Document:

Exhibit 10.2

                              EMPLOYMENT AGREEMENT

         This EMPLOYMENT AGREEMENT (this "Agreement"),  is made and entered into
as  of  the  1st  day  of  July,  2007,  between  Emclaire  Financial  Corp.,  a
Pennsylvania-chartered  bank holding  company (the  "Corporation"),  the Farmers
National  Bank of  Emlenton,  a national  banking  association  (the "Bank") and
William C. Marsh (the "Executive").

                                   WITNESSETH

         WHEREAS,  the  Executive is currently  employed as President  and Chief
Executive  Officer of the Bank and Treasurer and Chief Financial  Officer of the
Corporation (the Corporation and the Bank are referred to together herein as the
"Employers");

         WHEREAS,  the  Employers  desire  to  be  ensured  of  the  Executive's
continued active participation in the business of the Employers; and

         WHEREAS,  the  Executive is willing to serve the Employers on the terms
and conditions hereinafter set forth;

         NOW  THEREFORE,  in  consideration  of  the  mutual  agreements  herein
contained,  and upon the other terms and conditions  hereinafter  provided,  the
Employers and the Executive hereby agree as follows:

         1.  Definitions.  The following words and terms shall have the meanings
set forth below for the purposes of this Agreement:

         (a)  Average  Annual  Compensation.  The  Executive's  "Average  Annual
Compensation" for purposes of this Agreement shall be deemed to mean the average
level of  compensation  paid to the Executive by the Employers or any subsidiary
thereof  during  the  most  recent  five  taxable  years  preceding  the Date of
Termination  (or such shorter period as the Executive was employed) and included
in the  Executive's  gross  income for tax  purposes  and any income  earned and
deferred by the Executive pursuant to any plan or arrangement of the Employers.

         (b) Base  Salary.  "Base  Salary"  shall have the  meaning set forth in
Section 3(a) hereof.

         (c) Cause.  Termination of the Executive's employment for "Cause" shall
mean  termination  because  of  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 Agreement.

         (d) Change in Control.  "Change in Control"  shall mean a change in the
ownership of the  Corporation or the Bank, a change in the effective  control of

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the  Corporation  or the  Bank or a change  in the  ownership  of a  substantial
portion of the assets of the  Corporation  or the Bank, in each case as provided
under Section 409A of the Code and the regulations thereunder.

         (e) Code.  "Code"  shall mean the  Internal  Revenue  Code of 1986,  as
amended.

         (f) Date of Termination.  "Date of  Termination"  shall mean (i) if the
Executive's  employment is terminated for Cause, the date on which the Notice of
Termination is given,  and (ii) if the Executive's  employment is terminated for
any other reason, the date specified in such Notice of Termination.

         (g) Disability.  "Disability" shall mean the Executive (i) is unable to
engage  in  any  substantial   gainful  activity  by  reason  of  any  medically
determinable  physical or mental  impairment  which can be expected to result in
death or can be  expected  to last for a  continuous  period of not less than 12
months, or (ii) is, by reason of any medically  determinable  physical or mental
impairment  which can be  expected to result in death or can be expected to last
for a continuous period of not less than 12 months, receiving income replacement
benefits for a period of not less than three months under an accident and health
plan covering employees of the Employers.

         (h)  Good  Reason.  Termination  by the  Executive  of the  Executive's
employment for "Good Reason" shall mean termination by the Executive following a
Change in Control based on:

                           (i) any  material  breach  of this  Agreement  by the
Employers, including without limitation any of the following:  (A) a material
diminution in the  Executive's base  compensation,  (B) a material  diminution
in the  Executive's  authority, duties or responsibilities,  or (C) any
requirement that the Executive report to a corporate officer or employee of the
Corporation instead of reporting directly to the Board of Directors of the
Corporation, or

                           (ii) any material  change in the geographic  location
at which the Executive must perform his services under this  Agreement,
including a material  change in the Executive's  principal  place of employment
or the imposition of any requirement that the  Executive  spend more than
ninety  (90)  business  days per year at a location other than such principal
place of employment;

provided,  however, that prior to any termination of employment for Good Reason,
the Executive must first provide written notice to the Corporation within ninety
(90) days of the initial existence of the condition, describing the existence of
such condition,  and the Corporation  shall  thereafter have the right to remedy
the condition  within thirty (30) days of the date the Corporation  received the
written notice from the  Executive.  If the  Corporation  remedies the condition
within  such  thirty (30) cure  period,  then no Good Reason  shall be deemed to
exist with respect to such condition.

         (i) IRS. IRS shall mean the Internal Revenue Service.

         (j) Notice of Termination. Any purported termination of the Executive's
employment by the Employers for any reason,  including  without  limitation  for
Cause, Disability or Retirement,  or by the Executive for any reason,  including

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without limitation for Good Reason,  shall be communicated by written "Notice of
Termination"  to the other  party  hereto.  For  purposes of this  Agreement,  a
"Notice  of  Termination"  shall mean a dated  notice  which (i)  indicates  the
specific termination provision in this Agreement relied upon, (ii) sets forth in
reasonable  detail  the facts and  circumstances  claimed to provide a basis for
termination  of the  Executive's  employment  under the  provision so indicated,
(iii) specifies a Date of Termination,  which shall be not less than thirty (30)
nor more than ninety (90) days after such Notice of Termination is given, except
in the case of the Bank's termination of Executive's employment for Cause, which
shall be  effective  immediately,  and (iv) is given in the manner  specified in
Section 11 hereof.

         (k) Retirement.  "Retirement"  shall mean voluntary  termination by the
Executive upon reaching age 65.

         2. Term of Employment.

         (a) The  Employers  hereby  employ the Executive as President and Chief
Executive  Officer of the Bank and Treasurer and Chief Financial  Officer of the
Corporation  and the  Executive  hereby  accepts said  employment  and agrees to
render such services to the Employers on the terms and  conditions  set forth in
this Agreement.  The term of employment  under this Agreement shall be for three
years from July 1, 2007 and,  upon approval of the Board of Directors of each of
the Corporation and the Bank, shall extend for an additional year on July 1st of
each  subsequent  calendar  year  such that at any time  after  July 1, 2007 the
remaining term of this Agreement shall be from two to three years, absent notice
of  non-renewal  as set  forth  below.  Prior to June 1,  2008 and each June 1st
thereafter, the Board of Directors of each of the Corporation and the Bank shall
consider and review (with appropriate corporate documentation thereof, and after
taking into account all relevant factors,  including the Executive's performance
hereunder)  an  extension  of the term of this  Agreement,  and the  term  shall
continue to extend each year if the Board of Directors  approves such  extension
unless the Executive  gives written  notice to the Employers of the  Executive's
election not to extend the term,  with such written  notice to be given not less
than  thirty  (30) days  prior to any such July 1st . If the Board of  Directors
elects not to extend the term, it shall give written  notice of such decision to
the  Executive not less than thirty (30) days prior to any such July 1st. If any
party gives  timely  notice that the term will not be extended as of June 1st of
any year, then this Agreement shall terminate at the conclusion of its remaining
term.  References  herein to the term of this Agreement  shall refer both to the
initial term and successive terms.

         (b) During the term of this Agreement, the Executive shall perform such
executive  services for the  Corporation  and the Bank as may be consistent with
his titles and from time to time  assigned to him by the  Corporation's  and the
Bank's Board of Directors.

         (c) During the term of this Agreement, the Executive shall be nominated
to be a member of the Board of Directors of the Corporation and Bank, as long as
the  Executive  has  not  violated  any of the  terms  and  provisions  of  this
Agreement.

         3. Compensation and Benefits.

         (a) The  Employers  shall  compensate  and pay  the  Executive  for his
services  during the term of this Agreement at a minimum base salary of $142,000

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per year  ("Base  Salary"),  which  may be  increased  from time to time in such
amounts as may be determined by the Boards of Directors of the Employers and may
not be decreased without the Executive's express written consent. In addition to
his Base Salary,  the Executive  shall be entitled to receive during the term of
this  Agreement  such  bonus  payments  as may be  determined  by the  Boards of
Directors of the Employers.

         (b) During the term of this Agreement,  the Executive shall be entitled
to  participate  in and receive the benefits of any pension or other  retirement
benefit plan, profit sharing, stock option,  employee stock ownership,  or other
plans,  benefits  and  privileges  given  to  employees  and  executives  of the
Employers, to the extent commensurate with his then duties and responsibilities,
as fixed by the Boards of Directors of the  Employers.  The Employers  shall not
make any changes in such plans,  benefits or  privileges  which would  adversely
affect the Executive's rights or benefits thereunder,  unless such change occurs
pursuant to a program  applicable to all executive officers of the Employers and
does not result in a proportionately  greater adverse change in the rights of or
benefits to the  Executive as compared with any other  executive  officer of the
Employers. Nothing paid to the Executive under any plan or arrangement presently
in effect or made  available  in the future shall be deemed to be in lieu of the
salary payable to the Executive pursuant to Section 3(a) hereof.

         (c) During the term of this Agreement,  the Executive shall be entitled
to paid annual vacation in accordance with the policies as established from time
to time by the Boards of Directors of the Employers,  which shall in no event be
less than five weeks per annum.  The Executive  shall not be entitled to receive
any additional  compensation  from the Employers for failure to take a vacation,
nor shall the Executive be able to accumulate unused vacation time from one year
to the next,  except to the extent  authorized by the Boards of Directors of the
Employers.

         (d) In the  event  the  Executive's  employment  is  terminated  due to
Disability or Retirement,  the Employers shall provide  continued life,  medical
and dental coverage  substantially  identical to the coverage  maintained by the
Employers for the Executive immediately prior to his termination.  Such coverage
shall  be  provided  for the  period  otherwise  remaining  in the  term of this
Agreement but for such  Disability or Retirement and  thereafter  shall continue
if, and to the extent,  provided by the Employers  policies in existence at such
time.  Notwithstanding  the  foregoing,  if the provision of any of the benefits
covered by this  Section 3(d) would  trigger the 20% tax and interest  penalties
under  Section  409A of the Code either due to the nature of such benefit or the
length of time it is being provided, then the benefit(s) that would trigger such
tax and  interest  penalties  due to the  nature  of such  benefit  shall not be
provided  at all and the  benefit(s)  that would  trigger  the tax and  interest
penalties if provided beyond the "limited period of time" set forth in the final
regulations  under Section 409A shall not be provided beyond such limited period
of time (the "Excluded  Benefits"),  and, in lieu of the Excluded Benefits,  the
Employers  shall pay to the  Executive,  in a lump sum within 30 days  following
termination of employment or within 30 days after such  determination  should it
occur after  termination of  employment,  a cash amount equal to the cost to the
Employers of providing the Excluded Benefits.

         (e) In the  event  of the  Executive's  death  during  the term of this
Agreement,  the  Employers  shall  provide  to the  Executive's  spouse  for the
remaining  term  of  this  Agreement   continued  medical  and  dental  coverage
substantially  identical to the coverage  maintained  by the  Employers  for the

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Executive immediately prior to his death.  Notwithstanding the foregoing, if the
provision of any of the benefits  covered by this Section 3(e) would trigger the
20% tax and interest  penalties under Section 409A of the Code either due to the
nature of such  benefit  or the  length of time it is being  provided,  then the
benefit(s) that would trigger such tax and interest  penalties due to the nature
of such  benefit  shall not be  provided  at all and the  benefit(s)  that would
trigger the tax and interest penalties if provided beyond the "limited period of
time"  set  forth in the  final  regulations  under  Section  409A  shall not be
provided beyond such limited period of time (the "Excluded  Benefits"),  and, in
lieu of the Excluded  Benefits,  the Employers shall pay to the Executive,  in a
lump sum within 30 days  following  termination  of employment or within 30 days
after such determination should it occur after termination of employment, a cash
amount equal to the cost to the Employers of providing the Excluded Benefits.

         4. Expenses.  The Employers  shall reimburse the Executive or otherwise
provide for or pay for all  reasonable  expenses  incurred by the  Executive  in
furtherance of or in connection  with the business of the Employers,  including,
but  not  by  way  of  limitation,   traveling  expenses,   and  all  reasonable
entertainment  expenses  (whether incurred at the Executive's  residence,  while
traveling or  otherwise),  subject to such  reasonable  documentation  and other
limitations  as may be  established by the Boards of Directors of the Employers.
If such expenses are paid in the first instance by the Executive,  the Employers
shall reimburse the Executive therefor.

         5. Termination.

         (a) The Employers  shall have the right,  at any time upon prior Notice
of  Termination,  to terminate  the  Executive's  employment  hereunder  for any
reason,  including,  without  limitation,  termination for Cause,  Disability or
Retirement,  and the  Executive  shall  have the  right,  upon  prior  Notice of
Termination, to terminate his employment hereunder for any reason.

         (b) In the event that (i) the  Executive's  employment is terminated by
the  Employers  for  Cause  or (ii)  the  Executive  terminates  his  employment
hereunder  other than for  Disability,  Retirement,  death or Good  Reason,  the
Executive  shall have no right  pursuant to this  Agreement to  compensation  or
other benefits for any period after the applicable Date of Termination.

         (c) In the event that the  Executive's  employment  is  terminated as a
result of  Disability,  Retirement or the  Executive's  death during the term of
this Agreement,  the Executive shall have no right pursuant to this Agreement to
compensation  or other  benefits  for any period  after the  applicable  Date of
Termination, except as provided for in Sections 3(d) and 3(e) hereof.

         (d) In the event that (i) the  Executive's  employment is terminated by
the Employers for other than Cause,  Disability,  Retirement or the  Executive's
death or (ii) such  employment  is  terminated by the Executive for Good Reason,
then the Employers  shall,  subject to the  provisions  of Section 6 hereof,  if
applicable,

                  (A)  pay to the  Executive,  in a lump  sum as of the  Date of
         Termination,  a cash  severance  amount  equal to three  (3)  times the
         Executive's Average Annual Compensation,

                  (B) maintain and provide for a period ending at the earlier of
         (i)  thirty-six  (36) months after the Date of  Termination or (ii) the
         date  of the  Executive's  full-time  employment  by  another  employer

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         (provided  that the  Executive  is  entitled  under  the  terms of such
         employment to benefits substantially similar to those described in this
         subparagraph  (B)),  at no  cost  to  the  Executive,  the  Executive's
         continued participation in all group insurance, life insurance,  health
         and accident, disability and other employee benefit plans, programs and
         arrangements  offered  by the  Employers  in which  the  Executive  was
         entitled to  participate  immediately  prior to the Date of Termination
         (other  than  retirement  plans  or  stock  compensation  plans  of the
         Employers), subject to subparagraphs (C) and (D) below.

                  (C) in the event  that the  Executive's  participation  in any
         plan,  program or arrangement as provided in  subparagraph  (B) of this
         Section 5(d) is barred, or during such period any such plan, program or
         arrangement is discontinued  or the benefits  thereunder are materially
         reduced,  the Employers  shall  arrange to provide the  Executive  with
         benefits  substantially  similar  to  those  which  the  Executive  was
         entitled  to  receive  under  such  plans,  programs  and  arrangements
         immediately prior to the Date of Termination, and

                  (D) if the provision of any of the benefits covered by Section
         5(d)(B) or (C) would trigger the 20% tax and interest  penalties  under
         Section  409A of the Code  either due to the nature of such  benefit or
         the length of time it is being provided, then the benefit(s) that would
         trigger  such tax and  interest  penalties  due to the  nature  of such
         benefit  shall not be  provided  at all and the  benefit(s)  that would
         trigger the tax and interest  penalties if provided beyond the "limited
         period of time" set forth in the  regulations  under Section 409A shall
         not be  provided  beyond  such  limited  period of time (the  "Excluded
         Benefits"),  and in lieu of the Excluded  Benefits the Employers  shall
         pay  to  the  Executive,  in  a  lump  sum  within  30  days  following
         termination  of employment  or within 30 days after such  determination
         should it occur after termination of employment, a cash amount equal to
         the cost to the Employers of providing the Excluded Benefits.

         6. Limitation of Benefits under Certain Circumstances.  If the payments
and benefits  pursuant to Section 5 hereof,  either alone or together with other
payments  and  benefits  which the  Executive  has the right to receive from the
Employers,  would  constitute a "parachute  payment"  under  Section 280G of the
Code,  then the  payments  and  benefits  payable by the  Employers  pursuant to
Section 5 hereof shall be reduced by the minimum  amount  necessary to result in
no portion of the payments and benefits payable by the Employers under Section 5
being  non-deductible to the Employers  pursuant to Section 280G of the Code and
subject  to the  excise  tax  imposed  under  Section  4999 of the Code.  If the
payments  and  benefits  under  Section 5 are  required to be reduced,  the cash
severance  shall  be  reduced  first,  followed  by a  reduction  in the  fringe
benefits.  The determination of any reduction in the payments and benefits to be
made  pursuant to Section 5 shall be based upon the opinion of  independent  tax
counsel  selected by the Employers and paid for by the  Employers.  Such counsel
shall promptly prepare the foregoing opinion,  but in no event later than thirty
(30)  days  from the Date of  Termination,  and may use such  actuaries  as such
counsel deems necessary or advisable for the purpose.  Nothing  contained herein
shall result in a reduction  of any payments or benefits to which the  Executive
may be entitled upon  termination of employment  under any  circumstances  other
than as specified in this Section 6, or a reduction in the payments and benefits
specified in Section 5 below zero.

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         7. Restrictive Covenants

         (a) Trade  Secrets.  Executive  acknowledges  that he has had, and will
have, access to confidential  information of the Employers  (including,  but not
limited to,  current and  prospective  confidential  know-how,  customer  lists,
marketing  plans,  business  plans,  financial  and  pricing  information,   and
information  regarding  acquisitions,  mergers and/or joint ventures) concerning
the business,  customers,  contacts, prospects, and assets of the Employers that
is unique, valuable and not generally known outside the Employers,  and that was
obtained from the Employers or which was learned as a result of the  performance
of services by Executive on behalf of the  Employers  ("Trade  Secrets").  Trade
Secrets  shall not  include  any  information  that:  (i) is now,  or  hereafter
becomes,  through  no act or  failure  to act on  the  part  of  Executive  that
constitutes  a breach of this  Section 7,  generally  known or  available to the
public;  (ii) is known to  Executive at the time such  information  was obtained
from  the  Employers;  (iii)  is  hereafter  furnished  without  restriction  on
disclosure to Executive by a third party, other than an employee or agent of the
Employers,  who is not under any obligation of  confidentiality to the Employers
or an Affiliate;  (iv) is disclosed with the written  approval of the Employers;
or (v) is required to be disclosed or provided by law, court order, order of any
regulatory agency having jurisdiction or similar compulsion,  including pursuant
to or in connection  with any legal  proceeding  involving  the parties  hereto;
provided  however,  that  such  disclosure  shall be  limited  to the  extent so
required or  compelled;  and  provided  further,  however,  that if Executive is
required to disclose such confidential information,  he shall give the Employers
notice of such disclosure and cooperate in seeking suitable  protections.  Other
than in the course of performing services for the Employers, Executive will not,
at any time, directly or indirectly use, divulge,  furnish or make accessible to
any person any Trade Secrets,  but instead will keep all Trade Secrets  strictly
and absolutely  confidential.  Executive will deliver promptly to the Employers,
at the  termination of his employment or at any other time at the request of the
Employers,  without  retaining any copies,  all documents and other materials in
his possession relating, directly or indirectly, to any Trade Secrets.

         (b) Non-Competition. Unless the Executive's employment is terminated in
connection  with or following a Change in Control of the Employers or unless the
Executive's  employment  is  terminated by the Employers for a reason other than
Cause, then for a period of eighteen (18) months after termination of employment
(the "Restricted Period"),  the Executive will not, directly or indirectly,  (i)
become  a  director,   officer,  employee,   principal,   agent,  consultant  or
independent contractor of any insured depository  institution,  trust company or
parent holding company of any such institution or company which has an office in
any county in the  Commonwealth of Pennsylvania in which the Bank also maintains
an  office.  Notwithstanding  the  foregoing,  nothing in this  Agreement  shall
prevent the Executive from owning for passive  investment  purposes not intended
to circumvent this Agreement, less than five percent (5%) of the publicly traded
voting  securities of any company  engaged in the banking,  financial  services,
insurance,  brokerage  or other  business  similar  to or  competitive  with the
Employers  (so long as the Executive  has no power to manage,  operate,  advise,
consult  with or control  the  competing  enterprise  and no power,  alone or in
conjunction  with  other  affiliated  parties,  to select a  director,  manager,
general partner, or similar governing official of the competing enterprise other
than in  connection  with the normal and customary  voting  powers  afforded the
Executive in connection with any permissible equity ownership).

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         (c)  Non-Solicitation  of  Employees.  During  the  Restricted  Period,
Executive shall not, directly or indirectly solicit,  induce or hire, or attempt
to solicit,  induce or hire,  any  current  employee  of the  Employers,  or any
individual who becomes an employee during the Restricted Period, to leave his or
her employment  with the Employers or join or become  affiliated  with any other
business or entity,  or in any way interfere  with the  employment  relationship
between any employee and the Employers.

         (d)  Non-Solicitation  of  Customers.  During  the  Restricted  Period,
Executive shall not,  directly or indirectly,  solicit or induce,  or attempt to
solicit or induce, any customer, lender, supplier,  licensee,  licensor or other
business  relation of the  Employers to terminate its  relationship  or contract
with the Employers,  to cease doing  business with the Employers,  or in any way
interfere with the  relationship  between any such customer,  lender,  supplier,
licensee or business  relation and the Employers  (including making any negative
or derogatory  statements or  communications  concerning  the Employers or their
directors, officers or employees).

         (e)  Irreparable  Harm.  Executive  acknowledges  that: (i) Executive's
compliance  with this  Agreement  is  necessary  to  preserve  and  protect  the
proprietary  rights,  Trade Secrets,  and the goodwill of the Employers as going
concerns,  and (ii) any failure by  Executive to comply with the  provisions  of
this Agreement will result in irreparable and continuing  injury for which there
will be no adequate  remedy at law. In the event that Executive  fails to comply
with  the  terms  and  conditions  of this  Agreement,  the  obligations  of the
Employers  to pay the  severance  benefits  set forth in  Sections 3 and 5 shall
cease, and the Employers will be entitled,  in addition to other relief that may
be proper, to all types of equitable relief (including,  but not limited to, the
issuance  of an  injunction  and/or  temporary  restraining  order)  that may be
necessary to cause  Executive to comply with this  Agreement,  to restore to the
Employers their property, and to make the Employers whole.

         (f) Survival.  The provisions set forth in this Section 7 shall survive
termination of this Agreement.

         (g)  Scope  Limitations.  If the  scope,  period  of  time  or  area of
restriction  specified  in  this  Section  7  are  or  would  be  judged  to  be
unreasonable in any court proceeding,  then the period of time, scope or area of
restriction will be reduced or limited in the manner and to the extent necessary
to make the restriction  reasonable,  so that the restriction may be enforced in
those  areas,  during  the  period of time and in the scope that are or would be
judged to be reasonable.

         8. Mitigation; Exclusivity of Benefits.

         (a) The  Executive  shall not be required to mitigate the amount of any
benefits  hereunder by seeking  other  employment  or  otherwise,  nor shall the
amount  of any such  benefits  be  reduced  by any  compensation  earned  by the
Executive  as a result  of  employment  by  another  employer  after the Date of
Termination or otherwise, except as set forth in Section 5(d)(B) above.

         (b) The  specific  arrangements  referred to herein are not intended to
exclude  any other  benefits  which may be  available  to the  Executive  upon a
termination of employment with the Employers  pursuant to employee benefit plans
of the Employers or otherwise.

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         9.  Withholding.  All  payments  required  to be made by the  Employers
hereunder to the Executive  shall be subject to the withholding of such amounts,
if any,  relating  to tax and other  payroll  deductions  as the  Employers  may
reasonably  determine  should be  withheld  pursuant  to any  applicable  law or
regulation.

         10.  Assignability.  The  Corporation  and the  Bank  may  assign  this
Agreement and their rights and obligations  hereunder in whole, but not in part,
to any  corporation,  bank or other entity with or into which the Corporation or
the Bank may hereafter  merge or consolidate or to which the  Corporation or the
Bank may transfer all or  substantially  all of its assets,  if in any such case
said corporation, bank or other entity shall by operation of law or expressly in
writing assume all obligations of the Employers  hereunder as fully as if it had
been originally made a party hereto, but may not otherwise assign this Agreement
or its  rights  and  obligations  hereunder.  The  Executive  may not  assign or
transfer this Agreement or any rights or obligations hereunder.

         11. Notice.  For the purposes of this Agreement,  notices and all other
communications  provided for in this Agreement  shall be in writing and shall be
deemed  to have been duly  given  when  delivered  or  mailed  by  certified  or
registered mail,  return receipt  requested,  postage prepaid,  addressed to the
respective addresses set forth below:

         To the Bank:               Secretary
                                    Farmers National Bank of Emlenton
                                    612 Main Street
                                    Emlenton, Pennsylvania 16373

         To the Corporation:        Secretary
                                    Emclaire Financial Corp.
                                    612 Main Street
                                    Emlenton, Pennsylvania 16373

         To the Executive:          William C. Marsh

                                    At the address last appearing on
                                    the personnel records of the Employers

          12.  Amendment;  Waiver.  No  provisions  of  this  Agreement  may  be
modified, waived or discharged unless such waiver,  modification or discharge is
agreed to in writing signed by the Executive and such officer or officers as may
be specifically designated by the Board of Directors of the Employers to sign on
their  behalf.  No waiver by any party  hereto at any time of any  breach by any
other party hereto of, or  compliance  with,  any condition or provision of this
Agreement  to be  performed  by such  other  party  shall be  deemed a waiver of
similar or  dissimilar  provisions  or conditions at the same or at any prior or
subsequent time. In addition,  notwithstanding anything in this Agreement to the
contrary,  the  Employers  may amend in good faith any terms of this  Agreement,
including retroactively, in order to comply with Section 409A of the Code.

                                       9
<PAGE>

         13.  Governing  Law. The  validity,  interpretation,  construction  and
performance of this Agreement shall be governed by the laws of the United States
where  applicable and otherwise by the substantive  laws of the  Commonwealth of
Pennsylvania.

         14. Nature of  Obligations.  Nothing  contained  herein shall create or
require the  Employers to create a trust of any kind to fund any benefits  which
may be payable hereunder,  and to the extent that the Executive acquires a right
to receive benefits from the Employers hereunder, such right shall be no greater
than the right of any unsecured general creditor of the Employers.

         15. Headings.  The section headings contained in this Agreement are for
reference  purposes  only  and  shall  not  affect  in any  way the  meaning  or
interpretation of this Agreement.

         16. Validity.  The invalidity or  unenforceability  of any provision of
this  Agreement  shall not affect the  validity or  enforceability  of any other
provisions of this Agreement, which shall remain in full force and effect.

         17.  Counterparts.  This  Agreement  may be  executed  in  one or  more
counterparts,  each of which shall be deemed to be an original  but all of which
together will constitute one and the same instrument.

         18. Regulatory Actions. The following provisions shall be applicable to
the parties or any successor thereto, and shall be controlling in the event of a
conflict  with  any  other  provision  of  this  Agreement,   including  without
limitation Section 5 hereof.

         (a) If the  Executive  is  suspended  from  office  and/or  temporarily
prohibited from  participating  in the conduct of the Bank's affairs pursuant to
notice served under Section  8(e)(3) or Section  8(g)(1) of the Federal  Deposit
Insurance Act ("FDIA")(12 U.S.C. Sections 1818(e)(3) and 1818(g)(1)), the Bank's
obligations  under this Agreement  shall be suspended as of the date of service,
unless  stayed by  appropriate  proceedings.  If the  charges  in the notice are
dismissed, the Bank may, in its discretion: (i) pay the Executive all or part of
the  compensation  withheld  while its  obligations  under this  Agreement  were
suspended, and (ii) reinstate (in whole or in part) any of its obligations which
were suspended.

         (b)  If  the  Executive  is  removed  from  office  and/or  permanently
prohibited from  participating  in the conduct of the Bank's affairs by an order
issued  under  Section  8(e)(4)  or  Section  8(g)(1)  of the  FDIA  (12  U.S.C.
Sections 1818(e)(4) and (g)(1)), all obligations of the Bank under this
Agreement shall terminate as of the effective date of the order,  but vested
rights of the Executive and the Bank as of the date of termination shall not be
affected.

         (c) If the Bank is in  default,  as defined  in Section  3(x)(1) of the
FDIA (12 U.S.C. Section 1813(x)(1)), all obligations under this Agreement  shall
terminate as of the date of default,  but vested rights of the Executive and the
Bank as of the date of termination shall not be affected.

         19. Regulatory Prohibition. Notwithstanding any other provision of this
Agreement to the contrary,  any payments made to the Executive  pursuant to this
Agreement,  or otherwise,  are subject to and conditioned  upon their compliance
with Section 18(k) of the FDIA (12 U.S.C. Section 1828(k)) and 12 C.F.R. Part
359.

                                       10
<PAGE>

         20. Payment of Costs and Legal Fees and  Reinstatement of Benefits.  In
the event any dispute or  controversy  arising under or in  connection  with the
Executive's  termination  is  resolved  in favor of the  Executive,  whether  by
judgment,  arbitration  or  settlement,  the Executive  shall be entitled to the
payment  of (a) all legal fees  incurred  by the  Executive  in  resolving  such
dispute or controversy, and (b) any back-pay, including Base Salary, bonuses and
any other cash  compensation,  fringe benefits and any compensation and benefits
due to the Executive under this Agreement.

         21. Arbitration. Any controversy or claim arising out of or relating to
this  Agreement,  or the breach  thereof,  shall be settled  by  arbitration  in
accordance  with the rules then in effect of the district office of the American
Arbitration  Association  ("AAA")  nearest to the home  office of the Bank,  and
judgment upon the award rendered may be entered in any court having jurisdiction
thereof,  except to the extent  that the parties  may  otherwise  reach a mutual
settlement  of such issue.  The  Employers  shall incur the cost of all fees and
expenses  associated with filing a request for arbitration with the AAA, whether
such filing is made on behalf of the Employers or the  Executive,  and the costs
and  administrative  fees  associated  with employing the arbitrator and related
administrative expenses assessed by the AAA.

         22. Entire  Agreement.  This  Agreement  embodies the entire  agreement
between the Employers and the  Executive  with respect to the matters  agreed to
herein.  All prior  agreements  between the  Employers  and the  Executive  with
respect to the matters agreed to herein are hereby  superseded and shall have no
force or effect.

                                       11
<PAGE>

         IN WITNESS  WHEREOF,  this  Agreement  has been executed as of the date
first above written.

Attest:                               EMCLAIRE FINANCIAL CORP.

                                      By:
---------------------------------              /s/ David L. Cox
                                               ---------------------------------
                                               David L. Cox
                                               Chairman of the Board, President
                                               and Chief Executive Officer

                                      FARMERS NATIONAL BANK
                                        OF EMLENTON

                                      By:      /s/ David L. Cox
                                               ---------------------------------
                                               David L. Cox
                                               Chairman of the Board

                                      EXECUTIVE

                                      By:      /s/ William C. Marsh
                                               ---------------------------------
                                               William C. Marsh

                                       12Exhibit 10.3

                           CHANGE IN CONTROL AGREEMENT

         This  CHANGE  IN  CONTROL  AGREEMENT  (this  "Agreement"),  is made and
entered into as of the 1st day of July 2007, between Emclaire Financial Corp., a
Pennsylvania-chartered  bank holding  company (the  "Corporation"),  the Farmers
National  Bank of  Emlenton,  a national  banking  association  (the "Bank") and
Raymond M. Lawton (the "Executive").

                                   WITNESSETH:

         WHEREAS, the Executive is currently employed as a Senior Vice President
of the  Corporation  and the Bank (the  Corporation and the Bank are referred to
together herein as the "Employers");

         WHEREAS,  the  Employers  desire  to  be  ensured  of  the  Executive's
continued active participation in the business of the Employers; and

         WHEREAS,  in order to induce the  Executive  to remain in the employ of
the Employers and in consideration of the Executive's  agreeing to remain in the
employ of the Employers,  the parties  desire to specify the severance  benefits
which  shall be due the  Executive  in the event  that his  employment  with the
Employers is terminated under specified circumstances;

         NOW  THEREFORE,  in  consideration  of  the  premises  and  the  mutual
agreements herein contained, the parties hereby agree as follows:

         1.  Definitions.  The following words and terms shall have the meanings
set forth below for the purposes of this Agreement:

         (a) Annual  Compensation.  The Executive's  "Annual  Compensation"  for
purposes  of this  Agreement  shall  be  deemed  to mean  the  highest  level of
compensation  paid to the Executive by the Employers or any  subsidiary  thereof
and  included in the  Executive's  gross  income for tax purposes and any income
earned and deferred by the Executive  pursuant to any plan or arrangement of the
Employers  during  the  calendar  year in which the Date of  Termination  occurs
(determined  on an  annualized  basis)  or  either  of the  two  calendar  years
immediately preceding the calendar year in which the Date of Termination occurs.

         (b) Cause.  Termination by the Employers of the Executive's  employment
for "Cause" shall mean termination because of 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. For purposes of this paragraph, no act or failure to act
on the Executive's part shall be considered "willful" unless done, or omitted to
be done, by the Executive not in good faith and without  reasonable  belief that
the Executive's action or omission was in the best interest of the Employers.

                                       1
<PAGE>

         (c) Change in Control.  "Change in Control"  shall mean a change in the
ownership of the  Corporation or the Bank, a change in the effective  control of
the  Corporation  or the  Bank or a change  in the  ownership  of a  substantial
portion of the assets of the  Corporation  or the Bank, in each case as provided
under Section 409A of the Code and the regulations thereunder.

         (d)  Code.  Code  shall  mean the  Internal  Revenue  Code of 1986,  as
amended.

         (e) Date of Termination.  "Date of  Termination"  shall mean (i) if the
Executive's  employment is terminated for Cause, the date on which the Notice of
Termination is given,  and (ii) if the Executive's  employment is terminated for
any other reason, the date specified in such Notice of Termination.

         (f) Disability.  "Disability" shall mean the Executive (i) is unable to
engage  in  any  substantial   gainful  activity  by  reason  of  any  medically
determinable  physical or mental  impairment  which can be expected to result in
death or can be  expected  to last for a  continuous  period of not less than 12
months, or (ii) is, by reason of any medically  determinable  physical or mental
impairment  which can be  expected to result in death or can be expected to last
for a continuous period of not less than 12 months, receiving income replacement
benefits for a period of not less than three months under an accident and health
plan covering employees of the Employers.

         (g)  Good  Reason.  Termination  by the  Executive  of the  Executive's
employment for "Good Reason" shall mean termination by the Executive following a
Change of Control based on:

                           (i) any  material  breach  of this  Agreement  by the
                  Employers,  including without limitation any of the following:
                  (A)  a   material   diminution   in   the   Executive's   base
                  compensation,  (B) a material  diminution  in the  Executive's
                  authority,  duties  or  responsibilities,  or  (C) a  material
                  diminution in the authority, duties or responsibilities of the
                  officer to whom the Executive is required to report, or

                           (ii) any material  change in the geographic  location
                  at which the  Executive  must perform his services  under this
                  Agreement,  including  a  material  change in the  Executive's
                  principal  place  of  employment  or  the  imposition  of  any
                  requirement  that the  Executive  spend more than  ninety (90)
                  business days per year at a location other than such principal
                  place of employment;

                  provided, however, that prior to any termination of employment
                  for Good Reason,  the  Executive  must first  provide  written
                  notice  to the  Corporation  within  ninety  (90)  days of the
                  initial  existence of the condition,  describing the existence
                  of such condition,  and the Corporation  shall thereafter have
                  the right to remedy the  condition  within thirty (30) days of
                  the date the Corporation  received the written notice from the
                  Executive.  If the Corporation  remedies the condition  within
                  such thirty  (30) cure  period,  then no Good Reason  shall be
                  deemed to exist with respect to such condition.

                                       2
<PAGE>

         (h) IRS. IRS shall mean the Internal Revenue Service.

         (i) Notice of Termination. Any purported termination of the Executive's
employment  by the  Employers  for Cause,  Disability  or  Retirement  or by the
Executive  for  Good  Reason  shall  be   communicated  by  written  "Notice  of
Termination"  to the other  party  hereto.  For  purposes of this  Agreement,  a
"Notice of  Termination"  shall mean a notice which (i)  indicates  the specific
termination  provision  in this  Agreement  relied  upon,  (ii)  sets  forth  in
reasonable  detail  the facts and  circumstances  claimed to provide a basis for
termination  of the  Executive's  employment  under the  provision so indicated,
(iii) specifies a Date of Termination,  which shall be not less than thirty (30)
nor more than ninety (90) days after such Notice of Termination is given, except
in the case of the  Employers'  termination  of the  Executive's  employment for
Cause,  which shall be  effective  immediately,  and (iv) is given in the manner
specified in Section 7 hereof.

         (j) Retirement.  "Retirement"  shall mean voluntary  termination by the
Executive upon reaching age 65.

         2.  Term of  Agreement.  The  term of this  Agreement  shall be for two
years, commencing as of July 1, 2007 (the "Start Date"). Commencing on the first
anniversary of the Start Date,  the term of this  Agreement  shall extend for an
additional  year on each annual  anniversary of the Start Date of this Agreement
until such time as the Boards of  Directors of the  Employers  or the  Executive
give  notice in  accordance  with the terms of  Section 8 hereof of their or his
election,  respectively,  not to extend the term of this Agreement. Such written
notice of the  election  not to extend  must be given not less than  thirty (30)
days prior to any such  anniversary  date. If any party gives timely notice that
the term will not be  extended  as of any  annual  anniversary  date,  then this
Agreement shall terminate at the conclusion of its remaining term. The Boards of
Directors  of the  Employers  will review  this  Agreement  and the  Executive's
performance  annually  for  purposes  of  determining  whether  to  extend  this
Agreement.  References  herein to the term of this Agreement shall refer both to
the initial term and successive terms.

         3.  Benefits Upon  Termination.  If the  Executive's  employment by the
Employers  shall be terminated  within  twenty four (24) months  subsequent to a
Change  in  Control  by (i) the  Employers  other  than for  Cause,  Disability,
Retirement or as a result of the  Executive's  death,  or (ii) the Executive for
Good Reason,  then the Employers  shall,  subject to the provisions of Section 3
hereof, if applicable:

         (a) pay to the Executive,  in a lump sum as of the Date of Termination,
a cash amount equal to two (2) times the Executive's Annual Compensation; and

         (b)  maintain  and  provide  for a period  ending at the earlier of (i)
twenty-four  (24) months after the Date of  Termination  or (ii) the date of the
Executive's   full-time  employment  by  another  employer  (provided  that  the
Executive  is  entitled   under  the  terms  of  such   employment  to  benefits
substantially  similar to those described in this subparagraph  (b)), at no cost
to  the  Executive,   the  Executive's  continued  participation  in  all  group
insurance,  life insurance,  health and accident,  disability and other employee

                                       3
<PAGE>

benefit plans,  programs and arrangements in which the Executive was entitled to
participate  immediately prior to the Date of Termination (other than retirement
plans or stock compensation plans of the Employers),  provided that in the event
that the  Executive's  participation  in any plan,  program  or  arrangement  as
provided  in this  subparagraph  (b) is barred,  or during  such period any such
plan,  program or arrangement  is  discontinued  or the benefits  thereunder are
materially  reduced,  the Employers  shall arrange to provide the Executive with
benefits  substantially  similar to those which the  Executive  was  entitled to
receive under such plans,  programs and  arrangements  immediately  prior to the
Date of  Termination.  If the  provision of any of the benefits  covered by this
Section 3(b) would trigger the 20% tax and interest penalties under Section 409A
of the Code either due to the nature of such benefit or the length of time it is
being  provided,  then the  benefit(s)  that would trigger such tax and interest
penalties due to the nature of such benefit shall not be provided at all and the
benefit(s) that would trigger the tax and interest  penalties if provided beyond
the "limited  period of time" set forth in the  regulations  under  Section 409A
shall not be provided  beyond such  limited  period of time  (collectively,  the
"Excluded  Benefits"),  and in lieu of the Excluded Benefits the Employers shall
pay to the  Executive,  in a lump sum within 30 days  following  termination  of
employment  or within 30 days after  such  determination  should it occur  after
termination of  employment,  a cash amount equal to the cost to the Employers of
providing the Excluded Benefits.

         4. Limitation of Benefits under Certain Circumstances.  If the payments
and benefits  pursuant to Section 3 hereof,  either alone or together with other
payments  and  benefits  which the  Executive  has the right to receive from the
Employers would constitute a "parachute payment" under Section 280G of the Code,
then the payments and benefits  pursuant to Section 3 hereof shall be reduced by
the  minimum  amount  necessary  to result in no  portion  of the  payments  and
benefits  under  Section  3 being  non-deductible  to  either  of the  Employers
pursuant to Section 280G of the Code and subject to the excise tax imposed under
Section  4999 of the Code.  If the payments  and  benefits  under  Section 3 are
required to be reduced, the cash severance shall be reduced first, followed by a
reduction in the fringe  benefits.  The  determination  of any  reduction in the
payments and  benefits to be made  pursuant to Section 3 shall be based upon the
opinion of independent tax counsel selected by the Employers and paid for by the
Employers.  Such counsel shall promptly prepare the foregoing opinion, but in no
event later than thirty (30) days from the Date of Termination, and may use such
actuaries as such counsel deems necessary or advisable for the purpose.  Nothing
contained  herein  shall  result in a reduction  of any  payments or benefits to
which the Executive may be entitled upon  termination  of employment  other than
pursuant  to Section 3 hereof,  or a  reduction  in the  payments  and  benefits
specified in Section 3 below zero.

                                       4
<PAGE>

         5. Mitigation; Exclusivity of Benefits.

         (a) The  Executive  shall not be required to mitigate the amount of any
benefits  hereunder by seeking  other  employment  or  otherwise,  nor shall the
amount  of any such  benefits  be  reduced  by any  compensation  earned  by the
Executive  as a result  of  employment  by  another  employer  after the Date of
Termination or otherwise, except as set forth in Section 3(b) above.

         (b) The  specific  arrangements  referred to herein are not intended to
exclude  any other  benefits  which may be  available  to the  Executive  upon a
termination of employment with the Employers  pursuant to employee benefit plans
of the Employers or otherwise.

         6.  Withholding.  All  payments  required  to be made by the  Employers
hereunder to the Executive  shall be subject to the withholding of such amounts,
if any,  relating  to tax and other  payroll  deductions  as the  Employers  may
reasonably  determine  should be  withheld  pursuant  to any  applicable  law or
regulation.

         7.  Assignability.  The Employers  may assign this  Agreement and their
rights hereunder in whole,  but not in part, to any  corporation,  bank or other
entity with or into which the Employers may hereafter merge or consolidate or to
which the Employers may transfer all or  substantially  all of their  respective
assets,  if in any such case said  corporation,  bank or other  entity  shall by
operation of law or expressly in writing assume all obligations of the Employers
hereunder as fully as if it had been originally made a party hereto, but may not
otherwise assign this Agreement or their rights hereunder. The Executive may not
assign or transfer this Agreement or any rights or obligations hereunder.

         8. Notice.  For the purposes of this  Agreement,  notices and all other
communications  provided for in this Agreement  shall be in writing and shall be
deemed  to have been duly  given  when  delivered  or  mailed  by  certified  or
registered mail,  return receipt  requested,  postage prepaid,  addressed to the
respective addresses set forth below:

         To the Bank:               Secretary
                                    Farmers National Bank of Emlenton
                                    612 Main Street
                                    Emlenton, Pennsylvania 16373

         To the Corporation:        Secretary
                                    Emclaire Financial Corp.
                                    612 Main Street
                                    Emlenton, Pennsylvania 16373

         To the Executive:          Raymond M. Lawton

                                    At the address last appearing on the
                                    personnel records of the Employers

                                       5
<PAGE>

          9. Amendment; Waiver. No provisions of this Agreement may be modified,
waived or discharged unless such waiver,  modification or discharge is agreed to
in  writing  signed by the  Executive  and such  officer or  officers  as may be
specifically  designated  by the Boards of Directors of the Employers to sign on
their  behalf.  No waiver by any party  hereto at any time of any  breach by any
other party hereto of, or  compliance  with,  any condition or provision of this
Agreement  to be  performed  by such  other  party  shall be  deemed a waiver of
similar or  dissimilar  provisions  or conditions at the same or at any prior or
subsequent time. In addition,  notwithstanding anything in this Agreement to the
contrary,  the  Employers  may amend in good faith any terms of this  Agreement,
including retroactively, in order to comply with Section 409A of the Code.

         10.  Governing  Law. The  validity,  interpretation,  construction  and
performance of this Agreement shall be governed by the laws of the United States
where  applicable and otherwise by the substantive  laws of the  Commonwealth of
Pennsylvania.

         11. Nature of Employment and Obligations.

         (a) Nothing  contained  herein  shall be deemed to create  other than a
terminable  at  will  employment  relationship  between  the  Employers  and the
Executive,  and the Employers may  terminate the  Executive's  employment at any
time,  subject to providing any payments specified herein in accordance with the
terms hereof.

         (b) Nothing  contained  herein shall create or require the Employers to
create a trust of any kind to fund any benefits which may be payable  hereunder,
and to the extent that the Executive  acquires a right to receive  benefits from
the  Employers  hereunder,  such right shall be no greater than the right of any
unsecured general creditor of the Employers.

         12. Headings.  The section headings contained in this Agreement are for
reference  purposes  only  and  shall  not  affect  in any  way the  meaning  or
interpretation of this Agreement.

         13. Validity.  The invalidity or  unenforceability  of any provision of
this  Agreement  shall not affect the  validity or  enforceability  of any other
provision of this Agreement, which shall remain in full force and effect.

         14.  Counterparts.  This  Agreement  may be  executed  in  one or  more
counterparts,  each of which shall be deemed to be an original  but all of which
together will constitute one and the same instrument.

         15. Regulatory Actions. The following provisions shall be applicable to
the parties or any successor thereto, and shall be controlling in the event of a
conflict  with  any  other  provision  of  this  Agreement,   including  without
limitation Section 3 hereof.

         (a) If the  Executive  is  suspended  from  office  and/or  temporarily
prohibited from  participating  in the conduct of the Bank's affairs pursuant to
notice served under Section  8(e)(3) or Section  8(g)(1) of the Federal  Deposit
Insurance Act ("FDIA")(12 U.S.C. Sections 1818(e)(3) and 1818(g)(1)), the Bank's

                                       6
<PAGE>

obligations  under this Agreement  shall be suspended as of the date of service,
unless  stayed by  appropriate  proceedings.  If the  charges  in the notice are
dismissed, the Bank may, in its discretion: (i) pay the Executive all or part of
the  compensation  withheld  while its  obligations  under this  Agreement  were
suspended, and (ii) reinstate (in whole or in part) any of its obligations which
were suspended.

         (b)  If  the  Executive  is  removed  from  office  and/or  permanently
prohibited from  participating  in the conduct of the Bank's affairs by an order
issued  under  Section  8(e)(4)  or  Section  8(g)(1)  of the  FDIA  (12  U.S.C.
Sections 1818(e)(4) and (g)(1)), all obligations of the Bank under this
Agreement shall terminate as of the effective date of the order,  but vested
rights of the Executive and the Bank as of the date of termination shall not be
affected.

         (c) If the Bank is in  default,  as defined  in Section  3(x)(1) of the
FDIA (12 U.S.C. Section 1813(x)(1)), all obligations under this Agreement  shall
terminate as of the date of default,  but vested rights of the Executive and the
Bank as of the date of termination shall not be affected.

         16. Regulatory Prohibition. Notwithstanding any other provision of this
Agreement to the contrary,  any payments made to the Executive  pursuant to this
Agreement,  or otherwise,  are subject to and conditioned  upon their compliance
with Section 18(k) of the FDIA (12 U.S.C. Section 1828(k)) and 12 C.F.R. Part
359.

         17. Payment of Costs and Legal Fees and  Reinstatement of Benefits.  In
the event any dispute or  controversy  arising under or in  connection  with the
Executive's  termination  is  resolved  in favor of the  Executive,  whether  by
judgment,  arbitration  or  settlement,  the Executive  shall be entitled to the
payment  of (a) all legal fees  incurred  by the  Executive  in  resolving  such
dispute or controversy, and (b) any back-pay, including Base Salary, bonuses and
any other cash  compensation,  fringe benefits and any compensation and benefits
due to the Executive under this Agreement.

         18. Arbitration. Any controversy or claim arising out of or relating to
this  Agreement,  or the breach  thereof,  shall be settled  by  arbitration  in
accordance  with the rules then in effect of the district office of the American
Arbitration  Association  ("AAA")  nearest to the home  office of the Bank,  and
judgment upon the award rendered may be entered in any court having jurisdiction
thereof,  except to the extent  that the parties  may  otherwise  reach a mutual
settlement  of such issue.  The  Employers  shall incur the cost of all fees and
expenses  associated with filing a request for arbitration with the AAA, whether
such filing is made on behalf of the Employers or the  Executive,  and the costs
and  administrative  fees  associated  with employing the arbitrator and related
administrative expenses assessed by the AAA.

         19. Entire  Agreement.  This  Agreement  embodies the entire  agreement
between the Employers and the  Executive  with respect to the matters  agreed to
herein.  All prior  agreements  between the  Employers  and the  Executive  with
respect to the matters agreed to herein,  including without limitation any prior
change in control agreement between the Employers and the Executive,  are hereby
superseded and shall have no force or effect.

                                       7
<PAGE>

         IN WITNESS  WHEREOF,  this  Agreement  has been executed as of the date
first above written.

Attest:                               EMCLAIRE FINANCIAL CORP.

                                      By:     /s/ David L. Cox
--------------------------------              ----------------------------------
                                               Chairman of the Board, President
                                               and Chief Executive Officer

                                      FARMERS NATIONAL BANK
                                       OF EMLENTON

                                      By:      /s/ David L. Cox
                                               ---------------------------------
                                               Chairman of the Board

                                      EXECUTIVE

                                      By:      /s/Raymond M. Lawton
                                               ---------------------------------
                                               Raymond M. Lawton

                                       8

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