Document:

ChoiceOne Exhibit 10.8 to Form 10-K - 04-02-07

EXHIBIT 10.8

                    The following persons have Executive Employee Salary Continuation Agreements with the Corporation in the form filed herewith with the names or amounts set forth below inserted in the blanks identified by the following column headings.

	
          (i)
	 	
(ii)
	 	
(iii)
	 
	
Richard L. Edgar
	 	
$39,300
	 	
$3,275.00
	 
	
Michael McHugh
	 	
 9,100
	 	
758.33
	 
	
Ronald Hansen
	 	
21,900
	 	
1,825.00
	 
	
Robert Karpinski
	 	
7,875
	 	
656.25
	 

EXECUTIVE EMPLOYEE SALARY

CONTINUATION AGREEMENT

for

(i)

TABLE OF CONTENTS

	 	
PAGE

	
SECTION 1
	
1

	 	
DEFINITIONS
	
1

	 	 	
1.1
	
Administrative Committee
	
1

	 	 	
1.2
	
Age
	
1

	 	 	
1.3
	
Change in Control
	
1

	 	 	
1.4
	
Crediting Rate
	
2

	 	 	
1.5
	
Disability
	
3

	 	 	
1.6
	
Discharge for Cause
	
3

	 	 	
1.7
	
Early Retirement Date
	
3

	 	 	
1.8
	
Mortality Assumptions
	
4

	 	 	
1.9
	
Normal Retirement Date
	
4

	 	 	
1.10
	
Termination of Employment
	
4

	 	 	
1.11
	
Vesting
	
4

	
SECTION 2
	
4

	 	
ELIGIBILITY
	
4

	
SECTION 3
	
4

	 	
PAYMENT OF BENEFITS
	
4

	 	 	
3.1
	
Benefits Upon Normal Retirement
	
4

	 	 	
3.2
	
Benefits Upon Early Retirement
	
5

	 	 	
3.3
	
Benefits Upon Late Retirement
	
5

	 	 	
3.4
	
Benefits Upon Disability
	
6

	 	 	
3.5
	
Other Terminations of Employment
	
6

	 	 	 	
(a)
	
Voluntary Termination of Employment Prior to the Early
	 
	 	 	 	 	
Retirement Date or Discharge for Cause at any Time
	
6

	 	 	 	
(b)
	
Involuntary Termination of Employment Prior to the Early
	 
	 	 	 	 	
Retirement Date Other Than Because of Death, Disability 
	 
	 	 	 	 	
or Discharge for Cause
	
6

	 	 	 	
(c)
	
Termination of Employment At or After A Change in
	 
	 	 	 	 	
Ownership of Control
	
7

	 	 	
3.6
	
Survivorship Benefits
	
7

	 	 	 	
(a)
	
Prior to Commencement of Normal or Early Retirement
	 
	 	 	 	 	
Benefits
	
7

	 	 	 	
(b)
	
After Commencement of Benefits
	
7

	 	 	
3.7
	
Recipients of Payments:  Designation of Beneficiary
	
8

	 	 	
3.8
	
Acceleration of Benefits
	
8

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SECTION 4
	
8

	 	
ADDITIONAL CHANGE IN CONTROL PROVISIONS
	
8

	 	 	
4.1
	
Application of Section
	
8

	 	 	
4.2
	
Limit on Payments
	
9

	 	 	
4.3
	
Determination by Experts
	
9

	 	 	
4.4
	
Participant's Costs of Enforcement
	
9

	
SECTION 5
	
10

	 	
ADMINISTRATION AND INTERPRETATION OF THIS AGREEMENT
	
10

	
SECTION 6
	
10

	 	
CLAIMS PROCEDURE
	
10

	
SECTION 7
	
11

	 	
REVIEW PROCEDURE
	
11

	 	 	
7.1
	 	
11

	 	 	
7.2
	 	
11

	
SECTION 8
	
11

	 	
LIFE INSURANCE AND FUNDING
	
11

	
SECTION 9
	
12

	 	
ASSIGNMENT OF BENEFITS
	
12

	
SECTION 10
	
12

	 	
EMPLOYMENT NOT GUARANTEED BY AGREEMENT
	
12

	
SECTION 11
	
12

	 	
TAXES
	
12

	
SECTION 12
	
13

	 	
AMENDMENT AND TERMINATION
	
13

	
SECTION 13
	
13

	 	
CONSTRUCTION
	
13

	
SECTION 14
	
13

	 	
FORM OF COMMUNICATION
	
13

	
SECTION 15
	
13

	 	
CAPTIONS
	
13

	
SECTION 16
	
14

	 	
SEVERABILITY
	
14

	
SECTION 17
	
14

	 	
BINDING EFFECT
	
14

	 	 
	
BENEFICIARY DESIGNATION
	
15

-ii-

EXECUTIVE EMPLOYEE SALARY CONTINUATION AGREEMENT

FOR

          THIS AGREEMENT is made this ______ day of _____________, 1998, effective January 1, 1997, between Valley Ridge Bank, a Michigan corporation (the "Company") and                    (i)                     (the "Participant").

          WHEREAS, the Participant is an executive employee of the Company and as such has materially contributed to the Company's position, and

          WHEREAS the Company wishes to establish this Agreement for purposes of promoting in the Participant the strongest interest in the successful operation of the Company and increased efficiency in his work and to provide the Participant benefits upon retirement, death, disability or other termination of employment, in consideration of services to be performed after the date of this agreement but prior to his retirement; and

          WHEREAS, the Company also wishes to establish this Agreement to enhance its abilities to attract and retain highly qualified executives and to enable those executives to perform their duties in the best interests of the Company and its shareholders in the event of possible or threatened Change in Control of the Company without undue concern regarding the personal, financial interests of such executives.

          NOW THEREFORE, in consideration of the premises, the parties hereto agree as follows:

SECTION 1

DEFINITIONS

          1.1          Administrative Committee - "Administrative Committee" shall consist of all  outside directors of the Bank's Personnel Committee.

          1.2          Age - "Age" shall mean the age of the person as of the date of his last birthday.

          1.3          Change in Control - For purposes of this Agreement, a Change in Control of the Company shall have occurred (i) on the fifth day preceding the scheduled expiration date of a tender offer by, or exchange offer by any corporation, person, other entity or group (other than the Company or any of its wholly owned subsidiaries), to acquire Voting Stock of the Company if (a) after giving

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effect to such offer such corporation, person other entity or group would own twenty-five percent (25%) or more of the Voting Stock of the Company, (b) there shall have been filed documents with the Securities and Exchange Commission ("SEC") in connection therewith (or, if no such filling is required, public evidence that the offer has already commenced), and (c) such corporation, person, other entity or group has secured all required regulatory approvals to own or control twenty-five percent (25%) or more of the Voting Stock of the Company, (ii) if the shareholders of the Company approve a definitive agreement to merge or consolidate the Company with or into another corporation in a transaction in which neither the Company nor any of its wholly owned subsidiaries will be the surviving corporation, or to sell or otherwise dispose of all or substantially all of the Company's assets to any corporation, person, other entity or group (other than the Company or any of its wholly owned subsidiaries), and such definitive agreement is consummated; (iii) if any corporation, person, other entity or group (other than the Company of any of its wholly owned subsidiaries) becomes the Beneficial Owner of stock representing twenty-five percent (25%) or more of the Voting Stock of the Company, or (iv) if during any period of two (2) consecutive years Continuing Directors cease to comprise a majority of the Company's Board of Directors.  The term "Continuing Director" means (i) any member of the Board of Directors of the Company who was a member of the Board of Directors of the Company at the beginning of any period of two (2) consecutive years, and (ii) any person who subsequently becomes a member of the Board of Directors of the Company, if (a) such person's nomination for election or election to the Board of Directors of the Company is recommended or approved by resolution of a majority of the Continuing Directors, or (b) such person is included as a nominee in a proxy statement of the Company distributed when a majority of the Board of Directors of the Company consists of Continuing Directors.  For purposes of this Agreement, "Voting Stock" shall mean those shares of the Company entitled to vote generally in the election of directors.

          1.4          Crediting Rate - "Crediting Rate" shall mean an annual rate of interest equal to 7.5%.

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          1.5          Disability - "Disability" shall mean, if the Participant is insured under the company long term disability policy, the definition of total disability contained in the long term disability insurance policy.  If the Participant is not insured under such a policy, the board shall, in its complete and sole discretion, determine whether the Participant is disabled for the purposes of this Agreement.

          1.6          Discharge for Cause - The Company may terminate the Participant's employment under this Agreement for "Cause."  A termination for Cause is a termination by reason of the Board's good faith determination that the Participant (i) is incompetent or acted dishonestly or engaged in willful misconduct in the performance of his duties, (ii) breached a fiduciary duty to the Company for personal profit to himself, (iii) intentionally failed to perform reasonably assigned duties, (iv) willfully violated any law, rule or regulation (other than traffic violations or similar offenses) or any final cease and desist order, or (v) materially breached this Agreement.  No act, or failure to act, on the Participant's part shall be considered "willful" unless he has acted, or failed to act, with an absence of good faith and without a reasonable belief that his action or failure to act was in the best interest of the Company.  Notwithstanding the foregoing, (i) the Participant shall not be deemed to have been terminated for Cause unless there shall have been delivered to the Participant a copy of a resolution duly adopted by the affirmative vote of not less than a majority of the entire membership of the Board at a meeting of the Board called and held for the purpose (after reasonable notice to the Participant and an opportunity for the Participant, together with is counsel, to be heard before the Board), finding that in the good faith opinion of the Board the Participant was guilty of conduct set forth above in the second sentence of this Section and specifying the particulars thereof in detail, and (ii) in no event will the Participant be subject to termination for Cause pursuant to clause (v) above unless the Participant shall have failed to cure, correct or prevent the alleged breach within thirty days after such resolution has been delivered to the Participant.

          1.7          Early Retirement Date - "Early Retirement Date" shall mean the first day of the month following the month in which a Participant reaches age 60.

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          1.8          Mortality Assumptions - "Mortality Assumptions" shall mean the life expectancy of a Participant, determined by applying Commissioners Standard Ordinary Mortality Table 1980CSO.

          1.9          Normal Retirement Date - "Normal Retirement Date" shall mean the first day of the month following the month in which a Participant reaches age 65.

          1.10        Termination of Employment - "Termination of Employment" shall mean the Participant's ceasing to be employed by the Company for any reason whatsoever, voluntary or involuntary, including by reason of death or disability.

          1.11        Vesting - For the purpose of this Agreement, vesting shall accrue to the Participant on a pro rata annual basis commencing January 1, 1997.  The Participant shall earn 20 percent vesting for each complete year under the Agreement.   Regardless of the number of years completed by the Participant, upon a Change in Control, the Participant shall become 100% vested in all benefits under this Agreement.

SECTION 2

ELIGIBILITY

                    The Participant is eligible for the benefits provided herein in accordance with the terms of this Agreement upon the execution hereof.

                    A Participant shall cease to be a Participant at Termination of Employment.  However, the employment of a Participant shall not be deemed to be terminated by reason of an approved leave of absence granted in accordance with uniform rules applied in a non-discriminatory manner.

SECTION 3

PAYMENT OF BENEFITS

          3.1          Benefits Upon Normal Retirement.

                    Upon a Participant's Termination of Employment on or after the Normal Retirement Date, the Company shall pay to the Participant the sum of $      (ii)       per year, payable in monthly installments of $      (iii)       each, commencing on the first day of the month coincident with or next following the date of Termination of Employment and continuing on the first day of each month

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thereafter for a period of 15 years, but in any event until a minimum of 180 total monthly payments are made to the Participant or the Participant's beneficiary per Section 3.6(b).  At the sole discretion of the board of directors, the initial benefit may be increased in subsequent years to offset the effect of inflation.

          3.2          Benefits Upon Early Retirement.

                    Upon a Participant's Termination of Employment on or after reaching the Early Retirement Date but prior to the Normal Retirement Date, the Company shall pay to the Participant, monthly payments equal to the benefit described in Schedule A, attached.  Such payments shall commence on the first day of the month coincident with or next following the date of Termination of Employment and shall continue on the first day of each month thereafter for a period of fifteen years, but in any event until a minimum of 180 total monthly payments are made to the Participant or the Participant's Beneficiary per Section 3.6(b).

                    The Participant may elect, on or before the earlier of a) December 31 of the year prior to Termination of Employment; or b) 90 days prior to Termination of Employment, to defer commencement of payment of the retirement benefit to a date not later than the Normal Retirement Date.  Such election shall be in writing and submitted to the Company.  If a Participant elects to defer payment of the benefit until his Normal Retirement Date, the Company shall pay to the Participant the normal retirement benefit described in Section 3.1 above.  If a Participant elects to defer payment of the benefit to a date prior to the Normal Retirement Date, the Company shall pay to the Participant a benefit calculated in accordance with the first sentence of this Section 3.2, but using the date selected by the Participant for the commencement of this benefit as his "Termination of Employment" date instead of his actual termination date.

          3.3          Benefits Upon Late Retirement.

                    Upon a Participant's Termination of Employment after the Normal Retirement Date, the Company shall pay to the Participant the normal retirement benefit described in Section 3.1 above, increased by .05 per year or .00416 for each month that the Participant's Termination of Employment is deferred beyond the Normal Retirement Date, in equal monthly installments commencing on the first day of the month coincident with or next following the date of Termination of Employment and continuing on the first day of each month thereafter for the periods specified in Section 3.1.

-5-

          3.4          Benefits Upon Disability.

                    Upon a Participant's Termination of Employment prior to the Normal Retirement Date due to Disability, no separate provision is made for a disability benefit under this Agreement.  However, any such Participant shall be considered, notwithstanding such Termination of Employment, to continue to be a Participant while disabled and for so long as the disability continues prior to reaching the Early Retirement Date, such Participant's beneficiary shall receive the survivor's benefits described in Section 3.6(a).  In the event the Participant lives to the Early Retirement Date, the Participant shall be entitled to receive the early retirement benefit described in Section 3.2.

          3.5          Other Terminations of Employment.

          (a)          Voluntary Termination of Employment Prior to the Early Retirement Date or Discharge for Cause at any Time.  Upon a Participant's voluntary Termination of Employment prior to reaching the Early Retirement Date, for reasons other than death or Disability, or upon the Participant's Discharge for Cause at any time, the Company shall pay the vested benefit to the Participant pursuant to Schedule A attached to this Agreement in the form of an Aimmediate Lump Sum Benefit@, and the Participant shall have no further right to receive any additional benefit hereunder.

          (b)          Involuntary Termination of Employment Prior to the Early Retirement Date Other Than Because of Death, Disability or Discharge for Cause.  Upon a Participant's involuntary Termination of Employment prior to reaching the Early Retirement Date, for reasons other than death, disability or discharge for cause, the Participant shall become 100% vested and the Company shall pay to the Participant as compensation for services rendered prior to such Termination of Employment the "Immediate Lump Sum Benefit" as defined in Schedule A.  For purposes of this subsection 3.5(b), the Participant shall be deemed to have incurred an Involuntary Termination of Employment covered by this subsection if he quits employment as a result of the Company's significantly lessening either his title, duties, responsibilities, compensation or altering his situs of employment, without his consent.  His compensation shall be deemed to be significantly lessened if any cutback is imposed except as a part of an overall cutback applied proportionately to all of the Company's management employees or if the Participant fails to receive periodic increases substantially proportionate to and coincident with the increase granted to management employees.

-6-

          (c)          Termination of Employment At or After A Change in Ownership of Control. If a Participant incurs an involuntary Termination of Employment prior to reaching the Early Retirement Date, for reasons other than death, disability, or discharge for cause, but on or after the occurrence of a Change in Control, or if in connection with such change in control, the Participant's title, duties, responsibilities, or compensation is significantly lessened or his situs of employment is changed, without his consent, the Company shall immediately pay to the Participant an amount equal to the sum of a) 100% of the Participant's gross annual salary for the twelve-month period prior to Termination, and b) the AImmediate Lump Sum Benefit@ on Schedule A.  For purposes hereof, the standards set forth in subparagraph (b) above with respect to what constitutes a significant lessening of compensation shall apply.

          3.6          Survivorship Benefits.

          (a)          Prior to Commencement of Normal or Early Retirement Benefits.  If a Participant dies while in the service of the Company or after a Termination of Employment due to Disability and while Disabled or after a Termination of Employment on or after the Early Retirement Date, but prior to commencement of any benefit payments under this Agreement, the Company shall pay to the Participant's beneficiary a survivor's benefit of 180 equal monthly installments of $______ commencing on the first day of the month after the Participant's death and continuing on the first day of each month thereafter until all such payments are completed.  In the event a beneficiary dies before receiving all the survivor's benefit payments, the remaining payments shall be paid to the legal representatives of the beneficiary's estate.  Payment of the survivor's benefit shall relieve the Company of the obligation to pay any other benefit which the Participant would have otherwise received, under the terms of this Agreement.

          (b)          After Commencement of Benefits.  If a Participant dies after any benefit payments have commenced, but prior to receiving all of the scheduled minimum number of monthly payments, the company shall pay the remaining monthly payment to the Participant's beneficiary.  In the event a beneficiary dies before receiving all of the remaining payments, the remaining payments shall be paid to the legal representatives of the beneficiary's estate.

-7-

          3.7          Recipients of Payments:  Designation of Beneficiary.

                    All payments to be made by the Company shall be made to the Participant, if living.  In the event of a Participant's death prior to the receipt of all benefit payments, all subsequent payments to be made under this Agreement shall be to the beneficiary or beneficiaries of the Participant.  The Participant shall designate a beneficiary by filing a written notice of such designation with the Company in such form as the Company may prescribe.  The Participant may revoke or modify said designation at any time by a further written designation.  The Participant's beneficiary designation shall be deemed automatically revoked in the event of the death of the beneficiary, or if the beneficiary is the Participant's spouse, in the event of dissolution of marriage.  If no designation shall be in effect at the time of any benefits payable under this Agreement shall become due, the beneficiary shall be the spouse of the Participant, or if no spouse is then living, the legal representatives of the Participant's estate.

          3.8          Acceleration of Benefits.

                    At any time after the Participant or the Participant's beneficiary becomes entitled to a payment of benefits under this Agreement, the Participant, or the Participant's beneficiary, may elect to accelerate the payment of benefits to the payment of a lump-sum payment.  Such payment shall equal ninety percent (90%) of the present value of the remaining payments payable assuming a discount rate equal to the Crediting Rate, and in the case of payments that are payable over the life of the Participant or the Participant's beneficiary, assuming the Mortality Assumptions.

SECTION 4

ADDITIONAL CHANGE IN CONTROL PROVISIONS

          4.1          Application of Section.

                    If the Participant receives payments under this Agreement that are contingent upon a Change in Control, as determined under Section 280G of the Internal Revenue Code of 1986 (the "Code") and the regulations thereunder, then the provisions of this Section 4 shall apply.

-8-

          4.2          Limit on Payments.

                    If payments or benefits under this Agreement, after taking into account all other payments or benefits to which the Participant is entitled from the Company, are expected to result in an excise tax on the Participant or the loss of certain tax deductions by the Company by reason of Code Section 280G and 4999, then payments under this Agreement shall be reduced to an amount such that all payments to the Participant from the Company, which are considered contingent upon the Change in Control, shall not exceed 2.99 times the Participant's Base Amount as defined in Code Section 280G.

          4.3          Determination by Experts.

                    If the Participant and the Company shall disagree as to whether a payment under this Agreement could result in the loss of a deduction, the matter shall be resolved by an opinion of [the Company's law firm], or if [Company's law firm] is unable to provide such an opinion, counsel selected by the Company, and agreed to by the Officer.  Counsel's opinion need not be unqualified.  Counsel's opinion shall be based on determinations of the Base Amount and Excess Parachute Payments, as such terms are defined by Section 280G of the Code or its successor, by [Consulting Firm], or if [Consulting Firm] is unable to make such determinations, a consulting firm chosen by the Company and agreed to by the Officer.  The Company shall pay the fees and expenses of such counsel and consulting firm, and shall make available such information as may be reasonably requested by such counsel and consulting firm to prepare the opinion.  If the maximum amount payable to the Officer pursuant to this Section cannot be determined prior to the due date for such payment, the Company shall pay on the due date the minimum amount which it in good faith determines to be payable, and shall pay the remaining amount as soon as practicable after such remaining amount is determined.

          4.4          Participant's Costs of Enforcement.

                    Following a Change in Control, the company shall pay all expenses of the Participant, including but not limited to attorney fees incurred in enforcing payments by the Company pursuant to this Agreement.

-9-

SECTION 5

ADMINISTRATION AND INTERPRETATION OF THIS AGREEMENT

          The Board of Directors shall appoint an Administrative Committee consisting of three (3) or more persons to administer and  interpret this Agreement.  Interpretation by the Administrative Committee shall be final and binding upon a Participant.  The Administrative Committee may adopt rules and regulations relating to this Agreement as it may deem necessary or advisable for the administration thereof.

SECTION 6

CLAIMS PROCEDURE

          If the Participant or the Participant's beneficiary (hereinafter referred to as a "Claimant") is denied all or a portion of an expected benefit under this Plan for any reason, he or she may file a claim with the Administrative Committee.  The Administrative Committee shall notify the Claimant within sixty (60) days of allowance or denial of the claim, unless the Claimant receives written notice from the Administrative Committee prior to the end of the sixty (60) day period stating that special circumstances requires an extension of the time for decision.  The notice of the Administrative Committee's decision shall be in writing, sent by mail to Claimant's last known address, and, if a denial of the claim, must contain the following information:

	 	
(a)
	
the specific reasons for the denial;

	 	 	 
	 	
(b)
	
specific reference to pertinent provisions of the Plan on which the denial is based; and

	 	 	 
	 	
(c)
	
if applicable, a description  of any additional information or material necessary to perfect the claim, an explanation of why such information or material is necessary, and an explanation of the claims review procedure.

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SECTION 7

REVIEW PROCEDURE

          7.1          A Claimant is entitled to request a review of any denial of his claim by the Administrative Committee.  The request for review must be submitted in writing within a sixty (60) day period, the claim will be deemed to be conclusively denied.  The Claimant or his representative shall be entitled to review all pertinent documents, and to submit issues and comments orally and in writing.

          7.2          If the request for review by a Claimant concerns the interpretation and application of the provisions of the Agreement and the Company's obligations, then the review shall be conducted by a separate committee consisting of three persons designated or appointed by the Administrative Committee.  The separate committee shall afford the Claimant a hearing and the opportunity to review all pertinent documents and submit issues and comments orally and in writing and shall render a review decision in writing, all within sixty (60) days after receipt of a request for a review, provided that, in special circumstances (such as the necessity of holding a hearing) the committee may extend the time for decision by not more than sixty (60) days upon written notice to the Claimant.  The Claimant shall receive written notice of the separate committee's review decision, together with specific reasons for the decision and reference to the pertinent provisions of this Agreement.

SECTION 8

LIFE INSURANCE AND FUNDING

          The Company in its discretion may apply for and procure as owner and for its own benefit, insurance on the life of the Participant, in such amounts and in such forms as the Company may choose.  The Participant shall have no interest whatsoever in any such policy or policies, but at the request of the Company he shall submit to medical examinations and supply such information and execute such documents as may be required by the insurance company or companies to whom the Company has applied for insurance.

          The rights of the Participant, or his beneficiary, or estate, to benefits under the Plan shall be solely those of an unsecured creditor of the Company.  Any insurance policy or other assets acquired by or held by the Company in connection with the liabilities assumed by it pursuant to the Plan shall

-11-

not be deemed to be held under any trust for the benefit of the Participant, his beneficiary, or his estate, or to be security for the performance of the obligations of the Company but shall be, in remain, a general, unpledged, and unrestricted asset of the Company.

          If this Agreement is funded through insurance on the life of the Participant, then in the event of such Participant's death during the first two (2) years after the effective date of this Agreement, and if such Participant's death was a result of suicide or if such Participant made any material misstatement or failed to make a material disclosure of information in any documentation which the Participant is requested to complete in connection with this Agreement, then no death benefits under the terms of this Agreement will be payable, unless and to the extent that the Board of Directors of Company, in their absolute discretion, may otherwise determine.

SECTION 9

ASSIGNMENT OF BENEFITS

          Neither the Participant nor any other beneficiary under the Plan shall have any right to assign the right to receive any benefits hereunder, and in the event of any attempted assignment or transfer, the Company shall have no further liability hereunder.

SECTION 10

EMPLOYMENT NOT GUARANTEED BY AGREEMENT

          Neither this Agreement nor any action taken hereunder shall be construed as giving the Participant the right to be retained as an Executive Employee or as an employee of the Company for any period.

SECTION 11

TAXES

          The Company shall deduct from all payments made hereunder all applicable federal or state taxes required by law to be withheld from such payments.  In the event that the Company determines that benefits under the Plan are subject to FICA currently, the Company shall withhold the Participant's portion of FICA from such other amounts payable to the Participant as the Company deems appropriate.

-12-

SECTION 12

AMENDMENT AND TERMINATION

          The Board of Directors may, at any time, amend or terminate this Agreement, provided that the Board may not reduce or modify any benefit in pay status to the Participant or beneficiary hereunder or any benefit that would become payable hereunder if the Participant was involuntarily terminated under Section 3.5(b) hereof on the day prior to such action by the Board, without the prior written consent of the Participant.

SECTION 13

CONSTRUCTION

          This Agreement shall be construed according to the laws of the State of Michigan.

SECTION 14

FORM OF COMMUNICATION

          Any election, application, claim, notice or other communication required or permitted to be made by the Participant to the Company shall be made in writing and in such form as the Company shall prescribe.  Such communication shall be effective upon mailing, if sent by first-class mail, postage prepaid, and addressed to the Company's office at 6 Main Street, Kent City, Michigan 49330.

SECTION 15

CAPTIONS

          The captions at the head of a section or a paragraph of this Agreement are designed for convenience of reference only and are not to be resorted to for the purpose of interpreting any provision of this Agreement.

-13-

SECTION 16

SEVERABILITY

          The invalidity of any portion of this Agreement shall not invalidate the remainder thereof, and said remainder shall continue in full force and effect.

SECTION 17

BINDING EFFECT

          This Agreement shall be binding upon and shall inure to the benefit of the Company and the Participant, and each of their successors, heirs, personal representatives and permitted assigns.  No sale of substantially all of the Company's assets shall be made without the buyer expressly assuming the obligation of this Agreement.  The Company further agrees that it will not be a party to any merger, consolidation or reorganization unless and until its obligations hereunder are expressly assumed by the successor or successors.

          IN WITNESS WHEREOF, this Agreement has been executed by the parties as of the date first set forth above.

	 	
By:
	 

	 	 	 
	 	
Its:
	 

	 	 	 
	 	 	 	 

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BENEFICIARY DESIGNATION NOTICE

VALLEY RIDGE BANK

To the Plan Administrator of ______________________ Executive Salary Continuation Agreement:

Pursuant to the Provisions of my Executive Salary Continuation Agreement with ____________ ______________ permitting the designation of a beneficiary or beneficiaries by the participant, I hereby designate the following persons and entities as primary and secondary beneficiaries of any benefit under said Agreement payable by reason of my death.

	
Primary Beneficiary:
	 	 
	
Name
	
Address
	
Relationship

	 
	 
	 

	 	 	 
	 
	 
	 

	
Secondary (Contingent) Beneficiary:
	 
	
Name
	
Address
	
Relationship

	 
	 
	 

	 	 	 
	 
	 
	 

THE RIGHT TO REVOKE OR CHANGE ANY BENEFICIARY DESIGNATION IS HEREBY RESERVED.  ALL PRIOR DESIGNATIONS, IF ANY, OF BENEFICIARIES AND SECONDARY BENEFICIARIES ARE HEREBY REVOKED.

The Plan Administrator shall pay all sums payable under this Agreement by reason of my death to the Primary Beneficiary, if he or she survives me, and if no Primary Beneficiary shall survive me, then to the Secondary Beneficiary, and if no named beneficiary survives me, then the Plan Administrator shall pay all amounts in accordance with the terms of the Executive Salary Continuation Agreement.  In the event that a named beneficiary survives me and dies prior to receiving the entire benefit payable under said Agreement, then and in that event, the remaining unpaid benefit, payable according to the terms of the Agreement, shall be payable to the personal representatives of the estate of said deceased beneficiary, who survives me, but die prior to receiving the total benefit.

	 	 

	
Date of Designation
	 	
Signature of Executive

-15-ChoiceOne Exhibit 10.9 to Form 10-K - 04-02-07

EXHIBIT 10.9

	
VALLEY RIDGE BANK

AMENDED & RESTATED DIRECTOR DEFERRED COMPENSATION PLAN

VALLEY RIDGE BANK

AMENDED & RESTATED

DIRECTOR DEFERRED COMPENSATION PLAN

         THIS AMENDED & RESTATED DIRECTOR DEFERRED COMPENSATION PLAN (the "Plan") is adopted this 28th day of December, 2006, by Valley Ridge Bank, a state-chartered commercial bank located in Kent City, Michigan (the "Corporation") amending and restating the following agreements:

         Deferred Compensation Agreement dated September 1, 1994 between the Corporation and Jerry Arends;

         Deferred Compensation Agreement dated September 1, 1994 between the Corporation and K. Timothy Bull;

         Deferred Compensation Agreement dated September 1, 1994 between the Corporation and Richard Edgar;

         Deferred Compensation Agreement dated September 23, 1996 between the Corporation and Fred Finkbeiner;

         Deferred Compensation Agreement dated September 1, 1994 between the Corporation and Gary Gust;

         Deferred Compensation Agreement dated December 18, 1996 between the Corporation and Ronald Hansen;

         Deferred Compensation Agreement dated September 1, 1994 between the Corporation and Robert Humphreys;

         Deferred Compensation Agreement dated September 23, 1996 between the Corporation and Ben Landheer;

         Deferred Compensation Agreement dated September 1, 1994 between the Corporation and Michael McHugh;

         Deferred Compensation Agreement dated September 23, 1996 between the Corporation and Dennis Nelson;

         Deferred Compensation Agreement dated September 1, 1994 between the Corporation and John Niederer;

1

	
VALLEY RIDGE BANK

AMENDED & RESTATED DIRECTOR DEFERRED COMPENSATION PLAN

         Deferred Compensation Agreement dated September 1, 1994 between the Corporation and Paul Spoelman;

         Deferred Compensation Agreement dated September 1, 1994 between the Corporation and Donald Swanson; and

         Deferred Compensation Agreement dated September 23, 1996 between the Corporation and Donald Vansingel (collectively, the "Prior Plan").

         The parties intend this Amended and Restated Plan to be a material modification of the Prior Plan such that all amounts earned and vested prior to December 31, 2004 shall be subject to the provisions of Section 409A of the Code and the regulations promulgated thereunder.

         The purpose of this Plan is to provide specified benefits to the Participant who contributes to the continued growth, development and future business success of the Corporation.

Article 1

Definitions

         Whenever used in this Plan, the following words and phrases shall have the meanings specified:

	
1.1
	
"Beneficiary" means each designated person, or the estate of a deceased Participant, entitled to benefits, if any, upon the death of the Participant determined pursuant to Article 6.

	 	 
	
1.2
	
"Beneficiary Designation Form" means the form established from time to time by the Plan Administrator that the Participant completes, signs and returns to the Plan Administrator to designate one or more beneficiaries.

	 	 
	
1.3
	
"Board" means the Board of Directors of the Corporation as from time to time constituted.

	 	 
	
1.4
	
"Code" means the Internal Revenue Code of 1986, as amended.

	 	 
	
1.5
	
"Compensation" means the total gross Fees paid by the Corporation to a Participant and shall not include: salary or other forms of employment compensation, compensation payable in forms other than director fees, salary, retainers, expense allowances, contributions by the Corporation to any plan qualified under Section 401 of the Code, and amounts, if any, expended by the Corporation for health, medical, life or other insurance on behalf of the Participant.

	 	 
	
1.6
	
"Crediting Rate" means the ChoiceOne Bank one-year Certificate of Deposit rate as in effect on January 1 of the Plan Year.

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1.7
	
"Deferral Account" means the Corporation's accounting of the Participant's accumulated Deferrals plus accrued interest.

	 	 
	
1.8
	
"Deferral Election Form" means the form established from time to time by the Plan Administrator that the Participant completes, signs and returns to the Plan Administrator to designate the amount of the Deferrals.

	 	 
	
1.9
	
"Deferrals" means the amount of the Participant's Compensation which the Participant elects to defer according to this Plan.

	 	 
	
1.10
	
"Distribution Election Form" means the form established from time to time by the Plan Administrator that the Participant completes, signs and returns to the Plan Administrator to designate the time and form of distribution.

	 	 
	
1.11
	
"Effective Date" means January 1, 2005.

	 	 
	
1.12
	
"Fees" means the total fees payable to the Participant during a Plan Year.

	 	 
	
1.13
	
"Participation Agreement" means the written agreement signed by the Participant and Corporation once a Participant is selected for participation in the Plan.

	 	 
	
1.14
	
"Plan Administrator" means the plan administrator described in Article 8.

	 	 
	
1.15
	
"Plan Year" means each twelve (12) month period commencing on January 1 and ending on December 31 of each year.

	 	 
	
1.16
	
"Projected Benefit" means the amount that would have accumulated in the Participant's Deferral Account as of February 1, 2007 if it is assumed that the Participant: (1) Continued to defer Fees at the same rate that the Participant had been deferring Fees on the date of the Participant's death until December 31, 2006; and (2) the Deferral Account continued to earn interest at the same rate on the date of the Participant's death.

	 	 
	
1.17
	
"Separation from Service" means the termination of the Participant's service with the Corporation for reasons other than death. Whether a Separation from Service takes place is determined based on the facts and circumstances surrounding the termination of the Participant's service and whether the Corporation and the Participant intended for the Participant to provide significant services for the Corporation following such termination.

	 	 
	
1.18
	
"Specified Employee" means a key employee (as defined in Section 416(i) of the Code without regard to paragraph 5 thereof) of the Corporation if any stock of the Corporation is publicly traded on an established securities market or otherwise.

	 	 
	
1.19
	
"Termination for Cause" means a Separation from Service for:

	 	
(a)
	
Gross negligence or gross neglect of duties to the Corporation; or

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(b)
	
Conviction of a felony or of a gross misdemeanor involving moral turpitude in connection with the Participant's service with the Corporation; or

	 	
(c)
	
Fraud, disloyalty, dishonesty or willful violation of any law or significant Corporation policy committed in connection with the Participant's service and resulting in a material adverse effect on the Corporation.

	
1.20
	
"Unforeseeable Emergency" means a severe financial hardship to the Participant resulting from an illness or accident of the Participant, the Participant's spouse, or the Participant's dependent (as defined in Section 152(a) of the Code), loss of the Participant's property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.

	 	 
	
1.21
	
"Vesting" the Participant shall be one-hundred percent (100%) vested unless otherwise stated in the Participation Agreement.

Article 2

Deferral Election

	
2.1
	
Elections Generally. The Participant may annually file a Deferral Election Form with the Plan Administrator no later than the end of the Plan Year preceding the Plan Year in which services leading to such Fees will be performed.

	 	 
	
2.2
	
Initial Election.  After being notified by the Plan Administrator of becoming eligible for participation in the Plan, the Participant may make an initial deferral election under this Plan by delivering to the Plan Administrator a signed Deferral Election Form and Beneficiary Designation Form within thirty (30) days of becoming eligible.  The Deferral Election Forms shall set forth the amount of Fees to be deferred.  However, if the Participant was eligible to participate in any other account balance plans sponsored by the Corporation (as referenced in Section 409A of the Code or the regulations thereunder) prior to becoming eligible to participate in this Plan, the initial election to defer Fees under this Plan shall not be effective until the Plan Year following the Plan Year in which the Participant became eligible to participate in this Plan.

	 	 
	
2.3
	
Eligibility. A director shall be eligible for the Plan at the beginning of the Plan Year after completing one (1) year of service on the Board. One year of service shall be the one (1) year anniversary after being elected to the Board.

Article 3

Deferral Account

	
3.1
	
Establishing and Crediting.  The Corporation shall establish a Deferral Account on its books for the Participant and shall credit to the Deferral Account the following amounts:

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(a)
	
Any vested amount deemed credited to the Participant's account under the Prior Plan;

	 	
(b)
	
Any Deferrals hereunder;

	 	
(c)
	
Interest as follows:

	 	 	
(i)
	
On the last day of each month and immediately prior to the distribution of any benefits, but only until commencement of benefit distributions under this Agreement, interest shall be credited on the Deferral Account at an annual rate equal to the Crediting Rate, compounded monthly; and

	 	 	
(ii)
	
On the last day of each month during any applicable installment period, interest shall be credited on the unpaid Deferral Account balance at an annual rate equal to the Crediting Rate, compounded monthly. Prior to the commencement of any distributions hereunder, the Board, in its sole discretion, may change the rate used to calculate interest in this Section 3.1(b)(ii).

	
3.2
	
Accounting Device Only. The Deferral Account is solely a device for measuring amounts to be paid under this Plan.  The Deferral Account is not a trust fund of any kind.  The Participant is a general unsecured creditor of the Corporation for the distribution of benefits. The benefits represent the mere Corporation promise to distribute such benefits. The Participant's rights are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by the Participant's creditors.

Article 4

Distributions During Lifetime

	
4.1
	
Normal Benefit. Within thirty (30) days following February 1, 2007, the Corporation shall distribute to the Participant the benefit described in this Section 4.1 in lieu of any other benefit under this Article.

	 	 	 
	 	
4.1.1
	
Amount of Benefit.  The benefit under this Section 4.1 is the Deferral Account balance on February 1, 2007.

	 	 	 
	 	
4.1.2
	
Distribution of Benefit.  The Corporation shall distribute the benefit to the Participant as elected by the Participant on the Distribution Election Form, commencing within thirty (30) days following February 1, 2007. Interest shall be credited in accordance with Section 3.1.

	
4.2
	
This section has been deleted.

	 	 
	
4.3
	
Hardship Distribution.  If an Unforeseeable Emergency occurs, the Participant may petition the Board to receive a distribution from the Agreement.  The Board in its sole discretion may grant such petition.  If granted, the Participant shall receive, within sixty (60) days, a distribution from the Agreement (i) only to the extent deemed necessary by the Board to remedy the Unforeseeable Emergency, plus an amount necessary to pay

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taxes reasonably anticipated as a result of the distribution; and (ii) after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant's assets (to the extent the liquidation would not itself cause severe financial hardship). In any event, the maximum amount which may be paid out pursuant to this Section 4.3 is the Deferral Account balance as of the day that the Participant petitioned the Board to receive a Hardship Distribution under this Section.

	 	 
	
4.4
	
Restriction on Timing of Distribution. Notwithstanding any provision of this Plan to the contrary, if the Participant is considered a Specified Employee at Separation from Service under such procedures as established by the Corporation in accordance with Section 409A of the Code, benefit distributions that are made upon Separation from Service may not commence earlier than six (6) months after the date of such Separation from Service. Therefore, in the event this Section 4.4 is applicable to the Participant, any distribution which would otherwise be paid to the Participant within the first six months following the Separation from Service shall be accumulated and paid to the Participant in a lump sum on the first day of the seventh month following the Separation from Service. All subsequent distributions shall be paid in the manner specified.

	 	 
	
4.5
	
Distributions Upon Income Inclusion Under Section 409A of the Code.  Upon the inclusion of any portion of the Deferral Account balance into the Participant's income as a result of the failure of this non-qualified deferred compensation plan to comply with the requirements of Section 409A of the Code, to the extent such tax liability can be covered by the Deferral Account balance, a distribution shall be made as soon as is administratively practicable following the discovery of the plan failure.

	 	 
	
4.6
	
Change in Form or Timing of Distributions. For distribution of benefits under this Article 4, the Participant may elect to delay the timing or change the form of distributions by submitting the appropriate Distribution Election Form(s) to the Plan Administrator, provided however that no such election shall be permitted once distributions have commenced pursuant to this Article 4. Any such elections:

	 	 
	 	 	
(a)
	
may not accelerate the time or schedule of any distribution, except as provided in Section 409A of the Code and the regulations thereunder;

	 	 	
(b)
	
must, for benefits distributable under Section 4.1, delay the commencement of distributions for a minimum of five (5) years from the date the first distribution was originally scheduled to be made; and

	 	 	
(c)
	
must take effect not less than twelve (12) months after the election is made.

Article 5

Distributions at Death

	
5.1
	
Death During Active Service.  If the Participant dies while in active service to the Corporation, the Corporation shall distribute to the Beneficiary the benefit described in this Section 5.1. This benefit shall be distributed in lieu of the benefits under Article 4.

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5.1.1
	
Amount of Benefit.  The benefit under this Section 5.1 shall be the Participant's Projected Benefit.

	 	 	 
	 	
5.1.2
	
Distribution of Benefit.  The Corporation shall distribute the benefit to the Beneficiary, as elected by the Participant on the Distribution Election Form commencing within thirty (30) days following receipt by the Corporation of the Participant's death certificate, but not earlier than January 1, 2007. Interest shall be credited in accordance with Section 3.1.

	 	 
	
5.2
	
Death During Distribution of a Benefit.  If the Participant dies after any benefit distributions have commenced under this Plan but before receiving all such distributions, the Corporation shall distribute to the Beneficiary the remaining benefits at the same time and in the same amounts that would have been distributed to the Participant had the Participant survived.

	 	 
	
5.3
	
Death After Entitlement to Benefit But Before Benefit Distributions Commence.  If the Participant is entitled to benefit distributions under this Plan, but dies prior to the commencement of said benefit distributions, the Corporation shall distribute to the Beneficiary the same benefits that the Participant was entitled to prior to death except that the benefit distributions shall commence within thirty (30) days following receipt by the Corporation of the Participant's death certificate.

Article 6

Beneficiaries

	
6.1
	
Beneficiary. The Participant shall have the right, at any time, to designate a Beneficiary to receive any benefits distributable under the Plan to a Beneficiary upon the death of the Participant.  The Beneficiary designated under this Plan may be the same as or different from the beneficiary designated under any other plan of the Corporation in which the Participant participates.

	 	 
	
6.2
	
Beneficiary Designation: Change.  The Participant shall designate a Beneficiary by completing and signing the Beneficiary Designation Form, and delivering it to the Plan Administrator or its designated agent.  The Participant's beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Participant or if the Participant names a spouse as Beneficiary and the marriage is subsequently dissolved. The Participant shall have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation Form and the Plan Administrator's rules and procedures, as in effect from time to time. Upon the acceptance by the Plan Administrator of a new Beneficiary Designation Form, all Beneficiary designations previously filed shall be cancelled. The Plan Administrator shall be entitled to rely on the last Beneficiary Designation Form filed by the Participant and accepted by the Plan Administrator prior to the Participant's death.

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6.3
	
Acknowledgment.  No designation or change in designation of a Beneficiary shall be effective until received, accepted and acknowledged in writing by the Plan Administrator or its designated agent.

	 	 
	
6.4
	
No Beneficiary Designation.  If the Participant dies without a valid Beneficiary designation, or if all designated Beneficiaries predecease the Participant, then the Participant's spouse shall be the designated Beneficiary.  If the Participant has no surviving spouse, the benefits shall be paid to the personal representative of the Participant's estate.

	 	 
	
6.5
	
Facility of Distribution. If the Plan Administrator determines in its discretion that a benefit is to be paid to a minor, to a person declared incompetent, or to a person incapable of handling the disposition of that person's property, the Plan Administrator may direct distribution of such benefit to the guardian, legal representative or person having the care or custody of such minor, incompetent person or incapable person.   The Plan Administrator may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the benefit. Any distribution of a benefit shall be a distribution for the account of the Participant and the Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Plan for such distribution amount.

Article 7

General Limitations

	
7.1
	
Termination for Cause.  Notwithstanding any provision of this Plan to the contrary, the Corporation shall not distribute any benefit under this Plan in excess of the Deferrals (i.e., Deferral Account minus interest credited thereon) if the Participant's service with the Corporation is terminated due to a Termination for Cause.

	 	 
	
7.2
	
Suicide or Misstatement. Notwithstanding any provision of this Plan to the contrary, the Corporation shall not distribute any benefit under this Plan in excess of the Deferrals if the Participant commits suicide within two (2) years after the Effective Date of this Plan, or if an insurance company which issued a life insurance policy covering the Participant and owned by the Corporation denies coverage (i) for material misstatements of fact made by the Participant on an application for such life insurance, or (ii) for any other reason.

	 	 
	
7.3
	
Removal.  Notwithstanding any provision of this Plan to the contrary, the Corporation shall not distribute any benefit under this Plan in excess of the Deferrals (i.e., Deferral Account minus interest credited on both) if the Participant is subject to a final removal or prohibition order issued by an appropriate federal banking agency pursuant to Section 8(e) of the Federal Deposit Insurance Act.

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Article 8

Administration of Agreement

	
8.1
	
Plan Administrator Duties. This Plan shall be administered by a Plan Administrator which shall consist of the Board, or such committee or person(s) as the Board shall appoint. The Plan Administrator shall administer this Plan according to its express terms and shall also have the discretion and authority to (i) make, amend, interpret and enforce all appropriate rules and regulations for the administration of this Plan and (ii) decide or resolve any and all questions including interpretations of this Plan, as may arise in connection with the Plan to the extent the exercise of such discretion and authority does not conflict with Section 409A of the Code and regulations thereunder.

	 	 
	
8.2
	
Agents. In the administration of this Plan, the Plan Administrator may employ agents and delegate to them such administrative duties as it sees fit, (including acting through a duly appointed representative), and may from time to time consult with counsel who may be counsel to the Corporation.

	 	 
	
8.3
	
Binding Effect of Decisions. The decision or action of the Plan Administrator with respect to any question arising out of or in connection with the administration, interpretation and application of the Plan and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in the Plan.

	 	 
	
8.4
	
Indemnity of Plan Administrator. The Corporation shall indemnify and hold harmless the members of the Plan Administrator against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to this Plan, except in the case of willful misconduct by the Plan Administrator or any of its members.

	 	 
	
8.5
	
Corporation Information. To enable the Plan Administrator to perform its functions, the Corporation shall supply full and timely information to the Plan Administrator on all matters relating to the Compensation of its Participants, the date and circumstances of the death or Separation from Service of its Participants, and such other pertinent information as the Plan Administrator may reasonably require.

	 	 
	
8.6
	
Statement of Accounts.  The Plan Administrator shall provide to the Participant, within one hundred twenty (120) days after the end of each Plan Year, a statement setting forth the Deferral Account balance.

Article 9

Claims and Review Procedures

	
9.1
	
Claims Procedure.  The Participant or Beneficiary ("Claimant") who has not received benefits under the Plan that he or she believes should be paid shall make a claim for such benefits as follows:

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9.1.1
	
Initiation - Written Claim.  The Claimant initiates a claim by submitting to the Corporation a written claim for the benefits. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within sixty (60) days after such notice was received by the Claimant.  All other claims must be made within one hundred eighty (180) days of the date on which the event that caused the claim to arise occurred.   The claim must state with particularity the determination desired by the Claimant.

	 	 	 
	 	
9.1.2
	
Timing of Corporation Response. The Corporation shall respond to such Claimant within ninety (90) days after receiving the claim.  If the Corporation determines that special circumstances require additional time for processing the claim, the Corporation can extend the response period by an additional ninety (90) days by notifying the Claimant in writing, prior to the end of the initial ninety (90) day period, that an additional period is required.  The notice of extension must set forth the special circumstances and the date by which the Corporation expects to render its decision.

	 	 	 
	 	
9.1.3
	
Notice of Decision.  If the Corporation denies part or all of the claim, the Corporation shall notify the Claimant in writing of such denial.  The Corporation shall write the notification in a manner calculated to be understood by the Claimant. The notification shall set forth:

	 	 	
(a)
	
The specific reasons for the denial,

	 	 	
(b)
	
A reference to the specific provisions of the Plan on which the denial is based,

	 	 	
(c)
	
A description of any additional information or material necessary for the Claimant to perfect the claim and an explanation of why it is needed, and

	 	 	
(d)
	
An explanation of the Plan's review procedures and the time limits applicable to such procedures.

	
9.2
	
Review Procedure.  If the Corporation denies part or all of the claim, the Claimant shall have the opportunity for a full and fair review by the Corporation of the denial, as follows:

	 	 
	 	
9.2.1
	
Initiation - Written Request. To initiate the review, the Claimant, within sixty (60) days after receiving the Corporation's notice of denial, must file with the Corporation a written request for review.

	 	 	 
	 	
9.2.2
	
Additional Submissions - Information Access.  The Claimant shall then have the opportunity  to  submit  written  comments,  documents,  records  and  other information relating to the claim. The Corporation shall also provide the Claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the Claimant's claim for benefits.

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9.2.3
	
Considerations on Review. In considering the review, the Corporation shall take into account all materials and information the Claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.

	 	 	 
	 	
9.2.4
	
Timing of Corporation Response.  The Corporation shall respond in writing to such Claimant within sixty (60) days after receiving the request for review. If the Corporation determines that special circumstances require additional time for processing the claim, the Corporation can extend the response period by an additional sixty (60) days by notifying the Claimant in writing, prior to the end of the initial sixty (60) day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Corporation expects to render its decision.

	 	 	 
	 	
9.2.5
	
Notice of Decision.  The Corporation shall notify the Claimant in writing of its decision on review.  The Corporation shall write the notification in a manner calculated to be understood by the Claimant. The notification shall set forth:

	 	 	
(a)
	
The specific reasons for the denial,

	 	 	
(b)
	
A reference to the specific provisions of the Plan on which the denial is based, and

	 	 	
(c)
	
A statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the Claimant's claim for benefits.

Article 10

Amendments and Termination

	
10.1
	
Amendments. The Corporation may amend this Agreement unilaterally by written action.

	 	 
	
10.2
	
Plan Termination Generally. The Corporation may unilaterally terminate this Plan at any time.  Except as provided in Section 10.3, the termination of this Plan shall not cause a distribution of benefits under this Plan. Rather, upon such termination benefit distributions will be made at the earliest distribution event permitted under Article 4 or Article 5.

	 	 
	
10.3
	
Plan Terminations Under Section 409A.  Notwithstanding anything to the contrary in Section 10.2, if the Corporation terminates this Plan in the following circumstances:

	 	 
	 	
(a)
	
Within thirty (30) days before, or twelve (12) months after a change in the ownership or effective control of the Corporation, or in the ownership of a substantial portion of the assets of the Corporation as described in Section 409A(2)(A)(v) of the Code, provided that all distributions are made no later than twelve (12) months following such termination of the Plan and further provided that all the Corporation's arrangements which are substantially similar to the Plan are terminated so the Participant and all participants in the similar arrangements

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are required to receive all amounts of compensation deferred under the terminated arrangements within twelve (12) months of the termination of the arrangements;

	 	
(b)
	
Upon the Corporation's dissolution or with the approval of a Bankruptcy court provided that the amounts deferred under the Plan are included in the Participant's gross income in the latest of (i) the calendar year in which the Plan terminates; (ii) the calendar year in which the amount is no longer subject to a substantial risk of forfeiture; or (iii) the first calendar year in which the distribution is administratively practical; or

	 	
(c)
	
Upon the Corporation's termination of this and all other account balance plans (as referenced in Section 409A of the Code or the regulations thereunder), provided that all distributions are made no earlier than twelve (12) months and no later than twenty-four (24) months following such termination, and the Corporation does not adopt any new account balance plans for a minimum of five (5) years following the date of such termination;

	 	 
	 	
the Corporation may distribute the Deferral Account balance, determined as of the date of the termination of the Plan, to the Participant in a lump sum subject to the above terms.

Article 11

Miscellaneous

	
11.1
	
Binding Effect.  This Plan shall bind the Participant and the Corporation and their beneficiaries, survivors, executors, administrators and transferees.

	 	 
	
11.2
	
No Guarantee of Service.  This Plan is not a contract for service.  It does not give the Participant the right to remain as a director of the Corporation, nor does it interfere with the Corporation's right to discharge the Participant.  It also does not require the Participant to remain a director nor interfere with the Participant's right to terminate service at any time.

	 	 
	
11.3
	
Non-Transferability.  Benefits under this Plan cannot be sold, transferred, assigned, pledged, attached or encumbered in any manner.

	 	 
	
11.4
	
Tax Withholding and Reporting.  The Corporation shall withhold any taxes that are required to be withheld, including but not limited to taxes owed under Section 409A of the Code and regulations thereunder, from the benefits provided under this Plan. Participant acknowledges that the Corporation's sole liability regarding taxes is to forward any amounts withheld to the appropriate taxing authority(ies).  Further, the Corporation shall satisfy all applicable reporting requirements, including those under Section 409A of the Code and regulations thereunder.

	 	 
	
11.5
	
Applicable Law.  The Plan and all rights hereunder shall be governed by the laws of the State of Michigan, except to the extent preempted by the laws of the United States of America.

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11.6
	
Unfunded Arrangement.  The Participant and the Beneficiary are general unsecured creditors of the Corporation for the distribution of benefits under this Plan. The benefits represent the mere promise by the Corporation to distribute such benefits.  The rights to benefits are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors.  Any insurance on the Participant's life or other informal funding asset is a general asset of the Corporation to which the Participant and the Beneficiary have no preferred or secured claim.

	 	 
	
11.7
	
Reorganization.  The Corporation shall not merge or consolidate into or with another Corporation, or reorganize, or sell substantially all of its assets to another Corporation, firm, or person unless such succeeding or continuing Corporation, firm, or person agrees to assume and discharge the obligations of the Corporation under this Plan.  Upon the occurrence of such event, the term "Corporation" as used in this Plan shall be deemed to refer to the successor or survivor Corporation.

	 	 
	
11.8
	
Entire Agreement.  This Plan constitutes the entire agreement between the Corporation and the Participant as to the subject matter hereof.  No rights are granted to the Participant by virtue of this Plan other than those specifically set forth herein.

	 	 
	
11.9
	
Interpretation.  Wherever the fulfillment of the intent and purpose of this Plan requires, and the context will permit, the use of the masculine gender includes the feminine and use of the singular includes the plural.

	 	 
	
11.10
	
Alternative Action. In the event it shall become impossible for the Corporation or the Plan Administrator to perform any act required by this Plan, the Corporation or Plan Administrator may in its discretion perform such alternative act as most nearly carries out the intent and purpose of this Plan and is in the best interests of the Corporation, provided that such alternative acts do not violate Section 409A of the Code.

	 	 
	
11.11
	
Headings.  Article and section headings are for convenient reference only and shall not control or affect the meaning or construction of any of its provisions.

	 	 
	
11.12
	
Validity. In case any provision of this Plan shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this Plan shall be construed and enforced as if such illegal and invalid provision has never been inserted herein.

	 	 
	
11.13
	
Notice. Any notice or filing required or permitted to be given to the Plan Administrator under this Plan shall be sufficient if in writing and hand-delivered, or sent by registered or certified mail, to the address below:

	 	
Valley Ridge Bank

	 
	 	
PO Box 248

	 
	 	
Kent City, MI 49330-0248

	 

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Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark or the receipt for registration or certification.

Any notice or filing required or permitted to be given to the Participant under this Plan shall be sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the Participant.

	 	 
	
11.14
	
Compliance with Section 409A.  This Plan shall at all times be administered and the provisions of this Plan shall be interpreted consistent with the requirements of Section 409A of the Code and any and all regulations thereunder, including such regulations as may be promulgated after the Effective Date of this Plan.

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          IN WITNESS WHEREOF, the Corporation has signed this Plan as of the   28th   day of    December   , 2006.

Corporation:

VALLEY RIDGE BANK

	
By:
	
/s/ Mike McHugh

	 
	 	 	 
	
Title:
	
Senior VP/EVP

	 

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VALLEY RIDGE BANK

Director Deferred Compensation Plan

ELECTION FORM - Form and Timing of Distributions

ELECTION FORM

Form and Timing of Distributions

	
Benefit
	
Distribution of Benefit

	 	

Lump Sum

(Initial below)
	
Equal Monthly

Installments for 36

months.

(Initial below)
	
Equal Monthly

Installments for 60

months.

(Initial below)

	
§ 4.1 - Normal Benefit
	 	 	 
	
Article 5 - Death Benefit
	 	 	 

The Participant understands and agrees that:

	
1.
	
No Deferrals may be made after the 2006 Plan Year.

	 	 
	
2.
	
Prior to distribution and during any applicable installment period, interest on the Participant's Deferral Account will be credited for a Plan Year at an annual rate equal to the ChoiceOne Bank 1 year Certificate of Deposit rate as in effect on January 1 of the Plan Year.

	 	 
	
3.
	
This election is made pursuant to the transition rules under Section 409A of the Code that permit a new payment election to be made with respect to both the time and form of payment under the Plan, and that under the transition rules this election:

	 	
•
	
applies only to amounts that would not be payable in 2006; and

	 	
•
	
may not cause an amount to be paid in 2006 that would not otherwise be payable in 2006.

	
4.
	
Although some or all of the amounts payable under this Plan may have been grandfathered under Section 409A of the Internal Revenue Code and therefore may not have been subject to Section 409A, the Plan and all amounts payable under the Plan are being treated as not grandfathered. As a result, the Plan and all amounts payable under the Plan are subject to and must comply with Section 409A and its regulations to avoid possible adverse tax consequences to the Participant.

	
Printed Name:
	 
	 
	 	 	 
	
Signature:
	 
	 
	 	 	 
	
Date:
	
December ___, 2006
	 

Received by the Plan Administrator this _____ day of December, 2006

	
By:
	 
	 
	 	 	 
	
Title:
	 
	 

	
VALLEY RIDGE BANK

AMENDED & RESTATED DIRECTOR DEFERRED COMPENSATION PLAN

BENEFICIARY DESIGNATION FORM

	
{  }
	
New Designation

	
{  }
	
Change in Designation

I, _________________________, designate the following as Beneficiary under the Agreement:

	
Primary:
	 	 
	 
	 	 
	
%

	 	 	 	 
	 
	 	 
	
%

	 	 	 	 
	 
	 	 
	
%

	 	 	 	 
	
Contingent:
	 	 	 
	 
	 	 
	
%

	 	 	 	 
	 
	 	 
	
%

	 	 	 	 
	 
	 	 
	
%

	
Notes:
	 	 
	 	
•
	
Please PRINT CLEARLY or TYPE the names of the beneficiaries.

	 	
•
	
To name a trust as beneficiary, please provide the name of the trustee(s) and the exact name and date of the trust agreement.

	 	
•
	
To name your estate as beneficiary, please write "Estate of     [your name]    ".

	 	
•
	
Be aware that none of the contingent beneficiaries will receive anything unless ALL of the primary beneficiaries predecease you.

I understand that I may change these beneficiary designations by delivering a new written designation to the Plan Administrator, which shall be effective only upon receipt and acknowledgment by the Plan Administrator prior to my death. I further understand that the designations will be automatically revoked if the beneficiary predeceases me, or, if I have named my spouse as beneficiary and our marriage is subsequently dissolved.

	
Name:
	 
	 
	 	 	 
	
Signature:
	 
	 	
Date:
	 
	 

Received by the Plan Administrator this _____ day of ________________, 2____

	
By:
	 
	 
	 	 	 
	
Title:
	 
	 

Exhibit 10.9

          The following persons have Deferred Compensation Agreements with ChoiceOne Bank in the form filed herewith with the information set forth below inserted in the blanks identified.

	
Dennis Nelson
	
(i)
	
September 23, 1996

	 	
(ii)
	
The Grant State Bank

	 	
(iii)
	
7/22/48

	 	
(iv)
	
April 1985

	 	
(v)
	
$31,952.00

	 	
(vi)
	
7.5%

	 	 	 
	
Jerome B. Arends
	
(i)
	
September 1, 1994

	 	
(ii)
	
Kent City State Bank

	 	
(iii)
	
12/16/44

	 	
(iv)
	
February 18, 1987

	 	
(v)
	
$31,083.00

	 	
(vi)
	
8.0%

	 	 	 
	
Kenneth T. Bull
	
(i)
	
September 1, 1994

	 	
(ii)
	
Kent City State Bank

	 	
(iii)
	
1/28/48

	 	
(iv)
	
1st - February 18, 1987; 2nd - April 23, 1993

	 	
(v)
	
$44,145.00

	 	
(vi)
	
8.0%

	 	 	 
	
Richard L. Edgar
	
(i)
	
September 1, 1994

	 	
(ii)
	
Kent City State Bank

	 	
(iii)
	
5/19/44

	 	
(iv)
	
January 15, 1974

	 	
(v)
	
$31,083.00

	 	
(vi)
	
8.0%

	 	 	 
	
Gary D. Gust
	
(i)
	
September 1, 1994

	 	
(ii)
	
Kent City State Bank

	 	
(iii)
	
11/11/44

	 	
(iv)
	
April 16, 1991

	 	
(v)
	
$31,083.00

	 	
(vi)
	
8.0%

	 	 	 
	
Robert C. Humphreys
	
(i)
	
September 1, 1994

	 	
(ii)
	
Kent City State Bank

	 	
(iii)
	
6/20/38

	 	
(iv)
	
February 17, 1988

	 	
(v)
	
$23,038.00

	 	
(vi)
	
8.0%

	
Michael E. McHugh
	
(i)
	
September 1, 1994

	 	
(ii)
	
Kent City State Bank

	 	
(iii)
	
6/13/49

	 	
(iv)
	
March 1989

	 	
(v)
	
$52,207.00

	 	
(vi)
	
8.0%

	 	 	 
	
Ronald Hansen
	
(i)
	
December 18, 1996

	 	
(ii)
	
The Grant State Bank

	 	
(iii)
	
1/12/45

	 	
(iv)
	
June 1982

	 	
(v)
	
$16,449

	 	
(vi)
	
7.5%

	 	 	 
	
Donald Vansingel
	
(i)
	
September 23, 1996

	 	
(ii)
	
The Grant State Bank

	 	
(iii)
	
8/24/43

	 	
(iv)
	
December 1973

	 	
(v)
	
$18,100.00

	 	
(vi)
	
7.5%

EXHIBIT A

DEFERRED COMPENSATION AGREEMENT

                    THIS AGREEMENT, made and entered into on this    (i)    day of             (i)               , by and between                  (ii)                    (the "Corporation") and                                   (the "Participant").

                    WITNESSETH;

                    WHEREAS, the Corporation has adopted the Deferred Compensation Plan for The Grant State Bank (the "Plan"); and

                    WHEREAS, the Participant has been determined to be eligible to participate in the Plan; and

                    WHEREAS, the Plan requires that an agreement be entered into between the Corporation and the Participant setting forth certain terms of the Plan as they apply to the Participant;

                    NOW, THEREFORE, the Corporation and the Participant agree as follows:

                    1.  Participant. The Participant is hereby designated as a participant in the Plan.

                    2.  Incorporation of Plan.  The Plan, a copy of which is attached, is hereby incorporated into and made a part of this Agreement as though set forth in full herein. The parties shall be bound by, and have the benefit of, each and every provision of the Plan including but not limited to the non-transferability provisions of paragraph 15 of the Plan. The Participant hereby acknowledges receipt of a copy of the Plan, and that he/she has read the same.

                    3.  Information Regarding the Participant. The Participant was born on         (iii)         , and his/her present status as a director of the Corporation began in          (iv)           .

                    4.  Election to Defer. The Participant will irrevocably elect to defer, by the filing of a Deferral Election Form with the Administrative Committee of the Corporation.

                    5.  Projected Benefit. For purposes of paragraph 9 of the Plan, the amount of the Projected Benefit at the commencement of the Plan with respect to the Participant is         (v)            annually. The Projected Benefit may change based on changes in the interest crediting rate for the Plan pursuant to paragraph 6 and on amounts deferred by the Participant.

                    6.  Deferral Crediting Rate.  The initial interest credited on all balances in the participant's deferral account for the first Plan year shall be the rate of         (vi)         %, subject to and in accordance with the terms of the Plan.

                    7.  Certification by Participant. The Participant certifies that his/her decision to defer Compensation is not due to any reliance upon financial or tax advice given by the Corporation, and that the Corporation has not represented or warranted the tax effect of any Compensation deferred pursuant to the Plan.  The Participant further certifies that he/she is aware that no ruling or determination has been obtained from the Internal Revenue Service that the Plan will effect the deferral of income for income tax purposes. The Participant further certifies that he/she understands that all Compensation deferred by the undersigned pursuant to the Plan will remain the property of the Corporation until paid out in accordance with the terms of the Plan, and that all such amounts are subject to the claims of the Corporation's creditors.

                    8.  Definitions. All capitalized terms utilized but not defined herein shall be defined as set forth in the Plan.

                    9.  Entire Agreement. This Agreement, together with the Plan, constitutes the entire Agreement between the parties as to the subject matter hereof.  No rights are granted to the Participant by virtue of this Agreement other than those specifically set forth herein or in the Plan.

                    10.  Binding Effect. This Agreement shall be binding upon the parties, the successors and assigns of the Corporation, and subject to the limitations of the Plan, the heirs and beneficiaries of the Participant.

                    11.  Governing Law. This Agreement shall be construed and interpreted in accordance with the laws of the State of Michigan and its enforcement is subject to federal laws and regulations applicable to the Corporation or its successors.

                    IN WITNESS WHEREOF, the parties hereto have entered into the Agreement as of the date first above written.

	 	
By
	 
	 
	 	 	 	 
	 	
Its
	 
	 
	 	 	 	 
	 	 
	 
	 	
Participant

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]