Document:

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                                                                   EXHIBIT #10.9

                                ESCROW AGREEMENT

     This ESCROW AGREEMENT (the "Agreement"), dated September 30, 2004, is
made by and among INDEPENDENT BANK CORPORATION, a Michigan corporation ("IBC"),
THE EDWARD M. WALDER TRUST and THE PAUL M. WALDER TRUST (each, a "Shareholder"
and together, the "Shareholders"), and J.P. MORGAN TRUST COMPANY, N.A., a
national banking association (the "Escrow Agent").

                                    RECITALS

     A. The Shareholders are former shareholders of Mepco Insurance Premium
Financing, Inc., a former Illinois corporation ("Mepco-Illinois"). Pursuant to
an Agreement and Plan of Merger by and among the Shareholders, IBC, and certain
other parties, dated as of February 24, 2003, as amended (the "Merger
Agreement"), Mepco-Illinois was merged with and into Mepco Insurance Premium
Financing, Inc., a Michigan corporation formerly known as IBC Merger Co., Inc.
("Mepco-Michigan"). The merger was effective April 15, 2003. Mepco-Michigan is
wholly-owned by Independent Bank, a Michigan banking corporation and a
wholly-owned subsidiary of IBC.

     B. During the second quarter of 2004, IBC received an unsolicited,
anonymous letter regarding certain business practices at Mepco-Michigan
(occurring both before and after the merger described above). IBC processed this
letter in compliance with its internal Policy Regarding the Resolution of
Reports on the Company's Accounting, Internal Controls and Other Business
Practices. Under the direction of IBC's Audit Committee, IBC engaged special
legal counsel to investigate the matters raised in the anonymous letter (the
"Investigation"). As of the date of this Agreement, the Investigation is still
ongoing.

     C. As a result of the Investigation, IBC recorded a liability of Two
Million Seven Hundred Thousand Dollars ($2,700,000) during the quarter ended
June 30, 2004, with a corresponding charge to its earnings for potential third
party claims related to the matters that are the subject of the Investigation.
In response to the results of the Investigation received after June 30, 2004,
IBC may incur an additional liability (with a corresponding charge to earnings)
for such potential third party claims of up to Two Million Five Hundred Thousand
Dollars ($2,500,000) (the "Additional Liability").

     D. Pursuant to Article VIII of the Merger Agreement, each of the
Shareholders has or may have certain indemnification obligations to IBC with
respect to the losses IBC has incurred and will incur in connection with the
Investigation and the matters that are the subject of the Investigation.

     E. In order to fund and pay any liabilities incurred by IBC as a result of
matters pertaining to the substance of the Investigation in excess of the amount
accrued by IBC through June 30, 2004, and until the Investigation is completed
and any indemnification obligations of the Shareholders under the Merger
Agreement are finally resolved, the Shareholders have agreed to escrow shares of
IBC common stock, $1 par value per share ("IBC Stock"), with a value equal
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to at least Two Million Five Hundred Thousand Dollars ($2,500,000), to be held
by the Escrow Agent pursuant to the terms of this Agreement.

     NOW, THEREFORE, in consideration of the foregoing recitals, which shall
constitute a part of this Agreement, and the mutual promises contained in this
Agreement, and intending to be legally bound thereby, the parties agree as
follows:

     1. Appointment of Escrow Agent.  IBC and the Shareholders appoint the
Escrow Agent as an escrow agent to receive, hold, administer, and deliver the
Escrowed Shares (as defined below) in accordance with this Agreement, and the
Escrow Agent accepts such appointment, all subject to the terms and conditions
of this Agreement. The Escrow Agent agrees to hold the Escrowed Shares in such a
way that they will be available for distribution in accordance with the terms
and conditions of this Agreement. The Escrow Agent shall not distribute or
release any of the Escrowed Shares except in accordance with the express terms
and conditions of this Agreement.

     2. Deliveries to the Escrow Agent.

          (a) Initial Deliveries.  Simultaneously with the execution of this
Agreement, the Shareholders shall cause one or more stock certificates, each
registered in the name of either Shareholder or both Shareholders, and
collectively representing no fewer than a number of shares of IBC Stock with a
Market Value (as defined below) of at least Two Million Five Hundred Thousand
Dollars ($2,500,000) as of the date of this Agreement, to be delivered to the
Escrow Agent to be held in escrow pursuant to the terms and conditions of this
Agreement. The Shareholders shall identify for the Escrow Agent those shares of
IBC Stock that are registered or unregistered. Each such stock certificate shall
be accompanied by an assignment of stock in the form attached as Exhibit A, duly
executed by the Shareholder(s) in whose name(s) the certificate is registered,
delivering all of such Shareholder's interest in the shares of IBC Stock
represented by the certificate to the Escrow Agent. The shares of IBC Stock and
the assignments of stock delivered by the Shareholders to the Escrow Agent
pursuant to this Section 2 (including those delivered pursuant to subsections
(b) and (c) below) are collectively referred to as the "Escrowed Shares."

          (b) Subsequent Deliveries.  Subject to the conditions of this Section
2(b), at all times that this Agreement is in effect, the Shareholders shall
ensure that the Market Value of the Escrowed Shares is at least equal to the
difference between (i) Two Million Five Hundred Thousand Dollars ($2,500,000)
and (ii) the Market Value of all Escrowed Shares distributed pursuant to Section
4 below. Commencing October 1, 2004, if the Market Value of the Escrowed Shares
falls below ninety percent (90%) of such difference, the Shareholders shall be
jointly and severally obligated to immediately deposit additional shares of IBC
Stock with an aggregate Market Value equal to the total difference, accompanied
by duly executed assignments of stock in the form attached as Exhibit A, to the
Escrow Agent. Commencing October 1, 2004, if the Market Value of the Escrowed
Shares exceeds one hundred ten percent (110%) of such difference, IBC and the
Shareholders shall direct the Escrow Agent, under the procedures set forth in
Section 4(i) below, to distribute to the Shareholders Escrowed Shares with an
aggregate Market Value equal to the total excess. The Market Value of IBC Stock
shall be determined in accordance with Section 3 below.

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          (c) Ability to Swap.  Either Shareholder shall have the right to
exchange shares of IBC Stock that it owns with an equal number of shares of IBC
Stock then held by the Escrow Agent as Escrowed Shares. If either Shareholder
desires to exercise this right, it shall notify IBC, and IBC shall execute a
written agreement with such Shareholder to be provided to the Escrow Agent
pursuant to Section 4(i) below, effecting such exchange of shares.

          (d) Reduction of Additional Liability.  If IBC and the Shareholders
determine, from time to time, that the amount of the Additional Liability should
be reduced, they shall direct the Escrow Agent, under the procedures set forth
in Section 4(i) below, to distribute to the Shareholders Escrowed Shares with an
aggregate Market Value equal to the amount by which IBC and the Shareholders
agree that the Additional Liability should be reduced. The Market Value of IBC
Stock shall be determined in accordance with Section 3 below.

     3. Valuation of Escrowed Shares.  For all purposes of this Agreement
(including, without limitation, Section 5 below), the Escrowed Shares shall be
valued at their Market Value. The "Market Value" per share of IBC Stock shall be
the last reported sale price of a share of IBC Stock, as quoted on the NASDAQ
National Market System, for the trading day immediately preceding the date on
which the determination of Market Value is being made.

     4. Disbursement of Escrowed Shares.  Within five (5) business days of its
receipt of either (i) a written notice, signed by IBC and each Shareholder,
directing the distribution of all or any portion of the Escrowed Shares, or (ii)
a written notice from IBC (x) certifying, in good faith, that an event set forth
in Section 5 of this Agreement has occurred, (y) specifying the number of
Escrowed Shares to be distributed, and (z) directing the distribution of all or
any portion of the Escrowed Shares, the Escrow Agent shall distribute the
Escrowed Shares (or such portion of the Escrowed Shares set forth in such
notice) as directed by such written notice. The Escrow Agent shall first
distribute to IBC those Escrowed Shares that are unregistered, as identified by
the Shareholders under Section 2(a) above. No disbursement of any of the
Escrowed Shares shall (i) increase, decrease or otherwise alter or affect the
indemnification rights, if any, of IBC pursuant to the Merger Agreement, (ii)
increase, decrease or otherwise alter or affect the indemnification obligations,
if any, of the Shareholders pursuant to the Merger Agreement, (iii) constitute
an admission by IBC that the disbursement of Escrowed Shares to IBC constitutes
a satisfaction of the Shareholders indemnification obligations pursuant to the
Merger Agreement, (iv) constitute an admission by the Shareholders that IBC is
entitled to indemnification pursuant to the Merger Agreement, or (v) otherwise
be determinative or dispositive of any rights or obligations of IBC or the
Shareholders pursuant to the Merger Agreement.

     5. Events Allowing Distribution to IBC.  In addition to a distribution of
Escrowed Shares pursuant to a mutual written agreement with the Shareholders,
but subject to the occurrence of the conditions precedent set forth in Section 6
below, IBC shall have the right to have all or a portion of the Escrowed Shares
distributed to it upon the occurrence of either of the following events:

          (a) Required Escheat or Other Payments.  If IBC has received an
opinion of Varnum, Riddering, Schmidt & Howlett LLP ("VRS&H") that
Mepco-Michigan (or any affiliate of Mepco-Michigan) is legally required to
escheat or to pay any amount or amounts of money to any state or other
jurisdiction or to any person or entity (including, without limitation, refunds
of

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unearned premiums) as a direct or indirect result of any of the matters
pertaining to the substance of the Investigation, then IBC shall be entitled to
have distributed to it a number of Escrowed Shares with a Market Value equal to
the Net Payment Amount (defined below). In the event that Mepco-Michigan (or any
affiliate of Mepco-Michigan) does not actually escheat or pay any portion of the
Net Payment Amount to any such state, jurisdiction, person or entity, IBC shall
return to the Escrow Agent (or the Shareholders in the event that this Agreement
has terminated) the portion of the distributed Escrowed Shares representing the
unpaid portion of the Net Payment Amount. No such opinion of VRS&H shall
increase, decrease, alter, affect or otherwise be determinative or dispositive
of any rights or obligations of IBC or the Shareholders pursuant to the Merger
Agreement.

          (b) Third Party Demands.  If IBC has received a written demand from
any third party for the payment by Mepco-Michigan (or any affiliate of
Mepco-Michigan) of any amount or amounts of money as a result of any of the
matters pertaining to the substance of the Investigation (a "Third Party Claim")
that IBC believes, in good faith, is a valid demand, then IBC shall be entitled
to have distributed to it a number of Escrowed Shares with a Market Value equal
to the Net Payment Amount. IBC shall have no duty to challenge or otherwise
resist such third party demand or cause Mepco-Michigan (or any affiliate of
Mepco-Michigan) to challenge or otherwise resist such third party demand.
Notwithstanding the foregoing, IBC shall not be entitled to receive a
distribution of Escrowed Shares pursuant to this subsection (b) if the
Shareholders have assumed the defense of such Third Party Claim and are
continuing to assume such defense pursuant to the procedures set forth in the
Merger Agreement. In the event that Mepco-Michigan (or any affiliate of
Mepco-Michigan) does not actually pay any portion of the Net Payment Amount to
any such third party, IBC shall return to the Escrow Agent (or the Shareholders
in the event that this Agreement has terminated) the portion of the distributed
Escrowed Shares representing the unpaid portion of the Net Payment Amount. No
such determination by IBC with respect to any such Third Party Claim shall
increase, decrease, alter, affect or otherwise be determinative or dispositive
of any rights or obligations of IBC or the Shareholders pursuant to the Merger
Agreement.

          The "Net Payment Amount" shall equal the amount(s) to be escheated or
otherwise paid by Mepco-Michigan (or any affiliate of Mepco-Michigan), less the
tax benefit reasonably expected to be realized by IBC (or any of its affiliates)
arising from the deductibility of such payment(s). The number of Escrowed Shares
to be distributed to IBC shall equal the Net Payment Amount divided by the
Market Value as of the date IBC provides notice to the Escrow Agent.

     6. Conditions Precedent.  Notwithstanding Section 5 above, IBC shall have
no right to any distribution of Escrowed Shares pursuant to Section 5 above
until the following conditions precedent have been satisfied:

          (a) Threshold Payment.  Mepco-Michigan and its affiliates shall have
paid an aggregate of Two Million Seven Hundred Thousand Dollars ($2,700,000) in
satisfaction of the obligations described in Sections 5(a) and 5(b) above.

          (b) Notice to Shareholders.  IBC shall give written notice to each
Shareholder (i) not less than twenty (20) days before IBC provides a
certification to the Escrow Agent pursuant to Section 4(ii) above, and (ii) upon
IBC's receipt of any third party demand that IBC

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reasonably believes may result in a payment pursuant to Section 5(b) above.
After receiving any such notice, either Shareholder shall have the right to
provide IBC with any relevant information as to why the proposed payment is not
the obligation of Mepco-Michigan (or an affiliate of Mepco-Michigan); provided,
however, that subject to the conditions and requirements set forth in Sections
5(a) and 5(b) above, the determination to tender such payment shall be at the
sole discretion of IBC. No such determination by IBC shall increase, decrease,
alter, affect or otherwise be determinative or dispositive of any rights or
obligations of IBC or the Shareholders pursuant to the Merger Agreement.

     7. Cash Payment in Lieu of Distribution of Shares.  If the Shareholders
receive a notice from IBC pursuant to Section 6(b) above, the Shareholders shall
have the right to pay to IBC an amount in cash equal to the Net Payment Amount.
If IBC receives a cash payment from the Shareholders (or either Shareholder) in
the full amount of the Net Payment Amount, then the certification provided by
IBC to the Escrow Agent pursuant to Section 4(ii) above shall direct the
distribution to the Shareholders of that number of Escrowed Shares equal to the
Net Payment Amount divided by the Market Value of the Escrowed Shares on the
date of payment of such cash by the Shareholders (or either Shareholder) under
this Section 7; provided, however, that if the Shareholders have breached any
obligation pursuant to Section 2(b) above, IBC shall have the right to reduce
the number of shares of IBC Stock it directs the Escrow Agent to distribute to
the Shareholders pursuant to this Section 7 accordingly.

     8. No Limit on Distribution of Escrowed Shares.  The provision by IBC of a
certification to the Escrow Agent pursuant to Section 4(ii) above that an event
set forth in Section 5(a) or 5(b) has occurred shall not in any way limit the
ability of IBC to provide a subsequent certification to the Escrow Agent
pursuant to Section 4(ii). It is the intent of the parties that IBC shall have
the right to have all of the Escrowed Shares distributed to it if permissible
pursuant to the terms set forth in this Agreement.

     9. Rights With Respect to Escrowed Shares.  Until such time (if any) as
Escrowed Shares are distributed to IBC or any party other than a Shareholder
pursuant to Section 4 above, the delivery of the Escrowed Shares by the
Shareholders to the Escrow Agent shall not affect (i) the right of the
Shareholders to exercise their right to vote or give proxies with respect to any
Escrowed Shares, (ii) the right of the Shareholders to receive dividends and/or
other distributions with respect to the Escrowed Shares, or (iii) any other
rights of the Shareholders with respect to such Escrowed Shares, except for the
right and ability of a Shareholder to transfer any interest in any such Escrowed
Shares. Each Shareholder agrees that he shall not transfer or attempt to
transfer any Escrowed Shares or any interest in any Escrowed Shares or represent
to any third party that he owns any Escrowed Shares free and clear of all liens,
encumbrances, and claims of any kind.

     10. Representations and Warranties of the Shareholders.  To induce IBC to
enter into this Agreement, each Shareholder jointly and severally represents and
warrants to IBC as follows:

          (a) Title to Shares.  At the time the Escrowed Shares are delivered to
the Escrow Agent pursuant to Section 2 of this Agreement, the Escrowed Shares
are and will be owned of record and beneficially by one of the Shareholders,
free and clear of all liens, encumbrances, and claims of any kind.

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          (b) Validity of Stock Powers.  Each blank stock power delivered by the
Shareholders pursuant to Section 2 of this Agreement constitutes a legal, valid,
and binding obligation of the Shareholder executing such stock power and is
enforceable against such Shareholder in accordance with its terms.

     11. Terms of Agency.

          (a) Limited Liability.  The Escrow Agent shall not be liable for any
damages or have any obligations other than the duties prescribed in this
Agreement in carrying out or executing the purposes and intent of this Escrow
Agreement; provided, however, that nothing in this Agreement shall relieve the
Escrow Agent from liability arising out of its own willful misconduct or gross
negligence. Anything in this Escrow Agreement to the contrary notwithstanding,
in no event shall the Escrow Agent be liable for special, indirect or
consequential loss or damage of any kind whatsoever (including but not limited
to lost profits), even if the Escrow Agent has been advised of the likelihood of
such loss or damage and regardless of the form of action. The Escrow Agent's
duties and obligations under this Agreement shall be administrative and not
discretionary. The Escrow Agent shall not be liable to any of IBC, any
Shareholder, or any third party as a result of any action or omission taken or
made by the Escrow Agent pursuant to this Agreement in good faith. If any
questions arise regarding the Escrow Agent's duties and obligations pursuant to
this Agreement, the Escrow Agent may consult its legal counsel and rely without
liability upon written opinions given to it by such counsel; provided, however,
that, in such event, the Escrow Agent has acted in good faith.

          (b) Resignation.  The Escrow Agent may resign at any time by giving
IBC and the Shareholders at least thirty (30) days' prior written notice. In
such event, the Escrow Agent shall deliver any Escrowed Shares then in its
possession to a successor escrow agent, which shall be mutually agreeable to the
parties to this Agreement. The resignation of the Escrow Agent shall not be
effective until a successor escrow agent agrees to act as the "Escrow Agent"
under this Agreement; provided, however, that if no successor escrow agent is
appointed and acting within thirty (30) days after the Escrow Agent gives notice
of resignation to IBC and the Shareholders, the Escrow Agent may deliver the
Escrowed Shares, at the other parties expense, into a court of competent
jurisdiction.

          (c) Confidentiality.  The Escrow Agent agrees, for the duration of
this Agreement and thereafter, to maintain the confidentiality of this Agreement
and the matters set forth in this Agreement. If the Escrow Agent is served with
a subpoena seeking the discovery of information relating in any way to this
Agreement, the Escrow Agent agrees to notify IBC and each Shareholder within
three (3) days of its receipt of the subpoena that it has been served with the
subpoena. The Escrow Agent agrees to cooperate with the parties if any one or
more party seeks to obtain a protective order preventing the disclosure of
information relating in any way to this Agreement, provided that such
cooperation shall be at the shared expense of IBC and the Shareholders.

          (d) Compensation and Indemnification.  The Escrow Agent shall be
compensated in accordance with attached Schedule A. IBC shall pay all
compensation due to the Escrow Agent pursuant to this Agreement. IBC and the
Shareholders shall jointly and severally indemnify, defend and save harmless the
Escrow Agent and its directors, officers, agents and

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employees (the "indemnitees") from and against any and all loss, liability or
expense (including the fees and expenses of in house or outside counsel and
experts and their staffs and all expense of document location, duplication and
shipment) arising out of or in connection with (i) the Escrow Agent's execution
and performance of this Escrow Agreement, except in the case of any indemnitee
to the extent that such loss, liability or expense is due to finally adjudicated
to have been primarily caused by the gross negligence or willful misconduct of
such indemnitee, or (ii) its following any instructions or other directions from
the IBC or the Shareholders, except to the extent that its following any such
instruction or direction is expressly forbidden by the terms hereof. The parties
hereto acknowledge that the foregoing indemnities shall survive the resignation
or removal of the Escrow Agent or the termination of this Escrow Agreement.

     12. Termination.  This Agreement shall terminate upon the earliest of (i)
the distribution of all of the Escrowed Shares in accordance with the terms of
this Agreement, (ii) the final determination of the Shareholders'
indemnification obligations (if any) in connection with the matters that are the
subject of the Investigation, and (iii) the final determination that the
Shareholders' indemnification obligations (if any) in connection with the
matters that are subject of the Investigation are less than Two Million Seven
Hundred Thousand Dollars ($2,700,000). For the purpose of the preceding
sentence, the Shareholders' indemnification obligations shall be deemed "finally
determined" only upon an agreement between IBC and the Shareholders'
Representative (as defined in the Merger Agreement) or the entry of a final,
nonappealable order of a court of competent jurisdiction. Upon termination of
this Agreement, the Escrow Agent shall distribute any remaining Escrowed Shares
to the Shareholders.

     13. Trustee Exculpation.  This Agreement is executed by Jeffrey A. Hechtman
(the "Trustee"), not personally, but solely as trustee of the Edward M. Walder
Trust and the Paul M. Walder Trust, in the exercise of the power and authority
conferred upon and vested in him as such trustee, and it is expressly understood
and agreed that nothing in this Agreement shall be construed as creating any
liability on the Trustee personally to perform any express or implied covenant,
condition, or obligation of this Agreement, all such liability, if any, being
expressly waived by every person or entity now or hereafter claiming any right,
title, or interest under this Agreement.

     14. Cooperation.  At any time and from time to time after the date of this
Agreement, IBC and the Shareholders shall each, upon the request of any party,
perform, execute, acknowledge, and deliver such further acts, assignments,
transfers, conveyances, and assurances as may be reasonably required for the
purpose of carrying out this Agreement.

     15. Successors and Assigns.  This Agreement and the rights of the parties
pursuant to this Agreement may not be assigned (except by operation of law) and
shall be binding upon and shall inure to the benefit of the parties, the
successors of IBC, and the heirs and legal representatives of the Shareholders
(including, without limitation, successor trustees).

     16. Entire Agreement.  This Agreement sets forth the entire understanding
of the parties with respect to the transactions contemplated hereby. It shall
not be amended or modified except by a written instrument duly executed by each
of the parties.

     17. Counterparts.  This Agreement may be executed in any number of
counterparts, and any party may execute any such counterpart, each of which when
executed and delivered

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shall be deemed to be an original and all of which counterparts taken together
shall constitute but one and the same instrument. This Agreement shall become
binding when all of the parties have executed and delivered one or more
counterparts.

     18. Notices.  Any notice or other communication that is required or
permitted pursuant to this Agreement shall be in writing and shall be deemed
given if delivered personally or sent by fax (with confirmation of receipt), by
registered or certified mail, postage prepaid, or by recognized courier service,
as follows:

<TABLE>
<S>                                         <C>
     If to IBC, to:                         with a required copy to:

     Independent Bank Corporation           Varnum, Riddering, Schmidt & Howlett LLP
     230 West Main Street                   333 Bridge Street, N.W.
     P.O. Box 491                           P.O. Box 352
     Ionia, MI 48846                        Grand Rapids, MI 49501-0352
     Attn: Robert N. Shuster                Attn: Michael G. Wooldridge
     (Facsimile: 616-527-5833)              (Facsimile: 616-336-7000)

     If to either Shareholder, to:          with a required copy to:

     Jeffrey A. Hechtman, Trustee           Horwood Marcus & Berk
     Horwood Marcus & Berk                  180 North LaSalle Street, Suite 3700
     180 North LaSalle Street, Suite 3700   Chicago, IL 60601
     Chicago, IL 60601                      Attention: Jeffrey A. Hechtman
     (Facsimile: 312-606-3232)              (Facsimile: 312-606-3232)

     If to the Escrow Agent, to:            with a required copy to:

     611 Woodward Avenue                    227 West Monroe
     Mail Suite MI1-8110                    26th Floor
     Detroit, MI 48826                      Chicago, IL 60606
     Attention: Tammy Davis                 Attention: Christopher Holly, Esq.
     (Facsimile: 313-225-3420)              (Facsimile: 312-267-5213)
</TABLE>

or to such other address as the person to whom notice is to be given may have
specified in a notice duly given to the sender as provided in this Agreement.
Such notice or other communication shall be deemed to have been given as of the
date so delivered, faxed, mailed, or dispatched and, if given by any other
means, shall be deemed given only when actually received by the addressee.

     19. Governing Law.  This Agreement shall be governed by and construed,
interpreted, and enforced in accordance with the laws of Michigan, excluding its
choice of law principles.

     20. Mutual Drafting.  This Agreement is the mutual product of IBC and the
Shareholders, and each provision of this Agreement has been subject to the
mutual consultation, negotiation, and agreement of each of them, and shall not
be construed for or against any of them.

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     21. Further Representation.  Each party to this Agreement acknowledges and
represents that it has been represented by its own legal counsel in connection
with the transactions contemplated by this Agreement, with the opportunity to
seek advice as to its legal rights from such counsel.

     22. Severability.  If any provision of this Agreement or the application of
any provision of this Agreement to any person or circumstance is held invalid or
unenforceable in any jurisdiction, the remainder of this Agreement, and the
application of such provision to such person or circumstance in any other
jurisdiction or to other persons or circumstances in any jurisdiction, shall not
be affected thereby, and to this end the provisions of this Agreement shall be
severable.

     23. Limited Nature of Agreement.  IBC and each of the Shareholders
acknowledge and agree that this Agreement shall have no effect on any
indemnification or other obligations of either Shareholder pursuant to the
Merger Agreement or otherwise nor shall it have any effect on any rights of IBC
pursuant to the Merger Agreement or otherwise. This Agreement shall not be
construed in any way to constitute a waiver by IBC of any of such rights, nor an
admission by either Shareholder of any of such obligations. Without limiting the
generality of the foregoing, this Agreement shall not be construed as a waiver
by IBC of any right to be indemnified for any payments made by IBC or any of its
affiliates pursuant to Section 6(a) above, or the right of the Shareholders to
contest such right of indemnification. In addition, if the aggregate Market
Value of Escrowed Shares distributed (other than to a Shareholder) pursuant to
this Agreement, together with any cash paid by either Shareholder pursuant to
Section 7 above, exceeds the actual liability (if any) of the Shareholders to
IBC pursuant to the Merger Agreement, IBC shall be obligated to repay such
excess amounts (if any) to the Shareholders.

     24. Right of Subrogation.  If IBC (or any of its affiliates) pays any
amounts pursuant to Section 5(a) or (b) above, and such amounts are funded by
either a distribution of Escrowed Shares to IBC pursuant to Section 4 or a cash
payment by either or both of the Shareholders pursuant to Section 7, then each
Shareholder shall be subrogated to all rights and remedies belonging to IBC (and
any of its affiliates) against each such payee.

                         [SIGNATURES BEGIN ON NEXT PAGE]

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     IN WITNESS WHEREOF, the parties have executed this Escrow Agreement as of
the date first written above.

                                        INDEPENDENT BANK CORPORATION

                                        By:
                                            ------------------------------------
                                        Its:
                                             -----------------------------------

                                        THE EDWARD M. WALDER TRUST

                                        By:
                                            ------------------------------------
                                            Jeffrey A. Hechtman
                                        Its: Trustee

                                        THE PAUL M. WALDER TRUST

                                        By:
                                            ------------------------------------
                                            Jeffrey A. Hechtman
                                        Its: Trustee

                                        ESCROW AGENT:
                                        J.P. MORGAN TRUST COMPANY, N.A.

                                        By:
                                            ------------------------------------
                                        Its:
                                             -----------------------------------

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                                    EXHIBIT A

                               ASSIGNMENT OF STOCK

     FOR VALUE RECEIVED, and pursuant and subject to the terms and conditions of
that certain Escrow Agreement by and among the undersigned; Independent Bank
Corporation, a Michigan corporation ("IBC"); and certain other parties, dated of
even date with this Assignment of Stock (the "Escrow Agreement"), the
undersigned does hereby sell, assign, and transfer unto Escrow Agent (as defined
in the Escrow Agreement) all of his right, title, and interest in and to up to
__________ shares of common stock of IBC, evidenced by Certificate No. _____
(the "Shares").

     The undersigned hereby grants an irrevocable power of attorney, with full
power of substitution, to the Escrow Agent to transfer, from time to time, and
pursuant to one or more instruments of transfer, all or any portion of the
Shares to IBC, pursuant to the terms and conditions of the Escrow Agreement.

     The undersigned hereby grants an irrevocable power of attorney, with full
power of substitution, to IBC, its transfer agent, and their respective
successors and assigns to transfer, or cause to be transferred, all of the
Shares on the stock transfer records for IBC.

Dated: September ___, 2004
                                        ----------------------------------------

                                       A-1
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                                 (JPMORGAN LOGO)

                                   Schedule A

                        Fees for Services as Escrow Agent

   IN CONNECTION WITH THE AGREEMENT BY AND AMONG INDEPENDENT BANK CORPORATION,
             THE EDWARD M. WALDER TRUST AND THE PAUL M. WALDER TRUST

     ACCEPTANCE FEE                                                       $1,500

     The acceptance fee covers document review, acceptance and set-up of the
     agreement, and other preparatory work in connection with establishment of
     the account for each transaction.

     ANNUAL ADMINISTRATIVE FEE                                            $1,500

     The annual administrative fee covers our usual and customary ministerial
     duties, including record keeping, document compliance and such other duties
     and responsibilities expressly set forth in the governing documents for
     each transaction.

     OUT OF POCKET EXPENSES

     Any out of pocket expenses related to closing this transaction will be
     billed at cost.

NOTES:

The above acceptance fees are due upon closing of the transaction. All other
fees are payable annually in advance, without prorating for partial year.

Please note that our willingness to act in the capacities specified above and
the fees designated in this proposal are indicative and based upon our
understanding of the transaction. We reserve the right to revise this proposal
should any material aspect of the transaction differ from our understanding.
Also, our acceptance of the above contracts and duties is subject to our usual
internal review, document review and the receipt of appropriate immunities and
indemnities.

To help the government fight the funding of terrorism and money laundering
activities, Federal law requires all financial institutions to obtain, verify,
and record information that identifies each person who opens an account. When
you open an account, we will ask for information that will allow us to identify
you.

         J.P. MORGAN TRUST COMPANY, N.A. - Institutional Trust Services
                    - 611 Woodward Avenue, Detroit, MI 48226
              Telephone: (313) 225-2211 - Facsimile: (313) 225-3420
                           Tammy.L.Davis@jpmorgan.com<PAGE>

                                                                    EXHIBIT 10.1

                         EXECUTIVE EMPLOYMENT AGREEMENT

      This Executive Employment Agreement (this "Agreement") is entered into to
be effective as of January 11, 2005 by and among FC Banc Corp., a bank holding
company ("FC Banc"), The Farmers Citizens Bank, an Ohio-chartered, FDIC-insured
bank with its main office in Bucyrus, Ohio (the "Bank") (collectively, the
"Employer"), and Coleman Clougherty, a natural person ("Employee"). Employer and
Employee are sometimes collectively referred to herein as the "Parties" and each
individually as a "Party."

                                    RECITALS

      Employee desires to be employed by Employer to serve as the President of
FC Banc and Chief Executive Officer of the Bank, and Employer desires for
Employee to so serve, subject to the terms and conditions hereinafter set forth.

                             STATEMENT OF AGREEMENT

      NOW, THEREFORE, in consideration of the premises and mutual covenants and
agreements hereinafter set forth, the Parties hereby agree as follows:

      1. EMPLOYMENT. FC Banc hereby employs Employee as its President and the
Bank hereby employs Employee as its Chief Executive Officer, or in each case as
an officer with a title of equal or higher ranking as may be determined by
Employer from time to time, and Employee hereby accepts such employment, for the
period of time and upon the terms and conditions hereinafter set forth. Employee
shall report directly to the respective Boards of Directors of Employer, or to
such other persons or committees designated from time to time by such Boards of
Directors, and shall perform such duties and responsibilities consistent with
his position (which duties and responsibilities shall include those set forth in
Exhibit A) as shall be assigned to him by the Boards of Directors (or any
committee(s) thereof) of Employer, or either of them, from time to time. If and
when nominated and elected to the respective Boards of Directors of Employer
during the term of this Agreement, Employee shall serve as a director thereof;
provided further that Employee unconditionally agrees to resign as a director of
Employer and all affiliates of Employer immediately upon the termination (for
any reason) of this Agreement. Employee shall comply with Ohio Revised Code
Section 1115.03 with regard to qualification as a director. Employee shall not
be entitled to receive any compensation or benefits in connection with or
resulting from such service, including service on any committee of directors.

      2. STANDARD OF PERFORMANCE. Employee shall faithfully perform the duties
and responsibilities assigned to him pursuant to this Agreement. Employee agrees
to abide by Employer's rules, regulations, policies and practices as they are
presently in force and as they may be revoked, adopted or modified at any time
and from time to time during the term of this Agreement.

      3. TIME DEVOTED TO EMPLOYER. Employee shall devote full time and effort
exclusively on behalf of Employer and shall competently, diligently and
effectively discharge

<PAGE>

Employee's duties hereunder, except that to the extent not prohibited by Section
11, Employee shall be permitted to serve on the Board of Directors of any other
business organization or to serve on the Board of Trustees of any charitable
organization (but only in each case to the extent specifically approved in
advance by Employer's Boards of Directors, or either of them), and Employee
shall not be prohibited from engaging in such personal, charitable or other
non-employment activities as do not materially interfere with Employee's full
time employment hereunder and which do not violate the other provisions of this
Agreement. The determination by Employer's Boards of Directors (or either of
them) that any such personal, charitable or other non-employment activities
materially interfere with Employee's full time employment hereunder, or violate
any other provisions of this Agreement, shall be conclusive and binding upon
Employee.

      4. COMPENSATION. As compensation for all services rendered to Employer by
Employee pursuant to this Agreement, in whatever capacity rendered, during the
term of this Agreement, the Bank shall pay to Employee such base compensation
(the "Base Compensation") as shall be determined from time to time by the Bank's
Board of Directors or by the Compensation Committee thereof, in its sole
discretion, plus the incentive compensation calculated in accordance with
Exhibit B attached hereto and incorporated herein by this reference (the
"Incentive Compensation") (the Base Compensation and the Incentive Compensation
hereinafter are referred to collectively as the "Compensation"). The Base
Compensation shall be payable to Employee in accordance with the then current
payment policies of the Bank for its employees. During the twelve (12) month
period ending December 31, 2005, the Base Compensation shall be $110,000 per
annum, and the Bank's Board of Directors (or the Compensation Committee thereof,
as appropriate) shall review and consider adjustments to Employee's Base
Compensation not less frequently than once annually thereafter. The Parties
understand and agree that the obligation to pay the Compensation to Employee for
all services rendered by him to Employer pursuant to this Agreement (as well as
the obligation to pay business expenses and to provide benefits under Sections 5
and 6 hereof, other than the granting of the Options under Section 6(C)) is the
sole obligation of the Bank, and that FC Banc shall not have any obligation to
pay any Compensation, or to provide such other benefits (other than the granting
of the Options under Section 6(C)), to Employee.

      5. BUSINESS EXPENSES. The Bank shall pay or cause to be paid directly, or
reimburse Employee for, all legitimate business expenses to the extent such
expenses are paid or incurred by Employee during the term of this Agreement in
accordance with the policies of Employer in effect from time to time and to the
extent such expenses are reasonable and necessary to the conduct by Employee of
Employer's business. The determination of whether any specific business expenses
are legitimate, reasonable and necessary, and in accordance with the policies of
Employer, shall be made in the sole discretion of the Bank.

      6. BENEFITS. During the term of this Agreement, and in addition to the
Compensation to be paid pursuant to Section 4 of this Agreement, Employee shall
be entitled to receive the following benefits:

            (A) The benefits which are made available by the Bank generally to
its full time employees from time to time, which presently are the benefits
described in the Bank's

                                       2
<PAGE>

"Schedule of Benefits" previously delivered to Employee; provided further, that
the Bank also shall pay on Employee's behalf Employee's portion of all health
insurance premiums payable under Employer's health insurance benefit plan as in
effect from time to time. Employee understands and agrees that the Bank may
amend or supersede its Schedule of Benefits from time to time and at any time,
and that during the term of this Agreement Employee shall be entitled only to
such benefits as are described in the Bank's then current "Schedule of Benefits"
as so amended or superseded from time to time.

            (B) Beginning January 1, 2003, an automobile allowance of Eight
Hundred Fifty ($850) Dollars per month.

            (C) Stock options as described on Exhibit C attached hereto and
incorporated herein by this reference (the "Options") which will be subject to
and governed by the provisions of FC Banc Corp. 1997 Stock Option and Incentive
Plan (the "Stock Option Plan"), as the same may be amended from time to time;
provided further that the parties understand and agree that the grant of the
Options shall be subject to the authorization and approval of the committee of
FC Banc's Board of Directors which is authorized to make such awards pursuant to
the Stock Option Plan.

      7. TERM. This Agreement shall become effective on the date first written
above and shall continue in force until terminated in accordance with Section 8.
Employee's employment with Employer pursuant to this Agreement shall terminate
concurrently with the termination of this Agreement, and this Agreement shall
terminate concurrently with the termination of Employee's employment hereunder.

      8. TERMINATION.

            (A) This Agreement shall terminate automatically upon the death or
permanent disability of Employee; provided, however, that, in the event of the
permanent disability of Employee, this Agreement shall not terminate until
Employee has received all material benefits for sick or vacation leave to which
Employee is entitled under this Agreement. For purposes of this Agreement,
"permanent disability" shall have the same meaning as it has in the Bank's long
term disability policy then in effect.

            (B) This Agreement may terminate at any time upon the mutual
agreement of Employer and Employee.

            (C) Employer may terminate this Agreement at any time, for Cause,
immediately upon written notice of termination to Employee, unless a later
termination date is specified in the notice. For the purposes of this Agreement,
a termination for "Cause" shall include termination by reason of Employee's
personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty,
failure to perform stated duties, violation of any law, rule, or regulation
(other than traffic violations or similar offenses) or cease-and-desist order,
engagement in activities or conduct injurious to the reputation or business of
Employer, or

                                       3
<PAGE>

material breach of any provision of this Agreement; provided, however, that
during the twelve (12) month period following a Change of Control (as defined in
Section 9), "Cause" for termination shall exist only if Employee (1) is
convicted of, or pleads guilty to, a felony or any act amounting to
embezzlement, fraud, or theft or involving moral turpitude (whether or not
against Employer or another employee); (2) commits a breach of a fiduciary duty
involving personal gain or profit; (3) willfully fails to perform his stated
duties; (4) willfully violates any law, rule or regulation (other than traffic
violations or similar offenses) or a cease-and-desist order; (5) willfully
engages in conduct demonstrably and materially injurious to the goodwill and
reputation of Employer; or (6) commits a material breach of any provision of
this Agreement and does not cure such breach within ten (10) days after written
notice of such breach is provided to him by Employer.

            (D) Employer may terminate this Agreement at any time, without
Cause, immediately upon written notice of termination to Employee, unless a
later termination date is specified in the notice.

            (E) Employee may terminate this Agreement (in the absence of Cause)
at any time upon thirty (30) days written notice to Employer. Employer may, in
its sole discretion, place Employee on administrative leave (and bar Employee
from the premises of Employer) during the pendency of the thirty (30) day notice
period.

            (F) Employee may terminate this Agreement (in the absence of Cause)
for Good Reason (as defined in Section 9) at any time within the twelve (12)
month period following the occurrence of a Change of Control (as defined in
Section 9) upon ten (10) days written notice to Employer. Employer may, in its
sole discretion, place Employee on administrative leave (and bar Employee from
the premises of Employer) during the pendency of the ten (10) day notice period.
Any notice delivered by Employee pursuant to this Section 8(F) must reference
this Section 8(F) and state with specificity the nature of the "Good Reason"
claimed by Employee.

      9. CHANGE OF CONTROL. (A) A Change of Control shall be deemed to have
occurred if there is:

                  (1) A purchase or other acquisition by any person, entity or
            group of persons (within the meaning of section 13(d) or 14(d) of
            the Securities Exchange Act of 1934, as amended ("the Exchange Act")
            or any comparable successor provisions), directly or indirectly,
            which results in the beneficial ownership (within the meaning of
            Rule 13d-3 promulgated under the Exchange Act) of such person,
            entity or group of persons equaling 50% or more of the combined
            voting power of the then outstanding voting securities of FC Banc
            entitled to vote generally in the election of directors ("Voting
            Securities"); excluding, however, any acquisition (i) by FC Banc or
            any person controlled by FC Banc or the Board of Directors of FC
            Banc, (ii) by any employee benefit plan or related trust sponsored
            or maintained by FC Banc, (iii) by Employee or (iv) by another group
            including Employee, but only if Employee and other executives of FC
            Banc control such group;

                                       4
<PAGE>

                  (2) A change, within any rolling two-year period beginning
            with any date on or after the effective date of this Agreement, in
            the composition of the Board such that the individuals who
            constitute the Board (the "Incumbent Board") at the beginning of
            such rolling period cease for any reason to constitute at least a
            majority of the Board; provided, however, that for purposes of this
            definition, any individual who becomes a member of the Board after
            the effective date of this Agreement, whose election, or nomination
            for election, by FC Banc's security-holders was approved by a vote
            of at least a majority of those individuals who are members of the
            Board and who were also members of the Incumbent Board shall be
            considered as though such individual were a member of the Incumbent
            Board; and provided, further however, that any such individual whose
            initial assumption of office occurs as a result of or in connection
            with either an actual or threatened election contest (as such terms
            are used in Rule 14a-11 of Regulation 14A promulgated under the
            Exchange Act) or other actual or threatened solicitation of proxies
            or consents by or on behalf of any person other than the Board shall
            not be so considered as a member of the Incumbent Board;

                  (3) A merger, reorganization or consolidation to which FC Banc
            is a party or a sale or other disposition of all or substantially
            all of the assets of FC Banc (each, a "Corporate Transaction");
            excluding however, any Corporate Transaction pursuant to which (i)
            persons who were security holders of FC Banc immediately prior to
            such Corporate Transaction do (solely because of their Voting
            Securities owned immediately prior to Corporate Transaction) own
            immediately thereafter more than 50 percent of the combined voting
            power entitled to vote in the election of directors of the then
            outstanding securities or the company surviving the Corporate
            Transaction and (ii) individuals who constitute the Incumbent Board
            will immediately after the consummation of the Corporate Transaction
            constitute at least a majority of the members of the board of
            directors of the company surviving such Corporate Transaction; or

                  (4) Approval by the security-holders of FC Banc of a plan of
            complete liquidation or dissolution of FC Banc -

provided however, that notwithstanding anything herein to the contrary, it is
the intent of the Parties that any merger or other form of combination, whether
by acquisition of securities or sale of assets or otherwise that is declared by
the Incumbent Board to be a combination "of equals" pursuant to which persons
who comprise the Incumbent Board immediately before such combination will
comprise not less than 50 percent of the Board of Directors of the resulting
entity after consummation of the combination shall not be a "Change of Control".

            (B) "Good Reason" shall exist, in the absence of Cause, if, during
the twelve month period following the occurrence of any Change of Control:

            (1) Employer commits a material breach of any provision of this
            Agreement and

                                        5
<PAGE>

            does not cure such breach within ten (10) days after written notice
            of such breach is provided to Employer by Employee;

            (2) Employee is assigned, without Executive's consent, duties or
            responsibility materially inconsistent with the duties and
            responsibilities contemplated by Exhibit A of this Agreement;

            (3) There is a reduction or material delay in payment of Employee's
            Base Compensation as in effect on the date of the Change of Control;

            (4) Employee is required to reside or travel outside of the Bucyrus,
            Ohio area, other than on travel reasonably required to carry out
            Employee's obligations under this Agreement.

      10. POST-TERMINATION COMPENSATION AND BENEFITS.

            (A) In the event that this Agreement is terminated pursuant to
Section 8(A) (by reason of Employee's death or disability), Employee shall be
entitled to receive and the Bank shall cause to be paid to Employee any earned
but unpaid Base Compensation through the effective date of termination. Such
payment(s) shall be in addition to any benefits that Employee (or in the case of
Employee's death, Employee's beneficiaries) shall be entitled to under any
policy of life or disability insurance, if any, then maintained by the Bank for
Employee's benefit under Section 6(A).

            (B) In the event that this Agreement is terminated pursuant to
Section 8(B) (by mutual agreement of the Parties), pursuant to Section 8(C) (by
Employer for Cause), or pursuant to Section 8(E) (by Employee), Employee shall
be entitled to receive and the Bank shall cause to be paid to Employee any
earned but unpaid Base Compensation through the effective date of termination.

            (C) (1) In the event that this Agreement is terminated pursuant to
Section 8(D) (by Employer without Cause), other than during the twelve (12)
months following a Change of Control, Employee shall be entitled to receive and
the Bank shall cause to be paid to Employee any earned but unpaid Base
Compensation through the effective date of termination and an amount equal to
twelve (12) months of Employee's then current Base Compensation (the "Severance
Amount"). Subject to all the terms and conditions of this Agreement, the
Severance Amount shall be payable by the Bank in one lump sum payment within
sixty (60) days after the date of termination of this Agreement.

            (2) In the event that this Agreement is terminated pursuant to
Section 8(D) (by Employer without Cause) during the twelve (12) months following
a Change of Control, or pursuant to Section 8(F) (by Employee for Good Reason
during the twelve (12) months following a Change of Control), Employee shall be
entitled to receive and the Bank shall cause to be paid to Employee any earned
but unpaid Base Compensation through the effective date of termination and an
amount equal to twenty four (24) months of Employee's then current Base

                                       6
<PAGE>

Compensation (the "Change of Control Severance Amount"). Subject to all the
terms and conditions of this Agreement, the Change of Control Severance Amount
shall be payable by the Bank in one lump sum payment within sixty (60) days
after the date of termination of this Agreement.

            (D) In the event that this Agreement is terminated pursuant to any
provision of Section 8 (other than pursuant to Section 8(C) (by Employer for
Cause)), Employee also shall be entitled to receive continued benefits under
Section 6(A) and 6(B) through the 120th day after such termination. In the event
that this Agreement is terminated pursuant to Section 8(C) (by Employer for
Cause), Employee shall not be entitled to receive continued benefits under
Section 6 after the date of termination, except as may be expressly required by
law or under the terms of any benefit plans in which Employee participates
pursuant to Section 6(A).

            (E) In the event that this Agreement is terminated pursuant to any
provision of Section 8, Employee shall be entitled to receive any unpaid
Incentive Compensation only if and to the extent provided for in Exhibit B.

            (F) Notwithstanding the foregoing provisions of this Section 10, no
amount shall be payable under this Section 10 other than any earned but unpaid
Base Compensation through the date of termination unless Employee (1) executes a
general release (in form and containing provisions reasonably required by
Employer) (i) releasing all known and unknown claims Employee may have against
Employer or any persons affiliated with Employer and (ii) agreeing not to
prosecute any legal actions or other proceeding based upon any such claims; (2)
immediately upon termination, resigns as a director of Employer and of all
affiliates thereof; and (3) complies fully with Sections 11 and 12 hereof.
Additionally, notwithstanding the foregoing provisions of this Section 10, no
amount shall be payable under this Section 10 other than any earned but unpaid
Base Compensation through the date of termination in the event that Employer is
prohibited from paying such amount without regulatory approval, unless and until
such approval is received.

            (G) Notwithstanding anything in this Agreement or otherwise to the
contrary, in the event Employee is suspended and/or temporarily prohibited from
participating in the conduct of the affairs of Employer by a notice served under
Section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act, 12 U.S.C.
Section 1818(e)(3) and (g)(1), Employer's obligations under this Agreement shall
be suspended as of the date of service thereof unless stayed by appropriate
proceedings. If the charges contained in such notice are subsequently dismissed,
Employer will (i) pay to Employee all or part of the compensation withheld while
its obligations under this Agreement were suspended, and (ii) reinstate (in
whole or part) any of its obligations which were suspended.

                                       7
<PAGE>

            (H) Notwithstanding anything in this Agreement or otherwise to the
contrary, if the Bank is in default (as defined in Section 3(x)(1) of the
Federal Deposit Insurance Act, 12 U.S.C. Section 1813(x)(1)), all obligations
under this Agreement shall terminate as of the date of default, but this
subparagraph shall not affect any vested rights of Employee or Employer under
this Agreement.

            (I) Notwithstanding anything in this Agreement or otherwise to the
contrary, all obligations under this Agreement shall be terminated, except to
the extent determined that continuation of this Agreement is necessary to the
continued operation of Employer, (i) by the Director of the Federal Deposit
Insurance Corporation or his or her designee (the "Director"), at the time the
Federal Deposit Insurance Corporation enters into an agreement to provide
assistance to or on behalf of the Bank under the authority contained in Section
13(c) of the Federal Deposit Insurance Act, or (ii) by the Director at the time
the Director approves a supervisory merger to resolve problems related to
operation of the Bank or when the Bank is determined by the Director to be in an
unsafe or unsound condition; provided, however, that any rights of Employee that
have already vested shall not be affected by such action.

      11. NON-COMPETITION. (A) For the benefit of Employer, Employee agrees that
during the term of this Agreement and for a period beginning on the date of
termination of this Agreement and ending twelve (12) months thereafter, Employee
will not:

            (1) engage or participate, directly or indirectly, either as
            principal, agent, employee, employer, consultant, director,
            shareholder (except as the holder of not more than two percent (2%)
            of the shares of any publicly traded corporation) or in any other
            individual or representative capacity whatsoever, in the operation,
            management or ownership of any state or federally chartered
            financial institution (or holding company or affiliates thereof)
            engaged in a business in direct competition with the business of
            Employer (or any business proposed to be conducted by Employer at
            the time of such termination of employment) within the State of
            Ohio; or

            (2) directly or indirectly, alone or in conjunction with or on
            behalf of any other person, solicit, divert, take away or endeavor
            to take away from Employer any person which was or is a customer,
            account or employee of Employer as of the date of Employee's
            termination of employment with Employer or at any time during the
            six months prior to the date thereof; provided, however, nothing
            herein shall prohibit an Employee from ceasing to be, and causing
            such Employee's immediate family members to cease to be, customers
            of Employer.

For the purposes of Section 11(A)(1), a financial institution shall be deemed to
be in direct competition with the business of Employer if its main office, or
one or more branch offices or

                                       8
<PAGE>

loan production offices, is located in the State of Ohio.

            (B) The Parties acknowledge and agree that it is not the intention
of this Section 11 to prohibit (and this Section 11 shall not be interpreted to
prohibit) Employee from engaging or participating in the operation, management,
or ownership of a financial institution (or holding company or affiliate
thereof) following termination of this Agreement so long as such financial
institution (or holding company or affiliate thereof) does not compete with
Employer in Ohio during such twelve (12) month restriction period. Upon request,
Employer shall provide Employee with a written statement confirming whether any
specified financial institution (or holding company or affiliate thereof) is in
competition with Employer within the meaning of this Section 11; provided,
however, that any good faith determination made by the Board of Directors of
Employer as to what constitutes a violation of this Section 11 shall be binding
upon Employee.

            (C) In the event of a violation of this Section 11, the applicable
time periods provided in Section 11(A) above shall be tolled during the time of
such violation. No waiver of the provisions of this Section 11 shall be
effective unless made in writing and signed by Employer.

      12. CONFIDENTIAL INFORMATION. (A) As used herein, the term "Confidential
Information" includes all "trade secrets" as that term is used in Sections
1333.61 through 1333.69 of the Ohio Revised Code, as amended, or any successor
provision thereto and all other information and materials belonging to, used by,
or in the possession of Employer: (1) which have been disclosed or made known
to, or have come into the possession of, Employee as a consequence of or through
Employee's relationship with Employer prior to or after the date hereof; (2)
which are related to the existing or proposed shareholders, customers,
providers, agents, accountholders, business strategies or policies, financial or
sales results, sales and management techniques, marketing plans, research or
development, reports, records, software, systems, source or object code,
software documentation or instruction or user manuals, and specifically
including names, addresses and other information relative to customers or
accountholders of Employer; and (3) which have not generally been made available
to the public by Employer pursuant to a specific authorization in the ordinary
course of business or otherwise published and released by Employer to the
general public. The term "Confidential Information" also shall include all trade
secrets and confidential and proprietary information of any third party
(including any third party with whom Employer proposes to enter into a business
combination), whether in written or oral, tangible or intangible form, which
have been disclosed to any of Employer pursuant to an agreement to maintain the
confidentiality of such information. Notwithstanding the foregoing, Employee may
release Confidential Information if (l) required by law; (2) necessary to
establish a lawful claim or defense against any of Employer; (3) necessary to
establish a lawful claim or defense against a person other than Employer, but
only with the written permission, which shall not be unreasonably withheld, of
Employer; or (4) necessary to respond to an appropriate governmental inquiry,
but then in each case only with prior written notice to Employer.

                                       9
<PAGE>

            (B) In addition to Employee's obligations under Section 11, Employee
agrees that:

            (1) Employee will, during the term of this Agreement and at all
            times thereafter, safeguard all Confidential Information and, except
            as specifically permitted herein, Employee will never disclose or
            use for any purpose or benefit (other than for the purpose or
            benefit of Employer) any Confidential Information;

            (2) Except in connection with the ordinary course of Employer's
            business during the term of this Agreement, Employee will not,
            either during the term of this Agreement or at any time thereafter,
            directly or indirectly, disclose, disseminate or otherwise make
            known or provide any Confidential Information, whether in original
            form or in duplicated or copied form or extracts therefrom, and
            whether orally or in writing, to any person, unless Employer shall
            have given prior written consent thereto;

            (3) Except in connection with the ordinary course of the business of
            Employer during the term of this Agreement, Employee will not,
            either during the term of this Agreement or at any time thereafter,
            remove any Confidential Information from the premises of Employer
            either in original form or in duplicated or copied form or extracts
            therefrom;

            (4) Upon termination of this Agreement, Employee will immediately
            surrender to Employer, without request, all Confidential
            Information, whether in original or duplicated or copied form or
            extracts therefrom; and

            (5) Employee will be bound by and comply with the terms of any
            confidentiality agreement entered into by Employer pursuant to which
            Employer agrees to maintain the confidentiality of confidential
            information of a third party.

      13. REASONABLENESS OF RESTRICTIONS. Employee acknowledges that the
restrictions in Sections 11 and 12 of this Agreement are reasonable. If any
provision of this Agreement is determined to be invalid, illegal or otherwise
unenforceable to its full extent, or if any such restriction is found by a court
of competent jurisdiction to be unreasonable under applicable law, then such
restriction shall be enforced to the maximum extent permitted by law, and the
Parties consent and agree that such scope of protection, time or geographic area
(or any one of them, as the case may be) shall be considered amended in whatever
manner considered reasonable by such court and may be judicially modified
accordingly in any proceeding brought to enforce such restriction. Employee
acknowledges that the validity, legality and enforceability of the other
provisions shall not be affected thereby. Employee acknowledges and confirms
that,

                                       10
<PAGE>

without limitation of any remedies for breach of such covenant, Employer shall
be entitled to temporary and permanent injunctive relief.

      14. REMEDIES. Employee acknowledges that the Confidential Information
disclosed to Employee prior to and during the term of this Agreement is of a
special, unique and extraordinary character. Employee further acknowledges that:
(A) any breach of Sections 11 or 12 of this Agreement will cause Employer
irreparable injury and damage, and consequently Employer shall be entitled, in
addition to all other remedies available to Employer, to injunctive and
equitable relief to prevent or cease a breach of Sections 11 or 12 without
further proof of harm and entitlement; (B) the terms of this Agreement, if
enforced by Employer, will not unduly impair Employee's ability to earn a living
or pursue his vocation; and (C) Employer may withhold compensation and benefits,
including severance benefits, if any, if Employee fails to comply with this
Agreement, without restricting Employer from other legal and equitable remedies.

      15. NO CONFLICTS. Employee represents and warrants to Employer that (A)
Employee's performance of this Agreement has not, does not and will not breach
any other agreement to which Employee is or was a party and which requires
Employee to keep any information in confidence or in trust; (B) Employee has not
entered into, and will not enter into, any agreement, either written or oral, in
conflict herewith; (C) Employee has not brought to Employer, nor will Employee
use in the performance of his employment responsibilities with Employer, any
proprietary materials or documents of a former employer that are not generally
available to the public, unless Employee has obtained express written
authorization from such former employer for their possession and use; (D)
Employee has delivered to Employer a true and correct copy of any employment,
proprietary information, confidentiality or non-competition agreement to which
Employee is or was a party, which remains or may remain in effect as of the date
of Employee's first employment by Employer; and (E) Employee has not and will
not breach any obligation of confidentiality that Employee may have to former
employers and Employee shall fulfill all such obligations during Employee's
employment with Employer.

      16. WITHHOLDING. Employer may withhold from any payments to be made
hereunder such amounts as it may be required or permitted to withhold under
applicable federal, state or other law, and transmit such withheld amounts, as
appropriate, to appropriate taxing authorities.

      17. WAIVER. The waiver by any Party of any breach or violation of any
provision of this Agreement by the other Party shall not operate as or be
construed to be a waiver of any subsequent breach by such waiving Party.

      18. NOTICES. Any and all notice required or permitted to be given under
this Agreement will be sufficient and deemed effective either upon receipt (if
personally delivered) or three (3) days following deposit in the U.S. Mail if
furnished in writing and sent by certified mail, if to Employee at the last
known address provided to Employer by Employee, and if to Employer at:

                                       11
<PAGE>

      Board of Directors
      The Farmers Citizens Bank and FC Banc Corp.
      P.O. Box 567
      105 Washington Square
      Bucyrus, Ohio, 44820

Either Party may designate a different address for notice purposes by written
notice to the other Party.

      19. GOVERNING LAW; ARBITRATION. (A) This Agreement shall be interpreted,
construed and governed in accordance with the laws of the State of Ohio. Each
Party consents and agrees that the proper, convenient and exclusive venue for
any legal proceedings in state or federal court relating to this Agreement is
Crawford County, Ohio, the location of the principal place of business of
Employer, and each Party waives any defense, whether asserted by motion or
pleading, that Crawford County, Ohio, is an improper or inconvenient venue.

            (B) If a dispute arises concerning this Agreement and the Parties do
not resolve it through informal means, the parties shall submit their dispute to
mediation in accordance with the Commercial Mediation Rules of the American
Arbitration Association if they can agree to do so, otherwise to formal
arbitration in accordance with the Commercial Arbitration Rules of the American
Arbitration Association; provided that if the Parties begin in mediation, any
party to the dispute may require arbitration at any time upon written notice in
accordance with the Commercial Arbitration Rules; further provided that the
arbitration of any dispute arising under the Federal Age Discrimination in
Employment Act of 1967, as amended, the Federal Civil Rights Acts of 1866, 1870,
1871, 1964, 1972, 1988, and 1991, the Americans With Disabilities Act of 1990,
as amended (the "Federal Acts"), shall be conducted under the Federal
Arbitration Act.

            (C) To the extent permitted by applicable law, arbitration
proceedings shall be conducted by three arbitrators in Bucyrus, Ohio. Employer
and Employee shall each select one arbitrator and the two arbitrators shall
select a third. Without limitation of their general authority, the arbitrators
shall have the right to order reasonable discovery in accordance with the Ohio
Rules of Civil Procedure. Their final decisions shall be binding and enforceable
without further legal proceedings in court or otherwise, provided that any party
may enter judgment upon the award in any court having jurisdiction. The final
decision arising from arbitration shall be accompanied by a written opinion and
decision which shall describe the rationale underlying the award and shall
include findings of fact and conclusions of law.

            (D) The Parties to any mediation or arbitration proceeding shall
share the costs of the proceeding equally, provided that each party shall be
responsible for its own attorneys fees unless the arbitrators determines that it
would be just and equitable to assess all or part of a party's attorneys fees
against the other party.

                                       12
<PAGE>

            (E) All Parties shall have a duty to participate in mediation or
arbitration proceedings in good faith and in a manner that ensures that all such
proceedings shall proceed with all due haste.

            (F) Notwithstanding any provision of this Section 19, the
requirement to mediate or arbitrate disputes under this Section 19 shall not
apply to any action for equitable relief with respect to Section 11 or Section
12 of this Agreement or any other injunctive or equitable relief sought by any
Party in the context of a bona fide emergency or prospective irreparable harm.

            (G) Notwithstanding any provision of this Section 19, the parties
consent to the jurisdiction of the United States District Court located in or
closest to Crawford County, Ohio for the entry and enforcement of judgment upon
any arbitration award rendered in connection with any Federal Act.

      20. AMENDMENT. This Agreement may be amended only by an agreement in
writing executed by the Parties.

      21. SECTION HEADINGS; CONSTRUCTION. Paragraph headings contained in this
Agreement are for convenience only and shall not be considered in construing any
provision hereof. As used in this Agreement, the term "including" shall mean
"including without limitation," and references to any law shall include
reference to all statutes and rules and regulations adopted thereunder. As used
in this Agreement, the term "person" shall be broadly construed to mean any
natural person, corporation, partnership, limited liability corporation,
unincorporated association, or other person or entity of any kind. Whenever in
this Agreement the Employer (or the Board(s) of Directors or committee(s)
thereof of Employer) is permitted or required to make a determination, take an
action, give a notice, exercise a right or do any other thing, the
determination, action, notice, exercise, or doing of a thing by either FC Banc
or the Bank (or the Board of Directors, or a committee thereof, of either FC
Banc or the Bank) shall, as between Employer and Employee and for all purposes
under this Agreement, constitute the determination, action, notice, exercise or
doing of a thing by Employer. The Parties participated jointly in the
negotiation and drafting of this Agreement. In the event any ambiguity or
question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the Parties and no presumption or burden of proof shall
arise favoring or disfavoring either Party by virtue of the authorship of any of
the provisions of this Agreement.

      22. ASSIGNMENT. This Agreement is personal to Employee and Employee may
not assign or delegate any of Employee's rights or obligations hereunder.
Subject to the foregoing, this Agreement shall be binding upon and inure to the
benefit of the respective Parties, their heirs, executors, administrators,
successors and assigns.

      23. ENTIRE AGREEMENT; EMPLOYEE HANDBOOK. This Agreement contains the
entire understanding of the Parties with respect to the subject matter of this
Agreement. Notwithstanding the foregoing, however, Employee shall be subject to
and comply with all terms

                                       13
<PAGE>

and provisions of any employee handbook, and all other employment policies, of
Employer and applicable to the employees of Employer generally as in effect from
time to time (collectively, the "Employee Handbook"). Insofar as possible this
Agreement shall be construed to supplement (but not conflict with) the terms and
provisions of Employee Handbook. In the event of any conflict between the terms
and provisions of Employee Handbook and this Agreement, this Agreement shall
control.

EMPLOYEE ACKNOWLEDGES THAT, BEFORE PLACING HIS SIGNATURE ON THIS EXECUTIVE
EMPLOYMENT AGREEMENT, HE HAS READ ALL OF ITS PROVISIONS, HAS HAD AMPLE
OPPORTUNITY TO PRESENT IT TO COMPETENT LEGAL COUNSEL FOR REVIEW, AND HAS THIS
DAY RECEIVED A COPY HEREOF.

      24. SEVERABILITY. The invalidity or unenforceability of any one or more
provisions of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement or parts thereof.

      25. SURVIVAL. Sections 10, 11, 12, 13, 14, 15, 16, 19 and this Section 25
of this Agreement shall survive any termination of this Agreement.

      IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day
and year first above written.

Coleman J. Clougherty

_______________________________             ___________________________________
                                                          Witness

FC Banc Corp.

By
Its:  _____________                                       Witness

The Farmers Citizens Bank

By
Its:  _____________                                       Witness

                                       14
<PAGE>

                                    EXHIBIT A

                           DUTIES AND RESPONSIBILITIES

General Responsibilities

      Responsible for the business planning and control of Employer's resources
      toward achieving established strategic initiatives, e.g., earnings,
      growth, and safety and soundness objectives in a manner which is
      consistent with the philosophy of the Board of Directors and various
      regulatory requirements; communicating and participating with the Board on
      all decisions affecting Employer that must be made at Board level;
      implementing directives of the Board; representing Employer in marketing
      and public relations activities; providing direction to key management
      personnel; providing and presenting appropriate management reports.

Essential Duties

         1. Plans, controls, and manages Employer's resources toward established
            Board earnings, growth, and safety and soundness objectives by
            performing various executive management duties of which the
            following are illustrative:

                  a.    Plans and controls policies and practices of Employer
                        and its resources in order to insure compliance with
                        policies of the Board and regulatory requirements;
                        maintains an active knowledge of operations to insure
                        this compliance.

                  b.    Communicates and participates with the Board regarding
                        all decisions affecting Employer that must be made at
                        the Board level as follows:

                        1)    Participates, with the Board, in establishing
                              strategic plans in order to help Employer acquire
                              new customer relationships, retain and grow
                              current customer relationships, and achieve
                              acceptable levels of profitability.

                        2)    Coordinates the development of short- and
                              long-term strategic initiatives around earnings,
                              growth, and safety and soundness.

                        3)    Participates with Directors in reviewing financial
                              and operating statements; analyzes major
                              operational areas in relation to authorized
                              programs.

                        4)    Actively participates in activities of the Board
                              relating to authorizing capital expenses and
                              acquisition or disposal of assets where Board
                              action is required.

                        5)    Establishes management policies and procedures
                              which support the achieving of corporate plans in
                              conjunction with executive management.

                        6)    Implements other directives of the Board as
                              assigned.

<PAGE>

      2.    Develops, implements, and achieves annual goals and objectives as
            established in Employer 's annual operating plan as follows:

                  a.    Allocates division resources, e.g., human, financial,
                        etc., toward tasks required to achieve goals and
                        objectives.

                  b.    Directs, through appropriate management and supervisory
                        personnel, day-to-day activities in support of Employer
                        -wide strategic initiatives and objectives.

                  c.    Measures effectiveness and performance of the systems
                        and people.

                  d.    Develops resources, as appropriate, to improve
                        efficiency and productivity.

                  e.    Assists in the development of the annual budget and
                        adheres to budget parameters.

                  f.    Actively pursues further penetration of Employer 's
                        market by performing various duties of which the
                        following are illustrative:

                        1)    May make business development and general
                              service/public relations calls on present and
                              prospective bank customers to maintain present
                              business and approved banking relationships.

                        2)    May provide direct service to customers, e.g.,
                              loans, deposits, investment services, etc., with
                              an emphasis on the commercial segment.

                        3)    Maintains active community involvement in order to
                              project a positive image of Employer and support
                              business development activities.

      3.    Organizes division management, i.e., structure, human resources,
            etc., in order to achieve objectives.

      4.    Abides by the current laws and organizational policies and
            procedures designed and implemented to promote an environment which
            is free of sexual harassment and other forms of illegal
            discriminatory behavior in the work place.

      5.    Cooperates with, participates in, and supports the adherence to all
            internal policies, procedures, and practices in support of risk
            management and overall safety and soundness and Employer's
            compliance with all regulatory requirements, e.g., Community
            Reinvestment Act (CRA), Equal Credit Opportunity Act, etc.; insures
            that the division and all personnel adhere to the same.

      6.    Directly supervises assigned management and support personnel as
            follows:

                   a.    Screens and selects new personnel.

                                       2
<PAGE>

            b.    Makes provisions for the proper orientation and training of
                  new personnel.

            c.    Reviews employee performance throughout the probationary
                  period and on a regularly scheduled basis thereafter.

            d.    Organizes, schedules, and distributes work among assigned
                  personnel.

            e.    Keeps personnel informed of pertinent policies and procedures
                  affecting division management and/or their jobs; creates an
                  atmosphere in which upward communication from employees is
                  encouraged.

            f.    Administers personnel policies and procedures as established
                  by bank policy.

      7. Communicates and interfaces with management personnel throughout
         Employer in order to integrate objectives and activities.

      8. Provides periodic reports to the Board of Directors and other
         groups, committees, or individuals as required.

      9. Assumes responsibility for special projects as assigned by the Board
         of Directors.

Ancillary Duties

      1. Performs tasks which are supportive in nature to the essential
         functions of the job, but which may be altered or re-designed
         depending upon individual circumstances.

                                       3
<PAGE>

                                    EXHIBIT B

                             INCENTIVE COMPENSATION

Employee shall be entitled to participate in any incentive compensation program
that the Boards of Directors of Employer (or either of them, or any committee(s)
thereof) may approve from time to time for its senior executives, or, in such
Boards' (or committees') discretion, such other incentive compensation program
of equal or greater value than that offered by Employer to its other senior
executives. Any payment of Incentive Compensation due hereunder shall be paid to
Employee by the Bank in a lump sum within one hundred and twenty (120) days
after the end of the fiscal year of the Bank to which the Incentive Compensation
relates. In the event that this Agreement is terminated (other than by Employer
for Cause pursuant to Section 8(C)) after the end of the fiscal year to which a
payment of Incentive Compensation due hereunder shall be payable but before
payment has been made, Employee shall be entitled to receive, and the Bank shall
pay, such Incentive Compensation. However, under no circumstances shall Employee
be entitled to any payment of Incentive Compensation relating to any fiscal year
(or portion thereof) during which this Agreement is terminated, nor shall
Employee be entitled to any payment of Incentive Compensation if he is
terminated by Employer for Cause pursuant to Section 8(C).

<PAGE>

                                    EXHIBIT C

                                  STOCK OPTIONS

Subject to the provisions of Section 6(C) of this Agreement, FC Banc shall grant
Employee incentive stock options (the "Options") to purchase up to 2,860 shares
of common stock, no par value (the "Shares") of FC Banc under the Stock Option
Plan. The Options shall be at an exercise price equal to $31.00 per share and
shall vest as follows: 572 Shares shall vest on January 1, 2006, 572 Shares
shall vest on January 1, 2007, 572 Shares shall vest on January 1, 2008, and 572
Shares shall vest on January 1, 2009. Any unexercised Options (which have not
previously expired pursuant to the terms of the Stock Option Plan) shall expire
on the tenth (10th) anniversary of the date of this Agreement. The grant of the
Options and the exercise thereof shall be subject to the terms and conditions of
the Stock Option Plan.

                                        2

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