Document:

<PAGE>
                                                                    EXHIBIT 10.3

                     EXECUTIVE SALARY CONTINUATION AGREEMENT

         THIS AGREEMENT, made and entered into this 10 day of June, 2002, by
and between First National Bank of Gaylord, a bank organized and existing under
the laws of the State of Michigan (hereinafter referred to as the "Bank"), and
William A. Kirsten an Executive of the Bank (hereinafter referred to as the
"Executive").

                                   WITNESSETH:

         WHEREAS, the Executive has been and continues to be a valued Executive
of the Bank, and is now serving the Bank; and

         WHEREAS, it is the consensus of the Board of Directors (hereinafter
referred to as the "Board") that the Executive's services to the Bank in the
past have been of exceptional merit and have constituted an invaluable
contribution to the general welfare of the Bank in bringing the Bank to its
present status of operating efficiency and present position in its field of
activity;

         WHEREAS, the Executive's experience, knowledge of the affairs of the
Bank, reputation, and contacts in the industry are so valuable that assurance of
the Executive's continued services is essential for the future growth and
profits of the Bank and it is in the best interests of the Bank to arrange terms
of continued employment for the Executive so as to reasonably assure the
Executive's remaining in the Bank's employment during the Executive's lifetime
or until the age of retirement;

         WHEREAS, it is the desire of the Bank that the Executive's services be
retained as herein provided;

         WHEREAS, the Executive is willing to continue in the employ of the Bank
provided the Bank agrees to pay the Executive or the Executive's
beneficiary(ies), certain benefits in accordance with the terms and conditions
hereinafter set forth;

         ACCORDINGLY, it is the desire of the Bank and the Executive to enter
into this Agreement under which the Bank will agree to make certain payments to
the Executive at retirement or the Executive's beneficiary(ies) in the event of
the Executive's death pursuant to this Agreement;

         FURTHERMORE, it is the intent of the parties hereto that this Executive
Plan be considered an unfunded arrangement maintained primarily to provide
supplemental retirement benefits for the Executive, and be considered a
non-qualified benefit plan for purposes of the Employee Retirement Security Act
of 1974, as amended ("ERISA"). The Executive is fully advised of the Bank's
financial status and has had substantial input in the design and operation of
this benefit plan; and

<PAGE>

         NOW, THEREFORE, in consideration of services performed in the past and
to be performed in the future as well as of the mutual promises and covenants
herein contained it is agreed as follows:

I.       EMPLOYMENT

         The Bank agrees to employ the Executive in such capacity as the Bank
         may from time to time determine. The Executive will continue in the
         employ of the Bank in such capacity and with such duties and
         responsibilities as may be assigned to him, and with such compensation
         as may be determined from time to time by the Board of Directors of the
         Bank.

II.      FRINGE BENEFITS

         The Salary continuation benefits provided by this Agreement are granted
         by the Bank as a fringe benefit to the Executive and are not part of
         any Salary reduction plan or an arrangement deferring a bonus or a
         Salary increase. The Executive has no option to take any current
         payment or bonus in lieu of these Salary continuation benefits except
         as set forth hereinafter.

III.     RETIREMENT DATE AND NORMAL RETIREMENT AGE

         A.       Retirement Date:

                  If the Executive remains in the continuous employ of the Bank,
                  the Executive shall retire from active employment with the
                  Bank on the December 31st nearest the Executive's sixty-five
                  (65) birthday, unless by action of the Board of Directors this
                  period of active employment shall be shortened or extended.

         B.       Normal Retirement Age:

                  Normal Retirement Age shall mean the date on which the
                  Executive attains age sixty-five (65).

IV.      RETIREMENT BENEFIT AND POST-RETIREMENT DEATH BENEFIT

         Upon said retirement, the Bank, commencing with the first day of the
         month following the date of such retirement, shall pay the Executive an
         annual benefit equal to Fifty One Thousand One Hundred Twenty One and
         00/100ths Dollars ($51,121.00). Said benefit shall be paid in equal
         monthly installments (1/12 of the annual benefit) for a period of one
         hundred eighty (180) months. If, however, less than one-hundred eighty
         (180) such monthly payments have been made prior to the death of the
         Executive, then the Bank shall either, at the discretion of the Bank,
         continue such monthly payments to the individual or individuals the

                                        2

<PAGE>

         Executive may have designated in writing and filed with the Bank until
         the full number of one-hundred eighty (180) monthly payments have been
         made, or make the total amount of said payment due in a lump sum
         reduced to present value as set forth in Subparagraph XI (K) to said
         beneficiary(ies). In the absence of any effective beneficiary
         designation, any such amounts becoming due and payable upon the death
         of the Executive shall be payable to the duly qualified executor or
         administrator of the Executive's estate. Said payments due hereunder
         shall begin the first day of the second month following the decease of
         the Executive.

V.       DEATH BENEFIT PRIOR TO RETIREMENT

         In the event the Executive should die while actively employed by the
         Bank at any time after the date of this Agreement but prior to the
         Executive attaining the age of sixty-five (65) years (or such later
         date as may be agreed upon), the Bank will pay a benefit equal to the
         accrued liability retirement account for the Executive, paid in either,
         at the discretion of the Bank, a lump sum reduced to present value as
         set forth in Subparagraph XI (K) or in equal monthly installments (l/12
         of the accrued liability balance) for a period of twelve (12) months to
         such individual or individuals as the Executive may have designated in
         writing and filed with the Bank. In the absence of any effective
         beneficiary designation, any such amounts becoming due and payable upon
         the death of the Executive shall be payable to the duly qualified
         executor or administrator of the Executive's estate. Said payments due
         hereunder shall begin the first day of the second month following the
         decease of the Executive. In addition, if applicable, the Bank shall
         pay any death benefit as set forth in the Life Insurance Endorsement
         Method Split Dollar Plan Agreement between the Executive and the Bank.

VI.      BENEFIT ACCOUNTING

         The Bank shall account for this benefit using the regulatory accounting
         principles of the Bank's primary federal regulator. The Bank shall
         establish an accrued liability retirement account for the Executive
         into which appropriate reserves shall be accrued.

VII.     VESTING

         Executive's interest in the benefits that are the subject of this
         Agreement shall be subject to an annual vesting percentage as set forth
         hereinbelow that corresponds to the number of full years of employment
         from the date of first employment with the Bank (to a maximum of 100%).

                                        3

<PAGE>

<TABLE>
<CAPTION>
           Total Years of                            Vested
             Employment                            Percentage
           with the Bank                      (to a maximum of 100%)
           -------------                      ----------------------
<S>                                           <C>
                0-4                                  0%
                 5                                  50%

                PLUS

                6-10                                10% each year
</TABLE>

VIII.    OTHER TERMINATION OF EMPLOYMENT

         Subject to Subparagraph VIII (i) hereinbelow, in the event that the
         employment of the Executive shall terminate prior to retirement, as
         provided in Paragraph III, by the Executive's voluntary action, or by
         the Executive's discharge by the Bank without cause, then this
         Agreement shall terminate upon the date of such termination of
         employment and the Bank shall pay to the Executive as severance
         compensation an amount of money equal to the accrued balance of the
         Executive's liability reserve account multiplied by the Executive's
         cumulative vested percentage (Paragraph VII). This severance
         compensation shall be paid in twelve (12) equal monthly installments
         (1/12 of the accrued liability balance) with interest equal to the
         one-year Treasury bill as of the date of termination.

         In the event the Executive's death should occur after such severance
         but prior to the completion of the monthly payments provided for in
         this Paragraph VIII, the remaining installments, or a lump sum, at the
         discretion of the Bank, shall be paid to such individual or individuals
         as the Executive may have designated in writing and filed with the
         Bank. In the absence of any effective beneficiary designation, any such
         amounts shall be payable to the duly qualified executor or
         administrator of the Executive's estate. Said payments due hereunder
         shall begin the first day of the second month following the decease of
         the Executive.

                  (i) Discharge for Cause: In the event the Executive shall be
                  discharged for cause at any time, all benefits provided herein
                  shall be forfeited. The term "for cause" shall mean any of the
                  following that result in an adverse effect on the Bank: (i)
                  gross negligence or gross neglect; (ii) the commission of a
                  felony or gross misdemeanor involving moral turpitude, fraud,
                  or dishonesty; (iii) the willful violation of any law, rule,
                  or regulation (other than a traffic violation or similar
                  offense); (iv) an intentional failure to perform stated
                  duties; or (v) a breach of fiduciary duty involving personal
                  profit. If a dispute arises as to discharge "for cause," such
                  dispute shall be resolved by arbitration as set forth in this
                  Executive Plan.

                                        4

<PAGE>

IX.      CHANGE OF CONTROL

         Change of Control shall be deemed to be the cumulative transfer of more
         than fifty percent (50%) of the voting stock of the Bank from the date
         of this Agreement. For the purposes of this Agreement, transfers made
         on account of deaths or gifts, transfers between family members or
         transfers to a qualified retirement plan maintained by the Bank shall
         not be considered in determining whether there has been a change in
         control. Upon a Change of Control, if the Executive subsequently
         suffers a Termination of Service (voluntary or involuntary), except for
         cause, then the Executive shall receive the benefits in Paragraph IV
         herein upon attaining Normal Retirement Age (Subparagraph III [B]), as
         if the Executive had been continuously employed by the Bank until the
         Executive's Normal Retirement Age.

X.       RESTRICTIONS ON FUNDING

         The Bank shall have no obligation to set aside, earmark or entrust any
         fund or money with which to pay its obligations under this Executive
         Plan. The Executive, their beneficiary(ies), or any successor in
         interest shall be and remain simply a general creditor of the Bank in
         the same manner as any other creditor having a general claim for
         matured and unpaid compensation.

         The Bank reserves the absolute right, at its sole discretion, to either
         fund the obligations undertaken by this Executive Plan or to refrain
         from funding the same and to determine the extent, nature and method of
         such funding. Should the Bank elect to fund this Executive Plan, in
         whole or in part, through the purchase of life insurance, mutual funds,
         disability policies or annuities, the Bank reserves the absolute right,
         in its sole discretion, to terminate such funding at any time, in whole
         or in part. At no time shall any Executive be deemed to have any lien,
         right, title or interest in any specific funding investment or assets
         of the Bank.

         If the Bank elects to invest in a life insurance, disability or annuity
         policy on the life of the Executive, then the Executive shall assist
         the Bank by freely submitting to a physical exam and supplying such
         additional information necessary to obtain such insurance or annuities.

XI.      MISCELLANEOUS

         A.       Alienability and Assignment Prohibition:

                  Neither the Executive, nor the Executive's surviving spouse,
                  nor any other beneficiary(ies) under this Executive Plan shall
                  have any power or right to transfer, assign, anticipate,
                  hypothecate, mortgage, commute, modify or otherwise encumber
                  in advance any of the benefits payable hereunder nor shall any
                  of said benefits be subject to seizure for the payment of any

                                        5

<PAGE>
                  debts, judgments, alimony or separate maintenance owed by the
                  Executive or the Executive's beneficiary(ies), nor be
                  transferable by operation of law in the event of bankruptcy,
                  insolvency or otherwise. In the event the Executive or any
                  beneficiary attempts assignment, commutation, hypothecation,
                  transfer or disposal of the benefits hereunder, the Bank's
                  liabilities shall forthwith cease and terminate.

         B.       Binding Obligation of the Bank and any Successor in Interest:

                  The Bank shall not merge or consolidate into or with another
                  bank or sell substantially all of its assets to another bank,
                  firm or person until such bank, firm or person expressly
                  agrees, in writing, to assume and discharge the duties and
                  obligations of the Bank under this Executive Plan. This
                  Executive Plan shall be binding upon the parties hereto, their
                  successors, beneficiaries, heirs and personal representatives.

         C.       Amendment or Revocation:

                  It is agreed by and between the parties hereto that, during
                  the lifetime of the Executive, this Executive Plan may be
                  amended or revoked at any time or times, in whole or in part,
                  by the mutual written consent of the Executive and the Bank.

         D.       Gender:

                  Whenever in this Executive Plan words are used in the
                  masculine or neuter gender, they shall be read and construed
                  as in the masculine, feminine or neuter gender, whenever they
                  should so apply.

         E.       Effect on Other Bank Benefit Plans:

                  Nothing contained in this Executive Plan shall affect the
                  right of the Executive to participate in or be covered by any
                  qualified or non-qualified pension, profit-sharing, group,
                  bonus or other supplemental compensation or fringe benefit
                  plan constituting a part of the Bank's existing or future
                  compensation structure.

         F.       Headings:

                  Headings and subheadings in this Executive Plan are inserted
                  for reference and convenience only and shall not be deemed a
                  part of this Executive Plan.

                                        6

<PAGE>
         G.       Applicable Law:

                  The validity and interpretation of this Agreement shall be
                  governed by the laws of the State of Michigan.

         H.       12 U.S.C. ss. 1828(k):

                  Any payments made to the Executive pursuant to this Executive
                  Plan, or otherwise, are subject to and conditioned upon their
                  compliance with 12 U.S.C. ss. 1828(k) or any regulations
                  promulgated thereunder.

         I.       Partial Invalidity:

                  If any term, provision, covenant, or condition of this
                  Executive Plan is determined by an arbitrator or a court, as
                  the case may be, to be invalid, void, or unenforceable, such
                  determination shall not render any other term, provision,
                  covenant, or condition invalid, void, or unenforceable, and
                  the Executive Plan shall remain in full force and effect
                  notwithstanding such partial invalidity.

         J.       Not a Contract of Employment:

                  This Agreement shall not be deemed to constitute a contract of
                  employment between the parties hereto, nor shall any provision
                  hereof restrict the right of the Bank to discharge the
                  Executive, or restrict the right of the Executive to terminate
                  employment.

         K.       Present Value:

                  All present value calculations under this Agreement shall be
                  based on the following discount rate:

                  Discount Rate:        The discount rate as used in the FASB 87
                                        calculations for the Executive Plan.

XII.     ERISA PROVISION

         A.       Named Fiduciary and Plan Administrator:

                  The "Named Fiduciary and Plan Administrator" of this Executive
                  Plan shall be First National Bank of Gaylord until its
                  resignation or removal by the Board. As Named Fiduciary and
                  Plan Administrator, the Bank shall be responsible for the
                  management, control and administration of the Executive Plan.
                  The Named Fiduciary may delegate to others certain aspects of
                  the management and operation responsibilities of the Executive

                                       7

<PAGE>

                  Plan including the employment of advisors and the delegation
                  of ministerial duties to qualified individuals.

         B.       Claims Procedure and Arbitration:

                  In the event a dispute arises over benefits under this
                  Executive Plan and benefits are not paid to the Executive (or
                  to the Executive's beneficiary(ies) in the case of the
                  Executive's death) and such claimants feel they are entitled
                  to receive such benefits, then a written claim must be made to
                  the Named Fiduciary and Plan Administrator named above within
                  sixty (60) days from the date payments are refused. The Named
                  Fiduciary and Plan Administrator shall review the written
                  claim and if the claim is denied, in whole or in part, they
                  shall provide in writing within sixty (60) days of receipt of
                  such claim the specific reasons for such denial, reference to
                  the provisions of this Executive Plan upon which the denial is
                  based and any additional material or information necessary to
                  perfect the claim. Such written notice shall further indicate
                  the additional steps to be taken by claimants if a further
                  review of the claim denial is desired. A claim shall be deemed
                  denied if the Named Fiduciary and Plan Administrator fail to
                  take any action within the aforesaid sixty-day period.

                  If claimants desire a second review they shall notify the
                  Named Fiduciary and Plan Administrator in writing within sixty
                  (60) days of the first claim denial. Claimants may review this
                  Executive Plan or any documents relating thereto and submit
                  any written issues and comments they may feel appropriate. In
                  their sole discretion, the Named Fiduciary and Plan
                  Administrator shall then review the second claim and provide a
                  written decision within sixty (60) days of receipt of such
                  claim. This decision shall likewise state the specific reasons
                  for the decision and shall include reference to specific
                  provisions of the Plan Agreement upon which the decision is
                  based.

                  If claimants continue to dispute the benefit denial based upon
                  completed performance of this Executive Plan or the meaning
                  and effect of the terms and conditions thereof, then claimants
                  may submit the dispute to an arbitrator for final arbitration.
                  The arbitrator shall be selected by mutual agreement of the
                  Bank and the claimants. The arbitrator shall operate under any
                  generally recognized set of arbitration rules. The parties
                  hereto agree that they and their heirs, personal
                  representatives, successors and assigns shall be bound by the
                  decision of such arbitrator with respect to any controversy
                  properly submitted to it for determination.

                  Where a dispute arises as to the Bank's discharge of the
                  Executive "for cause," such dispute shall likewise be
                  submitted to arbitration as above

                                       8

<PAGE>

                  described and the parties hereto agree to be bound by the
                  decision thereunder.

 XIII.   TERMINATION OR MODIFICATION OF AGREEMENT BY REASON OF CHANGES IN THE
         LAW, RULES OR REGULATIONS

         The Bank is entering into this Agreement upon the assumption that
         certain existing tax laws, rules and regulations will continue in
         effect in their current form. If any said assumptions should change and
         said change has a detrimental effect on this Executive Plan, then the
         Bank reserves the right to terminate or modify this Agreement
         accordingly. Upon a Change of Control (Paragraph IX), this paragraph
         shall become null and void effective immediately upon said Change of
         Control.

IN WITNESS WHEREOF, the parties hereto acknowledge that each has carefully read
this Agreement and executed the original thereof on the first day set forth
hereinabove, and that, upon execution, each has received a conforming copy.

                                       FIRST NATIONAL BANK OF GAYLORD
                                       Gaylord, Michigan

/s/  Shanna Hanley                     /s/  John R. Kluck
-------------------------              --------------------------------
Witness                                President

/s/  Chris Kasper                      /s/ William A. Kirsten
-------------------------              --------------------------------
Witness                                William A. Kirsten

                                        9<PAGE>
                                                                    EXHIBIT 10.4

                     EXECUTIVE SALARY CONTINUATION AGREEMENT

         THIS AGREEMENT, made and entered into this 10th day of June, 2002, by
and between First National Bank of Gaylord, a bank organized and existing under
the laws of the State of Michigan (hereinafter referred to as the "Bank"), and
Katherine L. Taskey an Executive of the Bank (hereinafter referred to as the
"Executive").

                                   WITNESSETH:

         WHEREAS, the Executive has been and continues to be a valued Executive
of the Bank, and is now serving the Bank; and

         WHEREAS, it is the consensus of the Board of Directors (hereinafter
referred to as the "Board") that the Executive's services to the Bank in the
past have been of exceptional merit and have constituted an invaluable
contribution to the general welfare of the Bank in bringing the Bank to its
present status of operating efficiency and present position in its field of
activity;

         WHEREAS, the Executive's experience, knowledge of the affairs of the
Bank, reputation, and contacts in the industry are so valuable that assurance of
the Executive's continued services is essential for the future growth and
profits of the Bank and it is in the best interests of the Bank to arrange terms
of continued employment for the Executive so as to reasonably assure the
Executive's remaining in the Bank's employment during the Executive's lifetime
or until the age of retirement;

         WHEREAS, it is the desire of the Bank that the Executive's services be
retained as herein provided;

         WHEREAS, the Executive is willing to continue in the employ of the Bank
provided the Bank agrees to pay the Executive or the Executive's
beneficiary(ies), certain benefits in accordance with the terms and conditions
hereinafter set forth;

         ACCORDINGLY, it is the desire of the Bank and the Executive to enter
into this Agreement under which the Bank will agree to make certain payments to
the Executive at retirement or the Executive's beneficiary(ies) in the event of
the Executive's death pursuant to this Agreement;

         FURTHERMORE, it is the intent of the parties hereto that this Executive
Plan be considered an unfunded arrangement maintained primarily to provide
supplemental retirement benefits for the Executive, and be considered a
non-qualified benefit plan for purposes of the Employee Retirement Security Act
of 1974, as amended ("ERISA"). The Executive is fully advised of the Bank's
financial status and has had substantial input in the design and operation of
this benefit plan; and

<PAGE>

         NOW, THEREFORE, in consideration of services performed in the past and
to be performed in the future as well as of the mutual promises and covenants
herein contained it is agreed as follows:

I.       EMPLOYMENT

         The Bank agrees to employ the Executive in such capacity as the Bank
         may from time to time determine. The Executive will continue in the
         employ of the Bank in such capacity and with such duties and
         responsibilities as may be assigned to him, and with such compensation
         as may be determined from time to time by the Board of Directors of the
         Bank.

II.      FRINGE BENEFITS

         The Salary continuation benefits provided by this Agreement arc granted
         by the Bank as a fringe benefit to the Executive and are not part of
         any Salary reduction plan or an arrangement deferring a bonus or a
         Salary increase. The Executive has no option to take any current
         payment or bonus in lieu of these Salary continuation benefits except
         as set forth hereinafter.

III.     RETIREMENT DATE AND NORMAL RETIREMENT AGE

         A.       Retirement Date:

                  If the Executive remains in the continuous employ of the Bank,
                  the Executive shall retire from active employment with the
                  Bank on the December 31st nearest the Executive's sixty-five
                  (65) birthday, unless by action of the Board of Directors this
                  period of active employment shall be shortened or extended.

         B.       Normal Retirement Age:

                  Normal Retirement Age shall mean the date on which the
                  Executive attains age sixty-five (65).

IV.      RETIREMENT BENEFIT AND POST-RETIREMENT DEATH BENEFIT

         Upon said retirement, the Bank, commencing with the first day of the
         month following the date of such retirement, shall pay the Executive an
         annual benefit equal to Thirty Eight Thousand Six Hundred Nine and
         00/100ths Dollars ($38,609.00). Said benefit shall be paid in equal
         monthly installments (1/12 of the annual benefit) for a period of one
         hundred eighty (180) months. If, however, less than one-hundred eighty
         (180) such monthly payments have been made prior to the death of the
         Executive, then the Bank shall either, at the discretion of the

                                        2

<PAGE>
         Bank, continue such monthly payments to the individual or individuals
         the Executive may have designated in writing and filed with the Bank
         until the full number of one-hundred eighty (180) monthly payments have
         been made, or make the total amount of said payment due in a lump sum
         reduced to present value as set forth in Subparagraph XI (K) to said
         beneficiary(ies). In the absence of any effective beneficiary
         designation, any such amounts becoming due and payable upon the death
         of the Executive shall be payable to the duly qualified executor or
         administrator of the Executive's estate. Said payments due hereunder
         shall begin the first day of the second month following the decease of
         the Executive.

V.       DEATH BENEFIT PRIOR TO RETIREMENT

         In the event the Executive should die while actively employed by the
         Bank at any time after the date of this Agreement but prior to the
         Executive attaining the age of sixty-five (65) years (or such later
         date as may be agreed upon), the Bank will pay a benefit equal to the
         accrued liability retirement account for the Executive, paid in either,
         at the discretion of the Bank, a lump sum reduced to present value as
         set forth in Subparagraph XI (K) or in equal monthly installments (l/12
         of the accrued liability balance) for a period of twelve (12) months to
         such individual or individuals as the Executive may have designated in
         writing and filed with the Bank. In the absence of any effective
         beneficiary designation, any such amounts becoming due and payable upon
         the death of the Executive shall be payable to the duly qualified
         executor or administrator of the Executive's estate. Said payments due
         hereunder shall begin the first day of the second month following the
         decease of the Executive. In addition, if applicable, the Bank shall
         pay any death benefit as set forth in the Life Insurance Endorsement
         Method Split Dollar Plan Agreement between the Executive and the Bank.

VI.      BENEFIT ACCOUNTING

         The Bank shall account for this benefit using the regulatory accounting
         principles of the Bank's primary federal regulator. The Bank shall
         establish an accrued liability retirement account for the Executive
         into which appropriate reserves shall be accrued.

VII.     VESTING

         Executive's interest in the benefits that are the subject of this
         Agreement shall be subject to an annual vesting percentage as set forth
         hereinbelow that corresponds to the number of full years of employment
         from the date of first employment with the Bank (to a maximum of 100%).

                                        3

<PAGE>

<TABLE>
<CAPTION>
           Total Years of                            Vested
             Employment                            Percentage
           with the Bank                      (to a maximum of 100%)
           -------------                      ----------------------
<S>                                           <C>
                0-9                                  0%
                 10                                 50%

                PLUS

                11-15                               10% per year
</TABLE>

VIII.    OTHER TERMINATION OF EMPLOYMENT

         Subject to Subparagraph VIII (i) hereinbelow, in the event that the
         employment of the Executive shall terminate prior to retirement, as
         provided in Paragraph III, by the Executive's voluntary action, or by
         the Executive's discharge by the Bank without cause, then this
         Agreement shall terminate upon the date of such termination of
         employment and the Bank shall pay to the Executive as severance
         compensation an amount of money equal to the accrued balance of the
         Executive's liability reserve account multiplied by the Executive's
         cumulative vested percentage (Paragraph VII). This severance
         compensation shall be paid in twelve (12) equal monthly installments
         (1/12 of the accrued liability balance) with interest equal to the
         one-year Treasury bill as of the date of termination.

         In the event the Executive's death should occur after such severance
         but prior to the completion of the monthly payments provided for in
         this Paragraph VIII, the remaining installments, or a lump sum, at the
         discretion of the Bank, shall be paid to such individual or individuals
         as the Executive may have designated in writing and filed with the
         Bank. In the absence of any effective beneficiary designation, any such
         amounts shall be payable to the duly qualified executor or
         administrator of the Executive's estate. Said payments due hereunder
         shall begin the first day of the second month following the decease of
         the Executive.

                  (i) Discharge for Cause: In the event the Executive shall be
                  discharged for cause at any time, all benefits provided herein
                  shall be forfeited. The term "for cause" shall mean any of the
                  following that result in an adverse effect on the Bank: (i)
                  gross negligence or gross neglect; (ii) the commission of a
                  felony or gross misdemeanor involving moral turpitude, fraud,
                  or dishonesty; (iii) the willful violation of any law, rule,
                  or regulation (other than a traffic violation or similar
                  offense); (iv) an intentional failure to perform stated
                  duties; or (v) a breach of fiduciary duty involving personal
                  profit. If a dispute arises as to discharge "for cause," such
                  dispute shall be resolved by arbitration as set forth in this
                  Executive Plan.

                                        4

<PAGE>

IX.      CHANGE OF CONTROL

         Change of Control shall be deemed to be the cumulative transfer of more
         than fifty percent (50%) of the voting stock of the Bank from the date
         of this Agreement. For the purposes of this Agreement, transfers made
         on account of deaths or gifts, transfers between family members or
         transfers to a qualified retirement plan maintained by the Bank shall
         not be considered in determining whether there has been a change in
         control. Upon a Change of Control, if the Executive subsequently
         suffers a Termination of Service (voluntary or involuntary), except for
         cause, then the Executive shall receive the benefits in Paragraph IV
         herein upon attaining Normal Retirement Age (Subparagraph III [B]), as
         if the Executive had been continuously employed by the Bank until the
         Executive's Normal Retirement Age.

X.       RESTRICTIONS ON FUNDING

         The Bank shall have no obligation to set aside, earmark or entrust any
         fund or money with which to pay its obligations under this Executive
         Plan. The Executive, their beneficiary(ies), or any successor in
         interest shall be and remain simply a general creditor of the Bank in
         the same manner as any other creditor having a general claim for
         matured and unpaid compensation.

         The Bank reserves the absolute right, at its sole discretion, to either
         fund the obligations undertaken by this Executive Plan or to refrain
         from funding the same and to determine the extent, nature and method of
         such funding. Should the Bank elect to fund this Executive Plan, in
         whole or in part, through the purchase of life insurance, mutual funds,
         disability policies or annuities, the Bank reserves the absolute right,
         in its sole discretion, to terminate such funding at any time, in whole
         or in part. At no time shall any Executive be deemed to have any lien,
         right, title or interest in any specific funding investment or assets
         of the Bank.

         If the Bank elects to invest in a life insurance, disability or annuity
         policy on the life of the Executive, then the Executive shall assist
         the Bank by freely submitting to a physical exam and supplying such
         additional information necessary to obtain such insurance or annuities.

XI.      MISCELLANEOUS

         A.       Alienability and Assignment Prohibition:

                  Neither the Executive, nor the Executive's surviving spouse,
                  nor any other beneficiary(ies) under this Executive Plan shall
                  have any power or right to transfer, assign, anticipate,
                  hypothecate, mortgage, commute, modify or otherwise encumber
                  in advance any of the benefits payable hereunder nor shall any
                  of said benefits be subject to seizure for the payment of any

                                        5

<PAGE>
                  debts, judgments, alimony or separate maintenance owed by the
                  Executive or the Executive's beneficiary(ies), nor be
                  transferable by operation of law in the event of bankruptcy,
                  insolvency or otherwise. In the event the Executive or any
                  beneficiary attempts assignment, commutation, hypothecation,
                  transfer or disposal of the benefits hereunder, the Bank's
                  liabilities shall forthwith cease and terminate.

         B.       Binding Obligation of the Bank and any Successor in Interest:

                  The Bank shall not merge or consolidate into or with another
                  bank or sell substantially all of its assets to another bank,
                  firm or person until such bank, firm or person expressly
                  agrees, in writing, to assume and discharge the duties and
                  obligations of the Bank under this Executive Plan. This
                  Executive Plan shall be binding upon the parties hereto, their
                  successors, beneficiaries, heirs and personal representatives.

         C.       Amendment or Revocation:

                  It is agreed by and between the parties hereto that, during
                  the lifetime of the Executive, this Executive Plan may be
                  amended or revoked at any time or times, in whole or in part,
                  by the mutual written consent of the Executive and the Bank.

         D.       Gender:

                  Whenever in this Executive Plan words are used in the
                  masculine or neuter gender, they shall be read and construed
                  as in the masculine, feminine or neuter gender, whenever they
                  should so apply.

         E.       Effect on Other Bank Benefit Plans:

                  Nothing contained in this Executive Plan shall affect the
                  right of the Executive to participate in or be covered by any
                  qualified or non-qualified pension, profit-sharing, group,
                  bonus or other supplemental compensation or fringe benefit
                  plan constituting a part of the Bank's existing or future
                  compensation structure.

         F.       Headings:

                  Headings and subheadings in this Executive Plan are inserted
                  for reference and convenience only and shall not be deemed a
                  part of this Executive Plan.

                                        6

<PAGE>
         G.       Applicable Law:

                  The validity and interpretation of this Agreement shall be
                  governed by the laws of the State of Michigan.

         H.       12 U.S.C. ss. 1828(k):

                  Any payments made to the Executive pursuant to this Executive
                  Plan, or otherwise, are subject to and conditioned upon their
                  compliance with 12 U.S.C. ss. 1828(k) or any regulations
                  promulgated thereunder.

         I.       Partial Invalidity:

                  If any term, provision, covenant, or condition of this
                  Executive Plan is determined by an arbitrator or a court, as
                  the case may be, to be invalid, void, or unenforceable, such
                  determination shall not render any other term, provision,
                  covenant, or condition invalid, void, or unenforceable, and
                  the Executive Plan shall remain in full force and effect
                  notwithstanding such partial invalidity.

         J.       Not a Contract of Employment:

                  This Agreement shall not be deemed to constitute a contract of
                  employment between the parties hereto, nor shall any provision
                  hereof restrict the right of the Bank to discharge the
                  Executive, or restrict the right of the Executive to terminate
                  employment.

         K.       Present Value:

                  All present value calculations under this Agreement shall be
                  based on the following discount rate:

                  Discount Rate:        The discount rate as used in the FASB 87
                                        calculations for the Executive Plan.

XII.     ERISA PROVISION

         A.       Named Fiduciary and Plan Administrator:

                  The "Named Fiduciary and Plan Administrator" of this Executive
                  Plan shall be First National Bank of Gaylord until its
                  resignation or removal by the Board. As Named Fiduciary and
                  Plan Administrator, the Bank shall be responsible for the
                  management, control and administration of the Executive Plan.
                  The Named Fiduciary may delegate to others certain aspects of
                  the management and operation responsibilities of the Executive

                                       7

<PAGE>

                  Plan including the employment of advisors and the delegation
                  of ministerial duties to qualified individuals.

         B.       Claims Procedure and Arbitration:

                  In the event a dispute arises over benefits under this
                  Executive Plan and benefits are not paid to the Executive (or
                  to the Executive's beneficiary(ies) in the case of the
                  Executive's death) and such claimants feel they are entitled
                  to receive such benefits, then a written claim must be made to
                  the Named Fiduciary and Plan Administrator named above within
                  sixty (60) days from the date payments are refused. The Named
                  Fiduciary and Plan Administrator shall review the written
                  claim and if the claim is denied, in whole or in part, they
                  shall provide in writing within sixty (60) days of receipt of
                  such claim the specific reasons for such denial, reference to
                  the provisions of this Executive Plan upon which the denial is
                  based and any additional material or information necessary to
                  perfect the claim. Such written notice shall further indicate
                  the additional steps to be taken by claimants if a further
                  review of the claim denial is desired. A claim shall be deemed
                  denied if the Named Fiduciary and Plan Administrator fail to
                  take any action within the aforesaid sixty-day period.

                  If claimants desire a second review they shall notify the
                  Named Fiduciary and Plan Administrator in writing within sixty
                  (60) days of the first claim denial. Claimants may review this
                  Executive Plan or any documents relating thereto and submit
                  any written issues and comments they may feel appropriate. In
                  their sole discretion, the Named Fiduciary and Plan
                  Administrator shall then review the second claim and provide a
                  written decision within sixty (60) days of receipt of such
                  claim. This decision shall likewise state the specific reasons
                  for the decision and shall include reference to specific
                  provisions of the Plan Agreement upon which the decision is
                  based.

                  If claimants continue to dispute the benefit denial based upon
                  completed performance of this Executive Plan or the meaning
                  and effect of the terms and conditions thereof, then claimants
                  may submit the dispute to an arbitrator for final arbitration.
                  The arbitrator shall be selected by mutual agreement of the
                  Bank and the claimants. The arbitrator shall operate under any
                  generally recognized set of arbitration rules. The parties
                  hereto agree that they and their heirs, personal
                  representatives, successors and assigns shall be bound by the
                  decision of such arbitrator with respect to any controversy
                  properly submitted to it for determination.

                  Where a dispute arises as to the Bank's discharge of the
                  Executive "for cause," such dispute shall likewise be
                  submitted to arbitration as above

                                       8

<PAGE>

                  described and the parties hereto agree to be bound by the
                  decision thereunder.

 XIII.   TERMINATION OR MODIFICATION OF AGREEMENT BY REASON OF CHANGES IN THE
         LAW, RULES OR REGULATIONS

         The Bank is entering into this Agreement upon the assumption that
         certain existing tax laws, rules and regulations will continue in
         effect in their current form. If any said assumptions should change and
         said change has a detrimental effect on this Executive Plan, then the
         Bank reserves the right to terminate or modify this Agreement
         accordingly. Upon a Change of Control (Paragraph IX), this paragraph
         shall become null and void effective immediately upon said Change of
         Control.

IN WITNESS WHEREOF, the parties hereto acknowledge that each has carefully read
this Agreement and executed the original thereof on the first day set forth
hereinabove, and that, upon execution, each has received a conforming copy.

                                       FIRST NATIONAL BANK OF GAYLORD
                                       Gaylord, Michigan

/s/ Chris Kasper                       /s/ John R. Kluck
-------------------------              --------------------------------
Witness                                President

/s/ Shanna Hanley                      /s/ Katherine L. Taskey
-------------------------              --------------------------------
Witness                                Katherine L. Taskey

                                        9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]