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                                                                   Exhibit 10.61

                                 THIRD AMENDMENT
                                       TO
                     EXECUTIVE SALARY CONTINUATION AGREEMENT

This Amendment No. 3 ("Amendment") to the Executive Salary Continuation
Agreement ("Agreement") dated October 13, 1993, as amended on September 29, 1995
and February 16, 2000 is made and entered into this 12th day of November, 2003,
by and between Plumas Bank, a California state banking corporation (the
"Employer"), and William E. Elliott, an individual residing in the State of
California (hereinafter referred to as the "Executive").

                                    RECITALS

WHEREAS, the Executive is an employee of the Employer and is serving as its
President and Chief Executive Officer;

WHEREAS, the Employer has provided Executive with certain salary continuation
benefits as set forth in the Agreement;

WHEREAS, Employer and Executive desire to amend the Section 1.2 of the Agreement
to provide the Executive with a 2% per year pre and post retirement increase in
the Annual Benefit, amend Sections 3.1, 3.2, 4.1, 4.2, 5, 5.1 and 6 to increase
the period of benefit payments of the Annual Benefit from 15 years to 20 years,
and to amend Section 8 as to the Claims and Review Procedure.

NOW, THEREFORE, in consideration of the services to be performed in the future,
as well as the mutual promises and covenants contained herein, the Executive and
the Employer agree to amend the Agreement as follows:

1.       Section 1.2 of the Agreement is amended in the entirety to read as
         follows:

         1.2. ANNUAL BENEFIT. The term "Annual Benefit" shall mean the annual
         sum of one hundred ten thousand dollars ($110,000) multiplied by the
         Applicable Percentage (defined below) and then reduced to the extent
         required: (i) under the other provisions of this Agreement; (ii) by
         reason of the lawful order of any regulatory agency or body having
         jurisdiction over the Employer; and (iii) in order for the Employer to
         properly comply with any and all applicable state and federal laws,
         including, but not limited to, income, employment and disability income
         tax laws (eg., FICA, FUTA, SDI). Effective May 1, 2003, the Annual
         Benefit shall be increased by 2% per year compounded annually until all
         payments under the Agreement have been paid or the Agreement is
         terminated.

2.       Section 3.1 of the Agreement is amended in the entirety to read as
         follows:

         3.1. PAYMENTS UPON RETIREMENT. If the Executive shall remain in the
         continuous employment of the Employer until attaining sixty-five (65)
         years of age, the Executive shall be entitled to be paid the Annual
         Benefit (with the

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         Applicable Percentage at 100%) for a period of twenty (20) years, in
         Two Hundred Forty (240) equal monthly installments, with each
         installment to be paid on the first day of each month, beginning with
         the month following the month in which the Executive Retires or upon
         such later date as may be mutually agreed upon by the Executive and the
         Employer in advance of said Retirement date. At the Employer's sole and
         absolute discretion, the Employer may increase the Annual Benefit as
         and when the Employer determines the same to be appropriate in order to
         reflect a substantial change in the cost of living. Notwithstanding
         anything contained herein to the contrary, the Employer shall have no
         obligation hereunder to make any such cost-of-living adjustment.

3.       Section 3.2 of the Agreement shall be amended in the entirety to read
         as follows:

         3.2. PAYMENTS IN THE EVENT OF DEATH AFTER RETIREMENT. The Employer
         agrees that if the Executive Retires, but shall die before receiving
         all of the Two Hundred Forty (240) monthly payments described in
         paragraph 3.1 above, the Employer will make the remaining monthly
         payments, undiminished and on the same schedule as if the Executive had
         not died, to the Executive's designated beneficiary. If a valid
         Beneficiary Designation is not in effect, then the remaining amounts
         due to the Executive under the term of this Agreement shall be paid to
         the Executive's Surviving Spouse. If the Executive leaves no Surviving
         Spouse, the remaining amounts due to the Executive under the terms of
         this Agreement shall be paid to the duly qualified personal
         representative, executor or administrator of the Executive's estate.

4.       Section 4.1 of the Agreement shall be amended in the entirety to read
         as follows:

         4.1 PAYMENTS IN THE EVENT OF DEATH PRIOR TO RETIREMENT. In the event
         the Executive should die while actively employed by the Employer at any
         time after the Effective Date of this Agreement, but prior to attaining
         sixty five (65) years of age or if the Executive chooses to work after
         attaining sixty five (65) years of age, but dies before Retirement, the
         Employer agrees to pay the Annual Benefit (with the Applicable
         Percentage determined by the applicable years of service Executive had
         with Employer, including years of service prior to the execution of
         this Agreement as set forth on Schedule A) for a period of twenty (20)
         years in Two Hundred Forty (240) equal monthly installments, with each
         installment to be paid on the first of each month beginning with the
         month following Executive's death to the Executive's designated
         beneficiary. If a valid Beneficiary Designation is not in effect, then
         the amounts to due the Executive under the terms of this Agreement
         shall be paid to the Executive's Surviving Spouse as set forth above.
         If the Executive leaves no Surviving Spouse, the amounts due to the
         Executive under the terms of this Agreement shall be paid to the duly
         qualified personal representative, executor or administrator of the
         Executive's estate as set forth above.

4.       Sections 4.2 of the Agreement shall be amended to read in the entirety
         as follows:

         4.2. PAYMENTS IN THE EVENT OF DISABILITY PRIOR TO RETIREMENT. In the
         event the Executive becomes Disabled while actively employed by the
         Employer at any time after

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         the date of this Agreement but prior to Retirement, the Executive
         shall: (i) continue to be treated during such period of Disability as
         being gainfully employed by the Employer but shall not add applicable
         years of service for the purpose of determining the Annual Benefit; and
         (ii) be entitled to be paid the Annual Benefit (with the Applicable
         Percentage determined by the applicable years of service Executive had
         with Employer at the time Executive first becomes Disabled as set forth
         on Schedule A) for a period of twenty (20) years in Two Hundred Forty
         (240) equal monthly installments, with each installment to be paid on
         the first day of each month, beginning with the month following the
         earlier of (1) the month in which the Executive attains sixty-five (65)
         years of age; or (2) the date upon which the Executive is no longer
         entitled to receive Disability benefits under the Executive's principal
         Disability insurance policy and does not, at such time, return to and
         thereafter fulfill the responsibilities associated with the employment
         position held with the Employer prior to becoming Disabled by reason of
         such Disability continuing. Notwithstanding the foregoing, in the event
         Executive should die while actively or gainfully employed by the
         Employer at any time after the Effective Date of this Agreement and
         prior to attaining the age of sixty-five (65) years of age, the
         payments provided in Paragraph 4.1 shall be paid in lieu of the
         payments provided in this Paragraph 4.2, provided that Executive or his
         legal representative shall have not elected to take the benefits
         provided by Paragraph 5.

5.       Section 5 of the Agreement shall be amended in the entirety to read as
         follows;

         5. PAYMENTS IN THE EVENT EMPLOYMENT IS TERMINATED OTHER THAN BY DEATH,
         DISABILITY, RETIREMENT OR A CHANGE OF CONTROL OF THE EMPLOYER.

         As indicated in Paragraph 2 above, the Employer reserves the right to
         terminate the Executive's employment, with or without cause but subject
         to any written employment agreement which may then exist, at any time
         prior to the Executive's Retirement. In the event that the employment
         of the Executive shall be terminated, for any reason, including
         voluntary termination by the Executive, but other than by reason of
         Disability except as provided in Paragraph 4.2, death, Retirement or a
         change of control of the Employer as set forth in Paragraph 5.1, the
         Executive or his legal representative shall be paid the Annual Benefit
         (with the Applicable Percentage determined by the applicable years of
         service Executive had with Employer at the time of Executive's
         termination of employment as set forth on Schedule A) for a period of
         twenty (20) years in Two Hundred Forty (240) equal monthly
         installments, with each installment to be paid on the first day of each
         month, (i) beginning with the month following the month in which the
         Executive terminates employment and attains sixty-five (65) years of
         age or, (ii) , beginning with the month following the Executive's
         death, if Executive terminates employment and dies prior to attaining
         age 65.

         If the Executive shall become entitled to the payments provided in the
         previous paragraph and shall die before all of the Two Hundred Forty
         (240) monthly payments have been paid to him, the Employer shall make
         the remaining monthly payments, undiminished and on the same schedule
         as if the Executive had not died, to the Executive's designated
         beneficiary. If a valid Beneficiary Designation

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         is not in effect, then the remaining amounts due to the Executive under
         the term of this Agreement shall be paid to the Executive's Surviving
         Spouse. If the Executive leaves no Surviving Spouse, the remaining
         amounts due to the Executive under the terms of this Agreement shall be
         paid to the duly qualified personal representative, executor or
         administrator of the Executive's estate.

6.       Section 5.1 of the Agreement shall be amended in the entirety to read
         as follows:

         5.1 TERMINATION OF EMPLOYMENT IN THE EVENT OF A CHANGE OF CONTROL.

         A "Terminating Event" shall be defined as any one of the following
         events: (i) merger or consolidation of the Employer's parent
         ("Bancorp") where the shareholders of Bancorp immediately prior to the
         merger or consolidation will not own at least a majority of the
         outstanding voting shares of the Bancorp (or Bancorp's successor, if
         the Bancorp is not the surviving entity in the merger or consolidation)
         immediately after such merger or consolidation, (ii) a transfer of a
         controlling interest of the Employer or Bancorp (consisting of at least
         a majority of the outstanding voting shares of the Employer or Bancrop)
         to another corporation, individual or individuals acting in concert, or
         (iii) a sale or transfer of substantially all of the assets of the
         Employer to another entity. In the event the Executive's employment
         terminates with the Employer or Employer's successor within five years
         of a Terminating Event and the Executive gives written notice to the
         Employer or Employer's successor within 30 calendar days of such
         termination of employment that the termination is for the reason that a
         Terminating Event has occurred, the Executive shall be entitled to be
         paid the Annual Benefit (with the Applicable Percentage equal to 100%)
         for a period of twenty (20) years, in Two Hundred Forty (240) equal
         monthly installments, with each installment to be paid on the first day
         of each month, beginning with the month following the month in which
         the Executive's employment is terminated.

         The Executive and Employer acknowledge that limitations on
         deductibility of the Annual Benefit for federal income tax purposes may
         be imposed under, but not limited to Section 280G of the Internal
         Revenue Code of 1986, as amended ("Code"), and any successor to Section
         280G of the Code. The increase in the Applicable Percentage pursuant to
         the application of this Paragraph 5.1 shall be limited to such increase
         in the Applicable Percentage (which increase shall not result in the
         Applicable Percentage being greater than 100%) that results in the
         greatest amount of the Annual Benefit that is deductible by the
         Employer for federal income tax purposes after taking into account all
         other compensation payments to or for the benefit of the Executive that
         are included in determining the deductibility of such payments under
         Section 280G of the Code or any successor to Section 280G of the Code.
         In the event that prior to the application of this Paragraph 5.1, all
         other compensation payments to or for the benefit of Executive results
         in the limitation of the deductibility by Employer of such payments
         under Section 280G or any successor to Section 280G of the Code, then
         this Paragraph 5.1 shall not be applicable.

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7.       Section 6 of the Agreement shall be amended in the entirety to read as
         follows:

         6. PAYMENTS IN THE EVENT THE EXECUTIVE ELECTS EARLY RETIREMENT.

         The Executive shall have the right to elect to receive salary
         continuation benefits prior to attaining sixty-five (65) years of age
         if Executive (i) remains in the active employ of Employer until a date
         which constitutes an Early Retirement Date and (ii) retires on such
         date. In the event the Executive elects to Retire and Retires on a date
         which constitutes an Early Retirement Date, the Executive shall be
         entitled to be paid the Annual Benefit (with the Applicable Percentage
         determined by the applicable years of service Executive will have with
         Employer at the time of early retirement) for a period of twenty (20)
         years in Two Hundred Forty (240) equal monthly installments, with each
         installment to be paid on the first day of each month, beginning with
         the month following the month in which Early Retirement Date occurs.

         The Employer and Executive agree that if the Executive Retires at an
         Early Retirement Date, but shall die before receiving all of the two
         hundred forty (240) monthly payments, the Employer shall make the
         remaining monthly payments, undiminished and on the same schedule as if
         the Executive had not died, to the Executive's designated beneficiary.
         If a valid Beneficiary Designation is not in effect, then the remaining
         amounts due to the Executive under the term of this Agreement shall be
         paid to the Executive's Surviving Spouse. If the Executive leaves no
         Surviving Spouse, the remaining amounts due to the Executive under the
         terms of this Agreement shall be paid to the duly qualified personal
         representative, executor or administrator of the Executive's estate.

8.       Section 8 of the Agreement shall be amended in the entirety to read as
         follows:

         8. CLAIMS AND REVIEW PROCEDURE.

         8.1      Claims Procedure. Any individual ("claimant") who has not
         received benefits under the Agreement that he or she believes should be
         paid shall make a claim for such benefits as follows:

                  8.1.1 Initiation - Written Claim. The claimant initiates a
         claim by submitting to the Employer a written claim for the benefits.

                  8.1.2 Timing of Employer Response. The Employer shall respond
         to such claimant within 90 days after receiving the claim. If the
         Employer determines that special circumstances require additional time
         for processing the claim, the Employer can extend the response period
         by an additional 90 days by notifying the claimant in writing, prior to
         the end of the initial 90-day period that an additional period is
         required. The notice of extension must set forth the special
         circumstances and the date by which the Employer expects to render its
         decision.

                  8.1.3 Notice of Decision. If the Employer denies part or all
         of the claim, the Employer shall notify the claimant in writing of such
         denial. The Employer shall write the notification in a manner
         calculated to be understood by the claimant. The notification shall set
         forth:

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         (a)      The specific reasons for the denial;

         (b)      A reference to the specific provisions of this Agreement on
         which the denial is based;

         (c)      A description of any additional information or material
         necessary for the claimant to perfect the claim and an explanation of
         why it is needed;

         (d)      An explanation of this Agreement's review procedures and the
         time limits applicable to such procedures; and

         (e)      A statement of the claimant's right to bring a civil action
         under ERISA Section 502(a) following an adverse benefit determination
         on review.

         8.2      Review Procedure. If the Employer denies part or all of the
         claim, the claimant shall have the opportunity for a full and fair
         review by the Employer of the denial, as follows:

                  8.2.1 Initiation - Written Request. To initiate the review,
         the claimant, within 60 days after receiving the Employer's notice of
         denial, must file with the Employer a written request for review.

                  8.2.2 Additional Submissions - Information Access. The
         claimant shall then have the opportunity to submit written comments,
         documents, records and other information relating to the claim. The
         Employer shall also provide the claimant, upon request and free of
         charge, reasonable access to, and copies of, all documents, records and
         other information relevant to the claimant's claim for benefits.

                  8.2.3 Considerations on Review. In considering the review, the
         Employer shall take into account all materials and information the
         claimant submits relating to the claim, without regard to whether such
         information was submitted or considered in the initial benefit
         determination.

                  8.2.4 Timing of Employer Response. The Employer shall respond
         in writing to such claimant within 60 days after receiving the request
         for review. If the Employer determines that special circumstances
         require additional time for processing the claim, the Employer can
         extend the response period by an additional 60 days by notifying the
         claimant in writing, prior to the end of the initial 60-day period that
         an additional period is required. The notice of extension must set
         forth the special circumstances and the date by which the Employer
         expects to render its decision.

                  8.2.5 Notice of Decision. The Employer shall notify the
         claimant in writing of its decision on review. The Employer shall write
         the notification in a manner calculated to be understood by the
         claimant. The notification shall set forth:

         (a)      The specific reasons for the denial;

         (b)      A reference to the specific provisions of this Agreement on
         which the denial is based; and

         (c)      A statement that the claimant is entitled to receive, upon
         request and free of charge, reasonable access to, and copies of, all
         documents, records and other information relevant to the claimant's
         claim for benefits.

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9.       Except as amended hereby, the provisions of the Agreement remain in
         full force and effect and the enforceability thereof is not affected by
         this Amendment.

IN WITNESS WHEREOF, the parties to this Amendment have duly executed this
Amendment as of the day and year first above written.

                                        PLUMAS BANK

                                        By: /s/ Jerry V. Kehr
                                            ------------------------------------
                                            Jerry V. Kehr, Chairman

                                        WILLIAM E. ELLIOTT

                                        /s/ William E. Elliott
                                        ----------------------------------------

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