Document:

EXHIBIT 10.19

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT is made and entered into as of August 17, 2000 by and
between AMERICAN RIVER BANK, a California banking corporation ("Employer"), and
William L. Young ("Employee").

                                    RECITALS

         WHEREAS, Employer and Employee desire to enter into an agreement for
the purposes of engaging the services of Employee by reason of his experience,
training and ability in the commercial banking industry;

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, the Employer and Employee agree as follows:

                                    AGREEMENT

         1.  TERM OF EMPLOYMENT. Employer employs Employee and Employee hereby
accepts employment with Employer, upon the terms and conditions hereinafter set
forth, for a period of two (2) years from the date hereof. Upon the occurrence
of the second annual anniversary date of this Agreement, the term of this
Agreement shall be automatically extended for an additional two (2) year term,
and on each anniversary date thereafter, the term of this Agreement shall be
deemed extended for an additional one (1) year term upon the affirmative vote of
a majority of the Board of Directors of Employer, subject to the termination
provisions of paragraph 16.

         2.  DUTIES AND OBLIGATIONS OF EMPLOYEE. Employee shall serve as the
President and Chief Executive Officer of Employer and shall perform the
customary duties of such office in the commercial banking industry as may from
time to time be reasonably requested of him by the Board of Directors of
Employer in addition to the following:

             (a)  Acting as a member of the Board of Directors and all other
board committees to which Employee may be appointed or elected;

             (b)  Participating in community affairs which are beneficial to the
Employer;

             (c)  Maintaining a good relationship with Employer's Board of
Directors and shareholders;

             (d)  Maintaining a good relationship with regulatory agencies and
governmental authorities having jurisdiction over Employer;

             (e)  Providing leadership in planning and implementing the conduct
of business and the affairs of the Employer; and

             (f)  Hiring and firing of all employees, subject at all times to
the policies and directives set by the Employer's Board of Directors.

         3.  DEVOTION TO EMPLOYER'S BUSINESS.

             (a)  Employee shall devote his full business time, ability, and
attention to the business of Employer during the term of this Agreement and
shall not during the term of this Agreement, without the prior written consent
of Employer's Board of Directors, engage in any other business activities,
duties, or pursuits whatsoever, or directly or indirectly render any services of
a business, commercial, or professional nature to any other person or
organization, whether for compensation or otherwise, which are in conflict with
Employer's business. However, the expenditure of

                                       38
<PAGE>

reasonable amounts of time for educational, charitable, or professional
activities shall not be deemed a breach of this Agreement if those activities do
not materially interfere with the services required of Employee under this
Agreement. Nothing in this Agreement shall be interpreted to prohibit Employee
from making passive personal investments. However, Employee shall not directly
or indirectly acquire, hold, or retain any material interest in any business
competing with or similar in nature to the business of Employer.

             (b)  Employee agrees to conduct himself at all times with due
regard to public conventions and morals. Employee further agrees not to do or
commit any act that will reasonably tend to shock or offend the community, or to
prejudice Employer or the banking industry in general.

             (c)  Employee hereby represents and agrees that the services to be
performed under the terms of this Agreement are of a special, unique, unusual,
extraordinary, and intellectual character that gives them a peculiar value, the
loss of which cannot be reasonably or adequately compensated in damages in an
action at law. Employee therefore expressly agrees that Employer, in addition to
any other rights or remedies that Employer may possess, shall be entitled to
injunctive and other equitable relief to prevent or remedy a breach of this
Agreement by Employee.

         4.  NONCOMPETITION BY EMPLOYEE. Employee shall not, during the term of
this Agreement, directly or indirectly, either as an employee, employer,
consultant, agent, principal, stockholder, officer, director, or in any other
individual or representative capacity, engage or participate in any competitive
banking or financial services business.

         5.  INDEMNIFICATION FOR NEGLIGENCE OR MISCONDUCT. Employee shall
indemnify and hold Employer harmless from all liability for loss, damage, or
injury to persons or property resulting from the gross negligence or intentional
misconduct of the Employee.

         6.  DISCLOSURE OF INFORMATION. Employee shall not, either before or
after termination of this Agreement, disclose to anyone any information relating
to Employer or any financial information, trade or business secrets, customer
lists, computer software or other information not otherwise publicly available
concerning the business or operations of Employer. Employee recognizes and
acknowledges that any financial information concerning any of Employer's
customers, as it may exist from time to time, is strictly confidential and is a
valuable, special and unique asset of Employer's business. Employee shall not,
either before or after termination of this Agreement, disclose to anyone said
financial information or any part thereof, for any reason or purpose whatsoever.
This paragraph 6 shall survive the expiration or termination of this Agreement.

         7.  WRITTEN OR PRINTED MATERIAL. All written or printed materials,
notebooks and records used by Employee in performing duties for Employer, other
than Employee's personal notes and diaries, are and shall remain the sole
property of Employer. Upon termination of employment, Employee shall promptly
return all such material (including all copies) to Employer. This paragraph 7
shall survive expiration or termination of this Agreement.

         8.  SURETY BOND. Employee agrees that he will furnish all information
and take any other steps necessary from time to time to enable Employer to
obtain or maintain a fidelity bond conditional on the rendering of a true
account by Employee of all monies, goods, or other property which may come into
the custody, charge, or possession of Employee during the term of his
employment. The surety company issuing the bond and the amount of the bond must
be acceptable to Employer. All premiums on the bond shall be paid by Employer.
If Employee cannot qualify for a surety bond at any time during the term of this
Agreement, Employer shall have the option to terminate this Agreement
immediately without any obligation to pay severance benefits to Employee in
accordance with paragraph 16 (d) of this Agreement.

                                       39
<PAGE>

         9.  BASE SALARY. In consideration for the services to be performed
hereunder, Employee shall receive a salary at the rate of One Hundred Fifty
Thousand Dollars ($150,000) per annum, payable in installments during the term
of this Agreement of approximately Six Thousand Two Hundred Fifty Dollars and no
cents on the first and fifteenth days of each month, subject to applicable
adjustments for withholding taxes and prorations for any partial employment
period. Employee shall receive such annual adjustments in salary, if any, as may
be determined by Employer's Board of Directors, in its sole discretion,
resulting from the Board of Directors annual review of Employee's compensation
each year during the term of this Agreement.

         10. SALARY CONTINUATION DURING DISABILITY. If Employee for any reason
(except as expressly provided below) becomes temporarily or permanently disabled
so that he is unable to perform the duties under this Agreement, Employer agrees
to pay Employee the base salary otherwise payable to Employee pursuant to
paragraph 9 of this Agreement, reduced by the amounts received by Employee from
state disability insurance, or worker's compensation or other similar insurance
benefits through policies provided by Employer, for a period of six (6) months
from the date of disability.

         For purposes of this paragraph 10, "disability" shall be defined as
provided in Employer's disability insurance program. Notwithstanding anything
herein to the contrary, Employer shall have no obligation to make payments for a
disability resulting from the deliberate, intentional actions of Employee, such
as, but not limited to, attempted suicide or chemical dependence of Employee.

         11. INCENTIVE COMPENSATION. Employee shall be entitled to participate
in Employer's Incentive Compensation Plan (the "Plan"), a copy of which is
attached hereto as Exhibit A and incorporated herein by reference, and receive
incentive compensation in accordance with the Plan, subject to the right of the
Board of Directors in its sole discretion to modify the terms and provisions of
the Plan each year during the term of this Agreement in connection with its
review of Employee's performance and Employer's results of operations. Under no
circumstance shall a right to receive incentive compensation exist in favor of
or accrue to or for the benefit of Employee prior to actual receipt of a
distribution, if any, under the Plan.

         12. STOCK OPTIONS. Employer has previously granted stock options to
Employee evidenced by one or more stock option agreements attached hereto as
Exhibit B and incorporated herein by this reference. Employer may, but is not
obligated to, grant additional stock options to Employee in the future which
grants, if any, shall be within the sole discretion of the Board of Directors of
Employer and subject to the terms and provisions of Employer's stock option plan
pursuant to which such grants are effected. Any such grants shall be evidenced
by a stock option agreement entered into between Employer and Employee pursuant
to such stock option plan and a copy of each such stock option agreement shall
be attached to this Agreement as an exhibit. Notwithstanding any provision of
any such stock option plan or any such stock option agreement to the contrary,
no rights of employment shall be conferred upon Employee or result from any such
stock option plan or any stock option agreement entered into between Employer
and Employee. Any employment rights and corresponding duties of Employee
pursuant to his employment by Employer shall be limited to and interpreted
solely in accordance with the terms and provisions of this Agreement.

         13. OTHER BENEFITS. Employee shall be entitled to those employee
benefits adopted by Employer for all employees of Employer, subject to
applicable qualification requirements and regulatory approval requirements, if
any. Employee shall be further entitled to the following additional benefits
which shall supplement or replace, to the extent duplicative of any part or all
of the general employee benefits, the benefits otherwise provided to Employee:

             (a)  VACATION. Employee shall be entitled to four (4) weeks annual
vacation leave at his then existing rate of base salary each year during the
term of this Agreement. Employee may be absent from his employment for vacation
as long as such leave is reasonable and does not jeopardize his responsibilities
and duties specified in this Agreement. The length of vacation should not exceed
two (2) weeks without the approval of Employer's executive committee of the
Board of Directors. Employee shall take at least two (2) consecutive weeks of
vacation as required by the California Superintendent of Banks. Accrual of
vacation time, if any, shall be determined in accordance with Employer's
personnel policies.

                                       40
<PAGE>

             (b)  AUTOMOBILE ALLOWANCE AND INSURANCE. Employer shall acquire or
otherwise make available to Employee for his business and incidental personal
use an automobile, suitable to his position, and (i) maintain it in good
condition and repair; and (ii) provide public liability insurance and property
damage insurance policies with insurer(s) acceptable to Employer and with
coverages in such amounts as may be acceptable to Employer from time to time.

         14. ANNUAL PHYSICAL EXAMINATION. Employer shall pay or reimburse
Employee for the cost of an annual physical examination conducted by a
California licensed physician selected by Employee and reasonably acceptable to
Employer.

         15. BUSINESS EXPENSES. Employee shall be reimbursed for all ordinary
and necessary expenses incurred by Employee in connection with his employment.
Employee shall also be reimbursed for reasonable expenses incurred in activities
associated with promoting the business of Employer, including expenses for
entertainment, travel, conventions, educational programs and similar items, and
with the prior approval of Employer's Executive Committee, expenses for club
memberships. Employer will pay for or will reimburse Employee for such expenses
upon presentation by Employee from time to time of receipts or other appropriate
evidence of such expenditures.

         16. TERMINATION OF AGREEMENT.

             (a)  AUTOMATIC TERMINATION. This Agreement shall terminate
automatically without further act of the parties and immediately upon the
occurrence of any one of the following events, subject to either party's right,
without any obligation whatsoever, to waive an event reasonably susceptible of
waiver, and the obligation of Employer to pay the amounts which would otherwise
be payable to Employee under this Agreement through the end of the month in
which the event occurs, except that only in the event of termination based upon
subparagraphs (1), (4) or (12, to the extent of Employer's breach) below shall
Employee be entitled to receive severance payments based upon automatic
termination pursuant to paragraph 16 (d) of this Agreement:

                           (1)  The occurrence of circumstances that make it
                                impossible or impractical for Employer to
                                conduct or continue its business.

                           (2)  The death of Employee.

                           (3)  The loss by Employee of legal capacity.

                           (4)  The loss by Employer of legal capacity to
                                contract.

                           (5)  The willful, intentional and material breach of
                                duty by Employee in the course of his
                                employment.

                           (6)  The habitual and continued neglect by Employee
                                of his employment duties and obligations under
                                this Agreement.

                           (7)  The continuous mental or physical incapacity of
                                Employee, subject to Employee's rights under
                                paragraph 10 of this Agreement.

                           (8)  Employee's willful and intentional violation of
                                any State of California or federal banking laws,
                                or of the Bylaws, rules, policies or resolutions
                                of Employer or its parent holding company, or of
                                the rules or regulations of the California
                                Superintendent of Banks or the Federal Deposit
                                Insurance Corporation, or other regulatory
                                agency or governmental authority having
                                jurisdiction over Employer or its parent holding
                                company.

                                       41
<PAGE>

                           (9)  The determination by a state or federal banking
                                agency or governmental authority having
                                jurisdiction over Employer that Employee is not
                                suitable to act in the capacity for which he is
                                employed by Employer.

                           (10) Employee is convicted of any felony or a crime
                                involving moral turpitude or commits a
                                fraudulent or dishonest act.

                           (11) Employee discloses without authority any secret
                                or confidential information concerning Employer
                                or takes any action which Employer's Board of
                                Directors determines, in its sole discretion and
                                subject to good faith, fair dealing and
                                reasonableness, constitutes unfair competition
                                with or induces any customer to breach any
                                contract with Employer.

                           (12) Either party breaches the terms or provisions of
                                this Agreement.

             (b)  TERMINATION BY EMPLOYER. Employer may, at its election and in
its sole discretion, terminate this Agreement for any reason, or for no reason,
by giving not less than thirty (30) days' prior written notice of termination to
Employee, without prejudice to any other remedy to which Employer may be
entitled either at law, in equity or under this Agreement. Upon such
termination, Employee shall be entitled to receive any employment benefits which
shall have accrued prior to such termination and the severance pay specified in
paragraph 16 (d) below.

             (c)  TERMINATION BY EMPLOYEE. This Agreement may be terminated by
Employee for any reason, or no reason, by giving not less than thirty (30) days'
prior written notice of termination to Employer. Upon such termination, all
rights and obligations accruing to Employee under this Agreement shall cease,
except that such termination shall not prejudice Employee's rights regarding
employment benefits which shall have accrued prior to such termination and any
other remedy which Employee may have at law, in equity or under this Agreement,
which remedy accrued prior to such termination.

             (d)  SEVERANCE PAY - TERMINATION BY EMPLOYER. In the event of
termination by Employer pursuant to paragraph 16 (b) or automatic termination
based upon paragraph 16 (a) (1), (4) or (12, to the extent of Employer's breach)
of this Agreement, Employee shall be entitled to receive severance pay at
Employee's rate of salary immediately preceding such termination equal to six
(6) months' salary (in addition to incentive compensation or bonus payments due
Employee, if any), payable in lump sum. Notwithstanding the foregoing, in the
event of a "change in control" as defined in subparagraph (e) below, Employee
shall not be entitled to severance pay pursuant to this subparagraph (d) and any
rights of Employee to severance pay shall be limited to such rights as are
specified in subparagraph (e) below. Employee acknowledges and agrees that
severance pay pursuant to this subparagraph (d) is in lieu of all damages,
payments and liabilities on account of the early termination of this Agreement
and the sole and exclusive remedy for Employee terminated at the will of
Employer pursuant to paragraph 16(b) or pursuant to certain provisions of
paragraph 16 (a) described herein.

             (e)  SEVERANCE PAY - CHANGE IN CONTROL. In the event of a "change
in control" as defined herein and within a period of two (2) years following
consummation of such a change in control (i) Employee's employment is
terminated; or (ii) without Employee's consent there occurs (A) any adverse
change in the nature and scope of Employee's position, responsibilities, duties,
salary, benefits or location of employment, or (B) any event which reasonably
constitutes a demotion, significant diminution or constructive termination (by
resignation or otherwise) of Employee's employment, then Employee shall be
entitled to receive severance pay in addition to any bonus or incentive
compensation payments due Employee. Any such severance pay due Employee shall be
in an amount equal to one and one-half (1 1/2) times Employee's average annual
compensation for the five (5) years immediately preceding the change in control.
Employee's average annual compensation shall be the average of the aggregate
compensation paid by

                                       42
<PAGE>

Employer to Employee which was includable in Employee's gross income for federal
income tax purposes adjusted for amount deferred pursuant to the Employer's
Deferred Compensation Plan for the five (5) tax years ending immediately prior
to the change in control divided by the number five (5).

         If all or any portion of the amounts payable to Employee pursuant to
this paragraph 16 (e) alone or together with other payments which Employee has
the right to receive from Employer, constitute "excess parachute payments"
within the meaning of Section 280G of the Internal Revenue Code of 1986, as
amended (the "Code"), that are subject to the excise tax imposed by Section 4999
of the Code (or similar tax and/or assessment), such amounts payable hereunder
shall be reduced to the extent necessary, after first applying any similar
reduction in payments to be received from any other plan or program sponsored by
Employer from which Employee has a right to receive payments subject to Sections
280G and 4999 of the Code, including without limitation any Salary Continuation
Agreement made between Employer and Employee, so as to cause a reduction of any
excise tax pursuant to Section 4999 of the Code to equal "zero".

         Any such severance shall be payable in lump sum. Such severance
payment, if any, shall be in lieu of all damages, payments and liabilities on
account of the events described above for which such severance payment, if any,
may be due Employee and any severance payment rights of Employee under paragraph
16 (d) of this Agreement. This subparagraph (e) shall be binding upon and inure
to the benefit of the parties and any successors or assigns or employer or any
"person" as defined herein.

         Notwithstanding the foregoing, Employee shall not be entitled to
receive nor shall Employer, its successors, assigns or any "person" as defined
herein be obligated to pay severance payments pursuant to this subparagraph (e)
in the event of an occurrence described in paragraph 16, subparagraphs (5), (6),
(8), (10), (11) or (12, to the extent of an Employee breach), or in the event of
a determination pursuant to subparagraph (9) thereof, or in the event Employee
terminates employment in accordance with paragraph 16 (c) and the termination is
not a result of or based upon the occurrence of any event described in paragraph
16 (e)(ii).

         A "change in control" of Employer for purposes of this Agreement and
subparagraph (e) shall mean the occurrence of any of the following events with
respect to Employer (with the term "Employer" being defined for such a change in
control to include any parent 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 Employer or any stock exchange on which Employer's shares are
listed which requires the reporting of a change in control; (ii) any merger,
consolidation or reorganization of Employer in which Employer does not survive;
(iii) any sale, lease, exchange, mortgage, pledge, transfer or other disposition
(in one transaction or a series of transactions) of any assets of Employer
having an aggregate fair market value of more than fifty percent (50%) of the
total value of the assets of Employer, reflected in the most recent balance
sheet of Employer; (iv) a transaction whereby any "person" (as such term is used
in the Exchange Act or any individual, corporation, partnership, trust or any
other entity) is or becomes the beneficial owner, directly or indirectly, of
securities of Employer representing more than 50% of the combined voting power
of Employer's then outstanding securities; (v) if in any one year period,
individuals who at the beginning of such period constitute the Board of
Directors of Employer cease for any reason to constitute at least a majority
thereof, unless the election, or the nomination for election by Employer's
shareholders, of each new director is approved by a vote of a least
three-quarters of the directors then still in office who were directors at the
beginning of the period; (iv) a majority of the members of the Board of
Directors of Employer in office prior to the happening of any event determines
in its sole discretion that as a result of such event there has been a change in
control.

         17. NOTICES. Any notices to be given hereunder by either party to the
other shall be in writing and may be transmitted by personal delivery or by U.S.
mail, registered or certified, postage prepaid with return receipt requested.
Mailed notices shall be addressed to the parties at the addresses listed as
follows:

                                       43
<PAGE>

         Employer:   Principal place of business

         Employee:   Principal place of business as shown in Employer's
                     Personnel Records and Employee's personal file.

         Each party may change the address for receipt of notices by written
notice in accordance with this paragraph 17. Notices delivered personally shall
be deemed communicated as of the date of actual receipt; mailed notices shall be
deemed communicated as of three (3) days after the date of mailing.

         18. ARBITRATION. 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 first by resort to
non-binding mediation with such mediation service or mediator as the parties may
mutually agree upon. If the parties cannot agree upon such mediation service or
mediator and submit the matter to mediation within thirty (30) days of notice of
demand to mediate given by a party to the other party, or if the matter is not
resolved in a manner satisfactory to the parties within sixty (60) days of
submission of the matter to the mediation service or mediator, then in that
event, the matter 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"), presently located at
111 Pine Street, Suite 710, in San Francisco, California, in accordance with the
rules and procedures of JAMS then in effect. In the event JAMS is unable or
unwilling to conduct such arbitration, 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"), presently located
at 417 Montgomery Street, in San Francisco, California, shall conduct such
binding arbitration in accordance with the rules and procedures of the AAA then
in effect. 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. 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.

         19. ATTORNEYS' FEES AND COSTS. In the event of litigation, arbitration
or any other action or proceeding between the parties to interpret or enforce
this Agreement or any part thereof or otherwise arising out of or relating to
this Agreement, the prevailing party shall be entitled to recover its costs
related to any such action or proceeding and its reasonable fees of attorneys,
accountants and expert witnesses incurred by such party in connection with any
such action or proceeding. The prevailing party shall be deemed to be the party
which obtains substantially the relief sought by final resolution, compromise or
settlement, or as may otherwise be determined by order of a court of competent
jurisdiction in the event of litigation, an award or decision of one or more
arbitrators in the event of arbitration, or a decision of a comparable official
in the event of any other action or proceeding. Every obligation to indemnify
under this Agreement includes the obligation to pay reasonable fees of
attorneys, accountants and expert witnesses incurred by the indemnified party in
connection with matters subject to indemnification.

         20. ENTIRE AGREEMENT. This Agreement supersedes any and all other
agreements, either oral or in writing, between the parties with respect to the
employment of Employee by Employer and contains all of the covenants and
agreements between the parties with respect to the employment of Employee by
Employer. 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.

         21. MODIFICATIONS. Any modification of this Agreement will be effective
only if it is in writing and signed by a party or its authorized representative.

                                       44
<PAGE>

         22. WAIVER. The failure of either party to insist on strict compliance
with any of the terms, provisions, covenants, or conditions of this Agreement by
the other party shall not be deemed a waiver of any term, provision, covenant,
or condition, individually or in the aggregate, unless such waiver is in
writing, nor shall any waiver or relinquishment of any right or power at any one
time or times be deemed a waiver or relinquishment of that right or power for
all or any other times.

         23. PARTIAL INVALIDITY. If any provision in this Agreement is held by a
court of competent jurisdiction to be invalid, void, or unenforceable, the
remaining provisions shall nevertheless continue in full force and effect
without being impaired or invalidated in any way.

         24. INTERPRETATION. This Agreement shall be construed without regard to
the party responsible for the preparation of the Agreement and shall be deemed
to have been prepared jointly by the parties. Any ambiguity or uncertainty
existing in this Agreement shall not be interpreted against either party, but
according to the application of other rules of contract interpretation, if an
ambiguity or uncertainty exists.

         25. GOVERNING LAW AND VENUE. The laws of the State of California, other
than those laws denominated choice of law rules, shall govern the validity,
construction and effect of this Agreement. Any action which in any way involves
the rights, duties and obligations of the parties hereunder shall be brought in
the courts of the State of California and venue for any action or proceeding
shall be in Sacramento County or in the United States District Court for the
Eastern District of California, and the parties hereby submit to the personal
jurisdiction of said courts.

         26. PAYMENTS DUE DECEASED EMPLOYEE. If Employee dies prior to the
expiration of the term of his employment, any payments that may be due Employee
from Employer under this Agreement as of the date of death shall be paid to
Employee's executors, administrators, heirs, personal representatives,
successors, or assigns.

         IN WITNESS WHEREOF, the parties have executed this Agreement consisting
of twelve pages in the City of Sacramento, County of Sacramento, State of
California as of the date set forth above.

         EMPLOYER:                                EMPLOYEE:

         AMERICAN RIVER BANK

         By: /s/ CHARLES D. FITE                  /s/ WILLIAM L. YOUNG
            -----------------------               -------------------------
            Charles D. Fite                       William  L. Young
            Chairman of the Board

                                       45AMERICAN RIVER HOLDINGS

                           INCENTIVE COMPENSATION PLAN

                          YEAR ENDED DECEMBER 31, 2000

INTRODUCTION

         The establishment of the American River Holdings (ARH) Incentive
Compensation Plan (the "Plan") for the year ended December 31, 2000 by the Board
of Directors is intended to provide the employees of the companies of American
River Holdings with incentive compensation for achieving exemplary performance
standards during the year. It is the intention of the Board of Directors to
review the Plan for compliance with American River Holdings current operating
objectives and to evaluate the corresponding cost-benefit relationship achieved
by the Plan. At the sole and absolute discretion of the Board of Directors, the
Plan may be amended, revised or terminated at any time. The policy of the Board
of Directors will be to review the Plan annually.

         Eligibility for incentive compensation under the Plan is dependent upon
achieving "MINIMUM FINANCIAL PERFORMANCE STANDARDS" SPECIFIED BY THE PLAN. Each
company will have its own "minimum financial performance standards." If the
"minimum financial performance standards" are not achieved, then no incentive
compensation will be paid to employees of that company for that plan year. The
Board of Directors retains the right to consider extraordinary circumstances
that may have contributed to any company not meeting one or more of the minimum
financial performance standards. While under no obligation to do so, the Board
of Directors may elect in its sole and absolute discretion to subsequently award
incentive compensation as a direct result of the extraordinary circumstances on
such terms and conditions as the Board of Directors may determine. Examples of
extraordinary circumstances would include but are not limited to:

         o  Natural Disasters
         o  Mergers and acquisitions
         o  Discontinued operations
         o  Organizational restructuring
         o  Development of "new" business components
         o  Acquisition or sale of capital assets

         While not intended to be all-inclusive, these examples are indicative
of the types of "material" circumstances that may give rise to possible
consideration by the Board of Directors. Further, the event or events that the
Board of Directors may consider, both in the form of extraordinary income and
expense, must have occurred after the beginning of the current plan

                                       46
<PAGE>

AMERICAN RIVER HOLDINGS
INCENTIVE COMPENSATION PLAN
YEAR ENDED DECEMBER 31, 2000
(CONTINUED)

year and not have been included in the adopted Annual Business Plan for that
year. Further, net income for purposes of measuring compliance with "minimum
financial performance standards" shall only include income derived from
recurring operations. Extraordinary income that would be excluded from net
income for measurement purposes would include gains resulting from the sale of
"material" capital assets, business components and branches, loans and
investments.

         Once the Board of Directors has determined eligibility for incentive
compensation for each company, the actual amount paid to any employee will
result directly from the annual evaluation prepared for that employee.
Therefore, incentive compensation paid will reflect attainment of both corporate
goals and personal goals for the applicable employee. ARH will be able to
reallocate unearned incentive compensation within or between companies subject
to the maximum available under the plan. The Plan is designed to promote
exemplary performance and the enhancement of shareholder value.

                                       47
<PAGE>

AMERICAN RIVER BANK (ARB)
MINIMUM FINANCIAL PERFORMANCE STANDARDS (MFPS)

--------------------------------------------------------------------------------
                                             Per Plan (1)   MFPS (1)  Target (1)
                                             ------------  ---------  ----------

--------------------------------------------------------------------------------
Deposit Growth Rate                               8.7%         8.0%       10%
--------------------------------------------------------------------------------
Total Loan Growth Rate                             10%          10%       15%
--------------------------------------------------------------------------------
Commercial Loan Growth Rate (2)                  13.8%          15%       20%
--------------------------------------------------------------------------------
Interest Margin / Average Earning Assets         5.41%         5.4%      5.5%
--------------------------------------------------------------------------------
Return on Beginning Equity (FAS 115 Adjusted)    22.2%        21.5%       23%
--------------------------------------------------------------------------------
Return on Average Assets                         1.77%        1.65%     1.80%
--------------------------------------------------------------------------------
Efficiency Ratio                                   45%          47%       45%
--------------------------------------------------------------------------------
Net Charge offs to Average Loans                  .25%         .50%      .25%
--------------------------------------------------------------------------------
Classified Assets to Equity                        20%          40%       20%
--------------------------------------------------------------------------------
CAMELS Rating                                       1            2         1
--------------------------------------------------------------------------------

(1) The metrics above are after tax and Pre Incentive
(2) The loan growth minimums exclude participation's purchased by ARB

                                       48
<PAGE>

FIRST SOURCE CAPITAL (FSC)
MINIMUM FINANCIAL PERFORMANCE STANDARDS (MFPS)

                                         PER PLAN (1)    MFPS (1)    TARGET (1)

        Net Income                        $335,000      $135,000      $285,000

        Number of vendors averaging          N/A            5            10
        2 deals per month

The incentive Pool for FIRST SOURCE CAPITAL will be per American River Holdings
Plan adjusted as follows:

                                                                  PRE INCENTIVE
                                                                    NET INCOME

          Pool per American River Holdings Plan         X100%        $285,000
                                                        X 85%        $235,000
                                                        X 70%        $185,000
                                                        X 50%        $135,000

(1)  The above is after tax and Pre Incentive

                                       49
<PAGE>

NORTH COAST BANK (NCB)
MINIMUM FINANCIAL PERFORMANCE STANDARDS (MFPS)

--------------------------------------------------------------------------------
                                             Per Plan (1)   MFPS (1)  Target (1)
                                             ------------  ---------  ----------

--------------------------------------------------------------------------------
Core Deposit Growth Rate (Non-CD)                  15%          16%       20%
--------------------------------------------------------------------------------
Total Loan Growth Rate                             21%          21%       25%
--------------------------------------------------------------------------------
Commercial Loan Growth Rate                      14.7%          15%       20%
--------------------------------------------------------------------------------
Interest Margin / Average Earning Assets          6.1%         6.0%      6.1%
--------------------------------------------------------------------------------
Return on Beginning Equity (FAS 115 Adjusted)    11.8%       11.84%     13.5%
--------------------------------------------------------------------------------
Return on Average Assets                          .90%         .90%      1.0%
--------------------------------------------------------------------------------
Efficiency Ratio                                 69.3%          69%       65%
--------------------------------------------------------------------------------
Net Charge offs to Average Loans                  .25%         .50%      .25%
--------------------------------------------------------------------------------
Classified Assets to Equity                        20%          40%       25%
--------------------------------------------------------------------------------
CAMELS Rating                                       2            2         2
--------------------------------------------------------------------------------

(1)  The metrics above are after tax Pre Incentive/Pre Merger Expense

                                       50
<PAGE>

AMERICAN RIVER HOLDINGS
CONSOLIDATED
MINIMUM FINANCIAL PERFORMANCE STANDARDS

                                    Per Plan (1)    MFPS (1)(3)   Target (1)
                                    ------------   ------------   -----------

Return on Average Equity               18.45%          17.46%        19.00%
Basic Earnings Per Share (2)           $1.86           $1.76         $1.90
Efficiency Ratio                        51.5%           53.3%         51.5%
BOPEC Rating                                               2             1

(1)  The metrics above are after tax Pre Incentive/Pre Merger Expense
(2)  Future years we will target a 15% EPS growth rate. Due to the NCB deal 2000
     will be dilutive to ARH
(3)  The MFPS of each of the other companies will be incorporated within the
     Performance Evaluation of the CEO of ARH.

                                       51
<PAGE>

                           INCENTIVE 2000 ALLOCATIONS
<TABLE>
<CAPTION>

                                          ARB           FSC          NCB           ARH       Consolidated
<S>                                   <C>           <C>          <C>          <C>            <C>
 S1  Net prior to incentive & Taxes   $ 3,676,621   $  335,342   $  331,604   $  (279,732)   $ 4,063,835

  S  Adjust fsc to reasonable                   0     (200,000)           0

     Adjusted net income              $ 3,676,621   $  135,342   $  331,604   $  (279,732)   $ 3,863,835

     Incentive calculation 18% of consolidated                                               $   695,490
       less 401k contribution
                                                                                             $  (100,000)
     ----------------------------------------------------------------------------------------------------
      Incentive Pool                                                                         $   595,490
     ----------------------------------------------------------------------------------------------------

     ----------------------------------------------------------------------------------------------------
                                          ARB           FSC          NCB           ARH       Consolidated
      Potential Allocation Potential         58.0%         6.0%        11.3%         24.7%         100.0%
      Allocation Pool                     345,384       35,729       67,290       147,086        595,490

      CEO                                    29.0%                     37.2%         85.2%
      CFO/COO                                             89.0%         0.0%         14.8%
      Other                                  71.0%        11.0%        62.8%          0.0%
                                            100.0%       100.0%       100.0%        100.0%

     ----------------------------------------------------------------------------------------------------
  E   CEO                             $   100,161                $   25,032   $    125,317
  F   CFO/COO                                  --   $   31,799           --   $     21,769
      Other                           $   245,223   $    3,930   $   42,258             --
                                      $   345,384   $   35,729   $   67,290   $    147,086   $   595,490
     ----------------------------------------------------------------------------------------------------
</TABLE>

 S1
 S2  Income from Incentive 2000 Sheet
         Adjust fsc to more reasonable target

 E   Incentive for ARB
         Assuming 2000 Budget is met                                100,000
            per executive comm. 100M Young                          231,000
            per 2000 budget others w/o Derenzo ($248M-$17M)      $  331,000
               Targeted Incentive ARB

 F   Incentives FSC, ARH
         FSC Per contract Christensen 10% of net if net is
            Greater than 80% of Strategic plan
            (393Mx80%=$314); $316>$314 10% of net                $   31,600

     ARH
         Per executive committee Taber 125M                      $  125,000
         Per 2000 Budget Derenzo (83Mx 19.5%)                    $   17,000

                                       52
<PAGE>
<TABLE>
<CAPTION>

Impact of $100,000 additional net income

      Additional Net Income                                                                  $   100,000
      Incentive calculation 18%                                                                       18%
     ----------------------------------------------------------------------------------------------------
      Incentive Pool                                                                         $    18,000
     ----------------------------------------------------------------------------------------------------

                                          ARB           FSC          NCB           ARH       Consolidated
<S>                                   <C>           <C>          <C>          <C>            <C>
     ----------------------------------------------------------------------------------------------------
      Potential Allocation                   58.0%         6.0%        11.3%         24.7%         100.0%
      Potential Allocation Pool            10,440        1,080        2,034         4,446         18,000

      CEO                                    29.0%                     37.2%         85.2%
      CFO/COO                                             89.0%         0.0%         14.8%
      Other                                  71.0%        11.0%        62.8%          0.0%
                                            100.0%       100.0%       100.0%        100.0%

     ----------------------------------------------------------------------------------------------------
      CEO                             $     3,028   $       -0-  $      757   $     3,788
      CFO/COO                         $        -0-  $      961   $       -0-  $       658
      Other                           $     7,412   $      119   $    1,277   $        -0-
                                      $    10,440   $    1,080   $    2,034   $     4,446    $    18,000
     ----------------------------------------------------------------------------------------------------
</TABLE>

                                       53

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}]]