Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(e) On August 21, 2012, pursuant to the terms of his Executive Employment Agreement (the "Employment Agreement") with United Security Bancshares, Inc. ("USB") and its subsidiary bank, First United Security Bank ("FUSB"; USB and FUSB are hereinafter collectively referred to as the "Company"), James F. House, President and Chief Executive Officer of the Company, received an award of 5,000 fully-vested shares of USB common stock (the "Award"). As previously reported, the Employment Agreement provides, among other things, that, as an inducement to join the Company, in addition to the 5,000 fully-vested shares of USB common stock that were granted upon the commencement of Mr. House's employment with the Company, Mr. House is eligible to receive up to an additional 5,000 shares of USB common stock during his employment upon attainment of certain criteria. In accordance with this provision of the Employment Agreement, the Award was approved by the USB Board of Directors based on Mr. House's personal performance and leadership of the Company since the commencement of his employment on November 7, 2011.

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