Document:

Exhibit

10.5

 

WESTERN SIERRA NATIONAL BANK

 

SALARY CONTINUATION AGREEMENT

 

This Agreement is amended

and restated this 22nd day of August, 2002, by and between Western

Sierra National Bank, a national banking association located in Cameron Park,

California (the “Company”) and Gary D. Gall (the “Executive”).

 

RECITALS

 

WHEREAS, the Executive is

in the employ of the Company, serving as its Vice Chairman;

 

WHEREAS, the experience,

knowledge of the affairs of the Company, and reputation and contacts in the

industry of the Executive are so valuable that assurance of the Executive’s

continued service is essential for the future growth and profits of the

Company, and it is in the best interest of the Company to arrange terms of

continued employment for the Executive so as to reasonably assure the

Executive’s remaining in the Company’s employment during the Executive’s

lifetime or until the age of retirement;

 

WHEREAS, the Executive

and the Company are currently parties to an Executive Salary Continuation

Agreement dated June 15, 2001; and

 

WHEREAS, the Executive

and the Company desire to enter into this Salary Continuation Agreement, the

terms and conditions of which shall supersede those set forth in the Executive

Salary Continuation Agreement dated June 15, 2001;

 

NOW, THEREFORE, in

consideration of the services to be performed in the future, as well as the

mutual promises and covenants herein contained, it is agreed as follows:

 

ARTICLE

1.

DEFINITIONS

 

1.1                               Definitions.  Whenever used in this Agreement, the following words and phrases

shall have the meaning specified:

 

1.1.1.                     “Applicable Percentage” means that

percentage listed on Schedule “A” attached hereto which is adjacent to the

number of complete years (with a “year” being the performance of personal

services for or on behalf of the Company as an employee for a period of 365

days) which have elapsed starting from the Effective Date of this Agreement and

ending on the date the Executive’s employment is terminated for purposes of

this Agreement.  In the event that the

Executive’s employment with the Company is terminated other than by reason of

death, disability, retirement or voluntary termination on the part of the

Executive, Executive shall be deemed for purposes of determining the number of

complete years to have completed a year of service in its entirety for any

partial year of service after the last anniversary date of the Effective Date

during which the Executive’s employment is terminated.

 

1.1.2.                     “Change of Control” means (i) a tender

offer made and consummated for the ownership of 50% or more of the outstanding

voting securities of Western Sierra Bancorp, (the “Bancorp”); (ii) a merger or

consolidation of the Bancorp with another corporation and as a result of such

merger or consolidation less than 50% of the outstanding voting securities of

the surviving or resulting corporation are owned by shareholders of the

Bancorp, other than affiliates (within the meaning of the Securities Exchange

Act of 1934) of any party to such merger or consolidation, as such shareholders

shall have existed immediately prior to such merger or consolidation,

 

 

(iii) a sale of

substantially all of the Bancorp’s assets to another bank or corporation which

is not a wholly owned subsidiary; or (iv) an acquisition of the Bancorp by a

person, within the meaning of Section 3(a)(9) or of Section 13(d)(3) (as in

effect on the date hereof) of the Securities Exchange Act of 1934, of 50% or

more of the outstanding voting securities of the Bancorp (whether directly,

indirectly, beneficially or of record). 

For purposes of this agreement, ownership of voting securities shall

take into account and shall include ownership as determined by applying the

provisions of Rule 13d-3(d)(1)(i) (as in effect on the date hereof) pursuant to

the Securities Exchange Act of 1934.

 

1.1.3.                     “Code” means the Internal Revenue Code of

1986, as amended.

 

1.1.4.                     “Disability” means the Executive suffering

a sickness, accident or injury which, in the judgment of a physician

satisfactory of the Company, prevents the Executive from performing

substantially all of the Executive’s normal duties for the Company.  As a condition to any benefits, the Company

may require the Executive to submit to such physical or mental evaluations and

tests as the Company’s Board of Directors deems appropriate.

 

1.1.5.                     “Early Termination” means the Termination

of Employment before Normal Retirement Age for reasons other than death,

Disability, Termination for Cause or following a Change of Control.

 

1.1.6.                     “Effective Date” means January 1, 1995.

 

1.1.7.                     “Early Termination Date” means the month,

day and year in which Early Termination occurs.

 

1.1.8.                     “Normal Retirement Age” means the

Executive’s 65th birthday.

 

1.1.9.                     “Normal Retirement Date” means the later

of the Normal Retirement Age or Termination of Employment.

 

1.1.10.     “Plan

Year” means a twelve-month period commencing on January 1 and ending

on December 31 of each year.

 

1.1.11.     “Termination

for Cause”.  See Section 5.3.

 

1.1.12.     “Termination

of Employment” means that the Executive ceases to be employed by the

Company for any reason whatsoever other than by reason of a leave of absence

which is approved by the Company.

 

ARTICLE

2.

LIFETIME

BENEFITS

 

2.1.                            Normal Retirement Benefit.  Upon Termination of Employment on or after

the Normal Retirement Age for reasons other than death, the Company shall pay

to the Executive the benefit described in this Section 2.1 in lieu of any other

benefit under this Agreement.

 

2.1.1.                     Amount of

Benefit.  The annual benefit under

this Section 2.1 is $165,000.  The Board

of Directors may in its sole and absolute discretion unilaterally increase the

amount of the annual benefit amount at the end of each Plan Year from the date

of this Agreement to the Executive’s Normal Retirement Date.

 

2.1.2.                     Payment of

Benefit.  The Company shall pay the

annual benefit to the Executive in 180 equal monthly installments payable on

the first day of each month commencing with the month following the Executive’s

Normal Retirement Date and continuing for 179 additional months.

 

2.1.3.                     Benefit

Increases.  Commencing on the first

anniversary of the first benefit payment, and continuing on each subsequent

anniversary, the Company’s Board of Directors, in its sole discretion, may

increase the benefit.

 

2

 

2.2.                            Early Termination Benefit.  Upon Early Termination, the Company shall

pay to the Executive the benefit described in this Section 2.2 in lieu of any

other benefit under this Agreement.

 

2.2.1.                     Amount of

Benefit.  The benefit under this

Section 2.2 is the Annual Benefit set forth in Section 2.1.1. of this Agreement

subject to any increases to said benefit as provided for therein, multiplied by

the applicable percentage as defined in Section 1.1.1. of this Agreement.

 

2.2.2.                     Payment of

Benefit.  The Company shall pay the

annual benefit amount to the Executive in 180 equal monthly installments

payable on the first day of each month commencing with the month following the

Executive’s Normal Retirement Date and continuing for 179 additional months.

 

2.2.3.                     Benefit

Increases.  Benefit payments may be

increased as provided in Section 2.1.3.

 

2.3.                            Disability Benefit.  If the Executive terminates employment due

to Disability prior to Normal Retirement Age, the Company shall pay to the

Executive the benefit described in this Section 2.3 in lieu of any other

benefit under this Agreement.

 

2.3.1.                     Amount of

Benefit.  The benefit under this

Section 2.3 is the Annual Benefit set forth in Section 2.1.1 of this Agreement

subject to any increases to said benefit as provided for therein, multiplied by

the applicable percentage as defined in Section 1.1.1. of this Agreement.

 

2.3.2.                     Payment of

Benefit.  The Company shall pay the

annual benefit amount to the Executive in 180 equal monthly installments

payable on the first day of each month commencing with the month following the

Termination of Employment and continuing for 179 additional months.

 

2.3.3.                     Benefit

Increases.  Benefit payments may be

increased as provided in Section 2.1.3.

 

2.4.                            Change of Control Benefit.  Upon a Change of Control, the Company shall

pay to the Executive the benefit described in this Section 2.4 in lieu of any

other benefit under this Agreement.

 

In the event there is a

Change of Control, the Executive shall be entitled to be paid in cash in a lump

sum on the date of the consummation of the Change of Control, the present value

of the aggregate amount of the Annual Benefit specified in Section 2.1.1, with

the Applicable Percentage being 100%, being paid for a period of fifteen (15) years

in one hundred eighty (180) monthly installments beginning on the first day of

the month following the consummation of the Change in Control.  The present value of the amount shall be

determined using the long term monthly Applicable Federal Rate at the time of

the consummation of the Change of Control.

 

ARTICLE

3.

DEATH

BENEFITS

 

3.1.                            Death During Active Services.  If the Executive dies while in the active

service of the Company, the Company and Executive agree that the Company shall

not make any benefit payments pursuant to this Agreement and this Agreement

shall terminate.

 

3.2.                            Death During Benefit Period.  If the Executive dies after the benefit

payments have commenced under this Agreement but before receiving all such

payments, the Company and Executive agree that following the death of Executive

the Company shall not make any additional benefit payments pursuant to this

Agreement and this Agreement shall terminate.

 

3.3.                            Death Following Termination of Employment But Before

Benefits Commence.  If

the Executive is entitled to benefits under this Agreement, but dies prior to

receiving said benefits, the Company and Executive agree that the Company shall

not make any benefit payments pursuant to this Agreement and this Agreement

shall terminate.

 

3

 

ARTICLE

4.

BENEFICIARIES

 

4.1.                            Beneficiary Designations.  The Executive shall designate a beneficiary

by filing a written designation with the Company, in the form of Exhibit “C”,

attached hereto and incorporated herein by this reference.  The Executive may revoke or modify the

designation at any time by filing a new designation.  However, designations will only be effective if signed by the

Executive and accepted by the Company during the Executive’s lifetime.  The Executive’s beneficiary designation

shall be deemed automatically revoked if the beneficiary predeceases the

Executive, or if the Executive names a spouse as beneficiary and the marriage

is subsequently dissolved.  If the

Executive dies without a valid beneficiary designation, all payments shall be

made to the Executive’s estate.

 

4.2.                            Facility of Payment.  If a benefit is payable to a minor, to a

person declared incapacitated, or to a person incapable of handling the

disposition of his or her property, the Company may pay such benefit to the

guardian, legal representative or person having the care or custody of such

minor, incapacitated person or incapable person.  The Company may require proof of incapacity, minority or

guardianship as it may deem appropriate prior to distribution of the

benefit.  Such distribution shall

completely discharge the Company from all liability with respect to such

benefit.

 

ARTICLE

5.

GENERAL

LIMITATIONS

 

5.1.                            Covenant Not To Compete.  Notwithstanding any provision of this Agreement  to the contrary, the benefits payable to the

Executive pursuant to this Agreement are conditioned upon the Executive not

working as an employee, independent contractor, or consultant of or for a

branch of a financial institution located within a thirty (30) mile radius of

the  headquarters of the Company, for a

period of one (1) year after Executive terminates employment with the

Company.  The parties to this Agreement

hereby agree that should such headquarters be relocated this provision may be renegotiated.  In the event the Executive violates the

covenant not to compete provided for herein, the Company shall immediately

terminate any and all remaining payments for benefits due to Executive or

Executive’s beneficiaries pursuant to this Agreement, and the Company has no

liability to Executive or Executive’s beneficiaries for any benefits or

payments pursuant to this Agreement, except in the event of a Change in

Control, in which case the covenant not to compete provided for herein shall be

of no force and effect.

 

5.2.                            Excess Parachute Payment.  Notwithstanding any provision of this

Agreement to the contrary, the Company shall not pay any benefit under this

Agreement to the extent the benefit would be an excess parachute payment under

Section 280G of the Code.  In complying

with this provision, the Company hereby agrees to take all steps reasonably

necessary to maximize the benefit available to the Executive.

 

5.3.                            Termination for Cause.  Notwithstanding any provision of this

Agreement to the contrary, the Company shall not pay any benefit under this

Agreement if the Company terminates the Executive’s employment for:

 

5.3.1.                     any act of

embezzlement, fraud, breach of fiduciary duty or dishonesty;

 

5.3.2.                     any

conviction of a felony involving moral turpitude;

 

5.3.3.                     deliberate or

repeated disregard of the policies and rules of Company as adopted by Company’s

Board of Director’s;

 

5.3.4.                     unauthorized

use or disclosure of any of the trade secrets or confidential information of

Company;

 

5.3.5.                     competition with

Company, inducement of any customer of the Company to breach a contract with

the Company, or inducement of any principal for whom the Company acts as agent

to terminate such agency relationship;

 

5.3.6.                     gross

negligence adversely impacting the Company; or

 

4

 

5.3.7.                     willful

breach of this Agreement or any other willful misconduct.

 

ARTICLE

6.

CLAIMS

AND REVIEW PROCEDURES

 

6.1.                            Claims Procedure.  The Company shall notify any person or

entity that makes a claim against the Agreement (the “Claimant”) in writing,

within thirty (30) days of Claimant’s written application for benefits, of his

or her eligibility or ineligibility for benefits under the Agreement.  If the Company determines that the Claimant

is not eligible for benefits or full benefits, the notice shall set forth (1)

the specific reasons for such denial; (2) a specific reference to the

provisions of the Agreement on which the denial is based;  (3) a description of any additional

information or material necessary for the Claimant to perfect his or her claim,

and a description of why it is needed; and (4) an explanation of the

Agreement’s claims review procedure and other appropriate information as to the

steps to be taken if the  Claimant

wishes to have the claim reviewed.  If

the Company determines that there are special circumstances requiring

additional time to make a decision, the Company shall notify the Claimant of

the special circumstances and the date by which a decision is expected to be

made, and may extend the time for up to an additional thirty-day period.

 

6.2.                            Review Procedure.  If the Claimant is determined by the Company

not to be eligible for benefits, or if the Claimant believes that he or she is

entitled to greater or different benefits, the Claimant shall have the

opportunity to have such claim reviewed by the Company by filing a petition for

review with the Company within thirty (30) days after receipt of the notice

issued by the Company.  Said petition

shall state the specific reasons which the Claimant believes entitle him or her

to benefits or to greater or different benefits.  Within thirty (30) days after receipt by the Company of the

petition, the Company shall afford the Claimant (and counsel, if any) and

opportunity to present his or her position to the Company orally or in writing,

and the Claimant (or counsel) shall have the right to view the pertinent

documents.  The Company shall notify the

Claimant of its decision in writing within the thirty-day period, stating

specifically the basis of its decision, written in a manner calculated to be

understood by the Claimant and the specific provisions of the Agreement on

which the decision is based.  If,

because of the need for a hearing, the thirty-day period  is not sufficient, the decision may be

deferred for up to another thirty-day period at the election of the Company,

but notice of this deferral shall be given to the Claimant.

 

ARTICLE

7.

GENERAL

PROVISIONS

 

7.1                               Binding Effect.  This Agreement shall bind the Executive and

the Company, and their beneficiaries, survivors, executors, successors,

administrators and transferees.

 

7.2                               Termination.  This Agreement may be amended or terminated only by a written

agreement signed by the Company and the Executive.

 

7.3                               No Guarantee of Employment.  This Agreement is not an employment policy

or contract.  It does not give the

Executive the right to remain an employee of the Company, nor does it interfere

with the Company’s right to discharge the Executive.  It also does not require the Executive to remain an employee nor

interfere with the Executive’s right to terminate employment at any time.

 

7.4                               Non-Transferability.  Benefits under this Agreement cannot be

sold, transferred, assigned, pledged, attached or encumbered in any manner.

 

7.5                               Tax Withholding.  The Company shall withhold any taxes that

are required to be withheld from the benefits provided under this Agreement.

 

7.6                               Applicable Law.  The Agreement and all rights hereunder shall

be governed by the laws of the State of California, except to the extent

preempted by the laws of the United States of America.

 

7.7                               Unfunded Arrangement.  The Executive and beneficiary are general

unsecured creditors of the Company for the payment of benefits under this

Agreement.  The benefits represent the

mere promise by the

 

5

 

Company to pay such

benefits.  The rights to benefits are

not subject in any manner to anticipation, alienation, sale, transfer,

assignment, pledge, encumbrance, attachment, or garnishment by creditors.  Any insurance on the Executive’s life is a

general asset of the Company to which the Executive and beneficiary have no

preferred or secured claim.

 

7.8                               Recovery of Estate Taxes.  If the Executive’s gross estate for federal

estate tax purposes includes any amount determined by reference to and on

account of this Agreement, and if the beneficiary is other than the Executive’s

estate, then the Executive’s estate shall be entitled to recover from the

beneficiary receiving such benefit under the terms of the Agreement, an amount

by which the total estate tax due by the Executive’s estate, exceeds the total

estate tax which would have been payable if the value of such benefit had not

been included in the Executive’s gross estate. 

If there is more than one person receiving such benefit, the right of

recovery shall be against each such person. 

In the event the beneficiary has a liability hereunder, the beneficiary

may petition the Company for a lump sum payment in an amount not to exceed the

beneficiary’s liability hereunder.

 

7.9                               Entire Agreement.  This Agreement constitutes the entire

agreement between the Company and the Executive as to the subject matter

hereof.  No rights are granted to the

Executive by virtue of this Agreement other than those specifically set forth

herein.

 

7.10                        Administration.  The Company shall have powers which are

necessary to administer this Agreement, including but not limited to:

 

7.10.1.  Establishing and revising the method of

accounting for the Agreement;

 

7.10.2.  Maintaining a record of benefit payments;

and

 

7.10.3  Establishing rules and prescribing any forms

necessary or desirable to administer the Agreement.

 

7.11.                     Named Fiduciary.  For purposes of the Employee Retirement

Income Security Act of 1974, if applicable, the Company shall, be the named

fiduciary and plan administrator under the Agreement.  The named fiduciary may delegate to others certain aspects of the

management and operation responsibilities of the plan including the employment

of advisors and the delegation of ministerial duties to qualified individuals.

 

IN WITNESS WHEREOF, the

Employer and a duly authorized Company officer have signed this Agreement.

 

	

   

  	

   

  	

  GARY

  D. GALL

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  Dated:

  	

  11/18/02

  	

   

  	

   

  	

  /s/ Gary D. Gall

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  WESTERN

  SIERRA NATIONAL BANK

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  Dated:

  	

  11/18/02

  	

   

  	

  By

  	

  /s/ Charles W. Bacchi

  	

   

  
	

   

  	

   

  	

  Charles W. Bacchi,

  Chairman

  
								

 

6

 

SCHEDULE

A

 

WESTERN

SIERRA NATIONAL BANK

SALARY

CONTINUATION AGREEMENT

 

Gary

D. Gall

 

	

  NUMBER OF COMPLETE

  YEARS WHICH HAVE ELAPSED

  	

   

  	

  APPLICABLE

  PERCENTAGE

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  1

  	

   

  	

  5.00

  	

  %

  
	

  2

  	

   

  	

  10.00

  	

  %

  
	

  3

  	

   

  	

  15.00

  	

  %

  
	

  4

  	

   

  	

  20.00

  	

  %

  
	

  5

  	

   

  	

  25.00

  	

  %

  
	

  6

  	

   

  	

  30.00

  	

  %

  
	

  7

  	

   

  	

  35.00

  	

  %

  
	

  8

  	

   

  	

  41.50

  	

  %

  
	

  9

  	

   

  	

  48.00

  	

  %

  
	

  10

  	

   

  	

  54.50

  	

  %

  
	

  11

  	

   

  	

  61.00

  	

  %

  
	

  12

  	

   

  	

  67.50

  	

  %

  
	

  13

  	

   

  	

  74.00

  	

  %

  
	

  14

  	

   

  	

  80.50

  	

  %

  
	

  15

  	

   

  	

  87.00

  	

  %

  
	

  16

  	

   

  	

  93.50

  	

  %

  
	

  17 or more years

  	

   

  	

  100.00

  	

  %

  

 

7

 

BENEFICIARY DESIGNATION

 

WESTERN

SIERRA NATIONAL BANK

SALARY

CONTINUATION AGREEMENT

 

Gary

D. Gall

 

	

  TO:

  	

  The

  Administrator of Gary D. Gall

  
	

   

  	

  Executive

  Salary Continuation Agreement

  

 

Pursuant to the

provisions of my Executive Salary Continuation Agreement with Gary D. Gall

permitting the designation of a beneficiary or beneficiaries by a participant,

I hereby designate the following persons and entities as primary and secondary

beneficiaries of any benefit under said Agreement payable by reason of my

death:

 

PRIMARY BENEFICIARY:

 

(Beneficiary

named)

 

SECONDARY BENEFICIARY:

(Secondary

beneficiary named)

 

THE RIGHT TO REVOKE OR

CHANGE ANY BENEFICIARY DESIGNATION IS HEREBY RESERVED.

 

The Administrator shall

pay all sums payable under the Agreement by reason of my death to the Primary

Beneficiary, if he or she survives me, and if no Primary Beneficiary shall

survive me then to the Secondary Beneficiary, and if no named beneficiary

survives me, the Administrator shall pay all amounts in accordance with the

terms of my Executive Salary Continuation Agreement.  In the event that a named beneficiary survives me and dies prior

to receiving the entire benefit payable under said Agreement then and in that

event, the remaining unpaid benefit payable according to the terms of my

Executive Salary Continuation Agreement shall be payable to the personal

representatives of the estate of said beneficiary who survived me but died

prior to receiving the total benefit provided by my Executive Salary

Continuation Agreement.

 

	

   

  	

   

  	

  EXECUTIVE

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Dated:

  	

  11/18/02

  	

   

  	

    /s/ Gary D. Gall

  	

   

  
	

   

  	

   

  	

    Gary D. Gall

  	

   

  
					

 

8Exhibit 10.16

 

EXECUTIVE
SALARY CONTINUATION AGREEMENT

 

This Agreement is amended and restated this first day of February,
2002, by and between Western Sierra National Bank, a national banking
association located in Cameron Park, California (the “Employer”) and Kirk N.
Dowdell (the “Executive”).

 

RECITALS

 

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

 

WHEREAS, the Executive’s experience and knowledge of the affairs of the
Employer and the banking industry are extensive and valuable;

 

WHEREAS, it is deemed to be in the best interests of the Employer to
provide the Executive with certain salary continuation benefits, on the terms
and conditions set forth herein, in order to reasonably induce the Executive to
remain in the Employer’s employment; and

 

WHEREAS, the Executive and the Employer wish to specify in writing the
terms and conditions upon which this additional compensatory incentive will be
provided to the Executive, or to the Executive’s spouse or the Executive’s
designated beneficiaries, as the case may be;

 

WHEREAS, the Executive and the Employer are currently parties to an
Executive Salary Continuation Agreement dated January 1, 2000; and

 

WHEREAS, the Executive and the Employer desire to enter into this
Salary Continuation Agreement, the terms and conditions of which shall
supersede those set forth in the Executive Salary Continuation Agreement dated
January 1, 2000;

 

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

 

AGREEMENT

 

1.                                      Terms and Definitions.

 

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

 

 

1.2.                            Annual Benefit.  The term “Annual Benefit” shall mean an
annual sum of seventy-five thousand dollars ($75,000) multiplied by the
Applicable Percentage (defined below) and then reduced to the extent required:
(i) under the other provisions of this Agreement; (ii) by reason of the lawful
order of any regulatory agency or body having jurisdiction over the Employer;
and (iii) in order for the Employer to properly comply with any and all
applicable state and federal laws, including, but not limited to, income,
employment and disability income tax laws (e.g., FICA, FUTA, SDI).

 

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

 

1.4.                            Beneficiary.  The term “beneficiary” or “designated beneficiary” shall mean the
person or persons whom the Executive shall designate in a valid Beneficiary
Designation, a copy of which is attached hereto as Exhibit “B”, to receive the
benefits provided hereunder.  A
Beneficiary Designation shall be valid only if it is in the form attached
hereto and made a part hereof and is received by the Administrator prior to the
Executive’s death.

 

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

 

1.6.                            Disability/Disabled.  The term “Disability” or “Disabled” shall
have the same meaning given such term in the principal disability insurance
policy covering the Executive, which is incorporated herein by reference.  In the event the Executive is not covered by
a disability policy containing a definition of “Disability” or “Disabled,”
these terms shall mean an illness or incapacity which, having continued for a
period of one hundred and eighty (180) consecutive days, prevents the Executive
from adequately performing the Executive’s regular employment duties.  The determination of whether the Executive
is Disabled shall be made by an independent physician selected by mutual
agreement of the parties.

 

1.7.                            Effective Date.  The term “Effective Date” shall be January
1, 2000.

 

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

 

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

 

1.10.                     Retirement.  The term “Retirement” or “Retires” shall refer to the date on
which the Executive attains the age of at least sixty five (65) and
acknowledges in writing to the Employer to be

 

2

 

the last day he will provide any significant
personal services, whether as an employee, director or independent consultant
or contractor, to the Employer.  For
purposes of this Agreement, the phrase “significant personal services” shall
mean more than ten (10) hours of personal services rendered to one or more
individuals or entities in any thirty (30) day period.

 

1.11  Sale of Business.  The term “Sale of Business” shall mean any
(i) merger, consolidation or reorganization of the Employer’s parent (“Parent”)
in which (A) the Parent does not survive or (B) the Parent survives with a
resulting change in beneficial ownership of the Parent of more than 50% of the
voting shares of the Parent, (ii) sale of more than 50% of the beneficial
ownership of the voting shares of the Parent to any person or group of persons
acting in concert, or (iii) transfer or sale of more than 50% of the total
market value of the assets of the Parent as reflected in the most recent
published balance sheet of the Parent.

 

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

 

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

 

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

 

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

 

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

 

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

 

2.                                      Scope, Purpose and Effect.

 

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

 

3

 

shall stand separate and apart and shall have
no effect upon, nor be affected by, the terms and provisions of said employment
agreement.

 

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

 

3.                                      Payments Upon or After Retirement.

 

3.1.                            Payments Upon Retirement.  If the Executive shall remain in the
continuous and active employment of the Employer until Retirement, the
Executive shall be entitled to be paid the Annual Benefit, with the Applicable
Percent equal to 100% for a period of fifteen (15) years, in one hundred eighty
(180) equal monthly installments, with each installment to be paid on the first
day of each month, beginning with the month following the month in which the
Executive Retires or upon such later date as may be mutually agreed upon in
writing by the Executive and the Employer in advance of said Retirement Date.

 

3.2.                            Payments in the Event of Death After Retirement.  The Employer and Executive agree that if the
Executive Retires, but shall die before receiving all of the one hundred eighty
(180) monthly payments described in paragraph 3.1 above, the Employer after the
death of Executive shall not make any additional benefit payments pursuant to
this Agreement and this Agreement shall terminate.

 

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

 

4.1.                            Payments in the Event of Death Prior to Retirement.  In the event the Executive should die while
actively employed by the Employer at any time after the Effective Date of this
Agreement, but prior to Retirement,  the
Executive and Employer agree that Employer shall not make any benefits payments
pursuant to this Agreement and that this Agreement shall terminate.

 

4.2.                            Payments in the Event of Disability Prior to
Retirement.  In the event
the Executive becomes Disabled while actively employed by the Employer at any
time after the effective date of this Agreement but prior to Retirement, the
Executive shall: (i) continue to be treated during such period of Disability as
being gainfully employed but not actively employed by the Employer but shall
not add applicable years of service for the purpose of determining the Annual
Benefit; and (ii) be entitled to be paid the Annual Benefit, with the
Applicable Percentage as set forth in Schedule A and as determined by the
applicable years of service at the time of disability, for fifteen (15) years
in one hundred eighty (180) equal monthly installments, with each installment
to be paid on the first day of each month, beginning with the month following
the earlier of (1) the month in which the Executive attains sixty-five (65)
years of age; or (2) the date upon which the Executive is no longer entitled to
receive Disability benefits under the Executive’s principal Disability
insurance policy and does not, at such time, return to and thereafter fulfill
the responsibilities associated with the employment position held with the
Employer prior to becoming Disabled by reason of such Disability
continuing.  The Employer agrees that if
the Executive shall die before receiving all of the one hundred eighty (180)
monthly payments described in this paragraph 4.2, the Employer will make the
remaining monthly payments to Executive’s designated beneficiary.  If a valid beneficiary designation is not in
effect, then

 

4

 

the remaining payments due to Executive shall
be paid to Executive’s Surviving Spouse. 
If the Executive leaves no Surviving Spouse, the remaining amounts due
to Executive shall be paid to the duly qualified personal representative,
executor, or administrator of the Executive’s estate.

 

If the Executive dies after becoming Disabled and prior to being paid
benefits pursuant to the prior paragraph, the Employer will pay to Executive's
designated beneficiary the Annual Benefit, with the Applicable Percentage as
set forth in Schedule A and as determined by the applicable years of service at
the time of disability, for a period of (15) years in equal monthly
installments, with each installment to be paid on the first day of each month,
beginning with the month following the date of Executive's death.  If a valid Beneficiary Designation is not in
place, then the payments due to the Executive under this paragraph shall be
paid to the Executive’s Surviving Spouse. 
If Executive leaves no Surviving Spouse, the payments due to Executive
under this paragraph shall be paid to the duly qualified personal
representative, executor, or administrator of the Executive's estate.

 

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

 

As indicated in Paragraph 2 above, the Employer reserves the right to
terminate the Executive’s employment, with or without cause but subject to any
written employment agreement which may then exist, at any time prior to the
Executive’s Retirement.  In the event
that the employment of the Executive shall be terminated for any reason,
including voluntary termination by the Executive, but other than by reason of
(i) Disability except as provided in Paragraph 4.2, (ii) death, (iii)
Termination for Cause, (iv) Retirement or (v) termination in a Sale of
Business, the Executive or his legal representative shall be entitled to be
paid the Annual Benefit, with the Applicable Percentage as set forth in
Schedule A and as determined by the applicable years of service at the time of
termination of employment with the Employer, for a period of fifteen (15) years
in one hundred eighty (180) equal monthly installments, with each installment
to be paid on the first day of each month, beginning with the month following
the month in which the Executive terminates employment and attains sixty-five
(65) years of age, provided however in the event the Executive dies before
receiving the all of the one hundred eighty (180) payments, the Employer agrees
to make the payments, undiminished and on the same schedule as if the Executive
had not died, to the Executive’s designated beneficiary.  In the event Executive is entitled to
benefit payments pursuant to this Paragraph 5 and dies before sixty-five (65),
the Employer agrees to make such payments beginning with the month following
the month of the Executive’s death, undiminished and on the same schedule as if
the Executive had not died, to the Executive’s designated beneficiary.  If a valid Beneficiary Designation is not in
effect, then the remaining amounts due to the Executive under the term of this
Agreement shall be paid to the Executive’s Surviving Spouse.  If the Executive leaves no Surviving Spouse,
the remaining amounts due to the Executive under the terms of this Agreement
shall be paid to the duly qualified personal representative, executor or
administrator of the Executive’s estate. 
Notwithstanding anything to the contrary, no benefit payments provided
in this Paragraph 5 shall be made to Executive, Executive’s designated
beneficiary, Surviving Spouse or Executive’s estate if the Executive is
entitled to benefits provided by any other Paragraph of this Agreement.

 

5

 

6.                                      Termination for Cause.

 

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

 

7.                                      Termination in a Sale of Business.

 

In the event there is a Sale of Business, the Executive shall be
entitled to be paid in cash in a lump sum on the date of the consummation of
the Sale of Business, the present value of the aggregate amount of the Annual
Benefit, with the Applicable Percentage being 100%, being paid for a period of
fifteen (15) years in one hundred eighty (180) monthly installments beginning
on the first day of the month following the consummation of the Sale of
Business.  The present value of the
amount shall be determined using the long term monthly Applicable Federal Rate
at the time of the consummation of the Sale of Business.

 

Notwithstanding the prior paragraph, no payment shall be made to
Executive pursuant to this Agreement to the extent that such payment when
aggregated with all other payments considered for purposes of calculating a
parachute payment results in an excess parachute payment as defined under
Section 280G of the Code.

 

If the Internal Revenue Service or any other tax authority makes any
claim, demand or assessment in any form based directly or indirectly, in whole
or in part, on the allegation that any payment under this Agreement and/or any
other payment by Employer to or for the benefit of the Executive at any time
constitutes a “parachute payment” under Section 280G of the Code or any similar
or successor provision of federal or state law, Executive agrees that Employer,
its successors and assigns shall have no obligation, whether for defense,
indemnification, reimbursement or otherwise, with respect to such claim, demand
or assessment.

 

Notwithstanding anything to the contrary, no benefit payments provided
in this Paragraph 7 shall be made to Executive, Executive’s designated
beneficiary, Surviving Spouse or Executive’s estate if the Executive is
entitled to benefits provided by any other Paragraph of this Agreement.

 

8.                                      Payment of Benefits Subject to Executive Not Competing
with Employer or Its Subsidiaries.

 

Notwithstanding anything to the contrary, the benefits payable to
Executive pursuant to this Agreement are conditioned upon the Executive not
working as an employee, independent contractor or consultant of or for a
financial institution located within a 35 mile radius of the head office of
Employer for a period of three years after Executive terminates employment with
Employer.  In the event Executive
breaches such condition, Employer shall immediately terminate any and all
remaining payments for benefits due Executive or Executive's beneficiaries
pursuant to this Agreement, and Employer shall have no liability to Executive
or Executive's beneficiaries for any benefits or payments pursuant to this
Agreement. 
Notwithstanding the foregoing, in the event of a Sale of
Business, this paragraph shall be of no force or effect.

 

6

 

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

 

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

 

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

 

10.                               Claims Procedure.

 

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

 

11.                               Status of an Unsecured General Creditor.

 

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

 

7

 

12.                               Covenant Not to Interfere.

 

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

 

13.                               Miscellaneous.

 

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

 

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

 

13.3.                     Attorneys’ Fees.  In the event of any arbitration or
litigation concerning any controversy, claim or dispute between the parties
hereto, arising out of or relating to this Agreement or the breach hereof, or
the interpretation hereof, the prevailing party shall be entitled to recover from
the losing party reasonable expenses, attorneys’ fees and costs incurred in
connection therewith or in the enforcement or collection of any judgment or
award rendered therein.  The “prevailing
party” means the party determined by the arbitrator(s) or court, as the case
may be, to have most nearly

 

8

 

prevailed, even if such party did not prevail
in all matters, not necessarily the one in whose favor a judgment is rendered.

 

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

 

If to the Employer:

 

Western Sierra National Bank

4080 Plaza Goldorado Circle

Cameron Park, California 95682

Attention: Chairman of the Board

 

If to the
Executive:

 

Mr. Kirk N. Dowdell

(Home address)

Sacramento, California

 

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

 

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

 

13.7.                     Nonwaiver.  The failure of either party to enforce at any time or for any
period of time any one or more of the terms or conditions of this Agreement shall
not be a waiver of such

 

9

 

term(s) or condition(s) or of that party’s
right thereafter to enforce each and every term and condition of this
Agreement.

 

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

 

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

 

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

 

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

 

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

 

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

 

10

 

14.                               Right of the Employer to Pay a Lump Sum.

 

Unless expressly provided for herein, the Employer shall at its sole
discretion have the right to pay in a lump sum the then present value (using
the long term monthly Applicable Federal Rate at such time) of all payments
vested and due the Executive or the Executive’s beneficiary pursuant to this
Agreement.

 

IN WITNESS WHEREOF, the Employer and the Executive have executed this
Agreement in the City of Cameron Park, El Dorado County, California.

 

	
  Western Sierra National Bank

  	
  Kirk N. Dowdell

  
	
  “Employer”

  	
  “Executive”

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Charles Bacchi

  	
   

  	
  /s/ Kirk N. Dowdell

  	
   

  
	
  Charles Bacchi

  	
   

  	
  Kirk N. Dowdell

  	
   

  
	
  Chairman

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

11

 

SCHEDULE
A

 

	
  NUMBER OF COMPLETE

  YEARS OF SERVICE

  	
   

  	
  APPLICABLE

  PERCENTAGE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  4

  	
  %

  
	
  2

  	
   

  	
  8

  	
  %

  
	
  3

  	
   

  	
  12

  	
  %

  
	
  4

  	
   

  	
  16

  	
  %

  
	
  5

  	
   

  	
  20

  	
  %

  
	
  6

  	
   

  	
  24

  	
  %

  
	
  7

  	
   

  	
  28

  	
  %

  
	
  8

  	
   

  	
  32

  	
  %

  
	
  9

  	
   

  	
  36

  	
  %

  
	
  10

  	
   

  	
  40

  	
  %

  
	
  11

  	
   

  	
  44

  	
  %

  
	
  12

  	
   

  	
  48

  	
  %

  
	
  13

  	
   

  	
  52

  	
  %

  
	
  14

  	
   

  	
  56

  	
  %

  
	
  15

  	
   

  	
  60

  	
  %

  
	
  16

  	
   

  	
  64

  	
  %

  
	
  17

  	
   

  	
  68

  	
  %

  
	
  18

  	
   

  	
  72

  	
  %

  
	
  19

  	
   

  	
  76

  	
  %

  
	
  20

  	
   

  	
  80

  	
  %

  
	
  21

  	
   

  	
  84

  	
  %

  
	
  22

  	
   

  	
  88

  	
  %

  
	
  23

  	
   

  	
  92

  	
  %

  
	
  24

  	
   

  	
  96

  	
  %

  
	
  25 or more

  	
   

  	
  100

  	
  %

  

 

12

 

SCHEDULE
B

BENEFICIARY
DESIGNATION

 

	
  TO:

  	
  The Administrator of

  
	
   

  	
  Western Sierra National Bank

  
	
   

  	
  Executive Salary Continuation Agreement

  

 

Pursuant to the provisions of my Executive Salary Continuation
Agreement with Western Sierra National Bank permitting the designation of a
beneficiary or beneficiaries by a participant, I hereby designate the following
persons and entities as primary and secondary beneficiaries of any benefit
under said Agreement payable by reason of my death:

 

	
  NOTE:

  	
  To name a trust as beneficiary, please
  provide the name of the trustee and the exact date of the trust agreement.

  

 

In the event the primary beneficiary is not
the spouse of the Executive, the spouse of the Executive will need to sign the
Spousal Consent below and such signature must be notarized.

 

Primary Beneficiary:

 

	
  named beneficiary

  	
   

  	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
  Address

  	
   

  	
  Relationship

  

 

Secondary (Contingent) Beneficiary:

 

	
  Named Secondary Beneficiary

  	
   

  	
   

  
	
  Name

  	
   

  	
  Address

  	
   

  	
  Relationship

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
  Address

  	
   

  	
  Relationship

  

 

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

 

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

 

	
   

  	
  Kirk N. Dowdell

  
	
   

  	
  “Executive”

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
  12/31/02

  	
   

  	
  /s/ Kirk N. Dowdell

  	
   

  
					

 

13

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