CALIFORNIA INDEPENDENT BANCORP
EXHIBIT 10.36
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<TYPE>EX-10.36
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<DESCRIPTION>EXHIBIT 10.36
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<P ALIGN="RIGHT"><FONT SIZE=2><B>Exhibit 10.36  </B></FONT></P>

<P><FONT SIZE=2><B> [PFS LOGO]  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> <A NAME="ke1545_servicing_agreement"> </A>
<A NAME="toc_ke1545_1"> </A>
<BR>    SERVICING AGREEMENT    <BR>  </B></FONT></P>

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<TD WIDTH="14%"><FONT SIZE=2>DATED:</FONT></TD>
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<TD WIDTH="70%"><FONT SIZE=2>March 20, 2002</FONT></TD>
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BETWEEN:</FONT></TD>
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Portfolio Financial Servicing Company, Inc.<BR>
a Delaware Corporation<BR>
2121 S.W. Broadway, Suite 200<BR>
Portland, OR 97201</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
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("PFSC")</FONT></TD>
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AND:</FONT></TD>
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EPI Leasing Company, a California Corporate<BR>
Subsidiary of Feather River State Bank<BR>
1227 Bridge Street, Suite C<BR>
Yuba City, CA 95991</FONT></TD>
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("EPI")<BR>
("FRSB")</FONT></TD>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EPI
was engaged in the business of providing business leases. EPI desires to engage PFSC to provide certain services in connection with the EPI portfolio of lease transactions (the
"Portfolio"). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, the parties hereto agree as follows: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Portfolio Servicing.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;For the term of this Agreement, PFSC shall provide the services described in Schedule 1
hereto (the "Services") with respect to the EPI portfolio. PFSC hereby agrees to faithfully and diligently perform the Services in accordance with customary industry standards for servicing leases of
the type, which comprise the portfolio. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Compensation.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Servicing Fees.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;From and after the Effective Date of this Agreement for the Services provided hereunder, EPI
shall pay to PFSC, within 15 days of invoicing, the following: </FONT></P>

<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>See
Fee Schedule attached hereto and made a part hereof. </FONT></DD></DL>
</UL>
</UL>
</UL>
<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Reimbursement of Expenses.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;EPI may request PFSC to advance the following fees and costs associated with the
portfolio, and EPI will reimburse PFSC for the following fees and costs upon proper receipt by EPI of evidence that such amounts have been paid: </FONT></P>

<UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>See
Fee Schedule attached hereto and made a part hereof. </FONT></DD></DL>
</UL>
</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Effective Date.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;PFSC shall promptly commence providing the Services on May&nbsp;1, 2002 (the "Effective
Date"). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Conversion.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;EPI is presently using the services of Bancorp Financial Services, Inc. (Bancorp) to service the
portfolio. It is anticipated that a conversion will be necessary to PFSC's system. PFSC will support FRSB by providing conversion services. The conversion of the Portfolio shall entail the transfer of
lease information from Bancorp's systems to the PFSC System, reconciliation and verification of such information to FRSB source systems, and completion of parallel testing for up to a thirty-day
period. PFSC will meet with FRSB to identify and document FRSB operating, accounting, and service requirements for administering the Portfolio. PFSC will install access to its systems in FRSB office
through a leased data line, dial-up modem, or Internet connection. PFSC will provide training for FRSB' personnel on the use of PFSC's systems. After completion of the conversion PFSC will perform all
of the services described in the attached Schedule 1. A one-time fee of $4,800 will be paid in advance for the manual or electronic conversion of data. An ongoing fee of IT support will be set at an
hourly rate of $150.00 for specialized training, reporting and support. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>1</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Power of Attorney.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;If required by PFSC in order to perform the Services, FRSB shall execute and deliver to
PFSC a revocable and limited Power of Attorney, under which PFSC may execute, on EPI behalf, vehicle title or registration documents, and other documents relating to the Services and Other Services to
be provided hereunder. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Term of Agreement.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Initial Term and Renewals.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall commence on the effective date of this agreement and shall
continue until May&nbsp;31, 2005, for a period of three years after the Effective Date (the "Initial Term"). This Agreement will continue to automatically renew annually unless written notification
is received six months prior to the current effective termination date. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Early Termination.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.1</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Early Termination by EPI for Cause.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;EPI may terminate this Agreement for cause by giving at least ten (10)
days' written notice to PFSC, for a termination based upon the occurrence of any of the following: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;PFSC's
failure to substantially provide the Services described in Schedule&nbsp;1, which failure of performance is not cured within ten (10) days of written notice
from EPI; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;Any
gross or willful misconduct of PFSC resulting in a material loss or damage to EPI; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;A
conviction of PFSC or any of its officers of a felony or of any crime involving moral turpitude or fraud; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;PFSC
shall become insolvent, shall admit in writing its inability to pay its debt generally, or a voluntary or involuntary petition under the Federal bankruptcy laws
shall be filed by or against PFSC and, in the case of an involuntary filing, the petition is not dismissed prior to entry of an order for relief. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.2</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Early Termination by PFSC for Cause.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;PFSC may terminate this Agreement for cause in the event EPI fails to
pay to PFSC any payment when due hereunder and such delinquency is not cured within ten (10) days after written notice to EPI. </FONT></P>

</UL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Termination.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Upon termination of this Agreement for any reason, including expiration of the Initial Term or
of any renewal term, PFSC shall release to EPI the files, books and records (including computer records) relating to the portfolio. Except in the case of termination by EPI for cause, EPI shall
reimburse PFSC for all out-of-pocket costs and expenses incurred by PFSC and pay PFSC's then current hourly rates for any programming, technical or administrative support services requested by EPI in
connection with EPI's request for the return of documents or files and transition assistance in connection with the transfer of servicing obligations. In the event of termination by EPI for cause PFSC
shall be liable to EPI for all transition expenses and costs incurred EPI. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties of PFSC.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;PFSC represents and warrants the following: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Business Entity, Authority.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;PFSC is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware, and is authorized to conduct business in the State of Oregon and has obtained all necessary licenses and approvals, in all jurisdictions where the failure to
be so qualified and in good standing or obtain such licenses or approvals would have a material adverse effect on PFSC's business and operations or the servicing of the Portfolio as required by this
Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Authorization; Binding Agreement.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The execution, delivery and performance of this Agreement have been duly
authorized by all necessary action by PFSC. This Agreement has been duly and validly executed and delivered on behalf of PFSC and is binding upon and enforceable </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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against PFSC in accordance with its terms, except as enforceability may be limited or affected by applicable bankruptcy, insolvency, reorganization or other laws of general application relating to or
affecting the rights of creditors, and except as enforceability may be limited by rules of law governing specific performance, injunctive relief or other applicable remedies. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>No Adverse Consequences.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Neither the execution and delivery of this Agreement by PFSC nor the consummation
of the transactions contemplated hereby will (a) violate any applicable law, judgment, order, decree, regulation or ruling of any governmental authority or violate any provision of the corporation of
PFSC, or (b) either alone or with the giving of notice or the passage of time or both, conflict with, constitute grounds for termination of, or result in the breach of the terms, conditions, or
provisions of or constitute a default under any agreement, instrument, license or permit to which PFSC is a party or by which it is bound. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Compliance With Laws.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;PFSC has operated its business in accordance with all applicable laws and regulations
and PFSC is not in violation of any such laws or regulations other than such violations which singly or in the aggregate do not, and, with the passage of time will not, have a material adverse affect
on its business or assets, or its ability to perform its obligations under this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Lease Management System.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;PFSC will, at its own cost and expense, (1) retain a lease management system, or an
alternative system of equal capability, used by the PFSC as a master record of the Leases and (2) mark the lease management system to the effect that the Leases listed therein and serviced herein are
owned by the Originator exclusively. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Preservation of Security Interest.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;PFSC shall execute and file such continuation statements and any other
documents reasonably requested by EPI or which may be required by law (in any case, with respect to the Equipment, subject to the Filing Requirements) to fully preserve and protect the interest of the
Originator. PFSC shall be entitled to reimbursement from EPI of any reasonable and customary funds advanced on EPI's behalf in performing services under Schedule 1. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Obligations with Respect to Leases.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;PFSC will use commercially reasonable efforts to duly fulfill, and
comply with, all obligations on the part of the "lessor" to be fulfilled under or in connection with each Lease and each Lease Contract, and PFSC will do nothing to impair the rights of EPI in the
Leases, the Lease Contracts and the Equipment. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Notification.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;PFSC agrees to notify EPI or as soon as practicable, but in no event later than three (3)
Business Days after the earlier of the PFSC's discovery or its receipt of notice thereof, of a material breach of any representation or warranty contained herein, or the failure of the PFSC to perform
its duties hereunder in any material respect. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Lien in Force.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;PFSC shall not release or assign any Lien in favor of the EPI on any item of Equipment
related to any Lease in whole or in part or as otherwise provided elsewhere herein without permission of EPI. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Fulfill Obligations.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;PFSC will in all material respects duly fulfill all obligations on PFSC's part to be
fulfilled under or in connection with the Leases. PFSC will not amend, rescind, cancel or modify any Lease or term or provision thereof, except in accordance with the Servicing Standard as defined
herein or as contemplated elsewhere herein without permission of EPI. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Preservation of the Equipment.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;PFSC shall, in accordance with the Servicing Standard, collect all payments
required to be made by the Lessees under the Leases, enforce all material rights of EPI under the Leases and defend the Equipment against all Persons, claims and demands whatsoever. PFSC shall not
assign, sell, pledge, or exchange, or in any way encumber or otherwise </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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dispose of the Equipment, except as permitted under this Agreement and only with permission of the EPI. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>No Ownership Interest.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Servicer does not have any ownership interest in the Leases and will not assert
any ownership interest in the Leases. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties of EPI.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;EPI represents and warrants the following: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Business Entity; Authority.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;EPI is a corporation duly organized, validly existing and in good standing under
the laws of the State of California. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Authorization; Binding Agreement.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The execution, delivery and performance of this Agreement have been duly
authorized by all necessary corporate action by EPI, its directors and shareholders. This Agreement has been duly and validly executed and delivered on behalf of EPI and is binding upon and
enforceable against EPI in accordance with its terms, except as enforceability may be limited or affected by applicable bankruptcy, insolvency, reorganization or other laws of general application
relating to or affecting the rights of creditors, and except as enforceability may be limited by rules of law governing specific performance, injunctive relief or other applicable remedies. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Access to Information.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Upon giving at least 24 hours' notice, PFSC shall give EPI and its counsel,
accountants and other representatives reasonable access, during normal business hours, to all of PFSC's files, books and records (including computer records) relating to the portfolio. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Confidentiality.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Each party agrees that it shall not disclose to any third party any information concerning
the customers, trade secrets, methods, processes or procedures or any other confidential, financial or business information of the other party which it learns during the course of its performance of
this Agreement, without the prior written consent of such other party. Notwithstanding the foregoing, PFSC and EPI may disclose each other's confidential and proprietary information without obtaining
prior written consent in the following circumstances only: (a)&nbsp;to employees of the disclosing party, who require such information in order to assist the disclosing party in performing this
Agreement; (b)&nbsp;as required in order to comply with any subpoena, audit requests, court order or applicable law, provided that disclosing party gives the other party prior written notice of such
disclosure, if possible; and (c)&nbsp;if such services have been requested by EPI hereunder, any disclosures in connection with any sales, use or property tax filing and filing under the Uniform
Commercial Code. Notwithstanding anything to the contrary in this Agreement, neither PFSC nor EPI shall have an obligation to keep secret any confidential or proprietary information, which is in or
becomes part of the public domain not due to the fault of any such party. The party's obligations under this Section shall survive the expiration, cancellation or other termination of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Limitation of Liability.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Neither PFSC nor any of its officers, employees or agents shall be liable to EPI
for any action taken or for refraining from the taking of any action in accordance with customary industry standards for servicing; leases and loans of the type which comprise the portfolio pursuant
to this Agreement, or for mistakes or errors in judgment; provided, however, that this provision shall not protect PFSC from liability to EPI for any losses, claims, liabilities, or damages incurred
by EPI by reason of willful misconduct or gross negligence of PFSC in the performance of its duties and obligations hereunder. In no event will PFSC be liable to EPI for any losses, claims,
liabilities or damages incurred by EPI arising out of or relating to the acts or omissions of PFSC in reliance in good faith on any document, which is prepared or furnished to PFSC by EPI. </FONT> <FONT SIZE=2><B>EXCEPT FOR PFSC'S GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT RESULTING IN A BREACH OF THIS AGREEMENT, PFSC SHALL NOT BE LIABLE FOR SPECIAL, PUNITIVE, EXEMPLARY, INCIDENTAL OR
CONSEQUENTIAL DAMAGES (INCLUDING, WITHOUT LIMITATION, ANY DAMAGES RESULTING FROM LOSS OF DATA, REVENUE OR PROFITS) EXCEPT FOR PFSC'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT RESULTING IN A BREACH OF
THIS  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<P><FONT SIZE=2><B> AGREEMENT, THE MAXIMUM LIABILITY OF PFSC TO EPI ARISING OUT OF THIS AGREEMENT AND THE SERVICES TO BE PERFORMED HEREUNDER SHALL IN NO EVENT EXCEED TEN THOUSAND DOLLARS.</B></FONT><FONT SIZE=2> No
damages shall be assessed or charged against PFSC when any delay or breach on its part is caused by the failure of EPI to furnish input or information required of EPI, the failure of any utility or
communications company to furnish services or for any other reasons beyond the control of PFSC. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Late Charge.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;If EPI fails to pay any amounts when due, EPI also agrees to pay to PFSC a service charge equal
to one percent (1%) per month (or the daily prorated amount thereof) on any past-due amounts. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Amendment.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement may be amended or modified only by written agreement signed by PFSC and EPI. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Succession.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Neither party may assign this Agreement or its rights hereunder, or delegate its obligations
hereunder without the prior written consent of the other party. Subject to the foregoing, this Agreement shall be binding upon and shall inure to the benefit of the parties and their respective
successors and assigns. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Waiver.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;No delay or omission on the part of any party in exercising any right hereunder shall operate as a
waiver of any such right or any other right. All waivers must be in writing. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Severability.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;If any provisions of this Agreement are found to be unenforceable as to any person or
circumstance, such finding shall not render such a provision invalid or unenforceable as to any other person or circumstance and shall not invalidate any other provision or provisions of this
Agreement. If
feasible, the term or provision which is found to be invalid or unenforceable shall be deemed to be modified to be within the limits of validity or enforceability. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Law of Agreement.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall be construed and enforced in accordance with the laws of the State of
California. The parties further agree that this agreement was entered into in the State of California, County of Sutter. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Notices.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;All notices, requests, demands or other communications given hereunder shall be in writing and
shall be deemed to have been duly given when delivered personally or when deposited in the United States mail, postage prepaid, as registered or certified mail, to the parties at their addresses set
forth in this Agreement or to such other addresses as the parties may designate by written notice to the other party in accordance with this section. If such notice, demand or other communication is
served personally, it shall be conclusively deemed made at the time of such personal service. If such notice, demand, or other communication is given by mail, it shall be conclusively deemed given
seventy-two hours after the deposit thereof in the United States mail addressed to the party to whom such notice, demand or other communication is to be given. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Further Assurances.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Each of the parties hereto shall execute and deliver any and all additional papers,
documents and other assurances, and shall do any and all acts and things reasonably necessary in connection with the performance of their duties and obligations hereunder and to carry out the intent
of the parties hereto. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Entire Agreement.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement contains the entire understanding of, and supersedes all prior or
contemporaneous agreements not specifically referred to herein among the parties with respect to the subject matter hereof. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. </FONT></P>

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<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><B>EPI Leasing Company a California Corporation<BR>
Subsidiary of Feather River State Bank</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="44%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>[ILLEGIBLE]</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>Title:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="44%" ALIGN="CENTER"><FONT SIZE=2>DIR</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><BR><FONT SIZE=2><B>PORTFOLIO FINANCIAL SERVICING COMPANY, INC.</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="44%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>[ILLEGIBLE]</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>Title:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="44%" ALIGN="CENTER"><FONT SIZE=2>President/CEO</FONT><HR NOSHADE></TD>
</TR>
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<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ke1545_fee_schedule"> </A>
<A NAME="toc_ke1545_2"> </A>
<BR></FONT><FONT SIZE=2><B>FEE SCHEDULE    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PFSC will provide FRSB with a complete, tailored contract administration system that includes all functions associated with total and complete contract
administration. To provide those services PFSC will charge the following fees: </FONT></P>

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<TD WIDTH="47%"><FONT SIZE=2>Monthly Servicing Fees:</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
Portfolio Contract Count</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2><BR>
Monthly Fee</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>0-5000</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2>$11.00 per contract</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>Asset management/Remarketing Fees</B></FONT><FONT SIZE=2>&#151;PFSC will provide remarketing of assets for the following fees: 0-60% of book
value&#151;5% of net proceeds, 60-100% of book value&#151;10% of net proceeds, 100%+ of book value&#151;40% of net proceeds </FONT></P>

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<TD WIDTH="47%"><FONT SIZE=2>One time Conversion and set up Fee:</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2>$4,800.00</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
above fee structure does not include: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>UCC
financing statement filing fees; and
<BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>Overnight
carrier charges; and
<BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>Bank
lock box fees;
<BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2>Reimbursement
for any travel related expense associated with set up/conversion
<BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2>Leased
phone and data lines or telecommunication charges for access PFSC's systems
<BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(f)</FONT></DT><DD><FONT SIZE=2>All
other telecommunications expense associated with portfolio administration.
<BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(g)</FONT></DT><DD><FONT SIZE=2>Printing
expenses associated with a private label program i.e. letter head stationery, envelopes, etc.
<BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(h)</FONT></DT><DD><FONT SIZE=2>Title,
UCC and registration fees, including fees associated with notation of any lenders Interest on certificates of title, UCC's and vehicle registrations;
<BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>Collection
costs paid to third parties, including repossession costs, attorney fees and court costs </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>All fees (a) through (i) will be advanced by servicer and billed to client on a monthly "pass through" basis</B></FONT></P>

<P><FONT SIZE=2><B>Optional Services  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Custom programming/consulting fees $150/hr </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

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<P><br><A NAME="02SFO1544_2">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_ke1545_1">SERVICING AGREEMENT</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ke1545_2">FEE SCHEDULE</A></FONT><BR>

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