Document:

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                                                                    EXHIBIT 10.3

                        MERCANTILE BANK OF WEST MICHIGAN
                              NON-LENDER BONUS PLAN

The Mercantile Bonus Plan is designed to reflect the fact that the directors and
management of Mercantile Bank of West Michigan and Mercantile Bank Corporation
believe that the company's shareholders are willing to share financially in
operation results that are superior to those forecast by the company and
approved by the Board of Directors.

The purpose of the Plan is to:

     o    promote the growth, profitability and expense control necessary to
          accomplish corporate strategic long term plans

     o    encourage superior results by providing a meaningful incentive

     o    support the Mercantile Teamwork

ELIGIBILITY

All non-lenders and non-commissioned employees are included in the Plan. The
employee must be an active employee on the day that the bonus awards are
distributed. An employee that is out on medical leave at the time the awards are
distributed will be eligible to receive a bonus. An employee that is suspended
with or without pay at the time the awards are distributed will not be eligible
to receive the bonus award. If an employee terminates his or her association
with Mercantile Bank of West Michigan, any accrued but unpaid bonus award is
cancelled.

PERFORMANCE GOALS

The bonus payout is determined by the overall performance of the Bank. The total
payout is calculated by comparing current year after tax net operating income
(NOI), inclusive of pre-tax bonus accrual expense, with the prior year NOI. If
current year NOI is not greater than 120% of the prior year NOI, the pre-tax
bonus accrual will be adjusted downward until current year NOI, inclusive of
pre-tax bonus accrual expense, exceeds 120% of prior year NOI.

The maximum bonus payout for each employee is calculated as a percentage of
salary with the percentage applied to each salary based on the employee's job
title within the organization. The maximum bonus pool is the sum of each
employee's maximum bonus payout, and once this maximum pool is achieved, no
additional bonus expense will be accrued. The Board of Directors annually
approves the percentages that are applied to employee salaries.

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                              2005 BONUS STRUCTURE
                           EMPLOYEE BONUS - NON-LENDER

<Table>
<S>                                                   <C>
NON-EXEMPT/EXEMPT                                     10%

OFFICER                                               15%

ASSISTANT VICE PRESIDENT                              25%

VICE PRESIDENT                                        30%

SENIOR VICE PRESIDENT                                 40%

COO/CFO                                               45%

CHAIRMAN, PRESIDENT                                   50%
</Table><PAGE>

                                                                    EXHIBIT 10.1

                ADDENDUM I TO THE MANAGEMENT SERVICES AGREEMENT

      Addendum I to this Management Services Agreement ("Agreement") is subject
to the approval of the Circuit Court of Cole County, Missouri and, if approved,
shall be effective the 1st day of April, 2004 (the "Effective Date"), by and
between Meadowbrook, Inc., a Michigan corporation ("Manager"), and Scott B.
Lakin, Director of the Department of Insurance of the State of Missouri
("Rehabilitator"), in his capacity as Rehabilitator for Equity Mutual Insurance
Company and Casual Reciprocal Exchange (collectively, the "Company").

                                    RECITALS:

      WHEREAS, Manager is providing management, administrative, and accounting
services the Company, pursuant to the Agreement, which was approved by the
Circuit Court for the County of Cole, Missouri effective January 8, 2003;

      WHEREAS, it has been determined by Rehabilitator that additional
management services are needed to provide for an orderly run-off of the Company;

      WHEREAS, Rehabilitator, on behalf of the Company, and Manager have reached
an agreement for additional management services to be performed by Manager;

      THEREFORE, IN CONSIDERATION of the mutual agreements described in this
Agreement, Rehabilitator, on behalf of the Company, and Manager agree as
follows:

                                   AGREEMENT:

2.    ARTICLE 2 - DUTIES

2.01  MANAGEMENT SERVICES

      K.    Additional Management Services

            Manager will perform the additional management services described in
            EXHIBIT B to Addendum I.

3.    ARTICLE 3 - COMPENSATION

3.01  FEES

      In consideration of the services rendered by Manager pursuant to Addendum
      I of this Agreement, Rehabilitator, on behalf of the Company will pay the
      Direct Costs and Service Fees as agreed to and as set for in EXHIBIT B.
      The parties agree the Direct Costs and the Service Fee shall be deemed
      administrative costs and shall be accorded whatever priority as provided
      for under Missouri law.

<PAGE>

3.02  TIME OF PAYMENT

      The Direct Costs and Service Fees set forth in EXHIBIT B to Addendum I
      shall be paid as follows:

<TABLE>
<S>                                         <C>
Upon Court Approval                         $89,904.50
July 1, 2004                                $89,904.50
October 1, 2004                             $89,904.50
July 1, 2004                                $89,904.50
</TABLE>

All other terms and conditions of the Agreement shall remain in full force and
effect.

      IN WITNESS WHEREOF, each party has caused this Agreement to be executed in
its name by its duly authorized representative as of the date(s) set forth
below:

MEADOWBROOK, INC.                       SCOTT B. LAKIN, AS REHABILITATOR
                                        FOR EQUITY MUTUAL INSURANCE
                                        COMPANY

______________________________          ______________________________
By: Michael G. Costello                 By: Scott B. Lakin
Title: Sr. Vice President &             Title: Director of Insurance, as
       General Counsel                         Rehabilitator Equity Mutual
                                               Insurance Company

Date: ________________________          Date: ________________________

SCOTT B. LAKIN, AS REHABILITATOR FOR
CASUALTY RECIPROCAL EXCHANGE

______________________________
By: Scott B. Lakin
Title: Director of Insurance, as Rehabilitator for
       Casualty Reciprocal Exchange

Date: ________________________<PAGE>

                                                                    EXHIBIT 10.2

                  EIGHTH AMENDMENT TO RESTATED CREDIT AGREEMENT

      This Eighth Amendment to Restated Credit Agreement (the "Amendment") is
entered into as of this 30th day of August, 2004, by and between COMERICA BANK,
a Michigan banking corporation ("Bank"), with offices at One Detroit Center, 500
Woodward Avenue, Detroit, Michigan 48226, and MEADOWBROOK INSURANCE GROUP, INC.,
a Michigan corporation, with offices at 26600 Telegraph Road, Suite 300,
Southfield, Michigan 48034 ("Borrower").

                                    RECITALS:

      A.    Borrower and Bank entered into a certain Restated Credit Agreement
dated as of September 25, 2002 (as amended from time to time, the "Agreement")
pursuant to which Borrower incurred certain indebtedness and obligations and
granted the Bank certain security for such indebtedness and obligations; and

      B.    WHEREAS, Borrower and Bank desire to amend the Agreement upon the
following terms and conditions.

      NOW THEREFORE, for good and valuable consideration, the parties agree as
follows:

1.    DEFINITIONS

      1.1 Capitalized terms used herein and not defined to the contrary have the
meanings given them in the Agreement.

2.    AMENDMENT TO AGREEMENT

      2.1 The definition of "Maturity Date" in Section 1 of the Credit Agreement
is hereby amended and restated in its entirety as follows:

      " "Maturity Date" shall mean:

      (a)   with respect to the Revolving Credit Loan, November 1, 2004; and

      (b)   with respect to the Term Loan, July 1, 2006."

3.    REPRESENTATIONS

      Borrower hereby represents and warrants that:

      3.1 Execution, delivery and performance of this Amendment and any other
documents and instruments required under this Amendment are within Borrower's
powers, have been duly authorized, are not in contravention of law or the terms
of Borrower's articles of incorporation/charter, or bylaws, and do not require
the consent or approval of any governmental body, agency, or authority.

                                     - 1 -
<PAGE>

      3.2 This Amendment and any other documents and instruments required under
this Amendment or the Agreement, when issued and delivered under this Amendment
or the Agreement, will be valid and binding in accordance with their terms.

      3.3 The continuing representations and warranties of Borrower set forth in
Sections 7.1 through 7.19 of the Agreement are true and correct on and as of the
date hereof with the same force and effect as made on and as of the date hereof.

      3.4 Except as previously disclosed to Bank in writing, no default or event
of default, or condition or event which, with the giving of notice or the
running of time, or both, would constitute a Default or Event of Default under
the Notes or the Agreement, has occurred and is continuing as of the date
hereof.

4.    MISCELLANEOUS

      4.1 This Amendment may be executed in as many counterparts as Bank and
Borrower deem convenient, and shall become effective upon: (a) delivery to Bank
of all executed counterparts hereof; and (b) delivery to Bank, in form and
substance satisfactory to Bank of each of the documents, instruments and fees
listed on the Checklist attached as Exhibit "A" hereto.

      4.2 Borrower and Bank acknowledge and agree that except as specifically
amended hereby, all of the terms and conditions of the Agreement and the Notes
and loan documents related thereto (collectively, the "Loan Documents") remain
in full force and effect in accordance with their original terms.

      4.3 Borrower shall pay all of Bank's legal costs and expenses (including
attorneys' fees and expenses) incurred in the negotiation, preparation and
closing hereof, including, without limitation, costs of all lien searches and
financing statement filings.

      4.4 Except as specifically set forth herein, nothing set forth in this
Amendment shall constitute, or be interpreted or construed to constitute, a
waiver of any right or remedy of Bank, or of any default or event of default
whether now existing or hereafter arising and whether now known or hereafter
discovered by or disclosed to Bank.

      4.5 Bank expressly reserves the right to exercise any or all rights and
remedies provided under the Loan Documents and applicable law except as modified
herein. Bank's failure to immediately exercise such rights and remedies shall
not be construed as a waiver or modification of those rights or an offer of
forbearance.

      4.6 Borrower, in every capacity, hereby waives, discharges and forever
releases Bank, Bank's employees, officers, directors, attorneys, stockholders
and successors and assigns, from and of any and all claims, causes of action,
defenses, counterclaims or offsets Borrower may have or may have made which (in
any case) could be based on facts or circumstances known to Borrower as of the
date of this Amendment, against any or all of Bank, Bank's employees, officers,
directors, attorneys, stockholders and successors and assigns.

                                     - 2 -
<PAGE>

      IN WITNESS WHEREOF, this Amendment has been executed as of the day first
stated above.

                                            MEADOWBROOK INSURANCE GROUP, INC.,
                                            a Michigan corporation

                                            By:_________________________________
                                                  Robert S. Cubbin
                                            Its:  President

                                            COMERICA BANK,
                                            a Michigan banking corporation

                                            By:_________________________________

                                                  Julie J. Nowicki
                                            Its:  Assistant Vice President

                                     - 3 -
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                                   EXHIBIT "A"

                                CLOSING CHECKLIST

                               EIGHTH AMENDMENT TO
                        MEADOWBROOK INSURANCE GROUP, INC.
                            RESTATED CREDIT AGREEMENT
                                      WITH
                                  COMERICA BANK

                                 AUGUST 30, 2004

I.    AUTHORIZING DOCUMENTS

      A.    Meadowbrook Insurance Group, Inc.

            1.    Recertification of Authority Documents

            2.    Good Standing Certificate (Michigan) (previously delivered)

II.   LOAN DOCUMENTS

            3.    Eighth Amendment to Restated Credit Agreement

            4.    Reaffirmation of Guaranties

                                     - 4 -

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