CAPITOL BANCORP LTD
FORM OF EMPLOYMENT AGREEMENT WITH CRISTIN REID ENGLISH AND BRUCE THOMAS
<DOCUMENT>
<TYPE>EX-10.(R)
<SEQUENCE>7
<FILENAME>k02227exv10wxry.htm
<DESCRIPTION>FORM OF EMPLOYMENT AGREEMENT WITH CRISTIN REID ENGLISH AND BRUCE THOMAS
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;10(r)</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EMPLOYMENT AGREEMENT</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">AGREEMENT made and entered into this &#95;&#95;&#95;day of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, but as of the Effective Date
hereinafter defined, by and between Capitol Bancorp Ltd., a Michigan corporation, hereinafter
referred to as &#147;Corporation&#148;, and <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, hereinafter referred to as &#147;Employee&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">WHEREAS, the Corporation has retained the services of the Employee and the Employee has accepted
such employment; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">WHEREAS, the parties desire to enter into this Agreement, which is intended to set forth in its
entirety the terms and conditions of the employment relationship between the Corporation and the
Employee;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">NOW, THEREFORE, IT IS AGREED as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>1. Employment</B>. The Employee is employed to render such services to the Corporation as directed
by its chief executive officer. The Employee&#146;s current assignment carries the title of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Employee will, during the term hereof:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Faithfully and diligently do and perform all such acts and duties and furnish such
services as the Corporation shall direct, and do and perform all acts in the ordinary
course of Corporation&#146;s business, with such limits as the Corporation may prescribe,
necessary and conducive to the Corporation&#146;s best interests; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Devote his full time, energy, and skill to the business of the Corporation and to the
promotion of the Corporation&#146;s best interests, except for absences made necessary because
of illness and vacations. Employee may not be an employee, consultant, director or other
agent of any other person, firm or corporation (other than affiliates of Corporation)
without the prior signed written approval of the chief executive officer of the
Corporation. Employee may engage in passive business activities which do not interfere
with his employment under this Agreement and which do not conflict with the Corporation&#146;s
interests. Employee may and is encouraged to engage in professional, civic and charitable
activities which do not conflict with the Corporation&#146;s interests.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2<B>. Compensation</B>. The Corporation shall pay the Employee during the term of this Agreement a
salary commencing on the effective date of this agreement as hereinafter defined. The salary
provided herein shall be payable in accordance with periodic payment procedures for all employees
of the Corporation. The Employee&#146;s salary shall be subject to the usual withholding taxes required
with respect to compensation paid by a corporation to an employee. The Employee&#146;s salary shall be
reviewed by the Corporation annually and may be increased, but not decreased, from time to time in
such amounts as the Corporation in its absolute discretion may determine.
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3. <B>Discretionary Bonuses</B>. In addition to the salary provided for in Paragraph&nbsp;2, the Employee
shall be entitled to participate in discretionary bonuses as may be from time to time authorized
and declared by the board of directors of the Corporation to its executive employees. No other
compensation provided for in this Agreement shall be deemed a substitute for the Employee&#146;s right
to participate in such bonuses when and as declared by the board of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4. <B>Retirement, Employee Benefit Plans and Fringe Benefits. </B>The Employee shall be eligible to
participate in fringe benefits, including health benefits, which may be or may later become
applicable to the Corporation&#146;s executive employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5. <B>Expense Reimbursement</B>. The Employee shall be eligible for expense reimbursement as approved by
the chief executive officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6. <B>Term</B>. The initial term of employment under this Agreement shall be for a period of
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, commencing on the Effective Date hereof. Commencing with the &#95;&#95;&#95;anniversary
date of the Effective Date, and each year thereafter, this Agreement shall be extended
automatically for a period of one (1)&nbsp;year, unless either the Corporation or the Employee gives
contrary written notice in accordance with Paragraph&nbsp;9 herein. If the Corporation decides not to
extend this agreement for any reason, the Corporation will be subject to the provisions of
Paragraph&nbsp;9 and Paragraph&nbsp;19 herein. This paragraph shall be limited by the terms and conditions
set forth in the &#147;Termination of Employment&#148; provisions set forth in Paragraph&nbsp;9 of this Agreement
and the Change in Control provisions of Paragraph&nbsp;19 of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7. <B>Effective Date</B>. For the purpose of this Agreement, the &#147;Effective Date&#148; is the date upon which
this Agreement is executed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8. <B>Standards</B>. The Employee shall perform his duties under this Agreement in accordance with the
highest standards of fiduciary responsibility applicable to financial institutions in carrying out
their respective responsibilities to their depositors, customers and shareholders. These standards
shall conform to the highest standards of conduct imposed by any and every regulatory body having
jurisdiction over the Corporation. Performance standards for the Employee may be established from
time to time by the chief executive officer of the Corporation and are hereby incorporated within
the terms of this Agreement. It is recognized that the Corporation shall have wide latitude in
defining performance standards so as to ensure the safe and sound operation of its business
endeavors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9. <B>Termination of Employment</B>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Employee&#146;s employment term under this Agreement may be terminated at any time by
the board of directors of the Corporation, with or without cause (as defined below).
Termination of this agreement by the Corporation without cause shall give rise to the
Employee&#146;s right to receive compensation in accordance with Paragraph&nbsp;2 of this Agreement
for a period of &#95;&#95;&#95; subsequent to the termination, provided that Employee executes a
release agreement provided by the Corporation. Employee shall not receive compensation pay
in the event of his retirement, death, or disability. The</TD>
</TR>


</TABLE>
</DIV>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Employee shall have no right to receive compensation or any other remuneration whatsoever
under this Agreement for any period after voluntary termination or termination for cause.
For purposes of this Agreement, for &#147;cause&#148; shall mean termination for any of the following
reasons:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Personal dishonesty materially affecting the
Corporation or any affiliate;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">ii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Willful misconduct;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">iii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Willful breach of a fiduciary duty involving personal profit;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">iv.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Intentional failure to perform stated duties;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">v.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Willful violation of any law, rule, regulation, or
policy of or relating to the operation of the Corporation or any of its
affiliates;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">vi.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The order of any court or supervising agency with
jurisdiction over the affairs of the Corporation or any subsidiary; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">vii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Employee&#146;s willful violation of any provision
of this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">viii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Unauthorized acts outside the scope of employment
which tend to disparage the corporation or lessen its good will. The
Corporation has the sole and absolute discretion in determining what is
disparaging or harmful to its good will.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement may be terminated by the Employee at any time upon thirty (30)&nbsp;days
written notice to the Corporation or upon such shorter period as may be decided by the
board of directors of the Corporation subsequent to written notice. In the event of such
termination, the Corporation shall be obligated only to continue to pay the Employee&#146;s
salary and provide the other benefits provided by this Agreement up to the date of the
termination.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of the death of the Employee during the term of this Agreement, the
Employee&#146;s estate shall be entitled to receive salary due the Employee through the last day
of the calendar month in which his death shall have occurred.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the Employee is temporarily prohibited from participating in the conduct of the
Corporation&#146;s affairs at the request of or by the order of any court or supervising agency
with jurisdiction over the Corporation, the Corporation&#146;s obligations under this Agreement
shall not terminate and the Employee shall be placed on administrative leave with or
without pay at the discretion of the board of directors. If the charges in the proceeding
out of which such request or order is issued mature into a permanent prohibition order,
unless stayed by appropriate proceedings, the Corporation&#146;s obligations hereunder shall
terminate as of the effective date of such permanent order.</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All obligations under this agreement may be terminated, except to the extent determined
that continuation of the Agreement is necessary for the continued operation of the
Corporation:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>By the Federal Deposit Insurance Corporation
(&#147;FDIC&#148;) at the time the FDIC enters into an agreement to provide
assistance to or on behalf of the Corporation or any affiliate; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">ii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>By the Federal Reserve Board (&#147;FRB&#148;), or any other
agency, at the time the FRB approves a supervisory merger to resolve
problems related to the operation of the Corporation or any affiliate or
when the Corporation is determined by the FRB to be in an unsafe or
unsound condition.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Confidential Information. </B>Employee recognizes and acknowledges that he will have
access to certain information concerning the Corporation and its affiliates and that such
information is Confidential Information, as defined herein, and constitutes valuable,
special and unique property of the Corporation and its affiliates. Employee shall not at
any time, either during or subsequent to the Term, disclose to others, use, copy or permit
to be copied, except in pursuance of his duties for and on behalf of the Corporation, its
successors, assigns or nominees, any Confidential Information of the Corporation
(regardless of whether developed by Employee) without the prior written consent of the
Corporation.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">The term &#147;Confidential Information&#148; with respect to any person means any secret or
confidential information or know-how and shall include, but shall not be limited to,
the plans, customers, costs, prices, uses, and applications of products and
services, results of investigations, trade secrets, trade knowledge, formulae,
studies owned or used by such person, and all products, processes, compositions,
computer programs, and servicing, marketing or operational methods and techniques at
the time used, developed, investigated, made or sold by such person, before or
during the term or this Agreement, and any other information that is not readily
available to the public or that is maintained as confidential by such person.
Employee shall maintain in confidence any Confidential Information of third parties
received as a result of his employment with the Corporation in accordance with the
Corporation&#146;s obligations to such third parties and the policies established by the
Corporation and its affiliates.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Delivery of Documents Upon Termination. </B>Employee shall deliver to the Corporation or
its designee at the termination of his employment all correspondence, memoranda, notes,
records, drawings, sketches, plans, customer lists, product compositions and other
documents and all copies thereof, made, composed or received by Employee, solely or jointly
with others, that are in Employee&#146;s possession, custody or control at termination and that
are related in any manner to the past, present or anticipated business of the Corporation.</TD>
</TR>

</TABLE>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>No Tampering. </B>Throughout the Term and through the first anniversary of the expiration
thereof, Employee shall not (a)&nbsp;request, induce or attempt to influence any customers of
the Corporation or any affiliate to curtail or cancel any business they may transact with
Corporation; or (b)&nbsp;request, induce or attempt to influence any employee of the Corporation
or any affiliate to terminate his employment with the Corporation or any affiliate.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Remedies. </B>Employee acknowledges that a remedy at law for any breach or attempted breach
of Employee&#146;s obligations under this section 9 may be inadequate, agrees that the
Corporation may be entitled to specific performance and injunctive and other equitable
remedies in case of any such breach or attempted breach, and further agrees to waive any
requirement for the securing or posting of any bond in connection with the obtaining of any
such injunctive or other equitable relief. The termination of the Agreement for any reason
shall not be deemed to be a waiver by Corporation of any breach by Employee of this
Agreement or any other obligation owed the Corporation and notwithstanding such a
termination Employee shall be liable for all damages attributable to such a breach.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">10<B>. No Assignments</B>. This Agreement is personal to each of the parties hereto, and neither party
may assign or delegate any of the rights or obligations hereunder without first obtaining the
written consent of the other party with the exception that this Agreement may be assigned by the
Corporation to an affiliate entity of the Corporation
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">11. <B>Right to Attorney. </B>The Employee acknowledges the ability to have consulted with counsel of
his choice, and if the Employee has not done so, it is solely the result of the Employee&#146;s
conscious decision. The Employee acknowledges reading and understanding all the terms and
conditions of this Agreement and the Corporate Personnel Manual, and represents that there is no
unclear or ambiguous term or condition contained therein, and is executing this Agreement with a
complete and full understanding of all its terms and conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12. <B>Personnel Manual. </B>Employee acknowledges receipt of the Personnel Manual and Code of Ethics
for the Corporation (&#147;Manual&#148;), and agrees by accepting employment that the Employee will be bound
by the terms, conditions, rules and regulations as set forth in said manual. Any benefit not set
forth herein, but included as a benefit in the Manual, shall also be a benefit provided to the
Employee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">13. <B>Notices</B>. Any notices under this Agreement shall be deemed given when in writing and delivered
personally or sent by certified mail, return receipt, postage prepaid, to the last known address of
the party to whom notice is given. If sent by mail, notice shall be deemed given on the day of
receipt.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">14. <B>Amendments</B>. No amendments or additions to this Agreement shall be binding unless in writing
and signed by both parties, except as herein otherwise provided.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">15. <B>Paragraph&nbsp;Headings</B>. The paragraph headings used in this Agreement are included solely for
convenience and shall not affect or be used in connection with the interpretation of this
Agreement.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">16. <B>Severability</B>. The provisions of this Agreement shall be deemed severable, and the invalidity
or unenforceability of any provision shall not affect the validity or enforceability of the other
provisions hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">17. <B>Applicable Law</B>. This Agreement shall be governed in all respects by the laws of the State
of Michigan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">18. <B>Entire Agreement. </B>This Agreement contains the entire agreement of the parties with respect
the transactions described herein and supersedes any and all other oral or written agreements
heretofore made, and there are no representations or inducements by or to, or any agreements
between, any of the parties hereto other than those contained herein in writing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">19. <B>Change in Control. </B>Employee shall be entitled to certain benefits in the event of a change in
control of the Corporation.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of a &#147;Change in Control&#148; (as defined in Subparagraph (d)&nbsp;below), of the
Corporation during the term of this agreement, Employee shall be entitled to terminate this
Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event that Employee terminates this Agreement pursuant to this Paragraph&nbsp;19, the
Corporation will be obligated to pay or cause to be paid to Employee all amounts due and
owing to the date of termination of this Agreement and an amount equal to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> of Employee&#146;s &#147;base amount&#148; as defined in Section&nbsp;280G(b)(3)(A) of the Internal Revenue
Code of 1986, as amended (the &#147;Code&#148;) provided that Employee executes a release agreement
provided by the Corporation.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event that the Corporation terminates this Agreement after a Change in Control
(as defined in subparagraph (d)&nbsp;below), The Corporation will be obligated to pay or cause
to be paid to Employee all amounts due and owing to the date of termination of this
Agreement (including any amounts required under paragraph 9) and an amount equal to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> of Employee&#146;s &#147;base amount&#148; as defined in Section&nbsp;280G(b)(3)(A) of the
Internal Revenue Code of 1986, as amended (the &#147;Code&#148;) provided that Employee executes a
release agreement provided by the Corporation.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the purpose of this Agreement, the term Change in Control shall mean any of the
following events:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>After the Effective Date of this Agreement, any
non-affiliated entity of Corporation directly or indirectly, acquires
beneficial ownership of voting stock, or acquires irrevocable proxies or
any combination of voting stock and irrevocable proxies, representing
twenty-five percent (25%) or more of the voting securities of the
Corporation, or acquires control of in any manner the election of a
majority of the directors of the Corporation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">ii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All or substantially all of the assets of the
Corporation are sold or otherwise transferred to or are acquired by any
other non-affiliated</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">6
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>corporation, association, or other person, entity, or group other than
Corporation.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Notwithstanding the other provisions of this Paragraph&nbsp;19, a transaction or event shall not be
considered a Change in Control if, prior to the consummation or occurrence of such transaction or
event, Employee and the Corporation agree in writing that the same shall not be treated as a Change
in Control for purposes of this Agreement.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amounts payable pursuant to this Paragraph&nbsp;19 shall be paid, at the option of the
Corporation either in one lump sum or in equal payments over the remaining term of this
Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>It is the intent of the parties hereto that all payments made pursuant to this
Agreement be deductible by the Corporation and Bank for federal income tax purposes and not
result in the imposition of an excise tax on Employee. Notwithstanding anything contained
in this Agreement to the contrary, any payments to be made to or for the benefit of
Employee which are deemed to be &#147;parachute payments&#148; as that term is defined in Section
280G(b)(2) of the Code, shall be modified or reduced to the extent reasonably deemed to be
necessary by the Corporation to avoid the imposition of an excise tax on Employee under
Section&nbsp;4999 of the Code or the disallowance of a deduction to the Corporation under
Section&nbsp;280G(a) of the Code.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above
written.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="34%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>Employer:</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">CAPITOL BANCORP LTD.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>

<TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" colspan="3" valign="top">Joseph D. Reid<BR>
Chairman of the Board</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left"><B>Employee:</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">7
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SCHEDULE</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EMPLOYMENT AGREEMENTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Each of the executive officers of Capitol named below executed an Employment Agreement on the date
set forth across from his or her name in substantially the form attached hereto.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Executive Officer</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Date of Agreement</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Cristin Reid English
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;14, 2006</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Bruce Thomas
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;14, 2006</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">8
</DIV>


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