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FIRST
AMENDMENT
TO THE
PLUMAS BANK
SPLIT DOLLAR AGREEMENT
DATED SEPTEMBER 15, 2004
FOR
ROBERT T. HERR
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 ROBERT T. HERR
(the “Executive”).
The
Employer and the Executive executed the Split Dollar Agreement on
September 15, 2004 (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 1.2
of the Agreement shall be deleted in its entirety and replaced by
the following:
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1.2
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“ Insurers ”
mean Lincoln National Life Insurance Company and Security Life of
Denver Insurance Company.
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Section 1.4
of the Agreement shall be deleted in its entirety and replaced by
the following:
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1.4
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“ Policies ”
mean insurance policy JP5242577, issued by Lincoln National Life
Insurance Company, and policy U200002247, issued by Security Life
of Denver Insurance Company.
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The
following Section 1.8 shall be added to the Agreement
immediately following Section 1.7:
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1.8
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“ Discount Rate
” means the rate used by the plan administrator for
determining the Accrual Balance. The initial Discount Rate is six
percent (6%). However, the plan administrator, in its discretion,
may adjust the Discount Rate in order to maintain the Discount Rate
within reasonable standards according to GAAP and/or applicable
bank regulatory guidance, as recommended b the Employer’s
independent auditor engaged to audit the financial statements of
the Employer. The Discount Rate will be reviewed at least annually.
Executive shall be notified of any such change in the Discount
Rate. Executive acknowledges that a
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