Document:

AMENDMENT
NO. 1 TO WARRANT AND EXERCISE AGREEMENT

      

      THIS AMENDMENT NO. 1
TO WARRANT AND EXERCISE AGREEMENT, dated as of the date provided on the
signature page hereto (this “Agreement”), is entered into by and
between WorldGate Communications, Inc., a Delaware corporation (the “Company”), and the person or entity
under the heading “Holder” provided on the signature page hereto (the “Holder”, and together with the
Company, the “Parties”). All
capitalized terms used but not defined in this Agreement shall have the meanings
ascribed to them by that certain warrant to purchase common stock of the Company
issued August 3, 2005 by the Company and attached hereto as Exhibit A (the
“Warrant”).

      

      RECITALS

      

      A.   WHEREAS, the Warrant entitles
the Holder, subject to the provisions of the Warrant, to purchase the Warrant
Shares (as defined on the signature page hereto) at an exercise price as
provided in, and as adjusted from time to time per the terms of, the Warrant
(the “Exercise Price”);
and

      

      B.    WHEREAS, in consideration for
the Holder’s immediate exercise of the right to purchase all of the Warrant
Shares contemplated by the Warrant simultaneously with the execution of this
Agreement, the Company has agreed to amend the Warrant such that the Exercise
Price of the Warrant shall be equal to the New Exercise Price (as defined on the
signature page hereto); and

      

      C.    WHEREAS, each of the Parties
desires to enter into this Agreement in order to amend the Warrant as set forth
herein.

      

      NOW, THEREFORE, in
consideration of the premises and the mutual covenants hereinafter contained,
the Parties agree as follows:

      

      1.    Amendment to Exercise Price. The
Exercise Price set forth in the first sentence of the first paragraph of the
Warrant is hereby amended as of the date hereof to be the New Exercise Price (as
defined on the signature page hereto) per share of Common Stock.

      

      2.    Removal of Cashless Exercise
Provisions. The Warrant is hereby amended in its entirety to remove all
references to a Cashless Exercise and all such references shall no longer have
any force or effect such that the Holder may only exercise the Warrant and
receive the Warrant Shares upon the exercise of the Warrant by delivering
immediately available funds to the Company.

      

      3.    Termination of Certain Agreements.
Each of the Current Agreements, with respect to any rights or obligations
between the Parties, shall be deemed terminated, void and of no further force
and effect, and none of the Parties shall have any further liabilities or
obligations under the Current Agreements whatsoever. For purposes of this
Agreement, “Current Agreements”
means the Securities Purchase Agreement, dated August 3, 2005, by and between
the Company and the other signatories thereto, the Registration Rights
Agreement, dated August 3, 2005, by and between the Company and the other
signatories thereto, and any other agreements entered into in connection with,
in any way related to or arising from the Warrant, such Securities Purchase
Agreement or such Registration Rights Agreement, other than the Warrant itself
and this Agreement.

      

      4.    Exercise of Warrant. Holder hereby
irrevocably exercises the right to purchase all of the Warrant Shares evidenced
by the Warrant. Holder intends that payment of the Exercise Price shall be made
as a Cash Exercise with respect to all of the Warrant Shares to be issued by
this exercise of the Warrant. No later than one (1) business day after the
execution of this Agreement, Holder shall pay the sum equal to the Exercise Cash
Proceeds (as defined on the signature page hereto) to the Company by wire
transfer to the following account of the Company:

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Wachovia
Bank

      Philadelphia,
Pennsylvania 19107 USA

      ABA/Sort
Code no. 031 201 467

      Swift
Code/BIC no. PNBPUS33

      For
credit to account no. 200 0003 326307 WorldGate Service, Inc. Operating
Account

      

      Holder
directs that the certificates representing the Warrant Shares shall be issued in
the name of the Holder at the address provided on the signature page hereto.
Holder acknowledges and agrees that the Company shall effect delivery of the
Warrant Shares by delivering to the Holder or its nominee a physical certificate
representing such Warrant Shares and that such certificate representing the
Warrant Shares shall contain the following restrictive legend:

      

      THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN AND WILL NOT BE REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY
STATE SECURITIES LAW, AND MAY NOT BE OFFERED FOR SALE, SOLD OR TRANSFERRED
UNLESS A REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE
SECURITIES LAWS SHALL BE EFFECTIVE WITH RESPECT THERETO, OR AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS IS
AVAILABLE IN CONNECTION WITH SUCH OFFER, SALE OR TRANSFER AND THE CORPORATION
RECEIVES AN OPINION OF COUNSEL (BOTH SUCH OPINION AND SUCH COUSEL BEING
REASONABLY ACCEPTABLE TO THE CORPORATION) TO SUCH EFFECT. SUBJECT TO COMPLIANCE
WITH THE REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES
LAWS, THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE PLEDGED OR HYPOTHECATED
IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY THE
SHARES REPRESENTED BY THIS CERTIFICATE.

      

      5.    Representations and Warranties. By
executing this Agreement, Holder represents and warrants to the Company as
follows:

      

      
        
          	
                	
                  a.

                	
                  The
      Holder hereby acknowledges and agrees that attached hereto as Exhibit A is
      a true, complete and valid copy of the Warrant as currently in effect
      prior to the amendment contemplated by this
  Agreement.

                

        

      

      

      
        
          	
                	
                  b.

                	
                  Holder
      has all necessary power and authority under all applicable provisions of
      law to execute and deliver this Agreement and to carry out its provisions.
      All action on Holder’s part required for the lawful execution and delivery
      of this Agreement has been or will be effectively taken prior to the
      delivery of this Agreement by
Holder.

                

        

      

      

      
        
          	
                	
                  c.

                	
                  Neither
      the execution and delivery by the Holder of this Agreement, nor the
      performance of the transactions performed hereunder by the Holder, will
      require any filing, consent, renegotiation or approval that has not
      previously been obtained or conflict with, result in any breach of or
      constitute a default under (i) any provision of any law, statute, rule or
      regulation, or any ruling, writ, injunction, order, judgment or decree of
      any court order or other governmental authority to which the Holder is
      subject, (ii) the organizational documents (if any) of the Holder, or
      (iii) any contract, governmental permit or other document to which the
      Holder is subject.

                

        

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                
                

              	
                d.

              	
                The
      Holder is the sole record and beneficial owner of the Warrant and the
      Holder has good title to the Warrant free and clear of any mortgage, lien,
      pledge, charge, security interest, encumbrance, conditional sales
      contract, transfer restriction, right of first refusal, voting trust
      agreement, preemptive right, power of attorney or other adverse claim,
      defect of title, limitation or restriction of any type or nature
      whatsoever. No other person, firm, corporation or other entity has any
      right, title, claim, or interest in, to, or respecting any of the
      Warrant.

              

      

      

      
        	
                
                

              	
                e.

              	
                Holder
      understands that the Warrant Shares have not been registered under the
      Securities Act of 1933, as amended (the “Securities Act”). The Warrant
      Shares are being acquired for Holder’s own account and not with the view
      to, or for resale in connection with, any distribution other than resales
      made in compliance with the Securities Act. Holder has substantial
      experience in evaluating and investing in private placement transactions
      of securities similar to the Company so that Holder is capable of
      evaluating the merits and risks of its investment in the Company and has
      the capacity to protect its own interests. Holder understands and agrees
      that the Warrant Shares are being offered and will be sold in transactions
      in compliance with or exempt from the registration requirements of the
      Securities Act based in part upon Holder’s representations contained in
      this Agreement and, as a result, the Warrant Shares may only be
      transferred if such securities are registered under the Securities Act or
      if the transfer is exempt from registration. Holder must bear the economic
      risk of this investment indefinitely unless the Warrant Shares are
      registered pursuant to the Securities Act or an exemption from
      registration is available. Holder understands that the Company has no
      present intention of registering the Warrant Shares. Holder also
      understands that there is no assurance that any exemption from
      registration under the Securities Act will be available and that, even if
      available, such exemption may not allow the Holder to transfer all or any
      portion of the Warrant Shares under the circumstances, in the amounts or
      at the times the Holder might propose. Holder has been advised of or is
      aware of the provisions of Rule 144 promulgated under the Securities Act
      as in effect from time to time, which permits limited resale of securities
      purchased in a private placement subject to the satisfaction of certain
      conditions, including, among other things: the availability of certain
      current public information about the Company, the resale occurring
      following the required holding period under Rule 144 and the number of
      securities being sold during any three month period not exceeding
      specified limitations.

              

      

      

      
        	
                
                

              	
                f.

              	
                Holder
      is an “accredited investor” within the meaning of Regulation D, Rule
      501(a), promulgated by the Securities and Exchange Commission. Holder
      represents that by reason of its or its management’s business or financial
      experience, Holder has the capacity to protect its own interests in
      connection with the transactions contemplated in this Agreement. Further,
      Holder is aware of no publication of any advertisement in connection with
      the transactions contemplated in this Agreement. Holder acknowledges that
      its investment in the Company is highly speculative and entails a
      substantial degree of risk and Holder is in a position to lose the entire
      amount of such investment.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        
          	
                	
                  g.

                	
                  Holder
      acknowledges that Holder has received any information requested by Holder
      for Holder to make an investment decision. Holder has had an opportunity
      to discuss the Company’s business, management and financial affairs with
      the Company and their respective representatives and has had the
      opportunity to review the Company’s operations and facilities. Holder has
      also had the opportunity to ask questions of and receive answers from the
      Company and its management regarding the terms and conditions of this
      investment. Except as expressly set forth in this Agreement, Holder
      acknowledges and agrees that the Company have made no other representation
      or warranty regarding the operations, business, prospects or condition
      (financial or otherwise) of the Company or its
  affiliates.

                

        

      

      

      
        
          	
                	
                  h.

                	
                  Holder
      has had full opportunity to seek the advice of independent counsel
      respecting the transactions contemplated by this Agreement and exercise of
      the Warrant and the tax risks and implications thereof. Holder maintains
      such Holder’s domicile (and is not a transient or temporary resident) at
      the address shown on the signature page of this Agreement. There are no
      claims for brokerage commission, finders’ fees or similar compensation in
      connection with the transactions contemplated by this Agreement or related
      documents based on any arrangement or agreement binding upon
      Holder.

                

        

      

      

      6.    Non-Public Information. Holder
acknowledges that Holder and its representatives may receive information
concerning the Company, some of which may be deemed material non-public
information, pursuant to the Confidentiality Agreement (as defined on the
signature page hereto). Holder acknowledges that with respect to Holder and its
representatives: (a) such persons and entities are aware (and, if applicable,
that its representatives and affiliates who are apprised of this matter have
been advised) that the United States securities laws prohibit any person who has
material non-public information about a company from purchasing or selling
securities of such company, or from communicating such information to any other
person under circumstances, which it is reasonably foreseeable that such person
is likely to purchase or sell such securities, and (b) the Company is a publicly
traded company listed on the OTC Bulletin Board and that some of the information
received by Holder and its representatives may be material non-public
information that would prohibit (i) such persons and entities from entering into
transactions with respect to the Company’s securities until such material
non-public information is fully disseminated in the public domain and (ii) from
communicating such information to any other person or entity under circumstances
in which it is reasonably foreseeable that such person is likely to purchase or
sell such securities.

      

      7.    Release.

      

      
        
          	
                	
                  a.

                	
                  In
      consideration of the foregoing, Holder hereby irrevocably and
      unconditionally REMISES, RELEASES AND FOREVER DISCHARGES the Company and
      its Related Persons from and against any and all Claimswhich the Holder can, shall or may have against
      the Company and its Related Persons (the “Company Released Claims”),
      except with respect to the issuance of the Warrant Shares pursuant to the
      terms of this Agreement.

                

        

      

      

      
        
          	
                	
                  b.

                	
                  Holder
      hereby covenants not to commence or prosecute against the Company or its
      Related Persons, or to cause or assist any other person or entity in
      commencing or prosecuting against the Company or its Related Persons, any
      action or proceeding arising out of or in any way connected with Company
      Released Claims, except with respect to the issuance of the Warrant Shares
      pursuant to the terms of this
Agreement.

                

        

      

      

      
        
          	
                	
                  c.

                	
                  Holder
      represents and warrants to the Company that it has not assigned or
      transferred, or purported to assign or transfer, voluntarily,
      involuntarily, or by operation of law, any Company Released Claims, or any
      part or portion thereof.

                

        

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
              	
                d.

              	
                For
      purposes of this Agreement,

              

      

      

      
        	
              	
                i.

              	
                “Related Persons” means
      predecessors, successors, affiliates, successors-in-interest, executors,
      heirs, administrators, receivers, trustees, assigns, assignees and its and
      their insurers, officers, directors, members (direct and indirect),
      partners (direct and indirect), owners, past and present shareholders,
      past and present stockholders, direct or indirect subsidiaries, employees,
      agents, attorneys, lenders (and agents related thereto) and/or
      representatives.

              

      

      

      
        	
              	
                ii.

              	
                “Claims” means actions, suits,
      claims, demands, debts, dues, complaints, sums of money, accounts,
      reckonings, bonds, bills, specialities, covenants, contracts (whether oral
      or written, express or implied from any source), agreements, warranties,
      controversies, promises, judgments, extents, executions, variances,
      trespasses, liabilities or obligations of any kind whatsoever, in law or
      equity, and causes of action of every kind and nature, or otherwise
      (including, claims for damages, costs, expenses, and attorneys’, brokers’
      and accountants’ fees and expenses) arising out of or related, directly or
      indirectly, to events, facts, conditions or circumstances existing or
      arising from the beginning of the world, through and until the day of date
      of this Agreement, whether arising in law, admiralty, or equity or by
      statute, by regulation, or otherwise, whether known or unknown, suspected
      or unsuspected, unanticipated as well as anticipated, groundless or
      otherwise, and that now exist or may hereafter accrue based on matters now
      unknown as well as known, including, without limitation, any and all
      claims and demands under, related to, arising from, or in any way
      connected with this Agreement, the Warrant or any of the Current
      Agreements.

              

      

      

      8.    Remedies. Holder agrees to defend,
indemnify and hold the Company and its Related Persons harmless from any
damages, loss, liabilities, diminution in value of property, costs and expenses
(including attorney fees and expenses) arising out of any breach of this
Agreement by Holder. All representations, warranties, covenants or other
agreements contained in this Agreement shall survive the execution and delivery
of this Agreement and the exercise of the Warrant.

      

      9.    Miscellaneous.

      

      
        
          	
                	
                  a.

                	
                  This
      Agreement shall amend and is incorporated into and made part of the
      Warrant. To the extent any term or provision of this Agreement may be
      deemed expressly inconsistent with any term or provision in the Warrant,
      the terms and provisions of this Agreement shall control. Except as
      expressly amended by this Agreement, all of the terms, conditions and
      provisions of the Warrant are hereby ratified and continue unchanged and
      remain in full force and
effect.

                

        

      

      

      
        
          	
                	
                  b.

                	
                  This
      Agreement shall be governed by, and interpreted in accordance with, the
      laws of the State of Delaware, without giving effect to any choice of law
      or conflicts of laws provisions or rule of any jurisdiction that would
      cause the substantive laws of any other jurisdiction to apply. Holder
      hereby irrevocably and unconditionally consents to submit to the exclusive
      jurisdiction of the federal and state courts located in the city of
      Wilmington, Delaware for any actions, suits or proceedings arising out of
      or relating to this Agreement. Holder hereby irrevocably and
      unconditionally waives any objection to the laying of venue of any action,
      suit or proceeding arising out of this Agreement, in the federal and state
      courts located in the city of Wilmington, Delaware and hereby further
      irrevocably and unconditionally waives and agrees not to plead or claim in
      any such court that any such action, suit or proceeding brought in any
      such court has been brought in an inconvenient
  forum.

                

        

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        
          	
                	
                  c.

                	
                  This
      Agreement may be executed in multiple counterparts, each of which shall be
      deemed an original but all of which together shall constitute one and the
      same instrument. This Agreement, any and all agreements and instruments
      executed and delivered in accordance herewith, along with any amendments
      hereto or thereto, to the extent signed and delivered by means of E-mail,
      a facsimile machine or other means of electronic transmission, shall be
      treated in all manner and respects and for all purposes as an original
      signature, agreement or instrument and shall be considered to have the
      same binding legal effect as if it were the original signed version
      thereof delivered in person.

                

        

      

      

      
        
          	
                	
                  d.

                	
                  Notices
      given hereunder shall be in writing and shall be deemed to have been duly
      given on the date established by the sender as having been delivered
      personally, upon confirmation of receipt if sent by facsimile, on the date
      delivered by a private courier as established by the sender by evidence
      obtained from the courier, on the third day after the date mailed, if
      mailed by certified or registered mail, return receipt requested, postage
      prepaid, to the party being notified at its address or facsimile number
      set forth on the signature page hereto or such other address as the
      addressee may subsequently notify the other party of in
      writing.

                

        

      

      

      
        
          	
                	
                  e.

                	
                  This
      Agreement may be amended, and any provisions hereof may be waived, only by
      a writing signed by Holder and the Company. Holder may not assign this
      Agreement or any of its rights hereunder without the written consent of
      the Company. This Agreement shall be binding upon and inure to the benefit
      of Holder and the Company and their respective successors and assigns. If
      any portion or provision of this Agreement shall to any extent be declared
      illegal or unenforceable by a court of competent jurisdiction, then the
      remainder of this Agreement, or the application of such portion or
      provision in circumstances other than those as to which it is so declared
      illegal or unenforceable, shall not be affected thereby, and each portion
      and provision of this Agreement shall be valid and enforceable to the
      fullest extent permitted by applicable law. No failure or delay by the
      Company in exercising any right, power or privilege hereunder will operate
      as a waiver thereof, nor will any single or partial exercise thereof
      preclude any other or further exercise thereof or the exercise of any
      other right, power or privilege hereunder. This Agreement embodies the
      entire agreement and understanding of the Company and Holder with respect
      to the subject matter hereof and supersedes all prior discussions,
      negotiations, agreements and understandings among Holder and the Company
      with respect to the subject matter hereof. Holder shall not issue any
      press release, make any other public statement or otherwise disclose to
      any person the existence of this Agreement or any of the terms and
      conditions hereof, without the prior written consent of the Company,
      except to the extent legally required to make such disclosure upon the
      advice of outside legal
counsel.

                

        

      

      

      
        
          	
                	
                  f.

                	
                  If
      the Warrant was transferred from a third party to Holder in contemplation
      of entering this Agreement, the Company agrees to reimburse Holder for the
      transfer fee paid by Holder to such third
party.

                

        

      

      

      [Signature
Page Follows]

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      IN WITNESS WHEREOF, the
Parties hereto have caused this Agreement to be executed and delivered as of
June __, 2009 by persons thereunto duly authorized.

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	
                                            COMPANY:

                                          	
                                            HOLDER:

                                          
	
                                            WorldGate
      Communications, Inc.

                                          	
                                             

                                          
	 	 
	
                                            By:_______________________

                                          	
                                                  
                                              __________________________

                                            

                                          
	
                                            Name:
      Christopher V. Vitale

                                          	
                                             

                                          
	
                                            Title:  
      General Counsel and Secretary

                                          	
                                             

                                          
	 	 
	
                                            Address: 
      3190 Tremont Avenue

                                          	
                                                  
                                                    
                                                Address: 
      __________________

                                              

                                            

                                          
	
                                                             Trevose,
      Pennsylvania 19053

                                          	
                                                  
                                                        
          
__________________

                                            

                                          
	      
                                            Fax:         
      215-354-5199 

                                          	Fax:     
         __________________ 
	 	      
                                            Social
      Security Number/Federal Tax ID number:

                                          
	 	      
                                                      
      ____________

                                          
	
                                             

                                          	 
      

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        
          	
                  Provisions Referenced in
      Agreement:

                
	 
      
	
                  “Warrant Shares” means
      ______________ shares of Common Stock.

                
	 
      
	
                  “New Exercise Price”
      means $0.25 per share of Common Stock.

                
	 
      
	
                  “Exercise Cash Proceeds”
      means ________________________________
    ($____________).

                
	 
      
	
                  “Confidentiality Agreement”
      means the Confidentiality Agreement, dated June __, 2009, between
      the Company and
Holder.

                

        

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Exhibit
A

       

      WarrantUnassociated Document

    EXHIBIT
10.1

    GRAND
RIVER COMMERCE, INC.

    2009
STOCK INCENTIVE PLAN

    

    1.    PURPOSE

     

    The 2009
Stock Incentive Plan (“Plan”) is intended to promote shareholder value by (a)
enabling Grand River Commerce, Inc. (“Company”) and its affiliates to attract
and retain the best available individuals for positions of substantial
responsibility; (b) providing additional incentive to such persons by affording
them an equity participation in the Company; (c) rewarding those directors,
executive officers, employees and other non-employee shareholders for their
contributions to the Company or Grand River Bank (“Bank”); and (d) promoting the
success of the Company’s business by aligning the financial interests of
directors, executive officers and employees providing personal services to the
Company or its affiliates with long-term shareholder value.

     

    2.    DEFINITIONS

     

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

     

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

     

    (C)    “Bank”
means Grand River Bank, a Michigan state bank, and except as otherwise specified
in this Plan in a particular context, any successor thereto, whether by merger,
consolidation, purchase of all or substantially all of its assets or
otherwise.

     

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

     

    (E)    “Brokered
Assisted Exercise” means a special sale and remittance procedure pursuant to
which the Participant shall concurrently provide irrevocable written
instructions to (a) an administrator-designated brokerage firm to effect the
immediate sale of Stock owned by the Participant for at least six months and
remit to the Company, out of the sale proceeds available on the settlement date,
sufficient funds to cover the aggregate exercise price plus all applicable
federal, state and local income and employment taxes required to be withheld by
the Company, and (b) the Company to deliver the certificates for the Stock
issued upon exercise of the Options directly to the Participant or such
brokerage firm in order to complete the sale.

     

    (F)    “Change
of Control” means:

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    (R)    “Stock”
means the common stock of the Company, $0.01 par value per share.

     

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

     

    
      
        
        

      

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

     

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

     

    3.    SHARES
AVAILABLE UNDER THE PLAN

     

    (A)    Shares Subject to the
Plan.  Subject to adjustment in accordance with the provisions
of this Section 3, the total number of shares of Stock as to which Options may
be granted shall be 200,000 shares, all of which may be awardable as
ISOs.  Stock issued under the Plan may be either authorized but
unissued shares or shares that have been reacquired by the
Company.  Any shares issued by the Company in connection with the
assumption or substitution of outstanding grants from any acquired corporation
shall not reduce the shares of Stock available for Options under the
Plan.

     

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

     

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

     

    4.    ADMINISTRATION

     

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

     

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

     

    
      
        
        

      

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

     

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

     

    5.    ELIGIBILITY

     

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

     

    6.    TERMS
AND CONDITIONS APPLICABLE TO OPTIONS UNDER THE PLAN

     

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

     

    (A)    Medium and Time of
Payment.  The Exercise Price shall be paid in full at the time
the Option is exercised.  The Exercise Price shall be payable in
United States dollars in cash or by check, bank draft, money order or wire
transfer of good funds payable to the Company.  A Broker Assisted
Exercise in which cash is delivered to the Company shall be deemed to be an
exercise for cash.

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

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

     

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

     

    (H)    Date of
Exercise.  The Committee may, in its sole discretion, provide
that an Option may not be exercised in whole or in part for any period or
periods of time specified by the Committee; provided, however, that any Options
granted under the Plan during the first three years of the Bank’s existence must
vest over a minimum of three years.  Except as may be so provided, any
Option may be exercised in whole at any time, or in part from time to time,
during its term.  In the case of an Option not immediately exercisable
in full, the Committee may at any time accelerate the time at which all or any
part of the Option may be exercised.

     

    
      
        
        

      

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

     

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

     

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

     

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

     

    (M)    Tax
Withholding.  As a condition to the exercise of any Option, the
Company shall have the right to require that the Participant exercising the
Option (or the recipient of any shares of Stock) remit to the Company an amount
calculated by the Company to be sufficient to satisfy applicable federal, state,
foreign or local withholding tax requirements (or make other arrangements
satisfactory to the Company with regard to such taxes) prior to the delivery of
any certificate evidencing shares of Stock.

     

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

     

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

     

    
      
        
        

      

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

     

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

     

    7.    AMENDMENT
AND TERMINATION OF THE PLAN

     

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

     

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

     

    8.    LEGALITY
OF GRANT

     

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

     

    9.    NO
EMPLOYMENT/SERVICE RIGHTS

     

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

     

    
      
        
        

      

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

     

    10.   EFFECTIVE
DATE

     

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

     

    11.   RESERVATION
OF SHARES

     

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

     

    12.   MINIMUM
CAPITAL REQUIREMENTS

     

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

     

    13.   ADMINISTRATION
OF PLAN

     

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

     

    
      
        
        

      

      
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    14.   GENERAL

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

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

     

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

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

       

    

    IN WITNESS WHEREOF, the
Company, acting by and through its duly authorized officer, has executed this
Plan on this the 23rd day of
June, 2009.

     

    
      
        
          
            
              	 	GRAND RIVER COMMERCE,
      INC.	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
                       

                    	
                      By:
      

                    	
                      /s/ Robert
      P. Bilotti

                    	 
	 	 	Robert
      P. Bilotti, President & Chief Executive Officer
	 	 	 	 
	 	 	 	 

            

          

        

      

    

    

    
      
        
        

      

      
        12

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