Document:

Exhibit
      10.3

    AMENDED
      AND RESTATED

    EXECUTIVE
      SALARY CONTINUATION AGREEMENT

    

    This
      amended and restated executive salary agreement (“Agreement”) by and between
      United Security Bank, a California banking corporation (the “Employer”), and
      Kenneth L. Donahue, an individual residing in the State of California
      (hereinafter referred to as the “Executive”) amends and restates the executive
      salary continuation agreement (“Original Agreement”) made and entered into on
      January 2, 1997, by and between Employer and Executive.

    

    RECITALS

    

    WHEREAS,
      the Executive is an employee of the Employer and is serving as its Chief
      Financial Officer;

    

    WHEREAS,
      the Executive and the Employer entered into the Original Agreement, and the
      parties wish to make such amendments to the Original Agreement so as to comply
      with Section 409A of the Internal Revenue Code of 1986, as amended (“Code”) and
      the regulations promulgated thereunder.

    

    NOW,
      THEREFORE, in consideration of the services to be performed in the future,
      as
      well as the mutual promises and covenants contained herein, the Executive and
      the Employer agree as follows:

    

    AGREEMENT

    

    1. Terms
      and Definitions.

    

    1.1. Administrator.
      The
      Employer shall be the “Administrator” and, solely for the purposes of ERISA, the
“fiduciary” of this Agreement where a fiduciary is required by
      ERISA.

    

    1.2. Annual
      Benefit.
      The
      term “Annual Benefit” shall mean an annual sum of fifty thousand dollars
      ($50,000) multiplied by the Applicable Percentage (defined below) and then
      reduced to the extent required: (i) under the other provisions of this
      Agreement; (ii) by reason of the lawful order of any regulatory agency or body
      having jurisdiction over the Employer; and (iii) in order for the Employer
      to
      properly comply with any and all applicable state and federal laws, including,
      but not limited to, income, employment and disability income tax laws (eg.,
      FICA, FUTA, SDI).

    

    1.3. Applicable
      Percentage.
      The
      term “Applicable Percentage” shall mean that percentage listed on Schedule “A”
attached hereto which is adjacent to the number of complete years (with a “year”
being the performance of personal services for or on behalf of the Employer
      as
      an employee for a period of 365 days) which have elapsed starting from the
      Effective Date and ending on the date the Executive’s employment is terminated
      for purposes of this Agreement. In the event the Executive’s employment with the
      Employer is terminated other than by reason of death, disability, termination
      for cause or Retirement on the part of the Executive, the Executive
      shall be deemed for purposes of determining the number of complete years to
      have
      completed a year of service in its entirety for any partial year of service
      after the last anniversary date of the Effective Date during which the
      Executive’s employment is terminated, provided that in no event shall the
      Executive be deemed to have completed a year of service for the partial year
      that occurs prior to the first anniversary date of the Original
      Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    1.4. Beneficiary.
      The
      term “beneficiary” or “designated beneficiary” shall mean the person or persons
      whom the Executive shall designate in a valid beneficiary designation
      (“Beneficiary Designation”), a copy of which is attached hereto as Exhibit “B”,
      to receive the benefits provided hereunder. A Beneficiary Designation shall
      be
      valid only if it is in the form attached hereto and made a part hereof and
      is
      received by the Administrator prior to the Executive’s death. The Executive's
      beneficiary designation shall be deemed automatically revoked if the Beneficiary
      predeceases the Executive or if the Executive names a spouse as Beneficiary
      and
      the marriage is subsequently dissolved. Upon the acceptance by the Administrator
      of a new Beneficiary Designation Form, all Beneficiary designations previously
      filed shall be cancelled. The Administrator shall be entitled to rely on the
      last Beneficiary Designation Form filed by the Executive and accepted by the
      Administrator prior to the Executive’s death.

    

    1.5. The
      Code.
      The
“Code” shall mean the Internal Revenue Code of 1986, as amended (the
“Code”).

    

    1.6. Disability/Disabled.
      The
      term “Disability” or “Disabled” means disabled within the meaning of Internal
      Revenue Code section 409A and regulations promulgated thereunder.

    

    1.7. Effective
      Date. The term “Effective Date” shall mean the date upon which the Original
      Agreement was entered into by the parties.

    

    1.8. ERISA.
      The
      term “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as
      amended.

    

    1.9. Plan
      Year.
      The
      term “Plan Year” shall mean the Employer’s calendar year.

    

    1.10. Retirement.
      The
      term “Retirement” or “Retires” shall refer to the date on which the Executive
      (i) attains the age of at least fifty-nine (59) and (ii) terminates full-time
      salaried employment with the Employer for any reason other than Termination
      for
      Cause and such termination constitutes a Separation of Service.

    

    1.11. Separation
      of Service.
      The
      term “Separation from Service” means the Executive’s service as an executive
      and/or independent contractor to the Employer and any member of a controlled
      group that includes Employer, as defined in Code section 414, terminates for
      any
      reason, other than because of a leave of absence approved by the Company,
      Disability or the Executive’s death. Whether a Separation from Service takes
      place is determined based (i) on the facts and circumstances surrounding the
      termination of the Executive’s employment, (ii) whether the Employer and the
      Executive intended for the Executive to provide significant services for the
      Employer following such termination and (iii) the application of facts and
      circumstances in view of the presumptions contained in the regulations to
      section 409A of the Code. For purposes of this Agreement, if there is a dispute
      about the employment status of the Executive or the date of the Executive’s
      Separation from Service, the Employer shall have the sole and absolute right
      to
      decide the dispute.

    

    
      
         

      

      
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    1.12. Surviving
      Spouse.
      The
      term “Surviving Spouse” shall mean the person, if any, who shall be legally
      married to the Executive on the date of the Executive’s death.

    

    1.13. Termination
      for Cause.
      The
      term “Termination for Cause” shall mean the termination of the Executive by the
      Employer upon the occurrence of any of the following events:

    

    (i) the
      Executive is convicted of illegal activity by a court of competent jurisdiction
      or pleads guilty to or nolo contendere to illegal activity, which activity
      materially adversely affects the Employer’s reputation in the community or which
      evidences the lack of the Executive’s fitness or ability to perform the
      Executive’s duty as determined by the Board of Directors in good
      faith;

    

    (ii) the
      Executive has committed any illegal or dishonest act which would cause
      termination of coverage under the Employer’s Bankers’ Blanket Bond as to the
      Executive, as distinguished from termination of coverage as to the Employer
      as a
      whole;

    

    (iii) the
      Executive materially fails to perform, or habitually neglects, the Executive’s
      duties or commits a material act of malfeasance or misfeasance in connection
      therewith; or

    

    (iv) an
      action
      is commenced by any bank regulatory agency having jurisdiction, to remove or
      suspend the Executive from office, or a cease and desist order under 12 U.S.C.
      1818(b) or any similar Federal or state statute is issued against the Executive
      or the Employer which calls for the Executive’s suspension or removal from
      office.

    

    2. Scope,
      Purpose and Effect.

    

    2.1. Contract
      of Employment.
      Although this Agreement is intended to provide the Executive with an additional
      incentive to remain in the employ of the Employer, this Agreement shall not
      be
      deemed to constitute a contract of employment between the Executive and the
      Employer nor shall any provision of this Agreement restrict or expand the right
      of the Employer to terminate the Executive’s employment. This Agreement shall
      have no impact or effect upon any separate written employment agreement which
      the Executive may have with the Employer, it being the parties’ intention and
      agreement that unless this Agreement is specifically referenced in said
      employment agreement (or any modification thereto), this Agreement (and the
      Employer’s obligations hereunder) shall stand separate and apart and shall have
      no effect upon, nor be affected by, the terms and provisions of said employment
      agreement.

    

    2.2. Fringe
      Benefit.
      The
      benefits provided by this Agreement are granted by the Employer as a fringe
      benefit to the Executive and are not a part of any salary reduction plan or
      any
      arrangement deferring a bonus or a salary increase. The Executive has no option
      to take any current payments or bonus in lieu of the benefits provided by this
      Agreement.

    

    
      
         

      

      
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    3. Payments
      Upon or After Retirement.

    

    3.1. Payments
      Upon Retirement.
      If the
      Executive shall remain in the continuous employment of the Employer until
      Retirement, then the Executive shall be entitled to be paid the Annual Benefit,
      with the Applicable Percent equal to 100% for a period of fifteen (15) years,
      in
      one hundred eighty (180) equal monthly installments, with each installment
      to be
      paid on the first day of each month, beginning with the month following the
      month in which the Executive, except that if Executive is a “specified employee”
as defined in Section 11.14, then the payment provided in this Section 3.1
      shall
      be deferred as provided in Section 11.14.

    

    3.2. Payments
      in the Event of Death After Retirement.
      The
      Employer agrees that if the Executive Retires, but shall die before receiving
      all of the one hundred eighty (180) monthly payments described in Section 3.1
      above, the Employer will make the remaining monthly payments, undiminished
      and
      on the same schedule as if the Executive had not died, to the Executive’s
      designated beneficiary. If a valid Beneficiary Designation is not in effect,
      then the remaining amounts due to the Executive under the term of this Agreement
      shall be paid to the Executive’s Surviving Spouse. If the Executive leaves no
      Surviving Spouse, the remaining amounts due to the Executive under the terms
      of
      this Agreement shall be paid to the duly qualified personal representative,
      executor or administrator of the Executive’s estate.

    

    4. Payments
      in the Event Death or Disability Occurs Prior to
      Retirement.

    

    4.1. Payments
      in the Event of Death Prior to Retirement.
      In the
      event the Executive should die while actively employed by the Employer at any
      time after the Effective Date, but prior to Retirement, the Employer agrees
      to
      pay the Annual Benefit with the Applicable Percentage equal to 100% for a period
      of fifteen (15) years in one hundred eighty (180) equal monthly installments,
      with each installment to be paid on the first of each month beginning with
      the
      month following the Executive’s death, to the Executive’s designated
      beneficiary. If a valid Beneficiary Designation is not in effect, then the
      amounts due to the Executive under the terms of this Agreement shall be paid
      to
      the Executive’s Surviving Spouse. If the Executive leaves no Surviving Spouse,
      the amounts due to the Executive under the terms of this Agreement shall be
      paid
      to the duly qualified personal representative, executor or administrator of
      the
      Executive’s estate.

    

    4.2. Payments
      in the Event of Disability Prior to Retirement.
      In the
      event the Executive becomes Disabled while actively employed by the Employer
      at
      any time after the date of this Agreement but prior to Retirement, the Executive
      shall: (i) continue to be treated during such period of Disability as being
      gainfully employed by the Employer but shall not add applicable years of service
      for the purpose of determining the Annual Benefit; and (ii) subject to any
      applicable deferral period as set forth in Section 11.14 herein, be entitled
      to
      be paid the Annual Benefit, with the Applicable Percentage as set forth in
      Schedule A and as determined by the applicable years of service at the time
      of
      disability, for fifteen (15) years in one hundred eighty (180) equal monthly
      installments with each installment to be paid on the first day of each month,
      beginning with the month following the earlier of (1) the month in which the
      Executive attains fifty-nine (59) years of age; or (2) the date upon which
      the
      Executive is no longer entitled to receive Disability benefits under the
      Executive’s principal Disability insurance policy and does not, at such time,
      return to and thereafter fulfill the responsibilities associated with the
      employment position held with the Employer prior to becoming Disabled by reason
      of such Disability continuing. 

    

    
      
         

      

      
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    Notwithstanding
      the foregoing, in the event the Executive should die while actively or gainfully
      employed by the Employer at any time after the Effective Date and prior to
      (i)
      Retirement and (ii) the commencement of any payments under this Section 4.2,
      the
      payments provided in Section 4.1 herein shall be paid in lieu of the payments
      provided in this Section 4.2.

    

    5. Payments
      in the Event Employment is Terminated Other than by Death,
      Disability, Termination for Cause or Retirement.

    

    As
      indicated in Section 2 above, the Employer reserves the right to terminate
      the
      Executive’s employment, with or without cause but subject to any written
      employment agreement which may then exist, at any time prior to the Executive’s
      Retirement. In the event that the employment of the Executive shall be
      terminated for any reason, including voluntary termination by the Executive,
      but
      other than by reason of (i) Disability (ii) death, (iii) Termination for Cause,
      or (iv) Retirement, the Executive or his legal representative shall be entitled
      to be paid the Annual Benefit, with the Applicable Percentage as set forth
      in
      Schedule A and as determined by the applicable years of service at the time
      of
      termination of employment with the Employer, for a period of fifteen (15) years
      in one hundred eighty (180) equal monthly installments, with each installment
      to
      be paid on the first day of each month, beginning with the month following
      the
      month in which the Executive attains fifty-nine (59) years of age, except that
      if Executive is a “specified employee” as defined in Section 11.14, then the
      payment provided in this Section 5 shall be deferred as provided in Section
      11.14. 

    

    In
      addition, in the event the Executive dies after such termination as set forth
      in
      the first sentence of this Section 5, but prior to age 59 then such benefits
      are
      to be paid beginning with the month following the Executive’s death to the
      Executive’s designated beneficiary. If a valid Beneficiary Designation is not in
      effect, then such benefits due the Executive under this paragraph shall be
      paid
      to the Executive’s Surviving Spouse, and if the Executive leaves no Surviving
      Spouse, then such benefits shall be paid to the duly qualified personal
      representative, executor or administrator of the Executive’s estate for the
      benefit of the Executive’s estate.

    

    In
      the
      event the Executive is entitled to benefits under the first paragraph of this
      Section 5, but dies at or after age 59 and before receiving all of the monthly
      payments described in the first paragraph of this Section 5, the Employer will
      make the remaining monthly payments, undiminished and on the same schedule
      as if
      the Executive had not died, to the Executive's designated beneficiary. If the
      Executive dies without a valid beneficiary designation, then such benefits
      due
      the Executive under the this paragraph shall be paid to the Executive’s
      Surviving Spouse, and if the Executive leaves no Surviving Spouse, then such
      benefits shall be paid to the duly qualified personal representative, executor
      or administrator of the Executive’s estate for the benefit of the Executive’s
      estate.

    

    Executive
      agrees that the payment of benefits pursuant to this Section 5 to the extent
      Executive is entitled to such benefits is in lieu of any other benefits under
      this Agreement.

     

    
      
         

      

      
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    6. Termination
      for Cause.

    

    Notwithstanding
      anything to the contrary, in the event the termination of employment of the
      Executive is Termination for Cause as defined in Section 1.13, the Executive
      shall not be entitled to any benefits pursuant to this agreement.

    

    7. No
      Ownership Rights to the Employer’s Assets.

    

    The
      Employer reserves the right to determine, in its sole and absolute discretion,
      whether, to what extent and by what method, if any, to provide for the payment
      of the amounts which may be payable to the Executive, the Executive’s spouse or
      the Executive’s beneficiaries under the terms of this Agreement (“Benefits”).
      The rights of the Executive or any beneficiary of the Executive under this
      Agreement shall be solely those of an unsecured creditor of the
      Employer.

    

    In
      the
      event that the Employer, in its sole and absolute discretion, elects to acquire
      an insurance policy, an annuity or any other asset to recoup the costs or any
      portion thereof of the Benefits, then such insurance policy, annuity or other
      asset shall not be deemed to be held under any trust for the benefit of the
      Executive or his beneficiaries or to be security for the performance of the
      obligations of the Employer under this Agreement, but shall be, and remain,
      a
      general unpledged, unrestricted asset of the Employer. The Executive and his
      beneficiaries shall have no rights whatsoever with respect to, or any claim
      against, any such insurance policy, annuity or other asset. In connection with
      the Employer electing to acquire any such insurance policy or annuity, the
      Executive agrees to cooperate to facilitate such acquisition, and pursuant
      thereto shall execute such documents and undergo such medical examinations
      or
      tests as the Employer may reasonably request.

    

    8. Claims
      Procedure.

    

    The
      Employer shall, but only to the extent necessary to comply with ERISA, be
      designated as the named fiduciary under this Agreement and shall have authority
      to control and manage the operation and administration of this Agreement.
      Consistent therewith, the Employer shall make all determinations as to the
      rights to benefits under this Agreement. Any decision by the Employer denying
      a
      claim by the Executive, the Executive’s spouse, or the Executive’s beneficiary
      for benefits under this Agreement shall be stated in writing and delivered
      or
      mailed, via registered or certified mail, to the Executive, the Executive’s
      spouse or the Executive’s beneficiary, as the case may be. Such decision shall
      set forth the specific reasons for the denial of a claim. In addition, the
      Employer shall provide the Executive, the Executive’s spouse or the Executive’s
      beneficiary with a reasonable opportunity for a full and fair review of the
      decision denying such claim.

    

    9. Status
      of an Unsecured General Creditor.

    

    Notwithstanding
      anything contained herein to the contrary: (i) neither the Executive, the
      Executive’s spouse nor the Executive’s beneficiary shall have any legal or
      equitable rights, interests or claims in or to any specific property or assets
      of the Employer; (ii) none of the Employer’s assets shall be held in or under
      any trust for the benefit of the Executive, the Executive’s spouse or the
      Executive’s beneficiary or held in any way as security for the fulfillment of
      the obligations of the Employer under this Agreement; (iii) all of the
      Employer’s assets shall be and remain the general unpledged and unrestricted
      assets of the Employer; (iv) the Employer’s obligation under this Agreement
      shall be that of an unfunded and unsecured promise by the Employer to pay money
      in the future; and (v) the Executive, the Executive’s spouse and the Executive’s
      beneficiary shall be unsecured general creditors with respect to any benefits
      which may be payable under the terms of this Agreement.

     

    
      
         

      

      
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    10. Covenant
      Not to Interfere.

    

    The
      Executive agrees not to take any action which prevents the Employer from
      collecting the proceeds of any life insurance policy which the Employer may
      happen to own at the time of the Executive’s death and of which the Employer is
      the designated beneficiary.

    

    11. Miscellaneous.

    

    11.1. Opportunity
      to Consult with Independent Counsel.
      The
      Executive acknowledges that he has been afforded the opportunity to consult
      with
      independent counsel of his choosing regarding both the benefits granted to
      him
      under the terms of this Agreement and the terms and conditions which may affect
      the Executive's right to these benefits. The Executive further acknowledges
      that
      he has read, understands and consents to all of the terms and conditions of
      this
      Agreement, and that he enters into this Agreement with a full understanding
      of
      its terms and conditions.

    

    11.2. Arbitration
      of Disputes.
      All
      claims, disputes and other matters in question arising out of or relating to
      this Agreement or the breach or interpretation thereof, other than those matters
      which are to be determined by the Employer in its sole and absolute discretion,
      shall be resolved by binding arbitration before a representative member,
      selected by the mutual agreement of the parties, of the Judicial Arbitration
      and
      Mediation Services, Inc. (“JAMS”), located in location nearest to Fresno,
      California. In the event JAMS is unable or unwilling to conduct the arbitration
      provided for under the terms of this paragraph, or has discontinued its
      business, the parties agree that a representative member, selected by the mutual
      agreement of the parties, of the American Arbitration Association (“AAA”),
      located in or nearest to Fresno, California, shall conduct the binding
      arbitration referred to in this paragraph. Notice of the demand for arbitration
      shall be filed in writing with the other party to this Agreement and with JAMS
      (or AAA, if necessary). In no event shall the demand for arbitration be made
      after the date when institution of legal or equitable proceedings based on
      such
      claim, dispute or other matter in question would be barred by the applicable
      statute of limitations. The arbitration shall be subject to such rules of
      procedure used or established by JAMS, or if there are none, the rules of
      procedure used or established by AAA. Any award rendered by JAMS or AAA shall
      be
      final and binding upon the parties, and as applicable, their respective heirs,
      beneficiaries, legal representatives, agents, successors and assigns, and may
      be
      entered in any court having jurisdiction thereof. The obligation of the parties
      to arbitrate pursuant to this clause shall be specifically enforceable in
      accordance with, and shall be conducted consistently with, the provisions of
      Title 9 of Part 3 of the California Code of Civil Procedure. Any arbitration
      hereunder shall be conducted in Central California, unless otherwise agreed
      to
      by the parties.

    

    11.3. Attorneys’
      Fees.
      In the
      event of any arbitration or litigation concerning any controversy, claim or
      dispute between the parties hereto, arising out of or relating to this Agreement
      or the breach hereof, or the interpretation hereof, the prevailing party shall
      be entitled to recover from the losing party reasonable expenses, attorneys’
fees and costs incurred in connection therewith or in the enforcement or
      collection of any judgment or award rendered therein. The “prevailing party”
means the party determined by the arbitrator(s) or court, as the case may be,
      to
      have most nearly prevailed, even if such party did not prevail in all matters,
      not necessarily the one in whose favor a judgment is rendered.

    

    
      
         

      

      
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    11.4. Notice.
      Any
      notice required or permitted of either the Executive or the Employer under
      this
      Agreement shall be deemed to have been duly given, if by personal delivery,
      upon
      the date received by the party or its authorized representative; if by
      facsimile, upon transmission to a telephone number previously provided by the
      party to whom the facsimile is transmitted as reflected in the records of the
      party transmitting the facsimile and upon reasonable confirmation of such
      transmission; and if by mail, on the third day after mailing via U.S. first
      class mail, registered or certified, postage prepaid and return receipt
      requested, and addressed to the party at the address given below for the receipt
      of notices, or such changed address as may be requested in writing by a
      party.

    

    If
      to the
      Employer:

    United
      Security Bank

    2126
      Inyo
      Street

    Fresno,
      California 93721

    Attention:
      Dennis R. Woods

    Chairman
      of the Board

    

    If
      to the
      Executive:

    Kenneth
      L. Donahue

    c/o
      United Security Bank

    2126
      Inyo
      Street

    Fresno,
      California 93721

    

    11.5. Assignment.
      Neither
      the Executive, the Executive’s spouse, nor any other beneficiary under this
      Agreement shall have any power or right to transfer, assign, hypothecate, modify
      or otherwise encumber any part or all of the amounts payable hereunder, nor,
      prior to payment in accordance with the terms of this Agreement, shall any
      portion of such amounts be: (i) subject to seizure by any creditor of any such
      beneficiary, by a proceeding at law or in equity, for the payment of any debts,
      judgments, alimony or separate maintenance obligations which may be owed by
      the
      Executive, the Executive’s spouse, or any designated beneficiary; or (ii)
      transferable by operation of law in the event of bankruptcy, insolvency or
      otherwise. Any such attempted assignment or transfer shall be void and shall
      terminate this Agreement, and the Employer shall thereupon have no further
      liability hereunder.

    

    11.6. Binding
      Effect/Merger or Reorganization.
      This
      Agreement shall be binding upon and inure to the benefit of the Executive and
      the Employer and, as applicable, their respective heirs, beneficiaries, legal
      representatives, agents, successors and assigns. Accordingly, the Employer
      shall
      not merge or consolidate into or with another corporation, or reorganize or
      sell
      substantially all of its assets to another corporation, firm or person, unless
      and until such succeeding or continuing corporation, firm or person agrees
      to
      assume and discharge the obligations of the Employer under this Agreement.
      Upon
      the occurrence of such event, the term “Employer” as used in this Agreement
      shall be deemed to refer to such surviving or successor firm, person, entity
      or
      corporation.

    

    
      
         

      

      
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    11.7. Nonwaiver.
      The
      failure of either party to enforce at any time or for any period of time any
      one
      or more of the terms or conditions of this Agreement shall not be a waiver
      of
      such term(s) or condition(s) or of that party's right thereafter to enforce
      each
      and every term and condition of this Agreement.

    

    11.8. Partial
      Invalidity.
      If any
      term, provision, covenant or condition of this Agreement is determined by an
      arbitrator or a court, as the case may be, to be invalid, void, or
      unenforceable, such determination shall not render any other term, provision,
      covenant or condition invalid, void or unenforceable, and the Agreement shall
      remain in full force and effect notwithstanding such partial
      invalidity.

    

    11.9. Entire
      Agreement.
      This
      Agreement supersedes any and all other agreements, either oral or in writing,
      between the parties with respect to the subject matter of this Agreement and
      contains all of the covenants and agreements between the parties with respect
      thereto. Each party to this Agreement acknowledges that no other
      representations, inducements, promises or agreements, oral or otherwise, have
      been made by any party, or anyone acting on behalf of any party, which are
      not
      set forth herein, and that no other agreement, statement or promise not
      contained in this Agreement shall be valid or binding on either
      party.

    

    11.10. Modifications.
      Any
      modification of this Agreement shall be effective only if it is in writing
      and
      signed by each party or such party’s authorized representative.

    

    11.11. Section
      Headings.
      The
      section headings used in this Agreement are included solely for the convenience
      of the parties and shall not affect or be used in connection with the
      interpretation of this Agreement.

    

    11.12. No
      Strict Construction.
      The
      language used in this Agreement shall be deemed to be the language chosen by
      the
      parties hereto to express their mutual intent, and no rule of strict
      construction will be applied against any person.

    

    11.13. Governing
      Law.
      The
      laws of the State of California, other than those laws denominated choice of
      law
      rules, and, where applicable, the rules and regulations of the Federal Deposit
      Insurance Corporation or any other regulatory agency or governmental authority
      having jurisdiction over the Employer, shall govern the validity,
      interpretation, construction and effect of this Agreement.

    

    11.14. Delayed
      Payments for Specified Employees.
      Notwithstanding anything to the contrary, in the event that §409A of the Code
      applies to any compensation with respect to a separation from service or
      Separation of Service, payment of that compensation shall be delayed if
      Executive is a “specified employee,” as defined in § 409A(a)(2)(B)(i) of
      the Code, and such delayed payment is required by §409A of the Code. Such delay
      shall last six months from the date of Separation of Service. On the day
      following the end of the six-month period, the Employer shall make a catch-up
      payment to Executive equal to the total amount of such payments that would
      have
      been made during the six-month period but for this Section 11.14.

    

    11.15. Compliance
      with Section 409A.
      This
      Agreement shall at all times be administered in compliance with the requirements
      of §409A of the Code and any and all regulations thereunder, including such
      regulations as may be promulgated after the effective date of this
      Agreement.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    11.16 Unfunded
      Agreement for ERISA Purposes.
      This
      Agreement shall be unfunded for tax purposes and for purposes of Title I of
      the
      Employee Retirement Income Security Act of 1974 (“ERISA”), as amended from time
      to time.

     

    IN
      WITNESS WHEREOF, the Employer and the Executive have executed this Agreement
      on
      the date first above-written in the City of Fresno, Fresno County,
      California.

          

     

    
      	
              UNITED
                SECURITY BANK

              “Employer”

            	 	 	“Executive”
	 	 	 	 
	 	 	 	 
	/s/
              Dennis R. Woods	 	 	/s/
              Kenneth L. Donahue
	
              

              Dennis
                R. Woods     

              Chairman
                of the Board

            	 	 	
              
Kenneth
              L. Donahue

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

      
        	 	
                SCHEDULE
                  A

              	 
	 	 	 
	
                Number
                  Of Complete

              	
                 

              	
                Applicable

              
	
                Years
                  Of Service

              	
                 

              	
                Percentage

              
	
                 

              	
                 

              	 
	
                1

              	 	
                8
                  1/3%

              
	 	 	 
	
                2

              	 	
                16
                  2/3%

              
	 	 	 
	
                3

              	 	
                25%

              
	 	 	 
	
                4

              	 	
                33
                  1/3%

              
	 	 	 
	
                5

              	 	
                41
                  2/3%

              
	 	 	 
	
                6

              	 	
                50%

              
	 	 	 
	
                7

              	 	
                58
                  1/3%

              
	 	 	 
	
                8

              	 	
                66
                  2/3%

              
	 	 	 
	
                9

              	 	
                75%

              
	 	 	 
	
                10

              	 	
                83
                  1/3%

              
	 	 	 
	
                11

              	 	
                91
                  2/3%

              
	 	 	 
	
                12
                  or more

              	 	
                100%

              

      
  

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    SCHEDULE
      B

    

    BENEFICIARY
      DESIGNATION

    

    TO: The
      Administrator of United Security Bank,

    Amended
      and Restated Executive Salary Continuation Agreement

    

    Pursuant
      to the provisions of my Amended and Restated Executive Salary Continuation
      Agreement (“Agreement”) with United Security Bank, permitting the designation of
      a beneficiary or beneficiaries by a participant, I hereby designate the
      following persons and entities as primary and secondary beneficiaries of any
      benefit under said Agreement payable by reason of my death:

    

    NOTE: To
      name a
      trust as beneficiary, please provide the name of the trustee and the exact
      date
      of the trust agreement. In the event the primary beneficiary is not the spouse
      of the Executive, the spouse of the Executive will need to sign the Spousal
      Consent to this designation and such signature must be notarized.

    

    Primary
      Beneficiary:

     

    

      
        	
                Linda
                  C. Donahue

              	 	
                1613
                  E. Fallbrook Ave, Fresno CA 93720

              	 	
                Wife

              
	
                Name

              	
                 

              	
                Address

              	
                 

              	
                Relationship

              
	 	 	 	 	 
	
                Secondary
                  (Contingent) Beneficiary:

              	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                Name

              	 	
                Address

              	 	
                Relationship

              
	 	 	 	 	 
	 	 	 	 	 
	
                Name

              	 	
                Address

              	 	
                Relationship

              

      

    

     

    THE
      RIGHT
      TO REVOKE OR CHANGE ANY BENEFICIARY DESIGNATION IS HEREBY RESERVED. ANY PRIOR
      DESIGNATION OF PRIMARY BENEFICIARIES AND SECONDARY BENEFICIARIES IS HEREBY
      REVOKED.

    

    The
      Administrator shall pay all sums payable under the Agreement by reason of my
      death to the Primary Beneficiary, if he or she survives me, and if no Primary
      Beneficiary shall survive me, then to the Secondary Beneficiary, and if no
      named
      beneficiary survives me, then the Administrator shall pay all amounts in
      accordance with the terms of the Agreement. In the event that a named
      beneficiary survives me and dies prior to receiving the entire benefit payable
      under said Agreement then and in that event, the remaining unpaid benefit
      payable according to the terms of the Agreement shall be payable to the personal
      representatives of the estate of said beneficiary who survived me but died
      prior
      to receiving the total benefit provided by the Agreement.

     

    
      	 	 	 	
              KENNETH
                L. DONAHUE

              “Executive”

            
	 	 	 	 
	 	 	 	 
	Dated: _________________	 	 	
            
	
            	 	 	
              

            

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    CONSENT
      OF THE EXECUTIVE'S SPOUSE

    

    [required
      if the primary beneficiary is not the Executive’s
      spouse]

    

    TO
      THE
      ABOVE BENEFICIARY DESIGNATION:

    

    I,
      _____________, being the spouse of Kenneth L. Donahue, after being afforded
      the
      opportunity to consult with independent counsel of my choosing, do hereby
      acknowledge that I have read, agree and consent to the foregoing Beneficiary
      Designation which relates to the Amended and Restated Executive Salary
      Continuation Agreement entered into by my spouse on ______________, 2007. I
      understand that the above Beneficiary Designation adversely affects my community
      property interest in the benefits provided for under the terms of the Amended
      and Restated Executive Salary Continuation Agreement. I understand that I have
      been advised to consult with an attorney of my choice prior to executing this
      consent, so that such attorney can explain the effects of this
      consent.

    

    Dated:
      _____________, 2007  ____________________________________

    ______________,
      Spouse

    

    [notarization
      of the spousal consent is required if the primary beneficiary is not the spouse
      of the Executive]

     

    
      
         

      

      
        13Exhibit
      10.4

    CHANGE
      IN
      CONTROL AGREEMENT

    

    This
      Agreement (“Agreement”) is made and entered into as of the 16th
      the day
      of January, 2008 between United Security Bancshares (“Bancshares”), and Kenneth
      L. Donahue, an individual residing in the state of California (hereinafter
      referred to as “Executive”).

    

    WITNESSETH:

    

    WHEREAS,
      it is in the best interests of Bancshares and the Executive for Bancshares
      to
      provide Executive with severance compensation in the event there is a change
      in
      control of Bancshares or its wholly-owned subsidiary United Security Bank
      (“Bank”).

    

    NOW,
      THEREFORE, in consideration of the premises and of the mutual covenants and
      conditions herein contained, the parties hereto, intending to be legally bound,
      do hereby agree as follows:

    

    1. SEVERANCE
      PAYMENT

    

    In
      the
      event of a Change of Control as defined herein, Executive shall be paid a
      severance amount (“Severance Payment”) equal to the sum of (i) twelve months of
      Executive’s base salary that is in effect at the time immediately preceding the
      Change in Control and (ii) the amount of the bonus paid to Executive by
      Bancshares for the preceding calendar year. Such lump sum payment shall be
      paid
      to Executive within 10 days of the time of the consummation of the Change in
      Control. 

    

    Bancshares
      and the Executive acknowledge that there may limitations on the deductibility
      by
      Bancshares for the Severance Payment made to Executive for federal income tax
      purposes under section 280G of the Internal Revenue Code of 1986, as amended
      (“Code”), and regulations promulgated thereunder. Notwithstanding anything to
      the contrary, the Severance Payment set forth in the prior paragraph of this
      Section 1 shall be limited to such amount that results in the greatest amount
      of
      the Severance Payment that is deductible by Bancshares for federal income tax
      purposes after taking into account all other compensation payments to or for
      the
      benefit of the Executive that are included in determining the deductibility
      of
      such payments under Section 280G of the Code and regulations promulgated
      thereunder. In the event that prior to the application of the first paragraph
      of
      this Section 1, all other compensation payments to or for the benefit of
      Employee results in the limitation of the deductibility of such payments under
      Section 280G or any successor to Section 280G of the Code, then no payment
      shall
      be made pursuant this Agreement.

    

    This
      Agreement shall not be terminated by the voluntary or involuntary dissolution
      of
      Bancshares or the Bank, however in the event proceedings for liquidation of
      Bank
      are commenced by regulatory authorities, this Agreement and all rights and
      benefits hereunder shall terminate.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    For
      purposes of this Agreement, a change in control (“Change in Control”) shall mean
      the earliest occurrence of one of the following events:

    

    
      	A.	
              A
                Change In Ownership of Bancshares or the Bank.

            

    

    

    A
      change
      in ownership of Bancshares or the Bank occurs on the date that any person (or
      group of persons) acquires ownership of stock of Bancshares or the Bank that,
      together with stock held by such person or group, constitutes more than fifty
      percent (50%) of the total fair market value or total voting power of the stock
      of Bancshares or the Bank, respectively.

    

    
      	B.	
              A
                Change in Effective Control of Bancshares or the Bank.

            

    

    

    A
      change
      in effective control of Bancshares or the Bank occurs on the date that:

    

    1. Any
      person (or group of persons) acquires (or has acquired during the twelve (12)
      month period ending on the date of the most recent acquisition by such person
      or
      persons) ownership of stock of Bancshares or the Bank possessing thirty-five
      percent (35%) or more of the total voting power of the stock of Bancshares
      or
      the Bank, respectively; or

    

    2. A
      majority of members of Bancshares’ or Bank’s Board is replaced during any twelve
      (12) month period by directors whose appointment or election is not endorsed
      by
      a majority of the members of Bancshares’ or the Bank’s Board, respectively prior
      to the date of the appointment or election.

    

    
      	C.	
              A
                Change in Ownership of a Substantial Portion of Bancshares’ or the Bank’s
                Assets.

            

    

    

    A
      change
      in the ownership of a substantial portion of Bancshares' or the Bank’s assets
      occurs on the date that any person (or group of persons) acquires (or has
      acquired during the twelve (12) month period ending on the date of the most
      recent acquisition by such person or persons) assets from Bancshares or the
      Bank, respectively that have a total gross fair market value equal to, or more
      than, forty percent (40%) of the total gross fair market value of all of the
      assets of Bancshares or the Bank, respectively immediately prior to such
      acquisition or acquisitions. 

    

    For
      the
      purpose of this Agreement, transfers of the outstanding voting securities of
      Bancshares or the Bank made on account of deaths or gifts, transfers between
      family members, former spouses or transfers to a qualified retirement plan
      maintained by the Bancshares or the Bank shall not be considered in determining
      whether there has been a Change in Control. 

    

    2. TERM
      OF
      AGREEMENT

    

    This
      Agreement shall be for a term of five (5) years from the date first above stated
      ("Termination Date"). Such Termination Date may be amended or extended by
      written agreement of the parties. This Agreement shall apply to any Change
      in
      Control that is (i) consummated prior to the Termination Date provided that
      Executive is employed by Bank at the date of public announcement of the Change
      of Control or (ii) consummated at any time within one (1) year after the
      Termination Date, in the event Executive's employment is terminated without
      cause by Bancshares or the Bank prior to the Termination Date and such
      termination is within twelve (12) months prior to the date of consummation
      of a
      Change in Control that was announced within six (6) months before or after
      the
      date of Executive's termination of employment with Bancshares or the
      Bank.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    3. APPLICABLE
      LAW

    

    This
      Agreement is made and entered into in the State of California and the laws
      of
      the State of California shall govern the validity and interpretation hereof,
      and
      the performance of the parties hereto and their respective duties and
      obligations hereunder, except to the extent that the provisions of federal
      law
      supersede California law.

    

    4. ENTIRE
      AGREEMENT

    

    This
      Agreement contains the entire agreement of the parties and it supersedes any
      and
      all other agreements, either oral or in writing, between Executive and
      Bancshares or the Bank. Each party to this Agreement acknowledges that no
      representations, inducements, promises, or agreements, oral or otherwise, have
      been made by any party, or anyone acting on behalf of any party, which are
      not
      embodied herein, and that no other agreement, statement, or promise not
      contained in this Agreement shall be valid or binding. This Agreement may not
      be
      modified or amended by oral agreement, but only by an agreement in writing
      signed by Bancshares and Executive.

    

    5. SECTION
      409A OF THE CODE

    

    This
      Agreement shall at all times be administered in compliance with the requirements
      of §409A of the Code and any and all regulations thereunder, including such
      regulations as may be promulgated after the effective date of this Agreement.
      

    

    6. UNFUNDED
      AGREEMENT FOR ERISA PURPOSES. 

     

    This
      Agreement shall be unfunded for tax purposes and for purposes of Title I of
      the
      Employee Retirement Income Security Act of 1974 (“ERISA”), as amended from time
      to time.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

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

     

    
      	 	 	 
	 	UNITED
              SECURITY
              BANCSHARES
	 
 	 
 	 
 
	
            	By:  	/s/ Dennis
              R.
              Woods
	 	
              
Dennis
              R. Woods,
              Chairman

    
      	 	 	 
	 	
              EXECUTIVE

            
	 
 	 
 	 
 
	
            	
            	
              /s/
                Kenneth L. Donahue

            
	 	
              

              Kenneth
                L. Donahue

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