Document:

Exhibit 10.53

Exhibit 10.53

SECOND AMENDMENT

TO THE

PLUMAS BANK

EXECUTIVE SALARY CONTINUATION AGREEMENT

DATED JUNE 2, 1994

AND AMENDED FEBRUARY 16, 2000

FOR

DOUGLAS N. BIDDLE

This Second Amendment is adopted this 17th day of December, 2008, effective as of January 1, 2005,
by and between Plumas Bank, a state-chartered commercial bank located in Quincy, California (the
“Employer”), and Douglas N. Biddle (the “Executive”).

RECITALS

WHEREAS, the Executive is in the employ of the Employer, and has faithfully served the Employer for
many years. It is the consensus of the Board of Directors (Board) and its compensation committee
that the Executive’s services have been of exceptional merit and an invaluable contribution to the
profits and position of the Employer in its field of activity; and

WHEREAS, the Employer and the Executive are parties to that certain Executive Salary Continuation
Agreement, dated June 2, 1994, and amended February 16, 2000, (Grandfathered Agreement) which
provides for the payment of certain benefits; and

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, section 885 of the American Jobs Creation Act of 2004 amended the Internal Revenue Code
(Code) to add section 409A implementing detailed rules regarding deferred compensation; and

WHEREAS, Notice 2005-1 was subsequently issued by the Treasury Department providing additional
guidance on transitioning a plan of deferred compensation, such as this Agreement, into compliance
with Code section 409A. Notice 2005-1 announced that a deferred compensation plan subject to Code
section 409A must be operated in good faith compliance with the provisions of Code section
409A and Notice 2005-1 during the 2005 calendar year. Supplemental guidance from the IRS has
extended the good faith compliance period through December 31, 2008. Final Treasury Regulations
were issued on April 10, 2007 and are effective January 1, 2009; and

 

 

 

WHEREAS, pursuant to the Treasury regulations and other published IRS guidance, benefits vested
under the agreement between the Employer and the Executive as of December 31, 2004 (Grandfathered
Agreement) are eligible for grandfather treatment and shall not be subject to Code section 409A;
and

WHEREAS, as of December 31, 2004, Executive was vested in 47.4% of an Annual Benefit of $62,000
payable over 15 years upon the earlier of reaching age 65 or the Executive’s death; and

WHEREAS, the Grandfathered Agreement is being amended by this Second Amendment to the Executive
Salary Continuation Agreement for Douglas N. Biddle of even date herewith (Second Amendment) to
attach a notice of its grandfathered status and to clarify that the benefits vested under the
Grandfathered Agreement are not subject to Code section 409A; and

WHEREAS, since such Second Amendment is not a material modification of the Grandfathered Agreement
that would subject it to Code section 409A; and

WHEREAS, the terms of the Grandfathered Agreement in effect on December 31, 2004, as clarified by
this Second Amendment shall (i) remain in full force and effect, and (ii) govern all benefits
vested as of December 31, 2004. This Second Amendment shall in no way be construed to limit,
replace or abridge benefits payable under the Grandfathered Agreement.

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:

The undersigned hereby amends the Agreement for the purpose of clarifying that the Agreement is
grandfathered from having to comply with section 409A of the Internal Revenue Code unless it is
materially modified and to provide that it shall be materially modified. Therefore, the following
changes shall be made:

The Grandfathered Agreement shall be amended by adding the Notice attached hereto as Exhibit A to
the front thereof as a cover page.

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IN WITNESS OF THE ABOVE, the Employer and the Executive hereby consent to this Second Amendment.

	 	 	 	 	 	 	 	 	 	 	 
	Executive:	 	 	 	Plumas Bank	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ D. N. Biddle	 	 	 	By:	 	/s/ Daniel E. West	 	 
	 	 	 	 	 	 	 	 	 
	Douglas N. Biddle

	 	 	 	 	 	Title:
	 	Chairman of the Board	 	 

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EXHIBIT A

NOTICE

THE BOARD OF DIRECTORS OF THE COMPANY (BOARD) HAS RESOLVED AND DIRECTED THAT THE DEFERRED
COMPENSATION CREDITED TO THE ACCOUNT OF DOUGLAS N. BIDDLE (EXECUTIVE) UNDER THE ATTACHED EXECUTIVE
SALARY CONTINUATION AGREEMENT BETWEEN COMPANY AND EXECUTIVE DATED JUNE 2, 1994, AND AMENDED
FEBRUARY 16, 2000 (GRANDFATHERED AGREEMENT), AND EARNED AND VESTED AS OF DECEMBER 31, 2004 BE
SEGREGATED FROZEN AND GRANDFATHERED UNDER THE PROVISIONS OF THE GRANDFATHERED AGREEMENT IN EFFECT
ON OCTOBER 3, 2004 AND THE INTERNAL REVENUE CODE OF 1986, AS AMENDED AND IN EFFECT PRIOR TO THE
EFFECTIVE DATE OF INTERNAL REVENUE CODE SECTION 409A AS ENACTED BY THE AMERICAN JOBS CREATION ACT
OF 2004; THAT TO PRESERVE SUCH GRANDFATHERING, THE PROVISIONS OF THE ORIGINAL AGREEMENT AS IN
EFFECT ON OCTOBER 3, 2004, SHALL NOT BE MATERIALLY MODIFIED (AS THAT TERM IS DEFINED IN INTERNAL
REVENUE SERVICE NOTICE 2005-1) AFTER OCTOBER 3, 2004 WITH RESPECT TO DEFERRED COMPENSATION THAT WAS
CREDITED TO EXECUTIVE’S ACCOUNT AND EARNED AND VESTED AS OF DECEMBER 31, 2004; AND THAT ANY ATTEMPT
TO SO MATERIALLY MODIFY THE ORIGINAL AGREEMENT AFTER THAT DATE SHALL BE NULL AND VOID.

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- 4 -Exhibit 10.54

Exhibit 10.54

FIRST AMENDMENT

TO THE

PLUMAS BANK

ADDENDUM A

SPLIT DOLLAR AGREEMENT

DATED JANUARY 24, 2002

FOR

DOUGLAS N. BIDDLE

THIS FIRST AMENDMENT is adopted this 17th day of December, 2008, by and between PLUMAS BANK, a
state-chartered commercial bank located in Quincy, California (the “Employer”), and DOUGLAS N.
BIDDLE (the “Executive”).

The Employer and the Executive executed the Addendum A Split Dollar Agreement on January 24,
2002 (the “Agreement”).

The undersigned hereby amends the Agreement for the purpose of bringing the Agreement into
compliance with section 409A of the Internal Revenue Code. In accordance with section III(D)(2) of
IRS Notice 2007-34, such amendments shall not be considered a material modification of the
Agreement under Treasury Regulations section 1.61-22(j). Therefore, the following changes shall be
made:

Section 1.1 of the Agreement shall be deleted in its entirety and replaced by the following:

	1.1	 	“Insurer” means Lincoln National Life Insurance Company.

Section 2.2 of the Agreement shall be deleted in its entirety and replaced by the following:

	2.2	 	Executive’s Interest. The Executive shall have the right to designate the beneficiary
of death proceeds of the Policy in the amount of four hundred fifty-seven thousand three
hundred forty-six dollars ($457,346). The Executive shall also have the right to elect and
change settlement options that may be permitted. However, the Executive, the Executive’s
transferee or the Executive’s beneficiary shall have no rights or interests in the Policy with
respect to that portion of the death proceeds designated in this section 2.2 if the Executive
ceases to be employed by the Employer for any reason whatsoever prior to Normal Retirement Age
(other than by reason of a leave of absence which is approved by the Employer) and has
received or had the opportunity to receive any benefit under the Executive Salary Continuation
Agreement dated June 2, 1994 and a first and second Amendment thereto (Grandfathered
Agreement) as well as the Amended and Restated Executive Salary Continuation Agreement between
the Employer and the Executive (collectively the “Salary Continuation Agreement”).

 

 

 

The following Article 9 shall be added to the Agreement following Section 8.8:

Article 9

Compliance with Code Section 409A

	9.1	 	Definition of Specified Employee. For purposes of this Article 9, the term
“Specified Employee” means an employee who at the time of Termination of Employment is a key
employee of the Company, if any stock of the Company is publicly traded on an established
securities market or otherwise. For purposes of this Agreement, an employee is a key employee
if the employee meets the requirements of Code section 416(i)(1)(A)(i), (ii), or (iii)
(applied in accordance with the regulations thereunder and disregarding section 416(i)(5)) at
any time during the 12-month period ending on December 31 (the “identification period”). If
the employee is a key employee during an identification period, the employee is treated as a
key employee for purposes of this Agreement during the twelve (12) month period that begins on
the first day of April following the close of the identification period.

	9.2	 	Restriction on Timing of Distributions to Specified Employees. Notwithstanding any
provision of this Agreement to the contrary, if the Executive is considered a Specified
Employee, the provisions of this Section 9.2 shall govern any distributions hereunder which
would otherwise be made to the Executive due to a Termination of Employment. Such
distributions shall not be made during the first six (6) months following Termination of
Employment unless Executive dies prior to the end of the six (6) month period. Rather, any
distribution which would otherwise be paid to the Executive during such period shall be
accumulated and paid to the Executive in a lump sum on the first day of the seventh month
following the Termination of Employment. All subsequent distributions shall be paid in the
manner otherwise specified herein.

	9.3	 	Timing of Payments. Any amounts paid to the Executive pursuant to Section 3.3 prior
to Termination of Employment shall be paid within two and one-half (2 1/2) months following
the end of the prior year and shall be treated as short-term deferrals under Code section
409A.

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	9.4	 	Change in Form or Timing of Distributions. All changes in the form or timing of the
amounts paid to the Executive pursuant to Section 3.3 must be made by written amendment to
this Agreement and must comply with the restrictions on changes to payments contained in Code
section 409A and the regulations promulgated thereunder.

	9.5	 	Compliance with Code Section 409A. This Agreement shall be interpreted and
administered consistent with Code section 409A.

IN WITNESS OF THE ABOVE, the Employer and the Executive hereby consent to this First
Amendment.

	 	 	 	 	 	 	 	 	 	 	 
	Executive:

	 	 	 	PLUMAS BANK	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ D. N. Biddle	 	 	 	By:	 	/s/ Daniel E. West	 	 
	 	 	 	 	 	 	 	 	 
	Douglas N. Biddle

	 	 	 	 	 	Title:
	 	Chairman of the Board	 	 

CHANG

RUTHENBERG

& LONG PC

 

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