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Unassociated Document

    

    EXECUTIVE
      EMPLOYMENT AGREEMENT

     

    This
      EXECUTIVE
      EMPLOYMENT AGREEMENT
      (“Agreement”) is made and entered into as of this 20th day of December, 2004, by
      and between Bank of Birmingham, a Michigan state bank (“Bank”), and Robert Farr,
      an individual resident of the State of Michigan (“Executive”).

     

    WHEREAS,
      the
      Executive has considerable experience, expertise and training in management
      related to banking and services offered by the Bank; and

     

    WHEREAS,
      the
      Bank desires for the Executive to be employed as President and Chief Executive
      Officer of the Bank, and Executive desires to accept employment, subject to
      and
      on the terms and conditions set forth in this Agreement; and

     

    WHEREAS,
      both
      the Bank and the Executive have read and understood the terms and provisions
      set
      forth in this Agreement and have been afforded a reasonable opportunity to
      review this Agreement with their respective legal counsel.

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual promises and covenants set forth in this Agreement,
      the Executive and the Bank agree as follows:

     

    A.
        DURATION

     

    1.  This
      Agreement shall become effective (the “Effective Date”) upon the date that the
      Bank opens for business shall continue in full force and effect, subject to
      Paragraph 2
      below,
      until the third anniversary date of the Effective Date, unless earlier
      terminated as provided herein.

     

    2.  The
      Bank
      and the Executive acknowledge and agree that the parties may agree to continue
      the employment relationship upon such terms as they may mutually agree.
      Following the initial three year term of this Agreement, the Agreement shall
      automatically renew annually for a term of one year, unless either party elects
      to terminate this Agreement by sending written notice of non-renewal at least
      thirty (30) calendar days prior to the expiration of the then current term.
      If
      this Agreement expires as a result of non-renewal, the employment of the
      Executive shall automatically terminate upon the expiration of the then current
      term. 

     

    B.
        COMPENSATION

     

    3.  All
      payments of salary and other compensation to the Executive shall be payable
      in
      accordance with the Bank’s ordinary payroll and other policies and
      procedures.

     

    a.  During
      the term of this Agreement, the Bank agrees to pay Executive a base salary
      of
      not less than $135,000 annually, appropriately prorated for partial months
      at
      the commencement and end of the term of this Agreement.

     

    b.  The
      Bank
      shall have the right to deduct from any payment of compensation to Executive
      hereunder any federal, state or local taxes required by law to be withheld
      with
      respect to such payments and any other amounts specifically authorized to be
      withheld or deducted by Executive.

     

    c.  During
      the term of this Agreement, it is anticipated that the Board of Directors or
      a
      delegated committee thereof will adopt an executive incentive bonus plan based
      upon the asset growth and profitability of the Bank. The Executive will be
      entitled to participate in such plan. Executive shall also be entitled to
      participate in any benefit programs applicable to all employees of the Bank
      or
      to executive employees of the Bank in accordance with Bank policy and the
      provisions of said benefit programs.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    d.  Executive
      shall receive options to purchase shares of common stock of the Bank at an
      exercise price of $10.00 per share, the number of options to be equal to 50,000.
      The options shall have a term of ten years from the date of issuance, which
      shall be the Effective Date, and to the extent permitted by law, shall be
      treated as incentive stock options. The options shall be evidenced by a stock
      option agreement, which shall have such terms as are consistent with those
      set
      forth above and such additional terms, including with respect to vesting, as
      may
      be set forth in the stock option agreement or the stock option plan pursuant
      to
      which the options are granted.

     

    4.  The
      Bank
      shall provide the Executive with an automobile allowance in the amount of $750
      per month. The Bank shall also provide the Executive with a cellular phone
      and
      laptop computer for use in the performance of his duties and obligations under
      this Agreement. 
      The Bank
      shall also reimburse the Executive for all reasonable expenses, including,
      but
      not limited to, travel expenses, lodging expenses, and meals and entertainment
      expenses, that the Executive may incur in the performance of his duties and
      obligations under this Agreement; provided, however, that the Executive shall
      be
      required to submit receipts or other acceptable documentation to the cashier
      of
      the Bank or such other officer designated by the Board to verify such expenses
      prior to any reimbursements.
      In
      addition to the reimbursement of expenses listed in this Paragraph, the Bank
      shall pay, or reimburse Executive, for reasonable initiation fees for trade
      association memberships deemed to be acceptable and appropriate by the Board
      of
      Directors. The
      Bank
      shall also pay, or reimburse Executive, for all membership fees and monthly
      membership dues, up to a maximum amount of $500 per month, on behalf of
      Executive and his immediate family at a country club, which club must be
      acceptable to the Board of Directors.

     

    5.  Subject
      to the provisions of Paragraph 9
      of this
      Agreement, the Executive shall be entitled to receive employee and dependent
      health insurance, dental insurance, paid sick leave and four (4) weeks of paid
      vacation per year, and any additional benefits provided to all Bank employees
      all in accordance with the Bank’s employment policies. 

     

    6.  The
      Bank
      shall also provide the Executive with a salary continuation plan, with such
      terms as are approved by Executive and the Board of Directors of the Bank.
      

     

    7.  The
      Bank
      shall also provide the Executive with term life insurance coverage in an amount
      not less than $500,000 and having a term not less than ten years. 

     

    8.  The
      Board
      of Directors or a delegated committee shall review the amount of Executive’s
      compensation, including his base salary, not less than annually and shall
      increase such base salary as a result of such review and to provide reasonable
      cost of living adjustments, all in the discretion of the Board of Directors
      or
      such committee and consistent with safe and sound banking practices; provided
      however that Executive’s base salary, bonuses, vacation and car allowance shall
      not be less than the amounts set forth in Paragraphs 3,
      4, and
      5 at any time during the term of this Agreement. 

     

    9.  All
      employee benefits provided to the Executive by the Bank incident to the
      Executive’s employment shall be governed by the applicable plan documents,
      summary plan descriptions or employment policies, and may be modified, suspended
      or revoked at any time, in accordance with the terms and provisions of the
      applicable documents.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    10.  The
      parties hereto acknowledge that the compensation set forth herein and the other
      covenants and agreements of the Bank contained herein are fair and adequate
      compensation for Executive’s services and for the covenants of Executive as set
      forth herein.

     

    C.
        RESPONSIBILITIES

     

    11.  The
      Executive shall be employed as President and Chief Executive Officer of the
      Bank
      and shall faithfully devote his best efforts and his primary focus to his
      positions with the Bank. 

     

    12.  The
      Executive acknowledges and agrees that the duties and responsibilities of the
      Executive required by his position as President and Chief Executive Officer
      of
      the Bank are wholly within the discretion of its Board of Directors, and may
      be
      modified, or new duties and responsibilities imposed by the Board of Directors,
      at any time, without the approval or consent of the Executive. However, these
      new duties and responsibilities may not constitute immoral or unlawful acts.
      In
      addition, the new duties and responsibilities must be consistent with the
      Executive’s role as President or Chief Executive Officer of a financial
      institution.

     

    13.  The
      Executive acknowledges and agrees that, during the term of this Agreement,
      he
      has a fiduciary duty of loyalty to the Bank, and that he will not engage in
      any
      activity during the term of this Agreement, which will or could, in any
      significant way, harm the business, business interests, or reputation of the
      Bank or the reputation of the Board of Directors.

     

    14.  The
      Executive shall not directly or indirectly engage in competition with the Bank
      at any time during the existence of the employment relationship between the
      Bank
      and the Executive, and the Executive will not on his own behalf, or as another’s
      agent or employee, engage in any of the same or similar duties and/or
      Bank-related responsibilities required by the Executive’s position with the
      Bank, other than as an employee of the Bank pursuant to this Agreement or as
      specifically approved by the Board of Directors. In addition, without the prior
      written consent of the Board of Directors, Executive shall not usurp for himself
      any corporate opportunity available to the Bank.

     

    D.
        NONINTERFERENCE

     

    15.  Executive
      acknowledges that, as part of his employment with the Bank, he will become
      familiar with the salary, pay scale, capabilities, experiences, skill and
      desires of the Bank’s employees. Executive agrees to maintain the
      confidentiality of such information. Executive further covenants and agrees
      that, for a period of one year subsequent to the termination of this Agreement,
      whether such termination occurs at the insistence of the Bank or the Executive,
      the Executive shall not recruit, hire, or attempt to recruit or hire, directly
      or by assisting others, any other employees of the Bank, nor shall the Executive
      contact or communicate with any other employees of the Bank for the purpose
      of
      inducing other employees to terminate their employment with the Bank. For
      purposes of this covenant, “other employees” shall refer to employees who are
      still actively employed by or were employed by the Bank within the prior year,
      or doing business with, the Bank at the time of the attempted recruiting or
      hiring.

     

    16.  In
      his
      position of employment, the Executive will be exposed to confidential
      information and trade secrets (hereafter “Proprietary Information”) pertaining
      to, or arising from, the business of the Bank and its affiliates (if any).
      The
      Executive hereby agrees and acknowledges that such Proprietary Information
      is
      unique and valu-able to the Bank’s business and that the Bank would suffer
      irreparable injury if this information were publicly disclosed. There-fore,
      the
      Executive agrees to keep in strict secrecy and confidence, both during and
      after
      the period of his employment, any and all Proprietary Information which the
      Executive acquires, or to which the Executive has access, during employment
      by
      the Bank, that has not been publicly disclosed by the Bank. The Proprietary
      Information covered by this Agreement shall include, but shall not be limited
      to: (i) the identities of the Bank’s existing and prospective customers or
      clients, including names, addresses, credit status, and pricing levels; (ii)
      the
      buying and selling habits and customs of the Bank’s existing and prospective
      customers or clients; (iii) financial information about the Bank; (iv) product
      and systems specifications, concepts for new or improved products and other
      product or systems data; (v) the identities of, and special skills possessed
      by,
      the Bank’s employees; (vi) the identities of and pricing information about the
      Bank’s suppliers and vendors; (vii) training programs developed by the Bank;
      (viii) pricing studies, information and analyses; (ix) current and prospective
      products and inventories; (x) financial models, business projections and market
      studies; (xi) the Bank’s financial results and business conditions; (xii)
      business plans and strategies; (xiii) special processes, procedures, and
      services of the Bank and its suppliers and vendors; and (xiv) computer programs
      and software developed by the Bank or its consultants. The
      provisions and agreements entered into herein shall survive the term of the
      Employee’s employment to the extent reasonably necessary to accomplish their
      purpose in protecting the interests of the Bank in any Proprietary Information
      disclosed to, or learned by, the Executive while employed.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    17.  The
      Executive expressly represents that he has no agreements with, or obligations
      to, any party which conflict, or may conflict, with the inter-ests of the Bank
      or with the Executive’s duties as an employee of the Bank.

     

    18.  Executive
      acknowledges that the special relationship of trust and confidence between
      him,
      the Bank, and its clients and customers creates a high risk and opportunity
      for
      Executive to misappropriate the relationship and goodwill existing between
      the
      Bank and its clients and customers. Executive further acknowledges and agrees
      that it is fair and reasonable for the Bank to take steps to protect itself
      from
      the risk of such misappropriation. Executive further acknowledges that, at
      the
      outset of his employment with the Bank and throughout his employment with the
      Bank, Executive will be provided with access to and informed of Proprietary
      Information, which will enable him to benefit from the Bank’s goodwill and
      know-how.

     

    19.  Executive
      acknowledges that it would be inevitable in the performance of his duties as
      a
      director, officer, employee, investor, agent or consultant of any person,
      association, entity, or company which competes with the Bank, or which intends
      to or may compete with the Bank, to disclose and/or use Proprietary Information,
      as well as to misappropriate the Bank’s goodwill and know-how, to or for the
      benefit of such other person, association, entity, or company. Executive also
      acknowledges that, in exchange for the execution of the non-solicitation
      restriction set forth in these NONINTERFERENCE provisions, he has received
      substantial, valuable consideration, including: (i) confidential trade secret
      and proprietary information relating to the identity and special needs of the
      Bank’s current and prospective customers, the Bank’s current and prospective
      services, the Bank’s business projections and market studies, the Bank’s
      business plans and strategies, the Bank’s studies and information concerning
      special services unique to the Bank; (ii) employment; and (iii)
      compensation and benefits as described in this Agreement. Executive further
      acknowledges and agrees that this consideration constitutes fair and adequate
      consideration for the execution of the non-solicitation restriction set forth
      herein.

     

    20.  In
      consideration for the above-recited valuable consideration, as well as to
      protect the vital interests described in these NONINTERFERENCE provisions,
      the
      Executive understands and agrees that during the continuation of this Agreement
      and for a period of one year following the termination of this Agreement by
      either party, for whatever reason, the Executive will not be or become engaged
      in any way (directly or indirectly), as an individual proprietor, beneficiary,
      trustee, owner, partner, stockholder, officer, director, executive, investor,
      lender, sales representative, or in any other capacity, whatsoever, in any
      activity or endeavor which competes or conflicts with the Bank’s business or the
      business of the Bank or the business of any of their respective affiliates
      (if
      any), as such business has been conducted during the years of the Executive’s
      employment with the Bank, within [describe
      noninterference area].
      It is
      the parties’ desire that these restrictions be enforced to the fullest extent
      allowed by law.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    21.  Executive
      agrees that the restriction set forth above is ancillary to an otherwise
      enforceable agreement, is supported by independent valuable consideration,
      and
      that the limitations as to time, geographical area, and scope of activity to
      be
      restrained by Paragraph 20
      are
      reasonable and acceptable, and do not impose any greater restraint than is
      reasonably necessary to protect the goodwill and other business interests of
      the
      Bank. This Section creates a narrowly tailored advance approval requirement
      in
      order to avoid unfair competition and irreparable harm to the Bank and is not
      intended or to be construed as a general restraint from engaging in a lawful
      profession or a general covenant against competition. Nothing herein will
      prohibit (i) beneficial ownership of less than 5% of the publicly traded capital
      stock of a corporation listed on a national securities exchange so long as
      this
      is not a controlling interest, or (ii) ownership of mutual fund investments.
      Executive may not avoid the purpose and intent of this paragraph by engaging
      in
      conduct within the geographically limited area from a remote location through
      means such as telecommunications, written correspondence, computer generated
      or
      assisted communications, or other similar methods. Executive agrees that if,
      at
      some later date, a court of competent jurisdiction determines that the
      non-solicitation agreement set forth in this Section does not meet the criteria
      set forth by applicable law, this Section may be reformed by the court and
      enforced to the maximum extent permitted under applicable law.
      Executive
      understands that his obligations under this Section shall not be assignable
      by
      him.

     

    22.  Executive
      acknowledges that the covenants set forth in these NONINTERFERENCE provisions
      are material conditions to the Bank’s willingness to execute and deliver this
      Agreement and to provide Executive the compensation and benefits and other
      consideration provided hereunder. The parties agree that the existence of any
      claim or cause of action of Executive against the Bank, whether predicated
      on
      this Agreement or otherwise, will not constitute a defense to the enforcement
      by
      the Bank of such covenants. It is specifically acknowledged that the periods
      following the termination of employment stated in Paragraphs 15
      and
20,
      during
      which the agreements and covenants of Executive made in such Paragraphs are
      effective, are to be computed by excluding from such computation any time during
      which Executive is in violation of any provision of Paragraph 15
      or
20.
      The
      covenants contained in these NONINTERFERENCE provisions will not be affected
      by
      any breach of any other provision hereof by any party hereto. In addition,
      Executive’s obligations under these NONINTERFERENCE provisions shall survive the
      termination of this Agreement and Executive’s employment with the Bank.
      Executive’s obligations under these NONINTERFERENCE provisions are in addition
      to, and not in limitation or preemption of, all other obligations of
      confidentiality which he may have to Bank under general legal or equitable
      principles, or other the Bank policies.

     

    E.
        REMEDIES

     

    23.  In
      the
      event that the Executive violates any of the provisions set forth in this
      Agreement relating to NONINTERFERENCE, Executive acknowledges that the Bank
      would suffer immediate and irreparable harm and would not have an adequate
      remedy at law for money damages. Accordingly, Executive agrees that, without
      the
      necessity of proving actual damages or posting bond or other security, the
      Bank
      shall be entitled to temporary or permanent injunction or injunctions to prevent
      breaches of such performance and to specific enforcement of such covenants
      in
      addition to any other remedy to which the Bank may be entitled, at law or in
      equity. In such a situation, the parties agree that the Bank may pursue any
      remedy available, including declaratory relief, concurrently or consecutively
      in
      any order as to any breach, violation, or threatened breach or violation of
      any
      of the provisions set forth in this Agreement relating to NONINTERFERENCE,
      and
      the pursuit of any particular remedy or remedies shall not be deemed an election
      of remedies or waiver of the right to pursue any other remedy.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    F.
        TERMINATION

     

    24.  The
      Board
      of Directors shall be entitled to terminate this Agreement, for any reason,
      by
      providing the Executive with thirty (30) days written notice of the termination.
      However, if this Agreement is terminated by the Bank without Good Cause, as
      defined in this Agreement, the Bank shall provide the Executive with the
      severance set
      forth
      in paragraph 34
      of this
      Agreement. 

     

    25.  For
      purposes of this Agreement,“Good
      Cause” shall be defined as the occurrence of one of the following
      events:

     

    a.  The
      determination of the Board of Directors, in the exercise of its reasonable
      judgment, that Executive has violated any provision of this Agreement or is
      grossly negligent in the performance of his duties hereunder, and has failed
      to
      cure such violation or the effects of such gross negligence within a reasonable
      period after written notice to the Executive by the Bank specifying in
      reasonable detail the alleged violation;

     

    b.  The
      determination of the Board of Directors, in the exercise of its reasonable
      judgment, that (i) Executive has failed to follow the policies adopted by the
      Board of Directors and has failed to cure such failure within a reasonable
      period after written notice to the Executive by the Bank specifying in
      reasonable detail the alleged failure; or (ii) Executive has engaged in such
      actions or omissions that would constitute unsafe or unsound banking
      practices;

     

    c.  The
      Executive is convicted of a misdemeanor involving moral turpitude or a
      felony;

     

    d.  The
      determination of the Board of Directors, in the exercise of its reasonable
      judgment, that the Executive has engaged in gross misconduct in the course
      and
      scope of his employment with the Bank including indecency, immorality, gross
      insubordination, dishonesty, unlawful harassment, use of illegal drugs, or
      fighting;

     

    e.  The
      determination of the Board of Directors, in the exercise of its reasonable
      judgment and in good faith, that the Executive’s job performance is
      substantially unsatisfactory and that Executive has failed to cure such
      performance within a reasonable period after written notice to the Executive
      by
      the Bank specifying in reasonable detail the nature of the unsatisfactory
      performance; or

     

    f.  The
      Executive is prohibited from engaging in the business of banking by any
      governmental regulatory agency having jurisdiction over the Bank.

     

    Notwithstanding
      anything in this Agreement to the contrary, Executive will not be in breach
      of
      this Agreement and his action or failure to act shall not be a basis for
      termination for Good Cause if Executive’s action or failure to act would
      constitute an unsafe or unsound banking practice or be reasonably expected
      to
      have a material adverse effect on the financial or regulatory condition of
      the
      Bank. 

     

    26.  Executive
      shall be entitled to terminate this Agreement at any time, for any reason,
      with
      or without cause, by providing thirty (30) days written notice to the Bank.
      The
      effective date of such resignation shall be the 30th
      calendar
      day following the date the notice is given or such other later date as may
      be
      set forth in the notice. Upon Executive’s resignation, Executive shall be
      entitled to receive any base salary which has been earned by him through the
      effective date of such resignation.

     

    27.  If
      Executive dies during the term of this Agreement and while in the employ of
      the
      Bank, this Agreement will terminate automatically, without notice, on the date
      of the Executive’s death and the Bank shall have any further obligation to
      Executive or his estate under this Agreement (other than death benefits payable
      under any benefit plans to which Executive is a party), except that the Bank
      shall pay Executive’s estate that portion of Executive’s base salary accrued
      through the date on which Executive’s death occurred. To
      the
      maximum extent, and for the term, permitted by the health benefit provisions
      of the Consolidated Omnibus Budget Reconciliation Act (COBRA) of
      1986,
      if
      Executive dies during
      the term of this Agreement and while in the employ of the Bank,
      the Bank
      shall provide or maintain health insurance benefits, at the Bank’s expense, for
      Executive’s spouse.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    28.  The
      Executive acknowledges and agrees that this Agreement will terminate
      immediately, without notice, in the event the Executive becomes physically
      or
      mentally disabled, as defined by 29 C.F.R. § 1630.2(g)(1), and cannot
      perform the essential functions of his position, with or without reasonable
      accommodation for the period designated by the Executive’s disability insurance
      after which disability payments will begin. In the event of a termination
      pursuant to this Section, the Bank shall be relieved of all its obligations
      under this Agreement, except that the Bank shall pay to Executive, or his estate
      in the event of his subsequent death, Executive’s base salary through the date
      on which such termination shall have occurred, reduced during such period by
      the
      amount of any benefits received by Executive under any disability policy
      maintained by the Bank.

     

    29.  Executive
      acknowledges that all memoranda, notes, records, reports, manuals, books,
      papers, letters, client and customer lists, contracts, software programs,
      information and records, drafts of instructions, guides and manuals, and other
      documentation (whether in draft or final form), and other sales or financial
      information and aids relating to the Bank’s business, and any and all other
      documents containing confidential information furnished to Executive by any
      representative of the Bank or otherwise acquired or developed by Executive
      in
      connection with his duties under this Agreement (collectively, “Recipient
      Materials”) shall at all times be the property of the Bank. Within three
      calendar days of the termination of this Agreement, Executive shall return
      to
      the Bank, any Recipient Materials which are in his possession, custody or
      control.

     

    30.  The
      provisions of provisions of Paragraphs 15,
      16,
      20-23,
      29-34,
      39,
      43
      and
45
      shall
      survive the termination of this Agreement.

     

    G.
        CHANGE
      IN CONTROL

     

    31.  The
      parties acknowledge that the Executive has agreed to assume the position of
      President and Chief Executive Officer and to enter into this Agreement based
      on
      his confidence in the current owners of the Bank and the direction of the Bank
      provided by the current Board of Directors. Upon a “Change of Control,” as
      defined below, the Executive may, at his option, notify the Bank within sixty
      (60) days following such Change of Control that he intends to terminate this
      Agreement based upon the Change of Control.

     

    In
      the
      event that Executive is terminated by the Bank within sixty (60) days following
      such Change of Control for any reason other than for Good Cause, Executive
      shall
      be entitled to elect to receive as severance the lump sum amount determined
      pursuant to Paragraph 32
      upon
      written notice to the Bank, in which case the severance provisions of Paragraph
      34
      shall
      not apply.

     

    32.  In
      the
      event that the Executive elects to terminate this Agreement based upon the
      Change in Control, the Bank shall pay to the Executive a cash lump sum payment
      equal to 199% of his
      Base
      Amount as defined in section 280G(b)(3) of the Internal Revenue Code of 1986,
      as
      amended (“Code”)
      within
      thirty (30) days of such notice.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    In
      the
      event that any compensation payable under this Agreement is determined to be
      a
“parachute payment” subject to the excise tax imposed by Section 4999 of the
      Code or any successor provision (the “Excise Tax”), the Bank agrees to pay to
      the Executive an additional sum (the “Gross Up”) in an amount such that the net
      amount retained by the Executive, after receiving both the payment and the
      Gross
      Up and after paying: (i) any Excise Tax on the payment and the Gross Up, and
      (ii) any federal, state, and local income taxes on the Gross Up, is equal to
      the
      amount of the payment.

     

    For
      purposes of determining the Gross Up, the Executive shall be deemed to pay
      federal, state, and local income taxes at the highest marginal rate of taxation
      in his filing status for the calendar year in which the payment is to be made
      based upon the Executive’s domicile on the date of the event that triggers the
      Excise Tax. The determination of whether such Excise Tax is payable and the
      amount of such Excise Tax shall be based upon the opinion of tax counsel
      selected by the Bank, subject to the reasonable approval of the Executive.
      If
      such opinion is not finally accepted by the Internal Revenue Service, then
      appropriate adjustments shall be calculated (with additional Gross Up determined
      based on the principals outlined in the previous paragraph, if applicable)
      by
      such tax counsel based upon the final amount of Excise Tax so determined
      together with any applicable penalties and interest. The final amount shall
      be
      paid, if applicable, within thirty (30) days after such calculations are
      completed, but in no event later than April 1st
      of the
      year following the event that triggers the Excise Tax. Such compensation shall
      be payable in equal disbursements in accordance with the Bank’s ordinary payroll
      policies and procedures. The Executive will also continue to receive his
      automobile allowance provided by the Bank for a period of twelve (12) months
      following the date of termination.

     

    33.  As
      used
      in this Agreement, a “Change of Control” shall be deemed to have occurred in
      each of the following instances:

     

    a.  A
      reorganization, merger, consolidation or other corporate transaction involving
      the Bank, in each case, with respect to which the shareholders of the Bank,
      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.

     

    b.  The
      sale,
      transfer or assignment of all or substantially all of the assets of the Bank
      to
      any third party.

     

    c.  The
      acquisition by any individual, entity or “group,” within the meaning of Section
      13(d)(3) or Section 14(d)(2) of the Exchange Act (a “Person”), of beneficial
      ownership (within the meaning of Rule 13d-3 promulgated under the Exchange
      Act)
      of voting securities of the Bank where such acquisition causes any such Person
      to own twenty percent (20%) or more of the combined voting power of the Bank’s
      then outstanding capital stock then entitled to vote generally in the election
      of directors; provided however, that a Change in Control shall not be deemed
      to
      have occurred if a Person becomes the beneficial owner of twenty percent of
      the
      combined voting power of the Bank’s then outstanding capital stock solely as a
      result of the repurchase of voting securities by the Bank.

     

    d.  During
      any period of two consecutive years, the persons who were directors of the
      Bank
      immediately before the beginning of the two year 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 two year period whose election, or nomination for election
      by
      the Bank’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 Exchange Act).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Notwithstanding
      anything contained herein to the contrary, if Executive’s employment is
      terminated and he reasonably demonstrates that such termination was at the
      request of a third party who has indicated an intention of taking steps
      reasonably calculated to effect a Change in Control and who effects a Change
      in
      Control, or such termination otherwise occurred in connection with, or in
      anticipation of, a Change in Control which actually occurs, then for all
      purposes hereof, a Change in Control shall be deemed to have occurred on the
      day
      immediately prior to the date of such termination of his
      employment.

     

    H.
        SEVERANCE

     

    34.  Except
      as
      otherwise expressly provided herein, if Bank terminates Executive’s employment
      for any reason other than Good Cause (as defined in this Agreement) after the
      first anniversary date of the Effective Date of this Agreement, then Executive
      shall be entitled to severance pay in an amount not less than the base salary
      that would have been due the Executive had he remained employed for six (6)
      months following termination. If Bank terminates Executive’s employment for any
      reason other than Good Cause (as defined in this Agreement) after the second
      anniversary date of the Effective Date of this Agreement, then Executive shall
      be entitled to severance pay in an amount equal to the base salary that would
      have been due the Executive had he remained employed for one year following
      termination. In the event that the Executive is entitled to any payment under
      Section G, no payment shall be due under this Section H.
      Any
      severance pay due to Executive pursuant to this Section H shall be paid in
      accordance with the terms of normal payroll procedure of the Bank. 

     

    I.
        SEVERABILITY

     

    35.  If
      any
      term or other provision of this Agreement is held to be illegal, invalid or
      unenforceable by any rule of law or public policy, (A) such term or provision
      shall be fully severable and this Agreement shall be construed and enforced
      as
      if such illegal, invalid or unenforceable provision were not a part hereof;
      (B)
      the remaining provisions of this Agreement shall remain in full force and effect
      and shall not be affected by such illegal, invalid or unenforceable provision
      or
      by its severance from this Agreement; and (C) there shall be added automatically
      as a part of this 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 Agreement is so broad as to be unenforceable, the provision
      shall be interpreted to be only as broad as is enforceable.

     

    J.
        WAIVER

     

    36.  The
      parties acknowledge and agree that the failure of either to enforce any
      provision of this Agreement shall not constitute a waiver of that particular
      provision, or of any other provisions of this Agreement.

     

    K.
        SUCCESSORS
      AND ASSIGNS

     

    37.  The
      Executive acknowledges and agrees that this Agreement may be assigned by the
      Bank to any successor-in-interest and shall inure to the benefit of, and be
      fully enforceable by, any successor and/or assignee; and this Agreement will
      be
      fully binding upon, and may be enforced by the Executive against, any successor
      and/or assignee of the Bank.

     

    38.  The
      Executive acknowledges and agrees that his obligations, duties and
      responsibilities under this Agreement are personal and shall not be assignable,
      and that this Agreement shall be enforceable by the Executive only. In the
      event
      of the Executive’s death, this Agreement shall be enforceable by the Executive’s
      estate, executors and/or legal representatives, only to the extent provided
      herein.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    L.
        CHOICE
      OF LAW

     

    39.  THIS
      AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND ALL QUESTIONS
      CONCERNING THE CONSTRUCTION, VALIDITY, INTERPRETATION AND PERFORMANCE OF THIS
      AGREEMENT SHALL BE GOVERNED BY, THE LAWS OF THE STATE OF MICHIGAN, WITHOUT
      GIVING EFFECT TO PROVISION THEREOF REGARDING CONFLICT OF LAWS. IT IS STIPULATED
      THAT MICHIGAN HAS A COMPELLING STATE INTEREST IN THE SUBJECT MATTER OF THIS
      AGREEMENT, AND THAT EXECUTIVE HAS OR WILL HAVE REGULAR CONTACT WITH THE STATE
      OF
      MICHIGAN IN THE PERFORMANCE OF THIS AGREEMENT.

     

    M.
        MODIFICATION

     

    40.  The
      parties acknowledge and agree that this Agreement and the other agreements
      and
      plans referenced herein constitute the complete and entire agreement between
      the
      parties; that each executed this Agreement based upon the express terms and
      provisions set forth herein; that, in accepting employment with the Bank,
      Executive has not relied on any representations, oral or written, which are
      not
      set forth in this Agreement; that no previous agreement, either oral or written,
      shall have any effect on the terms or provisions of this Agreement; and that
      all
      previous agreements, either oral or written, are expressly superseded and
      revoked by this Agreement. Except as otherwise expressly provided in this
      Agreement, no conditions, usage of trade, course of dealing or performance,
      understanding or agreement purporting to modify, vary, explain or supplement
      the
      terms or conditions of this Agreement unless hereafter made in writing and
      signed by the party to be bound. No waiver shall be deemed a continuing waiver
      or a waiver of any subsequent breach or default, either of a similar or
      different nature, unless expressly so stated in writing. 

     

    41.  Except
      as
      otherwise expressly provided in this Agreement, no conditions, usage of trade,
      course of dealing or performance, understanding or agreement purporting to
      modify, vary, explain or supplement the terms or conditions of this Agreement
      unless hereafter made (i) in
      writing, (ii) referencing an express provision in this Agreement,
      (iii) signed by the Executive, and (iv) approved by a disinterested
      majority of the Board of Directors.

     

    N.
        INDEMNIFICATION

     

    42.  During
      the term of this Agreement, the Bank shall indemnify the Executive against
      all
      judgments, penalties, fines, amounts paid in settlement and reasonable expenses
      (including, but not limited to, attorneys’ fees) relating to his employment by
      the Bank to the fullest extent permissible under the law, including, without
      limitation, federal and/or state banking laws and regulations, the Michigan
      Banking Code of 1999, as amended, the Michigan Business Corporation Act, as
      amended, and the Bank’s Articles of Incorporation. To the extent permitted by
      law, the Bank may purchase such indemnification insurance as the Board may
      from
      time to time determine.

     

    O.
        ARBITRATION

     

    43.  Any
      dispute, controversy, or claim arising out of or relating to this Agreement
      or
      breach thereof, or arising out of or relating in any way to the employment
      of
      the Executive or the termination thereof, shall be submitted to arbitration
      in
      accordance with the Employment Dispute Arbitration Rules of the American
      Arbitration Association. Judgment upon the award rendered by the arbitrator
      may
      be entered in any court of competent jurisdiction. In reaching his or her
      decision, the arbitrator shall have no authority to ignore, change, modify,
      add
      to or delete from any provision of this Agreement, but instead is limited to
      interpreting this Agreement. Notwithstanding the arbitration provisions set
      forth in this Agreement, the Executive and the Bank acknowledge and agree that
      nothing in this Agreement shall be construed to require the arbitration of
      any
      claim or controversy arising under the NONINTERFERENCE provisions of this
      Agreement. These provisions shall be enforceable by any court of competent
      jurisdiction and shall not be subject to this Paragraph of the Agreement. The
      Executive and the Bank further acknowledge and agree that nothing in this
      Agreement shall be construed to require arbitration of any claim for workers’
      compensation or unemployment compensation.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    P.
        LEGAL
      CONSULTATION

     

    44.  Each
      party acknowledges that it has carefully read this agreement, that it has had
      an
      opportunity to consult with his or its attorney concerning the meaning, import
      and legal significance of this Agreement, that it understands the terms of
      the
      Agreement, that all understandings and agreements between Executive and the
      Bank
      relating to the subjects covered in this Agreement are contained in it, and
      that
      it has entered into the Agreement voluntarily and not in reliance on any
      promises or representations by the other than those contained in this
      Agreement.

     

    Q.
        MISCELLANEOUS

     

    45.  The
      Executive shall make himself available, upon the request of the Bank, to testify
      or otherwise assist in litigation, arbitration, or other disputes involving
      the
      Bank, or any of the directors, officers, employees, subsidiaries, or parent
      corporations of either, at no additional cost during the term of this Agreement
      and at any time following the termination of this Agreement.

     

    46.  The
      Executive shall not be required to mitigate the amount of any payment provided
      for in this Agreement by seeking other employment or otherwise, nor shall the
      amount of any payment provided for in this Agreement be reduced by any
      compensation earned by the Executive as the result of employment by another
      employer after the date of termination, or otherwise.

     

    47.  In
      the
      event either party institutes arbitration or litigation to enforce or protect
      its rights under this Agreement, the prevailing party in such arbitration or
      litigation shall be entitled, in addition to all other relief, to reasonable
      attorneys fees, out-of-pocket costs, disbursements, and arbitrator’s fees
      relating to such arbitration or litigation.

     

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

     

    49.  The
      Bank
      shall have no obligation to set aside, earmark or entrust any fund or money
      with
      which to pay its obligations under this Agreement. The Executive or any
      successor-in-interest to Executive shall be and remain simply a general creditor
      of the Bank in the same manner as any other creditor having a general unsecured
      claim. For purposes of the Code, the Bank intends this Agreement to be an
      unfunded, unsecured promise to pay on the part of the Bank. For purposes of
      Employee Retirement Income Security Act of 1974, as amended (“ERISA”), the Bank
      intends that this Agreement not be subject to ERISA. If it is deemed subject
      to
      ERISA, it is intended to be an unfunded arrangement for the benefit of a select
      member of management, who is a highly compensated employee of the Bank for
      the
      purpose of qualifying this Agreement for the “top hat” plan exception under
      sections 201(2), 301(a)(3) and 401(a)(1) of ERISA. At no time shall the
      Executive have or be deemed to have any lien nor right, title or interest in
      or
      to any specific investment or to any assets of the Bank. If the Bank elects
      to
      invest in a life insurance, disability or annuity policy upon the life of
      Executive, the Executive shall assist the Bank by freely submitting to a
      physical examination and supplying such additional information necessary to
      obtain such insurance or annuities.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    50.  When
      a
      reference is made in this Agreement to a Paragraph, such reference shall be
      to a
      Paragraph of this Agreement unless otherwise indicated. The headings contained
      in this Agreement are for convenience of reference only and shall not affect
      in
      any way the meaning or interpretation of this Agreement. Whenever the words
      “include”, “includes” or “including” are used in this Agreement, they shall 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 Agreement
      shall refer to this Agreement as a whole and not to any particular provision
      in
      this Agreement. Each use herein of the masculine, neuter or feminine gender
      shall be deemed to include the other genders.
      Each
      use
      herein of the plural shall 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 or instrument defined or
      referred to herein or in any agreement or instrument that is referred to herein
      means such agreement or instrument as from time to time amended, modified or
      supplemented, including by waiver or consent.
      References to a person are also to its permitted successors or
      assigns.

     

    51.  Executive
      represents that his service as an employee of the Bank will not violate any
      agreement: (i) he has made that prohibits him from disclosing any information
      he
      acquired prior to his becoming employed by the Bank; or (ii) he has made that
      prohibits him from accepting employment with the Bank or that will interfere
      with his compliance with the terms of this Agreement. Executive further
      represents that he has not previously, and will not in the future, disclose
      to
      Bank any proprietary information or trade secrets belonging to any previous
      employer. Executive acknowledges that the Bank has instructed him not to
      disclose to it any proprietary information or trade secrets belonging to any
      previous employer.

     

    R.
        NOTICES

     

    52.  All
      notices and other communications required or permitted to be given or delivered
      hereunder or by reason of the provisions of this Agreement shall be in writing
      and shall be deemed to have been properly given if (a) delivered personally,
      (b)
      delivered by a recognized overnight courier service, (c) sent by United States
      mail, or (d) sent by facsimile transmission followed by a confirmation copy
      delivered by recognized overnight courier service the next day. Such notices,
      requests, consents and other communications shall be sent to the respective
      parties as follows (or at such other address for a party as shall be specified
      by like notice to the other party):

     

    If
      to the
      Bank:

    ________________________

    ________________________

    ________________________

    Attention:
      Chairman

    

    If
      to
      Executive:

    Robert
      Farr 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    53.  Any
      notice or other communication given pursuant to this Agreement shall be
      effective (i) in the case of personal delivery, telex or facsimile transmission,
      when received; (ii) in the case of mail, upon the earlier of actual receipt
      or
      five (5) business days after deposit with the United States Postal Service,
      first class certified or registered mail, postage prepaid, return receipt
      requested; and (iii) in the case of a recognized overnight courier service,
      one
      (1) business day after delivery to the courier service together with all
      appropriate fees or charges and instructions for overnight delivery. Any and
      all
      notices of documents or other notices required to be delivered under the terms
      of this Agreement shall be addressed to each party as follows:

     

    [signature
      page follows] 

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    [signature
      page to Employment
      Agreement]

    

     

    EXECUTED
      ON THIS DATE FIRST WRITTEN ABOVE IN Birmigham, MICHIGAN.

     

    

    
      	 	 	EXECUTIVE 
	 	 	 
	/s/ Donna S. Sterner	 	/s/
              Robert Farr
	WITNESS	 	Robert Farr
	 	 	 
	 	 	 
	 	 	BANK
	 	 	 
	 	 	 
	/s/ Barbara A. Riopelle	 	By:  /s/ Charles
              Pryde 
	WITNESS	 	
              Compensation
                Committee MemberUnassociated Document

    

      EXECUTIVE
        EMPLOYMENT AGREEMENT

       

      This
        EXECUTIVE
        EMPLOYMENT AGREEMENT
        (“Agreement”) is made and entered into as of this 20th of December, 2004, by and
        between Bank of Birmingham, a Michigan state bank (“Bank”), and Richard Miller,
        an individual resident of the State of Michigan (“Executive”).

       

      WHEREAS,
        the
        Executive has considerable experience, expertise and training in management
        related to banking and services offered by the Bank; and

       

      WHEREAS,
        the
        Bank desires for the Executive to be employed as the Chief Financial Officer
        of
        the Bank, and Executive desires to accept employment, subject to and on the
        terms and conditions set forth in this Agreement; and

       

      WHEREAS,
        both
        the Bank and the Executive have read and understood the terms and provisions
        set
        forth in this Agreement and have been afforded a reasonable opportunity to
        review this Agreement with their respective legal counsel.

       

      NOW,
        THEREFORE,
        in
        consideration of the mutual promises and covenants set forth in this Agreement,
        the Executive and the Bank agree as follows:

       

      A.
          DURATION

       

      1.  This
        Agreement shall become effective (the “Effective Date”) upon the date that the
        Bank opens for business shall continue in full force and effect, subject
        to
        Paragraph 2
        below,
        until the third anniversary date of the Effective Date, unless earlier
        terminated as provided herein.

       

      2.  The
        Bank
        and the Executive acknowledge and agree that the parties may agree to continue
        the employment relationship upon such terms as they may mutually agree.
        Following the initial three year term of this Agreement, the Agreement shall
        automatically renew annually for a term of one year, unless either party
        elects
        to terminate this Agreement by sending written notice of non-renewal at least
        thirty (30) calendar days prior to the expiration of the then current term.
        If
        this Agreement expires as a result of non-renewal, the employment of the
        Executive shall automatically terminate upon the expiration of the then current
        term. 

       

      B.
          COMPENSATION

       

      3.  All
        payments of salary and other compensation to the Executive shall be payable
        in
        accordance with the Bank’s ordinary payroll and other policies and
        procedures.

       

      a.  During
        the term of this Agreement, the Bank agrees to pay Executive a base salary
        of
        not less than $125,000 annually, appropriately prorated for partial months
        at
        the commencement and end of the term of this Agreement.

       

      b.  The
        Bank
        shall have the right to deduct from any payment of compensation to Executive
        hereunder any federal, state or local taxes required by law to be withheld
        with
        respect to such payments and any other amounts specifically authorized to
        be
        withheld or deducted by Executive.

       

      c.  During
        the term of this Agreement, it is anticipated that the Board of Directors
        or a
        delegated committee thereof will adopt an executive incentive bonus plan
        based
        upon the asset growth and profitability of the Bank. The Executive will be
        entitled to participate in such plan. Executive shall also be entitled to
        participate in any benefit programs applicable to all employees of the Bank
        or
        to executive employees of the Bank in accordance with Bank policy and the
        provisions of said benefit programs.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      d.  Executive
        shall receive options to purchase shares of common stock of the Bank at an
        exercise price of $10.00 per share, the number of options to be equal to
        30,000.
        The options shall have a term of ten years from the date of issuance, which
        shall be the Effective Date, and to the extent permitted by law, shall be
        treated as incentive stock options. The options shall be evidenced by a stock
        option agreement, which shall have such terms as are consistent with those
        set
        forth above and such additional terms, including with respect to vesting,
        as may
        be set forth in the stock option agreement or the stock option plan pursuant
        to
        which the options are granted.

       

      4.  The
        Bank
        shall provide the Executive with a cellular phone and laptop computer for
        use in
        the performance of his duties and obligations under this Agreement. The Bank
        shall also reimburse the Executive for all reasonable expenses, including,
        but
        not limited to, travel expenses, lodging expenses, and meals and entertainment
        expenses, that the Executive may incur in the performance of his duties and
        obligations under this Agreement; provided, however, that the Executive shall
        be
        required to submit receipts or other acceptable documentation to the cashier
        of
        the Bank or such other officer designated by the Board to verify such expenses
        prior to any reimbursements.
        In
        addition to the reimbursement of expenses listed in this Paragraph, the Bank
        shall pay, or reimburse Executive, for reasonable initiation fees for trade
        association memberships deemed to be acceptable and appropriate by the Board
        of
        Directors.  

       

      5.  Subject
        to the provisions of Paragraph 9
        of this
        Agreement, the Executive shall be entitled to receive employee and dependent
        health insurance, dental insurance, paid sick leave and four (4) weeks of
        paid
        vacation per year, and any additional benefits provided to all Bank employees
        all in accordance with the Bank’s employment policies. 

       

      6.  The
        Bank
        shall also provide the Executive with a salary continuation plan, with such
        terms as are approved by Executive and the Board of Directors of the Bank.
        

       

      7.  The
        Bank
        shall also provide the Executive with term life insurance coverage in an
        initial
        amount not to exceed 200% of Executive’s base salary, and having a term not less
        than ten years. If, during the term of this Agreement, the Bank adopts a
        plan
        providing life insurance benefits to other Bank employees and the maximum
        coverage under such plan exceeds the maximum permissible coverage provided
        by
        this Paragraph, then notwithstanding the provisions of this Paragraph, Executive
        shall be entitled to participate in the Bank’s life insurance benefit plan to
        the full extent that it is available to other Bank employees.

       

      8.  The
        Board
        of Directors or a delegated committee shall review the amount of Executive’s
        compensation, including his base salary, not less than annually and shall
        increase such base salary as a result of such review and to provide reasonable
        cost of living adjustments, all in the discretion of the Board of Directors
        or
        such committee and consistent with safe and sound banking practices; provided
        however that Executive’s base salary, bonuses, vacation and car allowance shall
        not be less than the amounts set forth in Paragraphs 3,
        4,
        and 5
        at any time during the term of this Agreement. 

       

      9.  All
        employee benefits provided to the Executive by the Bank incident to the
        Executive’s employment shall be governed by the applicable plan documents,
        summary plan descriptions or employment policies, and may be modified, suspended
        or revoked at any time, in accordance with the terms and provisions of the
        applicable documents.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      10.  The
        parties hereto acknowledge that the compensation set forth herein and the
        other
        covenants and agreements of the Bank contained herein are fair and adequate
        compensation for Executive’s services and for the covenants of Executive as set
        forth herein.

       

      C.
          RESPONSIBILITIES

       

      11.  The
        Executive shall be employed as the Chief Financial Officer of the Bank and
        shall
        faithfully devote his best efforts and his primary focus to his positions
        with
        the Bank. 

       

      12.  The
        Executive acknowledges and agrees that the duties and responsibilities of
        the
        Executive required by his position as the Chief Financial Officer of the
        Bank
        are wholly within the discretion of its Board of Directors, and may be modified,
        or new duties and responsibilities imposed by the Board of Directors, at
        any
        time, without the approval or consent of the Executive. However, these new
        duties and responsibilities may not constitute immoral or unlawful acts.
        In
        addition, the new duties and responsibilities must be consistent with the
        Executive’s role as the Chief Financial Officer of a financial
        institution.

       

      13.  The
        Executive acknowledges and agrees that, during the term of this Agreement,
        he
        has a fiduciary duty of loyalty to the Bank, and that he will not engage
        in any
        activity during the term of this Agreement, which will or could, in any
        significant way, harm the business, business interests, or reputation of
        the
        Bank or the reputation of the Board of Directors.

       

      14.  The
        Executive shall not directly or indirectly engage in competition with the
        Bank
        at any time during the existence of the employment relationship between the
        Bank
        and the Executive, and the Executive will not on his own behalf, or as another’s
        agent or employee, engage in any of the same or similar duties and/or
        Bank-related responsibilities required by the Executive’s position with the
        Bank, other than as an employee of the Bank pursuant to this Agreement or
        as
        specifically approved by the Board of Directors. In addition, without the
        prior
        written consent of the Board of Directors, Executive shall not usurp for
        himself
        any corporate opportunity available to the Bank.

       

      D.
          NONINTERFERENCE

       

      15.  Executive
        acknowledges that, as part of his employment with the Bank, he will become
        familiar with the salary, pay scale, capabilities, experiences, skill and
        desires of the Bank’s employees. Executive agrees to maintain the
        confidentiality of such information. Executive further covenants and agrees
        that, for a period of one year subsequent to the termination of this Agreement,
        whether such termination occurs at the insistence of the Bank or the Executive,
        the Executive shall not recruit, hire, or attempt to recruit or hire, directly
        or by assisting others, any other employees of the Bank, nor shall the Executive
        contact or communicate with any other employees of the Bank for the purpose
        of
        inducing other employees to terminate their employment with the Bank. For
        purposes of this covenant, “other employees” shall refer to employees who are
        still actively employed by or were employed by the Bank within the prior
        year,
        or doing business with, the Bank at the time of the attempted recruiting
        or
        hiring.

       

      16.  In
        his
        position of employment, the Executive will be exposed to confidential
        information and trade secrets (hereafter “Proprietary Information”) pertaining
        to, or arising from, the business of the Bank and its affiliates (if any).
        The
        Executive hereby agrees and acknowledges that such Proprietary Information
        is
        unique and valu-able to the Bank’s business and that the Bank would suffer
        irreparable injury if this information were publicly disclosed. There-fore,
        the
        Executive agrees to keep in strict secrecy and confidence, both during and
        after
        the period of his employment, any and all Proprietary Information which the
        Executive acquires, or to which the Executive has access, during employment
        by
        the Bank, that has not been publicly disclosed by the Bank. The Proprietary
        Information covered by this Agreement shall include, but shall not be limited
        to: (i) the identities of the Bank’s existing and prospective customers or
        clients, including names, addresses, credit status, and pricing levels; (ii)
        the
        buying and selling habits and customs of the Bank’s existing and prospective
        customers or clients; (iii) financial information about the Bank; (iv) product
        and systems specifications, concepts for new or improved products and other
        product or systems data; (v) the identities of, and special skills possessed
        by,
        the Bank’s employees; (vi) the identities of and pricing information about the
        Bank’s suppliers and vendors; (vii) training programs developed by the Bank;
        (viii) pricing studies, information and analyses; (ix) current and prospective
        products and inventories; (x) financial models, business projections and
        market
        studies; (xi) the Bank’s financial results and business conditions; (xii)
        business plans and strategies; (xiii) special processes, procedures, and
        services of the Bank and its suppliers and vendors; and (xiv) computer programs
        and software developed by the Bank or its consultants. The
        provisions and agreements entered into herein shall survive the term of the
        Employee’s employment to the extent reasonably necessary to accomplish their
        purpose in protecting the interests of the Bank in any Proprietary Information
        disclosed to, or learned by, the Executive while employed.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      17.  The
        Executive expressly represents that he has no agreements with, or obligations
        to, any party which conflict, or may conflict, with the inter-ests of the
        Bank
        or with the Executive’s duties as an employee of the Bank.

       

      18.  Executive
        acknowledges that the special relationship of trust and confidence between
        him,
        the Bank, and its clients and customers creates a high risk and opportunity
        for
        Executive to misappropriate the relationship and goodwill existing between
        the
        Bank and its clients and customers. Executive further acknowledges and agrees
        that it is fair and reasonable for the Bank to take steps to protect itself
        from
        the risk of such misappropriation. Executive further acknowledges that, at
        the
        outset of his employment with the Bank and throughout his employment with
        the
        Bank, Executive will be provided with access to and informed of Proprietary
        Information, which will enable him to benefit from the Bank’s goodwill and
        know-how.

       

      19.  Executive
        acknowledges that it would be inevitable in the performance of his duties
        as a
        director, officer, employee, investor, agent or consultant of any person,
        association, entity, or company which competes with the Bank, or which intends
        to or may compete with the Bank, to disclose and/or use Proprietary Information,
        as well as to misappropriate the Bank’s goodwill and know-how, to or for the
        benefit of such other person, association, entity, or company. Executive
        also
        acknowledges that, in exchange for the execution of the non-solicitation
        restriction set forth in these NONINTERFERENCE provisions, he has received
        substantial, valuable consideration, including: (i) confidential trade secret
        and proprietary information relating to the identity and special needs of
        the
        Bank’s current and prospective customers, the Bank’s current and prospective
        services, the Bank’s business projections and market studies, the Bank’s
        business plans and strategies, the Bank’s studies and information concerning
        special services unique to the Bank; (ii) employment; and (iii)
        compensation and benefits as described in this Agreement. Executive further
        acknowledges and agrees that this consideration constitutes fair and adequate
        consideration for the execution of the non-solicitation restriction set forth
        herein.

       

      20.  In
        consideration for the above-recited valuable consideration, as well as to
        protect the vital interests described in these NONINTERFERENCE provisions,
        the
        Executive understands and agrees that during the continuation of this Agreement
        and for a period of one year following the termination of this Agreement
        by
        either party, for any reason (other than for termination of Executive for
        circumstances described in Paragraph 25(e),
        below), the Executive will not be or become engaged in any way (directly
        or
        indirectly), as an individual proprietor, beneficiary, trustee, owner, partner,
        stockholder, officer, director, executive, investor, lender, sales
        representative, or in any other capacity, whatsoever, in any activity or
        endeavor which competes or conflicts with the Bank’s business or the business of
        the Bank or the business of any of their respective affiliates (if any),
        as such
        business has been conducted during the years of the Executive’s employment with
        the Bank, within the following Michigan cities/towns: Bloomfield, Bloomfield
        Hills, Beverly Hills, Birmingham, Franklin, and Bingham Farms. It is the
        parties’ desire that these restrictions be enforced to the fullest extent
        allowed by law.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      21.  Executive
        agrees that the restriction set forth above is ancillary to an otherwise
        enforceable agreement, is supported by independent valuable consideration,
        and
        that the limitations as to time, geographical area, and scope of activity
        to be
        restrained by Paragraph 20
        are
        reasonable and acceptable, and do not impose any greater restraint than is
        reasonably necessary to protect the goodwill and other business interests
        of the
        Bank. This Section creates a narrowly tailored advance approval requirement
        in
        order to avoid unfair competition and irreparable harm to the Bank and is
        not
        intended or to be construed as a general restraint from engaging in a lawful
        profession or a general covenant against competition. Nothing herein will
        prohibit (i) beneficial ownership of less than 5% of the publicly traded
        capital
        stock of a corporation listed on a national securities exchange so long as
        this
        is not a controlling interest, or (ii) ownership of mutual fund investments.
        Executive may not avoid the purpose and intent of this paragraph by engaging
        in
        conduct within the geographically limited area from a remote location through
        means such as telecommunications, written correspondence, computer generated
        or
        assisted communications, or other similar methods. Executive agrees that
        if, at
        some later date, a court of competent jurisdiction determines that the
        non-solicitation agreement set forth in this Section does not meet the criteria
        set forth by applicable law, this Section may be reformed by the court and
        enforced to the maximum extent permitted under applicable law.
        Executive
        understands that his obligations under this Section shall not be assignable
        by
        him.

       

      22.  Executive
        acknowledges that the covenants set forth in these NONINTERFERENCE provisions
        are material conditions to the Bank’s willingness to execute and deliver this
        Agreement and to provide Executive the compensation and benefits and other
        consideration provided hereunder. The parties agree that the existence of
        any
        claim or cause of action of Executive against the Bank, whether predicated
        on
        this Agreement or otherwise, will not constitute a defense to the enforcement
        by
        the Bank of such covenants. It is specifically acknowledged that the periods
        following the termination of employment stated in Paragraphs 15
        and
20,
        during
        which the agreements and covenants of Executive made in such Paragraphs are
        effective, are to be computed by excluding from such computation any time
        during
        which Executive is in violation of any provision of Paragraph 15
        or
20.
        The
        covenants contained in these NONINTERFERENCE provisions will not be affected
        by
        any breach of any other provision hereof by any party hereto. In addition,
        Executive’s obligations under these NONINTERFERENCE provisions shall survive the
        termination of this Agreement and Executive’s employment with the Bank.
        Executive’s obligations under these NONINTERFERENCE provisions are in addition
        to, and not in limitation or preemption of, all other obligations of
        confidentiality which he may have to Bank under general legal or equitable
        principles, or other the Bank policies.

       

      E.
          REMEDIES

       

      23.  In
        the
        event that the Executive violates any of the provisions set forth in this
        Agreement relating to NONINTERFERENCE, Executive acknowledges that the Bank
        would suffer immediate and irreparable harm and would not have an adequate
        remedy at law for money damages. Accordingly, Executive agrees that, without
        the
        necessity of proving actual damages or posting bond or other security, the
        Bank
        shall be entitled to temporary or permanent injunction or injunctions to
        prevent
        breaches of such performance and to specific enforcement of such covenants
        in
        addition to any other remedy to which the Bank may be entitled, at law or
        in
        equity. In such a situation, the parties agree that the Bank may pursue any
        remedy available, including declaratory relief, concurrently or consecutively
        in
        any order as to any breach, violation, or threatened breach or violation
        of any
        of the provisions set forth in this Agreement relating to NONINTERFERENCE,
        and
        the pursuit of any particular remedy or remedies shall not be deemed an election
        of remedies or waiver of the right to pursue any other remedy.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      F.
          TERMINATION

       

      24.  The
        Board
        of Directors shall be entitled to terminate this Agreement, for any reason,
        by
        providing the Executive with thirty (30) days written notice of the termination.
        However, if this Agreement is terminated by the Bank without Good Cause,
        as
        defined in this Agreement, the Bank shall provide the Executive with the
        severance set
        forth
        in paragraph 34
        of this
        Agreement. 

       

      25.  For
        purposes of this Agreement,“Good
        Cause” shall be defined as the occurrence of one of the following
        events:

       

      a.  The
        determination of the Board of Directors, in the exercise of its reasonable
        judgment, that Executive has violated any provision of this Agreement or
        is
        grossly negligent in the performance of his duties hereunder, and has failed
        to
        cure such violation or the effects of such gross negligence within a reasonable
        period after written notice to the Executive by the Bank specifying in
        reasonable detail the alleged violation;

       

      b.  The
        determination of the Board of Directors, in the exercise of its reasonable
        judgment, that (i) Executive has failed to follow the policies adopted by
        the
        Board of Directors and has failed to cure such failure within a reasonable
        period after written notice to the Executive by the Bank specifying in
        reasonable detail the alleged failure; or (ii) Executive has engaged in such
        actions or omissions that would constitute unsafe or unsound banking
        practices;

       

      c.  The
        Executive is convicted of a misdemeanor involving moral turpitude or a
        felony;

       

      d.  The
        determination of the Board of Directors, in the exercise of its reasonable
        judgment, that the Executive has engaged in gross misconduct in the course
        and
        scope of his employment with the Bank including indecency, immorality, gross
        insubordination, dishonesty, unlawful harassment, use of illegal drugs, or
        fighting;

       

      e.  The
        determination of the Board of Directors, in the exercise of its reasonable
        judgment and in good faith, that the Executive’s job performance is
        substantially unsatisfactory and that Executive has failed to cure such
        performance within a reasonable period after written notice to the Executive
        by
        the Bank specifying in reasonable detail the nature of the unsatisfactory
        performance; or

       

      f.  The
        Executive is prohibited from engaging in the business of banking by any
        governmental regulatory agency having jurisdiction over the Bank.

       

      
        Notwithstanding
          anything in this Agreement to the contrary, Executive will not be in breach
          of
          this Agreement and his action or failure to act shall not be a basis for
          termination for Good Cause if Executive’s action or failure to act would
          constitute an unsafe or unsound banking practice or be reasonably expected
          to
          have a material adverse effect on the financial or regulatory condition
          of the
          Bank. 

         

        26.  Executive
          shall be entitled to terminate this Agreement at any time, for any reason,
          with
          or without cause, by providing thirty (30) days written notice to the Bank.
          The
          effective date of such resignation shall be the 30th
          calendar
          day following the date the notice is given or such other later date as
          may be
          set forth in the notice. Upon Executive’s resignation, Executive shall be
          entitled to receive any base salary which has been earned by him through
          the
          effective date of such resignation.

         

        27.  If
          Executive dies during the term of this Agreement and while in the employ
          of the
          Bank, this Agreement will terminate automatically, without notice, on the
          date
          of the Executive’s death and the Bank shall have any further obligation to
          Executive or his estate under this Agreement (other than death benefits
          payable
          under any benefit plans to which Executive is a party), except that the
          Bank
          shall pay Executive’s estate that portion of Executive’s base salary accrued
          through the date on which Executive’s death occurred. To
          the
          maximum extent, and for the term, permitted by the health benefit provisions
          of the Consolidated Omnibus Budget Reconciliation Act (COBRA) of
          1986,
          if
          Executive dies during
          the term of this Agreement and while in the employ of the Bank,
          the Bank
          shall provide or maintain health insurance benefits, at the Bank’s expense, for
          Executive’s spouse.

         

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
         

      

      28.  The
        Executive acknowledges and agrees that this Agreement will terminate
        immediately, without notice, in the event the Executive becomes physically
        or
        mentally disabled, as defined by 29 C.F.R. § 1630.2(g)(1), and cannot
        perform the essential functions of his position, with or without reasonable
        accommodation for the period designated by the Executive’s disability insurance
        after which disability payments will begin. In the event of a termination
        pursuant to this Section, the Bank shall be relieved of all its obligations
        under this Agreement, except that the Bank shall pay to Executive, or his
        estate
        in the event of his subsequent death, Executive’s base salary through the date
        on which such termination shall have occurred, reduced during such period
        by the
        amount of any benefits received by Executive under any disability policy
        maintained by the Bank.

       

      29.  Executive
        acknowledges that all memoranda, notes, records, reports, manuals, books,
        papers, letters, client and customer lists, contracts, software programs,
        information and records, drafts of instructions, guides and manuals, and
        other
        documentation (whether in draft or final form), and other sales or financial
        information and aids relating to the Bank’s business, and any and all other
        documents containing confidential information furnished to Executive by any
        representative of the Bank or otherwise acquired or developed by Executive
        in
        connection with his duties under this Agreement (collectively, “Recipient
        Materials”) shall at all times be the property of the Bank. Within three
        calendar days of the termination of this Agreement, Executive shall return
        to
        the Bank, any Recipient Materials which are in his possession, custody or
        control.

       

      30.  The
        provisions of provisions of Paragraphs 15,
        16,
        20-23,
        29-34,
        39,
        43
        and
45
        shall
        survive the termination of this Agreement.

       

      G.
          CHANGE
        IN CONTROL

       

      31.  The
        parties acknowledge that the Executive has agreed to assume the position
        of
        Chief Financial Officer and to enter into this Agreement based on his confidence
        in the current owners of the Bank and the direction of the Bank provided
        by the
        current Board of Directors. Upon a “Change of Control,” as defined below, the
        Executive may, at his option, notify the Bank within sixty (60) days following
        such Change of Control that he intends to terminate this Agreement based
        upon
        the Change of Control.

       

      In
        the
        event that Executive is terminated by the Bank within sixty (60) days following
        such Change of Control for any reason other than for Good Cause, Executive
        shall
        be entitled to elect to receive as severance the lump sum amount determined
        pursuant to Paragraph 32
        upon
        written notice to the Bank, in which case the severance provisions of Paragraph
        34
        shall
        not apply.

       

      32.  In
        the
        event that the Executive elects to terminate this Agreement based upon the
        Change in Control, the Bank shall pay to the Executive a cash lump sum payment
        equal to 199% of his
        Base
        Amount as defined in section 280G(b)(3) of the Internal Revenue Code of 1986,
        as
        amended (“Code”)
        within
        thirty (30) days of such notice.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      In
        the
        event that any compensation payable under this Agreement is determined to
        be a
“parachute payment” subject to the excise tax imposed by Section 4999 of the
        Code or any successor provision (the “Excise Tax”), the Bank agrees to pay to
        the Executive an additional sum (the “Gross Up”) in an amount such that the net
        amount retained by the Executive, after receiving both the payment and the
        Gross
        Up and after paying: (i) any Excise Tax on the payment and the Gross Up,
        and
        (ii) any federal, state, and local income taxes on the Gross Up, is equal
        to the
        amount of the payment.

       

      For
        purposes of determining the Gross Up, the Executive shall be deemed to pay
        federal, state, and local income taxes at the highest marginal rate of taxation
        in his filing status for the calendar year in which the payment is to be
        made
        based upon the Executive’s domicile on the date of the event that triggers the
        Excise Tax. The determination of whether such Excise Tax is payable and the
        amount of such Excise Tax shall be based upon the opinion of tax counsel
        selected by the Bank, subject to the reasonable approval of the Executive.
        If
        such opinion is not finally accepted by the Internal Revenue Service, then
        appropriate adjustments shall be calculated (with additional Gross Up determined
        based on the principals outlined in the previous paragraph, if applicable)
        by
        such tax counsel based upon the final amount of Excise Tax so determined
        together with any applicable penalties and interest. The final amount shall
        be
        paid, if applicable, within thirty (30) days after such calculations are
        completed, but in no event later than April 1st
        of the
        year following the event that triggers the Excise Tax. Such compensation
        shall
        be payable in equal disbursements in accordance with the Bank’s ordinary payroll
        policies and procedures.

       

      33.  As
        used
        in this Agreement, a “Change of Control” shall be deemed to have occurred in
        each of the following instances:

       

      a.  A
        reorganization, merger, consolidation or other corporate transaction involving
        the Bank, in each case, with respect to which the shareholders of the Bank,
        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.

       

      b.  The
        sale,
        transfer or assignment of all or substantially all of the assets of the Bank
        to
        any third party.

       

      c.  The
        acquisition by any individual, entity or “group,” within the meaning of Section
        13(d)(3) or Section 14(d)(2) of the Exchange Act (a “Person”), of beneficial
        ownership (within the meaning of Rule 13d-3 promulgated under the Exchange
        Act)
        of voting securities of the Bank where such acquisition causes any such Person
        to own twenty percent (20%) or more of the combined voting power of the Bank’s
        then outstanding capital stock then entitled to vote generally in the election
        of directors; provided however, that a Change in Control shall not be deemed
        to
        have occurred if a Person becomes the beneficial owner of twenty percent
        of the
        combined voting power of the Bank’s then outstanding capital stock solely as a
        result of the repurchase of voting securities by the Bank.

       

      d.  During
        any period of two consecutive years, the persons who were directors of the
        Bank
        immediately before the beginning of the two year 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 two year period whose election, or nomination for election
        by
        the Bank’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 Exchange Act).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Notwithstanding
        anything contained herein to the contrary, if Executive’s employment is
        terminated and he reasonably demonstrates that such termination was at the
        request of a third party who has indicated an intention of taking steps
        reasonably calculated to effect a Change in Control and who effects a Change
        in
        Control, or such termination otherwise occurred in connection with, or in
        anticipation of, a Change in Control which actually occurs, then for all
        purposes hereof, a Change in Control shall be deemed to have occurred on
        the day
        immediately prior to the date of such termination of his
        employment.

       

      H.
          SEVERANCE

       

      34.  Except
        as
        otherwise expressly provided herein, if Bank terminates Executive’s employment
        for any reason other than Good Cause (as defined in this Agreement) after
        the
        first anniversary date of the Effective Date of this Agreement, then Executive
        shall be entitled to severance pay in an amount not less than the base salary
        that would have been due the Executive had he remained employed for six (6)
        months following termination. If Bank terminates Executive’s employment for any
        reason other than Good Cause (as defined in this Agreement) after the second
        anniversary date of the Effective Date of this Agreement, then Executive
        shall
        be entitled to severance pay in an amount equal to the base salary that would
        have been due the Executive had he remained employed for one year following
        termination. In the event that the Executive is entitled to any payment under
        Section G, no payment shall be due under this Section H.
        Any
        severance pay due to Executive pursuant to this Section H shall be paid in
        accordance with the terms of normal payroll procedure of the Bank.

       

      I.
          SEVERABILITY

       

      35.  If
        any
        term or other provision of this Agreement is held to be illegal, invalid
        or
        unenforceable by any rule of law or public policy, (A) such term or provision
        shall be fully severable and this Agreement shall be construed and enforced
        as
        if such illegal, invalid or unenforceable provision were not a part hereof;
        (B)
        the remaining provisions of this Agreement shall remain in full force and
        effect
        and shall not be affected by such illegal, invalid or unenforceable provision
        or
        by its severance from this Agreement; and (C) there shall be added automatically
        as a part of this 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 Agreement is so broad as to be unenforceable, the provision
        shall be interpreted to be only as broad as is enforceable.

       

      J.
          WAIVER

       

      36.  The
        parties acknowledge and agree that the failure of either to enforce any
        provision of this Agreement shall not constitute a waiver of that particular
        provision, or of any other provisions of this Agreement.

       

      K.
          SUCCESSORS
        AND ASSIGNS

       

      37.  The
        Executive acknowledges and agrees that this Agreement may be assigned by
        the
        Bank to any successor-in-interest and shall inure to the benefit of, and
        be
        fully enforceable by, any successor and/or assignee; and this Agreement will
        be
        fully binding upon, and may be enforced by the Executive against, any successor
        and/or assignee of the Bank.

       

      38.  The
        Executive acknowledges and agrees that his obligations, duties and
        responsibilities under this Agreement are personal and shall not be assignable,
        and that this Agreement shall be enforceable by the Executive only. In the
        event
        of the Executive’s death, this Agreement shall be enforceable by the Executive’s
        estate, executors and/or legal representatives, only to the extent provided
        herein.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      L.
          CHOICE
        OF LAW

       

      39.  THIS
        AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND ALL QUESTIONS
        CONCERNING THE CONSTRUCTION, VALIDITY, INTERPRETATION AND PERFORMANCE OF
        THIS
        AGREEMENT SHALL BE GOVERNED BY, THE LAWS OF THE STATE OF MICHIGAN, WITHOUT
        GIVING EFFECT TO PROVISION THEREOF REGARDING CONFLICT OF LAWS. IT IS STIPULATED
        THAT MICHIGAN HAS A COMPELLING STATE INTEREST IN THE SUBJECT MATTER OF THIS
        AGREEMENT, AND THAT EXECUTIVE HAS OR WILL HAVE REGULAR CONTACT WITH THE STATE
        OF
        MICHIGAN IN THE PERFORMANCE OF THIS AGREEMENT.

       

      M.
          MODIFICATION

       

      40.  The
        parties acknowledge and agree that this Agreement and the other agreements
        and
        plans referenced herein constitute the complete and entire agreement between
        the
        parties; that each executed this Agreement based upon the express terms and
        provisions set forth herein; that, in accepting employment with the Bank,
        Executive has not relied on any representations, oral or written, which are
        not
        set forth in this Agreement; that no previous agreement, either oral or written,
        shall have any effect on the terms or provisions of this Agreement; and that
        all
        previous agreements, either oral or written, are expressly superseded and
        revoked by this Agreement. Except as otherwise expressly provided in this
        Agreement, no conditions, usage of trade, course of dealing or performance,
        understanding or agreement purporting to modify, vary, explain or supplement
        the
        terms or conditions of this Agreement unless hereafter made in writing and
        signed by the party to be bound. No waiver shall be deemed a continuing waiver
        or a waiver of any subsequent breach or default, either of a similar or
        different nature, unless expressly so stated in writing. 

       

      41.  Except
        as
        otherwise expressly provided in this Agreement, no conditions, usage of trade,
        course of dealing or performance, understanding or agreement purporting to
        modify, vary, explain or supplement the terms or conditions of this Agreement
        unless hereafter made (i) in
        writing, (ii) referencing an express provision in this Agreement,
        (iii) signed by the Executive, and (iv) approved by a disinterested
        majority of the Board of Directors.

       

      N.
          INDEMNIFICATION

       

      42.  During
        the term of this Agreement, the Bank shall indemnify the Executive against
        all
        judgments, penalties, fines, amounts paid in settlement and reasonable expenses
        (including, but not limited to, attorneys’ fees) relating to his employment by
        the Bank to the fullest extent permissible under the law, including, without
        limitation, federal and/or state banking laws and regulations, the Michigan
        Banking Code of 1999, as amended, the Michigan Business Corporation Act,
        as
        amended, and the Bank’s Articles of Incorporation. To the extent permitted by
        law, the Bank may purchase such indemnification insurance as the Board may
        from
        time to time determine.

       

      O.
          ARBITRATION

       

      43.  Any
        dispute, controversy, or claim arising out of or relating to this Agreement
        or
        breach thereof, or arising out of or relating in any way to the employment
        of
        the Executive or the termination thereof, shall be submitted to arbitration
        in
        accordance with the Employment Dispute Arbitration Rules of the American
        Arbitration Association. Judgment upon the award rendered by the arbitrator
        may
        be entered in any court of competent jurisdiction. In reaching his or her
        decision, the arbitrator shall have no authority to ignore, change, modify,
        add
        to or delete from any provision of this Agreement, but instead is limited
        to
        interpreting this Agreement. Notwithstanding the arbitration provisions set
        forth in this Agreement, the Executive and the Bank acknowledge and agree
        that
        nothing in this Agreement shall be construed to require the arbitration of
        any
        claim or controversy arising under the NONINTERFERENCE provisions of this
        Agreement. These provisions shall be enforceable by any court of competent
        jurisdiction and shall not be subject to this Paragraph of the Agreement.
        The
        Executive and the Bank further acknowledge and agree that nothing in this
        Agreement shall be construed to require arbitration of any claim for workers’
        compensation or unemployment compensation.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

        
          P.
              LEGAL
            CONSULTATION

           

          44.  Each
            party acknowledges that it has carefully read this agreement, that it
            has had an
            opportunity to consult with his or its attorney concerning the meaning,
            import
            and legal significance of this Agreement, that it understands the terms
            of the
            Agreement, that all understandings and agreements between Executive and
            the Bank
            relating to the subjects covered in this Agreement are contained in it,
            and that
            it has entered into the Agreement voluntarily and not in reliance on
            any
            promises or representations by the other than those contained in this
            Agreement.

           

        

      

      Q.
          MISCELLANEOUS

       

      45.  The
        Executive shall make himself available, upon the request of the Bank, to
        testify
        or otherwise assist in litigation, arbitration, or other disputes involving
        the
        Bank, or any of the directors, officers, employees, subsidiaries, or parent
        corporations of either, at no additional cost during the term of this Agreement
        and at any time following the termination of this Agreement.

       

      46.  The
        Executive shall not be required to mitigate the amount of any payment provided
        for in this Agreement by seeking other employment or otherwise, nor shall
        the
        amount of any payment provided for in this Agreement be reduced by any
        compensation earned by the Executive as the result of employment by another
        employer after the date of termination, or otherwise.

       

      47.  In
        the
        event either party institutes arbitration or litigation to enforce or protect
        its rights under this Agreement, the prevailing party in such arbitration
        or
        litigation shall be entitled, in addition to all other relief, to reasonable
        attorneys fees, out-of-pocket costs, disbursements, and arbitrator’s fees
        relating to such arbitration or litigation.

       

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

       

      49.  The
        Bank
        shall have no obligation to set aside, earmark or entrust any fund or money
        with
        which to pay its obligations under this Agreement. The Executive or any
        successor-in-interest to Executive shall be and remain simply a general creditor
        of the Bank in the same manner as any other creditor having a general unsecured
        claim. For purposes of the Code, the Bank intends this Agreement to be an
        unfunded, unsecured promise to pay on the part of the Bank. For purposes
        of
        Employee Retirement Income Security Act of 1974, as amended (“ERISA”), the Bank
        intends that this Agreement not be subject to ERISA. If it is deemed subject
        to
        ERISA, it is intended to be an unfunded arrangement for the benefit of a
        select
        member of management, who is a highly compensated employee of the Bank for
        the
        purpose of qualifying this Agreement for the “top hat” plan exception under
        sections 201(2), 301(a)(3) and 401(a)(1) of ERISA. At no time shall the
        Executive have or be deemed to have any lien nor right, title or interest
        in or
        to any specific investment or to any assets of the Bank. If the Bank elects
        to
        invest in a life insurance, disability or annuity policy upon the life of
        Executive, the Executive shall assist the Bank by freely submitting to a
        physical examination and supplying such additional information necessary
        to
        obtain such insurance or annuities.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      50.  When
        a
        reference is made in this Agreement to a Paragraph, such reference shall
        be to a
        Paragraph of this Agreement unless otherwise indicated. The headings contained
        in this Agreement are for convenience of reference only and shall not affect
        in
        any way the meaning or interpretation of this Agreement. Whenever the words
        “include”, “includes” or “including” are used in this Agreement, they shall 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 Agreement
        shall refer to this Agreement as a whole and not to any particular provision
        in
        this Agreement. Each use herein of the masculine, neuter or feminine gender
        shall be deemed to include the other genders.
        Each
        use
        herein of the plural shall 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 or instrument defined or
        referred to herein or in any agreement or instrument that is referred to
        herein
        means such agreement or instrument as from time to time amended, modified
        or
        supplemented, including by waiver or consent.
        References to a person are also to its permitted successors or
        assigns.

       

      51.  Executive
        represents that his service as an employee of the Bank will not violate any
        agreement: (i) he has made that prohibits him from disclosing any information
        he
        acquired prior to his becoming employed by the Bank; or (ii) he has made
        that
        prohibits him from accepting employment with the Bank or that will interfere
        with his compliance with the terms of this Agreement. Executive further
        represents that he has not previously, and will not in the future, disclose
        to
        Bank any proprietary information or trade secrets belonging to any previous
        employer. Executive acknowledges that the Bank has instructed him not to
        disclose to it any proprietary information or trade secrets belonging to
        any
        previous employer.

       

      R.
          NOTICES

       

      52.  All
        notices and other communications required or permitted to be given or delivered
        hereunder or by reason of the provisions of this Agreement shall be in writing
        and shall be deemed to have been properly given if (a) delivered personally,
        (b)
        delivered by a recognized overnight courier service, (c) sent by United States
        mail, or (d) sent by facsimile transmission followed by a confirmation copy
        delivered by recognized overnight courier service the next day. Such notices,
        requests, consents and other communications shall be sent to the respective
        parties as follows (or at such other address for a party as shall be specified
        by like notice to the other party):

       

      If
        to the
        Bank:

      Bank
        of
        Birmingham

      33583
        Woodward Avenue

      Birmingham,
        Michigan 48009

      Attention:
        Chairman

      

      If
        to
        Executive:

      Richard
        Miller 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      53.  Any
        notice or other communication given pursuant to this Agreement shall be
        effective (i) in the case of personal delivery, telex or facsimile transmission,
        when received; (ii) in the case of mail, upon the earlier of actual receipt
        or
        five (5) business days after deposit with the United States Postal Service,
        first class certified or registered mail, postage prepaid, return receipt
        requested; and (iii) in the case of a recognized overnight courier service,
        one
        (1) business day after delivery to the courier service together with all
        appropriate fees or charges and instructions for overnight delivery. Any
        and all
        notices of documents or other notices required to be delivered under the
        terms
        of this Agreement shall be addressed to each party as follows:

       

      [signature
        page follows]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      [signature
        page to Employment
        Agreement] 

       

      EXECUTED
        ON THIS DATE FIRST WRITTEN ABOVE IN Birmingham, MICHIGAN.

       

      

      
        	 	 	EXECUTIVE
	 	 	 
	/s/ Barbara S. Sterner	 	/s/
                Richard Miller
	WITNESS 	 	Richard Miller
	 	 	 
	 	 	BANK OF
                BIRMINGHAM
	 	 	 
	/s/ Barbara A. Riopelle	 	By:
                /s/ Charles Pryde
	WITNESS	 	
                Member
                  of Compensation
                  Committee

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