Document:

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                                                                    EXHIBIT 10.2

                EXECUTIVE EMPLOYEE SALARY CONTINUATION AGREEMENT
                                       FOR
                                 THOMAS J. BARE

         THIS AGREEMENT is made this 19 day of March, 1998, between First
National Bank in Manitowoc, a Wisconsin corporation (the "Company") and Thomas
J. Bare (the "Executive").

         WHEREAS, the Executive 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 Executive the strongest interest in the successful operation of
the Company and increased efficiency in his work and to provide the Executive
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 mean
the committee appointed pursuant to Section 5 of this Agreement.

         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

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if (a) after giving 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 9.5%.

         1.5 DISABILITY - "Disability" shall mean, if the Executive is insured
under the company long term disability policy, the definition of total
disability contained in the long term disability insurance policy. If the
Executive is not insured under such a policy, the board shall, in its

<PAGE>
complete and sole discretion, determine whether the Executive is disabled for
the purposes of this Agreement.

         1.6 Discharge for Cause - "Discharge for Cause" shall mean the
termination of the Executive's employment with the Company because of (a) the
Executive's willful and continued failure to substantially perform his duties
(other that any such failure resulting from his incapacity due to physical or
mental illness), after a demand for substantial performance is delivered to him
by the Company which specifically identifies the manner in which the Company
believes he has not substantially performed his duties; (b) any willful act of
misconduct by the Executive which is materially injurious to the Company,
monetarily or otherwise; (c) a criminal conviction of the Executive for any act
involving the business and affairs of the Company; (d) a criminal conviction of
the Executive for commission of a felony; or (e) the removal of the Executive by
a regulatory agency. For purposes of this definition, no act or failure to act
on the Executive's part will be considered "willful" unless done or omitted by
him not in good faith and without reasonable belief that his act or omission was
in the best interest of the Company.

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

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

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

         1.10 Termination of Employment - "Termination of Employment" shall mean
the Executive'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 and the vesting
schedule attached as Exhibit A, vesting shall accrue to the Executive on a pro
rata monthly basis beginning annually on each anniversary date of this
Agreement. The Executive shall earn 1/12th of the annual vesting increased for
each month of completed service during each year of this Agreement. Regardless

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of the number of years of service completed by the Executive, upon a Change in
Control, the Executive shall become 100 % vested in all benefits under this
Agreement.

                                    SECTION 2

                                   ELIGIBILITY

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

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

                                    SECTION 3

                              PAYMENT OF BENEFITS

         3.1      BENEFITS UPON NORMAL RETIREMENT.

                  Upon a Executive's Termination of Employment on or after the
Normal Retirement Date, the Company shall pay to the Executive the sum of
$80,600 per year, payable in monthly installments of $6,716.67 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
thereafter for the life of the Participant, but in any event until a minimum of
180 total monthly payments are made to the Executive or the Executive's
beneficiary per Section 3.6(b).

         3.2      BENEFITS UPON EARLY RETIREMENT.

                  Upon a Executive'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 Executive, 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.

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                  The Executive 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 Executive elects to defer
payment of the benefit until his Normal Retirement Date, the Company shall pay
to the Executive the normal retirement benefit described in Section 3.1 above.
If a Executive elects to defer payment of the benefit to a date prior to the
Normal Retirement Date, the Company shall pay to the Executive a benefit
calculated in accordance with the first sentence of this Section 3.2, but using
the date selected by the Executive 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 Executive's Termination of Employment after the Normal
Retirement Date, the Company shall pay to the Executive the normal retirement
benefit described in Section 3.1 above, increased by .05 per year or .00416 for
each month that the Executive'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.

         3.4      BENEFITS UPON DISABILITY.

                  Upon a Executive'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 Executive shall be
considered, notwithstanding such Termination of Employment, to continue to be a
Executive while disabled and for so long as the disability continues prior to
reaching the Early Retirement Date, such Executive's beneficiary shall receive
the survivor's benefits described in Section 3.6(a). In the event the Executive
lives to the Early Retirement Date, the Executive shall be entitled to receive
the early retirement benefit described in Section 3.2.

                                       5
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         3.5      OTHER TERMINATIONS OF EMPLOYMENT.

                  (a) Voluntary Termination of Employment Prior to the Early
         Retirement or Discharge; for Cause at any Time. Upon a Executive's
         voluntary Termination of Employment prior to reaching the Early
         Retirement Date, for reasons other than death or Disability, or upon
         the Executive's Discharge for Cause at any time, the Company shall pay
         the vested benefit to the Executive pursuant to Schedule A attached to
         this Agreement, and the Executive 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 Executive's involuntary Termination of Employment
         prior to reaching the Early Retirement Date, for reasons other than
         death, disability or discharge for cause, the Company shall pay to the
         Executive as compensation for services rendered prior to such
         Termination of Employment, the vested "Immediate Annual Benefit" or the
         vested "Annual Benefit at Age 65" as defined in Schedule A, payable in
         monthly installments, commencing on the first day of the month
         coincident with or next following the date of Termination of
         Employment, or Age 65 and continuing on the first day of each month
         thereafter for a period of fifteen years. For purposes of this
         subsection 3.5(b), the Executive 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 Executive fails to receive
         periodic increases substantially proportionate to and coincident with
         the increase granted to management employees.

                  (c) Termination of Employment At or After A Change in
         Ownership of Control. If a Executive incurs a voluntary or 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, and in connection
         with such change, the Executive's title, duties, responsibilities, or

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         compensation is significantly lessened or his situs of employment is
         changed, without his consent, the Company shall pay to the Executive,
         the greater of a) the sum of 100 % of the Executive's gross annual
         salary for the twelve-month period prior to Termination, payable in
         monthly installments, commencing on the first day of each month
         thereafter for a period of three (3) years, but in any event until a
         minimum of thirty-six (36) total monthly payments are made to the
         Executive or the Executive's beneficiary per Section 3.6(b); or b) the
         immediate lump sum or immediate annual 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 Executive 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 Executive's beneficiary a
         survivor's benefit of 180 equal monthly installments of $6,716.67
         commencing on the first day of the month after the Executive'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 Executive would have
         otherwise received, under the terms of this Agreement.

                  (b) After Commencement of Benefits. If a Executive 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 Executive'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.

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           3.7      RECIPIENTS OF PAYMENTS: DESIGNATION OF BENEFICIARY.

                    All payments to be made by the Company shall be made to the
Executive, if living. In the event of a Executive'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 Executive. The Executive
shall designate a beneficiary by filing a written notice of such designation
with the Company in such form as the Company may prescribe. The Executive may
revoke or modify said designation at any time by a further written designation.
The Executive's beneficiary designation shall be deemed automatically revoked in
the event of the death of the beneficiary, or if the beneficiary is the
Executive'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 Executive, or if no
spouse is then living, the legal representatives of the Executive's estate.

             3.8    ACCELERATION OF BENEFITS.

                  At any time after the Executive or the Executive's beneficiary
becomes entitled to a payment of benefits under this Agreement, the Executive,
or the Executive'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 Executive or the Executive's beneficiary, assuming
the Mortality Assumptions.

                                    SECTION 4

                     ADDITIONAL CHANGE IN CONTROL PROVISIONS

         4.1      APPLICATION OF SECTION.

                  If the Executive 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.

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         4.2        LIMIT ON PAYMENTS.

                    If payments or benefits under this Agreement, after taking
into account all other payments or benefits to which the Executive is entitled
from the Company, are expected to result in an excise tax on the Executive 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 Executive from the Company, which are considered
contingent upon the Change in Control, shall not exceed 2.99 times the
Executive's Base Amount as defined in Code Section 280G.

         4.2      DETERMINATION BY EXPERTS.

                  If the Executive 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.

         4.3      EXECUTIVE'S COSTS OF ENFORCEMENT.

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

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                                    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 Executive. 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 Executive or the Executive'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.

                                    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

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(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 Executive, in such amounts and
in such forms as the Company may choose. The Executive 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 Executive, 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 not be
deemed to be held under any trust for the benefit of the Executive, 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.

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         If this Agreement is funded through insurance on the life of the
Executive, then in the event of such Executive's death during the first two (2)
years after the effective date of this Agreement, and if such Executive's death
was a result of suicide or if such Executive made any material misstatement or
failed to make a material disclosure of information in any documentation which
the Executive 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 Executive 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 Executive 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 Executive's
portion of FICA from such other amounts payable to the Executive as the Company
deems appropriate.

                                       12
<PAGE>

                                   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 Executive or beneficiary hereunder or any benefit that would
become payable hereunder if the Executive were to have died or were to have been
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 Executive.

         The Company is entering into this Agreement upon the assumption that
certain existing tax laws will continue in effect in substantially their current
form. In the event of any changes in Federal law relating to and allowing the
tax-free accumulation of earnings within a life insurance policy, the income
tax-free payment of proceeds from life insurance policies or any other law which
would result in a material adverse impact upon the Company's ability to perform
its obligations under this Agreement, the Company shall have an option to
terminate or modify this Agreement subject to the protection afforded
Executive's in the preceding paragraph above.

                                   SECTION 13

                                  CONSTRUCTION

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

                                   SECTION 14

                             FORM OF COMMUNICATION

         Any election, application, claim, notice or other communication
required or permitted to be made by the Executive 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 402 N. 8th Street, Manitowoc, WI 54221.

                                       13
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                                   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.

                                   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 Executive, 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:   /S/ THOMAS J. BARE
                                        --------------------------------------
                                    Its:
                                        --------------------------------------

                                        --------------------------------------
                                                   Thomas J. Bare

                                       14
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                         BENEFICIARY DESIGNATION NOTICE

To the Plan Administrator of Thomas J. Bare Executive Salary continuation
Agreement:

Pursuant to the Provisions of my Executive Salary Continuation Agreement with
First National Bank in Manitowoc permitting the designation of a beneficiary or
beneficiaries by the Executive, 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

--------------------------------------------------------------------------------
Virginia S. Bare        827 Memorial Dr.                Wife
                        Manitowoc, WI 54220
--------------------------------------------------------------------------------

SECONDARY (CONTINGENT) BENEFICIARY:
Name                    Address                         Relationship

Estate
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

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.
      3-19-98                                         /s/ Thomas J. Bare
------------------------                        -------------------------------
Date of Designation                                 Signature of Executive

                                       15
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                                   SCHEDULE A
                      SALARY CONTINUATION VESTING SCHEDULE

              First National Bank in Manitowoc
              Tom Bare
              $80600 per year for 15 yrs.
              Rollover balance is $0
<TABLE>
<CAPTION>
                                                                                    VESTING SCHEDULE 1
                    Year-end        Percentage       Immediate        Immediate        Lump Sum          Annual
          Plan       Accrual         of Accrual      Lump Sum          Annual          Benefit at        Benefit at
  Age     Year       Balance           Vested          Benefit         Benefit           Age 65          Age 65
  ---     ----       -------           ------          -------         -------           ------          ------
<S>       <C>       <C>             <C>              <C>              <C>           <C>                  <C>
   59       1         83,525          100.00%          83,525           10,466           134,058            16,798
   60       2        175,339          100.00%         175,339           21,971           256,012            32,080
   61       3        276,265          100.00%         276,265           34,618           366,955            45,982
   62       4        387,209          100.00%         387,209           48,520           467,882            58,629
   63       5        509,163          100.00%         509,163           63,802           559,696            70,134
   64       6        643,220          100.00%         643,220           80,600           643,220            80,600
</TABLE><PAGE>
                        FIRST NATIONAL BANK IN MANITOWOC
                      VOLUNTARY DEFERRED COMPENSATION PLAN

                ARTICLE I. PURPOSE, DEFINITIONS AND CONSTRUCTION

      Section 1.1 Purpose. First National Bank in Manitowoc ("Company") hereby
adopts the Voluntary Deferred Compensation Plan (the "Plan") to permit certain
directors selected by the Company to defer a portion of their anticipated
director fees and to have such deferred director fees accounted for and
administered.

      It is intended that the Plan shall constitute, and shall be construed and
administered as, and unfunded plan of deferred compensation within the meaning
of the Employee Retirement Income Security Act of 1974 as amended ("ERISA"), and
the Internal Revenue Code of 1954, as amended (the "Code"). The Plan is not
intended to be qualified under 401(a) of the Code.

      Section 1.2 Definitions. For purposes of the Plan, the following words and
phrases shall have the meanings set forth below unless a different meaning is
plainly required by the context.

         (A) Administrative Committee (or Committee) - means the persons from
time to time designated and appointed by the Board to have general charge of the
administration and interpretation of the Plan. In the absence of a specifically
appointed Committee, the Board itself shall serve as the Committee.

         (B) Adoption Agreement (or Agreement) - means the separate Adoption
Agreement between a Participant and the Company, which forms a part of the Plan,
under which the Company has agreed to allow the Participant to participate in
the Plan and under which the Participant has agreed to his participation in the
Plan on the terms set forth herein.

         (C) Beneficiary - means the person or persons designated by a
Participant in his most recent Beneficiary Designation Form to receive payments
under the Plan in the event of the Participant's death; provided that if the
Participant has failed to designate a Beneficiary, or if all designated
beneficiaries predecease the Participant, any remaining distribution due under
the Plan shall be payable to the Participant's surviving spouse or, if none, to
his surviving issue per stirpes or, if none, then to his estate.

         (D) Board - means the Board of Directors of the Company.

         (E) Company - means First National Bank in Manitowoc, a Wisconsin
Corporation, acting for itself and on behalf of its subsidiaries, and any
successor thereto which assumes the rights and obligations of the Company under
the Plan.

         (F) Deferral Account - means the account maintained for a Participant
to record the total of his deferred compensation under the Plan and any
adjustments relation thereto.
<PAGE>
         (G) Deferral Contributions - means the accounting additions which are
administered pursuant to any Deferral Account under the Plan and the then
current Deferral Form.

         (H) Deferral Form - means a Participant's then current Deferral
Election Form, if any, to be executed by the Participant prior to the start of
any affected Plan Year specifying the percentage or dollar amount of director
fees elected to be deferred during any such plan year. The Deferral Form shall
remain in effect for each affected Plan Year for which it is executed unless it
is earlier revoked or amended to reduce the percentage or dollar amount of the
deferral for amounts not yet earned during such year.

         (I) Disability - means such total and permanent physical or mental
disability as, in the Committee sole and absolute discretion, would prevent the
Participation from engaging in substantially gainful employment.

         (J) Effective Date - means August 1, 1987, the date as of which, by
resolution of the Board, the provisions of this Plan became effective and the
date after which the Participants were permitted to participate in the Plan by
entering an Adoption Agreement with the Company.

         (K) Insolvency - means any declaration of insolvency made by an
appropriate state or federal regulatory agency.

         (L) Participant - means a person who is or was one of the
Company-selected directors who, by having executed an Adoption Agreement with
the Company, is participating in the Plan. Such person shall cease to be a
director with the Company, or the balance in his Deferral Account is reduced to
zero ($0), whichever is later.

         (M) Plan - means the First National Bank in Manitowoc Voluntary
Deferred Compensation Plan as set forth herein.

         (N) Plan Year - means the twelve (12) month period adopted under the
Plan for reporting purposes, which is the period commencing on January 1 and
ending December 31.

      Section 1.3 Gender and Number. Except when otherwise indicated by the
context, any masculine terminology used herein shall also include the feminine
and the definitions of any term herein in the singular shall also include the
plural.

      Section 1.4 Headings. The headings of the various Articles, Sections and
Subsections are inserted for convenience of reference and are not to be regarded
as part of the Plan or as indicating or controlling the meaning or construction
of any provision.

      Section 1.5 Plan Provisions Controlling. In the event the terms or
provisions of any summary or description of the Plan or any other instrument,
agreement, or document are in any construction interpreted as being in conflict
with the provisions of the Plan as herein set forth, the provisions of the Plan
shall be controlling.
<PAGE>
      Section 1.6 Severability. In the event any provisions of the Plan shall be
held illegal or invalid for any reason, this illegality or invalidity shall not
affect the remaining provisions of the Plan, and such remaining provisions shall
be fully severable and the Plan shall, to the extent practicable, be contrued
and enforced as if the illegal or invalid provisions had never been inserted
therein.

      Section 1.7 Applicable Law. Subject to the intent that the Plan be
unfunded and non-qualified as provided in Section 1.1, the provisions of the
Plan shall be construed in accordance with the laws of the State of Wisconsin,
except to the extent practicable, be construed and enforced as if the illegal or
invalid provisions had never been inserted therein.

                         ARTICLE 11. DEFERRAL ELECTIONS
                CONTRIBUTION ADDITIONS, AND ACCOUNTING PROCEDURES

      Section 2.1 Availability of Deferral Election. The Company shall make
available, in December of each Plan Year, to each Participant who is then an
employee or director, a Deferral Form which may be used by the Participant to
designate for deferral a portion of the salary or director fees he anticipates
earning from the Company in the upcoming Plan Year. All amounts elected to be
deferred by a Participant shall be subject to the terms and conditions of the
Plan and shall be subject to FICA taxes, if applicable. No requested deferral
shall be effective for any Plan Year unless the appropriate Deferral Form is
completed and filed with the Committee prior to January 1 of the Plan Year for
which the deferral is elected. No deferral can be made for any Plan Year during
or after which the Participant has attained the age of seventy-one.

      Section 2.2 Maintenance of Separate Deferral Accounts. There shall be
created and maintained under this Plan adequate records to disclose the interest
hereunder of all participants. Such records shall be in the form of separate,
individual Deferral Accounts, and credits and charges shall be made thereto in
the manner described in this Plan. The maintenance of individual Deferral
Accounts for Participants is only for accounting purposes. Distributions made
from an account shall be charged. to that account as of the date paid.

      Section 2.3 Treatment of Amounts Deferred. Upon execution and filing by
the Participation of an effective Deferral Form, the Company shall make a
Deferral Contribution to such Participant's Deferral Account no later than ten
(10) days after the end of the period(s) during which the Participant would have
otherwise been entitled to receive the amount deferred hereunder except for the
Participant's election pursuant to this Plan and the Deferral Form.

      Section 2.4 Irrevocability and Nonassignability of Deferrals. All amounts
credited to a Participant's Deferral Account shall be treated as having been
irrevocably deferred and no payment based on such amounts may be received except
in accordance with the eligibility requirements, terms and conditions of this
Plan. Neither the Participant nor any beneficiary shall have any right or
ability to alienate, sell, transfer, assign, pledge, encumber or submit to
garnishment, execution or levy, either voluntarily or involuntarily, any amount
due under this Plan shall be paid, transferred, delivered or otherwise conveyed
only to the Participant or his Beneficiary, subject to the limitations of
Section 4.1.
<PAGE>
      Notwithstanding the foregoing, a Deferral Form election may be canceled,
or amended not more than once annually to reduce the percentage or dollar amount
of the Deferral during a Plan Year for amounts not yet earned during such Year,
provided that once the Deferral Form election is canceled no further amounts may
be deferred under this Plan for such Year.

         Section 2.5 Accounting Procedure. As of the close of each month after
the Effective Date, the Trustee shall:

         (A) First, charge to the proper accounts all credits or accounting
additions or distributions made from the account of Participants since the close
of the last preceding month that have not been charged previously;

         (B) Second, credit to the proper accounts the Deferral Contributions
that were made since the close of the last preceding month that have not been
credited previously;

         (C) Third, adjust the net balances of the accounts of Participants
upward or downward by allocating net earnings to such accounts in accordance
with Section 2.6.

      Section 2.6 Earnings Allocation. Subject to the provisions hereof relative
to separate accounts, the respective Deferral Accounts of Participants shall be
adjusted as soon as is practicable after, but as of, the close of each month
(and as of any other date if the Committee determines it is advisable for any
reason) to reflect the net income addition for the period then completed, as
follows: each Deferral Account value shall be credited each month with an
equivalent annual rate based upon a per annum interest rate equal two (2)
percentage points over the indexed Alexander Hamilton Life Insurance Company
policy rate, with the initial rate being 10.25%; and subsequent adjustments
made.

      In the administration of the accounts of Participants, appropriate
adjustment shall be made in the case of a Participant, any part of whose account
may be invested in the investments made for his separate benefit.

                   ARTICLE III. DEFERRED COMPENSATION PAYMENTS

      Section 3.1 Eligibility for Deferred Compensation. Subject to any limiting
conditions set forth in this Plan, the Participant, or in the event of the
Participant's death, his Beneficiary, will become eligible for receipt of
deferred compensation under this Plan as follows:

         (A) Retirement or Termination - Upon retirement or other termination of
regular employment with the Company, the Participant shall become eligible for
deferred compensation payments under this Plan.

         (B) Disability - Upon cessation of active employment with the Company
as a result of Disability, Participant shall become eligible for deferred
compensation payments under this Plan.

         (C) Death - In the event of Participant's death prior to the
Participants receipt of deferred compensation payments under the Plan reducing
the Participant's Deferral Account balance to zero ($0), the Participant's
Beneficiary shall be eligible for deferred compensation payments under the Plan.
<PAGE>
      Section 3.2 Amount and Method of Payment of Deferred Compensation. The
total deferred compensation to be paid to a Participant shall be distributed to
the Participant and, upon the Participant's death, to his Beneficiary, in one of
the following modes of distribution as determined by the Committee in its sole
and absolute discretion taking into account the best interests of the
Participant or Beneficiary: (i) lump sum payment; or (ii) annual installments
over a period not to exceed the life expectancy of the Participant, as
determined by the Committee as of the date payment is to commence or 15 years,
whichever is the greater. The Committee may combine the foregoing distribution
as determined by the modes as determined by the Committee in its sole and
absolute. discretion taking into account the best interests of the Participant
or Beneficiary Once the mode of distribution is determined, it shall remain in
force until the Participant's account balance is reduced to zero, except that if
the Participant or Beneficiary dies, or if the Participant or Beneficiary,
because of illness, temporary disability or other incapacity or financial
emergency, is in need of financial assistance, then the Committee may direct
that any or all of the remaining account balance be distributed at any time as
the Committee may deem advisable and proper.

      If a lump sum mode of distribution is used, the total deferred
compensation to be paid to a Participant or Beneficiary shall be an amount equal
to the Participant's Deferral Account balance as of the close of the Plan Year
which during which the Participant retired, died, terminated or became disabled,
or, if later, within a reasonable time after the Participant's interest is
determined pursuant to the preceding sentence.

      If an installment mode of distribution is used, the first installment
payment of deferred compensation under the Plan shall be made within sixty (60)
days following the close of the Plan Year during which the Participant retired,
died, terminated or became disabled, and each annual installment payable
thereafter shall be distributed within sixty (60) days after the close of any
Plan Year shall equal the balance of the Participant's Deferral Account
determined at the beginning of such Plan Year, divided by the number of years
remaining in the payment period over which payment benefits is being made.

      Section 3.3 Addition Ancillary Death Benefit. The Company may at its
discretion insure the life of the Participant. As an addition Ancillary Death
Benefit, the Participant's Beneficiary shall be eligible for the greater of the
Deferral Account balance at the death of the Participant, or 100% of any net
insurance benefit owned by the Company. The method of payment shall be as
described in Section 3.2. The greater of the Ancillary Death Benefit or the
Deferred Account balance shall be paid either prior to the commencement of
benefits or following the commencement of benefits.

      Either the Deferred Account balance or the net death benefit shall be paid
out in the installments as specified in Section 3.2; in monthly installments
calculated at a discount rate determined by the Company's then one year C.D.
rate.

                           ARTICLE IV. ADMINISTRATION

      Section 4.1 Committee to Administer Agreement. The Board shall appoint a
three (3) member Administration Committee whose responsibility it shall be to
provide for administration of this Plan.

<PAGE>
      The Committee shall have full authority to make decisions, issue
directives, and take any and all actions reasonable or necessary to effectuate
this Plan, including the authority to prescribe the use of such forms as it may
deem necessary and to interpret the Plan and to resolve ambiguities,
inconsistencies and omissions in its interpretation.

      Section 4.2 Claims Procedure. The Committee shall consider all claims by
the Participant or any Beneficiary for payments under this Plan and shall
promptly notify the claimant of its action on any such claim. In the event of
any question regarding handling the claim, the Committee shall meet with the
claimant to discuss such questions and attempt to resolve any areas of possible
disagreement. If the claimants concerns remain unresolved after such meeting
with the Committee, the claimant may request the Board to review the matter in
dispute.

      Section 4.3 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 benefit
under the Plan shall be solely those if 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 its pursuant to the Plan shall 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 by shall be, and 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 to the extent that the Board of Directors of the Company, in
their absolute discretion, may otherwise determine.

                            ARTICLE V. MISCELLANEOUS

      Section 5.1 Employment Rights. Any payment under this Plan shall be
independent of, and in addition to, payments made under any other agreement or
under any qualified retirement plan which may be in force between the Company
and any Participant or Beneficiary, or any other compensation payable to
Participant or his Beneficiary by the Company. Neither this Plan or any Deferral
Form executed in connection herewith shall be construed as (i) constitution or
creating a contract of employment, (ii) restricting either the Company's right
to discharge Participant with or without cause of Participant's right to
terminate his employment, or (iii) creating any guarantee or representation as
to the amount of compensation to be paid to the Participant by the Company
during any period of regular employment or any period during which the
Participant is a director of the Company.

<PAGE>
     Section 5.2 Absence of Liability. Any and all liability created to
administer this Plan and the Trust or to provide any Participant or Beneficiary
with the benefits under this Plan shall be exclusively and solely that of the
Company. No member of the Committee, officer, director or employee, past,
present or future, of the Company shall have liability to any Participant or
Beneficiary, or to any other person or entity, to provide or pay such benefits,
such liability hereby being expressly and unconditionally denied.

      Section 5.3 Amendment or Termination. This Plan, may be altered, amended
or revoked by a written agreement signed by the Company and a Participant,
provided that if any amendment to the Plan or the adoption of the Plan by a
Participant would constitute a subsequent Participant deferral election that
would cause a Participant or Beneficiary to be in constructive receipt of past
deferred amounts, then such amendment or adoption will only be applicable with
respect to future deferrals. Notwithstanding the foregoing, the Company may
unilaterally amend the Plan to provide that no future deferrals may be made by
Participants and to conform the Plan to ERISA and Code requirements with respect
to unfunded plans of deferred compensation.

      The Plan may not be terminated during the period immediately preceding the
Company's Insolvency or inability to pay its debts as they mature if the
intended result would be to accelerate the payment of benefits to Participants
or Beneficiaries so that Deferral Accounts would be unavailable to the Company's
general creditors.

      Section 5.4 Company Not an Advisor. The Company offers this Plan to
Participants without assuming any responsibility or liability as an advisor or
consultant relative to tax or other aspects of this Plan or the payment of
benefits hereunder.

      Section 5.5 Plan Supercedes Prior Agreements. This Plan and the related
Adoption Agreement supercede and take the place of any prior Deferred Salary
Agreement which may have been entered into by the Participant and the Company,
but only with respect to any account balance not yet distributed to the
Participant thereunder.

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