Exhibit 10.1

June 5, 2007

# MANAGEMENT CONTINUITY
AGREEMENT

THIS
IS AN AGREEMENT between FNBH BANCORP,  INC. (the  "Corporation"),  whose principal
offices are 101 E. Grand   River   Ave.,   Howell,   Michigan   48843,   and   Casey
Kondel   (the   "Executive"),    dated June 7, 2007.

# RECITALS

The
Executive is a key officer of the Corporation or a Subsidiary whose continued dedication,
availability, advice and counsel to the Corporation and its Subsidiaries is deemed
important to the Board of Directors of the Corporation (Board), the
Corporation and its shareholders. The services of the Executive, his experience and
knowledge of the affairs of the Corporation and his reputation and contacts in the
industry are extremely valuable to the Corporation. The Corporation wishes to attract and
retain such well-qualified executives, and it is in the best interests of the Corporation
to secure the continued services of the Executive notwithstanding any change in control of
the Corporation.

The
Corporation considers the establishment and maintenance of a sound and vital management
team to be part of its overall corporate strategy and to be essential to protecting and
enhancing the best interests of this Corporation and its shareholders. Accordingly, the
Board has approved this Agreement with the Executive and authorized its execution and
delivery on behalf of the Corporation.

# AGREEMENT

1.       
          Term of Agreement. This Agreement will begin on the date entered above
          (the Commencement Date) and will continue in effect through June 7,
          2010 (the Initial Term). Thereafter, this Agreement shall be
          extended automatically for an additional one (1) year period (Renewal
          Terms) at the end of the Initial Term and each Renewal Term, unless not
          later than three (3) months prior to the end of the Initial Term or a Renewal
          Term, either the Corporation or the Executive gives written notice to the other
          party that he or it has elected not to renew this Agreement. Notwithstanding the
          foregoing, if a Change of Control (as defined below) occurs during the term of
          this Agreement, this Agreement will continue in effect for twelve (12) months
          beyond the end of the month in which any Change of Control occurs.

2.       
          Definitions. The following defined terms shall have the meanings set
          forth below, for purposes of this Agreement:

| | (a)       
               Average Base Salary. Average Base Salary shall mean the Executives
               highest annual salary during the three (3) calendar year period beginning two
               (2) years immediately prior to the year of Change of Control and ending with the
               year in which the Change of Control occurred; provided that if Executive has
               been employed by the Corporation or a Subsidiary for less than three (3) years,
               Average Base Salary shall be the highest annual salary during that lesser period
               or if less than one year, the Executives prevailing salary shall be
               annualized.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (b)       
               Average Bonus. Average Bonus shall mean the highest of the last three (3)
               bonuses paid to Executive under the Corporations Profit Sharing Plan
               immediately preceding the Change of Control; provided that (i) if Executive has
               been employed by the Corporation or a Subsidiary for less than three (3) years,
               Average Bonus shall be the highest bonus paid during that lesser period, and
               (ii) if Executive has been employed by the Corporation or a Subsidiary for less
               than one (1) year, Average Bonus shall be Executives total guaranteed
               bonus, if any, for that year.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       
               Change of Control. A Change in Control shall mean a change in
               control of the Corporation of such a nature that would be required to be
               reported in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated
               under the Securities Exchange Act of 1934 (Exchange Act), or such
               item thereof which may hereafter pertain to the same subject; provided that, and
               notwithstanding the foregoing, a Change in Control shall be deemed to have
               occurred if:
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i)       
               Any person (as such term is used in Sections 13(d) and 14(d) of the
               Exchange Act) is or becomes the beneficial owner (as defined in Rule
               13d-3 under the Exchange Act), directly or indirectly, of securities of the
               Corporation representing twenty-five percent (25%) or more of the combined
               voting power of the Corporations then outstanding securities; or
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii)       
               At any time a majority of the Board of Directors of the Corporation is comprised
               of other than Continuing Directors (for purposes of this paragraph, the term
               Continuing Director means a director who was either (A) first elected or
               appointed as a Director prior to the date of this Agreement; or (B) subsequently
               elected or appointed as a director if such director was nominated or appointed
               by at least a majority of the then Continuing Directors); or
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii)       
               Any of the following occur:
| | -------------------------------------------------------

| | (A)        Any
merger or consolidation of the Corporation, other than a merger or
               consolidation in which the voting securities of the Corporation
immediately                prior to the merger or consolidation continue to represent
(either by remaining                outstanding or being converted into securities of the
surviving entity)                fifty-one percent (51%) or more of the combined voting
power of the Corporation                or surviving entity immediately after the merger
or consolidation with another                entity;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (B)        Any
sale, exchange, lease, mortgage, pledge, transfer, or other disposition (in
               a single transaction or a series of related transactions) of all or
               substantially all of the assets of the Corporation which shall include,
without                limitation, the sale of assets or earning power aggregating more
than fifty                percent (50%) of the assets or earning power of the Corporation
on a                consolidated basis;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (C)        Any
liquidation or dissolution of the Corporation;
| | -------------------------------------------------------------

| | (D)        Any
reorganization, reverse stock split, or recapitalization of the Corporation
               which would result in a Change of Control; or
| | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | (E)        Any
transaction or series of related transactions having, directly or
               indirectly, the same effect as any of the foregoing; or any agreement,
contract,                or other arrangement providing for any of the foregoing.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)       
               Disability. Disability means that, as a result of
               Executives incapacity due to physical or mental illness, the Executive
               shall have been found to be eligible for the receipt of benefits under the
               Corporations long term disability plan.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)       
               Cause. Cause means (i) the willful commission by the
               Executive of a criminal or other act that causes or will probably cause
               substantial economic damage to the Corporation or a Subsidiary or substantial
               injury to the business reputation of the Corporation or a Subsidiary; (ii) the
               commission by the Executive of an act of fraud in the performance of such
               Executives duties on behalf of the Corporation or a Subsidiary; (iii) the
               continuing willful failure of the Executive to perform the duties of such
               Executive to the Corporation or a Subsidiary (other than any such failure
               resulting from the Executives Disability or occurring after issuance by
               Executive of a Notice of Termination for Good Reason) after written notice
               thereof (specifying the particulars thereof in reasonable detail) and a
               reasonable opportunity to be heard and cure such failure are given to the
               Executive by the Board; or (iv) the order of a federal or state bank regulatory
               agency or a court of competent jurisdiction requiring the termination of the
               Executives employment. For purposes of this subparagraph, no act, or
               failure to act, on the Executives part shall be deemed willful
               unless done, or omitted to be done, by the Executive not in good faith and
               without reasonable belief that the action or omission was in the best interest
               of the Corporation or a Subsidiary.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (f)       
               Good Reason. For purposes of this Agreement, Good Reason
               means the occurrence of any one or more of the following without the
               Executives express written consent:
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i)       
               The assignment to Executive of duties which are materially different from or
               inconsistent with the duties, responsibilities and status of (a)
               Executives position at any time during the six (6) month period prior to
               the Change of Control of the Corporation, or (b) which result in a significant
               reduction in Executives authority and responsibility as an executive of
               the Corporation or a Subsidiary;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii)       
               A reduction by the Corporation in Executives base salary or salary grade
               as of the day prior to the Change of Control, or the failure to grant salary
               increases and bonus payments on a basis comparable to those granted to other
               executives of the Corporation, or reduction of Executives most recent
               incentive bonus potential prior to the Change of Control under the
               Corporations Management Incentive Compensation Plan, or any complementary
               or successor plan;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (iii)       
               Either (a) the Corporation requiring Executive to be based at a location in
               excess of twenty-five (25) miles from the location where Executive is currently
               based, or (b) in the event of any relocation of the Executive with the
               Executives express written consent, the failure of the Corporation or a
               Subsidiary to pay (or reimburse the Executive for) all reasonable moving
               expenses by the Executive relating to a change of principal residence in
               connection with such relocation and to pay the Executive the amount of any loss
               realized in the sale of the Executives principal residence in connection
               with any such change of residence. Any gain realized upon the sale shall not
               offset the obligation to pay moving expenses, and the amounts payable under (b)
               shall be tax effected, all to the effect that the Executive shall incur no loss
               on an after tax basis;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv)       
               The failure of the Corporation to obtain a satisfactory agreement from any
               successor to the Corporation to assume and agree to perform this Agreement, as
               contemplated in Paragraph 5 hereof;
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (v)       
               Any termination by the Corporation of Executives employment that is other
               than for Cause;
| | -----------------------------------------------------------------------------------------------------------------------------------

| | (vi)       
               Any termination of Executives employment, reduction in Executives
               compensation or benefits, or adverse change in Executives location or
               duties, if such termination, reduction or adverse change (aa) occurs within six
               (6) months before a Change of Control, (bb) is in contemplation of such Change
               in Control, or (cc) is taken to avoid the effect of this Agreement should such
               action occur after such Change in Control; or
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (vii)       
               The failure of the Corporation to provide the Executive with substantially the
               same fringe benefits (including, without limitation, retirement plan, health
               care, insurance, and paid vacations) that were provided to him immediately prior
               to the Change in Control, or with a package of fringe benefits that, though one
               or more of such benefits may vary from those in effect immediately prior to such
               Change in Control, is substantially comparable in all material respects to such
               fringe benefits taken as a whole.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
existence of Good Reason shall not be affected by Executives Disability.
Executives continued employment shall not constitute a waiver of Executives
rights with respect to any circumstance constituting Good Reason under this Agreement.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)       
               Notice of Termination. Notice of Termination means a written
               notice indicating the specific termination provision in this Agreement relied
               upon and setting forth in reasonable detail the facts and circumstances claimed
               to provide a basis for termination of the employment under the provision so
               indicated. The Executive shall not be entitled to give a Notice of Termination
               that the Executive is terminating employment for Good Reason more than six (6)
               months following the occurrence of the event alleged to constitute Good Reason,
               except with respect to an event which occurred before the Change of Control, in
               which case the Notice of Termination must be given within six (6) months
               following the Change of Control. Any termination by the Corporation for Cause or
               due to Executives Disability, or by Executive for Good Reason shall be
               communicated by Notice of Termination to the other party.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (h)       
               Subsidiary. Subsidiary means a corporation with at least
               eighty percent (80%) of its outstanding capital stock owned directly or
               indirectly by the Corporation.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3.       
          Eligibility for Severance Benefits. The Executive shall receive the
          Severance Benefits described in Paragraph 4 if the Executives employment
          is terminated during the term of this Agreement, and

| | (a)       
               The termination occurs within twelve (12) months after a Change of Control,
               unless the termination is (i) because of Executives death or Disability,
               (ii) by the Corporation for Cause, or (iii) by the Executive other than for Good
               Reason; or
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       
               The Corporation terminates the employment of Executive within six (6) months
               before a Change of Control, in contemplation of such Change of Control, and to
               avoid the effect of this Agreement should such action occur after such Change of
               Control.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4.       
          Severance Benefits. The Executive shall receive the following Severance
          Benefits (in addition to accrued compensation and vested benefits) if eligible
          under Paragraph 3:

| | (a)       
               A lump sum cash amount (which shall be paid not later than thirty (30) days
               after the date of termination of employment) equal to Executives Average
               Base Salary, multiplied by two (2);
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       
               A lump sum cash amount (which shall be paid not later than thirty (30) days
               after the date of termination of employment) equal to the Executives
               Average Bonus, multiplied by two (2);
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       
               For the twelve (12) month period after the date the employment is terminated,
               the Corporation will arrange to provide to Executive at the Corporations
               expense, with:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i)       
               Health care coverage equal to that in effect for Executive prior to the
               termination (or, if more favorable to Executive, that furnished generally to
               salaried employees of the Corporation), including, but not limited to, hospital,
               surgical, medical, dental, prescription and dependent coverages. Health care
               benefits otherwise receivable by Executive pursuant to this subparagraph 4(c)
               shall be reduced to the extent comparable benefits are actually received by
               Executive from a subsequent employer during the twelve (12) month period
               following the date the employment is terminated and any such benefits actually
               received by Executive shall be reported to the Corporation;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (ii)       
               Life and accidental death and dismemberment insurance coverage (including
               supplemental coverage purchase opportunity and double indemnity for accidental
               death) equal (including policy terms) to that in effect at the time Notice of
               Termination is given (or on the date the employment is terminated if no Notice
               of Termination is required) or, if more favorable to Executive, equal to that in
               effect at the date the Change of Control occurs; and
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii)       
               Disability insurance coverage (including policy terms) equal to that in effect
               at the time Notice of Termination is given (or on the date employment is
               terminated if no Notice of Termination is required) or, if more favorable to
               Executive, equal to that in effect immediately prior to the Change of Control;
               provided, however, that no income replacement benefits will be payable under
               such disability policy with regard to the twelve (12) month period following a
               termination of employment provided that the payments payable under subparagraphs
               4(a) and (b) above have been made.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)       
               In computing and determining Severance Benefits under subparagraphs 4(a) through
               (c) above, a decrease in Executives salary, incentive bonus, or insurance
               benefits shall be disregarded if such decrease occurs within six (6) months
               before a Change of Control, is in contemplation of such Change of Control, and
               is taken to avoid the effect of this Agreement should such action be taken after
               such Change of Control; in such event, the salary, incentive bonus, and/or
               insurance benefits used to determine Average Base Salary, Average Bonus, and
               therefore Severance Benefits shall be that in effect immediately before the
               decrease that is disregarded pursuant to this subparagraph 4(d);
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)       
               All previously awarded stock grants and stock options shall immediately vest and
               become fully exercisable.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------

| | (f)       
               Executive shall not be required to mitigate the amount of any payment provided
               for in this Paragraph 4 by seeking other employment or otherwise, nor shall the
               amount of any payment provided for in this Paragraph 4 be reduced by any
               compensation earned by Executive as the result of employment by another employer
               after the date the employment is terminated, or otherwise, with the exception of
               a reduction in health insurance coverage as provided in subparagraph 4(c)(i).
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5.       
          Successors; Binding Agreements. This Agreement shall inure to the benefit
          of and be enforceable by Executives personal and legal representatives,
          executors, administrators, successors, heirs, distributees, devisees and
          legatees. Executives rights and benefits under this Agreement may not be
          assigned, except that if Executive dies while any amount would still be payable
          to Executive hereunder if Executive had continued to live, all such amounts,
          unless otherwise provided herein, shall be paid in accordance with the terms of
          this Agreement, to the beneficiaries designated by the Executive to receive
          benefits under this Agreement in a writing on file with the Corporation at the
          time of the Executives death or, if there is no such beneficiary, to
          Executives estate. The Corporation will require any successor (whether
          direct or indirect, by purchase, merger, consolidation, or otherwise) to all or
          substantially all of the business and/or assets of the Corporation (or of any
          division or Subsidiary thereof employing Executive) to expressly assume and
          agree to perform this Agreement in the same manner and to the same extent that
          the Corporation would be required to perform it if no such succession had taken
          place. Failure of the Corporation to obtain such assumption and agreement prior
          to the effectiveness of any such succession shall be a breach of this Agreement
          and shall entitle Executive to compensation from the Corporation in the same
          amount and on the same terms to which Executive would be entitled hereunder if
          Executive terminated the employment for Good Reason following a Change of
          Control.

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6.       
          Withholding of Taxes. The Corporation may withhold from any amounts
          payable under this Agreement all federal, state, city, or other taxes as
          required by law.

7.       
          Covenant on Termination.

| | (a)       
               In consideration of the Corporations delivery and execution of this
               Agreement, the Executive agrees that during the term of his employment by the
               Corporation or a Subsidiary, and for a period of twelve (12) consecutive months
               immediately thereafter, the Executive shall not directly or indirectly, within
               the Territory (defined below) engage, participate, invest or assist in any
               commercial activity not owned by or affiliated with the Corporation that is in
               competition with the Corporation or a Subsidiary involving banking or financial
               or other services offered by the Corporation or a Subsidiary (including, but not
               limited to, trust services) (Competitive Business) whether as an
               owner, part-owner, stockholder, partner, director, officer, trustee, employee,
               agent, consultant, or in any other capacity (except on behalf of the Corporation
               or a Subsidiary). The foregoing covenant does not prohibit the Executive from
               directly or indirectly owning up to an aggregate of five percent (5%) of the
               outstanding stock of any publicly held company engaged in a Competitive
               Business. The term Territory shall mean and include all of
               Livingston County in the State of Michigan and any area located within a forty
               (40) mile radius of any branch or office location of the Corporation or a
               Subsidiary.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)       
               Except as authorized or directed by the Corporation , the Executive shall not,
               at any time during or subsequent to his employment by the Corporation or a
               Subsidiary, directly or indirectly publish or disclose any Confidential
               Information of the Corporation or a Subsidiary or Confidential Information of
               others which has come into the Corporations or Subsidiarys
               possession or into his possession in the course of his employment with the
               Corporation or a Subsidiary, to any person or entity, and the Executive shall
               not use any such Confidential Information for his own personal use or advantage
               or make it available to others for use.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)       
               During the term of Executives employment by the Corporation or a
               Subsidiary and for a period of twelve (12) consecutive months immediately
               thereafter, the Executive shall not induce or attempt to induce any customer of
               the Corporation or a Subsidiary (including any customer of the Corporation or a
               Subsidiary during the nine (9) month period immediately preceding the date of
               termination) to reduce its business with the Corporation or a Subsidiary or
               solicit or attempt to solicit any employees of the Corporation or a Subsidiary
               to leave the employ of the Corporation or any Subsidiary.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (d)       
               The Executive acknowledges that the restrictions contained herein are reasonable
               and necessary to protect the business and interests of the Corporation and that
               any violation of these restrictions will cause substantial and irreparable
               injury to the Corporation, and as a consequence thereof, the Executive agrees
               that the Corporation is entitled, in addition to any other remedies, to
               preliminary and permanent injunctive relief to secure specific performance, and
               to prevent a breach or contemplated breach, of this Agreement. The restrictions
               set forth herein shall be construed as independent covenants, and the existence
               of any claim or cause of action against the Corporation, whether predicated upon
               this Agreement or otherwise, shall not constitute a defense to the enforcement
               by the Corporation of the restrictions contained in this Agreement.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

8.       
          Notice. For the purpose of this Agreement, notices and all other
          communications provided for in this Agreement shall be in writing and shall be
          deemed to have been duly given when personally delivered or mailed by United
          States registered mail, return receipt requested, postage prepaid, addressed to
          the respective addressees set forth on the first page of this Agreement, or at
          such other addresses as the parties may designate in writing.

9.        Miscellaneous.
No provision of this Agreement may be modified, waived, or           discharged unless
such waiver, modification, or discharge is agreed to in           writing and signed by
Executive and such officer as may be specifically           designated by the Board of
Directors of the Corporation. The validity,           interpretation, construction, and
performance of this Agreement shall be           governed by the laws of the State of
Michigan.

10.        Employment
Rights. Except as specifically provided in this Agreement,           this Agreement
shall not confer upon Executive any right to continue in the           employ of the
Corporation or its Subsidiaries and shall not in any way affect           the right of
the Corporation or its Subsidiaries to dismiss or otherwise           terminate Executives
employment at any time with or without cause.

11.        No
Vested Interest. Neither Executive nor Executives beneficiary           shall
have any right, title, or interest in any benefit under this Agreement           prior to
the occurrence of the right to the payment thereof, or in any property           of the
Corporation or its subsidiaries or affiliates.

12.        Prior
Agreements. This Agreement contains the understanding between the           parties
hereto with respect to Severance Benefits in connection with a Change of
          Control of the Corporation and supersedes any such prior agreement between the
          Corporation (or any predecessor of the Corporation) and Executive. If there is
          any discrepancy or conflict between this Agreement and any plan, policy, or
          program of the Corporation regarding any term or condition of Severance
Benefits           in connection with a Change of Control of the Corporation, the
language of this           Agreement shall govern.

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13.        Validity.
The invalidity  or  unenforceability  of any  provision of this  Agreement  shall not affect the
validity or enforceability of any other provision of this Agreement, which shall remain
in full force and effect.

14.       
          Counterparts. This Agreement may be executed in several counterparts,
          each of which shall be deemed to be an original but all of which together shall
          constitute one and the same instrument.

15.       
          Arbitration. The sole and exclusive method for resolving any dispute
          arising out of this Agreement shall be arbitration in accordance with this
          paragraph. Except as provided otherwise in this paragraph, arbitration pursuant
          to this paragraph shall be governed by the Commercial Arbitration Rules of the
          American Arbitration Association. A party wishing to obtain arbitration of an
          issue shall deliver written notice to the other party, including a description
          of the issue to be arbitrated. Within fifteen (15) days after either party
          demands arbitration, the Corporation and the Executive shall each appoint an
          arbitrator. Within fifteen (15) additional days, these two arbitrators shall
          appoint the third arbitrator by mutual agreement; if they fail to agree within
          said fifteen (15) day period, then the third arbitrator shall be selected
          promptly pursuant to the rules of the American Arbitration Association for
          Commercial Arbitration. The arbitration panel shall hold a hearing in Livingston
          County, Michigan, within ninety (90) days after the appointment of the third
          arbitrator. The fees and expenses of the arbitrator, and any American
          Arbitration Association fees, shall be paid by the Corporation. Both the
          Corporation and the Executive may be represented by counsel and may present
          testimony and other evidence at the hearing. Within ninety (90) days after
          commencement of the hearing, the arbitration panel will issue a written
          decision; the majority vote of two of the three arbitrators shall control. The
          majority decision of the arbitrators shall be final and binding on the parties,
          and shall be enforceable in accordance with law. Judgment may be entered on the
          arbitrators award in any court having jurisdiction. The Executive shall be
          entitled to seek specific performances of his rights under this Agreement during
          the pendency of any dispute or controversy arising under or in connection with
          this Agreement. The Corporation will reimburse Executive for all reasonable
          attorney fees incurred by Executive as the result of any arbitration with regard
          to any issue under this Agreement (or any judicial proceeding to compel or to
          enforce such arbitration); (i) which is initiated by Executive if the
          Corporation is found in such proceeding to have violated this Agreement
          substantially as alleged by Executive; or (ii) which is initiated by the
          Corporation, unless Executive is found in such proceeding to have violated this
          Agreement substantially as alleged by the Corporation.

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IN
WITNESS WHEREOF, the parties have signed this Agreement as of the day and year written
above.

| |  | CORPORATION:FNBH BANCORP, INC.By: /s/ Nancy Morgan      
      Its Secretary
EXECUTIVE:
/s/ Casey Kondel
| |  | -----------------------------------------------------------------------------------------------------------------------------------