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                                                                    EXHIBIT 10.9

                              EMPLOYMENT AGREEMENT

         This Agreement, made this 1(st) day of May, 2003, by and between
STURGIS BANK & TRUST COMPANY, a Michigan savings bank ("STURGIS"), and DAVID E.
WATTERS of Sturgis, Michigan ("Employee").

         W I T N E S S E T H:

         WHEREAS, STURGIS desires to employ Employee and Employee desires to be
employed by STURGIS upon the terms and conditions set forth herein.

         1.       Employment. STURGIS hereby employs Employee as Vice President
and Trust Officer, and Employee hereby accepts employment by STURGIS upon the
terms and conditions herein set forth. The primary place of employment shall be
at STURGIS' principal offices, Sturgis, Michigan, or at such other location as
STURGIS may designate.

         2.       Term. The term of this Agreement shall commence as of May 1,
2003 for a term of three (3) years, unless sooner terminated as hereinafter set
forth.

         3.       Duties. Employee will, during the term hereof:

         (A)      As Vice President and Trust Officer to faithfully and
diligently do and perform all such acts and duties and furnish such services as
the Board of Directors of STURGIS shall direct, and do and perform all acts in
the ordinary course of STURGIS' business, with such limits as the Board of
STURGIS may prescribe, necessary and conducive to STURGIS' best interests; and,

         (B)      Devote his full time, energy, and skill to the business of
STURGIS and to the promotion of STURGIS' best interests, except for vacations
and absences made necessary because of illness.

         4.       Compensation.

         (A)      Subject to the provisions of Paragraphs 6 hereof, STURGIS
shall pay to Employee for all services to be performed by Employee during the
term of this Agreement:

         (i) a salary at the rate of Eighty-Eight Thousand Five Hundred
         ($89,500.00) Dollars per annum, payable in periodic payments in
         accordance with STURGIS' practices for other executive, managerial, and
         supervisory employees, as such practices may be determined from time to
         time. The Board of Directors of STURGIS ("Board of Directors") will
         review such fixed salary annually and, in its discretion, may grant
         increases or decreases thereof based upon Employee's performance; and

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         (ii) any additional or special compensation, such as incentive pay or
         bonuses, based upon Employee's performance, as the Board of Directors
         in its discretion, may from time to time determine.

All such payments will be subject to such deductions as may be required to be
made pursuant to law, government regulation or order, or by agreement with, or
consent of, Employee.

         (B)      In addition to the salary payments set forth above, STURGIS
agrees that during the term of this Agreement:

         (i) Employee shall be entitled to reimbursement by STURGIS for all
         reasonable expenses actually and necessarily incurred by him on its
         behalf in the course of his employment hereunder, for which he shall
         submit vouchers in a form satisfactory to STURGIS and which are
         approved by STURGIS in its sole discretion;

         5.       Benefits. Employee shall be entitled to participate in such
life insurance, medical, pension, retirement, and stock option plans and other
programs, including sick leave, as may be approved from time to time by STURGIS
for the benefit of its employees. Employee also shall be entitled to no less
than four (4) weeks of vacation under STURGIS' current policy, as amended. The
said vacation shall not be carried over from year to year. Other benefits, not
exclusive of the above, are those set forth from time to time in the Employee's
Standard Employment Policy and Handbook.

         6.       Termination. Employee's employment with STURGIS shall
terminate by reason of Employee's death, or total and/or permanent disability
(as defined for social security purposes) or for cause. STURGIS shall have the
sole discretion to determine whether the conditions constituting a termination
for cause have occurred. In the event of a termination of employment pursuant to
this paragraph 6, all obligations of STURGIS hereunder shall terminate.

         (A)      In addition to the foregoing, STURGIS' Board of Directors may
terminate the Employee's employment at any time, but any termination by STURGIS'
Board of Directors other than termination for cause, shall not prejudice the
Employee's right to compensation or other benefits under the contract. The
Employee shall have no right to receive compensation or other benefits for any
period after termination for cause. Termination for cause shall include
termination because of the Employee's personal dishonesty, incompetence, willful
misconduct, breach of fiduciary duty involving personal profit, intentional
failure to perform stated duties, willful violation of any law, rule, or
regulation, (other than traffic violations or similar offenses) or final
cease-and-desist order, or material breach of any provision of this contract.

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         (B)      If the Employee is suspended and/or temporarily prohibited
from participating in the conduct of STURGIS' affairs by a notice served under
section 8(e)(3) or (g)(1) of (the) Federal Deposit Insurance Act (12 U.S.C.
1818(e)(3) and (g)(1) STURGIS' obligations under the contract shall be suspended
as of the date of service unless stayed by appropriate proceedings. If the
charges in the notice are dismissed, STURGIS may in its discretion (i) pay the
Employee all or part of the compensation withheld while its contract obligations
were suspended and (ii) reinstate (in whole or in part) any of its obligations
which were suspended.

         (C)      If the Employee is removed and/or permanently prohibited from
participating in the conduct of STURGIS' affairs by an order issued under
section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act (12 U.S.C.
1818(e)(4) or (g)(1)), all obligations of STURGIS under the contract shall
terminate as of the effective date of the order, but vested rights of the
contracting parties shall not be affected.

         (D)      If STURGIS is in default (as defined in section 3(x)(1) of the
Federal Deposit Insurance Act), all obligations under the contract shall
terminate as of the date of default, but this paragraph D. shall not affect any
vested rights of the contracting parties.

         (E)      All obligations under the contract shall be terminated, except
to the extent determined that continuation of the contract is necessary (for the
continued operation of STURGIS):

         (i)      by the Director or his or her designee, at the time the
         Federal Deposit Insurance Corporation or the Michigan Office of
         Financial and Insurance Services enters into an agreement to provide
         assistance to or on behalf of STURGIS under the authority contained in
         section 13(c) of the Federal Deposit Insurance Act; or

         (ii)     by the Director or his or her designee, at the time the
         Director or his or her designee approves a supervisory merger to
         resolve problems related to operation of STURGIS or when STURGIS is
         determined by the Director to be in an unsafe or unsound condition.

         Any rights of the parties that have already vested, however, shall not
be affected by such action.

         (F)      Upon thirty (30) days written notice by Employee to STURGIS,
the Employee may terminate this Agreement forfeiting all of his rights including
vested rights unless Employee terminates such employment with good reason (as
defined in the Agreement).

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         7.       Definitions. For purposes of this Agreement:

         (A)      "Cause" shall include in its meaning:

         (i) Employee's conviction of any criminal violation involving
         dishonesty, fraud, or breach of trust;

         (ii) Employee's willful engagement in any misconduct in the performance
         of his duty that materially injures STURGIS;

         (iii) Employee's performance of any act which, if known to the
         customers, clients or stockholders of STURGIS would materially and
         adversely impact on the business of STURGIS;

         (iv) Employee's willful and substantial nonperformance of his duties
         and such nonperformance continues more than ten (10) days after STURGIS
         has given written notice of such nonperformance and of its intention to
         terminate Employee's employment because of such nonperformance; or,

         (v) Employee's willful violation of paragraphs 8 or 9 herein.

         (B)      "Good Reason" shall exist if, without Employee's express
written consent:

         (i) STURGIS shall assign to Employee duties of a nonexecutive nature or
         for which Employee is not reasonably equipped by his skills and
         experience;

         (ii) STURGIS shall reduce the salary of Employee, or materially reduce
         the amount of paid vacations to which he is entitled, or his fringe
         benefits and perquisites;

         (iii) STURGIS shall require Employee to relocate his principal business
         office or his principal place of residence outside the Sturgis,
         Michigan Marketing Area (the "Area"), or assign to Employee duties that
         would reasonably require such relocation;

         (iv) STURGIS shall require Employee, or assign duties to Employee which
         would reasonably require him to spend more than ninety (90) normal
         working days away from the Area during any consecutive twelve (12)
         month period;

         (v) STURGIS shall fail to provide office facilities, secretarial
         services, and other administrative services to Employee which are
         substantially equivalent to the facilities and services provided to
         Employee on the date hereof; or,

         (vi) STURGIS shall terminate incentive and benefit plans or
         arrangements, or reduce or limit Employee's participation therein
         relative to the level of participation of other executives of similar
         rank, to such an extent as to

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         materially reduce the aggregate value of Employee's incentive
         compensation and benefits below their aggregate value of the date
         hereof.

         8.       Restrictive Covenant. During the term of this Agreement, and
for a period of one (1) year following the termination of Employee's employment
with STURGIS pursuant to this Agreement including termination occasioned by the
expiration of this Agreement, and in consideration for payments made on an
installment basis to Employee pursuant to Internal Revenue Code Section 280(G)
as amended, Employee shall not:

         (A)      Within a geographic radius of seventy-five (75) miles from
Sturgis, Michigan, engage in, or work for, manage, operate, control or
participate in the ownership, management, operation or control of, or be
connected with, or have any financial interest in, any individual, partnership,
firm, corporation or institution engaged in the same or similar activities to
those now or hereafter carried on by STURGIS;

         (B)      Interfere with the relationship of STURGIS and any of its
employees, agents or representatives; and,

         (C)      Directly or indirectly divert or attempt to divert from
STURGIS any business in which STURGIS has been actively engaged during the term
hereof, nor interfere with the relationships of STURGIS with its dealers,
distributors, sources of supply or customers.

Any breach of the covenant not to compete by Employee will result in the
forfeiture by Employee and all other persons of any and all rights to unpaid
benefits and payments at the time of breach and in such event STURGIS shall have
no further obligation to pay any amounts related thereto.

         9.       Nondisclosure of Confidential Information. Employee
acknowledges that STURGIS may disclose certain confidential information to
Employee during the term of this Agreement to enable him to perform his duties
hereunder. Employee hereby covenants and agrees that he will not, without the
prior written consent of STURGIS, during the term of this Agreement or at any
time thereafter, disclose or permit to be disclosed to any third party by any
method whatsoever any of the confidential information of STURGIS. For purposes
of this Agreement, "confidential information" shall include, but not be limited
to, any and all records, notes, memoranda, data, ideas, techniques, programs,
computer software, writings, research, personnel information, customer
information, STURGIS' financial information, plans, or any other information of
whatever nature in the possession or control of STURGIS which has not been
published or disclosed to the general public, or which gives to STURGIS an
opportunity to obtain an advantage over competitors who do not know of or use
it. Employee further agrees that if his employment hereunder is terminated for
any reason, he will leave with STURGIS and will not take originals or copies of
any and all records, papers, programs, computer software and documents and all
matter of whatever nature which bears secret or confidential information of
STURGIS.

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         The foregoing paragraph shall not be applicable if and to the extent
Employee is required to testify in a judicial or regulatory proceeding pursuant
to an order of a judge or administrative law judge issued after Employee and his
legal counsel urge that the aforementioned confidentiality be preserved.

         Employee agrees, without charge to STURGIS or at STURGIS' expense, to
execute, acknowledge and deliver to STURGIS all such papers, including trademark
registrations, and assignments thereof, as may be necessary, and at all times to
assist STURGIS, its successors, assigns and nominees in every proper way to
patent or register said programs, ideas, discoveries, improvements,
copyrightable material or trademarks in any and all countries and to vest title
thereto in STURGIS, its parent, subsidiaries, successors, assigns or nominees.

         Employee will promptly report to STURGIS all discoveries, inventions,
or improvements of whatever nature conceived or made by him at any time he was
employed by STURGIS, its parent, subsidiaries or successors. All such
discoveries, inventions and improvements which are applicable in any way to
STURGIS' business shall be the sole and exclusive property of STURGIS.

         The covenants set forth in this paragraph which are made by Employee
are in consideration of the employment, or continuing employment of, and the
compensation paid to, Employee during his employment by STURGIS. The foregoing
covenants will not prohibit Employee from disclosing confidential or other
information to other employees of STURGIS or to third parties to the extent that
such disclosure is necessary to the performance of his duties under this
Agreement.

         10.      Additional Remedies. It is expressly understood and agreed
that although Employee and STURGIS consider the restrictions contained in this
Agreement to be reasonable for the purpose of preserving the going business
value and goodwill of STURGIS, if a final judicial determination is made by a
court having jurisdiction that the time or territory or any other restriction
contained in this Agreement is an unenforceable restriction against the
Employee, provisions of such restrictions shall not be rendered void but shall
be deemed amended to apply as to such maximum time and territory and to such
other extent as such court may judicially determine or indicate to be
reasonable. Alternatively, if the court referred to above finds that any
restriction contained in this Agreement is unenforceable, and such restriction
cannot be amended so as to make it enforceable, such findings shall not effect
the enforceability of any of the other restrictions contained herein.

         The Employee acknowledges and agrees that STURGIS' remedy at law for a
breach or threatened breach of any of the provisions of this Agreement would be
inadequate and, in recognition of this fact, in the event of a breach or a
threatened breach by the Employee of any of the provisions, it is agreed that,
in addition to its

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remedy at law, STURGIS shall be entitled, without posting any bond, to obtain
equitable relief, and the Employee agrees not to oppose STURGIS' request for
equitable relief in the form of specific performance, temporary restraining
order, temporary or permanent injunction, or any other equitable remedy which
may then be available. The Employee acknowledges that the granting of a
temporary injunction, temporary restraining order or permanent injunction merely
prohibiting a breach or threatened breach would not be an adequate remedy, and
consequently agrees upon any such breach or threatened breach to the granting of
injunctive relief. Nothing herein contained shall be construed as prohibiting
STURGIS from pursuing any other remedies available to it for such breach or
threatened breach.

         11.      Nonassignment. This Agreement is personal to Employee and
shall not be assigned by him. Employee shall not delegate, encumber, alienate,
transfer or otherwise dispose of his rights and duties hereunder. STURGIS may
assign this Agreement without Employee's consent to any other entity who, in
connection with such assignment, acquires all or substantially all of STURGIS'
assets or into or with which STURGIS is merged or consolidated.

         12.      Waiver. The waiver by STURGIS of a breach by Employee of any
provision of this Agreement shall not be construed as a waiver of any subsequent
breach by Employee.

         13.      Severability. If any clause, phrase, provision or portion of
this Agreement or the application thereof to any person or circumstance shall be
invalid or unenforceable under any applicable law, such event shall not affect
or render invalid or unenforceable the remainder of this Agreement and shall not
affect the application of any clause, provision, or portion hereof to other
persons or circumstances.

         14.      Benefit. The provisions of this Agreement shall inure to the
benefit of STURGIS, its successors and assigns, and shall be binding upon
STURGIS and Employee, its and his heirs, personal representatives and
successors, including without limitation Employee's estate and the executors,
administrators, or trustees of such estate.

         15.      Relevant Law. This Agreement shall be construed and enforced
in accordance with the laws of the United States and State of Michigan.

         16.      Notices. All notices, requests, demands and other
communications in connection with this Agreement shall be made in writing and
shall be deemed to have been given when delivered by hand or 48 hours after
mailing at any general or branch United States Post Office, by registered or
certified mail, postage prepaid, addressed as follows, or to such other address
as shall have been designated in writing by the addressee:

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         (A)      If to STURGIS:

                  ____________________________

                  Attn: President/CEO
                  119-125 East Chicago Road
                  Sturgis, Michigan 49091

         (B)      If to Employee:

                  David E. Watters
                  1325 W. Rishel
                  Sturgis, Michigan 49091

         17.      Entire Agreement. This Agreement sets forth the entire
understanding of the parties and supersedes all prior agreements, arrangements,
and communications, whether oral or written, pertaining to the subject matter
hereof; and this Agreement shall not be modified or amended except by written
agreement of STURGIS and Employee.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date first set forth above.

                                            STURGIS BANK & TRUST COMPANY

                                            ______________________________
                                            By:  Eric L. Eishen
                                            Its: President/CEO

ATTEST:

___________________________
Brian P. Hoggatt, Secretary

                                            EMPLOYEE:

                                            ______________________________
                                            David E. Watters

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