Document:

Exhibit 10.4
                                    EXHIBIT D
                                    ---------

                             PROCERA NETWORKS, INC.

                                WARRANT AGREEMENT

                        RESTRICTED COMMON STOCK AT $1.37
                                    PER SHARE

     THE  SECURITIES  REPRESENTED  HEREBY  HAVE  BEEN  ACQUIRED  BY INVESTOR FOR
INVESTMENT  AND  NOT  WITH  A  VIEW  TO,  OR  IN  CONNECTION  WITH,  THE SALE OR
DISTRIBUTION  THEREOF.  NO  SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN
EFFECTIVE  REGISTRATION  STATEMENT  FOR  THE SECURITIES OR AN OPINION OF COUNSEL
SATISFACTORY  IN FORM AND SUBSTANCE TO THE COMPANY THAT SUCH REGISTRATION IS NOT
REQUIRED  UNDER  THE  SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT").

     THE  SECURITIES  REPRESENTED  HEREBY  HAVE  NOT  BEEN  REGISTERED UNDER THE
SECURITIES  ACT  OR  THE  SECURITIES LAWS OF ANY STATE AND ARE BEING OFFERED AND
SOLD  IN  RELIANCE  ON  EXEMPTIONS  FROM  THE  REGISTRATION  REQUIREMENTS OF THE
SECURITIES  ACT AND SUCH STATE LAWS.  THE SECURITIES ARE SUBJECT TO RESTRICTIONS
ON  TRANSFERABILITY  AND  RESALE  AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS
PERMITTED  UNDER THE SECURITIES ACT AND SUCH STATE LAWS PURSUANT TO REGISTRATION
OR AN EXEMPTION THEREFROM.  THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED
BY  THE  SECURITIES  AND EXCHANGE COMMISSION, ANY STATE SECURITIES COMMISSION OR
OTHER  REGULATORY  AUTHORITY,  NOR  HAVE ANY OF THE FOREGOING AUTHORITIES PASSED
UPON  OR  ENDORSED  THE  MERITS  OF  THIS  OFFERING.  ANY  REPRESENTATION TO THE
CONTRARY  IS  UNLAWFUL.

     THE  COMPANY  IS  RELYING  ON  CERTAIN FEDERAL AND STATE LAWS, POLICIES AND
JUDICIAL  PRECEDENTS  WHICH  EXEMPT  THIS  OFFERING  FROM  THE  NECESSITY  OF
REGISTRATION.  AS  A  CONSEQUENCE,  SUCH  SECURITIES WILL BE REQUIRED TO BE HELD
INDEFINITELY UNLESS THEY ARE SUBSEQUENTLY REGISTERED UNDER THE SECURITIES ACT OR
AN  EXEMPTION  FROM  REGISTRATION  IS  AVAILABLE.

                                      D-1
<PAGE>
     This  Warrant  Agreement (the "AGREEMENT") is entered into this _______ day
of  December,  2004,  by  and between Procera Networks, Inc. (the "COMPANY") and
________________________________________  (the  "HOLDER"). For good and valuable
consideration,  the receipt and sufficiency of which is hereby acknowledged, the
parties  agree  as  follows:

     1.   ISSUANCE  OF  WARRANTS.  The  Company,  subject  to  the  terms  and
conditions  hereinafter  set  forth,  hereby  issues  Warrants  ("WARRANTS")  to
purchase  _______________________________________  (______________)  shares  of
Company  Common  Stock  (the  "SHARES")  pursuant  to the Subscription Agreement
executed  by the parties on ____________________, 2004.  The Purchase Price upon
exercise  of  the  Warrants  shall  be One-Dollar Thirty-Seven Cents ($1.37) per
Share  of  Common  Stock  purchased  subject  to  adjustment  in accordance with
Paragraph  5  of  this  Agreement.

     2.   TERM.  The  Warrants  may  be exercised at any time after the date set
forth  above  and  for a period of thirty-six (36) months from the date that the
shares  supporting  this  Agrement  are  declared  effectively registered by the
Securities  and  Exchange  Commission

     3.   EXERCISE.

          (a)  The  Holder  shall  exercise  the  Warrants granted hereunder, in
whole  or in part, by delivering to the Company at the office of the Company, or
at  such  other address as the Company may designate by notice in writing to the
holder  hereof:  (1)  the  Notice  of Exercise attached hereto as Schedule 1 and
                                                                  ----------
incorporated herein by reference;  and (2) a certified check or wire transfer in
lawful money of the United States in the amount of the Purchase Price multiplied
by  the  number  of  Shares  to  be  received.

          (b)  Upon  delivery  of  the  items set forth in (a) above, the Holder
shall  be  entitled  to  receive  a certificate or certificates representing the
Shares  issued  upon  exercise  of  the  Warrants.  Such Shares shall be validly
issued,  fully  paid  and  non-assessable.

          (c)  Warrants shall be deemed to have been exercised immediately prior
to  the  close  of business on the day of such delivery, and the Holder shall be
deemed  the  holder  of record of the Shares issuable upon such exercise at such
time.  The  Warrants  may be exercised in whole or in part and from time to time
as  the  Holder  may  determine.

          (d)  Upon  any  partial  exercise, at the request of the Company, this
Agreement  shall be surrendered and a new Warrant Agreement evidencing the right
to  purchase  the  number  of  Shares  not purchased upon such exercise shall be
issued  to  the  Holder.

          (e)  Any  portion  of  this  Warrant  that  is  converted  shall  be
immediately  canceled.  This  Warrant  or  any portion hereof shall be deemed to
have  been  converted  immediately prior to the close of business on the date of
its  surrender  for  conversion  as  provided  above, and the person entitled to
receive  the  shares of stock issuable upon such conversion shall be treated for
all  purposes  as Holder of such shares of record as of the close of business on
such  date.  As promptly as practicable after such date, the Company shall issue
and  deliver to the person or persons entitled to receive the same a certificate
or certificates for the number of full shares issuable upon such conversion.  If
the  Warrant  shall be converted for less than the total number of shares of the
Warrant  then  issuable upon conversion, promptly after surrender of the Warrant
upon  such conversion, the Company will execute and deliver a new Warrant, dated
the date hereof, evidencing the right of the Holder to the balance of the shares
purchasable  hereunder  upon  the  same  terms  and conditions set forth herein.

                                      D-2
<PAGE>
     4.   REPRESENTATIONS AND WARRANTIES OF THE HOLDER.  In consideration of the
Company's  acceptance  of  the Subscription and issuance of this Warrant, Holder
makes  the  following  representations  and  warranties  to  the Company, to its
principals,  and to participating broker-dealers, if any, jointly and severally,
which  warranties  and  representations  shall  survive  the  exercise, whole or
partial,  of  this  Warrant:

          (a)  Holder  has  had the opportunity to ask questions and receive any
additional  information  from  persons acting on behalf of the Company to verify
Holder's  understanding  of  the terms thereof and of the Company's business and
status thereof, and that no oral information furnished to the undersigned or its
advisors  in  connection with this Warrant has been in any way inconsistent with
other  documentary  information  provided.

          (b)  Holder  acknowledges  that  Holder  has  not seen, received, been
presented  with,  or  been solicited by any leaflet, public promotional meeting,
newspaper  or  magazine  article  or  advertisement,  radio  or  television
advertisement,  or  any  other  form of advertising or general solicitation with
respect  to  the  Shares.

          (c)  When  purchased,  the  Shares  will be purchased for Holder's own
account  for long-term investment and not with a view to immediately re-sell the
Shares.  No  other  person or entity will have any direct or indirect beneficial
interest  in,  or  right  to,  the  Shares.  Holder  or its agents or investment
advisors  have  such  knowledge and experience in financial and business matters
that  will  enable  me  to  utilize  the information made available to Holder in
connection  with  the  purchase  of  the Shares to evaluate the merits and risks
thereof  and  to  make  an  informed  investment  decision.

          (d)  Holder  acknowledges  that  the  Shares  have not been registered
under  the  Securities  Act  of  1933,  as  amended  (the  "Securities Act"), or
qualified  under the California Securities Law, or any other applicable blue sky
laws,  in  reliance,  in part, on its representations, warranties and agreements
made  herein.

          (e)  Other than the rights specifically set forth in the Subscription,
the  Rights  Agreement  and this Warrant, Holder represents, warrants and agrees
that  the Company and the officers of the Company (the "COMPANY'S OFFICERS") are
under  no  obligation to register or qualify the Shares under the Securities Act
or  under  any  state  securities law, or to assist the undersigned in complying
with  any  exemption  from  registration  and  qualification.

          (f)  Holder  represents  that  Holder  meets  the  criteria  for
participation  because  (i)  Holder  has  a  preexisting  personal  or  business
relationship  with  the  Company  or  one  or  more  of  its partners, officers,
directors  or  controlling  persons  or  (ii)  by reason of Holder's business or
financial  experience,  or  by reason of the business or financial experience of
Holder's  financial advisors who are unaffiliated with, and are not compensated,
directly  or indirectly, by the Company or any affiliate or selling agent of the
Company, Holder is capable of evaluating the risk and merits of an investment in
the  Shares  and  of  protecting  its  own  interests;  AND

               (i)   Holder has minimum net worth in excess of $1,000,000, or

               (ii)  Holder has  income  in  excess  of $200,000 or joint income
with Holder's spouse in excess of $300,000 in each of the two most recent years,
and  Holder,  or  Holder with his or her spouse, has a reasonable expectation of
reaching  the  same  income  level  in  the  current  year;  or

               (iii) Holder  is  a director or executive officer of the Company;
or

                                      D-3
<PAGE>
               (iv)  If a  trust,  the  trust  has  total  assets  in  excess of
$5,000,000  and  was not formed for the specific purpose of acquiring the Shares
and  the  purchase  was directed by a sophisticated person as described in 7 CFR
Sec.  230.506(b)(2)(ii);  or

               (v)  If  a  corporation  or  partnership,  the  corporation  or
partnership  has total assets in excess of $5,000,000 and was not formed for the
specific  purpose  of  acquiring  the  Shares;  or

               (vi) If an entity, all of the equity owners meet the criteria for
participation  set  forth  in  this  Paragraph  2(f).

          (g)  Holder  understands  that  the  Shares  are  illiquid,  and until
registered  with  the  Securities  Exchange  Commission  or  an  exemption  from
registration  becomes  available,  cannot be readily sold as there will not be a
public market for them and that Holder may not be able to sell or dispose of the
Shares,  or  to  utilize  the  Shares as collateral for a loan.  Holder must not
purchase  the Shares unless Holder has liquid assets sufficient to assure myself
that such purchase will cause me no undue financial difficulties and that Holder
can  still provide for its current and possible personal contingencies, and that
the commitment herein for the Shares, combined with other investments of Holder,
is  reasonable  in  relation  to  Holder's  net  worth.

          (h)  Holder  understands that any right to transfer the Shares will be
restricted  against  unless  the  transfer is not in violation of the Securities
Act,  the  California  Securities Law, and any other applicable state securities
laws  (including  investment  suitability  standards), that the Company will not
consent  to  a transfer of the Shares unless the transferee represents that such
transferee  meets  the  financial  suitability  standards required of an initial
participant  and  that the Company has the right, in its absolute discretion, to
refuse  to  consent  to  such  transfer.

          (i)  Holder  has been advised to consult with an attorney or attorneys
regarding  all legal matters concerning an investment in the Company and the tax
consequences  of  purchasing  the  Shares, and has done so, to the extent Holder
considers  necessary.

          (j)  Holder  acknowledges that the tax consequences to it of investing
in the Company will depend on particular circumstances, and neither the Company,
the  Company's  Officers,  any  other investors, nor the partners, shareholders,
members,  managers,  agents,  officers,  directors,  employees,  affiliates  or
consultants  of  any  of  them,  will  be  responsible  or  liable  for  the tax
consequences to Holder of an investment in the Company.  Holder will look solely
to  and  rely upon its own advisers with respect to the tax consequences of this
investment

          (k)  All  information  which  Holder  has  provided  to  the  Company
concerning  myself,  my  financial  position  and  my knowledge of financial and
business  matters is truthful, accurate, correct and complete as of the date set
forth  herein.

     5.   AGREEMENT  TO INDEMNIFY COMPANY.  Holder hereby agree to indemnify and
hold  harmless  the  Company,  its principals, the Company's officers, directors
attorneys,  and  agents, from any and all damages, costs and expenses (including
actual  attorneys'  fees)  which  they  may incur (i) by reason of my failure to
fulfill  any  of  the terms and conditions of this Warrant, (ii) by reason of my
breach  of any of my representations, warranties or agreements contained herein;
(iii)  with respect to any and all claims made by or involving any person, other
than  me  personally, claiming any interest, right, title, power or authority in
respect  to  the  Shares.  Holder  further  agree  and  acknowledge  that  these
indemnifications  shall  survive  any  sale  or  transfer,  or attempted sale or
transfer,  of  any  portion  of  the  Shares.

                                      D-4
<PAGE>
     6.   EXECUTION  AUTHORIZED.  If  this  Warrant  is  executed on behalf of a
corporation,  partnership,  trust or other entity, the undersigned has been duly
authorized  and  empowered  to legally represent such entity and to execute this
Warrant  and  all  other  instruments  in  connection  with  the  Shares and the
signature  of  the  person  is  binding  upon  such  entity.

     7.   ADOPTION  OF  TERMS AND PROVISIONS.  The Holder hereby adopts, accepts
and agrees to be bound by all the terms and provisions hereof.

     8.   ANTI-DILUTION  ADJUSTMENTS.  The  Warrants  granted  hereunder and the
Purchase Price thereof shall be subject to adjustment from time to time upon the
happening  of  certain  events as set forth below.  Notwithstanding the above or
any  provision  of  this  Agreement, no adjustment shall be made to the Purchase
Price  or  the amount of Warrants granted hereunder once the shares of Company's
Common  Stock  have  been  offered for sale in connection with an initial public
offering.

          (a)  Stock Splits and Dividends.  If outstanding shares of the Company
Common  Stock  shall  be  split into a greater number of shares or a dividend in
Common  Stock  shall  be  paid in respect of Common Stock, the Purchase Price in
effect  immediately  prior  to such split or at the record date of such dividend
shall  simultaneously  with the effectiveness of such split or immediately after
the  record  date  of  such dividend be proportionately reduced.  If outstanding
shares  of  Common  Stock shall be combined into a smaller number of Shares, the
Purchase  Price  in  effect  immediately  prior  to  such  combination  shall,
simultaneously  with  the  effectiveness of such combination, be proportionately
increased.  When  any  adjustment  is required to be made in the Purchase Price,
the  number  of  Shares  purchasable  upon the exercise of this Warrant shall be
changed  to  the number determined by dividing (i) an amount equal to the number
of  shares  issuable upon the exercise of this Warrant immediately prior to such
adjustment, multiplied by the Purchase Price in effect immediately prior to such
adjustment,  by  (ii)  the  Purchase  Price  in  effect  immediately  after such
adjustment.

          (b)  Reclassification, Etc.  In case there occurs any reclassification
or  change of the outstanding securities of the Company or of any reorganization
of the Company (or any other corporation the stock or securities of which are at
the  time receivable upon the exercise of this Warrant) or any similar corporate
reorganization  on  or  after  the  date  hereof, then and in each such case the
Holder,  upon  the  exercise  hereof  at any time after the consummation of such
reclassification,  change,  or  reorganization  shall be entitled to receive, in
lieu  of the stock or other securities and property receivable upon the exercise
hereof  prior to such consummation, the stock or other securities or property to
which  the  Holder would have been entitled upon such consummation if the Holder
had  exercised  this  Warrant  immediately prior thereto, all subject to further
adjustment  pursuant  to  the  provisions  of  this  Section.

          (c)  Adjustment  Certificate.  When  any  adjustment is required to be
made  in  the Shares or the Purchase Price pursuant to this Section, the Company
shall  promptly  mail  to  the  Holder  a  certificate setting forth (i) a brief
statement  of the facts requiring such adjustment, (ii) the Purchase Price after
such  adjustment  and  (iii) the kind and amount of stock or other securities or
property  into  which  this  Warrant shall be exercisable after such adjustment.

     9.   RESERVATION OF SHARES.  The Company shall at all times keep reserved a
sufficient  number  of  authorized  Shares  to  provide  for the exercise of the
Warrants  in  full.

     10.  NON-TRANSFERABILITY.  Unless  the  Company  consents  in  writing, the
Warrants  issued  hereunder  and  any and all Shares issued upon exercise of the
Warrants are not transferable, except to a related party of the Holder.

                                      D-5
<PAGE>
     11.  VOTING.  Nothing  contained  in  this  Agreement shall be construed as
conferring  upon  the  Holder  the  right  to vote or to receive dividends or to
consent  or  receive  notice  as  a  shareholder  in  respect  to any meeting of
shareholders  for  the  election  of  directors  of the Company or for any other
purpose  not  specified  herein.

     12.  MISCELLANEOUS.

          (a)  Amendment.  This  Agreement  may  be  amended  only  by  written
agreement  between  the  Company  and  the  Holder.

          (b)  Notice. Any notice, demand or request required or permitted to be
given under this Agreement will be in writing and will be deemed sufficient when
delivered personally or with a commercial courier service, with postage prepaid,
and  addressed, if to the Company, at its principal place of business, attention
the  President,  and  if  to the Holder, at the Holder's address as shown on the
stock  records  of  the  Company.

          (c)  Further Assurances.  Both parties agree to execute any additional
documents necessary to carry out the purposes of this Agreement.

          (d)  Severability.  If  any provision of this Agreement is held by any
court  of  competent  jurisdiction  to  be  illegal, unenforceable or void, such
provision  will  be  enforced  to  the  greatest  extent  possible and all other
provisions of this Agreement will continue in full force and effect.

          (e)  Governing Law. This Agreement will be interpreted and enforced in
accordance  with  California  Law as applied to agreements made and performed in
California.

          (f)  Entire Agreement; Successors and Assigns.  This Agreement and the
documents  and  instruments  attached  hereto  constitute  the  entire agreement
between  the  Holder and the Company relative to the subject matter hereof.  Any
previous  agreements  between  the  parties  are  superseded  by this Agreement.
Subject  to  any  exceptions specifically set forth in this Agreement, the terms
and  conditions  of  this Agreement shall inure to the benefit of and be binding
upon  the respective executors, administrators, heirs, successors and assigns of
the  parties.

          (g)  Headings.  The  headings  of the Paragraphs of this Agreement are
for convenience and shall not by themselves determine the interpretation of this
Agreement.

                                      D-6
<PAGE>
     IN  WITNESS  WHEREOF,  the  parties hereto have executed and delivered this
Warrant  as  of  the  date  first  set  forth  above.

                                   "COMPANY"

                                   PROCERA NETWORKS, INC.
                                   A Nevada corporation

                                   By:__________________________________________
                                      Douglas J. Glader, Chief Executive Officer

                                   Date:________________________________________

                                   "HOLDER"

                                   _____________________________________________

                                   By:__________________________________________

                                   _____________________________________________
                                                    (Signature)

                                   Title:_______________________________________

                                   Date:________________________________________

                                      D-7
<PAGE>
                                   SCHEDULE 1

                               NOTICE OF EXERCISE

To:  PROCERA  NETWORKS,  INC.

     (1)    ___________________________ ("HOLDER")  hereby  elects  to  purchase
_____________________  shares  of  Common  Stock  of Procera Networks, Inc. (the
"COMPANY") pursuant to the terms of the Warrant Agreement executed by the Holder
and  the Company, dated ____________________, 2004, and tenders herewith payment
of  the  purchase price in full, together with all applicable transfer taxes, if
any.

     (2)  Please issue a certificate or certificates representing said shares in
the name of the Holder or in such other name as is specified below.

                                        "HOLDER"

                                        ________________________________________

                                        By:_____________________________________

                                        Print:__________________________________

                                        Title:__________________________________

                                        Date:___________________________________

                                      D-8
<PAGE>Exhibit 10(nn)
                                                                  --------------

                              NORTH VALLEY BANCORP
                    EXECUTIVE DEFERRED COMPENSATION AGREEMENT

       THIS AGREEMENT is made this 31st day of December, 2004, by and between
NORTH VALLEY BANCORP, a California corporation, located in Redding, California
(the "Company"), and JOHN A. DiMICHELE (the "Executive").

                                  INTRODUCTION

       To encourage the Executive to remain an employee of the Company, the
Company is willing to provide to the Executive a deferred compensation
opportunity. The Company will pay the Executive's benefits from the Company's
general assets.

                                    AGREEMENT

       The Executive and the Company agree as follows:

                                    Article 1
                                   Definitions

       Whenever used in this Agreement, the following words and phrases shall
have the meanings specified:

       1.1      "Anniversary Date" means December 31 of each year.

       1.2      "Change of Control" A "change in control" of Employer for
purposes of this Agreement shall mean the occurrence of any of the following
events with respect to Employer (with the term "Employer" being defined for such
a change in control to be North Valley Bancorp): (i) a change in control of a
nature that would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of
1934, as amended (the "Exchange Act"), or in response to any other form or
report to the regulatory agencies or governmental authorities having
jurisdiction over Employer or any stock exchange on which Employer's shares are
listed which requires the reporting of a change in control; (ii) any merger,
consolidation or reorganization of Employer in which Employer does not survive;
(iii) any sale, lease, exchange, mortgage, pledge, transfer or other disposition
(in one transaction or a series of transactions) of any assets of Employer
having an aggregate fair market value of fifty percent (50%) of the total value
of the assets of Employer, reflected in the most recent balance sheet of
Employer; (iv) a transaction whereby any "person" (as such term is used in the
Exchange Act or any individual, corporation, partnership, trust or any other
entity) is or becomes the beneficial owner, directly or indirectly, of
securities of Employer representing 50% or more of the combined voting power of
Employer's then outstanding securities; (v) if in any one year period,
individuals who at the beginning of such period constitute the Board of
Directors of Employer cease for any reason to constitute at least a majority
thereof, unless the election, or the nomination for election by Employer's
<PAGE>

shareholders, of each new director is approved by a vote of a least
three-quarters of the directors then still in office who were directors at the
beginning of the period; (iv) a majority of the members of the Board of
Directors of Employer in office prior to the happening of any event determines
in its sole discretion that as a result of such event there has been a change in
control. Notwithstanding the foregoing or anything else contained herein to the
contrary, there shall not be a "change in control" for purposes of this
Agreement if the event which would otherwise come within the meaning of the term
"change in control" involves an Employee Stock Ownership Plan or similar plan
sponsored by Employer which is the party that acquires "control" or is the
principal participant in the transaction constituting a "change in control," as
described above.

       1.3      "Code" means the Internal Revenue Code of 1986, as amended.

       1.4      "Compensation" means the total salary and bonus paid to the
Executive during a Plan Year.

       1.5      "Deferral Account" means the Company's accounting of the
Executive's accumulated Deferrals plus accrued interest.

       1.6      "Deferrals" means the amount of the Executive's Compensation,
which the Executive elects to defer according to this Agreement.

       1.7      "Disability" means, if the Executive is covered by a Company
sponsored disability policy, total disability as defined in such policy without
regard to any waiting period. If the Executive is not covered by such a policy,
Disability means the Executive suffering a sickness, accident or injury, which,
in the judgment of a physician satisfactory to the Company, prevents the
Executive from performing substantially all of the Executive's normal duties for
the Company. As a condition to any Disability benefits, the Company may require
the Executive to submit to such physical or mental evaluations and tests as the
Company's Board of Directors deems appropriate.

       1.8      "Effective Date" means December 31, 2004.

       1.9      "Election Form" means the Form attached as Exhibit 1.

       1.10     "Benefit Election Form" means the Form attached as Exhibit 2.

       1.11     "Normal Retirement Age" means the Executive's 65th birthday.

       1.12     "Normal Retirement Date" means the later of the Normal
Retirement Age or Termination of Employment.

       1.13     "Plan Year" means the calendar year.

       1.14     "Termination of Employment" means that the Executive ceases to
be employed by the Company for any reason whatsoever other than by reason of a
leave of absence, which is approved by the Company. For purposes of this

                                       2
<PAGE>

Agreement, if there is a dispute over the employment status of the Executive or
the date of the Executive's Termination of Employment, the Company shall have
the sole and absolute right to decide the dispute.

                                    Article 2
                                Deferral Election

       2.1      Initial Election. The Executive shall make an initial deferral
election under this Agreement by filing with the Company a signed Election Form
within thirty (30) days after the Effective Date of this Agreement. The Election
Form shall set forth the amount of Compensation to be deferred and shall be
effective to defer only Compensation earned after the date the Election Form is
received by the Company.

       2.2      Election Changes

                2.2.1  Generally. Upon the Company's approval, the Executive may
       modify the amount of Compensation to be deferred annually by filing a new
       Election Form with the Company prior to the beginning of the Plan Year in
       which the Compensation is to be deferred. The modified deferral election
       shall not be effective until the calendar year following the year in
       which the subsequent Election Form is received and approved by the
       Company.

                2.2.2  Hardship. If an unforeseeable financial emergency arising
       from the death of a family member, divorce, sickness, injury, catastrophe
       or similar event outside the control of the Executive occurs, the
       Executive, by written instructions to the Company, may reduce future
       deferrals under this Agreement.

                                    Article 3
                                Deferral Account

       3.1      Establishing and Crediting. The Company shall establish a
Deferral Account on its books for the Executive and shall credit to the Deferral
Account the following amounts:

                3.1.1  Deferrals. The Compensation deferred by the Executive as
       of the time the Compensation would have otherwise been paid to the
       Executive.

                3.1.2  Interest. On each Anniversary Date of this Agreement
       prior to any payment of pre-retirement or post-retirement benefits, and
       during the payment of any pre-retirement benefits or post-retirement
       benefits, interest is to be accrued on the account balance and compounded
       at an annual rate equal to the Wall Street Journal Prime Rate plus one
       and one half percent on the first business day of the Plan Year,
       compounded monthly.

       3.2      Statement of Accounts. The Company shall provide to the
Executive, within 120 days after each Anniversary Date, a statement setting
forth the Deferral Account balance.

                                       3
<PAGE>

       3.3      Accounting Device Only. The Deferral Account is solely a device
for measuring amounts to be paid under this Agreement. The Deferral Account is
not a trust fund of any kind. The Executive is a general unsecured creditor of
the Company for the payment of benefits. The benefits represent the mere Company
promise to pay such benefits. The Executive's rights are not subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, attachment, or garnishment by the Executive's creditors.

                                    Article 4
                                Lifetime Benefits

       4.1     Normal Retirement Benefit. Upon the Normal Retirement Date, the
Company shall pay to the Executive the benefit described in this Section 4.1 in
lieu of any other benefit under this Agreement.

                4.1.1  Amount of Benefit. The benefit under this Section 4.1 is
       the Deferral Account balance at the Executive's Normal Retirement Date.

                4.1.2  Payment of Benefit. The Company shall pay the annual
       benefit to the Executive in 12 equal monthly installments payable on the
       first day of each month commencing with the month following the
       Executive's Normal Retirement Date. The annual benefit shall be paid to
       the Executive for 20 years, or as elected on the Election Form (Exhibit
       2). The Company shall credit interest pursuant to Section 3.1.2 on the
       remaining account balance during any applicable installment period.

       4.2      Early Retirement Benefit. Upon Termination of Employment prior
to the Normal Retirement Age for reasons other than death, Change of Control or
Disability, the Company shall pay to the Executive the benefit described in this
Section 4.2 in lieu of any other benefit under this Agreement.

                4.2.1  Amount of Benefit. The benefit under this Section 4.2 is
       the Deferral Account balance at the Executive's Termination of
       Employment.

                4.2.2  Payment of Benefit. The Company shall pay the annual
       benefit to the Executive in 12 equal monthly installments payable on the
       first day of each month commencing with the month following the
       Executive's Termination of Employment. The annual benefit shall be paid
       to the Executive for 20 years, or as elected on the Election Form
       (Exhibit 2). The Company shall credit interest pursuant to Section 3.1.2
       on the remaining account balance during any applicable installment
       period.

       4.3      Disability Benefit. If the Executive terminates employment due
to Disability prior to Normal Retirement Age, the Company shall pay to the
Executive the benefit described in this Section 4.3 in lieu of any other benefit
under this Agreement.

                                       4
<PAGE>

                4.3.1  Amount of Benefit. The benefit under this Section 4.3 is
       the Deferral Account balance at the Executive's Termination of
       Employment.

                4.3.2  Payment of Benefit. The Company shall pay the annual
       benefit to the Executive in 12 equal monthly installments payable on the
       first day of each month commencing with the month following the
       Executive's Termination of Employment. The annual benefit shall be paid
       to the Executive for 20 years. The Company shall credit interest pursuant
       to Section 3.1.2 on the remaining account balance during any applicable
       installment period.

       4.4      Change of Control Benefit. Upon a Change of Control, the Company
shall pay to the Executive the benefit described in this Section 4.4 in lieu of
any other benefit under this Agreement.

                4.4.1  Amount of Benefit. The benefit under this Section 4.4 is
       the Deferral Account balance at the Executive's Termination of
       Employment.

                4.4.2  Payment of Benefit. The Company shall pay the benefit to
       the Executive in a lump sum payable within 60 days of the Executive's
       Termination of Employment.

       4.5      Hardship Distribution. Upon the Board of Director's
determination (following petition by the Executive) that the Executive has
suffered an unforeseeable financial emergency as described in Section 2.2.2, the
Company shall distribute to the Executive all or a portion of the Deferral
Account balance as determined by the Company, but in no event shall the
distribution be greater than is necessary to relieve the financial hardship.

                                    Article 5
                                 Death Benefits

       5.1      Death During Active Service. If the Executive dies while in the
employment of the Company, the Company shall pay to the Executive's beneficiary
the benefit described in this Section 5.1 in lieu of any other benefit under
this Agreement.

                5.1.1  Amount of Benefit. The benefit under Section 5.1 is the
       Deferral Account balance at the time of the Executive's Death.

                5.1.2  Payment of Benefit. The Company shall pay the annual
       benefit to the Executive's beneficiary in 12 equal monthly installments
       payable on the first day of each month commencing with the month
       following the Executive's Death. The annual benefit shall be paid to the
       Executive's beneficiary for 20 years. The Company shall credit interest
       pursuant to Section 3.1.2 on the remaining account balance during any
       applicable installment period.

       5.2      Death During Payment of a Lifetime Benefit. If the Executive
dies after any Lifetime Benefit payments have commenced under this Agreement but
before receiving all such payments, the Company shall pay the remaining benefits
to the Executive's beneficiary at the same time and in the same amounts they
would have been paid to the Executive had the Executive survived.

                                       5
<PAGE>

       5.3      Death After Termination of Employment But Before Payment of a
Lifetime Benefit Commences. If the Executive is entitled to a Lifetime Benefit
under this Agreement, but dies prior to the commencement of said benefit
payments, the Company shall pay the same benefit payments to the Executive's
beneficiary that the Executive was entitled to prior to death except that the
benefit payments shall commence on the first day of the month following the date
of the Executive's death.

                                    Article 6
                                  Beneficiaries

       6.1      Beneficiary Designations. The Executive shall designate a
beneficiary by filing a written designation with the Company. The Executive may
revoke or modify the designation at any time by filing a new designation.
However, designations will only be effective if signed by the Executive and
accepted by the Company during the Executive's lifetime. 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. If the Executive dies without a valid
beneficiary designation, all payments shall be made to the Executive's estate.

       6.2      Facility of Payment. If a benefit is payable to a minor, to a
person declared incompetent, or to a person incapable of handling the
disposition of his or her property, the Company may pay such benefit to the
guardian, legal representative or person having the care or custody of such
minor, incompetent person or incapable person. The Company may require proof of
incompetence, minority or guardianship as it may deem appropriate prior to
distribution of the benefit. Such distribution shall completely discharge the
Company from all liability with respect to such benefit.

                                    Article 7
                               General Limitations

       7.1      Termination for Cause. Notwithstanding any provision of this
Agreement to the contrary, the Company shall not pay any benefit under this
Agreement that is in excess of the Executive's Deferrals (the interest earned on
the Deferral Account) if the Company terminates the Executive's employment for:

                (a)  Gross negligence or gross neglect of duties to the Company;

                (b)  Commission of a felony or of a gross misdemeanor involving
       moral turpitude in connection with the Executive's employment with the
       Company; or

                (c)  Fraud, disloyalty, dishonesty or willful violation of any
       law or significant Company policy committed in connection with the
       Executive's employment and resulting in an adverse effect on the Company.

       7.2      Suicide or Misstatement. Notwithstanding any provision of this
Agreement to the contrary, the Company shall not pay any death benefit under

                                       6
<PAGE>

this Agreement exceeding the Deferral Account if the Executive commits suicide
within two years after the date of this Agreement, or if the Executive has made
any material misstatement of fact on any application for life insurance
purchased by the Company.

                                    Article 8
                          Claims and Review Procedures

       8.1      Claims Procedure. The Company shall notify any person or entity
that makes a claim against the Agreement (the "Claimant") in writing, within 90
days of Claimant's written application for benefits, of his or her eligibility
or non-eligibility for benefits under the Agreement. If the Company determines
that the Claimant is not eligible for benefits or full benefits, the notice
shall set forth (1) the specific reasons for such denial, (2) a specific
reference to the provisions of the Agreement on which the denial is based, (3) a
description of any additional information or material necessary for the Claimant
to perfect his or her claim, and a description of why it is needed, and (4) an
explanation of the Agreement's claims review procedure and other appropriate
information as to the steps to be taken if the Claimant wishes to have the claim
reviewed. If the Company determines that there are special circumstances
requiring additional time to make a decision, the Company shall notify the
Claimant of the special circumstances and the date by which a decision is
expected to be made, and may extend the time for up to an additional 90 days.

       8.2      Review Procedure. If the Claimant is determined by the Company
not to be eligible for benefits, or if the Claimant believes that he or she is
entitled to greater or different benefits, the Claimant shall have the
opportunity to have such claim reviewed by the Company by filing a petition for
review with the Company within 60 days after receipt of the notice issued by the
Company. Said petition shall state the specific reasons which the Claimant
believes entitle him or her to benefits or to greater or different benefits.
Within 60 days after receipt by the Company of the petition, the Company shall
afford the Claimant (and counsel, if any) an opportunity to present his or her
position to the Company verbally or in writing, and the Claimant (or counsel)
shall have the right to review the pertinent documents. The Company shall notify
the Claimant of its decision in writing within the 60-day period, stating
specifically the basis of its decision, written in a manner to be understood by
the Claimant and the specific provisions of the Agreement on which the decision
is based. If, because of the need for a hearing, the 60-day period is not
sufficient, the decision may be deferred for up to another 60 days at the
election of the Company, but notice of this deferral shall be given to the
Claimant.

                                    Article 9
                           Amendments and Termination

       This Agreement may be amended or terminated only by a written agreement
signed by the Company and the Executive.

                                       7
<PAGE>

                                   Article 10
                                  Miscellaneous

       10.1     Binding Effect. This Agreement shall bind the Executive and the
Company and their beneficiaries, survivors, executors, administrators and
transferees.

       10.2     No Guarantee of Employment. This Agreement is not a contract for
employment. It does not give the Executive the right to remain an employee of
the Company, nor does it interfere with the Company's right to discharge the
Executive. It also does not require the Executive to remain an employee nor
interfere with the Executive's right to terminate employment at any time.

       10.3     Non-Transferability. Benefits under this Agreement cannot be
sold, transferred, assigned, pledged, attached or encumbered in any manner.

       10.4     Tax Withholding. The Company shall withhold any taxes that are
required to be withheld from the benefits provided under this Agreement.

       10.5     Applicable Law. The Agreement and all rights hereunder shall be
governed by the laws of California, except to the extent preempted by the laws
of the United States of America.

       10.6     Unfunded Arrangement. The Executive and the Executive's
beneficiary are general unsecured creditors of the Company for the payment of
benefits under this Agreement. The benefits represent the mere promise by the
Company to pay such benefits. The rights to benefits are not subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, attachment, or garnishment by creditors. Any insurance on the
Executive's life is a general asset of the Company to which the Executive and
the Executive's beneficiary have no preferred or secured claim.

       10.7     Small Account Balance. If the Executive's Account Balance is
$25,000 or less, the Company in its sole and absolute discretion shall have the
right to pay out the Executive's remaining Account Balance in a lump sum.

       10.8     Reorganization. The Company shall not merge or consolidate into
or with another company, or reorganize, or sell substantially all of its assets
to another company, firm, or person unless such succeeding or continuing
company, firm, or person agrees to assume and discharge the obligations of the
Company under this Agreement. Upon the occurrence of such event, the term
"Company" as used in this Agreement shall be deemed to refer to the successor or
survivor company

       10.9     Entire Agreement. This Agreement constitutes the entire
agreement between the Company and the Executive as to the subject matter hereof.
No rights are granted to the Executive by virtue of this Agreement other than
those specifically set forth herein.

       10.10    Administration. The Company shall have powers which are
necessary to administer this Agreement, including but not limited to:

                                       8
<PAGE>

                (a)  Interpreting the provisions of the Agreement;

                (b)  Establishing and revising the method of accounting for the
       Agreement;

                (c)  Maintaining a record of benefit payments; and

                (d)  Establishing rules and prescribing any forms necessary or
       desirable to administer the Agreement.

       10.11    Named Fiduciary. For purposes of the Employee Retirement Income
Security Act of 1974, if applicable, the Company shall be the named fiduciary
and plan administrator under this Agreement. The named fiduciary may delegate to
others certain aspects of the management and operation responsibilities of the
plan including the employment of advisors and the delegation of ministerial
duties to qualified individuals.

       IN WITNESS WHEREOF, the Executive and a duly authorized Company officer
have signed this Agreement.

Executive:                              Company:

                                        NORTH VALLEY BANCORP

/s/ JOHN A. DIMICHELE                   By /s/ LEO J. GRAHAM
---------------------------------          -----------------------------------
JOHN A. DiMICHELE                       Title   General Counsel and Secretary
                                              --------------------------------

                                       9
<PAGE>

                                    EXHIBIT 1
                                       TO
                              NORTH VALLEY BANCORP
                    EXECUTIVE DEFERRED COMPENSATION AGREEMENT

                           DEFERRAL ELECTION FORM FOR

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

I elect to defer my Compensation received under this Agreement with the Company,
as follows:

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

                     Amount of Deferral                    Duration
        ========================================================================

        [Initial and Complete one]                [Initial One]

        _____    I elect to defer ____% of my     _____    One Year only
                 Compensation.
                                                  _____    For  ______  [Insert
        _____    I elect to defer $______ of               Number] Years
                 all Compensation.
                                                  _____    Until Termination
        _____    I elect not to defer any of               of Employment
                 my Compensation.
                                                  _____    Until ___________,
                                                           ___________ (date)

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

Upon the Company's approval, I understand that I may change the amount and
duration of my deferrals by filing a new election form with the Company;
provided, however, that any subsequent election will not be effective until the
calendar year following the year in which the new election is accepted by the
Company.

Signature   ____________________________________

Date   ____________________________

Accepted by the Company this ________ day of ___________________, 2004.

By  __________________________________________

Title  ______________________________

                                       10
<PAGE>

                                    EXHIBIT 2
                                       TO
                              NORTH VALLEY BANCORP
                    EXECUTIVE DEFERRED COMPENSATION AGREEMENT

                              FORM OF BENEFIT FORM

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

       The Executive understands that he or she may not change the Form of
Benefit elected, however, the Company will allow the Executive to file a
petition with the Company requesting an alternate payment plan and the Board of
Directors, in its sole and absolute discretion, may accept or reject such a
request.

       I elect to receive benefits under the Agreement in the following form:

4.1.2     Payment of Normal Retirement Benefit.
[Initial One]

_____  Lump sum
_____  Equal monthly installments for 20 years.

4.2.2     Payment of Early Retirement Benefit
[Initial One]

_____  Lump sum
_____  Equal monthly installments for 20 years.

                                       11
<PAGE>

                             Beneficiary Designation

                              NORTH VALLEY BANCORP
                    EXECUTIVE DEFERRED COMPENSATION AGREEMENT

I designate the following as beneficiary of benefits under this Agreement
payable following my death:

Primary: _______________________________________________________________________

________________________________________________________________________________

Contingent: ____________________________________________________________________

________________________________________________________________________________

Note:  To name a trust as beneficiary, please provide the name of the trustee(s)
       and the exact name and date of the trust agreement.

I understand that I may change these beneficiary designations by filing a new
written designation with the Company. I further understand that the designations
will be automatically revoked if the beneficiary predeceases me, or, if I have
named my spouse as beneficiary and our marriage is subsequently dissolved.

Signature   ____________________________________

Date   _____________________________

Acknowledged by the Company this ________ day of ___________________, 2004.

By  __________________________________________

Title  ________________________________

                                       12

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