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<SEC-DOCUMENT>0000950152-09-002370.txt : 20090310
<SEC-HEADER>0000950152-09-002370.hdr.sgml : 20090310
<ACCEPTANCE-DATETIME>20090309184017
ACCESSION NUMBER:		0000950152-09-002370
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20090414
FILED AS OF DATE:		20090310
DATE AS OF CHANGE:		20090309
EFFECTIVENESS DATE:		20090310

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FARMERS & MERCHANTS BANCORP INC
		CENTRAL INDEX KEY:			0000792966
		STANDARD INDUSTRIAL CLASSIFICATION:	SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035]
		IRS NUMBER:				341469491
		STATE OF INCORPORATION:			OH
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-14492
		FILM NUMBER:		09667373

	BUSINESS ADDRESS:	
		STREET 1:		307-11 N DEFIANCE ST
		CITY:			ARCHBOLD
		STATE:			OH
		ZIP:			43502
		BUSINESS PHONE:		4194462501

	MAIL ADDRESS:	
		STREET 1:		307-11 NORTH DEFIANCE ST
		CITY:			ARCHBOLD
		STATE:			OH
		ZIP:			43502
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>k47512ddef14a.htm
<DESCRIPTION>DEF 14A
<TEXT>
<HTML>
<HEAD>
<TITLE>DEF 14A</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, DC 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>SCHEDULE 14A INFORMATION STATEMENT</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>Proxy Statement Pursuant to Section&nbsp;14(a) of the Securities<BR>
Exchange Act of 1934</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Filed by the Registrant <FONT face="Wingdings">&#254;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Filed by a Party other than the Registrant <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Check the appropriate box:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Preliminary Proxy Statement</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Confidential, for Use of the Commission Only (as permitted by Rule&nbsp;14a-6(e)(2))</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Definitive Proxy Statement</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Definitive Additional Materials</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Soliciting Material Pursuant to Section&nbsp;240.14a-11(c) or Section&nbsp;240.14a-12</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B><FONT style="font-variant: SMALL-CAPS">FARMERS &#038; MERCHANTS BANCORP, INC.</FONT></B>
</DIV>

<DIV align="center" style="font-size: 10pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
(Name of Registrant as Specified In Its Charter)</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Payment of Filing Fee (Check the appropriate box):
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No fee required.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fee computed on table below per Exchange Act Rules&nbsp;14a-6(i)(1) and 0-11.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Title of each class of securities to which transaction applies:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Aggregate number of securities to which transaction applies:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Per unit price or other underlying value of transaction computed pursuant to Exchange Act
Rule&nbsp;0-11 (Set forth the amount on which the filing fee is calculated and state how it was
determined):</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Proposed maximum aggregate value of transaction:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Total fee paid:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fee paid previously with preliminary materials.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Check box if any part of the fee is offset as provided by Exchange Act
Rule&nbsp;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.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amount Previously Paid:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form, Schedule or Registration Statement No.:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Filing Party:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Date Filed:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">








<DIV align="left" style="font-size: 10pt; margin-top: 6pt">March&nbsp;10, 2009
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dear Fellow Shareholders:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">I am pleased to invite you to attend the Annual Meeting of Shareholders of Farmers &#038; Merchants
Bancorp, Inc. The meeting will be held at Founders Hall, located at Sauder Village, State Route 2,
Archbold, Ohio 43502 on <B>Tuesday, April&nbsp;14, 2009 at 7:00 P.M.,
(local time)</B>. The sit down dinner will start at 6:00&nbsp;P.M.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The only item to be considered at this year&#146;s Annual Meeting is the election of directors. The
meeting will also provide an opportunity to review with you the results of Farmers &#038; Merchants
Bancorp, Inc. and its subsidiaries during 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Your vote is important no matter how many shares you own. I encourage you to read the proxy
statement carefully and then to vote your shares. If you choose not to attend the Annual Meeting
of Shareholders, you may vote by mail by signing, dating and returning the proxy card in the
accompanying envelope. If you hold shares of Farmers &#038; Merchants Bancorp, Inc. common stock
directly in your name, you may also vote over the internet or by telephone. Internet and telephone
voting instructions are printed on the proxy card sent to you.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If you do attend the meeting and desire to vote in person, you may do so even though you have
previously submitted your proxy. In that case, your vote at the meeting would supersede your
proxy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We look forward to seeing you at the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Sincerely,
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Farmers &#038; Merchants Bancorp, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>/s/ Paul S. Siebenmorgen</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Paul S. Siebenmorgen, President and CEO
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>FARMERS &#038; MERCHANTS BANCORP, INC.<BR>
307 North Defiance St.<BR>
Archbold, Ohio 43502-0216<BR>
(419)&nbsp;446-2501</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>NOTICE OF ANNUAL MEETING OF SHAREHOLDERS TO BE HELD</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>April&nbsp;14, 2009</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To Our Shareholders:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notice Is Hereby Given </B>that the Annual Meeting of Shareholders of Farmers &#038; Merchants Bancorp,
Inc., an Ohio corporation (the &#147;Corporation&#148;), will be held at Founders Hall, located at Sauder
Village, State Route 2, Archbold, Ohio 43502 on <B>Tuesday, April&nbsp;14, 2009 at 7:00 P.M. (local time)</B>,
for the following purposes:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Election of Directors </B>- To elect the following thirteen (13)&nbsp;nominees to the Board of
Directors to serve until the Annual Meeting of Shareholders in 2010:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dexter L. Benecke
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Steven J. Planson
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Merle J. Short</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Steven A. Everhart
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Anthony J. Rupp
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Paul S. Siebenmorgen</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Robert G. Frey
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">David P. Rupp, Jr.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Steven J. Wyse</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Jack C. Johnson
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">James C. Saneholtz</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Marcia S. Latta
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Kevin J. Sauder</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Other Business </B>- To transact any other business which may properly come before the meeting or
any adjournment of it.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board of Directors has fixed the close of business on February&nbsp;26, 2009, as the record date for
determination of shareholders who are entitled to notice of and to vote at the meeting.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">By Order of the Board of Directors<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left"><I>/s/ Lydia A. Huber</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Lydia A. Huber, Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Archbold, Ohio<BR>
March&nbsp;10, 2009
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If the enclosed proxy statement and annual report are being delivered to two or more security
holders who share the same address, and the security holders sharing the same address each desires
to receive a proxy statement and annual report, or if there are more than one copy of the proxy
statement and annual report being delivered to security holders who share the same address, and it
is preferred to receive a single copy of such proxy statement and annual report, please notify Ms.
Lydia A. Huber, Secretary of Farmers &#038; Merchants Bancorp, Inc. This request should be in writing
addressed to Ms.&nbsp;Huber at Farmers &#038; Merchants Bancorp, Inc., 307 North Defiance St., Archbold, Ohio
43502-0216. If you have questions, please contact Ms.&nbsp;Huber by telephone at 419-446-2501.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>The proxy statement and annual report to security holders are available at:</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>http://www.fm-bank.com/proxy(5755)fm2009/fm_info.cfm</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following items are available at the specified web site:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"> <Font face="Wingdings"><B>&#167;</B></FOnt></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The proxy statement being issued in connection with the 2009 Annual Meeting
of Shareholders;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"> <Font face="Wingdings"><B>&#167;</B></FOnt></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company&#146;s 2008 Annual Report to Shareholders;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"> <Font face="Wingdings"><B>&#167;</B></FOnt></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The form of proxy for use in connection with the 2009 Annual Meeting of
Shareholders; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"> <Font face="Wingdings"><B>&#167;</B></FOnt></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company&#146;s 2008 10-K Report.</TD>
</TR>

</TABLE>
</DIV>
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Your vote is important. Even if you plan to attend the meeting, please complete, date and sign the
enclosed proxy and return it promptly in the enclosed envelope or follow the voting instructions
for internet or telephone voting enclosed if you are a shareholder of record.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Shareholders whose shares are registered in the name of a bank or brokerage firm may be eligible to
vote electronically through the internet or by telephone. A large number of banks and brokerage
firms are participating in the ADP Investor Communication Services online program. This program
provides eligible shareholders the opportunity to vote via the internet or by telephone. Voting
forms will provide instructions for shareholders whose bank or brokerage firm is participating in
ADP&#146;s program.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>You have the right to revoke your proxy and vote in person at the meeting if you so choose. Please
contact Ms.&nbsp;Lydia A. Huber, Secretary of the Corporation at (419)&nbsp;446-2501, if you would like
information on how to obtain directions to be able to attend the meeting and vote in person or if
you have any additional questions.</B>
</DIV>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Proxy Statement, proxy card and Farmers &#038; Merchants Bancorp, Inc. 2008 Annual Report will be
mailed to shareholders commencing on or about March&nbsp;10, 2009.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>FARMERS &#038; MERCHANTS BANCORP, INC.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Proxy Statement<BR>
for<BR>
Annual Meeting of Shareholders<BR>
April&nbsp;14, 2009</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Proxy Statement is furnished in connection with the solicitation of proxies by the Board of
Directors of Farmers &#038; Merchants Bancorp, Inc., an Ohio corporation (&#147;Corporation&#148;), to be used at
the Annual Meeting of Shareholders of the Corporation, to be held at Founders Hall, located at
Sauder Village, State Route 2, Archbold, Ohio 43502 on Tuesday, April&nbsp;14, 2009 at 7:00 P.M., (local
time), and at any adjournments thereof, pursuant to the accompanying Notice of Meeting.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>General Information about the Meeting and Voting Securities and Procedures</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Who may vote at the meeting?</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board of Directors has fixed the close of business on February&nbsp;26, 2009 as the record date for
the determination of shareholders who are entitled to notice of and to vote at the meeting.
Subject to your right to vote cumulatively in the election of directors, if properly implemented,
you are entitled to one vote for each share of common stock you held on the record date, including
shares:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"> <Font face="Wingdings"><B>&#167;</B></FOnt></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>held directly in your name; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"> <Font face="Wingdings"><B>&#167;</B></FOnt></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>held for you in an account with a broker, bank or other nominee (shares held in
&#147;street name&#148;).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>How many shares must be present to hold the meeting?</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A majority of Farmers &#038; Merchants Bancorp, Inc. outstanding shares of common stock as of the record
date must be present at the meeting in order to hold the meeting and conduct business. This is
called a quorum. On the record date there were 4,758,131 shares of the Corporation&#146;s common stock,
without par value (&#147;Common Stock&#148;) outstanding, with an additional 23,575 shares subject to
restricted stock grants, the holders of which shares are entitled to vote such shares. Each of the
holders of the outstanding shares and restricted stock grants totaling 4,781,706 shares are
entitled to one vote per share, subject to the right to vote cumulatively in the election of
directors, if properly implemented. Your shares are counted as present at the meeting if you:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"> <Font face="Wingdings"><B>&#167;</B></FOnt></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>are present and vote in person at the meeting; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"> <Font face="Wingdings"><B>&#167;</B></FOnt></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>have properly submitted a proxy card or have voted electronically or by telephone
prior to the meeting.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Abstentions and broker non-votes are counted for purposes of determining the presence or absence of
a quorum for the transaction of business at the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>What proposals will be voted on at the meeting?</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The only proposal scheduled to be voted on at the meeting is the election of directors of the
Corporation.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Who is requesting my vote?</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The solicitation of proxies on the enclosed form is made on behalf of the Board of Directors of the
Corporation and will be conducted primarily through the mail. Please mail your completed proxy in
the envelope included with these proxy materials. In addition to the use of the mail, members of
the Board of Directors and certain officers and employees of the Corporation or its subsidiaries
may solicit the return of proxies by telephone, facsimile, and other electronic media or through
personal contact. The directors, officers and employees that participate in such solicitation will
not receive additional compensation for such efforts, but will be reimbursed for out-of-pocket
expenses. The cost of preparing, assembling and mailing this Proxy Statement, the Notice of
Meeting and the enclosed proxy will be borne by the Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>How many votes are required to approve each proposal?</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Directors will be elected by a plurality of the votes cast at the Annual Meeting. This means that
the 13 nominees who receive the largest number of &#147;FOR&#148; votes cast will be elected as directors.
Many of the Corporation&#146;s shareholders hold their shares in &#147;street name&#148;&#151;in the name of a
brokerage firm. If you hold your shares in &#147;street name,&#148; please note that only your brokerage
firm can sign a proxy on your behalf. <B>The Board of Directors urges you to contact the person
responsible for your account today, and instruct them to execute a proxy on your behalf for the
annual meeting.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>How are votes counted?</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A shareholder may:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"> <Font face="Wingdings"><B>&#167;</B></FOnt></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Vote for all of the nominees for director</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"> <Font face="Wingdings"><B>&#167;</B></FOnt></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Withhold votes on all of the nominees for director</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"> <Font face="Wingdings"><B>&#167;</B></FOnt></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Withhold votes for one or more nominees</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"> <Font face="Wingdings"><B>&#167;</B></FOnt></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Abstain from voting</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The laws of Ohio, under which the Corporation is incorporated, and the Corporation&#146;s Articles of
Incorporation provide if notice in writing is given by any shareholder to the President, Vice
President or the Secretary of the Corporation not less than 48 hours before the time fixed for
holding a meeting of shareholders for the purpose of electing directors, that he desires that the
voting at that election shall be cumulative, and if an announcement of the giving of such notice is
made upon the convening of the meeting by the Chairman or Secretary or by or on behalf of the
shareholder giving such notice, each shareholder shall have the right to cumulate such voting power
as he possesses in voting for directors. Cumulative voting rights allow shareholders to vote the
number of shares owned by them times the number of directors to be elected and to cast such votes
for one nominee or to allocate such votes among nominees as they deem appropriate. Shareholders
will not be entitled to exercise cumulative voting unless at least one shareholder properly
notifies the Corporation of their desire to implement cumulative voting at the Annual Meeting. The
Corporation is soliciting the discretionary authority to cumulate votes represented by proxy, if
such cumulative voting rights are exercised.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>How does the Board recommend that I vote?</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board of Directors recommends that you vote &#147;FOR&#148; all of the director nominees listed in
proposal 1. In the absence of instruction, the proxy will be voted &#147;FOR&#148; the election of the
management director nominees listed in this Proxy Statement and in the discretion of the proxy
committee for any other business that properly comes before the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>How do I vote my shares without attending the meeting?</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Whether you hold shares directly or in &#147;street name&#148;, you may direct your vote without attending
the Annual Meeting. If you are a shareholder of record, you may vote by granting a proxy as
follows:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"> <Font face="Wingdings"><B>&#167;</B></FOnt></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>By Mail &#151; You may vote by mail by signing and dating your proxy card and mailing
it in the envelope provided. You should sign your name exactly as it appears on the
proxy card. If you are signing in a representative capacity (for example as guardian,
trustee, custodian, attorney or officer of a corporation), you should indicate your
name and title or capacity.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"> <Font face="Wingdings"><B>&#167;</B></FOnt></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>By Phone &#151; You may vote by phone by calling 1-866-598-8811 and following the
instructions given.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"> <Font face="Wingdings"><B>&#167;</B></FOnt></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>By Internet &#151; You may vote by internet by going to the following web site,
following the instructions given and entering the requested information on your
computer screen: <U>https://www.proxyvotenow.com/fmao</U>.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Your vote by phone or internet is valid as authorized by the Ohio General Corporation Law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For shares held in &#147;street name&#148;, you should follow the voting instructions provided by your broker
or nominee. You may complete and mail a voting instruction card to your broker or nominee or, in
some cases, submit voting instructions by telephone or the internet. If you provide specific
voting instructions by mail, telephone, or internet, your broker or nominee will vote your shares
as you have directed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>How do I vote my shares in person at the meeting?</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Even if you plan to attend the meeting, we encourage you to vote by mail, phone or internet so your
vote will be counted if you later decide not to attend the meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If you choose to vote at the Annual Meeting:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"> <Font face="Wingdings"><B>&#167;</B></FOnt></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If you are a shareholder of record, to vote your shares at the meeting you should
bring the enclosed proxy card and proof of identity.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"> <Font face="Wingdings"><B>&#167;</B></FOnt></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If you hold your shares in &#147;street name&#148;, you must obtain a proxy in your name from
your bank, broker or other holder of record in order to vote at the meeting.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Bring the proxy (for record holders) or proof of beneficial ownership (for &#147;street name&#148; holders)
such as a recent brokerage statement or a letter from your bank or broker, and proof of identity to
the meeting.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>What does it mean if I receive more than one proxy?</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">It likely means you hold shares registered in more than one account. To ensure that all of your
shares are voted, sign and return each proxy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>May I change my vote?</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Yes. The proxy may be revoked at any time before it is voted by written notice to the Corporation
prior to the start of the meeting, and any shareholder attending the meeting may vote in person
whether or not he has previously submitted a proxy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>When will the proxy and annual report be mailed to shareholders?</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Proxy Statement and the accompanying Notice of Annual Meeting of Shareholders and Proxy are
being mailed to the Corporation&#146;s shareholders on or about March&nbsp;10, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>How may I view the proxy and annual report electronically?</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">You may access the reports by going to our website if you are a shareholder of record date,
February&nbsp;26, 2009 at the following address:
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>http://www.fm-bank.com/proxy(5755)fm2009/fm_info.cfm</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>How Many Shares are Owned by Directors and Executive Officers?</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All directors and executive officers of the Corporation as a group (comprised of 17 individuals),
beneficially held 254,600 shares of the Corporation&#146;s common stock as of February&nbsp;26, 2009,
representing 5.32% of the outstanding common stock of the Corporation.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">&#091;Remainder of this page intentionally left blank.&#093;
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Proposal 1</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Election of Directors and Information Concerning Directors and Officers</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Code of Regulations of Farmers &#038; Merchants Bancorp, Inc. provides that the number of directors
to be elected at the Shareholder Meeting will be determined by the vote of the shareholders, but
shall not be less than nine or greater than twenty. Currently, the number of directors is set at
thirteen. Set forth below, as of the record date, is information concerning the nominees for the
election to the Board of Directors. The following persons have been nominated as directors by the
Board of Directors upon the recommendation of the Corporation&#146;s Nominating and Corporate Governance
Committee to serve until the annual meeting of shareholders in 2010:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="31%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Year First</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Principal Occupation or</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Became</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Age</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Employment for Past Five Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Director</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dexter L. Benecke
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">66</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President, Freedom Ridge, Inc.
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1999</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Steven A. Everhart
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">54</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Secretary/Treasurer, MBC Holdings, Inc.
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2003</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Robert G. Frey
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">68</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President, E. H. Frey &#038; Sons, Inc.
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1987</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Jack C. Johnson
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">56</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President, Hawk&#146;s Clothing, Inc.
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1991</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Marcia S. Latta<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">47</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President, BGSU Foundation, Inc. &#038;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2009</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sr. Assoc. Vice President For Advancement, BGSU</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Steven J. Planson
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">49</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Self-employed Farmer
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2008</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Anthony J. Rupp<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">59</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President, Rupp Furniture Co.
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">David P. Rupp, Jr.<SUP style="font-size: 85%; vertical-align: text-top"> (2)(3)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">67</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attorney
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2001</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">James C. Saneholtz
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">62</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President, Saneholtz-McKarns, Inc.
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1995</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Kevin J. Sauder
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">48</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President, Chief Executive Officer,
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2004</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sauder Woodworking Co.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Merle J. Short
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">68</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman, ProMow, Inc.
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1987</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Paul S. Siebenmorgen<SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">59</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and CEO of the Corporation and
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2005</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Farmers &#038; Merchants State Bank</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Steven J. Wyse
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">64</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Private Investor
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1991</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Ms.&nbsp;Latta was appointed to the Board of Directors of the Company and The
Farmers &#038; Merchants State Bank on January&nbsp;16, 2009.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Anthony J. Rupp and David P. Rupp Jr., both of whom are being nominated to the Board
of Directors, are brothers.</TD>
</TR>

</TABLE>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">(footnotes regarding this table are continued on the following page) </div>
<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
</div>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>David P. Rupp Jr. is an attorney with membership in the law firm of Plassman, Rupp,
Short, &#038; Hagans of Archbold, Ohio. The law firm has been retained by the Corporation, and its
subsidiaries, during the past twenty years and is to be retained currently.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Siebenmorgen became the President and CEO of the Corporation and the Bank
effective February&nbsp;18, 2005. From June, 2004 to February&nbsp;18, 2005 he was Senior Executive
Vice President and Chief Lending Officer of the Bank and was not a member of the Board of
Directors of the Corporation or the Bank. Prior to joining the Corporation in June of 2004
Mr.&nbsp;Siebenmorgen was Senior Vice President of Lincoln Bank, Plainfield, Indiana.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Other than the relationship between Mr.&nbsp;Anthony J. Rupp and David P. Rupp, Jr. noted above, there
are no family relationships among any of the directors, nominees for election as directors and
executive officers of the Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">While it is contemplated that all nominees will stand for election, and the nominees have confirmed
this with the Corporation, if one or more of the nominees at the time of the annual meeting should
be unavailable or unable to serve as a candidate for election as a director of the Corporation, the
proxies reserve full discretion to vote the common shares represented by the proxies for the
election of the remaining nominees and any substitute nominee(s) designated by the Board of
Directors. The Board of Directors knows of no reason why any of the above-mentioned persons will
be unavailable or unable to serve if elected to the Board. Under Ohio law and the Corporation&#146;s
Code of Regulations, the thirteen nominees receiving the greatest number of votes will be elected
as directors. The attached form of proxy grants to the persons listed in such proxy the right to
vote shares cumulatively in the election of directors if a shareholder properly implements
cumulative voting.
</DIV>
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS TO SHAREHOLDERS THE ELECTION OF THE ABOVE-LISTED
PERSONS AS DIRECTORS FOR THE CORPORATION</B>
</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth certain information with respect to the executive officers of the
Corporation and the Bank:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="27%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="58%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Officer</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Positions and Offices Held With Corporation and</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Age</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Since</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>the Bank &#038; Principal Occupation Held Past Five Years</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Paul S. Siebenmorgen
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">59</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2004</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President and CEO (&#147;PEO&#148;)<SUP style="font-size: 85%; vertical-align: text-top">(1)(2)</SUP></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Barbara J. Britenriker
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">47</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1992</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President and Chief Financial Officer
(&#147;PFO&#148;)<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>, was Senior Vice President until
September&nbsp;2004, was Vice President until April&nbsp;2002</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Todd A. Graham
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">59</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2008</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President &#038; Chief Lending Officer</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Edward A. Leininger
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">53</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1981</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President and Chief Operating Officer,
was Senior Commercial Loan Officer until July&nbsp;2004,
and was EVP &#151; Commercial Loans, until April&nbsp;2001</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Rex D. Rice
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">50</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1984</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President and Senior Commercial Banking
Director, was Chief Lending Officer until July&nbsp;2004</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Mr.&nbsp;Siebenmorgen became the President and CEO effective February&nbsp;18, 2005. Mr.
Siebenmorgen was hired as the Senior Executive Vice President and Chief Lending Officer of the
Bank in June&nbsp;2004.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>The designation PEO means principal executive officer and PFO means principal
financial officer under the rules of the SEC.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Security Ownership of Certain Beneficial Owners and Management</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth the number of shares of common stock beneficially owned at February
26, 2009 by each director and nominee, and all directors and executive officers as a group. As of
the date of this Proxy Statement, management is not aware of any person who beneficially owns more
than five percent of the Corporation&#146;s common stock.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="61%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Beneficial Ownership of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Nominees for Director and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount of Shares of Common</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Named Executive Officers</B></TD>
    <TD style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Stock Beneficially Owned</B></TD>
    <TD style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Percent of Total</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Directors:</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD style="font-size: 10pt">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Dexter L. Benecke</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">7,378</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.15</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Steven A. Everhart</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5,228</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top"> (2)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.11</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Robert G. Frey</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">30,032</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.63</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Jack C. Johnson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,303</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.03</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Marcia S. Latta</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.03</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Steven J. Planson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2,426</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.05</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Anthony J. Rupp</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">12,618</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.26</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">David P. Rupp Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">31,100</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.65</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">James C. Saneholtz</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.04</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Kevin J. Sauder</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3,933</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.08</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Merle J. Short</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">26,160</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(8)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.55</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Paul S. Siebenmorgen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">15,543</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(9)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.33</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Steven J. Wyse</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">107,060</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(10)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2.24</TD>
    <TD nowrap>%</TD>
</TR>
<TR>
    <TD style="font-size: 10pt">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="5" align="left"><I>Executive Officers (other than Mr.&nbsp;Siebenmorgen who is noted above):</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Barbara J. Britenriker</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2,550</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(11)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.05</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Todd A. Graham</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">200</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(13)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Edward A. Leininger</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">6,120</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(12)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.13</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Rex D. Rice</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3,349</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(14)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.07</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Directors and Executive Officers
as a Group (17 Persons)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">254,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">5.32</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Includes 1,891 shares held in a trust, of which Mr.&nbsp;Benecke is one of the trustees,
588 shares of common stock owned jointly with Mr.&nbsp;Benecke&#146;s spouse and 1,399 shares of common
stock owned by his Spouse in trust. 3,500 individually.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(2)</sup></TD>
    <TD>&nbsp;</TD>
    <TD><sup></SUP> All shares of common stock are owned jointly with Mr.&nbsp;Everhart&#146;s spouse.<BR></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD> Includes 600 shares of common stock owned individually by Mr.&nbsp;Frey&#146;s spouse.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(4)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Includes 1,166 shares of common stock owned jointly with Mr.&nbsp;Planson&#146;s
spouse.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(5)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Includes 6,208 shares of common stock owned individually by Mr.&nbsp;Rupp&#146;s spouse.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(6)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Includes 3,700 shares owned by a church of which Mr.&nbsp;Rupp serves on the endowment
committee (of which Mr.&nbsp;Rupp disclaims beneficial ownership and which shares are also included
as shares owned by Mr.&nbsp;Siebenmorgen).</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(7)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Includes 1,966 shares of common stock owned individually by Mr.&nbsp;Sauder&#146;s spouse.<BR></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(8)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Includes 11,980 shares of common stock owned individually by Mr.&nbsp;Short&#146;s spouse, and
4,000 shares of common stock held in a
trust.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(9)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Includes 1,668 shares of common stock owned jointly by Mr.&nbsp;Siebenmorgen with his
spouse, 3,700 shares owned by a church of which Mr.&nbsp;Siebenmorgen serves on the endowment
committee (of which Mr.&nbsp;Siebenmorgen disclaims beneficial ownership and which shares are also
included as shares owned by David P. Rupp, Jr.), and 2,400 shares representing restricted
stock awards issued pursuant to the Corporation&#146;s Long Term Incentive Plan, 600 of which vest
on August&nbsp;16, 2009 and 800 of which vest on August&nbsp;17, 2010 and 1000 shares of which vest on
August&nbsp;15, 2011.</TD>
</TR>

</TABLE>

 <DIV align="Center" style="font-size: 10pt; margin-top: 6pt">(Footnotes regarding this table are continued on the following page) </div>

<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(10)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Includes 52,000 shares of common stock owned individually by Mr.&nbsp;Wyse&#146;s spouse
and 1,412 shares owned in trusts of which
Mr.&nbsp;Wyse is co-trustee.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(11)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Includes 1,310 shares of common stock owned jointly with Ms.&nbsp;Britenriker&#146;s
spouse and 1,240 shares representing restricted stock awards issued pursuant to the Corporation&#146;s Long Term Incentive Plan, 290 of which
vest on August&nbsp;16, 2009 and 450 of which vest on August&nbsp;17, 2010, and 500 shares of which vest on August&nbsp;15, 2011.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(12)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Includes 4,960 shares of common stock owned jointly with Mr.&nbsp;Leininger&#146;s spouse
and 1,160 shares representing restricted stock awards issued pursuant to the Corporation&#146;s Long Term Incentive Plan, 290 of which vest on
August&nbsp;16, 2009 and 370 of which vest on August&nbsp;17, 2010, and 500 shares of which vest on August&nbsp;15, 2011.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(13)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>200 shares representing restricted stock awards pursuant to the Corporation&#146;s Long
Term Incentive Plan, 200 of which vest on August&nbsp;15, 2011.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(14)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Includes 2,289 shares of common stock owned jointly with Mr.&nbsp;Rice&#146;s spouse and
1,060 shares representing restricted stock
awards issued pursuant to the Corporation&#146;s Long Term Incentive Plan, 290 of which vest on
August&nbsp;16, 2009 and 370 of which
vest on August&nbsp;17, 2010, and 400 shares of which vest on August&nbsp;15, 2011.</TD>
</TR>

</TABLE>



<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Committees of the Board of Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table summarizes the membership of the Board of Directors and each of its committees,
and the number of times each met during 2008.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Nominating/</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Corporate</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Governance</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Board</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Audit Committee</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Committee</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Committee</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dexter L. Benecke</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Steven A. Everhart</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Robert G. Frey</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jack C. Johnson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Marcia S. Latta<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Steven J. Planson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Anthony J. Rupp</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">David P. Rupp Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">James C. Saneholtz</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kevin J. Sauder</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Merle J. Short</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Paul S. Siebenmorgen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Steven J. Wyse</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Member</TD>
</TR>
<TR>
    <TD style="font-size: 10pt">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Number of Meetings
In 2008</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>7</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>5</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>2</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Ms.&nbsp;Latta became a member of the Board of Directors effective January&nbsp;16, 2009.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The directors of Farmers &#038; Merchants Bancorp, Inc. are also the directors of The Farmers &#038;
Merchants State Bank. The Corporation&#146;s Board of Directors met 7 times during 2008 whereas the
Board of Directors of the Bank met 14 times in 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During 2008, each director attended 75% or more of the total meetings of the Board and the
committees on which they served (held during the period that each served as a director) of the
Corporation and Farmers &#038; Merchants State Bank, the primary operating subsidiary of the
Corporation.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board of Directors of the Corporation&#146;s bank subsidiary has an Executive Salary Committee that
also acts as the Compensation Committee for the Corporation, which committee is responsible for
establishing salary levels and benefits for its executive officers. In determining the compensation
of the executive officers of the Corporation&#146;s subsidiaries, the subsidiaries have sought to create
a compensation program that relates compensation to financial performance, recognizes individual
contributions and achievements, and attracts and retains outstanding executive officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Corporation has a Nominating and Corporate Governance Committee which is responsible for any
recommendations to the full Board of Directors of proposed Amendments to the Corporation&#146;s Articles
of Incorporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Corporation also has an Audit Committee established in accordance with 15 U.S.C. 78c(a)(58)(A).
The function of the Audit Committee is to review the adequacy of the Corporation&#146;s system of
internal controls, to investigate the scope and adequacy of the work of the Corporation&#146;s
independent public accountants and to recommend to the Board of Directors a firm of accountants to
serve as the Corporation&#146;s independent public accountants.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Corporate Governance</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Starting in 2003, the Corporation reviewed its corporate governance policies as a matter of good
business practices and in light of the passage of the Sarbanes-Oxley Act of 2002 (&#147;Sarbanes Oxley&#148;)
and regulations promulgated by the Securities and Exchange Commission (&#147;SEC&#148;) and listing standards
adopted by NASDAQ. While the corporate governance requirements set forth in the NASDAQ listing
standards are not applicable to the Corporation because it is not listed on NASDAQ, the Corporation
decided to implement most of those corporate governance policies to encourage appropriate conduct
among the members of its Board of Directors, officers and employees and to assure that the
Corporation operates in an efficient and ethical manner.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Committee Charters and Board Independence</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board of Directors has adopted charters for the Audit Committee, the Compensation Committee and
the Nominating and Corporate Governance Committee. The members of each of these three committees
are currently, and under the terms of the respective charters, will continue to be &#147;independent&#148;
pursuant to standards adopted by NASDAQ. Further, the Board of Directors has determined that under
the NASDAQ &#147;independence&#148; standards, a majority of the members of the Board of Directors are
currently independent. In reviewing the independence of members, the Board of Directors took into
account the transactions disclosed under the caption Director Independence and Related Party
Transactions appearing in this proxy. In making this determination, the Board has concluded that a
majority of the members of the board have no relationship which, in the opinion of the Board, would
interfere with the exercise of independent judgment in carrying out the responsibilities of a
director. Copies of the charters for each of these committees are available on the Bank&#146;s website
(<u>www.fm-bank.com</u>), and are available upon request from the Corporation. Shareholders desiring a
paper copy of one or all of the charters should address written requests to Ms.&nbsp;Lydia A. Huber,
Secretary of Farmers &#038; Merchants Bancorp, Inc., 307 North Defiance Street, Archbold, Ohio 43502.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Code of Conduct and Ethics</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board of Directors has adopted a Code of Business Conduct and Ethics (the &#147;Code&#148;). The Code
applies to all officers, directors and employees of the Corporation
and the Bank. The administration of the Code has been delegated to the Audit Committee of the Board of Directors,
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"> a
committee comprised entirely of &#147;independent directors.&#148; The Code addresses topics such as
compliance with laws and regulations, honest and ethical conduct, conflicts of interest,
confidentiality and protection of Corporation assets, fair dealing and accurate and timely periodic
reports, and also provides for enforcement mechanisms. The Board and management of the Corporation
intend to continue to monitor not only the developing legal requirements in this area, but also the
best practices of comparable companies, to assure that the Corporation maintains sound corporate
governance practices in the future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A copy of the Corporation&#146;s Code is available on the website of the Bank (<u>www.fm-bank.com</u>). In
addition, a copy of the Code is available to any shareholder free of charge upon request.
Shareholders desiring a copy of the Code should address written requests to Ms.&nbsp;Lydia A. Huber,
Secretary of Farmers &#038; Merchants Bancorp, Inc., 307 North Defiance Street, Archbold, Ohio 43502,
and are asked to mark Code of Business Conduct and Ethics on the outside of the envelope containing
the request.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Nominations for Members of the Board of Directors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As noted above under &#147;Corporate Governance&#148;, the Corporation established a Nominating and Corporate
Governance Committee. The current members of the committee all are &#147;independent&#148; directors (as
defined by NASDAQ). The Nominating and Corporate Governance Committee has developed a policy
regarding the consideration of nominations for directors by shareholders. The policy is posted on
the Bank&#146;s website for review by shareholders. As outlined in its policy, the Nominating and
Corporate Governance Committee will consider nominations from shareholders, although it does not
actively solicit such nominations. Proposed nominations should be addressed to Chairman of the
Nominating and Corporate Governance Committee of Farmers &#038; Merchants Bancorp, Inc., 307 North
Defiance Street, Archbold, Ohio 43502. The identification and evaluation of all candidates for
nominee to the Board of Directors are undertaken on an ad hoc basis within the context of the
Corporation&#146;s strategic initiatives at the time a vacancy occurs on the Board. In evaluating
candidates, the committee considers a variety of factors, including the candidate&#146;s integrity,
independence, qualifications, skills, experience (including experiences in finance and banking),
familiarity with accounting rules and practices, and compatibility with existing members of the
Board. Other than the foregoing, there are no stated minimum criteria for nominees, although the
committee may consider such other factors as it may deem at the time to be in the best interest of
the Company and its shareholders, which factors may change from time to time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Nominating and Corporate Governance Committee also has been designated by the Corporation&#146;s
Corporate Governance Guidelines to receive, review and respond, as appropriate, to communications
concerning the Corporation from employees, officers, shareholders and other interested parties that
such parties want to address to non-management members of the Board of Directors. Shareholders
that want to direct such questions to the non-management members of the Board of Directors should
address them to the Chairman of the Nominating and Corporate Governance Committee, Farmers &#038;
Merchants Bancorp, Inc., 307 North Defiance Street, Archbold, Ohio 43502.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Corporation&#146;s Corporate Governance Guidelines also contain a provision stating that it is
expected that all members of the Board of Directors shall attend the Annual Meeting of
Shareholders. All of the members of the Board of Directors attended the 2008 Annual Meeting of
Shareholders.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Audit Committee Report</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Audit Committee of the Board of Directors submits the following report on the performance of
its responsibilities for the year 2008. The purposes and responsibilities of the committee are
elaborated in the committee charter. The Board of Directors has determined that Steven A.
Everhart, one of the members of the Audit Committee, is a &#147;financial expert&#148; as defined under the
regulations promulgated under the Sarbanes-Oxley Act discussed above. Mr.&nbsp;Everhart and all of the
other members of the Audit Committee have been determined by the Board of Directors to be
&#147;independent&#148; under the listing standards adopted by the NASDAQ Stock Market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Management of the Corporation has primary responsibility for the financial statements and the
overall reporting process, including the Corporation&#146;s system of internal controls. The
independent auditors are responsible for performing an independent audit of the Corporation&#146;s
consolidated financial statements in accordance with the standards of the Public Company Accounting
Oversight Board (PCAOB/United States). This audit serves as a basis for the auditors&#146; opinion in
the annual report to shareholders addressing whether the financial statements fairly present the
Corporation&#146;s financial position, results of operations and cash flows. The Audit Committee&#146;s
responsibility is to monitor and oversee these processes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In reviewing the independence of the Corporation&#146;s outside auditors, the committee has received
from Plante &#038; Moran, PLLC the written disclosures and a letter regarding relationships between
Plante &#038; Moran, PLLC and its related entities and the Corporation and its related entities and has
discussed with Plante &#038; Moran, PLLC its independence from the Corporation as required by the
applicable requirements of the PCAOB. As part of this review, the committee considered whether the
non-audit services provided by Plante &#038; Moran, PLLC to the company during 2008 were compatible with
maintaining Plante &#038; Moran, PLLC&#146;s independence.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In fulfilling its responsibilities relating to the Corporation&#146;s internal controls, accounting and
financial reporting policies and auditing practices, the committee has reviewed and discussed with
management and Plante &#038; Moran, PLLC the Corporation&#146;s audited financial statements for 2008. In
this connection, the committee has discussed with Plante &#038; Moran, PLLC its judgments about the
quality, in addition to the acceptability, of the Corporation&#146;s accounting principles as applied in
its financial reporting, as required by Statement on Auditing Standards No.&nbsp;114. Based on these
reviews and discussions, the committee recommended to the Board of Directors that the audited
financial statements be included in the Corporation&#146;s Annual Report on SEC Form 10-K for the year
ended December&nbsp;31, 2008, for filing with the Securities and Exchange Commission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Respectfully submitted by the members of the Audit Committee:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Steven A. Everhart, Chairman<BR>
Dexter L. Benecke<BR>
James C. Saneholtz<BR>
Merle J. Short
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Selection of Auditors/Principal Accounting Firm Fees</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The firm of Plante &#038; Moran, PLLC, (&#147;Plante &#038; Moran&#148;) independent registered public accounting firm,
has been retained by the Audit Committee on behalf of the Corporation as auditors of the
Corporation and its subsidiaries for the current year. Plante &#038; Moran was engaged to provide
independent audit services for the Corporation and its subsidiaries and to provide certain non-
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">audit services including advice on accounting, tax and reporting matters. The Board of Directors
expects that a representative of Plante &#038; Moran will be present at the annual meeting, will have
the opportunity to make a statement if they desire to do so, and will be available to respond to
appropriate questions. The Board of Directors has reappointed the firm of Plante &#038; Moran to be
auditors of the Corporation and its subsidiaries for the calendar year ending December&nbsp;31, 2009.
The Corporation has been advised by Plante &#038; Moran that no member of that firm has any financial
interest, either direct or indirect, in the Corporation or its subsidiaries, other than as a
depositor, and it has no connections with the Corporation or its subsidiaries in any capacity other
than that of public accountants.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Plante &#038; Moran billed the aggregate fees shown below for audit, audit related matters, tax and
other services rendered to the Corporation and its subsidiaries for the years 2007 and 2008. Audit
fees include fees billed in connection with the audit of the Corporation&#146;s annual financial
statements, fees billed for the review of the unaudited financial statements contained in the
Corporation&#146;s periodic reports on Form 10-Q, as filed with the Securities and Exchange Commission
and assistance in compliance with the internal control requirements mandated by Section&nbsp;404 of
Sarbanes-Oxley. Audit related fees include review accounting assistance in connection with the
acquisition of Knisely Bank and other accounting consultations. Tax consulting services included
assistance regarding franchise tax and federal income tax planning.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Plante &#038; Moran billed the following amounts to the Corporation and its subsidiaries during 2007 and
2008, respectively for audit, audit related fees, tax fees and all other fees:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Plante &#038; Moran - 2007</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Plante &#038; Moran - 2008</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Audit fees</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">187,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">180,600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD style="font-size: 10pt">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Audit Related fees</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">15,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">9,025</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD style="font-size: 10pt">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Tax fees</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">18,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">19,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD style="font-size: 10pt">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>All other fees</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD style="font-size: 10pt">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>TOTAL</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">221,900</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">208,625</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Audit Committee of the Corporation considered and concluded that the provision for non-audit
services by Plante &#038; Moran, PLLC and its affiliates was compatible with maintaining the independent
auditors&#146; independence. The Audit Committee of the Corporation will pre-approve all services to be
provided to the Corporation by Plante &#038; Moran. All the services noted above were approved by the
Audit Committee.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Compensation Discussion and Analysis</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><I>Introduction</I></U>. The Compensation Committee administers our executive compensation program.
The committee, which is composed entirely of independent directors, is responsible for reviewing
and determining executive officer compensation, for evaluating the President and Chief Executive
Officer, for overseeing the evaluation of all other officers and employees, for administering our
incentive compensation programs (including the equity incentive plan), for approving and overseeing
the administration of our employee benefits programs, for providing insight and guidance to
management with respect to employee compensation, and for reviewing and making recommendations to
the board with respect to director compensation. The President and Chief
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Executive Officer participates with respect to decisions concerning other executive
officers of the Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Compensation Committee operates under a charter adopted by the Board of Directors. The
Compensation Committee annually reviews the adequacy of its charter and recommends changes to the
Board for approval. The Compensation Committee meets at scheduled times during the year and also
acts upon occasion by written consent. The chair of the committee reports on committee activities
and makes committee recommendations at meetings of the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><I>Compensation Philosophy</I></U>. Our executive compensation programs seek to achieve and maintain
equity with respect to balancing the interests of shareholders and executive officers, while
supporting our need to attract and retain competent executive management. The management
Compensation Committee has developed an executive compensation policy, along with supporting
executive compensation plans and programs, which are intended to attain the following objectives:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B><FONT style="font-family: Wingdings">&#167;</FONT></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Support a pay-for-performance policy that rewards executive officers for corporate
performance.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B><FONT style="font-family: Wingdings">&#167;</FONT></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Motivate executive officers to achieve strategic business goals.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B><FONT style="font-family: Wingdings">&#167;</FONT></B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Provide competitive compensation opportunities critical to the Corporation&#146;s long-term
success.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The committee collects and analyzes comparative executive compensation information from relevant
peer groups, approves executive salary adjustments, recommends executive discretionary
incentive/bonus plans, and administers the Corporation long term incentive compensation plan.
Additionally, from time to time, the committee reviews other human resource issues, including
qualified and non-qualified benefits, management performance appraisals, and succession planning.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The committee uses comparisons of competitive executive pay practices taken from banking industry
compensation surveys and, from time-to-time, consultation with independent executive compensation
advisors. Peer groups and competitive compensation practices are determined using executive
compensation packages at bank holding companies and subsidiaries of comparable size to the
Corporation and its subsidiaries.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There are five components of the compensation program for all executive officers of the
Corporation&#146;s subsidiary, The Farmers &#038; Merchants State Bank (the &#147;Bank&#148;), a base salary component
and a discretionary cash incentive component, which is determined by the Board of Directors in
December of each year, a Restricted Stock Award determined by the Board of Directors at mid-year
and the profit sharing and health and welfare benefit plans participated in by all employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In making its decisions regarding annual salary adjustments, the committee reviews quantitative and
qualitative performance factors as part of an annual performance appraisal. These are established
for each executive position and the performance of the incumbent executive is evaluated annually
against these standards. This appraisal is then integrated with market-based adjustments to salary
ranges to determine if a base salary increase is merited.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The committee also administers the cash incentive program and the long term equity incentive
compensation plan of the Corporation. Cash and equity is at-risk compensation. Awards are
recommended by the committee to the Board of Directors when, in the judgment of committee members,
such awards are justified by the performance of executive officers in relation to the performance
of the Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The accounting and tax treatment of particular forms of compensation do not materially affect the
committee&#146;s compensation decisions. However, the committee evaluates the effect of such accounting
and tax treatment on an ongoing basis and will make appropriate modifications to its compensation
policies where appropriate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><I>Components of Compensation</I></U>. The elements of total compensation paid by the Corporation to
its senior officers, including the President and Chief Executive Officer (the &#147;CEO&#148;) and the other
executive officers identified in the Summary Compensation Table which appears following this
Compensation Discussion and Analysis (the CEO and the other executive officers identified in that
Table are sometimes referred to collectively as the &#147;Named Executive Officers&#148;), include the
following:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Base salary;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Awards under our cash-based incentive compensation program;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Awards under our long term equity incentive compensation plan;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Benefits under our Profit Sharing Plan; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Benefits under our health and welfare benefits plans.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Base Salary</U>. The base salaries of the Named Executive Officers are reviewed by the
committee annually as well as at the time of any promotion or significant change in job
responsibilities. The committee reviews peer group data to establish a market-competitive executive
base salary program, combined with a formal performance appraisal system that focuses on awards
that are integrated with strategic corporate objectives. Salary income for each Named Executive
Officer for calendar year 2008 is reported in Column 1 of the Summary Compensation Table, which
appears following this Compensation Discussion and Analysis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Incentive Cash Compensation</U>. The Corporation has established a cash bonus plan. The cash
incentive for executive officers under this plan is based upon two criteria. The first is return
on average assets (&#147;ROA&#148;) of the Bank. If the ROA of the Bank equals the average ROA of the Bank
for the prior 10&nbsp;years, the executive officer receives the full cash incentive amount established.
If the ROA is above 1.0%, but below such 10-year average, a prorated portion of the cash incentive
is paid. The same prorated portion continues if the ROA is above the 10-year average. No cash
incentive is paid if the Bank&#146;s ROA for the applicable year is less than 1.0% under the above
formula. For the executive officers, the cash incentive is paid before the end of the first
quarter of the year following the year in which it is earned. The ROA for the Bank on which the
incentive was based in 2008 was .82%, an amount lower than 1.0%. Thus no cash incentive was paid
under this computation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If the ROA is under 1.0% and remains positive, a cash bonus is paid to almost all employees
(excludes commission based employees and other employees paid for specific higher paid positions,
such as peak time.) The percentage of cash incentive is based on a lower percentage
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and adjusted downward by the percentage of ROA predicted to be achieved of the 10-year average ROA.
This component is paid out the first part of December of the current year (2008)&nbsp;and is based on
the employees pay received through the first eleven months of the year. The same percentage is
received by all participating in the program. In 2008, the predicted ROA was .88% and the 10-year
average was 1.09%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The second criterion used in determining the cash incentive to be paid to executive officers is
whether the earnings per share for the Corporation reaches a three year 6.0% annual compound growth
rate. If such growth rate is less than 6.0%, that component of the formula for executive officers
is adjusted downward. If the three year annual compound growth is under 3.0%, no incentive is
paid. For 2008, the growth rate was less than the base of 3.0% for purposes of determining the cash
incentive and therefore no incentive was paid under this component.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The method used to calculate the cash incentive is different for executive officers, officers that
are not executive officers and non-officer employees if the ROA reaches the base of 1.0% or above.
The methodology used for executive officers is described above. For other officers, their cash
incentive is based upon the Bank&#146;s ROA and whether they attain pre-established goals. For
non-officers, the cash incentive is based solely upon the Bank&#146;s ROA. If the ROA is below the base
of 1.0% and still positive, all employees are paid under the same calculation based solely on ROA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Incentive Stock Compensation</U>. The Bank uses the grant of stock awards under our long-term
equity incentive compensation plan as the primary vehicle for providing long-term incentive
compensation opportunities to its officers, including the Named Executive Officers. The Bank has
not adopted any specific policy regarding the amount or timing of any stock-based compensation
under the plan. The number of shares underlying the award granted to each Named Executive Officer
in 2007 and in 2008 is set forth in the Grants of Plan Based Awards Table and the dollar amount
recognized as compensation cost for financial statement reporting purposes for calendar year 2007
and 2008 with respect to each such award (determined in accordance with FAS 123R) is set forth in
column (e)&nbsp;of the Summary Compensation Table, each of which appears below. Information concerning
the number of stock awards held by each Named Executive Officer as of December&nbsp;31, 2008 is set
forth in the Outstanding Equity Awards at Fiscal Year-End Table, which appears below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Profit Sharing Plan</U>. The Bank has established a 401(k) profit sharing plan that allows
eligible employees to save at a minimum one percent of eligible compensation on a pre-tax basis,
subject to certain Internal Revenue Service limitations. The Bank will match 50% of employee 401(k)
contributions up to four percent of total eligible compensation. In addition the Bank may make a
discretionary contribution from time to time as is deemed advisable. A participant is 100% vested
in the participant&#146;s deferral contributions. A six-year vesting schedule applies to employer
discretionary contributions and employee matching contributions. In order to be eligible to
participate, the employee must be 21&nbsp;years of age, have completed six months of service, work 1,000
hours in the plan year and be employed on the last day of the year. Entry dates have been
established at January 1 and July 1 of each year. The plan calls for only lump-sum distributions
upon either termination of employment, retirement, death or disability. The Corporation&#146;s
contributions to the plan made on behalf of the Named Executive Officers is included in column (g)
as &#147;all other compensation&#148; in the summary compensation table.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Health and Welfare Benefits</U>. The Corporation provides healthcare, life and disability
insurance and other employee benefits programs to its employees, including its senior officers. The
committee is responsible for overseeing the administration of these programs and believes that its
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">employee benefits programs should be comparable to those maintained by other members of the
relevant peer groups so as to assure that the Corporation is able to maintain a competitive
position in terms of attracting and retaining officers and other employees. Except for our
Executive Survivor Income Agreement, our employee benefits plans are provided on a
non-discriminatory basis to all employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Corporation has entered into an Executive Survivor Income Agreement with some of the Named
Executive Officers that provides certain death benefits to the executive&#146;s beneficiaries upon his
or her death. The agreements provide a pre- and post-retirement death benefit payable to the
beneficiaries of the executive in the event of the executive&#146;s death. The Corporation has purchased
life insurance policies on the lives of all participants covered by these agreements in amounts
sufficient to provide the sums necessary to pay the beneficiaries. The actual gross death benefit
amounts payable under this plan are disclosed under Payments and Benefits in Connection with
Termination or Change-in-Control.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>2008 Executive Officer Compensation</U>. For 2008 the executive officers named in the Summary
Compensation Table received salaries that were intended to maintain their compensation at a
competitive level.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Adjustments in 2008 base salary were based upon each Named Executive Officer&#146;s annual performance
review, an annual review of peer compensation, and the overall performance of the company. These
adjustments are consistent with the company&#146;s salary budget which is approved by the compensation
committee and becomes part of the overall budget approved annually by the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Corporation provides a reasonable level of personal benefits, and perquisites to one or more
named executive officers to support the business interests of the bank, provide competitive
compensation, and to recognize the substantial commitment both professionally and personally
expected from executive officers. The aggregate value of perquisites and personal benefits, as
defined under SEC rules, provided to each named executive officer is less than the reporting
threshold value of $10,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As part of its compensation program the Corporation has entered into agreements with some of the
Named Executive Officers pursuant to which they will be entitled to receive severance benefits upon
the occurrence of certain enumerated events following a change in control. The events that trigger
payment are generally those related to termination of employment without cause or detrimental
changes in the executive&#146;s terms and conditions of employment. See Employment Contracts and
Payments Upon Termination or &#147;Change in Control&#148; below for a more detailed description of these
events. The Corporation believes that this structure will help: (i)&nbsp;assure the executives&#146; full
attention and dedication to the company, free from distractions caused by personal uncertainties
and risks related to a pending or threatened change in control, (ii)&nbsp;assure the executives&#146;
objectivity for shareholders&#146; interests, (iii)&nbsp;assure the executives of fair treatment in case of
involuntary termination following a change in control, and (iv)&nbsp;attract and retain key talent
during uncertain times.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Summary Compensation Table</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Option</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>All Other</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Salary</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Bonus</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Awards</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Awards</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Compensation</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name and Principal Position</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Year</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(2)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Paul S. Siebenmorgen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">282,842</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,266</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">336,498</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">President and Chief Executive Officer (PEO)<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">223,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,845</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,142</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,361</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">295,548</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">214,646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">74,592</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">313,283</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Barbara J. Britenriker</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">154,923</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,927</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189,912</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice President (PFO)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150,336</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,726</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,519</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">193,790</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144,731</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,258</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">200,007</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Todd A. Graham</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">114,327</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,300</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">214</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">124,670</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice President</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Edward A. Leininger</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">151,356</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,745</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,404</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">187,255</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice President</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">145,974</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,545</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,685</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189,768</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">141,724</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,043</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,258</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,907</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">198,932</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rex D. Rice</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">145,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,956</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">177,764</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice President</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">142,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,080</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,545</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,316</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">184,633</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">140,654</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,763</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,258</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,892</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">196,567</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Summary Compensation Table Footnotes:
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Reflects the dollar amount recognized for financial statement reporting purposes with
respect to the fiscal year in accordance with FAS 123R.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Includes contributions to the Corporation&#146;s defined contribution profit sharing and 401K
plan and certain life insurance premiums paid by the Corporation for the benefit of the Named
Executive Officer.</TD>
</TR>

</TABLE>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Name</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Retirement Contributions ($)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Life Insurance Premiums ($)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Total ($)</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Paul S. Siebenmorgen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,510</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">856</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,366</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Barbara J. Britenriker</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,776</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">536</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,312</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Todd A. Graham</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">214</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">214</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Edward A. Leininger</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,879</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">524</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,403</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rex D. Rice</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">506</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,956</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>Fees paid to Mr.&nbsp;Siebenmorgen as a Director of the Corporation and the Bank (which totaled
$11,400 in 2008) are included in the amounts listed above in the salary column.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><I>Narrative Explanation to the Summary Compensation table</I></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Named Executive Officers participate in an annual incentive plan that provides for awards tied to
the profit performance of the Corporation during the fiscal year. The amounts set forth in the
bonus column represent the awards made under the terms of the Plan for 2008 which were paid to the
respective Named Executive Officer during December of 2008. The awards made under the Plan for 2007
were paid out to the officers in the first quarter of 2008. Refer to the compensation discussion
and analysis for a complete explanation of the Plan.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


 <DIV align="left" style="font-size: 10pt; margin-top: 6pt">The stock awards reported in the Summary Compensation Table represent the dollar amount recognized
for financial statement reporting purposes under FAS 123R of restricted stock awards granted to
Named Executive Officers. The grant of restricted stock awards is made on an entirely
discretionary basis by the board of directors acting upon a recommendation of the compensation
committee. The vesting of all of the awards of restricted stock made to date under the terms of
the long term equity incentive plan occurs three years following the grant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Named Executive Officers are participants in the Farmers and Merchants Profit Sharing and
401(k) plan. The employer contribution amounts for the fiscal year period for each Named Executive
Officer included in the all other compensation column of the Summary Compensation Table. Employer
contributions under the Plan are structured as a percent of base salary up to statutory
compensation limits. Employer contributions for the fiscal-year include Safe-Harbor contributions,
matching contributions, and discretionary contributions, applied on a non-discriminatory basis for
all Plan participants.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Outstanding Equity Awards at Fiscal Year-End Table</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Market Value of Shares</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>or Units</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>or Units</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>of Stock that have</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>of Stock that have</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>not Vested</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>not Vested</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(2)</B></SUP></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name and Principal Position</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(#)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Paul S. Siebenmorgen, President and CEO (PEO)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Barbara J. Britenriker, Executive Vice President (PFO)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,240</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,800</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Todd A. Graham, Executive Vice President</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Edward A. Leininger, Executive Vice President</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rex D. Rice, Executive Vice President</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,060</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,200</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Vesting dates for reported stock awards are as follows:</TD>
</TR>

</TABLE>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Number of Shares Vesting</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Number of Shares Vesting</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Number of Shares Vesting</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Name</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">on 8/16/09</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">on 8/17/10</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">on 8/15/11</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Paul S. Siebenmorgen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Barbara J. Britenriker</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">290</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Edward A. Leininger</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">290</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Todd A. Graham</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rex D. Rice</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">290</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">370</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Market value based on market price on December&nbsp;31, 2008, of $20.00.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U><B>Grants of Plan-Based Awards</B></U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>All Other Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Awards:</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Grant Date Fair</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Value of Stock</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Shares of Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>and Option</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Grant</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>or Units</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Awards</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name and Principal Position</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Year</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(#)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Paul S. Siebenmorgen,
President and CEO (PEO)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8/29/2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Barbara J. Britenriker,
EVP (PFO)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8/29/2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Todd A. Graham, EVP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8/29/2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,300</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Edward A. Leininger, EVP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8/29/2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rex D. Rice, EVP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8/29/2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,600</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><I>Narrative Explanation to the Grants of Plan-Based Awards table</I></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The above amounts represent information regarding restricted stock awards made to each of the
respective Named Executive Officers during 2008 under the terms of the Corporation&#146;s Long Term
Incentive Compensation Plan. The awards vest in full at the expiration of three years of service of
the respective officer. The vesting of the awards is accelerated in the event of the death or
disability of the officer or upon a change in control.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Post-Employment Compensation/Change of Control Agreements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Corporation entered into Change in Control Severance Compensation Agreements on November&nbsp;27,
2007 with its executive officers, Mr.&nbsp;Siebenmorgen, Mr.&nbsp;Leininger, Ms.&nbsp;Britenriker and Mr.&nbsp;Rice.
These Agreements, which superseded similar agreements entered into in 2005, provide for payment of
an amount equal to one year&#146;s compensation to the executives in the event that their employment is
terminated in connection with a &#147;change in control&#148; as defined in the Agreements. No payments will
be made in such event if the executive is terminated &#147;for cause.&#148; If a change in control had
occurred as of December&nbsp;31, 2008, this would have resulted in payments to the executives as shown
on the following table. In addition to the payment equal to one times their salary, the Agreements
also provide for the continuation of health insurance and other benefits, which amounts also are
included in the table. Finally, included in the table are amounts that would be payable to the
executive or their estate pursuant to individual executive survivor income agreements (&#147;ESIA&#148;).
See the section of the Compensation Discussion and Analysis captioned &#147;Components of Compensation
&#151; Health and Welfare Benefits&#148; for additional information regarding the ESIA.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 0px solid #000000"><B>Amount Paid on Change in Control</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(1 x Salary and</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Continuation of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Payment on Death or</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name of Executive</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Bonus)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Perquisites</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Disability Under ESIAs</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Paul S. Siebenmorgen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">341,097</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">11,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">352,557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">250,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Barbara Britenriker</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">192,057</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">14,401</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">206,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">200,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Edward A. Leininger</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">188,019</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">11,475</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">199,494</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">200,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rex D. Rice</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">182,169</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">13,930</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">196,099</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">200,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Compensation Committee Report on Executive Compensation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Compensation Committee is responsible for discharging the responsibilities of the board with
respect to the compensation of executive officers. The Compensation Committee sets performance
goals and objectives for the chief executive officer and the other executive officers, evaluates
their performance with respect to those goals and sets their compensation based upon the evaluation
of their performance. In evaluating executive officer pay, the Compensation Committee may retain
the services of a compensation consultant and consider recommendations from the chief executive
officer with respect to goals and compensation of the other executive officers. The compensation
committee assesses the information it receives in accordance with its business judgment. The
compensation committee also periodically reviews director compensation. All decisions with respect
to executive and director compensation are approved by the compensation committee and recommended
to the full board for ratification.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis (the
&#147;CD&#038;A&#148;) for the year ended December&nbsp;31, 2008 with management. In reliance on the reviews and
discussions referred to above, the Compensation Committee recommended to the Board, and the Board
has approved, that the CD&#038;A be included in the proxy statement for the year ended December&nbsp;31, 2008
for filing with the SEC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">By the Compensation Committee of the Board of Directors:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Jack C. Johnson, Chairman<BR>
Dexter L. Benecke<BR>
Steven A. Everhart<BR>
Kevin J. Sauder<BR>
Steven J. Wyse
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->20<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Director Compensation</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Fees Earned or Paid in Cash</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dexter L. Benecke</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">18,950</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Steven A. Everhart</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">21,600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Robert G. Frey</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">15,900</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jack C. Johnson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">16,100</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Marcia S. Latta<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">-0-</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Steven J. Planson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">14,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Anthony J. Rupp</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">16,950</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">David P. Rupp, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">16,400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">James C. Saneholtz</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">19,050</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kevin J. Sauder</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">13,400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Merle J. Short</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">19,600</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Steven J. Wyse</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">13,400</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt"><SUP style="font-size: 85%; vertical-align: text-top">(1) </SUP>Ms.&nbsp;Latta was appointed to the Board of Directors of the Company and The Farmers &#038;
Merchants State Bank on January&nbsp;16, 2009, and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;therefore did not receive any compensation from the
Company in 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Director Compensation Discussion</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We review the level of compensation of our directors on an annual basis. To determine the
appropriateness of the current level of compensation for our directors, we have historically
obtained data from a number of different sources including publicly available data describing
director compensation in peer companies and survey data collected by members of the Compensation
Committee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Cash compensation is paid to directors in the form of retainers and meeting fees. The standard
monthly retainer for board service is $500, with the Chairman receiving a monthly retainer of $800.
A $450 fee is paid to a director for each Bank board meeting attended. Fees ranging from $250 to
$400 are paid for each committee meeting attended depending upon the demands of the committee.
Employee directors are not paid for committee meetings attended.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Director Independence and Related Party Transactions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Director Independence</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Governance Committee of the Board of Directors of the Corporation undertakes a review of
director independence annually and reports on its findings to the full board in connection with its
recommendation of nominees for election to the Board of Directors. Based upon this review, the
Board of Directors has determined that all directors have met the independence standards of Rule
4200(a)(15) of the NASDAQ Marketplace Rules, with the exception of Mr.&nbsp;Siebenmorgen, the current
President and Chief Executive Officer, and David P. Rupp, Jr.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In making its determination regarding the independence of the directors and nominees for director,
the Governance Committee reviewed and the board considered the following specific relationship.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->21<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">David P. Rupp Jr. is an attorney with membership in the law firm of Plassman, Rupp, Short, &#038; Hagans
of Archbold, Ohio. The law firm has been retained by the Corporation and its subsidiaries during
the past twenty years and is expected to be retained currently.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Transactions With Related Parties</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Certain directors, nominees, and executive officers or their associates were customers of and had
transactions with the Corporation or its subsidiaries during 2008. Transactions that involved loans
or commitments by the Bank were made in the ordinary course of business and on substantially the
same terms, including interest rates and collateral, as those prevailing at the time for comparable
transactions with unrelated persons and did not involve more than the normal risk of collectability
or present other unfavorable features. Except for the specific transactions described above no
director, executive officer or beneficial owner of more than five percent of the Corporation&#146;s
outstanding voting securities (or any member of their immediate families) engaged in any
transaction (other than such a loan transaction as described) with the Corporation during 2008, or
proposes to engage in any transaction with the Corporation, in which the amount involved exceeds
$120,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Review, Approval or Ratification of Transactions with Related Persons</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Corporation&#146;s Code of Ethics and Business Conduct requires that all related party transactions
be pre-approved by the Corporation&#146;s Audit Committee. Excepted from that pre-approval requirement
are routine banking transactions, including deposit and loan transactions, between our subsidiaries
and any related party that are made in compliance with, and subject to the approvals required by,
all federal and state banking regulations. In making a determination to approve a related party
transaction the Audit Committee will take into account, among other factors it deems appropriate,
whether the proposed transaction is on terms no less favorable than those generally available to an
unaffiliated third-party under the same or similar circumstances and the extent of the related
party&#146;s interest in the proposed transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Compensation Committee Interlocks and Insider Participation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In 2008 the Compensation Committee members were Jack C. Johnson, Chairman, Dexter L. Benecke,
Steven A. Everhart , Kevin J. Sauder and Steven J. Wyse. None of the members of the Board&#146;s
Compensation Committee has had any relationship with us requiring disclosure under Item&nbsp;404 of
Regulation&nbsp;S-K under the Securities and Exchange Act of 1934. In addition, no executive officer of
the Corporation or the Bank serves or has served as a member of the Compensation Committee or Board
of Directors of any other company (other than the Bank) which employs any member of the
Corporation&#146;s Board of Directors.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Section&nbsp;16(a) Beneficial Ownership Reporting Compliance</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Section&nbsp;16(a) of the Securities Exchange Act of 1934 requires the Corporation&#146;s officers and
directors, and persons who own more than ten percent of a registered class of the Corporation&#146;s
equity securities, to file reports of ownership and changes in ownership with the Securities and
Exchange Commission. Officers, directors and greater than ten percent shareholders are required by
SEC regulations to furnish the Corporation with copies of all Section 16(a) forms they file.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->22<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Based solely on review of the copies of such forms furnished to the Corporation, the Corporation
believes that during 2008 all Section 16(a) filing requirements applicable to its officers and
directors were met.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Proposals of Shareholders for Next Annual Meeting</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Proposals of shareholders intended to be presented at the 2010 Annual Shareholders&#146; Meeting must be
received at the Corporation&#146;s offices at 307 North Defiance Street, Archbold, Ohio 43502, prior to
November&nbsp;10, 2009 for inclusion in the proxy statement and form of proxy. Proposals from
shareholders for next year&#146;s annual meeting received by the Corporation after January&nbsp;24, 2010 will
be considered untimely. With respect to such proposals, the Corporation will vote all shares for
which it has received proxies in the interest of the Company as determined in the sole discretion
of its Board of Directors. The Corporation also retains its authority to discretionarily vote
proxies with respect to shareholder proposals received by the Company after November&nbsp;10, 2009 but
prior to January&nbsp;24, 2010, unless the proposing shareholder takes the necessary steps outlined in
Rule&nbsp;14a-4(c)(2) under the Securities Exchange Act of 1934 to ensure the proper delivery of proxy
materials related to the proposal.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Other Matters</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board of Directors does not know of any other matters that are likely to be brought before the
meeting. However, in the event that any other matters properly come before the meeting, the
persons named in the enclosed proxy will vote said proxy in accordance with their judgment on such
matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>A copy of the Corporation&#146;s Annual Report to Shareholders for the year ended December&nbsp;31, 2008 is
enclosed. A copy of the Corporation&#146;s Annual Report on </B><B>Form 10-K</B><B> for 2008, with exhibits, as filed
with the Securities and Exchange Commission (&#147;2008 10-K&#148;), is available to any shareholder free of
charge. Shareholders desiring a copy of the 2008 10-K should address written requests to Ms.
Barbara J. Britenriker, Chief Financial Officer of Farmers &#038; Merchants Bancorp, Inc., 307 North
Defiance Street, Archbold, Ohio 43502, and are asked to mark &#147;2008 10-K Request&#148; on the outside of
the envelope containing the request.</B>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By Order of the Board of Directors</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>/s/ Lydia A. Huber</I></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Archbold, Ohio</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">March&nbsp;10, 2009
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Lydia A. Huber, Secretary</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->23<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><FONT style="font-size:14pt"><B>PROXY</B></FONT></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 3pt"><FONT style="font-size:18pt"><B>Farmers &#038; Merchants Bancorp, Inc.</B></FONT></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 3pt"><FONT style="font-size:12pt"><B>ANNUAL
MEETING OF SHAREHOLDERS</B></font></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 0pt"><FONT style="font-size:12pt"><B>April&nbsp;14, 2009<BR>
7:00&nbsp;p.m.<BR>
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS</B></FONT>
</DIV>


<DIV align="justify" style="margin-top: 6pt; margin-left: 2%; margin-right:2%; font-size: 9pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned hereby appoints David P. Rupp, Jr., Paul S. Siebenmorgen, Dexter L. Benecke
and Merle J. Short, or any one or more of them, with full power of substitution, for me and in
my name, place and stead, to vote all the common stock of Farmers &#038; Merchants Bancorp, Inc.
registered in the name of the undersigned as of February&nbsp;26, 2009, with all powers which the
undersigned would possess if personally present at the Annual Meeting of Shareholders of Farmers
&#038; Merchants Bancorp, Inc. to be held in the Founders Hall at Sauder Village, State Route 2,
Archbold, Ohio, on Tuesday, April&nbsp;14, 2009, at 7:00 P.M., (local time), and at any adjournments
thereof, and to vote as noted below. By appointing the above named persons as proxy for me, I
give them the right to vote cumulatively in the election of directors and to cast the number of
votes among the nominees noted below in such proportion as they shall deem appropriate, in their
sole discretion, unless I have withheld my vote for any nominee, in which case votes shall not
be cast for that person. This proxy revokes all prior proxies given by the undersigned.
</DIV>


<DIV align="justify" style="margin-top: 6pt; margin-left: 2%; margin-right:2%; font-size: 9pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Telephone and Internet Voting Instructions. You can vote by telephone OR Internet 24 Hours
a day 7&nbsp;days a week! </B>Instead of mailing your proxy, you may choose one of the two voting methods
outlined below to vote your proxy.Your vote is valid when made by phone or through the internet
under the Ohio General Corporation Law applicable to the Corporation.
</div>

<DIV align="center" style="font-size: 11pt; margin-top: 20pt"><B>PLEASE COMPLETE, DATE, SIGN, AND MAIL THIS INSTRUCTION CARD PROMPTLY IN THE<br> ENCLOSED
POSTAGE-PAID ENVELOPE OR PROVIDE YOUR INSTRUCTIONS TO VOTE VIA THE</B><BR>
<B>INTERNET OR BY TELEPHONE.</B><br><br><br>
<FONT style="font-size:10pt"><B><I>(Continued, and to be marked, dated and signed, on the other side)</I></B></FONT>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">
<FONT style="font-size: 18pt" face="wingdings">&#234;</FONT>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT style="font-size:8pt"><B>FOLD AND DETACH HERE</B></FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="font-size: 18pt" face="wingdings">&#234;</FONT><BR>
<DIV style="width: 100%; border-bottom: 1px DASHED #000000; font-size: 1px;MARGIN-TOP: 2PT">&nbsp;</DIV>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>FARMERS
&#038; MERCHANTS BANCORP, INC. &#150; ANNUAL MEETING, APRIL 14, 2009</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><FONT style="font-size:18pt"><B>YOUR VOTE IS IMPORTANT!</B></FONT>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 10pt"><B>Annual Meeting Materials are available on-line at:</b>
</div>
<DIV align="center" style="font-size: 14pt; margin-top: 6pt"><b>http://www.fm-bank.com/proxy(5755)fm2009/fm_info.cfm</B><BR>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 20pt"><B>You can vote in one of three ways:</B>
</DIV>


<DIV align="right" style="margin-top: 10pt">
<TABLE width="90%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Call <B>Toll Free 1-866-598-8811 </B>on a Touch-Tone Phone. There is <B>NO CHARGE </B>to you for this call.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 10pt"><u><B><I>or</I></B></u>
</DIV>


<DIV align="right" style="margin-top: 10pt">
<TABLE width="90%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Via the Internet at <B>https://www.proxyvotenow.com/fmao</B> and follow the instructions.
</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 10pt"><u><B><I>or</I></B></u>
</DIV>


<DIV align="right" style="margin-top: 10pt">
<TABLE width="90%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mark, sign and date your proxy card and return it promptly in the enclosed envelope.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 10pt"><B>PLEASE SEE REVERSE SIDE FOR VOTING INSTRUCTIONS</B>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><b>5755  </b></div>





<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">




<DIV align="center">
<TABLE style="font-size: 6pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">

    <TD width="5%"><IMG src="k47512dk4751201.gif" alt="(topleftcorner)"></TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
    <TD width="42%" align="right"><IMG src="k47512dk4751202.gif" alt="(toprightcorner)"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="padding: 2px">

<td valign="top" rowspan="2"><FONT face="Wingdings" style="font-size: 20pt">&#120;</FONT></td>
<TD align="left" valign="top" nowrap rowspan="2"><B>PLEASE MARK VOTES<br> AS IN THIS EXAMPLE</B></TD>
    <TD valign="top" align="center">
<DIV style="border: 0px solid; padding: 3px; margin-left: 2% ; margin-right:2%; font-size: 10pt"><B>REVOCABLE PROXY</B><BR>
<B>FARMERS &#038; MERCHANTS BANCORP, INC.</B>
</DIV></TD>
    <TD align="center" style="font-size: 10pt"><B>Annual Meeting of Shareholders<br>April 14, 2009</b></TD>
</TR>

<TR valign="bottom">




    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center">
<TABLE style="font-size: 7pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom" style="font-size:1px">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #ffffff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR><B></B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD  align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>For</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Withhold<BR>
ALL</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>For All<br>Except</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="9" nowrap><u><b>THE BOARD OF DIRECTORS RECOMMENDS A VOTE &#147;FOR&#148; EACH OF THE NOMINEES.</B></U>
</TD>

<!-- Begin Table Head -->
<TR valign="bottom">
    <TD valign="top"><b>1.</B></td>
    <TD>&nbsp;</TD>
    <TD  align="left" valign="top"><B>Election of Directors - </B>To elect the following thirteen (13) nominees to the
Board of Directors to serve until the Annual Meeting of Shareholders in 2009:<br><BR></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT face="Wingdings" style="font-size: 24pt">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT face="Wingdings" style="font-size: 24pt">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT face="Wingdings" style="font-size: 24pt">&#111;</FONT></TD>
    <TD valign="top" align="center"><B>&nbsp; </B></TD>
    <TD colspan="9"  valign="top" align="left"><DIV style="margin-left:15px; margin-top: -2px; text-indent:-15px"><B>2.</B> &nbsp;<B>Other Business</b> - To transact any other business which may properly come before
the meeting or any adjournment of it.</div><BR style="font-size: 6pt">
<b style="font-size: 7pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This proxy is solicited by management and confers authority to vote
&#147;FOR&#148; the nominees noted above unless otherwise marked. If any other business is presented at the meeting, this proxy shall be voted
in accordance with the recommendations of management. All shares represented by properly executed proxies will be voted as directed.</b>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>

</TR>
</TR>
</TABLE>
</DIV>



<DIV align="center">
<TABLE style="font-size: 6pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom" style="background: #fffffff">

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" nowrap><B><B>Nominees: </b><BR>
(01) &nbsp;Dexter L. Benecke<br>
(02) &nbsp;Steven A. Everhart<br>
(03) &nbsp;Robert G. Frey<br>
(04) &nbsp;Jack C. Johnson
<br>(05) &nbsp;Marcia S. Latta</b></TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" nowrap><B><BR>
(06) &nbsp;Steven J. Planson
<br>(07) &nbsp;Anthony J. Rupp<br>
(08) &nbsp;David P. Rupp, Jr.<br>
(09) &nbsp;James C. Saneholtz<br>
(10) &nbsp;Kevin J. Sauder</b></TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" nowrap><B><BR>
(11) &nbsp;Merle J. Short<br>
(12) &nbsp;Paul S. Siebenmorgen<br>
(13) &nbsp;Steven J. Wyse</b></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>


    <TD valign="top" align="center"><B>&nbsp;</B></TD>
    <TD colspan="9" valign="top" align="left" style="font-size: 7pt"><BR style="font-size: 5pt"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Board of Directors recommends a vote &#147;FOR&#148; the directors nominated by the Board of Directors.</B> This proxy may be revoked prior
to its exercise by either written notice or personally at the meeting or by a subsequently dated proxy.
</div></TD>


<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" colspan="9" style="border-bottom: 0px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>

    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>

</TR>
<TR valign="bottom" style="background: #ffffff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left"><B>
(To withhold authority to vote for a specific nominee(s) write his or her name(s) on the line below)
</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" valign="top" align="left"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(If signed in a fiduciary capacity, please give full fiduciary title. If signed by a corporation, sign the full corporate name followed by the signature of the duly authorized officer. If signed by an agent, attach the instrument authorizing the agent to execute the proxy or a photocopy thereof.)
</div></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="7" style="border-bottom: 1px solid #000000"><div style="margin-left: 4%">&nbsp;</DIV></TD>

    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>

</TR>


<TR valign="bottom">
    <TD colspan="0" valign="top" align="left" style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD align="center" style="font-size: 8pt" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD colspan="8" nowrap valign="middle" align="left" style="font-size: 10pt"><DIV style="margin-left:0px; text-indent:-0px">
<b>Mark here the number of attendees for the <br>
Shareholders Dinner at Sauder Village at 6:00 p.m.</b>
</div>
</TD>



    <TD align="right" valign="top"><FONT face="Wingdings" style="font-size: 24pt">&#111;</FONT></TD>

</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD colspan="8" nowrap valign="middle" align="left" style="font-size: 8pt"><DIV style="margin-left:0px; text-indent:0px"><b>Mark here for address
change and note change</b>
</div>
</TD>
    <TD align="right" valign="top"><FONT face="Wingdings" style="font-size: 24pt">&#111;</FONT></TD>

</TR>

<TR>
    <TD style="font-size: 10pt">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 10pt"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" valign="middle" align="left" style="border-top: 1px solid #000000; border-bottom: 1px solid #000000"><BR><BR style="font-size: 8pt"></TD>


</TR>
<TR valign="bottom" style="background: #ffffff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left"  valign="top" colspan="3" style="font-size: 9pt; border-right: 1px solid #000000">Please be sure to date and sign<br>
this proxy card in the box below.
</TD>

    <TD align="center" valign="top" style="font-size: 6pt; border-top: 1px solid #000000">&nbsp;</TD>

    <TD align="left" valign="top" style="border-top: 1px solid #000000 ; border-right: 1px solid #000000">&nbsp;&nbsp;&nbsp;Date</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" valign="middle" align="left" style="border-bottom: 1px solid #000000"><BR>&nbsp;</TD>

</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" colspan="3" style="font-size: 8pt ;border-top: 1px solid #000000; border-bottom: 1px solid #000000; border-left: 1px solid #000000">
<FONT style="margin-left: 35px">Sign above</FONT></TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000; border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000;border-right: 1px solid #000000; border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 0px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"  COLSPAN="11" STYLE="FONT-SIZE: 7PT"><BR><div align="center">
<i>Note: Please sign exactly  as your name appears on this Proxy.<br>
If signing for estates, trusts, corporations or partnerships, title or<br>
capacity should be stated. If shares are held jointly, each holder should sign.</i>
</div>
</TD>

</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>

</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align=center>
<TABLE style="FONT-SIZE: 8pt" cellSpacing=0 cellPadding=0 width="100%" border="0"><!-- Begin Table Head -->

  <TR style="FONT-SIZE: 1pX" valign=bottom>
    <TD width="1%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="17%">&nbsp;</TD>
    <TD width=1>&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD></TR><!-- End Table Head --><!-- Begin Table Body -->
  <TR valign=bottom>
    <TD><IMG src="k47512dk4751203.gif" alt="(bottomleftcorner)"></TD>
    <TD COLSPAN="11" VALIGN="MIDDLE" align="center"><DIV STYLE="BORDER: 1PX SOLID #000000; PADDING: 3PX"><B>IF YOU WISH TO PROVIDE YOUR INSTRUCTIONS TO VOTE BY TELEPHONE OR INTERNET, PLEASE READ THE INSTRUCTIONS BELOW</B></DIV></TD>
    <TD><IMG src="k47512dk4751204.gif" alt="(bottomrightcorner)"></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><DIV style="width: 100%; border-bottom: 1px DASHED #000000; font-size: 1px">&nbsp;</DIV>
</DIV>
<DIV align="center" style="margin-top: -15px">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="6" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom" style="font-size: 1px">
    <TD width="20%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="middle" rowspan="2" align="right"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="font-size: 18pt" face="wingdings">&#233;</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-size:8pt"><B>FOLD AND DETACH HERE IF YOU ARE VOTING BY MAIL</B></FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="middle" rowspan="2"><FONT style="font-size: 18pt" face="wingdings">&#233;</FONT>
</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-size:16pt"><B>PROXY VOTING INSTRUCTIONS</B></FONT></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 4pt; margin-left: 2%">Shareholders of record have three ways to vote:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt; margin-left: 2%">1. By Mail; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt; margin-left: 2%">2. By Telephone (using a Touch-Tone Phone); or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt; margin-left: 2%">3. By Internet.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 0pt; margin-left: 2%">
A telephone or Internet vote authorizes the named proxies to vote your shares in the same manner as
if you marked, signed, dated and returned this proxy. Please note telephone and Internet votes must
be cast prior to 3:00 a.m., April&nbsp;14, 2009. It is not necessary to return this proxy if you
vote by telephone or Internet.
</DIV>

<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="98%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD  colspan="0" align="center" valign="top" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
    <TD align="center"><DIV style="margin-left:45px; text-indent:-15px">&nbsp;</DIV></TD>

    <TD  colspan="0" align="center" valign="top" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>

</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD style="border-right: 1px solid #000000; border-left: 1px solid #000000">&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>

    <TD style="border-right: 1px solid #000000; border-left: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" style="border-top: 0px solid #000000; border-right: 1px solid #000000; border-left: 1px solid #000000"><FONT style="font-size:16pt"><B>Vote by Telephone</B></FONT><br><br></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 0px solid #000000; border-right: 1px solid #000000; border-left: 1px solid #000000"><FONT style="font-size:16pt"><B>Vote by Internet</B></FONT></TD></TR>
<TR valign="bottom">
    <TD align="center" valign="top" style="border-top: 0px solid #000000; border-right: 1px solid #000000; border-left: 1px solid #000000">Call Toll-Free on a Touch-Tone Phone anytime prior to<br>
3:00 a.m., April&nbsp;14, 2009:<br>
<FONT style="font-size:16pt"><B>1-866-598-8811</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-right: 1px solid #000000; border-left: 1px solid #000000">anytime prior to<br>3:00 a.m., April 14, 2009, go to
<br><FONT style="font-size:13pt"><u><B>https://www.proxyvotenow.com/fmao</B></u></FONT>
</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top" style="border-right: 1px solid #000000; border-left: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-right: 1px solid #000000; border-left: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD  colspan="0" align="center" valign="top" style="border-top: 1px solid #000000; border-right: 0px solid #000000 ">&nbsp;</TD>
    <TD align="center"><DIV style="margin-left:45px; text-indent:-15px">&nbsp;</DIV></TD>

    <TD  colspan="0" align="center" valign="top" style="border-top: 1px solid #000000; border-right: 0px solid #000000 ">&nbsp;</TD>

</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">Please note that the last vote received, whether by telephone, Internet or by mail, will be the vote counted.
</DIV>

<DIV align="right">
<TABLE style="font-size: 11pt" cellspacing="0" border="0" cellpadding="0" width="98%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="98%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"  nowrap style="border: 1px solid #000000; font-size: 12pt"><B>ON-LINE ANNUAL MEETING MATERIALS:</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<tr>
    <TD colspan="3" nowrap align="center"><BR style="font-size: 6pt"><B>http://www.fm-bank.com/proxy(5755)fm2009/fm_info.cfm</B></TD>
</tr>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="right">
<TABLE style="font-size: 16pt" cellspacing="0" border="0" cellpadding="0" width="98%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%"></TD>
    <TD width="5%"></TD>
    <TD width="40%"></TD>
    <TD width="5%"></TD>
    <TD width="30%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap><B>Your vote is important!</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><DIV style="border: 3px double #000000">&nbsp;</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center">
<TABLE style="font-size: 6pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom" style="font-size: 20pt">
    <TD width="4%"><IMG src="k47512dk4751201.gif" alt="(topleftcorner)"></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="25%" align="right"><IMG src="k47512dk4751202.gif" alt="(toprightcorner)"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

    <TD valign="top" style="font-size: 25pt"><FONT face="Wingdings" style="font-size: 20pt">&#120;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>PLEASE MARK VOTES<br>
AS IN THIS EXAMPLE</B>
</TD>
    <TD>&nbsp;</TD>

<TD align="center" valign="top"><div style="font-size: 12pt"><B>REVOCABLE
PROXY</b></div>
<div style="font-size: 11pt"><b>FARMERS &#38; MERCHANTS BANCORP, INC</B></div>
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" align="right" style="font-size: 25pt"><FONT face="Wingdings 2">&nbsp;</FONT><DIV style="margin-left:0px; text-indent:-0px">
</div>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>

<DIV style="position: relative; float: left; width: 48%">

<DIV align="center" style="font-size: 8pt; margin-top: 1pt"><B>ANNUAL MEETING OF SHAREHOLDERS<br>
April 14, 2009, 7:00 p.m.</b>
</DIV>
<DIV align="left" style="font-size: 8pt; margin-top: 1pt"><b><font style="white-space: nowrap">THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS</FONT>
</b>
</DIV>


<DIV align="justify" style="font-size: 8pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The undersigned hereby appoints David P. Rupp, Jr., Paul S. Siebenmorgen, Dexter L.
Benecke and Merle J. Short, or any one or more of them, with full power of substitution, for me and in my name,
place and stead, to vote all the common stock of Farmers &#38; Merchants Bancorp, Inc. registered in the name
of the undersigned as of February 26, 2009, with all powers which the undersigned would possess if personally
present at the Annual Meeting of Shareholders of Farmers &#38; Merchants Bancorp, Inc. to be held in the Founders Hall
 at Sauder Village, State Route 2, Archbold, Ohio, on Tuesday, April 14, 2009, at 7:00 P.M., (local time), and at any
adjournments thereof, and to vote as noted below. By appointing the above named persons as proxy for me, I give them
the right to vote cumulatively in the election of directors and to cast the number of votes among the nominees noted
below in such proportion as they shall deem appropriate, in their sole discretion, unless I have withheld my vote for
 any nominee,
in which case votes shall not be cast for that person. This proxy revokes all prior proxies given by the undersigned.
</DIV>
<DIV align="center" style="margin-top: 100pt">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom" style="font-size: 1px">
    <TD width="4%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="5" valign="top" align="left">Please be sure to date and sign
  <BR>this proxy card in the box below.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="line-height: 15pt; border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000"><DIV style="margin-left:30px; text-indent:-15px">Date</div></TD>
</TR>

<TR valign="bottom" style="font-size: 30pt">
    <TD valign="top" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-bottom: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD colspan="3" nowrap align="center" valign="bottom" style="border-top: 1px solid #000000; border-bottom: 1px solid #000000"><div style="font-size: 8pt">Shareholder sign above </div></TD>

    <TD colspan="4" style="border-top: 1px solid #000000; border-right: 1px solid #000000; border-bottom: 1px solid #000000"><div style="font-size: 8pt">Co-holder (if any) sign above</div></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<DIV style="position: relative; float: right; width: 48%">
<DIV align="center">
<TABLE style="font-size: 6pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom" style="font-size: 1pt">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD align="center" valign="top"><div style="font-size: 6pt"><B>With-</B></div>
</TD>
    <TD>&nbsp;</TD>

<TD align="center" valign="top"><FONT style="white-space: nowrap"><div style="font-size: 6pt"><B>For
All</B></DIV></FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD align="center" valign="top"><div style="font-size: 6pt"><B>For</B></div>
</TD>
    <TD>&nbsp;</TD>

<TD align="center" valign="top"><div style="font-size: 6pt"><B>hold</B></div>
</TD>
    <TD>&nbsp;</TD>

<TD align="center" valign="top"><div style="font-size: 6pt"><B>Except</B></div></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><B>1.</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><b>Election of Directors </b>- To elect the following<br> thirteen (13) nominees to the Board of Directors <BR>
to  serve until the Annual Meeting of Shareholders in 2010:<br><br><B>Nominees:</B>
<br style="font-size: 6pt"></TD>
    <TD>&nbsp;</TD>

<TD align="center" valign="top"  style="font-size: 25pt" ROWSPAN="2"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>

<TD align="center"  valign="top"  style="font-size: 25pt" ROWSPAN="2"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>

<TD align="center" valign="top"   style="font-size: 25pt" ROWSPAN="2"><FONT face="Wingdings">&#111;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="white-space: nowrap"><B>(01) Dexter L. Benecke</B></FONT>
</TD>
    <TD>&nbsp;</TD>

    <TD align="left" valign="top"><B>(06) Steven J. Planson</B></TD>

    <TD align="left" valign="top" colspan=8><B>&nbsp;&nbsp;(11) Merle J. Short</B></TD>





</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><B>(02) Steven A. Everhart</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="white-space: nowrap"><B>(07) Anthony J. Rupp</B></FONT></TD>
    <TD>&nbsp;</TD>

    <TD align="left" valign="top" colspan=4 nowrap><B>(12) Paul S. Siebenmorgen</B></TD>

</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>(03) Robert G. Frey</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>(08) David P. Rupp, Jr.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan=4><B>(13) Steven J. Wyse</B></TD>


</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>(04) Jack C. Johnson</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><B>(09) James C. Saneholtz</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>(05) Marcia S. Latta</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="white-space: nowrap"><B>(10)  Kevin J. Sauder</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>

</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD colspan="11" valign="top" align="left"><B>
(To withhold authority to vote for a specific nominee(s) write his or her name(s) on the line below)</B></TD>
</TR>


<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" valign="top" align="left">
</TD>
</TR>


<TR style="font-size: 1px">
    <TD colspan="11" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>



<TR valign="bottom">
    <TD colspan="11" valign="top" align="left"><B>THE BOARD OF DIRECTORS RECOMMENDS A VOTE &#147;FOR&#148; EACH OF THE NOMINEES.</B>
</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="11" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>



<TR valign="bottom">
    <TD valign="top"><B>2.</B>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" valign="top" align="left">
        <b>Other Business</b> - To transact any other business which may properly come before the meeting or any adjournment of it.

</TD>
</TR>


<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="11" valign="top" align="left"><div align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
This proxy is solicited by management and confers authority to vote &#147;FOR&#148; the nominees noted above unless otherwise marked. If any other business is presented at the meeting, this proxy shall be voted in accordance with the recommendations of management. All shares represented by properly executed
proxies will be voted as directed.
</b></div>
</TD>
</TR>
<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>



<TR valign="bottom">
    <TD colspan="11" valign="top" align="left"><div align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>
The Board of Directors recommends a vote &#147;FOR&#148; the directors nominated by the Board of Directors</b>. This proxy may be revoked prior to its exercise by either written notice or personally at the meeting or by a subsequently dated proxy.
</div>
</TD>
</TR>


<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>



<TR valign="bottom">
<TD colspan="11" valign="top" align="left"><div align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(If signed in a fiduciary
 capacity, please give full fiduciary title. If signed by a corporation, sign the full corporate name followed by
the signature of the duly authorized officer. If signed by an agent, attach the instrument authorizing the agent
to execute the proxy or a photocopy thereof.)
</div>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="11" valign="top" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="7" valign="top" style="font-size: 8pt" align="left"><b>Mark here the number of attendees for the<br> Shareholders Dinner at Sauder Village <br>at 6:00 p.m.</b></TD>
    <TD>&nbsp;</TD>
<TD nowrap valign="middle"><FONT  style="font-family: Wingdings; font-size: 14pt">&#232;</FONT><BR>
<BR style="font-size: 4pt">
</TD>
    <TD>&nbsp;</TD>
<TD align="center" valign="top"   style="font-size: 25pt"><FONT face="Wingdings">&#111;</FONT></TD>

</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>





</DIV>
</DIV>
<BR clear="all">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom" style="font-size: 20pt">
    <TD width="4%"><IMG src="k47512dk4751203.gif" alt="(bottomleftcorner)"></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="25%" align="right"><IMG src="k47512dk4751204.gif" alt="(bottomrightcorner)"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
</TABLE>
</DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=center><DIV style="FONT-SIZE: 1px; BORDER-BOTTOM: #000000 1px dashed">&nbsp;</DIV></DIV>
<DIV align=center>
<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center" style="font-size: 9pt; margin-top: 6pt"><B><FONT style="font-family: Wingdings">&#233;</FONT> Detach above card, sign, date  and mail in postage paid envelope provided.<FONT style="font-family: Wingdings">&#233;</FONT><BR>
</b><div style="font-size: 11pt; margin-top: 3pt"><b>FARMERS &#38; MERCHANTS BANCORP, INC.<br>ARCHBOLD, OHIO</B>
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<DIV align="left" style="font-size: 8pt; margin-top: 0pt"><div align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please sign name as it appears. Executors, administrators, guardians, officers of corporations, and others signing in a fiduciary capacity must state their full titles as such.

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<DIV align="Center" style="font-size: 10pt; margin-top: 8pt"><B>PLEASE ACT PROMPTLY <BR>SIGN, DATE &#38; MAIL YOUR PROXY CARD TODAY</B>
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<DIV align="left" style="font-size: 9pt; margin-top: 10pt">IF YOUR ADDRESS HAS CHANGED, PLEASE CORRECT THE ADDRESS IN THE SPACE PROVIDED BELOW AND RETURN THIS
PORTION WITH THE PROXY IN THE ENVELOPE PROVIDED.
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<div align="right" style="font-size: 10pt"><B>5755</B></div>
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