EXHIBIT 10.3

FORM OF
FIRST AMENDMENT
TO
SOUTHERN MICHIGAN BANK & TRUST
DEFERRED FEE AGREEMENT
For
<NAME>

          THIS AMENDMENT executed on this ________ day of __________________,
2004, by and between SOUTHERN MICHIGAN BANK & TRUST, a state commercial bank
located in Coldwater, Michigan (the "Company") and <NAME> (the "Director").

          The Company and the Director executed the SOUTHERN MICHIGAN BANK &
TRUST Deferred Fee Agreement dated December 15, 2003 (the "Agreement"). Pursuant
to the power of amendment reserved by Article 9 of the Agreement, the
undersigned hereby amend, in part, said Agreement for the purpose of amending
the pre-retirement death benefit and adding definitions for Projected Benefit
and Net Death Proceeds. Therefore:

                    Article 1, Section 1.15 shall be added to the Agreement as
follows:

                    1.15  "Net Death Proceeds" means the amount of total death
proceeds that exceeds cash surrender value for any bank-owned life insurance
policy on the Director's life for which the Company is owner and beneficiary.
Any such policy shall be a general asset of the Company, and neither the
Director nor his/her beneficiaries shall have any preferred or secured claim to
such policy.

                    Article 1, Section 1.16 shall be added to the Agreement as
follows:

                    1.16  "Projected Benefit" means the amount the Deferral
Account would have been assuming (i) the Director lived to age 65; (ii) the
Director continued to make contributions from the date of death until age 65 at
a contribution rate equal to the average of the Director's deferrals for the
twelve (12) months prior to death; and (iii) interest continued to be credited
at the rate in effect as of the date of death, with such rate not to exceed
seven percent (7%).

                    Article 5, Section 5.1 shall be deleted in its entirety and
replaced with Article 5, Section 5.1 below:

          5.1          Death During Active Service. If the Director dies while
in the active service of the Company, the Company shall pay to the Director's
beneficiary the benefit described in this Section 5.1 in lieu of any other
benefit under this Agreement.

                    5.1.1  Amount of Benefit. The benefit under Section 5.1 is
the Deferral Account balance at the date of the Director's death.

                    5.1.2  Payment of Benefit. The Company shall pay the benefit
to the beneficiary in the form of a lump sum amount payable within 90 days of
the death of the Director.

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                    5.1.3  Supplemental Death Benefit. If the Director dies
before the age of 65 while actively in the service of the Company, the Company
shall pay to the beneficiary a benefit equal to the Projected Benefit as defined
in Section 1.16. If on the date of the Director's death, the Company is the
owner and beneficiary of a life insurance policy on the Director, then the
Projected Benefit shall not exceed the Net Death Proceeds. If the Director dies
after age of 65 while actively in the service of the Company, the benefit shall
be the Deferral Account balance. If on the date of the Director's death, the
Company is the owner and beneficiary of a life insurance policy on the Director,
then the benefit shall not exceed the Net Death Proceeds as defined in Section
1.15. The Company shall pay the benefit to the beneficiary in One Hundred Eighty
(180) consecutive equal monthly installments commencing within sixty (60) days
of the Director's death and payable on the first of each month thereafter. The
Company shall credit interest on the remaining account balance as defined in
Section 3.1.2 of the Agreement.

          IN WITNESS OF THE ABOVE, the Director and the Company have agreed to
this Amendment.

Director:

 

Company:

         

Southern Michigan Bank & Trust

       

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By

 

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<NAME>

       

Title

 

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