Exhibit 10.12

Credit Agreement

# CHASE

This agreement dated as of December
5, 2005, between JPMorgan Chase Bank, N.A. (together with its successors and assigns, the
Bank), having an office at 120 South La Salle Street, 6th Floor,
Chicago, IL 60603-3403, and Clarkston Financial Corporation, a Michigan corporation, whose
address is 15 S. Main Street, Clarkston, MI 48346 (whether one or more, and if more than
one, individually and collectively, the Borrower).

|1. | Credit
Facilities.
|-- | ------------------

| | 1.1 |  | Scope. This agreement governs Facility A and, unless otherwise agreed to in writing
by the Bank and the Borrower or prohibited by applicable law, governs all the Credit
Facilities as defined below.
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| | 1.2 |  | Facility A (Line of Credit). The Bank has approved a credit facility to the
Borrower in the principal sum not to exceed $10,000,000.00 in the aggregate at any one
time outstanding (Facility A). Credit under Facility A shall be
repayable as set forth in a Line of Credit Note executed concurrently with this agreement,
and any renewals, modifications, extensions, rearrangements, restatements thereof and
replacements or substitutions therefore. The proceeds of Facility A shall be used for the
Borrowers general working capital purposes.
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|2. | Definitions. As
used in this agreement, the following terms have the           following respective
meanings:
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| | 2.1 |  | Affiliate means, as to any Person, any other Person: (1) that directly
or indirectly, through one or more intermediaries, controls or is controlled by, or is
under common control with, such Person; (2) that directly or indirectly beneficially owns
or holds five percent (5%) or more of any class of voting stock of such Person; or (3)
five percent (5%) or more of the voting stock of which is directly or indirectly
beneficially owned or held by the Person in question. The term control means
to possess, directly or indirectly, the power to direct the management and policies of a
Person, whether through the ownership of voting securities, by contract, or otherwise. The
Bank is not under any circumstances to be deemed an Affiliate of Borrower or any of its
Subsidiaries.
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| | 2.2 |  | Authority Documents means certificates of authority to transact
business, certificates of good standing, borrowing resolutions (with secretarys
certificate), secretarys certificates of incumbency, and other documents, which
empower and enable the Parties or their representatives to enter into the Related
Documents or evidence such authority.
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| | 2.3 |  | Business Day means a day when the main office of the Bank is open for
the conduct of commercial lending business.
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| | 2.4 | Clarkston
State Bank means Clarkston State Bank, a Michigan banking corporation.
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| | 2.5 |  | Credit Facilities means all extensions of credit from the Bank to the
Borrower, whether now existing or hereafter arising, including but not limited to those
described in Section 1 and those extended contemporaneously with this agreement, including
any and all renewals, modifications, extensions, rearrangements, restatements thereof and
replacements or substitutions therefore.
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| | 2.6 |  | Companymeans a corporation, partnership, limited liability company,
joint venture, joint stock association, association, bank, business trust or other
business entity.
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| | 2.7 | GAAP:
 means  generally  accepted  accounting  principles  in  effect in the  United  States of
America, consistently applied.
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| | 2.8 |  | Governmental Authoritymeans any foreign governmental authority, the
United States of America, any state of the United States and any political subdivision of
any of the foregoing, and any agency, department, commission, board, bureau, court or
other tribunal having jurisdiction over the Bank, the Borrower or any other Obligor, or
any Subsidiary of the Borrower, or their respective properties. Governmental Authority
includes but is not limited to the Board of Governors of the Federal Reserve System
(FRB), the Federal Deposit Insurance Corporation (the
FDIC), any state banking regulatory or supervisor authority (a
State Authority), the Office of Thrift Supervision (the
OTS), the Office of the Comptroller of the Currency (the
OCC) and the Securities and Exchange Commission (the
SEC).
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| | 2.9 |  | Huron Valley means Huron Valley State Bank, which, as of the date of
this agreement, is in the process of being organized as a Michigan banking corporation.
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| | 2.10 |  | Indebtedness means and includes (without duplication) (i) all items
arising from the borrowing of money, which according to GAAP, would be included in
determining total liabilities as shown on the balance sheet; (ii) all indebtedness secured
by any Lien on property owned by the borrower or the Subsidiaries of the Borrower whether
or not such indebtedness shall have been assumed; (iii) all guarantees and similar
contingent liabilities in respect to indebtedness of others; and (iv) all other
interest-bearing obligations evidencing indebtedness to others for borrowed money.
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| | 2.11 |  | Legal Requirement means any law, ordinance, decree, requirement, order,
judgment, rule, regulation (or interpretation of any of the foregoing) of, and the terms
of any list, license or permit issued by, any Governmental Authority.
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| | 2.12 |  | Liabilities means all debts, obligations, indebtedness and liabilities
of every kind and character of the Borrower to the Bank, its successors and assigns, now
existing or later arising, whether individual, joint and several, contingent or otherwise,
including, without limitation, all liabilities, interest, costs and fees, arising under or
from any note, open account, overdraft, credit card, lease, Rate Management Transaction,
letter of credit application, endorsement, surety agreement, guaranty, acceptance, foreign
exchange contract or depository service contract, whether payable to the Bank or to a
third party and subsequently acquired by the Bank, any monetary obligations (including
interest) incurred or accrued during the pendency of any bankruptcy, insolvency,
receivership or other similar proceedings, regardless of whether allowed or allowable in
such proceeding, and all renewals, extensions, modifications, consolidations,
rearrangements, restatements, replacements, restatements or substitutions of any of the
foregoing.
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| | 2.13 |  | Lien means any mortgage, deed of trust, pledge, charge, encumbrance,
security interest, collateral assignment or other lien or restriction of any kind, whether
based on common law, constitutional provision, statute or contract.
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| | 2.14 |  | Notes means each and all promissory notes, instruments and/or other
agreements evidencing the terms and conditions of any of the Credit Facilities.
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| | 2.15 |  | Obligor means each Borrower and any guarantor, surety, co-signer,
general partner or other Person who may now or hereafter be obligated to pay all or any
part of the Liabilities.
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| | 2.16 |  | Organizational Documents means, with respect to a corporation, the
certificate of incorporation or formation, articles of incorporation and bylaws of such
corporation; with respect to a limited liability company, the articles of organization,
regulations, operating agreement and other documents establishing or governing such
entity, with respect to a partnership, joint venture, or trust, the agreement, certificate
or instrument establishing or governing such entity; in each case including all
modifications and supplements thereof as of the date of the Related Document referring to
such Organizational Document and any and all future modifications thereof which are
consented to by the Bank.
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| | 2.17 | Parties means
all Persons other than the Bank executing any Related Document.
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| | 2.18 |  | Permitted Acquisition means the purchase of the capital stock of,
or equity interest in another Company, or of the assets of another Company, provided that:
(i) the acquisition does not increase Borrowers consolidated shareholders
equity by more than ten percent (10%) of Borrowers consolidated shareholders
equity (computed in accordance with GAAP) as determined from Borrowers most recent
quarterly financial statements; (ii) Borrower is able to demonstrate to the Banks
reasonable satisfaction the pro forma compliance, after giving effect to the acquisition,
of the Borrower and the Subsidiaries with the financial covenants set forth in Sections
4.8 and 4.9; and (iii) no Event of Default or event which, with the giving of notice or
the lapse of time or both would constitute an Event of Default, has occurred and is
continuing or would occur as a result of such acquisition.
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| | 2.19 |  | Person means any individual, Company, trust, unincorporated
organization, Governmental Authority or any other form of entity.
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| | 2.20 | Proper
Form means in form and substance satisfactory to the Bank.
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| | 2.21 |  | Rate Management Transaction means any transaction (including an
agreement with respect thereto) that is a rate swap, basis swap, forward rate transaction,
commodity swap, commodity option, equity or equity index swap, equity or equity index
option, bond option, interest rate option, foreign exchange transaction, cap transaction,
floor transaction, collar transaction, forward transaction, currency swap transaction,
cross-currency rate swap transaction, currency option, derivative transaction or any other
similar transaction (including any option with respect to any of these transactions) or
any combination thereof, whether linked to one or more interest rates, foreign currencies,
commodity prices, equity prices or other financial measures.
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| | 2.22 |  | Related Documents means this agreement, the Notes, all loan agreements,
credit agreements, reimbursement agreements, security agreements, mortgages, deeds of
trust, pledge agreements, assignments, guaranties, and any other instrument or document
executed in connection with this agreement or in connection with any of the Liabilities.
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| | 2.23 |  | Subordinated Debt means any Indebtedness subordinated to Indebtedness
due the Bank pursuant to a written subordination agreement in Proper Form by and among the
Bank, subordinated creditor and the Borrower which at a minimum must prohibit: (a) any
action by subordinated creditor which will result in an occurrence of an Event of Default
or default under this agreement, the subordination agreement or the subordinated
Indebtedness; and (b) upon the happening of any Event of Default or default under any
Related Documents, the subordination agreement, or any instrument evidencing the
subordinated Indebtedness: (i) any payment of principal and interest on the subordinated
Indebtedness; (ii) any act to compel payment of principal or interest on subordinated
Indebtedness; and (iii) any action to realize upon any collateral securing the
subordinated Indebtedness.
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| | 2.24 |  | Subsidiary means, as to a particular parent Company, any Company of
which 50% or more of the indicia of equity rights is at the time directly or indirectly
owned by such parent Company or by one or more Persons controlled by, controlling or under
common control with such parent Company. For purposes of this agreement, the
Borrowers Subsidiaries include but are not limited to each of those listed on Annex
I.
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|3. | Conditions
Precedent.
|-- | ---------------------

| | 3.1 |  | Conditions Precedent to Initial Extension of Credit. Before the first extension of
credit governed by this agreement, whether by disbursement of any loan, issuance of any
letter of credit, or otherwise, the Borrower shall deliver to the Bank in Proper Form:
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| | A. | Related Documents. The Notes, and as applicable, the letter of
                    credit applications, the security agreements, the pledge agreements, financing
                    statements, mortgages or deeds of trust, the guaranties, the subordination
                    agreements, and any other loan documents which the Bank may reasonably require
                    to give effect to the transactions described in this agreement.
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| | B. | Organizational and Authority Documents. The Organizational and Authority
                    Documents of the borrower and any other Party executing the Related Documents.
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| | C. | Payoff Existing Debt/Release of Liens. Full payment and satisfaction of
                    all debt of the Borrower and each of its Subsidiaries other than the
                    Indebtedness permitted by Section 5.1 hereof, and the release and satisfaction
                    of all Liens other than the Liens permitted by Section 5.2 hereof.
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| | D. | Due Diligence Review. The completion by the Bank of a due diligence
                    review of such policies, reports, minutes, records, files, and other papers and
                    information relating to the Borrower or any of its Subsidiaries as the Bank may
                    request, which review shall be satisfactory in form and substance to the Bank.
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| | 3.2 | Conditions
 Precedent to Each  Extension of Credit.  Before any  extension of credit  governed by
                  this agreement,  whether by disbursement of a loan,  issuance of a
letter of credit or otherwise,                   the following conditions must be
satisfied:
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| | A. | Representations. The representations of the Borrower and any other
                    Parties to the Related Documents are true on and as of the date of the extension
                    of credit;
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| | B. | No Event of Default. No default or Event of Default has occurred under
                    this agreement, the Notes or any other Related Documents and is continuing or
                    would result from the extension of credit, and no event has occurred which would
                    constitute the occurrence of any default or any Event of Default but for the
                    lapse of time until the end of any grace or cure period.
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| | 3.3 | Additional
 Approvals,  Opinions,  and  Documents.  The Bank has  received  any other  approvals,
                  opinions and documents as it may reasonably request.
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| | 3.4 |  | Satisfaction of Conditions Precedent.The acceptance of the proceeds and benefits
of the proceeds of any Credit Facility shall constitute a representation and warranty by
the Parties to the Bank that all of the conditions specified in this Article 3 for that
Credit Facility have been satisfied as of that time.
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|4. | Affirmative Covenants. The Borrower agrees to do, and will cause each of
          its Subsidiaries to do, each of the following:
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| | 4.1 |  | Financial information. Furnish to Bank in Proper Form (1) the financial statements
prepared in conformity with GAAP on consolidated and consolidating bases and the other
information described in, and within the times required by, Exhibit A, Reporting
Requirements, Financial Covenants and Compliance Certificate attached hereto and
incorporated herein by reference; (2) within the time required by Exhibit A, a
certificate in the form of Exhibit A signed or otherwise authenticated and
certified by the chief financial officer or president of the Party required to submit the
information; (3) to the extent permitted by applicable Legal Requirements, promptly after
the same are available, copies of each annual report or financial statement or other
report or communication sent by the Borrower to the shareholders of the Borrower; each
registration statement which the Borrower or any Subsidiary may file with any Governmental
Authority or with any securities exchange; (4) promptly after a request is submitted to
the appropriate Governmental Authority, any request for waiver of funding standards or
extension of amortization periods with respect to any employee benefit plan; (5) copies of
special audits, studies, reports and analyses prepared for the management of the Borrower,
any of its Subsidiaries or any other Obligor by outside parties as the Bank may reasonably
request from time to time; and (6) such other information relating to the financial
condition, prospects and affairs of the Borrower, each other Obligor and their respective
Subsidiaries as the Bank may reasonably request from time to time. Nothing in this
agreement shall require the Borrower to provide any information to the Bank which the
Borrower, any other Obligor or any of their respective Subsidiaries is prohibited by Legal
Requirements to disclose. All proceeds of any collateral shall be deposited in an account
maintained with the Bank.
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| | 4.2 |  | Existence. Maintain its existence and business operations as presently in effect in
accordance with all applicable Legal Requirements, pay its debts and obligations when due
under normal terms, and pay on or before their due date, all taxes, assessments, fees and
other governmental monetary obligations, except as they may be contested in good faith if
they have been properly reflected on its books and, at the Banks request, adequate
funds or security have been pledged to insure payment.
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| | 4.3 | Financial
 Records. Maintain  proper books and records of account,  in accordance with GAAP, and
                  consistent with financial statements previously submitted to the Bank.
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| | 4.4 |  | Inspection. Permit the Bank or its representatives, at those times and at the
intervals as the Bank may reasonably require: (1) to inspect, examine, audit and copy its
business records, and to discuss its business, operations, prospects and financial
condition with its officers and accountants; and (2) to inspect its business operations
and sites. Nothing in this agreement shall give the Bank the right to inspect or copy any
records of any examination report of the Borrowers supervisory Governmental
Authority or other information that the Borrower or any of its Subsidiaries are prohibited
by any Legal Requirement from disclosing without the consent of the supervising
Governmental Authority; provided, however, the Borrower will and will cause each of its
Subsidiaries to, cooperate in obtaining any consent should the Bank request the
disclosure.
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| | 4.5 |  | Notices of Claims, Litigation, Defaults, etc. Promptly inform the Bank in writing
of (1) all existing and threatened litigation, claims, investigations, administrative
proceedings and similar actions affecting the Borrower or any Subsidiary of the Borrower
which could materially affect the business, property, affairs, prospects or financial
condition of Borrower or any of its Subsidiaries; (2) the occurrence of any default or
Event of Default and the circumstances which give rise to the Banks option to
terminate the Credit Facilities to the extent the disclosure does not violate any Legal
Requirement; (3) any material additions to or material changes in its locations or
businesses, unless the Borrower has provided such information in writing to the Bank prior
to making such addition or such change; and (4) any alleged breach of any provision of
this agreement or of any other Related Documents by the Bank.
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| | 4.6 |  | Title to Assets and Property. Maintain good and marketable title to all of its
assets and properties and defend its assets and properties against all claims and demands
of all Persons at any time claiming any interest in them.
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| | 4.7 |  | Additional Assurances.Promptly make, execute and deliver any and all agreements,
documents, instruments and other records that the Bank may reasonably request to evidence
any of the Credit Facilities, cure any defect in the execution and delivery of any of the
Related Documents, perfect any Lien, comply with any Legal Requirement applicable to the
Bank or the Credit Facilities or more fully to describe particular aspects of the
agreements set forth or intended to be set forth in any of the Related Documents.
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| | 4.8 |  | Capitalization Status. Borrower shall maintain at all times: (1) its categorization
as Well Capitalized as defined by the regulations of the Borrowers
primary federal Government Authority; and (2) each financial institution Subsidiarys
categorization as Well Capitalized as defined by the regulations of each
respective Subsidiarys primary federal Government Authority.
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| | 4.9 |  | Consolidated Return On Assets Ratio. Borrower and its Subsidiaries shall maintain a
Consolidated Annualized Return On Assets Ratio of not less than: (i) zero and
30/100 percent (0.30%) for the Borrowers first fiscal quarter of 2006; (ii) zero and
40/100 percent (0.40%) for the Borrowers second fiscal quarter of 2006 and for the
third fiscal quarter of 2006; and (iii) zero and 50/100 percent (0.50%) for the
Borrowers fourth fiscal quarter of 2006 and for each fiscal quarter thereafter. As
used in this Section, the term Consolidated Annualized Return On Average Assets
Ratio means the ratio, determined on a consolidated basis for the Borrower and its
Subsidiaries, of net income to average total assets, with the numerator being computed for
the fiscal quarter for which this ratio is being determined and multiplied time four (4)
to annualize such number, and with the denominator being computed as of the end of the
fiscal quarter for which this ratio is being determined. This ratio will be determined
from the applicable quarterly financial statements filed with the applicable Governmental
Authority.
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| | 4.10 |  | Ownership of Stock. Borrower shall at all times maintain ownership of: (1) one
hundred percent (100%) of the capital stock of each of its financial institution
Subsidiaries (including, without limitation, Clarkston State Bank), except Huron Valley;
and (2) fifty-five percent (55%) of the capital stock of Huron Valley.
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| | 4.11 |  | Stock of Acquired Financial Institution Subsidiaries. Promptly after acquiring any
new financial institution Subsidiary, Borrower shall notify Bank and shall thereafter
promptly pledge all of the issued and outstanding shares of all classes of capital stock
of such financial institution Subsidiary to Bank by executing and delivering to the Bank a
Continuing Pledge Agreement and Stock Power(s), each in form and substance reasonably
satisfactory to Bank, and by delivering all stock certificates to Bank evidencing such
capital stock.
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| | 4.12 | Compliance
 Certificate.  Comply with each of the other additional  covenants,  if any, set forth
 in Exhibit A.
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|5. | Negative Covenants. Without the prior written consent of the Bank, the
          Borrower will not and no Subsidiary of the Borrower will:
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| | 5.1 |  | Indebtedness. Create, assume, incur, have outstanding, or in any manner become
liable in respect of any Indebtedness, other than (1) Indebtedness in favor of the Bank;
(2) Indebtedness incurred in the ordinary course of business (including, without
limitation, Federal Home Loan Bank borrowings, FRB Discount Window Program borrowings,
unsecured Fed Funds lines, and Reverse Repurchase Agreements) and in accordance with
applicable Legal Requirements and safe and sound banking practices; (3) Indebtedness
reflected in the Borrowers financial statements dated September 30, 2005, including,
without limitation, existing mortgage debt secured by mortgages on the real estate of the
Borrower and the Borrowers Subsidiaries; (4) additional Indebtedness contracted for
after the date of this agreement that does not exceed the amounts reflected in those
financial statements described in (3) above; (5) unsecured intercompany indebtedness among
the Borrower and the Borrowers Subsidiaries which is incurred in the ordinary course
of business; (6) purchase money debt incurred after the date of this agreement in an
aggregate principal balance at any time outstanding not at any time exceeding $500,000.00;
and (7) upon the approval of the Bank, Subordinated Debt.
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| | 5.2 |  | Liens. Create, assume, incur, suffer or permit to exist any Lien of any kind or
character upon or with respect to any of its assets or properties, whether now owned at
the date hereof or later acquired, or assign or otherwise convey any right to receive
income, other than (1) Liens in favor of the Bank, (2) existing Liens
disclosed in writing to the Bank, (3) Liens incurred in the ordinary course of business
securing current non-delinquent liabilities for taxes, workers compensation,
unemployment insurance, social security, and pension liabilities, (4) existing mortgage
liens on the real estate of the Borrower and the Borrowers Subsidiaries securing the
existing mortgage debt related thereto and which is presently secured thereby, and
replacement mortgage liens securing the refinancing of such debt and which are secured
only by the real estate which secured such related refinanced debt, and (5) purchase money
liens securing permitted purchase money debt, which purchase money liens are secured only
by the assets whose acquisition was financed by the related purchase money debt.
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| | 5.3 |  | Disposal of Interests in the Subsidiaries. Dispose of any stock or other interest
in the equity of any of its Subsidiaries, now owned or hereafter acquired, by sale,
assignment, lease or otherwise.
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| | 5.4 |  | Merger or Consolidations. (1) Dissolve; (2) merge or consolidate with any Person;
(3) lease, sell or otherwise convey a material part of its assets or business outside the
ordinary course of its business; (4) lease, purchase, or otherwise acquire a material part
of the assets of any other Person outside of the ordinary course of its business, except
for Permitted Acquisitions; or (5) agree to do any of the foregoing, except for Permitted
Acquisitions; provided, however, that notwithstanding the foregoing, any Subsidiary may
merge or consolidate with any other Subsidiary, or with the Borrower, so long as the
Borrower is the survivor.
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| | 5.5 |  | Use of Proceeds. Use, or permit any proceeds of the Credit Facilities to be used,
directly or indirectly, for the purpose of purchasing or carrying any margin
stock within the meaning of Federal Reserve Board Regulation U (Regulation
U). At the Banks request, the Borrower will furnish a completed Federal
Reserve Board Form U-1.
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| | 5.6 |  | Affiliate Transactions. Enter into any transaction or agreement with any Affiliate
except upon terms substantially similar to those obtainable from wholly unrelated sources.
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| | 5.7 |  | Subsidiaries. Form, create or acquire any Subsidiary that is not wholly owned by
the Borrower, except for Huron Valley, fifty-five percent (55%) of the capital stock of
which shall be owned at all times by Borrower following the issuance by Huron Valley of
its capital stock.
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| | 5.8 |  | Continuity of Operations. (1) Engage in any business activities substantially
different from those in which it is presently engaged; or (2) cease operations, liquidate,
change its name, dissolve, or sell any material assets out of the ordinary course of
business.
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| | 5.9 |  | Conflicting Agreements. Enter into any agreement containing any provision which
would be violated or breached by the performance of the Borrowers obligations under
this agreement or any of the other Related Documents.
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| | 5.10 |  | No Other Negative Pledge. Enter into any agreement with any Person other than the
Bank which prohibits or limits the ability of the borrower or any of its Subsidiaries to
create or permit to exist any Lien on any of its property, assets or revenues, whether now
owned or hereafter acquired.
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| | 5.11 |  | Government Regulation. (1) Be or become subject at any time to any Legal
Requirement (including, without limitation, the U.S. Office of Foreign Asset Control list)
that prohibits or limits the Bank from making any advance or extension of credit to the
Borrower or from otherwise conducting business with the Borrower; or (2) fail to provide
documentary and other evidence of the Borrowers identity as may be requested by the
Bank at any time to enable the Bank to verify the Borrowers identity or to comply
with any Legal Requirement, including, without limitation, Section 326 of the USA Patriot
Act of 2001, 31 U.S.C. Section 5318.
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|6. | Representations, Warranties and Covenants by the Borrower. To induce the
          Bank to enter into this agreement and to extend credit or other financial
          accommodations under the Credit Facilities, the Borrower represents and warrants
          as of the date of this agreement and as of the date of each request for credit
          under the Credit Facilities that each of the following statements is and shall
          remain true and correct throughout the term of this agreement and until all
          Credit Facilities and all amounts owing under the Notes and other Related
          Documents are paid in full:
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| | 6.1 |  | Organization and Status. (1) The Borrower is a Michigan corporation registered as a
federal bank holding company under the laws of the United States, and the Borrower and
each of its Subsidiaries are each duly organized, validly existing and in good standing
under the laws of its organization and is duly qualified to do business and is in good
standing under the laws of each states in which the ownership of its properties and the
nature and extent of the activities transacted by it makes such qualification necessary.
(2) The Borrower has no Subsidiary other than those listed on Annex I.
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| | 6.2 |  | Financial Statements. All financial statements delivered to the Bank are complete
and correct and fairly present, in accordance with generally accepted accounting
principles, consistently applied, the financial condition and the results of operations of
the Borrower and each Subsidiary, as at the dates and for the periods indicated. No
material adverse change has occurred in the assets, liabilities, financial condition,
business or affairs of the Borrower or any of its Subsidiaries since the dates of the
Borrowers financial statements dated September 30, 2005. Neither the Borrower nor
any of its Subsidiaries is subject to any instrument or agreement materially and adversely
affecting its financial condition, business or affairs.
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| | 6.3 |  | Enforceability. This agreement, the Notes, and the other Related Documents have
been duly authorized, executed and delivered by the Parties thereto and are valid and
binding agreements of the Parties, enforceable according to their terms, except as the
enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws
affecting creditors rights generally and subject to general principles of equity.
The execution, delivery and performance of this agreement, the Notes and the other Related
Documents and the obligations that they impose, do not violate any Legal Requirement,
conflict with any agreement by which any Party is bound, or require the consent or
approval of any Governmental Authority or other third party which has not been promptly
obtained in connection with the execution and delivery of this agreement and the other
Related Documents.
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.4 |  | Litigation. There is no litigation, claim, investigation, administrative proceeding
or similar action (including those for unpaid taxes) against the Borrower, any of its
Subsidiaries or any other Obligor pending or threatened, and no other event has occurred
which may in any one case or in the aggregate materially adversely affect the Borrower,
any of its Subsidiaries, any other Obligor or any of their respective financial condition
and properties, other than litigation, claims, or other events, if any, that have been
disclosed to and acknowledged by the Bank in writing or disclosed in the Borrowers
September 30, 2005, financial statements.
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.5 |  | Title and Rights. The Borrower and each of its Subsidiaries have good and
marketable title to its properties, free and clear of any Lien except for Lines disclosed
in writing to the Bank prior to the date of this agreement, and those permitted by this
agreement and the other Related Documents, including, without limitation, existing
mortgage liens on the real estate of the Borrower and the Borrowers Subsidiaries
securing the existing mortgage debt related thereto and which is presently secured
thereby. The Borrower and each of its Subsidiaries possess all permits, licenses, patents,
trademarks and copyrights required to conduct their respective businesses.
| | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

9

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| | 6.6 |  | Regulation U; Business Purpose. None of the proceeds of any of the Credit
Facilities will be used to purchase or carry, directly or indirectly, any margin stock or
for any other purpose which would make this credit a purpose credit within the
meaning of Regulation U or not an exempt transaction under Regulation U. All Credit
Facilities will be used for business purposes and for the express purposes that the
Borrower has informed the Bank that it will use the credit. None of the stock of the
Borrowers Subsidiaries is margin stock as defined in Regulation U.
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.7 |  | Capital Stock of the Borrowers Subsidiaries. (1) All of the issued and
outstanding capital stock of each of the Borrowers Subsidiaries, owned by the
Borrower (the Borrowers Current Subsidiaries
Shares) has been duly authorized, legally and validly issued, fully paid and
nonassessable, and the Borrowers Current Subsidiaries Shares are owned by the
Borrower, free and clear of all Liens, except as may exist for the benefit of the Bank;
(2) none of the Borrowers Current Subsidiaries Shares have been issued in
violation of any shareholders preemptive rights; and (3) there are, as of the date
of this agreement, no outstanding options, rights, warrants, plans, understandings or
other agreements or instruments obligating the Borrower to issue, deliver or sell, or
cause to be issued, delivered or sold, or contemplating or providing for the issuance of,
additional shares of the capital stock of the Borrowers Subsidiaries, or obligating
the Borrower or the Borrowers Subsidiaries to grant, extend or enter into any such
agreement or commitment.
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.8 |  | Regulatory Enforcement Actions. None of the Borrower, or any of its Subsidiaries,
or any of their respective officers or directors, is now operating under any effective
written restrictions agreed to by the Borrower or any of its Subsidiaries, or agreements,
memoranda, or written commitments by the Borrower or by any of its Subsidiaries (other
than restrictions of general application) imposed or required by any Governmental
Authority nor are any such restrictions threatened or agreements, memoranda or commitments
being sought by any Governmental Authority.
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.9 |  | No Liens. The Borrower is not a party to any agreement, instrument of undertaking
or subject to any other restriction pursuant to which the Borrower has placed, or will be
required to place (or under which any other Person may place), a Lien upon any of its
properties securing Indebtedness, either upon demand or upon the happening of a condition,
with or without any demand.
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.10 |  | Compliance. The Borrower and each of its Subsidiaries has filed all applicable tax
returns and paid all taxes shown thereon to be due, except those for which extensions have
been obtained and those which are being contested in good faith and for which adequate
reserves have been established. The Borrower and each of its Subsidiaries is in compliance
with all applicable material Legal Requirements and manages and operates (and will
continue to manage and operate) its business in accordance with good industry practices.
Neither the Borrower nor any of its Subsidiaries is in default in the payment of any other
indebtedness or under any agreement to which it is a party.
| | ---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10

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| | 6.11 |  | No Claims Against the Bank. There are no defenses or counterclaims, offsets or
adverse claims, demands or actions of any kind, personal or otherwise, that the Borrower
or any other Obligor could assert against the Bank, whether in connection with this
agreement, and of the Credit Facilities, or otherwise.
| | ---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.12 |  | Statements by Others. All statements made by or on behalf of the Borrower, any of
its Subsidiaries or any other of the Parties in connection with any Related Document
constitute the joint and several representations and warranties of the Borrower under this
agreement.
| | ---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.13 |  | Environment. The Borrower and each of its Subsidiaries have complied with
applicable Legal Requirements in each instance in which any of them have generated,
handled, used, stored or disposed of any hazardous or toxic waste or substance, on or off
its premises (whether or not owned by any of them). Neither the Borrower nor any of its
Subsidiaries has any material contingent liability for non-compliance with environmental
or hazardous waste laws. Neither the Borrower nor any of its Subsidiaries has received any
notice that it or any of its property or operations does not comply with, or that any
Governmental Authority is investigating its compliance with, any environmental or
hazardous waste laws.
| | ---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.14 |  | Continuing Representations. Each request for an advance or conversion or
continuation of an advance under any of the Credit Facilities shall constitute a
representation and warranty by the Borrower that all of the representations and warranties
set forth in this agreement shall b e true and correct on and as of such date with the
same effect as though such representations and warranties had been made on such date,
except to the extent that such representations and warranties are stated to expressly
relate solely to an earlier date.
| | ---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | Default/Remedies/Cure
Periods.
|-- | ------------------------------

| | 7.1 | Event
of Default.Each of the following is an "Event of Default":
| | --- | ----------------------------------------------------------------

| | A. | The Borrower, any of its Subsidiaries or any other Obligor fails to pay within
                    ten (10) days of the date when due any amount payable (1) under the Notes or
                    with respect to any of the other Liabilities; or (2) under any agreement or
                    instrument evidencing Indebtedness to any creditor other than the Bank.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | B. | The Borrower, or any of its Subsidiaries or any other Obligor (1) fails to
                    observe or perform or otherwise violates, or is in default of, any of the
                    Affirmative or Negative covenants contained in this agreement or any other term,
                    covenant, condition or agreement of any of the Notes or other Related Documents
                    (other than this agreement), and such violation continues for thirty (30) days
                    or more after notice thereof is given by the Bank to the Borrower; (2) makes any
                    materially incorrect or misleading representation, warranty, or certificate to
                    the Bank; (3) makes any materially incorrect or misleading representation in any
                    financial statement or other information delivered to the Bank; or (4) defaults
                    under the terms of any agreement or instrument relating to any Indebtedness
                    (other than the Indebtedness evidenced by the Notes) and the effect of such
                    default will allow the creditor to declare the Indebtedness due before its
                    maturity.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11

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| | C. | In the event (1) there is a default under the terms of any Related Document that
                    is not cured within any cure period specified therein; or (2) the Borrower fails
                    to comply with, or pay, or perform under any agreement, now or hereafter in
                    effect, between the Borrower and JPMorgan Chase & Co., or any of its
                    Subsidiaries or Affiliates or their successors and assigns and the failure to
                    comply with, pay or perform is not cured within any cure period specified in
                    such agreement.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | D. | The Borrower, any of its Subsidiaries or any other Obligor becomes insolvent or
                    unable to pay its debts as they become due.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------

| | E. | The Borrower, or any of its Subsidiaries or other Obligor (1) makes an
                    assignment for the benefit of creditors; (2) consents to the appointment of a
                    custodian, receiver, or trustee for itself or for a substantial part of its
                    assets; or (3) commences any proceeding under any bankruptcy, reorganization,
                    liquidation, insolvency or similar laws of any jurisdiction.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | F. | A custodian, receiver, conservator or trustee is appointed for the Borrower, any
                    Subsidiary of the Borrower or any other Obligor or for a substantial part of its
                    assets.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | G. | Proceedings are commenced against the Borrower, any Subsidiary of the Borrower
                    or any other Obligor under any bankruptcy, reorganization, liquidation, or
                    similar laws of any jurisdiction, and they remain undismissed for thirty (30)
                    days after commencement; or the Borrower any Subsidiary of the Borrower or any
                    other Obligor consents to the commencement of those proceedings.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | H. | If any of the borrowers assets having an aggregate fair market value in
                    excess of $50,000.00, in the Banks reasonable estimate, are attached,
                    seized, subjected to a writ, or are levied upon or become subject to any Lien
                    (with the exception of statutory Liens) or come within the possession of any
                    receiver, trustee, custodian or assignee for the benefit of creditors; or if a
                    notice of Lien, levy or assessment is filed of record or given to the Borrower
                    or any Subsidiary of the Borrower with respect to all or any of their respective
                    assets by any Governmental Authority.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | I. | The FRB, the FDIC, any State Authority, the OCC, the OTS, the SEC or any other
                    Governmental Authority issues a cease and desist order or similar regulatory
                    order, injunction, temporary restraining order, the assessment of civil monetary
                    penalties, articles of agreement, a memorandum of understanding, a capital
                    directive, a capital restoration plan, restrictions (other than board
                    resolutions adopted at the direction of a Governmental Authority) that prevent
                    or as a practical matter impair the payment of dividends by any of its
                    Subsidiaries, the payments of any Indebtedness by the Borrower or the conduct of
                    any or all of the business affairs of the Borrower or any of its Subsidiaries,
                    restrictions (other than board resolutions adopted at the direction of a
                    Governmental Authority) that make the payment of the dividends by any of its
                    Subsidiaries, the payment of Indebtedness by the Borrower or the conduct of any
                    or all of the business affairs of the Borrower or any of its Subsidiaries
                    subject to prior regulatory approval, a notice or finding under subsection 8(a)
                    of the Federal Deposit Insurance Act, as amended, or any similar enforcement
                    action, measure or proceeding.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

12

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| | J. | If the Borrower or any of its subsidiaries continues to be in default in any
                    payment of principal or interest for any other indebtedness for borrowed money
                    or in default in the performance of any other term, condition or covenant
                    contained in any agreement (including, but not limited to, an agreement in
                    connection with the acquisition of capital equipment on a title retention or net
                    lease basis), under which any such indebtedness is created the effect of which
                    default in performance is to cause or permit the holder of the indebtedness to
                    cause the indebtedness to become due prior to its stated maturity.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | K. | A change of control of the borrower shall occur or the borrower shall have the
                    option, exercisable on at least one Business Days prior notice, upon the
                    consummation, in whole or in part, of any transaction effecting any change of
                    control of the Borrower that, in either case, has been approved as such, or is
                    required to be approved by any Governmental Agency.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | L. | A material adverse change occurs in the assets, liabilities, actual or
                    prospective financial condition, business or affairs of the Borrower, any of its
                    Subsidiaries, or any other Obligor.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2 |  | Remedies. At any time after the occurrence of an Event of Default, the Bank may do
one or more of the following: (1) cease permitting the Borrower to incur any Liabilities;
(2) terminate any commitment of the Bank evidenced by any of the Notes; (3) declare any of
the Notes to be immediately due and payable, without notice of acceleration, intention to
accelerate, presentment and demand or protest or notice of any kind, all of which are
hereby expressly waived; (4) exercise all rights of setoff that the Bank may have
contractually, by law, in equity or otherwise; and (5) exercise any and all other rights
pursuant to any of the Related Documents, at law, in equity or otherwise. The rights of
the Bank under this agreement and the other Related Documents are in addition to other
rights (including without limitation, other rights of setoff) the Bank may have
contractually, by law, in equity or otherwise, all of which are cumulative and hereby
retained by the Bank. Each Obligor agrees to stand still with regard to the Banks
enforcement of its rights.
| | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8. | Miscellaneous.
|-- | --------------

| | 8.1 |  | Notice. Any notices and demands under or related to this document shall be in
writing and delivered to the intended party at its address and stated herein, and if to
the Bank, at its main office if no other address of the Bank is specified herein, by one
of the following means: (1) by hand, (2) by a nationally recognized overnight courier
service, or (3) by certified mail, postage prepaid, with return receipt requested. Notice
shall be deemed given (1) upon receipt if delivered by hand, (2) on the Delivery Day after
the day of deposit with a nationally recognized courier service, or (3) on the third
Delivery Day after the notice is deposited in the mail. Delivery Day
means a day other than a Saturday, a Sunday or any other day on which national banking
associations are authorized to be closed. Any party may change its address for purposes of
the receipt of notices and demands by giving notice of such change in the manner provided
in this provision.
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.2 |  | No Waiver. No delay on the part of the Bank in the exercise of any right or remedy
waives that right or remedy. No single or partial exercise by the Bank of any right or
remedy precludes any other future exercise of it or the exercise of any other right or
remedy. No waiver or indulgence by the Bank of any default is effective unless it is in
writing and signed by the Bank, nor shall a waiver on one occasion bar or waive that right
on any future occasion.
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

13

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| | 8.3 |  | Integration. This agreement, the Notes, and any agreement related to the Credit
Facilities embody the entire agreement and understanding of the borrower and the Bank and
supersede all prior agreements and understandings relating to their subject matter. If any
one or more of the obligations of the Borrower under this agreement or the Notes is
invalid, illegal or unenforceable in any jurisdiction, the validity, legality and
enforceability of the remaining obligations of the Borrower shall not in any way be
affected or impaired, and the invalidity, illegality or unenforceability in one
jurisdiction shall not affect the validity, legality or enforceability of the obligations
of the Borrower under this agreement or the Notes in any other jurisdiction.
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.4 |  | Joint and Several Liability. Each party executing this agreement as the Borrower is
individually, jointly and severally liable under this agreement.
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.5 |  | Choice of Law. THIS AGREEMENT SHALL BE DEEMED TO BE EXECUTED AND HAS BEEN DELIVERED
AND ACCEPTED IN DETROIT, MICHIGAN, BY SIGNING AND DELIVERING IT THERE. ANY DISPUTE BETWEEN
THE PARTIES HERETO ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE
RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS AGREEMENT, AND WHETHER
ARISING IN CONTRACT, TORT, EQUITY, OR OTHERWISE, SHALL BE RESOLVED IN ACCORDANCE WITH THE
INTERNAL LAWS AND NOT THE CONFLICTS OF LAW PROVISIONS OF THE STATE OF MICHIGAN.
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.6 |  | Consent to Jurisdiction. THE BANK AND THE BORROWER AGREE THAT ALL DISPUTES BETWEEN
THEM ARISING OUT OF, CONNECTED WITH, RELATED TO OR INCIDENTAL TO THE RELATIONSHIP
ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER RELATED
DOCUMENTS, AND WHETHER ARISING IN CONTRACT, TORT, EQUITY OR OTHERWISE, SHALL BE RESOLVED
ONLY BY STATE OR FEDERAL COURTS LOCATED IN DETROIT, MICHIGAN, BUT THE BANK AND THE
BORROWER ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT
LOCATED OUTSIDE OF WAYNE COUNTY, MICHIGAN. THE BORROWER WAIVES IN ALL DISPUTES ANY
OBJECTION THAT IT MAY HAVE TO THE LOCATION OF THE COURT CONSIDERING THE DISPUTE.
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.7 | Captions.
 Section  headings and titles are for  convenience  of reference only and do not affect
                  the interpretation of this agreement.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.8 |  | Creditors Proceedings. In any action or proceeding involving any state corporate
law, or any state, federal or foreign bankruptcy, insolvency, reorganization or other law
affecting the rights of creditors generally, if the obligations of the Borrower under this
agreement would otherwise be held or determined to be avoidable, invalid or unenforceable
on account of the amount of the borrowers liability under this agreement, then,
notwithstanding any other provision of this agreement to the contrary, the amount of such
liability shall, without any further action by the Borrower or the Bank, be automatically
limited and reduced to the highest amount that is valid and enforceable as determined in
such action or proceeding.
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

14

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| | 8.9 |  | Survival of Representations and Warranties. The Borrower understands and agrees
that in extending the Credit Facilities, the Bank is relying on all representations,
warranties, and covenants made by the Borrower and the other Parties in this agreement,
any other Related Documents or in any certificate or other instrument delivered by the
Parties. The Borrower further agrees that regardless of any investigation made by the
Bank, all such representations, warranties and covenants will survive the making of the
Credit Facilities and delivery to the Bank of this agreement, shall be continuing in
nature, and shall remain in full force and effect until such time as the Liabilities to
the Bank shall be paid in full.
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.10 |  | Non-Liability of the Bank. The relationship of the Borrower and the Bank created by
this agreement is strictly a debtor and creditor relationship and not fiduciary in nature,
nor is the relationship to be construed as creating any partnership or joint venture
between the Bank and the Borrower. The Borrower is exercising the Borrowers own
judgement with respect to the Borrowers business. All information supplied to the
Bank is for the Banks protection only and no other party is entitled to rely on such
information. There is no duty for Bank to review, inspect, supervise or inform the
Borrower of any matter with respect to the Borrowers business. The Bank and the
Borrower intent that the Bank may reasonably rely on all information supplied by the
Borrower or any other Parties to the Bank, together with all representations and
warranties given by the Borrower and the other Parties to the Bank, without investigation
or confirmation by the Bank and that any investigation or failure to investigate will not
diminish the Banks right to so rely.
| | ---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.11 |  | Indemnification of the Bank. The Borrower agrees to indemnify, defend and hold the
Bank its parent companies, subsidiaries, affiliates, their respective successors and
assigns and each of their respective shareholders, directors, officers, employees and
agents (collectively, the Indemnified Persons) harmless from any and
against all loss, liability, obligation, damage, penalty, judgment, claim, deficiency,
expense, interest, penalties, attorneys fees (including the fees and expenses of
attorneys engaged by the Indemnified Person at the Indemnified Persons reasonable
discretion) and amounts paid in settlement (Claims) to which any
Indemnified Person may become subject arising out of or relating to this agreement or the
collateral, except to the limited extent that the Claims are proximately caused by the
Indemnified Persons gross negligence or willful misconduct. The indemnification
provided for in this paragraph shall survive the termination of this agreement and shall
not be affected by the presence, absence or amount of or the payment or nonpayment of any
claim under, any insurance.
| | ---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.12 |  | Counterparts. This agreement may be executed in multiple counterparts, each of
which, when so executed, shall be deemed an original, but all such counterparts, taken
together, shall constitute one and the same agreement.
| | ---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.13 |  | Sole Discretion of the Bank. Whenever the Banks consent or approval is
required under this agreement, the decision as to whether or not to consent or approve
shall be in the sole and exclusive discretion of the Bank and the Banks decision
shall be final and conclusive.
| | ---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

15

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| | 8.14 |  | Recovery of Additional Costs. If the imposition of or any change in any law, rule,
regulation, or guideline, or the interpretation or application of any thereof by any court
or administrative or governmental authority (including any request or policy not having
the force of law) shall impose, modify, or make applicable any taxes (except federal,
state, or local income or franchise taxes imposed on the Bank), reserve requirements,
capital adequacy requirements, or other obligations which would (1) increase the cost to
the Bank for extending or maintaining the Credit Facilities; (2) reduce the amounts
payable to the Bank under the Credit Facilities; or (3) reduce the rate of return on the
Banks capital as a consequence of the Banks obligations with respect to the
Credit Facilities, then the Borrower agrees to pay the Bank such additional amounts as
will compensate the Bank therefore, within five (5) days after the Banks written
demand for such payment. The Banks demand shall be accompanied by an explanation of
such imposition or charge and a calculation in reasonable detail of the additional amounts
payable by the Borrower which explanation and calculations shall be conclusive in the
absence of manifest error.
| | ---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.15 |  | Conflicting Terms. If this agreement is inconsistent with any provision in any
Related Documents, the Bank shall determine, in the Banks sole and absolute
discretion, which of the provisions shall control any such inconsistency.
| | ---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.16 |  | Expenses. To the extent not prohibited by applicable law and whether or not the
transactions contemplated by this agreement are consummated, the Borrower is liable to the
Bank and agrees to pay on demand all reasonable costs and expenses of every kind incurred
(or charged by internal allocation) in connection with the negotiation, preparation,
execution, filing, recording, modification, supplementing and waiver of the Related
Documents, the making, servicing and collection of the credit Facilities and the
realization on any collateral, and any other amounts owed under the Related Documents,
including without limitation reasonable attorneys fees (including counsel for the
Bank that are employees of the Bank or its affiliates) and court costs. These costs and
expenses include without limitation any costs or expenses incurred by the Bank in any
proceeding involving any of the Parties or property of any of the Parties. The obligations
of the Borrower under this section shall survive the termination of this agreement.
| | ---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.17 |  | Reinstatement. The Borrower agrees that to the extent any payment or transfer is
received by the Bank in connection with the Liabilities, and all or any part of the
payment or transfer is subsequently invalidated, declared to be fraudulent or
preferential, set aside or required to be repaid or transferred by the Bank or paid or
transferred over to a trustee, receiver or any other entity, whether under any proceeding
or otherwise (any of those payments or transfers is hereinafter referred to as a
Preferential Payment), then this agreement and the Credit Facilities
shall continue to be effective or shall be reinstated, as the case may be, even if all
those Liabilities have been paid in full and whether or not the Bank is in possession of
the Notes and whether any of the Notes has been marked, paid, released or cancelled, or
returned to the Borrower and, to the extent of the payment, repayment or other transfer by
the Bank, the Liabilities or part intended to be satisfied by the Preferential Payment
shall be revived and continued in full force and effect as if the Preferential Payment had
not been made. The obligations of the Borrower under this section shall survive the
termination of this agreement.
| | ---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.18 |  | Severability. If any provision of this agreement cannot be enforced, the remaining
portions of this agreement shall continue in effect.
| | ---- |  | ---------------------------------------------------------------------------------------------------------------------------------------

16

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| | 8.19 |  | Assignments. The Borrower agrees that the Bank may provide any information or
knowledge the Bank may have about the Borrower or about any matter relating to the Notes
or the Related Documents to JPMorgan Chase & Co., or any of its subsidiaries or
affiliates or their successors, or to any one or more purchasers or potential purchasers
of the Notes or the Related Documents or any participation therein. The Borrower agrees
that the Bank may at any time sell, assign or transfer one or more interests or
participations in all or any part of its rights and obligations in the Notes to one or
more purchasers whether or not related to the Bank.
| | ---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.20 |  | Waivers.All Obligors jointly and severally waive notice, demand, presentment for
payment, notice of nonpayment, notice of acceleration, protest, notice of protest, and the
filing of suit and diligence in collecting the Notes and all other demands and notices,
and consents and agrees that the Obligors liabilities and obligations shall not be
released or discharged by any or all of the following, whether with or without notice to
the Obligor or any other Obligor, and whether before or after the maturity of the Notes:
(1) extensions of the time of payment; (2) renewals; (3) acceptances of partial payments;
and (4) releases or substitutions of any Collateral or any Obligor. The Bank may waive or
delay enforcing any of its rights without losing them. Each Obligor agrees that acceptance
of any partial payment shall not constitute a waiver and that waiver of any default shall
not constitute waiver of any prior or subsequent default. Any waiver affects only the
specific terms and time period stated in the waiver. No modification or waiver of this
Agreement is effective unless it is in writing and signed by the party against whom it is
being enforced. Nothing herein is intended to waiver or vary the duties of the Bank or the
rights of the Borrower in violation of any provision of the Uniform Commercial Code as
adopted in the State of Michigan, as amended from time to time, that would prohibit the
waiver or variation of those duties and rights by agreement of the parties.
| | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9. | USA PATRIOT ACT NOTIFICATION. The following notification is provided to
          the Borrower pursuant to Section 326 of the USA Patriot Act of 2001, 31 U.S.C.
          Section 5318:
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | IMPORTANT
INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To help the government fight the
funding of terrorism and money laundering activities, Federal law requires all financial
institutions to obtain, verify, and record information that identifies each person or
entity that opens an account, including any deposit account, treasury management account,
loan, other extension of credit, or other financial services product. What this means for
the Borrower: When the Borrower opens an account, if the Borrower is an individual Bank
will ask for the Borrowers name, taxpayer identification number, residential
address, date of birth, and other information that will allow Bank to identify the
Borrower, and if the Borrower is not an individual Bank will ask for the Borrowers
name, taxpayer identification number, business address, and other information that will
allow Bank to identify the Borrower. Bank may also ask, if the Borrower is an individual
to see the Borrowers drivers license or other identifying documents, and if
the Borrower is not an individual to see the Borrowers legal organizational
documents or other identifying documents.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10 |  | WAIVER OF SPECIAL DAMAGES.THE BORROWER WAIVES, TO THE MAXIMUM EXTENT NOT
PROHIBITED BY LAW, ANY RIGHT THE UNDERSIGNED MAY HAVE TO CLAIM OR RECOVER FROM THE BANK IN
ANY LEGAL ACTION OR PROCEEDING ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.
|-- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

17

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|11 |  | JURY WAIVER.THE BORROWER AND THE BANK VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND
UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE
(WHETHER BASED ON CONTRACT, TORT, OR OTHERWISE) BETWEEN THE BORROWER AND THE BANK ARISING
OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT AND THE RELATED DOCUMENTS. THIS PROVISION
IS A MATERIAL INDUCEMENT TO THE BANK TO PROVIDE THE CREDIT FACILITIES.
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | Borrower:CLARKSTON FINANCIAL CORPORATIONBy:           Name:           Title:           
| |  | ---------------------------------------------------------------------------------------------------------------------------------

| |  | Bank:JPMORGAN CHASE BANK, N.A.By:           Name:           Title:           
| |  | -----------------------------------------------------------------------------------------------------------------------

18

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# ANNEX 1 
SUBSIDIARIES

|Subsidiary Name and Address                 | State Where Organized | % Owned by the Borrower
and each Subsidiary, as applicable
|------------------------------------------- | --------------------- | ----------------------------------------------------------
|Clarkston State BankHuron Valley State Bank | MichiganMichigan      | 100%55%                                                   

---



# EXHIBIT A to Credit
Agreement between Clarkston Financial Corporation
(the Borrower) and JPMorgan Chase Bank, N.A. (the Bank) dated  as
of _______________________ 2005, as same may be amended, restated and supplemented in
writing.

REPORTING REQUIREMENTS,
FINANCIAL COVENANTS AND COMPLIANCE  CERTIFICATE FOR CURRENT REPORTING PERIOD ENDING
_____, 200__ (END DATE)

|A. | REPORTING PERIOD. THIS EXHIBIT WILL BE IN PROPER FORM AND SUBMITTED
          WITHIN 45 DAYS OF THE END OF EACH CALENDAR QUARTER INCLUDING THE LAST REPORTING
          PERIOD OF THE FISCAL YEAR.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

BORROWERS FISCAL
YEAR ENDS ON __________________, 200___.

---

|B.  Financial  Reporting.  The borrower  will provide the  following  financial  information  in
    Proper Form within the times indicated: | Compliance Certificate
|-------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------

|WHO | WHEN DUE | WHAT | (Circle)
|--- | -------- | ---- | --------

|The Borrower and the Borrower's Subsidiaries | (i)  Within  90  days  of  fiscal
year end | Annual report and financial statements (balance sheet, income statement, cash flow statement) audited (with
unqualified opinion) by independent certified public accountants satisfactory to the Bank and prepared in
accordance with generally accepted accounting principles, consistently applied on consolidated and consolidating
bases, accompanied by this Compliance Certificate. | Yes           No
|-------------------------------------------- | ------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------

| | (ii) Within 45 days of each Reporting Period End Date, including the final period of the fiscal year. | A copy of all call reports filed with any Governmental Authority for each of the Borrower's financial institution
Subsidiaries | Yes           No
| | ----------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------ | ----------------

| | (iii) Within 45 days of each Reporting Period End Date, excluding the final period of the fiscal year. | A copy of the Borrower's quarterly FRY-9 report as filed with the FRB. | Yes           No
| | ------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------- | ----------------

|C.
         Other Required Covenants to be maintained and/or to be specifically certified.  COMPLIANCE CERTIFICATE | 
|------------------------------------------------------------------------------------------------------------------ | 

|REQUIRED | ACTUAL REPORTED | Compliance(Circle)
|-------- | --------------- | ------------------

|(i)  Borrower shall maintain at all times the categorization of each of its financial institution Subsidiaries as
'Well Capitalized' as defined by the regulations of the applicable primary federal Governmental Authority.
[Section 4.8] | Each financial institution Subsidiary well Capitalized?
Yes                     No | Yes           No
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------- | ----------------

|(ii)  Borrower and its Subsidiaries shall maintain at all times a "Consolidated Return On Assets Ratio" of not
less than zero and 30/100 percent (0.30%) for the first fiscal quarter of 2006, zero and 40/100 percent (0.40%)
for the second and third fiscal quarters of 2006, and zero and 50/100 percent (0.50%) for the fourth fiscal
quarter of 2006 and thereafter.  [Section 4.9] | Consolidated Return on Assets Ratio _______% | Yes           No
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------- | ----------------

THE ABOVE SUMMARY REPRESENTS SOME OF
THE COVENANTS AND AGREEMENTS CONTAINED IN THE CREDIT AGREEMENT AND THE OTHER RELATED
DOCUMENTS AND DOES NOT IN ANY WAY RESTRICT OR MODIFY THE TERMS AND CONDITIONS OF THE
CREDIT AGREEMENT OR ANY OF THE OTHER RELATED DOCUMENTS. IN CASE OF CONFLICT BETWEEN THIS
EXHIBIT A AND THE CREDIT AGREEMENT OR ANY OF THE OTHER RELATED DOCUMENTS, THE CREDIT
AGREEMENT AND THE OTHER RELATED DOCUMENTS SHALL CONTROL.

The undersigned hereby further
certifies to the Bank that (a) Borrower is in currently in compliance with all terms,
covenants, conditions in the Credit Agreement and in each of the other Related Documents,
and all of Borrowers representations and warranties in the Credit Agreement and the
other Related Documents are currently true and correct, and (b) no default or event of
default has occurred and is currently continuing under the Credit Agreement or any of the
other Related Documents.

Executed this _______ day of
_________________________, 2005.

| |  | CLARKSTON FINANCIAL CORPORATIONBy:           Name:           Title:           
| |  | ------------------------------------------------------------------------------------------------------------------------