Document:

<PAGE>

                                                                    EXHIBIT 10.3
                              EMPLOYMENT AGREEMENT

      THIS EMPLOYMENT AGREEMENT (this "Agreement") is entered into as of
February 23, 2005, but effective as of January 1, 2005, by and between SUN
COMMUNITIES, INC., a Maryland corporation (the "Company"), and JEFFREY P.
JORISSEN (the "Executive").

                              W I T N E S S E T H:

      WHEREAS, the Company desires to continue the employment of the Executive,
and the Executive desires to continue to be employed by the Company, on the
terms and subject to the conditions set forth below.

      NOW, THEREFORE, in consideration of the mutual promises contained in this
Agreement, the parties agree as follows:

      1.    Employment.

            (a)   The Company agrees to employ the Executive and the Executive
accepts the employment, on the terms and subject to the conditions set forth
below. During the term of employment hereunder, the Executive shall serve as
Executive Vice President, Treasurer, Chief Financial Officer and Secretary of
the Company, and shall do and perform diligently all such services, acts and
things as are customarily done and performed by such officers of companies in
similar business and in size to the Company, together with such other duties as
may reasonably be requested from time to time by the Company's Chief Executive
Officer or the Board of Directors of the Company (the "Board"), which duties
shall be consistent with the Executive's positions as set forth above.

            (b)   For service as an officer and employee of the Company, the
Executive shall be entitled to the full protection of the applicable
indemnification provisions of the Articles of Incorporation and Bylaws of the
Company, as they may be amended from time to time.

      2.    Term of Employment.

            (a)   Subject to the provisions for termination provided below, the
term of the Executive's employment under this Agreement shall commence on
January 1, 2005 and shall continue thereafter for a period of six (6) years
ending on December 31, 2010; provided, however, that the term of this Agreement
shall be automatically extended for successive terms of one (1) year each
thereafter, unless either party notifies the other party in writing of its
desire to terminate this Agreement at least thirty (30) days before the end of
the term then in effect.

            (b)   Executive acknowledges and agrees that Executive is an
"at-will" employee and that Executive's employment may be terminated, with or
without cause, at the option of Executive or the Company.

      3.    Devotion to the Company's Business.

            The Executive shall devote his best efforts, knowledge, skill, and
his entire productive time, ability and attention to the business of the Company
during the term of this Agreement.

      4.    Compensation.

            (a)   During the term of this Agreement, the Company shall pay or
provide, as the case may be, to the Executive the compensation and other
benefits and rights set forth in paragraphs 4, 5 and 6 of this Agreement.

<PAGE>

            (b)   Base Compensation. As compensation for the services to be
performed hereunder, the Company shall pay to the Executive, during his
employment hereunder, an annual base salary (the "Base Salary") of Three Hundred
Fourteen Thousand Three Hundred Twenty Five Dollars ($314,325.00) per year,
payable in accordance with the Company's usual pay practices (including tax
withholding), but in no event less frequently than monthly.

            (c)   COLA Adjustment. At the beginning of each calendar year of
this Agreement, commencing with January 1, 2006, and on such date each year
thereafter (the "Adjustment Date"), the Base Salary shall be increased in
accordance with the increase, if any, in the cost of living during the preceding
one year as determined by the percentage increase in the Consumers Price
Index-All Urban Consumers (U.S. City Average/all items) published by the Bureau
of Labor Statistics of the U.S. Department of Labor (the "Index"). The average
Index for calendar years 2003 and 2004 shall be considered the "Base." The Base
Salary for the calendar year following each Adjustment Date shall be the Base
Salary specified in Paragraph 4(b) increased by the percentage increase, if any,
in the Index for the calendar year immediately preceding the Adjustment Date
over the Base. In the event the Index shall cease to be published or the formula
underlying the Index shall change materially from the formula used for the Index
as of the date hereof, then there shall be substituted for the Index such other
index of similar nature as is then generally recognized and accepted. In no
event shall the Base Salary during each adjusted calendar year be less than that
charged during the preceding year of this Agreement.

            (d)   Incentive Compensation. The Company shall pay to the Executive
incentive compensation ("Incentive Compensation") in an amount up to 100% of the
Base Salary for each calendar year that the Executive is employed under this
Agreement ("Bonus Year"), which Incentive Compensation shall be determined and
calculated with respect to each Bonus Year as follows: (i) if, in the sole
discretion of the Compensation Committee of the Board, the Executive fulfills
his individual goals and objectives for such Bonus Year as approved by the
Compensation Committee, the Executive shall receive Incentive Compensation in
the amount of 25% of the then current Base Salary; (ii) if, in the sole
discretion of the Compensation Committee, the Company achieves the FFO and
financial budget objectives approved by the Company's Board of Directors at the
beginning of such Bonus Year, the Executive shall receive Incentive Compensation
in the amount of 50% of the then current Base Salary; and (iii) the remaining
25% of the Incentive Compensation may be awarded to the Executive in the sole
discretion of the Compensation Committee for extraordinary performance during
such Bonus Year. The determination of the Incentive Compensation shall be made
by the Company no later than March 1 for the preceding Bonus Year by reference
to the Company's audited financial statements. Unless otherwise specified by the
Company's Chief Executive Officer, one-twelfth of such Incentive Compensation
shall be paid monthly during the year following such Bonus Year; provided,
however, in the event that the Executive voluntarily terminates his employment
under this Agreement pursuant to paragraph 7(a)(i) hereof or the Executive's
employment under this Agreement is terminated with "cause" pursuant to paragraph
7(a)(ii) hereof, the Executive shall not be entitled to any unpaid Incentive
Compensation.

            (e)   Disability. During any period that the Executive fails to
perform his duties hereunder as a result of incapacity due to physical or mental
illness (the "Disability Period"), the Executive shall continue to receive his
full Base Salary, Incentive Compensation and other benefits at the rate in
effect for such period until his employment is terminated by the Company
pursuant to paragraph 7(a)(iii) hereof; provided, however, that payments so made
to the Executive during the Disability Period shall be reduced by the sum of the
amounts, if any, which were paid to the Executive at or prior to the time of any
such payment under disability benefit plans of the Company.

                                        2
<PAGE>

      5.    Benefits.

            (a)   Insurance. The Company shall provide to the Executive life,
medical and hospitalization insurance for himself, his spouse and eligible
family members as may be determined by the Board to be consistent with the
Company's standard policies.

            (b)   Benefit Plans. The Executive, at his election, may
participate, during his employment hereunder, in all retirement plans, 401(K)
plans and other benefit plans of the Company generally available from time to
time to other executive employees of the Company and for which the Executive
qualifies under the terms of the plans (and nothing in this Agreement shall or
shall be deemed to in any way affect the Executive's right and benefits under
any such plan except as expressly provided herein). The Executive shall also be
entitled to participate in any equity, stock option or other employee benefit
plan that is generally available to senior executives of the Company. The
Executive's participation in and benefits under any such plan shall be on the
terms and subject to the conditions specified in the governing document of the
particular plan. Nothing contained in this Agreement shall be construed to
create any obligation on the part of the Company to establish any such plan or
to maintain the effectiveness of any such plan which may be in effect from time
to time.

            (c)   Annual Vacation. The Executive shall be entitled to four (4)
weeks vacation time each year, without loss of compensation. The Executive shall
not take more than fourteen (14) consecutive calendar days of vacation without
the prior approval of the Company's Chief Executive Officer. In the event that
the Executive is unable for any reason to take the total amount of vacation time
authorized herein during any year, he may accrue such unused time and add it to
the vacation time for any following year; provided, however, that no more than
ten (10) business days of accrued vacation time may be carried over at any time
(the "Carry-Over Limit"). In the event that the Executive has accrued and unused
vacation time in excess of the Carry-Over Limit (the "Excess Vacation Time"),
the Excess Vacation Time shall be paid to the Executive within ten (10) days of
the end of the year in which the Excess Vacation Time was earned based on the
Base Salary then in effect. Upon any termination of this Agreement for any
reason whatsoever, accrued and unused vacation time (not to exceed thirty (30)
business days) shall be paid to the Executive within ten (10) days of such
termination based on the Base Salary in effect on the date of such termination.
For purposes of this Agreement, one-twelfth (1/12) of the applicable annual
vacation time shall accrue on the last day of each calendar month that the
Executive is employed under this Agreement.

      6.    Reimbursement of Business Expenses.

            The Company shall reimburse the Executive or provide him with an
expense allowance during the term of this Agreement for travel, entertainment
and other expenses reasonably and necessarily incurred by the Executive in
connection with the Company's business. The Executive shall furnish such
documentation with respect to reimbursement to be paid hereunder as the Company
shall reasonably request.

      7.    Termination of Employment.

            (a)   The Executive's employment under this Agreement may be
terminated:

                  (i)   by either the Executive or the Company at any time for
any reason whatsoever or for no reason upon not less than sixty (60) days
written notice;

                  (ii)  by the Company at any time for "cause" as defined below,

                                        3
<PAGE>

without prior notice;

                  (iii) by the Company upon the Executive's "permanent
disability" (as defined below) upon not less than thirty (30) days written
notice; and

                  (iv)  upon the Executive's death.

            (b)   For purposes hereof, for "cause" shall mean: (i) a material
breach of any provision of this Agreement by Executive (if the breach is
curable, it will constitute cause only if it continues uncured for a period of
twenty (20) days after Executive's receipt of written notice of such breach from
the Company); (ii) Executive's failure or refusal, in any material manner, to
perform all lawful services required of him pursuant to this Agreement, which
failure or refusal continues for more than twenty (20) days after Executive's
receipt of written notice of such deficiency; (iii) Executive's commission of
fraud, embezzlement or theft, or a crime constituting moral turpitude, in any
case, whether or not involving Company, that in the reasonable good faith
judgment of the Company, renders Executive's continued employment harmful to the
Company; (iv) Executive's misappropriation of Company assets or property,
including, without limitation, obtaining reimbursement through fraudulent
vouchers or expense reports; or (v) Executive's conviction or the entry of a
plea of guilty or no contest by Executive with respect to any felony or other
crime that, in the reasonable good faith judgment of the Company, adversely
affects the Company or its reputation or business.

            (c)   For purposes hereof, the Executive's "permanent disability"
shall be deemed to have occurred if Executive has become unable to perform the
essential functions and responsibilities of his position with reasonable
accommodation, as required under the Americans with Disabilities Act, as the
same has and may be amended (the "ADA"), by virtue of a disability (as defined
under the ADA).

      8.    Compensation Upon Termination or Disability.

            (a)   In the event that the Company terminates the Executive's
employment under this Agreement without "cause" pursuant to paragraph 7(a)(i),
(i) the Executive shall be entitled to any accrued and unpaid Base Salary,
Incentive Compensation and benefits through the effective date of such
termination, prorated for the number of days actually employed in the then
current calendar year, which shall be paid by the Company to the Executive
within thirty (30) days of the effective date of such termination, and (ii)
subject to the Executive's execution of a general release of claims in a form
satisfactory to the Company, the Company shall pay the Executive monthly an
amount equal to one-twelfth (1/12) of the Base Salary (at the rate that would
otherwise have been payable under this Agreement) for a period of up to eighteen
(18) months if the Executive fully complies with paragraph 12 of this Agreement
(the "Severance Payment"). Notwithstanding the foregoing, the Company, in its
sole discretion, may elect to make the Severance Payment to the Executive in one
lump sum due within thirty (30) days of the Executive's termination of
employment and the Severance Payment shall not be due Executive if Executive is
entitled to Change in Control Benefits (as defined in paragraph 10 below).

            (b)   In the event of termination of the Executive's employment
under this Agreement for "cause" or if the Executive voluntarily terminates his
employment hereunder, the Executive shall be entitled to no further compensation
or other benefits under this Agreement, except only as to any accrued and unpaid
Base Salary and benefits through the effective date of such termination,
prorated for the number of days actually employed in the then current calendar
year.

            (c)   In the event of termination of the Executive's employment
under this Agreement due to the Executive's permanent disability or death, (i)
the Executive (or his

                                        4
<PAGE>

successors and assigns in the event of his death) shall be entitled to any
accrued and unpaid Base Salary, Incentive Compensation and benefits through the
effective date of such termination, prorated for the number of days actually
employed in the then current calendar year, which shall be paid by the Company
to the Executive or his successors and assigns, as appropriate, within thirty
(30) days of the effective date of such termination, and (ii) the Company shall
pay the Executive monthly an amount equal to one-twelfth (1/12) of the Base
Salary (at the rate that would otherwise have been payable under this Agreement)
for a period of up to twenty four (24) months if the Executive fully complies
with paragraph 12 of this Agreement (the "Disability Payment"); provided,
however, that payments so made to the Executive shall be reduced by the sum of
the amounts, if any, which: (i) were paid to the Executive at or prior to the
time of any such payment under disability benefit plans of the Company, and (ii)
did not previously reduce the Base Salary, Incentive Compensation and other
benefits due the Executive under paragraph 4(e) of this Agreement.
Notwithstanding the foregoing, the Company, in its sole discretion, may elect to
make the Disability Payment to the Executive in one lump sum due within thirty
(30) days of the Executive's termination of employment.

            (d)   Notwithstanding anything to the contrary in this paragraph 8,
the Company's obligation to pay, and the Executive's right to receive, any
compensation under this paragraph 8, including, without limitation, the
Severance Payment and the Disability Payment, shall terminate upon the
Executive's breach of any provision of paragraph 12 hereof. In addition, the
Executive shall promptly forfeit any compensation received from the Company
under this paragraph 8, including, without limitation, the Severance Payment and
the Disability Payment, upon the Executive's breach of any provision of
paragraph 12 hereof.

      9.    Resignation of Executive. Upon any termination of the Executive's
employment under this Agreement, the Executive shall be deemed to have resigned
from any and all offices and directorships held by the Executive in the Company
and/or any of the Affiliates (as defined below).

      10.   Effect of Change in Control.

      (a)   The Company or its successor shall pay the Executive the Change in
Control Benefits (as defined below) if there has been a Change in Control (as
defined below) and any of the following events has occurred: (i) the Executive's
employment under this Agreement is terminated in accordance with paragraph
7(a)(i) at any time within twenty-four (24) months after the Change in Control,
(ii) upon a Change in Control under paragraph 10(g)(ii), the Company or its
successor does not expressly assume all of the terms and conditions of this
Agreement, or (iii) there are less than twenty-four (24) months remaining under
the term of this Agreement (without regard to the last clause of paragraph 2
hereof).

      (b)   For purposes of this Agreement, the "Change in Control Benefits"
shall mean the following benefits:

            (i)   A cash payment equal to two and 99/100 (2.99) times the Base
      Salary in effect on the date of such Change in Control, payable within
      sixty (60) days of the Change in Control or, in the event that the
      cessation of Executive's employment hereunder triggers the Change in
      Control Benefits, payable within thirty (30) days after such cessation of
      employment; and

            (ii)  Continued receipt of all compensation and benefits set forth
      in paragraphs 5(a) and 5(b) of this Agreement, until the earlier of (i)
      one year following the Change in Control (subject to the Executive's COBRA
      rights) or (ii) the commencement of comparable coverage from another
      employer. The provision of any one benefit by another employer shall not
      preclude the Executive from continuing participation in

                                        5
<PAGE>

      Company benefit programs provided under this paragraph 10(b)(ii) that are
      not provided by the subsequent employer. The Executive shall promptly
      notify the Company upon receipt of benefits from a new employer comparable
      to any benefit provided under this paragraph 10(b)(ii).

      (c)   Notwithstanding anything to the contrary herein, (i) in the event
that the Executive's employment under this Agreement is terminated in accordance
with paragraph 7(a)(i) within sixty (60) days prior to a Change in Control, such
termination shall be deemed to have been made in connection with the Change in
Control and the Executive shall be entitled to the Change in Control Benefits;
and (ii) in the event that the Executive's employment under this Agreement is
terminated by the Company or its successor in accordance with paragraph 7(a)(i)
after a Change in Control and the Executive was not already entitled to the
Change in Control Benefits under paragraph 10(a)(iii), the Company or its
successor shall pay the Executive an amount equal to the difference between the
Change in Control Benefits and the amounts actually paid to the Executive under
this Agreement after the Change in Control but prior to his termination.

      (d)   The Change in Control Benefits are in addition to the acceleration
of the vesting of, and the extension of the time for exercise of, stock options
as a result of the Change in Control.

      (e)   Notwithstanding anything to the contrary contained herein, in the
event it shall be determined that any compensation payment or distribution by
the Company to or for the benefit of the Executive would be subject to the
excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as
amended (the "Code"), the Change in Control Benefits will be reduced to the
extent necessary so that no excise tax will be imposed, but only if to do so
would result in the Executive retaining a larger amount, on an after-tax basis,
taking into account the excise and income taxes imposed on all payments made to
the Executive hereunder.

      (f)   The Company shall pay to the Executive all reasonable legal fees and
expenses incurred by the Executive in obtaining or enforcing any right or
benefit provided by this paragraph 10, except in cases involving frivolous or
bad faith arbitration initiated by the Executive.

      (g)   For purposes of this Agreement, a "Change in Control" shall be
deemed to have occurred:

            (i)   if any person or group of persons acting together (other than
      (a) the Company or any person (I) who as of the date hereof was a director
      or officer of the Company, or (II) whose shares of Common Stock of the
      Company are treated as "beneficially owned" by any such director or
      officer, or (b) any institutional investor (filing reports under Section
      13(g) rather than 13(d) of the Securities Exchange Act of 1934, as
      amended, including any employee benefit plan or employee benefit trust
      sponsored by the Company)), becomes a beneficial owner, directly or
      indirectly, of securities of the Company representing fifty percent (50%)
      or more of either the then-outstanding Common Stock of the Company or the
      combined voting power of the Company's then-outstanding voting securities
      (other than as a result of an acquisition of securities directly from the
      Company);

            (ii)  if the Company sells all or substantially all of the Company's
      assets to any person (other than a wholly-owned subsidiary of the Company
      formed for the purpose of changing the Company's corporate domicile);

            (iii) if the Company merges or consolidates with another person as a
      result of

                                        6
<PAGE>

      which the shareholders of the Company immediately prior to such merger or
      consolidation would beneficially own (directly or indirectly), immediately
      after such merger or consolidation, securities of the surviving entity
      representing less than fifty percent (50%) of the then outstanding voting
      securities of the surviving entity; or

            (iv)  if the new directors appointed to the Board during any
      twelve-month period constitute a majority of the members of the Board,
      unless (I) the directors who were in office for at least twelve (12)
      months prior to such twelve-month period (the "Incumbent Directors") plus
      (II) the new directors who were recommended or appointed by a majority of
      the Incumbent Directors constitutes a majority of the members of the
      Board.

      For purposes of this paragraph 10(g), a "person" includes an individual, a
partnership, a corporation, an association, an unincorporated organization, a
trust or any other entity.

      11.   Stock Awards. In the event of termination of the Executive's
employment under this Agreement for "cause", all stock options or other stock
based compensation awarded to the Executive shall lapse and be of no further
force or effect whatsoever in accordance with the Company's equity incentive
plans. In the event that the Company terminates the Executive's employment under
this Agreement without "cause" or upon the death or permanent disability of the
Executive, all stock options and other stock based compensation awarded to the
Executive shall become fully vested and immediately exercisable, subject to the
restrictions of Section 9.02 of the Company's 1993 Stock Option Plan. Upon a
Change in Control, all stock options or other stock based compensation awarded
to the Executive shall become fully vested and immediately exercisable and may
be exercised by Employee at any time within one (1) year after the Change in
Control. All Stock Option Agreements between the Company and the Executive shall
be amended to conform to the provisions of this paragraph 11. In the event of an
inconsistency between this paragraph 11 and such Stock Option Agreements, this
paragraph 11 shall control.

      12.   Covenant Not To Compete and Confidentiality.

            (a)   The Executive acknowledges the Company's reliance on and
expectation of the Executive's continued commitment to performance of his duties
and responsibilities during the term of this Agreement. In light of such
reliance and expectation on the part of the Company, the Executive agrees that:

                  (i)   for a period commencing on the date of this Agreement
and ending upon the expiration of eighteen (18) months following the termination
of the Executive's employment under this Agreement for any reason, the Executive
shall not, either directly or indirectly, engage in, or have an interest in or
be associated with (whether as an officer, director, stockholder, partner,
associate, employee, consultant, owner or otherwise) any corporation, firm or
enterprise which is engaged in (A) the real estate business (the "Real Estate
Business"), including, without limitation, the development, ownership, leasing,
sales, management or financing of single family or multi-family housing,
condominiums, townhome communities or other form of housing, or (B) any business
which is competitive with the business then or at any time during the term of
this Agreement conducted or proposed to be conducted by the Company, or any
entity owned or controlled by the Company or under common control with the
Company (an "Affiliate"), anywhere within the continental United States or
Canada; provided, however, that the Executive may invest in any publicly held
entity engaged in the Real Estate Business if his investment in such entity does
not exceed one percent (1%) in value of the issued and outstanding equity
securities of such entity;

                  (ii)  the Executive will not at any time, for so long as any
Confidential Information (as defined below) shall remain confidential or
otherwise remain wholly or partially

                                        7
<PAGE>

protectable, either during the term of this Agreement or thereafter, use or
disclose, directly or indirectly, to any person outside of the Company or any
Affiliate any Confidential Information;

                  (iii) promptly upon the termination of this Agreement for any
reason, the Executive (or in the event of the Executive's death, his personal
representative) shall return to the Company any and all copies (whether prepared
by or at the direction of the Company or Executive) of all records, drawings,
materials, memoranda and other data constituting or pertaining to Confidential
Information;

                  (iv)  for a period commencing on the date of this Agreement
and ending upon the expiration of eighteen (18) months from the termination of
this Agreement for any reason, the Executive shall not, either directly or
indirectly, divert, or by aid to others, do anything which would tend to divert,
from the Company or any Affiliate any trade or business with any customer or
supplier with whom the Executive had any contact or association during the term
of the Executive's employment with the Company or with any party whose identity
or potential as a customer or supplier was confidential or learned by the
Executive during his employment by the Company; and

                  (v)   for a period commencing on the date of this Agreement
and ending upon the expiration of eighteen (18) months from the termination of
this Agreement for any reason, the Executive shall not, either directly or
indirectly, call upon, compete for or solicit for employment any person with
whom the Executive was acquainted while in the Company's employ.

      As used in this Agreement, the term "Confidential Information" shall mean
all business information of any nature and in any form which at the time or
times concerned is not generally known to those persons engaged in business
similar to that conducted or contemplated by the Company or any Affiliate (other
than by the act or acts of an employee not authorized by the Company to disclose
such information) and which relates to any one or more of the aspects of the
present or past business of the Company or any of the Affiliates or any of their
respective predecessors, including, without limitation, financial information,
business plans, prospects, opportunities which have been discussed or considered
by the management of the Company, and other trade secrets.

            (b)   The Executive agrees and understands that the remedy at law
for any breach by him of this paragraph 12 will be inadequate and that the
damages flowing from such breach are not readily susceptible to being measured
in monetary terms. Accordingly, it is acknowledged that, upon adequate proof of
the Executive's violation of any legally enforceable provision of this paragraph
12, the Company shall be entitled to immediate injunctive relief and may obtain
a temporary order restraining any threatened or further breach. Nothing in this
paragraph 12 shall be deemed to limit the Company's remedies at law or in equity
for any breach by the Executive of any of the provisions of this paragraph 12
which may be pursued or availed of by the Company. This paragraph 12 shall
survive the termination of this Agreement.

            (c)   Executive acknowledges and agrees that the covenants set forth
above are reasonable and valid in geographical and temporal scope and in all
other respects. If any court determines that any of the covenants, or any part
of any covenant, is invalid or unenforceable, the remainder of the covenants
shall not be affected and shall be given full effect, without regard to the
invalid portion. If any court determines that any of the covenants, or any part
of any covenant, is unenforceable because of its duration or geographic scope,
such court shall have the power to reduce the duration or scope, as the case may
be, and, enforce such provision in such reduced form. Executive and the Company
intend to and hereby confer jurisdiction to enforce the covenants upon the
courts of any jurisdiction within the geographical scope of such covenants. If
the courts of any one or more of such jurisdictions hold the covenants, or any
part

                                        8
<PAGE>

of any covenant, unenforceable by reason of the breadth of such scope or
otherwise, it is the intention of Executive and the Company that such
determination not bar or in any way affect the right of the Company to the
relief provided above in the courts of any other jurisdiction within the
geographical scope of such covenants as to breaches of such covenants in such
other respective jurisdictions. For this purpose, such covenants as they relate
to each jurisdiction shall be severable into diverse and independent covenants.

      13.   Arbitration. The parties agree that any and all disputes,
controversies or claims of any nature whatsoever relating to, or arising out of,
this Agreement or Executive's employment, whether in contract, tort, or
otherwise (including, without limitation, claims of wrongful termination of
employment, claims under Title VII of the Civil Rights Act, the Fair Labor
Standards Act, the Americans with Disabilities Act, the Age Discrimination in
Employment Act, or comparable state or federal laws, and any other laws dealing
with employees' rights and remedies), shall be settled by mandatory arbitration
administered by the American Arbitration Association under its National Rules
for the Resolution of Employment Disputes (the "Rules") and the following
provisions: (A) a single arbitrator (the "Arbitrator"), mutually agreeable to
the Company and Executive, shall preside over the arbitration and shall make all
decisions with respect to the resolution of the dispute, controversy or claim
between the parties; (B) in the event that the Company and Executive are unable
to agree on an Arbitrator within fifteen (15) days after either party has filed
for arbitration in accordance with the Rules, they shall select a truly neutral
arbitrator in accordance with the rules for the selection of neutral
arbitrators, who shall be the "Arbitrator" for the purposes of this paragraph
13; (C) the place of arbitration shall be Southfield, Michigan unless mutually
agreed otherwise; (D) judgment may be entered on any award rendered by the
Arbitrator in any federal or state court having jurisdiction over the parties;
(E) all fees and expenses of the Arbitrator shall be shared equally between
Company and Executive; (F) the decision of the Arbitrator shall govern and shall
be conclusive and binding upon the parties; (G) the parties shall be entitled to
reasonable levels of discovery in accordance with the Federal Rules of Civil
Procedure or as permitted by the Arbitrator, provided, however, that the time
permitted for discovery shall not exceed eight (8) weeks and each party shall be
limited to two (2) depositions; and (H) this provision shall be enforceable by
specific performance and/or injunctive relief, and shall constitute a basis for
dismissal of any legal action brought in violation of the duty to arbitrate. The
parties hereby acknowledge that it is their intent to expedite the resolution of
any dispute, controversy or claim hereunder and that the Arbitrator shall
schedule the timing of discovery and of the hearing consistent with that intent.
Notwithstanding anything to the contrary herein, nothing contained in this
paragraph shall be construed to preclude Company from obtaining injunctive or
other equitable relief to secure specific performance or to otherwise prevent
Executive's breach of paragraph 12 of this Agreement.

      14.   Notice. Any notice, request, consent or other communication given or
made hereunder shall be given or made only in writing and (a) delivered
personally to the party to whom it is directed; (b) sent by first class mail or
overnight express mail, postage and charges prepaid, addressed to the party to
whom it is directed; or (c) telecopied to the party to whom it is directed, at
the following addresses or at such other addresses as the parties may hereafter
indicate by written notice as provided herein:

            If to the Company:

                  Sun Communities. Inc.
                  27777 Franklin Road, Suite 200
                  Southfield, Michigan 48034
                  Fax: (248) 208-2641
                  Attn: Chief Executive Officer

                                        9
<PAGE>

            If to the Executive:

                  Jeffrey P. Jorissen
                  26165 Northpointe Drive
                  Farmington Hills, Michigan 48331

            In all events, with a copy to:

                  Jaffe, Raitt, Heuer & Weiss,
                  Professional Corporation
                  27777 Franklin Road
                  Suite 2500
                  Southfield, Michigan 48034
                     Attn: Arthur A. Weiss

      Any such notice, request, consent or other communication given or made:
(i) in the manner indicated in clause (a) of this paragraph shall be deemed to
be given or made on the date on which it was delivered; (ii) in the manner
indicated in clause (b) of this paragraph shall be deemed to be given or made on
the third business day after the day in which it was deposited in a regularly
maintained receptacle for the deposit of the United States mail, or in the case
of overnight express mail, on the business day immediately following the day on
which it was deposited in the regularly maintained receptacle for the deposit of
overnight express mail; and (iii) in the manner indicated in clause (c) of this
paragraph shall be deemed to be given or made when received by the telecopier
owned or operated by the recipient thereof.

      15.   Cooperation in Future Matters. Executive hereby agrees that, for a
period of 18 months following his termination of employment for any reason
whatsoever, he shall cooperate with the Company's reasonable requests relating
to matters that pertain to Executive's employment by the Company, including,
without limitation, providing information or limited consultation as to such
matters, participating in legal proceedings, investigations or audits on behalf
of the Company, or otherwise making himself reasonably available to the Company
for other related purposes. Any such cooperation shall be performed at scheduled
times taking into consideration Executive's other commitments, and Executive
shall be compensated at a reasonable hourly or per diem rate to be agreed upon
by the parties to the extent such cooperation is required on more than an
occasional and limited basis. Executive shall not be required to perform such
cooperation to the extent it conflicts with any requirements of exclusivity of
services for another employer or otherwise, nor in any manner that in the good
faith belief of Executive would conflict with his rights under or ability to
enforce this Agreement.

      16.   Miscellaneous.

            (a)   The provisions of this Agreement are severable and if any one
or more provisions may be determined to be illegal or otherwise unenforceable,
in whole or in part, the remaining provisions and any partially unenforceable
provision to the extent enforceable in any jurisdiction nevertheless shall be
binding and enforceable.

            (b)   Neither the Company nor the Executive may make any assignment
of this Agreement or any interest herein, by operation of law or otherwise,
without the prior written consent of the other party; provided that the Company
may assign its rights under this Agreement without the consent of the Executive
in the event that the Company shall effect a reorganization, consolidate with or
merge into another corporation, partnership, organization or other entity, or
transfer all or substantially all of its properties or assets to any other
corporation, partnership, organization or other entity. This Agreement shall
inure to the benefit of and be binding upon the Company and the Executive, their
respective successors, executors, administrators, heirs and permitted assigns.

                                       10
<PAGE>

            (c)   The failure of either party to enforce any provision or
protections of this Agreement shall not in any way be construed as a waiver of
any such provision or provisions as to any future violations thereof, nor
prevent that party thereafter from enforcing each and every other provision of
this Agreement. The rights granted the parties herein are cumulative and the
waiver of any single remedy shall not constitute a waiver of such party's right
to assert all other legal remedies available to it under the circumstances.

            (d)   This Agreement supersedes all agreements, understandings,
representations, warranties, negotiations and discussions between the parties
with respect to the subject matter hereof, including, without limitation, that
certain Employment Agreement, dated as of January 1, 1999. No modification,
termination or waiver shall be valid unless in writing and signed by the party
against whom the same is sought to be enforced.

            (e)   This Agreement shall be governed by and construed according to
the laws of the State of Michigan.

            (f)   Captions and paragraph headings used herein are for
convenience and are not a part of this Agreement and shall not be used in
construing it.

            (g)   This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

            (h)   Except as otherwise provided in paragraph 10(f) above, each
party shall pay his or its own fees and expenses, including, without limitation,
legal fees, incurred in connection with the transactions contemplated by this
Agreement, including, without limitation, any fees incurred in connection with
any arbitration arising out of the transactions contemplated by this Agreement.

                  [Remainder of page intentionally left blank]

                                       11
<PAGE>

      IN WITNESS WHEREOF, the parties have executed this Employment Agreement on
the date first written above.

                                      COMPANY:

                                      SUN COMMUNITIES, INC.,
                                      a Maryland corporation

                                      By:  /s/ Gary A. Shiffman
                                          ______________________________________
                                               Gary A. Shiffman, President and
                                               Chief Executive Officer

                                      EXECUTIVE:

                                       /s/ Jeffrey P. Jorissen
                                      __________________________________________
                                      JEFFREY P. JORISSEN

                                       12<PAGE>
                         EXECUTIVE EMPLOYMENT AGREEMENT

THIS AGREEMENT, dated ____________________, 2005 by and between American
Physicians Assurance Corporation, a Michigan insurance corporation having a
principal place of business in East Lansing, Michigan, its successors, assigns,
affiliates, and related companies (the "Company") and [     ] (the "Executive").

WHEREAS, the Executive currently serves as the [     ] of American Physicians
Capital, Inc.; and

WHEREAS, the Company desires to obtain the Executive's agreement to continue to
serve as [     ] of the Company and to obtain certain restrictions on the
Executive's potential competition with the Company during the term of the
Executive's employment and when and if Executive's employment with the Company
terminates; and

WHEREAS, the Company desires to employ the Executive in accordance with the
terms and conditions of this Agreement and Executive desires to be so employed
by the Company.

NOW, THEREFORE, in consideration of the mutual covenants and promises and other
valuable consideration, contained herein, the parties hereto hereby agree as
follows:

1.       EMPLOYMENT.

         The Company employs the Executive to render services as [     ] of
         American Physicians Capital, Inc., and the Executive accepts such
         employment, in accordance with the terms, and conditions hereinafter
         set forth. This Agreement supersedes and replaces in its entirety any
         prior or contemporaneous employment agreements or understandings
         between the Company, its present or former affiliates or subsidiaries,
         and the Executive.

2.       PLACE OF EMPLOYMENT.

         The Executive shall be located, and shall render such services (subject
         to necessary and appropriate business related travel), at the Company's
         office in East Lansing, Michigan. The Company may relocate Executive,
         subject to Executive's rights under Sections 6(d) involuntary
         termination.

3.       TERM.

         The term of the Executive's employment with the Company shall be for a
         period commencing on date signed and continue, unless terminated sooner
         under Section 6, for a period of one (1) year. Thereafter, the term
         shall automatically be extended for one (1) additional day for each
         successive day of the Executive's employment with the Company unless
         replaced, or unless terminated in accordance with Section 6, below.

4.       DUTIES AND RESPONSIBILITIES.

         (a)      At the commencement of this Agreement, the Executive is
                  employed by the Company in the position of [     ]. As such,
                  the Executive shall have duties and such authorities as are
                  consistent with such position subject to the direction of the
                  Board of Directors of American Physicians Capital, Inc.
                  ("ACAP"), the parent company of American

                                                                               1
<PAGE>

                  Physicians Assurance Corporation. The Company may change or
                  amend the duties of the Executive from time to time to other
                  duties or positions at a comparable level. References in this
                  Agreement to the "Board" shall be understood as references to
                  the ACAP Board.

         (b)      The Executive will devote exclusively his or her best efforts
                  and full working time to the performance of the duties of the
                  Executive's? position and will not engage in any other
                  employment during the term of this agreement, except that with
                  the prior approval of the Board, the Executive may serve as a
                  compensated member of the board of directors of other, "for
                  profit" unaffiliated corporations.

5.       COMPENSATION, INCENTIVE COMPENSATION & BENEFITS.

         In consideration for the services of the Executive to be performed
         hereunder, the Company shall compensate the Executive as follows:

         (a)      ANNUAL BASE SALARY. The Company shall pay to the Executive a
                  minimum annual base salary of $[    ], payable (less
                  applicable taxes) in accordance with Company normal payroll
                  practices. Under no circumstances shall the Executive's base
                  salary be reduced during the term of this Agreement. The
                  Executive's base salary shall be periodically reviewed by the
                  Compensation Committee of the ACAP Board and may be increased
                  as deemed warranted by the Compensation Committee.

         (b)      INCENTIVE COMPENSATION. The Executive will be eligible to
                  participate in any short-term incentive plan adopted for
                  senior executive staff. The Executive will also be eligible to
                  participate in long-term incentive plans available to other
                  senior executive employees.

         (c)      DISABILITY INSURANCE. During employment, the Company shall
                  maintain, at its expense, an individual long-term disability
                  insurance policy ("Policy") for the Executive providing the
                  Executive with benefits in the event of a disability as such
                  term is defined in the Policy (a "Disability"), provided the
                  Executive satisfies the eligibility requirements for coverage
                  under the disability insurance Policy which the Company has
                  chosen for its executive staff.

         (d)      PAID TIME OFF. The Executive shall be entitled to not less
                  than 5 weeks of paid time off, to be used for vacation and
                  occasional sick days, during each calendar year.

         (e)      OTHER EMPLOYMENT BENEFITS. During employment, the Executive
                  shall have the opportunity to participate in and shall be
                  entitled to receive benefits in accordance with the provisions
                  of any health, life insurance, disability, deferred
                  compensation, profit sharing or other employee benefit plan or
                  plans adopted, or to be adopted, by the Company and which are
                  generally applicable to other similarly situated senior
                  executive employees of the Company.

         (f)      BUSINESS EXPENSES. The Company shall pay or reimburse the
                  Executive promptly, upon presentation of appropriate vouchers,
                  for all necessary business travel and entertainment expenses
                  reasonably incurred by the Executive in connection with
                  Company business in accordance with Company policy.

                                                                               2
<PAGE>

6.       TERMINATION.

         Subject to the terms and conditions of this Agreement, the Company or
         the Executive may terminate the Executive's employment as provided
         below, and such termination shall not be deemed a breach of this
         Agreement.

         (a)      DEATH OR DISABILITY. The Executive's employment shall
                  terminate upon the Executive's death or Disability. Disability
                  is defined as meeting the requirements for benefits under the
                  long-term Disability Insurance Policy provided by the Company
                  for the Executive. If the Executive qualifies or may qualify
                  for disability benefits under the Policy, Executive agrees to
                  apply for such benefits in a timely basis and submit any
                  necessary medical and other information. If the Executive is
                  not covered by the Policy or is not entitled to disability
                  benefits under the Policy, the Company may determine that the
                  Executive is disabled and terminate the Executive's employment
                  by treating it as an Involuntary Termination under Section
                  6(d) of this Agreement.

         (b)      CAUSE. The Company may terminate the Executive's employment
                  under this Agreement for Cause. The Executive shall be given
                  written notice of termination, specifying with particularity
                  the basis for termination; and the Executive shall not in such
                  case have to be given an opportunity to cure the basis for
                  such Cause. For the purposes of this Agreement, the Company
                  shall have Cause upon: (A) the commission by the Executive of
                  dishonesty, or for intentional commission of a wrongful or
                  illegal act, or (B) for the willful and continued breach of
                  this Agreement, or (C) the willful and continued failure of
                  the Executive to comply with the policies or procedures of the
                  Company.

         (c)      VOLUNTARY RESIGNATION. The Executive may terminate his or her
                  employment for any reason whatsoever.

         (d)      INVOLUNTARY TERMINATION. The Company may terminate the
                  Executive's employment at any time for any reason or no
                  reason. A termination under Section 6(a) or (b) will not be
                  considered an Involuntary Termination. For the purpose of this
                  Agreement, Involuntary Termination includes, but is not
                  limited to, the termination of this agreement by the Company,
                  a permanent relocation of the Executive's duties that would
                  require the Executive to commute a distance of more than 90
                  miles further from the Executive's principal place of
                  employment (the Executive shall have 60 days from the
                  notification date of relocation to accept or decline continued
                  employment), or the resignation of Executive within 60 days
                  after an act by the Company which materially reduces the
                  Executive's duties and responsibilities, or a reduction in the
                  Executive's then current annual base salary. The Executive's
                  duties and responsibilities shall not be deemed materially
                  reduced solely by virtue of a change in reporting relationship
                  between the Executive and the Company.

         (e)      CHANGE IN CONTROL. At any time within one (1) year following
                  the date in which a Change in Control shall have occurred, the
                  Board may terminate the Executive's employment for any reason
                  whatsoever, or the Executive may terminate his Term of
                  employment as set forth below.

                  For purposes of this Agreement, a Change in Control means any
                  one of the following events:

                  (1)      The sale by American Physicians Capital, Inc.
                           ("ACAP") of all or substantially all of its assets to
                           a single purchaser or group of associated purchasers;

                                                                               3
<PAGE>

                  (2)      The sale, exchange or other disposition of ACAP, in
                           one transaction to any entity or entities not
                           affiliated with ACAP, of more than fifty percent
                           (50%) of the outstanding common stock of ACAP other
                           than by a sale, exchange, or disposition of the
                           common stock of ACAP resulting from a public or
                           private offering of common stock of which offering is
                           sponsored or initiated by ACAP and approved by its
                           Board;

                  (3)      The merger or consolidation of ACAP in a transaction
                           in which the stockholders of ACAP receive less than
                           fifty percent (50%) of the outstanding voting stock
                           of the new or continuing entity;

                  (4)      A change of more than 50% of the directors of the
                           ACAP Board within any 24-month period; except that, a
                           new director elected pursuant to nomination by a
                           majority of the directors continuing in office will
                           not be considered a change of a director for this
                           purpose.

                  (5)      At any time within one (1) year following the date on
                           which a Change in Control shall have occurred, the
                           Executive shall have the right to terminate the
                           Executive's employment upon written notice to the
                           Company.

         (f)      NOTICE OF TERMINATION. Any termination by the Company of the
                  Executive's employment pursuant to Section 6(b), (d) or (e)
                  must, in order to be effective, be preceded by a written
                  notice to the Executive ("Notice of Termination") indicating
                  the specific provision of this Agreement relied upon, and for
                  any termination under Section 6(b) setting forth in reasonable
                  detail the facts and circumstances supporting the termination
                  under the provision so indicated, and the Date of Termination.

         (g)      DATE OF TERMINATION. "Date of Termination" shall mean (A) if
                  the Executive's employment is terminated by the Executive's
                  death, the date of the Executive's death, or by reason of the
                  Executive's Disability, the date the conditions to constitute
                  a Disability have occurred, or if upon expiration of the Term,
                  the last day of the Term, (B) if the Executive's employment is
                  terminated by the Company pursuant to Section 6(b), 6(d) or
                  6(e), the date specified in the Notice of Termination, and (C)
                  if the Executive's employment is terminated by Executive
                  pursuant to Section 6(c) or 6(e) the date which is ten (10)
                  business days after the date of receipt of the Executive's
                  notice of intention to terminate or such other date as may be
                  agreed by the Executive and the Board.

7.       COMPENSATION AND BENEFITS UPON TERMINATION.

         (a)      DEATH OR DISABILITY. In the event of the Executive's
                  termination due to the Executive's death or Disability while
                  actively employed, the Company shall pay or provide to the
                  Executive ??or the Executive's named beneficiary (in the event
                  of the Executive's death):

                  i        Annual Base Salary - The Executive's earned but
                           unpaid base salary through the Date of Termination;

                  ii       Bonus - A prorated portion of the Executive's annual
                           bonus, if any, as determined by the Board based on
                           the actual performance by the Company during its
                           fiscal year of the Executive's death or Disability.
                           Such determination and payment will be made at the
                           same time that bonus consideration and payments, if
                           any, for other senior executives for the same
                           performance period are made; and

                                                                               4
<PAGE>

                  iii      Benefits - The Executive shall be paid or be provided
                           such other benefits for which the Executive is
                           entitled under the terms of any employee benefit plan
                           or program of the Company in which the Executive may
                           be, or may have been, a participant including any
                           earned but unpaid Paid Time Off through the Date of
                           Termination.

         (b)      CAUSE. In the event the Executive is terminated for Cause, the
                  Executive shall receive only such benefits, if any, as may be
                  provided to Executive under the terms of any employee benefit,
                  incentive, option, stock award and other plans or programs of
                  the Company in which Executive may be, or may have been, a
                  participant and shall be paid any balance of the Executive's
                  earned but unpaid Annual Base Salary and any Paid Time Off for
                  the period through the Date of Termination.

         (c)      VOLUNTARY RESIGNATION. In the event the Executive voluntarily
                  terminates his employment while actively employed, or breaches
                  this agreement following termination, the Company shall pay or
                  provide to the Executive only such benefits, if any, as may be
                  provided to him under the terms of any employee benefit plans
                  or programs of the Company in which the Executive may be, or
                  may have been, a participant, and shall be paid any balance of
                  the Executive's earned but unpaid Annual Base Salary and
                  accrued but unpaid Paid Time Off through the Date of
                  Termination.

         (d)      INVOLUNTARY TERMINATION/CHANGE OF CONTROL. In the event the
                  Executive's employment is involuntarily terminated under
                  Section 6(d) or Section 6(e), the Company shall pay or provide
                  to the Executive, subject to the Executive signing and
                  delivering to the Company a release and separation agreement
                  reasonably acceptable to the Company:

                  i.       Severance Pay - The Executive shall receive a
                           lump-sum severance payment equal to 24 months of the
                           Executive's then current base salary. Within 7 days
                           of the Date of Termination, the Company shall submit
                           to the Executive a release and separation agreement
                           which is consistent with the terms of this Agreement.
                           The severance payment under this subsection will be
                           paid to Executive within 7 days after the release and
                           separation agreement become final and binding; and

                  ii.      Bonus - The Executive shall receive one and one-half
                           times the greater of: the full year annual
                           performance bonus at 100% target for the calendar
                           year in which severance occurs, or the average of
                           last 2 performance bonuses paid to the Executive.
                           Such payment will be made within 7 days after the
                           release and separation agreement become final and
                           binding; and

                  iii.     Medical & Dental - The Executive shall, upon
                           finalization of the agreement and release, receive a
                           lump-sum payment in the amount of eighteen (18) times
                           the then current monthly premiums for the Executive's
                           medical and dental insurance. All other welfare and
                           insurance benefits shall cease as of the Date of
                           Termination; and

                  iv.      Benefit Payment - The Executive shall, upon
                           finalization of the agreement and release, receive a
                           lump-sum payment of $4,000 to be applied toward the
                           purchase of individual disability, life or any other
                           insurances or coverages that terminated upon the
                           Executive's Date of Termination; and

                                                                               5
<PAGE>

                  v.       Long-Term Incentive - The Executive shall receive all
                           awards made to the Executive under long-term
                           incentive plans or programs, pursuant to and subject
                           to the terms set forth in the incentive plans; and

                  vi.      401(k) Pension and Supplemental Benefits - The
                           Executive shall be paid or be provided such other
                           benefits for which the Executive is entitled under
                           the terms of any employee benefit plan or program of
                           the Company in which the Executive may be, or may
                           have been, a participant including any earned but
                           unpaid Paid Time Off through the Date of Termination;
                           and

                  vii.     The Company shall reimburse the Executive for
                           reasonable attorney fees incurred by the Executive in
                           connection with the enforcement of this Section 7(d).

8.       REDUCTION OF PAYMENTS.

         Notwithstanding any other provision of this Agreement or of any other
         agreement, understanding or compensation plan, the Company shall not
         pay, and the Executive shall not receive, any payment which, taking
         into account all payments, rights, and benefits whether or not under
         this Agreement, would be deemed to be an "excess parachute payment"
         under Section 280G of the Internal Revenue Code of 1986, as amended,
         and the amount of payment hereunder shall be reduced to the extent
         necessary to ensure that the Executive receives no "parachute payment"
         in connection with such Change in Control if, as determined by the
         Company, the reduction would be beneficial to the Executive.

9.       SUCCESSORS AND ASSIGNS.

         This Agreement shall not be terminated by voluntary or involuntary
         dissolution of the Company or by the merger or consolidation where the
         Company is not the surviving or resulting corporation. This Agreement
         is binding upon and will be enforceable by the Company and by its
         successors and by the assignees of all or substantially all of its
         business, and by any other corporation into which the Company may be
         merged or consolidated. Upon assignment of this Agreement by Company,
         the provisions of this Agreement, including but not limited to the
         provisions of Section 12, will be enforceable by the company receiving
         the assignment.

10.      NON-ASSIGNABILITY BY EXECUTIVE.

         The obligations of the Executive hereunder may not be assigned or
         transferred by the Executive in any manner whatsoever, nor are such
         obligations subject to involuntary alienation, assignment or transfer.

11.      RELATED COMPANIES.

         Notwithstanding Section 9, above, the Company may assign the Executive
         to perform services for other companies that are under common ownership
         or control with the Company, and may assign this Agreement to other
         companies that are under common ownership or control with the Company.
         Such assignment may be made without the Executive's consent.

                                                                               6
<PAGE>

12.      PROTECTION OF CONFIDENTIAL INFORMATION AND TRADE SECRETS; COMPANY
         BUSINESS ASSETS; NON-COMPETE AND NON-SOLICITATION.

         (a)      CONFIDENTIAL INFORMATION AND TRADE SECRETS. The Executive
                  acknowledges that he or she will be working with or exposed to
                  confidential information and trade secrets, which are the
                  property of the Company and/or its affiliates. Such
                  information includes, but is not limited to: client lists and
                  information; medical data; financial data; sales data;
                  marketing data; policyholder data; claims data; personnel
                  information; business files; contracts; documents; business
                  strategies; business opportunities; any and all information
                  pertaining to potential or actual corporate acquisitions,
                  mergers, consolidations, conversions, joint ventures, or other
                  similar agreements; computer software, software codes, and
                  software documentation, and other documents or information
                  deemed confidential by the Company and so designated to the
                  Executive. During and after employment with the Company, the
                  Executive agrees not to share such information with any person
                  outside of the Company, except upon prior written
                  authorization from the Company following notice to and
                  approval by its Board.

         (b)      COMPANY BUSINESS ASSETS. The Parties agree that the business
                  assets of the Company include information regarding Company
                  clients, and relationships with Company clients, and
                  confidential information and trade secrets of the Company,
                  including those items listed in Section 12 (a) above. The
                  Executive also agrees that the work product of the Executive
                  produced in the course of employment with Company will be the
                  property of Company and/or its affiliates. The Executive
                  agrees that the Company and/or its affiliates shall own the
                  copyright, patent, and other property rights in such work
                  product, and that this work product will be work made for hire
                  for copyright purposes. Upon termination of employment, the
                  Executive shall deliver to the Company all work product, and
                  all confidential information and trade secrets, including but
                  not limited to the items listed in Section 12 (a), and the
                  Executive shall not retain any copies. If there is any breach
                  or threatened breach by the Executive of the provisions of
                  this Section or Section 12 (a), the Company shall be entitled
                  to injunctive relief against the Executive or those persons or
                  entities with whom the Executive is then affiliated, and to
                  reasonable damages, including reasonable attorneys' fees. Such
                  reasonable damages shall include at a minimum but not
                  exclusively the amount of any benefit that the Executive would
                  receive from disclosing or using the information.

         (c)      NON-SOLICITATION. The Executive agrees that for a period of
                  one (1) year after termination of employment with the Company,
                  the Executive will not directly or indirectly solicit business
                  from or sell any service or product to any clients of the
                  Company or clients of any subsidiary or affiliate of the
                  Company for any types of insurance or other services or
                  products which are offered by or through the Company or its
                  affiliates. Clients include current insureds and any persons
                  or entity insured or serviced for a fee by the Company or its
                  affiliates during the one-year period preceding termination of
                  the Executive's employment. The Executive also expressly
                  agrees that for a period of two (2) years after termination of
                  employment with the Company, the Executive will not directly
                  or indirectly induce, attempt to induce, or enable or support
                  the inducement of any employee to depart from or cease
                  employment with the Company or its affiliates, nor will the
                  Executive interfere with or disrupt the Company's or its
                  affiliates' relationships with other employees. If there is
                  any breach or threatened breach of this Section, the Company
                  and its affiliates shall be entitled to injunctive relief
                  against the Executive or those persons or entities with whom
                  the Executive is then affiliated, and reasonable damages,
                  including reasonable attorneys' fees.

                                                                               7
<PAGE>

         (d)      NON-COMPETE. Executive agrees that for a period of one (1)
                  year after termination of employment, Executive will not
                  directly or indirectly accept a position with or provide any
                  managerial or executive services to any business entity which
                  competes with Company or Company's affiliates in their core
                  lines of business, including but not limited to professional
                  liability insurance in any states where Company or its
                  affiliates are doing business in the United States at the time
                  of termination. This non-compete provision applies to
                  providing services to a competitor in any capacity, directly
                  or indirectly, including as an employee, consultant, owner,
                  partner, shareholder (other than a minority shareholder in a
                  publicly traded corporation), and also applies to aiding or
                  assisting any other person or entity in providing such
                  services. Provided that, the Board or CEO of ACAP may give
                  prior written consent to the Executive accepting a position
                  which would otherwise be in violation of this non-compete
                  provision. If there is any breach or threatened breach of this
                  section, the Company and its affiliates shall be entitled to
                  injunctive relief against the Executive and those entities
                  with whom Executive is then affiliated, and reasonable
                  damages, including reasonable attorneys' fees.

         (e)      RETURN OF COMPANY PROPERTY. Immediately upon the termination
                  of the Executive's employment with the Company and at any time
                  upon the Company's request, the Executive shall deliver to the
                  Company all the Company property in the Executive's
                  possession, custody or control including notebooks, reports,
                  manuals, programming data, listings and materials, engineering
                  or patent drawings, patent applications, any other documents,
                  files or materials which contain, mention or relate to
                  Confidential Information, and all copies and summaries of such
                  materials whether in written, mechanical, electromagnetic,
                  analog, digital or any other format or medium.

         (f)      CONSENT TO MODIFICATION BY THE COURTS. It is the express
                  intention of the parties to this Agreement that, if it should
                  appear that any of the terms or covenants of this section are
                  in conflict with any rule of law or statutory provision of the
                  State of Michigan or any other jurisdiction where this
                  Agreement is being enforced, which conflict would ordinarily
                  render such terms or covenants inoperative or null and void,
                  the parties request that the Courts of such state modify any
                  such term or covenant so that the intention of the parties
                  hereto is carried out to as great a degree and extent as the
                  Court deems reasonable in order to conform with any rule of
                  law or statutory provision regarding restrictive covenants of
                  the State of Michigan or of such other jurisdiction.

13.      ARBITRATION OF DISPUTES.

         The Executive and the Company agree that any controversy or claim
         arising out of or relating to this Agreement, the breach thereof, or
         the coverage of this arbitration provision shall be settled by
         arbitration, rather than by litigation, administered by the American
         Arbitration Association in accordance with the National Rules for the
         Resolution of Employment Disputes in effect on the date of delivery of
         demand for arbitration. The Executive waives the right to submit any
         discrimination claims or other employment-related claims in a court
         proceeding, and elects instead to submit any such claims to
         arbitration. This Agreement to resolve disputes through arbitration is
         not a waiver of any of the Executive's substantive rights or remedies
         under law, and the arbitrator shall have the authority to grant any
         remedy or relief that could be granted in a court proceeding. The
         arbitration of such issues, including the determination of the amount
         of any damages suffered

                                                                               8
<PAGE>

         by either party hereto by reason of the acts or omissions of the other,
         shall be to the exclusion of any court. The decision of the arbitrators
         shall be final and binding on the parties and their respective heirs,
         executors, administrators, successors and assignees. Judgment upon the
         award rendered by the arbitrators may be entered in any court having
         jurisdiction. There shall be three arbitrators, one to be chosen
         directly by each party and the third arbitrator to be selected by the
         two arbitrators so chosen. The arbitration shall be conducted in
         Michigan or at such other location as agreed by the parties. All
         decisions and awards shall be made by a majority of the arbitrators.
         Each party shall pay the fees and expenses of that party's arbitrator
         and any representatives, witnesses and all other expenses related to
         the presentation of that party's case. The cost of the third
         arbitrator, the record or any transcripts, any administrative fees, and
         all other fees and costs shall be borne equally by the parties. The
         arbitrators shall have the authority to award reimbursement of
         reasonable attorneys' fees and other fees and expenses as part of the
         remedy, in accordance with applicable law.

         By agreeing to arbitration under this Section, the Company and the
         Executive understand that they are each waiving any right to a trial by
         jury and each party makes that waiver knowingly and voluntarily with
         full consideration of the ramifications of such waiver.

         Nothing contained herein shall be construed or interpreted to preclude
         the Company prior to, or pending the resolution of, any matter subject
         to arbitration from seeking injunctive relief in any court for any
         breach or threatened breach of any of the Executive's obligations in
         Section 12 hereof.

14.      RESOLUTION OF DISPUTES.

         The parties agree that this Agreement will be governed by and
         interpreted in accordance with the laws of the State of Michigan,
         without application of choice of law rules.

15.      RIGHT TO INJUNCTIVE AND OTHER RELIEF; CONSENT TO JURISDICTION.

         (a)      The Executive acknowledges that the Company will suffer
                  irreparable harm, not readily susceptible of valuation in
                  monetary damages, if the Executive breaches any of his
                  obligations in Section 12 of this Agreement. Accordingly, the
                  Executive agrees that the Company shall be entitled to
                  injunctive relief against any breach or prospective breach by
                  the Executive of his obligations in Section 12 in any federal
                  or state court of competent jurisdiction, and the Executive
                  hereby submits to the jurisdiction of any such federal or
                  state court in the State of Michigan for the purposes of any
                  actions or proceedings instituted by the Company to obtain
                  such injunctive relief. Nothing herein shall be construed as
                  prohibiting the Company from pursuing any other remedies
                  available to the Company for such breach or threatened breach,
                  including the recovery of damages from the Executive,

         (b)      In addition to the rights set forth in subsection (a), above,
                  if Executive breaches any of Executive's obligations under
                  Section 12 the Company shall be entitled to cease making
                  further payments to the Executive pursuant to clauses (i)
                  through (iv) of Section 7 (d), as well as pursuant to clause
                  (v) of Section 7 (d); and to terminate Executive's rights of
                  participation under clause (v) of Section 7 (d),

         (c)      This section shall survive the termination of the Executive's
                  Employment

                                                                               9
<PAGE>

16.      ENTIRE AGREEMENT.

         This written Agreement sets forth the entire Employment Agreement
         between the parties, and it supersedes all prior negotiations,
         employment interviews, communications, and understandings between the
         Parties whether written or oral. There are no other Employment
         Agreements between the Parties.

17.      AMENDMENT.

         This Agreement may not be changed orally but only by a written
         agreement that expressly references this Agreement, signed by the
         Executive and the Company's Chief Executive Officer, and approved by
         its Board of Directors.

18.      SEVERABILITY.

         The various Sections of this Agreement are severable. If any Section or
         an identifiable part thereof is held to be invalid or unenforceable by
         any court of competent jurisdiction, then such invalidity or
         unenforceability shall not affect the validity or enforceability of the
         remaining Sections or identifiable parts thereof in this Agreement. The
         parties hereto agree that the portion so held invalid, unenforceable or
         void shall, if possible, be deemed amended or reduced in scope, or
         otherwise be stricken from this Agreement, to the extent required for
         the purposes of the validity and enforcement hereof.

19.      BENEFICIARIES.

         The Executive may select (and change, to the extent permitted under any
         applicable law) a beneficiary or beneficiaries to receive any
         compensation or benefit payable under this Agreement following the
         Executive's death or disability, and may change such election by giving
         the Company written notice thereof. In the event of the Executive's
         death, Disability or a judicial determination of the Executive's
         incompetence, all references in this Agreement to the Executive shall
         be deemed, where appropriate, to refer to the Executive's named
         beneficiary, estate or other legal representative.

20.      NOTICES.

         All notices which a party is required or may desire to give to the
         other party under or in connection with this Agreement shall be
         sufficient if given by hand delivery or by addressing same to the other
         party as follows: (a) if to the Executive, to: the last known address
         of record with the Company, or (b) if to the Company, to: Attn:
         Secretary, American Physicians Assurance Corporation, 1301 North
         Hagadorn Road, East Lansing, MI 48823; or at such other place as may be
         designated in writing by like notice. Any notice shall be deemed to
         have been delivered when addressed as required herein and deposited
         postage prepaid, in the United States Mail.

21.      ACTION OF THE BOARD

         Any reference in this Agreement to the Board shall include the Board,
         the Compensation Committee thereof and any officers of the Company to
         which the Board or the Compensation Committee thereof has by resolution
         delegated any explicit authority or responsibilities with respect to
         this Agreement.

                                                                              10
<PAGE>

22.      TAX WITHHOLDINGS

         All payments to the Executive hereunder shall be subject to such
         withholding of federal, state and local income and excise taxes and to
         such employment taxes as may be reasonably determined by the Company to
         be required.

23.      SURVIVAL AND CONTINUATION OF AGREEMENT PROVISIONS.

         The termination of the Executive's employment for any reason whatsoever
         shall not operate to terminate this Agreement or otherwise adversely
         affect the respective continuing rights and obligations of the parties,
         including but not limited to, those under Sections 5(b), 7, 8, 9, 12,
         13, 15 and 20 of this Agreement, all of which shall survive the
         effective date of such termination of employment in accordance with
         their respective terms.

EXECUTIVE                             AMERICAN PHYSICIANS ASSURANCE CORPORATION

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

                                      AMERICAN PHYSICIANS CAPITAL, INC.

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

                                                                              11
<PAGE>
                              SUPPLEMENTAL SCHEDULE

In 2005, the Company entered into new Executive Employment Agreements with three
(3) officers. Except as set forth below, the three (3) Executive Employment
Agreements are substantially similar in all material respects to the form of
Executive Employment Agreement filed as an Exhibit and, therefore, the specific
Executive Employment Agreements for the each of the officers listed below have
been omitted.

<Table>
<Caption>
OFFICER                   TITLE                   SALARY        SUBJECT TO THE DIRECTION OF         DATE SIGNED
------------------------- ----------------------- ------------- ----------------------------------- -------------------
<S>                       <C>                     <C>           <C>                                 <C>
R. Kevin Clinton          President and Chief     $437,000      Board of Directors of APCapital     February 23, 2005
                          Executive Officer
                          (APCapital)

Frank H. Freund           Executive Vice          $300,000      President and Chief Executive       February 23, 2005
                          President, Treasurer,                 Officer and Board of Directors of
                          and Chief Financial                   APCapital
                          Officer (APCapital)

Annette E. Flood          Chief Operating         $200,000      President and Chief Executive       February 23, 2005
                          Officer (American                     Officer and Board of Directors of
                          Physicians)                           APCapital
</Table>

                                                                              12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]