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                                                                   EXHIBIT 10.60

                                   PLUMAS BANK
                          DIRECTOR CONSULTING AGREEMENT

THIS AGREEMENT is made this 1st day of May, 2003, by and between Plumas Bank
(the "Company" or the "Bank") and Thomas Watson (hereinafter referred to as the
"Consulting Director"), whose address is 11430 Deerfield Dr., Truckee, CA 96161.

                                  INTRODUCTION

The Board of Directors of the Company has determined that it is in the best
interests of the Company to honor the Consulting Director for his or her
services to the Company of at least 15 years, to retain the Consulting
Director's services and to obtain the valued services of the Consulting Director
in a consulting capacity.

                                    AGREEMENT

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein
contained, the Company and the Consulting Director hereby agree as follows:

1.       CONSULTING SERVICES. Upon the terms and subject to the conditions
         contained in this Agreement, the Consulting Director agrees to provide
         consultative services for the Company during the term of this
         Agreement. The Consulting Director agrees to devote his or her best
         efforts to the business of the Company, and shall perform his or her
         duties in a diligent, trustworthy, and business-like manner, all for
         the purpose of advancing the business of the Company. The Consulting
         Director agrees that this Agreement shall not become effective until
         such time the Consulting Director has (i) served on the Company's Board
         of Directors or the Board of Directors of the parent of the Company for
         a total of at least 15 years and (ii) has resigned from the Company's
         Board of Directors or the Board of Directors of the parent of the
         Company, if any or is no longer a director of the Company or the parent
         of the Company, if any.

2.       DUTIES. The duties of the Consulting Director shall be those duties
         that can reasonably be expected to be performed by a person in a
         consultative capacity. Such duties shall include, but shall not be
         limited to:

         -        Meeting annually with Board of Directors of Bank to review and
                  discuss the strategic plan and the goals and objectives of
                  Bank.

         -        Continuing to utilize the Bank as a significant banking
                  facility for the Consulting Director and his or her
                  businesses.

         -        Continuing to refer customers to the Bank and to support the
                  Bank within the Bank's community.

         -        Allowing the Bank to utilize the Consulting Director's name in
                  all of the Bank and Bank affiliate publications.

         -        When invited by the Chairman of the Board, utilizing best
                  efforts to attend the Bank retreats, meetings and other
                  functions.

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         -        Providing meaningful and comprehensive input to strategic
                  issues or policies as requested by the Chairman.

         -        Not becoming involved as a director, officer, large
                  shareholder (over 1%), advisor, consultant or employee of any
                  financial institution operating in the counties where the Bank
                  operates a branch or loan office.

         -        Being accessible to officers, directors and attorneys for any
                  litigation support for the Bank or its affiliates involving
                  the directorship with the Bank or its affiliates.

         The Board may waive any of the individual service requirements set
         forth above on a case by case basis.

3.       CONSULTING TERM. Subject to the terms and conditions hereof, the
         Company agrees to retain the Consulting Director for a term of three
         (3) years commencing as of the date Consulting Director's retirement
         from the Board of Directors of the Company ("Effective Date"). The
         Company may not terminate the Consulting Director's service agreement
         prior to the end of the three-year term unless such termination is due
         to a Termination for Cause as defined herein.

4.       FEES AND BENEFITS

         (a)      BASE FEE AMOUNT. The Company shall, during the term of this
                  Agreement, pay the Consulting Director an annual base fee of
                  $10,000 beginning on the Effective Date, pro rated for periods
                  of less than 12 months.

         (b)      DEATH BENEFITS. If the Consulting Director dies prior to the
                  termination of this Agreement, the Company shall pay the
                  Consulting Director's named beneficiary (or the Consulting
                  Director's estate if no beneficiary is named) a death benefit
                  of $30,000 less any payments the Consulting Director has
                  already received under the terms of this Agreement.

5.       TERMINATION OF SERVICE. The Board of Directors of the Company may
         terminate the services of the Consulting Director under the following
         circumstances:

         (a)      DEATH DURING: THE THREE-YEAR CONSULTATIVE PERIOD. This
                  Agreement ends at death, however, any eligible death benefits
                  payable hereunder shall be paid in accordance with the
                  provisions of paragraph 4(b) herein.

         (b)      DISABILITY. The Company may terminate the Consulting
                  Director's services for Disability if the Consulting Director
                  is incapacitated or absent and unable to perform substantially
                  all the regular duties of this Agreement for at least 180
                  days, consecutive or non-consecutive, during any 12 month
                  period. Disability shall be determined by mutual agreement or
                  by a physician who is board certified in the field of the
                  Consulting Director's affliction.

         (c)      VOLUNTARY RESIGNATION OR TERMINATION FOR CAUSE. If the
                  Consulting Director shall voluntarily terminate his or her
                  services for other than Good Reason or if the Company shall
                  discharge the Consulting Director for Cause, this Agreement
                  shall terminate immediately and the Company

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                  shall have no further obligation to make any payment under
                  this Agreement which has not already become payable, but has
                  not yet been paid. Provided, however, that with respect to any
                  plans or programs in which the Consulting Director is
                  participating at the time of his or her termination, the
                  Consulting Director's rights and benefits under each such plan
                  shall be determined in accordance with the terms, conditions,
                  and limitations of the plan and any separate agreement
                  executed by the Consulting Director which may then be in
                  effect.

                  For the purposes of this Agreement, the Company shall have
                  "Cause" to terminate the Consulting Director's services
                  hereunder upon:

                  (i)      the willful and continued failure by the Consulting
                           Director to perform his or her duties with the
                           Company (other than any such failure resulting from
                           incapacity due to Disability), after a demand for
                           substantial performance is delivered to the
                           Consulting Director by the Board which specifically
                           identifies the manner in which the Board believes
                           that he or she has not substantially performed his or
                           her duties;

                  (ii)     the willful engaging by the Consulting Director in
                           gross misconduct materially and demonstrably
                           injurious to the Company. For purposes of this
                           paragraph, no act, or failure to act, on the
                           Consulting Director's part shall be considered
                           "willful" unless done, or omitted to be done, by him
                           not in good faith and without reasonable belief that
                           his or her action or omission was not in the best
                           interest of the Company;

         For purposes of this Agreement, "Good Reason" shall mean:

                  (i)      without his or her express written consent, the
                           assignment to the Consulting Director of any duties
                           inconsistent with his or her positions, duties,
                           responsibilities and status with the Company, or

                  (ii)     a reduction by the Company in the Consulting
                           Director's base fee amount as in effect on the date
                           hereof.

6.       MISCELLANEOUS PROVISIONS.

         (a)      CONSULTING DIRECTOR'S HEIRS ETC. The Consulting Director may
                  not assign his or her rights or delegate his or her duties or
                  obligations hereunder without the written consent of the
                  Company. This Agreement shall inure to the benefit of and be
                  enforceable by the Consulting Director's personal or legal
                  representatives, executors, administrators, successors, heirs,
                  distributees, devisees and legatees. If the Consulting
                  Director should die while any amounts would still be payable
                  to him or her hereunder as if he or she had continued to live,
                  all such amounts, unless other provided herein, shall be paid
                  in accordance with the terms of this Agreement to his or her
                  designee or, if there be no such designee, to his or her
                  estate.

         (b)      NOTICE. For the purposes of this Agreement, notices and all
                  other communications provided for in the Agreement shall be in
                  writing and shall be deemed to have been duly given when
                  delivered or mailed by United States registered or certified
                  mail, return receipt requested, postage prepaid, addressed to
                  the respective addresses set forth on the first page of this
                  Agreement, provided that all notices to the Company shall be
                  directed to the attention of the Chief Executive Officer of
                  the

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                  Company with a copy to the Secretary of the Company, or to
                  such other in writing in accordance herewith, except that
                  notices of change of address shall be effective only upon
                  receipt.

         (c)      AMENDMENT: WAIVER. No provisions of this Agreement may be
                  modified, waived or discharged unless such waiver,
                  modification or discharge is agreed to in writing signed by
                  the Consulting Director and an authorized officer of the
                  Company. No waiver by either party hereto at any time of any
                  breach by the other party hereto of, or compliance with, any
                  condition or provision of this Agreement to be performed by
                  such other party shall be deemed a waiver of similar or
                  dissimilar provisions or conditions at the same or at any
                  prior or subsequent time. No agreements or representations,
                  oral or otherwise, express or implied, with respect to the
                  subject matter hereof have been made by either party which are
                  not set forth expressly in this Agreement.

         (d)      INVALID PROVISIONS. Should any portion of this Agreement be
                  adjudged or held to be invalid, unenforceable or void, such
                  holding shall not have the effect of invalidating or voiding
                  the remainder of this Agreement and the parties hereby agree
                  that the portion so held invalid, unenforceable or void shall,
                  if possible, be deemed amended or reduced in scope, or
                  otherwise be stricken from this Agreement to the extent
                  required for the purposes of validity and enforcement thereof.

         (e)      COUNTERPARTS. This Agreement may be executed in one or more
                  counterparts, each of which shall be deemed to be an original
                  but all of which together will constitute one and the same
                  instrument.

         (f)      GOVERNING LAW. This Agreement shall be governed by and
                  construed under the laws of the State of California.

         (g)      CAPTIONS AND HEADINGS. The use of captions and section
                  headings herein is for purposes of convenience only and shall
                  not effect the interpretation or substance of any provisions
                  contained herein.

IN WITNESS WHEREOF, the Consulting Director and a duly authorized Company
officer have signed this Agreement.

THOMAS WATSON                            PLUMAS BANK
"CONSULTING DIRECTOR"                    "COMPANY"

/s/ Thomas Watson                        By: /s/ W.E. Elliott
-----------------                            ----------------

                                         Title: President & C.E.O.

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