<PAGE>
                                                                    EXHIBIT 10.3

              FIRST AMENDMENT TO COMMUNITY SHORES BANK CORPORATION
              FLOATING RATE SUBORDINATED NOTE DUE JUNE 30, 2006 AND
                      SUBORDINATED NOTE PURCHASE AGREEMENT


                               September 26, 2001


To the holder of Community Shores
Bank Corporation Floating Rate
Subordinated Notes named on the
signature page of this letter


         Re       Community Shores Bank Corporation Floating Rate Subordinated
                  Notes due June 30, 2006, and related Subordinated Note
                  Purchase Agreements

         Community Shores Bank Corporation (the "Community Shores") has
previously entered into the Subordinated Note Purchase Agreements and issued to
you the Floating Rate Subordinated Notes due June 30, 2006 referred to across
from your name on Annex I to this letter (collectively "Your Purchase Agreements
and Notes", and individually, "Your Purchase Agreements" and "Your Notes"). This
letter will confirm the agreement between you and Community Shores, effective
September 26, 2001, to extend the maturity of Your Notes from June 30, 2006 to
June 30, 2007. The provisions of Your Purchase Agreements shall be deemed
concurrently amended, effective September 26, 2001, to reflect the extension of
the maturity of Your Notes to June 30, 2007. In connection with the extension of
the maturity date, you represent to Community Shores that all of your
representations, warranties and agreements set forth in Section 5 of Your
Purchase Agreements continue to be true and correct as of the date of this
letter.

         Except for the amendment to Your Purchase Agreements and Notes
expressly set forth in this letter, all of the provisions of Your Purchase
Agreements and Notes shall continue to be in full force and effect.





<PAGE>

         Please indicate your agreement with the terms of this letter by signing
and returning a copy of this letter to Community Shores, in which case this
letter shall become a binding agreement between you and Community Shores,
effective September 26, 2001. The effectiveness of the agreement set forth in
this letter is not effected by any other holder of a Floating Rate Subordinated
Note agreeing or not agreeing to enter into a similar amendment.


                                   Sincerely,

                                   Community Shores Bank Corporation

                                   By:  ___________________________
                                         Jose' A. Infante
                                         Chairman of the Board, President
                                           and Chief Executive Officer



THE UNDERSIGNED AGREES TO THE ABOVE WITH
RESPECT TO THE $500,000 AGGREGATE PRINCIPAL
AMOUNT OFF FLOATING RATE SUBORDINATED NOTES
DUE JUNE 30, 2006 AND RELATED SUBORDINATED
NOTE PURCHASE AGREEMENTS REFERRED TO ACROSS
FROM THE UNDERSIGNED'S NAME ON ANNEX I TO
THIS LETTER




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

     DONALD E. HEGEDUS
--------------------------------------------


--------------------------------------------
    (Please print name under signature)






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<PAGE>

                                    ANNEX I

                       COMMUNITY SHORES BANK CORPORATION

         OUTSTANDING FLOATING RATE SUBORDINATED NOTES DUE JUNE 30, 2006

<TABLE>
<CAPTION>
                                                                DATE OF
                                  DATE OF FLOATING              SUBORDINATED NOTE             PRINCIPAL AMOUNT
                                  RATE SUBORDINATED             PURCHASE                      OF FLOATING RATE
NAME OF HOLDER                    NOTE                          AGREEMENT                     SUBORDINATED NOTE
--------------                    -----------------             -----------------             -----------------

<S>                               <C>                           <C>                           <C>
Robert Chandonnet                 June 28, 2000                 June 27, 2000                 $140,000
Michael Gluhanich                 June 28, 2000                 June 27, 2000                   70,000
Donald Hegedus                    June 28, 2000                 June 27, 2000                  350,000
Painewebber, Inc., IRA            June 28, 2000                 June 27, 2000                  525,000
Custodian FBO John L. Hilt
IRA II
Robert Chandonnet                 September 27, 2000            September 27, 2000            $ 60,000
Michael Gluhanich                 September 27, 2000            September 27, 2000              30,000
Donald Hegedus                    September 27, 2000            September 27, 2000             150,000
Painewebber, Inc., IRA            September 27, 2000            September 27, 2000             225,000
Custodian FBO John L. Hilt
IRA II

Community Shores LLC              September 27, 2000            September 27, 2000              35,000

Community Shores LLC              December 26, 2000                                            420,000

Community Shores LLC              March 28, 2001                March 28, 2001                 600,000

Community Shores LLC              March 29, 2001                March 29, 2001                 250,000

Community Shores LLC              April 13, 2001                April 13, 2001                 145,000

Community Shores LLC              July 12, 2001                                                100,000
</TABLE>



















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