Exhibit 10.36RELEASE AND SETTLEMENT AGREEMENT     THIS AGREEMENT is made this 26th day of April, 2007 between Dana M. Cluckey, an Executive ofCitizens Republic Bancorp, Inc. (hereinafter “Executive”) and Citizens Republic Bancorp, Inc. onbehalf of itself and its direct and indirect subsidiaries (hereinafter “Citizens”).RECITALS     A. Executive is presently serving Citizens as a member of its Board of Directors and as itsPresident and Chief Operating Officer pursuant to that certain employment agreement by and betweenExecutive and Citizens entered into as of June 26, 2006 (the “Employment Agreement”);     B. Executive has offered to tender his resignation from all his positions with Citizenseffective May 31, 2007 (“Separation Date”), to release Citizens from any and all obligationsCitizens may have to Executive pursuant to the Employment Agreement or otherwise (or claimsExecutive may have against Citizens) and to abide by the covenants set forth herein, in exchangefor Citizens agreeing to pay Executive the amounts and provide the benefits set forth in Paragraphs1, 2 and 3 below and the Company’s release of certain claims against the Executive as set forthbelow in Section 7;     C. Citizens believes that such proposal is in the mutual best interests of Executive on theone hand and Citizens and its shareholders on the other;     D. Executive and Citizens, without any admission of liability, desire to settle with finality,compromise, dispose of, and release all claims and demands asserted or which could beasserted by Executive or Citizens arising out of the employment and service as a director ofExecutive and his separation from employment and service as a director;
 

 
     E. In consideration of the foregoing and of the promises and the mutual covenants containedherein, it is hereby agreed between Executive and Citizens as follows:Page 2 of 10
 

 
AGREEMENT     1. Citizens agrees to pay to Executive (or in the event of his death, his spouse or otherpersonal representative) the sum of $1,125,000.00, which amount shall be paid in a lump sum onJanuary 2, 2008.     2. Citizens also agrees that each of the stock option grants listed on Exhibit A hereto arefully vested and shall remain fully exercisable until the expiration of their respective originalten (10) year terms, all as detailed on Exhibit A hereto. Except as provided herein, the terms ofthe stock option award agreements and the applicable equity compensation plan of Citizens shallgovern Executive’s rights with respect to such stock options.     3. In addition to the amount set forth in Paragraph 1, and in lieu of continued medical,dental and prescription drug coverage, Citizens also agrees to pay to Executive on the SeparationDate an amount equal to thirty-six (36) months of COBRA premiums and prescription coverage costs(the value of such prescription coverage costs continuation shall be deemed to be $1,000 permonth). Executive acknowledges that in order to continue his insurance coverage under theCompany’s medical and dental plans, Executive or his personal representative must make a timelyelection for benefits and further must pay the premium for COBRA coverage in a timely manner.     4. Executive may at his sole option exercise any conversion benefits available to him underany insurance or benefits policies, programs or coverages presently provided to him as an employeeof Citizens on the terms of the applicable policies, coverages or programs presently in existence.Executive shall retain all rights of a terminated employee under Citizens’ deferred compensationplan. All other benefits and insurance to which Executive,his spouse or dependents were entitled prior to the Separation Date, including, but not limited to,pension,Page 3 of 10
 

 
401(k) Plan participation and Long Term Disability, shall terminate on the Separation Dateand Executive, his spouse and dependents shall in no event be entitled to any such benefits orinsurance with respect to any periods following the Separation Date, and Citizens shall have noobligation to provide any of the foregoing, other than with respect to accrued and vested benefitsin accordance with the terms of the applicable plan.     5. Executive recognizes that the amount to be paid and benefits to be provided to Executivepursuant to Paragraphs 1, 2, and 3 above are in excess of any earned wages, benefits or othercompensation due and owing to Executive through the Separation Date and that but for this Agreementhe is not otherwise entitled to receive them.     6. In exchange for the good and valuable consideration set forth herein, Executive agrees forhimself, his heirs, administrators, representatives, executors, successors and assigns(“Releasors”), to irrevocably and unconditionally release, waive and forever discharge any and allmanner of action, causes of action, claims, rights, promises, charges, suits, damages, debts,lawsuits, liabilities, rights, dues, controversies, charges, complaints, remedies, losses, demands,obligations, promises, agreements, costs, losses, expenses, fees (including, without limitationattorneys’ fees), or any and all other liabilities or claims of whatsoever nature (including anyclaims for payments or benefits under the Employment Agreement), whether arising in contract, tort,or any other theory of action, whether arising in law or in equity, whether known or unknown,choate or inchoate, matured or unmatured, contingent or fixed, liquidated or unliquidated, accruedor unaccrued, asserted or unasserted, including, but not limited to, any claim and/or claim ofdamages or other relief for tort, any claims of wrongful discharge, breach of contract, impliedcontract, promissory estoppel, defamation, libel, slander, tortious conduct,personal injury, negligence, any claims under any federal, state or local employment statute, law,Page 4 of 10
 

 
order or ordinance, including age discrimination under The Age Discrimination In Employment Act of1967 (as amended), employment discrimination prohibited by other federal, state or local lawsincluding sex, race, national origin, marital status, age, handicap, height, weight, or religiousdiscrimination, any rights or claims arising under Title VII of the Civil Rights Act of 1965 (asamended) and any other claims for unlawful employment practices or any other unlawful criterion orcircumstance which Executive and Releasors had, now have, or may have in the future against each orany of Citizens, its parents, direct or indirect subsidiaries, divisions, affiliates and relatedcompanies or entities, regardless of its or their form of business organization (collectively, withCitizens, the “Citizens Entities”), any predecessors, successors, joint ventures, and parents ofany Citizens Entity, and any and all of their respective past or present directors, officers,shareholders, partners, employees, consultants, independent contractors, trustees, administrators,insurers, agents, attorneys, representatives and fiduciaries, servants, successors and assignsincluding without limitation all persons acting by, through, under or in concert with any of them(all collectively, the “Released Parties”) arising out of or relating to his employment or directorrelationship with Citizens, its predecessors, successors or affiliates and the termination thereof;provided, that Executive and Releasors do not release Citizens from any claims relating to: (i)accrued and unpaid base salary or expense reimbursements owed to Executive for periods of serviceprior to the Separation Date; (ii) rights to indemnification under the charter or bylaws ofCitizens or its predecessors or rights under Citizens’ D&O insurance policies, in each case inrespect of acts or omissions in connection with Executive’s service as a director, officer oremployee of the Citizens Entities; or (iii) rights of Executive under this Agreement.Page 5 of 10
 

 
     7. Citizens (on behalf of the Citizens Entities) agrees to release, acquit and foreverdischarge Executive and Executive’s heirs, executors, administrators and assigns (the “ExecutiveReleased Parties”) of and from any and all manner of action, causes of action, claims, rights,promises, charges, suits, damages, debts, lawsuits, liabilities, rights, dues, controversies,charges, complaints, remedies, losses, demands, obligations, promises, agreements, costs, losses,expenses, fees (including, without limitation attorneys’ fees), or any and all other liabilities orclaims of whatsoever nature which the Citizens Entities ever had, now have or may hereafter have,against the Executive Released Parties or any of them arising out of or by reason of any act oromission undertaken by Executive in good faith and in the ordinary course and scope of Executive’sduties with the Citizens Entities; provided, however, that the Citizens Entities do not release,acquit or discharge the Executive Released Parties from: (i) any of Executive’s express obligationsarising out of or in connection with this Agreement, including, without limitation Section 8 ofthis Agreement and Sections 9 through 13 and Section 15 of the Employment Agreement; and (ii) anyof Executive’s acts or omissions involving fraud, dishonesty, gross negligence or willfulmalfeasance, any actions that give rise to a violation of the securities laws or regulations orany actions for which Executive would not be indemnified for under the charter or bylaws ofCitizens or its predecessors.     8. Executive and Citizens agree that the provisions of Sections 8 through 13 and Section 15of the Employment Agreement are incorporated herein by reference and that each of the partieshereto shall abide by these provisions as if fully set forth herein. Executive hereby agrees tocooperate with Citizens and/or any of the Citizens Entities in good faith in connection with anyvaluation of the restrictions and obligations under this Agreement (including the provisions ofSections 8 through 13 and Section 15 of the Employment Agreement).Page 6 of 10
 

 
     9. Executive acknowledges that Citizens would be irreparably injured by a violation of thecovenants set forth in Paragraph 8 (including, as referenced therein, Sections 9 through 13 and 15of the Employment Agreement) and he agrees that Citizens, in addition to any other remediesavailable to it for such breach or threatened breach including money damages, shall be entitled toa preliminary injunction, temporary restraining order, or other equivalent relief, restraining theExecutive from any actual or threatened breach of the covenants set forth in Paragraph 8(including, as referenced therein, Sections 9 through 13 and 15 of the Employment Agreement). If abond is required to be posted in order for Citizens to secure an injunction or other equitableremedy, the parties agree that said bond need not be more than a nominal sum. In the event of anactual violation of the of the covenants set forth in Paragraph 8 (including, as referencedtherein, Sections 9 through 13 and 15 of the Employment Agreement) as determined by a court of lawExecutive further agrees that Citizens shall be entitled to receive back from Executive andExecutive shall, at Citizens’ sole discretion, be required to pay back a pro-rata portion of theamount received by Executive pursuant to Paragraph 1 of this Agreement, with such pro-rata amountto be equal to the product of (A) $1,125,000 and (B) a fraction, the numerator of which is thenumber of days from the date of the violation until the second anniversary of the Separation Date,and the denominator of which is 730. To the extent Citizens has not paid the Executive the amountpayable under Paragraph 1, the amount that Citizens shall pay shall be reduced by an amount asdetermined under the preceding sentence. In no event shall an asserted violation of the provisionsof Paragraph 8 (including, as referenced therein, Sections 9 through 13 and 15 of the EmploymentAgreement) constitute a basis for deferring or withholding any amounts otherwise payable to theExecutive under this Agreement.     10. Executive understands that he does not waive rights or claims that may arise afterPage 7 of 10
 

 
the date this Agreement is executed.     11. Executive further agrees that he has read this Agreement carefully and understands all ofits terms.     12. Executive understands and agrees that he is advised to consult with an attorney prior toexecuting this Agreement.     13. Executive understands that he is entitled to consider this Agreement for at leasttwenty-one (21) days before signing it. However, after due deliberation, Executive may elect tosign this Agreement without availing himself of the opportunity to consider its provisions for atleast twenty-one (21) days. Executive hereby acknowledges that any decision to shorten the timefor considering this Agreement prior to signing it is voluntary, and such decision is not inducedby or through fraud, misrepresentation, or a threat to withdraw or alter the provisions set forthin this Agreement in the event Executive elected to consider this Agreement for at least twenty-one(21) days prior to signing it     **14. Executive understands that he may revoke this Agreement as it relates to any potentialclaim that could be brought or filed under the Age Discrimination in Employment Act, 29 U.S.C.§§621-634, within seven (7) days after the date on which he signs this Agreement, and that thisAgreement as it relates to such a claim does not become effective until the expiration of the seven(7) day period. In the event that Executive wishes to revoke this Agreement within the seven (7)day period, he understands that he must provide such revocation in writing to Citizens BankingCorporation, Attn: William R. Hartman, Chief Executive Officer, 328 S. Saginaw Street, Flint,Michigan 48502.**     15. In agreeing to sign this Agreement, Executive is doing so voluntarily and agreesthat he has not relied on any oral statements or explanations made by Citizens or itsrepresentatives.Page 8 of 10
 

 
     16. This Agreement contains the entire Agreement between Executive and Citizens and, except asexpressly provided herein, shall supersede any other employment, severance or change of controlagreement or any other promises, covenants, arrangements, communications, representations orwarranties, whether oral or written, by any officer, employee or representative of any party heretowith respect to the subject matter hereof, including, without limitation the Employment Agreement.Any modification of this Agreement must be made in writing and signed by both Executive andCitizens.     17. Citizens may withhold from any amounts payable under this Agreement such Federal, state,local or foreign taxes as shall be required to be withheld pursuant to any applicable law orregulation. Executive hereby agrees to report any amounts paid or benefits provided under thisAgreement for purposes of Federal, state and local tax purposes in a manner consistent with themanner in which Citizens reports any such amounts or benefits for purposes of Federal, state andlocal tax purposes.     18. The invalidity or unenforceability of any provision of this Agreement will not affect thevalidity or enforceability of any other provision of this Agreement, and this Agreement will beconstrued as if such invalid or unenforceable provision were omitted (but only to the extent thatsuch provision cannot be appropriately reformed or modified). No waiver of a breach of anyprovision of this Agreement by the other party will operate or be construed as a waiver of anysubsequent breach by such other party. The failure of any party hereto to take any action byreason of such breach will not deprive such party of the right to take action at any time whilesuch breach continues.     19. This Agreement may be executed in several counterparts, each of which shall bePage 9 of 10
 

 
deemed tobe an original, but all of which together will constitute one and the same instrument.     20. This Agreement will be governed by and construed in accordance with the laws of the stateof Michigan, without giving effect to any choice of law or conflicting provision or rule (whetherof the state of Michigan or any other jurisdiction) that would cause the laws of any jurisdictionother than the state of Michigan to be applied. In furtherance of the foregoing, the internal lawof the state of Michigan will control the interpretation and construction of this agreement, evenif under such jurisdiction’s choice of law or conflict of law analysis, the substantive law of someother jurisdiction would ordinarily apply.   /s/ /s/   Witness Thomas W. Gallagher Dana M. Cluckey  Date: April 26, 2007     CITIZENS REPUBLIC BANCORP, INC.       /s/   By: /s/       Witness Thomas W. Gallagher     William R. Hartman    Its: Chief Executive Officer    Date: April 26, 2007Page 10 of 10
 

 
**Exhibit A**