Document:

Exhibit
        10.2 

       

      ECONOMIC
        AND APPLICATION AGREEMENT 

       

      This
        agreement made and entered into this 1st
        day of`
        August, 2004, by and between Birmingham Bloomfield Bancorp (hereinafter referred
        to as “Client”), whose mailing address is 3707 W. Maple Bloomfield Hills,
        Michigan and Dan Hudson dba Bankmark (hereinafter referred to as “Consultant”),
        whose principle office is located at 15950 North Dallas Parkway, Suite 525,
        Dallas, TX 75248.

       

      IN
        CONSIDERATION of the mutual agreement herein contained, it is mutually
        understood and agreed by and between the parties as follows: 

       

      
        	
                I.

              	
                NATURE
                  OF SERVICES 

              

      

       

      A. The
        consultant is hereby authorized to proceed with the engagement as detailed
        in
EXHIBIT
        A,
        which
        is considered an integral part of this Consulting Agreement, a copy of which
        is
        attached.

       

      The
        exact
        scheduling and extent of any additional actions relating to the project will
        be
        determined by mutual agreement between client and consultant. 

       

      In
        addition, the consultant may from time to time be requested to participate
        in
        other related activities. In such cases, the consultant and client will mutually
        agree as to whether they are included or stand outside this agreement.

       

      B. Any
        direct business expenses incurred by Consultant, including, but not limited
        to
        telephone, travel and the like, must be pre-approved by the client in order
        to
        qualify for reimbursement by them. 

       

      C. Consultant
        agrees to use his best efforts in conducting all of the activities related
        to in
        this Agreement. 

       

      D. The
        client agrees to supply the Consultant with all necessary data and required
        computations in
        the specific formats that may be requested by the
        Consultant
        at
        various points during the term of this agreement.

       

      E. Nothing
        contained herein shall be construed to create the relationship of Employer
        and
        Employee or Agent and Principal between the Client and Consultant. Consultant
        shall conduct his business as an Independent Contractor and shall have no
        authority to create, alter or amend any agreements or representations on
        behalf
        of the Client or to incur any liabilities for the Client. Consultant
        acknowledges that he is not an employee of the Client, and said Client is
        not
        obligated nor charged with the responsibility of withholding income taxes
        from
        any commissions due the Consultant, nor is the Client obligated to pay Social
        Security, Taxes, nor FICA taxes upon or for the Consultant. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      F. Consultant
        agrees to adhere to fair business principles and comply with all Federal,
        State
        and local laws and regulations either existing or pending. Consultant further
        agrees to file applications for licensing, bonding or other permits, and
        to pay
        all fees pertaining thereto as maybe required by any regulatory body.

       

      
        	
                II.

              	
                SOLICITATION
                  AND TERMINATION 

              

      

       

      A. Consultant
        agrees that he will not issue, distribute or circulate any advertising or
        promotional material, circulars or pamphlets relating to the Client unless
        and
        until it has been authorized and approved in writing by the Client. The
        Consultant shall withdraw any said material and discontinue its use immediately
        upon the Client’s written request to do so. 

       

      B. This
        Agreement may terminated by either party upon written notice. Upon the giving
        of
        said notice, the Client shall cause to be paid to Consultant any monies due
        Consultant, as herein provided, and Consultant, in turn, shall reimburse
        the
        Client for any monies, if any, by it advanced and not earned. 

       

      
        	
                III.

              	
                COMPENSATION
                  

              

      

       

      In
        consideration of the services performed hereunder by Consultant, Client will
        pay
        Consultant an amount based upon the work outlined in EXHIBIT A
        (attached)
        not to exceed that amount listed in EXHIBIT A.
        The
        terms and conditions listed in EXHIBIT A
        are
        considered an integral part o f this Consulting Agreement. 

       

      During
        the course of the engagement, invoices may be submitted representing progress
        payments for work completed. Such invoices and any balances thereof, are
        due
        within ten (10) days after presentation. 

       

      The
        above
        referred to fees shall constitute the only source of compensation to Consultant
        by Client.

       

      
        	
                IV.

              	
                CONTRACT
                  ENFORCEMENT 

              

      

       

      A. This
        agreement constitutes the entire agreement about understandings between the
        parties and supersedes any and all other agreements between the parties.
        

       

      B. No
        remedy
        granted to the parties by virtue of the Agreement shall be exclusive of any
        other legal or equitable remedy available to the parties existing by laws
        of
        statute. 

       

      
        	
                V.

              	
                MISCELLANEOUS
                  

              

      

       

      A. The
        parties agree and intend that all questions concerning this Agreement, including
        the validity, capacity of parties, effect, interpretation and performance
        shall
        be governed by the laws of the State where the Application is
        filed.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A 

       

      OVERVIEW
        OF ENGAGEMENT: 

      
        	 	
                ·

              	
                The
                  basic components of the assignment include the following main elements:
                  

              

      

      
        	 	
                ·

              	
                General
                  Consulting (Strategy development) 

              

      

      
        	 	
                ·

              	
                Prepare
                  materials for, and attend, pre-filing meeting(s) with Regulators
                  

              

      

      
        	 	
                ·

              	
                Meet
                  with proposed Directors to assist in completing their interagency
                  financial and biographical application forms

              

      

      
        	 	
                ·

              	
                Interview
                  individual Organizers to discuss their duties, responsibilities,
                  etc.
                  

              

      

      
        	 	
                ·

              	
                Develop
                  the Business Plan (in concert with Management) including the pro-forma
                  projections 

              

      

      
        	 	
                ·

              	
                Prepare
                  the complete new Joint Agency application (revised
                  March 2002)
                  for a Commercial Banking Charter, with the appropriate State Department
                  of
                  Banking, Office of the Comptroller of the Currency (OCC) and
                  FDIC

              

      

      
        	 	
                ·

              	
                Assistance
                  in the preparation of other required materials including, but not
                  limited
                  to:

              

      

      
        	 	
                o

              	
                CRA
                  Statement 

              

      

      
        	 	
                o

              	
                State
                  historical/environmental determination of sites selected for bank
                  facilities 

              

      

      
        	 	
                o

              	
                Salient
                  published legal notices 

              

      

      
        	 	
                o

              	
                Monitor
                  regulator processing of applications

              

      

      
        	 	
                o

              	
                Comply
                  with all requests by Regulators for clarification and/or additional
                  data
                  

              

      

      

      TERMS
        OF ENGAGEMENT: 

      
        	 	
                1)

              	
                Provide
                  Management/Directors with a course of action required to complete
                  the
                  regulatory applications. 

              

      

      
        	 	
                2)

              	
                Provide
                  Management with a specific outline of information required for
                  the
                  appropriate State Department of Banking, OCC and
                  FDIC.

              

      

      
        	 	
                3)

              	
                Prepare
                  Director/Organizer Interagency Financial and Biographical Forms
                  and other
                  required materials.

              

      

      
        	 	
                a.

              	
                Distribute
                  and collect all required regulatory “forms” with appropriate supplemental
                  instructions 

              

      

      
        	 	
                b.

              	
                Conduct
                  a meeting with Directors/Organizers to review the required information
                  needed to complete all forms 

              

      

      
        	 	
                c.

              	
                Answer
                  individual Director/Organizer CONFIDENTIAL questions and consult
                  with
                  their legal counsel if necessary on selected matters
                  

              

      

      
        	 	
                d.

              	
                Review
                  and edit completed Director/Organizer forms for accuracy and completeness
                  

              

      

      
        	 	
                e.

              	
                Follow
                  up with Directors/Organizers for form content clarification and
                  additional
                  information 

              

      

      
        	 	
                f.

              	
                Prepare
                  finalized biographical and financial forms for Director/Organizer
                  final
                  review. 

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                g.

              	
                Ensure
                  that all fingerprint cards are correctly prepared for both agencies.
                  

              

      

      
        	 	
                h.

              	
                Prepare
                  and review all regulatory release forms

              

      

      
        	 	
                i.

              	
                Examine
                  Director Qualifications and Related Experience

              

      

      
        	 	
                j.

              	
                Prepare
                  Director Job Description and Responsibilities

              

      

      
        	 	
                k.

              	
                Conduct
                  individual Director/Organizers Interviews to review and
                  clarify:

              

      

      
        	 	
                i.

              	
                Prior
                  financial institution experience 

              

      

      
        	 	
                ii.

              	
                Other
                  financial field related experience 

              

      

      
        	 	
                iii.

              	
                Other
                  organization Board experience 

              

      

      
        	 	
                iv.

              	
                Community/Professional
                  involvement 

              

      

      
        	 	
                v.

              	
                Individual
                  contribution as a potential board member

              

      

      
        	 	
                vi.

              	
                Other
                  relevant experience/contacts, etc. 

              

      

      
        	 	
                4)

              	
                Prepare
                  Management Section

              

      

      
        	 	
                a.

              	
                Assist
                  Management (“team” if applicable) in presenting his/their separate and
                  combined qualifications

              

      

      
        	 	
                i.

              	
                Review
                  resumes for review, update and revision

              

      

      
        	 	
                ii.

              	
                Banking
                  Experience (specifics re: lending, operational, and/or administration
                  background, etc.) 

              

      

      
        	 	
                iii.

              	
                Direct
                  and Indirect Board Experience 

              

      

      
        	 	
                iv.

              	
                Independent
                  Bank and Marketing Experience 

              

      

      
        	 	
                v.

              	
                Prepare
                  Job Description and Vitae for Senior Management candidates
                  

              

      

      
        	 	
                5)

              	
                Prepare
                  Facilities Information relating to:

              

      

      
        	 	
                a.

              	
                Physical
                  Location 

              

      

      
        	 	
                b.

              	
                Site
                  and floor plans 

              

      

      
        	 	
                c.

              	
                Tentative
                  purchase/lease agreement(s) 

              

      

      
        	 	
                d.

              	
                Tenant
                  improvements 

              

      

      
        	 	
                e.

              	
                Purchase/lease
                  of Furniture, Fixtures and Equipment

              

      

      
        	 	
                f.

              	
                Related
                  parties involvement with the premises and/or FF&E
                  

              

      

      
        	 	
                g.

              	
                State-National
                  Historical determination 

              

      

      
        	 	
                h.

              	
                Zoning
                  and environmental effect 

              

      

      
        	 	
                6)

              	
                Develop,
                  with Management, the Business Plan
                  including:

              

      

      
        	 	
                a.

              	
                Reflection
                  of Director/Management Philosophy and marketing strategy
                  

              

      

      
        	 	
                b.

              	
                Management
                  expertise and utilization 

              

      

      
        	 	
                c.

              	
                Director
                  expertise and utilization 

              

      

      
        	 	
                d.

              	
                Market
                  analysis

              

      

      
        	 	
                i.

              	
                An
                  overview of the market and opportunities

              

      

      
        	 	
                ii.

              	
                Current
                  demographics 

              

      

      
        	 	
                iii.

              	
                Specific
                  Goals and Objectives 

              

      

      
        	 	
                iv.

              	
                Market
                  growth and composition of “target” sectors

              

      

      
        	 	
                e.

              	
                Proforma
                  Financials (3 years, by quarters) in concert with
                  Management

              

      

      
        	 	
                i.

              	
                All
                  supporting schedules 

              

      

      
        	 	
                f.

              	
                Peer
                  Group Comparisons 

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                g.

              	
                Assumptions
                  and Footnotes 

              

      

      
        	 	
                7)

              	
                Prepare
                  Capital Adequacy Analysis 

              

      

      
        	 	
                8)

              	
                Prepare
                  the Required Proposed Market and Economic
                  Information

              

      

      
        	 	
                a.

              	
                Develop
                  supportive market information relative to the Strategic Market
                  Plan
                  

              

      

      
        	 	
                b.

              	
                Information
                  in support of regulatory “Convenience and Needs” requirements
                  

              

      

      
        	 	
                c.

              	
                Current
                  area development and projected economic growth data
                  

              

      

      
        	 	
                d.

              	
                Statistics
                  and other information regarding lending needs of the new bank’s market(s)
                  

              

      

      
        	 	
                9)

              	
                Prepare
                  Competitor data and analysis:

              

      

      
        	 	
                a.

              	
                Prepare
                  competitor/peer group data and trends

              

      

      
        	 	
                10)

              	
                Prepare
                  Miscellaneous Information
                  Regarding:

              

      

      
        	 	
                a.

              	
                Correspondent
                  banking relationships 

              

      

      
        	 	
                b.

              	
                Guidance
                  in preparing, and review of, regulatory mandated policies manuals
                  

              

      

      
        	 	
                c.

              	
                Director
                  Board and Committee duties and assignments

              

      

      
        	 	
                d.

              	
                Risk
                  Management Coverage (insurance) 

              

      

      
        	 	
                e.

              	
                Data
                  Processing plans: vendor, in-house, etc.

              

      

      
        	 	
                f.

              	
                Other
                  relevant information 

              

      

      
        	 	
                11)

              	
                Summary
                  and Conclusions Regarding the Application’s Merit, Strengths, and Market
                  Position 

              

      

      
        	 	
                12)

              	
                Miscellaneous
                  and Related Consultant
                  Responsibilities

              

      

      
        	 	
                a.

              	
                “Packaging”
                  of the applications (printing, proper format, required number of
                  copies,
                  etc.) 

              

      

      
        	 	
                b.

              	
                Interface
                  with Office of Historic Preservation regarding historical determination
                  of
                  sites 

              

      

      
        	 	
                c.

              	
                Address
                  zoning and environmental concerns 

              

      

      
        	 	
                d.

              	
                Provide
                  required Legal Notices for Newspaper publication
                  

              

      

      
        	 	
                e.

              	
                Coordination
                  with regulatory agencies and other consultants

              

      

      
        	 	
                f.

              	
                Follow-tip
                  and monitoring of regulatory agencies

              

      

      
        	 	
                g.

              	
                Provide
                  regulators with clarification of critical issues when requested
                  

              

      

      
        	 	
                h.

              	
                Provide
                  Organizers with regular updates and status reports regarding the
                  application progress. 

              

      

      

      TIMING
        

      TIME
        IS
        OF THE ESSENCE. THEREFORE, DUE DATES RELATING TO THE PROJECT TIMELINE ARE
        DEPENDENT UPON THE TIMELY COMPLETION AND SUBMISSION OF ALL MATERIALS REQUESTED
        BY THE CONSULTANT. This being the case, the application could be ready to
        submit
        to the regulators within 75 days from the signing of this agreement,
        the
        tendering of the initial payment and the completion of ALL requested
        Organizer/management data, information and responsibilities. Any delay in
        the
        receipt of necessary information or the submission of incomplete or inaccurate
        data by the client will cause a delay in the above described application
        process. It is therefore imperative that all Organizers meet their obligations
        and respective deadlines. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      FEE
        SCHEDULE: 

      The
        fee,
        for performing the above detailed consulting service is based upon the placement
        of a head office in Birmingham, Michigan plus a separate banking office in
        another location within the state of Michigan to be mutually agreed upon
        by the
        client and consultant, is $85,000.
        This
        includes processing a maximum of twenty (20) organizers, excluding
        management. Additional organizers can be included in the application at a
        cost
        of $300.00 each.

      

      
        	 	
                ·

              	
                Payment
                  #1 ($35,500)
                  is
                  due and payable upon signing this agreement.

              

      

      
        	 	
                ·

              	
                Payment
                  #2 ($32,750)
                  ($36,750 - $4,000 paid prior to execution of contract) is due and
                  payable
                  within 10 days of the date the consultant files the Joint
                  Interagency
                  application with the regulatory
                  agencies.

              

      

      
        	 	
                ·

              	
                Payment
                  #3 of $12,750
                  is
                  due and payable upon the funding of the organizational loan, or
                  five
                  (5) calendar months following the date of this contract,
                  whichever
                  occurs first. 

              

      

      

      Let
        it be clearly,
        understood that the consulting service rendered, is not a guarantee that
        the
        regulators will approve the application. Therefore, any payment to the
        Consultant is not based upon whether the application is accepted or approved
        by
        either the State Department of Banking for which the application is filed,
        the
        OCC, or the FDIC.

      

      Out-of-pocket
        expenses: 

      Client
        will pay for the cost of the postage/delivery, copying and binding of all
        documents required by the regulators and any additional copies the Client
        may
        wish. The consultant will provide, at no cost to the Client, one copy of
        each
        Director/Organizer’s personalized and confidential data and one complete copy of
        the application for the corporate files. 

      

      Travel
        expense: 

      The
        Consultant
        will
        absorb the full cost of travel and lodging for up to nine (9) necessary on-site
        visits during the process of completing the required application. The
        Client and Consultant
        will
        equally share in the cost of the next two (2) on-site visits, if necessary,
        all additional visits will be borne wholly by the
        Client.
        

      

      Let
        it be
        further understood that if for any reason the client chooses to or causes
        the
        project to abort, fees will be charged on an hourly basis. Such fees will
        only
        be charged on that work performed BEFORE the date of receipt of official
        notification (verbal, followed by written confirmation) in lieu of the fee
        schedule described above. Expenses incurred to-date of discontinuance of
        work
        also will be billed. The fee charged under such a condition will be based
        as
        follows: 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 	
                ·

              	
                Analysis
                  and preparation of applications, Regulator meetings/Tele-conferences,
                  development of the Business Plan and, economic research/analysis,
                  and
                  Management consultation, @ $150/hour

              

      

      
        	 	
                ·

              	
                Preparation
                  of Director biographical and Financial forms @ $100/hour
                  

              

      

      
        	 	
                ·

              	
                Coordination,
                  auditing and validating materials for the application @ $75/hour;
                  

              

      

      
        	 	
                ·

              	
                Computer
                  input, proof reading, etc. @ $35/hour.

              

      

      
        	 	
                ·

              	
                As
                  motivation for BOTH parties to fulfill their duties and responsibilities
                  and ensure that the project will proceed expeditiously, the following
                  terms and conditions are therefore incorporated into this agreement.
                  

              

      

      
        	 	
                ·

              	
                The
                  Organizers will return completed biographical and financial forms
                  to
                  consultant within 15 days of receipt of such forms.
                  

              

      

      
        	 	
                ·

              	
                The
                  Organizers will respond to requests for information-in
                  a timely manner and will review, sign and return the final submission
                  copies of all documents within 7 days after the consultant’s review
                  and preparation 

              

      

      

      Site
        (location) information and tentative lease(s) will be available by the 70th
        day
        from signing this agreement (the FDIC, in particular, reviews the location
        leases very closely.) 

      

      The
        work
        will be performed by Bankmark’s Internal Research Department and possibly (in
        total or in part) by the following consultants: 

      
        	 	
                ·

              	
                Robert
                  Steiner, Steiner & Associates

              

      

      
        	 	
                ·

              	
                Bobbe
                  Sigler, Management Consultant 

              

      

      
        	 	
                ·

              	
                Rick
                  Childs, Crowe Chizek & Co., LLP

              

      

      
        	 	
                ·

              	
                Peter
                  Gilbert, Management Consultant

              

      

      
        	 	
                ·

              	
                Dennis
                  Ceklovsky, DFC Consulting

              

      

      
        	 	
                ·

              	
                Bryan
                  Hyzdu, Management Consultant

              

      

      

      All
        those
        listed above are either current or former bankers with experience in executive
        banking positions, and have all been part of the application
        process.

      

      To
        expedite, facilitate and enhance the application process, Bankmark reserves
        the
        right, based on the project’s needs and complexities, to assign said specialists
        as aforetomentioned, all of which have in-depth experience in the preparation
        of
        de nova bank applications and are currently working with Bankmark on other
        projects. Bankmark, from time to time, may add other specialists as deemed
        necessary to complete the work in a timely manner. Bankmark warrants that
        these
        individuals will have comparable experience to the associates listed above
        and
        will have the ability to complete the task at hand. 

      

      The
        details of this Exhibit are hereby acknowledged and agreed to by both parties
        and are thus an integral part of the foregoing Economic and Application
        Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      By: /S/ Dan
        Hudson    Date:  8/1/04   

      Dan
        Hudson

      

      

      By: /S/
        Robert E. Farr          Date:  8/22/04  

      Robert
        E.
        FarrBIRMINGHAM
        BLOOMFIELD BANCSHARES

      200_
        STOCK INCENTIVE PLAN

      

      1. PURPOSE

      

      The
        200_
        Stock Incentive Plan (“Plan”) is intended to promote shareholder value by (a)
        enabling Birmingham Bloomfield Bancshares (“Company”) and its affiliates to
        attract and retain the best available individuals for positions of substantial
        responsibility; (b) providing additional incentive to such persons by affording
        them an equity participation in the Company; (c) rewarding those directors,
        executive officers, employees and other non-employee shareholders for their
        contributions to the Company or Bank of Birmingham (“Bank”); and (d) promoting
        the success of the Company’s business by aligning the financial interests of
        directors, executive officers and employees providing personal services to
        the
        Company or its affiliates with long-term shareholder value. 

      

      2. DEFINITIONS

      

      (A) “Act”
        means the Securities Exchange Act of 1934, as amended, or any successor
        provisions.

      

      (B) “Affiliate”
        means (i) any entity that, directly or indirectly, is controlled by the Company,
        (ii) an entity in which the Company has a significant equity interest, (iii)
        an
        affiliate of the Company, as defined in Rule 12b-2 promulgated under the
        Act,
        (iv) any Subsidiary and (v) any entity in which the Company has at least
        twenty
        percent (20%) of the combined voting power of the entity’s outstanding voting
        securities, in each case as designated by the Board of Directors as being
        a
        participant employer in the Plan. For purposes of this Plan and without further
        designation by the Board of Directors, the Bank shall be deemed an Affiliate.
        

      

      (C) “Bank”
        means Bank of Birmingham, a Michigan state bank.

      

      (D) “Board
        of
        Directors” means the board of directors of the Company.

      

      (E) “Change
        of Control” means:

      

      (i) the
        acquisition by any individual, entity or “group,” within the meaning of section
        13(d)(3) or section 14(d)(2) of the Act (other than the current members of
        the
        boards of directors of the Company or the Bank or any of their descendants,
        the
        Company, the Bank, or any savings, pension or other benefit plan for the
        benefit
        of the employees of the Company or the Bank or subsidiaries thereof)(a
“Person”), of beneficial ownership (within the meaning of Rule 13d-3 promulgated
        under the Act) of voting securities of the Company or the Bank where such
        acquisition causes any such Person to own fifty percent (50%) or more of
        the
        combined voting power of the Company’s or Bank’s then outstanding capital stock
        then entitled to vote generally in the election of directors;

      

      (ii) within
        any twelve-month period, the persons who were directors of the Company
        immediately before the beginning of the twelve-month period (the “Incumbent
        Directors”) shall cease to constitute at least a majority of the Board of
        Directors; provided that any individual becoming a director subsequent to
        the
        beginning of such twelve-month whose election, or nomination for election
        by the
        Company’s shareholders, was approved by at least two-thirds of the directors
        then comprising the Incumbent Directors shall be considered as though such
        individual were an Incumbent Director unless such individual’s initial
        assumption of office occurs as a result of either an actual or threatened
        election contest (as such terms are used in Rule 14a-11 of Regulation 14A
        promulgated under the Act);

      

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      (iii) a
        reorganization, merger, consolidation or other corporate transaction involving
        the Company or the Bank, in each case, with respect to which the shareholders
        of
        the Company or the Bank, respectively, immediately prior to such transaction
        do
        not, immediately after the transaction, own more than fifty percent (50%)
        of the
        combined voting power of the reorganized, merged or consolidated company’s then
        outstanding voting securities;

      

      (iv) the
        sale,
        transfer or assignment of all or substantially all of the assets of the Company
        or the Bank to any third party;

      

      (v) a
        dissolution or liquidation of the Company or the Bank; or

      

      (vi) any
        other
        transactions or series of related transactions occurring which have
        substantially the same effect as the transactions specified in clauses (i)
        -
        (v), as determined by the Board of Directors.

      

      (F) “Code”
        means the Internal Revenue Code of 1986, as amended, or any successor
        provisions.

      

      (G) “Controlling
        Participant” means any person who, immediately before an Option is granted to
        that particular person, directly or indirectly (within the meaning of section
        424 of the Code and the regulations promulgated thereunder) possesses more
        than
        ten percent (10%) of the total combined voting power of all classes of stock
        of
        the Company or any Subsidiary. The determination of whether an person is
        a
        Controlling Participant shall be made in accordance with sections 422 and
        424 of
        the Code, or any successor provisions, and the regulations promulgated
        thereunder.

      

      (H) “Committee”
        means the committee appointed by the Board of Directors to administer the
        Plan
        pursuant to Section 4(A).
        If the
        Committee has not been appointed, the Board of Directors in its entirety
        shall
        constitute the Committee. The Board of Directors shall consider the advisability
        of whether the members of the Committee shall consist solely of two or more
        member of the Board of Directors who are each “outside directors” as defined in
        Treas. Reg. section 1.162-27(e)(3) as promulgated by the Internal Revenue
        Service and “non-employee directors” as defined in Rule 16b-3(b)(3) as
        promulgated under the Act. 

      

      (I) “Company”
        means Birmingham Bloomfield Bancshares, a Michigan corporation and registered
        bank holding company, and except as otherwise specified in this Plan in a
        particular context, any successor thereto, whether by merger, consolidation,
        purchase of all or substantially all of its assets or otherwise.

       

      (J) “Exercise
        Price” means the price at which a share of Stock may be purchased by a
        Participant pursuant to the exercise of an Option, as specified in the
        respective Stock Option Agreement.

      

      (K) “Fair
        Market Value” on any date with respect to the Stock means:

      

      (i) if
        the
        Stock is listed on a national securities exchange, the last reported sale
        price
        of a share of the Stock on such exchange or, if no sale occurs on that date,
        the
        average of the reported closing bid and asked prices on that date,

      

      (ii) if
        the
        Stock is otherwise publicly traded, the last reported sale price of a share
        of
        the Stock under the quotation system under which the sale price is reported
        or,
        if no sale occurs on that date, the average of the reported closing bid and
        asked prices on that date under the quotation system under which the bid
        and
        asked prices are reported,

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

         

      

      (iii) if
        no
        such last sales price or average of the reported closing bid and asked prices
        are available on that date, the last reported sale price of a share of the
        Stock, or if no sale takes place, the average of the reported closing bid
        and
        asked prices as so reported for the immediately preceding business day (a)
        on
        the national securities exchange on which the Stock is listed or (b) if the
        Stock is otherwise publicly traded, under the quotation system under which
        such
        data are reported, or 

       

      (iv) if
        none
        of the prices described above is available, the value of a share of the Stock
        as
        reasonably determined in good faith by the Committee in a manner that it
        believes to be in accordance with the Code.

      

      In
        determining the Fair Market Value of a share of Stock in connection with
        the
        issuance of an ISO, the Fair Market Value shall be determined without regard
        to
        any restriction, other than a restriction that, by its terms, will never
        lapse.

      

      (L) “ISO”
        means an Option (or portion thereof) intended to qualify as an “incentive stock
        option” within the meaning of section 422 of the Code, or any successor
        provision.

      

      (M) “NQSO”
        means an Option (or portion thereof) that is not intended to, or does not,
        qualify as an “incentive stock option” within the meaning of section 422 of the
        Code, or any successor provision.

      

      (N) “Option”
        means the right of a Participant to purchase shares of Stock in accordance
        with
        the terms of this Plan and the Stock Option Agreement between such Participant
        and the Company.

      

      (O) “Parent”
        means a parent corporation, if any, with respect to the Company, as defined
        in
        Section 424(e) of the Code and regulations promulgated or rulings issued
        thereunder.

      

      (P) “Participant”
        means any person to whom an Option has been granted pursuant to this Plan
        and
        who is a party to a Stock Option Agreement.

      

      (Q) “Stock”
        means the common stock of the Company, no par value per share.

      

      (R) “Stock
        Option Agreement” means an agreement by and between a Participant and the
        Company setting forth the specific terms and conditions which Stock may be
        purchased by such Participant pursuant to the exercise of an Option. Such
        Stock
        Option Agreement shall be subject to the provisions of this Plan (which shall
        be
        incorporated by reference therein) and shall contain such provisions as the
        Board of Directors, in its sole discretion, may authorize.

      

      (S) “Subsidiary”
        means a subsidiary corporation of the Company, as defined in section 424(f)
        of
        the Code and regulations promulgated or rulings issued thereunder.

      

      (T) “Termination
        Date” means the date on which the Participant ceased to be an employee of the
        Company or any Affiliate; provided however, that with respect to an ISO,
        it
        means the date on which the Participant ceased to be an employee of the Company
        or any Parent or Subsidiary.

      

      3. SHARES
        AVAILABLE UNDER THE PLAN

       

      (A) Shares
        Subject to the Plan.
        Subject
        to adjustment in accordance with the provisions of this Section 3, the total
        number of shares of Stock as to which Options may be granted shall be ________
        shares. Stock issued under the Plan may be either authorized but unissued
        shares
        or shares that have been reacquired by the Company. Any shares issued by
        the
        Company in connection with the assumption or substitution of outstanding
        grants
        from any acquired corporation shall not reduce the shares of Stock available
        for
        Options under the Plan. 

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

         

      

      (B) Forfeited
        Awards.
        In the
        event that any outstanding Option under the Plan for any reason expires
        unexercised, is forfeited or is terminated prior to the end of the period
        during
        which Options may be issued under the Plan, the shares of Stock allocable
        to the
        unexercised portion of such Option that has expired, been forfeited or been
        terminated shall become available for future issuance under the Plan.

      

      (C) Shares
        Used to Pay Exercise Price and Taxes.
        Shares
        of Stock delivered to the Company to pay the Exercise Price of any Option
        or to
        satisfy the Participant’s income tax withholding obligation shall become
        available for future issuance under the Plan.

       

      (D) Adjustments
        on Changes in Stock.
        In the
        event of any change in the outstanding shares of Stock by reason of any merger,
        reorganization, consolidation, recapitalization, stock dividend, stock split,
        reverse stock split, spinoff, combination or exchange of shares or other
        corporate change, the Committee, in its sole discretion, may make such
        substitution or adjustment, if any, as it deems to be equitable or appropriate,
        as
        to:
        (i) the maximum number of shares of Stock that may be issued under the Plan
        as
        set forth in Section 3(A);
        (ii)
        the number or kind of shares subject to an Option; (iii) subject to the
        limitation contained in Section 6(P),
        the
        Exercise Price applicable to an Option; (iv) any measure of performance that
        relates to an Option in order to reflect such change in the Stock and/or
        (v) any
        other affected terms of any Option; provided however, that no adjustment
        shall
        occur with respect to an ISO unless: (y) the excess of the aggregate Fair
        Market
        Value of the shares of Stock subject to the ISO immediately after any such
        adjustment over the aggregate Exercise Price of such shares is not more than
        the
        excess of the aggregate Fair Market Value of all shares subject to the ISO
        immediately prior to such adjustment over the Exercise Price of all shares
        subject to the ISO; and (z) the new or adjusted ISO does not grant the
        Participant additional benefits that the Participant did not previously
        have.

      

      4. ADMINISTRATION

       

      (A) Procedure.
        The
        Plan shall be administered, construed and interpreted by the Committee, as
        such
        Committee is from time to time constituted, or any successor committee the
        Board
        of Directors may designate to administer the Plan. The Committee may delegate
        any of its powers and duties to appropriate officer(s) of the Company in
        accordance with guidelines established by the Committee from time to
        time.

      

      (B) Powers
        of the Committee.
        Subject
        to the other provisions of the Plan, the Committee shall have all powers
        vested
        in it by the terms of the Plan as set forth herein, such powers to include
        exclusive authority (except as may be delegated as permitted herein): (i)
        to
        select those persons to be granted Options under the Plan; (ii) to determine
        the
        type, size and terms of the Option to be granted to each individual selected;
        (iii) to modify the terms of any Option that has been granted; (iv) to determine
        the time when Options will be granted; (v) to establish performance objectives;
        (vi) to determine the Fair Market Value of the Stock under Section 2(K)(iv);
        (vii)
        to interpret the Plan and decide any questions and settle all controversies
        or
        disputes that may arise in connection with the Plan; (viii) to adopt, amend
        and
        rescind rules and regulations relating to the Plan; (ix) to prescribe the
        form
        or forms of instruments evidencing Options and any other instruments required
        under the Plan and to change such forms, in its sole and absolute discretion,
        from time to time; (x) to accelerate or defer (with the consent of the
        Participant) the vesting period or exercise date of any Option; (xi) to
        authorize any person to execute on behalf of the Company any instrument required
        to effectuate the grant of an Option previously granted by the Committee;
        and
        (xii) to make all other determinations and perform all other acts necessary
        or
        advisable for the administration of the Plan. The Committee (or its delegate
        as
        permitted herein) may correct any defect, supply any omission or reconcile
        any
        inconsistency in the Plan or in any Option in the manner and to the extent
        that
        it shall deem desirable to carry the Plan or any Option into
        effect.

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

         

      

      (C) Effect
        of Decision of the Committee and Board of Directors.
        All
        decisions, determinations, actions and interpretations of the Committee (or
        its
        delegate as permitted herein) or the Board of Directors (or its delegate
        as
        permitted herein) in the administration of the Plan shall lie with the Committee
        and the Board of Directors, respectively, within its sole and absolute
        discretion and shall be final, conclusive and binding on all parties concerned;
        provided that the Committee or the Board of Directors, as applicable, may,
        in
        its sole and absolute discretion, overrule an action, decision, determination
        or
        interpretation of a person to whom it has delegated authority.

      

      (D) Liability
        of Board of Directors or the Committee.
        No
        member of the Board of Directors or Committee or any officer of the Company
        shall be liable for anything done or omitted to be done by him, by any other
        member of the Board of Directors or Committee or any officer of the Company
        in
        connection with the performance of duties under the Plan, except for his
        own
        willful misconduct or as expressly provided by statute. The members of the
        Board
        of Directors and Committee and officers of the Company shall be entitled
        to
        indemnification in connection with the performance of their respective duties
        under the Plan to the extent provided in the articles of incorporation or
        bylaws
        of the Company or otherwise by law.

       

      5. ELIGIBILITY

      

      Consistent
        with the purposes of the Plan, the Committee shall have the power (except
        as may
        be delegated as permitted herein) to select the employees and other individuals
        performing services for, or making contributions to, the Company and its
        Affiliates who may participate in the Plan and be granted Options under the
        Plan. No person who is not an employee of the Company or a Parent or a
        Subsidiary shall be eligible to receive an ISO award under the Plan. For
        purposes of this Plan, the term “employee” means an individual employed by the
        Company or a Subsidiary whose income from those entities is subject to Federal
        Income Contributions Act (“FICA”) withholding. 

       

      6. TERMS
        AND CONDITIONS APPLICABLE TO OPTIONS UNDER THE PLAN

       

      Options
        granted pursuant to the Plan shall be evidenced by Stock Option Agreements
        in
        such form as the Board of Directors shall, from time to time, approve, which
        agreements shall in substance include or incorporate, comply with and be
        subject
        to the following terms and conditions (except as necessary to conform to
        the
        requirements of law, including the laws of the jurisdiction where the
        Participant resides):

       

      (A) Medium
        and Time of Payment.
        The
        Exercise Price shall be paid in full at the time the Option is exercised.
        The
        Exercise Price shall be payable either in (i) United States dollars in cash
        or
        by check, bank draft, money order or wire transfer of good funds payable
        to the
        Company; (ii) upon conditions established by the Committee, by delivery of
        shares of Stock owned by the Participant for at least six (6) months prior
        to
        the date of exercise; or (iii) by a combination of (i) and (ii). 

      

      (B) Number
        of Shares.
        The
        total number of shares to which each Option pertains shall be designated
        in the
        Stock Option Agreement at the time of grant.

       

      (C) Designation
        of Option.
        Each
        Option shall be designated in the Stock Option Agreement as either an ISO
        or a
        NQSO and, in the absence of such designation, shall be deemed to be a NQSO.
        In
        the event that a person is granted concurrently an ISO and a NSQO, such Options
        shall be evidenced by separate Stock Option Agreements. However, notwithstanding
        such designations, to the extent that (i) the aggregate Fair Market Value
        (determined as of the time of grant) of the Stock with respect to which Options
        designated as ISOs are exercisable for the first time by any employee during
        any
        calendar year (under all plans of the Company and any Subsidiary) exceeds
        $100,000, or (ii) an ISO does not meet any other requirement to be an “incentive
        stock option” within the meaning of section 422 of the Code, such Options, or
        portions thereof, shall be treated as NQSOs. For purposes of this section,
        Options shall be taken into account in the order in which they were
        granted.

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

         

      

      (D) Exercise
        Price.
        The
        Exercise Price per share of Stock under an Option shall be determined by
        the
        Committee in its sole discretion; provided however that the Exercise Price
        shall
        be not less than one hundred percent (100%) of the Fair Market Value on the
        date
        that such Option is granted and, in the case of an ISO granted to a Controlling
        Participant, the Exercise Price shall be not less than one hundred ten percent
        (110%) of the Fair Market Value on the date that such Option is
        granted.

      

      (E) Option
        Term.
        The
        term of an Option shall be fixed by the Committee, in its sole discretion,
        in
        each Stock Option Agreement; provided however that for any Option to qualify
        as
        an ISO, the Option shall expire not more than ten years from the date the
        Option
        is granted and, in the case of a Controlling Participant, not more than five
        years from the date the Option is granted.

      

      (F) Exercise
        of Options.
        Subject
        to the provisions of this Plan and the applicable Stock Option Agreement,
        an
        Option may be exercised at any time during the term of the Option. An Option
        shall
        be
        deemed exercised when (i) written notice of such exercise, in the form
        prescribed by the Committee, has been received by the Company in accordance
        with
        the terms of the Option by the person entitled to exercise the Option and
        (ii)
        full payment for the Stock with respect to which the Option is exercised
        has
        been received by the Company in accordance with Section 6(A)
        and the
        Stock Option Agreement. The written notice shall include the number of shares
        to
        be exercised by the Participant. Except
        as
        otherwise expressly provided in writing by the Board of Directors, an Option
        may
        not be exercised for a fractional share of Stock. 

      

      (G) Stock
        Certificates.
        Promptly upon exercise of an Option, the Company shall issue (or cause to
        be
        issued) certificates evidencing the shares of Stock acquired as a result
        of the
        exercise of the Option. In the event that the exercise of an Option is treated
        in part as the exercise of an ISO and in part as the exercise of a NQSO pursuant
        to Section 6(C)
        hereof,
        the Company shall issue a certificate evidencing the shares of Stock treated
        as
        acquired upon the exercise of an ISO and a separate certificate evidencing
        the
        shares of Stock treated as acquired upon the exercise of a NQSO, and shall
        identify each such certificate accordingly in its stock transfer
        records.

      

      All
        certificates for shares of Stock delivered under the Plan pursuant to any
        Option
        shall be subject to such stock transfer orders and other restrictions as
        the
        Committee may deem advisable under the rules, regulations and other requirements
        of the Securities and Exchange Commission, any stock exchange upon which
        the
        Stock is then listed, and any applicable federal or state securities laws
        or
        regulations, and the Committee may cause a legend or legends to be put on
        any
        such certificates to make appropriate reference to such
        restrictions.

      

      (H) Date
        of Exercise.
        The
        Committee may, in its sole discretion, provide that an Option may not be
        exercised in whole or in part for any period or periods of time specified
        by the
        Committee. Except as may be so provided, any Option may be exercised in whole
        at
        any time, or in part from time to time, during its term. In the case of an
        Option not immediately exercisable in full, the Committee may at any time
        accelerate the time at which all or any part of the Option may be
        exercised.

      

      (I) Termination
        of Service.
        The
        Committee may determine, at the time of grant, for each Option the extent
        to
        which the Participant (or his legal representative) shall have the right
        to
        exercise the Option following termination of such Participant’s service to the
        Company, any Subsidiary or any Affiliate. Such provisions may reflect
        distinctions based on the reasons for the termination of service and any
        other
        relevant factors that the Committee may determine. In the absence of such
        standards, any Option granted to an employee pursuant to the Plan that has
        not
        vested prior to the Termination Date shall expire immediately upon the
        Termination Date, and any Option granted to an employee pursuant to the Plan
        that has vested prior to the Termination Date shall expire three (3) months
        following the Termination Date; provided however that if the cessation of
        Participant’s service is due to his death or disability (as defined in section
        22(e)(3) of the Code), such Option shall expire one year from the Termination
        Date.

      

      
        
           

        

        
          6

          
            

          

        

        
           

        

         

      

      (J) Transferability.
        Except
        as otherwise permitted by the Committee, Options shall be nontransferable
        other
        than by will or the laws of descent and distribution and shall be exercisable
        during the lifetime of the Participant only by the Participant (or in the
        event
        of his disability (as defined in section 22(e)(3) of the Code), by his guardian
        or legal representative) and after his death, only by the Participant’s legal
        representatives, heirs, legatees, or distributees. 

      

      (K) No
        Rights as a Participant.
        No
        person shall, with respect to any Option, be deemed to have become a
        Participant, or to have any rights with respect to such Option, unless and
        until
        such person shall have executed a Stock Option Agreement or other instrument
        evidencing the Option and delivered a copy thereof to the Company, and otherwise
        complied with the then applicable terms and conditions. 

      

      (L) No
        Rights as a Shareholder.
        Notwithstanding the exercise of an Option, a Participant shall have no rights
        as
        a shareholder with respect to shares covered by an Option until the date
        the
        certificates evidencing the shares of Stock are issued (as evidenced by the
        appropriate entry on the books of the Company or of a duly authorized transfer
        agent of the Company). No adjustment will be made for dividends or other
        rights
        the record date for which is prior to the date of issuance. Upon issuance
        of the
        certificates evidencing the shares of Stock acquired upon exercise of an
        Option,
        such shares of Stock shall be deemed to be transferred for purposes of section
        421 of the Code and the regulations promulgated thereunder.

      

      (M) Tax
        Withholding.
        As a
        condition to the exercise of any Option, the Company shall have the right
        to
        require that the Participant exercising the Option (or the recipient of any
        shares of Stock) remit to the Company an amount calculated by the Company
        to be
        sufficient to satisfy applicable federal, state, foreign or local withholding
        tax requirements (or make other arrangements satisfactory to the Company
        with
        regard to such taxes) prior to the delivery of any certificate evidencing
        shares
        of Stock. If permitted by the Company, either at the time of the grant of
        the
        Option or in connection with its exercise, the Participant may satisfy
        applicable withholding tax requirements by delivering a number of whole shares
        of Stock owned by the Participant for at least six (6) months prior to the
        date
        of exercise and having a Fair Market Value (determined on the date that the
        amount of tax to be withheld is to be fixed) at least equal to the aggregate
        amount required to be withheld.

      

      In
        the
        case of an ISO, the Committee may require as a condition of exercise that
        the
        Participant exercising the Option agree to inform the Company promptly of
        any
        disposition (within the meaning of section 424(c) of the Code and the
        regulations thereunder) of Stock received upon exercise.

       

      (N) Change
        of Control.
        Notwithstanding any provision of this Plan or any Stock Option Agreement
        to the
        contrary, unless the Committee shall determine otherwise at the time of grant
        with respect to a particular Option, all Options outstanding as of the date
        of a
        Change of Control or an agreement to effect a Change of Control, and which
        are
        not then exercisable and vested, shall become fully exercisable and vested
        to
        the full extent of the original grant. The
        determination as to whether a Change of Control or an agreement to effect
        a
        Change of Control has occurred shall be made by the Committee and shall be
        conclusive and binding.

      

      (O) Additional
        Restrictions and Conditions.
        The
        Committee may impose such other restrictions and conditions (in addition
        to
        those required by the provisions of this Plan) on any Option granted hereunder
        and may waive any such additional restrictions and conditions, so long as
        (i)
        any such additional restrictions and conditions are consistent with the terms
        of
        this Plan and (ii) such waiver does not waive any restriction or condition
        required by the provisions of this Plan.

       

      (P) Repricing.
        The
        Committee shall not, without the further approval of the Board of Directors,
        (i)
        authorize the amendment of any outstanding Option to reduce the Exercise
        Price
        of such Option or (ii) grant a replacement Option upon the surrender and
        cancellation of a previously granted Option for the purpose of reducing the
        Exercise Price of such Option. Nothing contained in this section shall affect
        the right of the Board of Directors or the Committee to make the adjustment
        permitted under Section 3(D).

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

         

      

      7. AMENDMENT
        AND TERMINATION OF THE PLAN

      

      The
        Committee may amend, alter, suspend, or terminate the Plan or any portion
        hereof
        at any time; provided that no such amendment, alteration, suspension or
        termination shall be made without the approval of the shareholders of the
        Company if such approval is necessary to qualify for or comply with any tax
        or
        regulatory requirement for which or with which the Board of Directors deems
        it
        necessary or desirable to qualify or comply. No amendment, suspension or
        termination of the Plan shall adversely affect the right of any Participant
        with
        respect to any Option theretofore granted, as determined by the Committee,
        without such Participant’s written consent.

      

      Unless
        earlier terminated, the Plan shall remain in effect until all shares issuable
        under the Plan have been purchased or acquired in accordance with the Plan.
        In
        no event may any Options be granted under the Plan more than ten (10) years
        after the earlier of the date on which the Plan is adopted or the date on
        which
        the Plan is approved by the shareholders of the Company. Such termination
        by
        lapse of time shall not effect the validity or terms of any Option then
        outstanding or the ability of the Committee to amend, alter, adjust, suspend,
        discontinue or terminate any such Option or to waive any conditions or rights
        under any such Option for so long as the Option is outstanding.

      

      8. LEGALITY
        OF GRANT

      

      The
        granting of Options under this Plan and the issuance or transfer of Options
        and
        shares of Stock pursuant hereto are subject to all applicable federal and
        state
        laws, rules and regulations and to such approvals by any regulatory or
        government agency (including, without limitation, no-action positions of
        the
        Securities and Exchange Commission) which may, in the opinion of counsel
        for the
        Company, be necessary or advisable in connection therewith. Without limiting
        the
        generality of the foregoing, no Options may be granted under this Plan and
        no
        Options or shares shall be issued by the Company unless and until in any
        such
        case all legal requirements applicable to the issuance or payment have, in
        the
        opinion of counsel for the Company, been complied with. In connection with
        any
        Option or Stock issuance or transfer, the person acquiring the shares or
        the
        Option shall, if requested by the Company, give assurance satisfactory to
        counsel to the Company with respect to such matters as the Company may deem
        desirable to assure compliance with all applicable legal
        requirements.

      

      9. NO
        EMPLOYMENT/SERVICE RIGHTS

      

      Nothing
        in this Plan or any Stock Option Agreement shall confer upon any person the
        right to participate in the benefits of the Plan or to be granted an Option,
        and
        there shall be no obligation to provide uniformity of treatment in connection
        with the administration of this Plan. The terms and conditions of Options
        or
        Stock Option Agreements need not be the same with respect to each
        Participant.

      

      Nothing
        in this Plan or any Stock Option Agreement shall be construed as constituting
        a
        commitment, guarantee, agreement or understanding of any kind or nature that
        the
        Company or any Affiliate shall continue to employ, retain or engage any
        individual (whether or not a Participant). Neither this Plan nor any Stock
        Option Agreement executed in accordance with this Plan shall affect in any
        way
        the right of the Company or any Affiliate to terminate the employment or
        engagement of any individual (whether or not a Participant) at any time and
        for
        any reason whatsoever and to remove any individual (whether or not a
        Participant) from any position with the Company or any Affiliate. No change
        of a
        Participant’s duties with the Company or any Affiliate shall result in a
        modification of any rights of such Participant under this Plan or any Stock
        Option Agreement executed by such Participant. 

      

      
        
           

        

        
          8

          
            

          

        

        
           

        

         

      

      10. EFFECTIVE
        DATE

      

      This
        Plan
        shall become effective upon its approval by the Board of Directors; provided
        however that no grant of an Option under this Plan shall qualify as an ISO
        unless, within one year of the date the Plan becomes effective, the Plan
        is
        approved by the affirmative vote of a majority of the shareholders of the
        Company present, in person or by proxy, at a meeting of the shareholders
        of the
        Company. The Committee may grant ISOs subject to the condition that this
        Plan
        shall have been approved by the shareholders of the Company as provided herein.
        

      

      11. RESERVATION
        OF SHARES

      

      The
        Company, during the term of this Plan, shall at all times reserve and keep
        available such number of shares of Stock as shall be sufficient to satisfy
        the
        requirements of the Plan.

      

      12. MINIMUM
        CAPITAL REQUIREMENTS

      

      Notwithstanding
        any provision of this Plan or any Stock Option Agreement to the contrary,
        all
        Options granted under the Plan shall expire, to the extent not exercised,
        within
        45 days following the receipt of notice from the Bank’s state or primary federal
        regulator (“Regulator”) that (i) the Bank has not maintained its minimum capital
        requirements (as determined by the Regulator); and (ii) the Regulator is
        requiring termination or forfeiture of options. Upon receipt of such notice
        from
        the Regulator, the Company shall promptly notify each Participant that all
        Options issued under this Plan have become fully exercisable and vested to
        the
        full extent of the grant and that the Participant must exercise the Option(s)
        granted to him prior to the end of the 45-day period or such earlier period
        as
        may be specified by the Regulator or forfeit such Option. In case of forfeiture,
        no Participant shall have a cause of action, of any kind or nature, with
        respect
        to the forfeiture against the Company or any Affiliate. Neither the Company
        nor
        any Affiliate shall be liable to any Participant due to the failure or inability
        of the Company or any Affiliate to provide adequate notice to the
        Participant.

      

      13. ADMINISTRATION
        OF PLAN

      

      Notwithstanding
        any other provision herein to the contrary, this Plan shall be administered
        in
        accordance with the provisions of the Federal Deposit Insurance Corporation’s
        Statement of Policy on Applications for Deposit Insurance as such policy
        relates
        to stock benefit plans.

      

      14. GENERAL

      

      (A) Burden
        and Benefit.
        The
        terms and provisions of this Plan and the Options issued hereunder shall
        be
        binding upon, and shall inure to the benefit of, the Company and each
        Participant and any permitted successors and assigns.

       

      (B) Interpretation.
        When
        a
        reference is made in this Plan to a Section, such reference will be to a
        Section
        of this Plan
        unless
        otherwise indicated. The headings contained
        in this Plan are for convenience of reference only and will not affect in
        any
        way the meaning or interpretation of this Plan or any Option. Whenever the
        words
“include,”“includes” or “including” are used in this Plan, they will be deemed
        to be followed by the words “without limitation.” The words “hereof,”“herein”
        and “hereunder” and words of similar import when used in this Plan will refer to
        this Plan as a whole and not to any particular provision in this Plan. Each
        use
        herein of the masculine, neuter or feminine gender will be deemed to include
        the
        other genders. Each use herein of
        the
        plural will include the singular and
        vice
        versa, in each case as the context requires or as is otherwise appropriate.
        The
        word “or” is used in the inclusive sense. Any agreement, instrument
        or statute
        defined or referred to herein or in any agreement or instrument that is referred
        to herein means such agreement, instrument or statute as from time to time
        amended, modified or supplemented, including (in the case of agreements or
        instruments) by waiver or consent and (in the case of statutes) by succession
        of comparable
        successor statutes and references to all attachments thereto and instruments
        incorporated therein. References to a person are also to its permitted
        successors or assigns. No
        provision of this Plan is to be construed to require, directly or indirectly,
        any person to take any action, or omit to take any action, which action or
        omission would violate applicable law (whether statutory or common law),
        rule or
        regulation.

      

      
        
           

        

        
          9

          
            

          

        

        
           

        

         

      

      (C) Costs
        and Expenses.
        All
        costs and expenses with respect to the adoption, implementation and
        administration of this Plan shall be borne by the Company; provided however
        that, except as otherwise specifically provided in this Plan or the applicable
        Stock Option Agreement between the Company and a Participant, the Company
        shall
        not be obligated to pay any costs or expenses (including legal fees) incurred
        by
        any Participant in connection with any Stock Option Agreement, this Plan
        or any
        Option or Stock held by any Participant.

      

      (D) Unfunded
        Status of Plan.
        The
        Plan is intended to constitute an “unfunded” plan for long-term incentive
        compensation. Neither the Plan nor any Option shall create or be construed
        to
        create a trust or separate fund of any kind or a fiduciary relationship between
        the Company or any Affiliate and a Participant or any other person. Nothing
        contained herein shall be construed to give any Participant any rights with
        respect to any Option, unexercised or exercised, or any other matters under
        this
        Plan that are greater than those of a general unsecured creditor of the
        Company.

      

      (E) Governing
        Law.
        The
        validity, construction and effect of the Plan, any rules and regulations
        relating to the Plan and any Option granted hereunder shall be determined
        in
        accordance with the laws of the State of Michigan, without reference to the
        laws
        that might otherwise govern under applicable principles of conflicts of law.
        

      

      (F) Severability.
        If any
        term or other provision of this Plan or any Stock Option Agreement is held
        to be
        illegal, invalid or unenforceable by any rule of law or public policy, such
        term
        or provision shall
        be
        fully severable and this Plan or the Stock Option Agreement shall be construed
        and enforced as if such illegal, invalid
        or unenforceable provision were not a part hereof, and all other conditions
        and
        provisions shall remain
        in
        full force and effect. Upon such determination that any term or other provision
        is invalid, illegal or unenforceable, there shall be added automatically
        as a part of this Plan or the Stock Option Agreement a provision as similar
        in
        terms to such illegal, invalid or unenforceable provision
        as may be possible and still be legal, valid and enforceable.
        If any
        provision of this Plan or any Stock Option Agreement is so broad as to be
        unenforceable, the provision shall be interpreted to be only as broad as
        is
        enforceable.

      

      (G) Certain
        Conflicts.
        In the
        event of an irreconcilable conflict between the terms of the Plan and any
        Stock
        Option Agreement, the terms of the Plan shall prevail.

      

      (H) Notices.
        Any
        notice or other communication required or permitted to be made hereunder
        or by
        reason of the provisions of this Plan or any Stock Option Agreement shall
        be in
        writing, duly signed by the party giving such notice or communication and
        shall
        be deemed to have been properly delivered if delivered personally or by a
        recognized overnight courier service, or sent by first-class certified or
        registered mail, postage prepaid, as follows (or at such other address for
        a
        party as shall be specified by like notice): (i) if given to the Company,
        at its
        principal place of business, and (ii) if to a Participant, as provided in
        his
        Stock Option Agreement.
        Any
        notice properly given hereunder shall be effective on the date on which it
        is
        actually received by the party to whom it was addressed. 

      

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      IN
        WITNESS WHEREOF,
        the
        Company, acting by and through its duly authorized officer, has executed
        this
        Plan on this the ______ day of _________, 2005.

      

       

      
        	 	 	 
	 	BIRMINGHAM
                BLOOMFIELD BANCSHARES
	 
 	 
 	 
 
	 	By:  	 
	 	
                
                  
Robert
                  Farr, President

              
	 	 

      

      
 

      
        
           

        

        
          11

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