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<TITLE>Choiceone Financial Services, Inc. Schedule 14A Proxy </TITLE>
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<CENTER><B><FONT SIZE=+2>SCHEDULE 14A</FONT></B>
<BR><B><FONT SIZE=-1>(Rule 14a-101)</FONT></B>
<P><B>INFORMATION REQUIRED IN PROXY STATEMENT</B>
<P><B>SCHEDULE 14A INFORMATION</B>
<P><B>Proxy Statement Pursuant to Section 14(a) of the Securities</B>
<BR><B>Exchange Act of 1934 (Amendment No. ______)</B></CENTER>
<P>


<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP COLSPAN="2" WIDTH="92%"><FONT SIZE=-1>Filed by the Registrant&nbsp;&nbsp;
[X]</FONT></TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP COLSPAN="2" WIDTH="92%">&nbsp;</TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP COLSPAN="2" WIDTH="92%"><FONT SIZE=-1>Filed by a Party other
than the Registrant&nbsp;&nbsp; [&nbsp;&nbsp; ]</FONT></TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="85%">&nbsp;</TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP COLSPAN="2" WIDTH="92%"><FONT SIZE=-1>Check the Appropriate
Box:</FONT></TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=CENTER WIDTH="8%">&nbsp;</TD>

<TD VALIGN=CENTER WIDTH="85%">&nbsp;</TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

    <TD VALIGN=CENTER WIDTH="8%"><FONT SIZE=-1>[&nbsp;&nbsp;&nbsp;]</FONT></TD>

<TD VALIGN=CENTER WIDTH="85%"><FONT SIZE=-1>Preliminary Proxy Statement</FONT></TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=CENTER WIDTH="8%">&nbsp;</TD>

<TD VALIGN=CENTER WIDTH="85%">&nbsp;</TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

    <TD VALIGN=CENTER WIDTH="8%"><FONT SIZE=-1>[X]</FONT></TD>

<TD VALIGN=CENTER WIDTH="85%"><FONT SIZE=-1>Definitive Proxy Statement</FONT></TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=CENTER WIDTH="8%">&nbsp;</TD>

<TD VALIGN=CENTER WIDTH="85%">&nbsp;</TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=CENTER WIDTH="8%"><FONT SIZE=-1>[&nbsp;&nbsp; ]</FONT></TD>

<TD VALIGN=CENTER WIDTH="85%"><FONT SIZE=-1>Definitive Additional Materials</FONT></TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=CENTER WIDTH="8%">&nbsp;</TD>

<TD VALIGN=CENTER WIDTH="85%">&nbsp;</TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=CENTER WIDTH="8%"><FONT SIZE=-1>[&nbsp;&nbsp; ]</FONT></TD>

<TD VALIGN=CENTER WIDTH="85%"><FONT SIZE=-1>Soliciting Material Pursuant
to Rule 14a-11(c) or Rule 14a-12</FONT></TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=CENTER WIDTH="8%">&nbsp;</TD>

<TD VALIGN=CENTER WIDTH="85%">&nbsp;</TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=CENTER WIDTH="8%"><FONT SIZE=-1>[&nbsp;&nbsp; ]</FONT></TD>

<TD VALIGN=CENTER WIDTH="85%"><FONT SIZE=-1>Confidential, For Use of the
Commission Only (as permitted by Rule 14a-6(e)(2))</FONT></TD>
</TR>
</TABLE>
<P>


<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<TR>
<TD VALIGN=TOP>
<CENTER><FONT SIZE=-1>CHOICEONE FINANCIAL SERVICES, INC.<HR SIZE="1"></FONT></CENTER>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<CENTER><FONT SIZE=-1>(Name of Registrant as Specified in Its Charter)</FONT></CENTER>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>&nbsp;<HR SIZE="1"></TD>
</TR>

<TR>
<TD VALIGN=TOP>
<CENTER><FONT SIZE=-1>(Name of Person(s) Filing Proxy Statement, if other
than the Registrant)</FONT></CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=-1>Payment of Filing Fee (Check the appropriate box):</FONT>
<BR>&nbsp;
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<TR>
<TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>[X]</FONT></TD>

<TD VALIGN=TOP WIDTH="92%"><FONT SIZE=-1>No fee required.</FONT></TD>
</TR>
</TABLE>
<P>
<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%">
<TR>
<TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>[&nbsp;&nbsp; ]</FONT></TD>

<TD VALIGN=TOP WIDTH="92%"><FONT SIZE=-1>Fee computed on table below per
Exchange Act Rules 14a-6(i)(1) and 0-11.</FONT></TD>
</TR>
</TABLE>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>(1)<P>

<HR SIZE="1"></FONT></TD>

<TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>Title of each class of securities
to which transaction applies:<P>

<HR SIZE="1"></FONT></TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>(2)<P>

<HR SIZE="1"></FONT></TD>

<TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>Aggregate number of securities
to which transaction applies:<P>

<HR SIZE="1"></FONT></TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>(3)<P>
<BR>

<HR SIZE="1">
</FONT></TD>

<TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>Per unit price or other underlying
value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth
the amount on which the filing fee is calculated and state how it was determined):<P>

<HR SIZE="1"></FONT></TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>(4)<P>

<HR SIZE="1"></FONT></TD>

<TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>Proposed maximum aggregate value
of transaction:<P>

<HR SIZE="1"></FONT></TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>(5)<P>

<HR SIZE="1"></FONT></TD>

<TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>Total fee paid:<P>

<HR SIZE="1"></FONT></TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>[&nbsp;&nbsp; ]</FONT></TD>

<TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>Fee paid previously with preliminary
materials.</FONT></TD>
</TR>
</TABLE>

<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [&nbsp;&nbsp; ]&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
paid previously. Identify the previous filing by registration statement
number, or the form or schedule and the date of its filing.</FONT>
<BR>&nbsp;
<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%">
<TR>
<TD VALIGN=TOP WIDTH="7%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="7%"><FONT SIZE=-1>(1)<P>

<HR SIZE="1"></FONT></TD>

<TD VALIGN=TOP WIDTH="86%"><FONT SIZE=-1>Amount previously paid:<P>

<HR SIZE="1"></FONT></TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="7%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="7%"><FONT SIZE=-1>(2)<P>

<HR SIZE="1"></FONT></TD>

<TD VALIGN=TOP WIDTH="86%"><FONT SIZE=-1>Form, Schedule or Registration
Statement No.:<P>

<HR SIZE="1"></FONT></TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="7%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="7%"><FONT SIZE=-1>(3)<P>

<HR SIZE="1"></FONT></TD>

<TD VALIGN=TOP WIDTH="86%"><FONT SIZE=-1>Filing party:<P>

<HR SIZE="1"></FONT></TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="7%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="7%"><FONT SIZE=-1>(4)<P>

<HR SIZE="1"></FONT></TD>

<TD VALIGN=TOP WIDTH="86%"><FONT SIZE=-1>Date filed:<P>

<HR SIZE="1"></FONT></TD>
</TR>
</TABLE>

<BR>
<BR>
<BR>
<CENTER>
</CENTER>
<HR SIZE="4" NOSHADE>
<BR>

<CENTER>
<P>[ChoiceOne Logo]

<P><B><FONT SIZE=-1>109 East Division</FONT></B>
<BR><B><FONT SIZE=-1>Sparta, Michigan 49345</FONT></B>
<BR>
<P><FONT SIZE=-1>April 3, 2000</FONT></CENTER>

<P><FONT SIZE=-1>To Our Shareholders:</FONT>
<P><FONT SIZE=-1>The Annual Meeting of Shareholders of ChoiceOne Financial
Services, Inc., Sparta, Michigan, will be held at the following location
and date:</FONT>
<CENTER>
<P><FONT SIZE=-1>Sparta Ridgeview Elementary School Gymnasium</FONT>
<BR><FONT SIZE=-1>557 South State Street</FONT>
<BR><FONT SIZE=-1>Sparta, Michigan 49345</FONT>
<P><FONT SIZE=-1>Thursday, April 27, 2000</FONT>
<BR><FONT SIZE=-1>6:00 p.m. Dinner - 7:00 p.m. Annual Meeting</FONT></CENTER>

<P><FONT SIZE=-1>The purpose of the meeting is set forth in the attached
"Notice of Annual Meeting of Shareholders."</FONT>
<P><FONT SIZE=-1>Please plan to join us before the meeting for an informal
sit-down dinner to be served at 6:00 p.m. Shareholders holding stock in
single ownership form are cordially invited to bring a guest. To assist
us in our planning, please complete and return the enclosed reservation
card by Thursday, April 20, 2000.</FONT>
<P><FONT SIZE=-1>The following Proxy Statement and enclosed form of proxy
are being furnished to holders of ChoiceOne Financial Services, Inc. Common
Stock on and after April 3, 2000. <B>Please be sure to sign, date and return
the enclosed proxy promptly whether or not you plan to attend the meeting</B>.
A proxy may be revoked at any time before it is exercised and shareholders
who are present at the meeting may withdraw their proxy and vote in person
if they wish to do so. Proxies must be signed by all owners as their names
appear on the proxy.</FONT>
<P><FONT SIZE=-1>Please join us at the 2000 Annual Meeting on the evening
of April 27, 2000. We look forward to seeing you there.</FONT>
<BR>&nbsp;
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<TR>
<TD VALIGN=TOP WIDTH="50%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="50%"><FONT SIZE=-1>Sincerely,</FONT>
<BR>
<P><FONT SIZE=-1>/s/ Jae M. Maxfield</FONT>
<P><FONT SIZE=-1>Jae M. Maxfield</FONT>
<BR><FONT SIZE=-1>President and Chief Executive Officer</FONT></TD>
</TR>
</TABLE>
<BR>
<BR>
<BR>
<CENTER>
</CENTER>
<HR SIZE="4" NOSHADE>
<BR>

<CENTER>
<P>[ChoiceOne Logo]

<P><B><FONT SIZE=-1>109 East Division</FONT></B>
<BR><B><FONT SIZE=-1>Sparta, Michigan 49345</FONT></B>
<BR>&nbsp;
<P><FONT SIZE=-1>NOTICE OF ANNUAL MEETING OF SHAREHOLDERS</FONT></CENTER>
<P>


<HR SIZE="1">
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The annual
meeting of shareholders of ChoiceOne Financial Services, Inc. will be held
in the Gymnasium at Sparta Ridgeview Elementary School, 557 South State
Street, Sparta, Michigan, on Thursday, April 27, 2000, at 7:00 p.m. local
time, for the following purposes:</FONT>
<BR>&nbsp;
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>1.</FONT></TD>

<TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>To elect directors.</FONT></TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="85%">&nbsp;</TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>2.</FONT></TD>

<TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>To approve and adopt an Amendment
to the Restated Articles of Incorporation to increase the number of authorized
shares of Common Stock.</FONT></TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="85%">&nbsp;</TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>3.</FONT></TD>

<TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>To approve and adopt the Amended
and Restated Executive Stock Incentive Plan.</FONT></TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="85%">&nbsp;</TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>4.</FONT></TD>

<TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>To transact any other business
that may properly come before the meeting.</FONT></TD>
</TR>
</TABLE>

<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shareholders
of record at the close of business on March 8, 2000, are entitled to notice
of and to vote at the meeting and any adjournment of the meeting.</FONT>
<BR>&nbsp;
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<TR>
<TD VALIGN=TOP WIDTH="46%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="54%"><FONT SIZE=-1>By Order of the Board of Directors,</FONT>
<BR>&nbsp;
<P><FONT SIZE=-1>/s/ Linda R. Pitsch</FONT>
<P><FONT SIZE=-1>Linda R. Pitsch</FONT>
<BR><FONT SIZE=-1>Secretary</FONT></TD>
</TR>
</TABLE>

<BR>&nbsp;
<P><FONT SIZE=-1>April 3, 2000</FONT>
<BR>
<BR>
<BR>


<TABLE BORDER="1" CELLSPACING="0" CELLPADDING="0" WIDTH="80%" ALIGN="CENTER">
<TR>
<TD VALIGN=TOP>
<CENTER><FONT SIZE=-1>It is important that your shares be represented at
the</FONT>
<BR><FONT SIZE=-1>meeting. Even if you expect to attend the meeting,</FONT>
<BR><B><FONT SIZE=-1>PLEASE SIGN, DATE AND RETURN YOUR PROXY PROMPTLY.</FONT></B></CENTER>
</TD>
</TR>
</TABLE>
<BR>
<BR>
<BR>
<CENTER>
</CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<P><B><FONT SIZE=-1>PROXY STATEMENT</FONT></B>
<CENTER>
<P><B><FONT SIZE=-1>CHOICEONE FINANCIAL SERVICES, INC.</FONT></B>
<P><B><FONT SIZE=-1>ANNUAL MEETING OF SHAREHOLDERS</FONT></B>
<P><FONT SIZE=-1>April 27, 2000</FONT></CENTER>

<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Proxy
Statement and the accompanying form of proxy are being furnished to holders
of common stock ("Common Stock") of ChoiceOne Financial Services, Inc.
(the "Corporation") on and after April 3, 2000, in connection with the
solicitation of proxies by the Corporation's Board of Directors to be voted
at the annual meeting of the Corporation's shareholders (the "Annual Meeting")
to be held on April 27, 2000, and any adjournment of that meeting. The
Annual Meeting will be held in the Gymnasium at Sparta Ridgeview Elementary
School, 557 South State Street, Sparta, Michigan, at 7:00 p.m. local time.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The purpose
of the Annual Meeting is to consider and vote upon the following matters:
(i) election of directors; (ii) approval and adoption of an amendment to
the Restated Articles of Incorporation to increase the number of authorized
shares of Common Stock; and (iii) approval of and adoption of the Amended
and Restated Executive Stock Incentive Plan. If a proxy in the form distributed
by the Corporation is properly signed and returned to the Corporation,
the shares represented by that proxy will be voted at the Annual Meeting
and any adjournment of that meeting. If a shareholder specifies a choice,
the proxy will be voted as specified. If no choice is specified, the shares
represented by the proxy will be voted for the election of all nominees
of the Board of Directors named in this Proxy Statement, for approval of
the amendment to the Restated Articles of Incorporation, and for approval
of the Amended and Restated Executive Stock Incentive Plan. The Corporation's
management does not know of any other matter to be presented at the Annual
Meeting. If other matters are presented, all shares represented by the
proxy will be voted in accordance with the judgment of the persons named
as proxies with respect to those other matters.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A proxy may
be revoked at any time prior to its exercise by written notice delivered
to the Secretary of the Corporation. A proxy may also be revoked by attending
and voting at the Annual Meeting.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Solicitation
of proxies will be made initially by mail. Directors, officers and employees
of the Corporation and ChoiceOne Bank (the "Bank") also may solicit proxies
in person, by telephone or by other means without additional compensation.
In addition, proxies may be solicited by nominees and other fiduciaries
who may mail material to or otherwise communicate with the beneficial owners
of shares held by them. All expenses of solicitation of proxies will be
paid by the Corporation.</FONT>
<P><B><FONT SIZE=-1>Election of Directors</FONT></B>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Board of
Directors has nominated the following three<B> </B>persons for reelection
to the Corporation's Board of Directors for terms expiring at the annual
meeting of shareholders to be held in 2003:</FONT>
<CENTER>
<P><FONT SIZE=-1>William F. Cutler, Jr.</FONT>
<BR><FONT SIZE=-1>Paul L. Johnson</FONT>
<BR><FONT SIZE=-1>Andrew W. Zamiara</FONT></CENTER>

<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each nominee
is presently a director of the Corporation whose term will expire at the
Annual Meeting. Seven other directors are serving terms that will expire
in 2001 and 2002. It is the intent of the persons named in the enclosed
proxy to vote for the election of the three<B> </B>nominees listed above.
The proposed nominees are willing to be elected and to serve. If any nominee
is unable to serve or is otherwise unavailable for election, which is not
contemplated, the incumbent Board of Directors may or may not select a
substitute nominee. If a substitute nominee is selected, all proxies will
be voted for the person so selected. If a substitute nominee is not selected,
all proxies will be voted for the election of the remaining nominees. Proxies
will not be voted for a greater number of persons than the number of nominees
named above.</FONT>
<BR>
<BR>
<BR>
<CENTER>
</CENTER>
<HR SIZE="4" NOSHADE>
<BR>

<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A plurality
of the shares represented in person or by proxy and voting on the election
of directors is required to elect directors. For the purpose of counting
votes on the election of directors, abstentions, broker non-votes and other
shares not voted will not be counted as shares voted, and the number of
shares of which a plurality is required will be reduced by the number of
shares not voted.</FONT>
<P>
<CENTER><B><FONT SIZE=-1>YOUR BOARD OF DIRECTORS RECOMMENDS THAT YOU</FONT></B>
<BR><B><FONT SIZE=-1>VOTE <U>FOR</U> ELECTION OF ALL NOMINEES AS DIRECTORS</FONT></B></CENTER>

<BR>
<BR>

<P><B><FONT SIZE=-1>Approval and Adoption of Amendment to Restated Articles
of Incorporation to Increase the Number of Authorized Shares of Common
Stock</FONT></B>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Board of
Directors proposes to amend Article III of the Corporation's Restated Articles
of Incorporation to increase the number of authorized shares of Common
Stock from 2,000,000 shares of Common Stock to 4,000,000 shares of Common
Stock. The purpose of the amendment is to provide additional shares for
future issuance.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As of March
8, 2000, there were 1,106,391 authorized shares of Common Stock issued
and outstanding. The Board of Directors has approved a five-for-four stock
split payable on May 22, 2000 to shareholders of record as of April 27,
2000, contingent upon shareholder approval of the proposed amendment.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Board of
Directors believes that it is advisable to have the additional authorized
shares available for possible future stock splits and dividends, employee
benefit plans, equity-based acquisitions and other corporate purposes that
might be proposed in the future. The Board of Directors has authorized
the issuance of shares for such purposes in the past. However, the Corporation
has no present plans or proposals to issue shares that would be authorized
by the proposed amendment.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management
continues to seek favorable acquisition opportunities. It has in the past
had, and anticipates that it will from time to time in the future have,
discussions with other organizations that might be interested in being
acquired. Authorized but unissued shares of Common Stock, or funds raised
in a public offering of shares, may be used for these purposes.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All of the
additional shares resulting from the increase in the number of authorized
shares of the Corporation's Common Stock would be of the same class, with
the same dividend, voting and liquidation rights, as the shares of Common
Stock presently outstanding. Shareholders have no preemptive rights to
acquire shares issued by the Corporation under its existing Restated Articles
of Incorporation, and shareholders would not acquire any such rights with
respect to such additional shares under the proposed amendment to the Corporation's
Restated Articles of Incorporation. Under some circumstances, issuance
of additional shares of Common Stock could dilute the voting rights, equity
and earnings per share of existing shareholders.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the proposed
amendment is adopted, the newly authorized shares would be unreserved and
available for issuance. No further shareholder authorization would be required
prior to the issuance of such shares by the Corporation.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This increase
in authorized but unissued Common Stock could be considered an anti-takeover
measure because the additional authorized but unissued shares of Common
Stock could be used by the Board of Directors to make a change in control
of the Corporation more difficult. The Board of Directors' purpose in recommending
this proposal is for the reasons discussed above and not as an anti-takeover
measure.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The first paragraph
of Article III of the Corporation's Restated Articles of Incorporation,
as amended, would read as follows:</FONT>
<BR>
<BR>
<BR>
<CENTER>
    <FONT SIZE="-1">2</FONT>
  </CENTER>
<HR SIZE="4" NOSHADE>
<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<TR>
<TD VALIGN=TOP WIDTH="14%">&nbsp;</TD>

<TD VALIGN=TOP COLSPAN="2" WIDTH="71%"><FONT SIZE=-1>"The total authorized
capital stock of the corporation is Four Million One Hundred Thousand (4,100,00)
shares of stock divided into two classes, as follows:</FONT></TD>

<TD VALIGN=TOP WIDTH="14%">&nbsp;</TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="14%">&nbsp;</TD>

<TD VALIGN=TOP COLSPAN="2" WIDTH="71%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="14%">&nbsp;</TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="14%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="9%"><FONT SIZE=-1>A.</FONT></TD>

<TD VALIGN=TOP WIDTH="63%"><FONT SIZE=-1>Four Million (4,000,000) shares
of common stock, which shall be called "Common Stock."</FONT></TD>

<TD VALIGN=TOP WIDTH="14%">&nbsp;</TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="14%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="63%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="14%">&nbsp;</TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="14%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="9%"><FONT SIZE=-1>B.</FONT></TD>

<TD VALIGN=TOP WIDTH="63%"><FONT SIZE=-1>One Hundred Thousand (100,000)
shares of preferred stock, which shall be called "Preferred Stock."</FONT></TD>

<TD VALIGN=TOP WIDTH="14%">&nbsp;</TD>
</TR>
</TABLE>

<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The affirmative
vote of holders of a majority of the outstanding shares of Common Stock
is required to approve and adopt the proposed amendment to the Corporation's
Restated Articles of Incorporation. For the purpose of counting votes on
this proposal, abstentions, broker non-votes and other shares not voted
have the same effect as a vote against the proposal.</FONT>
<BR>
<BR>
<BR>

<CENTER>
<B><FONT SIZE=-1>YOUR BOARD OF DIRECTORS RECOMMENDS A VOTE <U>FOR</U></FONT></B>
<BR><B><FONT SIZE=-1>APPROVAL OF THE AMENDMENT TO THE CORPORATION'S</FONT></B>
<BR><B><FONT SIZE=-1>RESTATED ARTICLES OF INCORPORATION</FONT></B></CENTER>

<BR>
<BR>

<B><FONT SIZE=-1>Approval of Amended and Restated Executive Stock Incentive
Plan</FONT></B>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Board of
Directors believes that the Corporation's long-term interests will be best
advanced by aligning the interests of its key employees with the interests
of its shareholders. Therefore, to retain and motivate officers and key
management employees of exceptional abilities, and in recognition of the
significant and extraordinary contributions to the long-term performance
and growth of the Corporation and its subsidiaries made by these individuals,
the Board of Directors and shareholders adopted the Executive Stock Incentive
Plan of 1997 (the "Plan"). The Board of Directors now desires to amend
the Plan, subject to Shareholder approval, to provide for an automatic
renewal each year of shares available for awards under the Plan (the "Amendment").
The Plan has primarily been used to grant stock options to senior officers
of the Corporation and its subsidiaries. However, the Board believes it
will in the future need to expand the group of employees to whom options
are granted in order to continue to attract and retain talented and motivated
employees. The Plan also permits the award of stock appreciation rights
and stock awards to officers and key employees of the Corporation and its
subsidiaries (together with stock options, "Incentive Awards").</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Currently,
a maximum of 33,075 shares of Common Stock are available for Incentive
Awards under the Plan (subject to certain antidilution adjustments). The
proposed amendment would initially authorize for awards under the Plan
a number of shares of Common Stock equal to 5% of the total number of issued
and outstanding shares of Common Stock on the date the Amendment is approved
by the Corporation's shareholders, plus an additional amount of up to 2%
of the number of issued and outstanding shares of Common Stock on an annual
basis during the term of the Plan. The effect of the Amendment would be
to maintain on an annual basis, in addition to the initial authorization
of shares, a maximum number of shares available for awards under the Plan
equal to 2% of the number of issued and outstanding shares of Common Stock.
The Amendment would also extend the current term of the Plan until April
26, 2010.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Persons eligible
to receive Incentive Awards under the Plan include corporate executive
officers (5 persons as of March 2000) and other corporate and subsidiary
officers and key employees (an indeterminate number of persons) of the
Corporation and its subsidiaries. Additional individuals may become executive
officers, corporate or subsidiary officers or key employees in the future
and could participate in the Plan. Officers and key employees of the Corporation
and its subsidiaries may be considered to have an interest in the Plan
because they may receive Incentive Awards under the Plan. The benefits
payable under the Plan are presently not determinable and the benefits
that would have been payable had the Plan been in effect during the most
recent fiscal year are similarly not </FONT>
<BR>
<BR>
<BR>
<CENTER>
    <FONT SIZE="-1">3</FONT>
  </CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<FONT SIZE=-1>determinable. The Plan is not qualified
under Section 401 (a) of the Internal Revenue Code of 1986, as amended
(the "Code") and is not subject to the Employee Retirement Income Security
Act of 1974.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following
is a summary of the principal features of the Plan. This summary is qualified
in its entirety by reference to the terms of the Plan set forth in Appendix
A to this Proxy Statement.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Plan is
administered by the Personnel and Benefits Committee of the Board of Directors
or such other committee as the Board may designate for that purpose (the
"Committee"). The Committee makes determinations, subject to the terms
of the Plan, as to the persons to receive Incentive Awards, the amount
of Incentive Awards to be granted to each person, the time of each grant,
the terms and duration of each grant and all other determinations necessary
or advisable for administration of the Plan.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The principal
stock option features of the Plan provide that the Corporation may grant
to participants options to purchase shares of Common Stock at stated prices
for specified periods of time. Options may qualify as incentive stock options
as defined in Section 422 of the Code ("Incentive Stock Options") or not
("Nonqualified Stock Options"), as determined by the Committee. The Committee
can award options for any amount of consideration, or no consideration,
as may be determined by the Committee.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Committee
sets forth the terms of individual grants of stock options in stock option
agreements. The stock option agreements contain such terms, conditions
and restrictions, consistent with the provisions of the Plan, as the Committee
determines to be appropriate. These restrictions could include vesting
requirements. Stock option agreements may provide for automatic regrants
of options with respect to shares surrendered to the Corporation in connection
with the exercise of an outstanding stock option. The exercise price per
share is determined by the Committee and must be a price equal to or higher
than the par value of Common Stock on the date of grant. The exercise price
of Incentive Stock Options must be at least equal to the market value on
the date of grant. On December 31, 1999, the market value of Common Stock,
based on the average of the bid and asked prices quoted to the Corporation
by the market makers in the Corporation's Common Stock, was $27.42 per
share. When exercising all or a portion of a stock option, a participant
can pay with cash or, with the consent of the Committee, with shares of
Common Stock or other consideration. If shares of Common Stock are used
to pay the exercise price and the Committee consents, a participant can
use the value of shares received upon exercise for further exercises in
a single transaction, permitting a participant to fully exercise a large
stock option with a relatively small initial cash or stock payment. The
Committee can also authorize payment of all or a portion of the stock option
price in the form of a promissory note or installments on terms approved
by the Committee.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Although the
term of each stock option would be determined by the Committee, no stock
option is exercisable under the Plan after the expiration of 10 years from
the date it was granted. Stock options generally are exercisable for limited
periods of time in the event a stock option holder dies, becomes disabled
or is terminated without cause. If a stock option holder is terminated
for cause, the stock option holder would forfeit all rights to exercise
any outstanding stock options. If a stock option holder retires after age
55 and after completing 6 years of service, or as otherwise determined
by the Committee, the option holder could exercise options for the shorter
of 3 years or the remainder of the terms of the options, but only to the
extent the participant is entitled to exercise the options on the date
of retirement. If a stock option holder terminates employment due to consensual
severance (as defined in the Plan), the Committee may, in its discretion,
permit the participant to exercise options for a period of time not exceeding
3 years after such termination. Incentive Stock Options granted to participants
under the Plan generally are not transferable except by will or by the
laws of descent and distribution. Nonqualified Stock Options are transferable
unless transfer is restricted by the terms of the grant.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For federal
income tax purposes, a participant does not recognize income and the Corporation
does not receive a deduction at the time an Incentive Stock Option is granted.
A participant exercising an Incentive Stock Option does not recognize income
at the time of the exercise. The difference between the market value and
the exercise price is, however, a tax preference item for purposes of calculating
alternative minimum tax. Upon sale of the stock, as long as the participant
held the stock for at least 1 year after the exercise of the stock option
and at least 2 years after the grant of the stock option, the participant's
basis would equal the exercise price, the participant would pay tax on
the difference between the sale proceeds and the exercise price as capital
gain, and the Corporation would receive no deduction for federal income
tax purposes. If, before the expiration of either of the above holding</FONT>
<BR>
<BR>
<BR>
<CENTER>
    <FONT SIZE="-1">4</FONT>
  </CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<FONT SIZE=-1>
periods, the participant sold shares acquired under an Incentive Stock
Option, the tax deferral would be lost, the participant would recognize
compensation income equal to the difference between the exercise price
and the fair market value at the time of exercise (but not more than the
maximum amount that would not result in a loss on the disposition), and
the Corporation would receive a corresponding deduction for federal income
tax purposes. Additional gains, if any, recognized by the participant would
result in the recognition of short- or long-term capital gain.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Under current
federal income tax laws, a participant does not recognize any income and
the Corporation does not receive a deduction at the time a Nonqualified
Stock Option is granted. If a Nonqualified Stock Option is exercised, the
participant would recognize compensation income in the year of exercise
equal to the difference between the exercise price and the fair market
value on the date of exercise and the Corporation would receive a corresponding
deduction for federal income tax purposes. The participant's tax basis
in the shares acquired would be increased by the amount of compensation
income recognized. Sale of the stock after exercise would result in recognition
of short- or long-term capital gain or loss.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Corporation
can withhold from any cash otherwise payable to a participant or require
a participant to remit to the Corporation an amount sufficient to satisfy
federal, state and local withholding taxes and employment-related tax requirements.
Tax withholding obligations may be satisfied by withholding Common Stock
to be received upon exercise of an option or by delivery to the Corporation
of previously owned shares of Common Stock.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In addition
to stock options, the Committee can also grant stock appreciation rights
that would be subject to such terms and conditions as the Committee determines.
A stock appreciation right could relate to a particular option and could
be granted at the same time or after a related option is granted. A stock
appreciation right granted in tandem with an option would permit a participant
to receive, in exchange for the right to exercise a related option, a payment
from the Corporation in cash, stock or other consideration equal to the
difference between the market value of the shares at the time of exercise
of the stock appreciation right and the exercise price of such option.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Plan also
gives the Committee authority to make stock awards. A stock award of the
Corporation's Common Stock is subject to terms and conditions determined
by the Committee at the time of the award. Stock award recipients generally
have all voting, dividend, liquidation and other rights with respect to
shares of Common Stock received upon becoming the holder of record of the
Common Stock. However, the Committee can impose restrictions on the assignment
or transfer of Common Stock awarded under a stock award.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Committee
may include in an Incentive Award provisions for the acceleration of any
vesting or other similar requirements, for the elimination of any restrictions
upon an Incentive Award, or for participants to receive cash in lieu of
outstanding stock options upon a "change in control" (as defined in the
Plan or otherwise in an Incentive Award) of the Corporation.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Board of
Directors may terminate the Plan at any time and may from time to time
amend the Plan. No amendment may impair any outstanding Incentive Award
without the consent of the participant except according to the terms of
the Plan or Incentive Award. No termination, amendment or modification
may become effective with respect to any Incentive Award outstanding under
the Plan without the prior written consent of the participant holding the
award unless the amendment or modification operates to the benefit of the
participant. Subject to shareholder approval, the Amendment would take
effect on April 27, 2000. Unless previously terminated by the Board of
Directors, no awards could be made under the Plan after April 26, 2010.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The affirmative
vote of the holders of a majority of the shares of Common Stock present
in person or by proxy and voting on this proposal is required to approve
the Amendment. For purposes of counting votes on this proposal, abstentions,
broker non-votes and other shares not voted will not be counted as shares
voted on the proposal, and the number of shares of which a majority is
required will be reduced by the number of shares not voted.</FONT>
<P>

<CENTER><B><FONT SIZE=-1>YOUR BOARD OF DIRECTORS RECOMMENDS THAT YOU VOTE</FONT></B>
<BR><B><FONT SIZE=-1><U>FOR</U> APPROVAL OF THE AMENDED AND RESTATED EXECUTIVE
STOCK</FONT></B>
<BR><B><FONT SIZE=-1>INCENTIVE PLAN</FONT></B></CENTER>

<BR>
<BR>
<BR>
<CENTER>
    <FONT SIZE="-1">5</FONT>
  </CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<FONT SIZE=-1><B><FONT SIZE=-1>Voting Securities</FONT></B>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Holders of record
  of Common Stock at the close of business on March 8, 2000, will be entitled
  to vote at the Annual Meeting on April 27, 2000, and any adjournment of that
  meeting. As of March 8, 2000, there were 1,106,391 shares of Common Stock issued
  and outstanding. Each share of Common Stock is entitled to one vote on each
  matter submitted for shareholder action.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As of March 8, 2000
  no shareholder is known to the Corporation's management to have been the beneficial
  owner of more than 5% of the outstanding shares of Common Stock.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following table
  sets forth information concerning the number of shares of Common Stock held
  as of December 31, 1999, by each of the Corporation's directors and nominees
  for director, each of the named executive officers and all of the Corporation's
  directors, nominees for director and executive officers as a group:</FONT> <BR>
  &nbsp; <BR>
  &nbsp; &nbsp;
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" BORDERCOLOR="#ffffff" >
  <TR>
    <TD VALIGN=BOTTOM WIDTH="23%">&nbsp;</TD>
    <TD VALIGN=BOTTOM WIDTH="10%">&nbsp;</TD>
    <TD VALIGN=BOTTOM COLSPAN="5">
      <CENTER>
	<FONT SIZE=-1>Amount and Nature of</FONT> <BR>
	<FONT SIZE=-1>Beneficial Ownership of Common Stock(1)
	<HR SIZE="1">
	</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=BOTTOM WIDTH="4%">&nbsp;</TD>
    <TD VALIGN=BOTTOM WIDTH="15%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=BOTTOM WIDTH="23%">
      <CENTER>
	<FONT SIZE=-1>Name of</FONT> <BR>
	<U><FONT SIZE=-1>Beneficial Owner</FONT></U>
      </CENTER>
    </TD>
    <TD VALIGN=BOTTOM WIDTH="10%">&nbsp;</TD>
    <TD VALIGN=BOTTOM WIDTH="15%">
      <CENTER>
	<FONT SIZE=-1>Sole Voting</FONT> <BR>
	<FONT SIZE=-1>and</FONT> <BR>
	<FONT SIZE=-1>Dispositive</FONT> <BR>
	<FONT SIZE=-1>Power
	<HR SIZE="1">
	</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=BOTTOM WIDTH="3%">&nbsp;</TD>
    <TD VALIGN=BOTTOM WIDTH="14%">
      <CENTER>
	<FONT SIZE=-1>Shared</FONT> <BR>
	<FONT SIZE=-1>Voting or</FONT> <BR>
	<FONT SIZE=-1>Dispositive</FONT> <BR>
	<FONT SIZE=-1>Power(2)
	<HR SIZE="1">
	</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=BOTTOM WIDTH="4%">&nbsp;</TD>
    <TD VALIGN=BOTTOM WIDTH="12%">
      <CENTER>
	<FONT SIZE=-1>Total</FONT> <BR>
	<FONT SIZE=-1>Beneficial</FONT> <BR>
	<FONT SIZE=-1>Ownership
	<HR SIZE="1">
	</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=BOTTOM WIDTH="4%">&nbsp;</TD>
    <TD VALIGN=BOTTOM WIDTH="15%">
      <CENTER>
	<FONT SIZE=-1>Percent</FONT> <BR>
	<FONT SIZE=-1>of</FONT> <BR>
	<FONT SIZE=-1>Class
	<HR SIZE="1">
	</FONT>
      </CENTER>
    </TD>
  </TR>
</TABLE>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
  <TR>
    <TD VALIGN=TOP WIDTH="34%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="3%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="2%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="34%"><FONT SIZE=-1>Frank G. Berris</FONT></TD>
    <TD VALIGN=TOP WIDTH="3%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">
      <DIV ALIGN=right><FONT SIZE=-1>12,187</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>--&nbsp;</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="2%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>12,187</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">
      <DIV ALIGN=right><FONT SIZE=-1>1.1%</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="34%"><FONT SIZE=-1>Lawrence D. Bradford</FONT></TD>
    <TD VALIGN=TOP WIDTH="3%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">
      <DIV ALIGN=right><FONT SIZE=-1>358</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>12,127</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="2%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>12,485</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">
      <DIV ALIGN=right><FONT SIZE=-1>1.1%</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="34%"><FONT SIZE=-1>William F. Cutler, Jr.</FONT></TD>
    <TD VALIGN=TOP WIDTH="3%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">
      <DIV ALIGN=right><FONT SIZE=-1>--&nbsp;</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>10,056</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="2%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>10,056</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">
      <DIV ALIGN=right><FONT SIZE=-1>*</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="34%"><FONT SIZE=-1>Lewis G. Emmons</FONT></TD>
    <TD VALIGN=TOP WIDTH="3%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">
      <DIV ALIGN=right><FONT SIZE=-1>10,386</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>--&nbsp;</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="2%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>10,386</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">
      <DIV ALIGN=right><FONT SIZE=-1>*</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="34%"><FONT SIZE=-1>Stuart Goodfellow</FONT></TD>
    <TD VALIGN=TOP WIDTH="3%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">
      <DIV ALIGN=right><FONT SIZE=-1>17,534</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>358</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="2%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>17,892</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">
      <DIV ALIGN=right><FONT SIZE=-1>1.6%</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="34%"><FONT SIZE=-1>Paul L. Johnson</FONT></TD>
    <TD VALIGN=TOP WIDTH="3%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">
      <DIV ALIGN=right><FONT SIZE=-1>--&nbsp;</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>11,019</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="2%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>11,019</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">
      <DIV ALIGN=right><FONT SIZE=-1>1.0%</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="34%"><FONT SIZE=-1>Jae M. Maxfield</FONT></TD>
    <TD VALIGN=TOP WIDTH="3%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">
      <DIV ALIGN=right><FONT SIZE=-1>11,897</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%"><FONT SIZE=-1>(3)</FONT></TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>6,923</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="2%"><FONT SIZE=-1>(4)</FONT></TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>18,820</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>(3)(4)</FONT></TD>
    <TD VALIGN=TOP WIDTH="9%">
      <DIV ALIGN=right><FONT SIZE=-1>1.7%</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="34%"><FONT SIZE=-1>Jon E. Pike</FONT></TD>
    <TD VALIGN=TOP WIDTH="3%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">
      <DIV ALIGN=right><FONT SIZE=-1>1,852</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>1,618</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="2%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>3,470</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">
      <DIV ALIGN=right><FONT SIZE=-1>*</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="34%"><FONT SIZE=-1>Linda R. Pitsch</FONT></TD>
    <TD VALIGN=TOP WIDTH="3%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">
      <DIV ALIGN=right><FONT SIZE=-1>321</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>473</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="2%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>794</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">
      <DIV ALIGN=right><FONT SIZE=-1>*</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="34%"><FONT SIZE=-1>Andrew W. Zamiara</FONT></TD>
    <TD VALIGN=TOP WIDTH="3%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">
      <DIV ALIGN=right><FONT SIZE=-1>1,806</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>674</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="2%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>2,480</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">
      <DIV ALIGN=right><FONT SIZE=-1>*</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="34%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="3%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="2%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="34%"><FONT SIZE=-1>All directors and</FONT> <BR>
      <FONT SIZE=-1>&nbsp;&nbsp;&nbsp; executive officers&nbsp;</FONT> <BR>
      <FONT SIZE=-1>&nbsp;&nbsp;&nbsp; as a group</FONT></TD>
    <TD VALIGN=TOP WIDTH="3%">&nbsp;</TD>
    <TD VALIGN=BOTTOM WIDTH="6%">
      <DIV ALIGN=right><FONT SIZE=-1>57,182</FONT></DIV>
    </TD>
    <TD VALIGN=BOTTOM WIDTH="9%"><FONT SIZE=-1>(3)</FONT></TD>
    <TD VALIGN=BOTTOM WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>43,317</FONT></DIV>
    </TD>
    <TD VALIGN=BOTTOM WIDTH="2%"><FONT SIZE=-1>(4)</FONT></TD>
    <TD VALIGN=BOTTOM WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=BOTTOM WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>100,499</FONT></DIV>
    </TD>
    <TD VALIGN=BOTTOM WIDTH="8%"><FONT SIZE=-1>(3)(4)</FONT></TD>
    <TD VALIGN=BOTTOM WIDTH="9%">
      <DIV ALIGN=right><FONT SIZE=-1>9.0%</FONT></DIV>
    </TD>
    <TD VALIGN=BOTTOM WIDTH="9%">&nbsp;</TD>
  </TR>
</TABLE>
<P><FONT SIZE=-1>____________________________<BR>
  </FONT>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
  <TR>
    <TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>*</FONT></TD>
    <TD VALIGN=TOP WIDTH="92%"><FONT SIZE=-1>Less than 1%.</FONT></TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="92%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>(1)</FONT></TD>
    <TD VALIGN=TOP WIDTH="92%"><FONT SIZE=-1>The numbers of shares stated are
      based on information furnished by each person listed and include shares
      personally owned of record by that person and shares that under applicable
      regulations are considered to be otherwise beneficially owned by that person.
      Voting power includes the power to vote or direct the voting of the security.
      Dispositive power includes the power to dispose or direct the disposition
      of the security. A person is considered the beneficial owner of a security
      if the person has a right to acquire beneficial ownership of the security
      within 60 days.</FONT></TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="92%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>(2)</FONT></TD>
    <TD VALIGN=TOP WIDTH="92%"><FONT SIZE=-1>These numbers include shares as to
      which the listed person is legally entitled to share voting or dispositive
      power by reason of joint ownership, trust or other contract or property
      right, and shares held by spouses and minor children over whom the listed
      person may have influence by reason of relationship.</FONT></TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="92%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>(3)</FONT></TD>
    <TD VALIGN=TOP WIDTH="92%"><FONT SIZE=-1>These numbers include 8,269 shares
      of Common Stock that may be acquired by Mr. Maxfield through the exercise
      of stock options within 60 days of December 31, 1999.</FONT></TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="92%">&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<BR>
<BR>
<CENTER>
  6
</CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%">
  <TR>
    <TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>(4)</FONT></TD>
    <TD VALIGN=TOP WIDTH="92%"><FONT SIZE=-1>Includes 6,923 shares of Common Stock
      held by the ChoiceOne Bank 401(k) and Employee Stock Ownership Plan in the
      accounts of other employees, of which Mr. Maxfield is an administrator.
      Mr. Maxfield disclaims beneficial ownership of such shares. Of such 6,923
      shares of Common Stock, 1,393 shares have been included as beneficially
      owned in this table by other directors and executive officers.</FONT></TD>
  </TR>
</TABLE>
<P><B><FONT SIZE=-1>Directors and Executive Officers</FONT></B>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Corporation's
  Board of Directors is divided into three classes, which are as nearly equal
  in number as possible. Each class of directors serves a successive three-year
  term of office. An individual may not continue to serve on the Board of Directors
  after attaining age 70.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Three members of the
  present Board of Directors are standing for reelection. Seven other directors
  are serving terms that will expire in 2001 and 2002.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Biographical information
  concerning the Corporation's directors and executive officers, including the
  three nominees who are nominated for election to the Board of Directors at the
  Annual Meeting, is presented below. Except as otherwise indicated, all directors,
  nominees for director and executive officers have had the same principal employment
  for over five years. All executive officers are appointed annually and serve
  at the pleasure of the Board of Directors. All of the directors of the Corporation
  also serve as directors of the Bank.</FONT> <BR>
  &nbsp;
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%"><B><I><FONT SIZE=-1>Nominees for Election as Directors
      with Terms Expiring in 2003</FONT></I></B></TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <I>William F. Cutler, Jr.</I> (age 52) is the former Vice President of the
      H. H. Cutler Company, an apparel manufacturer. Mr. Cutler joined the H.
      H. Cutler Company in 1970 and served in various management and executive
      capacities until January 1994. The H. H. Cutler Company was sold to VF (Vanity
      Fair) Corporation in January 1994. Mr. Cutler has been a director of the
      Corporation and the Bank since October 1993. Mr. Cutler served as a director
      of the Sparta Health Center from 1981 until 1996.</FONT></TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>

  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <I>Paul L. Johnson</I> (age 50) is President of Falcon Resources Inc. in
      Belmont, Michigan, a sales, engineering and design firm for the automotive
      and furniture industries. Mr. Johnson has been a director of the Corporation
      and the Bank since July 1999</FONT>.</TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>

<TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <I>Andrew W. Zamiara</I> (age 59) is a registered pharmacist and President/Manager
      of Momber Pharmacy and Gift Shop in Sparta, Michigan and Momber Hallmark
      in Rockford, Michigan. Mr. Zamiara has been a director of the Corporation
      and the Bank since August 1990.</FONT></TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%"><B><I><FONT SIZE=-1>Directors with Terms Expiring
      in 2002:</FONT></I></B></TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <I>Jae M. Maxfield</I> (age 54) has been a director and President and Chief
      Executive Officer of the Corporation and the Bank since January 1995 and
      a director of ChoiceOne Insurance Agencies, Inc. since January 1996. From
      1993 until January 1995, Mr.. Maxfield operated Maxfield Associates, an
      association of financial advisors engaged in providing financial services
      to business and professional occupations. Mr. Maxfield served as President
      and Chief Executive Officer of Society Bank in Monroe, Michigan, formerly
      a subsidiary of First of America Bank, from 1988 until 1993 and, before
      that, served Society Bank in various executive capacities. Mr. Maxfield
      also is a director of West Shore Computer Services, Inc., a data processing
      company, in which the Bank owns a 20% interest and a director of Michigan
      Bankers Title of West Michigan, L.L.C., a title insurance agency, in which
      the Bank owns a 6% interest.</FONT></TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <I>Jon E. Pike</I> (age 58) is a certified public accountant and Chairman
      of the Board of Beene Garter LLP, certified public accountants, of Grand
      Rapids, Michigan. Mr. Pike has been Chairman of the Board of Directors since
      August 1998 and a director of the Corporation and the </FONT></TD>
  </TR>
</TABLE>
<BR>
<BR>
<BR>
<CENTER>
  7
</CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%">
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>Bank since September 1990. Mr. Pike
      is also a director of Wm. A. Rogers &amp; Co., a retail hardware business
      in Sparta, Michigan, and President and a director of B.G. Systems, Inc.,
      a computer software business affiliated with Beene Garter LLP.</FONT></TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <I>Linda R. Pitsch</I> (age 52) has been a director of the Corporation and
      the Bank since December 1994 and Secretary of the Corporation and the Bank
      since February 1995. Ms. Pitsch also has served as Senior Vice President
      and Cashier of the Bank since January 1993. Ms. Pitsch has been an employee
      of the Bank since September 1969, serving in various management and executive
      capacities. Ms. Pitsch has been a director and Secretary of the Board for
      ChoiceOne Insurance Agencies, Inc. since December 1998 and a director and
      Secretary of ChoiceOne Travel, Inc. since August 1997. Ms. Pitsch is an
      instructor at Davenport College of Business, serving on its Accounting Advisory
      Board, and Secretary, Treasurer and Director of Strawberry Pines Condo Association.</FONT></TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%"><B><I><FONT SIZE=-1>Directors with Terms Expiring
      in 2001</FONT></I></B></TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <I>Frank G. Berris</I> (age 52) is President of and owns American Gas &amp;
      Oil, Inc., a distributor of petroleum products and operator of gas stations.
      Mr. Berris is also Past President of West Michigan Oilman's Club and a member
      of the Michigan Petroleum Association/Michigan Association of Convenience
      Stores. Mr. Berris has been a director of the Corporation and the Bank since
      August 1991.</FONT></TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <I>Lawrence D. Bradford</I> (age 60) is President of ChoiceOne Insurance
      Agencies, Inc., an insurance agency that is a subsidiary of the Bank. Mr.
      Bradford was a co-owner of the insurance agency prior to its acquisition
      by the Bank in January 1996. Mr. Bradford has been a director of the Corporation
      since 1986 and a director of the Bank since 1974.</FONT></TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <I>Lewis G. Emmons</I> (age 55) is President and a director of Emmons Development-Real
      Estate and Special Projects Coordinator for Great Day Food Stores. Mr. Emmons
      has been a director of the Corporation since 1986 and a director of the
      Bank since 1978.</FONT></TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <I>Stuart Goodfellow</I> (age 56) owns Goodfellow Blueberry Farms and Goodfellow
      Vending Services, a vending company. Mr. Goodfellow is also past Vice President
      and a director of the Michigan Blueberry Growers Association. Mr. Goodfellow
      has been a director of the Corporation and the Bank since August 1991.</FONT></TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%"><B><I><FONT SIZE=-1>Executive Officers who are
      not Directors</FONT></I></B></TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <I>Denis L. Crosby</I> (age 57) has been Vice President of the Corporation
      since 1991. Mr. Crosby has been Senior Vice President of Commercial Services
      at the Bank since 1990 and Vice President of Loans at the Bank since 1986.
      From 1972 until joining the Bank in 1986, Mr. Crosby was a commercial loan
      officer at various affiliates of Michigan National Bank. Mr. Crosby is a
      member of the Sparta Downtown Development Authority and a member of the
      Economic Development Foundation of Western Michigan.</FONT></TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <I>Deanne L. Gavalis</I> (age 34) has been Vice President of Retail Services
      for the Bank since January 1999. Prior to her employment at the Bank, Ms.
      Gavalis was employed by National City Bank, formerly known as First of America
      Bank, for over 10 years.</FONT></TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <I>Thomas L. Lampen</I> (age 44), a Certified Public Accountant, has been
      Vice President and Chief Financial Officer of the Bank since January 1992
      and Treasurer of the Corporation since</FONT></TD>
  </TR>
</TABLE>
<BR>
<BR>
<BR>
<CENTER>
  8
</CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="100%">
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="85%"><FONT SIZE=-1> April 1987. Prior to his employment
      with the Corporation, Mr. Lampen was employed by Grant Thornton, a national
      accounting firm.</FONT></TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
  </TR>
</TABLE>
<P><B><FONT SIZE=-1>Board Committees and Meetings</FONT></B>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Corporation's
  Board of Directors has, among others, the following standing committees:</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><I>Audit Committee</I></B>.&nbsp;
  The members of the Audit Committee as of March 8, 2000, were Jon E. Pike (Chairman),
  Lewis G. Emmons, Stuart Goodfellow and Paul L. Johnson. The Audit Committee
  is responsible for causing a suitable examination of the financial records and
  operations of the Corporation and the Bank to be made by the internal auditor
  of the Corporation through a program of continuous internal audits. The Audit
  Committee recommends to the Corporation's Board of Directors independent certified
  public accountants for employment to examine the financial statements of the
  Corporation and make such additional examinations as the committee considers
  advisable. The Audit Committee also reviews reports of examination of the Corporation
  and the Bank received from regulatory authorities and reports to the Board of
  Directors at least once each calendar year the results of examinations made
  and such conclusions and recommendations as the committee considers appropriate
  concerning the scope of the Corporation's and the Bank's procedures for internal
  auditing and the results thereof. The Audit Committee met 3 times during 1999.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><I>Personnel and
  Benefits Committee</I></B>. The members of the Personnel and Benefits Committee
  as of March 8, 2000, were Andrew W. Zamiara (Chairman), William F. Cutler, Jr.,
  Lewis G. Emmons, Stuart Goodfellow and Paul L. Johnson. Mr. Maxfield attends
  meetings but is not a member of this committee. The Personnel and Benefits Committee
  performs the function of a compensation committee and receives recommendations
  from senior management and makes recommendations to the Board of Directors concerning
  the compensation and benefits of the officers of the Corporation and the Bank.
  The Personnel and Benefits Committee also reviews the provisions of the Personnel
  Manual and sets the parameters for the Bank's incentive bonus plan. The Personnel
  and Benefits Committee met 3 times during 1999.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><I>Executive and
  Loan Review Committee</I></B>. The members of the Executive and Loan Review
  Committee as of March 8, 2000, were Jon E. Pike (Chairman), Frank G. Berris,
  Lawrence D. Bradford, William F. Cutler, Jr., Lewis G. Emmons, Stuart Goodfellow,
  Paul L. Johnson, Jae M. Maxfield, Andrew W. Zamiara and Denis L. Crosby. Mr.
  Crosby is an executive officer of the Bank. This committee reviews all aspects
  of loan activity for the Bank for the preceding months, including new loans
  of $25,000 or more, problem loans and loans identified by examiners, loans 60
  days or more past due and non-accrual loans. This committee also approves loan
  charge-offs and extensions of credit of up to 15% of the capital and surplus
  of the Bank. The Executive and Loan Review Committee may also act in other capacities
  as authorized by the Board of Directors. The Executive and Loan Review Committee
  met 19 times during 1999.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><I>Branching and
  Acquisitions Committee</I></B>. The members of the Branching and Acquisitions
  Committee as of March 8, 2000, were Frank G. Berris, Lawrence D. Bradford, William
  F. Cutler, Jr., Paul L. Johnson, Jae M. Maxfield and Jon E. Pike. The purpose
  of this committee is to consider potential acquisitions by the Bank and/or the
  Corporation. The Branching and Acquisitions Committee did not meet during 1999.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><I>Compliance/CRA
  Committee</I></B>. The members of the Compliance/CRA Committee as of March 8,
  2000, were Linda R. Pitsch (Chairperson), Lawrence D. Bradford, Jae M. Maxfield
  and the following individuals who are officers of the Bank: Mary J. Johnson,
  Karen M. Gilbert, Deanne L. Gavalis and Denis L. Crosby. The Compliance/CRA
  Committee is responsible for compliance with various federal banking regulations
  and the Community Reinvestment Act of 1977. The Compliance/CRA Committee met
  3 times during 1999.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I><B>Nominating Committee</B>.</I>
  The members of the Nominating Committee as of March 8, 2000, were William F.
  Cutler, Jr., Jae M. Maxfield and Jon E. Pike. The Corporation will consider
  nominations of candidates for the Board of Directors submitted by shareholders.
  Any shareholder who desires to nominate a candidate for the Board of Directors
  at a meeting must deliver, not less than 120 days prior to the date of notice
  of the meeting in the case of an annual meeting, and not more than seven days
  following the date of notice of the meeting in the case of a special</FONT>
  <BR>
  <BR>
  <BR>
  <CENTER>
    9
  </CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<FONT SIZE=-1>meeting, a notice to the Secretary of the Corporation setting forth:
(i) the name, age, business address and residence address of each nominee proposed
in such notice; (ii) the principal occupation or employment of each such nominee;
(iii) the number of shares of capital stock of the Corporation that are beneficially
owned by each such nominee; (iv) a statement that each such nominee is willing
to be nominated and serve; and (v) such other information concerning each such
nominee as would be required under the rules of the Securities and Exchange Commission
in a proxy statement soliciting proxies for the election of such nominees. The
Nominating Committee met once during 1999.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During 1999, the Corporation's
  Board of Directors held 14 regular and special meetings. All directors attended
  at least 75% of the aggregate number of meetings of the Board of Directors and
  meetings of committees on which they served during the year.</FONT>
<P><B><FONT SIZE=-1>Section 16(a) Beneficial Ownership Reporting Compliance</FONT></B>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 16(a) of the
  Securities Exchange Act of 1934, as amended, requires directors and officers
  of the Corporation and persons who beneficially own more than 10% of the outstanding
  shares of Common Stock to file reports of beneficial ownership and changes in
  beneficial ownership of shares of Common Stock with the Securities and Exchange
  Commission. Directors, officers and greater than 10% beneficial owners are required
  by Securities and Exchange Commission regulations to furnish the Corporation
  with copies of all Section 16(a) reports they file. Based solely on its review
  of the copies of such reports received by it or written representations from
  certain reporting persons that no Forms 5 were required for those persons, the
  Corporation believes that all applicable Section 16(a) reporting and filing
  requirements were satisfied from January 1, 1999, through December 31, 1999,
  except one report for Deanne Gavalis covering one transaction was filed late.
  This delinquency was due to an inadvertent oversight by the Corporation's personnel
  and an appropriate report was filed to correct it as soon as it was discovered.</FONT>
<P><B><FONT SIZE=-1>Personnel and Benefits Committee Report on Executive Compensation</FONT></B>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Personnel and
  Benefits Committee of the Corporation's Board of Directors (the "Committee")
  administers benefit plans, reviews the Corporation's key personnel policies
  and programs, including individual salaries of executive officers, and submits
  recommendations to the Board of Directors. Directors who are also employees
  of the Corporation or the Bank may not serve as voting members of the Committee.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Successful long-term
  financial performance and increasing shareholder value are the Corporation's
  primary corporate goals. The Corporation's executive compensation practices
  are intended to encourage successful financial performance and attract and retain
  talented key executives who are critical to the Corporation's long-term success.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Corporation's
  executive compensation program consists of three components: base salary, annual
  cash incentive bonus opportunities and long-term incentives through awards of
  stock options. In determining the levels of some components, the Committee considers
  corporate performance alone. In determining the levels of other components,
  such as base salary and annual cash incentive bonus opportunities, the Committee
  will consider a number of factors in addition to corporate performance.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Committee's primary
  goal in establishing base salary levels is to be competitive. The Committee
  establishes ranges for base salaries of executive officers by comparing the
  Corporation to other more or less comparable bank holding companies. In general,
  salaries paid to the Corporation's executives have been closer to the median
  rather then either the high or low end of each range. Although corporate performance
  is considered by the Committee in establishing base salary levels, corporate
  performance is not the most important factor. A discretionary assessment of
  job performance is another factor considered by the Committee in establishing
  base salary levels.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Annual cash incentive
  bonuses are based upon performance at three levels: corporate, business unit
  and individual. The weighting of each level of assessment for each participant
  is approved annually by the Committee. During 1999, Mr. Maxfield's cash incentive
  bonus was based 100 percent on corporate performance. Target awards </FONT>
  <BR>
  <BR>
  <BR>
  <CENTER>
    10
  </CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<FONT SIZE=-1>are established by the Committee for participants in the cash incentive
plan. Target awards range from 19% to 24% of base salary.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term incentives
  are provided to reward executives for achieving the long-term goal of increasing
  shareholder value. All of the Corporation's long-term incentives have involved
  awards of stock options. Stock ownership is considered important. Through stock
  ownership, the interests of executives are joined with those of the shareholders.
  Under the Corporation's Executive Stock Incentive Plan of 1997, executives may
  be rewarded for the enhancement of shareholder value through the increase in
  the value of shares received. During 1999, the Committee made no awards of stock
  options.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Corporation generally
  maintains a conservative level of perquisites and personal benefits. The dollar
  value of perquisites and personal benefits provided to executive officers does
  not exceed 10 percent of the applicable executive officer's annual salary and
  bonus.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mr. Maxfield, the
  Corporation's President and Chief Executive Officer, also serves as President
  and Chief Executive Officer of the Bank. In determining Mr. Maxfield's base
  salary for 1999, the Committee acknowledged the effectiveness of Mr. Maxfield's
  leadership in directing corporate growth and in delivering consistently strong
  financial performance. The year ended 1998 provided solid earnings per share,
  and total shareholder return approximated 12.01 percent for the year. In setting
  his 1999 salary at $120,750, the Committee's goal was to make Mr. Maxfield's
  compensation comparable to that of chief executive officers of other bank holding
  companies with assets of $100 million to $200 million. Mr. Maxfield's 1999 incentive
  bonus was based entirely on corporate performance as measured by return on equity.
  Mr. Maxfield was not awarded any stock options during 1999.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In 1993, Congress
  amended the federal Internal Revenue Code to add Section 162(m). Section 162(m)
  provides that publicly held corporations may not deduct compensation paid to
  certain executive officers in excess of $1 million annually, with certain exemptions.
  The Corporation has examined its executive compensation policies in light of
  Section 162(m) and the regulations that have been issued by the Internal Revenue
  Service to implement that section. It is not expected that any portion of the
  Corporation's deductions for employee remuneration will be disallowed in 2000
  or in future years by reason of actions expected to be taken in 2000.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During 1999, all recommendations
  of the Committee were approved by the Board of Directors without modification.</FONT>
  <BR>
  &nbsp;
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
  <TR>
    <TD VALIGN=TOP WIDTH="51%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="49%"><FONT SIZE=-1>Respectfully submitted,</FONT>
      <P><FONT SIZE=-1>Andrew W. Zamiara, Chairman</FONT> <BR>
	<FONT SIZE=-1>William F. Cutler, Jr.</FONT> <BR>
	<FONT SIZE=-1>Lewis G. Emmons</FONT> <BR>
	<FONT SIZE=-1>Stuart Goodfellow</FONT> <BR>
	<FONT SIZE=-1>Paul L. Johnson</FONT>
    </TD>
  </TR>
</TABLE>
<BR>
<BR>
<BR>
<CENTER>
  11
</CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<P><B><FONT SIZE=-1>Stock Performance</FONT></B>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following graph
  compares the cumulative total shareholder return on the Corporation's Common
  Stock to the Standard &amp; Poor's 500 Stock Index and the KBW 50 Index. The
  Standard &amp; Poor's 500 Stock Index is a broad equity market index published
  by Standard &amp; Poor's. The KBW 50 Index is a market capitalization weighted
  bank stock index published by Keefe, Bruyette &amp; Woods, Inc., an investment
  banking firm that specializes in the banking industry. The KBW 50 Index is composed
  of 50 money center and regional bank holding companies. The Standard &amp; Poor's
  500 Stock Index and the KBW 50 Index both assume dividend reinvestment. Cumulative
  total return is measured by dividing the sum of the cumulative amount of dividends
  for the measurement period, assuming dividend reinvestment, and the difference
  between the share price at the end and the beginning of the measurement period
  by the share price at the beginning of the measurement period.</FONT>
<CENTER>
  <P><FONT SIZE=-1>STOCK PERFORMANCE GRAPH</FONT> <BR>
    <FONT SIZE=-1>Five Year Cumulative Total Shareholder Return</FONT>
</CENTER>
<P>
<TABLE BORDER CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
  <TR>
    <TD VALIGN=TOP>
      <CENTER>
	<BR>
	<BR>
	<BR>
	<BR>
	<FONT SIZE=-1>STOCK PERFORMANCE GRAPH</FONT> <BR>
	<BR>
	<BR>
	<BR>
      </CENTER>
    </TD>
  </TR>
</TABLE>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The dollar values
  for total shareholder return plotted in the graph above are shown in the table
  below:</FONT> <BR>
  &nbsp;
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
  <TR>
    <TD VALIGN=TOP WIDTH="14%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="14%">
      <CENTER>
	<U><FONT SIZE=-1>December 31,</FONT></U>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="11%">
      <CENTER>
	<U><FONT SIZE=-1>Corporation</FONT></U>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">
      <CENTER>
	<U><FONT SIZE=-1>KBW 50</FONT></U>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="11%">
      <CENTER>
	<U><FONT SIZE=-1>S &amp; P 500</FONT></U>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="20%">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
  <TR>
    <TD VALIGN=TOP WIDTH="16%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="13%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="11%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="22%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="16%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">
      <CENTER>
	<FONT SIZE=-1>1994</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="13%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>$100.0</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">
      <DIV ALIGN=right><FONT SIZE=-1>$ 100.0</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="11%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">
      <DIV ALIGN=right><FONT SIZE=-1>$ 100.0</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="22%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="16%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">
      <CENTER>
	<FONT SIZE=-1>1995</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="13%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>124.5</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">
      <DIV ALIGN=right><FONT SIZE=-1>160.2</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="11%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">
      <DIV ALIGN=right><FONT SIZE=-1>137.6</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="22%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="16%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">
      <CENTER>
	<FONT SIZE=-1>1996</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="13%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>141.3</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">
      <DIV ALIGN=right><FONT SIZE=-1>226.6</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="11%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">
      <DIV ALIGN=right><FONT SIZE=-1>169.2</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="22%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="16%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">
      <CENTER>
	<FONT SIZE=-1>1997</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="13%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>162.2</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">
      <DIV ALIGN=right><FONT SIZE=-1>331.2</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="11%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">
      <DIV ALIGN=right><FONT SIZE=-1>225.6</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="22%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="16%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">
      <CENTER>
	<FONT SIZE=-1>1998</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="13%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>213.1</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">
      <DIV ALIGN=right><FONT SIZE=-1>358.6</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="11%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">
      <DIV ALIGN=right><FONT SIZE=-1>290.1</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="22%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="16%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">
      <CENTER>
	<FONT SIZE=-1>1999</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="13%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>240.5</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">
      <DIV ALIGN=right><FONT SIZE=-1>346.2</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="11%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="8%">
      <DIV ALIGN=right><FONT SIZE=-1>351.1</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="22%">&nbsp;</TD>
  </TR>
</TABLE>
<P><B><FONT SIZE=-1>Compensation of Executive Officers and Directors</FONT></B>
<P><B><FONT SIZE=-1><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General</I>.
  </FONT></B><FONT SIZE=-1>The following table shows certain information concerning
  the compensation earned by the Chief Executive Officer of the Corporation for
  services rendered to the Corporation or the Bank during each year in the three-year
  period ended December 31, 1999. No other executive officer of the Corporation
  had cash compensation in excess of $100,000 during 1999. Mr. Maxfield was compensated
  by the Bank in the capacity indicated in the table.</FONT> <BR>
  <BR>
  <BR>
  <CENTER>
    12
  </CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<CENTER>
  <P><B><FONT SIZE=-1>SUMMARY COMPENSATION TABLE</FONT></B>
</CENTER>
<P>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" BORDERCOLOR="#ffffff" >
  <TR>
    <TD VALIGN=BOTTOM WIDTH="13%" ALIGN="CENTER">
      <CENTER>
	<FONT SIZE=-1>Name and</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=BOTTOM WIDTH="13%">&nbsp;</TD>
    <TD VALIGN=BOTTOM WIDTH="1%">&nbsp;</TD>
    <TD VALIGN=BOTTOM WIDTH="9%">&nbsp;</TD>
    <TD VALIGN=BOTTOM WIDTH="17%">
      <CENTER>
	<FONT SIZE=-1>Annual Compensation
	<HR SIZE="1">
	</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=BOTTOM WIDTH="3%">&nbsp;</TD>
    <TD VALIGN=BOTTOM WIDTH="22%">
      <CENTER>
	<U><FONT SIZE=-1>Long-Term Compensation</FONT></U> <BR>
	<FONT SIZE=-1>Awards
	<HR SIZE="1">
	</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=BOTTOM WIDTH="4%">&nbsp;</TD>
    <TD VALIGN=BOTTOM WIDTH="18%">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" BORDERCOLOR="#ffffff" >
  <TR>
    <TD VALIGN=BOTTOM WIDTH="14%" ALIGN="CENTER">
      <CENTER>
	<FONT SIZE=-1>Principal</FONT> <BR>
	<FONT SIZE=-1>Position
	<HR SIZE="1">
	</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=BOTTOM WIDTH="14%">&nbsp;</TD>
    <TD VALIGN=BOTTOM WIDTH="5%">
      <CENTER>
	<FONT SIZE=-1>Year
	<HR SIZE="1">
	</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=BOTTOM WIDTH="3%">&nbsp;</TD>
    <TD VALIGN=BOTTOM WIDTH="8%">
      <CENTER>
	<FONT SIZE=-1>Salary(1)
	<HR SIZE="1">
	</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=BOTTOM WIDTH="3%">&nbsp;</TD>
    <TD VALIGN=BOTTOM WIDTH="9%">
      <CENTER>
	<FONT SIZE=-1>Bonus(2)
	<HR SIZE="1">
	</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=BOTTOM WIDTH="2%">&nbsp;</TD>
    <TD VALIGN=BOTTOM WIDTH="23%">
      <CENTER>
	<FONT SIZE=-1>Number of Shares</FONT> <BR>
	<FONT SIZE=-1>Underlying Options
	<HR SIZE="1">
	</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="2%">&nbsp;</TD>
    <TD VALIGN=BOTTOM WIDTH="14%">
      <CENTER>
	<FONT SIZE=-1>All Other</FONT> <BR>
	<FONT SIZE=-1>Compensation(3)
	<HR SIZE="1">
	</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=BOTTOM WIDTH="3%">&nbsp;</TD>
  </TR>
</TABLE>
<P>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
  <TR>
    <TD VALIGN=TOP WIDTH="28%"><FONT SIZE=-1>Jae M. Maxfield</FONT></TD>
    <TD VALIGN=TOP WIDTH="4%">
      <CENTER>
	<FONT SIZE=-1>1999</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="4%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>$128,450</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="4%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">
      <DIV ALIGN=right><FONT SIZE=-1>$29,529</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="7%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="12%">
      <CENTER>
	<FONT SIZE=-1>--</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="4%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="15%">
      <DIV ALIGN=right><FONT SIZE=-1>$ 11,011</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="28%"><FONT SIZE=-1>&nbsp;&nbsp;&nbsp; Director, President
      and Chief</FONT></TD>
    <TD VALIGN=TOP WIDTH="4%">
      <CENTER>
	<FONT SIZE=-1>1998</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="4%"></TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>120,600</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="4%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">
      <DIV ALIGN=right><FONT SIZE=-1>35,306</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="7%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="12%">
      <CENTER>
	<FONT SIZE=-1>--</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="4%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="15%">
      <DIV ALIGN=right><FONT SIZE=-1>11,063</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="28%"><FONT SIZE=-1>&nbsp;&nbsp;&nbsp; Executive Officer
      of the&nbsp;</FONT></TD>
    <TD VALIGN=TOP WIDTH="4%">
      <CENTER>
	<FONT SIZE=-1>1997</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="4%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">
      <DIV ALIGN=right><FONT SIZE=-1>115,600</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="4%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">
      <DIV ALIGN=right><FONT SIZE=-1>17,092</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="7%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="12%">
      <CENTER>
	<FONT SIZE=-1>11,025*</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="4%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="15%">
      <DIV ALIGN=right><FONT SIZE=-1>14,931</FONT></DIV>
    </TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="28%"><FONT SIZE=-1>&nbsp;&nbsp;&nbsp; Corporation and
      the Bank</FONT></TD>
    <TD VALIGN=TOP WIDTH="4%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="4%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="4%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="12%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="4%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="15%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="9%">&nbsp;</TD>
  </TR>
</TABLE>
<P><FONT SIZE=-1><BR>
  ___________________________________<BR>
  *Adjusted for stock splits and dividends</FONT> <BR>
  &nbsp;
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
  <TR>
    <TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>(1)</FONT></TD>
    <TD VALIGN=TOP WIDTH="92%"><FONT SIZE=-1>Includes compensation deferred under
      the Bank's 401(k) and Employee Stock Ownership Plan and director fees paid
      by the Corporation and the Bank.</FONT></TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="92%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>(2)</FONT></TD>
    <TD VALIGN=TOP WIDTH="92%"><FONT SIZE=-1>Includes compensation deferred under
      the Bank's 401(k) and Employee Stock Ownership Plan.</FONT></TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="92%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>(3)</FONT></TD>
    <TD VALIGN=TOP WIDTH="92%"><FONT SIZE=-1>All other compensation for Mr. Maxfield
      in 1999 includes amounts paid by the Bank for (i) life insurance ($672);
      and (ii) Bank contributions under the Bank's 401(k) and Employee Stock Ownership
      Plan ($10,339).&nbsp;</FONT></TD>
  </TR>
</TABLE>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>The
  following table sets forth information regarding stock options held by Mr. Maxfield
  at the end of the last fiscal year. Mr. Maxfield was not granted and did not
  exercise any stock options during 1999.</FONT> <BR>
  &nbsp; <BR>
  &nbsp; <BR>
<CENTER>
  <P><B><FONT SIZE=-1>FISCAL YEAR-END OPTION VALUES</FONT></B>
</CENTER>
<P>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" BORDERCOLOR="#ffffff" >
  <TR>
    <TD VALIGN=TOP WIDTH="17%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP COLSPAN="3" WIDTH="33%">
      <CENTER>
	<FONT SIZE=-1>Number of</FONT> <BR>
	<FONT SIZE=-1>Shares Underlying Unexercised</FONT> <BR>
	<FONT SIZE=-1>Options at Fiscal Year-End
	<HR SIZE="1">
	</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP COLSPAN="3" WIDTH="32%">
      <CENTER>
	<FONT SIZE=-1>Value of Unexercised</FONT> <BR>
	<FONT SIZE=-1>In-the-Money Options at</FONT> <BR>
	<FONT SIZE=-1>Fiscal Year-End (1)
	<HR SIZE="1">
	</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="7%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="17%"><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name
      <HR SIZE="1">
      </FONT></TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="13%">
      <CENTER>
	<FONT SIZE=-1>Exercisable
	<HR SIZE="1">
	</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="4%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="15%">
      <CENTER>
	<FONT SIZE=-1>Unexercisable
	<HR SIZE="1">
	</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="13%">
      <CENTER>
	<FONT SIZE=-1>Exercisable
	<HR SIZE="1">
	</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="5%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="14%">
      <CENTER>
	<FONT SIZE=-1>Unexercisable
	<HR SIZE="1">
	</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="7%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="17%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="13%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="4%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="15%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="13%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="5%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="14%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="7%">&nbsp;</TD>
  </TR>
  <TR>
    <TD VALIGN=TOP WIDTH="17%"><FONT SIZE=-1>Jae M. Maxfield</FONT></TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="13%">
      <CENTER>
	<FONT SIZE=-1>8,269</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="4%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="15%">
      <CENTER>
	<FONT SIZE=-1>2,756</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="6%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="13%">
      <CENTER>
	<FONT SIZE=-1>$&nbsp; 76,736</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="5%">&nbsp;</TD>
    <TD VALIGN=TOP WIDTH="14%">
      <CENTER>
	<FONT SIZE=-1>$&nbsp; 25,576</FONT>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="7%">&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<BR>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
  <TR>
    <TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>(1)</FONT></TD>
    <TD VALIGN=TOP WIDTH="92%"><FONT SIZE=-1>Based on a market value of $27.42
      per share at December 31, 1999, adjusted to reflect stock dividends and
      splits.</FONT></TD>
  </TR>
</TABLE>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>The
  Corporation's Executive Stock Incentive Plan of 1997 (the "Plan") provides that
  options to purchase shares of Common Stock, stock appreciation rights and stock
  awards (collectively, "Incentive Awards") may be granted to officers and other
  key employees of the Corporation and its subsidiaries. A stock option entitles
  the recipient to purchase shares of Common Stock for a specified period of time
  at a specified price. Subject to certain restrictions, the Personnel and Benefits
  Committee of the Corporation's Board of Directors determines who will be granted
  options, the number of shares subject to each option, the form of consideration
  that may be paid upon exercise of an option and other matters related to the
  Plan. Stock appreciation rights and stock awards granted under the Plan are
  subject to terms and conditions determined by the Personnel and Benefits Committee
  at the time of the award. The Personnel and Benefits Committee may include in
  any Incentive Award provisions for acceleration of any vesting or other similar
  requirements or for the elimination of any restrictions upon Incentive Awards
  upon a Change in Control (as defined in the Plan) of the Corporation. The Personnel
  and Benefits Committee also may include provisions for participants to receive
  cash in lieu of outstanding stock options upon a Change in Control (as defined
  in the Plan) of the Corporation.</FONT> <BR>
  <BR>
  <BR>
  <CENTER>
    13
  </CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employment Contracts.</I></B>
  Mr. Maxfield has an employment agreement with the Bank. Under this agreement,
  Mr. Maxfield shall be employed as President and Chief Executive Officer of the
  Bank and the Corporation unless his employment is terminated by him or he is
  dismissed at the pleasure of the Board of Directors of the Bank. Under this
  agreement, Mr. Maxfield is entitled to a base salary to be reviewed annually
  by the Board of Directors of the Bank, participation in the Bank's incentive
  bonus plan, payment of director fees normally payable to directors of the Corporation
  and the Bank for meetings attended and other benefits generally available to
  all Bank employees. Mr. Maxfield has agreed not to compete in any way with the
  business of the Bank and the Corporation while in the employ of the Bank and
  for one year after termination of his employment with the Bank.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 401(k) Plan</I></B>.
  The ChoiceOne Bank 401(k) and Employee Stock Ownership Plan ("401(k) Plan")
  is qualified under Section 401(a) of the Code.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>The
  purpose of the 401(k) Plan is to permit Bank employees, including Mr. Maxfield,
  to save for retirement on a pre-tax basis. In addition to the pre-tax contributions
  by Bank employees, the Bank may make discretionary matching and/or employee
  stock ownership plan ("ESOP") contributions to the 401(k) Plan. If matching
  and/or ESOP contributions are made to the 401(k) Plan, a participant is fully
  vested in those contributions after six years of vested service.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>Each
  participant in the 401(k) Plan has an account to record the participant's interest
  in the plan. The amount of the contributions made by or on behalf of the participants
  are credited to their accounts. A participant's benefit from the 401(k) Plan
  is equal to the vested amount in the participant's account under the plan when
  he or she terminates employment with the Bank. Under the ESOP provisions, part
  of the 401(k) Plan is designed to invest primarily in stock of the Corporation.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incentive Bonus
  Plan</I></B>. The Bank's incentive bonus plan (the "Bonus Plan") was established
  for all of the Bank's officers in 1985. The Bonus Plan has applied to all employees
  (both officer and non-officer personnel) since the 1986 fiscal year. The purposes
  of the Bonus Plan are to (i) motivate all personnel of the Bank, (ii) encourage
  growth of profits and maximization of return on equity and (iii) provide an
  opportunity for participants to be rewarded for individual effort and performance
  that is considered by the Personnel and Benefits Committee to be above average.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>The
  Bonus Plan is based on return on equity. A funding range of 11.25% through 12.25%
  was established for 1999. If return on equity is below 11.25%, or the "threshold,"
  no bonus based on Bank profits will be paid. Bonuses payable under the Bonus
  Plan begin to accrue at 11.25% return on equity. One quarter of the targeted
  bonus amount is payable for each one quarter of one percentage point increase
  in return on equity above 11.25%, with 100% of the targeted bonus amount payable
  at 12.25% return on equity. There was no maximum bonus payable under the Bonus
  Plan, such that any increase in return on equity over 12.25% provided a bonus
  greater than 100% of the targeted bonus.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>Determinations
  of eligibility, funding, allocations and amounts of awards are subject to the
  review and final approval of the Board of Directors of the Bank. The Bank's
  executive officers, as a group, who are also executive officers of the Corporation,
  received incentive bonuses totaling $74,863 under the Bonus Plan for the 1999
  fiscal year.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>During
  1999, the Corporation compensated its directors at the rate of $50 per monthly
  meeting of the Board attended and an additional $250 for each quarterly meeting
  of the Board attended. Directors who were not employees of the Corporation or
  the Bank received $60 per hour for each meeting of any committee of the Board
  of Directors on which they served other than the Executive and Loan Review Committee.
  During 1999, the Bank compensated its directors at the rate of $450 per meeting
  attended. The Chairman of the Board of the Bank received an additional $100
  per meeting attended.</FONT> <BR>
  <BR>
  <BR>
  <CENTER>
    14
  </CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<P><B><FONT SIZE=-1>Certain Relationships and Related Transactions</FONT></B>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>Directors,
  nominees for director and executive officers of the Corporation and members
  of their immediate families were customers of and had transactions with the
  Bank in the ordinary course of business between January 1, 1999, and March 8,
  2000. It is anticipated that such transactions will take place in the future
  in the ordinary course of business. All loans and commitments included in such
  transactions were made on substantially the same terms, including interest rates
  and collateral, as those prevailing at the time for comparable transactions
  with other persons and did not involve more than the normal risk of collectibility
  or present other unfavorable features.</FONT>
<P><B><FONT SIZE=-1>Independent Certified Public Accountants</FONT></B>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>Crowe,
  Chizek and Company LLP, certified public accountants, served as the Corporation's
  principal accountant for 1999. The Board of Directors of the Corporation has
  selected Crowe, Chizek and Company LLP to act as the Corporation's principal
  accountant for 2000. Representatives of Crowe, Chizek and Company LLP are not
  expected to be present at the Annual Meeting. If a representative of Crowe,
  Chizek and Company LLP attends the meeting, the representative will have an
  opportunity to make a statement and will be expected to be available to respond
  to appropriate questions.</FONT>
<P><B><FONT SIZE=-1>Proposals of Shareholders</FONT></B>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>Proposals
  of shareholders that are intended to be presented at the 2001 annual meeting
  of shareholders and that the proponent would like included in the Corporation's
  proxy statement and form of proxy relating to that meeting must be made in accordance
  with Securities and Exchange Commission Rule 14a-8 and must be received by the
  Corporation by December 4, 2000 for consideration for inclusion in the proxy
  statement and form of proxy relating to that meeting. To be considered timely,
  all other proposals of shareholders intended to be presented at the 2001 annual
  meeting of shareholders of the Corporation must similarly be received by the
  Corporation by December 4, 2000.</FONT>
<P><B><FONT SIZE=-1>Form 10-K Report Available</FONT></B>
<P><B><FONT SIZE=-1><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I>The Corporation's
  Form 10-KSB Annual Report to the Securities and Exchange Commission, including
  financial statements and financial statement schedules, will be provided without
  charge to shareholders upon written request. Requests should be directed to
  Mr. Thomas L. Lampen, Treasurer, ChoiceOne Financial Services, Inc., 109 East
  Division, Sparta, Michigan 49345.</FONT></B> <BR>
  <BR>
  <BR>
  <CENTER>
    15
  </CENTER>
<HR SIZE="4" NOSHADE>
<BR>
</FONT>
<CENTER>
  <P><B>APPENDIX A</B>
  <P><B>CHOICEONE FINANCIAL SERVICES, INC.</B> <BR>
    <B>AMENDED AND RESTATED EXECUTIVE STOCK INCENTIVE PLAN</B><FONT SIZE="-1">
    </FONT>
  <P><FONT SIZE="-1"><B><U>SECTION</U> <U>1</U></B> </FONT>
  </CENTER><P><CENTER><FONT SIZE="-1"><U>Establishment</U> <U>of</U> <U>Plan</U>; <U>Purpose</U>
    <U>of</U> <U>Plan</U></FONT>
</CENTER>
<FONT SIZE=-1>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>1.1<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B><U>Establishment</U> <U>of</U> <U>Plan</U>.&nbsp; The Company hereby
  establishes the AMENDED AND RESTATED EXECUTIVE STOCK INCENTIVE PLAN (the "Plan")
  for its corporate and Subsidiary officers and other key employees. The Plan
  permits the grant and award of Stock Options, Stock Appreciation Rights and
  Stock Awards.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>1.2<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B><U>Purpose</U> <U>of</U> <U>Plan</U>.&nbsp; The purpose of the Plan
  is to provide officers and key management employees of the Company and its Subsidiaries
  with an increased incentive to make significant and extraordinary contributions
  to the long-term performance and growth of the Company and its Subsidiaries,
  to join the interests of officers and key employees with the interests of the
  Company's shareholders through the opportunity for increased stock ownership
  and to attract and retain officers and key employees of exceptional abilities.
  The Plan is further intended to provide flexibility to the Company in structuring
  long-term incentive compensation to best promote the foregoing objectives.</FONT>
  <BR>
  &nbsp; <BR>
  &nbsp; <BR>
<CENTER>
  <P><B><U><FONT SIZE=-1>SECTION</FONT></U><FONT SIZE=-1> </FONT><U><FONT SIZE=-1>2</FONT></U></B>
  <P><U><FONT SIZE=-1>Definitions</FONT></U>
</CENTER>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B>The following words have the following meanings unless a different meaning
  is plainly required by the context:</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>2.1<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B>"Act" means the Securities Exchange Act of 1934, as amended.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>2.2<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B>"Board" means the Board of Directors of the Company.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>2.3<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B>"Change in Control," unless otherwise defined in an Incentive Award
  agreement, means an occurrence of a nature that would be required to be reported
  in response to Item 6(e) of Schedule 14A of Regulation 14A issued under the
  Act. Without limiting the inclusiveness of the definition in the preceding sentence,
  a Change in Control of the Company shall be deemed to have occurred as of the
  first day that any one or more of the following conditions is satisfied: (a)
  any Person is or becomes the "beneficial owner" (as defined in Rule 13d-3 under
  the Act), directly or indirectly, of securities of the Company representing
  25% or more of the combined voting power of the Company's then outstanding securities;
  (b) the failure at any time of the Continuing Directors to constitute at least
  a majority of the Board; or (c) any of the following occur: (i) any merger or
  consolidation of the Company, other than a merger or consolidation in which
  the voting securities of the Company immediately prior to the merger or consolidation
  continue to represent (either by remaining outstanding or being converted into
  securities of the surviving entity) 60% or more of the combined voting power
  of the Company or surviving entity immediately after the merger or consolidation
  with another entity; (ii) any sale, exchange, lease, mortgage, pledge, transfer
  or other disposition (in a single transaction or a series of related transactions)
  of assets or earning power aggregating more than 50% of the assets or earning
  power of the Company on a consolidated basis; (iii) any complete liquidation
  or dissolution of the Company; (iv) any reorganization, reverse stock split
  or recapitalization of the Company which would result in a Change in Control
  as otherwise defined in this Plan; or (v) any transaction or series of related
  transactions having, directly or indirectly, the same effect as any of the foregoing.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>2.4<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B>"Code" means the Internal Revenue Code of 1986, as amended.</FONT> <BR>
  <BR>
  <BR>
  <CENTER>
    A-1
  </CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>2.5<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B>"Committee" means the Personnel and Benefits Committee of the Board
  or such other committee as the Board shall designate to administer the Plan.
  The Committee shall consist of at least two members of the Board and all of
  its members shall be "non-employee directors" as defined in Rule 16b-3 issued
  under the Act.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>2.6<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B>"Common Stock" means the Common Stock of the Company.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>2.7<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B>"Company" means ChoiceOne Financial Services, Inc., a Michigan corporation,
  and its successors and assigns.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>2.8<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B>"Consensual Severance" means the voluntary termination of all employment
  by the Participant with the Company or any of its Subsidiaries that the Committee
  determines to be in the best interests of the Company.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>2.9<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B>"Continuing Directors" means the individuals constituting the Board
  as of the date this Plan was adopted and any subsequent directors, if appointed
  or nominated by at least a majority of the Continuing Directors in office at
  the time of the nomination or appointment, but specifically excluding any individual
  whose initial assumption of office occurs as a result of either an actual or
  threatened solicitation in opposition to any Continuing Director subject to
  Rule 14a-12(c) of Regulation 14A issued under the Act) or other actual or threatened
  solicitation of proxies or consents by or on behalf of a Person other than the
  Board.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>2.10<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B>"Employee Benefit Plan" means any plan or program established by the
  Company or a Subsidiary for the compensation or benefit of employees of the
  Company or any of its Subsidiaries.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>2.11<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B>"Incentive Award" means the award or grant of a Stock Option, Stock
  Appreciation Right or Stock Award to a Participant pursuant to the Plan.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>2.12<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B>"Market Value" of any security on any given date means: (a) if the security
  is listed for trading on The Nasdaq Stock Market or one or more national securities
  exchanges, the last reported sales price on the date in question, or if the
  security shall not have been traded on the principal exchange on the applicable
  date, the last reported sales price on the first day before that date on which
  such security was so traded; (b) if the security is not so listed for trading
  but is traded in the over-the-counter market, the mean of highest bid and lowest
  asked prices for the security on the date in question, or if there are no bid
  and asked prices for the security on that date, the mean of the highest bid
  and lowest asked prices on the first day before that date on which such prices
  existed; or (c) if neither (a) nor (b) is applicable, the value as determined
  by any means considered fair and reasonable by the Committee, which determination
  shall be final and binding on all parties.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>2.13<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B>"Participant" means a corporate officer or any key employee of the Company
  or its Subsidiaries who is granted an Incentive Award under the Plan.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>2.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  "Person" has the same meaning as set forth in Sections 13(d) and 14(d)(2) of
  the Act.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  "Plan Year" means the 12-month period beginning January 1 of each year, except
  that the Plan Year for purposes of the year in which the Plan becomes effective
  shall be that period between the effective date of the Plan and December 31
  of such year.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>2.16<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B>"Retirement" means the voluntary termination of all employment by the
  Participant after the Participant has attained 55 years of age and completed
  six years of service with the Company or any of its Subsidiaries or as otherwise
  may be set forth in the Incentive Award agreement or other grant document with
  respect to a Participant and a particular Incentive Award.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>2.17<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B>"Stock Appreciation Right" means any right granted to a Participant
  pursuant to Section 6 of the Plan.</FONT> <BR>
  <BR>
  <BR>
  <CENTER>
    A-2
  </CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>2.18<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B>"Stock Award" means an award of Common Stock awarded to a Participant
  pursuant to Section 7 of the Plan.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>2.19<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B>"Stock Option" means the right to purchase Common Stock at a stated
  price for a specified period of time. For purposes of the Plan, a Stock Option
  may be either an incentive stock option within the meaning of Section 422(b)
  of the Code or a nonqualified stock option.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>2.20<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B>"Subsidiary" means any corporation or other entity of which 50% or more
  of the outstanding voting stock or voting ownership interest is directly or
  indirectly owned or controlled by the Company or by one or more Subsidiaries
  of the Company.</FONT> <BR>
  &nbsp; <BR>
  &nbsp; <BR>
<CENTER>
  <P><B><U><FONT SIZE=-1>SECTION</FONT></U><FONT SIZE=-1> </FONT><U><FONT SIZE=-1>3</FONT></U></B>
  <P><U><FONT SIZE=-1>Administration</FONT></U>
</CENTER>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>3.1<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B><U>Power</U> <U>and</U> <U>Authority</U>. The Committee shall administer
  the Plan. The Committee may delegate record keeping, calculation, payment and
  other ministerial administrative functions to individuals designated by the
  Committee, who may be employees of the Company and its Subsidiaries. Except
  as limited in this Plan, the Committee shall have all of the express and implied
  powers and duties set forth in this Plan, shall have full power and authority
  to interpret the provisions of the Plan and Incentive Awards granted under the
  Plan and shall have full power and authority to supervise the administration
  of the Plan and Incentive Awards granted under the Plan and to make all other
  determinations considered necessary or advisable for the administration of the
  Plan. All determinations, interpretations and selections made by the Committee
  regarding the Plan shall be final and conclusive. The Committee shall hold its
  meetings at such times and places as it deems advisable. Action may be taken
  by a written instrument signed by a majority of the members of the Committee
  and any action so taken shall be fully as effective as if it had been taken
  at a meeting duly called and held. The Committee shall make such rules and regulations
  for the conduct of its business as it deems advisable.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>3.2<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B><U>Grants</U> <U>or</U> <U>Awards</U> <U>to</U> <U>Participants</U>.
  In accordance with and subject to the provisions of the Plan, the Committee
  shall have the authority to determine all provisions of Incentive Awards as
  the Committee may deem necessary or desirable and as are consistent with the
  terms of the Plan, including, without limitation, the following: (a) the persons
  who shall be selected as Participants; (b) the nature and extent of the Incentive
  Awards to be made to each Participant (including the number of shares of Common
  Stock to be subject to each Incentive Award, any exercise price, the manner
  in which an Incentive Award will vest or become exercisable and the form of
  payment for the Incentive Award); (c) the time or times when Incentive Awards
  will be granted; (d) the duration of each Incentive Award; and (e) the restrictions
  and other conditions to which payment or vesting of Incentive Awards may be
  subject.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>3.3<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B><U>Amendments</U> <U>or</U> <U>Modifications</U> <U>of</U> <U>Awards</U>.
  The Committee shall have the authority to amend or modify the terms of any outstanding
  Incentive Award in any manner, provided that the amended or modified terms are
  not prohibited by the Plan as then in effect, including, without limitation,
  the authority to: (a) modify the number of shares or other terms and conditions
  of an Incentive Award; (b) extend the term of an Incentive Award; (c) accelerate
  the exercisability or vesting or otherwise terminate any restrictions relating
  to an Incentive Award; (d) accept the surrender of any outstanding Incentive
  Award; and (e) to the extent not previously exercised or vested, authorize the
  grant of new Incentive Awards in substitution for surrendered Incentive Awards.</FONT>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>3.4<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B><U>Indemnification</U> <U>of</U> <U>Committee</U> <U>Members</U>.&nbsp;&nbsp;
  Neither any member or former member of the Committee nor any individual to whom
  authority is or has been delegated shall be personally responsible or liable
  for any act or omission in connection with the performance of powers or duties
  or the exercise of discretion or judgment in the administration and implementation
  of the Plan. Each person who is or shall have been a member of the Committee
  shall be indemnified and held harmless by the Company from and against any cost,
  liability or</FONT>
<P><BR>
  <BR>
  <BR>
  <CENTER>
    A-3
  </CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<FONT SIZE=-1> expense imposed or incurred in connection with such person's or
the Committee's taking or failing to take any action under the Plan. Each such
person shall be justified in relying on information furnished in connection with
the Plan's administration by any appropriate person or persons.</FONT> <BR>
&nbsp; <BR>
&nbsp; <BR>
<CENTER>
  <P><B><U><FONT SIZE=-1>SECTION</FONT></U><FONT SIZE=-1> </FONT><U><FONT SIZE=-1>4</FONT></U></B>
  <P><FONT SIZE=-1><U>Shares</U> <U>Subject</U> <U>to</U> <U>the</U> <U>Plan</U></FONT>
</CENTER>
<P><FONT SIZE=-1><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </I></B>4.1<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </I></B><U>Number</U> <U>of</U> <U>Shares</U>. Subject to adjustment as provided
  in Section 4.2 of the Plan, the total number of shares of Common Stock available
  for Incentive Awards under the Plan shall be (a) for the initial Plan Year,
  5% of the total number of shares of Common Stock outstanding at the time the
  Plan becomes effective; plus (b) in each subsequent Plan Year, an additional
  number of shares of Common Stock not to exceed 2% of the number of shares of
  Common Stock outstanding as reported in the Company's Annual Report on Form
  10-K for the fiscal year ending immediately before such Plan Year such that
  at the beginning of each Plan Year after the initial Plan Year there shall be
  available, in addition to any amount of shares remaining from the 5% authorization
  for the initial Plan Year, a minimum number of shares equal to 2% of the number
  of shares of Common Stock outstanding; plus (c) there shall be carried forward
  and available for Incentive Awards under the Plan all of the following (subject
  to adjustment as provided in Section 4.2): (i) shares subject to Incentive Awards
  that are canceled, surrendered, modified, exchanged for substitute Incentive
  Awards or expire or terminate prior to the exercise or vesting of the Incentive
  Award in full; (ii) with respect to any succeeding Plan Year, any unused portion
  of the amount set forth in subsection (a) above; and (iii) shares that are surrendered
  to the Company in connection with the exercise or vesting of an Incentive Award,
  whether previously owned or otherwise subject to such Incentive Award. Such
  shares shall be authorized and may be either unissued or treasury shares.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Adjustments</U>.</FONT>
</FONT>
<DIR>
<FONT SIZE=-1><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<U>Stock</U> <U>Dividends</U> <U>and</U> <U>Distributions</U>. If the
number of shares of Common Stock outstanding changes by reason of a stock
dividend, stock split, recapitalization or other general distribution of
Common Stock or other securities to holders of Common Stock, the number
and kind of securities subject to Incentive Awards and reserved for issuance
under the Plan, together with applicable exercise prices, as well as the
number of shares available for issuance under the Plan, shall be adjusted
appropriately. No fractional shares shall be issued pursuant to the Plan
and any fractional shares resulting from such adjustments shall be eliminated
from the respective Incentive Awards.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<U>Other</U> <U>Actions</U> <U>Affecting</U> <U>Common</U> <U>Stock</U>.
If there occurs, other than as described in the preceding subsection, any
merger, business combination, recapitalization, reclassification, subdivision
or combination approved by the Board that would result in the Persons who
were shareholders of the Company immediately prior to the effective time
of any such transaction owning or holding, in lieu of or in addition to
shares of Common Stock, other securities, money and/or property (or the
right to receive other securities, money and/or property) immediately after
the effective time of such transaction, then the outstanding Incentive
Awards and reserves for Incentive Awards under this Plan shall be adjusted
in such manner and at such time as shall be equitable under the circumstances.
It is intended that in the event of any such transaction, Incentive Awards
under this Plan shall entitle the holder of each Incentive Award to receive
(upon exercise in the case of Stock Options), in lieu of or in addition
to shares of Common Stock, any other securities, money and/or property
receivable upon consummation of any such transaction by holders of Common
Stock with respect to each share of Common Stock outstanding immediately
prior to the effective time of such transaction; upon any such adjustment,
holders of Incentive Awards under this Plan shall have only the right to
receive in lieu of or in addition to shares of Common Stock such other
securities, money and/or other property as provided by the adjustment.
If the agreement, resolution or other document approved by the Board to
effect any such transaction provides for the adjustment of Incentive</FONT></FONT></DIR>
<FONT SIZE=-1> <BR>
<BR>
<BR>
<CENTER>
  <FONT SIZE="-1">A-4</FONT>
</CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<DIR><FONT SIZE=-1> Awards under the Plan in connection with such transaction,
  then the adjustment provisions contained in such agreement, resolution or other
  document shall be final and conclusive.</FONT> <BR>
  &nbsp; <BR>
  &nbsp;</DIR>
<CENTER>
  <B><U><FONT SIZE=-1>SECTION</FONT></U><FONT SIZE=-1> </FONT><U><FONT SIZE=-1>5</FONT></U></B>
  <P><FONT SIZE=-1><U>Stock</U> <U>Options</U></FONT>
</CENTER>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT SIZE=-1>5.1</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <FONT SIZE=-1><U>Grant</U>. A Participant may be granted one or more Stock Options
  under the Plan. The Committee, in its discretion, may provide in the initial
  grant of a Stock Option for the subsequent automatic grant of additional Stock
  Options for the number of shares that are subject to the initial Stock Option
  and surrendered to the Company in connection with the exercise of the initial
  or any subsequently granted Stock Option. Stock Options shall be subject to
  such terms and conditions, consistent with the other provisions of the Plan,
  as may be determined by the Committee in its sole discretion. The Committee
  may vary, among Participants and among Stock Options granted to the same Participant,
  any and all of the terms and conditions of the Stock Options granted under the
  Plan. The Committee shall have complete discretion in determining the number
  of Stock Options granted to each Participant. The Committee may designate whether
  or not a Stock Option is to be considered an incentive stock option as defined
  in Section 422(b) of the Code; <I>provided</I>, that the number of shares of
  Common Stock that may be designated as subject to incentive stock options for
  any given Participant shall be limited to that number of shares that become
  exercisable for the first time by the Participant during any Plan Year (under
  all plans of the Company and its Subsidiaries) and have an aggregate Market
  Value less than or equal to $100,000 (or such other amount as may be set forth
  in the Code) and all shares subject to an Incentive Award that have a Market
  Value in excess of such aggregate amount shall automatically be subject to Stock
  Options that are not incentive stock options.</FONT>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT SIZE=-1>5.2</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <FONT SIZE=-1><U>Stock</U> <U>Option</U> <U>Agreements</U>. Stock Options shall
  be evidenced by stock option agreements containing such terms and conditions,
  consistent with the provisions of the Plan, as the Committee shall from time
  to time determine. To the extent not covered by the stock option agreement,
  the terms and conditions of this Section 5 shall govern.</FONT>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT SIZE=-1>5.3</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <FONT SIZE=-1><U>Stock</U> <U>Option</U> <U>Price</U>.&nbsp; The per share Stock
  Option price shall be determined by the Committee, but shall be a price that
  is equal to or higher than the par value of the Company's Common Stock; <I>provided</I>
  that the per share Stock Option price for any shares designated as incentive
  stock options shall be equal to or greater than 100% of the Market Value on
  the date of grant.</FONT>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT SIZE=-1>5.4</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <FONT SIZE=-1><U>Medium</U> <U>and</U> <U>Time</U> <U>of</U> <U>Payment</U>.&nbsp;
  The exercise price for each share purchased pursuant to a Stock Option granted
  under the Plan shall be payable in cash or, if the Committee consents, in shares
  of Common Stock (including Common Stock to be received upon a simultaneous exercise)
  or other consideration substantially equivalent to cash. The time and terms
  of payment may be amended with the consent of a Participant before or after
  exercise of a Stock Option. The Committee may from time to time authorize payment
  of all or a portion of the Stock Option price in the form of a promissory note
  or other deferred payment installments according to such terms as the Committee
  may approve. The Board may restrict or suspend the power of the Committee to
  permit such loans and may require that adequate security be provided.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Stock</U> <U>Options</U> <U>Granted</U> <U>to</U> <U>Ten</U> <U>Percent</U>
  <U>Shareholders</U>.&nbsp; No Stock Option granted to any Participant who at
  the time of such grant owns, together with stock attributed to such Participant
  under Section 424(d) of the Code, more than 10% of the total combined voting
  power of all classes of stock of the Company or any of its Subsidiaries may
  be designated as an incentive stock option, unless such Stock Option provides
  an exercise price equal to at least 110% of the Market Value of the Common Stock
  and the exercise of the Stock Option after the expiration of five years from
  the date of grant of the Stock Option is prohibited by its terms.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Limits</U> <U>on</U> <U>Exercisability</U>.&nbsp; Except as provided in Section
  5.5, Stock Options shall be exercisable for such periods, not to exceed 10 years
  from the date of grant, as may be fixed by the Committee. At the time of the
  </FONT> <BR>
  <BR>
  <BR>
  <CENTER>
    <FONT SIZE="-1">A-5</FONT>
  </CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<FONT SIZE=-1>exercise of a Stock Option, the holder of the Stock Option, if requested
by the Committee, must represent to the Company that the shares are being acquired
for investment and not with a view to the distribution thereof. The Committee
may in its discretion require a Participant to continue the Participant's service
with the Company and its Subsidiaries for a certain length of time prior to a
Stock Option becoming exercisable and may eliminate such delayed vesting provisions.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Restrictions</U> <U>on</U> <U>Transferability</U>.</FONT>
<DIR><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>General</U>. Unless the Committee otherwise consents (before or after the
  option grant) or unless the stock option agreement or grant provides otherwise;
  (i) no incentive stock options granted under the Plan may be sold, exchanged,
  transferred, pledged, assigned or otherwise alienated or hypothecated except
  by will or the laws of descent and distribution; and (ii) all Stock Options
  that are not incentive stock options may be transferred, <I>provided</I>, that
  as a condition to any such transfer the transferee must execute a written agreement
  permitting the Company to withhold from the shares subject to the Stock Option
  a number of shares having a Market Value at least equal to the amount of any
  federal, state or local withholding or other taxes associated with or resulting
  from the exercise of the Stock Option. All provisions of a Stock Option that
  are determined with reference to the Participant, including without limitation
  those that refer to the Participant's employment with the Company or its Subsidiaries,
  shall continue to be determined with reference to the Participant after any
  transfer of a Stock Option.</FONT>
  <P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <U>Other</U> <U>Restrictions</U>. The Committee may impose other restrictions
    on any shares of Common Stock acquired pursuant to the exercise of a Stock
    Option under the Plan as the Committee deems advisable, including, without
    limitation, restrictions under applicable federal or state securities laws.</FONT>
</DIR>
<FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Termination</U> <U>of</U> <U>Employment</U>.</FONT>
<DIR><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>General</U>. If a Participant is no longer employed by the Company or its
  Subsidiary for any reason other than the Participant's Consensual Severance,
  Retirement, death, disability or termination for cause, the Participant may
  exercise his or her Stock Options in accordance with their terms for a period
  of three months after such termination of employment unless the terms of the
  applicable stock option agreement or grant provide otherwise, but only to the
  extent the Participant was entitled to exercise the Stock Options on the date
  of termination. For purposes of the Plan: (i) a transfer of an employee from
  the Company to any Subsidiary; (ii) a leave of absence, duly authorized in writing
  by the Company, for military service or for any other purpose approved by the
  Company if the period of such leave does not exceed 90 days; and (iii) a leave
  of absence in excess of 90 days, duly authorized in writing by the Company,
  provided the employee's right to reemployment is guaranteed either by statute,
  contract or written policy of the Company shall not be deemed a termination
  of employment. For purposes of the Plan, termination of employment shall be
  considered to occur on the date on which the employee is no longer obligated
  to perform services for the Company or any of its Subsidiaries and the employee's
  right to reemployment is not guaranteed either by statute, contract or written
  policy of the Company, regardless of whether the employee continues to receive
  compensation from the Company or any of its Subsidiaries after such date.</FONT>
  <P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <U>Consensual</U> <U>Severance</U>. If a Participant ceases to be employed
    by the Company or one of its Subsidiaries due to Consensual Severance, the
    Committee may, in its sole discretion, permit the Participant to exercise
    his or her Stock Options in accordance with their terms and to the extent
    that the Participant was entitled to exercise the Stock Options on the date
    of termination for a period of time after such termination of employment as
    may be determined by the Committee, provided, that such period may not extend
    beyond the earlier of three years after the date of termination or the dates
    on which such Stock Options expire by their terms.</FONT>
</DIR>
<BR>
<BR>
<BR>
<CENTER>
  <FONT SIZE="-1">A-6</FONT>
</CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<P>
<DIR><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Retirement</U>. If a Participant ceases to be employed by the Company or
  one of its Subsidiaries due to Retirement, the Participant may exercise his
  or her Stock Options in accordance with their terms for a period of three years
  after such termination of employment unless such Stock Options earlier expire
  by their terms, but only to the extent that the Participant was entitled to
  exercise the Stock Options on the date of termination.</FONT>
  <P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <U>Disability</U>. If a Participant ceases to be employed by the Company or
    one of its Subsidiaries due to the Participant's disability, he or she may
    exercise his or her Stock Options in accordance with their terms for one year
    after he or she ceases to be employed unless such Stock Options earlier expire
    by their terms, but only to the extent that the Participant was entitled to
    exercise the Stock Options on the date of such termination.</FONT>
  <P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <U>Death</U>. If a Participant dies either while an employee or otherwise
    during a time when the Participant could have exercised a Stock Option, the
    Stock Options issued to such Participant shall be exercisable in accordance
    with their terms by the personal representative of such Participant or other
    successor to the interest of the Participant for a period of one year after
    such Participant's death to the extent that the Participant was entitled to
    exercise the Stock Options on the date of death but not beyond the original
    term of the Stock Options.</FONT>
  <P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <U>Termination</U> <U>for</U> <U>Cause</U>. If a Participant's employment
    is terminated for cause, the Participant shall have no further right to exercise
    any Stock Options previously granted him or her.</FONT> <BR>
    &nbsp; <BR>
    &nbsp;
</DIR>
<CENTER>
  <B><FONT SIZE=-1><U>SECTION</U> <U>6</U></FONT></B>
  <P><FONT SIZE=-1><U>Stock</U> <U>Appreciation</U> <U>Rights</U></FONT>
</CENTER>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Grant</U>. A Participant may be granted one or more Stock Appreciation Rights
  under the Plan and such Stock Appreciation Rights shall be subject to such terms
  and conditions, consistent with the other provisions of the Plan, as shall be
  determined by the Committee in its sole discretion. A Stock Appreciation Right
  may relate to a particular Stock Option and may be granted simultaneously with
  or subsequent to the Stock Option to which it relates. Stock Appreciation Rights
  shall be subject to the same restrictions and conditions as Stock Options under
  subsections 5.6, 5.7 and 5.8 of the Plan. To the extent granted in tandem with
  a Stock Option, the exercise of a Stock Appreciation Right shall, in exchange
  for the right to exercise a related Stock Option, entitle a Participant to an
  amount equal to the appreciation in value of the shares covered by the related
  Stock Option surrendered. Such appreciation in value shall be equal to the excess
  of the Market Value of such shares at the time of the exercise of the Stock
  Appreciation Right over the option price of such shares.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Exercise</U>; <U>Payment</U>. To the extent granted in tandem with a Stock
  Option, Stock Appreciation Rights may be exercised only when a related Stock
  Option could be exercised and only when the Market Value of the stock subject
  to the Stock Option exceeds the exercise price of the Stock Option. The Committee
  shall have discretion to determine the form of payment made upon the exercise
  of a Stock Appreciation Right, which may take the form of shares of Common Stock.</FONT>
  <BR>
  &nbsp; <BR>
  &nbsp; <BR>
<CENTER>
  <P><B><FONT SIZE=-1><U>SECTION</U> <U>7</U></FONT></B>
  <P><FONT SIZE=-1><U>Stock</U> <U>Awards</U></FONT>
</CENTER>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>
  Grant</U>. A Participant may be granted one or more Stock Awards under the Plan.
  Stock Awards shall be subject to such terms and conditions, consistent with
  the other provisions of the Plan, as may be determined by the Committee in its
  sole discretion.</FONT> <BR>
  <BR>
  <BR>
  <CENTER>
    <FONT SIZE="-1">A-7</FONT>
  </CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Rights</U> <U>as</U> <U>a</U> <U>Shareholder</U>. A Participant shall have
  all voting, dividend, liquidation and other rights with respect to shares of
  Common Stock issued to the Participant as a Stock Award under this Section 7
  upon the Participant becoming the holder of record of the Common Stock granted
  pursuant to such Stock Awards; <I>provided</I>,<I> </I>that the Committee may
  impose such restrictions on the assignment or transfer of Common Stock awarded
  pursuant to a Stock Award as it deems appropriate and may require the Participant
  to continue in the employ of the Company or a Subsidiary for a specified period
  of time after the award.</FONT>
<P>&nbsp;
<CENTER>
  <P><B><FONT SIZE=-1><U>SECTION</U> <U>8</U></FONT></B>
  <P><FONT SIZE=-1><U>Change</U> <U>in</U> <U>Control</U></FONT>
</CENTER>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Without in any way limiting the Committee's discretion, the Committee may include
  in any Incentive Award provisions for acceleration of any vesting or other similar
  requirements or for the elimination of any restrictions upon Incentive Awards
  upon a Change in Control of the Company. The Committee also may include provisions
  for Participants to receive cash in lieu of outstanding Stock Options upon a
  Change in Control of the Company.</FONT> <BR>
  &nbsp; <BR>
  &nbsp;
<CENTER>
  <P><B><FONT SIZE=-1><U>SECTION</U> <U>9</U></FONT></B>
  <P><FONT SIZE=-1><U>General</U> <U>Provisions</U></FONT>
</CENTER>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>No</U> <U>Rights</U> <U>to</U> <U>Awards</U>. No Participant or other person
  shall have any claim to be granted any Incentive Award under the Plan and there
  is no obligation of uniformity of treatment of Participants or holders or beneficiaries
  of Incentive Awards under the Plan. The terms and conditions of Incentive Awards
  of the same type and the determination of the Committee to grant a waiver or
  modification of any Incentive Award and the terms and conditions thereof need
  not be the same with respect to each Participant or among awards to the same
  Participant.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Withholding</U>. The Company or a Subsidiary shall be entitled to (a) withhold
  and deduct from future wages of a Participant (or from other amounts that may
  be due and owing to a Participant from the Company or a Subsidiary), or make
  other arrangements for the collection of, all amounts necessary to satisfy any
  and all federal, state and local withholding and employment-related tax requirements
  attributable to an Incentive Award or any action related to an Incentive Award,
  including, without limitation, the grant, exercise or vesting of, or payment
  of dividends with respect to, an Incentive Award or a disqualifying disposition
  of Common Stock received upon exercise of an incentive stock option; or (b)
  require a Participant promptly to remit the amount of such withholding to the
  Company before taking any action with respect to an Incentive Award. Unless
  the Committee determines otherwise, withholding may be satisfied by withholding
  Common Stock to be received upon exercise or by delivery to the Company of previously
  owned Common Stock. The Company may establish such rules and procedures concerning
  timing of any withholding election as it deems appropriate.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Compliance</U> <U>With</U> <U>Laws</U>; <U>Listing</U> <U>and</U> <U>Registration</U>
  <U>of</U> <U>Shares</U>. All Incentive Awards granted under the Plan (and all
  issuances of Common Stock or other securities under the Plan) shall be subject
  to all applicable laws, rules and regulations and to the requirement that if
  at any time the Committee shall determine, in its discretion, that the listing,
  registration or qualification of the shares covered thereby upon any securities
  exchange or under any state or federal law, or the consent or approval of any
  governmental regulatory body, is necessary or desirable as a condition of, or
  in connection with, the grant of such Incentive Award or the issue or purchase
  of shares thereunder, such Incentive Award may not be exercised in whole or
  in part, or the restrictions on such Incentive Award shall not lapse, unless
  and until such listing, registration, qualification, consent or approval shall
  have been effected or obtained free of any conditions not acceptable to the
  Committee.</FONT> <BR>
  <BR>
  <BR>
  <CENTER>
    <FONT SIZE="-1">A-8</FONT>
  </CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>No</U> <U>Limit</U> <U>on</U> <U>Other</U> <U>Compensation</U> <U>Arrangements</U>.
  Nothing contained in the Plan shall prevent the Company or any Subsidiary from
  adopting or continuing in effect other or additional compensation arrangements,
  including the grant of stock options and other stock-based awards and such arrangements
  may be either generally applicable or applicable only in specific cases.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>No</U> <U>Right</U> <U>to</U> <U>Employment</U>. The grant of an Incentive
  Award shall not be construed as giving a Participant the right to be retained
  in the employ of the Company or any Subsidiary. The Company or any Subsidiary
  may at any time dismiss a Participant from employment, free from any liability
  or any claim under the Plan, unless otherwise expressly provided in the Plan
  or in any written agreement with a Participant.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Suspension</U> <U>of</U> <U>Rights</U> <U>under</U> <U>Incentive</U> <U>Awards</U>.
  The Company, by written notice to a Participant, may suspend a Participant's
  and any transferee's rights under any Incentive Award for a period not to exceed
  30 days while the termination for cause of that Participant's employment with
  the Company and its Subsidiaries is under consideration.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Governing</U> <U>Law</U>. The validity, construction and effect of the Plan
  and any rules and regulations relating to the Plan shall be determined in accordance
  with the laws of the State of Michigan and applicable federal law.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Severability</U>. If any provision of the Plan shall be held illegal or invalid
  for any reason, the illegality or invalidity shall not affect the remaining
  provisions of the Plan and the Plan shall be construed and enforced as if the
  illegal or invalid provision had not been included.</FONT>
<P><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <U>Change</U> <U>of</U> <U>Name</U>. The Plan shall be automatically amended
  to reflect any change in the name of the Company.</FONT> <BR>
  <BR>
  <BR>
<CENTER>
  <P><B><FONT SIZE=-1><U>SECTION</U> <U>10</U></FONT></B>
  <P><FONT SIZE=-1><U>Termination</U> <U>and</U> <U>Amendment</U></FONT>
</CENTER>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <FONT SIZE=-1>The Board may terminate the Plan at any time, or may from time
  to time amend the Plan as it deems proper and in the best interests of the Company,
  provided that no such amendment may impair any outstanding Incentive Award without
  the consent of the Participant, except according to the terms of the Plan or
  the Incentive Award. No termination, amendment or modification of the Plan shall
  become effective with respect to any Incentive Award previously granted under
  the Plan without the prior written consent of the Participant holding such Incentive
  Award unless such amendment or modification operates solely to the benefit of
  the Participant.</FONT> <BR>
  <BR>
<CENTER>
  <P><B><U><FONT SIZE=-1>SECTION 11</FONT></U></B>
  <P><FONT SIZE=-1><U>Effective</U> <U>Date</U> <U>and</U> <U>Duration</U> <U>of</U>
    <U>the</U> <U>Plan</U></FONT>
</CENTER>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <FONT SIZE=-1>This Plan shall take effect April 27, 2000, subject to approval
  by the shareholders. No Incentive Award shall be granted under the Plan after
  April 26, 2010.</FONT> <BR>
  <BR>
  <BR>
  <CENTER>
    <FONT SIZE="-1">A-9</FONT>
  </CENTER>
<HR SIZE="4" NOSHADE>
<BR>
<CENTER>
  <P><B><FONT SIZE=-1>CHOICEONE FINANCIAL SERVICES, INC.</FONT></B>
</CENTER>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
  <TR>
    <TD VALIGN=TOP WIDTH="38%"><B><FONT SIZE=-1>P R O X Y</FONT></B></TD>
    <TD VALIGN=TOP WIDTH="22%">
      <CENTER>
	<B><FONT SIZE=-1>109 East Division</FONT></B>
      </CENTER>
    </TD>
    <TD VALIGN=TOP WIDTH="40%">
      <DIV ALIGN=right><B><FONT SIZE=-1>P R O X Y</FONT></B></DIV>
    </TD>
  </TR>
</TABLE>
<CENTER>
  <B><FONT SIZE=-1>Sparta, Michigan 49345</FONT></B> <BR>
    <B><FONT SIZE=-1>Annual Meeting of Shareholders - April 27, 2000</FONT></B>
</CENTER>

<P>


<FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned shareholder appoints Jae M. Maxfield and
Linda R. Pitsch, or either of them, each with the power to appoint his
or her substitute, attorneys and proxies to represent the shareholder and
to vote and act, with respect to all shares that the shareholder would
be entitled to vote at the annual meeting of shareholders of ChoiceOne
Financial Services, Inc. referred to above and any adjournment of that
meeting, on all matters that come before the meeting.</FONT>
<BR>
<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<TR>
<TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>1.</FONT></TD>

<TD VALIGN=TOP WIDTH="92%"><FONT SIZE=-1>Election of Directors</FONT></TD>
</TR>
</TABLE>
<P>


<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="5%"><FONT SIZE=-1>[&nbsp; ]</FONT></TD>

<TD VALIGN=TOP WIDTH="41%"><FONT SIZE=-1>FOR all nominees listed below</FONT></TD>

<TD VALIGN=TOP WIDTH="5%"><FONT SIZE=-1>[&nbsp; ]</FONT></TD>

<TD VALIGN=TOP WIDTH="41%"><FONT SIZE=-1>WITHHOLD AUTHORITY</FONT></TD>
</TR>

<TR>
<TD VALIGN=TOP WIDTH="8%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="5%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="41%"><FONT SIZE=-1>(except as indicated below)</FONT></TD>

<TD VALIGN=TOP WIDTH="5%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="41%"><FONT SIZE=-1>to vote for all nominees listed
below</FONT></TD>
</TR>
</TABLE>
<P>


<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<TR>
<TD VALIGN=TOP WIDTH="18%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="24%"><FONT SIZE=-1>William F. Cutler, Jr.</FONT></TD>

<TD VALIGN=TOP WIDTH="20%"><FONT SIZE=-1>Paul L. Johnson</FONT></TD>

<TD VALIGN=TOP WIDTH="38%"><FONT SIZE=-1>Andrew W. Zamiara</FONT></TD>
</TR>
</TABLE>

<P><B><FONT SIZE=-1>(Instruction: To withhold authority to vote for any
individual nominee, write that nominee's name in the space provided below.)</FONT></B>
<P>
<CENTER><B><FONT SIZE=-1>Your Board of Directors recommends that you vote <U>FOR</U>
all nominees</FONT></B></CENTER>

<BR>
<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<TR>
<TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>2.</FONT></TD>

<TD VALIGN=TOP WIDTH="92%"><FONT SIZE=-1>Proposal to Approve and Adopt
the Amendment to the Restated Articles of Incorporation to Increase the
Number of Authorized Shares of Common Stock</FONT></TD>
</TR>
</TABLE>
<P>


<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<TR>
<TD VALIGN=TOP WIDTH="23%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="5%"><FONT SIZE=-1>[&nbsp; ]</FONT></TD>

<TD VALIGN=TOP WIDTH="18%"><FONT SIZE=-1>FOR</FONT></TD>

<TD VALIGN=TOP WIDTH="4%"><FONT SIZE=-1>[&nbsp; ]</FONT></TD>

<TD VALIGN=TOP WIDTH="19%"><FONT SIZE=-1>AGAINST</FONT></TD>

<TD VALIGN=TOP WIDTH="4%"><FONT SIZE=-1>[&nbsp; ]</FONT></TD>

<TD VALIGN=TOP WIDTH="27%"><FONT SIZE=-1>ABSTAIN</FONT></TD>
</TR>
</TABLE>

<P>
<CENTER><B><FONT SIZE=-1>Your Board of Directors recommends that you vote <U>FOR</U>
the Proposal</FONT></B></CENTER>

<BR>
<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<TR>
<TD VALIGN=TOP WIDTH="8%"><FONT SIZE=-1>3.</FONT></TD>

<TD VALIGN=TOP WIDTH="92%"><FONT SIZE=-1>Proposal to Approve and Adopt
the Amended and Restated Executive Stock Incentive Plan</FONT></TD>
</TR>
</TABLE>
<P>


<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<TR>
<TD VALIGN=TOP WIDTH="23%">&nbsp;</TD>

<TD VALIGN=TOP WIDTH="5%"><FONT SIZE=-1>[&nbsp; ]</FONT></TD>

<TD VALIGN=TOP WIDTH="18%"><FONT SIZE=-1>FOR</FONT></TD>

<TD VALIGN=TOP WIDTH="4%"><FONT SIZE=-1>[&nbsp; ]</FONT></TD>

<TD VALIGN=TOP WIDTH="19%"><FONT SIZE=-1>AGAINST</FONT></TD>

<TD VALIGN=TOP WIDTH="4%"><FONT SIZE=-1>[&nbsp; ]</FONT></TD>

<TD VALIGN=TOP WIDTH="27%"><FONT SIZE=-1>ABSTAIN</FONT></TD>
</TR>
</TABLE>

<P>
<CENTER><B><FONT SIZE=-1>Your Board of Directors recommends that you vote <U>FOR</U>
the Proposal</FONT></B></CENTER>

<BR>
<BR>

<P><B><FONT SIZE=-1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This proxy is solicited by the Board of Directors. If this proxy is properly
executed and delivered, the shares represented by this proxy will be voted
as specified. If no specification is made, the shares will be voted for
election of all nominees named on this proxy and for each proposal identified
on this proxy. The shares represented by this proxy will be voted in the
discretion of the proxies on any other matters that may come before the
meeting or any adjournment of the meeting.</FONT></B>
<P>


<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" BORDERCOLOR="#ffffff" >
<TR>
<TD VALIGN=TOP WIDTH="53%"><FONT SIZE=-1>Dated: _________________, 2000</FONT></TD>

<TD VALIGN=TOP WIDTH="47%"><FONT SIZE=-1>Please sign exactly as your name
appears on this proxy. If signing for estates, trusts or corporations,
title or capacity should be stated. <B>If shares are held jointly, each
holder should sign.</B></FONT>
<BR>&nbsp;
<P><FONT SIZE=-1>&nbsp;<HR SIZE="1"></FONT>
<CENTER><FONT SIZE=-1>Signature</FONT></CENTER>

<P><BR>
<P><FONT SIZE=-1>&nbsp;<HR SIZE="1"></FONT>
<CENTER><FONT SIZE=-1>Signature if held jointly</FONT></CENTER>
</TD>
</TR>
</TABLE>

<BR>
&nbsp; &nbsp;
<P>
<CENTER><B><FONT SIZE=-1>IMPORTANT -- Please Mark, Sign, Date and Return Promptly
in the Enclosed Envelope</FONT></B></CENTER>
<BR>
<BR>
<BR>
<!-- This document was created by
Cathy S. Cox, EDGAR Support Specialist,
Warner Norcross & Judd LLP
(616) 752-2000) //-->


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