Document:

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                                                                    EXHIBIT 10.5

                          LEASE AND PURCHASE AGREEMENT

                                     Between

                                MICHAEL LITTRELL
                                    (Lessor)

                                       and

                             BANK OF SOUTHERN OREGON
                                    (Lessee)

                    Hornecker, Cowling, Hassen & Heysell, LLP
                                129 North Oakdale
                                   P 0 Box 670
                                Medford, OR 97501
                                 (541) 779-8550

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                          LEASE AND PURCHASE AGREEMENT

         THIS lease and purchase agreement, made and entered into this 3rd day
of December, 1998, by and between Michael Littrell, hereinafter called "Lessor",
and the Bank of Southern Oregon, an Oregon Corporation, hereinafter called
"Lessee".

                                                W I T N E S S E T H

RECITALS:

         A) Lessor is the owner of land with a building situated thereon at 300
E. Pine St., Central Point, Oregon, more particularly described in Exhibit "A",
hereinafter "Premises";

         B) Lessee desires to lease said land and building and to utilize the
same in connection with the operation of a business;

         C) Lessee desires to purchase the Premises on the terms as set forth
herein;

         NOW, THEREFORE, in consideration of the promises and covenants herein,
Lessor hereby leases and agrees to sell to Lessee and Lessee hereby leases and
agrees to purchase from Lessor the Premises described in Exhibit "A" upon the
following terms and conditions:

         1. TERM: This lease shall commence on March 1, 1999 and shall continue
thereafter for 36 months, terminating on February 28, 2002.

         2. RENTS AND LESSEE PAYMENTS:

         2.1 RENTAL: As rental for said property, Lessee promises and agrees to
pay to Lessor monthly in advance on the first day of each calendar month, the
sum of:

                  $4,040.00 per month for payments due March 1, 1999 to February
                  29, 2000;

                  $4,540 per month for payments due March 1, 2000 to February
                  28, 2001; and

                  $4,665 per month for payments due March 1, 2001 to February
                  28, 2002.

         2.2 ADDITIONAL PAYMENTS: From October 15, 1998, to February 28, 1999,
(the delay period) in consideration for the present execution of the Agreement,
the Lessee agrees to pay to Lessor half of:

         (a) an amount equal to all taxes relating to the Premises attributable
to the delay period;

         (b) an amount equal to all insurance relating to the Premises deemed
reasonable by Lessor attributable to the delay period;

         (c) an amount equal to all utility costs related to Premises during the
delay period; and

         (d) an amount equal to interest incurred by Lessor on Lessor's existing
mortgage of the Premises attributable to the delay period. Payments shall be
made to Lessor within ten (10) days following Lessor's presentation of the above
amounts to Lessee.

         3. ASSIGNMENT AND SUBLEASE: This lease may only be assigned,
transferred or sublet upon the express written consent of Lessor, which consent
may not be unreasonably withheld.

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         4. IMPROVEMENTS, ALTERATIONS, MAINTENANCE AND REPAIRS:

         4.1 DUTIES OF LESSOR: Lessor shall maintain and repair, as reasonably
needed, the roof and structural components of the exterior walls of the
Premises. Lessor shall not be responsible for any other maintenance, repairs or
alterations to the leased Premises or any improvements situated or constructed
thereon.

         4.2 DUTIES OF LESSEE: Lessee shall be responsible for all other
building maintenance and repairs, including, but not limited to, plumbing,
heating, ventilation, and air-conditioning. Lessee shall also maintain and
repair as needed, the entirety of the Premises including all landscaping and
parking lot area.

         4.3 IMPROVEMENTS: If Lessee desires to construct any improvements upon
the Premises, Lessee shall first obtain Lessor's consent, which consent will not
be unreasonably withheld. Upon the termination of the lease portion of the
Agreement, all such improvements, except for trade fixtures, portable buildings,
signage, lights and poles shall, at the option of the Lessor, become the
property of the Lessor, but shall be included in the purchase of the Premises by
the Lessee, as set forth in this Agreement.

         5. USE OF PREMISES: Following commencement of the Term of the lease,
Lessee:

         (a) may take possession and use the Premises for any lawful purpose;
and

         (b) may erect and display its normal and customary signs as long as any
such signs comply with all applicable laws related thereto.

         6. UTILITIES: All utilities shall be paid by Lessee.

         7. TAXES: Lessee shall pay all real property taxes levied and assessed
against the Premises and in addition, Lessee shall pay all taxes on any
improvements situated, constructed and/or affixed upon the leased Premises and
any additions or alterations thereto, promptly as the same become due.

         Lessor shall, at the expense of Lessee, make all reasonable efforts to
appeal the tax assessed value of the Premises in order to reduce the assessed
value to $375,000. The outcome of said effort by Lessor shall not remove or
relieve any duty of the Lessee herein contained. If, as a result of Lessor's
actions under this Section, the property tax assessment is reduced for a period
of time in which the Lessee has paid any portion of the higher assessed amount,
the Lessee shall be entitled to an offset for the difference, against any amount
then owing, or to be owed under this Agreement, to Lessor.

         In addition, if an assessment for a public improvement is made against
the Premises, Lessor may bond the assessment or cause it to be paid in
installments, for the longest period of time permitted by the governing
authority, and Lessee shall pay such installment during the term of the lease as
if they were part of the real property taxes. Lessor may also pay any such
assessment in full, it being understood and agreed that if Lessor elects to pay
such assessment(s) in full, Lessee shall still be responsible for paying the
pro-rated annualized assessment payment that would have been due had Lessor not
chosen to pay said assessment in full.

         Lessee's share of real property taxes and assessments for the years in
which this lease commences or terminates shall be prorated based upon the
portion of the tax year the lease is in effect.

         8. LESSEE'S COVENANTS: Lessee covenants and agrees with Lessor as
follows:

         (a) That it will, at its sole cost and expense, keep and maintain the
said leased Premises in a clean and sanitary condition.

         (b) That it will keep the Premises free and clear of all liens and
encumbrances of every kind and nature.

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         (c) That it will conform to all applicable laws and regulations of any
public authority affecting the Premises and the use, and correct at Lessee's own
expense any failure of compliance created through Lessee's fault or by reason of
Lessee's use and occupancy.

         (d) That it will indemnify and save Lessor harmless of all liability of
every kind and nature occasioned by any act or omission on its part, or on the
part of its agents, servants, customers, subtenants and licensees in connection
with the use and occupancy of the leased Premises.

         (e) That it will accept the Premises in its "as is" condition upon
occupancy.

         (f) That it will refrain from any activity that would make it
impossible to insure the Premises against casualty.

         (g) That it will refrain from any use that would be reasonably
offensive to owners or users of neighboring premises or that would tend to
create a nuisance or damage the reputation of the premises.

         (h) That it will refrain from loading the electrical system or floors
beyond the point considered safe by a competent engineer or architect selected
by Lessor.

         (i) That it will refrain from making any marks on or attaching any
sign, insignia, antenna, aerial, or other device to the exterior or interior
walls, windows, or roof of the Premises without the written consent of Lessor,
which consent will not be unreasonably withheld, except such signage as is
allowed in Section 5(b) of this Agreement.

         (j) That it will not cause or permit any Hazardous Substance to be
spilled, leaked, disposed of, or otherwise released on or under the Premises.
Lessee may store such Hazardous Substances on the Premises only in quantities
necessary to satisfy Lessee's reasonably anticipated needs. Lessee shall comply
with all Environmental Laws and orders of any governmental authorities having
jurisdiction under any environmental law and shall obtain, keep in effect and
comply with all governmental permits and authorizations required by
environmental laws with respect to such Premises or Lessee's operations. Upon
the expiration or termination of this lease, Lessee shall remove all Hazardous
Substances from the Premises. The term "Environmental Law" shall mean any
federal, state, or local statute, regulation, or ordinance or any judicial or
other governmental order pertaining to the protection of health, safety or the
environment. The term "Hazardous Substance" shall mean any hazardous, toxic,
infectious or radioactive substance, waste, and material as defined or listed by
any Environmental Law and shall include, without limitation, petroleum oil and
its fractions.

         (k) That it will keep the Premises in first-class repair, operating
condition, working order, and appearance.

         9. DEFAULT OF LESSEE: If Lessee shall be in arrears in the payment of
rent or other required payment hereunder, or shall fail or neglect to perform
any of the other terms, covenants or conditions herein contained on its part to
be kept and performed, Lessor, after giving ten (10) days written notice
specifying the particular respects in which Lessee is in default, immediately or
at any time thereafter while such default or neglect continues, may exercise any
or all remedies provided by this Agreement.

         9.1 REASONABLE TIME TO REPAIR: Lessee shall not be in default if,
within the above stated ten (10) day period, Lessee has commenced reasonable
repairs or compliance which cannot be reasonably completed within the ten (10)
day period and the default is entirely cured within a reasonable time.

         9.2 REMEDIES OF LESSOR: The remedies set forth herein shall not be the
exclusive remedies in case of default, but Lessor shall have such other and
further rights and remedies as may be available, either in law or in equity.
         Lessor's remedies shall include, but are in no way limited to:

         (a) Lessor may lawfully terminate the tenancy and enter upon said
Premises and expel Lessee, and those claiming under Lessee, and remove Lessee's
effects without being guilty in any manner of trespass or conversion; and

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         (b) Lessor may lawfully terminate the tenancy and at the sole
discretion of the Lessor:

                  (b)(1) declare the purchase and sale obligations of this
Agreement null and void, relieving Lessor of his obligation to sell to Lessee
and relieving Lessee of its obligation to purchase the Premises, or

                  (b)(2) accelerate the purchase and sale obligations of this
Agreement and deem the date for purchase for the purposes of Section 23(c), to
be the date of default.

         (c) The foregoing remedies are not Lessor's exclusive remedies, but
Lessor shall have such other and different remedies as it might otherwise have
either at law or in equity.

         10. DEFAULT BY LESSOR: In the event Lessor shall default in the terms
of this lease, Lessee shall have any and all rights and remedies as may be
available to it, either in law or in equity.

         11. QUIET ENJOYMENT: Lessee, upon performing the covenants and
observing the terms and conditions of this Agreement, shall have the peaceful
enjoyment of the Premises without hindrance or disturbance by Lessor or any
person claiming through or under Lessor, or any other person having or claiming
paramount title except that Lessor shall have the further right to enter upon
the Premises at any time to determine Lessee's compliance with this lease.

         12. HOLDOVER: If Lessee does not vacate the Premises at the time
required, Lessor shall have the option to treat Lessee as a tenant from month to
month, subject to all of the provisions of this Lease except the provision of
Term, or to eject Lessee from the Premises and recover damages caused by
wrongful holdover. Failure of Lessee to remove fixtures, furniture, furnishings,
or trade fixtures that Lessee is required to remove under this Agreement shall
constitute a failure to vacate to which this Section shall apply if the property
not removed will substantially interfere with occupancy of the Premises by
another tenant or with occupancy by Lessor for any purpose, including
preparation for a new tenant.

         If a month-to-month tenancy results from a holdover by Lessee under
this Section 11, the tenancy shall be terminable at the end of any monthly
rental period on written notice from Lessor given not less than ten (10) days
prior to the termination date which shall be specified in the notice. Lessee
waives any notice that would otherwise be provided by law with respect to a
month-to-month tenancy.

         13. EMINENT DOMAIN:

         13.1 PARTIAL TAKING: If a portion of the Premises is condemned and
Section 13.2 does not apply, the lease shall continue on the following terms:

         (a) Lessor shall be entitled to all of the proceeds of condemnation,
and Lessee shall have no claim against Lessor as a result of the condemnation.

         (b) Lessor shall proceed as soon as reasonably possible to make such
repairs and alterations to the Premises as are necessary to restore the
remaining Premises to a condition as comparable as reasonably practicable to
that existing at the time of the condemnation.

         (c) After the date on which title vests in the condemning authority or
an earlier date on which alterations or repairs are commenced by Lessor to
restore the balance of the Premises in anticipation of taking, the rent shall be
reduced in proportion to the reduction in value of the Premises as an economic
unit on account of the partial taking.

         (d) If a portion of Lessor's property not included in the Premises is
taken, and severance damages are awarded on account of the Premises, or an award
is made for detriment to the Premises as a result of activity by a public body
not involving a physical taking of any portion of the Premises, this shall be
regarded as a partial

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condemnation to which Sections 13.1 and 13.3 apply, and the rent shall be
reduced to the extent of reduction in rental value of the Premises as though a
portion had been physically taken.

         13.2 TOTAL TAKING: If a condemning authority takes all of the Premises
or a portion sufficient to render the remaining premises reasonably unsuitable
for the use that Lessee was then making of the Premises, the lease shall
terminate and Lessee shall purchase the Premises pursuant to this Agreement as
of the date the title vests in the condemning authorities. Lessor shall be
entitled to all of the proceeds of condemnation, and Lessee shall have no claim
against Lessor as a result of the condemnation.

         13.3 SALE IN LIEU OF CONDEMNATION: Sale of all or part of the Premises
to a purchaser with the power of eminent domain in the face of a threat or
probability of the exercise of the power shall be treated for the purposes of
this Section 13 as a taking by condemnation. Any sale as contemplated in this
Section 13.3 shall require the consent of Lessee, such consent shall not be
unreasonably withheld.

         14. NONWAIVER: Waiver by either party of strict performance of any
provision of this lease shall not be a waiver of or prejudice the party's right
to require strict performance of the same provision in the future or of any
other provision.

         15. INSURANCE:

         15.1 LIABILITY INSURANCE: Before going into possession of the Premises,
Lessee shall procure and thereafter during the term of the lease shall continue
to carry commercial general liability coverage in an amount of not less than
$1,000,000 minimum combined single limit. Such insurance shall cover all risks
arising directly or indirectly out of Lessee's activities on or any condition of
the Premises whether or not related to an occurrence caused or contributed to by
Lessor's negligence. Such insurance shall name Lessor as an additional insured.
Certificates evidencing such insurance and bearing endorsements requiring ten
(10) days written notice to Lessor prior to any change or cancellation shall be
furnished to Lessor prior to Lessee's occupancy of the Premises.

         15.2 FIRE INSURANCE: Lessee shall keep the Premises insured at Lessee's
expense against fire and other risks covered by a standard fire insurance policy
to the full insurable value thereof with an endorsement for extended coverage
naming Lessor as loss payee. Neither party shall be liable to the other (or to
the other's successors or assigns) for any loss or damage caused by fire or any
of the risks enumerated in a standard fire insurance policy with an extended
coverage endorsement, and in the event of insured loss, neither party's
insurance company shall have a subrogated claim against the other. This waiver
shall be valid only if the insurance policy in question expressly permits waiver
of subrogation or if the insurance company agrees in writing that such a waiver
will not affect coverage under the policies. Each party agrees to use best
efforts to obtain such an agreement from its insurer if the policy does not
expressly permit a waiver of subrogation.

         16. LIENS: Lessee agrees that at all times during the term of this
lease it will pay as due all claims for work done on and for services rendered
or material furnished to the Premises, and shall keep the Premises free from any
liens. If Lessee fails to pay any such claims or to discharge any lien, Lessor
may do so and collect the cost as additional rent. Any amount so added shall
bear interest at the rate of 9% per annum from the date expended by Lessor and
shall be payable on demand. Such action by Lessor shall not constitute a waiver
of any right or remedy which Lessor may have on account of Lessee's default.
Lessee may withhold payment of any claim in connection with a good-faith dispute
over the obligation to pay, as long as Lessor's property interests are not
jeopardized. If a lien is filed as a result of nonpayment, Lessee shall, within
ten (10) days after knowledge of the filing, secure the discharge of the lien or
deposit with Lessor cash or sufficient corporate surety bond or other surety
satisfactory to Lessor in an amount sufficient to discharge the lien plus any
costs, attorney fees, and other charges that could accrue as a result of a
foreclosure or sale under the lien.

         17. CONDITIONS PRECEDENT: This lease is conditioned upon the following
terms:

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         (a) Lessee receiving information affecting the Premises;

         (b) Lessee's review and approval of the status of the title to the
Premises, including restrictive covenants;

         (c) Lessee's inspection and approval of the Premises;

         (d) State of Oregon and FDIC approval for Lessee to open a branch bank
at the Premises;

         Within thirty (30) days of the execution of this Agreement, (within
sixty (60) days for Section 17(d)) Lessee shall notify Lessor of the
satisfaction, waiver, or failure of the above conditions. Lessee shall make all
reasonable efforts to satisfy the above conditions and failure to do so shall be
deemed a waiver of said condition. Nothing in this Section shall relieve or
reduce Lessee's duties pursuant to Section 2.2 of this Agreement.

         18. MISCELLANEOUS:

         18.1 SUCCESSORS AND ASSIGNS: All of the covenants, agreements,
conditions and terms contained in this Agreement shall be binding upon and inure
to the benefit of the heirs, executors, administrators, successors and assigns
respectively of Lessor and Lessee. This paragraph shall not be construed as a
consent by Lessor to the assignment of this lease, or any interest in the leased
Premises.

         18.2 GOVERNING LAW: The parties agree that this Agreement shall be
construed and governed in accordance with the laws of the State of Oregon.

         18.3 SEVERABILITY: In case any one or more of the provisions contained
in this Agreement for any reason is held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect
any other provision hereof, and this Agreement shall be construed as if such
invalid, illegal or unenforceable provision had never been contained herein.

         19. ENTIRE AGREEMENT: This Agreement contains the entire Agreement
between the parties and, except as otherwise provided, can be changed, modified,
amended, or terminated only by an instrument in writing executed by the parties.
It is mutually acknowledged and agreed by Lessor and Lessee that there are no
verbal agreements, representations, warranties, or other understandings
affecting this Agreement.

         20. TIME OF ESSENCE: Time is of the essence of this Agreement and a
failure to enforce any of the terms and provisions hereof by either party shall
not constitute a waiver of the right to insist upon strict compliance with such
terms and conditions in the future.

         21. LITIGATION EXPENSE: In the event of litigation between the parties
concerning any of the terms or provisions of this lease and purchase or any of
the rights or remedies of the parties hereunder, the prevailing party in such
litigation shall be entitled to recover from the other party such amount as the
court may determine reasonable as attorneys' fees in such suit or action at
trial or any appeal therefrom.

         22. NOTICES: Any notice required or given hereunder shall be sufficient
if delivered either personally to the parties or sent by United States mail to:

         Lessor at:                    Lessee at:
         P.O. Box 1106                 1455 East McAndrews
         Medford, OR 97501             Medford, OR 97504

or at such other address as the parties may hereafter specify in writing.

<PAGE>   8

         23. TERMS OF PURCHASE: Lessee shall purchase the real property
described on Exhibit "A" attached hereto, under the following terms and
conditions:

         (a) Lessee shall be obligated to purchase all of the property described
in Exhibit "A", and Lessor shall be obligated to sell the property to Lessee,
for the price and in the manner herein set forth.

         (b) Lessee shall purchase the Premises no earlier than March 1, 2001
and no later than March 1, 2002.

         (c) Lessee shall provide written notification to Lessor of the date,
subject to the above terms, it chooses to purchase the Premises.

         (d) The purchase price for the real property described in Exhibit "A"
shall be the sum of:

                  (d)(1) $550,000 payable in U.S. currency at the time of
closing, less

                  (d)(2) any amount paid to Lessor pursuant to Section 13
(Eminent Domain) of this Agreement, with any negative sum remitted to Lessee.

         (e) Upon Lessee's notification to Lessor, the transaction shall close
at Jackson Title Co. within sixty (60) days or at such other time as may be
mutually agreed upon by the parties in writing. Both parties further agree that:

                  (e)(1) The real property and improvements, if any, will be
sold "AS IS" and free and clear of all liens and encumbrances which affect
marketability of title, except for easements, declarations, covenants, and
restrictions of record as of the effective date of this Agreement.

                  (e)(2) All lease payments shall be prorated between the
parties as of the closing date.

                  (e)(3) Lessor will, within fifteen (15) days of Lessee's
notice of purchase, provide Lessee with a preliminary owner's title report and
at closing shall provide Lessee with a purchaser's policy of title insurance in
the amount of $550,000.00.

                  (e)(4) The closing escrow charges shall be shared equally by
the parties. All recording fees shall be paid by Lessee, however, Lessor shall
pay the basic rate portion of title insurance.

                  (e)(5) This sale and purchase agreement may only be assigned
or transferred by Lessee upon Lessor giving his consent in writing, which
consent may not be unreasonably withheld. Lessor may transfer or assign its
rights herein.

                  (e)(6) At closing, Lessee shall deliver to Lessor the total
purchase price. Also at closing, Lessor shall deliver to Lessee its standard
warranty deed to the Premises, as described in Exhibit "A".

                  (e)(7) Parties agree to execute such escrow instructions
reasonably required to complete this transaction.

         (f) Lessee agrees to reasonably assist Lessor, at no expense or
liability to Lessee, in a 1031 exchange or similar "like-kind" transaction if so
desired by Lessor.

         THIS INSTRUMENT WILL NOT ALLOW THE USE OF THE REAL PROPERTY DESCRIBED
IN THIS INSTRUMENT IN VIOLATION OF APPLICABLE LAND USE LAWS AND REGULATIONS. THE
PROPERTY DESCRIBED IN THIS INSTRUMENT MAY NOT BE WITHIN A FIRE PROTECTION
DISTRICT PROTECTING STRUCTURES. THE PROPERTY IS SUBJECT TO LAND USE LAWS AND
REGULATIONS, WHICH, IN

<PAGE>   9

FARM OR FOREST ZONES, MAY NOT AUTHORIZE CONSTRUCTION OR SITING OF A RESIDENCE
AND WHICH LIMIT LAWSUITS AGAINST FARMING OR FOREST PRACTICES AS DEFINED IN ORS
30.930 IN ALL ZONES. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, PERSON
ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR
COUNTY PLANNING DEPARTMENT TO VERIFY APPROVED USES AND EXISTENCE OF FIRE
PROTECTION FOR STRUCTURES.

         IN WITNESS WHEREOF, the parties hereto have executed this agreement the
day and year first above written.

LESSOR                                            LESSEE:

                                                  BANK OF SOUTHERN OREGON

/s/ Michael Littrell                              /s/ John L. Anhorn
-----------------------------------               ------------------------------
Michael Littrell                                  John L. Anhorn, President/CE0

STATE OF OREGON            )
                           )       ss
County of Jackson          )

         On this 30 day of November, 1998, personally appeared before me Michael
Littrell, and acknowledged said instrument to be his voluntary act and deed.

                                                  /s/ Notary
                                                  ------------------------------
                                                  Notary Public for Oregon

STATE OF OREGON            )
                           )       ss
County of Jackson          )

         On this 3rd day of December, 1998, personally appeared before me John
L. Anhorn, President and CEO of Bank of Southern Oregon, and acknowledged said
instrument to be his voluntary act and deed.

                                                  /s/ Notary
                                                  ------------------------------
                                                  Notary Public for Oregon
                                                  My Commission Expires:

<PAGE>   10

                                    EXHIBIT A
                                    ---------

                                Legal Description

The land referred to herein is situated in the Town of Central Point, County of
Jackson, State of Oregon, and is more particularly described as follows:

         Lots 1, 2, 3, 4, 5, 6, 7 and 8, Block 2 of the Original Town (now City)
         of Central Point, Jackson County, Oregon.<PAGE>   1

                                                                    EXHIBIT 10.6
                                    AGREEMENT
                                    ---------

         THIS AGREEMENT is made and entered into this _____ day of________,
2000, by and between the PREMIERWEST BANCORP, an Oregon corporation, BANK OF
SOUTHERN OREGON, an Oregon-chartered bank and corporation, and Neil Zick,
hereinafter referred to as "EMPLOYEE";

                              W I T N E S S E T H:
                              --------------------
R E C I T A L S :
-----------------

         1. PREMIERWEST BANCORP and BANK OF SOUTHERN OREGON are parties to an
Agreement and Plan of Merger and Share Exchange with United Bancorp, an Oregon
corporation, and Douglas National Bank, a national bank and wholly owned
subsidiary of United Bancorp, which agreement is dated as of October 7, 1999,
and amended as of December 14, 1999. Under the Agreement and Plan of Share
Exchange. (i) BANK OF SOUTHERN OREGON will become a wholly owned subsidiary of
PREMIERWEST BANCORP and shareholders of BANK OF SOUTHERN OREGON will instead be
and become shareholders of PREMIERWEST BANCORP; (ii) BANK OF SOUTHERN OREGON
will change its name to "PremierWest Bank" effective upon completion of the
holding company reorganization and the other transactions contemplated by the
Agreement and Plan of Merger and Share Exchange; (iii) United Bancorp will merge
with and into PREMIERWEST BANCORP; and (iv) Douglas National Bank will merge
with and into BANK OF SOUTHERN OREGON.

         2. EMPLOYEE has the necessary expertise and experience and is willing
to serve as the Executive Vice President/Chief Administrative Officer of the
BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP.

         For the reasons recited above and in consideration of the following
mutual promises and covenants, the parties hereby agree as follows:

                                   SECTION ONE
                                   EMPLOYMENT

         BANK of SOUTHERN OREGON and PREMIERWEST BANCORP hereby employs EMPLOYEE
to act as the Executive Vice President/Chief Administrative Officer of BANK OF
SOUTHERN OREGON and PREMIER WEST BANCORP. EMPLOYEE hereby accepts such
employment upon the terms and conditions hereinafter set forth. This Agreement
supersedes and extinguishes any rights that EMPLOYEE has or may have under the
change of control retention agreement between EMPLOYEE and United Bancorp and
Douglas National Bank.

                                   SECTION TWO
                               TERMS OF EMPLOYMENT

         The term of employment shall begin on the date in the year 2000 that
the acquisition of United Bancorp by PREMIERWEST BANCORP becomes effective under
the terms of the Agreement and Plan of Merger and Share Exchange and shall
extend for two (2) years thereafter unless sooner terminated as provided for
herein. This Agreement shall not be effective if the acquisition of United
Bancorp by PREMIERWEST BANCORP does not become effective under the Agreement and
Plan of Merger and Share Exchange during the year 2000.

                                  SECTION THREE
                                  COMPENSATION

         For all the services to be rendered by EMPLOYEE to BANK OF SOUTHERN
OREGON and PREMIERWEST BANCORP, in any capacity, including those services
provided as Executive Vice President/Chief Administrative Officer or any other
duties of similar nature assigned to EMPLOYEE by the directors of BANK OF
SOUTHERN OREGON and/or PREMIERWEST BANCORP, BANK OF SOUTHERN OREGON and

<PAGE>   2

PREMIERWEST BANCORP agrees to pay EMPLOYEE a salary of $140,000 per year for the
two-year term of this Agreement. This shall be referred to as the "basic
salary". Such basic salary shall be paid to EMPLOYEE in semimonthly installments
of $5,833.34 on the 15th of each month and on the last day of each month. The
first such semimonthly installment of $5,833.34 shall be paid on the 15th of the
first month in the year 2000 that the term of this Agreement commences and the
same bi-monthly installments of $5,833.34 shall be paid thereafter during the
term of this Agreement. EMPLOYEE's initial salary payment shall be prorated.

                                  SECTION FOUR
                                     DUTIES

         EMPLOYEE accepts employment with BANK OF SOUTHERN OREGON and
PREMIERWEST BANCORP on the terms and conditions set forth in this Agreement, and
agrees to devote his full time employment to the performance of his duties under
this Agreement. Such duties include, but are not limited to: 1) all data
processing functions including, but not limited to, ATM, internet banking,
mainframe processing, proof processing, communications, liaison for bank
operations; 2) property management, purchasing and supplies; and 3) customer
service.

         EMPLOYEE shall perform such specific duties and shall exercise such
specific authority as may be assigned to EMPLOYEE from time to time by the Board
of Directors of BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP. In performing
such duties, EMPLOYEE shall be subject to the direction and control of the
Executive Management of BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP.
EMPLOYEE further agrees that in all aspects of such employment EMPLOYEE shall
comply with all applicable laws and regulations and with the policies of BANK OF
SOUTHERN OREGON and PREMIERWEST BANCORP from time to time established and shall
perform his duties faithfully, intelligently and honestly to the best of his
ability and in the best interest of BANK OF SOUTHERN OREGON and PREMIERWEST
BANCORP.

                                  SECTION FIVE
                               ADDITIONAL BENEFITS

         In addition to the basic salary set forth above Bank agrees to provide
EMPLOYEE with the following benefits:

         A. EMPLOYEE will receive fringe benefits offered to BANK OF SOUTHERN
OREGON and PREMIERWEST BANCORP employees. These include health insurance
coverage, participation in incentive compensation and 401(k) plans, sick leave
benefits and paid vacation benefits. The terms and conditions of such benefits
shall be as established from time to time by the board of directors of BANK OF
SOUTHERN OREGON and PREMIERWEST BANCORP. Notwithstanding the foregoing, EMPLOYEE
will be allowed not less than four weeks of paid vacation per year on the terms
and conditions provided in BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP's
vacation pay benefit plan. EMPLOYEE will be evaluated for possible bonus
concurrently with other executives.

         B. In accordance with its policies and procedures established from time
to time by its board of directors, BANK OF SOUTHERN OREGON and PREMIERWEST
BANCORP will reimburse EMPLOYEE for reasonable business expenses, including
travel expenses.

         C. EMPLOYEE is currently utilizing vehicle provided to him by employer.
When said car is in need of replacement, as determined in the sole discretion by
BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP, BANK OF SOUTHERN OREGON and
PREMIERWEST BANCORP will purchase a vehicle for use by EMPLOYEE during the term
of his employment. The vehicle shall have a maximum cost of $35,000.00. BANK OF
SOUTHERN OREGON and PREMIERWEST BANCORP will pay all expenses associated with
the maintenance, repair and operation of the vehicle, including insurance
coverage. EMPLOYEE's year end W-2 will include the value of the personal use of
the vehicle as required by IRS regulations.

<PAGE>   3

                                   SECTION SIX
                                   TERMINATION

1) EMPLOYEE acknowledges that he is an "at will" employee and that he may be
dismissed at any time, with or without cause, for any reason whatsoever.
EMPLOYEE may terminate this Agreement, at any time, for any reason whatsoever,
upon written notice to BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP. For the
purposes of this Agreement, termination of EMPLOYEE's employment by BANK OF
SOUTHERN OREGON and PREMIERWEST BANCORP for cause shall include, but is not
limited to, the following:

         A. EMPLOYEE fails or refuses to comply with the policies, standards,
and regulations of BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP as
established by the Board of Directors from time to time.

         B. EMPLOYEE commits an act of insubordination, fraud, dishonesty,
material misconduct, gross negligence, gross neglect of his duties, continued
and repeated insobriety, or conviction of any crime constituting a felony;

         C. Conduct which is seriously prejudicial to BANK OF SOUTHERN OREGON
and PREMIERWEST BANCORP including, but not limited to, neglect of duty or breach
of this Agreement.

         D. EMPLOYEE suffers a permanent disability. For the purposes of this
Agreement "permanent disability" shall be defined as EMPLOYEE's inability due to
physical or mental illness, or other cause, to perform the essential job
functions and duties of EMPLOYEE under this Agreement for a period of 90 days.
Permanent disability shall be determined by a licensed physician hired by BANK
OF SOUTHERN OREGON and PREMIERWEST BANCORP.

         E. The death of EMPLOYEE. In the event of the death of EMPLOYEE, BANK
OF SOUTHERN OREGON and PREMIERWEST BANCORP shall pay to EMPLOYEE's estate the
salary which would be otherwise payable to EMPLOYEE through the end of the month
in the month in which EMPLOYEE's death occurs.

         F. A violation of the State of Oregon or Federal Banking Rules and
Regulations of such a nature as to disqualify EMPLOYEE from his duties as set
forth herein.

         In the event EMPLOYEE is terminated from employment by BANK OF SOUTHERN
OREGON and PREMIERWEST BANCORP for cause, or in the event EMPLOYEE quits the
employment of BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP without cause,
then EMPLOYEE will not be entitled to any severance pay or other benefits
following the date of termination.

2) For the purposes of this Agreement, termination by EMPLOYEE for cause shall
include, but is not limited to, the following:

         A. EMPLOYEE suffering a permanent disability as defined above.

         B. EMPLOYEE is required by the Board of Directors of Bank to perform
any illegal or fraudulent act.

         C. A breach by BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP of the
provisions of this Agreement.

3) In the event (1) EMPLOYEE's employment is not renewed at the expiration of
this agreement; (2) EMPLOYEE is terminated by Bank without cause; or (3)
EMPLOYEE quits with or without cause; then EMPLOYEE shall be entitled to the
following benefits:

<PAGE>   4

         A. The payment of $8,333.34 per month for the 12 months following the
date of termination. Said payments shall be paid semimonthly in accordance with
BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP's customary payroll practices
and deductions shall be made by BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP
as required by law. In the event EMPLOYEE dies before receiving all severance
payments provided for herein, such remaining payments, if any, shall be paid to
EMPLOYEE's estate or heirs at law as the case may be.

         B. In the event of a sale or change of control of the BANK OF SOUTHERN
OREGON and PREMIERWEST BANCORP, the guaranteed payment will be reduced by the
amounts received by EMPLOYEE through non-competition payments and/or other
benefits and payments made by the succeeding or acquiring entity. EMPLOYEE will
be entitled to any additional compensation received by EMPLOYEE after credit to
BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP for guaranteed payments.

         C. Payment of these benefits is contingent upon EMPLOYEE signing a
complete release of liability to BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP
for termination of his employment and all claims arising through the date of
termination of his employment, said release to be in the form attached hereto as
Exhibit "A". Notwithstanding the above, if EMPLOYEE goes to work for or consults
with another entity which is in competition with BANK OF SOUTHERN OREGON and
PREMIERWEST BANCORP, then BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP will
not be required to make any further payments hereunder unless EMPLOYEE's
competitive work or consultation is not primarily located in Jackson or Douglas
County and does not result in the disclosure or utilization of any information
relating to customer lists, prices, secrets, advertising, loans, accounts, or
any other confidential information, knowledge or secrets that EMPLOYEE acquired
from BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP or any of its affiliates or
subsidiaries.

                                  SECTION SEVEN
                                     NOTICES

         Written notice shall be deemed to have been received by the respective
parties when mailed by both first class and certified mail, return receipt
requested to the following addresses:

BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP
P.O. Box 40
Medford, OR  97501

EMPLOYEE
P. O. Box 1414
Roseburg, OR 97470

         These addresses will remain in effect until the respective party has
notified the other in writing of a change of address.

                                  SECTION EIGHT
                                  RESTRICTIONS

         In the event EMPLOYEE's employment is terminated for any reason or no
reason at all or if EMPLOYEE's employment is not extended upon the expiration of
the term of this Agreement, for a period of one (1) year after such termination
or expiration of this agreement, EMPLOYEE agrees that the following restrictions
and limitations shall apply to him:

         A. EMPLOYEE will not, on behalf of himself or on behalf of any other
person, firm, corporation, limited liability company or any other entity, call
on any of the customers of BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP in
any county where BANK OF SOUTHERN OREGON and PREMIERWEST

<PAGE>   5

BANCORP maintains an office or branch, or of any of its affiliates or
subsidiaries for the purpose of soliciting services and/or providing to any of
the customers any banking services or other products or services provided by
BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP, nor will he, in any way,
directly or indirectly, for himself or on behalf of any other person, firm,
corporation, limited liability company or other entity, solicit, divert or take
away any customer of BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP, its
affiliates or subsidiaries. For the purposes of this Agreement the phrase "call
on" includes, but is not limited to, contacting a customer in person, by
telephone, by facsimile transmission, by letter, by electronic transmission or
by any other means calculated to make contact with such customer of BANK OF
SOUTHERN OREGON and PREMIERWEST BANCORP.

         B. EMPLOYEE will not, on behalf of himself or on behalf of any other
person, firm, corporation, limited liability company or any other entity,
solicit or hire any of the employees of BANK OF SOUTHERN OREGON and PREMIERWEST
BANCORP or any of its affiliates or subsidiaries.

         C. EMPLOYEE will not, directly or indirectly (1) be employed with; (2)
be a partner, officer, member, or director of; or (3) own any interest in; any
banking business or in any other business that competes with a business
conducted by BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP within Jackson and
Douglas Counties of the State of Oregon and in any other county in which BANK OF
SOUTHERN OREGON and PREMIERWEST BANCORP maintains a full service branch.

         EMPLOYEE acknowledges that the covenants set forth in this section do
not impose unreasonable restrictions or work a hardship on EMPLOYEE, are
essential to the willingness of BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP
to employ EMPLOYEE, are necessary and fundamental to the protection of the
business conducted by BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP, and are
reasonable as to scope, duration, and territory.

                                  SECTION NINE
                            CONFIDENTIAL INFORMATION

         Except for required disclosures to the SEC, both during and after
termination of employment, EMPLOYEE agrees, that in addition to any other
limitation contained in this Agreement, regardless of the circumstances of the
termination of employment, he will not communicate to any person, firm,
corporation, limited liability company or other entity, any other information
relating to customer lists, prices, secrets, advertising, loans, accounts, nor
any confidential knowledge, information or secrets that EMPLOYEE may from time
to time acquire with respect to the business of BANK OF SOUTHERN OREGON and
PREMIERWEST BANCORP, or any of its affiliates or subsidiaries. EMPLOYEE agrees
upon termination of his employment that he will not retain originals or copies
of any of the business records, information or documents of BANK OF SOUTHERN
OREGON and PREMIERWEST BANCORP, in any form whatsoever, including but not
limited to information on computer disks and hard drives.

         Notwithstanding the above, disclosure is authorized only when done in
the course and scope of EMPLOYEE's employment or as required by law.

                                   SECTION TEN
                                INJUNCTIVE RELIEF

         EMPLOYEE hereby acknowledges that the services to be rendered under
this Agreement are of unique, special and extraordinary character that would be
difficult or impossible for BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP to
replace, and by reason of such difficulty, EMPLOYEE hereby agrees that for
violation of any of the provisions of this Agreement, BANK OF SOUTHERN OREGON
and PREMIERWEST BANCORP shall, in addition to any of the rights or remedies
available under this Agreement, at law or otherwise,

<PAGE>   6

be entitled to an injunction to be issued by a court of competent jurisdiction
enjoining and restraining EMPLOYEE from committing any violation of this
Agreement and EMPLOYEE hereby consents to the issuance of such injunction.

                                 SECTION ELEVEN
        COMMUNICATIONS TO BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP

         A. From the time this Agreement commences until the termination of this
Agreement, EMPLOYEE shall communicate and channel to BANK OF SOUTHERN OREGON and
PREMIERWEST BANCORP all knowledge, business, and customer contacts and any other
matters of information that could concern or be in any way beneficial to the
business of BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP, whether acquired by
EMPLOYEE before or during the term of this Agreement; provided, however, that
nothing under this Agreement shall be construed as requiring such communications
where the information is lawfully protected from disclosure as a trade secret of
a third party.

         B. Any such information communicated to BANK OF SOUTHERN OREGON and
PREMIERWEST BANCORP as stated above shall be and remain the property of BANK OF
SOUTHERN OREGON and PREMIERWEST BANCORP, in spite of the subsequent termination
of this Agreement.

                                 SECTION TWELVE
                                 BINDING EFFECT

         This Agreement shall be binding upon the parties hereto, their heirs,
assigns, personal representatives and successors in interest. This Agreement may
be assigned to and assumed by any successor in interest of BANK OF SOUTHERN
OREGON and PREMIERWEST BANCORP upon its approval.

                                SECTION THIRTEEN
                                  GOVERNING LAW

         The parties agree that this Agreement shall be governed by, construed
and enforced in accordance with the laws of the State of Oregon. The parties
agree that exclusive venue and jurisdiction shall lie in Jackson County, Oregon.

                                SECTION FOURTEEN
                                  CREATIVE WORK

         EMPLOYEE agrees that all creative work and work product including, but
not limited to, all technology, business management tools, processes, software,
patents, trademarks, copyrights developed by EMPLOYEE during the term of this
Agreement, irrespective of when or where such work or work product was produced,
constitutes work made for hire, all rights of which are owned by BANK OF
SOUTHERN OREGON and PREMIERWEST BANCORP. In any event, I assign to BANK OF
SOUTHERN OREGON and PREMIERWEST BANCORP or its designated successor or assignee,
all rights, title and interest, whether by way of copyright, trade secret,
trademark, patent or otherwise, in all such work and/or work product, whether or
not the same is subject to protection by patent, trademark, or copyright laws.

                                 SECTION FIFTEEN
                                ENTIRE AGREEMENT

         This Agreement, the policies and procedures including personnel
policies adopted by BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP's Board of
Directors, shall constitute the entire agreement between the parties and any
prior understanding or representation of any kind preceding the date of this
Agreement shall not be binding upon either party except to the extent
incorporated in this Agreement. Notwithstanding the above, the Board

<PAGE>   7

of Directors of BANK OF SOUTHERN OREGON and PREMIERWEST BANCORP shall have the
right to unilaterally modify, amend and/or revise its policies and procedures
including its personnel policies.

                                 SECTION SIXTEEN
                            MODIFICATION OF AGREEMENT

         Any modification of this Agreement or additional obligation assumed by
either party in connection with this Agreement shall be binding only if
evidenced in writing signed by each party or any authorized representative of
each party.

                                SECTION SEVENTEEN
                                    NO WAIVER

         The failure of either party to this Agreement to insist upon the
performance of any of the terms and conditions of this Agreement, or the waiver
of any breach of any of the terms and conditions of this Agreement, shall not be
construed as thereafter waiving any such terms and conditions, but the same
shall continue and remain in full force and effect as if no such forbearance or
waiver had occurred.

                                SECTION EIGHTEEN
                                  ATTORNEY FEES

         Any dispute concerning the interpretation or enforcement of this
Agreement shall be resolved by mandatory and binding arbitration in which the
Oregon Rules of Civil Procedure will govern discovery. The prevailing party
shall be awarded its reasonable attorney fees.

                                SECTION NINETEEN
                                TIME OF EXECUTION

         EMPLOYEE acknowledges that this Agreement has been executed prior to
the time that EMPLOYEE actually commenced working as Executive Vice
President/Chief Administrative Officer of BANK OF SOUTHERN OREGON and
PREMIERWEST BANCORP.

                                 SECTION TWENTY
                                 REPRESENTATIONS

         After _________ __, 2000, EMPLOYEE represents and warrants to BANK OF
SOUTHERN OREGON and PREMIERWEST BANCORP that there are no employment contracts
or other contractual obligations to which EMPLOYEE is subject which prevents
EMPLOYEE from entering into this Agreement or from fully performing EMPLOYEE's
duties under this Agreement.

         IN WITNESS WHEREOF, the parties have executed this Agreement on the day
and year first above written.

                                          BANK OF SOUTHERN OREGON and
                                          PREMIERWEST BANCORP

                                          By______________________________
                                          Its:____________________________

                                          EMPLOYEE

<PAGE>   8

                                          ---------------------------------
                                          Neil Zick

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