PSB GROUP, INC.



                               PEOPLES STATE BANK



                              EMPLOYMENT AGREEMENT



     THIS AGREEMENT (this "AGREEMENT") is made and entered into as of the 5th

day of July, 2006 (the "EFFECTIVE DATE"), by and between PSB Group, Inc., a bank

holding company organized under the laws of the State of Michigan (the

"COMPANY"), Peoples State Bank, a banking association chartered under the laws

of the State of Michigan with its main office located in Madison Heights,

Michigan (the "BANK") and Michael J. Tierney ("EXECUTIVE").



     WHEREAS, the Company, the Bank and Executive desire the Executive to serve

as President and Chief Executive Officer of the Company and President and Chief

Executive Officer of the Bank; and



     WHEREAS, the Board of Directors of the Company and the Board of Directors

of the Bank have each approved and authorized the execution of the Agreement

with Executive.



     NOW, THEREFORE, in consideration of the mutual covenants herein contained,

and upon the other terms and conditions hereinafter provided, the parties hereby

agree as follows:



     1. EMPLOYMENT; DUTIES. Commencing on January 1, 2007, Executive shall serve

in the capacity of President and Chief Executive Officer of the Company.

Commencing on the Effective Date, Executive shall serve as President and Chief

Executive Officer of the Bank. Upon assuming each position, Executive shall

perform services and discharge the duties of the President and Chief Executive

Officer of the Company and the Bank, respectively, and perform such other

reasonable services and duties of an executive, professional or administrative

nature as may from time to time be assigned to him by the Board of Directors of

the Company or the Board of Directors of the Bank, as the case may be,

(collectively the "BOARD OF DIRECTORS" or



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"BOARD"). Executive hereby accepts such employment for the compensation and upon

the terms and conditions provided in this Agreement. Executive agrees to serve

the Company and the Bank faithfully and competently and to devote his full-time

efforts to the promotion of the business of the Company, the Bank and their

affiliates, excepting his reasonable leave time, periods of illness and the

like.



     2. SERVICE ON THE BOARD OF DIRECTORS. Upon the Effective Date, Executive

shall be appointed to the Board of Directors of the Company and the Board of

Directors of the Bank. During the Term of this Agreement (as defined in Section

10 hereof), the Company agrees to nominate Executive as a nominee to serve on

the Company's Board of Directors. During the Term of this Agreement, the

Company, in its capacity as sole shareholder of the Bank, agrees to cause

Executive to be elected as a director of the Bank. Executive shall be entitled

to receive fees for serving on the Board of Directors in the same manner as

other members of the Boards of Directors of the Company and the Bank.



     3. BASE SALARY. During the Term of this Agreement, the Company agrees to

pay Executive a base salary ("BASE SALARY") at the rate of Two Hundred

Forty-Five Thousand Dollars ($245,000) per annum, payable in accordance with the

customary payroll practices of the Company; provided, however, that the rate of

Executive's Base Salary beginning in 2008 shall be reviewed by the Board of

Directors, and Executive shall be entitled to receive an increase in his Base

Salary at such percentage or in such an amount, if any, as the Board of

Directors, in its sole discretion may decide.



     4. SIGNING BONUS. Upon the Effective Date, Executive shall be paid the sum

of Twenty-Five Thousand Dollars ($25,000).



     5. MANDATORY BONUS. Executive shall be paid a bonus of Fifty Thousand

Dollars ($50,000) not later than March 31, 2007, unless he voluntarily

terminates his employment hereunder prior to January 1, 2007.



{PAGE}



     6. DISCRETIONARY BONUS. For 2007 and thereafter, Executive shall be

entitled to receive an annual discretionary bonus in an amount which shall be

based on performance criteria established by the Board of Directors and

Executive. No other compensation provided for in this Agreement shall be deemed

a substitute for Executive's eligibility to receive bonuses when and as declared

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