Document:

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                                                                    EXHIBIT 10.7

                                   ADDENDUM A

                                   PLUMAS BANK

                             SPLIT DOLLAR AGREEMENT

THIS AGREEMENT is made and entered into this 24th day of January, 2002, by and
between PLUMAS BANK, a corporation organized under the laws of the State of
California located in Quincy, California (the "Employer"), and DOUGLAS N.
BIDDLE (the "Executive"). This Agreement shall append the Split Dollar
Endorsement entered into on even date herewith, or as subsequently amended, by
and between the aforementioned parties.

                                  INTRODUCTION

To encourage the Executive to remain an employee of the Employer, the Employer
is willing to divide the death proceeds of a life insurance policy on the
Executive's life. The Employer will pay life insurance premiums from its general
assets.

                                    ARTICLE 1

                               GENERAL DEFINITIONS

The following terms shall have the meanings specified:

1.1 "Insurer" means Alexander Hamilton Life Insurance Company.

1.2 "Policy" means insurance policy no. 8795333 issued by the Insurer.

1.3 "Insured" means the Executive.

1.4 "Normal Retirement Age" means the Executive's 65th birthday.

1.5 "Termination of Employment" means the Executive ceasing to be employed by
the Employer for any reason whatsoever, other than by reason of an approved
leave of absence. For purposes of this Agreement, if there is a dispute over the
employment status of the Executive or the date of the Executive's Termination of
Employment, the Employer shall have the sole and absolute right to determine the
termination date.

                                    ARTICLE 2
                           POLICY OWNERSHIP/INTERESTS

2.1 Employer Ownership. The Employer is the sole owner of the Policy and shall
have the right to exercise all incidents of ownership. The Employer shall be the
beneficiary of the death proceeds remaining after the Executive's interest has
been paid pursuant to Article 2.2 below.
<PAGE>
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 $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 Amendment thereto of even date herewith, between the Employer
and the Executive (collectively the "Salary Continuation Agreement").

2.3 Option to Purchase. The Employer shall not sell, surrender or transfer
ownership of the Policy while this Agreement is in effect without first giving
the Executive or the Executive's transferee the option to purchase the Policy
for a period of 60 days from written notice of such intention. The purchase
price shall be an amount equal to the cash surrender value of the Policy. This
provision shall not impair the right of the Employer to terminate this
Agreement.

                                    ARTICLE 3
                                    PREMIUMS

3.1 Premium Payment. The Employer shall pay any premiums due on the Policy.

3.2 Imputed Income. The Employer shall impute income to the Executive in an
amount equal to the current term rate for the Executive's age multiplied by the
aggregate death benefit payable to the Executive's beneficiary. The "current
term rate" is the minimum amount required to be imputed under Revenue Rulings
64-328 and 66-110, or any subsequent applicable authority.

3.3 Cash Payment. The Employer shall annually pay to the Executive an amount
necessary to pay the federal and state income taxes attributable to the imputed
income and to the additional cash payments under this section. In calculating
the cash payments due from the Employer, the Employer shall use the Executive's
actual marginal income tax bracket for the calendar year immediately preceding
the payment to the Executive. In the event the Executive retires prior to the
Normal Retirement Age or ceases to be employed by the Employer prior to such
age, the cash payments shall cease as of the date of such occurrence.

                                    ARTICLE 4
                                   ASSIGNMENT

The Executive may assign without consideration all interests in the Policy and
in this Agreement to any person, entity or trust. In the event the Executive
transfers all of the Executive's interest in the Policy, then all of the
Executive's interest in the Policy and in the Agreement shall be vested in the
Executive's transferee, who shall be substituted as a party hereunder and the
Executive shall have no further interest in the Policy or in this Agreement.

                                    ARTICLE 5
                                     INSURER

The Insurer shall be bound only by the terms of the Policy. Any payments the
Insurer makes or actions it takes in accordance with the Policy shall fully
discharge it from all claims, suits and

<PAGE>

demands of all entities or persons. The Insurer shall not be bound by or be
deemed to have notice of the provisions of this Agreement.

                                   ARTICLE 6
                                CLAIMS PROCEDURE

6.1 Claims Procedure. The Employer shall notify any person or entity that makes
a claim under this Agreement (the "Claimant") in writing, within 90 days of
Claimant's written application for benefits, of his or her eligibility or
ineligibility for benefits under this Agreement. If the Employer determines that
the Claimant is not eligible for benefits or full benefits, the notice shall set
forth (1) the specific reasons for such denial, (2) a specific reference to the
provisions of this Agreement on which the denial is based, (3) a description of
any additional information or material necessary for the Claimant to perfect his
or her claim, and a description of why it is needed, and (4) an explanation of
this Agreement's claims review procedure and other appropriate information as to
the steps to be taken if the Claimant wishes to have the claim reviewed. If the
Employer determines that there are special circumstances requiring additional
time to make a decision, the Employer shall notify the Claimant of the special
circumstances and the date by which a decision is expected to be made, and may
extend the time for up to an additional 90 days.

6.2 Review Procedure. If the Claimant is determined by the Employer not to be
eligible for benefits, or if the Claimant believes that he or she is entitled to
greater or different benefits, the Claimant shall have the opportunity to have
such claim reviewed by the Employer by filing a petition for review with the
Employer within 60 days after receipt of the notice issued by the Employer. Said
petition shall state the specific reasons which the Claimant believes entitle
him or her to benefits or to greater or different benefits. Within 60 days after
receipt by the Employer of the petition, the Employer shall afford the Claimant
(and counsel, if any) an opportunity to present his or her position to the
Employer verbally or in writing, and the Claimant (or counsel) shall have the
right to review the pertinent documents. The Employer shall notify the Claimant
of its decision in writing within the sixty-day period, stating specifically the
basis of its decision, written in a manner to be understood by the Claimant and
the specific provisions of this Agreement on which the decision is based. If,
because of the need for a hearing, the 60-day period is not sufficient, the
decision may be deferred for up to another 60-day period at the election of the
Employer, but notice of this deferral shall be given to the Claimant.

                                    ARTICLE 7
                           AMENDMENTS AND TERMINATION

This Agreement may be amended or terminated only by a written agreement signed
by the Employer and the Executive. However, unless otherwise agreed to by the
Employer and the Executive, this Agreement will automatically terminate if the
Executive ceases to be employed by the Employer for any reason whatsoever (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 Salary
Continuation Agreement.

                                    ARTICLE 8
                                  MISCELLANEOUS

8.1 Binding Effect. This Agreement shall bind the Executive and the Employer and
their beneficiaries, survivors, executors, administrators and transferees, and
any Policy beneficiary.

8.2 No Guarantee of Employment. This Agreement is not an employment policy or
contract. It does not give the Executive the right to remain an employee of the
Employer, nor does it interfere with the Employer's right to discharge the
Executive. It also does not require the Executive to remain an employee nor
interfere with the Executive's right to terminate employment at any time.

<PAGE>

8.3 Applicable Law. The Agreement and all rights hereunder shall be governed by
and construed according to the laws of California, except to the extent
preempted by the laws of the United States of America.

8.4 Reorganization. The Employer shall not merge or consolidate into or with
another company, or reorganize, or sell substantially all of its assets to
another company, firm or person unless such succeeding or continuing company,
firm or person agrees to assume and discharge the obligations of the Employer.

8.5 Notice. Any notice, consent or demand required or permitted to be given
under the provisions of this Split Dollar Agreement by one party to another
shall be in writing, shall be signed by the party giving or making the same, and
may be given either by delivering the same to such other party personally, or by
mailing the same, by United States certified mail, postage prepaid, to such
party, addressed to his or her last known address as shown on the records of the
Employer. The date of such mailing shall be deemed the date of such mailed
notice, consent or demand.

8.6 Entire Agreement. This Agreement constitutes the entire agreement between
the Employer and the Executive as to the subject matter hereof. No rights are
granted to the Executive by virtue of this Agreement other than those
specifically set forth herein.

8.7 Administration. The Employer shall have powers which are necessary to
administer this Agreement, including but not limited to:

     (a)  Interpreting the provisions of the Agreement;

     (b)  Establishing and revising the method of accounting for the Agreement;

     (c)  Maintaining a record of benefit payments; and

     (d)  Establishing rules and prescribing any forms necessary or desirable to
administer the Agreement.

8.8 Named Fiduciary. The Employer shall be the named fiduciary and plan
administrator under the Agreement. The named fiduciary may delegate to others
certain aspects of the management and operation responsibilities of the plan
including the employment of advisors and the delegation of ministerial duties to
qualified individuals.

IN WITNESS WHEREOF, the parties have executed this Agreement the day and year
first above written.

EXECUTIVE:                                 EMPLOYER:

                                           PLUMAS BANK

/S/ D.N. BIDDLE                            BY  /S/ JERRY V. KEHR
------------------------                   ---------------------------
    Douglas N. Biddle                      TITLE CHAIRMAN OF BOARD

<PAGE>

                                   ADDENDUM B

                                   PLUMAS BANK

                             SPLIT DOLLAR AGREEMENT

THIS AGREEMENT is made and entered into this 24th day of January, 2002, by and
between PLUMAS BANK, a corporation organized under the laws of the State of
California located in Quincy, California (the "Employer"), and DOUGLAS N. BIDDLE
(the "Executive"). This Agreement shall append the Split Dollar Endorsement
entered into on even date herewith, or as subsequently amended, by and between
the aforementioned parties.

                                  INTRODUCTION

To encourage the Executive to remain an employee of the Employer, the Employer
is willing to divide the death proceeds of a life insurance policy on the
Executive's life. The Employer will pay life insurance premiums from its general
assets.

                                    ARTICLE 1

                               GENERAL DEFINITIONS

The following terms shall have the meanings specified:

1.1 "Insurer" means Great-West Life & Annuity Insurance Company.

1.2 "Policy" means insurance policy no. 86000748 issued by the Insurer.

1.3 "Insured" means the Executive.

1.4 "Normal Retirement Age" means the Executive's 65th birthday.

1.5 "Termination of Employment" means the Executive ceasing to be employed by
the Employer for any reason whatsoever, other than by reason of an approved
leave of absence. For purposes of this Agreement, if there is a dispute over the
employment status of the Executive or the date of the Executive's Termination of
Employment, the Employer shall have the sole and absolute right to determine the
termination date.

                                    ARTICLE 2
                           POLICY OWNERSHIP/INTERESTS

2.1 Employer Ownership. The Employer is the sole owner of the Policy and shall
have the right to exercise all incidents of ownership. The Employer shall be the
beneficiary of the death proceeds remaining after the Executive's interest has
been paid pursuant to Article 2.2 below.
<PAGE>
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 $100,000. 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 Amendment thereto of even date herewith, between the Employer
and the Executive (collectively the "Salary Continuation Agreement").

2.3 Option to Purchase. The Employer shall not sell, surrender or transfer
ownership of the Policy while this Agreement is in effect without first giving
the Executive or the Executive's transferee the option to purchase the Policy
for a period of 60 days from written notice of such intention. The purchase
price shall be an amount equal to the cash surrender value of the Policy. This
provision shall not impair the right of the Employer to terminate this
Agreement.

                                   ARTICLE 3
                                    PREMIUMS

3.1 Premium Payment. The Employer shall pay any premiums due on the Policy.

3.2 Imputed Income. The Employer shall impute income to the Executive in an
amount equal to the current term rate for the Executive's age multiplied by the
aggregate death benefit payable to the Executive's beneficiary. The "current
term rate" is the minimum amount required to be imputed under Revenue Rulings
64-328 and 66-110, or any subsequent applicable authority.

3.3 Cash Payment. The Employer shall annually pay to the Executive an amount
necessary to pay the federal and state income taxes attributable to the imputed
income and to the additional cash payments under this section. In calculating
the cash payments due from the Employer, the Employer shall use the Executive's
actual marginal income tax bracket for the calendar year immediately preceding
the payment to the Executive. In the event the Executive retires prior to the
Normal Retirement Age or ceases to be employed by the Employer prior to such
age, the cash payments shall cease as of the date of such occurrence.

                                   ARTICLE 4
                                   ASSIGNMENT

The Executive may assign without consideration all interests in the Policy and
in this Agreement to any person, entity or trust. In the event the Executive
transfers all of the Executive's interest in the Policy, then all of the
Executive's interest in the Policy and in the Agreement shall be vested in the
Executive's transferee, who shall be substituted as a party hereunder and the
Executive shall have no further interest in the Policy or in this Agreement.

                                   ARTICLE 5
                                    INSURER

The Insurer shall be bound only by the terms of the Policy. Any payments the
Insurer makes or actions it takes in accordance with the Policy shall fully
discharge it from all claims, suits and

<PAGE>

demands of all entities or persons. The Insurer shall not be bound by or be
deemed to have notice of the provisions of this Agreement.

                                   ARTICLE 6
                                CLAIMS PROCEDURE

6.1 Claims Procedure. The Employer shall notify any person or entity that makes
a claim under this Agreement (the "Claimant") in writing, within 90 days of
Claimant's written application for benefits, of his or her eligibility or
ineligibility for benefits under this Agreement. If the Employer determines that
the Claimant is not eligible for benefits or full benefits, the notice shall set
forth (1) the specific reasons for such denial, (2) a specific reference to the
provisions of this Agreement on which the denial is based, (3) a description of
any additional information or material necessary for the Claimant to perfect his
or her claim, and a description of why it is needed, and (4) an explanation of
this Agreement's claims review procedure and other appropriate information as to
the steps to be taken if the Claimant wishes to have the claim reviewed. If the
Employer determines that there are special circumstances requiring additional
time to make a decision, the Employer shall notify the Claimant of the special
circumstances and the date by which a decision is expected to be made, and may
extend the time for up to an additional 90 days.

6.2 Review Procedure. If the Claimant is determined by the Employer not to be
eligible for benefits, or if the Claimant believes that he or she is entitled to
greater or different benefits, the Claimant shall have the opportunity to have
such claim reviewed by the Employer by filing a petition for review with the
Employer within 60 days after receipt of the notice issued by the Employer. Said
petition shall state the specific reasons which the Claimant believes entitle
him or her to benefits or to greater or different benefits. Within 60 days after
receipt by the Employer of the petition, the Employer shall afford the Claimant
(and counsel, if any) an opportunity to present his or her position to the
Employer verbally or in writing, and the Claimant (or counsel) shall have the
right to review the pertinent documents. The Employer shall notify the Claimant
of its decision in writing within the sixty-day period, stating specifically the
basis of its decision, written in a manner to be understood by the Claimant and
the specific provisions of this Agreement on which the decision is based. If,
because of the need for a hearing, the 60-day period is not sufficient, the
decision may be deferred for up to another 60-day period at the election of the
Employer, but notice of this deferral shall be given to the Claimant.

                                   ARTICLE 7
                           AMENDMENTS AND TERMINATION

This Agreement may be amended or terminated only by a written agreement signed
by the Employer and the Executive. However, unless otherwise agreed to by the
Employer and the Executive, this Agreement will automatically terminate if the
Executive ceases to be employed by the Employer for any reason whatsoever (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 Salary
Continuation Agreement.

                                   ARTICLE 8
                                 MISCELLANEOUS

8.1 Binding Effect. This Agreement shall bind the Executive and the Employer and
their beneficiaries, survivors, executors, administrators and transferees, and
any Policy beneficiary.

8.2 No Guarantee of Employment. This Agreement is not an employment policy or
contract. It does not give the Executive the right to remain an employee of the
Employer, nor does it interfere with the Employer's right to discharge the
Executive. It also does not require the Executive to remain an employee nor
interfere with the Executive's right to terminate employment at any time.

<PAGE>
8.3 Applicable Law. The Agreement and all rights hereunder shall be governed by
and construed according to the laws of California, except to the extent
preempted by the laws of the United States of America.

8.4 Reorganization. The Employer shall not merge or consolidate into or with
another company, or reorganize, or sell substantially all of its assets to
another company, firm or person unless such succeeding or continuing company,
firm or person agrees to assume and discharge the obligations of the Employer.

8.5 Notice. Any notice, consent or demand required or permitted to be given
under the provisions of this Split Dollar Agreement by one party to another
shall be in writing, shall be signed by the party giving or making the same, and
may be given either by delivering the same to such other party personally, or by
mailing the same, by United States certified mail, postage prepaid, to such
party, addressed to his or her last known address as shown on the records of the
Employer. The date of such mailing shall be deemed the date of such mailed
notice, consent or demand.

8.6 Entire Agreement. This Agreement constitutes the entire agreement between
the Employer and the Executive as to the subject matter hereof. No rights are
granted to the Executive by virtue of this Agreement other than those
specifically set forth herein.

8.7 Administration. The Employer shall have powers which are necessary to
administer this Agreement, including but not limited to:

     (a) Interpreting the provisions of the Agreement;

     (b) Establishing and revising the method of accounting for the Agreement;

     (c) Maintaining a record of benefit payments; and

     (d) Establishing rules and prescribing any forms necessary or desirable to
administer the Agreement.

8.8 Named Fiduciary. The Employer shall be the named fiduciary and plan
administrator under the Agreement. The named fiduciary may delegate to others
certain aspects of the management and operation responsibilities of the plan
including the employment of advisors and the delegation of ministerial duties to
qualified individuals.

IN WITNESS WHEREOF, the parties have executed this Agreement the day and year
first above written.

EXECUTIVE:                                    EMPLOYER:

                                              PLUMAS BANK

/S/ D.N. BIDDLE                               BY  /S/ JERRY V. KEHR
----------------------                        -------------------------
    D.N. BIDDLE                               TITLE  CHAIRMAN OF BOARD<PAGE>
                                                                    EXHIBIT 10.8

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 Dennis C. Irvine
("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
<PAGE>

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
<PAGE>

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

                                       3
<PAGE>

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/ DENNIS IRVINE                   By  /s/ JERRY V. KEHR
    -------------------------              -------------------------------------
    Dennis C. Irvine                       Jerry V. Kehr, Chairman of the Board

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

                                       4
<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 Dennis C. Irvine ("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/ DENNIS C. IRVINE
------------------------------------               ----------------------------
W.E. ELLIOTT, President & CEO                      DENNIS C. IRVINE

                                       5

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