SILVER STATE BANCORP 1998 STOCK OPTION PLAN

Exhibit 10.5

SILVER STATE BANCORP

1998 STOCK OPTION PLAN

The purpose of the Silver State Bancorp Stock Option Plan (the “Plan”) (as amended on April 22, 1999) is to provide deferred compensation to certain key employees and directors (the “Participants”) of Silver State Bancorp (the “Company”) or any of its subsidiaries. Such deferred compensation shall be based upon the grant of stock options (the “Options”), the value of which is related to the appreciation in the value of the common stock of the Company. The Plan is intended to benefit the Company by motivating Participants to achieve long-term Company goals.

Unless the context clearly indicates otherwise, the following terms, when used in the Plan, shall have the following meanings:

The Plan shall be administered by the Board. Subject to the provisions of the Plan, the Board shall have the exclusive power to (1) select the Participants to be granted Options; (2) determine the number of Options to be granted; (3) establish the Term and date of each Option granted; and (4) determine the limitations, restrictions, and conditions applicable to any Options.

The Board shall have authority to interpret the Plan, to adopt and revise rules and regulations relating to the Plan, and to make any other determinations which it believes necessary or advisable for the administration of the Plan. Determinations by the Board shall be made by majority vote and shall be final and binding on all parties with respect to all matters relating to the Plan. The Board’s determinations as to the persons to receive awards, the terms and provisions of such Options, and the agreements evidencing the same, need not be uniform and may be made by it selectively among persons who receive or are eligible toe receive awards under the Plan, whether or not such persons are similarly situated.

1

It is intended that the Options granted hereunder will include (1) those that qualify as incentive stock options under Section 422 (b) of the Code, and (2) those that do not qualify and therefore are nonqualified stock options.

The Company may grant Options under the Plan for not more than 200,000 shares of common stock (the “Shares”) (subject to adjustment pursuant to section 13 below) which shall be provided by the issuance of Shares authorized but unissued. In the event that an Option previously granted shall for any reason lapse or be canceled without being exercised, the unpurchased Shares subject to the Option shall be restored to the total number of Shares to be granted under the Plan.

Options may be granted to key employees employed by the Company, and to selected members of the Board, as determined by the Board. Options granted to participants who are members of the Board but are not employees shall be nonqualified stock options.

Options shall be granted to Participants as the Board shall determine. Options shall be granted at such time or times, and in such quantities, and shall be subject to such terms and conditions in addition to those set forth in this Plan, as determined by the Board.

With respect to the number of Shares subject to incentive stock options granted to any one Participant in any one year, the aggregate fair market value (determined as of the time the Option is granted) of the Shares which become exercisable shall not exceed $100,000 during any one calendar year.

The exercise price for nonqualified stock options shall be equal to at least the fair market value of a Share on the date the Option is granted.

With respect to any incentive stock option granted to a Grantee who, on the date the Option is granted, owns ten percent or less of the total combined voting power of all classes of stock of the Company, the exercise price to be paid by the Grantee to the Company for each Share purchased upon the exercise of the Option shall be equal to the fair market value of a Share on the date Option is granted.

With respect to any incentive stock option granted to a Grantee who, on the date the Option is granted, owns more than ten percent of the total combined voting power of all classes of stock of the Company, the exercise price for each Share purchased shall not be less than 110 percent of the fair market value of a Share on the date the Option is granted. The fair market value of a Share shall be determined by the Board. Notwithstanding any provision of the Plan to the contrary, no determination made with respect to the fair market value of Common Stock subject to an Option shall be inconsistent with the Code or regulations thereunder.

2

Notwithstanding anything herein to the contrary, in no event may an option be granted under the Plan if the exercise price is less than the par value of a Share.

The Board will determine the Term for all Options granted under the Plan. In no event shall the Term of an Option extend beyond ten years from the date of Grant.

Options to the Participants shall vest in accordance with the following schedule of years of employment or service as a director following the date of grant of such Options:

Notwithstanding the provisions of the above schedule, all vested Options granted to a Participant shall become fully exercisable upon (i) the Participant’s termination of employment with the Company due to death, disability or retirement; or (ii) the Participant’s employment is terminated “without cause” as determined by the Board. Notwithstanding the provisions of the above schedule, all Options granted to a Participant shall become fully exercisable upon (i) the owners of a majority of shares of capital stock of the Company terminate the business of, or liquidate or dissolve the Company; (ii) substantially all of the assets of the Company are sold; or (iii) the Company merges or consolidates with any other corporation and the Company is not the surviving corporation of such merger or consolidation.

Far purposes of this Section, a Participant will be considered disabled if such Participant’s disability meets the definition of “disabled” in Section 22 (e) (3) of the Code; and a participant will be considered retired if the Participant’s employment with the Company terminates at or after the date the Participant attains the age of 65.

3

In the event of the Grantee’s retirement or disability, such Options may by exercised by the Grantee any time prior to the thirty-first day immediately following the date of his retirement or the date the Board determined the Grantee is disabled pursuant to Section 10 above.

In the event of a Participant’s death, the exercise of any Options under the Plan shall be made by his Beneficiary within the 30 days immediately following the transfer of such Options from the Participant’s estate to the Beneficiary.

In the event of termination of employment of the Grantee for any other reason, all exercisable Options may be exercised within 30 days of such termination, unless such termination is “for cause,” in which case Options granted to the Grantee are automatically forfeited as of the date of such termination and are nonexercisable. For the purposes of this Plan, a termination of Participant by the Company “for cause” means a termination due to any of the following events:

In the event of any change in the outstanding shares of common stock of the Company by reason of a recapitalization, reclassification, reorganization, stock split, reverse stock split, combination of shares, stock dividend or similar transaction, the Board shall proportionately adjust, in an equitable manner, the aggregate number of shares available for Options, the number of Shares subject to outstanding Options, and the number of Options held by Participants under the Plan.

If the Company shall be the surviving corporation in a merger or other reorganization, Option rights shall extend to stock and securities of the Company to the same extent that a holder of that number of Options immediately before the merger or consolidation would be entitled to have. If the Company (i) dissolves, sells substantially all of its assets, sells

4

more than fifty-one percent of the Company’s outstanding Shares of common stock, or is a party to a merger or other reorganization in which it is not the surviving corporation or (ii) more than fifty-one percent of the Company’s outstanding shares or common stock or voting rights thereto are purchased or acquired by any person, entity or group of persons and/or entities acting in concert (“Corporate Event”) then each Option shall be exercisable in full within the period of 30 days before the date of such dissolution, sale, merger, or Corporate Event without regard to the vesting provisions described in paragraph 10 above.

No person shall have any rights of a stockholder by virtue of an Option except with respect to Shares actually issued to him.

Options granted under the Plan, and any rights and privileges pertaining thereto, may not be transferred, assigned, pledged or hypothecated in any manner, by operation of law or otherwise, other than by will or by the laws of descent and distribution, and shall not be subject to executive, attachment or similar process.

Any attempted assignment, transfer, pledge, hypothecation, or other disposition of an Option, or levy attachment or similar process upon the Option not specifically permitted herein shall be null and void and without effect.

The Company shall have the right to deduct from all Option gains pursuant to the Plan any taxes required by law to be withheld with respect to such gains.

5

The Board may alter or amend the Plan from time to time by obtaining the approval of the stockholders of the Company. No amendment to the Plan may alter, impair or reduce the number of Options granted under the Plan prior to the effective date of such amendment without the written consent of any affected Participant.

The effective date of the Plan shall be April 30, 1998. The Board may at any time terminate the Plan, and unless sooner terminated by the Board, the Plan shall terminate on April 30, 2008. No Options shall be granted pursuant to the Plan after the date of termination of the Plan.

The Plan shall be construed and its provisions enforced and administered in accordance with the laws of the State of Nevada except to the extent that such laws may be superseded by federal law.

IN WITNESS WHEREOF, the Company, through its authorized representative, hereby adopts this Plan this 30th day of April 1998.

6

EXHIBIT A

NOTICE OF STOCK OPTION EXERCISE

Mr. Tod W. Little

Silver State Bancorp

Chief Executive Officer

691 N. Valle Verde Drive

Henderson, NV 89014

Dear Mr. Little:

Pursuant to my Stock Option Agreement dated              (the “Agreement”), I am exercising (#)                      options. Enclosed is payment in full for such options. I understand that my stock certificates will be issued within thirty days of receipt of this letter.

I further acknowledge that Silver State Bancorp makes no representations as to federal or state tax matters, and that I am to consult my own tax attorney or tax accountant for advice with respect to the exercise of my stock options.

Exhibit A