RENEWAL, EXTENSION, AND MODIFICATION OF LOAN

1.

The maximum amount of the Note and Loan shall be increased to the maximum amount of $15,000,000.00. The parties hereby acknowledge that the outstanding principal balance of the Note is currently $0.00. From the date hereof, Borrower promises to pay to Lender all advances under the Note and Loan, and all other amounts owing under the Loan Documents, and to perform all of the covenants and obligations under the Note and other Loan Documents.

2.

The Rate (as defined in the Note and subsequently amended) is hereby amended to the rate reported in the Credit Markets section (or similar section) of The Wall Street Journal as the U.S. “Prime Rate”, as such is announced from time to time, fluctuating daily. Quarterly payments of interest shall continue to be due as provided in the Note.

3.

The Maturity Date (as defined in the Note and subsequently extended) is hereby further extended to March 2, 2021.

4.

The “unused portion” fee described in Paragraph 3 of the 2019 Modification is hereby deleted.

5.

Borrower hereby renews, but does not extinguish, the Note and the liens and security interests created and evidenced by the Pledge Agreement, Assignment, and all other liens and security interests securing the Note, and Borrower promises to pay to the order of Lender all amounts due under the Note, or so much thereof as may be advanced and outstanding, together with interest at the rate and in the manner specified in the Note, as modified herein, and to observe, comply with and perform each and every of the terms and provisions of the Loan Documents as herein modified.

6.

Borrower hereby extends and reaffirms the liens on the Collateral and all other collateral securing the Note until the indebtedness and the Note, as modified, renewed and extended hereby, have been fully paid, and agrees that the extension, rearrangement and modification set forth herein shall in no manner affect or impair the Note or the liens securing the same, and that said liens shall not in any manner be waived, the purpose of this instrument being simply to extend, rearrange and modify the time or manner of payment of the indebtedness evidenced by the Note, to modify the Note, Pledge Agreement, Assignment, and other Loan Documents, and to carry forward all liens securing the same, which are acknowledged by Borrower to be valid and subsisting. Borrower further agrees that all terms and provisions of the Note and of the instrument or instruments creating or fixing the liens securing the same shall be and remain in full force and effect as therein written, except as otherwise expressly provided herein. All liens and security interests are hereby carried forward from the original inception thereof, and Borrower hereby ratifies, reaffirms and confirms all of said liens and security interests from the original inception thereof. Except as otherwise specified herein, the terms and provisions hereof shall in no manner impair, limit, restrict, or otherwise affect the obligations of Borrower under the Loan Documents. As a material inducement to Lender to execute and deliver this Modification, Borrower hereby acknowledges and agrees that Borrower is well and truly indebted to Lender in the amount set forth hereinabove, and that the liens, security interests and assignments created by the Pledge Agreement and any other Loan Documents are, respectively, valid and subsisting liens, security interests, and assignments, and are of the validity and priority recited in the Pledge Agreement, Assignment, and the other Loan Documents. As further material inducement to Lender to execute and deliver this Modification, Borrower hereby acknowledges that there are no claims or offsets against, or defenses or counterclaim to, the terms or provisions or other obligations created or evidenced by the Loan Documents, and represent that, after modification of the Note, Pledge Agreement, Assignment, and other Loan Documents hereunder, no event has occurred, and no condition exists which would constitute a default, either with or without notice or lapse of time, or both, under the Loan Documents.

7.

Borrower reaffirms and remakes, as of the date hereof, all representations and warranties contained in the Note, Loan Agreement, Pledge Agreement, Assignment, and other Loan Documents. Borrower further represents and warrants that, except as disclosed in writing to Lender, it has done nothing, nor has allowed anything, to adversely affect title to or encumber the Collateral or any other collateral of Borrower in which Lender has a security interest. Borrower further represents and warrants to Lender that it is aware of no condition or fact, which has not been disclosed in writing to Lender, which would materially adversely affect the repayment to Lender of all sums due under the Loan Documents.

8.

Borrower, for itself, its successors and assigns, does hereby (a) acknowledge that Lender has performed all of its obligations to date under the Loan Documents and (b) waives, releases, and discharges Lender and its agents, employees, officers, directors, and attorneys (collectively, the “Released Parties”) from any and all of Lender’s duties, obligations, and liabilities arising under, based upon or associated with, directly or indirectly, the Note, Loan Agreement, Pledge Agreement, Assignment, and any other Loan Documents, existing as of the date of this Modification, and further does hereby waive any and all claims and causes of action of any kind or character, arising under, based upon, or associated with, directly or indirectly, the Loan Documents or the acts, actions, or omissions of the Released Parties in connection therewith, existing as of the date hereof, whether known or unknown, asserted or unasserted, equitable or at law, arising under or pursuant to common or statutory law, rules, or regulations; provided however, that, from and after the date hereof, Lender hereby indemnifies Borrower and each affiliate thereof and their respective officers, directors, employees, attorneys, and agents from, and holds each of them harmless against, any and all losses, liabilities, claims, damages, penalties, judgments, costs, and expenses (including attorneys’ fees) to which any of them may become subject which directly or indirectly arise from or relate to any breach by Lender of any representation, warranty, covenant, or other agreement contained herein.

9.

Borrower hereby ratifies, reaffirms and confirms any and all covenants, agreements, or promises heretofore made by Borrower to Lender in connection with the Loan, Note, Loan Agreement, Pledge Agreement, Assignment, or other Loan Documents, and all renewals thereof.

10.

Borrower agrees to pay all other fees, costs, and expenses of Lender incurred in connection with the preparation and administration of this Modification, including attorneys’ fees.

11.

It is hereby agreed and acknowledged that other parties, if any, who are liable in any part for the Obligations, but who are not hereby executing this Modification, are in no way released or discharged from such Obligations, nor are Lender’s rights against such persons or entities waived or negatively impacted by the execution of this Modification.

12.

If any provision of this Modification or application to any party or circumstance shall be determined by any court of competent jurisdiction to be invalid and unenforceable to any extent, the remainder of this Modification or the application of such provision to such person or circumstances, other than those as to which it is so determined invalid or unenforceable, shall not be affected thereby, and each provision hereof shall be valid and shall be enforced to the fullest extent permitted by law.

13.

Except as amended hereby, the Note, Loan Agreement, Pledge Agreement, Assignment, and other Loan Documents remain unmodified and in full force and effect.

14.

THE NOTE, LOAN AGREEMENT, PLEDGE AGREEMENT, ASSIGNMENT, AND OTHER WRITTEN LOAN DOCUMENTS, AS MODIFIED BY THIS MODIFICATION, REPRESENT THE FINAL AGREEMENT BETWEEN BORROWER AND LENDER, AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

BORROWER:

LENDER:

PLUMAS BANCORP

TIB THE INDEPENDENT BANKERSBANK, N.A.

By:          /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇

By:          /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇

▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, President and CEO

▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, Senior Vice President