Document:

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                                                                   EXHIBIT 10.21

                                 PROMISSORY NOTE

$200,000.00                                                        Yuba City,
California

FOR VALUE RECEIVED, the Feather River State Bank Employee Stock Ownership
Plan and Trust ("Borrower"), hereby promises to pay to United ComServe, a
nonprofit corporation ("Lender"), the principal sum of, Two Hundred Thousand
Dollars ($200,000.00) with interest from the date of this Note on the unpaid
principal owing from time to time at a rate of 0.5% below the prime rate as
published in the West Coast edition of The Wall Street Journal. The interest
rate shall be adjusted on each day that the West Coast edition of The Wall
Street Journal adjusts its published prime rate and shall be calculated on
the basis of a 365-day year, actual days elapsed. The principal shall be
repaid in annual installments of Forty Thousand Dollars ($40,000.00) per
year, beginning on December 31, 2000 and continuing on the 31st of December
of each successive year until paid in full. Interest on the unpaid principal
shall be payable quarterly at the end of each calendar quarter beginning June
30, 2000. This Note shall mature on December 31, 2004, on which date the
outstanding principal balance together with all accrued and unpaid interest
shall be due and payable.

Borrower shall make all payments in lawful money of the United States of
America and in immediately available funds. Borrower shall deliver its
payments to Lender's principal place of business at 319 "G" Street,
Marysville, California 95901, or at such other place as Lender may designate
to Borrower in writing from time to time.

This Note may be prepaid in whole or in part, without penalty, at the option
of Borrower and without the consent of Lender. Should the Borrower default in
the payment of any principal or interest when due, at the option of the
Lender, the whole sum of principal and all accrued interest owing under this
Note shall be immediately due and payable without further demand or notice.

The unpaid principal balance of this obligation shall be the total amount
advanced hereunder less the amount of principal payments made by tBorrower,
which balance will be endorsed on the reverse side hereof or on a grid
attached hereto by Lender. The balance as shown shall be presumptive evidence
that such balance exists in the amount written and that such advances and
payments were made in the amounts written.

This Note is that certain promissory note referred to in the Loan Agreement
dated as of May 11, 2000 between Borrower and Lender. The Note is subject to
prepayment and the maturity may be accelerated as provided in the Loan
Agreement.

This Note is nonrecourse as to Borrower. Lender shall have no recourse
against the Borrower or the assets of Borrower except as to the contributions
made to the Borrower by Feather River State Bank to meet the Borrower's
obligations under this Note and any earnings attributable to such
contributions.

This Note is secured by an Irrevocable Standby Letter of Credit of even date
in the amount of Two Hundred Thousand Dollars ($200,000.00) issued by Feather
River State Bank.

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                                     As Trustees of the Feather River State Bank
                                     Employee Stock ownership Plan and Trust, as
                                     amended (and in no other capacity):

                                     BY:   /s/ JULIE SHACKLEFORD
                                           ---------------------
                                           Julie Shackleford

                                     BY:   /s/ TERRY COLE
                                           --------------
                                           Terry Cole

                                     BY:   /s/ CINDY DAVIT
                                           ---------------
                                           Cindy Davit

                                 LOAN AGREEMENT

THIS AGREEMENT is made this 11TH day of May, 2000, at Yuba City, California,
by and between United ComServe, a nonprofit corporation ("Lender"), and Julie
Shackleford, Terry Cole, Cindy Davit (the "Trustees"), as Trustees (and in no
other capacity) for the Feather River State Bank Employee Stock Ownership
Plan and Trust (the "Trust"), created by that certain Feather River State
Bank Employee Stock Ownership Plan and Trust Agreement, as amended, dated
December 14, 1988, (the "Trust Agreement"), between the Trustees and Feather
River State Bank, a California banking corporation ("Feather River").

         1.    THE LOAN.

         1.01. AMOUNT OF LOAN. Subject to the terms and conditions
hereinafter set forth (the "Loan Agreement"), Lender shall loan to the Trust
on or before June 30, 2000, up to the sum of Two Hundred Thousand Dollars
($200,000.00) (the "Loan").

         1.02. THE NOTE. The Loan shall be evidenced by a promissory note
executed by the Trustees (the "Note") and by this reference incorporated
herein. The Note shall be dated May 11, 2000, and shall be for the principal
amount of $200,000.00. The principal amount shall be repaid as follows:
$40,000.00 per year, beginning on December 31, 2000, and continuing on the
31st of December of each successive year until paid in full. The Note shall
mature on December 31, 2004, on which date the entire balance of unpaid
principal and interest on the Loan shall become due and payable.

         1.03. INTEREST. The entire balance of the unpaid principal amount of
the Note shall bear interest from the date thereof at a rate of 0.5% below
the prime rate as published in the West Coast edition of The Wall Street
Journal. Interest shall be payable at the end of each calendar quarter
beginning June 30, 2000. Interest shall be computed on the basis of a 365-day
year and actual days elapsed.

         1.04. PURPOSE OF LOAN. The proceeds of the Loan shall be used by
Trustees only to purchase shares of capital stock in California Independent
Bancorp, the holding company of Feather River. The capital stock shall be
purchased from California Independent Bancorp or in the market, pursuant to
the provisions of the Trust, as amended and attached hereto as Exhibit "A."

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         1.05. NON-RECOURSE. This Loan is nonrecourse as to the Trust. Lender
shall have no recourse against the Trust or its assets except as to the
contributions made to the Borrower by Feather River to meet the Trust's
obligations under this Loan and any earnings attributable to such
contributions.

         1.06. PREPAYMENT. This Loan may be prepaid in whole or in part,
without penalty, at the option of Borrower and without the consent of Lender

           1.07. MATURITY. If the day of maturity of any principal payment on
the Loan falls on a Saturday, Sunday, or holiday in California, interest
shall be paid to the day such payment is made.

         1.08. CHANGE OF CONTROL. All unpaid principal and interest shall
become due and payable immediately upon a change of control of Feather River.
A change of control shall have been deemed to take place when 51% or more of
the outstanding shares of voting stock of Feather River is no longer owned by
California Independent Bancorp, its holding company, or when a person within
the meaning of the Securities Exchange Act of 1934 acquires 51% or more of
the outstanding voting securities of California Independent Bancorp.

         2. CONDITIONS OF THE LOAN. The obligation of Lender to make the Loan
hereunder is expressly conditioned upon:

         2.01. COPY OF ANNUAL CONTRIBUTIONS AGREEMENT. Delivery by the
Trustees to Lender an executed copy of the "Annual Contributions Agreement",
a copy of which is attached hereto as Exhibit "B." The Annual Contributions
Agreement shall, among other things, bind Feather River to make annual
contributions to or for the benefit of the Trust in amounts sufficient to
enable the Trustees to pay each installment of principal and interest on the
Loan on or before the date such installment is due, subject to Section 1.3 of
the Annual Contributions Agreement.

         2.02. COPY OF RESOLUTIONS. Receipt by Lender of a certified copy of
the resolutions of the Board of Directors of Feather River evidencing
approval of the Loan and certified copies of all documents evidencing other
necessary corporate action with respect to the Trust, the Annual
Contributions Agreement, and this Loan Agreement.

         2.03. STANDBY LETTER OF CREDIT. Receipt by Lender of a Standby
Letter of Credit in the amount of Two Hundred Thousand Dollars ($200,000.00)
from Feather River in favor of Lender, as beneficiary, upon which Lender may
draw by delivery of its own declaration that an event of default, within the
meaning of Section 5 hereof or Section 4 of the Annual Contributions
Agreement, has occurred.

         2.04. FINANCIAL Information. Trustees shall deliver, or cause to be
delivered, to Lender, copies of Feather River's annual audited financial
statements and unaudited quarterly financial statements as soon as they
become available.

3.           COVENANTS OF TRUSTEES.

         3.01.   INFORMATION. While any principal amount of the Loan remains
outstanding, the Trustees shall, at the request of Lender furnish Lender with
copies of all information made available to the Trustees by Feather River
incident to the Trust's ownership of Feather River common stock.

         3.02. AMENDMENTS. The Trustees shall not amend or modify the Annual
Contributions Agreement without first obtaining the written consent of Lender.

         3.03. FAILURE TO PAY. The Trustees shall notify promptly in writing
if and when Feather River fails or refuses to make an annual contribution to,
or for the benefit of, the Trust, pursuant to the Annual Contributions
Agreement.

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         3.04. ASSIGNMENT OF RIGHTS. If Feather River fails or refuses to
make an annual contribution required under the Annual Contributions
Agreement, the Trustees shall, upon Lender's request, transfer, and assign to
Lender all of the Trustee's rights, title and interest in and to the Annual
Contributions Agreement.

         4.     REPRESENTATIONS AND WARRANTIES.
                The Trustees represent and warrant that:

         4.01. PENDING ACTIONS. To the knowledge of the Trustees, there are
no actions or proceedings pending or threatened against the Trust before any
court or administrative agency which might result in any material adverse
change in the business or condition of the total enterprise represented by
the Trust.

         4.02. EXECUTION. Neither the execution and delivery of this Loan
Agreement, the consummation of the transaction herein contemplated, nor
compliance with the terms and provisions hereof or of the Note will conflict
with or result in a breach of any of the terms, conditions, or provisions of
the Trust Agreement or of any order, writ, injunction, or decree of any court
or governmental instrumentality or of any agreement or instrument to which
the Trustees are a party or by which they are bound or to which they are
subject, or constitute a default thereunder, or result in the creation or
imposition of any lien, charge, or encumbrance of any nature whatsoever upon
the property of the Trust pursuant to the terms of any such instrument or
agreement.

         4.03. VALID AGREEMENT. The execution and delivery of this Loan
Agreement, the making of all borrowings contemplated or permitted by the
provisions hereof, and the execution, issuance, and delivery of the Note to
evidence such borrowing, have each been duly authorized; this Loan Agreement
and the Trust Agreement have been duly authorized and validly executed by the
Trustees and (assuming that such agreements have been duly and validly
executed and delivered by Feather River) constitute the valid and legally
binding agreements of the Trustees except as may be limited by bankruptcy,
insolvency, or reorganization laws. The Note, when duly executed and
delivered by the Trust, pursuant to the provisions hereof, will constitute
valid and binding obligation of the Trust enforceable in accordance with the
terms thereof and this Loan Agreement, except as limited by bankruptcy, or
other laws of general application relating to or affecting the enforcement of
creditors, rights.

         The Trustees have the power under the Trust to execute and deliver
this Loan Agreement and the Note and to consummate the transaction to be
performed by them hereunder.

         5. DEFAULT. Notwithstanding the terms of the Note, all indebtedness
evidenced by the Note shall, at the option of Lender become immediately due
and payable without demand, presentment, or notice, all of which are
expressly waived, if any of the following should occur:

         5.01. FAILURE TO PAY. The Trustees fail or refuse to pay, or fail to
receive from Feather River, an installment of principal or interest on the
Note when due.

         5.02. BREACH OF PROVISIONS. The Trustees violate or fail to perform
any provision of this Loan Agreement.

         5.03. FALSE REPRESENTATIONS. Any representation or warranty made
herein by the Trustees or any statement or representation made pursuant
hereto or in connection herewith shall be untrue or incorrect in any material
respect.

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         5.04. OTHER DEFAULTS. Any obligation of the Trust (other than its
obligation hereunder) for the payment of borrowed money becomes or is
declared to be due and payable prior to the expressed maturity thereof
because of a default.

         5.05. INSOLVENCY; TERMINATION. The Trust shall become insolvent or
shall be terminated.

         5.06. RECEIVERSHIP. The Trustees admit in writing their inability to
pay the Trust's debts as they mature, makes an assignment for the benefit of
creditors, or commits any other act of bankruptcy, applies for or consents to
the appointment of a receiver or trustee for it or for a substantial part of
the Trust's property or business, or such a receiver or trustee otherwise
shall be appointed and shall not be discharged within sixty (60) days after
such appointment.

         5.07. ATTACHMENTS. Any money judgement, writ of attachment or
similar process shall be entered or filed against the Trust or any of its
assets for an amount exceeding Two Hundred Thousand Dollars ($200,000.00),
and remains unvacated, unbonded, or unstayed for a period of sixty (60) days
or, in any event, later than five (5) days prior to the date of any proposed
sale thereunder.

         5.08.    BANKRUPTCY. Bankruptcy, insolvency, reorganization, or
                  liquidation proceedings or other proceedings for relief under
                  any bankruptcy law or any law for the relief of debtors shall
                  be instituted by or against the Trust, and if instituted
                  against it, shall be consented to or shall not be dismissed
                  within sixty (60) days after such institution.

         THEN, and in such event, the Note shall become immediately due and
payable upon declaration to that effect by Lender to the Trust. The Trust
expressly waives any presentment, demand, protest, or other notice of any
kind.

         6. SUBORDINATION. To the extent an event of default occurs within
the meaning of Section 5 hereof, which may give rise to enforcement by Lender
of its rights pursuant to the provisions of the Annual Contributions
Agreement as a third party creditor beneficiary of the Trust, such rights of
Lender shall be subject to the subordination provisions of Section 1.3 of the
Annual Contributions Agreement.

         7. SEVERABILITY. If any portion of this Loan Agreement shall be
deemed by a court of competent jurisdiction to be unenforceable, such
provisions shall be ineffective to the extent of such prohibition, and the
remaining terms shall provide for the consummation of the transactions
contemplated in substantially the same manner as originally set forth at the
date this Loan Agreement was executed.

         8. EXPENSES. The Trust shall pay all out-of-pocket expenses and
reasonable attorneys' fees of Lender incidental to the enforcement of any
provision of this Loan Agreement, the Note, or the Annual Contributions
Agreement.

           9. NO WAIVER. No failure on the part of Lender to exercise, and no
delay in exercising any right, shall operate as a waiver, nor shall any
single or partial exercise by Lender or any right preclude any other or
future exercise thereof or the exercise of any right.

         10. NOTICE. All communications and payments provided for hereunder,
except where otherwise specifically provided, shall be in writing and shall
be given or made upon such other party by hand delivery or through a deposit
in the United States mail, first class postage prepaid, addressed. All
communications sent by mail shall be deemed received five (5) days after
deposit in the United States mail.

                  Notices required under this Agreement shall be sent to the
parties at the following addresses:

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         If to Feather River:       FEATHER RIVER STATE BANK
                                    1227 BRIDGE STREET, SUITE C
                                    POST OFFICE BOX 929002
                                    YUBA CITY, CA 95992
                                    ATTN: LARRY D. HARTWIG, PRESIDENT

         If to Lender:              UNITED COMSERVE
                                    319 "G" STREET
                                    MARYSVILLE, CA 95901
                                    ATTN:  WILLIAM PACE
                                    CHIEF FINANCIAL OFFICER

         If to Trustees:            TRUSTEES, FEATHER RIVER STATE BANK EMPLOYEE
                                    STOCK OWNERSHIP PLAN &: TRUST
                                    POST OFFICE BOX 1575
                                    YUBA CITY, CA 95992
                                    ATTN:    JULIE SHACKLEFORD, TERRY
                                    COLE, CINDY DAVIT

or to such other addresses as may, from time to time, be specified in writing
by Feather River, the Trustees, or Lender, respectively, and such actions
shall be complete upon receipt.

         11. GOVERNING LAW. The laws of the State of California shall govern
this Agreement.

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

                                    As Trustees of the Feather River State Bank
                                    Employee Stock Ownership Plan and Trust, as
                                    amended (and in no other capacity):

                                    BY:  /s/ Julie Shackleford
                                         ---------------------
                                         Julie Shackleford

                                    BY:  /s/ Terry Cole
                                         --------------
                                         Terry Cole

                                    BY:   /s/ Cindy Davit
                                          ---------------
                                          Cindy Davit

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                                    Lender:  United ComServe

                                    BY:_________________________________________
                                             William Pace
                                             Chief Financial Officer

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                         ANNUAL CONTRIBUTIONS AGREEMENT

         THIS AGREEMENT is made as of the 11TH day of MAY 2000, at Yuba City,
California, by and between Feather River State Bank, a California banking
corporation ("Feather River") and Feather River State Bank Employee Stock
ownership Plan and Trust, as amended (the "Trust"), and its Trustees, Julie
Shackleford, Terry Cole, Cindy Davit (the "Trustees"), only in their
capacities as Trustees.

                                    RECITALS

A.       The Trust, intended to be qualified under Sections 401 and 501 of the
         Internal Revenue Code of 1986, was created for the benefit of the
         employees of Feather River, their dependents, and beneficiaries.

B.       The Trustees executed and delivered a Loan Agreement dated MAY 11,
         2000, (the "Loan Agreement") whereby the Trust borrowed from United
         ComServe, a nonprofit corporation (the "Lender"), the sum of Two
         Hundred Thousand Dollars ($200, 000. 00) for the purpose of purchasing,
         from time to time, stock of California Independent Bancorp, the holding
         company of Feather River, either in the market or directly from
         California Independent Bancorp (the "Loan").

C.       As a condition to the Loan, the Lender is requiring the Trust to
         deliver an annual contributions agreement between the Trust and Feather
         River as assurance that annual contributions be made to the Trust by
         Feather River are in an amount sufficient to pay all loan fees,
         principal and interest when due on the Loan.

         NOW, THEREFORE, in consideration of the mutual covenants,
agreements, representations, and warranties hereinafter set forth, Feather
River and the Trust agree as follows:

Section 1.     COVENANTS OF FEATHER RIVER.
        1.1.     ANNUAL CONTRIBUTIONS TO TRUST.
                  (a) Subject to all of the terms and conditions of this
Agreement, Feather River shall make annual contributions to the Trust or for
the benefit of the Trust in lawful money of the United States of America in
an amount equal to all loan fees, principal and interest due on the Loan, as
set forth in the Loan Agreement attached hereto as Exhibit "A," on or before
the due date for such payments ("Minimum Contributions").

                  (b) In addition, Feather River may make contributions to
the Trust or for the benefit of the Trust in lawful money of the United
States of America in excess of the Minimum Contributions required by
subsection "a" of this Section 1.1 ("Excess Contributions"). Any Excess
Contributions shall be invested by the Trustees as set forth in the Trust
Agreement. The Excess Contributions, or any portion thereof, may be applied
at the direction of the Trustees against the Loan as prepayment of the last
Minimum Contribution due, provided that such prepayment shall only reduce the
principal balance of the Loan.

                  (c) Notwithstanding the provisions of subsection "a" of
this Section 1.1, Feather River shall be required to make, or cause to be
made, Minimum Contributions to the Trust only if and to the extent that the
Trust shall have insufficient funds available to pay each installment of
principal and interest on the Loan, and all loan fees. Not less than ten (10)
days before each such payment is due, the Trustees shall deliver a statement
to Feather River of any Minimum Contributions which the Trustee reasonably
believes will be required pursuant to this subsection "c", and Feather River
shall make or cause to be made such Minimum Contributions as provided in
subsection "a" of this Section 1.1.

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         1.2. NO GUARANTY OR INDEMNIFICATION. This Agreement is not intended
to make Feather River a guarantor, surety, or indemnitor of the Trust for its
obligation to Lender under the Loan Agreement. Except for its obligation to
make Minimum Contributions under Section 1.1 hereof, the direct payment to
Lender under Section 1.3 hereof, and honoring the terms of an Irrevocable
Standby Letter of Credit issued by Feather River in connection with the Loan,
Feather River shall have no further obligation to answer for the debt,
default, miscarriage, or other negligence of the Trust or Trustees in
connection with the Loan.

         1.3. THIRD PARTY BENEFICIARY. Feather River shall pay or cause to be
paid the Minimum Contributions required under Section 1.1 to the Trust. Upon
the occurrence of an event or default as described in Section 4 hereof or
Section 5 of the Loan Agreement, Feather River shall pay or cause to be paid
such Minimum Contribution directly to Lender to the extent of such default.
Such payments are expressly intended for the direct benefit of Lender as a
creditor beneficiary of the Trust. Lender is intended to have all the rights
as a third party creditor beneficiary to enforce the obligations of Feather
River in accordance with the terms of this Agreement. Feather River
understands and agrees, that it shall be liable to Lender for damages if
Feather River does not pay or cause to be paid the contributions to the Trust
or Lender. Feather River further understands and agrees that any reference to
the nonrecourse nature of the Loan, any disability or defense of the Trust,
or cessation from any cause whatsoever of the liability of the Trust shall
not be applicable or be available to Feather River as a defense to its
obligations herein. Feather River hereby waives any and all defenses it might
have against the Trust arising out of the Trust agreement and this Agreement
which may serve as a basis for any defense Feather River would otherwise have
against Lender under this Agreement.

         1.4. FINANCIAL STATEMENTS. All financial statements, information and
other data furnished by Feather River to the Trustees or to Lender as part of
the Trust's application for credit ("Financial Statements") are, in all
material respects, accurate and correct; the Financial Statements fairly
reflect the consolidated financial condition of Feather River and its holding
company, California Independent Bancorp, as of the dates of such Financial
Statements; the Financial Statements have been prepared in accordance with
generally accepted accounting principles consistently applied; the Financial
Statements are, in all material respects, accurate and correct; and no
materially adverse changes have occurred since the date of the latest of such
Financial Statements covering the period ended December 31, 1999.

Section 2.   COVENANTS OF TRUSTEES.

         2.1. THE LOAN. In connection with the Loan between the Trust and
Lender, the Trustees covenant as follows:

              (a) The Loan shall be at a reasonable rate of interest, as
specified in Section 1.03 of the Loan Agreement;

              (b) Under the terms of the Loan, Lender shall not have recourse
against the Trustees or the Trust except with respect to such assets of the
Trust as are permitted by law;

              (c) The Loan shall be repaid only from those amounts
contributed by Feather River to the Trust under this Agreement and from
amounts earned on the proceeds-of the Loan or investments of the Trust made
therewith.

         2.2. USE OF MINIMUM CONTRIBUTIONS. The Trustees shall use the
proceeds of the Minimum Contributions only to pay all costs of the Loan as
well as each installment of principal and interest on the Loan on or before
the date each installment is due.

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Section 3.   CONDITIONS OF TRUSTEES' OBLIGATIONS.

         The obligations of the Trustees provided for in this Agreement shall
be expressly subject to and conditioned upon the following:

         3.1. AUTHORITY. Feather River shall deliver to the Trustees and
Lender on or before the date hereof a certificate signed by the Secretary of
Feather River certifying that the Board of Directors of Feather River has
approved, ratified, and confirmed the execution, delivery, and performance of
this Agreement at a meeting duly called with a quorum present.

         3.2. OFFICER'S CERTIFICATE. Feather River shall deliver to the
Trustees and Lender a certificate, dated not more than five (5) days prior to
the date hereof, signed by the President, a Vice President, or the Chief
Financial officer of Feather River certifying that such officer has no
knowledge, except as may be disclosed in such certificate, of any litigation
or proceedings pending or threatened against or affecting Feather River the
result of which might substantially affect the financial condition, business,
or operations of Feather River; and that there has been no materially adverse
change in the financial condition of Feather River since the date of the
latest Financial Statement submitted to the Trustees and Lender.

         3.3. OPINION OF COUNSEL FOR FEATHER RIVER. Feather River shall
deliver, or cause to be delivered, to the Trustees and Lender, a written
opinion of its counsel, Weintraub, Genshlea & Sproul of Sacramento,
California, which opinion shall be in form and substance reasonably
satisfactory to the Trustees and Lender stating that, in the opinion of such
counsel:

             (a) Feather River is a banking corporation, duly organized,
validly existing and in good standing under the laws of the State of
California and licensed by the California State Banking Department;

             (b) This Agreement has been duly authorized and validly executed
by Feather River and (assuming that such Agreement has been duly and validly
executed and delivered by the Trustees) constitutes the valid and binding
agreement of Feather River except as may be limited by any bankruptcy,
insolvency, or reorganization laws;

             (c) Feather River has the corporate power to execute and deliver
this Agreement and to consummate the transaction to be performed by it
hereunder; all corporate action required by law to authorize such execution
and delivery and the consummation of such transaction by Feather River has
been duly and validly taken;

             (d) The performance of this Agreement and the consummation of
the transactions contemplated herein will not result in any breach or
violation of any of the terms or provisions .of, or constitute a default
under, Feather River's Articles of Incorporation or Bylaws, or any indenture,
mortgage, deed of trust, lease, loan agreement, security agreement, or other
agreement, instrument, commitment or arrangement under which Feather River is
a borrower, pledgor, debtor, guarantor, mortgagor, or trustor or to which any
of Feather River's property is subject; and

             (e) Such counsel has no actual knowledge, except as IS disclosed
in such opinion, of any material litigation, proceeding, or governmental
investigation pending or threatened against or relating to Feather River, its
properties, or business.

         In rendering such opinions, said counsel may rely upon certificates
and written statements of officers or accountants of Feather River and upon
certificates and advisory opinions of public officials and government
agencies only as to matters of fact supporting the basis of such opinions.

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         3.4. OPINION OF COUNSEL FOR TRUSTEES. The Trustees shall deliver, or
cause to be delivered, to Lender and Feather River the written opinion of its
counsel, which opinion shall be in form and substance reasonably satisfactory
to Lender and Feather River stating that, in the opinion of such counsel:

              (a) This Agreement and the Trust Agreement have been duly
authorized and validly executed by the Trustees on behalf of the Trust and
(assuming that they have been duly and validly executed and delivered by
Feather River) constitute the valid and binding agreements of the Trust,
except as may be limited by any bankruptcy, insolvency, or reorganization
laws;

              (b) The Trustees have the power under the Trust to execute and
deliver this Agreement and to consummate the transactions to be performed by
them hereunder; and all action required by law to authorize such execution
and delivery and the consummation of such transactions by the Trustees and
the Trust has been duly and validly taken;

              (c) The performance of this Agreement and the consummation of
the transactions contemplated herein will not result in any breach or
violation of any of the terms or provisions of, or constitute a default
under, the Trust Agreement, or any indenture, mortgage, deed of trust, lease,
loan agreement, security agreement, or other agreement, instrument,
commitment, or arrangement under which the Trust is a borrower, pledgor,
debtor, guarantor, mortgagor, or trustor or to which any of the Trust
Property is subject; and

              (d) Such counsel has no actual knowledge of any material
litigation, proceeding, or governmental investigation pending or threatened
against or relating to the Trust, its properties, or business;

         In rendering such opinion, said counsel may rely upon certificates
and written statements of officers or accountants of Feather River and the
Trustees and upon certificates and advisory opinions of public officials and
government agencies only as to matters of fact supporting the basis of such
opinions.

Section 4.   EVENTS OF DEFAULT.

If one or more of the following described events of default shall occur:

             (a) Feather River shall default in the payment of any Minimum
Contribution provided for hereunder;

             (b) Feather River or the Trustees shall fail to perform or
observe any of the material terms, provisions, covenants, conditions,
agreements, or obligations as contained herein;

             (c) Feather River shall become insolvent or be unable to pay
debts as they mature, or shall make an assignment for the benefit of
creditors or to an agent authorized to liquidate any substantial amount of
its properties or assets, or shall file a voluntary petition in bankruptcy or
seeking a reorganization or to effect a plan or other arrangement with
creditors, or shall File an answer admitting the jurisdiction of the court in
the material allegations of an involuntary petition filed pursuant to any Act
of Congress relating to bankruptcy or reorganization, or shall join in any
such petition for an adjudication or for a reorganization or other
arrangement, or shall become or be adjudicated a bankrupt, or shall apply for
or consent to the appointment of or consent that an order be made appointing
any receiver or trustee, for itself or for any of its properties, assets, or
business, or if an order shall be entered pursuant to any Act of Congress
relating to bankruptcy or reorganization, or if a conservator for Feather
River is appointed by, or possession or control of the property and business
of Feather River is taken by, the California Department of Financial
Institutions or Federal Deposit Insurance Corporation, or if a receiver or a
trustee shall be appointed for all or a substantial part of its properties,
assets, or business

                                       36

<PAGE>

(otherwise than upon its own application or consent) , and any such receiver
or trustee so appointed shall not be discharged within thirty (30) days after
the date of such appointment;

             (d) Any representation or warranty made by Feather River herein,
or in any certificate, or financial statement or other statement furnished by
Feather River or any of its officers shall prove to be in any material
respect false or misleading;

             (e) Any writ of execution, attachment, or garnishment for any
lien, or any other legal process, be issued for an amount in excess of Two
Hundred Thousand Dollars ($200,000.00) against any of the property of Feather
River which shall not be discharged or released within thirty (30) days after
date of issuance;

             (f) All, or substantially all, of the property of Feather River
shall be condemned, seized, or otherwise appropriated;

             (g) There shall be a "Change of Control" as described in the
Loan Agreement, Section 1.08.

         THEN, after the expiration of a ten (10) day period following the
delivery of written notice to Feather River of the existence of an event of
default as described above, and at any time thereafter, and in each and every
such case, unless such default shall have been remedied within such ten (10)
day period, or waived in writing by the Trustees and Lender or Feather River
and Lender as appropriate, each and any liability and obligation outstanding
under this Agreement shall thereupon, without presentment, demand, protest or
notice of any kind, all of which are hereby expressly waived, be forthwith
due and payable, if not otherwise then due and payable, anything herein or in
any other agreement, contract, indenture, document or instrument contained to
the contrary notwithstanding, and the Trustees, Feather River, or Lender as
third party beneficiary as appropriate may immediately, and without any
period of grace, enforce the payment of all liabilities and obligations to
the Trust or Lender under this Agreement.

Section 5.   MISCELLANEOUS PROVISIONS.

         5.1. NOTICES. All communications and payments provided for
hereunder, except where otherwise specifically provided, shall be in writing
and shall be given or made upon such other party by hand delivery or through
a deposit in the United States mail, first class postage prepaid, addressed.
All communications sent by mail shall be deemed received five (5) days after
deposit in the United States mail.

         Either Feather River or the Trustees, or both, shall promptly notify
Lender in writing with respect to an occurrence of an event of default or
impending event of default;

   If to Feather River:       FEATHER RIVER STATE BANK
                              1227 BRIDGE STREET, SUITE C
                              POST OFFICE BOX 929002
                              YUBA CITY, CA 95992
                              ATTN: LARRY D. HARTWIG, PRESIDENT

   If to Lender:              UNITED COMSERVE
                              319 "G" STREET
                              MARYSVILLE, CA 95901
                              ATTN:  WILLIAM PACE
                              CHIEF FINANCIAL OFFICER

                                       37

<PAGE>

   If to Trustees:            TRUSTEES, FEATHER RIVER STATE BANK EMPLOYEE
                              STOCK OWNERSHIP PLAN &: TRUST
                              POST OFFICE BOX 1575
                              YUBA CITY, CA 95992
                              ATTN: JULIE SHACKLEFORD, TERRY COLE, CINDY DAVIT

   With copies sent to:       UNITED COMSERVE
                              319 "G" STREET
                              MARYSVILLE, CA 95901
                              ATTN:  WILLIAM PACE
                              CHIEF FINANCIAL OFFICER

or to such other addresses as may, from time to time, be specified in writing
by Feather River, the Trustees or Lender, respectively, and such actions
shall be complete upon receipt thereof.

         5.2. WAIVER. Neither the failure of, nor any delay on the part of,
either party hereto in exercising any right, power, or privilege hereunder,
or under any agreement, contract, indenture, document, or instrument
mentioned herein, shall operate as a waiver thereof, nor shall any single or
partial exercise of any right, power, or privilege hereunder, or under any
agreement, contract, indenture, document, or instrument mentioned herein,
preclude other or further exercise thereof or the exercise of any other
right, power, or privilege; nor shall any waiver of any right, power,
privilege or default hereunder, or under any agreement, contract, indenture,
document, or instrument mentioned herein, constitute a waiver of any other
right, power, privilege, or default or constitute a waiver of any other
default of the same or of any other term or provisions. All rights and
remedies herein provided are cumulative and not exclusive of any right or
remedies otherwise provided by law.

         5.3. TERMINATION AND MODIFICATION BY CONSENT. Except as required by
law, this Agreement may be terminated, modified, or amended by mutual consent
of Feather River and the Trustees by a written instrument executed on behalf
of such parties. No termination, modification or amendment hereto (and
specifically, but without limitation no modification or amendment of Feather
River's obligations to make the contributions) shall be effective without the
prior written consent of Lender. Further, Feather River shall not cause or
permit the Trust to be terminated prior to payment in full of the Loan
without the prior written consent of Lender.

         5.4. GOVERNING LAW. This Agreement is made and entered into in the
State of California. The laws of the State of California shall govern this
Agreement.

         5.5. CAPTIONS. Captions contained in this Agreement are for
convenience of reference only and do not form a part of this Agreement.

         5.6. SUCCESSORS AND ASSIGNS. Except for a Change of Control as
described in the Loan Agreement, Section 1.08, all terms and provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective transferees, successors, and assigns. This Agreement and
all rights, privileges, duties, and obligations of the parties hereto may not be
assigned or delegated by either party hereto without the prior written consent
of the other party hereto.

         5.7. EXPENSES. Subject to the provisions of Section 2.1(b), if one
of the parties to this Agreement should initiate legal proceedings to enforce
the terms of this Agreement, the prevailing party shall be entitled to recover
all costs and expenses, including reasonable attorneys' fees incurred from the
other party.

                                       38

<PAGE>

         5.8. COUNTERPARTS. This Agreement may be executed in one (1) or more
counterparts, all of which, when taken together, shall constitute a single
original instrument.

         5.9. SEVERABILITY. If any portion of this Agreement shall be deemed
by a court of competent jurisdiction to be unenforceable, such provisions
shall be ineffective to the extent of such prohibition, and the remaining
portion shall be valid and enforceable, the remaining terms hereof shall
provide for the consummation of the transactions contemplated herein in
substantially the same manner as originally set forth at the date this
Agreement was executed.

         5.10. ENTIRE AGREEMENT. The making, execution, and delivery of this
Agreement by the parties hereto have been induced by no representations,
statements, warranties, or agreements other than those herein expressed. This
Agreement embodies the entire understanding of the parties, and there are no
further or other agreements or understandings, written or oral, in effect
between the parties relating to the subject matter hereof, unless expressly
referred to by reference herein.

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

                                     FEATHER RIVER STATE BANK
                                     EMPLOYEE STOCK OWNERSHIP
                                     PLAN AND TRUST

                                     BY:   /s/ Julie Shackleford
                                           ---------------------
                                           Julie Shackleford

                                     BY:   /s/ Terry Cole
                                           --------------
                                           Terry Cole

                                     BY:   /s/ Cindy Davit
                                           ---------------
                                           Cindy Davit

                                     As Trustees of the Feather River State Bank
                                     Employee Stock Ownership Plan and Trust, as
                                     amended (and in no other capacity):

                                     FEATHER RIVER STATE BANK

                                     BY:   /s/ Larry D. Hartwig
                                           --------------------
                                           Larry D. Hartwig, President

                                     BY:   /s/ Annette Bertolini
                                           ---------------------
                                           Annette Bertolini
                                           Senior Vice President

                                       39

<PAGE>

UNITED COMSERVE

A signed copy of this agreement has been received by Lender on ________________

SIGNED: _______________________________
             William Pace
             Chief Financial officer

                                       40Prepared by MERRILL CORPORATION www.edgaradvantage.com

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EXHIBIT 10.21

  NORTHWEST PIPE NQ RETIREMENT SAVINGS PLAN         

    The Northwest Pipe NQ Retirement Savings Plan (hereinafter referred to as the "Plan") is hereby established as of July 1,
1999 for the exclusive benefit of the Participants on the following terms. 

  ARTICLE 1
       DEFINITIONS         

    The following words and phrases used in the Plan have the meanings set forth below, unless a different meaning is specifically provided for. 

    1.1 "Administrative
Committee" means the committee appointed and acting pursuant to Article 8. 

    1.2 "Base
Salary" means as to each Participant, the amount of compensation established by the Company as his annual rate of cash compensation excluding bonuses and
other forms of compensation. 

    1.3 "Beneficiary"
means the person or persons designated from time to time by the Participant to receive benefits from the Plan upon the death of the Participant. The
designation may be changed by the Participant from time to time by filing a new designation with the Administrative Committee in such form as it may prescribe. 

    If
there is no effective designation at the date of the Participant's death, then the Beneficiary is to be the spouse of the Participant, if then living. If there is no effective
designation at the date of death of
the Participant and if the spouse is not then living, the Beneficiary is to be the Participant's children, in equal shares; or if there be none surviving, the Participant's parents; or if there be
none surviving, the Participant's brothers and sisters, in equal shares; or if there be none surviving, the estate of the Participant. 

    1.4 "Change
of Control" means the purchase or other acquisition by any person, entity or group of persons, within the meaning of §13(d) or
§14(d) of the Securities Exchange Act of 1934 ("Act"), or any comparable successor provisions, of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Act) of 50% or more of either the outstanding shares of common stock or the combined voting power of the Company's then outstanding voting securities entitled to vote generally, or the
approval by the stockholders of the Company of a reorganization, merger, or consolidation, in each case, with respect to which persons who were stockholders of the Company immediately prior to the
reorganization, merger or consolidation do not, immediately thereafter, own more than 50% of the combined voting power entitled to vote generally in the election of directors of the reorganized,
merged or consolidated Company's then outstanding securities, or a liquidation or dissolution of the Company or of the sale of all or substantially all of the Company's assets. 

    1.5 "Company"
means Northwest Pipe Company and any successor to all or a major portion of its assets or business which by appropriate action adopts the Plan. Company is
a corporation with principal offices in the state of Oregon. 

    1.6 "Compensation"
means as to each Participant, all amounts paid or accrued during the Plan Year for services rendered to the Company, including overtime, bonuses,
commissions and elective deferrals to a cash or deferred profit sharing plan. Nonqualified deferred compensation which is paid or becomes taxable to a Participant while still employed by the Company
is excluded from this definition of Compensation. 

    1.7 "Deferral
Account" means the account maintained for each Participant which reflects the deferrals made by the Participant pursuant to Section 3.1 and the
increases or decreases in the value of the Trust Fund allocable thereto, as provided in Article 4 of the Plan. 

1 - NQ PLAN DOCUMENT

    1.8 "Directors" means the Board of Directors of the Company. 

    1.9 "Disability"
means a physical or mental condition of a Participant resulting from bodily injury, disease or mental disorder which qualifies him for benefits under
the long term disability insurance provided by the Company. 

    1.10 "Early
Retirement" means for any Participant the termination of Employee status on or after Early Retirement Age and before Normal Retirement and not working (as
an employee or consultant, etc.) in any industry in which the Company is doing business at the time of the Participant's retirement. 

    1.11 "Early
Retirement Age" means a completion of a period of service of at least ten years and attaining age 55. 

    1.12 "Employee"
means an individual who is employed by the Company to render personal services and whose earnings constitute wages under §3121(a) of the
Internal Revenue Code; but excludes independent contractors. 

    1.13 "ERISA"
means the Employee Retirement Income Security Act of 1974, as amended from time to time. 

    1.14 "Forfeitures"
mean the portion of the Participant's Matching and/or Target Account which a Participant loses under Sections 6.2, 6.3 and/or 6.4. 

    1.15 "Internal
Revenue Code" or "Code" mean the Internal Revenue Code of 1986, as amended or replaced from time to time. 

    1.16 "Matching
Account" means the account maintained for each Participant which reflects the Participant's share of Company matching contributions made pursuant to
Section 3.2 and increases or decreases in the value of the Trust Fund allocable thereto, as provided in Article 4. 

    1.17 "Normal
Retirement" means for any Participant the termination of Employee status on or after Normal Retirement Age and not working (as an employee or consultant,
etc. for at least 5 years or age
68 if sooner) in any industry in which the Company is doing business at the time of the Participant's retirement. 

    1.18 "Normal
Retirement Age" means attaining age 65. 

    1.19 "Participant"
means an Employee who becomes a Participant in the Plan pursuant to Article 2 either as an Officer-Participant or a non-officer
Participant. 

    1.20 "Period
of Participation" is measured from entry into this Plan to severance from service. For vesting purposes, the Period of Participation is to be rounded down
to the nearest integer; and periods of severance are to be disregarded. 

    1.21 "Plan
Year" means the 12 consecutive month period which ends on June 30. 

    1.22 "Target
Account" means the account maintained for each Officer-Participant which reflects the Officer-Participant's share of Company contributions made pursuant to
Section 3.3 and increases or decreases in the value of the Trust Fund allocable thereto, as provided in Article 4. 

    1.23 "Trustee"
means the trustee or trustees under the Trust Agreement referred to in Article 5, or any duly appointed successor. 

    1.24 "Trust
Fund" means all moneys, securities, and assets held by the Trustee pursuant to the terms of the Plan and the Trust Agreement. 

    1.25 "Valuation
Date" means the last day of each Plan Year and any other date on which the Administrative Committee decides to value the Trust Fund. 

2 - NQ PLAN DOCUMENT

  ARTICLE 2
       ELIGIBILITY         

    2.1 PRECONDITION
OF ELIGIBILITY 

    A.  Officers

    The
initial Officer-Participants are the president and vice-presidents of the Company. 

    B.  Non-officers 

    Non-officer
Employees who are invited by the Board are eligible to participate. Only those who elect to defer some of their compensation pursuant to Section 3.1
actually become Participants. 

    2.2 EFFECTIVE
DATE 

    A.  Officer

    An
employee becomes an Officer-Participant effective as of the first day of the Plan Year after promotion to officer. 

    B.  Non-officer 

    An
employee becomes a non-officer Participant effective as of the first day of the Plan Year after he is invited to participate. 

  ARTICLE 3
       CONTRIBUTIONS AND BENEFITS         

    3.1 DEFERRALS

    For
any Plan Year, each Participant may elect to defer some of his Compensation and have such deferred amount allocated to his Deferral Account in accordance with Article 4,
subject to the following rules: 

    A.  The
Administrative Committee (1) shall determine a range of deferral percentages from which Participants may elect, (2) may prescribe the form on
which elections are made, and (3) shall set the conditions related to frequency and advance notice for starting, stopping and changing elections. 

    B.  Notwithstanding
Subsection 3.1A, a Participant's election to defer some of his Compensation must precede the date on which he is entitled to payment. 

    C.  Deferrals
by Participants must be paid over to the Trustee for investment no later than 7 days after the pay date in which they would have been paid to the
Participant. Late contributions will accrue interest to the Trust at 8% per year until paid. 

    3.2 MATCHING
CONTRIBUTIONS 

    A.  For
any Plan Year, the Company may make a discretionary matching contribution. Matching contributions are to be based on deferrals made pursuant to
Section 3.1. 

    B.  Matching
contributions are to be allocated to each Participant's Matching Account in accordance with Article 4. 

    C.  Funding
Dates 

    The
Company shall pay its matching contributions for each Plan Year to the Trustee on any date or dates which the Company may select subject to the consent of the Trustee. Each year's
funding is to be completed by 21/2 months after the end of the Plan Year. Late contributions will accrue interest to the Trust at 8% per year until paid. 

3 - NQ PLAN DOCUMENT

    3.3 TARGET BENEFITS 

    A.  The
Target Benefit 

    The
benefit which is targeted for each Participant is 1% of projected Base Salary in the year before attaining Normal Retirement Age per year of employment (up to 35 years)
with the Company. For example, if an Officer-Participant begins employment with the Company at age 25, his target benefit will be 35% of his projected final Base Salary. An Officer-Participant who
begins employment with the Company at age 50 will have a target benefit of 15% of his final Base Salary. 

    B.  To
Fund the Target Benefit 

    The
Company is to contribute an amount that is estimated to be necessary to fund each Participant's target benefit. Each year's contribution is to be a level percent of the Base
Salary in effect at the end of the Plan Year. The contributions are to be calculated based on the following assumptions: 

	(1)	 	Rate of annual compensation increase:	 	3.0	%
	(2)	 	Pre-retirement interest rate:	 	8.0	%
	(3)	 	Post-employment interest rate:	 	8.0	%
	(4)	 	Mortality Table:	 	UP '84	 

    C.  Funding
Date 

    The
Company shall pay its target contributions for each Plan Year to the Trustee on any date or dates which the Company may select subject to the consent of the Trustee. Each year's
funding is to be completed by 21/2 months after the end of the Plan Year. Late contributions will accrue interest to the Trust at 8% per year until paid. 

    D.  Annual
Funding Flexibility 

    At
any time prior to making the contribution initially determined, the Directors may reduce the amount so determined if, after detailed financial statements have been prepared, they
determine that for reasons of cash flow or other important business or financial considerations, it is prudent to do so. 

    E.  Allocation
of Target Contributions 

    Target
contributions are to be allocated to each Participant's Target Account in accordance with Article 4. 

  ARTICLE 4
       ALLOCATIONS TO PARTICIPANTS' ACCOUNTS         

    4.1 ESTABLISHMENT
OF ACCOUNTS 

    The
Administrative Committee shall establish and maintain a Target Account in the name of each Participant to which Company contributions (made pursuant to Section 3.3) are to
be credited and to which adjustments are to be made in accordance with this Article 4. The Administrative Committee shall also establish and maintain, as necessary, a Deferral and Matching
Account in the name of each Participant. 

    Notwithstanding
the establishment of these accounts, the Participants are unsecured general creditors of the Company with respect to any rights derived by them from the existence of
this Plan. 

    4.2 ALLOCATION
OF MATCHING CONTRIBUTION 

    A.  Type
1 Match: Contemporaneously Funded Matching Contributions 

4 - NQ PLAN DOCUMENT

    The Company's contemporaneously funded matching contributions, if any, for the Plan Year are to be allocated as of the Valuation Date by the Administrative Committee to all
Participants who elected to and did defer some of their Compensation pursuant to Section 3.1. 

    B.  Type
2 Match: Accrued Matching Contributions 

    The
Company's accrued matching contributions, if any, for the Plan Year are to be allocated as of the Valuation Date by the Administrative Committee to all Participants who elected to
and did defer some of their Compensation pursuant to Section 3.1. 

    C.  Allocation
of all Company matching contributions is dependent on employment with the Company on the Valuation Date except for those Participants whose employment
terminates due to death, Disability, Early Retirement or Normal Retirement. 

    4.3 ALLOCATION
OF TARGET CONTRIBUTIONS 

    The
Company's contribution to fund each Officer-Participant's target benefit is to be allocated by the Administrative Committee to the Target Account of each Officer-Participant who
is still an officer and who is still in the employ of the Company on the Valuation Date. 

    Officer-Participants
who were in the employ of the Company during the Plan Year, but who are not still in the employ of the Company on the Valuation Date due to (1) death,
(2) Disability, (3) Early Retirement or (4) Normal Retirement are to be allocated their target contribution. 

    4.4 TRUST
VALUATION AND ADJUSTMENT OF ACCOUNTS 

    A.  The
Trustee shall determine the fair market value of the Trust Fund as of each Valuation Date. To reflect Trust Fund gain or loss ascertained through such
valuation, the accounts maintained for all Participants are to be adjusted by the Administrative Committee as of each Valuation Date to reflect the increases or decreases of the fair market value of
the Trust Fund, dividends, interest, other income or profit received, losses, expenses, contributions, benefit distributions and all other transactions involving the Trust Fund, since the preceding
Valuation Date. 

    B.  The
adjustment to the account of each Participant is to be made by debiting or crediting each such account with a portion of the net increase or decrease in value
of all such accounts of all Participants. 

    The
adjustment to each Participant's account is to be the result of multiplying the net increase or decrease in value of all such accounts of all Participants times a fraction the
denominator of which is the sum of all numerators and the numerator is: (1) for each non-terminated or fully vested Participant's account, the balance of each such Participant's
account immediately prior to the then current Valuation Date plus an appropriate portion of the current Plan Year's deferrals and Company contributions or (2) for the account of each
Participant who terminated before becoming fully vested, the balance of each such Participant's account immediately prior to the then current Valuation Date less the unvested part thereof plus an
appropriate portion of the current Plan Year's deferrals and the vested part of the Company contributions, if any. 

  ARTICLE 5
       INVESTMENT AND MANAGEMENT OF THE TRUST FUND         

    5.1 APPOINTMENT
OF TRUSTEE 

    The
Directors shall select and appoint a trustee or trustees (the "Trustee"), and the Company shall enter into a Trust Agreement with such Trustee to provide for the holding,
investment and administration of the funds of the Plan and Trust. The Trust Fund is to be administered by the Trustee in accordance with the terms and provisions of the Trust Agreement. 

5 - NQ PLAN DOCUMENT

    5.2 BENEFICIAL OWNERSHIP OF TRUST FUND 

    Beneficial
ownership of any and all assets of the Trust Fund (whether cash, bonds, stocks, mutual fund shares or other investments) is to remain in the Company. Participants have no
property interest in any specific assets of the Company or the Trust. 

    5.3 TRUST
AGREEMENT CONTROLS 

    If
the provisions of the Plan and the Trust Agreement are inconsistent or otherwise in conflict regarding the rights, duties or obligations of the Trustee, the provisions of the Trust
Agreement are to control. 

  ARTICLE 6
       RIGHT TO BENEFITS         

    6.1 DEFERRAL
ACCOUNT 

    A.  Fully
Vested 

    A
Participant's interest in his Deferral Account is at all times fully vested and nonforfeitable. The Deferral Account will be distributable in accordance with (i) Sections
7.1, 7.2 and 7.3 upon the Participant's death, Disability, Early Retirement, attaining age 60 after termination of employment or Normal Retirement; (ii) Subsection 6.1B if so elected;
(iii) Subsection 6.1C upon incurring a financial emergency; (iv) Subsection 6.1D if a haircut is requested; or (v) Section 6.6 upon constructive receipt. 

    All
distributions are subject to any limitations established by the Administrative Committee and uniformly applied in a nondiscriminatory manner. 

    B.  Pre-entry
Election 

    Before
an Employee is first eligible to elect deferral of any of his compensation pursuant to Section 3.1, he may irrevocably specify when the benefits in his Deferral Account
will become payable. 

    C.  Financial
Emergency Hardship 

    (1) Upon
the application of any Participant, the Administrative Committee, in accordance with a uniform nondiscriminatory policy, may, in its discretion, permit such
Participant to withdraw that portion of his Deferral Account which is necessary to meet an unforeseen emergency that is caused by an event beyond the control of the Participant and did (or would)
result in severe financial hardship to the Participant. 

    (2) Withdrawal
may not be made to the extent that the hardship is or may be relieved (i) through reimbursement or compensation by insurance, (ii) by
liquidation of the Participant's assets, to the extent the liquidation of such assets would not itself cause severe financial hardship and/or (iii) by cessation of deferrals pursuant to
Section 3.1 as of the beginning of the next Plan Year. 

    D.  Haircut 

    (1) Notwithstanding
anything to the contrary in this Plan other than Subsection 6.1D(2), a Participant may, at any time, elect that a specified amount of his benefits
from the Deferral Account is to become payable. 

    (2) 10%
of the amount specified pursuant to Subsection 6.1D(1) is to be forfeited at the same time as payment to the Participant is made. 

6 - NQ PLAN DOCUMENT

 

    6.2 MATCHING
ACCOUNT 

    A.  Distribution 

    The
vested Matching Account will be distributable in accordance with Sections 7.1, 7.2 and 7.3 upon the Participant's death, Disability, Early Retirement, attaining age 60 after
termination of employment, Normal Retirement or constructive receipt as provided in Section 6.6. 

    B.  Full
Vesting 

    A
Participant's interest in his Matching Account is fully vested and nonforfeitable on the date such Participant ceases to be an Employee if such termination of employment is caused
by reason of (1) death or (2) Disability. It will also become fully vested and nonforfeitable upon the demotion of officer after a Change of Control or the exercise by the Board pursuant
to Subsection 3.3D to totally forgo funding of the Target contributions for 3 consecutive years. 

    C.  Vesting
Schedule for Terminees 

    Up
to 80% of the Matching Account balance will vest based on years of participation in this plan as follows: 

	Years of

Participation
	 	Vested

Percent
	 
	1	 	20	%
	2	 	40	%
	3	 	60	%
	4	 	80	%

    From
80% to 100% vesting is based on age during the 4 years preceding normal retirement age as follows: 

	Years

of Age
	 	Vested

Percent
	 
	62	 	85	%
	63	 	90	%
	64	 	95	%
	65	 	100	%

    Attainment
of age 62 before 4 years of participation accelerates vesting to 85%, attainment of age 63 accelerates vesting to 90%, etc. 

    6.3 TARGET
ACCOUNT 

    A.  Distribution

    The
vested Target Account will be distributable in accordance with Sections 7.1, 7.2 and 7.3 upon the Participant's death, Disability, Early Retirement, attaining age 60 after
termination of employment, Normal Retirement or constructive receipt as provided in Section 6.6. 

    B.  Full
Vesting 

    A
Participant's interest in his Targets Account is fully vested and nonforfeitable on the date such Participant ceases to be an Employee if such termination of employment is caused by
reason of (1) death or (2) Disability. It will also become fully vested and nonforfeitable upon the demotion of officer after a Change of Control or the exercise by the Board pursuant to
Subsection 3.3D to totally forgo funding of the Target contributions for 3 consecutive years. 

    C.  Vesting
Schedule for Terminees 

7 - NQ PLAN DOCUMENT

    Up to 80% of the Target Account balance will vest based on years of participation in this plan as follows: 

	Years of

Participation
	 	Vested

Percent
	 
	1	 	20	%
	2	 	40	%
	3	 	60	%
	4	 	80	%

    From
80% to 100% vesting is based on age during the 4 years preceding normal retirement age as follows: 

	Years

of Age
	 	Vested

Percent
	 
	62	 	85	%
	63	 	90	%
	64	 	95	%
	65	 	100	%

    Attainment
of age 62 before 4 years of participation accelerates vesting to 85%, attainment of age 63 accelerates vesting to 90%, etc. 

    D.  Use
of Forfeitures 

    The
portion of the Target and Matching Accounts which is not, at the time the Participant terminates his status as an Employee, vested in accordance with the schedules set forth in
Subsections 6.2C and 6.3C, is to be forfeited, held in a suspense account to which no investment gains or losses are to be allocated and used in the
next Plan Year to reduce Company contributions to the Plan. 

    6.4. BAD-BOY
FORFEITURES 

    Notwithstanding
Subsections 6.2C and 6.3C, a Participant who is terminated for proven or admitted gross misconduct or dishonesty or who competes sooner than the earlier of
5 years after termination of employment or attaining age 68 forfeits his Target and Matching Accounts. 

    6.5 POST-TERMINATION
DEATH 

    If
a Participant entitled to benefits dies after termination of his status as an Employee but prior to complete distribution of his benefits, the fully vested undistributed portion of
his accounts is to be paid to his Beneficiary in accordance with Article 7. 

    6.6 CONSTRUCTIVE
RECEIPT 

    If,
due to a change in law, a Participant's benefits become subject to income taxes prior to actual receipt, notwithstanding anything to the contrary in this Plan, an amount equal to
the increase in income taxes caused thereby is to become distributable. 

  ARTICLE 7
       DISTRIBUTION OF BENEFITS         

    7.1 TIME
OF DISTRIBUTION 

    A.  The
benefits to which a Participant is entitled in accordance with Article 6 are to begin no later than 60 days after the end of the Plan Year in
which the Participant becomes entitled to payment of his benefits. 

8 - NQ PLAN DOCUMENT

    B.  The Administrative Committee may delay the distribution of benefits for administrative reasons up to 60 days after the latest of (1) the date the
amount is known or (2) the date an application for benefits is received. 

    7.2 NORMAL
FORM OF BENEFIT DISTRIBUTION 

    A.  Unless,
at the Participant's request, an optional form of benefit distribution is permitted by the Directors, a Participant's account balances are to be paid in
annual installments over the life expectancy of the Participant. 

    B.  The
life expectancy of the Participant is to be rounded to the nearest integer, fixed and is to be based on Table V of Treasury Regulation
§1.72-9. Each annual installment is to be based on the number of remaining years of original life expectancy and the re-valued account balance to the credit of the
Participant. 

    C.  The
source of each installment payment is to be considered to come from the Participant's accounts in the following order until exhausted: (i) Deferral,
(ii) Matching and (iii) Target. 

    7.3 OPTIONAL
FORMS OF BENEFIT DISTRIBUTION 

    A.  Method
of Distribution 

    A
distribution of benefits payable to a Participant may be made in any alternate form which the Directors select, such as: 

    (1) One
lump sum payment; or 

    (2) Semi-annual,
quarterly or monthly installments of substantially equal designated amounts or of a designated percentage of the value of the account of
the Participant over a period of years certain as determined by the Administrative Committee; provided, that such period does not extend beyond the life expectancy of such Participant. 

    B.  Acceleration
of Installments 

    If
the amounts credited to the accounts of a Participant are paid to the Participant in installments, the Directors may at any time during the period of such payments determine that
the unpaid balance of such accounts is to be distributed in a lump sum. 

    If
a Participant dies before the entire amounts credited to his accounts are paid, the amounts remaining are to be paid to Participant's Beneficiary in such method as the Directors
may determine. 

    7.4 DEATH
OF BENEFICIARY 

    If,
after the death of the Participant, a Beneficiary is receiving benefits and dies before complete distribution of benefits, the balance is to be paid in a lump sum to the
Beneficiary's estate. 

    7.5 INCOME
TAX WITHHOLDING 

    The
Company may withhold from any payments any income tax or other amounts as required by law. 

    7.6 FICA
TAXES 

    The
Participant's share of the FICA taxes remains the obligation of the Participant. As any FICA tax liability of the Participant becomes payable, the Participant may elect to have it
withheld from his regular compensation or to directly reimburse the Company within 45 days after notice to Participant of the amount due. Thereafter, should the Company remain unreimbursed,
notwithstanding anything contained herein to the contrary, it may satisfy its claim for reimbursement from assets of the Trust Fund. 

9 - NQ PLAN DOCUMENT

  ARTICLE 8
       ADMINISTRATION OF THE PLAN         

    8.1 ALLOCATION
OF AUTHORITY 

    The
authority to control and manage the operation and administration of the Plan is to be allocated among the Directors, the Administrative Committee appointed pursuant to
Section 8.2, and the Trustee appointed pursuant to Article 5. The Directors have the exclusive authority and responsibility to select the
Trustee. The Trustee has the authority and responsibility to manage and control the assets of the Trust Fund in accordance with the provisions of the
Trust Agreement. The Administrative Committee has the exclusive authority and responsibility for all matters in connection with the operation and
administration of the Plan not specifically allocated to the Directors or the Trustee, and is the "named fiduciary" and "administrator" of the Plan within the meaning of ERISA. The  Administrative Committee's powers and duties include, but are not limited to the following: 

    A.  Responsibility
for the compilation and maintenance of all records necessary in connection with the Plan; 

    B.  Authorizing
the payment of all benefits as they become payable under the Plan, which payments are to be made by the Trustee upon the written instructions of the
Administrative Committee; 

    C.  Deciding
questions relating to the eligibility of Employees to become Participants, the determination of Vesting, the right to benefits and the availability of any
elections permitted by the Plan; 

    D.  Authority
to engage such legal, accounting, and other professional and clerical services as may be required by ERISA or as it may deem proper; 

    E.  Authority
to interpret this instrument and to make and publish such uniform and nondiscriminatory rules for administration of the Plan as are not inconsistent with
the provisions of this instrument. 

    8.2 COMPOSITION
OF ADMINISTRATIVE COMMITTEE 

    The
Administrative Committee shall hold office at the pleasure of the Directors of the Company. Any member may resign by filing a written notice of his resignation with the president,
and the vacancy is to be promptly filled by the Directors. The Directors are to certify the names and signatures of the members of the Administrative Committee to the Trustee in writing. The
Administrative Committee is to act by agreement of a majority of its members, either by vote at a meeting or in writing without a meeting. 

    8.3 DELEGATION
OF AUTHORITY 

    The
Administrative Committee, from time to time, may allocate to any other person any of its rights, powers, and duties with respect to the operation and administration of the Plan.
Any such allocation is to be terminable upon such notice as the Administrative Committee in its sole discretion deems reasonable and prudent under the circumstances. 

    8.4 COMPENSATION
AND EXPENSES OF ADMINISTRATIVE COMMITTEE 

    The
members of the Administrative Committee are to receive no compensation from the Trust Fund for services in administering the Plan, but are entitled to reimbursement from the
Company for all expenses incurred in the administration of the Plan. 

    8.5 FIDUCIARY
DUTIES 

10 - NQ PLAN DOCUMENT

    Each of the Directors, each member of the Administrative Committee, the Trustee and any other person to whom any fiduciary responsibility with respect to the Plan is allocated is a
fiduciary of the Plan. Each fiduciary shall discharge his duties and responsibilities with respect to the Plan solely in the interest of the Participants, and 

    A.  For
the exclusive purpose of providing benefits to Participants and defraying reasonable expenses of administering the Plan; 

    B.  With
the care, skill, prudence and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters
would use in the conduct of an enterprise of a like character and with like aims; 

    C.  To
the extent the authority and responsibility is allocated to them, by diversifying the investments of the Trust Fund so as to minimize the risk of large losses,
unless under the circumstances it is clearly prudent not to do so; and 

    D.  In
accordance with the Plan and the Trust Agreement, to the extent such provisions are consistent with ERISA. 

    8.6 ALLOCATION
OF FIDUCIARY RESPONSIBILITY 

    Each
fiduciary under the Plan shall be solely responsible for his own acts or omissions. No fiduciary has any liability for a breach of fiduciary responsibility of another fiduciary
with respect to the Plan unless he participates knowingly in such breach, knowingly undertakes to conceal such breach, fails to take reasonable remedial action to remedy such breach, or (through his
negligence in performing those specific fiduciary responsibilities which give rise to his status as a fiduciary) has enabled another fiduciary to commit a breach of the latter's fiduciary
responsibilities. 

    8.7 INDEMNIFICATION
OF FIDUCIARIES 

    The
Company shall indemnify and hold harmless the Directors, the members of the Administrative Committee, and any other person to whom any fiduciary duty with respect to the Plan is
allocated pursuant to Section 8.3 from and against any and all liabilities, claims, demands, costs and expenses, including attorneys' fees, arising out of an alleged breach in the performance
of their fiduciary duties under the Plan and under ERISA, other than such liabilities, claims, demands, costs, and expenses as may result from the gross negligence or willful misconduct of such
persons. The Company has the right,
but not the obligation, to conduct the defense of such persons in any proceeding to which this section applies. The Company may satisfy its obligations under this section in whole or in part through
the purchase of a policy or policies of insurance. 

  ARTICLE 9
       AMENDMENTS TO THE PLAN         

    As the provisions of the Plan apply to future participants, the Company reserves the right to amend the provisions of the Plan to any extent and in any manner
deemed appropriate to its Directors. Only with the consent of each Participant for himself may the Company amend, either prospectively or retroactively, the provisions of the Plan. 

    No
amendment is to operate to: 

    A.  cause
any part of the Trust Fund to revert to or be recoverable by the Company or to be used for, or diverted to, purposes other than the exclusive benefit of
Participants or the Company's creditors upon insolvency or bankruptcy of the Company; 

    B.  reduce
the then accrued benefits or the amounts then held for the benefit of any Participant; or 

11 - NQ PLAN DOCUMENT

    C.  change the duties, responsibilities or liabilities of the Trustee without his written consent. 

  ARTICLE 10
       MISCELLANEOUS         

    10.1  RECEIPT AND RELEASE FOR PAYMENTS  

    Any
payment to a Participant or his Beneficiary, in accordance with the terms of this Plan and the Trust Agreement, is to the extent thereof in full satisfaction of all claims such
person may have against the Trustee, the Administrative Committee and the Company, any of whom may require, as a condition precedent to such payment, the execution of a receipt and release in such
form as is determined by the Trustee and the Administrative Committee. 

    10.2  CONSTRUCTION AND SEVERABILITY  

    This
instrument creating the Plan shall be construed, administered, and governed in all respects in accordance with ERISA and other pertinent federal laws, and the laws of Oregon to
the extent not preempted by ERISA. If any provision of this Plan are held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions of the Plan are to continue to
be fully effective. 

    10.3  HEADINGS, NUMBER AND GENDER  

    The
headings and subheadings of this instrument are inserted for convenience of reference only and are not to be considered in the construction of this Plan. Wherever appropriate,
words used in the singular may include the plural, plural may be read as the singular, and the masculine may include the feminine. 

    10.4  ALIENATION  

    No
person entitled to any benefits under this Plan has any right to alienate, hypothecate or encumber his interest in any benefits under this Plan, and such benefits are not in any
way to be subject to the claim of his creditors or be liable to attachment, execution or other process of law. 

    10.5  REVERSION TO COMPANY  

    All
assets held in the Trust Fund are to be held for the benefit of the Participants, and are not to revert to or inure to the benefit of the Company, except under one of the
following circumstances: 

    A.  insolvency
or bankruptcy of the Company; 

    B.  contribution
was made by the Company by mistake; 

    C.  forfeiture
of benefits; or 

    D.  allocation
to an unallocated suspense account. 

    10.6  APPLICATION FOR BENEFITS  

    A.  All
applications for benefits under the Plan are to be submitted to the Administrative Committee; or its designated agent for submission to it. 

    B.  If
the application is approved, the applicant will be notified in writing of such approval. 

    C.  Within
45 days of receipt of an incomplete application, the Administrative Committee shall notify the applicant, in writing, of that which is needed to
complete the application; and that the applicant has 180 days from such notice to provide it. 

    Within
45 days of the earlier of (1) receipt of a completed application or (2) 180 days after notice to the applicant that it was incomplete, the
Administrative Committee shall notify the applicant of its decision. 

12 - NQ PLAN DOCUMENT

    D.  If the application is wholly or partially denied, the Administrative Committee shall notify the person requesting the benefit, in writing, of such denial, including
in such notification the following information: 

	(1)
	the
specific reason or reasons for such denial;

	(2)
	specific
references to pertinent Plan provisions upon which the denial is based;

	(3)
	a
description of any additional material or information which may be needed to clarify or perfect the request, and an explanation of why such information is required; and

	(4)
	an
explanation of the Plan's review procedures with respect to the denial of benefits. 

    Such
notification of approval or denial is to be given within 45 days of receipt of the application unless special circumstances require an extension of time which in no event
is to exceed an additional 90 days. If such an extension is required, the applicant is to be notified in writing within the initial 45 day period of the special circumstances requiring
the extension and the expected date of decision. If a timely notification of approval or denial is not received by an applicant, the application will be deemed to have been denied as of the end of the
time period specified for such notification, including any obtained extensions of time, and such applicant may proceed to the appeal stage described in Section 10.7. 

    10.7  APPEAL OF BENEFIT DENIAL  

    Any
applicant, or the legal representative of any applicant, whose request has been denied may appeal for reconsideration to the Directors by making a written request therefor within
180 days of receipt of the notification of denial. Such applicant or his legal representative may examine documents pertinent to the review and may submit to the Directors written issues and
comments. 

    The
Directors shall act upon each such appeal for reconsideration within 60 days after its receipt unless special circumstances require an extension of time, in which case a
decision will be rendered as soon as possible, but not later than 120 days after receipt of the applicant's appeal. In the event the Directors deny an appeal in whole or in part, the Directors
shall give written notice of its decision to the applicant within the specified period of time for rendering a decision setting forth the specific reasons for such denial and specific references to
the pertinent Plan provisions on which the Directors' decision was based. 

    This
Plan has been executed by the president of the Company on this 6th day of June, 2000. 

	 	 	NORTHWEST PIPE COMPANY
	 

 	 
 	 

By	 

 
	 	 	 	
Brian Dunham, President

13 - NQ PLAN DOCUMENT

QuickLinks

NORTHWEST PIPE NQ RETIREMENT SAVINGS PLAN

ARTICLE 1 DEFINITIONS

ARTICLE 2 ELIGIBILITY

ARTICLE 3 CONTRIBUTIONS AND BENEFITS

ARTICLE 4 ALLOCATIONS TO PARTICIPANTS' ACCOUNTS

ARTICLE 5 INVESTMENT AND MANAGEMENT OF THE TRUST FUND

ARTICLE 6 RIGHT TO BENEFITS

ARTICLE 7 DISTRIBUTION OF BENEFITS

ARTICLE 8 ADMINISTRATION OF THE PLAN

ARTICLE 9 AMENDMENTS TO THE PLAN

ARTICLE 10 MISCELLANEOUS

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