Document:

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                                                                    EXHIBIT 10.5

NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, NO SHARES OF THE BANK'S
STOCK SHALL BE ISSUED PURSUANT HERETO UNLESS THE BANK'S 1991 STOCK OPTION PLAN
SHALL HAVE FIRST BEEN APPROVED BY THE SHAREHOLDERS OF THE BANK HOLDING NOT LESS
THAN A MAJORITY OF THE OUTSTANDING SHARES OF THE BANK'S COMMON STOCK REPRESENTED
AND VOTING AT A MEETING OF SHAREHOLDERS AND BY A MAJORITY OF THE DISINTERESTED
SHARES REPRESENTED AND VOTING AT THE MEETING.

                                   PLUMAS BANK
                        INCENTIVE STOCK OPTION AGREEMENT

        This Incentive Stock Option Agreement dated the 18th day of November,
1998, entered into by and between Plumas Bank (the "Bank"), and Douglas N.
Biddle ("Optionee");

        WHEREAS, pursuant to the 1991 Stock Option Plan of the Bank (the
"Plan"), a copy of which is hereto attached, the Board of Directors of the Bank
(or the Stock Option Committee, if authorized by the Board of Directors) has
authorized granting to Optionee, an Incentive Stock Option to purchase all or
any part of Four Thousand Three Hundred Twenty (4,320) authorized but unissued
shares of the Bank's Common Stock for cash at the price of Sixteen Dollars and
Seventy-Three Cents ($16.73) per share, such option to be for the term AND upon
the terms and conditions hereinafter stated;

        NOW, THEREFORE, it is hereby agreed:

        1. Grant of Option. Pursuant to said action of the Board of Directors
(or the Stock Option Committee) and pursuant to authorizations granted by all
appropriate regulatory and governmental agencies, the Bank hereby grants to
Optionee the option to purchase, upon and subject to the terms and conditions of
the Plan, as amended, which is incorporated in full herein by this reference,
all or any part of Four Thousand Three Hundred Twenty (4,320) shares of the
Bank's Common Stock (hereinafter called "stock") at the price of Sixteen Dollars
and Seventy-three Cents ($16.73) per share, which price is not less than 100% of
the fair market value of the stock (or not less than 110% of the fair market
value for Optionee-shareholders who possess more than 10% of the Bank's stock)
as of the date of action of the Board of Directors (or the Option Committee)
granting this option.

        2. Exercisability. This option shall be exercisable as to 864 on
November 18, 1999, 864 on November 18, 2000, 864 on November 18, 2001, 864 on
November 18, 2002, 864 on November 18, 2003. This option shall remain
exercisable as to all of such shares until November 18, 2008 (but not later than
ten (10) years from the date this option is granted) unless this option has
expired or terminated

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earlier in accordance with the provisions hereof. Shares as to which this option
becomes exercisable pursuant to the foregoing provision may be purchased at any
time prior to expiration of this option.

        3. Exercise of Option. This option may be exercised by written notice
delivered to the Bank stating the number of shares with respect to which this
option is being exercised, together with cash in the amount of the purchase
price of such shares. Not less than ten (10) shares may be purchased at any one
time unless the number purchased is the total number which may be purchased
under this option and in no event may the option be exercised with respect to
fractional shares. Upon exercise, Optionee shall make appropriate arrangements
and shall be responsible for the withholding of any federal and state taxes then
due.

        4. Cessation of Employment. Except as provided in Paragraphs 2 and 5
hereof, if Optionee shall cease to be employed by the Bank or a subsidiary
corporation for any reason other than Optionee's death or disability (as defined
in Section 105(d)(4) of the Internal Revenue Code of 1986, as amended from time
to time), this option shall expire 90 days thereafter. During the three-month
period this option shall be exercisable only as to those installments, if any,
which had accrued as of the date when the Optionee ceased to be employed by the
Bank or the subsidiary corporation.

        5. Termination of Employment for Cause. If Optionee's employment by the
Bank or a subsidiary corporation is terminated for cause, this option shall
expire immediately, unless reinstated by the Board of Directors within thirty
days (30) days of such termination by given written notice of such reinstatement
to Optionee at his last known address. In the event of such reinstatement,
Optionee may exercise this option only to such extent, for such time, and upon
such terms and conditions as if Optionee had ceased to be employed by the Bank
or a subsidiary corporation upon the date of such termination for a reason other
than cause, death or disability. Termination for cause shall, include but not be
limited to, termination for malfeasance or gross misfeasance in the performance
of duties or conviction of illegal activity in connection therewith.

        6. Nontransferability; Death of Optionee. This option shall not be
transferable except by Will or by the laws of descent and distribution and shall
be exercisable during Optionee's lifetime only by Optionee. If Optionee dies
while employed by the Bank or a subsidiary corporation, or during the 90 day
period referred to in Paragraph 4 hereof, this option shall expire one (1) year
after the date of Optionee's

                                       2
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death or on the day specified in Paragraph 2 hereof, whichever is earlier. After
Optionee's death but before such expiration, the persons to whom Optionee's
rights under this option shall have passed by Will or by the applicable laws of
descent and distribution or the executor or administrator of Optionee's estate
shall have the right to exercise this option as to those shares for which
installments had accrued under Paragraph 2 hereof as of the date on which
Optionee ceased to be employed by the Bank or a subsidiary corporation. If the
Optionee shall terminate employment because of disability (as defined in Section
105(d)(4) of the Internal Revenue Code of 1986, as amended from time to time),
the Optionee may exercise this option to the extent he or she is entitled to do
so at the date of termination, at any time Within one year of the date of
termination, but in no event later than the expiration date in paragraph 2.

        7. Employment. This Agreement shall not obligate the Bank or a
subsidiary corporation to employ Optionee for any period, nor shall it interfere
in any way with the right of the Bank or a subsidiary corporation to reduce
Optionee's compensation.

        8. Privileges of Stock Ownership. Optionee shall have no rights as a
stockholder with respect to the Bank's stock subject to this option until the
date of issuance of stock certificates to Optionee. Except as provided in the
Plan, no adjustment will be made for dividends or other rights for which the
record date is prior to the date such stock certificates are issued.

        9. Modification and Termination by Board of Directors. The rights of
Optionee are subject to modification and termination upon the occurrence of
certain events as provided in Sections 13 and 14 of the Plan.

        10. Notification of Sale. Optionee agrees that Optionee, or any person
acquiring shares upon exercise of this option, will notify the Bank not more
than five (5) days after any sale or other disposition of such shares. No shares
issuable upon the exercise of this option shall be issued and delivered unless
and until all applicable requirements Of California and federal law pertaining
to the issuance and sale of such shares, and all applicable listing requirements
of the securities exchanges, if any, on which shares of the Bank of the same
class are then listed shall have been complied with.

        11. Notices. Any notice to the Bank provided for in this Agreement shall
be addressed to it in care of its President or Cashier at its main office and
any notice to Optionee shall be addressed to Optionee's address on file with the
Bank or a subsidiary corporation, or to such other address as either

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may designate to the other in writing. Any notice shall be deemed to be duly
given if and when enclosed in a properly sealed envelope and addressed as stated
above and deposited, postage prepaid, with the United States Postal Service. In
lieu of giving notice by mail as aforesaid, any written notice under this
Agreement may be given to Optionee in person, and to the Bank by personal
delivery to its President or Cashier.

        12. Incentive Stock Option. This Stock Option Agreement is intended to
be an Incentive Stock Option Agreement as defined in Section 422A of the
Internal Revenue Code of 1986, as amended from time to time.

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement.

OPTIONEE                                PLUMAS BANK

By  /s/ DOUGLAS N. BIDDLE               By  /s/ JERRY V. KEHR
    -------------------------              -------------------------------------
    Douglas N. Biddle                      Jerry V. Kehr, Chairman of the Board

                                        By  /s/ ROBERT SCHOENSEE
                                           -------------------------------------
                                            Robert Schoensee, Vice Chairman
                                            Of the Board

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<PAGE>

                       FIRST AMENDMENT TO THE PLUMAS BANK
                          1991 STOCK OPTION AGREEMENT

This First Amendment to the Plumas Bank 1991 Stock Option Agreement is entered
into by and between Douglas Biddle ("Optionee") and Plumas Bank on December 5,
2000 for the purpose of amending the option agreement ("Option") by and between
Optionee and Plumas Bank entered into on August 21, 1991.

WHEREAS, the Plumas Bank 1991 Stock Option Plan ("1991 Plan") previously only
allowed for stock option exercises by the payment of cash, and has since been
amended to allow the exercise of stock options by the delivery of existing
shares of Plumas Bank stock held by the option.

NOW, THEREFORE, the Optionee and the Bank agree to the amendment of the Option
as follows:

1.   AMENDMENT OF SECTION 3. The first sentence in Section 3 shall be amended in
     the entirety to read as follows:

          This option may be exercised by written notice delivered to the
          Bank stating the number of shares with respect to which this option is
          being exercised, together with the purchase price in cash or subject
          to applicable law, with Bank common stock previously acquired by the
          optionee and held by the optionee for a period of at least six months.

2.   AMENDMENT OF SECTION 3. A new sentence shall be added after the sentence in
     the aforementioned amendment to read in the entirety as follows:

          The equivalent dollar value of shares used to effect a purchase
          shall be the fair market value of the shares on the date of the
          exercise.

PLUMAS BANK                                        OPTIONEE

/s/ W. E. ELLIOTT                                 /s/ DOUGLAS BIDDLE
------------------------------------               ----------------------------
William E. Elliott,                                Douglas N. Biddle
President & CEO

                                       5<PAGE>
                                                                    Exhibit 10.6

                     EXECUTIVE SALARY CONTINUATION AGREEMENT

        This Agreement is made and entered into this 2nd day of June, 1994, by
and between Plumas Bank, a corporation organized under the laws of the state of
California (the "Employer"), and Douglas N. Biddle, 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
Senior Vice President/Chief Administrative Officer and Cashier;

WHEREAS, the Executive's experience and knowledge of the affairs of the Employer
and the banking industry are extensive and valuable;

WHEREAS, it is deemed to be in the best interests of the Employer to provide the
Executive with certain salary continuation benefits, on the terms and conditions
set forth herein, in order to reasonably induce the Executive to remain in the
Employer's employment; and

WHEREAS, the Executive and the Employer wish to specify in writing the terms and
conditions upon which this additional compensatory incentive will be provided to
the Executive, or to the Executive's spouse or the Executive's designated
beneficiaries, as the case may be;

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 as follows:

                                    AGREEMENT

1. TERMS AND DEFINITIONS.

1.1. ADMINISTRATOR. The Employer shall be the "Administrator" and, solely for
the purposes of ERISA, the "fiduciary" of this Agreement where a fiduciary is
required by ERISA.

1.2. ANNUAL BENEFIT. The term "Annual Benefit" shall mean an annual sum of
Forty-Five Thousand Dollars ($45,000) 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 (e.g., FICA, FUTA, SDI).

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1.3. APPLICABLE PERCENTAGE. The term "Applicable Percentage" shall mean that
percentage listed on Schedule "A" attached hereto which is adjacent to the
number of complete years (with a "year" being the performance of personal
services for or on behalf of the Employer as an employee for a period of 365
days) which have elapsed starting from the Effective Date of this Agreement and
ending on the date payments are to first begin under the terms of this
Agreement. In the event that Executive's employment with Employer is terminated
other than by reason of death, disability, Retirement or voluntary termination
on the part of Executive, Executive shall be deemed for purposes of determining
the number of complete years to have completed a year of service in its entirety
for any partial year of service after the last anniversary date of the Effective
Date during which the Executive's employment is terminated.

1.4. BENEFICIARY. The term "beneficiary" or "designated beneficiary" shall mean
the person or persons whom the Executive shall designate in a valid Beneficiary
Designation, a copy of which is attached hereto as Exhibit "B", to receive the
benefits provided hereunder. A Beneficiary Designation shall be valid only if it
is in the form attached hereto and made a part hereof and is received by the
Administrator prior to the Executive's death.

1.5 THE CODE. The "Code" shall mean the Internal Revenue code of 1986, as
amended ( the "Code").

1.6. DISABILITY/DISABLED. The term "Disability" or "Disabled" shall have the
same meaning given such term in the principal disability insurance policy
covering the Executive, which is incorporated herein by reference. In the event
the Executive is not covered by a disability policy containing a definition of
"Disability" or "Disabled," these terms shall mean an illness or incapacity
which, having continued for a period of one hundred and eighty (180) consecutive
days, prevents the Executive from adequately performing the Executive's regular
employment duties. The determination of whether the Executive is Disabled shall
be made by an independent physician selected by mutual agreement of the parties.

1.7. EARLY RETIREMENT DATE. The term "Early Retirement Date" shall mean the
Retirement (as defined below) of the Executive on a date which occurs after the
date upon which the Executive has, measured in the aggregate and from the date
of this Agreement to the date of the Executive's Retirement, been employed by
the Employer for no less than nineteen (19) years.

1.8. EFFECTIVE DATE. The term "Effective Date" shall mean the date upon which
this Agreement was entered into by the parties, as first written above.

1.9. ERISA. The term "ERISA" shall mean the Retirement Income-security Act of
1974, as amended.

1.10. PLAN YEAR. The term "Plan Year" shall mean the Employer's calendar year.

<PAGE>

1.11. RETIREMENT. The term "Retirement" or "Retires" shall refer to the date
which the Executive acknowledges -in writing to Employer to be the last day he
will provide any significant personal services, whether as an employee, director
or independent consultant or contractor, to Employer or to, for, or on behalf
of, any other business entity conducting, performing or making available to any
person or entity banking or other financial services of any kind. For purposes
of this Agreement, the phrase "significant personal services" shall mean more
than ten (10) hours of personal services rendered to one or more individuals or
entities in any thirty (30) day period.

1.12. SURVIVING SPOUSE. The term "Surviving Spouse" shall mean the person, if
any, who shall be legally married to the Executive on the date of the
Executive's death.

2. SCOPE. PURPOSE AND EFFECT.

2.1. CONTRACT OF EMPLOYMENT. Although this Agreement is intended to provide the
Executive with an additional incentive to remain in the employ of the Employer,
this Agreement shall not be deemed to constitute a contract of employment
between the Executive and the Employer nor shall any provision of this Agreement
restrict or expand the right of the Employer to terminate the Executive's
employment. This Agreement shall have no impact or effect upon any separate
written Employment Agreement which the Executive may have with the Employer, it
being the parties' intention and agreement that unless this Agreement is
specifically referenced in said Employment Agreement (or any modification
thereto), this Agreement (and the Employer's obligations hereunder) shall stand
separate and apart and shall have no effect upon, nor be affected by, the terms
and provisions of said Employment Agreement.

2.2. FRINGE BENEFIT. The benefits provided by this Agreement are granted by the
Employer as a fringe benefit to the Executive and are not a part of any salary
reduction plan or any arrangement deferring a bonus or a salary increase. The
Executive has no option to take any current payments or bonus in lieu of the
benefits provided by this Agreement.

3. PAYMENTS UPON OR AFTER RETIREMENT.

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, as defined above, for
a period of fifteen (15) years, in One Hundred Eighty (180) 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.

<PAGE>

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 One Hundred
Eighty (180) 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. PAYMENTS IN THE EVENT DEATH OR DISABILITY OCCURS PRIOR TO RETIREMENT.

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 (60)
years of age or if the Executive chooses to work after attaining Sixty
(60) years of age, but dies before Retirement, the Employer agrees to pay the
Annual Benefit for a period of fifteen (15) years in One Hundred Eighty (180)
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 with the Applicable Percentage determined by
the applicable years of service, including years of service with Employer prior
to execution of this Agreement, at the time of death, as set forth on Schedule
"A". If a valid Beneficiary Designation is not in effect, then the amounts due
to 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.

4.2. 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 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, as set forth on Schedule "A", for fifteen (15) years, as
determined by the applicable years of service at the time of disability, as
defined above, in One Hundred Eighty (180) 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

<PAGE>

4.2. PAYMENTS IN THE EVENT OF DISABILITY PRIOR TO RETIREMENT. (CONTINUED) 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. PAYMENTS IN THE EVENT EMPLOYMENT IS TERMINATED OTHER THAN BY DEATH,
DISABILITY, OR RETIREMENT. 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 or Retirement, the Executive or his legal
representative shall be entitled to be paid the Annual Benefit for a period of
fifteen (15) years, as determined by the applicable years of service at the time
of the Executive's termination of employment with the Employer, in One Hundred
Eighty (180) 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 attains sixty-five (65) years of age or, if earlier, beginning
with the month following the Executive's death.

6. PAYMENTS IN THE EXECUTIVE ELECTS EARLY RETIREMENT. The Executive shall have
the right to elect to receive the Annual Benefit prior to attaining sixty-five
(65) years of age if he chooses to Retire on a date which constitutes an Early
Retirement Date as defined in subparagraph 1.7 above. In the event the Executive
elects to Retire on a date which constitutes an Early Retirement Date, the
Executive shall be entitled to be paid the Annual Benefit for a period of
fifteen (15) years, as set forth on Schedule "A" and determined by the
applicable years of service at the time of early retirement, as defined above,
in One Hundred Eighty (180) 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 Early Retirement Date occurs.

7. RIGHT TO DETERMINE FUNDING METHODS. The Employer reserves the right to
determine, in its sole and absolute discretion, whether, to what extent and by
what method, if any, to provide for the payment of the amounts which may be
payable to the Executive, the Executive's spouse or the Executive's
beneficiaries under the terms of this Agreement. In the event that the Employer
elects to fund this Agreement, in whole or in part, through the use of life
insurance or annuities, or both, the Employer shall determine the ownership and
beneficial interests of any such policy of life insurance or annuity. The
Employer further reserves the right, in its sole and absolute discretion, to
terminate any such policy, and any other device used to fund its obligations
under this Agreement, at any time, in whole or in part. Consistent with
Paragraph 9 below, neither

<PAGE>

7. RIGHT TO DETERMINE FUNDING METHODS. (CONTINUED)

the Executive, the Executive's spouse nor the Executive's beneficiaries shall
have any right, title or interest in or to any funding source or amount utilized
by the Employer pursuant to this Agreement, and any such funding source or
amount shall not, constitute security for the performance of the Employer's
obligations pursuant to this Agreement. In connection with the foregoing, the
Executive agrees to execute such documents and undergo such medical examinations
or tests which the Employer may request and which may be reasonably necessary to
facilitate any funding for this Agreement including, without limitation the
Employer's acquisition of any policy of insurance or annuity. Furthermore, a
refusal by the Executive to consent to participate in and undergo any such
medical examinations or tests shall result in the immediate termination of this
Agreement and the immediate forfeiture by the Executive, the Executive's spouse
and the Executive's beneficiaries of any and all rights to payment hereunder.

8. CLAIMS PROCEDURE. The Employer shall, but only to the extent necessary to
comply with ERISA, be designated as the named fiduciary under this Agreement and
shall have authority to control and manage the operation and administration of
this Agreement. Consistent therewith, the Employer shall make all determinations
as to the rights to benefits under this Agreement. Any decision by the Employer
denying a claim by the Executive, the Executive's spouse, or the Executive's
beneficiary for benefits under this Agreement shall be stated in writing and
delivered or mailed, via registered or certified mail, to the Executive, the
Executive's spouse or the Executive's beneficiary, as the case may be. Such
decision shall set forth the specific reasons for the denial of a claim. In
addition, the Employer shall provide the Executive, the Executive's spouse or
the Executive's beneficiary with a reasonable opportunity for a full and fair
review of the decision denying such claim.

9. STATUS OF AN UNSECURED GENERAL CREDITOR. Notwithstanding anything contained
herein to the contrary: (i) neither the Executive, the Executive's spouse and
the Executive's beneficiary shall have any legal or equitable rights, interests
or claims in or to any specific property or assets of the Employer; (ii) none of
the Employer's assets shall be held in or under any trust for the benefit of the
Executive, the Executive's spouse or the Executive's beneficiary or held in any
way as security for the fulfillment of the obligations of the Employer under
this Agreement; (iii) all of the Employer's assets shall be and remain the
general unpledged and unrestricted assets of the Employer; (iv) the Employer's
obligation under this Agreement shall be that of an unfunded and unsecured
promise by the Employer to pay money in the future; and (v) the Executive, the
Executive's spouse and the Executive's beneficiary shall be unsecured general
creditors with respect to any benefits which may be payable under the terms of
this Agreement.

10. COVENANT NOT TO INTERFERE. The Executive agrees not to take any action which
prevents the Employer from collecting the proceeds of any life insurance policy
which the Employer may happen to own at the time of the Executive's death and of
which the Employer is the designated beneficiary.

<PAGE>

11. MISCELLANEOUS.

11.1 OPPORTUNITY TO CONSULT WITH INDEPENDENT COUNSEL. The Executive acknowledge
that he has been afforded the opportunity to consult with independent counsel of
his choosing regarding both the benefits granted to him under the terms of this
Agreement and the terms and conditions which may affect the Executive's right to
these benefits. The Executive further acknowledges that he has read, understands
and consents to all of the terms and conditions of this Agreement, and that he
enters into this Agreement with a full understanding of its terms and
conditions.

11.2. ARBITRATION OF DISPUTES. 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 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 the event JAMS is unable or unwilling to conduct the arbitration provided for
under the terms of this Paragraph, 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 the binding
arbitration referred to in this Paragraph. 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. The arbitration shall be subject to such rules of
procedure used or established by JAMS, or if there are none, the rules of
procedure used or established by AAA. 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 Quincy, California, unless otherwise agreed to
by the parties.

11.3. ATTORNEYS' FEES. In the event of any arbitration or litigation concerning
any controversy, claim or dispute between the parties hereto, arising out of or
relating to this Agreement or the breach hereof, or the interpretation hereof,
the prevailing party shall be entitled to recover from the losing party
reasonable expenses, attorneys' fees and costs incurred in connection therewith
or in the enforcement or collection of any judgment or award rendered therein.
The "prevailing party" means the party determined by the arbitrator(s) or court,
as the case may be, to have most nearly prevailed, even if such party did not
prevail in all matters, not necessarily the one in whose favor a judgment is
rendered.

<PAGE>

11.4. NOTICE. Any notice required or permitted of either the Executive or the
Employer under this Agreement shall be deemed to have been duly given, if by
personal delivery upon the date received by the party or its authorized
representative. If by facsimile, upon transmission to a telephone number
previously provided by the party to whom the facsimile is transmitted as
reflected in the records of the party transmitting the facsimile and upon
reasonable confirmation of such transmission. and if by mail, on the third day
after mailing via U.S. first class mail, registered or certified, postage
prepaid and return receipt requested, and addressed to the party at the address
given below for the receipt of notices, or such changed address as may be
requested in writing by a party.

If to the Employer:

        Plumas Bank
        P.O. Box 10150 Quincy, California 95971
        Attn: Mr. Jerry V. Kehr

If to the Executive:

        Douglas N. Biddle
        550 Hillside Drive
        Quincy, California 95971

11.5. ASSIGNMENT. Neither the Executive, the Executive's spouse, nor any other
beneficiary under this Agreement shall have any power or right to transfer,
assign, hypothecate, modify or otherwise encumber any part or all of the amounts
payable hereunder, nor, prior to payment in accordance with the terms of this
Agreement, shall any portion of such amounts be: (i) subject to seizure by any
creditor of any such beneficiary, by a proceeding at law or in equity, for the
payment of any debts, judgments, alimony or separate maintenance obligations
which may be owed by the Executive, the Executive's spouse, or any designated
beneficiary; or (ii) transferable by operation of law in the event of
bankruptcy, insolvency or otherwise. Any such attempted assignment or transfer
shall be void and shall terminate this Agreement, and the Employer shall
thereupon have no further liability hereunder.

11.6. BINDING EFFECT/MERGER OR REORGANIZATION. This Agreement shall be binding
upon and inure to the benefit of the Executive and the Employer and, as
applicable, their respective heirs, beneficiaries, legal representatives,
agents, successors and assigns. Accordingly, the Employer shall not merge or
consolidate into or with another corporation, or reorganize or sell
substantially all of its assets to another corporation, firm or person, unless
and until such succeeding or continuing corporation, firm or person agrees to
assume and discharge the obligations of the Employer under this Agreement. Upon
the occurrence of such event, the term "Employer" as used in this Agreement
shall be deemed to refer to such surviving or successor firm, person, entity or
corporation.

11.7. NONWAIVER. The failure of either party to enforce at any time or for any
period of time anyone or more of the terms or conditions of this Agreement shall
not be a waiver of such term(s) or condition(s) or of that party's right
thereafter to enforce each and every term and condition of this Agreement.

<PAGE>

11.8. PARTIAL INVALIDITY. If any term, provision covenant or condition of this
Agreement is determined by a~ arbitrator or a court, as the case may be, to be
invalid, void, or unenforceable, such determination shall not render any other
term, provision, covenant or condition invalid, void or unenforceable, and the
Agreement shall remain in full force and effect notwithstanding such partial
invalidity.

11.9. ENTIRE AGREEMENT. This Agreement supersedes any and all other agreements,
either oral or in writing, between the parties with respect to the subject
matter of this Agreement and contains all of the covenants and agreements
between the parties with respect thereto. 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.

11.10. MODIFICATIONS. Any modification of this Agreement shall be effective only
if it is in writing and signed by each party or such party's authorized
representative.

11.11. PARAGRAPH HEADINGS. The paragraph headings used in this Agreement are
included solely for the convenience of the parties and shall not affect or be
used in connection with the interpretation of this Agreement.

11.12. NO STRICT CONSTRUCTION. The language used in this Agreement shall be
deemed to be the language chosen by the parties hereto to express their mutual
intent, and no rule of strict construction, will be applied against any person.

11.13. GOVERNING LAW. The laws of the state of California, other than those laws
denominated choice of law rules, and, where applicable, the rules and
regulations of: (i) the California Superintendent of Banks; (ii) the Board of
Governors of the Federal Reserve System; (iii) the Federal Deposit Insurance
corporation; or (iv) any other regulatory agency or governmental authority
having jurisdiction over the Employer, shall govern the validity,
interpretation, construction and effect of this Agreement.

IN WITNESS WHEREOF, the Employer and the Executive have executed this Agreement
on the date first above-written in the City of Quincy, Plumas County,
California.

THE EMPLOYER:                                     THE EXECUTIVE:

PLUMAS BANK, a California Corporation

By:  /s/ JERRY V. KEHR                            /s/ D.N. BIDDLE
     -----------------                            ------------------------

JERRY V. KEHR                                     DOUGLAS N. BIDDLE
Chairman of the Board

    /s/ ROBERT SCHOENSEE
    --------------------
    ROBERT SCHOENSEE
    VICE-CHAIRMAN OF THE BOARD
<PAGE>

                                   SCHEDULE A

<TABLE>
<CAPTION>
NUMBER OF COMPLETE
YEARS WHICH HAVE ELAPSED                  APPLICABLE PERCENTAGE
------------------------                  ---------------------
<S>                                       <C>
1 ............................................            4.74%

2 ............................................            9.48%

3 ............................................           14.22%

4 ............................................           18.96%

5 ............................................           23.70%

6 ............................................           28.44%

7 ............................................           33.18%

8 ............................................           38.08%

9 ............................................           42.66%

10 ...........................................           47.40%

11 ...........................................           52.14%

12 ...........................................           56.88%

13 ...........................................           61.62%

14 ...........................................           66.36%

15 ...........................................           71.10%

16 ...........................................           75.84%

17 ...........................................           80.58%

18 ...........................................           85.32%

19 (early retirement age - 60)................           90.06%

20 ...........................................           92.06%

21 ...........................................           94.06%

22 ...........................................           96.06%

23 ...........................................           98.06%

24 or more....................................          100.00%

</TABLE>

<PAGE>

                                FIRST AMENDMENT
                                     TO THE
                   EXECUTIVE SALARY CONTINUATION AGREEMENT FOR
                               WILLIAM E. ELLIOTT

      THIS AMENDMENT is made this 16th day of February, 2000, by and between
PLUMAS BANK, a corporation organized under the laws of the State of California
(the "Employer") and DOUGLAS N. BIDDLE (the "Executive").

      On June 2, 1994, the Employer and the Executive executed an Executive
Salary Continuation Agreement (the "Agreement"). The undersigned hereby amends,
in part, said Agreement to provide the Executive with an additional benefit
which will increase the Annual Benefit from $45,000 to $62,000 and to provide
for a change of control benefit and a limit under 280G of the Internal Revenue
Code of 1986, as amended. Therefore, it is necessary to amend the following
sections:

      Article 1.2 shall be deleted in its entirety and the following new Article
1.2 shall be added to the Agreement as follows:

      1.2 Annual Benefit. The term "Annual Benefit" shall mean an annual sum of
Sixty-Two Thousand Dollars ($62,000) 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 (e.g., FICA, FUTA, SDI).

                                        1
<PAGE>
ARTICLE 5 SHALL BE DELETED IN ITS ENTIRETY AND THE FOLLOWING NEW ARTICLES 5.1
AND 5.2 SHALL BE ADDED TO THE AGREEMENT AS FOLLOWS:

       5.1. 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 5.2, the Executive or his legal representative shall be entitled to be
paid the Annual Benefit, as set forth in Schedule "A" for a period of fifteen
(15) years, as determined by the applicable years of service at the time of the
Executive's termination of employment with the Employer, in One Hundred Eighty
(180) 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 terminates employment and attains sixty-five (65) years of age or, if
earlier, beginning with the month following the Executive's death.

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

A "Terminating Event" shall be defined as anyone of the following events: (i)
merger or consolidation of the Employer where the Employer's shareholders
immediately prior to the merger or consolidation will not own at least a
majority of the outstanding voting shares of the Employer (or Employer's
successor, if the Employer 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 (consisting of at least a majority of
the outstanding voting shares of the Employer) 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 fifteen (15) years, in One Hundred Eighty (180) 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 5.2 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 5.2, 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 5.2 shall not be applicable.

In Witness whereof, the "Executive and the Employer have signed this Agreement".

          EXECUTIVE:                               EMPLOYER:

                                                   PLUMAS BANK

          s/s  D.N. BIDDLE                         By  s/s JERRY V. KEHR
          -----------------------                      -----------------
               DOUGLAS N. BIDDLE                   Title Chairman of Board

                                        2

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