Document:

Exhibit 10.2

                                      LEASE

      1. Parties. This Lease, dated, for reference purposes only, January 17,
1995, is made by and between CAL-WESTERN FARMING COMPANY, herein called
"Lessor", and BANK OF VISALIA (`PROPOSED"), herein called "Lessee".

      2. Premises.

            2.01 Lessor hereby leases to Lessee and Lessee leases from Lessor
for the term, and at the rental, and upon all the terms, covenants and
conditions set forth herein those certain premises consisting of a building
containing approximately 8,700 square feet, the parking area surrounding the
building, all of which is commonly known as 200 South Court Street, Visalia,
California, such space hereinafter referred to as the "premises," and more
particularly described as follows:

            Lots 1, 2, 3, and 4 of Block 40 in the City of Visalia, County of
            Tulare, State of California, as per Map recorded in Book 3; Page 48
            of Maps in the Office of the County Recorder of said County.

      3. Term.

            3.01 The term of this Lease shall be for a period of fifteen (15)
years commencing at 12:00 a.m. on December 1, 1994, and terminating at 11:59
p.m. on November 30, 2009, unless sooner terminated as herein provided.

            3.02 Lessee shall have the option to extend this lease for two
additional terms of five (5) years each from the expiration of the original
term, or any extension thereof, upon the same terms and conditions herein set
forth, except that the rent shall be adjusted as hereinafter set forth. Lessee
shall give notice of its election to exercise any option in this Agreement at
least six (6) months in advance of the expiration of the original term, or any
extension thereof.

            If Lessee elects to extend the term of the Lease, the minimum rental
for the first year of the extended term shall be equivalent to ten percent (10%)
of the fair market value of the leased premises, as determined by written
agreement of Lessor and Lessee, but in any event, no less than the rent being
paid at the termination of the primary Lease term.

            In establishing the minimum rental in the manner above-described,
should Lessor and Lessee fail to reach an agreement in writing as to the fair
market rent of the leased premises at least ninety (90) days before the end of
the regular term, the fair market value of the leased premises shall be
estimated by two (2) qualified MAI real estate appraisers with experience in
appraising leasehold interests, one (1) to be appointed and compensated by
Lessee, and the other to be appointed and compensated by Lessor. Lessor and
Lessee shall appoint their appraisers within seventy-five (75) days of the end
of the primary term of this Lease or option period, whichever is applicable. If,
within thirty (30) days from their appointment, the two (2) appraisers can agree
to an appraisal of value not differing by more then fifteen percent (15%), then
an average of the two (2) appraisals shall be used for the fair market value of
the leased

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premises. If the two (2) appraisals differ by more than fifteen percent (15%),
then the two (2) appraisers shall appoint a third appraiser. The three (3)
appraisers so appointed shall then, within thirty (30) days from the date the
third appraiser is appointed, estimate the fair market value of the leased
premises. The decision of the appraisers, or a majority of them, shall be
binding upon the parties. If the appraisers, or a majority of them, cannot agree
on the fair market value of the leased premises, the fair market value shall be
determined by adding all three (3) estimates of the fair market value and
dividing the total of all three estimates by the number three (3). The fee of
the third appraiser shall be split equally by. Lessor and Lessee.

            If Lessee elects to exercise the second option to extend the term of
this Lease for an additional five (5) year period, the minimum rent during such
extended period shall be determined in the same manner as set forth above, but
in no event will the minimum rent be less than the rent being paid at the
termination of the preceding extended term of this Lease.

      4. Rent.

            4.01 Lessee shall pay to Lessor the following minimum monthly rent,
without deduction, setoff, prior notice, or demand, specified in advance on the
first day of each month commencing December 1, 1994:

                 Lease Years                               Monthly Rent

                 1 and 2                                    $ 6,000.00

                 3, 4 and 5                                 $ 8,666.66

                 6, 7, 8, 9 and 10                          $11,130.00

                 11, 12, 13, 14 and 15                      $11,200.00

            Minimum monthly rent for the first month or portion of it shall be
paid on the day the term commences. Minimum monthly rent for any partial month
shall be prorated at the rate of 1/30th of the minimum monthly rent per day.

            Notwithstanding, rent during the first year of the term of the Lease
shall accrue at the monthly rate of Five Thousand Dollars ($5,000.00) per month
beginning December 1, 1994, until June 1, 1995. At that time, all accrued rent
shall become immediately due and owing and monthly rent at the rate set forth
for Year 1 above shall be payable on the first day of each month thereafter. If
Lessee fails to obtain the required charter or other permits authorizing it to
open as a bank, this Lease shall automatically terminate, Lessee shall vacate
the premises, and no rent shall be owed by Lessee to Lessor.

            4.02 If Lessee shall fail to pay Lessor within ten (10) days of the
date when due any payment owing to Lessor pursuant to the terms of this lease,
said late payment shall bear interest at the rate of twelve percent (12%) per
annum from the date due and payable until the same shall have been fully paid
and, in addition:

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                  (1) for such late payment Lessee shall pay to Lessor a service
            charge in the amount of One Hundred Twenty Dollars ($120.00); and

                  (2) for each second consecutive late payment of rent, Lessor
            shall have the option to require that beginning with the first
            payment of rent due following the date such late payment is due,
            rent shall no longer be paid in monthly installments but shall be
            payable three (3) months in advance.

      5. Use. Lessee shall use the premises for the purpose of operating a bank
and incidental uses related thereto.

            5.01 Lessee shall not do, bring, or keep anything in or about the
premises that will cause a cancellation of any insurance covering the premises.
Lessee shall not bring to, use, store or dispose of any toxic, hazardous or
undesirable material or chemical in, on or about the premises, including but not
limited to, oil, solvents, or other material which would violate any current or
future environmental protection agency or any other state, federal or local
environmental or health agency rules or regulations.

            5.02 Lessee shall comply with all laws and ordinances concerning the
premises or Lessee's use of the premises.

            5.03 Lessee shall not use the premises in any manner that will
constitute waste, nuisance, or unreasonable annoyance (including, without
limitation, the use of loud speakers or sound or light apparatus that can be
heard or seen outside the premises) to owners or occupants of adjacent
properties or other tenants in the building or center in which the premises are
located. Lessee shall not use the premises for living quarters or the
preparation, manufacture, or mixing of anything that might emit any odor or
objectionable noises or lights into adjacent properties and buildings. Lessee
shall not do anything on the premises that will cause damage to the premises.
Lessee shall not sell or display merchandise in the common areas or outside the
interior of the leased premises.

            5.04 Lessor shall deliver the premises to Lessee clean and free of
debris on lease commencement date . Lessee hereby acknowledges that Lessee has
inspected the premises and found the plumbing, lighting, air conditioning,
heating, electrical system and doors in the premises in good operating condition
and repair. Lessee hereby accepts the premises in their condition existing as of
the lease commencement date or the date that Lessee takes possession of the
premises, whichever is earlier. Lessee acknowledges that neither Lessor nor
Lessor's agent has made any representation or warranty as to the present or
future suitability of the premises for the conduct of Lessee's business.
Notwithstanding, Lessor agrees to install ceiling tiles, repaint the exterior
premises and the interior premises, and install new rugs and drapes. Lessor
shall have sole responsibility and have sole discretion in determining the
nature, quality, and standards used in connection with such improvements
provided that Lessor and Lessee shall coordinate their efforts to achieve a
result that is aesthetically pleasing to both parties.

            5.05 Lessee shall have the sole responsibility for complying, at
Lessee's cost, with the provisions of the American With Disabilities Act of 1990
("ADA") respecting the premises and every portion thereof.

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      6. Maintenance.

            6.01 Lessor at Lessor's cost shall maintain in good condition the
following: The structural parts of the building , which structural parts include
only the foundations and bearing and exterior walls (excluding glass and doors).
Maintenance of the exterior walls including painting and plastering shall be the
responsibility of Lessee.

            6.02 (a) Except as provided in Section 6.01, Lessee shall, at its
cost maintain in good condition all portions of the premises, including, without
limitation, all of Lessee's personal property, furnishings and equipment located
on the premises, signs, storefronts, plate glass and doors, interior walls and
floors, and the parking area.

                  (b) Lessee shall be liable for any damage to the building
resulting from the acts or omission of Lessee or its representatives, agents,
employees, contractors and invitees.

                  (c) Lessee waives the provisions of Civil Code Section 1941
and 1942 with respect to Lessor's obligation for tenantability of the premises
and Lessee's right to make repairs and deduct the expense of such repairs from
rent.

            6.03 If Lessee fails to perform Lessee's obligations under this
section or under any other paragraph of this Lease, Lessor may at Lessor's
discretion enter upon the premises after three days' prior written notice to
Lessee (except in the case of emergency, in which case no notice shall be
required), perform such obligations on Lessee's behalf and put the premises in
good order, condition and repair, and the cost thereof together with interest
thereon at the maximum rate then allowable by law shall be due and payable as
additional rent to Lessor together with Lessee's next rental installment.

            6.04 On the last day of the term hereof or on any sooner
termination, Lessee shall surrender the premises to Lessor in the same condition
as received (except ordinary wear and tear occurring after the last necessary or
required maintenance by Lessee), clean and free of debris. Lessee shall repair
any damage to the premises occasioned by the installation or removal of its
trade fixtures, furnishings and equipment.

      7. Alterations.

            7.01 Lessee shall not make any alteration to the premises without
Lessor's prior written consent which shall not be unreasonably withheld. Any
alterations made shall remain on and be surrendered with the premises on
expiration or termination of the lease term, except that Lessor can elect before
expiration of the term or within thirty (30) days after termination of the term
to require Lessee to remove any alterations that Lessee has made to the
premises. If Lessor so elects, Lessee at its cost shall restore the premises to
the condition designated by Lessor in its election, before the last day of the
term, or within twenty (20) days after notice of election is given, whichever is
later.

            7.02 All of said remodeling, alterations, and improvements shall be
done pursuant to the terms of this section and according to such plans and
specifications as may be

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approved by Lessor. All of said alterations, remodeling and improvements shall
be at Lessee's sole cost and expense.

            7.03 Any alterations; improvements, additions or utility
installations in or about the premises that Lessee shall desire to make and
which requires the consent of Lessor shall be presented to Lessor in written
form with proposed detailed plans. If Lessor shall give consent, the consent
shall-be deemed conditioned upon Lessee's acquiring all necessary permits to do
such work or improvements from appropriate governmental agencies, the furnishing
of a copy thereof to Lessor prior to the commencement of the work and the
compliance by Lessee of all conditions of said permit in a prompt and
expeditious manner. All such work, improvements and alterations shall be fast
quality in workmanship and materials. Lessee shall notify Lessor at least twenty
days in advance of any construction or delivery of materials to the premises so
that Lessor may post notices of non-responsibility.

            7.04 Lessee shall pay, when due, all claims for labor or materials
furnished or alleged to have been furnished to or for Lessee at or for use in
the premises, which claims are or may be secured by any mechanics or
materialmen's lien against the premises or any interest therein. If Lessee
shall, in good faith contest the validity of any such lien, claim or demand then
Lessee shall, at its sole expense defend itself and Lessor against the same and
shall pay and satisfy any such adverse judgment that may be rendered thereon
before the enforcement thereof against the Lessor or the premises, upon the
condition that if Lessor shall require, Lessee shall furnish to Lessor a surety
bond satisfactory to Lessor in an amount equal to one and one-half times such
contested'lien, claim or demand indemnifying Lessor against liability for the
same and holding the premises free from the effect of such lien or claim. In
addition, Lessor may require Lessee to pay Lessor's attorneys fees and costs in
participating in such action if Lessor shall decide it is in Lessor's best
interest to do so.

      8. Utilities. Lessee shall pay for all water, gas, heat, electricity,
power, telephone. and other utilities, refuse collection and services supplied
to the premises.

      9. Real and Personal Proper Taxes.

            9.01 Lessee shall pay prior to delinquency all taxes and other
charges assessed against or levied upon trade fixtures, furnishings, equipment
and all other personal property of Lessee located on the premises or elsewhere.
Lessee shall pay all taxes and other charges assessed or levied on any
alteration, improvement, or addition by Lessee to the premises. When possible,
Lessee shall cause said trade fixtures, furnishings, equipment and all other
personal property to be assessed and billed separately from the real property of
Lessor.

            9.02 Lessee shall pay, as further consideration for this Lease, all
real property taxes, assessments, and special assessments levied upon the leased
premises, or any part thereof. Said payments shall be in addition to the rent
specified above. All of said taxes and assessments shall be paid by said Lessee
at least ten (10) days before they become delinquent. Lessee agrees that it will
deliver to Lessor duplicate receipts evidencing payment by Lessee of all taxes
and assessments upon or against said premises.

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      10. Insurance and Indemnity.

            10.01 Lessee at Lessee's cost shall maintain public liability and
property damage insurance with a single combined limit of at least Five Million
Dollars ($5,000,000) insuring against all liability of Lessee and its
representatives and agents arising out and in connection with Lessee's use or
occupancy of the premises, on an "Occurrence" form. Lessor shall be named as an
additional insured on Lessee's liability policy. Insurance required hereunder by
Lessee shall be in companies acceptable to Lessor. Lessee shall deliver to
Lessor copies of such policies of liability insurance or certificates evidencing
the existence and amounts of such insurance. No such policy shall be cancelable
or subject to reduction of coverage or other modification. except after thirty
(30) days prior written notice to Lessor. Lessee shall, at least thirty (30)
days prior to the expiration of such policies, furnish Lessor with renewals
thereof, or Lessor may order such insurance and charge the cost thereof to
Lessee, which amount shall be payable by Lessee upon demand, as additional rent.
Lessee shall not do or permit to be done anything which shall invalidate such
insurance policies.

            10.02 Lessee shall indemnify and hold harmless Lessor from and
against any and all claims arising from Lessee's use of the premises, or from
the conduct of Lessee's business or from any activity, work or things done,
permitted or suffered by Lessee in or about the premises or elsewhere and shall
further indemnify and hold harmless Lessor from and against any and all claims
arising from the breach or default in the performance of any obligation on
Lessee's part to be performed under the terms of this Lease, or arising from any
negligence of the Lessee or any of Lessee's agents, contractors, or employees
and from . and against all costs, attorneys fees, expenses and liabilities
incurred in the defense of any such claim or any action or proceeding brought
thereon. In case any action or proceeding be brought against Lessor by reason of
any such claim, Lessee upon notice from Lessor shall defend the same at Lessee's
expense by counsel satisfactory to Lessor. Lessee, as a material part of the
consideration to Lessor, hereby assumes all risk of damage to property or injury
to persons in, upon or about the premises arising from any cau_________________
exception of any damage to property or injury to persons resulting from the
negligent act of Lessor or Lessor's agents. In any dispute between Lessor and
Lessee, the party prevailing in such action shall be entitled to attorney's fees
and court costs.

            10.03 Lessee hereby agrees that Lessee will at all times during the
term of this Lease maintain any buildings and improvements erected hereafter
upon said premises, and all furniture and fixtures therein, in good condition
and repair. The Lessor shall purchase property insurance against loss or damage
by fire, with extended coverage, and shall charge the Lessee for premium
necessary to obtain such insurance. The insuring company shall be rated by A.M.
Best & Co. as B+ + or better. The insurable value shall be ninety percent (90%)
of the replacement cost (including cost of foundation) subject to any
deductible, as determined by Lessor and approved by Lessee. Copies of insurance
policies or certificates evidencing such policies shall be furnished to Lessor
at Lessor's request.

            10.04 If, during the Term, the Improvements shall be partially or
totally destroyed from a risk either covered or not covered by the insurance
described in Paragraph 10.03, rendering the Improvements totally or partially
inaccessible or untenantable, the

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Improvements shall be restored by Lessee to substantially the same condition
they were in immediately prior to the destruction.

            10.05 Lessor shall utilize the insurance proceeds paid or to be paid
to physically restore the Improvements. Lessor agrees that the restoration shall
be performed in a good and workmanlike manner. Except as otherwise provided
below, such destruction shall not terminate this Lease. If the existing laws at
the time of restoration do not permit restoration, either party may terminate
this Lease immediately by giving notice to the other party, in which case the
insurance proceeds shall be paid to Lessor.

            10.06 During any restoration period to repair damage or destruction
under this Paragraph 10, an equitable reduction in the rental shall be made in
recognition of the interference with Lessee's normal conduct of business and
loss of profit resulting therefrom.

            10.07 In the event that the restoration as provided under this
Paragraph 10 is not capable of being completed within a period of nine (9)
months from the date of damage, then Lessee, at its option, may terminate this
Lease upon the giving of ten (10) days written notice to Lessor of its intention
to do so, provided that Lessee releases to Lessor any claim to insurance
proceeds provided for in Paragraph 10.03 herein, if necessary.

            10.08 Lessee hereby agrees that Lessor shall not be liable for
injury to Lessee's business or any loss of income therefrom or from damage to
the goods, wares, merchandise or other property of Lessee, Lessee's employees,
invitees, customers or any person in or about the premises, nor shall Lessor be
liable for any injury to the person of Lessee, Lessee's employees, agents or
contractors whether such damage or injury is caused by or results from fire,
steam, electricity, gas, water or rain, or from the breakage, leakage,
obstruction or other defects of -pipes, sprinklers, wires, appliances, plumbing,
air conditioning or lighting fixtures, or from any other cause whether the said
damage or injury results from conditions arising upon the premises or upon other
portions of the building of which the premises are a part except if caused by
the negligent acts of Lessor or Lessor's agents.

            10.09 The parties release each other and their respective authorized
representatives from any claims for damage to any person or to the premises and
the building and other improvements in which the premises are located, and to
the fixtures, personal property, tenant's improvements, and alterations of
either landlord or tenant in or on the premises and the building and other
improvements in which the premises are located that are caused by or result from
risks insured against under any insurance policies carried by the parties and in
force at the time of any such damage. Each party shall cause each insurance
policy obtained by it to provide that the insurance company waives all right of
recovery by way of subrogation against either party in connection with any
damage covered by any policy. Neither party shall be liable to the other for any
damage caused by fire or any of the risks insured against under any insurance
policy required by this Lease. ff the fire and extended coverage insurance
policy provided by Lessor cannot be obtained with a waiver of subrogation, or is
obtainable only by the payment of an additional premium charge above that
charged by insurance companies issuing policies without a waiver of subrogation,
Lessor shall so notify Lessee, and Lessee shall have a period of ten (10) days
after receiving the notice either to place the insurance with a company that is
reasonably satisfactory to Lessor and that will carry the insurance with a
waiver of subrogation

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or to agree to pay the additional premium if such policy is obtainable at
additional cost. If Lessee cannot obtain insurance with a waiver of subrogation
or refuses to pay the additional premium charged, Lessor is relieved of the
obligation to obtain a waiver of subrogation rights with respect to said
insurance.

            10.10 All insurance required under this lease shall be issued by
insurance companies authorized to do business in the State of California with a
financial rating of at least B + + status as rated in the most recent edition of
Best's Insurance Reports. Each policy shall be issued as a primary policy and
contain an endorsement requiring thirty (30) days written notice from the
insurance company to both parties before cancellation or change in the coverage,
scope or amount of any policy.

      11. Condemnation. If any part of the premises shall be taken or condemned
for public use, and a part thereof remains which is susceptible of occupation
hereunder, this Lease shall, as to the part taken, terminate as of the date the
condemnor acquires possession, and thereafter Lessee shall be required to pay
such proportion of the rent for the remaining term as the value of the premises
remaining bears to the total value of the premises at the date of condemnation;
provided however, that Lessor may at its option, terminate this Lease as of the
date the condemnor acquires possession. In the event that the demised premises
are condemned in whole, or that such portion is condemned that the remainder is
not susceptible for use hereunder, this Lease shall terminate upon the date upon
which the condemnor acquires possession. All sums which may be payable on
account of any condemnation shall belong to the Lessor, and Lessee shall not be
entitled to any part thereof, provided however, that Lessee shall be entitled to
retain any amount awarded to Lessee for trade fixtures, moving expenses, or
detriment to Lessee's business.

      12. Remedies of Owner on Default. In the event of any breach of this Lease
by Lessee, Lessor may, at its option terminate the Lease and recover from
Lessee: (a) the worth at the time of award of the unpaid rent which was earned
at the time of termination; (b) the worth at the time of award of the amount by
which the unpaid rent which would have been earned after termination until the
time of the award exceeds the amount of such rental loss that the Lessee proves
could have been reasonably avoided; (c) the worth at the time of award of the
amount by which the unpaid rent for the balance of the term after the time of
award exceeds the amount of such rental loss that Lessee proves could be
reasonably avoided; and (d) any other amount necessary to compensate Lessor for
all detriment proximately caused by Lessee's failure to perform its obligations
under the Lease or which in the ordinary course of things would be likely to
result therefrom.

            Lessor may, in the alternative, continue this Lease in effect, as
long as Lessor does not terminate Lessee's right to possession, and Lessor may
enforce all its rights and remedies under the Lease, including the right to
recover the rent as it becomes due under the Lease. If said breach of Lease
continues, Lessor may, at any time thereafter, elect to terminate the Lease.

            Nothing contained herein shall be deemed to limit any other rights
or remedies which Lessor may have.

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      13. Signs. Lessee may install signs denoting Lessee's business, provided
that such signs are in compliance with the governing laws, regulations, and
ordinances of the City of Visalia.

      14. Assignment. Lessee shall not voluntarily or involuntarily assign or
encumber its interest in this Lease or in the premises, or sublease all or any
part of the premises or allow any other person or entity (except Lessee's
authorized representatives) to occupy or use all or any part of the premises
without Lessor's consent which shall not be unreasonably withheld. Any
assignment, encumbrance or sublease without Lessor's consent shall be void and,
at Lessor's election, shall constitute a default. No consent to any assignment,
encumbrance or sublease shall constitute a further waiver of the provisions of
this paragraph. Notwithstanding any assignment or sublease, Lessee shall
continue to remain liable for the performance of all of Lessee's obligations
under this Lease including the payment of rent.

      15. Lessor's Transfer of Ownership. In the event of any transfer of
Lessor's title or interest in the premises, Lessor herein named (and in case of
any subsequent transfers then the grantor) shall be relieved from and after `the
date of such transfer of all liability as respects Lessor's obligations
thereafter to be performed under the Lease, provided that any funds in the hands
of Lessor or the then grantor at the time of such transfer, in which Lessee has
an interest, shall be delivered to the grantee. The obligations contained in
this Lease to be performed by Lessor shall, subject to the aforesaid, be binding
on Lessor's successors and assigns, only during their respective periods of
ownership.

      16. Severability. The invalidity of any provision of this Lease as
determined by a court of competent jurisdiction shall in no way effect the
validity of any other provision hereof.

      17. Time Is of Essence. Time is of the essence of this Lease.

      18. Additional Rent. Any monetary obligations of Lessee to Lessor under
the terms of this Lease shall be deemed to be rent.

      19. Entire Agreement. This Lease contains all the agreements of the
parties. This Lease may be modified in writing only, signed by the parties in
interest at the time of the modification. Except as otherwise stated in this
Lease, Lessee hereby acknowledges that no real estate broker or the Lessor, or
any employee or agents of any said persons has made any oral or written
warranties or representations to Lessee relative to the condition or use by
Lessee of the premises.

      20. Waivers. No waiver by Lessor of any provision hereof shall be deemed a
waiver of any other provision hereof or of any subsequent breach by Lessee of
the same or any other provision. Lessor's consent to, or approval of any act,
shall not be deemed to render unnecessary the obtaining of Lessor's consent to
or approval of any subsequent act by Lessee. The acceptance of rent hereunder by
Lessor shall not be a waiver of any preceding breach by Lessee of any provision
hereof, other than the failure of Lessee to pay the particular rent so accepted,
regardless of Lessor's knowledge of such preceding breach at the time of
acceptance of such rent.

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      21. Recording. Either Lessor or Lessee shall, upon request of the other,
execute, acknowledge and deliver to the other a memorandum of this Lease for
recording purposes.

      22. Holding Over. If Lessee with Lessor's consent remains in possession of
the premises or any part thereof after the expiration of the term hereof, such
occupancy shall be a tenancy from month-to-month upon all of the provisions of
this Lease pertaining to the obligations of Lessee.

      23. Cumulative Remedies. No remedy or election hereunder shall be deemed
exclusive but shall, wherever possible, be cumulative with all other remedies at
law or in equity.

      24. Covenants and Conditions. Each provision of this Lease to be performed
by Lessee and Lessor shall be deemed to be both a covenant and a condition.

      25. Binding Effect. Subject to any provisions hereof restricting
assignment or subletting by Lessee and subject to the provisions of paragraph
16, this Lease shall bind the parties, their personal representatives, successor
and assigns. This Lease shall be governed by the laws of the State of
California.

      26. Subordination; Estoppel.

            26.01 This Lease is and shall be subordinate to any encumbrance now
of record or recorded after the date of this Lease effecting the building, other
improvements, and land of which the premises are a part. Such subordination is
effective without any further act of Lessee. Lessee shall from time-to-time on
request of Lessor execute and deliver appropriate documents or instruments that
may be required by a lender to effectuate any subordination.

            26.02 Each party, within ten (10) days after notice from the other,
shall execute and deliver to the other party, in recordable form, a certificate
stating that this Lease is unmodified and in full force and effect, or in full
force and effect as modified and stating the modifications. The certificate
shall also state the amount of minimum monthly rent, the dates to which the rent
has been paid in advance, and the amount of any security deposit or prepaid
rent.

      27. Notices. Any notice, demand, request, consent, approval, or
communication that either party desires or is required to give to the other
party or any other person shall be in writing and either served personally or
sent by prepaid, first-class mail addressed to the other party at the following
address:

                 Lessor:  Cal-Western Farming Company
                          P. O. Box 1071
                          Visalia, CA 93279

                 Lessee:  Bank of Visalia (Proposed)
                          200 S. Court
                          Visalia, CA 93291

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      28. Lessor's Entry On Premises. Lessor and its authorized representatives
shall have the right to enter the premises at all reasonable times during
regular business hours with reasonable advance notice to Lessee for any of the
following purposes:

                  (a) To determine whether the premises are in good condition
and whether Lessee is complying with its obligations under this Lease;

                  (b) To do any maintenance and to make any restoration to the
premises or the building and other improvements in which the premises are
located that Lessor has the right or obligation to perform;

                  (c) To serve, post, or keep posted any notices required or
allowed under the provisions of this Lease;

                  (d) To post "for sale" signs at any time during the term and
to post "for rent" or "for lease" signs during the last five (5) months of the
term, or during any period while Lessee is in default;

                  (e) To show the premises to prospective brokers, agents,
buyers, tenants, or persons interested in an exchange, at any time during the
term; provided that such entry shall not disrupt Lessee's business.

      29. Attorney's Fees. If either party commences an action against the other
party arising out of or in connection with this Lease, the prevailing party
shall be entitled to have and recover from the losing party reasonable attorneys
fees and cost of suit.

      30. Authority. If any party is a corporation, that party shall deliver to
the other party on execution of this Lease, a certified copy of a resolution of
its board of directors authorizing the execution of this Lease and naming the
officers that are authorized to execute this Lease on behalf of the corporation.

      31. Exhibits. All exhibits referred to are attached to this Lease and
incorporated by reference.

      32. Singular and Plural. When required by the context of this Lease, the
singular shall include the plural.

      33. Captions. The captions of this Lease shall have no effect on its
interpretation.

      34. Easements. Lessor reserves to itself the right, from time-to-time, to
grant such easements, rights and dedications that Lessor deems necessary or
desirable and to cause the recordation of parcel maps and restrictions, so long
as such easements, rights, dedications, maps and restrictions do not
unreasonably interfere with the use of the premises by Lessee. Lessee shall sign
any of the aforementioned documents upon request of Lessor and failure to do so
shall constitute a material breach of this Lease.

                                       11
<PAGE>

LESSOR:                                    LESSEE:

CAL-WESTERN FARMING COMPANY                BANK OF VISALIA (PROPOSED)

By: /s/ Luther J. Khachigian               By: /s/ Oliver Summers
    ----------------------------               --------------------------------
        Luther J. Khachigian                       Oliver Summers, Chairman

                                           By: /s/ Walter Dwelle
                                               --------------------------------
                                                   Walter Dwelle, Secretary

                                       12
<PAGE>

                            FIRST AMENDMENT TO LEASE

      This First Amendment to Lease is entered into, and effective, as of June
1, 1995, between CAL-WESTERN FARMING COMPANY, herein called "Lessor", and BANK
OF VISALIA ("PROPOSED"), herein called "Lessee".

                                    Recitals

      A. Lessor and Lessee entered into a Lease Agreement dated January 17,
1995, pertaining to the premises commonly known as 200 S. Court Street, Visalia,
CA.

      B. The parties desire to amend the terms of the Lease as hereinafter set
forth.

      NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES, COVENANTS AND
CONDITIONS HEREINAFTER SET FORTH THE PARTIES AGREE AS FOLLOWS:

            1. Paragraph 4.01. Paragraph 4.01 is amended to read as follows:

            Lessee shall pay to Lessor the following minimum monthly rent,
            without deduction, setoff, prior notice, or demand, specified in
            advance on the first day of each month commencing December 1,1994:

            Lease Years                                    Monthly Rent
            -----------                                    ------------

            1 and 2                                         $ 6,000.00

            3, 4 and 5                                      $ 8,666.66

            6, 7, 8, 9 and 10                               $11,130.00

            11, 12, 13, 14 and 15                           $11,200.00

            Minimum monthly rent for the first month or portion of it shall be
            paid on the day the term commences. Minimum monthly rent for any
            partial month shall be prorated at the rate of 1/30th of the minimum
            monthly rent per day.

            Notwithstanding, rent during the first term of the lease shall
            accrue at the monthly rate of $5,000 per month beginning December 1,
            1994, until June 1, 1995. Beginning June 1, 1995, Lessee shall begin
            to pay monthly rent at the rate set forth for year one above. All
            accrued rent for the period December 1, 1994 through June 1, 1995,
            shall be payable on November 1, 1995, provided that if Lessee fails
            to obtain the required State Bank Charter or other permit
            authorizing it to open as a bank, this Lease shall

                                       1
<PAGE>

            automatically terminate on November 1, 1995, or sooner, if Lessee
            determines that it will not secure the required State Bank Charter
            or other permits authorizing it to open as a bank, and Lessee shall
            have no further responsibility to Lessor for the accrued rent for
            the period of December 1, 1994 through June 1, 1995.

            2. Paragraph 5.04. Paragraph 5.04 is amended to provide that in
addition to the improvements set forth therein to be made by Lessor, at Lessor's
expense, Lessor agrees further to repair approximately 300 square feet of the
parking lot area where water stands during wet periods.

            3. Other terms and covenants. In all other respects, the original
Lease dated January 17, 1995 shall remain in full force and effect as originally
agreed.

LESSOR:                                    LESSEE:

CAL-WESTERN FARMING COMPANY                BANK OF VISALIA (PROPOSED)

By: /s/ Luther J. Khachigian               By: /s/ Oliver Summers
    ----------------------------               --------------------------------
        Luther J. Khachigian                       Oliver Summers, Chairman

                                           By: /s/ Walter Dwelle
                                               --------------------------------
                                                   Walter Dwelle, Secretary

                                       2
<PAGE>

                            SECOND AMENDMENT TO LEASE

      This Second Amendment to Lease is entered into, and effective, as of
October 9, 1995, between CAL-WESTERN FARMING COMPANY, herein called "Lessor",
and BANK OF VISALIA ("PROPOSED"), herein called "Lessee".

                                    Recitals

      A. Lessor and Lessee entered into a Lease Agreement dated January 17,
1995, pertaining to the premises commonly known as 200 S. Court Street, Visalia,
CA., and a First Amendment to Lease dated as of June 1, 1995.

      B. The parties desire to further amend the terms of the Lease as
hereinafter set forth.

      NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES, COVENANTS AND
CONDITIONS HEREINAFTER SET FORTH THE PARTIES AGREE AS FOLLOWS:

            1. The following paragraph is to be added as Paragraph 35 to the
Lease:

                  35. Bankrupt of Lessee: Notwithstanding any other provisions
            contained in this Lease, in the event (a) Lessee or its successors
            or assignees shall become insolvent or bankrupt, or if it or their
            interests under this Lease shall be levied upon or sold under
            execution or other legal process, or (b) the depository institution
            then operating on the Premises is closed, or is taken over by any
            depository institution supervisory authority ("Authority"), Lessor
            may, in either such event, terminate this Lease only with the
            concurrence of any Receiver or Liquidator appointed by such
            Authority; provided, that in the event this Lease is terminated by
            the Receiver or Liquidator, the maximum claim of Lessor for rent,
            damages, or indemnity for injury resulting from the termination,
            rejection, or abandonment of the unexpired Lease shall by law in no
            event be in an amount equal to all accrued and unpaid rent to the
            date of termination."

            2. Other terms and covenants. In all other respects, the original
Lease dated January 17, 1995, and First Amendment to Lease dated as of June 1,
1995, shall remain in full force and effect as originally agreed.

                                       1
<PAGE>

LESSOR:                                    LESSEE:

CAL-WESTERN FARMING COMPANY                BANK OF VISALIA (PROPOSED)

By: /s/ Luther J. Khachigian               By: /s/ Walter Dwelle
    ----------------------------               ---------------------------------
        Luther J. Khachigian                       Walter Dwelle, Chairman

                                           By: /w/ Michael H. Haworth
                                               ---------------------------------
                                                   Michael H. Haworth, Secretary

                                       2
<PAGE>

                            THIRD AMENDMENT TO LEASE

      This Third Amendment to Lease is entered into, and effective, as of
January 22, 1996, between CAL-WESTERN FARMING COMPANY, herein called "Lessor",
and BANK OF VISALIA ("PROPOSED"), herein called "Lessee".

                                    Recitals

      A. Lessor and Lessee entered into a Lease Agreement dated January 17,
1995, pertaining to the premises commonly known as 200 S. Court Street, Visalia,
California.

      B. Lease was amended by First Amendment to Lease dated as of June 1, 1995,
and further amended by Second Amendment to Lease dated October 9, 1995.

      C. Lessee is currently processing applications to obtain a State Bank
Charter and other permits ("Permits") authorizing it to open and operate as a
bank.

      D. The parties desire to further amend the terms of the Lease as
hereinafter set forth.

      NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES, COVENANTS AND
CONDITIONS HEREINAFTER SET FORTH THE PARTIES AGREE AS FOLLOWS:

            1. Paragraph 4.01. Paragraph 4.01 is amended to read as follows:

            Lessee shall pay to Lessor the following minimum monthly rent,
            without deduction, setoff, prior notice, or demand, specified in
            advance on the first day of each month commencing December 1, 1994:

            Lease Years                                    Monthly Rent
            -----------                                    ------------

            1 and 2                                         $ 6,000.00

            3, 4 and 5                                      $ 8,666.66

            6, 7, 8, 9 and 10                               $11,130.00

            11, 12, 13, 14 and 15                           $11,200.00

            Minimum monthly rent for the first month or portion of it shall be
            paid on the day the term commences. Minimum monthly rent for any
            partial month shall be prorated at the rate of 1/30th of the minimum
            monthly rent per day.

            Notwithstanding, rent during the first term of the lease shall
            accrue at the monthly rate of $5,000.00 per month beginning December
            1, 1994, until June 1, 1995. Interest at a rate of 9.5% per annum on

                                       1
<PAGE>

            the unpaid rent for the period December 1, 1994 through June 1, 1995
            shall accrue from November 1, 1995 to a date not more than ten days
            following receipt by Lessee of the Permits at which time all accrued
            rent and interest shall be due and payable in full. Beginning June
            1, 1995, Lessee shall pay monthly rent at the rate set forth for
            year one above. This Lease shall automatically terminate on March 1,
            1996 if Lessee has not secured the Permits, or sooner, if Lessee
            determines that it will not secure the Permits. If Lessee fails to
            obtain the Permits, Lessee shall have no further responsibility to
            Lessor for the accrued rent for the period of December 1, 1994
            through June 1, 1995, and the interest thereon.

            2. Paragraph 35. Paragraph 35 is added as follows:

            Notwithstanding any other provision of this Lease, Lessor shall not
            have the right to take possession of any of Lessee's business
            records or the records or personal property located on the premises
            of any customer of Lessee or of any other third party. Furthermore,
            any rights and remedies of Lessor, under this Lease, are subject, to
            the powers of the California Superintendent of Banks and other bank
            regulatory agencies to enter upon and assume control of the premises
            and of any personal property thereon.

            3. Other terms and covenants. In all other respects, the original
Lease dated January 17, 1995 as Amended shall remain in full force and effect as
originally agreed.

LESSOR:                                    LESSEE:

CAL-WESTERN FARMING COMPANY                BANK OF VISALIA (PROPOSED)

By: /s/ Luther J. Khachigian               By: /s/ Walter Dwelle
    -----------------------------------        --------------------------------
        Luther J. Khachigian, Secretary            Chairman

                                           By: /w/ Michael H. Haworth
                                               --------------------------------
                                                   Secretary

                                       2
<PAGE>

                            FOURTH AMENDMENT TO LEASE

      This Fourth Amendment to Lease is entered into, and effective, as of
February 12, 1996, between CAL-WESTERN FARMING COMPANY, herein called "Lessor",
and BANK OF VISALIA ("PROPOSED"), herein called "Lessee".

                                    Recitals

      A. Lessor and Lessee entered into a Lease Agreement dated January 17,
1995, pertaining to the premises commonly known as 2W S. Court Street, Visalia,
California.

      B. Lease was amended by First Amendment to Lease dated as of June 1, 1995,
and further amended by Second Amendment to Lease dated October 9, 1995, and by
Third Amendment to Lease dated January 22, 1996.

      C. Lessee is currently processing applications to obtain a State Bank
Charter and other permits ("Permits") authorizing it to open and operate as a
bank.

      D. The parties desire to further amend the terms of the Lease as
hereinafter set forth.

      NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES, COVENANTS AND
CONDITIONS HEREINAFTER SET FORTH THE PARTIES AGREE AS FOLLOWS:

            1. Paragraph 35. Paragraph 35 of Second Amendment to Lease, dated
October 9, 1995 is deleted in its entirety, and replaced with the language of
paragraph 35 as set forth in Third Amendment to Lease, dated January 22, 1996.

            2. Paragraph 36. Paragraph 36 is added as follows:

            Notwithstanding any other provisions contained in this Lease, in the
            event (a) Lessee or its successors or assignees shall become
            insolvent or bankrupt, or if it or their interests under this Lease
            shall be levied upon or sold under execution or other legal process,
            or (b) the depository institution then operating on the Premises is
            closed, or is taken over by any depository institution supervisory
            authority ("Authority"), Lessor may, in either such event, and
            provided that an Authority has taken over the Premises, terminate
            this Lease only with the concurrence of any Receiver or Liquidator
            appointed by such Authority; provided, that in the event this Lease
            is terminated by the Receiver or Liquidator, the maximum claim of
            Lessor for rent, damages, or indemnity for injury resulting from the
            termination, rejection, or abandonment of the unexpired term of this
            Lease shall not exceed an amount equal to all accrued and unpaid
            rent to the date of such termination.

                                       1
<PAGE>

LESSOR:                                    LESSEE:

CAL-WESTERN FARMING COMPANY                BANK OF VISALIA (PROPOSED)

By: /s/ Luther J. Khachigian               By: /s/ Walter Dwelle
    -----------------------------------        --------------------------------
        Luther J. Khachigian, Secretary            Chairman

                                           By: /w/ Michael H. Haworth
                                               --------------------------------
                                                   Secretary

                                       2Exhibit 10.3

                  EXECUTIVE SUPPLEMENTAL COMPENSATION AGREEMENT

      This Agreement is made and entered into effective as of March 1, 2002, by
and between Bank of Visalia, a state-chartered commercial bank with its
principal offices located in the City of Visalia, California ("the Bank"), and,
Donald A. Gilles, an individual residing in the State of California ("the
Executive").

                                    RECITALS

      WHEREAS, the Executive is an employee of the Employer, serving since April
1995;

      WHEREAS, the Employer desires to establish a compensation benefit program
as a fringe benefit for executive officers of the Employer in order to attract
and retain individuals with extensive and valuable experience in the banking
industry;

      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 fringe 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;

      NOW, THEREFORE, in consideration of the services to be performed by the
Executive 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 Bank shall be the "Administrator" and, solely
for the purposes of ERISA as defined in subparagraph 1.9 below, the "fiduciary"
of this Agreement where a fiduciary is required by ERISA.

            1.2. Applicable Percentage. The term "Applicable Percentage" shall
mean that percentage listed on Schedule "A" attached hereto which corresponds to
the number of years which shall have elapsed from the date of Executive's
employment by the bank until the date of the Executive's termination of
employment with the Bank. Notwithstanding the foregoing or the percentages set
forth on Schedule "A", but subject to all other terms and conditions set forth
herein, the "Applicable Percentage" shall be: One Hundred Percent (100%) in the
event the Executive's employment is terminated pursuant to subparagraph 5.4 upon
the occurrence of a "Change in Control" as defined in subparagraph 1.3 below, or
the Executive's Disability (as defined in subparagraph 1.5 below) or the
Executive's Death.

                                       1
<PAGE>

Exhibit 10.3

            1.3. Change in Control. The term "Change in Control" shall mean the
occurrence of any of the following events with respect to the Bank (with the
term "Bank" being defined for purposes of determining whether a "Change in
Control" has occurred to include the Holding Company: (i) a change in control of
a nature that would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of
1934, as amended (the "Exchange Act"), or in response to any other form or
report to the regulatory agencies or governmental authorities having
jurisdiction over the Bank or any stock exchange on which the Bank's shares are
listed which requires the reporting of a change in control; (ii) any merger,
consolidation or reorganization of the Bank in which the Bank does not survive;
(iii) any sale, lease, exchange, mortgage, pledge, transfer or other disposition
(in one transaction or a series of transactions) of any assets of the Bank
having an aggregate fair market value of fifty percent (50%) of the total value
of the assets of the Bank, reflected in the most recent balance sheet of the
Bank; (iv) a transaction whereby any "person" (as such term is used in the
Exchange Act) or any individual, corporation, partnership, trust or any other
entity becomes the beneficial owner, directly or indirectly, of securities of
the Bank representing twenty-five percent (25%) or more of the combined voting
power of the Bank's then outstanding securities; or (v) a situation where, in
any one-year period, individuals who at the beginning of such period constitute
the Board of Directors of the Bank cease for any reason to constitute at least a
majority thereof, unless the election, or the nomination for election by the
Bank's shareholders, of each new Director is approved by a vote of at least
three-quarters (3/4) of the Directors then still in office who were Directors at
the beginning of the period. Notwithstanding the foregoing or anything else
contained herein to the contrary, there shall not be a "Change of Control" for
the purposes of this Agreement if the event which would otherwise come within
the meaning of the term "Change of Control" involves an Employee Stock Ownership
Plan sponsored by the Bank or its Holding Company which is the party that
acquires "control" or is the principal participant in the transaction
constituting a "Change in Control," as described above.

            1.4. The Code. The "Code" shall mean the Internal Revenue Code of
1986, as amended (the "Code").

            1.5. Disability/Disabled. The term "Disability" or "Disabled" shall
have the same meaning given such terms in any policy of disability insurance
maintained by the Bank for the benefit of the Executive. In the absence of such
a policy that extends coverage to the Executive in the event of disability, the
terms shall mean bodily injury or disease (mental or physical) that wholly and
continuously prevents the performance of duty for at least six months.

            1.6. Effective Date. The term "Effective Date" shall mean the date
first written above.

            1.7. ERISA. The term "ERISA" shall mean the Employee Retirement
Income Security Act of 1974, as amended.

            1.8. Executive Benefit. The term "Executive Benefit" or "Retirement
Benefit Payments" shall mean the benefits determined pursuant to subparagraphs
3.0, 4.0 or 5.0, including subparagraphs thereof, and in accordance with
Schedule "B", and reduced or adjusted to the extent: (i) required under the
other provisions of this Agreement, including, but not limited to, Paragraphs 5,
6, and 7 hereof; (ii) required by reason of the lawful order of any regulatory
agency or body having jurisdiction over the Bank; or (iii) required in order for
the Bank 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).

                                       2
<PAGE>

Exhibit 10.3

            1.9. Plan Year. The term "Plan Year" shall mean the Bank's fiscal
year.

            1.10. Retirement. The term "Retirement" or "Retires" shall refer to
the resignation of the Executive from further full time employment with the
Bank. To be effective, the Executive's resignation shall be presented to the
Bank, shall be in writing and shall specify the first day of Retirement

            1.11. Normal Retirement Date. Except as follows, the term "Normal
Retirement Date" shall mean the Retirement of the Executive on or after the
later of the following dates: the Executive's attainment of age sixty-five (65),
or the Executive's completion of fifteen years of service, dated from the first
day of his first month of employment with the Employer. The foregoing
notwithstanding, if the Executive's employment with the Bank is terminated
pursuant to paragraph 5.4 (Termination on Account of or After a Change in
Control), such termination of employment shall be deemed, for purposes of
determining benefits under this Agreement, to have occurred on the Executive's
Normal Retirement Date.

            1.12. Early Retirement Date. The term "Early Retirement Date" shall
mean Retirement, as defined below, of the Executive after the attainment of age
sixty (60).

            1.13. Termination for Cause. The term "Termination for Cause" shall
mean termination of the employment of the Executive by reason of any of the
following:

                  (a) The Executive's deliberate violation of (i) any state or
federal banking or securities laws, or of the Bylaws, rules, policies or
resolutions of the Employer, or (ii) of the rules or regulations of the
California Commissioner of Financial Institutions, the Federal Deposit Insurance
Corporation, the Federal Reserve Board of Governors, the Office of the
Comptroller of the Currency or any other regulatory agency or governmental
authority having jurisdiction over the Employer, which has a material adverse
effect upon the Employer; or

                  (b) The Executive's conviction of any felony or a crime
involving moral turpitude or a fraudulent or dishonest act, which has a material
adverse effect upon the Employer.

      2. Scope, Purpose and Effect.

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

Exhibit 10.3

            2.3. Prohibited Payments. Notwithstanding anything in this Agreement
to the contrary (and in particular in section 1.8 or section 3 hereof), if any
payment made under this Agreement is a "golden parachute payment" as defined in
Section 28(k) of the Federal Deposit Insurance Act (12 U.S.C. section 1828(k)
and Part 359 of the Rules and Regulations of the Federal Deposit Insurance
Corporation (collectively, the "FDIC Rules") or is otherwise prohibited,
restricted or subject to the prior approval of a Bank Regulator (as defined in
section 1.13 (d) herein), no payment shall be made hereunder without complying
with said FDIC Rules.

      3. Executive Benefits Payments.

            3.1. Payments Commence Upon Early Retirement Date. In the event the
Executive elects to Retire on a date which constitutes an Early Retirement Date,
as defined above, the Executive shall be entitled to be paid the Applicable
Percentage of the Executive Benefits as described in Schedule B, in
substantially equal monthly installments on the first day of each month,
beginning with the month following the month in which the Early Retirement Date
occurs or upon such later date as may be mutually agreed upon by the Executive
and the Employer in advance of said Early Retirement Date.

            3.2. Payments Commence Upon Normal Retirement Date. If the Executive
shall remain in the continuous employment of the Employer until attaining the
Normal Retirement Date, the Executive shall be entitled to be paid the
Applicable Percentage of the Executive Benefits, as defined in Schedule B, in
substantially equal monthly installments 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 by the Executive and the
Employer in advance of said Retirement date, payable until the Executive's
death.

      4. Payments in the Event Disability Occurs 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 be entitled to be paid the Applicable Percentage of the Normal
Retirement Executive Benefits as defined in Schedule B, in substantially equal
monthly installments on the first day of each month, beginning with the month
following the month in which the Executive becomes Disabled, payable until the
Executive's death.

      5. Payments in the Event Executive Is Terminated Prior to Retirement. As
indicated in subparagraph 2.1 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, other than by reason of Disability or Retirement, then this
Agreement shall terminate upon the date of such termination of employment;
provided, however, that the Executive shall be entitled to the following
benefits as may be applicable depending upon the circumstances surrounding the
Executive's termination:

            5.1. Termination Without Cause. If the Executive's employment is
terminated by the Employer without cause, and such termination is not subject to
the provisions of subparagraph 5.4 below, then the Executive shall be entitled
to be paid the Applicable Percentage of the Executive Benefits, as defined
above, in substantially equal monthly installments on the first day of each
month, beginning on a date requested by Executive, which shall not be sooner
that the first month after which the Executive has attained sixty (60) years of
age.

                                       4
<PAGE>

Exhibit 10.3

            5.2. Voluntary Termination by the Executive. (a) If the Executive's
employment is terminated by voluntary resignation prior to the Early Retirement
Date and such resignation is not subject to the provisions of subparagraph 5.4
below, the Executive shall forfeit any and all rights and benefits he may have
under the terms of this Agreement and shall have no right to be paid any of the
amounts which would otherwise be due or paid to the Executive by the Employer
pursuant to the terms of this Agreement.

(b) If the Executive's voluntary resignation takes effect on or after the Early
Retirement Date and such resignation is not subject to the provisions of
subparagraph 5.4 below, it shall be treated as Retirement under this Agreement.

            5.3. Termination for Cause. The Executive agrees that if his
employment with the Employer is terminated "for cause," as defined in
subparagraph 1.13 of this Agreement, he shall forfeit any and all rights and
benefits he may have under the terms of this Agreement and shall have no right
to be paid any of the amounts which would otherwise be due or paid to the
Executive by the Employer pursuant to the terms of this Agreement; provided
however, if the Executive is terminated for disability, he shall be entitled to
benefits under Section 4.

            5.4. Termination on Account of or After a Change in Control. In the
event: (i) the Executive's employment with the Employer is terminated by the
Employer in conjunction with, or by reason of, a "Change in Control" (as defined
in subparagraph 1.3 above); or (ii) by reason of the Employer's actions any
adverse and material change occurs in the scope of the Executive's position,
responsibilities, duties, salary, benefits, or location of employment after a
Change in Control occurs; or (iii) the Employer causes an event to occur which
reasonably constitutes or results in a demotion, a significant diminution of
responsibilities or authority, or a constructive termination (by forcing a
resignation or otherwise) of the Executive's employment after a Change in
Control occurs, then the Executive shall be entitled to be paid the Applicable
Percentage of the Executive Benefits, as defined above, in substantially equal
monthly installments on the first day of each month, beginning with the first
month after which both of the following events have occurred: the Executive has
attained sixty (60) years of age and the Executive has terminated full time
employment with the Bank.

      6. Right To Determine Funding Methods. The Bank 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, under the terms of this Agreement. In the event that
the Bank elects to fund this Agreement, in whole or in part, through the use of
life insurance or annuities, or both, the Bank shall determine the ownership and
beneficial interests of any such policy of life insurance or annuity. The Bank
further reserves the right, in its sole and absolute discretion, to terminate
any such policy, and any other devise used to fund its obligations under this
Agreement, at any time, in whole or in part. Consistent with Paragraph 8 below,
the Executive shall have no right, title or interest in or to any funding source
or amount utilized by the Bank pursuant to this Agreement, and any such funding
source or amount shall not constitute security for the performance of the Bank's
obligations pursuant to this Agreement. In connection with the foregoing, the
Executive agrees to execute such documents and undergo such medical examinations
or tests which the Bank may request and which may be reasonably necessary to
facilitate any funding for this Agreement including, without limitation, the
Bank's acquisition of any policy of insurance or annuity.

      7. Claims Procedure. The Bank 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

                                       5
<PAGE>

Exhibit 10.3

control and manage the operation and administration of this Agreement.
Consistent therewith, the Bank shall make all determinations as to the rights to
benefits under this Agreement. Any decision by the Bank denying a claim by the
Executive 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 beneficiaries, as the case may be. Such
decision shall set forth the specific reasons for the denial of a claim. In
addition, the Bank shall provide the Executive, or as applicable, the
Executive's spouse or beneficiaries, with a reasonable opportunity for a full
and fair review of the decision denying such claim.

      8. Status as an Unsecured General Creditor. Notwithstanding anything
contained herein to the contrary: (i) the Executive shall have no legal or
equitable rights, interests or claims in or to any specific property or assets
of the Bank as a result of this Agreement; (ii) none of the Bank's assets shall
be held in or under any trust for the benefit of the Executive or held in any
way as security for the fulfillment of the obligations of the Bank under this
Agreement; (iii) all of the Bank's assets shall be and remain the general
un-pledged and unrestricted assets of the Bank; (iv) the Bank's obligation under
this Agreement shall be that of an un-funded and unsecured promise by the Bank
to pay money in the future; and (v) the Executive shall be an unsecured general
creditor with respect to any benefits which may be payable under the terms of
this Agreement.

Notwithstanding subparagraphs (i) through (v) above, the Bank and the Executive
acknowledge and agree that, in the event of a Change in Control, upon request of
the Executive, or in the Bank's discretion if the Executive does not so request
and the Bank nonetheless deems it appropriate, the Bank shall establish, not
later than the effective date of the Change in Control, a Rabbi Trust or
multiple Rabbi Trusts (the "Trust" or "Trusts") upon such terms and conditions
as the Bank, in its sole discretion, deems appropriate and in compliance with
applicable provisions of the Code, in order to permit the Bank to make
contributions and/or transfer assets to the Trust or Trusts to discharge its
obligations pursuant to this Agreement. The principal of the Trust or Trusts and
any earnings thereon shall be held separate and apart from other funds of the
Bank to be used exclusively for discharge of the Bank's obligations pursuant to
this Agreement and shall continue to be subject to the claims of the Bank's
general creditors until paid to the Executive in such manner and at such times
as specified in this Agreement.

      9. Discretion of Board to Accelerate Payout. Notwithstanding any of the
other provisions of this Agreement, the Board of Directors of the Bank or the
Holding Company may, if determined in its sole and absolute discretion to be
appropriate, accelerate the payment of the amounts due under the terms of this
Agreement, provided that the Executive: (i) consents to the revised payout terms
determined appropriate by the Board of Directors; and (ii) does not negotiate or
in any way influence the terms of proposed altered/accelerated payout (said
decision to be made solely by the Board of Directors and offered to the
Executive on a "take it or leave it basis").

      10. Miscellaneous.

            10.1. Opportunity To Consult With Independent Advisors. The
Executive acknowledges that he has been afforded the opportunity to consult with
independent advisors of his choosing including, without limitation, accountants
or tax advisors, attorneys and counsel regarding both the benefits granted to
him under the terms of this Agreement and the (i) terms and conditions which may
affect the Executives right to these benefits and (ii) personal tax effects of
such benefits including, without limitation, the effects of any federal or state
taxes, Section

                                       6
<PAGE>

Exhibit 10.3

280G of the Code, and any other taxes, costs, expenses or liabilities whatsoever
related to such benefits, which in any of the foregoing instances the Executive
acknowledges and agrees shall be the sole responsibility of the Executive
notwithstanding any other term or provision of this Agreement. The Executive
further acknowledges and agrees that the Bank shall have no liability whatsoever
related to any such personal tax effects or other personal costs, expenses, or
liabilities applicable to the Executive and further specifically waives any
right for himself or herself, and his or her heirs, beneficiaries, legal
representatives, agents, successor and/or assigns to claim or assert liability
on the part of the Bank related to the matters described above in this
subparagraph 10.1. 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.

            10.2. 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 Bank 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 Portland, Oregon. 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") 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 Visalia, California, unless otherwise agreed to by the parties.

            10.3 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, attorney's fees and costs incurred in connection therewith
or in the enforcement or collection of any judgment or award rendered therein.
The "prevailing party" means the party determined by the arbitrator(s) or court,
as the case may be, to have most nearly prevailed, even if such party did not
prevail in all matters, not necessarily the one in whose favor a judgment is
rendered.

            10.4. Notice. Any notice required or permitted of either the
Executive or the Bank 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

                                       7
<PAGE>

Exhibit 10.3

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 Bank:      Bank of Visalia
                                       200 South Court Street
                                       Visalia, California 93291
                                       Attn: Human Resources

                  If to the Executive: Donald A. Gilles
                                       3124 Royal Oaks Drive
                                       Visalia, CA 93277

            10.5. Assignment. The Executive shall have no power or right to
transfer, assign, anticipate, 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 the Executive, 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; or (ii) transferable
by operation of law in the event of bankruptcy, insolvency or otherwise. Any
such attempted assignment or transfer shall be void.

            10.6. Binding Effect/Merger or Reorganization. This Agreement shall
be binding upon and inure to the benefit of the Executive and the Bank.
Accordingly, the Bank 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 Bank under this Agreement. In the alternative, in the event that a holding
company is formed to own the Bank, it may agree to assume and discharge the
obligation of the Bank under this Agreement. Upon the occurrence of such event,
the term "Bank" as used in this Agreement shall be deemed to refer to such
surviving or successor firm, person, entity or corporation, or the holding
company. as the case may be.

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

            10.8. Partial Invalidity. If any terms, 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.

            10.9. 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 including that certain agreement of even
effective date tha in its recitals states that the Executive has been serving
the Bank since October 6, 1995. This Agreement 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

                                       8
<PAGE>

set forth herein, and that no other agreement, statement, or promise not
contained in this Agreement shall be valid or binding on either party.

            10.10. 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.

            10.11. 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.

            10.12. 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.

            10.13 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 Board of Governors of the Federal Reserve System, Federal
Deposit Insurance Corporation, Office of the Comptroller of the Currency, or any
other regulatory agency or governmental authority having jurisdiction over the
Bank or the Holding Company, shall govern the validity, interpretation,
construction and effect of this Agreement.

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

BANK                                        EXECUTIVE

Bank of Visalia

By: Walter Dwelle                           /s/ Donald A. Gilles
---------------------------                 -------------------------------
Chairman of the Board                       Donald A. Gilles

Executed on:_______________________         Executed on:________________________

                                       9
<PAGE>

Exhibit 10.3

                                   Schedule A

                                  DONALD GILLES

                            Date of Birth: 6/30/1943

                                Hire Date: April-95

                   Normal Retirement Date: 3/31/2010*

<TABLE>
<CAPTION>
                                                       Applicable                       Service
       From                      To                    Percentage        Service      Cumulative      age
       ----                      --                    ----------        -------      ----------      ---
<S>                      <C>                                <C>            <C>            <C>        <C>
April 1, 1995            February 29, 2000                  0%             4.9            4.9

March 1, 2000            February 28, 2001                  10%            1.0            5.9        57.7

March 1, 2001            February 28, 2002                  20%            1.0            6.9        58.7

March 1, 2002            February 28, 2003                  30%            1.0            7.9        59.7

March 1, 2003            February 29, 2004                  40%            1.0            8.9        60.7

March 1, 2004            February 28, 2005                  50%            1.0            9.9        61.7

March 1, 2005            February 28, 2006                  60%            1.0            10.9       62.7

March 1, 2006            February 28, 2007                  70%            1.0            11.9       63.7

March 1, 2007            February 29, 2008                  80%            1.0            12.9       64.7

March 1, 2008            February 28, 2009                  90%            1.0            13.9       65.7

March 1, 2009            February 28, 2010                  100%           1.0            14.9       66.7

March 1, 2010              March 31, 2010                   100%           0.1            15.0       66.8
</TABLE>

      *Normal Retirement Date is defined by paragraph 1.11 of the Agreement to
be the later of Executive's 65th birthday or the date on which he completes 15
years of service, unless he is terminated pursuant to Change in control - in
which circumstance the Normal Retirement Date is determined in accordance with
paragraph 5.4 of this Agreement.

                                       10
<PAGE>

Exhibit 10.3

                                   SCHEDULE B
                               EXECUTIVE BENEFITS

If the Executive elects Normal Retirement, or if the Executive's termination is
to be treated as Normal Retirement under the Agreement, The Employer shall pay
to the Executive pursuant to the Agreement during the Executive's lifetime, the
lesser of sixty-five percent (65%) of the average of the Executive's five
highest years of total W-2 compensation or an amount equal to One Hundred Two
Thousand Four Hundred Eighty Two dollars ($102, 482.00) per year.

If the Executive elects Early Retirement on or after his 65th birthday, He shall
be paid the Applicable Percentage of the Executive Benefit shown in the
following table that corresponds with the effective date of his Retirement:

                                                               Annual Executive
       Age        From                 To                           Benefit
       ---        ----                 --                           -------
       65         June 30, 2007        February 29, 2008            94,436
       65         March 1, 2008        February 28, 2009            98,213
       65         March 1, 2009        February 28, 2010            102,142
       65         March 1, 2010        March 31, 2010               102,482

For example, assume the Executive elects Early Retirement on October 1, 2008, at
age 65:

<TABLE>
<S>                                   <C>        <C>
Executive Benefit                     $98,213
Applicable Percentage:                    .90    (multiplied by Applicable Percentage at 10/1/08)
                                      -------

Adjusted benefit:                     $88,392    (equals Executive Benefit Payable)
</TABLE>

If the Executive elects Early Retirement prior to his 65th birthday, the
Applicable Percentage of One Hundred Two Thousand Four Hundred Eighty Two
dollars ($102,482.00) shall be decreased by a percentage equal to five percent,
multiplied times the number of years between the Executive's age at Early
Retirement and the Executive's age on his Normal Retirement Date.

For Example, assume the Executive retires in his 64th year, on October 1, 2007,
thirty months before Normal Retirement Date, March 2010:

<TABLE>
<S>                                   <C>        <C>
Target Benefit                        $102,482
Applicable Percentage:                     .80   (multiplied by Applicable Percentage at 10/1/07)
                                      --------

Adjusted benefit:                     $ 81,986   (equal adjusted benefit)
Benefit reduction factor::                .875   (less 2.5 years X 5%, Early Retirement reduction)
                                      --------
Eligible Benefit:                     $ 71,738
</TABLE>

Annual Executive Benefits payable under the Agreement will be paid in twelve
(12) equal monthly installments, commencing 30 days after Executive's date of
termination. Executive Benefits, once commencing, shall continue until the death
of the Executive.

                                       11

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