Document:

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                                                                    EXHIBIT 10.3

                         CITIZENS FIRST BANCORP, INC.
                         FORM OF EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT ("Agreement") is made effective as of
____________________(the "Effective Time"), by and between Citizens First
Bancorp, Inc. (the "Holding Company"), a corporation organized under the laws of
Delaware, with its principal offices at 525 Water Street, Port Huron, Michigan
48060, and _____________________ ("Executive"). Any reference to the "Bank"
herein shall mean Citizens First Savings Bank or any successor to Citizens First
Savings Bank.

     WHEREAS, the Holding Company believes that the assurance of Executive's
employment by the Holding Company for the term of this Agreement and the benefit
of his business experience are of material importance; and

     WHEREAS, Executive desires to serve in the employ of the Holding Company on
a full-time basis for the term of this Agreement.

     NOW, THEREFORE, in consideration of the mutual covenants herein contained,
and upon the other terms and conditions hereinafter provided, the parties to
this Agreement hereby agree as follows:

1.   POSITIONS AND RESPONSIBILITIES

(a)  During the term of this Agreement Executive agrees to serve as
_________________________ of the Holding Company. Executive shall render
administrative and management services to the Holding Company such as are
customarily performed by persons in a similar executive capacity. During the
term of this Agreement, Executive also agrees to serve, if elected or appointed,
as an officer and/or director of any subsidiary of the Holding Company and in
such capacity will carry out such duties and responsibilities reasonably
appropriate to that office.

(b)  During the term of Executive's employment under this Agreement, except for
periods of absence occasioned by illness, vacation, and other reasonable leaves
of absence, Executive shall devote substantially all his business time,
attention, skill, and efforts to the faithful performance of his duties under
this Agreement, including activities and services related to the organization,
operation and management of the Holding Company and its subsidiaries, as well as
participation in community, professional and civic organizations; provided,
however, that, with the approval of the Board of Directors of the Holding
Company (the "Board of Directors"), as evidenced by a resolution of the Board of
Directors, from time to time, Executive may serve, or continue to serve, on the
boards of directors of, and hold any other offices or positions in, companies or
organizations, which, in the judgment of the Board of Directors, will not
present any conflict of interest with the Holding Company or its subsidiaries,
or materially affect the performance of Executive's duties pursuant to this
Agreement.
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(c)  Notwithstanding anything herein contained to the contrary, either Executive
or the Holding Company may terminate Executive's employment with the Holding
Company at any time during the term of this Agreement, subject to the terms and
conditions of this Agreement.

2.   TERM OF EMPLOYMENT

Executive's employment under this Agreement shall be deemed to have commenced as
of the Effective Time and shall continue for a period of _____________ (___)
full calendar months from the Effective Time. Commencing on the date of
execution of this Agreement, the term of this Agreement shall extend for one day
each day until such time as the Board of Directors or Executive elects not to
extend the term of the Agreement by giving written notice to the other party, in
which case the term of this Agreement shall become fixed and shall end on the
___________ anniversary of the date of such written notice.

3.   COMPENSATION, BENEFITS AND REIMBURSEMENT

(a)  Base Salary. The Holding Company shall pay Executive an annual salary of
not less than $___________ ("Base Salary"). Executive's Base Salary shall be
payable in accordance with the normal payroll practices of the Holding Company.
Whenever used in this Agreement, Base Salary shall include any amounts of
compensation deferred by Executive under any tax-qualified retirement or welfare
benefit plan or any other deferred compensation arrangement maintained by the
Holding Company or the Bank. During the term of this Agreement, the Board of
Directors or a committee appointed by the Board of Directors shall review
Executive's Base Salary at least annually and the Board of Directors or the
committee may increase Executive's Base Salary at any time. Any increase in
Executive's Base Salary shall become a term of this Agreement and shall be the
new "Base Salary" for purposes of this Agreement.

(b)  Incentive Compensation. In addition to his Base Salary, Executive shall be
entitled to participate in and shall receive payments under any incentive
compensation bonus program sponsored by the Holding Company or the Bank.
Executive's incentive compensation shall be determined by the Board of Directors
or a committee appointed by the Board of Directors at a level appropriate for
executive officers.

(c)  Supplemental Pension and Life Insurance. The Holding Company or the Bank
shall continue to provide to Executive, without cost, the supplemental pension
and life insurance arrangements in place at the Effective Time. The supplemental
pension and life insurance arrangements shall be governed by the terms of the
specific agreements in effect at the Effective Time.

(d)  Membership and Club Dues. The Holding Company or the Bank shall continue to
provide to Executive, without cost, social and business membership commensurate
with his position. He shall also be reimbursed for customary business and travel
expenses.

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(e)  Automobile and Cellular Phone. The Holding Company or the Bank shall
provide Executive with, and Executive shall have the primary use of, an
automobile owned or leased by the Holding Company or the Bank and the Holding
Company or the Bank shall pay (or reimburse Executive) for all expenses of
insurance, registration, operation and maintenance of the automobile. Executive
shall comply with reasonable reporting and expense limitations on the use of
such automobile, as the Board of Directors may establish from time to time, and
the Holding Company or the Bank shall annually include on Executive's Form W-2
any amount attributable to Executive's personal use of such automobile. The
Holding Company or the Bank shall also provide Executive with a cellular phone
and shall pay (or reimburse Executive) for all reasonable expenses related to
the business use of such phone.

(f)  Vacation; Holidays; Sick Time. Executive shall be entitled to vacation in
accordance with the standard vacation policies of the Holding Company or the
Bank for senior executive officers, but in no event less than ___________ (___)
weeks vacation during each year of employment. Executive shall take vacation at
a time mutually agreed upon by the Holding Company or the Bank and Executive.
Executive shall receive his Base Salary and other benefits during periods of
vacation. Executive shall also be entitled to paid legal holidays in accordance
with the policies of the Holding Company or the Bank. Executive shall also be
entitled to sick leave in accordance with the policies of the Holding Company or
the Bank for senior executive officers, but in no event less than the number of
days of sick leave per year to which Executive was entitled at the Effective
Time.

(g)  Other Employee Benefits. In addition to any other compensation or benefits
provided for under this Agreement, Executive shall be entitled to continue to
participate in any employee benefit plans, arrangements and perquisites of the
Holding Company or the Bank in which he participates or is eligible to
participate at the Effective Time. Executive shall also be entitled to
participate in any employee benefits or perquisites the Holding Company or the
Bank offers to full-time employees or executive management in the future. The
Holding Company or the Bank will not, without Executive's prior written consent,
make any changes in such plans, arrangements or perquisites which would
adversely affect Executive's rights or benefits thereunder without separately
providing for an arrangement that ensures Executive receives or will receive the
economic value that Executive would otherwise lose as a result of such adverse
effect. Without limiting the generality of the foregoing provisions of this
paragraph, Executive shall be entitled to participate in or receive benefits
under all plans relating to stock options, restricted stock awards, stock
purchases, pension, profit sharing, employee stock ownership, supplemental
retirement, group life insurance, medical and other health and welfare coverage
that are made available by the Holding Company or the Bank at the Effective Time
or at any time in the future during the term of this Agreement, subject to and
on a basis consistent with the terms, conditions and overall administration of
such plans and arrangements. Nothing paid to Executive under any such plans or
arrangements will be deemed to be in lieu of other compensation to which
Executive is entitled under this Agreement.

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4.   PAYMENTS TO EXECUTIVE UPON AN EVENT OF TERMINATION

(a)  Upon the occurrence of an Event of Termination (as defined herein below)
during Executive's term of employment under this Agreement, the provisions of
this Section 4 shall apply. As used in this Agreement, an "Event of Termination"
shall mean and include any one or more of the following: (i) the termination of
Executive's full-time employment under this Agreement by the Holding Company for
any reason other than a termination governed by Section 7 of this Agreement; or
(ii) Executive's resignation from his employment with the Holding Company upon,
any (A) failure to elect or re-elect or to appoint or re-appoint Executive to
his positions set forth in Section 1 of this Agreement, unless Executive
consents to such event, (B) material change in Executive's functions, duties, or
responsibilities with the Holding Company or its subsidiaries, which change
would cause Executive's position(s) to become one of lesser responsibility,
importance, or scope, unless Executive consents to such event, (C) relocation of
Executive's principal place of employment by more than _______________ (____)
miles from its location at the Effective Time, unless Executive consents to such
event, (D) material reduction in the benefits and perquisites provided to
Executive from those being provided as of the Effective Time of this Agreement,
unless Executive consents to such event, (E) liquidation or dissolution of the
Holding Company or the Bank, or (F) breach of this Agreement by the Holding
Company. Upon the occurrence of any event described in clauses (A), (B), (C),
(D), (E) or (F), above, Executive shall have the right to terminate his
employment under this Agreement by resignation upon not less than __________
(____) days prior written notice given within _______ (_____) full calendar
months after the applicable event giving rise to Executive's right to elect to
terminate his employment.

(b)  Upon Executive's termination from employment in accordance with paragraph
(a) of this Section 4, on the Date of Termination, as defined in Section 8 of
the Agreement, the Holding Company shall be obligated to pay Executive, or, in
the event of his death following the Date of Termination, his beneficiary or
beneficiaries, or his estate, as the case may be, an amount equal to the sum of:
(i) the Base Salary and incentive compensation that would have been paid to
Executive for the remaining term of this Agreement had the Event of Termination
not occurred (based on Executive's then current Base Salary and most recently
paid or accrued bonus at the time of the Event of Termination); plus (ii) the
value, as calculated by a recognized firm customarily performing such valuation,
of any stock options which as of the Date of Termination, have been granted to
Executive but are not exercisable by Executive and the value of any restricted
stock awards which have been granted to Executive, but in which Executive does
not have a non-forfeitable or fully-vested interest as of the Date of
Termination; plus (iii) the value of all employee benefits that would have been
provided to Executive for the remaining term of this Agreement had an Event of
Termination not occurred, based on the most recent level of contribution,
accrual or other participation by or on behalf of Executive. At the election of
Executive, which election is to be made prior to the Date of Termination, such
payments shall be made in a lump sum. In the event that no election is made,
payment to Executive will be made on a monthly basis in approximately equal
installments during the remaining unexpired term of the Agreement. Such payments
shall not be reduced in the event Executive obtains other employment following
termination of employment.

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(c)  In addition to the payments provided for in paragraph (b) of this Section
4, upon Executive's termination of employment in accordance with the provisions
of paragraph (a) of this Section 4, to the extent that the Holding Company or
the Bank continues to offer any life, medical, health, disability or dental
insurance plan or arrangement in which Executive participates in on the last day
of his employment (each being a "Welfare Plan"), Executive and his covered
dependents shall continue participating in such Welfare Plans, subject to the
same premium contributions on the part of Executive as were required immediately
prior to the Event of Termination until the earlier of (i) his death (ii) his
employment by another employer other than one of which he is the majority owner
or (iii) the end of the remaining term of this Agreement. If the Holding Company
or Bank does not offer the Welfare Plans at any time after the Event of
Termination, then the Holding Company shall provide Executive with a payment
equal to the premiums for such benefits for the period which runs until the
earlier of (i) his death (ii) his employment by another employer other than one
of which he is the majority owner or (iii) the end of the remaining term of this
Agreement.

5.   CHANGE IN CONTROL

(a)  For purposes of this Agreement, a "Change in Control" shall mean an event
of a nature that: (i) would be required to be reported in response to Item 1(a)
of the current report on Form 8-K, as in effect on the date hereof, pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act");
or (ii) results in a Change in Control of the Bank or the Holding Company within
the meaning of the Bank Change in Control Act and the Rules and Regulations
promulgated by the Federal Deposit Insurance Corporation ("FDIC") at 12 C.F.R.
(S) 303.4(a) with respect to the Bank and the Rules and Regulations promulgated
by the Office of Thrift Supervision (OTS), with respect to the Holding Company,
as in effect on the date hereof; or (iii) results in a transaction requiring
prior FRB approval under the Bank Holding Company Act of 1956 and the
regulations promulgated thereunder by the FRB at 12 C.F.R. (S) 225.11, as in
effect on the date hereof except for the Holding Company's acquisition of the
Bank; or (iv) without limitation such a Change in Control shall be deemed to
have occurred at such time as (A) any "person" (as the term is used in Sections
13(d) and 14(d) of the Exchange Act) is or becomes the "beneficial owner" (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Bank or the Holding Company representing ____% or more of the
Bank's or the Holding Company's outstanding securities except for any securities
of the Bank purchased by the Holding Company in connection with the conversion
of the Bank to the stock form and any securities purchased by any tax-qualified
employee benefit plan of the Bank; or (B) individuals who constitute the Board
of Directors on the date hereof (the "Incumbent Board") cease for any reason to
constitute at least a majority thereof, provided that any person becoming a
director subsequent to the date hereof whose election was approved by a vote of
at least __________ (____) of the directors comprising the Incumbent Board, or
whose nomination for election by the Holding Company's stockholders was approved
by the same Nominating Committee serving under an Incumbent Board, shall be, for
purposes of this clause (B), considered as though he were a member of the
Incumbent Board; or (C) a plan of reorganization, merger, consolidation, sale of
all or substantially all the assets of the Bank or the Holding Company or
similar transaction occurs in which the Bank or Holding Company is not the
resulting entity; or (D) solicitations of shareholders of the Holding Company,
by someone other than the current management of the

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Holding Company, seeking stockholder approval of a plan of reorganization,
merger or consolidation of the Holding Company or Bank or similar transaction
with one or more corporations as a result of which the outstanding shares of the
class of securities then subject to the plan or transaction are exchanged for or
converted into cash or property or securities not issued by the Bank or the
Holding Company shall be distributed; or (E) a tender offer is made for ______%
or more of the voting securities of the Bank or the Holding Company.

(b)  If any of the events described in paragraph (a) of this Section 5,
constituting a Change in Control, have occurred or the Board of Directors
determines that a Change in Control has occurred, Executive shall be entitled to
the benefits provided in paragraphs (c), (d), (e), (f) and (g) of this Section 5
upon his termination of employment at any time during the term of this Agreement
on or after the date the Change in Control occurs due to (1) Executive's
dismissal or (2) Executive's resignation following any demotion, loss of title,
office or significant authority or responsibility, reduction in annual
compensation or benefits or relocation of his principal place of employment by
more than _____________ (____) miles from its location immediately prior to the
Change in Control, unless such termination is because of his death or
Termination for Cause; provided, however, that such payments shall be reduced by
any payment made under Section 4 of this Agreement.

(c)  Upon the occurrence of a Change in Control followed by Executive's
termination of employment, as provided in paragraph (b) of this Section 5, the
Holding Company shall pay Executive, or in the event of his subsequent death,
his beneficiary or beneficiaries, or his estate, as the case may be, as
severance pay or liquidated damages, or both, a sum equal to the greater of: 1)
the payments and benefits due for the remaining term of the Agreement or 2)
_______ (___) times Executive's average annual compensation from the Holding
Company, the Bank or their affiliates for the ___________ (__) preceding taxable
years or such lesser number of years in the event that Executive shall have
actually been employed by the Holding Company or the Bank for less than ______
(___) years. In determining Executive's average annual compensation, annual
compensation shall include Base Salary and any other taxable income, including
but not limited to amounts related to the granting, vesting or exercise of
restricted stock or stock option awards, commissions, bonuses (whether paid or
accrued for the applicable period), as well as, severance payments, retirement
benefits, director or committee fees and fringe benefits paid or to be paid to
Executive or paid for Executive's benefit during any such year, profit sharing,
employee stock ownership plan and other retirement contributions or benefits,
including to any tax-qualified plan or arrangement (whether or not taxable) made
or accrued on behalf of Executive of such year. At the election of Executive,
which election is to be made prior to or within ________ (___) days of the Date
of Termination on or following a Change in Control, such payment may be made in
a lump sum (without discount for early payment) on or immediately following the
Date of Termination (which may be the date a Change in Control occurs) or paid
in equal monthly installments during the ___________ (____) months following
Executive's termination. In the event that no election is made, payment to
Executive will be made on a monthly basis during the _________ (____) months
following Executive's termination.

(d)  Upon the occurrence of a Change in Control, Executive will be entitled to
receive benefits due him under or contributed by the Bank or the Holding Company
on his behalf pursuant to any

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retirement, incentive, profit sharing or other retirement, bonus, performance,
disability or other employee benefit plan maintained by the Holding Company or
the Bank on Executive's behalf to the extent such benefits are not otherwise
paid to Executive under a separate provision of this Agreement. In addition, for
purposes of determining his vested accrued benefit, Executive shall be credited
either under any defined benefit pension plan maintained by the Bank or, if not
permitted under such plan, under a separate arrangement, with the additional
"years of service" that he would have earned for vesting and benefit accrual
purposes for the remaining term of the Agreement had his employment not
terminated.

(e)  Upon the occurrence of a Change in Control and Executive's termination of
employment in connection therewith, the Holding Company will cause to be
continued life, medical and disability coverage substantially identical to the
coverage maintained by the Holding Company or the Bank for Executive and any of
his dependents covered under such plans prior to the Change in Control. Such
coverage and payments shall cease upon the expiration of ______________ (____)
full calendar months following the Date of Termination. In the event Executive's
participation in any such plan or program is barred, the Holding Company shall
arrange to provide Executive and his dependents with benefits substantially
similar to those of which Executive and his dependents would otherwise have been
entitled to receive under such plans and programs from which their continued
participation is barred or provide their economic equivalent.

(f)  The use or provision of any membership, license, automobile use, or other
perquisites shall be continued during the remaining term of the Agreement on the
same financial terms and obligations as were in place immediately prior to the
Change in Control. To the extent that any item referred to in this paragraph
will, at the end of the term of this Agreement, no longer be available to
Executive, Executive will have the option to purchase all rights then held by
the Holding Company or the Bank to such item for a price equal to the then fair
market value of the item.

(g)  In the event that Executive is receiving monthly payments pursuant to
Section 5(c) hereof, on an annual basis, thereafter, between the dates of
January 1 and January 31 of each year, Executive shall elect whether the balance
of the amount payable under the Agreement at that time shall be paid in a lump
sum or on a pro rata basis pursuant to such section. Such election shall be
irrevocable for the year for which such election is made.

6.   CHANGE IN CONTROL RELATED PROVISIONS

(a)  Notwithstanding the preceding provisions of Section 5 of this Agreement, in
no event shall the aggregate payments or benefits to be made or afforded to
Executive under said paragraphs (the "Termination Benefits") constitute an
"excess parachute payment" under Section 280G of the Internal Revenue Code of
1986, as amended, or any successor thereto, and in order to avoid such a result,
Termination Benefits will be reduced, if necessary, to an amount (the "Non-
Triggering Amount"), the value of which is one dollar ($1.00) less than an
amount equal to three (3) times the Executive's "base amount," as determined in
accordance with Section 280G. The allocation of the reduction required hereby
among the Termination Benefits provided by Section 5 shall be determined by the

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Executive.

7.   TERMINATION FOR CAUSE

     The term "Termination for Cause" shall mean termination because of
Executive's personal dishonesty, willful misconduct, any breach of fiduciary
duty involving personal profit, intentional failure to perform stated duties,
willful violation of any law, rule, regulation (other than traffic violations or
similar offenses), final cease and desist order or material breach of any
provision of this Agreement. Notwithstanding the foregoing, Executive shall not
be deemed to have been terminated for cause unless and until there shall have
been delivered to him a Notice of Termination which shall include a copy of a
resolution duly adopted by the affirmative vote of not less than ____________
(______) of the members of the Board of Directors at a meeting of the Board of
Directors called and held for that purpose (after reasonable notice to Executive
and an opportunity for him, together with counsel, to be heard before the Board
of Directors), finding that in the good faith opinion of the Board of Directors,
Executive was guilty of conduct justifying Termination for Cause and specifying
the particulars thereof in detail. Executive shall not have the right to receive
compensation or other benefits for any period after Termination for Cause.
During the period beginning on the date of the Notice of Termination pursuant to
Section 8 hereof through the Date of Termination, stock options granted to
Executive under any stock option plan shall not be exercisable nor shall any
unvested awards granted to Executive under any stock benefit plan of the Bank,
the Holding Company or any subsidiary or affiliate thereof, vest. At the Date of
Termination, such stock options and any such unvested awards shall become null
and void and shall not be exercisable by or delivered to Executive at any time
subsequent to such Termination for Cause.

8.   NOTICE

(a)  Any purported termination by the Holding Company or by Executive shall be
communicated by a Notice of Termination to the other party. For purposes of this
Agreement, a "Notice of Termination" shall mean a written notice which indicates
the specific termination provision in this Agreement relied upon and shall set
forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of Executive's employment under the provision so
indicated.

(b)  "Date of Termination" shall mean the date specified in the Notice of
Termination (which, in the case of a Termination for Cause, shall not be less
than ______ (___) days from the date such Notice of Termination is given).

(c)  If, within ________ (____) days after any Notice of Termination is given,
the party receiving such Notice of Termination notifies the other party that a
dispute exists concerning the termination, except upon the occurrence of a
Change in Control and voluntary termination by Executive in which case the Date
of Termination shall be the date specified in the Notice, the Date of
Termination shall be the date on which the dispute is finally determined, either
by mutual written agreement of the parties, by a binding arbitration award, or
by a final judgment, order or decree of a court of competent jurisdiction (the
time for appeal therefrom having expired and no appeal having been perfected)
and

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provided further that the Date of Termination shall be extended by a notice of
dispute only if such notice is given in good faith and the party giving such
notice pursues the resolution of such dispute with reasonable diligence.
Notwithstanding the pendency of any such dispute, the Holding Company will
continue to pay Executive his full compensation in effect when the notice giving
rise to the dispute was given (including, but not limited to, Base Salary) and
continue him as a participant in all compensation, benefit and insurance plans
in which he was participating when the notice of dispute was given, until the
dispute is finally resolved in accordance with this Agreement. Amounts paid
under this Section 8 are in addition to all other amounts due under this
Agreement and shall not be offset against or reduce any other amounts due under
this Agreement.

9.   POST-TERMINATION OBLIGATIONS

All payments and benefits to Executive under this Agreement shall be subject to
Executive's compliance with this Section 9 for _____________ (___) after the
earlier of the expiration of this Agreement or termination of Executive's
employment with the Holding Company.  Executive shall, upon reasonable notice,
furnish such information and assistance to the Holding Company as may reasonably
be required by the Holding Company in connection with any litigation in which it
or any of its subsidiaries or affiliates is, or may become, a party.

10.  NON-COMPETITION AND NON-DISCLOSURE

(a)  Upon any termination of Executive's employment hereunder pursuant to
Section 4 hereof, Executive agrees not to compete with the Holding Company or
its subsidiaries for a period of (____) year following such termination in any
city, town or county in-----which Executive's normal business office is located
and the Holding Company or any of its subsidiaries has an office or has filed an
application for regulatory approval to establish an office, determined as of the
effective date of such termination, except as agreed to pursuant to a resolution
duly adopted by the Board of Directors. Executive agrees that during such period
and within said cities, towns and counties, Executive shall not work for or
advise, consult or otherwise serve with, directly or indirectly, any entity
whose business materially competes with the depository, lending or other
business activities of the Holding Company or its subsidiaries. The parties
hereto, recognizing that irreparable injury will result to the Holding Company
or its subsidiaries, its business and property in the event of Executive's
breach of this Subsection 10(a) agree that in the event of any such breach by
Executive, the Holding Company or its subsidiaries, will be entitled, in
addition to any other remedies and damages available, to an injunction to
restrain the violation hereof by Executive, Executive's partners, agents,
servants, employees and all persons acting for or under the direction of
Executive. Executive represents and admits that in the event of the termination
of his employment pursuant to Section 4 of this Agreement, Executive's
experience and capabilities are such that Executive can obtain employment in a
business engaged in other lines and/or of a different nature than the Holding
Company or its subsidiaries, and that the enforcement of a remedy by way of
injunction will not prevent Executive from earning a livelihood. Nothing herein
will be construed as prohibiting the Holding Company or its subsidiaries from
pursuing any other remedies available to the Holding Company or its subsidiaries
for such breach or threatened breach, including the recovery of damages

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from Executive.

(b)  Executive recognizes and acknowledges that the knowledge of the business
activities and plans for business activities of the Holding Company and its
subsidiaries as it may exist from time to time, is a valuable, special and
unique asset of the business of the Holding Company and its subsidiaries.
Executive will not, during or after the term of his employment, disclose any
knowledge of the past, present, planned or considered business activities of the
Holding Company and subsidiaries thereof to any person, firm, corporation, or
other entity for any reason or purpose whatsoever unless expressly authorized by
the Board of Directors or required by law. Notwithstanding the foregoing,
Executive may disclose any knowledge of banking, financial and/or economic
principles, concepts or ideas which are not solely and exclusively derived from
the business plans and activities of the Holding Company. In the event of a
breach or threatened breach by Executive of the provisions of this Section 10,
the Holding Company will be entitled to an injunction restraining Executive from
disclosing, in whole or in part, the knowledge of the past, present, planned or
considered business activities of the Holding Company or its subsidiaries or
from rendering any services to any person, firm, corporation, other entity to
whom such knowledge, in whole or in part, has been disclosed or is threatened to
be disclosed. Nothing herein will be construed as prohibiting the Holding
Company from pursuing any other remedies available to the Holding Company for
such breach or threatened breach, including the recovery of damages from
Executive.

11.  DEATH AND DISABILITY

(a)  Death. Notwithstanding any other provision of this Agreement to the
contrary, in the event of Executive's death during the term of this Agreement,
the Holding Company shall immediately pay his estate any salary and bonus
accrued but unpaid as of the date of his death, and, for a period of
____________ after Executive's death, the Holding Company shall continue to
provide medical insurance benefits existing on the date of his death and shall
pay Executive's designated beneficiary all compensation that would otherwise be
payable to him pursuant to Section 3 of this Agreement. This provision shall not
negate any rights Executive or his beneficiaries may have to death benefits
under any employee benefit plan of the Holding Company or the Bank.

(b)  Disability

     (i)  Disability. If during the term of Executive's employment Executive
begins to receive disability benefits under the long-term disability insurance
policy maintained by the Bank (the "Disability Policy"), then the Holding
Company's obligation to pay Executive his Base Salary shall, as of the date such
benefits first become payable under the Disability Policy on account of
Executive's disability, be reduced to equal the difference between Executive's
Base Salary and amounts received under all long-term disability policies, to the
extent that such salary payments do not result in a reduction in disability
payments.

     (ii) Incapacity.  If, as a result of Disability, Executive is determined by
a physician chosen

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by the Holding Company or the Bank and reasonably acceptable to Executive or
Executive's personal representatives not to be capable of fulfilling Executive's
responsibilities as an officer of the Holding Company ("Incapacity
Determination"), (1) Executive shall continue to be covered by the Bank's
medical insurance and life insurance policies until the ________ anniversary of
the Incapacity Determination, and (2) the Holding Company's or the Bank's
obligation to provide Executive with other employment-related fringe benefits
hereunder shall cease as of the date of such Incapacity Determination
("Incapacity Determination Date"). Prior to the Incapacity Determination Date,
the Holding Company shall continue to pay Executive his annual salary in usual
installments and Executive shall continue to receive all other employment-
related fringe benefits due to Executive in accordance with this Agreement. The
Bank's or the Holding Company's obligation to provide Executive with the
benefits described in Section 3(c) shall not be affected by an Incapacity
Determination unless the terms of the separate arrangements governing such
benefits so provide.

     (iii)  Termination of Employment by Reason of Incapacity.  At any time
from and after the Incapacity Determination Date, the Board of Directors, in its
discretion, may elect to terminate Executive's employment by reason of such
incapacity. Any such termination as a result of incapacity shall be considered
to be an Event of Termination in accordance with Section 4 of this Agreement.

12.  SOURCE OF PAYMENTS

(a)  All payments provided in this Agreement shall be timely paid in cash or
check from the general funds of the Holding Company or subject to Section 12(b).

(b)  Notwithstanding any provision herein to the contrary, to the extent that
payments and benefits, as provided by this Agreement, are paid to or received by
Executive under an employment agreement in effect between Executive and the
Bank, such compensation payments and benefits paid by the Bank will be
subtracted from any amount due simultaneously to Executive under similar
provisions of this Agreement. Payments pursuant to this Agreement and the Bank
agreement shall be allocated in proportion to the level of activity and the time
expended on such activities by Executive as determined by the Holding Company
and the Bank.

13.  EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFIT PLANS

This Agreement contains the entire understanding between the parties hereto and
supersedes any prior employment agreement between the Holding Company or any
predecessor of the Holding Company and Executive, except that this Agreement
shall not affect or operate to reduce any benefit or compensation inuring to
Executive of a kind elsewhere provided. No provision of this Agreement shall be
interpreted to mean that Executive is subject to receiving fewer benefits than
those available to him without reference to this Agreement.

                                      -11-
<PAGE>

14.  NO ATTACHMENT

(a)  Except as required by law, no right to receive payments under this
Agreement shall be subject to anticipation, commutation, alienation, sale,
assignment, encumbrance, charge, pledge, or hypothecation, or to execution,
attachment, levy, or similar process or assignment by operation of law, and any
attempt, voluntary or involuntary, to affect any such action shall be null,
void, and of no effect.

(b)  This Agreement shall be binding upon, and inure to the benefit of,
Executive and the Holding Company and their respective successors and assigns.

15.  MODIFICATION AND WAIVER

(a)  This Agreement may not be modified or amended except by an instrument in
writing signed by the parties hereto.

(b)  No term or condition of this Agreement shall be deemed to have been waived,
nor shall there be any estoppel against the enforcement of any provision of this
Agreement, except by written instrument of the party charged with such waiver or
estoppel. No such written waiver shall be deemed a continuing waiver unless
specifically stated therein, and each such waiver shall operate only as to the
specific term or condition waived and shall not constitute a waiver of such term
or condition for the future as to any act other than that specifically waived.

16.  SEVERABILITY

If, for any reason, any provision of this Agreement, or any part of any
provision, is held invalid, such invalidity shall not affect any other provision
of this Agreement or any part of such provision not held so invalid, and each
such other provision and part thereof shall, to the full extent consistent with
law, continue in full force and effect.

17.  HEADINGS FOR REFERENCE ONLY

The headings of sections and paragraphs herein are included solely for
convenience of reference and shall not control the meaning or interpretation of
any of the provisions of this Agreement.

18.  GOVERNING LAW

This Agreement shall be governed by the laws of the State of Delaware without
regard to principles of conflicts of law of that state.

                                      -12-
<PAGE>

19.  ARBITRATION

Any dispute or controversy arising under or in connection with this Agreement
shall be settled exclusively by arbitration, conducted before a panel of three
arbitrators sitting in a location selected by Executive within __________ (___)
miles from the location of the Holding Company, in accordance with the rules of
the American Arbitration Association then in effect. Judgment may be entered on
the arbitrator's award in any court having jurisdiction; provided, however, that
Executive shall be entitled to seek specific performance of his right to be paid
until the Date of Termination during the pendency of any dispute or controversy
arising under or in connection with this Agreement.

In the event any dispute or controversy arising under or in connection with
Executive's termination is resolved in favor of Executive, whether by judgment,
arbitration or settlement, Executive shall be entitled to the payment of all
back-pay, including salary, bonuses and any other cash compensation, fringe
benefits and any compensation and benefits due Executive under this Agreement.

20.  PAYMENT OF COSTS AND LEGAL FEES

All reasonable costs and legal fees paid or incurred by Executive pursuant to
any dispute or question of interpretation relating to this Agreement shall be
paid or reimbursed by the Holding Company, if Executive is successful with
respect to such dispute or question of interpretation pursuant to a legal
judgment, arbitration or settlement.

21.  INDEMNIFICATION

(a)  The Holding Company shall provide Executive (including his heirs, executors
and administrators) with coverage under a standard directors' and officers'
liability insurance policy at its expense and shall indemnify Executive (and his
heirs, executors and administrators) to the fullest extent permitted under
Delaware law against all expenses and liabilities reasonably incurred by him in
connection with or arising out of any action, suit or proceeding in which he may
be involved by reason of his having been a director or officer of the Holding
Company (whether or not he continues to be a director or officer at the time of
incurring such expenses or liabilities); such expenses and liabilities to
include, but not to be limited to, judgments, court costs and attorneys' fees
and the cost of reasonable settlements.

(b)  Any payments made to Executive pursuant to this Section 21 are subject to
and conditioned upon compliance with 12 U.S.C. Section 1828(k) and 12 C.F.R.
Part 359 and any rules or regulations promulgated thereunder.

22.  SUCCESSOR TO THE HOLDING COMPANY

The Holding Company shall require any successor or assignee, whether direct or
indirect, by purchase, merger, consolidation or otherwise, to all or
substantially all the business or assets of the Bank or the Holding Company, to
expressly and unconditionally assume and agree to perform the

                                      -13-
<PAGE>

Holding Company's obligations under this Agreement, in the same manner and to
the same extent that the Holding Company would be required to perform such
obligations if no such succession or assignment had taken place.

                                  SIGNATURES

     IN WITNESS WHEREOF, Citizens First Bancorp, Inc. has caused this Agreement
to be executed and its seal to be affixed hereunto by its duly authorized
officer and Executive has signed this Agreement, on the ___ day of _________,
______.

ATTEST:                             CITIZENS FIRST BANCORP, INC.

______________________              By: ___________________________________
Corporate Secretary                     For the Entire Board of Directors

          [SEAL]

WITNESS:                            EXECUTIVE

______________________              By: ___________________________________
Corporate Secretary                     [Executive]

                                      -14-<PAGE>

                                                                    Exhibit 10.4

                          CITIZENS FIRST SAVINGS BANK
                                    FORM OF
                      EMPLOYEE SEVERANCE COMPENSATION PLAN

                                  PLAN PURPOSE

     The purpose of the Citizens First Savings Bank Employee Severance
Compensation Plan is to assure for Citizens First Savings Bank  (the "Bank") the
services of Employees of the Bank in the event of a Change in Control
(capitalized terms are defined in section 2.1) of Citizens First Bancorp, Inc.
(the "Holding Company") or the Bank.  The benefits contemplated by the Plan
recognize the value to the Bank of the services and contributions of the
Employees of the Bank and the effect upon the Bank resulting from the
uncertainties of continued employment, reduced employee benefits, management
changes and relocations that may arise in the event of a Change in Control of
the Bank or the Holding Company.  The Bank's and the Holding Company's Boards of
Directors believe that it is in the best interests of the Bank and the Holding
Company to provide long-term and key Employees of the Bank with such benefits in
order to defray the costs and changes in employment status that could follow a
Change in Control.  The Board of Directors of the Bank believes that the Plan
will also aid the Bank in attracting and retaining highly-qualified individuals
who are essential to the Bank's success and that the Plan's assurance of fair
treatment of the Bank's Employees will reduce the distractions and other adverse
effects on the performance of its Employees' in the event of a Change in
Control.

                                   ARTICLE I
                             ESTABLISHMENT OF PLAN

     1.1  Establishment of Plan
          ---------------------

     As of the Effective Date of the Plan, the Bank hereby establishes an
employee severance compensation plan to be known as the "Citizens First Savings
Bank Employee Severance Compensation Plan."

     1.2  Applicability of Plan
          ---------------------

     The benefits provided by this Plan shall be available to all Employees of
the Bank, who, at or after the Effective Date, meet the eligibility requirements
of Article III.

     1.3  Contractual Right to Benefits
          -----------------------------

     This Plan establishes and vests in each Participant a contractual right to
the benefits to which each Participant is entitled hereunder, enforceable by the
Participant against the Employer, the Bank, or both.
<PAGE>

                                   ARTICLE II
                          DEFINITIONS AND CONSTRUCTION

     2.1  Definitions
          -----------

     Whenever used in the Plan, the following terms shall have the meanings set
forth below.

     (a)  "Annual Compensation" of a Participant means and includes all wages,
salary, bonus, and cash compensation, if any, paid or accrued by an Employer as
consideration for the Participant's service during the 12 months preceding the
date giving rise to the Participant's entitlement to benefits under this Plan
ended the date as of which Annual Compensation is to be determined, which are or
would be includable in the gross income of the Participant receiving the same
for federal income tax purposes.

     (b)  "Bank" means Citizens First Savings Bank or any successor of Citizens
First Savings Bank, as provided for in Article VII of the Plan.

     (c)  "Change in Control" shall mean an event of a nature that: (i) would be
required to be reported in response to Item 1(a) of the current report on Form
8-K, as in effect on the date hereof, pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 (the "Exchange Act"); or (ii) results in a
Change in Control of the Bank or the Holding Company within the meaning of the
Bank Change in Control Act and the Rules and Regulations promulgated by the
Federal Deposit Insurance Corporation ("FDIC") at 12 C.F.R. (S) 303.4(a) with
respect to the Bank, and the Rules and Regulations promulgated by the Office of
Thrift Supervision ("OTS") (or predecessor agency) with respect to the Holding
Company, as in effect on the date hereof; or (iii) without limitation such a
Change in Control shall be deemed to have occurred at such time as (A) any
"person" (as the term is used in Sections 13(d) and 14(d) of the Exchange Act)
is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Bank or the Holding
Company representing ___% or more of the Bank's or the Holding Company's
outstanding securities except for any securities of the Bank purchased by the
Holding Company in connection with the conversion of the Bank to the stock form
and any securities purchased by any tax-qualified employee benefit plan of the
Bank; or (B) individuals who constitute the Board of Directors on the date
hereof (the "Incumbent Board") cease for any reason to constitute at least a
majority thereof, provided that any person becoming a director subsequent to the
date hereof whose election was approved by a vote of at least ______ (__/__) of
the directors comprising the Incumbent Board, or whose nomination for election
by the Holding Company's stockholders was approved by the same Nominating
Committee serving under an Incumbent Board, shall be, for purposes of this
clause (B), considered as though he were a member of the Incumbent Board; or (C)
a plan of reorganization, merger, consolidation, sale of all or substantially
all the assets of the Bank or the Holding Company or similar transaction occurs
in which the Bank or Holding Company is not the resulting entity; or (D)
solicitations of shareholders of the Holding Company, by someone other than the
current management of the Holding Company, seeking stockholder approval of a
plan of reorganization, merger or consolidation of the Holding Company or Bank
or similar transaction with one or more corporations as a result of which the
outstanding shares of the class of securities then subject to the plan or
transaction are exchanged for or converted into cash or property or securities

                                       2
<PAGE>

not issued by the Bank or the Holding Company shall be distributed; or (E) a
tender offer is made for ____% or more of the voting securities of the Bank or
the Holding Company.

     (d)  "Conversion Date" means the date the Holding Company first issues
common stock pursuant to its initial public offering and mutual-to-stock
conversion.

     (e)  "Disability" means the permanent and total inability by reason of
mental or physical infirmity, or both, of an employee to perform the work
customarily assigned to him.  A medical doctor selected or approved by the Board
of Directors must advise the Board of Directors that it is either not possible
to determine if or when such Disability will terminate or that it appears
probable that such Disability will be permanent during the remainder of the
Employee's lifetime.

     (f)  "Effective Date" means the date the Plan is approved by the Board of
Directors of the Bank, or such other date as the Board of Directors shall
designate in its resolution approving the Plan.

     (g)  "Employee" means any employee of an Employer.

     (h)  "Employer" means the Bank or a subsidiary of the Bank or a parent of
the Bank which has adopted the Plan pursuant to Article VI of the Plan.

     (i)  "Expiration Date" means a date ten (10) years from the Effective Date
unless earlier terminated pursuant to Section 8.2 or extended pursuant to
Section 8.1.

     (j)  "Just Cause" shall mean termination because of Participant's personal
dishonesty, incompetence, willful misconduct, any breach of fiduciary duty
involving personal profit, intentional failure or unjustified neglect to perform
stated duties, conviction of or pleading guilty or nolo contendere to any crime
or offense punishable as a felony or to any crime or offense involving moral
turpitude, or violation of any final cease-and desist order.  In determining
incompetence, the acts or omissions shall be measured against standards
generally prevailing in the savings institutions industry.

     (k)  "Leave of Absence" and "LOA" mean (i) the taking of an authorized or
approved leave of absence under the provisions of the federal Family and Medical
Leave Act ("FMLA"), (ii) any state law providing qualitatively similar benefits
as the FMLA, or (iii) a leave of absence authorized under the policies of the
Bank.  "Leave of Absence" and "LOA" are defined in this paragraph for the
exclusive purposes of this Plan.

     (l)  "Payment" means the payment of severance compensation as provided in
Article IV of the Plan.

     (m)  "Participant" means an Employee who meets the eligibility requirements
of Article III of the Plan.

                                       3
<PAGE>

     (n) "Plan" means the Citizens First Savings Bank Employee Severance
Compensation Plan.

     (o) "Year of Service" means each consecutive 12-month period, beginning
with an Employee's date of hire and running without a termination of employment
in which an Employee is credited with at least one hour of service in each of
the 12 calendar months in such period.  The taking of an LOA shall not eliminate
a period of time from being a Year of Service if such period of time otherwise
qualifies as such.  Further if a particular 12-month period of time would not
otherwise qualify under the Plan as a Year of Service because one hour of
service is not credited during each month of such period due to the taking of a
LOA, then such period of time shall be deemed to be a Year of Service for all
purposes of this Plan.

     2.2  Applicable Law
          --------------

     The laws of the State of Michigan shall be the controlling law in all
matters relating to the Plan to the extent not preempted by Federal law.

     2.3  Severability
          ------------

     If a provision of this Plan shall be held illegal or invalid, the
illegality or invalidity shall not affect the remaining parts of the Plan and
the Plan shall be construed and enforced as if the illegal or invalid provision
had not been included.

                                  ARTICLE III
                                  ELIGIBILITY

     3.1  Participation
          -------------

     For purposes of this Plan, the term "Participant" shall include:

     (a)  Without regard to Years of Service, all Employees who were employed by
an Employer as of the Conversion Date; and

     (b)  All Employees employed after the Conversion Date who have completed at
least One Year of Service with an Employer at the time of any termination
pursuant to Section 4.2 of the Plan.

     Notwithstanding the foregoing, persons who have entered into and continue
to be covered by an employment contract or change in control agreement with an
Employer shall not be entitled to participate in this Plan.

                                       4
<PAGE>

     3.2  Duration of Participation
          -------------------------

     A Participant shall cease to be a Participant in the Plan when the
Participant ceases to be an Employee of an Employer, unless such Participant has
become entitled to a Payment under the Plan. A Participant entitled to receipt
of a Payment shall remain a Participant in this Plan until the full amount of
such Payment has been paid to the Participant.

                                  ARTICLE IV
                                   PAYMENTS

     4.1  Right to Payment
          ----------------

     A Participant shall be entitled to receive from his respective Employer a
Payment in the amount provided in Section 4.3 of the Plan if there has been a
Change in Control of the Bank or the Holding Company and if, within ______ (__)
months thereafter, the Participant's employment with an Employer terminates for
any reason specified in Section 4.2 of the Plan.  A Participant shall not be
entitled to a Payment if his termination of employment occurs by reason of
death, voluntary retirement, voluntary termination other than for reasons
specified in Section 4.2 of the Plan, Disability, or Just Cause.

     4.2  Reasons for Termination
          -----------------------

     Following a Change in Control, a Participant shall be entitled to a Payment
if his employment with an Employer is terminated, voluntarily or involuntarily,
for any one or more of the following reasons:

          (a)  The Employer reduces the Participant's base salary or rate of
compensation, as in effect immediately prior to the Change in Control.

          (b)  The Employer materially changes the Participant's function,
duties or responsibilities which would cause the Participant's position to be
one of lesser responsibility, importance or scope with the Employer than
immediately prior to the change in control.

          (c)  The Employer requires the Participant to change the location of
the Participant's job or office, so that such Participant will be based at a
location more than _____ (___) miles from the location of the Participant's job
or office immediately prior to the Change in Control provided that such new
location is not closer to Participant's home.

          (d)  The Employer materially reduces the benefits and perquisites
available to the Participant immediately prior to the Change in Control,
provided, however, that a material reduction in benefits and perquisites
generally provided to all Employees of the Employer on a nondiscriminatory basis
will not trigger a payment pursuant to this Plan.

          (e)  A successor to the Bank fails or refuses to assume the Bank's
obligations under this Plan, as required by Article VII of the Plan.

                                       5
<PAGE>

          (f)  The Bank or any successor to the Bank breaches any other
provisions of this Plan.

          (g)  The Employer terminates the employment of a Participant at or
after a Change in Control other than for Just Cause.

     4.3  Amount of Payment
          -----------------

          (a)  Each Participant entitled to a Payment under this Plan shall
receive from the Employer, a lump sum cash payment equal to ________th of his
Annual Compensation for each Year of Service up to a maximum of _______ of such
Annual Compensation.

          (b)  Notwithstanding the provisions of paragraph (a) above, if a
Payment to a Participant who is a "Disqualified Individual" shall be in an
amount which includes an "Excess Parachute Payment," the Payment hereunder to
that Participant shall be reduced to the maximum amount which does not include
an Excess Parachute Payment.  The terms "Disqualified Individual" and "Excess
Parachute Payment" shall have the same meanings as under Section 280G of the
Internal Revenue Code of 1986, as amended, or any successor provision thereto.

     A Participant shall not be required to mitigate damages on the amount of a
Payment by seeking other employment or otherwise, nor shall the amount of such
Payment be reduced by any compensation earned by the Participant as a result of
employment after termination of employment hereunder.

     4.4  Time of Payment
          ---------------

     The Payment to which a Participant is entitled shall be paid to the
Participant by the Employer or the successor to the Employer, in cash and in
full, not later than ___ (___) business days after the termination of the
Participant's employment.  If any Participant should die after termination of
employment but before all amounts have been paid, such unpaid amounts shall be
paid to the Participant's named beneficiary, if living, otherwise to the
personal representative on behalf of or for the benefit of the Participant's
estate.

                                   ARTICLE V
                    OTHER RIGHTS AND BENEFITS NOT AFFECTED

     5.1  Other Benefits
          --------------

     Neither the provisions of this Plan nor the Payment provided for hereunder
shall reduce any amounts otherwise payable, or in any way diminish the
Participant's rights as an Employee of an Employer, whether existing now or
hereafter, under any benefit, incentive, retirement, stock option, stock bonus,
stock ownership or any employment agreement or other plan or arrangement.

                                       6
<PAGE>

     5.2  Employment Status
          -----------------

     This Plan does not constitute a contract of employment or impose on the
Participant or the Participant's Employer any obligation to retain the
Participant as an Employee, to change the status of the Participant's
employment, or to change the Employer's policies regarding termination of
employment.

                                  ARTICLE VI
                            PARTICIPATING EMPLOYERS

     6.1  Upon approval by the Board of Directors of the Bank, this Plan may be
adopted by any Subsidiary or Parent of the Bank.  Upon such adoption, the
Subsidiary or Parent shall become an Employer hereunder and the provisions of
the Plan shall be fully applicable to the Employees of that Subsidiary or
Parent.  The term "Subsidiary" means any corporation in which the Bank, directly
or indirectly, holds a majority of the voting power of its outstanding shares of
capital stock.  The term "Parent" means any corporation which holds a majority
of the voting power of the Bank's outstanding shares of capital stock.

                                  ARTICLE VII
                             SUCCESSOR TO THE BANK

     7.1  The Bank shall require any successor or assignee, whether direct or
indirect, by purchase, merger, consolidation or otherwise, to all or
substantially all of the business or assets of the Bank, expressly and
unconditionally to assume and agree to perform the Bank's obligations under this
plan, in the same manner and to the same extent that the Bank would be required
to perform if no such succession or assignment had taken place.

                                  ARTICLE VIII
                      DURATION, AMENDMENT AND TERMINATION

     8.1  Duration
          --------

     If a Change in Control has not occurred, this Plan shall expire as of the
Expiration Date, unless sooner terminated as provided in Section 8.2 of the
Plan, or unless extended for an additional period or periods by resolution
adopted by the Board of Directors of the Bank.

     Notwithstanding the foregoing, if a Change in Control occurs this Plan
shall continue in full force and effect, and shall not terminate or expire until
such date as all Participants who become entitled to Payments hereunder shall
have received such Payments in full.

                                       7
<PAGE>

     8.2   Amendment and Termination
           -------------------------

     The Plan may be terminated or amended in any respect by resolution adopted
by a majority of the Board of Directors of the Bank, unless a Change in Control
has previously occurred.  If a Change in Control occurs, the Plan no longer
shall be subject to amendment, change, substitution, deletion, revocation or
termination in any respect whatsoever.

     8.3   Form of Amendment
           -----------------

     The form of any proper amendment or termination of the Plan shall be a
written instrument signed by a duly authorized officer or officers of the Bank,
certifying that the amendment or termination has been approved by the Board of
Directors.  A proper amendment of the Plan automatically shall effect a
corresponding amendment to each Participant's rights hereunder.  A proper
termination of the Plan automatically shall effect a termination of all
Participants' rights and benefits hereunder.

     8.4   No Attachment
           -------------

           (a)  Except as required by law, no right to receive payments under
this Plan shall be subject to anticipation, commutation, alienation, sale,
assignment, encumbrance, charge, pledge, or hypothecation, or to execution,
attachment, levy, or similar process or assignment by operation of law, and any
attempt, voluntary or involuntary, to affect such action shall be null, void,
and of no effect.

           (b)  This Plan shall be binding upon, and inure to the benefit of,
Employee and the Bank and their respective successors and assigns.

                                  ARTICLE IX
                            LEGAL FEES AND EXPENSES

     9.1   All reasonable legal fees and other expenses paid or incurred by a
party hereto pursuant to any dispute or question of interpretation relating to
this Plan shall be paid or reimbursed by the prevailing party in any legal
judgment, arbitration or settlement.

                                   ARTICLE X
                              REQUIRED PROVISIONS

     10.1  The Bank may terminate the Employee's employment at any time, but any
termination by the Bank, other than Termination for Cause, shall not prejudice
Employee's right to compensation or other benefits under this Agreement.
Employee shall not have the right to receive compensation or other benefits for
any period after termination for Just Cause as defined in Section 2.1 of the
Plan.

     10.2  If the Employee is suspended and/or temporarily prohibited from
participating in the conduct of the Bank's affairs by a notice served under
Section 8(e)(3) or 8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C.
(S)1818(e)(3) or (g)(1), the Bank's obligations under this contract

                                       8
<PAGE>

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

     10.3  If the Employee is removed and/or permanently prohibited from
participating in the conduct of the Bank's affairs by an order issued under
Section 8(e)(4) or 8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C.
(S)1818(e)(4) or (g)(1), all obligations of the Bank under this contract shall
terminate as of the effective date of the order, but vested rights of the
contracting parties shall not be affected.

     10.4  If the Bank is in default as defined in Section 3(x)(1) of the
Federal Deposit Insurance Act, 12 U.S.C. (S)1813(x)(1), all obligations of the
Bank under this contract shall terminate as of the date of default, but this
paragraph shall not affect any vested rights of the contracting parties.

                                  ARTICLE XI
                           ADMINISTRATIVE  PROVISIONS

     11.1  Plan Administrator.  The administrator of the Plan shall be under the
           ------------------
supervision of the Board of Directors or a Committee appointed by the Board of
Directors.  It shall be a principal duty of the Board of Directors to see that
the Plan is carried out in accordance with its terms, for the exclusive benefit
of persons entitled to participate in the Plan without discrimination among
them. The Board of Directors will have full power to administer the Plan in all
of its details subject, however, to the requirements of ERISA.  For this
purpose, the powers of the Board of Directors will include, but will not be
limited to, the following authority, in addition to all other powers provided by
this Plan:  (a) to make and enforce such rules and regulations as it deems
necessary or proper for the efficient administration of the Plan;  (b) to
interpret the Plan, its interpretation thereof in good faith to be final and
conclusive on all persons claiming benefits under the Plan;  (c) to decide all
questions concerning the Plan and the eligibility of any person to participate
in the Plan;  (d) to compute the amount of Payment that will be payable to any
Participant or other person in accordance with the provisions of the Plan, and
to determine the person or persons to whom such benefits will be paid;  (e) to
authorize Payments;  (f) to appoint such agents, counsel, accountants,
consultants and actuaries as may be required to assist in administering the
Plan; and  (g) to allocate and delegate its responsibilities under the Plan and
to designate other persons to carry out any of its responsibilities under the
Plan, any such allocation, delegation or designation to be by written instrument
and in accordance with Section 405 of ERISA.

     11.2  Named fiduciary.  The Board of Directors will be a "named fiduciary"
           ----------------
for purposes of Section 402(a)(1) of ERISA with authority to control and manage
the operation and administration of the Plan, and will be responsible for
complying with all of the reporting and disclosure requirements of Part 1 of
Subtitle B of Title I of ERISA.

                                       9
<PAGE>

     11.3  Claims and review procedures.
           ----------------------------

           (a)  Claims procedure.  If any person believes he is being denied any
                ----------------
rights or benefits under the Plan, such person may file a claim in writing with
the Board of Directors.  If any such claim is wholly or partially denied, the
Board of Directors will notify such person of its decision in writing.  Such
notification will be written in a manner calculated to be understood by such
person and will contain:  (i) specific reasons for the denial,  (ii)  specific
reference to pertinent Plan provisions,  (iii) a description of any additional
material or information necessary for such person to perfect such claim and an
explanation of why such material or information is necessary and  (iv)
information as to the steps to be taken if the person wishes to submit a request
for review.  Such notification will be given within ___ (___) days after the
claim is received by the Board of Directors (or within_______ days, if special
circumstances require an extension of time for processing the claim, and if
written notice of such extension and circumstances is given to such person
within the initial ____ day period).  If such notification is not given within
such period, the claim will be considered denied as of the last day of such
period and such person may request a review of his claim.

           (b)  Review procedure.  Within _____ (___) days after the date on
                ----------------
which a person receives a written notice of a denied claim (or, if applicable,
within ___ (___) days after the date on which such denial is considered to have
occurred) such person (or his duly authorized representative) may (i) file a
written request with the Board of Directors for a review of his denied claim and
of pertinent documents and  (ii) submit written issues and comments to the
Board.  The Board of Directors will notify such person of its decision in
writing.  Such notification will be written in a manner calculated to be
understood by such person and will contain specific reasons for the decision as
well as specific references to pertinent Plan provisions.  The decision on
review will be made within _______ (___) days after the request for review is
received by the Board of Directors (or within ________ (____) days, if special
circumstances require an extension of time for processing the requests such as
an election by the Board of Directors to hold a hearing, and if written notice
of such extension and circumstances is given to such person within the initial
_____ (___) day period).  If the decision on review is not made within such
period, the claim will be considered denied.

     11.4  Nondiscriminatory exercise of authority.  Whenever, in the
           ---------------------------------------
administration of the Plan, any discretionary action by the Board of Directors
is required, the Board of Directors shall exercise its authority in a
nondiscriminatory manner so that all persons similarly situated will receive
substantially the same treatment.

     11.5  Indemnification of Board.  The Bank will indemnify and defend to the
           ------------------------
fullest extent permitted by law any person serving on the Board of Directors or
as a member of a committee designated as Board of Directors (including any
person who formerly served as a Board of Directors member or as a member of such
committee) against all liabilities, damages, costs and expenses (including
attorneys fees and amounts paid in settlement of any claims approved by the
Bank) occasioned by any act or omission to act in connection with the Plan, if
such act or omission is in good faith.

     11.6  "Plan Year"  means the calendar year.
           -----------

                                       10
<PAGE>

     11.7  Benefits solely from general assets.  The benefits provided hereunder
           -----------------------------------
will be paid solely from the general assets of the Bank.  Nothing herein will be
construed to require the Bank or the Board of Directors to maintain any fund or
segregate any amount for the benefit of any Participant, and no Participant or
other person shall have any claim against, right to, or security or other
interest in, any fund, account or asset of the Bank from which any payment under
the Plan may be made.

                                       11
<PAGE>

Having been adopted by its Board of Directors, this Plan is executed by its duly
authorized officers this ___ day of _______________________,2001.

Attest:                                  CITIZENS FIRST SAVINGS BANK

_____________________                    By: _________________________________
                                             For the Entire Board of Directors

                                       12

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