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                                                                   Exhibit 10.35

                                 PENTECOST PLAZA
                               AGREEMENT OF LEASE

     THIS LEASE made this 29th day of April, 2005, by and between

Landlord:

            Joe D. Pentecost Trust
            1651 W. Lake Lansing Avenue, Suite #200
            East Lansing, Michigan 48823
            (517)336-5000 fax(517) 336-5882

and Tenant:

            Mercantile Bank of West Michigan
            5650 Byron Center Avenue, SW
            Wyoming, MI 49519
            (616) 406-3780 fax(616) 406-3737

ARTICLE 1. NONSTANDARD PROVISIONS

The following entries constitute the nonstandard provisions of the Lease and
referred to elsewhere herein:

(a) Premises: 1651 W. Lake Lansing Road, Suite #300, East Lansing, MI 48823

(b) Leased Premises: A portion of the first floor of the Premises consisting of
approximately 7714 sq ft as described in Exhibit A. Tenant's pro-rata share of
the Premises is 66.95% ("Tenant's Pro-Rata Share")

(c) The term of this Lease shall be 24 months and shall commence on the 15th day
of June 2005, and end on the 15th day of June 2007.

(d) Monthly Rental is due on the 1st day of each month in advance in the amount
of Nine Thousand Three Hundred and Twenty One Dollars and xx/100 ($9321.00).
Rent for said term is the sum of Two Hundred Twenty Three Thousand Seven Hundred
Four Dollars and xx/100 ($223,704.00). In addition to the monthly rental, upon
execution of this Lease, Tenant shall pay to Landlord a one time fee of $15,000
(which fee will not be payable upon any extension of this Lease as described
below).

(e) Use of premises by Tenant: OFFICE AND BANK BRANCH

(f) Security Deposit: Five Thousand Dollars and xx/100 ($5000.00)

(g) This Lease, together with Exhibits A (Site Plan and legal description), B
(Rules and Regulations), C (Signage), and D (floor plan) referred to herein,
embodies the entire agreement between the parties.

(h) Tenant shall have the option to extend the term of this lease for Two (2)
additional Three (3) year periods by providing written notice via certified
mail, return receipt requested to Landlord of the exercise of each such option
not less than six (6) months prior to the expiration of the current or extended
term of this Lease. Each extension shall be upon the same terms and conditions
as this lease; provided that the

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monthly rental for the first option term shall be $9,881 and the monthly rental
for the second option term shall be $10,474.

(i) The provisions of this section (i) shall govern notwithstanding anything to
the contrary contained in this Lease. The Landlord shall not have access to the
Premises unless supervised by representatives of Tenant, except in case of
emergency to save property or life or Tenant unreasonably fails to provide
supervision (after reasonable notice) for any access granted to Landlord under
the terms hereof. Landlord shall have no access to Tenant's Confidential
Information (as defined below). In the event Landlord obtains any Confidential
Information, all such Confidential Information shall be immediately returned to
Tenant and held in confidence by Landlord to the same extent and using at least
the same degree of care as Landlord uses to protect its own confidential or
proprietary information, but in no event less than reasonable care. Landlord
shall not disclose, publish, release, transfer or otherwise make available
Confidential Information in any form to, or for the use or benefit of, any other
person or entity. "Confidential Information" shall mean all confidential or
proprietary information of Tenant, including trade secrets and documentation,
and all "nonpublic personal information" as such term is defined under Title V
of the Gramm-Leach-Bliley Act of 1999 (Public Law 106-102, 113 Stat. 1138), as
it may be amended from time to time, the regulations promulgated thereunder or
other applicable law.

(j) Notwithstanding anything in this Lease to the contrary, Landlord covenants
and agrees that during the term of this Lease and any extension: (i) no part of
the Premises occupied by any other person shall be used as a site for the
operation of a bank, mortgage company, or other financial institution and (ii)
no banking, mortgage, or other financial services shall be provided from any
part of the Premises not occupied by Tenant including, without limitation, the
providing of services through automated teller machine(s) or cash dissemination
machine(s); provided, however, the following activities and operations shall be
permitted: stockbroker, brokerage houses, insurance agency, financial planner,
investment advisor, realtor or law practice (the "Restrictive Covenant"). In the
event of a violation or breach of the Restrictive Covenant, Tenant, shall have
the right to proceed at law or in equity to compel compliance with the
Restrictive Covenant or to prevent its violation or breach and the fee title
owner of the Premises at the time of such violation/breach shall reimburse
Tenant for all costs, including reasonable attorneys fees, incurred in enforcing
the Restrictive Covenant. No failure of Tenant to enforce its rights hereunder
shall be construed to constitute a waiver thereof.

ARTICLE 2. PREMISES

     Landlord, in consideration of the rent to be paid and the covenants to be
performed by Tenant, does hereby demise and lease unto Tenant and Tenant hereby
rents from Landlord, those certain premises, which is shown and legally
described on the site plan marked Exhibit A attached hereto and made a part
hereof, such leased premises being cross-hatched on Exhibit D (floor plan). The
leased premises extend to the exterior face of the exterior walls and the
centerline of the demising walls separating the leased premises from the
premises of other tenants.

     Tenant has examined the leased premises and knowingly accepts the present
condition of same, and acknowledges that such condition is satisfactory for its
purposes.

ARTICLE 3. TERM

     The term of the Lease shall be as set forth in Article 1(c).

ARTICLE 4. RENT

     Tenant shall pay the Landlord the monthly rental which is set forth in
Article l(d) in advance on the first day of each calendar month during said
term, made payable and addressed to Landlord as set forth on page 1 of this
Lease, or such other place as Landlord may from time to time designate in
writing. The

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installment of rent payable for any portion, less than all, of a calendar month
shall be a pro-rata portion of the installment payable for a full calendar
month.

ARTICLE 5. REAL ESTATE AND PERSONAL PROPERTY TAXES

     Tenant shall annually pay (within 30 days after invoice) Tenant's Pro-Rata
Share (as set forth in section l(b) above) of real estate taxes and assessments
assessed against the Premises prorated to cover the term of this Lease. Tenant
to pay all personal property taxes on fixtures, equipment, inventory, etc. owned
or leased by tenant.

ARTICLE 6. USE OF PREMISES AND OPERATION OF BUSINESS

     Tenant agrees that the leased premises shall be used and occupied by Tenant
or anyone claiming under Tenant only for the purpose specified as the use
thereof in Section l(e) and for no other purpose or purposes without the prior
written consent of Landlord.

     Tenant agrees to comply promptly with all laws, ordinances, orders, and
regulations affecting the leased premises and the cleanliness, safety,
operation, and use thereof. Tenant also agrees to comply with the reasonable
recommendations of an insurance company, inspection bureau or similar agency
selected by Landlord with respect to the leased premises.

Tenant agrees not to:

(A) Permit any unlawful or immoral practice to be carried on or committed on the
leased premises.

(B) Make any use of or allow the leased premises to be used in any manner or for
any purpose that might invalidate or increase the rate of Landlord's insurance
thereof, except that Tenant may use the Premises for the purposes described in
section 1(e).

(C) Keep or use or permit to be kept or used on said leased premises any
inflammable fluids or explosives without in each instance obtaining the prior
written approval of Landlord.

(D) No waste, nuisance, or damage shall be committed upon or to the demised
premises.

ARTICLE 7. COMMON AREAS

     Landlord agrees to cause to be operated, managed, and maintained in good
and clean working order during the term of this Lease all common areas, parking
areas, roads, sidewalks, landscaping, drainage, and common area lighting
facilities related to the Premises.

     The manner in which such areas and facilities shall be maintained and
operated and the expenditures therefor by Landlord shall be commercially
reasonable and the use of such areas and facilities shall be subject to such
reasonable regulations as Landlord shall make from time to time. Tenant shall
pay Tenant's Pro-Rata Share (as set forth in section l(b) above) of all common
area expenses.

     Landlord hereby grants to Tenant and Tenant's customers and invitees the
right to use, subject to the conditions hereinafter stated, the common areas in
the Premises. The use of the common areas by Tenant and Tenant's customers and
invitees shall be subject to the rights of Landlord under the terms of this
Lease and shall be used by Tenant, its agents, employees, customers, and
invitees in common with agents, employees, customers, and invitees of Landlord,
the other owners, occupants, and tenants from time to time in the Premises.
Tenant shall make no use of the common areas which shall interfere in any way
with the use of the common areas by others or with the business of any other
Tenant or with the Landlord. The use of all common areas shall be subject to the
rules and regulations from time to time approved by Landlord.

ARTICLE 8. ALTERATIONS BY TENANT

     Tenant shall not make or cause to be made any alterations, additions, or
improvements to the leased premises or install or cause to be installed any
exterior signs, floor covering, interior or exterior lighting, plumbing
fixtures, shades, canopies or awnings, or make any changes to the leased
premises

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without the prior written approval of Landlord, which approval shall not be
unreasonably withheld. Tenant shall present to the Landlord plans and
specifications for such work at the time approval is sought.

     All alterations, decorations, additions, and improvements made by Tenant
shall be deemed to have been attached to the leasehold and to have become the
property of Landlord upon such attachment and upon expiration of this Lease or
any renewal term thereof. The Tenant shall not remove any of such alterations,
decorations, additions, and improvements except trade fixtures installed by
Tenant (including safes, surveillance equipment and similar fixtures) and
personal property of Tenant (hereinafter referred to as "Tenant's Property").
Landlord, at the expiration of the term, may elect to require Tenant to remove
all or any part of Tenant's Property and/or the alterations made by Tenant, and,
in such event, such removal shall be done at Tenant's cost and expense, and
Tenant shall, at its cost and expense, repair any damage to the leased premises
or the building caused by such removal, provided that Landlord may remove such
Tenants Property and/or alterations, and Tenant shall pay to Landlord,
Landlord's cost of removal within ten (10) days after the receipt of a bill
therefor. In the event Landlord does not so elect and Tenant vacates the leased
premises without so removing Tenant's Property, such Tenant's Property and/or
alterations, shall become Landlord's property.

ARTICLE 9. ALTERATIONS BY LANDLORD

     Landlord reserves the right at any time to make alterations, modifications,
reductions, expansions, or additions to, any portion of the Premises (other than
the leased premises), provided that such actions do not interfere with Tenant's
business or impair the value of the leased premises.

ARTICLE 10. MAINTENANCE OF PREMISES

     Landlord shall, at its expense, keep, maintain and repair the Premises
(other than interior leased premises), including all mechanical systems,
structural components and roof, in good working order and repair at all times
and shall make all necessary replacements of such systems, components and roof.
Lessee is responsible for nonstructural repairs and maintenance replacements on
Lessee's premises. Tenant shall replace all light bulbs and janitorial supplies
in the leased premises.

     Tenant shall keep and maintain the interior leased premises in a clean,
sanitary, and safe condition in accordance with the laws of the State of
Michigan and in accordance with all directions, rules, and regulations of the
health officer, fire marshal, building inspector, or other proper officials of
the governmental agencies having jurisdiction, at the sole cost and expense of
Tenant, and Tenant shall comply with all requirements of law, ordinance and
otherwise, affecting said interior leased premises. If Tenant refuses or
neglects to commence and to complete repairs promptly and adequately, Landlord
may, but shall not be required to do so, make and complete said repairs, and
Tenant shall pay the cost thereof to Landlord upon demand. At the time of the
expiration of the tenancy created herein, Tenant shall surrender the leased
premises in good condition, reasonable wear and tear, loss by fire or other
unavoidable casualty excepted.

ARTICLE 11. INSURANCE AND INDEMNITY

     Tenant shall, during the entire term hereof, keep in full force and effect
a policy of public liability and property damage insurance with respect to the
leased premises and the business operated by Tenant and any subtenants of Tenant
in the leased premises, in which the limits of public liability shall not be
less than Two Million ($2,000,000) Dollars per person per accident and in which
the limit of property damage liability shall not be less than Five Hundred
Thousand ($500,000) Dollars. Such insurance may be furnished by Tenant under any
blanket policy carried by it or under a separate policy therefor.

     Landlord agrees, during the term hereof, to carry insurance against fire,
vandalism, malicious mischief, and such other perils as are from time to time
included in a standard extended coverage endorsement and, at Landlord's option,
special extended coverage endorsements insuring the improvements to the Premises
in an amount determined solely by Landlord but not less than One Hundred (100%)
Percent of the full replacement cost, if available. Tenant will pay Tenant's
Pro-Rata Share (as set forth in section

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or responsibility for any direct or consequential loss, injury, or damage to the
premises or its contents, caused by fire or any other casualty, during the term
of this Lease, even if such fire or other casualty may have been caused by the
negligence (but not willful act) of the other party or one for whom such party
may be responsible. Inasmuch as the above mutual waivers will preclude the
assignment of any aforesaid claim by way of subrogation (or otherwise) to an
insurance company (or any other person), each party hereto agrees, if required
by said policies, to give to each insurance company which has issued to it fire
and other property insurance, written notice of the terms of said mutual waivers
and to have said insurance policies properly endorsed, if necessary, to prevent
the invalidation of said insurance coverage by reason of said waivers.

ARTICLE 12. UTILITIES

     Tenant will be responsible for Tenant's Pro-Rata Share (as set forth in
section l(b) above) of all charges for water, sewer, and trash removal,
furnished to the Premises. Tenant shall be responsible for all charges for
electricity, gas, telephone and janitorial services provided directly to (or
metered to) the leased premises.

ARTICLE 13. ATTORNMENT AND SUBORDINATION

     At any time and from time to time, Tenant agrees, within ten (10) days
after request in writing from Landlord, to execute and deliver to Landlord, for
the benefit of such persons as Landlord names in such request, a statement in
writing and in form and substance satisfactory to Landlord certifying to the
following information as Landlord shall request:

(A) This Lease constitutes the entire agreement between Landlord and Tenant and
is unmodified and that this lease is in full force and effect (or if there have
been modifications, that the same is in full force and effect as modified and
stating the modifications);

(B) The amount of and dates to which the rent and other charges hereunder have
been paid and the amount of any security deposited with Landlord;

(C) The leased premises have been renovated on or before the date of such letter
and that all conditions precedent to the Lease taking effect have been carried
out;

(D) The tenant has accepted possession, that the lease term has commenced, that
Tenant is occupying the leased premises and that Tenant knows of no default
under the Lease by the Landlord, and that there are no defaults or offsets which
Tenant has against enforcement of this Lease by Landlord (or, if in default, the
nature thereof in detail);

(E) The actual Commencement Date of the Lease and Expiration Date of the Lease;
and,

(F) The Tenant's business located in the leased premises is open and operating,
provided all of the foregoing facts are true and ascertainable.

ARTICLE 14. OWNERSHIP, ASSIGNMENT, AND SUBLETTING

     Tenant shall not transfer, assign, sublet, mortgage, enter into a license
or concession agreement or hypothecate this Lease or Tenant's interest in and to
the leased premises, or permit any transfer of Tenant's interest created hereby
or allow any liens upon Tenant's interest by operation of law, or permit the use
or occupancy of the leased premises or any part thereof by anyone other than
Tenant without first obtaining the prior written consent of Landlord, which
consent shall not be unreasonably withheld.

ARTICLE 16. EMINENT DOMAIN

     If the whole of the leased premises shall be taken by any public authority
under the power of eminent domain, then the term of this Lease shall cease as of
the day possession shall be taken by such public authority, and the rent shall
be paid up to that day with a proportionate refund by Landlord of such rent as
may have been paid in advance for a period subsequent to the date of the taking.

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     If only a part of the leased premises shall be taken by any public
authority under the power of eminent domain, then either Landlord or Tenant
shall have the right to terminate this Lease and declare the same null and void
by written notice of such intention to the other party within ten (10) days
after such taking. In the event neither party exercises said right of
termination, this Lease term shall cease only on the part so taken as of the day
possession shall be taken by such public authority and Tenant shall pay rent up
to that day, with appropriate refund by Landlord of such rent as may have been
paid in advance for a period subsequent to the date of the taking, and
thereafter all the terms herein provided shall continue in effect, except that
the fixed monthly rental shall be reduced in proportion to the amount of the
leased premises taken and Landlord shall at its own cost and expense make all
the necessary repairs or alterations to the basic building as originally
installed by Landlord so as to constitute the remaining leased premises a
complete architectural unit.

     All damages awarded for such taking under the power of eminent domain,
whether for the whole or a part of the leased premises, shall belong to and be
the property of Landlord, whether such damages shall be awarded as compensation
for diminution in value to the leasehold or to the fee of the premises;
provided, however, that Landlord shall not be entitled to the award made for
depreciation to, and cost of removal of, Tenant's stock and fixtures.

ARTICLE 17. DEFAULT OF TENANT

     In the event of any failure of Tenant to pay any rental or other charges
due hereunder on the day the same shall be due, or any failure to perform any
other of the terms, conditions, or covenants of this Lease to be observed or
performed by Tenant for more than ten (10) days after written notice of such
default shall have been mailed to Tenant, or if Tenant shall abandon said
premises or permit this Lease to be taken under any writ of execution, then the
Landlord, besides other rights or remedies it may have, shall have the right to
declare this Lease terminated and the term ended and/or shall have the immediate
right of re-entry and may remove all persons and property from the leased
premises, and such property may be removed and stored in a public warehouse or
elsewhere at the cost of and for the account of Tenant, without evidence of
notice or resort to legal process and without being deemed guilty of trespass or
becoming liable for any loss or damage which may be occasioned thereby.

     Should Landlord elect to re-enter, as herein provided, or should it take
possession pursuant to legal proceedings or pursuant to any notice provided for
by law, it may either terminate this Lease or it may from time to time, without
terminating this Lease, make such alterations and repairs as may be necessary in
order to relet the premises, and relet said premises or any part thereof for
such term or terms (which may be for a term extending beyond the term of this
Lease) and at such rental or rentals and upon such other terms and conditions as
Landlord in its sole discretion may deem advisable.

     Upon each such reletting, all rentals and other sums received by Landlord
from such reletting shall be applied: first, to the payment of any indebtedness
other than rent due hereunder from Tenant to Landlord; second, to the payment of
any costs and expenses of such reletting, including reasonable brokerage fees
and attorneys' fees and of costs of such alterations and repairs and costs of
moving other tenants in the Premises in order to relet the leased premises, such
as repairs and alterations to other portions of the Premises or reduced rental
to other tenants; third, to the payment of rent and other charges due and unpaid
hereunder, and the residue, if any, shall be held by Landlord and applied in
payment of future rent as the same may become due and payable hereunder. If such
rentals and other sums received from such reletting during any month be less
than that to be paid during that month by Tenant hereunder, Tenant shall pay
such deficiency to Landlord. Such deficiency shall be calculated and paid
monthly. Tenant shall in no event be entitled to any rent collected as payable
under any reletting, whether or not such rent shall exceed the rent reserved in
this Lease. No such re-entry or taking possession of said premises by Landlord
shall be construed as an election on its part to terminate this Lease unless a
written notice of such intention be given to Tenant or unless the termination
thereof be decreed by a court of competent jurisdiction. Notwithstanding any
such reletting without termination, Landlord may at any time hereafter elect to
terminate this Lease for such previous breach. Should Landlord at any time
terminate this Lease for any breach, in addition to any other remedies it may
have, it may recover from Tenant all damages it may incur

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by reason of such breach, including the cost of recovering the leased premises,
reasonable attorneys' fees, and including the worth at the time of such
termination of the excess, if any, of the amount of rent and charges equivalent
to rent reserved in this Lease for the remainder of the stated term over the
then reasonable rental value of the leased premises for the remainder of the
stated term, all of which amounts shall be immediately due and payable from
Tenant to Landlord.

     Abandonment of the leasehold shall not terminate tenant's obligations
hereunder. In the event tenant seeks relief pursuant to 11 USC of the United
States Bankruptcy Code, the parties hereto agree that any relief approved by the
court thereunder after Motion of the Debtor will only be effective as of the
date of the Hearing on such Motion, or such later date as the court may
designate. Landlord shall be entitled to immediate administrative payment of all
amounts due under the lease from the date of filing any Petition in Bankruptcy,
until said relief may be granted by the court.

     In case suit shall be brought for recovery of possession of the leased
premises, for the recovery of rent or any other amount due under the provisions
of this Lease, or because of the breach of any other covenant herein contained
on the part of Tenant to be kept performed, and a breach shall be established,
Tenant shall pay to Landlord all expenses incurred therefor, including
reasonable attorneys' fees.

     If any amount due from Tenant is not received by Landlord within five (5)
days of when due, Tenant shall pay to the Landlord an additional sum equal to
five (5%) percent of such overdue amount as a late charge. Payment of any such
late charge shall not excuse or cure any default or prevent Landlord from
exercising any of its other rights and remedies.

ARTICLE 18. ACCESS BY LANDLORD

     Landlord or Landlord's agent shall have the right to enter the leased
premises at all reasonable times to examine the same and to show them to
prospective purchasers or mortgagees of the building and to make such repairs,
alterations, improvements, or additions as Landlord may deem necessary or
desirable, and Landlord shall be allowed to take all material into and upon said
premises that may be required therefor without the same constituting an eviction
of Tenant in whole or in part, and the rent reserved shall in no way abate while
said repairs, alterations, improvements, or additions are being made, by reason
of loss or interruption of business of Tenant, or otherwise. During the six (6)
months prior to the expiration of the term of this Lease or any renewal term,
Landlord may exhibit the premises to prospective tenants and place upon the
premises the usual notices "To Let" or "For Rent", which notices Tenant shall
permit to remain thereon without molestation.

ARTICLE 19. TENANT'S PROPERTY

     Tenant shall be responsible for and shall pay before delinquency all
municipal, county, state, and federal taxes assessed during the term of this
Lease against any leasehold interest or Tenant's property.

     The Landlord shall not be responsible or liable to the Tenant for any loss
or damage that may be occasioned by or through the acts or omissions of persons
occupying adjoining premises or any part of the premises adjacent to or
connected with the premises hereby leased or any part of the building of which
the leased premises are a part or for any loss or damage resulting to the Tenant
or its property from bursting, stoppage, or leaking of water, gas, sewer, or
steam pipes or for any damage or loss of property within the leased premises
from any cause whatsoever (unless caused by the neglect or act of Landlord).

     Tenant shall give immediate notice to Landlord in case of fire or accidents
in the leased premises or in the building of which the premises are a part or of
defects therein or in any fixtures or equipment.

ARTICLE 20. HOLDING OVER

     Any holding over after the expiration of the term hereof with the consent
of the Landlord shall be construed to be a tenancy from month to month and shall
otherwise be on the same terms and conditions herein specified so far as
applicable.

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ARTICLE 21. RULES AND REGULATIONS

     Tenant agrees to comply with and observe all rules and regulations
established by Landlord from time to time, provided the same shall apply
uniformly to all tenants of the Premises. Tenant's failure to keep and observe
said rules and regulations shall constitute a breach of the terms of this Lease
in the manner as if the same were contained herein as covenants. "Rules and
Regulations" are attached as Exhibit B and are made a part hereof. Landlord
reserves the right to change, alter, or amend said Rules and Regulations upon
giving tenant thirty (30) days written notice; provided that any such change
shall not: unreasonably interfere with Tenant's use of the leased premises; or
result in additional cost or expense to Tenant.

ARTICLE 22. QUIET ENJOYMENT

     Upon payment by the Tenant of the rent herein provided and upon the
observance and performance of all the covenants, terms, and conditions on
Tenant's part to be observed and performed, Tenant shall peaceably and quietly
hold and enjoy the leased premises for the term hereby demised without hindrance
or interruption by Landlord or any other person or persons lawfully or equitably
claiming by, through, or under the Landlord, subject, nevertheless, to the terms
and conditions of this Lease and any mortgages to which this Lease is
subordinate.

ARTICLE 23. SECURITY DEPOSIT

     The Landlord herewith acknowledges receipt of the sum set forth in 1(f),
which it is to retain as security for the faithful performance of all covenants,
conditions, and agreements of this Lease, but in no event shall the Landlord be
obliged to apply the same upon rents or other charges in arrears or upon damages
for the Tenant's failure to perform the said covenants, conditions, and
agreements; the Landlord may so apply the security, at its option; and the
Landlord's right to the possession of the leased premises for nonpayment of rent
or for any other reason shall not in any event be affected by reason of the fact
that the Landlord holds this security. The said sum, if not applied toward the
payment of rent in arrears or toward the payment of damages suffered by the
Landlord by reason of the Tenant's breach of the covenants, conditions, and
agreements of this Lease, is to be returned to the Tenant without interest when
this Lease is terminated, according to these terms, and in no event is the said
security to be returned until the Tenant has vacated the premises and delivered
possession to the Landlord.

     In the event that the Landlord repossesses itself of the leased premises
because of the Tenant's default or because of the Tenant's failure to carry out
the covenants, conditions, and agreements of this Lease, the Landlord may apply
the said security upon all damages suffered to the date of said repossession and
may retain the said security to apply upon such damages as may be suffered or
shall accrue thereafter by reason of the Tenant's default or breach. The
Landlord shall not be obliged to keep the said security as a separate fund or
pay interest thereon but may mix the said security with its own funds.

ARTICLE 24. ENVIRONMENTAL

     Tenant represents, warrants and covenants that the leased premises shall
not be used for the temporary or permanent generation, storage, treatment,
manufacture, handling, processing, disposal, release, or discharge of any toxic,
hazardous, industrial or chemical materials, substances, wastes or pollutants,
including but not limited to any substance, material, waste, contaminant or
pollutant which is (i) subject to regulation under any federal, state, county,
municipal and other governmental laws, statutes, regulations, orders, permits,
decrees and ordinances ("Law") from time to time in effect or (ii) known to be a
hazard to health, safety, property or the environment (collectively, "Hazardous
Materials"), and that the Premises will be operated and maintained, and the
occupants of the Premises shall conduct their activities in the building in
compliance with all Laws and in a manner calculated to prevent damage to human
health, safety, welfare and the environment. In no event shall Tenant dispose
of, or permit the disposal of,

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Hazardous Materials in, on or under the Premises or property adjacent to the
Premises, and all Hazardous Materials shall be removed from the Premises in the
manner set forth below. In no event shall Tenant permit or cause a release of
Hazardous Materials at or from the Premises which is reportable or cognizable
under the federal Comprehensive Environmental Response Compensation and
Liability Act (42 USCA 9601 et seq.) or any other Laws. Tenant shall not burn,
or permit the burning of, any trash, garbage or Hazardous Materials at any time
in or about the Premises. Notwithstanding anything in this Lease to the
contrary, Tenant shall not store, or permit the storage of, waste (whether
recyclable or otherwise) or Hazardous Materials, except as is customarily used
or stored at similar premises, in non-leaking and secure above-ground
containers, and in compliance with all applicable Laws, and as is stored in a
manner calculated to prevent damage to human health, safety, welfare and the
environment, and the materials in which are removed from the leased premises
substantially prior to the time that such containers have been filled to
capacity, Tenant shall not introduce or permit the introduction of any material
except uncontaminated sanitary sewage and uncontaminated wash waters into the
sewers, it being recognized that this provision shall not prevent ordinary and
customary hand washing within the Premises. Tenant shall indemnify, defend and
hold harmless Landlord, its employees, agents, partners, officers and directors,
from and against all claims, liabilities, damages, costs and expenses, including
reasonable attorney fees, fees of environmental consultants, and any clean-up
costs, arising from any breach of the foregoing representations, warranties and
covenants or as the result of the presence or release of any Hazardous Materials
within, on or flowing from the leased premises.

ARTICLE 25. LANDLORD INDEMNITY

A. Representations and Warranties of Landlord. Landlord hereby represents and
warrants to Tenant that Landlord is the owner of the Premises and that Landlord
has title thereto and the full right to enter into this Lease with Tenant, and
that the premises are properly zoned for the intended use by Tenant.

B. Environmental Conditions. Landlord hereby represents and warrants to Tenant
that the Premises have not been used to generate, manufacture, refine,
transport, treat, store, handle, dispose, transfer, produce or process hazardous
substances (as defined in a federal, state or local law or regulation), or other
dangerous or toxic substances, or solid wastes, except in compliance with all
applicable federal, state and local laws or regulations, and has not caused or
permitted and has no knowledge of the release of any hazardous substances on the
Leased Premises.

C. Indemnification by Landlord. Landlord, its successors and assigns, shall
defend, indemnify and hold harmless Tenant and its directors, officers,
shareholders, agents, successors and assigns from and against any and all costs,
losses, claims, liabilities, fines, expenses, penalties, and damages (including
reasonable legal fees and any remediation costs) in connection with or resulting
from:

          (i) the existence or occurrence of any environmental condition on the
Leased Premises or environmental claims with respect thereto arising from events
occurring prior to the date Tenant occupies the Leased Premises, including
without limitation the failure of any person to fully comply with any federal,
state or local law or regulation having as its object the protection of public
health, natural resources or the environment; or

          (ii) any injury or death of any person or damage to any property from
any act or omission of Landlord or its agents or employees.

ARTICLE 26. MISCELLANEOUS PROVISIONS

     WAIVER OF JURY TRIAL. Tenant and Landlord hereby waive trial by jury in any
action or proceeding arising out of or in any way relating to the performance or
non-performance of this lease by either party other than claims by third parties
for personal injury or property damage.

     WAIVER. One or more waivers of any covenant or condition by Landlord shall
not be construed as a waiver of a subsequent breach of the same covenant or
condition, and the consent or approval by Landlord to or of any act by Tenant
requiring Landlord's consent or approval shall not be deemed to render

                                        9

<PAGE>

unnecessary Landlord's consent or approval to or of any subsequent similar act
by Tenant. No breach of a covenant or condition of this Lease shall be deemed to
have been waived by Landlord unless such waiver be in writing signed by
Landlord.

     ENTIRE AGREEMENT. This Lease and the Exhibits, and Rider, if any, attached
hereto and forming a part hereof, set forth all the covenants, promises,
agreements, conditions, and understandings between Landlord and Tenant
concerning the leased premises, and there are no covenants, promises,
agreements, conditions, or understandings, either oral or written, between them
other than are herein set forth. No alteration, amendment, change, or addition
to this Lease shall be binding upon Landlord or Tenant unless reduced to writing
and signed by each party.

     INTERPRETATION. Nothing contained herein shall be deemed or construed by
the parties hereto, nor by any third party as creating the relationship of
principal and agent or of partnership or of joint venture between the parties
hereto, it being understood and agreed that neither the method of computation of
rent nor any other provision contained herein, nor any acts of the parties
herein shall be deemed to create any relationship between the parties hereto
other than the relationship of Landlord and Tenant

     DELAYS. In the event that either party hereto shall be delayed or hindered
in or prevented from the performance of any act required hereunder by reason of
strikes, lockouts, labor troubles, inability to procure materials, failure of
power, restrictive governmental laws or regulations, riots, insurrection, war,
or other reason of a like nature not the fault of the party delayed in
performing work or doing acts required under the terms of this Lease, then
performance of such act shall be excused for the period of the delay, and the
period for the performance of any such act shall be extended for a period
equivalent to the period of such delay. The party entitled to such extension
hereunder shall give written notice as soon as possible to the other party
hereto of its claim of rights to such extension and the reason(s) therefor. The
provisions of this section shall not operate to excuse Tenant from prompt
payment of rent, percentage rent, or any other payments required by the terms of
this Lease.

     NOTICES. Any notice, demand, request, or other instrument which may be or
is required to be given under this Lease shall be sent by United States First
Class mail, postage prepaid, and shall be addressed as set forth on page one (1)
or at such other address as the Landlord or tenant may designate by written
notice.

     NO OPTION. The submission of this Lease for examination does not constitute
a reservation of or option for the leased premises and shall vest no right in
either party. This Lease becomes effective as a lease only upon execution and
delivery thereof by the parties hereto.

     BROKER'S COMMISSION. Except for the brokerage fee to be paid by Landlord
pursuant to paragraph 13 of the Preliminary Agreement to Lease for Commercial
Property dated April 14 and 15, 2005 executed by Tenant and Landlord, Tenant
represents and warrants unto the Landlord that there are no claims for brokerage
commissions or finder's fees in connection with this Lease, and Tenant agrees to
indemnify Landlord and hold it harmless from all liabilities arising from any
such claim arising from an alleged agreement or act by the indemnifying party
(including, without limitation, the cost of counsel fees in connection
therewith); such agreement to survive the termination of this Lease.

     RECORDING. Tenant shall not record this Lease without the written consent
of Landlord; however, upon request of either party, the other party shall join
in the execution of a memorandum or so-called "short form" of this Lease for the
purposes of recordation. Said memorandum or short form Lease shall describe the
parties, the leased premises, the term of this Lease, any special provisions,
and shall incorporate this Lease by reference.

                                       10

<PAGE>

     LAWS OF THE STATE OF MICHIGAN. This Lease shall be governed by, and
construed in accordance with, the laws of the State of Michigan. If any
provision of this Lease or the application thereof to any person or
circumstances shall, to any extent, be invalid or unenforceable, the remainder
of this Lease shall not be affected thereby, and each provision of the Lease
shall be valid and enforceable to the fullest extent permitted by the law.

     IN WITNESS WHEREOF, Landlord and Tenant have signed and sealed this Lease
as of the day and year first above written.

In the Presence of:

TENANT                                  LANDLORD
Mercantile Bank                         Joe D Pentecost Trust
of West Michigan

By /s/ Joseph Calvaruso, SVP            /s/ Rita F. Stoskopf
   ----------------------------------   ----------------------------------------
   Joseph Calvaruso, SVP                Rita F. Stoskopf, Trustee

                                        /s/ Robert Phipps
                                        ----------------------------------------
                                        Robert Phipps, Trustee

                                       11

<PAGE>

                                   EXHIBIT A
                                  (Site Plan)

<PAGE>

                                    EXHIBIT B

                              RULES AND REGULATIONS

Tenant covenants and agrees with Landlord that:

(A) Tenant shall not use handbills or balloons for advertising at the Office
Building.

(B) No awnings or other projections shall be attached to the exterior walls of
the leased premises or the building of which they form a part.

(C) All loading and unloading of goods shall be done only at such time, in the
areas, and through the entrance designated for such purpose by Landlord.

(D) All garbage and refuse shall be kept in the kind of container, be placed in
the areas, and prepared for collection in the manner and at the times and places
specified by Landlord.

(E) No aerial shall be erected on the roof, on exterior walls of the leased
premises or the Office Building, or on the grounds, without in each instance
having obtained Landlord's prior written consent. Any such device or aerial so
installed without such prior consent shall be subject to removal without notice
at any time.

(F) No loudspeakers, television sets, phonographs, radios, or other devices
shall be used in a manner so as to be heard or seen outside the leased premises.

(G) Tenant shall not permit any obstructions or merchandise in the service
corridors, sidewalks, entrances, passages, courts, corridors, elevators, or
stairways.

(H) Tenant and Tenant's employees shall park their cars only in those portions
of the parking area designated for employee parking by Landlord. Tenant shall
furnish Landlord the state automobile license numbers assigned to the car or
cars of Tenant and its employees within five (5) days of any request to do so by
Landlord. Tenant shall not store any vehicles on site. NO OVERNIGHT PARKING.

(I) Tenant shall use at Tenant's cost such pest extermination contractor as
Landlord may direct and at such intervals as Landlord may reasonably require,
provided the cost thereof is competitive to any similar service available to
Tenant.

(J) Tenant shall not make or permit any noise or odor which Landlord deems
objectionable to emanate from the leased premises, and no person shall use the
leased premises as sleeping quarters, sleeping apartments, or lodging rooms.

(K) Tenant shall obtain all permits or licenses necessary to conduct its
business.

TENANTS INITIAL'S /s/ JC                LANDLORD'S INITIAL'S /s/ RFS RP
                  -------------------                        -------------------

DATE 4-29-05                            DATE 4-29-05

                                       14

<PAGE>

                                    EXHIBIT C

                                     SIGNAGE

     With the prior written consent of Landlord, which consent shall not be
unreasonably withheld, Tenant shall be entitled to display such sign or signs
advertising Tenant's business at the Premises as shall be permitted by local
ordinances.

                                       15

<PAGE>

                                    EXHIBIT D
                                  (Floor Plan)<PAGE>
                                                                   Exhibit 10.36

                                COMMERCIAL LEASE

     This Commercial Lease ("Lease") has an effective date of the 12th day of
July, 2005, and is between The Conlin Company, a sole proprietorship, whose
address is 2455 South Industrial, Suite K, Ann Arbor, Michigan 48104,
hereinafter called "Landlord," and Mercantile Bank of West Michigan, a Michigan
banking corporation, whose address is 310 Leonard Street NW, Grand Rapids,
Michigan 49504, hereinafter called "Tenant."

     The parties agree to the following for which there is adequate
consideration:

     1. LOCATION. Landlord owns real property located in the City of Ann Arbor,
County of Washtenaw, and State of Michigan (the "Premises"). The legal
description of the Premises is set forth on attached EXHIBIT A. Landlord hereby
leases to Tenant the entire Premises, including an approximate 10,000 square
foot building and grounds (hereinafter referred to as the "Leased Premises").
The Leased Premises are more particularly shown on the drawing attached hereto
as EXHIBIT B.

          Notwithstanding anything in this Lease to the contrary, the Tenant
shall be given possession of the Leased Premises as of the Effective Date of
this Lease so Tenant can begin construction of its Tenant Improvements (as
defined herein). Tenant shall obtain all necessary permits and approvals for its
occupancy. During the first four (4) months of this Lease (hereafter the
"Construction Period"), Tenant shall have access to the Leased Premises for
purposes of building out the Tenant's space with its Tenant improvements
(collectively "Tenant Improvements") and for operating its business as further
set forth in Paragraph 4.

     2. TERM. The term of this Lease shall be five (5) years, commencing on July
1, 2005, and ending on June 30, 2010, unless sooner terminated under the
provisions hereof. Each "Lease Year" shall be a twelve (12) month period during
the initial term of this Lease and during any Renewal Period, the first
commencing on the date which this Lease commences.

          Notwithstanding the foregoing term and the option to renew set forth
in Paragraph 3, Tenant shall have the right to terminate this Lease prior to the
end of the initial term as follows:

          (a) During the first two (2) Lease Years, by giving Landlord not less
     than one (1) year advanced written notice and the payment of six (6) months
     of minimum monthly rent covering the six (6) month period after
     termination; or

          (b) After the first two (2) Lease Years, by giving Landlord not less
     than one (1) year advance written notice, but no additional minimum monthly
     rent shall be due.

In the event of termination under Paragraph 2(a) or 2(b), Tenant shall also owe
to Landlord the remaining unamortized portion of the tenant improvement
allowance (hereinafter "Tenant Allowance") set forth in Paragraph 10 of this
Lease. Payment by Tenant of the Tenant Allowance shall be prorated for the five
(5) year term of this Lease. For illustration purposes only, if Tenant were to
spend the entire $100,000 Tenant Allowance and then were to give Landlord proper
notice

<PAGE>

Commercial Lease
Page 2 of 14

and terminate this Lease on the fourth (4th) anniversary of this Lease, then
Tenant would pay to Landlord the sum of $20,000 to cover the unamortized portion
of the Tenant Allowance for the fifth (5th) Lease Year (i.e., the Tenant
Allowance shall be amortized at $20,000 per year for the five (5) year Lease
Term). For termination during a partial Lease Year, the amortization shall be on
a monthly basis.

     3. OPTION TO RENEW. Tenant shall have the option to renew this lease
("Lease") for two (2) additional terms of five (5) years each. Each "Renewal
Period" shall commence immediately after the end of the original term of this
Lease or at the end of the first Renewal Period. To exercise the option, Tenant
must give Landlord written notice of the exercise of such option not less than
six (6) months prior to the end of the original term of this Lease or first
Renewal Period, as appropriate. The terms of the Lease, during Renewal Period,
shall remain the same as during an initial term, except as otherwise expressly
set forth herein.

     4. RENT. During the Construction Period, and until the Rent Commencement
Date (defined below), Tenant shall pay to Landlord minimum monthly rent equal to
the square footage of the leased space that it is occupying to conduct business
(but not the portion of the Leased Premises in which the Tenant Improvements are
being constructed) at $15.00 per square foot per annum. For illustration
purposes only, if Tenant uses 2,000 feet during the Construction Period, then
the Tenant's minimum monthly rent shall be $2,500 per month, payable on or
before the first day of each month. In addition, Tenant shall pay Landlord the
sum of $12,500, which can be used to offset the appropriate portion of the last
month's rent owed under this Lease.

          Beginning on the earlier of (i) ten (10) days after Tenant's
completion of its Tenant Improvements and its obtaining of a Certificate of
Occupancy; and (ii) November 1, 2005, (the "Rent Commencement Date"), Tenant
shall pay Landlord, as minimum monthly rent (sometimes referred to as the
"Rent") for said Leased Premises, during the remainder of the first Lease Year
of this Lease, the sum of Twelve Thousand Five Hundred and 00/100 ($12,500)
Dollars, subject to the provisions below. Rent shall be paid in advance of or on
the first day of each month and commence and any partial month's rent shall be
prorated. Notwithstanding the foregoing, Tenant's actual minimum monthly rent
shall be reduced by 50% until such time that the amount of the Tenant Allowance
actually used by Tenant is fully deducted (up to $100,000), but subject to
Tenant's obligation to pay to Landlord the unamortized portion of the Tenant
Allowance pursuant to Paragraph 2 herein if Tenant terminates this Lease prior
to the end of the initial term.

          Annual rent during the second Lease Year and each Lease Year
thereafter, including during the "Renewal Periods," shall be increased by an
amount equal to the cost of living increase as determined by the official
Consumer Price Index published by the Bureau of Labor Statistics, United States
Department of Labor. The Consumer Price Index to be used will be that for "Urban
Wage Earners and Clerical Workers (Revised, United States City Average,
1982-1984=100)," hereinafter called the "CPI."

<PAGE>

Commercial Lease
Page 3 of 14

          An increase in monthly rent for the second Lease Year shall be based
upon a comparison of the last CPI published prior to commencement of this Lease
to the last CPI published prior to the end of the first Lease Year. The amount
of the increased monthly rent to be effective beginning the second Lease Year
(i.e., July 1, 2006 to June 30, 2007) shall be calculated by multiplying $12,500
by the last CPI published prior to the end of the first Lease Year, divided by
the last CPI published prior to the commencement of this Lease. The amount of
the increased monthly rent to be effective for all succeeding Lease Years shall
be calculated by multiplying the rent in effect at the end of the then previous
Lease Year by the last CPI published prior to the end of the previous Lease
Year, divided by the last CPI published prior to the commencement of the
previous Lease Year (or if there shall not have been a rent increase for the
previous Lease Year, then the denominator shall be the last CPI published prior
to the commencement of the last Lease Year for which there was a rent increase).

          Notwithstanding the foregoing, an annual rent increase for any Lease
Year during the initial term may not exceed 2.5% from the previous Lease Year,
and the annual rent increase for any Lease Year during the Renewal Periods shall
be 75% of the CPI increase (not to exceed 7%) from the previous Lease Year.
Thus, Rent for the first Lease Year of the first Renewal Period shall be 75% of
the increase in CPI from the previous Lease Year as described above, but no more
than a 7% increase from the previous Lease Year.

     5. ADDITIONAL RENT. As additional rent, the Tenant shall pay its share of
the cost of insurance, real property taxes, and any other charges or costs due
by Tenant under this Lease. This "Additional Rent" shall be payable by Tenant
within thirty (30) days after presentation to Tenant by Landlord of an itemized
bill for any portion of Additional Rent or within the timeframes set forth
herein, whichever is longer.

     6. TENANT INSURANCE. The Tenant shall keep in force, at its sole expense,
(i) an all risk insurance policy pertaining to the entire Leased Premises
described at EXHIBIT A, and all buildings and other improvements thereon,
including all Tenant improvements, and (2) a policy of public liability
insurance in an amount not less than One Million and 00/100 ($1,000,000) Dollars
per occurrence. Landlord shall be a named insured on all of Tenant's insurance
policies. Tenant shall furnish Landlord with certificates or other evidence
acceptable to Landlord indicating that the insurance is in effect prior to
execution of this Lease, and provide that Landlord shall be notified in writing
at least thirty (30) days prior to cancellation of any material change in or
renewal of the policy. Any personal property kept on the Leased Premises by
Tenant shall be at Tenant's sole risk.

     7. TAXES.

          (a) REAL ESTATE TAXES AND ASSESSMENTS. Tenant shall pay Landlord, as
     Additional Rent, all taxes and assessments that may be levied or assessed
     during the term

<PAGE>

Commercial Lease
Page 4 of 14

     hereof by any lawful authority against the lands and buildings of, or
     relating to, the entire Leased Premises. Should the State of Michigan or
     any political subdivisions thereof or any governmental authority having
     jurisdiction thereof impose a tax and/or assessment of any kind or nature
     upon, against, or with respect to, the rentals payable by Tenant, either by
     way of substitution for all, or any part, the taxes and assessments levied
     or assessed against such land and buildings, or in addition thereto, such
     tax and/or assessment shall be deemed to constitute a tax and/or assessment
     against such land and such buildings for the purpose of this Paragraph.

          (b) PERSONAL PROPERTY TAXES. Tenant shall be responsible for and shall
     pay, immediately when due, all taxes assessed, during the term of this
     Lease, against any leasehold interest or personal property of any kind
     owned or placed in, upon, or about the Leased Premises by Tenant; including
     all trade fixtures, equipment, and inventory.

     8. REPAIRS. Tenant shall maintain, repair, and replace, at its sole cost
and expense, the entire interior of the Leased Premises, and, subject to the
paragraph below, make all necessary repairs and replacements to all interior
improvements and systems which serve the Leased Premises, including all
electrical, mechanical, heating, and plumbing systems and equipment
(collectively the "Interior Systems"), and all glass doors, walls, trim, floors,
and lighting in the Leased Premises.

          Landlord shall have the obligation, at its sole cost and expense, to
(i) maintain, repair, and replace the entire exterior of the Leased Premises
including, but not limited to, roof, walls, foundation, and all structural
components of the building and all improvements thereon; to maintain, repair,
and replace all parking, driveway and access areas; (ii) for a period of one (1)
year after the Rent Commencement Date, keep the Interior Systems in good working
order; and (iii) to take all other action necessary to keep the Leased Premises
and all improvements thereon in good working order.

          After the first year after the Rent Commencement Date, Tenant shall
pay the first $1,000 of repairs and necessary replacements to the Interior
Systems. Any maintenance, repair, or replacement costs related to Interior
Systems during the first year, which costs more than $1,000, shall be due and
payable by Landlord to Tenant upon demand therefore, provided that Tenant
provides Landlord with invoices for all costs related to such work.

          Tenant shall, throughout the term of this Lease, promptly comply, or
cause compliance, with all laws and ordinances and the orders, rules,
regulations and requirements of all federal, state, county, and municipal
governments, and appropriate departments, commissions, boards and offices
thereof, which may be applicable to the Leased Premises.

     9. LANDLORD IMPROVEMENTS. Landlord shall, at its sole cost and expense,
provide the following improvements to the Leased Premises:

<PAGE>

Commercial Lease
Page 5 of 14

          (a) Ensure that the building exterior structure is in good repair
     (which shall include roof repairs) and, if it is not, make the necessary
     repairs within 15 days;

          (b) Ensure that the mechanical, electrical, plumbing, and other
     systems are in good condition and repair and, if the systems are not, make
     the necessary repairs within 15 days;

          (c) Seal and restripe the parking lot and driveways on the Leased
     Premises so that the same are in good condition within 30 days;

          (d) Landscape and otherwise make sure that the grass and other
     greenbelt areas are in good repair, including removing weeds, trimming
     trees, repairing the in-ground sprinkler system, and take such other action
     necessary to make the grounds presentable within 30 days;

          (e) Within 45 days, take all other action necessary to ensure that the
     exterior of the building on the Leased Premises and the building grounds
     are in good repair to allow Tenant to operate a first class business
     operation at the Leased Premises.

          If Landlord fails to make the Improvements timely, Tenant shall have
the right to make such improvements and shall be entitled to an offset from the
minimum monthly rent of all reasonable costs related thereto, including the
costs of its contractors.

     10. TENANT IMPROVEMENTS. The current building on the Leased Premises was a
First American Title Company, which Tenant will convert to a bank branch and
related improvements. To renovate the interior of the Leased Premises, Landlord
shall provide to Tenant the Tenant Allowance of up to $100,000, which money
shall be used for certain Tenant improvements (collectively "Tenant
Improvements"). The Tenant Allowance shall be paid to Tenant in the following
manner:

          (a) Tenant shall obtain, at its sole cost and expense, sealed
     architectural plans for the demolition, remodeling, and renovation
     (hereinafter collectively "Renovate(tion)") of the interior of the building
     and shall provide a copy of the same to the Landlord.

          (b) Tenant shall hire a general contractor ("General Contractor"),
     with the reasonable approval of Landlord, which approval shall not be
     unreasonably withheld, delayed, or conditioned.

          Once a General Contractor has been hired by the Tenant, Tenant agrees
          to pay the General Contractor, and provide to Landlord a copy of all
          invoices and appropriate

<PAGE>

Commercial Lease
Page 6 of 14

          waivers of lien. The total amount of Landlord's contribution (i.e.,
          the Tenant Allowance) for the construction of Tenant Improvements
          shall be $100,000 Dollars. All sums over $100,000 Dollars used to
          Renovate the interior of the building shall be paid by the Tenant.
          Landlord agrees to reimburse Tenant for the Tenant Allowance by
          allowing Tenant to reduce its minimum monthly rent as set forth in
          Paragraph 4 of this Lease.

          (c) As set forth in Paragraph 2 of this Lease, the Tenant Allowance
     shall be amortized over five (5) years.

     11. WAIVER OF SUBROGATION. Landlord and Tenant each hereby waive any and
every claim for recovery from the other for any and all loss or damage to or at
the Premises, including the Leased Premises, or any portion thereof, or to the
contents thereof, which loss or damage is covered by valid and collectable
insurance policies, including all fire and extended coverage insurance policies
and general liability insurance policies, to the extent that such loss or damage
is recoverable under said insurance policies, but which policies shall cover
losses attributable to the negligence of either party hereto (and any employees,
agents, representatives, and any parties related in any way to either party
hereto) or any other party, entity, or individual. In as much as this mutual
waiver will preclude the assignment of any aforesaid claim by way of subrogation
(or otherwise) to an insurance company (or any other person), Landlord and
Tenant each agree to give to each insurance company which has issued policies of
insurance hereunder, written notice of the terms of this mutual waiver, and to
have said insurance policies properly endorsed if necessary, to prevent the
invalidation of said insurance coverage by reason of said waiver.

     12. FIRST AND LAST YEAR PRORATION. Any Additional Rent due hereunder by
Tenant, including for insurance and taxes, during the first calendar year and
the last calendar year of this Lease, including any Renewal Period, shall be
prorated.

     13. USE OF LEASED PREMISES. Tenant shall use the Leased Premises as a
banking branch and related facilities and for no other purpose or purposes
without the prior written consent of Landlord. Tenant shall not conduct or
permit to be conducted on said Leased Premises any business which is contrary to
any laws or regulations of the United States or the State of Michigan or
contrary to local ordinances. Tenant shall not, by any act or by neglect in or
about the Leased Premises, infringe any laws or regulations of the United States
or the State of Michigan or local ordinances or the regulations of any public
authority, and shall hold Landlord harmless from any damage accruing to it from
the failure of Tenant fully to keep this covenant.

     14. UTILITIES. Tenant shall pay the entire cost of all utilities used at
the Leased Premises, including, but not limited to, electrical, gas, water and
sewer. Tenant shall arrange and pay for telephone service at the Leased Premises
and any other service or utilities of any nature.

<PAGE>

Commercial Lease
Page 7 of 14

     15. ENVIRONMENTAL REPRESENTATIONS. Tenant shall take no action to cause any
adverse environmental impact on the Leased Premises during the term of this
Lease or while Tenant is in possession of the Leased Premises. Tenant shall
comply with all federal, state, and local statutes, laws, rules, regulations,
and ordinances which relate, in any way, to environmental matters, including,
but not limited to, the Comprehensive Environmental Response, Compensation, and
Liability Act, 42 U.S.C. Section 9601 et. seq., and Michigan's Natural Resources
and Environmental Protection Act, 1994 P.A. 451.

          Landlord shall indemnify, defend, and hold Tenant harmless from any
and all claims, causes of action, liability, costs, expenses and/or damages
resulting from any toxic substances, toxic wastes, hazardous substances, and
hazardous waste (as those terms are defined in the various federal and state
environmental laws), which are released or disposed of on or under the Leased
Premises prior to the term of this Lease or resulting from any violation of any
environmental laws by Landlord or its agents, representatives and employees.

          Tenant shall indemnify, defend, and hold Landlord harmless from any
and all claims, causes of action, liability, costs, expenses and/or damages
resulting from any toxic substances, toxic wastes, hazardous substances, and
hazardous waste (as those terms are defined in the various federal and state
environmental laws), which are released or disposed of on or under the Leased
Premises during the term of this Lease or at any time resulting from Tenant's
occupancy, operation, and/or use of the Leased Premises, including any
subsequent transfer, assignment, or sublease of the Leased Premises, or
resulting from any violation of any environmental laws by Tenant or its agents,
representatives and employees.

     16. ASSIGNMENT. Tenant shall not assign this Lease nor any right hereunder,
nor hypothecate or mortgage the same, nor sublet the Leased Premises or any part
thereof, without the prior written consent of Landlord, which consent shall not
be unreasonably withheld, conditioned, or delayed; provided, however, that
Tenant may assign or convey its interest in this Lease or the Leased Premises
without Landlord's approval to a closely held company or subsidiary of Tenant.

     17. ALTERATIONS AND FIXTURES. After the Tenant Improvements have been
completed, Tenant shall make no further structural alterations and/or additions
or improvements (collectively "alterations") to the Leased Premises without
obtaining the prior written consent of Landlord, which consent shall not be
unreasonably withheld, conditioned, or delayed. All such structural alterations
(such as walls, floors, carpeting, etc.) made by Tenant shall become the sole
property of Landlord upon the termination of the Lease or the termination of
occupancy of the Leased Premises. After termination of the Lease, Tenant shall
have the right to remove all trade fixtures, equipment, and inventory, provided
Tenant repairs any damage to the Leased Premises caused by the removal.

     18. DAMAGE OR DESTRUCTION. If the building shall be damaged or destroyed in
whole or in part, than Landlord shall in good faith fully restore, repair, and
rebuild the Leased Premises,

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Commercial Lease
Page 8 of 14

provided the same can be completed within one hundred eighty (180) days. If the
same cannot be completed within one hundred eighty (180) days, or if the same is
not, in fact, fully restored by Landlord within one hundred eighty (180) days
because of a reason which is not the fault or cause of Landlord, then either
party may terminate this Lease by giving written notice to the other party.

          Upon any casualty, there shall be an equitable abatement of Rent as
mutually determined by the parties. For so long as Tenant shall continue any
business on the Leased Premises or shall continue to occupy the Leased Premises
or store property thereon, the Leased Premises shall not be deemed untenantable.

     19. CONDEMNATION. If the whole or any part of the Leased Premises shall be
taken by the power of eminent domain, this Lease shall cease as to the parcel
taken as of the date title shall vest in the condemnor; and the Rent reserved
shall then abate proportionately as to the part so taken, or shall cease if the
entire Leased Premises shall be taken. A sale in lieu of condemnation shall be
considered a "taking". At the option of either party, this Lease shall terminate
if the part of the Leased Premises so taken shall be such so as to prevent the
continued operation of Tenant's normal business activity on the Leased Premises,
as determined by Tenant.

          Tenant shall not share in the proceeds of any condemnation award
except as to an award made to Tenant for cost of moving, loss of business, and
trade fixtures, and after payment of Tenant's fair share of the expenses and
fees of obtaining such award. If neither party elects in writing to terminate
this Lease within thirty (30) days of a partial taking of the Leased Premises by
giving written notice of election to the other party, Landlord shall, upon
receipt of the award for taking, make the necessary repairs and alterations so
as to constitute the portion of any building taken a whole architectural unit to
the extent reasonably permissible under the circumstances; provided, the work
required shall not exceed that required for the building's original construction
nor shall the amount expended exceed the net award received by Landlord less the
costs of obtaining the award and any payments to any mortgagee for diminution in
the value of the fee. However, if despite Landlord's good faith efforts, the
building and other improvements are not fully restored by Landlord within one
hundred eighty (180) days after Landlord has received its condemnation proceeds,
then Tenant may terminate this Lease by giving written notice to Landlord.

     20. RIGHT TO MORTGAGE; ATTORNMENT; ESTOPPEL CERTIFICATE. Landlord reserves
the right to subject and subordinate this Lease at all times to the lien of any
mortgage or mortgages now or hereafter placed upon Landlord's interest in the
Premises and on the land and buildings of which the said Premises are a part.
Tenant covenants and agrees to execute and deliver, upon demand, such further
instrument or instruments subordinating this Lease to a lien of any such
mortgage or mortgages, and hereby irrevocably appoints Landlord its
attorney-in-fact to execute and deliver any such instrument or instruments for
and in the name of Tenant. This power is hereby declared to be coupled with an
interest and irrevocable. Any mortgage conveys the Leased Premises shall provide
that Tenant's rights under the Lease shall be superior to that of the mortgagee,
so long as Tenant is

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Commercial Lease
Page 9 of 14

not in default under the terms of this Lease and that Tenant's interest in the
Leased Premises shall not be disturbed.

     21. DEFAULT AND REENTRY. Tenant shall observe and perform all the
covenants, conditions, and agreements herein. Tenant shall be in default of this
Lease if Tenant:

          (a) shall default in the payment of any installment of Rent,
     Additional Rent, or any other sum specifically to be paid by Tenant
     hereunder and such default shall not have been cured within ten (10) days
     after Landlord gives Tenant written notice specifying such default; or

          (b) shall default in the observance or performance of any of Tenant's
     covenants, agreements or obligations hereunder, other than the covenants to
     pay Rent or any other sum herein specified to be paid by Tenant, and such
     default shall not have been cured within thirty (30) days after Landlord
     shall have given to Tenant written notice specifying such default
     (provided, however, that if the default complaint of shall be of such
     nature that the same cannot be completely remedied or cured within such
     thirty (30) day period, then such default shall not be an enforceable
     default against Tenant for the purposes of this paragraph if Tenant shall
     have commenced curing such default within such thirty (30) day period and
     shall proceed with reasonable diligence and in good faith to remedy the
     default complained of); or

          (c) shall, finally and without further possibility of appeal or
     review, (i) be adjudicated bankrupt or insolvent, or (ii) have a receiver
     or trustee appointed for all or substantially all of its business or assets
     on the ground of Tenant's insolvency, or (iii) suffer an order to be
     entered approving of a petition filed against Tenant seeking reorganization
     of Tenant under the federal bankruptcy laws or any other applicable law or
     statute of the United States or any State thereof; or

          (d) shall make an assignment for the benefit of its creditors, or file
     a voluntary petition in bankruptcy or a petition or answer seeking
     reorganization or arrangement under the federal bankruptcy laws or any
     other applicable law or statute of the United States or of any State
     thereof, or shall file a petition to take advantage of any insolvency act
     or shall consent to the appointment of a receiver or trustee of all or a
     substantial part of its business and property.

          If Tenant defaults under this Lease as set forth above, Landlord may
terminate the Lease and re-enter and repossess the Leased Premises. Landlord
may, because of the forfeiture of the Lease, terminate this Lease by filing a
summary proceedings action, or may take any other action which is provided under
Michigan law. Landlord may, without cancellation of this Lease, avail itself of
the privilege of possession above mentioned, and relet the Leased Premises in
its own name as agent of Tenant for such Rent and upon such terms as Landlord
may deem advisable, and, if the full

<PAGE>

Commercial Lease
Page 10 of 14

amounts due by Tenant under the Lease have not been paid to Landlord, Tenant
shall pay all deficiencies, including any expense incurred by such reletting,
including, but not limited to, the cost of renting, altering and redecorating
and all of Landlord's attorneys fees related thereto. Landlord may relet the
Leased Premises for the balance of Tenant's unexpired Lease term or Renewal
Period, or any portion thereof, or relet the Leased Premises beyond the
unexpired Lease term, without releasing Tenant from Tenant's obligation
hereunder to pay all deficiencies and expenses incurred by reletting, altering
and redecorating and any other amounts due by Tenant hereunder.

     22. LANDLORD'S ADVANCES. If Tenant shall default in any payment or
expenditure of rent required to be paid or expended by Tenant under the terms
hereof, or any other changes or costs due by Tenant hereunder, Landlord may, at
its option, make such payment or expenditure, in which event the amount thereof
shall be payable as Additional Rent to Landlord by Tenant on the next ensuing
rent day. On default in such payment, Landlord shall have the same remedies as
on default in payment of Rent or any other changes due by Tenant herein.

     23. LANDLORD'S INSPECTION. Landlord shall have the right to enter said
Leased Premises at all reasonable hours and upon reasonable notice to Tenant to
exhibit or examine the same, to make such repairs, additions or alterations as
may be necessary for the safety, improvement or preservation of any portion of
the Leased Premises.

     24. SIGNS. Tenant may install signs on the Leased Premises without the
prior written consent of the Landlord provided the same comply with all local
ordinances.

     25. PEACEFUL POSSESSION. Tenant, on paying the rentals herein provided, and
performing all the covenants and agreements herein contained to be performed by
it, in the manner and at the time set therefore (provided all defaults are cured
before the end of the close period), shall and may peacefully and quietly have,
hold and occupy the Leased Premises for the term aforesaid.

     26. PARTIAL INVALIDITY. If any term, covenant or condition of this Lease or
the application thereof to any person or circumstance shall, to any extent, be
invalid or unenforceable, the remainder of this Lease, or the application of
such term, covenant or condition to persons or circumstances other than those as
to which it is held invalid or unenforceable, shall not be affected thereby and
each term, covenant or condition of this Lease shall be valid and enforced to
the fullest extent permitted by law.

     27. SALE OF LEASED PREMISES. Upon any sale or transfer, including any
transfer by operation of law, of the Leased Premises, Landlord shall be relieved
from all subsequent obligations under this Lease, provided that the buyer or
transferee shall assume such obligations in writing.

     28. NOTICES. Whenever in this Lease it shall be required or permitted that
notice or demand be given or served by either party upon the other, such notice
or demand shall be in writing

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Commercial Lease
Page 11 of 14

and shall be deemed to have been duly given or served upon deposit in the United
States mail, postage prepaid, and addressed as follows, or deemed to be given on
the date such notice is personally delivered to Landlord or Tenant, as
appropriate.

     To Landlord:  The Conlin Company
                   Attention: Phil Conlin
                   2455 South Industrial, Suite K
                   Ann Arbor, Michigan 48104

     To Tenant:    Mercantile Bank of West Michigan
                   Attention: Joseph S. Calvaruso, Senior Vice President
                   310 Leonard Street NW
                   Grand Rapids, Michigan 49504

     With Copy to: Jeffrey D. Swenarton
                   Kreis, Enderle, Callander & Hudgins, PC
                   One Moorsbridge
                   P.O. Box 4010
                   Kalamazoo, Michigan 49003-4010
                   (269) 324-3000

     Either party may change its address by written notice to the other.

     29. ENTIRE AGREEMENT. This Lease constitutes the entire Lease between the
parties with respect to the matters set forth herein, and there are no
representations, warranties, covenants, or obligations except as set forth
herein. This Lease supersedes and replaces all prior and contemporaneous Leases,
understandings, negotiations, statements and discussions, written or oral, of
the parties hereto.

     30. WAIVER. The failure of either party to complain of any act or omission
on the part of the other party, no matter how long the same may continue, shall
not be deemed to be a waiver by such party of any of its rights hereunder. No
waiver by any party at any time, expressed or implied, of any breach of any
provision of this Lease shall be deemed a waiver of a breach of any other
provision of this Lease or a consent to any subsequent breach of the same or any
other provision. If any action by any party shall require the consent or
approval of another party, such consent or approval of such action on any one
occasion shall not be deemed a consent to or approval of said action on any
subsequent occasion.

     31. BENEFIT OF LEASE. The terms of this Lease shall be binding upon and
inure to the benefit of the assigns, heirs, agents, and representatives of the
parties hereto.

<PAGE>

Commercial Lease
Page 12 of 14

     32. AMENDMENTS. The terms of this Lease may be amended or modified,
provided such amendments or modifications are made in writing and signed by both
parties.

     33. GOVERNING LAW. This Lease shall be governed by the laws of the State of
Michigan.

     34. CUMULATIVE REMEDIES. All rights and remedies of the parties herein
shall be cumulative, and none shall be exclusive of any other rights and
remedies allowed under this Lease or under Michigan law.

     35. FACSIMILE. The parties agree that this Lease may be executed by
facsimile or in counterparts, and that all counterparts together, with or
without facsimile signatures, shall constitute one integrated Lease and be
deemed an original document.

     IN WITNESS WHEREOF, the parties hereto have executed this Lease.

Witnesses:                              Landlord:

                                        The Conlin Company,
                                        a sole proprietorship

                                        By: /s/ Phil Conlin
-------------------------------------       ------------------------------------
                                        Its: Owner
-------------------------------------        -----------------------------------
                                        Executed on: July 15th, 2005

Witnesses:                              Tenant:

                                        Mercantile Bank of West Michigan,
                                        a Michigan banking corporation,

/s/ Maggie Holmgren                     By: /s/ Joseph S. Calvaruso
-------------------------------------       ------------------------------------
Maggie Holmgren                             Joseph S. Calvaruso
                                        Its: Senior Vice President

/s/ Dennis Van Dam
-------------------------------------
Dennis Van Dam                          Executed on: July 12, 2005

                                 Effective Date:
  (The Effective Date of the Agreement shall mean the date the last party signs
                                 this Agreement)

<PAGE>

                                (Leased Premises)

<PAGE>

LEGAL DESCRIPTION PARCEL A

Commencing at the North 1/4 corner, Section 8, T3S, R6E, City of Ann Arbor,
Washtenaw County, Michigan; thence S86 degrees 38'10"W 679.67 feet along the
North line of said section 8; thence S00 degrees 50'20"E 125.12 feet to the
Southerly right-of-way line of Eisenhower Parkway for a PLACE of BEGINNING;
thence continuing S00 degrees 50'20"E 399.65 feet; thence S89 degrees 09'40"W
206.76 feet; thence N00 degrees 50'20"W 400.98 feet; thence the following two
courses along the Southerly right-of-way line of said Elsenhower Parkway: 193.68
feet along the arc of a 1793.86 foot radius non-tangential circular curve to the
left chord bearing N89 degrees 43'40"E 193.58 feet, and N86 degrees 38'10"E
13.21 feet to the Place of Beginning, being a part of the Northwest 1/4 of said
Section 8, containing 1.89 acres of land, more or less, being subject to
easements and restrictions of record, if any.

<PAGE>

Commercial Lease
Page 12 of 14

     32. AMENDMENTS. The terms of this Lease may be amended or modified,
provided such amendments or modifications are made in writing and signed by both
parties.

     33. GOVERNING LAW. This Lease shall be governed by the laws of the State of
Michigan.

     34. CUMULATIVE REMEDIES. All rights and remedies of the parties herein
shall be cumulative, and none shall be exclusive of any other rights and
remedies allowed under this Lease or under Michigan law.

     35. FACSIMILE. The parties agree that this Lease may be executed by
facsimile or in counterparts, and that all counterparts together, with or
without facsimile signatures, shall constitute one integrated Lease and be
deemed an original document.

     IN WITNESS WHEREOF, the parties hereto have executed this Lease.

Witnesses:                              Landlord:

                                        The Conlin Company,
                                        a sole proprietorship

/s/ Deborah Thornber                    By: /s/ Phil Conlin  /s/ Jerry L. Helmer
-------------------------------------       ---------------  -------------------
Deborah Thornber                        Its: Owner           Jerry L. Helmer

                                                             /s/ Ruthann Helmer
-------------------------------------                        -------------------
                                                             Ruthann Helmer

                                        Executed on: July 13th 2005

Witnesses:                              Tenant:

                                        Mercantile Bank of West Michigan,
                                        a Michigan banking corporation

/s/ Maggie Holmgren                     By: /s/ Joseph S. Calvaruso
-------------------------------------       ------------------------------------
Maggie Holmgren                             Joseph S. Calvaruso
                                        Its: Senior Vice President

/s/ Dennis Van Dam
-------------------------------------
Dennis Van Dam                          Executed on : July 12, 2005

                                 Effective Date:
     (The Effective Date of the Agreement shall mean the date the last party
                              signs this Agreement)

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

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

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