirs at law.

         The determination of the Plan Administrator as to which persons, if
         any, qualify within the aforementioned categories shall be final and
         conclusive upon all persons, but the Plan Administrator may seek a
         declaratory judgment of a court of local jurisdiction to determine the
         identity of Beneficiaries and their respective shares at the expense of
         the Beneficiary's Accounts.

10.17.   Distributions to Incapacitated Participants.
         -------------------------------------------

         If a Participant or Beneficiary who is entitled to a payment under the
         Plan is deemed incapable of personally receiving the payment, the Plan
         Administrator or the Trustee may make all benefit distributions to the
         persons or institutions which are providing for the care and
         maintenance of the distributee and continue to make distributions to
         them until a duly appointed legal representative of the distributee
         makes a claim for the payment. Payments made pursuant to the terms of
         this Distribution to Incapacitated Participants article shall
         constitute a distribution to the Participant or Beneficiary entitled
         thereto, and shall immediately discharge the Employer, Plan
         Administrator, Trustee, the Plan and the Trust of any further liability
         therefor.

10.18.   Repayment of Overpayment of Benefits.
         ------------------------------------

         By accepting payment of proceeds under this Plan, the Participant or
         the Participant's Beneficiary receiving the payment agrees that, in the
         event of overpayment, the Participant or the Participant's Beneficiary
         will promptly repay the amount of overpayment without interest;
         provided that, if the Participant or the Participant's Beneficiary has
         not repaid the overpayment within thirty (30) days after notice, the
         Participant or the Participant's Beneficiary will also pay an amount
         equal to simple interest at the rate of ten percent (10%) per annum (or
         the highest rate allowable, if less) on the unpaid amount from the date
         of overpayment to the date of repayment, and in addition will pay all
         legal fees, court costs and the reasonable time value of the Trustee,
         Plan Administrator or Employer, or any of their employees or agents,
         related to the collection of such overpayment.

10.19.   Alternate Payees.
         ----------------

         All rights and benefits, including elections, provided to a Participant
         in this Plan shall be subject to the rights afforded to any "alternate
         payee" under a "qualified domestic relations order" as those terms are
         defined

                                      -86-
<PAGE>

         in Code section 414(p). Notwithstanding any other provision of this
         Plan, a distribution may be made to an "alternate payee" pursuant to a
         "qualified domestic relations order," as each term is defined in Code
         section 414(p), prior to the times otherwise specified in this Plan, if
         the qualified domestic relations order requires such a distribution;
         provided, however, that nothing contained in this provision nor such
         qualified domestic relations order shall entitle a Participant to a
         distribution prior to the time as otherwise determined under this Plan.

10.20.   Eligible Rollover Distributions Direct Rollovers.
         ------------------------------------------------

         A Distributee may elect, at the time and in the manner prescribed by
         the Plan Administrator, to have any portion of an Eligible Rollover
         Distribution paid directly to an Eligible Retirement Plan specified by
         the Distributee in a Direct Rollover.

10.21.   Distribution Upon Severance of Employment.
         -----------------------------------------

         A Participants Account, including Elective Deferrals, Qualified
         Nonelective Contributions, Qualified Matching Contributions and
         earnings attributable to these contributions shall be distributed on
         account of the Participants severance from employment. However, such a
         distribution shall be subject to the other provision of the Plan
         regarding distributions, other than the provisions that require a
         separation from service before such amounts may be distributed. This
         section shall apply to distributions after December 31, 2001,
         regardless of when the severance of employment occurred.

                     ARTICLE 11. BENEFIT CLAIMS AND APPEALS

11.01.   Claims.
         ------

         ERISA requires the Committee to establish procedures for processing
         claims which afford Participants a reasonable opportunity for a full
         and fair review of their claims. These claims procedures contain the
         provisions required by the Labor Regulations at 29CFR2520.503-1. The
         Committee shall have absolute discretion to determine Participants' and
         Beneficiaries' rights to benefits under the Plan. All benefit claim
         decisions will be made in accordance with the terms of the Plan
         documents and the Plan terms will be applied consistently to all
         claimants.

                                      -87-
<PAGE>

         A.       Filing A Benefit Claim.
                  ----------------------

                  A Participant, a Beneficiary or his or her representative can
                  initiate the benefit claim process by submitting to the
                  Committee fully completed distribution election forms, if
                  needed, or a letter clearly stating that a claim is being
                  filed. A claim shall not be deemed to be "filed" for the
                  purposes of these claim and appeals procedures however, until
                  all necessary and applicable forms are completed and submitted
                  to the Committee. A claim will be considered submitted if
                  delivered to a member of the Committee directly, or to the
                  Committee, in care of the office of the Employer which handle
                  personnel and human resources matters.

         B.       Notice Of Benefit Denial.
                  ------------------------

                  1.       Timing Of Notice.
                           ----------------

                           If a benefit claim is wholly or partially denied, the
                           Committee will notify the Participant, the
                           Beneficiary or his or her representative of the
                           denial within a reasonable period of time, but no
                           later than ninety (90) days after the Plan's receipt
                           of the claim. If the Committee determines that an
                           extension of the time for processing the claim is
                           needed, the Committee will notify the Participant,
                           the Beneficiary or his or her representative of the
                           reasons for the extension and the extended due date
                           before the end of the ninety (90) day period after
                           the filing of the claim. The extended period will not
                           exceed one hundred eighty (180) days after the date
                           of the filing of the claim.

                  2.       Content Of Notice.
                           -----------------

                           A notice of a benefit denial will be provided in
                           either written form or via e-mail. The notice will
                           provide the following information:

                           a.      The specific reason(s) for the denial;

                           b.       Reference to the specific Plan provisions on
                                    which the denial is based;

                                      -88-
<PAGE>

                           c.       A description of any additional information
                                    necessary for the claim to be granted and an
                                    explanation of why such information is
                                    necessary; and

                           d.       A description of the claim review
                                    procedures, the time limits under the
                                    procedures and a statement regarding your
                                    right to bring a civil action under ERISA
                                    section502(a) following a benefit denial.

         C.       Appeal Of Benefit Denial.
                  ------------------------

                  1.       Review Process.
                           --------------

                           The review process will be as follows:

                           a.       A Participant, Beneficiary or representative
                                    will have sixty (60) days following receipt
                                    of the notice of benefit denial in which to
                                    file an appeal of the decision with the
                                    Committee;

                           b.       A Participant, Beneficiary or representative
                                    may submit written comments, documents,
                                    records and other information related to the
                                    benefit claim on appeal;

                           c.       A Participant, Beneficiary or representative
                                    will be provided, upon request and free of
                                    charge, access to and copies of all
                                    documents, records and other information
                                    relevant to the benefit claim (a document is
                                    considered relevant to the claim if it: (i)
                                    was relied upon in making the benefit
                                    decision; (ii) was submitted, considered or
                                    generated in the course of making the
                                    benefit decision, without regard as to
                                    whether it was relied upon in making the
                                    decision; or (iii) demonstrates compliance
                                    in making the benefit decision with the
                                    requirement that benefit decisions must
                                    follow the terms of the plan and be
                                    consistent when applied to similarly
                                    situated claimants); and

                           d.       The review on appeal will consider all
                                    comments, documents, records and other
                                    information submitted by the Participant,
                                    without regard to whether such information
                                    was submitted or considered in the initial
                                    benefit denial.

                                      -89-
<PAGE>

                  2.       Timing Of Notice Of Appeals Decision.
                           ------------------------------------

                           The Committee will notify the Participant,
                           Beneficiary or his or her representative of the
                           appeals decision (whether or not a complete or
                           partial denial)) within a reasonable period of time,
                           but no later than sixty (60) days after the Plan's
                           receipt of the appeal. If the Committee determines
                           that an extension of the time for processing the
                           claim is needed, the Committee will notify the
                           Participant, Beneficiary or his or her representative
                           of the reasons for the extension and the extended due
                           date before the end of the sixty (60) day period
                           after the filing of the appeal. The extended period
                           will not exceed one hundred twenty (120) days after
                           the date of the filing of the appeal.

                  3.       Content Of Notice Of Appeals Decision.
                           -------------------------------------

                           A notice of a benefit determination on appeal will be
                           provided in written form or via e-mail. If the
                           decision is in whole or in part a denial of the
                           appeal, the notice will provide the following
                           information:

                           a.       The specific reason(s) for the denial;

                           b.       Reference to the specific Plan provisions on
                                    which the denial is based;

                           c.       A statement that the Participant,
                                    Beneficiary or representative is entitled to
                                    receive, upon request and free of charge,
                                    access to and copies of all documents,
                                    records and other information relevant to
                                    the benefit claim (a document is considered
                                    relevant to the claim if it: (i) was relied
                                    upon in making the benefit decision; (ii)was
                                    submitted, considered or generated in the
                                    course of making the benefit decision,
                                    without regard as to whether it was relied
                                    upon in making the decision; or (iii)
                                    demonstrates compliance in making the
                                    benefit decision with the requirement that
                                    benefit decisions must follow the terms of
                                    the plan and be consistent when applied to
                                    similarly situated claimants); and

                                      -90-
<PAGE>

                           d.       A statement regarding the Participant's or
                                    Beneficiary's right to bring a civil action
                                    under ERISA section 502(a) following a
                                    benefit denial on appeal.

                        ARTICLE 12. PLAN ADMINISTRATION

12.01.   Appointment of the Plan Administrator.
         -------------------------------------

         The Board shall appoint an Administrative Retirement Committee
         comprised of three (3) or more persons (hereinafter referred to as the
         Committee) to serve at its pleasure for such term or terms as the Board
         may designate or until a successor has been appointed or until removal
         by the Board. The Board shall provide the Trustee the names and
         specimen signatures of the members of the Committee and any changes
         thereafter made in the membership of the Committee. Committee members
         may resign by giving at least seven (7) days advance written notice to
         the Board, the Committee Chair and the Trustee. A member may be removed
         at any time, without advance notice, by appropriate action of the
         Board. Vacancies due to resignation, death, removal or other causes
         shall be filled by the Board. All reasonable expenses of the Committee
         shall be paid by the Employer. The number of the Committee may be
         changed by the Board at any time.

12.02.   Employment Records.
         ------------------

         The Employer shall maintain permanent employment records to show dates
         of employment and Severance From Employment, sex, birth date, hours
         worked, times on vacation, authorized leaves of absence, illnesses, and
         annual compensation (categorized into different types of compensation
         as may be appropriate), for each Employee. The Employer shall make such
         records available to the Trustee and Plan Administrator, in a timely
         manner, and the Employer shall be responsible for the accuracy of such
         information, upon which the Trustee and Plan Administrator are entitled
         to rely.

12.03.   Reports and Disclosure.
         ----------------------

         The Plan Administrator shall prepare, file and distribute, in a timely
         manner, all reports and information to be disclosed to Participants as
         may be required by ERISA, including, but not limited to, plan
         descriptions and summary plan descriptions, annual reports to the
         Department of Labor, annual reports to the Treasury Department, and
         annual reports to Participants. The Plan Administrator shall prepare
         such reports from

                                      -91-
<PAGE>

         records kept by it and information furnished by the Employer and the
         Trustee.

12.04.   Retention of Records.
         --------------------

         Every person subject to a requirement to file any description or report
         or to certify any information thereof under ERISA, or who would be
         subject to such a requirement but for an exemption or simplified
         reporting requirement under ERISA section 104(a)(2) or (3), shall
         maintain records on the matters of which disclosure is required which
         will provide in sufficient detail the necessary basic information and
         data from which the documents thus required may be verified, explained
         or clarified and checked for accuracy and completeness, and shall
         include vouchers, worksheets, receipts and applicable resolutions, and
         shall keep such records available for examination for a period of not
         less than six (6) years after the filing date of the documents based on
         the information which they contain, or six (6) years after the date on
         which such documents would have been filed but for an exemption or
         simplified reporting requirement under ERISA section104(a)(2) or (3).

12.05.   Appointment of Committee Officers.
         ---------------------------------

         The Board shall appoint certain members of the Committee to serve as
         the following officers of the Committee: Chair, Secretary, and Member
         in Charge of Investments. If so designated by the Board, a member of
         the Committee may hold more than one office.

         A.       Chair.
                  -----

                  The Chair of the Committee shall, if present, preside at
                  meetings of the Committee and exercise and perform such other
                  powers and duties as may be from time to time assigned to him
                  by the Committee or prescribed by this Charter or the Plan
                  documents. The Chair shall be responsible for scheduling
                  regular and special meetings of the Committee and preparing,
                  or causing to be prepared, an agenda for each such meeting. In
                  addition, the Chair shall be generally responsible for
                  monitoring legal developments affecting the compliance of the
                  Plans with ERISA and the Code. The Chair shall also be
                  responsible for recommending plan modifications and plan
                  design changes not necessarily required by changes in the law.

                                      -92-
<PAGE>

         B.       Secretary.
                  ---------

                  The Secretary of the Committee shall keep or cause to be kept,
                  at the Employer's principal executive office, or such other
                  place(s) as the Committee may direct, a book of Minutes of all
                  meetings and actions of the Committee, with the time and place
                  of holding, the notice (if any) given, the names of those
                  present, and the proceedings.

                  The Secretary shall keep, or cause to be kept, at the
                  Employer's principal executive office, a copy of all relevant
                  Plan documents, amendments, Board resolutions regarding the
                  Plan, IRS determination letters, Plan filings with either the
                  Internal Revenue Service (IRS), or the Department of Labor
                  (DOL), as well as such other documents and information as the
                  Committee deems appropriate.

                  The Secretary shall give, or cause to be given, notice of all
                  meetings of the Committee.

         C.       Member in Charge of Investments.
                  -------------------------------

                  The Member in Charge of Investments shall be responsible for
                  advising the Committee with respect to the investment
                  activities of the Committee with respect to the Plan. The
                  Member in Charge of Investments shall be responsible for
                  periodically reviewing and analyzing all investment options,
                  investment manager selections relating to the Plan, and shall
                  lead Committee discussions in connection with the discharge of
                  the Committee's fiduciary responsibilities with respect to
                  Plan investments.

                  In addition, the Member in Charge of Investments shall be
                  responsible for:

                  1.       Recommending investment advisers and managers for the
                           Plan;

                  2.       Negotiating agreements with investment managers and
                           advisers;

                  3.       Arranging for the measurement of investment managers'
                           performance;

                                      -93-
<PAGE>

                  4.       Communicating with the Trustee, as required by the
                           Plan; and

                  5.       Recommending appropriate changes relating to the
                           Plan's Trustee.

12.06.   Committee Action.
         ----------------

         A.       Majority Vote Required.
                  ----------------------

                  The Committee shall act by a majority vote of its members in
                  office at that time, such vote to be taken at a meeting, or in
                  writing without a meeting. Provided that if action is taken by
                  a majority vote, or the written consent of a majority of the
                  Committee, or a combination thereof, there shall be no
                  requirement of a quorum in order for the Committee to take
                  action.

          .       Meetings By Telephone.
                  ---------------------

                  Conference telephone or similar communication equipment, so
                  long as all members participating in the meeting can hear one
                  another, and all such members shall be deemed to be present in
                  person at the meeting.

         C.       Execution of Documents.
                  ----------------------

                  The Committee may by such majority action authorize its Chair
                  or anyone or more of its members to execute any document or
                  documents on behalf of the Committee, in which event the
                  Committee shall notify the Trustee in writing of such action
                  and the name or names of those so designated. The Trustee
                  thereafter shall accept and rely conclusively upon any
                  direction or document executed by such secretary, member or
                  members as representing action by the Committee until the
                  Committee shall file with the Trustee a written revocation of
                  such designation. A member of the Committee who is also a
                  Participant hereunder shall not vote or act upon any matter
                  relating solely to such member.

12.07.   Rights and Duties.
         -----------------

         The Committee shall be the Plan Administrator and Named Fiduciary of
         the Plan within the meaning of ERISA. The Committee, on behalf of the

                                      -94-
<PAGE>

         Participants and their beneficiaries shall have the authority to
         control and manage the operation and administration of the Plan and
         shall have all powers necessary to accomplish those purposes. The
         Committee shall have full discretionary and final authority to
         determine eligibility for benefits and to construe any and all of the
         Plan's terms. In addition, the responsibility and authority of the
         Committee shall include, but shall not be limited to, the following:

         A.       Determining all questions relating to the eligibility of
                  Employees to participate;

         B.       Computing and certifying to the Trustee the amount and kind of
                  benefits payable to Participants, Spouses and/or their
                  beneficiaries;

         C.       Authorizing all disbursements by the Trustee from the Trust;

         D.       Maintaining all necessary records for the administration of
                  the Plan other than those which the Trustee has specifically
                  agreed to maintain;

         E.       Interpreting the provisions of the Plan and publishing such
                  roles for the regulation of the Plan as are deemed necessary
                  and not inconsistent with the terms hereof;

         F.       Establishing reasonable procedures to determine the qualified
                  status of domestic relations orders and to administer
                  distributions under such qualified orders;

         G.       Notifying the Participant and any other alternate payee, as
                  defined under Code section 414(p)(8), of the receipt of a
                  domestic relations order, the Plan's procedures for
                  determining the qualified status of such an order, and the
                  determination made in connection with such order;

         H.       Directing the Trustee to make distributions from the Trust
                  Fund to Participants, former Participants, and beneficiaries
                  of the Trust in accordance with the provisions of the Plan and
                  this Trust Agreement. The Trustee shall withhold from such
                  distributions any amount required to be withheld pursuant to
                  Code section3405 unless the recipient of such distributions
                  has made an appropriate election under Code section3405(a)(2)
                  or 3405(b)(3);

                                      -95-
<PAGE>

         I.       Selecting, engaging, employing and discharging consultants,
                  including, but not limited to, accountants, attorneys,
                  investment counsel, plan administrators and actuaries, as may
                  be reasonable or necessary, as determined by the Committee in
                  its sole discretion. No person so employed shall be
                  disqualified by reason of any interest in the Trust or
                  employment by any Employer unless specifically disqualified by
                  law or regulation.

12.08.   Investments.
         -----------

         The Committee shall be the named fiduciary with respect to control and
         management of assets of the Plan, and may appoint, in writing, an
         investment manager or managers to manage and control all of the
         investments of the Plan, or may delegate the responsibility for making
         investment decisions to the Trustee hereof, in which case the Trustee,
         to the extent permitted by governing law, shall be the fiduciary of the
         Plan. No such appointment shall be effective until the investment
         manager has acknowledged in writing that the investment manager is a
         fiduciary of the Plan and that the investment manager has complied with
         the bonding requirements of ERISA.

12.09.   Independent Qualified Accountant.
         --------------------------------

         Unless the Plan is exempt from the requirement by applicable law or
         regulation, the Committee shall engage on behalf of all Plan
         Participants an independent qualified public accountant who shall
         conduct such examinations of the financial statements of the Plan and
         of other books and records of the Plan as the accountant may deem
         necessary to enable the accountant to form an opinion as to whether the
         financial statements and schedules required to be included in any
         reports required by law are presented fairly in conformity with
         generally accepted accounting principles applied on a basis consistent
         with that of any preceding year.

12.10.   Standard of Care.
         ----------------

         The Committee shall discharge its duties with respect to the Plan
         solely in the interest of the Participants and beneficiaries and (a)
         for the exclusive purpose of providing benefits to Participants and
         their beneficiaries and defraying reasonable expenses of administering
         the Plan; (b) with the care, skill, prudence, and diligence under the
         circumstances then prevailing that a prudent person acting in a like
         capacity and familiar with such matters would use in the conduct of an

                                      -96-
<PAGE>

         enterprise of like character and with like aims; and (c) in accordance
         with the Plan provisions.

12.11.   Allocation and Delegation of Responsibility.
         -------------------------------------------

         The Committee may by written rule allocate fiduciary responsibilities
         among Committee members and may delegate to persons other than
         Committee members the authority to carry out fiduciary responsibilities
         under the Plan, provided that no such responsibility shall be allocated
         or delegated to the Trustee without its written consent. As used in
         this part, the term "fiduciary responsibility" shall not include any
         responsibility provided in this Trust Agreement to manage or control
         the assets of the Plan.

         The Committee in making the above allocation of fiduciary
         responsibilities may provide that a person or group of persons may
         serve in more than one (1) fiduciary capacity with respect to the Plan.

         The Committee or, so long as the Committee shall have made written
         approval, persons to whom fiduciary responsibilities have been
         delegated by the Committee, may employ one (1) or more persons to
         render advice with regard to any responsibility such fiduciary has
         under the Plan.

         In the event a fiduciary responsibility is allocated to a Committee
         member, no other Committee member shall be liable for any such act or
         omission of the person to whom the responsibility is allocated except
         as may be otherwise required by law. If a fiduciary responsibility is
         delegated to a person other than a Committee member, the Committee
         shall not be responsible or liable for an act or omission of such
         persons in carrying out such responsibility except as may otherwise be
         required by law.

12.12.   Bonding.
         -------

         Each fiduciary of the Plan and every person handling Plan funds shall
         be bonded unless exempt from such requirement under ERISA. It shall be
         the obligation of the Committee to assure compliance with applicable
         bonding requirements. The Trustee shall not be responsible for assuring
         the bonding requirements are complied with and such responsibility is
         specifically allocated to the Committee.

                                      -97-
<PAGE>

                     ARTICLE 13. AMENDMENT AND TERMINATION

13.01.   Amendment.
         ---------

         A.       The Employer reserves the right to amend this Plan and the
                  Trust at any time without the consent of the Plan
                  Administrator, any Trustee or any Fiduciary, or of any
                  Participant or Beneficiary, and this Plan may be amended at
                  any time in writing by the Employer; provided, however, that
                  except in accordance with the provisions of the Plan or as
                  otherwise specifically permitted by law, no such amendment
                  shall:

                  1.       Cause any of the assets of the Trust Fund to be used
                           for or diverted to purposes other than for the
                           exclusive benefit of Participants and their
                           Beneficiaries; or

                  2.       Have any retroactive effect so as to deprive any
                           Participant or Beneficiary of any benefit already
                           Vested, except that such changes may be made as may
                           be required to permit the Plan and the Trust to meet
                           the requirements of the Code with respect to the
                           qualification of the Plan and the exemption of the
                           Trust under Code sections 401(a) and 501(a), or any
                           similar statutes enacted in lieu thereof; or

                  3.       Create or effect any discrimination in favor of
                           Participants who are Highly Compensated Employees of
                           the Employer; or

                  4.       Increase the duties or liabilities of the Trustee
                           without the Trustee's consent.

         B.       Any such Plan amendment shall be made by means of a written
                  instrument identified as an amendment of the Plan effective as
                  of a specified date.

13.02.   No Amendment To Reduce Protected Benefits.
         -----------------------------------------

         Except as permitted by regulations, no Plan amendment or transaction
         having the effect of a Plan amendment (such as a merger, plan transfer
         or similar transaction) shall be effective to the extent it eliminated
         or reduces any "Section 411(d)(6) protected benefit" or adds or
         modifies conditions relating to "Section 411(d)(6) protected benefits"
         the result of which is a further restriction on such benefit unless
         such protected

                                      -98-
<PAGE>

         benefits are preserved with respect to benefits accrued as of the later
         of the adoption date or effective date of the amendment. "Section
         411(d)(6) protected benefits" are benefits described in Code
         section411(d)(6)(A), early retirement benefits and retirement-type
         subsidies, and optional forms of benefit.

13.03.   Plan Termination.
         ----------------

         The Employer expects to continue the Plan indefinitely, but reserves
         the right to terminate the Plan at any time by appropriate action.
         Failure of the Employer to retain the qualified status of the Plan
         under Code section401 shall be deemed to be termination of the Plan. In
         the event of such termination, a partial termination, as determined in
         accordance with the standards established by the Internal Revenue
         Service through Treasury Regulations and Revenue Rulings, or
         termination as set forth in the Bankruptcy, Employer Merger, Or
         Suspension Of Contributions article, below, or upon complete
         discontinuance of contributions hereunder, each affected Employee shall
         become one hundred percent (100%) Vested in the Participant's Account.
         The Employer shall thereupon give written directions to the Plan
         Administrator and the Trustee to either:

         A.       Terminate the Plan and the Trust and direct the Trustee to
                  distribute to the Participants; or

         B.       Cease future benefit accruals under the Plan, except as may be
                  required by the Top Heavy Plan Rules article, and continue the
                  Trust, with distributions to be made to a Participant pursuant
                  to the Plan upon the Participant's Severance From Employment.

13.04.   Reversions.
         ----------

         A.       Except as provided below and as otherwise specifically
                  permitted by law, it shall be impossible by operation of the
                  Plan or of the Trust, by termination of either, by power of
                  revocation or amendment, by the happening of any contingency,
                  by collateral arrangement or by any other means, for any part
                  of the corpus or income of any Trust Fund maintained pursuant
                  to the Plan or any funds contributed thereto to be used for,
                  or diverted to, purposes other than the exclusive benefit of
                  Participants or their Beneficiaries; provided, however:

                  1.       In the case of a contribution which is made by an
                           Employer by a mistake of fact, the Trustee may return
                           such

                                      -99-
<PAGE>

                           contribution to the Employer within one (1) year
                           after the payment of the contribution.

                  2.       All contributions to the Plan are conditioned upon
                           the initial qualification of the Plan under Code
                           section 401. If the Employer files an application for
                           determination on the initial qualification of the
                           Plan by the time prescribed by law for filing the
                           Employer's return for the taxable year in which the
                           Plan was adopted, or such later date as the Secretary
                           of the Treasury may provide, and if the Plan receives
                           an adverse determination with respect to its initial
                           qualification, then the Trustee shall, within a
                           reasonable time after receiving a written direction
                           from the Employer to do so:

                           a.       Return to the contributors the then value of
                                    all contributions theretofore made within
                                    one (1) year after such determination;

                           b.       Leave the funds in the Trust to fund the
                                    obligations of the Plan;

                           c.       Distribute the funds to the Participants; or

                           d.       Any combination of the above.

                  3.       All contributions to the Plan are conditioned upon
                           deductibility of the contribution under Code section
                           404. To the extent that the deduction is disallowed,
                           the Trustee shall return to the Employer such
                           contribution, to the extent disallowed, within one
                           (1) year after the disallowance of the deduction.

                  4.       Upon termination of the Plan, if there is any balance
                           remaining in the Trust after the satisfaction of all
                           liabilities to the Participants and their
                           Beneficiaries, the Trustee shall return said balance
                           to the Employer.

         B.       As a condition to the foregoing reversions, the Employer shall
                  execute, acknowledge and deliver to the Trustee its written
                  undertaking, in form satisfactory to the Trustee, to
                  indemnify, defend and hold the Trustee harmless from all
                  claims, actions, demands or liabilities arising in connection
                  with such reversions.

                                     -100-
<PAGE>

13.05.   Segregation Of Trust Assets.
         ---------------------------

         If this Plan initially or subsequently does not qualify under Code
         section401(a), or is terminated, and if the Trustee has commingled the
         assets of the Trust with assets belonging to other exempt employees'
         trusts, or for tax purposes reports the income and distribution of the
         Trust as part of a single trust, the Plan Administrator shall direct
         the Trustee to forthwith segregate the assets of the Trust for
         accounting and tax purposes and treat such Trust as a separate and
         distinct trust.

13.06.   Transfer to New Plan.
         --------------------

         If the Employer establishes another plan providing comparable benefits
         to this Plan, such other plan is qualified under Code section 401 and
         the Employer intends to discontinue contributions under this Plan due
         to the liabilities created under the new plan, then the Employer may
         direct the Trustee to cause all Trust Funds to be transferred to such
         newly-created Plan. Thereafter, notwithstanding the provisions of the
         Plan Termination paragraph, all further obligations to Participants,
         their Beneficiaries or the Employer under this Plan shall cease.
         Neither the sponsor nor the Trustee shall be required to ascertain the
         proper applicability of such funds after the transfer is made.

13.07.   Bankruptcy.
         ----------

         If the Employer shall at any time be judicially declared bankrupt or
         insolvent, or in the event of dissolution, merger or consolidation,
         without any provision being made for the continuance of the Plan, the
         Plan shall be deemed to have terminated and the provisions of the Plan
         Termination article, above, shall become operative.

13.08.   Employer Merger.
         ---------------

         If the Employer merges or consolidates with or into another entity, or
         transfers substantially all of the assets of the Employer to another
         entity or dissolves, the Plan shall terminate on the effective date of
         such merger, consolidation, transfer or dissolution, and the provisions
         of the Plan Termination article, above, shall become operative.
         However, if the surviving entity resulting from such merger or
         consolidation, or the entity to which the assets have been transferred,
         adopts this Plan, the Plan shall continue and said entity shall succeed
         to all rights, powers and duties of the Employer hereunder. The
         employment of any Employee

                                     -101-
<PAGE>

         who is continued in the employ of such successor shall not be deemed to
         have been terminated for any Plan purposes.

13.09.   Suspension of Contributions.
         ---------------------------

         The Employer shall have the right, at any time, to suspend
         contributions hereunder. In such event, the Employer shall advise the
         Trustee to take such action on any Contracts as are considered proper
         in the circumstances in accordance with the rules of the Insurer.
         Should such suspension ripen into a complete discontinuance of
         contributions, each affected Employee shall become one hundred percent
         (100%) Vested retroactive to the time of such initial suspension of
         contributions, and the provisions of the Plan Termination article,
         above, shall become operative.

13.10.   Plan Merger.
         -----------

         In the event of any merger or consolidation with, or the transfer of
         assets or liabilities to any other plan, each Participant in the Plan
         shall (if the Plan then terminated) receive a benefit immediately after
         the merger, consolidation or transfer which is equal to or greater than
         the benefit that the Participant would have been entitled to receive
         immediately before the merger, consolidation or transfer (if the Plan
         then terminated).

              ARTICLE 14. PARTICIPANT-DIRECTED INDIVIDUAL ACCOUNTS

14.01.   Directed Individual Accounts Permitted.
         --------------------------------------

         If the Plan provides for individual accounts, the Plan Administrator,
         in its sole discretion, may determine that all Participants be
         permitted to direct the Trustee as to the investment of all or a
         portion of the interest in any one or more of their individual
         accounts. If such authorization is given by the Plan Administrator, the
         Participants may, subject to a procedure established by the Plan
         Administrator, in a uniform, nondiscriminatory manner, direct the
         Trustee in writing to invest the vested portion of their account(s) in
         the range of investment alternatives specified by the Plan
         Administrator.

14.02.   Separate Account Established.
         ----------------------------

         A separate Participant Directed Individual Account shall be established
         for each Participant who has directed an investment. Transfers between
         the Participant's other accounts and his Participant Directed
         Individual Account shall be charged and credited as the case may be to
         each

                                     -102-
<PAGE>

         account. The Participant Directed Individual Account shall not share in
         the Trust Fund investment results, but it shall be charged or credited
         as appropriate with the net earnings, gains, losses, expenses, taxes
         and unrealized appreciation or depreciation in market value, during
         each Plan Year attributable to such account, and it shall be subject to
         all of the other provisions of the Plan and this Trust. Neither shall
         the investment results of the Participant Directed Individual Accounts
         be included in the calculation of the Trust Fund investment results
         generally.

14.03.   Fiduciary Duty.
         --------------

         It is intended that such Participant Directed Individual Account
         qualify as a participant-directed individual account pursuant to ERISA
         section404(c) and the regulations thereunder. To the extent so directed
         by the Participants, the Plan Administrator and Trustees are relieved
         of their fiduciary responsibilities as provided in ERISA section 404.
         Neither the Trustees nor any other person shall be under any duty to
         question any direction from any Participant or to review any investment
         or to make any investment suggestion to any Participant, except as
         otherwise required by the regulations promulgated under ERISA
         section404(c).

                           ARTICLE 15. MISCELLANEOUS

15.01.   Limitation of Rights; Employment Relationship.
         ---------------------------------------------

         Neither the establishment of the Plan or the Trust, nor any
         modifications thereof, nor the creation of any fund or account, nor the
         payment of any benefits, shall be construed as giving to any
         Participant or other person any legal or equitable right against the
         Employer, the Plan Administrator or the Trustee except as provided by
         law; and in no event shall the terms of employment of any Employee be
         modified or in any way affected hereby.

15.02.   Release from Liability.
         ----------------------

         Any payment to any Participant, or to the Participant's legal
         representative or Beneficiary, in accordance with the provisions of the
         Plan, shall to the extent thereof be in full satisfaction of all claims
         hereunder against the Employer, the Plan Administrator and the Trustee,
         any of whom may require such Participant, legal representative or
         Beneficiary, as a condition precedent to such payment, to execute a
         receipt and release therefore in such form as shall be determined by
         the Employer, the Plan Administrator or the Trustee, as the case may
         be.

                                     -103-
<PAGE>

15.03.   Disputes.
         --------

         If a dispute arises as to the proper amount or recipient of any payment
         of benefits or delivery of any Contracts, the Plan Administrator, in
         the Plan Administrator's sole discretion, may withhold or cause to be
         withheld, such payment or delivery until the dispute has been settled
         by the parties concerned, or the Plan Administrator may deposit such
         funds or property with the court in an interpleader action brought
         under the law of the state having jurisdiction.

15.04.   Alienation.
         ----------

         A.       Subject to the exceptions provided below and as otherwise
                  specifically permitted by law, no assets or benefits under
                  this Plan and the Trust shall be subject in any manner to
                  anticipation, alienation, sale, transfer, assignment, pledge,
                  encumbrance or charge. Any attempt to so anticipate, alienate,
                  sell, transfer, assign, pledge, encumber or charge the same
                  shall be void. Nor shall any such benefits in any manner be
                  liable for or subject to the debts, contracts, liabilities or
                  torts of the person entitled to such benefits; provided,
                  however, that there shall not be taken into account any
                  voluntary and revocable assignment of not to exceed ten
                  percent (10%) of any benefit payment made by a Participant who
                  is receiving benefits under the Plan unless the assignment or
                  alienation is made for purposes of defraying plan
                  administration costs. This paragraph shall not apply to
                  assignments which were irrevocable on September2, 1974.

         B.       The prohibitions contained in this Alienation paragraph shall
                  not apply to the extent a Participant or Beneficiary is
                  indebted to the Plan, for any reason, under any provision of
                  this Plan or the Trust. At the time a distribution is to be
                  made to or for a Participant's or Beneficiary's benefit, such
                  proportion of the amount distributed as shall equal such
                  indebtedness shall be retained by the Trustee to apply against
                  or discharge such indebtedness. Prior to such application,
                  however, the Plan Administrator must give written notice to
                  the Participant or Beneficiary that such indebtedness is to be
                  so paid in whole or part from the Participant's Account. If
                  the Participant or Beneficiary does not agree that the
                  indebtedness is a valid claim against the Participant's
                  Account, the Participant or Beneficiary shall be entitled to a
                  review of the validity of the claim in accordance with
                  procedures provided in the Benefit Claims and Appeals article.

                                     -104-
<PAGE>

         C.       The prohibitions contained in this Alienation paragraph shall
                  not apply to a "qualified domestic relations order" as defined
                  in Code section414(p), and those other domestic relations
                  orders permitted to be so treated by the Plan Administrator
                  under the provisions of the Retirement Equity Act of 1984. The
                  Plan Administrator shall establish a written procedure to
                  determine the qualified status of domestic relations orders
                  and to administer distributions under such qualified orders.
                  Further, to the extent provided under a qualified domestic
                  relations order, a former spouse of a Participant shall be
                  treated as the surviving spouse for purposes of the Qualified
                  Joint and Survivor Annuity and Qualified Preretirement
                  Survivor Annuity provisions of the Plan and any spouse of the
                  Participant shall not be treated as the spouse of the
                  Participant for such purposes.

15.05.   Indemnity.
         ---------

         The Employer hereby agrees to indemnify and hold harmless each present
         and future Plan Administrator and their employees and all persons and
         corporations to whom duties are delegated hereunder, against all
         liabilities, costs and expenses, including, without limitation,
         attorneys' fees reasonably incurred by, or imposed upon, him in
         connection with, or arising out of, any claims, demands, suits, actions
         or proceedings in which such indemnified part may be involved, except
         in the case of the willful misconduct or gross negligence of any such
         indemnified party. Expenses shall include the cost of reasonable
         settlement made with the view to curtailment of costs of litigation.
         The foregoing right of indemnification shall not be exclusive of other
         rights to which such indemnified party may be entitled as a matter of
         law.

15.06.   Construction.
         ------------

         As used in this Plan, the masculine, feminine or neuter gender, the
         singular or plural number, and the use of the collective or the
         separate shall each be deemed to include the others whenever the
         context so indicates. The words "hereof", "herein" and "hereunder"
         refer to the entire Plan and not to a particular section.

15.07.   Applicable Law; Severability.
         ----------------------------

         The Plan and the Trust shall be construed, administered and governed in
         all respects by the laws of the United States of America to the extent
         applicable, otherwise, by the laws of the state of the Employer's
         principal

                                     -105-
<PAGE>

         place of business; provided, however, that if any provision is
         susceptible of more than one interpretation, such interpretation shall
         be given thereto as is consistent with this Plan and the Trust being
         qualified plan within the meaning of the Code and ERISA. If any
         provision of this Plan is held by a court of competent jurisdiction to
         be invalid or unenforceable, the remaining provisions hereof shall
         continue to be fully effective. This Plan may be reformed pursuant to
         the law of the state of the Employer's principal place of business.

15.08.   Agent for Service of Legal Process.
         ----------------------------------

         This Plan and the Trust may be served with legal process by service
         upon the Plan Administrator, the Employer or any Trustee.

                       ARTICLE 16. SAFE HARBOR PROVISIONS

16.01.   Rules of Employer Election and Application.
         ------------------------------------------

         A.       This Article will apply for any Plan Year in which the
                  Employer, by issuance of a Safe Harbor Notice, as described in
                  the Safe Harbor Notice section below, elects to administer
                  this Plan pursuant to the safe harbor provisions of Code
                  section 401(k)(12) and Code section 401(m)(11). A Safe Harbor
                  Notice will be deemed to be an amendment to this Plan.

         B.       To the extent that any other provision of the Plan is
                  inconsistent with the provisions of this Article, the
                  provisions of this Article shall control.

         C.       The purpose of this Article is to allow the Employer to take
                  advantage of the alternative methods of meeting the
                  nondiscrimination requirements pursuant to Code
                  section401(k)(12) and 401(m)(11).

16.02.   Definitions.
         -----------

         For any Plan Year in which the Employer elects to administer this Plan
         in accordance with this Article, the following additional Plan
         definitions will apply:

         A.       "ACP Test Safe Harbor" is the method described in the ACP Test
                  Safe Harbor Contributions section for satisfying the ACP test
                  of Code section 401(m)(2).

                                     -106-
<PAGE>

         B.       "ACP Test Safe Harbor Matching Contributions" are Matching
                  Contributions described in the ACP Test Safe Harbor
                  Contributions section.

         C.       "ADP Test Safe Harbor" is the method described in the ADP Test
                  Safe Harbor Contributions section for satisfying the ADP Test
                  of Code section 401(k)(12).

         D.       "ADP Test Safe Harbor Nonelective Contributions" are
                  Nonelective Contributions described in the ADP Test Safe
                  Harbor Contributions section.

         E.       "Safe Harbor Participant" means each Employee (including any
                  Highly or Non Highly Compensated Employee) who is eligible to
                  make an Elective Contribution at any time during the Plan Year
                  or who would have been eligible to make an Elective
                  Contribution but for a suspension due to a hardship
                  distribution or a statutory limitation (such as Code sections
                  402(g) and 415).

         F.       "ACP" means Actual Contribution Percentage as defined in the
                  Nondiscrimination Test for Matching Contributions section.

         G.       "ADP" means the Actual Deferral Percentage as defined in the
                  Nondiscrimination Limitations section.

16.03.   ADP Test Safe Harbor.
         --------------------

         For any Plan Year in which the Employer wishes to utilize the
         alternative method of satisfying the ADP Test under the Plan, the
         Employer must make an ADP Test Safe Harbor Nonelective Contribution to
         this Plan.

         A.       Amount of ADP Test Safe Harbor Nonelective Contributions.
                  --------------------------------------------------------

                  If the Employer elects to make an ADP Test Safe Harbor
                  Contribution to the Plan, the Employer will make an ADP Test
                  Safe Harbor Nonelective Contribution to the account of each
                  Safe Harbor Participant in an amount equal to three percent
                  (3%) of the Employees Compensation for the Plan Year.

         B.       Allocation Of ADP Test Safe Harbor Nonelective Contributions.
                  ------------------------------------------------------------

                  All ADP Test Safe Harbor Nonelective Contributions will be
                  allocated to the Participant's Safe Harbor Nonelective
                  Contributions Account maintained by the Employer under the

                                     -107-
<PAGE>

                  Plan; and under no circumstances will it be allocated with
                  regard to permitted disparity under Code section 401(l).

         C.       Vesting And Distribution Of ADP Test Safe Harbor Nonelective
                  ------------------------------------------------------------
                  Contributions.
                  -------------

                  ADP Test Safe Harbor Nonelective Contributions allocated to a
                  Participant's Safe Harbor Nonelective Contributions Account
                  will be one hundred percent (100%) vested at all times, and
                  can only be distributed upon the earlier of the date a
                  Participant incurs a Severance From Employment; the date a
                  Participant dies; the date a Participant retires as a result
                  of Disability Retirement; the date a Participant reaches age
                  fifty-nine and one-half (59-1/2) if on or after such date
                  in-service withdrawals are permitted under the Payment Of
                  Benefits article; or the date an event described in Code
                  section401(k)(10) occurs. ADP Test Safe Harbor Nonelective
                  Contributions may not be distributed because of hardship.

16.04.   ACP Test Safe Harbor Contributions.
         ----------------------------------

         In order to use the alternative method of satisfying the ACP Test, the
         Employer must meet the following requirements:

         A.       The Matching Contribution requirements under Code
                  section401(k)(12)(B)(i) or (iii);

         B.       The notice requirements under the Safe Harbor Notice section;

         C.       No Highly Compensated Employee may receive a greater rate of
                  Matching Contributions than a Non Highly Compensated Employee
                  at the same rate of Elective Contributions;

         D.       The rate of Matching Contributions cannot increase as a
                  Participant's Elective Contributions increase; and

         E.       Matching Contributions are not made on Elective Contributions
                  in excess of six percent (6%) of Compensation.

16.05.   Safe Harbor Notice.
         ------------------

         The term Safe Harbor Notice means a written notice provided by the
         Employer to all Safe Harbor Participants in accordance with the
         following provisions:

                                     -108-
<PAGE>

         A.       Contents Of Notice.
                  ------------------

                  A Safe Harbor Notice must be in writing in accordance with
                  section V.C. of Notice 98-52 (or any subsequent guidance
                  issued by the Internal Revenue Service). Except as otherwise
                  permitted, a Safe Harbor Notice must describe the "safe
                  harbor" formula to be used under the Plan.

         B.       General Timing Requirement.
                  --------------------------

                  The notice must be given at least thirty (30) days, but not
                  more than ninety (90) days, before the beginning of the Plan
                  Year to each Safe Harbor Participant who is eligible to
                  participate in this Plan. If an Employee becomes eligible
                  after the ninetieth day before the beginning of the Plan Year
                  and does not receive the notice for that reason, the notice
                  must be provided no more than ninety (90) days before the
                  Employee becomes eligible but not later than the date the
                  Employee becomes eligible.

         C.       Electronic Distribution Permitted.
                  ---------------------------------

                  Instead of issuing a written paper document, the notice may be
                  distributed to a Safe Harbor Participant through an electronic
                  medium which is reasonably accessible to the Safe Harbor
                  Participant and which satisfies the requirements imposed
                  thereon under Notice 2000-3, Q&A-7.

         D.       Election Periods.
                  ----------------

                  In addition to any other election periods provided under the
                  Plan, each Safe Harbor Participant must be able to make or
                  modify a deferral election salary under the Employer's 401(k)
                  Plan during the thirty (30) day period immediately following
                  receipt of the notices described in this paragraph.

                                     -109-
<PAGE>

IN WITNESS WHEREOF, the Employer has caused this Plan to be executed on this
____ day of _________ 2004.

                                       EMPLOYER
                                       --------

                                       NORTH VALLEY BANCORP

                                       By: /s/ MICHAEL J. CUSHMAN
                                           -------------------------------------
                                           Michael J. Cushman
                                           President & CEO

                                       On behalf of North Valley Bancorp and the
                                       following Participating Affiliated
                                       Employers:

                                         North Valley Bank
                                         Bank Processing, Inc.
                                         Six Rivers Bank
                                         Yolo Community Bank

                                     -110-

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