Document:

Exhibit 10.37

 

Separation
and Release Agreement

               This
Separation and Release Agreement (“Agreement”) is entered into by and between American River Bankshares,
a California corporation, (the “Company”) and American River Bank, a California banking corporation (the “Bank”)
each on behalf of itself, its subsidiaries and other corporate affiliates and each of their respective present and former employees,
officers, directors, owners, shareholders, and agents, individually and in their official capacities (collectively referred to
herein as the “Employer”), and David T. Taber (the “Employee”), a resident of the State
of California (the Employer and the Employee are collectively referred to as the “Parties”) as of October 27,
2017 (the “Execution Date”). Unless earlier revoked this Agreement shall become effective on the eighth (8th)
day following the Execution Date (the “Effective Date”).

RECITALS

               A.           The
Company and Employee are parties to an Employment Agreement dated as of May 6, 2006 (the “Employment Agreement”),
which, as extended and renewed, remains in force and effect;

               B.           Pursuant
to the Employment Agreement, Employee has served as President and Chief Executive Officer and as a member of the Board of Directors
of the Company and the Bank, respectively;

               C.           The
Parties have determined that it is in their respective best interests for Employee to separate from and relinquish his duties
to the Employer in an amicable and orderly manner to permit a successor, to be selected by the Employer, to assume Employee’s
duties at the Company and the Bank;

               D.           The
Parties intend for Employee’s separation from the Employer to be treated for all purposes under the Employment Agreement
and related compensation and benefit plans and agreements and law as an involuntary termination by Employer without cause unrelated
and prior to a Change in Control (as defined in the Employment Agreement); and

               E.            The
Parties intend to provide to the fullest extent permitted under applicable law for a complete resolution of any and all claims,
whether known or unknown, Employee may have against the Employer arising from or related to his employment by the Employer, including
without limitation under the Employment Agreement, benefit and compensation plans and agreements in which the Employee participates
or is a party.

               NOW
THEREFORE, based upon the foregoing premises the Parties agree as follows:

               1.            Separation
Date. The Employee’s last day of employment with the Employer is October 31, 2017 (the “Separation Date”).
After the Separation Date, the Employee will not represent himself as being an employee, officer, agent, member of the Board,
or representative of the Employer, including the Company or the Bank, for any purpose. Except as otherwise set forth in this Agreement,
the Separation Date is the employment termination date for the Employee for all purposes, meaning the Employee is not entitled
to any further compensation, monies, or other benefit from the Employer, including coverage under any benefits plans or programs
sponsored by the Employer, as of the Separation Date, except as provided in such benefit plans or programs or in this Agreement.

    	 

    	 

    

               2.           Termination
of Employment. Effective as of the Separation Date Employee’s
employment with the Employer shall terminate and all other positions the Employee then holds with respect to each of the Company
and the Bank, and each of its subsidiaries, joint ventures, trusts for sponsored benefit plans, or affiliates (the Employer and
its subsidiaries and affiliated entities are referred to herein as the “Affiliated
Entities”), including as an officer, trustee, member of the Board of Directors, or
of any Affiliated Entity shall terminate.

               3.            Return
of Property. By the Separation Date, the Employee will return all Employer property provided to the Employee and in
his possession or control, including without limitation identification cards or badges, access codes or devices, keys, laptops,
computers, telephones, hand-held electronic devices, credit cards, electronically stored documents or files, physical files, handbooks,
manuals, and any other Employer property in the Employee’s possession.

               4.            Separation
Payments and Benefits. On the Separation Date the Employee shall be entitled to receive and the Employer agrees to pay to
the Employee as follows:

                              (a)          all
unpaid base salary and unused vacation and PTO days through the Separation Date;

                              (b)          reimbursement
for any reasonable and necessary business expenses incurred by the Employee and unreimbursed on or prior to the Separation Date
pursuant to the Employer’s reimbursement policies, within 30 days following the Employee’s presentation of an invoice
to the Employer;

                              (c)          Employer
matching contributions to Employer’s 401(k) Plan relating to elective contributions from compensation earned through the
Separation Date;

                              (d)          reimbursement
or payment of premiums, costs, etc. for benefits provided to the Employee, including without limitation, automobile lease and
operating expenses, and health, disability and life insurance through the Separation Date;

                              (e)          Payments
provided to the Employee under the Employer’s Deferred Compensation Plan and Salary Continuation Plan, in the amounts and
at the times set forth in such Plans and the elections made thereunder and otherwise in accordance with the terms and conditions
of such Plans; and

                              (f)          Indemnification
of the Employee after the Separation Date under the Employer’s or any Affiliated Entities’ directors’ and officers’
insurance policies, articles of incorporation, bylaws, and indemnification agreements to which Employee is a party, including
Employee’s Employment Agreement as if it were still in force and effect, on the terms, conditions and amounts provided in
such documents, for events that occurred while the Employee was an officer, trustee, or director of any of the Affiliated Entities.

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               5.            Additional
Consideration. In consideration for Employee’s agreements hereunder, including without limitation those set forth in
Sections 6, 7, 8, 9, 10, 11, and 12, the Employer agrees to the following:

                              (a)          Employer
will pay you an amount equal to 12 months of your annual salary at the rate in effect for the fiscal year ending December 31,
2017 to be paid on the Employer’s regular pay cycle and through the Company’s payroll over a 12 month period commencing
on the Separation Date, net of applicable withholding;

                              (b)          Employer
will pay you an amount equal to a pro-rated portion of your prior year’s annual cash bonus based on the number of days commencing
on January 1, 2017 and ending on and including the Separation Date, which the parties agree is $114,252.32, payable in a lump-sum
within thirty (30) days following the Separation Date;

                              (c)          All
outstanding and then unvested stock options, restricted stock and other equity awards granted to you under any of the Company’s
equity incentive plans (each, an “Equity Award”) which are at such time subject to vesting solely based on
your continued employment with the Company (each, a “Time-Vesting Equity Award”) shall be deemed to have vested
as if your employment has continued for one (1) year following the Separation Date. . All other outstanding and unvested Equity
Awards (each, a “Performance-Vesting Equity Award”) shall be treated in accordance with the terms of the plan
document and applicable award agreement governing such Performance-Vesting Equity Award. Employer and Employee agree that the
Vested Equity Awards of Employee under this paragraph are set forth in Exhibit A attached hereto and incorporated by this reference
and equal 14,574 vested stock options and 11,873 vested restricted stock awards;

                              (d)          If
you timely elect to continue your Company-provided health insurance coverage pursuant to the federal COBRA law, the Company will
pay directly such COBRA premiums, at the same level as you maintain as of the Separation Date, through the end of the COBRA period
(18 months), or until such time as you qualify for health insurance benefits through a new employer, whichever occurs first (the
“COBRA Period”). The payment shall be for 100% of your COBRA premiums, as well as for your eligible dependents’
COBRA premiums, and the coverage to be provided on this basis shall be health, vision, and dental coverage. Notwithstanding the
foregoing, if (x) any plan pursuant to which such benefits are provided is not, or ceases prior to the expiration of the period
of continuation coverage to be, exempt from the application of Section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”) under Treasury Regulation Section 1.409A-1(a)(5), or (y) the Company is otherwise unable to continue
to cover you under its group health plans without incurring penalties (including without limitation, pursuant to the Patient Protection
and Affordable Care Act or Section 2716 of the Public Health Service Act or any other health care law), then, in either case,
an amount equal to each remaining COBRA premium under such plans shall thereafter be paid to you in substantially equal monthly
installments over the COBRA Period (or the remaining portion thereof) (the benefits under this Section 5(d), (the “COBRA
Benefit”);

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                              (e)          If
you elect to do so within thirty (30) days from the Separation Date, the Employer agrees to sell to you for cash the Employer-owned
automobile used by you exclusively for business and personal use at the greater of the Employer’s depreciated cost basis
in effect as of the Separation Date or the wholesale value listed in the Kelly Bluebook used car guide. The purchase price may
be offset against other payments due and payable to you under this Section 5;

                              (f)          Employer
shall reimburse you for up to $5,000 for the attorneys’ fees you incurred for having your attorneys, Murphy Austin Adams
Schoenfeld, review and negotiate this agreement upon presentment of their invoice;

                              (g)          Subject
to clearance of security procedures and policies, Employer will transfer ownership of the mobile phone and phone number used by
you during the course of your employment with Employer;

               6.           Employee
Release of Claims.

                              (a)          Employee
Release and Waiver of Claims. In exchange for the consideration provided in this Agreement, including Employer’s release
under Section 5, the Employee for himself and on behalf of his spouse, heirs, executors, representatives, agents, insurers, administrators,
successors, and assigns (collectively, the “Releasors”) except as provided below agrees not to sue and irrevocably,
unconditionally and fully and forever waives, releases, and discharges the Employer, including each Affiliated Entity and all
of their respective past and present officers, directors, employees, agents, representatives in their corporate and individual
capacities (collectively, the “Releasees”) from any and all claims, demands, actions, causes of actions, obligations,
judgments, rights, fees, damages, debts, obligations, liabilities, and expenses (inclusive of attorneys’ fees) of any kind
whatsoever (collectively, “Claims”), whether known or unknown, from the beginning of time to the date of the
Employee’s execution of this Agreement, including, without limitation, any claims under any federal, state, local, or foreign
law, that Releasors may have, have ever had or may in the future have arising out of, or in any way related to the Employee’s
employment, benefits, or separation from employment with the Employer and any actual or alleged act, omission, transaction, practice,
conduct, occurrence, or other matter, including, but not limited to:

               (i)          any
and all claims under Title VII of the Civil Rights Act, as amended, the Americans with Disabilities Act, as amended, the Family
and Medical Leave Act, as amended, with respect to existing but not prospective claims, the Fair Labor Standards Act, the Equal
Pay Act, as amended, the Employee Retirement Income Security Act, as amended (with respect to unvested benefits), the Civil Rights
Act of 1991, as amended, Section 1981 of U.S.C. Title 42, the Worker Adjustment and Retraining Notification Act, as amended, the
National Labor Relations Act, as amended, the Age Discrimination in Employment Act, as amended, the Uniform Services Employment
and Reemployment Rights Act, as amended, all of their respective implementing regulations, and any other federal, state, local,
or foreign law (statutory, regulatory, or otherwise) that may be legally waived and released;

               (ii)          any
and all claims for compensation of any type whatsoever, including but not limited to claims for salary, wages, bonuses, commissions,
incentive compensation, vacation, and severance that may be legally waived and released;

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               (iii)          any
and all claims arising under tort, contract, and quasi-contract law, including but not limited to claims of breach of an expressed
or implied contract, tortious interference with contract or prospective business advantage, breach of the covenant of good faith
and fair dealing, promissory estoppel, detrimental reliance, invasion of privacy, nonphysical injury, personal injury or sickness
or any other harm, wrongful or retaliatory discharge, fraud, defamation, slander, libel, false imprisonment, and negligent or
intentional infliction of emotional distress; and

               (iv)          any
and all claims for monetary or equitable relief, including but not limited to attorneys’ fees, back pay, front pay, reinstatement,
experts’ fees, medical fees or expenses, costs, and disbursements.

               No
provision of this Agreement limits the Employee’s ability to communicate with any Authorized Government Agency or otherwise
participate in any investigation or proceeding that may be conducted by any Authorized Government Agency, including providing
documents or other information, without notice to the Company. This Agreement does not limit Employee’s right to receive
an award paid by any Authorized Government Agency that is expressly authorized by applicable law to pay for information related
to a possible violation of applicable law provided by Employee to such Authorized Government Agency. For purposes of this Agreement
an “Authorized Government Agency” is any governmental agency, commission, entity, or any official having the
express legal authority to investigate the business, operations or practices of the Employer regarding compliance with, and to
initiate proceedings for violations of Applicable Law, including by way of example and without limitation the California Department
of Business Oversight, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, the Equal
Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the
Securities and Exchange Commission, and any equivalent local, state or federal law enforcement agency.

                              (b)          Specific
Release of ADEA Claims. In further consideration of the payments and benefits provided to the Employee in this Agreement,
the Releasors hereby irrevocably and unconditionally fully and forever waive, release, and discharge the Releasees from any and
all Claims, whether known or unknown, from the beginning of time to the date of the Employee’s execution of this Agreement
arising under the Age Discrimination in Employment Act (ADEA), as amended, and its implementing regulations. By signing this Agreement,
the Employee hereby acknowledges and confirms that:

               (i)           the
Employee has read this Agreement in its entirety and understands all of its terms;

               (ii)          by
this Agreement, the Employee has been advised in writing of the right to consult with an attorney of the Employee’s choosing
and has consulted with such counsel before executing this Agreement;

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               (iii)         the
Employee knowingly, freely, and voluntarily assents to all of the terms and conditions set out in this Agreement including, without
limitation, the waiver, release, and covenants contained in it;

               (iv)         the
Employee is executing this Agreement, including the waiver and release, in exchange for good and valuable consideration in addition
to anything of value to which the Employee is otherwise entitled;

               (v)          the
Employee was given at least twenty-one (21) days to consider the terms of this Agreement and consult with an attorney of the Employee’s
choice, although the Employee may sign it sooner if desired, provided that any changes to this Agreement, whether material or
immaterial, do not restart the running of the 21-day period;

               (vi)         the
Employee understands that the Employee has seven (7) days from signing this Agreement to revoke the release in this paragraph
by delivering notice of revocation to the Chairman of the Board at the Employer by letter or email before the end of this seven-day
period; and

               (vii)        the
Employee understands that the release contained in this paragraph does not apply to rights and claims that may arise after the
Employee signs this Agreement.

               This
Agreement shall not become effective until the eighth (8th) day after the Employee and the Employer execute this Agreement. This
date shall be the Effective Date of this Agreement. No payments due to the Employee under this Agreement shall be made or begin
before the Effective Date.

                              (c)          Excluded
Claims. Notwithstanding any provision of this Release to the contrary, by executing this Release, the Employee is not waiving
and releasing any claims the Employee may have for:

               (i)           unemployment,
state disability and/or paid family leave insurance benefits pursuant to the terms of applicable state law;

               (ii)          continuation
of existing participation in Employer-sponsored group health benefit plans under the United States law known as “COBRA”
and/or under any applicable state counterpart law;

               (iii)         any
benefit entitlements that are vested as of the Separation Date under the terms of an Employer-sponsored benefit plan, policy or
other arrangement, or this Agreement, whether or not governed by the United States federal law known as “ERISA”;

               (iv)         any
claims, causes of action, suits lawsuits, debts, or demands whatsoever, arising out of or relating to the Employee’s right
to enforce the terms of this Agreement;

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               (v)          any
rights or claims for indemnification as a matter of law or under any written agreements with any of the Releasees, the charter,
bylaws or operating agreements of the Employer of any Affiliated Entity, or any rights as an insured, or to coverage, under any
directors’ and officers’ liability insurance policy;

               (vi)         any
wrongful act or omission occurring after the date the Employee signs this Agreement; and

               (vii)        any
breach of this Agreement.

                              (d)          No
Pending Complaint or Charges. Each Party represents to the other Party that he or it has not filed any complaints or charges
against the other Party or any of the other Releasees with any federal, state, local court, agency or arbitration forum.

               7.            General
Release of Claims.

                              (a)          Except
for those possible claims specifically excluded in Sections 6 hereof, this Agreement reflects a full and final settlement and
general release of all claims and obligations, known and unknown, Employee has or may have individually or collectively against
Employer and the Affiliated Entities arising from or related to Employee’s employment by the Employer including Employee’s
service as an officer, director and employee of the Company, the Bank and their respective Affiliated Entities up to and including
the Separation Date, and constitutes a waiver of each and all of the provisions of California Civil Code Section 1542, which provides
as follows:

“ A general release
does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the
release, which if known by him or her must have materially affected his or her settlement with the debtor.”

(b)          The
Employee expressly waives any rights he may have under Civil Code Section 1542, as well as under any other statutes or common
law principles of similar effect except for those possible claims specifically excluded in Section 6 hereof. The Employee acknowledges
that the effect and import of the provisions of Civil Code Section 1542 have been explained to him by his own counsel. The Employee
acknowledges and agrees that this waiver of rights under Section 1542 of the Civil Code has been separately bargained for and
is an essential and material term of this Agreement and, without such waiver, this Agreement would not have been entered into.

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               8.            Post-Termination
Obligations and Restrictive Covenants.

                              (a)          Confidential
Information. The Employee understands and acknowledges that during the course of employment with the Employer, the Employee
has had access to and learned about confidential, secret, and proprietary documents, materials, and other similar information,
in tangible and intangible form, of and relating to the Employer and its businesses and existing and prospective depositors, borrowers
and employees including information regarding policies, procedures, business processes, practices, methods, plans, documents,
research, operations, strategies, contracts, material transactions, know-how, trade secrets, manuals, financial information, marketing
information, advertising information, pricing information of the Employer or its businesses. Confidential Information also includes
other information that is marked or otherwise identified as confidential or proprietary, or that would otherwise appear to a reasonable
person to be confidential or proprietary in the context and circumstances in which the information is known or used. ( information
described in the two preceding sentences shall be referred to herein as “Confidential Information”). The Employee
further understands and acknowledges that this Confidential Information and the Employer’s ability to reserve it for the
exclusive knowledge and use of the Employer is of great competitive importance and commercial value to the Employer, and that
improper use or disclosure of the Confidential Information by the Employee might cause the Employer to incur financial costs,
loss of business advantage, liability under confidentiality agreements with third parties, civil damages, and criminal penalties.

               The
Employee further understands and agrees that Confidential Information developed by the Employee in the course of his employment
by the Employer is subject to the terms and conditions of this Agreement as if the Employer furnished the same Confidential Information
to the Employee in the first instance. Confidential Information shall not include information that is generally available to and
known by the public at the time of disclosure to the Employee, provided that such disclosure is through no direct or indirect
fault of the Employee or person(s) acting on the Employee’s behalf.

                              (b)          Disclosure
and Use Restrictions.

               (i)          Employee
Covenants. The Employee agrees and covenants:

               (A)          to
treat all Confidential Information as strictly confidential;

               (B)          not
to directly or indirectly disclose, publish, communicate, or make available Confidential Information, or allow it to be disclosed,
published, communicated, or made available, in whole or part, to any entity or person whatsoever (including other employees of
the Employer) not having a need to know and authority to know and use the Confidential Information in connection with the business
of the Employer and, in any event, not to anyone outside of the direct employ of the Employer except as required in the performance
of any of the Employee’s remaining authorized employment duties to the Employer and only after execution of a confidentiality
agreement by the third party with whom Confidential Information will be shared or with the prior consent of an authorized officer
acting on behalf of the Employer in each instance (and then, such disclosure shall be made only within the limits and to the extent
of such duties or consent); and

               (C)          not
to access or use any Confidential Information, and not to copy any documents, records, files, media, or other resources containing
any Confidential Information, or remove any such documents, records, files, media, or other resources from the premises or control
of the Employer, except as required in the performance of any of the Employee’s remaining authorized employment duties to
the Employer or with the prior consent of an authorized officer acting on behalf of the Employer in each instance (and then, such
disclosure shall be made only within the limits and to the extent of such duties or consent).

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               The
Employee understands and acknowledges that the Employee’s obligations under this Agreement regarding any particular Confidential
Information begin immediately and shall continue until the sooner of the date that the Confidential Information has become public
knowledge other than as a result of the Employee’s breach of this Agreement or a breach by those acting in concert with
the Employee or on the Employee’s behalf or the third annual anniversary of the Separation Date.

               (ii)          Permitted
Disclosures. Nothing in this Agreement shall be construed to prevent disclosure of Confidential Information as may be required
by applicable law or regulation, or pursuant to the valid order of a court of competent jurisdiction or an authorized government
agency, provided that the disclosure does not exceed the extent of disclosure required by such law, regulation, or order. The
Employee shall promptly provide written notice of any such order to an authorized officer of the Employer. The provisions of the
last sentence of the last paragraph of Section 4(a) hereof shall also constitute a permitted disclosure.

               9.            Non-Solicitation
of Employees. The Employee understands and acknowledges that the Employer has expended and continues to expend significant
time and expense in recruiting and training its employees and that the loss of employees would cause significant and irreparable
harm to the Employer. The Employee agrees and covenants that for a period of twelve (12) months from the Separation Date not to
directly or indirectly solicit, hire, recruit, attempt to hire or recruit, or induce the termination of employment of any employee
of the Employer, including by, among other means, identifying to third parties potential recruits employed at the Employer.

               10.          Cooperation.
The Parties anticipate that after the Separation Date no further services will be performed for Employer by Employee but agree
that certain matters in which the Employee has been involved during the Employee’s employment may need the Employee’s
cooperation with the Employer in the future. Accordingly, for a period of twelve (12) months after the Separation Date, to the
extent reasonably requested by the Employer, the Employee shall cooperate with the Employer in connection with matters arising
out of the Employee’s service to the Employer; provided that the Employer shall make reasonable efforts to minimize disruption
of the Employee’s other activities. The Employer shall reimburse the Employee for reasonable expenses incurred in connection
with this cooperation and the Employer shall compensate the Employee at an hourly rate of $275 per hour. In no event will the
level of bona fide services performed under this section be more than 20% of the average level of services performed by Employee
for Employer in the prior 36-month period.

               11.          Non-Solicitation
of Customers. Employee acknowledges that during his service to
the Employer he obtained Confidential Information about Employer’s customers, including without limitation their financial
needs, cash management practices and future business plans. In order to protect such Confidential Information from improper use,
Employee agrees for a period of twelve (12) months from the Separation Date to refrain from directly or indirectly soliciting,
contacting or meeting with customers of Employer, including by among other means identifying to third parties Employer’s
customers, in an attempt to cause such customers to cease doing business with or curtailing the volume of business being done
with the Employer.

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               12.          Non-Disparagement.

                              (a)          The
Employee agrees for himself and on behalf his immediate family members, attorneys, representatives and agents that he shall not
at any time make, publish, or communicate to any person or entity or in any public forum any defamatory or disparaging remarks,
comments, or statements concerning the Employer or any of its Affiliated Parties or its businesses, or any of his or its employees
or officers, now or in the future including any disparaging or defamatory comments about their integrity, honesty or morality,
or about the quality or value of their products, services, methods of doing business, or employment practices, or any other business
or personal matter. This Section does not in any way restrict or impede the Employee from exercising protected rights, including
rights under the National Labor Relations Act (NLRA) or the federal securities laws, including the Dodd-Frank Act, to the extent
that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court
of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the
law, regulation, or order.

                              (b)          The
Employer agrees that it will instruct its directors and executive level employees to refrain from making any disparaging or defamatory
comments to any third party , including any prospective employer seeking references, concerning the Employee’s integrity,
honesty or morality, the quality or value of his job performance for the Employer or about any other business or personal matter
concerning the Employee.

               13.          Standstill.
During the Standstill Period (as hereinafter defined):

                              (a)          Executive
will not, and will cause his Affiliates (as hereinafter defined) not to, directly or indirectly, acquire Beneficial Ownership
(as hereinafter defined) of any shares of common stock or common stock equivalents or the Company, in each case, now or hereafter
outstanding (collectively, “Securities”) without the consent of the Company, if the effect of such acquisition
would be to increase the aggregate Beneficial Ownership of Securities of Executive to greater than 4.99% of the total number of
shares of Company common stock then outstanding (the “Percentage Limitation”); provided, that the foregoing
limitation shall not apply to Executive’s acquisition of common stock pursuant to the exercise of the stock options granted
to him or the vesting of any stock options, SARs, or equity he currently holds. In addition, Executive will not, and will cause
his Affiliates not to, make any public announcement with respect to, or submit any proposal for or with respect to (i) the acquisition
of Beneficial Ownership of any Securities if the effect of such acquisition would be to cause the Beneficial Ownership of Executive
and his Affiliates to exceed the Percentage Limitation. For purposes of this Section, the term “Affiliates” shall
have the meaning set forth in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
and “Beneficial Ownership” shall be determined in accordance with Rule 13d-3 under the Exchange Act.

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                              (b)          Without
the express prior written approval of the Board, Executive will not, and will cause his Affiliates not to, directly or indirectly,
solicit proxies or initiate, propose or become a “participant” in a “solicitation” (as such terms are
defined in Regulation 14A under the Exchange Act), in opposition to any matter that has been recommended by a majority of the
members of the Board or in favor of any matter that has not been approved by the Board or seek to advise, encourage or influence
any “person” (as such term is used in Section 13(d) and 14(d) of the Exchange Act, “Person”) with
respect to the voting of Securities in such manner, or initiate, or induce or attempt to induce any Person to initiate, any shareholder
proposal relating to the Company.

                              (c)          Without
the express prior written approval of the Board, Executive will not, and will cause his Affiliates not to, join a consortium,
partnership, limited partnership, syndicate or other “group” (within the meaning of Section 13(d)(3) of the Exchange
Act), or otherwise act in concert with any Person, for the purpose of acquiring, holding, voting or disposing of Securities, or
for any other purpose which would require disclosure under Item 4 of Schedule 13D adopted by the Securities and Exchange Commission
under the Exchange Act.

                              (d)          The
“Standstill Period” shall commence on the Separation Date and shall terminate on the second annual anniversary of
such date.

               14.          Disputes.

                              (a)          Employment
Matters. This Section 13 applies to any controversy or claim between you and the Company arising out of or relating to or
concerning this Agreement or any aspect of your employment with the Employer or the termination of that employment (together,
an “Employment Matter”). This includes, but is not limited to, any and all employment-related claims
or controversies, such as breach of employment agreement, breach of the covenant of good faith and fair dealing, negligent supervision
or hiring, wrongful discharge in violation of public policy, unpaid wages under the state and federal wage payment laws, breach
of privacy claims, intentional or negligent infliction of emotional distress claims, fraud, misrepresentations, defamation, and
any claims that could be asserted under all state and federal anti-discrimination laws, including, but not limited to, the California
Fair Employment and Housing Act, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans
with Disabilities Act, the California Labor Code, and the Family and Medical Leave Act. You specifically agree to arbitrate all
claims for discrimination and marital status, sexual orientation, disability, political activity, or any other statutorily-protected
basis under the procedure set forth in the this Section 10 and not through a court of law. This Agreement is further intended
to apply to any claim you may have against any of the Employer’s officers, directors, employees, agents, representatives
or any of its affiliated or related entities, and to any and all past and future employment relationships you may have with the
Employer regardless of job position or title.

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                              (b)          Mandatory
Arbitration. Any controversy arising out of or relating to this Agreement, its enforcement or interpretation, or because of
an alleged breach, default, or misrepresentation in connection with any of its provisions, or any other controversy arising out
of your employment, including, but not limited to, any state or federal statutory claims, shall be submitted to arbitration in
the County of Sacramento, California, before a sole arbitrator selected from Judicial Arbitration and Mediation Services, Inc.,
Sacramento, California, or its successor (“JAMS”), or if JAMS is no longer able to supply the arbitrator,
such arbitrator shall be selected from the American Arbitration Association, and shall be conducted in accordance with the provisions
of California Code of Civil Procedure § 1280 et seq. as the exclusive forum for the resolution of such dispute; provided,
however, that in the event that provisional injunctive relief is not available, or is not available in a timely manner,
through such arbitration, then provisional injunctive relief may, but need not, be sought by either party to this Agreement in
a court of law while arbitration proceedings are pending, and any provisional injunctive relief granted by such court shall remain
effective until the matter is finally determined by the Arbitrator. Either you or the Employer may initiate the arbitration process
by delivering a written request for arbitration to the other party within the time limits that would apply to the filing of civil
complaint in state or federal district court, as applicable to the claim at issue. A late request will be void. Final resolution
of any dispute through arbitration may include any remedy or relief which the Arbitrator deems just and equitable, including any
and all remedies provided by applicable state or federal statutes. At the conclusion of the arbitration, the Arbitrator shall
issue a written decision that sets forth the essential findings and conclusions upon which the Arbitrator’s award or decision
is based. Any award or relief granted by the Arbitrator hereunder shall be final and binding on the parties hereto and may be
enforced by any court of competent jurisdiction. The parties hereto acknowledge and agree that they are hereby waiving any rights
to trial by jury in any action, proceeding or counterclaim brought by either of the parties hereto against the other in connection
with any matter whatsoever arising out of or in any way connected with this Agreement or your employment. The parties hereto agree
that the Employer shall be responsible for payment of the forum costs of any arbitration hereunder, including the Arbitrator’s
fee. You and the Employer further agree that in any proceeding to enforce the terms of this Agreement, the prevailing party shall
be entitled to its or his reasonable attorneys’ fees and costs (other than forum costs associated with the arbitration)
incurred by it or him in connection with resolution of the dispute in addition to any other relief granted. Notwithstanding this
provision, the parties hereto may mutually agree to mediate any dispute prior to or following submission to arbitration.

                              (c)          Enforcement
of Arbitration Awards. You or the Employer may bring an action or special proceeding in a state or federal court of competent
jurisdiction sitting in the County of Sacramento, California to enforce any arbitration award under Section 13(b).

                              (d)          Jurisdiction
and Choice of Forum. You and the Employer irrevocably submit to the exclusive jurisdiction of any state or federal court located
in the County of Sacramento, California over any Employment Matter that is not otherwise arbitrated or resolved according to Section
13(b). This includes any action or proceeding to compel arbitration or to enforce an arbitration award. Both you and the Employer
(i) acknowledge that the forum stated in this Section 13(d) has a reasonable relation to this Agreement and to the relationship
between you and the Employer and that the submission to the forum will apply even if the forum chooses to apply non-forum law,
(ii) waive, to the extent permitted by law, any objection to personal jurisdiction or to the laying of venue of any action or
proceeding covered by this Section 13(d) in the forum stated in this Section, including any objection on the grounds of forum
non conveniens or the like, (iii) agree not to commence any such action or proceeding in any forum other than the forum stated
in this Section 13(d), and (iv) agree that, to the extent permitted by law, a final and non-appealable judgment in any such action
or proceeding in any such court will be conclusive and binding on you and the Company.

    	12

    	 

    

                              (e)          Waiver
of Jury Trial. To the extent permitted by law, you and the Employer waive any and all rights to a jury trial with respect
to any Employment Matter. Notwithstanding the provisions of this Agreement, you shall have the right to file a claim for workers’
compensation and unemployment insurance benefits with the appropriate state agencies, unfair labor practice charges with the National
Labor Relations Board, or an administrative charge with the Equal Employment Opportunity Commission, California Department of
Fair Employment and Housing, or any similar state agency.

                              (f)          Governing
Law. This Agreement, and all questions relating to its validity, interpretation, performance and enforcement, as well as the
legal relations hereby created between the parties hereto, shall be governed by and construed under, and interpreted and enforced
in accordance with, the laws of the State of California, notwithstanding any California or other conflict of law provision to
the contrary.

               15.          Successors
and Assigns.

                              (a)          Assignment
by the Employer. The Employer may freely assign this Agreement at any time. This Agreement shall inure to the benefit of the
Employer and the Affiliated Entities and its successors and assigns.

                              (b)          No
Assignment by the Employee. The Employee may not assign this Agreement in whole or in part. Any purported assignment by the
Employee shall be null and void from the initial date of purported assignment.

               16.          Entire
Agreement. Unless specifically provided herein, this Agreement contains all of the understandings and representations between
Employer and Employee relating to the subject matter hereof and supersedes all prior and contemporaneous understandings, discussions,
agreements, representations, understandings, statements, course of conduct, and policies, both written and oral.

               17.          Construction.
References (A) to Sections are to sections of this Agreement unless
otherwise stated; (B) to any contract (including this Agreement) are to the contract as amended, modified, supplemented or replaced
from time to time; (C) to any statute, rule or regulation are to the statute, rule or regulation as amended, modified, supplemented
or replaced from time to time (and, in the case of statutes, include any rules and regulations promulgated under the statute)
and to any section of any statute, rule or regulation include any successor to the section; (D) to any governmental authority
include any successor to the governmental authority; (E) to any plan include any programs, practices and policies; (F) to any
entity include any corporation, limited liability company, partnership, association, business trust and similar organization and
include any governmental authority; and (G) to any affiliate of any entity are to any person or other entity directly or indirectly
controlling, controlled by or under common control with the first entity.

(i)          The
various headings in this Agreement are for convenience of reference only and in no way define, limit or describe the scope or
intent of any provisions or Sections of this Agreement.

    	13

    	 

    

(ii)          Unless
the context requires otherwise, (A) words describing the singular number include the plural and vice versa, (B) words denoting
any gender include all genders and (C) the words “include”, “includes” and “including” will
be deemed to be followed by the words “without limitation.”

(iii)         It
is your and the Employer’s intention that this Agreement not be construed more strictly with regard to you or the Employer.

               18.          Withholding.
You and the Employer will treat all payments to you under this Agreement as compensation for your employment. Accordingly, the
Employer may withhold from any payment any taxes that are required to be withheld under any law, rule or regulation.

               19.          Modification
and Waiver. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed
to in writing and signed by the Employee and by an authorized employee of the Employer. No waiver by any Party of any breach by
any other party of any condition or provision of this Agreement to be performed by any other party shall be deemed a waiver of
any similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall the failure of or delay
by any Party in exercising any right, power, or privilege under this Agreement operate as a waiver thereof to preclude any other
or further exercise thereof or the exercise of any other such right, power, or privilege.

               20.          Severability.
Should any provision of this Agreement be held by a court or arbitral authority of competent jurisdiction to be enforceable only
if modified, or if any portion of this Agreement shall be held to be unenforceable and thus stricken, such holding shall not affect
the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon the Parties with any such
modification to become a part hereof and treated as though originally set forth in this Agreement.

               21.          Captions.
Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and no provision of
this Agreement is to be construed by reference to the caption or heading of any section or paragraph.

               22.          Nonadmission.
Nothing in this Agreement shall be construed as an admission by any Party of any wrongdoing, liability, or noncompliance with
any federal, state, city, or local rule, ordinance, statute, common law, or other legal obligation. Each Party specifically disclaims
and denies any wrongdoing or liability to any other Party.

    	14

    	 

    

               23.          Notices.
All notices under this Agreement must be given in writing by personal delivery, regular mail or receipted email at the addresses
indicated in this Agreement or any other address designated in writing by either party. Until changed in writing all written notices
should be sent to the address below.

                              Notice
to the Employer:

                              American
River Bankshares

                              3100
Zinfandel Drive

                              Suite
450

                              Rancho
Cordova, California 95670

                              Attention:
Chairman

                              with
a copy to:

                              Manatt
Phelps & Phillips LLP

                              11355
W. Olympic Blvd

                              Los
Angeles, California 90064

                              Attention:
Gordon M. Bava

                              Notice
to the Employee:

                              Mr.
David T. Taber

                              P.O.
Box 1009

                              Shingle
Springs, California 95682

               24.          Consideration.
This Agreement is in consideration of the mutual covenants contained in it. You and the Employer acknowledge the receipt and sufficiency
of the consideration to this Agreement and intend this Agreement to be legally binding.

               25.          Compliance
with Section 409A.

                              (a)          General.
It is the intention of both the Employer and you that the benefits and rights to which you could be entitled pursuant to this
Agreement comply with Section 409A to the extent that the requirements of Section 409A are applicable thereto, or are exempt from
Section 409A including under the short-term deferral rule, and the provisions of this Agreement shall be construed in a manner
consistent with that intention. If you or Employer believes, at any time, that any such benefit or right that is subject to Section
409A does not so comply, it shall promptly advise the other and shall negotiate reasonably and in good faith to amend the terms
of such benefits and rights such that they comply with Section 409A (with the most limited possible economic effect on you and
on the Company). Notwithstanding the foregoing, Employer does not make any representation to you that the payments or benefits
provided under this Agreement are exempt from, or satisfy, the requirements of Section 409A, and Employer shall have no liability
or other obligation to indemnify you or hold harmless you or any beneficiary for any tax, additional tax, interest or penalties
that you or any beneficiary may incur in the event that any provision of this Agreement, or any amendment or modification thereof,
or any other action taken with respect thereto, is deemed to violate any of the requirements of Section 409A.

                              (b)          Distributions
on Account of Separation from Service. If and to the extent required to comply with Section 409A, no payment or benefit required
to be paid under this Agreement on account of termination of your employment shall be made unless and until you incur a “separation
from service” within the meaning of Section 409A.

    	15

    	 

    

                              (c)          No
Acceleration of Payments. Neither the Employer nor you, individually or in combination, may accelerate any payment or benefit
that is subject to Section 409A, except in compliance with Section 409A and the provisions of this Agreement, and no amount that
is subject to Section 409A shall be paid prior to the earliest date on which it may be paid without violating Section 409A.

                              (d)          Treatment
of Each Installment as a Separate Payment and Timing of Payments. For purposes of applying the provisions of Section 409A
to this Agreement, each separately identified amount to which you are entitled under this Agreement shall be treated as a separate
payment. In addition, to the extent permissible under Section 409A, any series of installment payments under this Agreement shall
be treated as a right to a series of separate payments. Whenever a payment under this Agreement specifies a payment period with
reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the
Company.

                              (e)          Taxable
Reimbursements and In-Kind Benefits.

               (i)          Any
reimbursements by the Employer to you of any eligible expenses under this Agreement that are not excludable from your income for
Federal income tax purposes (the “Taxable Reimbursements”) shall be made by no later than the earlier of the
date on which they would be paid under the Company’s normal policies and the last day of the calendar year following the
year in which the expense was incurred.

               (ii)         The
amount of any Taxable Reimbursements, and the value of any in-kind benefits to be provided to you, during any calendar year shall
not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year (except for
any life-term or other aggregate limitation applicable to medical expenses).

               (iii)        The
right to Taxable Reimbursement, or in-kind benefits, shall not be subject to liquidation or exchange for another benefit.

               26.          Counterparts.
The Parties may execute this Agreement in counterparts, each of which shall be deemed an original, and all of which taken together
shall constitute one and the same instrument. Delivery of an executed counterpart’s signature page of this Agreement by
facsimile, email in portable document format (.pdf), or by any other electronic means intended to preserve the original graphic
and pictorial appearance of a document has the same effect as delivery of an executed original of this Agreement.

    	16

    	 

    

               IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the Execution Date above.

	 	 	 	 	 
	EMPLOYER	EMPLOYEE
	 	 
	American
    River Bankshares and

    American River Bank	 
	 	 	 	 
	By 	/s/
Charles D. Fite		/s/ David
T. Taber	 
	Name:
    Charles D. Fite

    Title:   Chairman	Name:  David
    T. Taber	 

    	17Exhibit 10.38

  

3100
Zinfandel Drive, Ste. 450, Rancho Cordova, CA 95670 | Tel: (916) 231-6700 | Fax: (916) 851-0123

  

October 27, 2017

 

Mr. David Ritchie

31487 La Pasita

San Juan Capistrano,
California

92675

 

Re:          Employment
Agreement

 

Dear Mr. Ritchie:

 

This is your
EMPLOYMENT AGREEMENT (the “Agreement”) with American River Bankshares, a California corporation (“AMRB”),
and American River Bank, a California banking corporation (the “Bank”) (together, the “Company”).
It sets forth the terms of your employment with the Company, effective as of the Effective Date (as defined below).

 

		1.	Your
                                         Position, Performance and Other Activities.

 

(a)          Position.
You will be employed in the position of President and Chief Executive Officer (“CEO”) of each of AMRB
and the Bank and will report directly to the Company’s Board of Directors (the “Board”).
As of the Effective Date, you will be appointed as a member of the Board. The Company will use all reasonable efforts to cause
you to be nominated for re-election to the Board each time your Board term expires during the Term (as defined in Section 2).
You agree to serve as a member of the Board, as well as a member of any Board committee to which you may be elected or appointed.
You also agree that, unless otherwise agreed to by you and the Company, you will be deemed to have resigned from the Board and
each Board committee voluntarily, without any further action by you, as of the end of the Term or upon a termination of your employment
with the Company for any reason.

 

(b)          Authority,
Responsibilities and Reporting. You will have the authority, responsibilities and reporting relationships that correspond
to your position, including any particular authority, responsibilities and reporting relationships consistent with your position
that the Board may assign to you from time to time and you shall perform your duties hereunder in compliance with such policies
of the Company as may be adopted from time to time.

 

(c)          Performance.
During your employment, you will devote substantially all of your business time and attention to the Company and will use good
faith efforts to discharge your responsibilities under this Agreement to the best of your abilities. During the Term, your place
of performance will be the headquarters of the Company or such other place as the Board determines. Your performance will be reviewed
by the Board on an on-going basis and no less frequently than annually.

 

(d)          Other
Activities. During your employment, you will not render any business, commercial or professional services to any party other
than the Company. However, you may (i) serve on corporate, civic or charitable boards, (ii) manage personal investments, and (iii)
deliver lectures, fulfill speaking engagements and teach at educational institutions, so long as (A) these activities do not interfere
with your performance of your responsibilities under this Agreement, (B) any service on a corporate, civic or charitable board
is disclosed contemporaneously upon commencement and then at least annually to the Board and (C) no such services are provided
to any competitor of the Company.

    	1

    	 

    

		2.	Term
                                         of Your Employment.

 

(a)          Term;
Renewal. Your employment under this Agreement shall be for a term of two (2) years commencing on November 6, 2017 (the
“Effective Date”) and ending upon the earlier of (i)the close of business on November
5, 2019 (the “End Date”), and (ii) the close of business on the effective date of
termination of your employment pursuant to Section 5 (the “Term”). On the End Date and on each
subsequent anniversary of the End Date thereafter, other than an End Date occurring subsequent to a Change in Control Event
(each, a “Renewal Date”), the Term shall automatically renew for an additional one (1) year period,
unless either you or the Company provides the other party with written notice of non-renewal of the Term at least sixty (60)
days prior to the End Date or such Renewal Date, as applicable. Notwithstanding the foregoing, your employment can be
terminated by either the Company or you providing advance written notice in accordance with Section 5(e). If you
remain employed by the Company following the expiration of the Term (including pursuant to a non-renewal thereof), except as
otherwise expressly provided herein, your employment relationship with the Company (if any) shall cease to be governed by the
terms and conditions of this Agreement and shall be on an at-will basis on such terms as may be prescribed by the Company,
unless otherwise agreed to by you and the Company in writing; provided, however, that the provisions of Section 7
below shall survive the expiration or termination of the Term in accordance with their terms.

 

(b)          Automatic
Extension of Term Following a Change in Control Event. If a Change of Control Event occurs prior to an End Date, unless a
written notice of non-renewal shall have been provided pursuant to Section 2(a) prior to a public announcement of any definitive
agreement contemplating a Change in Control Event or a Termination Notice shall have been delivered in accordance with Section
5(e) pursuant to Section 5(c), the Term then in effect shall automatically renew for a period equal to 360 days minus the number
of days remaining in the Term then in effect on the effective date of the Change in Control Event to and including the End Date
for such Term.

 

		3.	Your
                                         Compensation.

 

(a)          Salary.
During the Term, you will receive a base salary (as increased from time to time, your “Salary”) payable
in accordance with the Company’s regular payroll practices. The amount of your Salary as of the Effective Date and through
2018 shall be at the annualized rate of $265,000. Your Salary will be reviewed at least annually commencing in 2019 and your Salary
may be increased, but not decreased, in the sole discretion of the independent members of the Board, based on a recommendation
from the Compensation Committee (the “Comp Committee”).

 

(b)          Annual
Cash Bonus. You will receive a guaranteed bonus for each of fiscal years 2017 and 2018 based upon your continued full-time
employment in the fiscal year ending December 31, 2017 and 2018 in the amount of $160,000 payable on March 1 2018 and 2019, respectively.
Commencing with the fiscal year 2019, you will be eligible to receive an annual bonus (your “Bonus”)
for each fiscal year of the Company commencing with, and based upon your continued employment in, the fiscal year ending December
31 of the relevant fiscal year, pursuant to an annual bonus plan. The amount of the Bonus and the performance goals applicable
to the Bonus shall be determined in accordance with the terms and conditions of said bonus plan as in effect from time to time,
as determined by the independent members of the Board in sole discretion, based on a recommendation from the Comp Committee.

 

(c)          Equity
Based Incentives. Prior to December 31, 2017, you will receive an award of restricted stock pursuant to the Company’s
2010 Equity Inventive Plan (the “2010 Equity Plan”) covering a number of shares determined by dividing
the Reference Value (as defined) by the reported closing stock price of AMRB’s common stock on the NASDAQ Global Select
Market (the “Initial Restricted Stock Award”). The Initial Restricted Stock Award shall be subject to
forfeiture in such amounts and such scheduled lapse as shall be determined by the Board and such other terms and conditions specified
in the 2010 Equity Plan and the restricted stock award pursuant to which the Initial Restricted Stock Award is made. The “Reference
Value” shall equal the product of the closing price as reported on the NYSE for a share of your current employer’s
common stock times the verified number of shares of your current employer’s restricted stock or RSUs held by you on the
Effective Date. Commencing in the fiscal year 2018 and thereafter, based upon your continued employment in the relevant fiscal
year ending on December 31 of the relevant fiscal year, you will be eligible to participate in the 2010 Equity Plan and such additional
or successor equity based incentive plans that may be adopted by the Company from time to time in such amounts and subject to
such terms and conditions as shall be determined in the discretion of the Board.

    	2

    	 

    

		4.	Other
                                         Employee Benefits. During the Term:

 

(a)          Vacation.
You shall be entitled to four (4) weeks (twenty (_20_) business days) paid vacation per year (prorated for partial years), of
which two weeks shall be taken consecutively, and to such paid holidays as are observed by the Company from time to time, all
in accordance with the Company’s policies and practices that are applicable to the Company’s senior executives. Unused
vacation will be carried over from year to year and/or paid out as provided in the Company’s vacation plans and polices
in effect from time to time subject to and in accordance with the Company’s vacation policy in effect from time to time
during the Term.

 

(b)          Business
Expenses. You will be reimbursed for all reasonable business expenses incurred by you in performing your responsibilities
under this Agreement. Reimbursements will be made pursuant to the Company’s normal practices and procedures for senior executives.Relocation
Costs. Recognizing that you will be relocating your principal residence from Southern California to Northern California, the
Company will reimburse you up to $[50,000] for reasonable relocation related expenses including moving, storage, and transport
of furniture, fixtures, personal items and vehicles, the cost of temporary housing in Sacramento County for up to 9 months, and
travel for you and your spouse between Southern and Northern California. Payments will be made against presentation of written
evidence of the incurrence of such costs, including without limitation invoices, cancelled checks, ticket stubs, etc.

 

(c)          Facilities.
You will be provided with office space, facilities, secretarial support and other business services consistent with your position
on a basis that is at least as favorable as that provided to similarly situated senior executives of the Company.

 

(d)          Employee
Benefit Plans. (i) You shall be eligible to participate in all incentive plans, practices, policies and programs, and all
savings and retirement plans, policies and programs in effect from time to time, in each case that are applicable generally to
senior executives of the Company; (ii) you and your eligible family members shall be eligible for participation, at the Company’s
expense, in the welfare benefit plans, practices, policies and programs (including, if applicable, medical, dental, vision, disability,
employee life, group life and accidental death insurance plans and programs) maintained for the Company’s senior executives
from time to time; provided, however, that if your participation in such plans and programs at the Company’s
expense would violate applicable law or would result in fines or penalties to the Company (including, without limitation, pursuant
to the Patient Protection and Affordable Care Act or Section 2716 of the Public Health Service Act or any other health care law),
then you and the Company shall in good faith negotiate replacement benefits and/or replacement compensation to be paid or provided
to you in lieu of such participation at the Company’s expense; and (iii) you shall be entitled to such fringe benefits and
perquisites as are provided by the Company to its senior executives from time to time, in accordance with the policies, practices,
and procedures of the Company.

 

(e)          Automobile
Allowance. The Company will provide you with an automobile and will reimburse you the cost of your related automobile expenses,
including automobile insurance thereon, fuel and maintenance.

 

(f)          Liability
Insurance. The Company shall maintain (i) a directors’ and officers’ liability insurance policy, or an equivalent
errors and omissions liability insurance policy, and (ii) an employment practices liability insurance policy. Each such policy
shall cover you with scope, exclusions, amounts and deductibles no less favorable to you than those applicable to the Company’s
senior executive officers and directors on the Effective Date, or any more favorable as may be available to any other director
or senior executive officer of the Company, while you are employed with the Company.

 

(g)          Indemnification
Agreements. Each of AMRB and the Bank agree to enter into an indemnification agreement with you as of the Effective Date in
the form of agreement included in the AMRB Current Report on Form 8-K, filed with the Securities and Exchange Commission on January
22, 2010, as Exhibit 99.1 and 99.2, respectively.

    	3

    	 

    

(h)          Deferred
Compensation Agreement. You shall be eligible to participate in the American River Bankshares Deferred Compensation Plan to
defer a portion of your Salary and Bonus on the terms and conditions provided in such plan.

 

		5.	Termination
                                         of Your Employment.

 

(a)          No
Reason Required. You or the Company may terminate your employment at any time for any reason, or for no reason, subject to
compliance with Section 5(e).

 

(b)          Termination
by the Company for Cause.

 

(i)            “Cause”
means any of the following:

 

(A)          Your
continued failure, either due to willful action or as a result of gross neglect, to substantially perform your duties and responsibilities
to the Company under this Agreement (other than any such failure resulting from your incapacity due to physical or mental illness)
that, if capable of being cured, has not been cured within thirty (30) days after written notice is delivered to you by the Company,
which notice specifies in reasonable detail the manner in which the Company believes you have not substantially performed your
duties and responsibilities;

 

(B)          Your
engagement in conduct which is demonstrably and materially injurious to the Company, or that materially harms the reputation or
financial position of the Company, unless the conduct in question was undertaken in good faith on an informed basis with due care
and with a rational business purpose and based upon the honest belief that such conduct was in the best interest of the Company;

 

(C)          Your
indictment or conviction of, or plea of guilty or nolo contendere to, a felony or any other crime involving dishonesty,
fraud or moral turpitude;

 

(D)          Your
being found liable in any SEC or other civil or criminal securities law action or entering any cease and desist order with respect
to such action (regardless of whether or not you admit or deny liability) where the conduct which is the subject of such action
is demonstrably and materially injurious to the Company;

 

(E)          Your
material breach of your fiduciary duties to the Company;

 

(F)          Your
(1) obstructing or impeding, (2) endeavoring to influence, obstruct or impede, or (3) failing to materially cooperate with, any
investigation authorized by the Board or any governmental or self-regulatory entity (an “Investigation”).
However, your failure to waive attorney-client privilege relating to communications with your own attorney in connection with
an Investigation shall not constitute “Cause”;

 

(G)          Your
removing, concealing, destroying, purposely withholding, altering or by any other means falsifying any material which is requested
in connection with an Investigation;

 

(H)          Your
disqualification, bar, prohibition, order or similar restriction imposed against you by any governmental or self-regulatory authority
from serving as an officer or director of any member of the Company or your loss of any governmental or self-regulatory license
that is reasonably necessary for you to perform your responsibilities to the Company under this Agreement, if (i) the disqualification,
bar or loss continues for more than 30 days and (ii) during that period the Company uses its good faith efforts to cause the disqualification
or bar to be lifted or the license replaced. While any disqualification, bar or loss continues during your employment, you will
serve in the capacity contemplated by this Agreement to whatever extent legally permissible and, if your employment is not permissible,
you will be placed on leave (which will be paid to the extent legally permissible);

    	4

    	 

    

(I)          Your
unauthorized use or disclosure of confidential or proprietary information or related materials, or your violation of any of the
terms of the Confidentiality Agreements (as defined below) or the Company’s standard confidentiality policies and procedures,
in each case, which results or could reasonably be expected to result in reputational, economic, financial or other injury to
the Company or its subsidiaries or affiliates;

 

(J)          Your
violation, as determined by the Board in good faith, of the Company’s (1) workplace violence policy or (2) policies on discrimination,
unlawful harassment or substance abuse; or

 

(K)          Your
material breach of this Agreement that has not been cured within thirty (30) days after written notice is delivered to you by
the Company, which notice specifies in reasonable detail the manner in which the Company believes this Agreement has been breached.

 

For purposes
of this definition, no act or omission by you will be “willful” unless it is made by you in bad faith or without a
reasonable belief that your act or omission was in the best interests of the Company.

 

(c)          Your
Termination for Good Reason.

 

(i)            “Good
Reason” means the occurrence (without your express written consent) of any of the following:

 

(A)          a
reduction in, or the assignment to you of, duties substantially inconsistent with your position, authority, responsibilities or
status as Chief Executive Officer of the Company (except in connection with a for Cause termination);

 

(B)          a
change in the principal geographic location at which you must perform the services under this Agreement of more than 30 miles
outside of Sacramento County, California, exclusive of required business travel; or

 

(C)          material
breach by the Company of this Agreement.

 

For purposes
of this Agreement, Good Reason shall not be deemed to exist unless (1) your termination of employment for Good Reason occurs within
90 days following the initial existence of one of the conditions specified in clauses (A) through (C) above, (2) you provide the
Company with written notice of the existence of such condition within 60 days after the initial existence of the condition, and
(3) the Company fails to remedy the condition within 30 days after its receipt of such notice.

 

(d)          Termination
on Disability or Death.

 

(i)            The
term “Disability” means your absence from your responsibilities with the Company on a full-time basis
for 90 consecutive days or 180 days in any consecutive 12 month period as a result of incapacity due to mental or physical illness
or injury. If the Company determines in good faith that your Disability has occurred, the Company may give you a Termination Notice
(as defined below). If within 30 days of the Termination Notice you do not return to full-time performance of your responsibilities,
your employment will terminate. If you do return to full-time performance in that 30-day period, the Termination Notice will be
cancelled for all purposes of this Agreement. Except as provided in this Section 5(d), your incapacity due to mental or physical
illness or injury will not affect the Company’s obligations under this Agreement.

 

(ii)           Your
employment will terminate automatically on your death.

    	5

    	 

    

(e)          Advance
Notice Generally Required.

 

(i)            To
terminate your employment, either you or the Company must provide a Termination Notice to the other. A “Termination
Notice” is a written notice that states the specific provision of this Agreement on which such termination is based,
including, if applicable, the specific clause of the definition of Cause and a reasonably detailed description of the facts that
permit termination under that clause. The failure to include any fact in a Termination Notice that contributes to a showing of
Cause does not preclude the Company from asserting that fact in enforcing its rights under this Agreement.

 

(ii)           You
and the Company agree to provide 30 days’ advance Termination Notice of any termination, unless your employment is terminated
by the Company for Cause or because of your Disability or death. Accordingly, the effective date of termination of your employment
will be 30 days after Termination Notice is given, except that (A) the effective date will be the date of the Company’s
Termination Notice if your employment is terminated by the Company for Cause, although the Company may provide a later effective
date in the Termination Notice, (B) the effective date will be 30 days after Termination Notice is given if your employment is
terminated because of your Disability, and (C) the effective date will be the time of your death if your employment is terminated
because of your death. The Company may elect to place you on paid leave for all or part of the advance Termination Notice period.
Notwithstanding the foregoing, if you give the Company Termination Notice, the Company in its sole discretion may waive the 30-day
notice requirement and accelerate the effective date of termination of your employment to any earlier date. In the event of a
termination for Good Reason, the provisions of Section 5(c) above shall control over any inconsistent provisions in this Section
5(e)(ii).

 

(f)          Non-Renewal.
Notwithstanding anything contained herein, in no event shall the expiration of the Term or the Company’s election not to
renew or extend the Term or your employment with the Company constitute a termination of your employment by the Company without
Cause or by you for Good Reason. For the avoidance of doubt, nothing contained in this Section 5(f) shall preclude or limit the
Company’s ability, in its sole discretion, to pay or provide you with severance or termination pay and/or benefits in connection
with a termination of your employment upon or following the expiration of the Term or the Company’s election not to renew
or extend the Term.

 

		6.	The
                                         Company’s Obligations in Connection with Your Termination.

 

(a)          General
Effect. On termination, your employment will end and the Company will have no further obligations to you except as provided
in this Section 6.

 

(b)          By
the Company Without Cause or by You for Good Reason. If the Company terminates your employment without Cause or you terminate
your employment for Good Reason, in either case, other than within twelve (12) months following a “Change in Control”
(as defined below), subject to Section 6(f):

 

(i)             The
Company will pay you the following as of the end of your employment: (A) your unpaid Salary through the date of termination, (B)
your Salary for any accrued but unused vacation, and (C) any accrued expense reimbursements and other cash entitlements (together,
your “Accrued Compensation”), in each case, as and when such amounts would otherwise been paid had your
employment not been terminated or such earlier time as may be required by law. In addition, the Company will timely pay you any
amounts and provide to you any benefits that are required, or to which you are entitled, under any plan, contract or arrangement
of the Company (together, the “Other Benefits”).

 

(ii)            The
Company will pay you an amount equal to one year of your then-current annual Salary, to be paid on the Company’s regular
pay cycle and through the Company’s payroll over a 12-month period commencing on the date of the termination of employment.

 

(iii)          The
Company will pay you an amount equal to a pro-rated portion of your prior year’s Bonus based on the number of days worked
during the year of termination, payable in a lump-sum within thirty (30) days following the date of termination of employment.

    	6

    	 

    

(iv)          All
outstanding and then unvested stock options, restricted stock and other equity awards granted to you under any of the Company’s
equity incentive plans (or awards substituted therefore covering the securities of a successor company) (each, an “Equity
Award”) which are at such time subject to vesting solely based on your continued employment with the Company (each,
a “Time-Vesting Equity Award”) shall be deemed to have vested as if your employment has continued for
one (1) year following the actual termination date. All other outstanding and unvested Equity Awards (each, a “Performance-Vesting
Equity Award”) shall be treated in accordance with the terms of the plan document and applicable award agreement
governing such Performance-Vesting Equity Award.

 

(v)           If
you timely elect to continue your Company-provided health insurance coverage pursuant to the federal COBRA law, the Company will
pay directly or, at its election, reimburse you for the cost of such COBRA premiums, at the same level as you maintain as of the
date of termination, through the end of the COBRA period (18 months), or until such time as you qualify for health insurance benefits
through a new Company, whichever occurs first (the “COBRA Period”).  The reimbursement shall be for
100% of your COBRA premiums, as well as for your eligible dependents’ COBRA premiums, and the coverage to be provided on
this basis shall be health and dental coverage. Notwithstanding the foregoing, if (x) any plan pursuant to which such benefits
are provided is not, or ceases prior to the expiration of the period of continuation coverage to be, exempt from the application
of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) under Treasury Regulation
Section 1.409A-1(a)(5), or (y) the Company is otherwise unable to continue to cover you under its group health plans without incurring
penalties (including without limitation, pursuant to the Patient Protection and Affordable Care Act or Section 2716 of the Public
Health Service Act or any other health care law), then, in either case, an amount equal to each remaining COBRA premium under
such plans shall thereafter be paid to you in substantially equal monthly installments over the COBRA Period (or the remaining
portion thereof) (the benefits under this Section 6(b)(v), the “COBRA Benefit”).

 

(c)          By
the Company For Cause or by You for Any Reason other than for Good Reason. If the Company terminates your employment for Cause
or you terminate your employment for any reason other than for Good Reason as set forth in Section 6(b) or 6(e), the Company will
pay your Accrued Compensation and provide your Other Benefits, as and when such amounts would otherwise been paid had your employment
not been terminated or such earlier time as may be required by law.

 

(d)          Your
Disability or Death. If your employment terminates because of Disability or death, the Company will pay or provide you or
your estate (1) your Accrued Compensation and your Other Benefits, as and when such amounts would otherwise been paid had your
employment not been terminated or such earlier time as may be required by law, and (2) subject to Section 6(f), an amount equal
to a pro-rated portion of your prior year’s Bonus based on the number days worked during the year of termination, payable
in a lump-sum within thirty (30) days following the date of termination of employment. In such event, all Equity Awards granted
to you after the Effective Date shall be treated as provided in Section 6(b)(iv).

 

(e)          Change
in Control; Termination in Connection with a Change in Control. If within twelve (12) months following a Change in Control,
the Company terminates your employment without Cause or you terminate your employment for Good Reason, in either case, subject
to Section 6(f):

 

(i)          The
Company will pay you your Accrued Compensation and provide your Other Benefits, as and when such amounts would otherwise have
been paid had your employment not been terminated or such earlier time required by law.

 

(ii)          In
lieu of the amounts set forth in Sections 6(b)(ii) and (iii) above, the Company will pay you an amount equal to two (2) times
the sum of (a) your then-current annual Salary and (b) the average of your annual Bonus for the full fiscal years during which
you provide service hereunder up to the three year average of your annual Bonus for the three fiscal years prior to the year in
which the Change of Control occurs, payable in a lump-sum within thirty (30) days following the date of termination.

    	7

    	 

    

(iii)          The
Company shall provide you with the COBRA Benefit on the terms and conditions set forth in Section 6(b)(v) above.

 

(iv)          In
the event of any Change in Control, (a) your Time-Vesting Equity Awards shall fully and automatically vest as of the date of such
Change in Control and (b) your Performance-Vesting Equity Awards shall be treated in accordance with the terms of the plan document
and applicable award agreement governing such Performance-Vesting Equity Award.

 

(v)          For
purposes of this Agreement, a “Change in Control” shall mean any transaction or series of related transactions
as a result of which:

 

(A)          the
Company consummates a reorganization, merger or consolidation, or sale or other disposition of all or substantially all of its
assets (each a “Business Combination”), in each case, unless immediately following the consummation
of such Business Combination all of the following conditions are satisfied:

 

(1)          Persons,
who, immediately prior to such Business Combination, were the beneficial owners of the Outstanding Voting Securities of the Company,
beneficially own (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), directly or indirectly, more than 50% of the combined voting power of the then Outstanding Voting Securities
of the entity (the “Resulting Entity”) resulting from such Business Combination (including, without
limitation, an entity which as a result of such transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries);

 

(2)          no
Person beneficially owns (within the meaning of Rule 13d-3), directly or indirectly, more than 50% of the then outstanding combined
voting power of the Outstanding Voting Securities of the Resulting Entity, except to the extent that such Person’s beneficial
ownership of the Company immediately prior to the Business Combination exceeded such threshold;

 

(3)          at
least one-half of the members of the board of directors of the Resulting Entity were members of the Board at the time the Board
authorized the Company to enter into the definitive agreement providing for such Business Combination; or

 

(B)          any
Person acquires beneficial ownership (within the meaning of Rule 13d-3) of more than 50% of the combined voting power (calculated
as provided in Rule 13d-3 in the case of rights to acquire securities) of the then Outstanding Voting Securities of the Company
and has greater beneficial ownership than the existing stockholders of the Company as of the date hereof; provided, however,
that for purposes of this clause, the following acquisitions shall not constitute a Change of Control: (x) any acquisition directly
from the Company, (y) any acquisition by the Company, or (z) any acquisition by any employee benefit plan (or related trust) sponsored
or maintained by the Company or any entity controlled by the Company.

 

(C)          “Person”
shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act, which definition shall include a “person”
within the meaning of Section 13(d)(3) of the Exchange Act.

 

(D)          “Outstanding
Voting Securities” of any Person means the outstanding securities of such Person entitling the holders thereof to
vote generally in the election of directors of such Person.

 

(vi)          The
payments and vesting provisions set forth in this Agreement, including under this subsection (e), shall: (A) with respect to the
treatment of Equity Awards under this Section 6, take precedence over any conflicting provision under any award agreement applicable
to such Equity Awards, unless such award agreement is more favorable to you, in which case the award agreement shall govern; and
(B) be subject to the provisions set forth in Annex A.

    	8

    	 

    

(f)          Release.
Notwithstanding anything to the contrary herein, the Company will not be required to make the payments or provide the benefits
stated in this Section 6 (other than your Accrued Compensation and Other Benefits) unless you execute and deliver to the Company
(and do not revoke within the applicable time period) a general release of claims substantially in the form attached hereto as
Annex B (the “Release”) within thirty (30) days following the date of termination of your employment.
If the Release is executed and delivered and no longer subject to revocation as provided in the preceding sentence, then the following
shall apply:

 

(i)          To
the extent any such cash payment or continuing benefit to be provided is not “deferred compensation” for purposes
of Section 409A of the Code (“Section 409A”), then such payment or benefit shall commence upon the first
scheduled payment date immediately after the date the Release is executed and no longer subject to revocation (the “Release
Effective Date”). The first such cash payment shall include payment of all amounts that otherwise would have been
due prior to the Release Effective Date under the terms of this Agreement had such payments commenced immediately upon the termination
of your employment, and any payments made thereafter shall continue as provided herein. The delayed benefits shall in any event
expire at the time such benefits would have expired had such benefits commenced immediately following the termination of your
employment.

 

(ii)          To
the extent any such cash payment or continuing benefit to be provided is “deferred compensation” for purposes of Section
409A, then such payments or benefits shall be made or commence upon the thirty-first (31st) day following the termination
of your employment. The first such cash payment shall include payment of all amounts that otherwise would have been due prior
thereto under the terms of this Agreement had such payments commenced immediately upon the termination of your employment, and
any payments made thereafter shall continue as provided herein. The delayed benefits shall in any event expire at the time such
benefits would have expired had such benefits commenced immediately following the termination of your employment.

 

		7.	Confidentiality;
                                         Non-Solicitation; Non-Disparagement.

 

(a)          You
acknowledge and agree that you are bound by the Company’s standard confidentiality policies and procedures in effect from
time to time and any confidentiality or non-disclosure agreements you may execute at the request of the Company from time to time.
Notwithstanding the foregoing, however, nothing in those policies, procedures, or agreements shall prevent your truthful testimony
as a witness, participation in an Investigation, or disclosure of wrongdoing to law enforcement or regulatory agencies of competent
jurisdiction, including, without limitation, the Equal Employment Opportunity Commission (EEOC), National Labor Relations Board
(NLRB), Occupational Safety and Health Administration (OSHA), the Securities and Exchange Commission, the Board of Governors of
the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC) or California Department of Business Oversight
(DBO), or prohibit you from divulging confidential or proprietary information to the extent required by order of court or agency
of competent jurisdiction.

(b)          The Company
and you agree that neither of us will make any statement that would libel, slander or disparage you or any member of the Company
or any of their respective past or present officers, directors, employees or agents.

 

		8.	Effect
                                         on Other Agreements; Entire Agreement.

 

This Agreement
is the entire agreement between you and the Company with respect to the relationship contemplated by this Agreement and supersedes
any earlier agreement, written or oral, with respect to the subject matter of this Agreement. You agree that, effective as of
the Effective Date, this Agreement replaces, terminates and supersedes the Prior Agreement, and that the Prior Agreement is hereby
terminated and shall be of no further force or effect. In entering into this Agreement, no party has relied on or made any representation,
warranty, inducement, promise or understanding that is not in this Agreement. You hereby acknowledge that you are not subject
to any obligation which would in any way restrict the performance of your duties hereunder.

    	9

    	 

    

		9.	Successors.

 

(a)          Payments
on Your Death. If you die and any amounts are or become payable under this Agreement, the Company will pay those amounts to
your estate.

 

(b)          Assignment
by You. You may not assign this Agreement without the Company’s consent. Also, except as required by law, your right
to receive payments or benefits under this Agreement may not be subject to execution, attachment, levy or similar process. Any
attempt to effect any of the preceding in violation of this Section 9(b), whether voluntary or involuntary, will be void.

 

(c)          Assumption
by any Surviving Company. Before the effectiveness of any merger, consolidation, statutory share exchange or similar transaction
(including an exchange offer combined with a merger or consolidation) involving the Company (a “Reorganization”)
or any sale, lease or other disposition (including by way of a series of transactions or by way of merger, consolidation, stock
sale or similar transaction involving one or more subsidiaries) of all or substantially all of the Company’s consolidated
assets (a “Sale”), other than a Reorganization or Sale pursuant to which this Agreement will be assumed
by the Surviving Company by operation of law, the Company will cause (1) the Surviving Company to unconditionally assume this
Agreement in writing and (2) a copy of the assumption to be provided to you. After the Reorganization or Sale, the Surviving Company
will be treated for all purposes as the Company under this Agreement. The “Surviving Company” means
(i) in a Reorganization, the entity resulting from the Reorganization or (ii) in a Sale, the entity that has acquired all or substantially
all of the assets of the Company.

 

		10.	Disputes.

 

(a)          Employment
Matters. This Section 10 applies to any controversy or claim between you and the Company arising out of or relating to or
concerning this Agreement or any aspect of your employment with the Company or the termination of that employment (together, an
“Employment Matter”). This includes, but is not limited to, any and all employment-related claims or
controversies, such as breach of employment agreement, breach of the covenant of good faith and fair dealing, negligent supervision
or hiring, wrongful discharge in violation of public policy, unpaid wages under the state and federal wage payment laws, breach
of privacy claims, intentional or negligent infliction of emotional distress claims, fraud, misrepresentations, defamation, and
any claims that could be asserted under all state and federal anti-discrimination laws, including, but not limited to, the California
Fair Employment and Housing Act, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans
with Disabilities Act, the California Labor Code, and the Family and Medical Leave Act. You specifically agree to arbitrate all
claims for discrimination and marital status, sexual orientation, disability, political activity, or any other statutorily-protected
basis under the procedure set forth in the this Section 10 and not through a court of law. This Agreement is further intended
to apply to any claim you may have against any of the Company’s officers, directors, employees, agents, or any of its affiliated
or related entities, and to any and all past and future employment relationships you may have with the Company regardless of job
position or title.

 

(b)          Mandatory
Arbitration. Any controversy arising out of or relating to this Agreement, its enforcement or interpretation, or because of
an alleged breach, default, or misrepresentation in connection with any of its provisions, or any other controversy arising out
of your employment, including, but not limited to, any state or federal statutory claims, shall be submitted to arbitration in
the County of Sacramento, California, before a sole arbitrator selected from Judicial Arbitration and Mediation Services, Inc.,
Sacramento, California, or its successor (“JAMS”), or if JAMS is no longer able to supply the arbitrator,
such arbitrator shall be selected from the American Arbitration Association, and shall be conducted in accordance with the provisions
of California Code of Civil Procedure § 1280 et seq. as the exclusive forum for the resolution of such dispute; provided,
however, that in the event that provisional injunctive relief is not available, or is not available in a timely manner,
through such arbitration, then provisional injunctive relief may, but need not, be sought by either party to this Agreement in
a court of law while arbitration proceedings are pending, and any provisional injunctive relief granted by such court shall remain
effective until the matter is finally determined by the Arbitrator. Either you or the Company may initiate the arbitration process
by delivering a written request for arbitration to the other party within the time limits that would apply to the filing of civil
complaint in state or federal district court, as applicable to the claim at issue. A late request will be void. Final resolution
of any dispute through arbitration may include any remedy or relief which the Arbitrator deems just and equitable, including any
and all remedies provided by applicable state or federal statutes. At the conclusion of the arbitration, the Arbitrator shall
issue a written decision that sets forth the essential findings and conclusions upon which the Arbitrator’s award or decision
is based. Any award or relief granted by the Arbitrator hereunder shall be final and binding on the parties hereto and may be
enforced by any court of competent jurisdiction. The parties hereto acknowledge and agree that they are hereby waiving any rights
to trial by jury in any action, proceeding or counterclaim brought by either of the parties hereto against the other in connection
with any matter whatsoever arising out of or in any way connected with this Agreement or your employment. The parties hereto agree
that the Company shall be responsible for payment of the forum costs of any arbitration hereunder, including the Arbitrator’s
fee. You and the Company further agree that in any proceeding to enforce the terms of this Agreement, the prevailing party shall
be entitled to its or his reasonable attorneys’ fees and costs (other than forum costs associated with the arbitration)
incurred by it or him in connection with resolution of the dispute in addition to any other relief granted. Notwithstanding this
provision, the parties hereto may mutually agree to mediate any dispute prior to or following submission to arbitration.

    	10

    	 

    

(c)          Enforcement
of Arbitration Awards. You or the Company may bring an action or special proceeding in a state or federal court of competent
jurisdiction sitting in the County of Los Angeles, California to enforce any arbitration award under Section 10(b).

 

(d)          Jurisdiction
and Choice of Forum. You and the Company irrevocably submit to the exclusive jurisdiction of any state or federal court located
in the County of Sacramento, California over any Employment Matter that is not otherwise arbitrated or resolved according to Section
10(b). This includes any action or proceeding to compel arbitration or to enforce an arbitration award. Both you and the Company
(i) acknowledge that the forum stated in this Section 10(d) has a reasonable relation to this Agreement and to the relationship
between you and the Company and that the submission to the forum will apply even if the forum chooses to apply non-forum law,
(ii) waive, to the extent permitted by law, any objection to personal jurisdiction or to the laying of venue of any action or
proceeding covered by this Section 10(d) in the forum stated in this Section, including any objection on the grounds of forum
non conveniens or the like, (iii) agree not to commence any such action or proceeding in any forum other than the forum stated
in this Section 10(d), and (iv) agree that, to the extent permitted by law, a final and non-appealable judgment in any such action
or proceeding in any such court will be conclusive and binding on you and the Company.

 

(e)          Waiver
of Jury Trial. To the extent permitted by law, you and the Company waive any and all rights to a jury trial with respect to
any Employment Matter. Notwithstanding the provisions of this Agreement, you shall have the right to file a claim for workers’
compensation and unemployment insurance benefits with the appropriate state agencies, unfair labor practice charges with the National
Labor Relations Board, or an administrative charge with the Equal Employment Opportunity Commission, California Department of
Fair Employment and Housing, or any similar state agency.

 

(f)          Governing
Law. This Agreement, and all questions relating to its validity, interpretation, performance and enforcement, as well as the
legal relations hereby created between the parties hereto, shall be governed by and construed under, and interpreted and enforced
in accordance with, the laws of the State of California, notwithstanding any California or other conflict of law provision to
the contrary.

 

		11.	General
                                         Provisions.

 

(a)          Construction.
References (A) to Sections are to sections of this Agreement unless otherwise stated; (B) to any contract (including this Agreement)
are to the contract as amended, modified, supplemented or replaced from time to time; (C) to any statute, rule or regulation are
to the statute, rule or regulation as amended, modified, supplemented or replaced from time to time (and, in the case of statutes,
include any rules and regulations promulgated under the statute) and to any section of any statute, rule or regulation include
any successor to the section; (D) to any governmental authority include any successor to the governmental authority; (E) to any
plan include any programs, practices and policies; (F) to any entity include any corporation, limited liability company, partnership,
association, business trust and similar organization and include any governmental authority; and (G) to any affiliate of any entity
are to any person or other entity directly or indirectly controlling, controlled by or under common control with the first entity.

    	11

    	 

    

(i)            The
various headings in this Agreement are for convenience of reference only and in no way define, limit or describe the scope or
intent of any provisions or Sections of this Agreement.

 

(ii)          Unless
the context requires otherwise, (A) words describing the singular number include the plural and vice versa, (B) words denoting
any gender include all genders and (C) the words “include”, “includes” and “including” will
be deemed to be followed by the words “without limitation.”

 

(iii)          It
is your and the Company’s intention that this Agreement not be construed more strictly with regard to you or the Company.

 

(b)          Withholding.
You and the Company will treat all payments to you under this Agreement as compensation for your employment. Accordingly, the
Company may withhold from any payment any taxes that are required to be withheld under any law, rule or regulation.

 

(c)          Severability.
If any provision of this Agreement is found by any court of competent jurisdiction (or legally empowered agency) to be illegal,
invalid or unenforceable for any reason, then (1) the provision will be amended automatically to the minimum extent necessary
to cure the illegality or invalidity and permit enforcement and (2) the remainder of this Agreement will not be affected.

 

(d)          No
Set-off or Mitigation. Except if your employment is terminated by the Company for Cause, your and the Company’s respective
obligations under this Agreement will not be affected by any set-off, counterclaim, recoupment or other right you or any member
of the Company may have against each other or anyone else. You do not need to seek other employment or take any other action to
mitigate any amounts owed to you under this Agreement.

 

(e)          Notices.
All notices, requests, demands and other communications under this Agreement must be in writing and will be deemed given (1) on
the business day sent, when delivered by hand or facsimile transmission (with confirmation) during normal business hours, (2)
on the business day after the business day sent, if delivered by a nationally recognized overnight courier or (3) on the third
business day after the business day sent if delivered by registered or certified mail, return receipt requested, in each case
to the following address or number (or to such other addresses or numbers as may be specified by notice that conforms to this
Section 11(e)):

 

If to you, to
your address then on file with the Company’s payroll department with a copy to:

 

Mr. David
Ritchie

31487 La
Pasita

San Juan
Capistrano, California 92675

 

If to the Company
or any other member of the Company, to:

 

American River Bankshares
 3100 Zinfandel
Drive

Rancho Cordova, California 95670

Attention: Chairman of the Board

Facsimile:

 

With a copy to
(which shall not constitute notice):

 

Manatt, Phelps & Phillips, LLP

11355 Olympic Boulevard

Los Angeles, California 90064

Attention: Gordon M. Bava

Facsimile: (310) 914-5772
 Email:
gbava@manatt.com

    	12

    	 

    

(f)          Consideration.
This Agreement is in consideration of the mutual covenants contained in it. You and the Company acknowledge the receipt and sufficiency
of the consideration to this Agreement and intend this Agreement to be legally binding.

 

(g)          Amendments
and Waivers. Any provision of this Agreement may be amended or waived but only if the amendment or waiver is in writing and
signed, in the case of an amendment, by you and the Company or, in the case of a waiver, by the party that would have benefited
from the provision waived. Except as this Agreement otherwise provides, no failure or delay by you or the Company to exercise
any right or remedy under this Agreement will operate as a waiver, and no partial exercise of any right or remedy will preclude
any further exercise.

 

(h)          Legal
Counsel; Mutual Drafting. Each party recognizes that this is a legally binding contract and acknowledges and agrees that they
have had the opportunity to consult with legal counsel of their choice. Each party has cooperated in the drafting, negotiation
and preparation of this Agreement. Hence, in any construction to be made of this Agreement, the same shall not be construed against
either party on the basis of that party being the drafter of such language. You agree and acknowledge that you have read and understand
this Agreement, are entering into it freely and voluntarily, and have been advised to seek counsel prior to entering into this
Agreement and have had ample opportunity to do so.

 

(i)          Golden
Parachute/Bank Regulatory Limitation. The parties understand and agree that at the time any payment would otherwise be made
or benefit provided under Section 6 of this Agreement, depending on the facts and circumstances existing at such time, the satisfaction
of such obligations by the Company may be deemed by a regulatory authority to be illegal, an unsafe and unsound practice, or for
some other reason not properly due or payable by the Company. Among other things, applicable banking laws, regulations and published
guidance and policies of the appropriate regulatory authorities (including, but not limited to, Section 39(a) of the Federal Deposit
Insurance Act 12 C.F.R. Part 208 Appendix D-1, § III, Guidance on Sound Incentive Compensation Policies, 75 Fed. Reg. 36,395
(June 25, 2010) or similar regulations or regulatory action following similar principles may apply at such time. You understand,
acknowledge and agree that, notwithstanding any other provision of this Agreement, the Company shall not be obligated to make
any payment or provide any benefit under Section 6 of this Agreement where (i) an appropriate regulatory authority does not approve
or acquiesce as required or objects to the making of such payment or benefit or (ii) the Company has been informed in writing
by a representative of the appropriate regulatory authority that it is the position of such regulatory authority that making such
payment or providing such benefit would constitute an unsafe and unsound practice, violate a written agreement with the regulatory
authority, violate an applicable rule or regulation, or would cause the representative of the regulatory authority to recommend
enforcement action against the Company.

 

(j)          Key
Employee Delay on Payments. Notwithstanding the timing of payments set forth in Agreement, if the Company determines that
you are a “specified employee” within the meaning of Section 409A, as may be amended and that, as a result of such
status, any portion of the payment under this Agreement would be subject to additional taxation, the Company will delay paying
any portion of such payment until the earliest permissible date on which payments may commence without triggering such additional
taxation (with such delay not to exceed six (6) months), with the first such payment to include the amounts that would have been
paid earlier but for the above delay.

 

(k)          Third-Party
Beneficiaries. Subject to Section 9, this Agreement will be binding on, inure to the benefit of and be enforceable by the
parties and their respective heirs, personal representatives, successors and assigns. This Agreement does not confer any rights,
remedies, obligations or liabilities to any entity or person other than you and the Company and your and the Company’s permitted
successors and assigns, although (i) this Agreement will inure to the benefit of the Company and (ii) Section 9(a) will inure
to the benefit of the most recent persons named in a notice under that Section.

    	13

    	 

    

		12.	Compliance
                                         with Section 409A.

 

(a)          General.
It is the intention of both the Company and you that the benefits and rights to which you could be entitled pursuant to this Agreement
comply with Section 409A to the extent that the requirements of Section 409A are applicable thereto, and the provisions of this
Agreement shall be construed in a manner consistent with that intention. If you or the Company believes, at any time, that any
such benefit or right that is subject to Section 409A does not so comply, it shall promptly advise the other and shall negotiate
reasonably and in good faith to amend the terms of such benefits and rights such that they comply with Section 409A (with the
most limited possible economic effect on you and on the Company). Notwithstanding the foregoing, the Company does not make any
representation to you that the payments or benefits provided under this Agreement are exempt from, or satisfy, the requirements
of Section 409A, and the Company shall have no liability or other obligation to indemnify or hold harmless the you or any beneficiary
for any tax, additional tax, interest or penalties that you or any beneficiary may incur in the event that any provision of this
Agreement, or any amendment or modification thereof, or any other action taken with respect thereto, is deemed to violate any
of the requirements of Section 409A.

 

(b)          Distributions
on Account of Separation from Service. If and to the extent required to comply with Section 409A, no payment or benefit required
to be paid under this Agreement on account of termination of your employment shall be made unless and until you incur a “separation
from service” within the meaning of Section 409A.

 

(c)          No
Acceleration of Payments. Neither the Company nor you, individually or in combination, may accelerate any payment or benefit
that is subject to Section 409A, except in compliance with Section 409A and the provisions of this Agreement, and no amount that
is subject to Section 409A shall be paid prior to the earliest date on which it may be paid without violating Section 409A.

 

(d)          Treatment
of Each Installment as a Separate Payment and Timing of Payments. For purposes of applying the provisions of Section 409A
to this Agreement, each separately identified amount to which you are entitled under this Agreement shall be treated as a separate
payment. In addition, to the extent permissible under Section 409A, any series of installment payments under this Agreement shall
be treated as a right to a series of separate payments. Whenever a payment under this Agreement specifies a payment period with
reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the
Company.

 

(e)          Taxable
Reimbursements and In-Kind Benefits.

 

(i)          Any
reimbursements by the Company to you of any eligible expenses under this Agreement that are not excludable from your income for
Federal income tax purposes (the “Taxable Reimbursements”) shall be made by no later than the earlier
of the date on which they would be paid under the Company’s normal policies and the last day of the calendar year following
the year in which the expense was incurred.

 

(ii)          The
amount of any Taxable Reimbursements, and the value of any in-kind benefits to be provided to you, during any calendar year shall
not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year (except for
any life-term or other aggregate limitation applicable to medical expenses).

 

(iii)          The
right to Taxable Reimbursement, or in-kind benefits, shall not be subject to liquidation or exchange for another benefit.

 

		13.	Counterparts.

 

This Agreement
may be executed in counterparts, each of which will constitute an original and all of which, when taken together, will constitute
one agreement. However, this Agreement will not be effective until the date both parties have executed this Agreement.

 

Very truly yours,

    	14

    	 

    

	AMERICAN
    RIVER BANKSHARES	 	AMERICAN
    RIVER BANK
	 	 	 
	/s/
    Charles D. Fite	 	/s/
    Charles D. Fite
	Name:
                                         Charles D. Fite

        Title:
        Chairman
	 	Name:
                                         Charles D. Fite

        Title:
        Chairman

 

ACCEPTED AND AGREED
TO:

 

	/s/ David Ritchie	 

Name: David Ritchie

 

Dated: October
27, 2017

    	15

    	 

    

Annex
A

 

Limitation
on Payments Following a Change in Control

 

In
the event that any payment or benefit received or to be received by Mr. David Ritchie (“Executive”)
pursuant to that certain Employment Agreement (the “Agreement”), dated September 21, 2017, by and between
Executive, American River Bankshares and American River Bank (together, the “Company”) or otherwise
(“Payments”) would (i) constitute a “parachute payment” within the meaning of Section 280G
of the Internal Revenue Code of 1986, as amended (the “Code”) and (ii) but for this Annex A, be subject
to the excise tax imposed by Section 4999 of the Code, any successor provisions, or any comparable federal, state, local or foreign
excise tax (“Excise Tax”), then such Payments shall be either (A) provided in full pursuant to the terms
of the Agreement and any other applicable agreements and plans, or (B) provided as to such lesser extent which would result in
no portion of such Payments being subject to the Excise Tax (“Reduced Amount”), whichever of the foregoing
amounts, taking into account the applicable federal, state, local and foreign income, employment and other taxes and the Excise
Tax (including, without limitation, any interest or penalties on such taxes), results in the receipt by Executive, on an after-tax
basis, of the greater amount of aggregate payments and benefits provided for hereunder or otherwise, notwithstanding that all
or some portion of such Payments may be subject to the Excise Tax; provided, however, if Executive’s net after-tax benefit
of receiving the Payments in full would be less than $10,000 greater than Executive’s net after-tax benefit of receiving
the Reduced Amount, Executive shall be provided the Reduced Amount instead of the Payments in full. Unless the Company and Executive
otherwise agree in writing, any determination required under this Annex A shall be made by independent tax counsel designated
by the Company and reasonably acceptable to Executive (“Independent Tax Counsel”), whose determination
shall be conclusive and binding upon Executive and the Company for all purposes. For purposes of making the calculations required
under this Annex A, Independent Tax Counsel may make reasonable assumptions and approximations concerning applicable taxes and
may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code; provided
that Independent Tax Counsel shall assume that Executive pays all taxes at the highest marginal rate unless Executive’s
actual effective marginal tax rate at the relevant time is less than the highest marginal rate, in which case such lower rate
shall be used by Independent Tax Counsel. The Company and Executive shall furnish to Independent Tax Counsel such information
and documents as Independent Tax Counsel may reasonably request in order to make a determination under this Annex A. The Company
shall bear all costs that Independent Tax Counsel may reasonably incur in connection with any calculations contemplated by this
Annex A. In the event that (ii)(B) above applies, then based on the information provided to Executive and the Company by Independent
Tax Counsel, and notwithstanding any other provision of the Agreement or any other plan, arrangement or agreement to the contrary,
the reduction of such Payments shall be made as follows: (A) if none of the Payments constitute non-qualified deferred compensation
(within the meaning of Section 409A of the Code), then such reduction and/or repayment shall occur in the manner the Executive
elects in writing prior to the date of Payment; or (B) if any Payment constitutes non-qualified deferred compensation or if the
Executive fails to elect an order in the event that none of the Payments constitutes non-qualified deferred compensation (within
the meaning of Section 409A of the Code), then the Payments to be reduced will be determined in a manner which maximizes the Executive’s
economic position and, to the extent the economic cost is equivalent between one or more Payments, such Payments will be reduced
in the inverse order of when payment would have been made to the Executive, until the aggregate Payments payable to the Executive
equal the Reduced Amount. 

    	 

    	 

    

Annex
B

 

General Release

 

For
valuable consideration, the receipt and adequacy of which are hereby acknowledged, the undersigned does hereby release and forever
discharge the “Releasees” hereunder, consisting of American River Bankshares, a California corporation,
and American River Bank, a California banking corporation (together, the “Company”), and their partners,
associates, parents, subsidiaries, affiliates, successors, heirs, assigns, agents, directors, officers, employees, equityholders,
representatives, lawyers, insurers, and all persons acting by, through, under or in concert with them, or any of them, of and
from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts,
agreements, promises, liability, claims, demands, damages, losses, costs, attorneys’ fees or expenses, of any nature whatsoever,
known or unknown, fixed or contingent (hereinafter called “Claims”), which the undersigned now has or
may hereafter have against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning
of time to the date hereof.  The Claims released herein include, without limiting the generality of the foregoing, any Claims
in any way arising out of, based upon, or related to the employment or termination from employment of the undersigned by the Releasees,
or any of them; any claim for benefits under any stock option or other equity-based incentive plan of the Releasees (or any related
agreement to which any Releasee is a party); any alleged breach of any express or implied contract of employment; any alleged
torts or other alleged legal restrictions on Releasee’s right to terminate the employment of the undersigned; and any alleged
violation of any federal, state or local statute or ordinance including, without limitation, Title VII of the Civil Rights Act
of 1964, the Age Discrimination in Employment Act, and the Americans With Disabilities Act. Notwithstanding the foregoing, this
Release shall not operate to release any Claims which the undersigned may have with respect to (i) payments and other express
obligations of the Company under that certain Employment Agreement, dated as of September 21, 2017, between the Company and the
undersigned (“Employment Agreement”); (ii) accrued or vested benefits the undersigned may have, if any, as of the
date hereof under any employee benefit plan of the Company or, with respect to any outstanding equity awards held by the undersigned,
under any equity incentive plan, stock award or option agreement, as any such stock award or option agreement may be amended by
the Employment Agreement, if such amendment is more favorable to the undersigned; (iii) payments and other obligations of the
Company with respect to indemnification of the undersigned under the Company’s Articles of Incorporation, and Bylaws, as
each may be amended from time to time, and under any indemnification agreement between the Company and the undersigned. Additionally,
notwithstanding the foregoing, the undersigned does not release the undersigned’s rights under this Release and any Claims
that cannot be released as a matter of law, including, without limitation, the undersigned’s right to communicate directly
with, cooperate with, or provide information to, any federal, state or local government regulator.

 

THE
UNDERSIGNED ACKNOWLEDGES THAT HE HAS BEEN ADVISED BY LEGAL COUNSEL AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE
SECTION 1542, WHICH PROVIDES AS FOLLOWS:

 

“A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME
OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

 

THE UNDERSIGNED,
BEING AWARE OF SAID CODE SECTION, HEREBY EXPRESSLY WAIVES ANY RIGHTS HE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES
OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

 

IN
ACCORDANCE WITH THE OLDER WORKERS BENEFIT PROTECTION ACT OF 1990, THE UNDERSIGNED IS HEREBY ADVISED AS FOLLOWS:

 

(1)          HE
HAS THE RIGHT TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS RELEASE;

 

(2)          HE
HAS TWENTY-ONE (21) DAYS TO CONSIDER THIS RELEASE BEFORE SIGNING IT; AND

    	 

    	 

    

(3)          HE
HAS SEVEN (7) DAYS AFTER SIGNING THIS RELEASE TO REVOKE IT, AND THIS RELEASE SHALL BECOME EFFECTIVE UPON THE EXPIRATION OF THAT
REVOCATION PERIOD.

 

The
undersigned represents and warrants that there has been no assignment or other transfer of any interest in any Claim which he
may have against Releasees, or any of them, and the undersigned agrees to indemnify and hold Releasees, and each of them, harmless
from any liability, Claims, demands, damages, costs, expenses and attorneys’ fees incurred by Releasees, or any of them,
as the result of any such assignment or transfer of any rights or Claims under any such assignment or transfer.  It is the
intention of the parties that this indemnity does not require payment as a condition precedent to recovery by the Releasees against
the undersigned under this indemnity.

 

The undersigned
agrees that if he hereafter commences any suit arising out of, based upon, or relating to any of the Claims released hereunder
or in any manner asserts against Releasees, or any of them, any of the Claims released hereunder, then the undersigned agrees
to pay to Releasees, and each of them, in addition to any other damages caused to Releasees thereby, all attorney’s fees
incurred by Releasees in defending or otherwise responding to said suit or Claim.

 

The
undersigned further understands and agrees that neither the payment of any sum of money nor the execution of this Release shall
constitute or be construed as an admission of any liability whatsoever by the Releasees, or any of them, who have consistently
taken the position that they have no liability whatsoever to the undersigned.

 

IN
WITNESS WHEREOF, the undersigned has executed this Release this __ day of __________, _____.

 

	 	David Ritchie

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