Document:

THIRD AMENDMENT TO THE
                              NORTH VALLEY BANCORP
                          EMPLOYEE STOCK OWNERSHIP PLAN

This Third Amendment (Amendment) is hereby adopted by North Valley Bancorp
(Employer).

                                    RECITALS
                                    --------

A.       The Employer adopted The North Valley Bancorp Employee Stock Ownership
         Plan (Plan), effective January 1, 1977.

B.       The Plan was amended from time to time and was restated effective
         January 1, 1999.

C.       The Plan received a favorable determination letter as to the tax
         qualified status of the Plan, dated March 29, 2000.

D.       Effective October 11, 2000, the Six Rivers National Bank Employee Stock
         Ownership Plan was merged into the Plan.

E.       The Employer amended the Plan to:

         1.       Reflect the provisions of the Community Renewal Tax Relief Act
                  of 2000 (CRA 2000) by adding the model amendment language
                  suggested by the Internal Revenue Service (IRS) in IRS Notice
                  2001-37, dealing with the definition of compensation for
                  certain plan purposes;

         2.       Conform to the final regulations under the Internal Revenue
                  Code (Code) section 401(a)(9) published on April 17, 2002,
                  relating to required minimum distributions from retirement
                  plans;

         3.       Reflect certain provisions of the Economic Growth and Tax
                  Relief Reconciliation Act of 2001 (EGTRRA). The amendments
                  reflect the model amendment language suggested by the IRS in
                  Notice2001-57, dealing with certain plan limits and other
                  general matters;

         4.       Amend the Claims Procedure article of the Plan to reflect the
                  final regulations issued by the Department of Labor (DOL),
                  effective for all claims filed on or after January1, 2002; and

                                      -1-
<PAGE>

         5.       Clarify the definition of Disability under the Plan.

F.       The Employer amended the Plan to clarify certain provisions relating to
         the definition of the allocation date, investment accounts, Bancorp
         stock dividends, vesting and distributions from the Trust.

G.       The Employer now wishes to amend the Plan, in light of the merger of
         Yolo Community Bank and North Valley Bancorp, effective on or about
         August 31, 2004, to provide for the immediate participation of Yolo
         Community Bank employees, effective September 1, 2004, and the
         crediting of service with Yolo Community Bank for eligibility and
         vesting purposes under the Plan.

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

In accordance with the foregoing recitals, the Employer hereby amends the Plan
effective September 1, 2004, or as of such other specified dates, as follows:

1.       The definition of "Employer" in Section 2 of the Plan is amended in its
         entirety to read as follows:

                  The Bancorp and each Affiliate that is designated as an
                  Employer by the Board of Directors and which adopts the Plan
                  for the benefit of its Employees. Notwithstanding the
                  foregoing, Yolo Community Bank, which merged into new Yolo
                  Community Bank and became a wholly-owned subsidiary of the
                  Bancorp and, hence, an Affiliate on or about August 31, 2004,
                  is an Employer for Plan purposes.

2.       The definition of "Compensation" in Section 2 of the Plan is amended by
         the addition of the following paragraph at the end:

                  With respect to Yolo Community Bank employees who entered and
                  became Participants in the Plan as of September 1, 2004,
                  Compensation shall consist only of total nondeferred
                  remuneration paid to such Employees by their Employer as
                  reported on the Employees' Wage and Tax Statement (Form W-2)
                  for the period during which the Employees are Participants in
                  the Plan (subject to the limits of Code section 401(a)(17)).

3.       The definition of "Service" in Section 2 of the Plan is amended by the
         addition of the following paragraph at the end:

                                      -2-
<PAGE>

                  Notwithstanding the foregoing, as specified in other sections
                  of the Plan, Employees of Yolo Community Bank on September 1,
                  2004 will receive credit for Service with respect to
                  employment with Yolo Community Bank for periods of employment
                  before Yolo Community Bank became an Affiliate, on or around
                  August 31, 2004.

4.       Section 3(a) is amended in its entirety to read as follows:

                  Each Employee who was a Participant on December 31, 1998,
                  shall continue as a Participant. Each other Employee shall
                  become a Participant as of the January 1st next following the
                  date on which he attains age eighteen (18) and completes six
                  (6) months of service. Each Employee of Yolo Community Bank
                  who was an Employee of Yolo Community Bank and a participant
                  in the Yolo Community Bank Employee Stock Ownership Plan as of
                  August 30, 2004, shall become a Participant in the Plan as of
                  September 1, 2004.

5.       A new subsection 3(d)(4) is added to the Plan which reads as follows:

                  For Employees who were employed by Yolo Community Bank on
                  September 1, 2004, Hours of Service shall include each hour of
                  Service that an Employee performed for Yolo Community Bank
                  before August 31, 2004, the date that Yolo Community Bank
                  became an Affiliate.

6.       Section 11(a) pertaining to Credited Service is amended by the addition
         of the following sentences to the end of that subsection, which reads
         as follows:

                  For Employees who were employed by Yolo Community Bank on
                  September 1, 2004, Credited Service shall also include the
                  number of calendar years beginning after December 31, 2002 in
                  which the Participant was credited with at least one thousand
                  (1,000) Hours of Service with Yolo Community Bank if such
                  Participant became an Employee of the Employer by reason of
                  the merger of Yolo Community Bank into a wholly-owned
                  subsidiary of Bancorp on or around August 31, 2004 (Merger).
                  For the 2004 calendar year, service with Yolo Community Bank,
                  both before and after the Merger, will be counted for purposes
                  of determining Credited Service.

                                      -3-
<PAGE>

7.       In all other respects, the Plan is hereby ratified, approved and
         confirmed.

IN WITNESS WHEREOF, the Employer has executed and adopted this Amendment on this
______ day of __________ 2004.

                                       EMPLOYER:

                                       NORTH VALLEY BANCORP
                                       A California Corporation

                                       By: /s/ MICHAEL J. CUSHMAN
                                           -------------------------------------
                                           Michael J. Cushman, President

                                      -4-LEASE AGREEMENT FOR 618 MAIN STREET
                      -----------------------------------

         THIS LEASE AGREEMENT made and entered into the 26 day of February 2004
by an between THOMAS W. and MARGARET S. STALLARD, hereinafter called "LESSORS,"
and YOLO COMMUNITY BANK, a California Subchapter S Corporation, hereinafter
called "LESSEES."

         IT IS HEREBY MUTUALLY UNDERSTOOD AND AGREED AS FOLLOWS:

         1.       LESSORS hereby lease to LESSEES and LESSEES hereby hire from
LESSORS on the terms and conditions herein set forth, that certain building on
the real property of LESSORS situated in the City of Woodland, County of Yolo,
State of California, comprising the entire third floor of that building
identified as 618 Main Street and more particularly delineated on Exhibit "A"
attached hereto and incorporated by reference. Said floor, approximating 4300
square feet, more or less, to be hereinafter referred to as "the premises."

         2.       The term of this Lease shall be for a period of FIVE years
commencing on Junel 1, 2004 and terminating on May 31, 2009.

         3.       Rent shall be due and payable in advance on the first day of
each month as follows:

                  (a)      For the period commencing June 1, 2004, and
                           continuing through May 31, 2006, LESSEES shall pay
                           the LESSORS as rent for said premises the sum of Five
                           thousand dollars ($5000) per month.
                  (b)      For the period commencing June1, 2006, and
                           continuing through May 31, 2008 LESSEES shall pay the
                           LESSORS as rent for said premises the sum of Five
                           thousand two hundred dollars ($5200) per month.
                  (c)      For the period commencing June 1, 2008, and
                           continuing through May 31, 2009, LESSEES shall pay
                           the LESSORS as rent for said premises the sum of Five
                           thousand four hundred and eight dollars ($5408) per
                           month.

         4.       LESSORS grant LESSEES two additional option periods of five
years each. In each case, the intent to exercise an option shall be exercised
within six months before the existing lease expires and negotiations concluded
before the final ninety days of the existing lease period.

         5.       The premises shall be used and occupied for the offices of a
bank. LESSEE shall take the premises in a "finished shell" condition and modify
it for their purposes, including modification of the electrical service and
other building systems complying with all relevant laws and respecting the
structural integrity of

<PAGE>

the building. All work to be done with due regard for impacts on nearby tenants.
LESSEE further agees to be responsible for provision and installation of the
drop ceiling including the light fixtures as well as the flooring inclusive of
the stairwells which shall be carpeted. LESSOR agrees to provide finished
restrooms, finished electrical other than as indicated above, and the
installation of four skylights with finished lightwells to meet the suspended
ceiling system that LESSEE will be installing.

         6.       LESSEES shall pay for all charges for telephone, breakage of
windows, light bulbs and cleaning, which relate to the space occupied by it.
LESSEES shall also pay all costs of gas and electricity. LESSORS shall pay water
and garbage. There is no common area maintenance fee. LESSEES shall, at its sole
cost and expense, keep and maintain said premises and appurtenances and every
part thereof, set forth in Exhibit "A" in good and sanitary order, condition and
repair, reasonable use and wear thereof and damages by act of God excepted.

         7.       LESSEES shall not commit or suffer to be committed any waste
upon said premises or any public or private nuisance, or other act or thing
which may disturb the quiet enjoyment of the other tenants of said building in
which the demised premises are located.

         8.       LESSEES agree to indemnify and save LESSORS harmless from and
against any and all claims arising from any act, omission or negligence of
LESSEES or its contractors, licensees, agents, servants, employees or invitees,
arising from any accident or injuries, in or about the premises, or any part of
them. LESSEES shall at their own cost and expense procure and keep in force
during the term of this Lease a policy of comprehensive public liability
insurance with limits of not less than One Million Dollars ($1,000,000.00) as to
any one person, and Two Million Dollars ($2,000,000.00) as to any one accident,
and One Million Dollars ($1,000,000.00) as to property damage, issued by an
insurance carrier satisfactory to LESSORS, and LESSORS shall be named as
co-insured therein. LESSORS and LESSEES mutually waive any right of subrogation
that they or their insurer may be able to claim against one another or their
insuror. LESSEES understand that appropriate insurance will be their sole
responsibility and that they are charged with protecting the interests of
LESSORS with regard to the subject property, as LESSORS will have no separate
insurance policy on the leasehold.

         9.       LESSORS assume all responsibility for compliance with the
Americans with Disabilities Act with respect to access to the leasehold and to
restrooms therein. LESSEES will be responsible for compliance as to interior
improvements and/or fixtures which they install.

         10.      LESSEES shall, during the term of this Lease, comply with all
the requirements of all municipal, state and federal authorities, laws,
statutes, and regulations now in force, or which may hereafter be in force
pertaining to said premises.

         11.      LESSEES shall not assign this LEASE or any interest therein,
and shall not lease or sublet said premises, or any part thereof, without the
prior written consent of LESSORS. A consent to one assignment or subletting
shall not be construed as a consent to any subsequent assignment or subletting.
Consent to sublease shall not be unreasonably withheld.

         12.      In the case the premises shall be partially or totally
destroyed so as to become partially or totally untenable, the same shall be
repaired or rebuilt as speedily as possible at the expense of the LESSORS'
insurer, unless the LESSORS shall elect not to repair or rebuild as provided in
Subparagraph (A) below, and should there be a substantial interference with
LESSEES' business, a just and proportionate part of the fixed rent shall be
abated until the premises are repaired or rebuilt, unless said destruction is
the fault of LESSEES.

<PAGE>

                  (A)      If more than fifty percent (50%) of the leased
premises shall be destroyed or so damaged by fire or other casualty as to become
wholly untenable, then LESSORS may, if they so elect, rebuild or put said
building in good condition and fit for occupancy within a reasonable time after
such destruction or damage, or it may give notice terminating this Lease as of
the date not later than thirty (30) days after such damage or destruction. If
LESSORS elect to repair or rebuild the building, they shall, within thirty (30)
days after such damage or destruction, give LESSEES notice of their intention to
repair or rebuild and then shall proceed with reasonable speed to make the
repairs or to rebuild. Unless LESSORS elect to terminate this Lease, said LEASE
shall remain in full force and effect and the parties waive the provision of any
law to the contrary.

         12.      The terms, covenants and conditions herein contained shall
apply to and bind and inure to the benefit of the heirs, successors,
administrators and permitted assigns of all the parties hereto.

         13.      Any signs to be placed upon said premises shall be subject to
the approval of LESSORS. LESSORS will continue to control the exterior
appearance of the building in order to preserve the historical character of the
structure.

         14.      It is understood and agreed that LESSEES are entitled to three
(3) parking spaces and it is agreed these spaces are intended exclusively for
clients and customers of LESSEES.

         15.      On the last day or sooner of termination of the Lease terms,
LESSEES shall quit and surrender the premises, vacuumed and dusted, in good
condition and repair (reasonable wear and tear and damage by act of God
excepted) together with alterations, additions and improvements that may have
been made in, to or on the premises, except moveable furniture or unattachable
trade fixtures put in at LESSEES' expense.

         16.      If LESSEES remain in possession of the premises after the
expiration of the Lease terms and without executing a new Lease, such holding
over shall be construed as a tenancy from month-to-month, subject to all the
conditions, provisions and obligations of this Lease insofar as the same are
applicable to month-to-month tenancy, except that LESSORS will be free to adjust
the rent.

         17.      If any action or proceeding is initiated by either party of
this Lease to enforce the provisions hereof, the unsuccessful party in any such
proceeding or litigation shall pay to the successful party reasonable attorney's
fees and court costs.

         18.      If the LESSEES at any time during the term of this Lease shall
(a) fail to make payment of any installment of rent or of any other sum here
specified to be paid to LESSEES, or (b) fail to observe or perform any of the
LESSEES' other covenants, agreements or obligations hereunder, and if such
default shall not be cured, as to (a) within ten (10) days after written notice
of such payor to make any payment, or as to (b) within thirty (30) days after
LESSORS shall have given to LESSEES written notice specifying such defaults,
other than payment or money, or (c) if the LESSEES are adjudicated a bankrupt or
insolvent, or has a receiver appointed for all or substantially all of his
business or assets, or a trustee appointed for it after a Petition has been
filed for LESSEES' reorganization under the Bankruptcy Act, or if LESSEES shall
vacate or abandon the leased premises, then in such event, the LESSORS shall
have the right, at their election, to give the LESSEES notice of LESSORS'
intention to terminate this Lease and retake possession and thereupon all
LESSEES; rights, granted hereunder shall come to an end as fully as if such date
or the last day of whole term hereinabove specified, and the LESSEES hereby
covenants peaceably and quietly to yield up and surrender to LESSORS said Leased
premises.
<PAGE>

         IN WITNESS WHEREOF, LESSORS and LESSEES have executed this Lease the
date and year first above written.

LESSORS:                                             LESSEES:

/s/ THOMAS W. STALLARD                 Yolo Community Bank, a California
----------------------------             Subchapter S Corporation
THOMAS W. STALLARD

/s/ MARGARET S. STALLARD               By: [illegible]
----------------------------               -------------------------------------
MARGARET S. STALLARD                       Title: President / CEO

                                           [illegible]
                                           -------------------------------------
                                           SVP / CFO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00080-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00080-of-00352.parquet"}]]