Exhibit 10

# SUPPLEMENTAL RETIREMENT AGREEMENT
AND RELEASE

For
value received, Bank of Lenawee, a Michigan corporation, and Pavilion Bancorp, Inc., its
holding company (herein collectively referred to as Bank of Lenawee or
Employer), and Pamela Fisher (hereinafter referred to as Fisher)
agree as follows:

|1. | Termination of Employment. The employment relationship between Fisher and
          Bank of Lenawee is hereby terminated by mutual agreement effective April 28,
          2006 (the Termination Date). All employment and other agreements,
          contracts, commitments and understandings between Bank of Lenawee and Fisher
          whether written, oral or otherwise, are hereby terminated, ended and void as of
          the Termination Date.
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|2. | Consideration. In consideration of the release and other promises made by
          Fisher in paragraphs 3, 4, 5, 6, and 7 of this Supplemental Retirement Agreement and Release,
          and in full accord, satisfaction and discharge of any and all obligations,
          agreements, contracts, commitments, understandings, or otherwise, Bank of
          Lenawee agrees to provide the following:
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| | A. | To
pay Fisher a severance benefit consisting of salary continuation through
                    June 30, 2006 at the rate of pay Fisher was earning as of April 28,
2006; and to                     pay Fisher an additional severance benefit equal to two
hundred fifty-thousand                     dollars ($250,000) payable over five (5) years
in annual installments of fifty                     thousand dollars ($50,000) each July 1st beginning
July 1,2006. Such payments shall be subject to withholding for applicable
                    federal, state and local income taxes and F.I.C.A.
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| | B. | To
provide Fisher with medical and dental coverage until the first of
                    the month in which Fisher turns age sixty-five (65), September 1,
2014, with                     premium payments to be made by the Employer.  The coverage provided shall conform substantially to that provided by the Employer to its employees.
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| | C. | To
provide medical and dental coverage to her current spouse through June 30,
                    2006; and to provide the option to extend medical and dental coverage
to her                     current spouse until September 1, 2014 as long as Fisher is
also enrolled and                     pays the additional premium of the spousal coverage
on a monthly basis.
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| | It
is understood that the foregoing payments and benefits provided by Bank of Lenawee are
good and valuable consideration for this Supplemental Retirement Agreement and Release and do not
constitute monies or benefits to which Fisher is otherwise entitled as part of her prior
employment with Bank of Lenawee.
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| | The payments referended in (A) and other obligations under this
Supplemental Retirement Agreement and Release are unfunded and
unsecured promises of the Employer to pay money or provide benefits in the future.
Fisher shall not have the right to assign or pledge her interests in this Agreement to any other person except a named beneficiary to receive benefits in the event of her death.  If Fisher dies before receiving the full amount under (A) above, payments hereunder shall continue to be made to the named beneficiary or her
estate.
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|3. | Release by Fisher. In consideration of the payments and benefits
          specified in Section 2 above, Fisher, on behalf of herself and her heirs, legal
          representatives and assigns, hereby releases and forever discharges Bank of
          Lenawee, Pavilion Bancorp, Inc. and their Boards of Trustees, officers,divisions, units, successors, assigns, affiliates, agents, employees, former
          employees, and attorneys (hereafter the Released Parties) of and
          from all actions, causes of action, claims, demands, compensatory, exemplary,
          statutory and punitive damages, costs, suits, debts, dues, sums of money, fees,
          covenants, contracts, liens, controversies, agreements, promises, judgments,
          liability and any and all consequential damages whatsoever, in law or in equity,
          which against the Released Parties, Fisher, individually or in any
          representative capacity had, now has or may or shall have by reason of any
          matter, fact, representation, cause or thing of any conceivable kind and
          character whatsoever, and which have occurred up to and including the date this
          Supplemental Retirement Agreement and Release becomes effective pursuant to Section 9 of this
          Agreement. This Supplemental Retirement Agreement and Release includes specifically, but not
          by way of limitation, any and all claims of discrimination, wrongful discharge,
          breach of contract, fraud, promissory estoppel, misrepresentation, retaliation,
          all claims under or in connection with the Age Discrimination in Employment Act
          (ADEA), the Older Workers Benefit Protection Act, Title VII of the Civil Rights
          Act of 1964, the Civil Rights Act of 1991, the Employee Retirement Income
          Security Act of 1974, the Family Medical Leave Act, the Michigan Elliott-Larsen
          Civil Rights Act, the Michigan Persons With Disabilities Civil Rights Act, the
          Americans with Disabilities Act, the Whistleblowers Protection Act, and
          any other Michigan and Federal statutes and the common law of the State of
          Michigan and the United States, actions based on tort, public policy, defamation
          or injuries incurred on the job or incurred as a result of loss of employment,
          and any and all claims and demands of every conceivable kind based upon or in
          connection with or involving Fishers employment and the termination of
          such employment.
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| | Nothing
in this Supplemental Retirement Agreement and Release shall constitute a waiver of any claim or right of
Fisher that may arise from events occurring after this Supplemental Retirement Agreement and Release
becomes effective, of claims for workers compensation or unemployment compensation
benefits, or of the right to file a charge with or participate in an investigation
conducted by the Equal Employment Opportunity Commission. This release by Fisher becomes
effective and enforceable as provided in Section 9 of this Agreement.
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|4. | Waiver of Rights To Sue or Proceed. In further consideration of the
          receipt of the consideration described in Section 2, I, Pamela Fisher, do hereby
          covenant with the Released Parties that I will not sue or proceed in any manner,
          whether at law or in equity, against any or all of them, for or on account of
          any claim of any nature whatsoever, including but not limited to any claim for
          injuries or compensatory, exemplary, statutory or punitive damages as a result
          of the events arising out of or relating in any way to the termination of my
          employment or any events arising out of or relating in any way to my former
          employment with Bank of Lenawee. I, Pamela Fisher, hereby covenant and agree
          that this Supplemental Retirement Agreement and Release may be pleaded as a full and complete
          defense to, and be used as a basis for, an injunction against any action, suit,
          or other proceeding which may be instituted, prosecuted or attempted by me or by
          my respective heirs, legal representatives or assigns in breach hereof.
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|5. | Waiver of Reinstatement and Reemployment. Fisher hereby expressly waives
          recall and/or reinstatement to any position with Bank of Lenawee, and Fisher
          represents and covenants and agrees that she will not in the future seek or
          apply for employment, recall, reemployment or reinstatement with Bank of Lenawee
          in any capacity.
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|6. | Purpose and Intent. The parties intend that this Agreement will
          irrevocably bar any action or claim whatsoever by Fisher against the Employer
          for any injuries or damages, whether known or unknown, sustained or to be
          sustained, as a result of Bank of Lenawees acts, omissions and conduct
          having occurred up to and including the effective date of this Agreement,
          including but not limited to, the termination of Fishers employment.
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| | It
is further understood and agreed, however, that this Supplemental Retirement Agreement and Release does
not prevent Fisher from filing a charge with the EEOC or participating in an EEOC
investigation or proceeding.
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|7. | Confidentiality, Trade Secrets and Non-Compete Agreements. Fisher agrees
          to treat the terms of this Supplemental Retirement Agreement and Release as confidential.
          Fisher agrees not to disclose either directly or indirectly the terms of, and
          amounts paid under, this Supplemental Retirement Agreement and Release to the media, to the
          public or to any other employees or former employees of Bank of Lenawee.
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| | Fisher
further agrees that she shall not, without the prior written consent of Bank of Lenawee,
utilize or divulge to anyone any Confidential Information that she received, obtained or
learned about as a result of her employment by Bank of Lenawee or any of its affiliates or
subsidiaries. The term Confidential Information shall mean and include without
limitation: (1) all of Bank of Lenawees trade secrets; (2) customer information; (3)
confidential or proprietary information relating to Bank of Lenawees finances, its
current and future business strategies, and its current and future plans for product
development; and (4) any other confidential or proprietary information relating to Bank of
Lenawees programs, policies and procedures. It is not intended that this paragraph
cover commonly known information in the industry and/or public knowledge or information
that is readily available from third party sources. Further, Fisher agrees that she will
make no attempt whatsoever to induce or encourage any other employee of the Employer or
any of their affiliates to leave such employment for employment with any other entity
engaged in any line of business competitive with the Employer or any of their affiliates.
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| | Fisher
agrees for a period of five (5) years following the date of termination of my employment
with the Employer, I shall not engage in any work for or on behalf of, be employed by, or
contribute any knowledge in any way to:
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| | (a) | Any
other banking, financial or lending institution, credit union, savings and
                    loan association, insurance agency or any business that is
substantially                     similar, in whole or in part, to business of the
Employer and which operates in                     Lenawee County, Michigan. I expressly
covenant and agree that I will not, for a                     period of five (5) years
from the date of termination of my employment with the                     Employer,
compete with the Employer, directly or indirectly, as an employee,
                    agent, director, officer, or consultant, of any business that is
substantially                     similar, in whole or in part, to the business carried
on by the Employer.
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| | Fisher
warrants that she has returned to the Employer all of its property, keys, credit cards,
pagers, telephones, computers, notes, memoranda, writings, lists, files, reports, customer
lists, correspondence, tapes, disks, cards, surveys, maps, logs, machines, technical data
or any other tangible or intangible property or assets which has been furnished to her by
the Employer. Upon the Employers reasonable request, Fisher will assist and
cooperate with the Employer in effecting a smooth transition of responsibility and in
connection with any government, regulatory, legal or business matters with which Fisher
was involved during the course of her employment.
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|8. | Non-disparagement.   Fisher agrees to be supportive of the
          Employer and its officers, staff, directors and employees for the duration of
          this Agreement.
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|9. | Representation. As a substantial and material term of this Supplemental Retirement
          Agreement and Release, Fisher represents and warrants that Fisher has suffered
          no personal or mental injuries related to or arising out of her employment with
          any party released herein for which Fisher is or might be entitled to
          Workers Compensation Coverage.
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|10. | Waiting and Revocation Periods. Fisher expressly acknowledges that she
          has been advised and instructed by the Employer that she has the right to
          consult an attorney and that she should review the terms of this Supplemental Retirement
          Agreement and Release with counsel of her own selection. Fisher further confirms
          that she has had at least forty-five (45) days within which to consider this
          information and the terms of this Supplemental Retirement Agreement and Release, that she has
          had the opportunity to review this Supplemental Retirement Agreement and Release with counsel
          of her own choice, that she has had ample time to study this Supplemental Retirement Agreement
          and Release, that she has carefully read the terms of this Supplemental Retirement Agreement
          and Release and is fully aware of the Supplemental Retirement Agreement and Releases
          contents and legal effects, and that she knowingly executes this Supplemental Retirement
          Agreement and Release voluntarily and of her own free will. Fisher expressly
          acknowledges that this Agreement constitutes a knowing and voluntary waiver
          under the Older Workers Benefit Protection Act and that this Supplemental Retirement Agreement
          and Release complies with the provisions of the Older Workers Benefit Protection
          Act.
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| | Fisher
understands and agrees that this Supplemental Retirement Agreement and Release is revocable by her for
seven (7) days following the signing of this Supplemental Retirement Agreement and Release by her, and
that this Supplemental Retirement Agreement and Release shall not become effective or enforceable until
that revocation period has expired. This Supplemental Retirement Agreement and Release automatically
becomes enforceable and effective on the eighth (8th) day after the date this Supplemental Retirement
Agreement and Release is signed by her. This Supplemental Retirement Agreement and Release may be
revoked by a writing sent certified mail by her to the Employer and postmarked no later
than the seventh (7th) day after the day the Supplemental Retirement Agreement and Release is signed by
her (unless that day is a Sunday or a legal holiday, in which event the period is extended
to the next day there is mail service).
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|11. | Paid Time Off and Holiday Pay. Bank of Lenawee agrees to pay Fisher four
          hundred eighty-eight (488) hours of Paid Time Off (PTO) at 100% of the full rate
          of the base pay she was earning as of April 28, 2006.
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|12. | Successors. In the event Pavilion Bancorp, Inc. or the Bank of Lenawee is
          purchased or acquired, this Agreement shall be binding upon the successor in
          interest.
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|13. | Entire Agreement. This Supplemental Retirement Agreement and Release contains the
          entire agreement of the parties and supersedes all other agreements, written or
          otherwise. This Supplemental Retirement Agreement and Release cannot be altered or amended
          except in writing, which must be signed by Fisher and the Chairman of Pavilion
          Bancorp, Inc. to be valid and binding. In no event shall this Supplemental Retirement
          Agreement and Release be modified by any oral statements, agreements,
          commitments or understandings.
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|14. | Choice of Law and Severability. The terms of this Supplemental Retirement Agreement and
          Release are contractual and not a mere recital. The terms and conditions of this
          Supplemental Retirement Agreement and Release shall be construed in accordance with the laws
          of the State of Michigan. If any provision of this Agreement shall for any
          reason be held invalid or unenforceable, such invalidity or unenforceability
          shall not affect any other provision hereof, but this Agreement shall, in such
          event, be construed as if such invalid and/or unenforceable provision had never
          been contained herein.  At all times, this Supplemental Retirement Agreement and Release will also be interpreted and administered to maintain intended income tax deferral in accordance with Section 409A of the Internal Revenue Code and regulations and other guidance issued thereunder.
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|15. | Free Act and Deed. Fisher further states that she has carefully read the
          foregoing Supplemental Retirement Agreement and Release, that she has discussed its terms with
          her attorney and that she fully understands the same, and that she executes the
          same as her own free act and deed.
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Fisher
has executed this Supplemental Retirement Agreement and Release this 24th day of April,
2006.

|THIS IS A RELEASE
IN THE PRESENCE OF:/s/ Carol A.Wendelcke______________ | READ BEFORE SIGNING/s/ Pamela FisherPamela Fisher
|------------------------------------------------------------------------ | -------------------------------------------------

|STATE OF MICHIGAN)COUNTY OF LENAWEE) | : ss
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On
this 24th day of April, 2006, before me, a notary public in and for said county and
state, personally appeared Pamela Fisher, to me known to be the person named in and who
signed the foregoing Supplemental Retirement Agreement and Release and who acknowledged the same to be
his own free act and deed.

| | /s/ Carol A. Wendelcke
Notary Public, Lenawee County, MichiganMy commission expires: June 15, 2007
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|IN THE PRESENCE OF:
/s/ Amy M. Bergman | By: | BANK OF LENAWEE/s/ Richard J. DeVriesPresident & CEO
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|IN THE PRESENCE OF:
/s/ Amy M. Bergman | By: | PAVILION BANCORP, INC./s/ Douglas L. KapnickChairman, Pavilion Bancorp, Inc.
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# VOLUNTARY WAIVER OF
45-DAY REVIEW AND
CONSIDERATION PERIOD

I,
Pamela Fisher, understand that Paragraph 10 of the attached Supplemental Retirement Agreement
and Release specifically provides me with up to forty-five (45) days within which to
consider the Supplemental Retirement Agreement and Release and the information attached as Exhibit A. By
signing this Voluntary Waiver, I knowingly and voluntarily choose to waive the remainder
of the 45-day time period and accept a shortening of the 45-day time period to the date of
my signing of this Voluntary Waiver. I make this waiver without any inducement by the
Released Parties, whether through fraud, misrepresentation, oral or written statements,
promises, or threats to withdraw or alter the consideration and other terms offered in the
Supplemental Retirement Agreement and Release prior to the expiration of the 45-day time period, or any
other act.

I
further understand and agree that all other provisions of the Supplemental Retirement Agreement and
Release continue to apply to me and specifically acknowledge and understand that the 7 day
revocation period set forth in Paragraph 10 of the attached Release has not been shortened
or waived and will commence as of the date of my signing this Voluntary Waiver.

|Dated: 4/24/06 | Pamela FisherPamela Fisher (Please Print)/s/ Pamela FisherSignature
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Subscribed and sworn to
before me This 24th day of April, 2006. /s/ Carl A. Wendelcke
Notary Public