**Exhibit 10.8****MONARCH COMMUNITY BANCORP, INC.****2003 RECOGNITION AND RETENTION PLAN****RESTRICTED STOCK AGREEMENT**RS No. 03-__     Shares of Restricted Stock are hereby awarded on                     , by Monarch Community Bancorp,Inc. a Maryland-chartered corporation (the “Corporation”) to                      (the “Grantee”) inaccordance with the following terms and conditions:     1. Share Award. The Corporation hereby awards to the Grantee                                 shares(“Shares”) of common stock of the Corporation (“Common Stock”) pursuant to the Monarch CommunityBancorp, Inc. 2003 Recognition and Retention Plan, as the same may be amended from time to time(the “Plan”), and upon the terms and conditions and subject to the restrictions in the Plan and ashereinafter set forth. A copy of the Plan, as currently in effect, is incorporated herein byreference and is attached hereto.     2. Restrictions on Transfer and Restricted Period. During the period commencing onthe date of this Agreement and terminating on                     , Shares which have not Vested (asdefined below) may not be sold, assigned, transferred, pledged, or otherwise encumbered by theGrantee except, in the event of the death of the Grantee, by will or the laws of descent anddistribution or pursuant to a “domestic relations order,” as defined in Section 414(p)(1)(B) of theCode, or as hereinafter provided.     Provided that the Grantee does not incur a Termination of Service, Shares shall become vested(“Vested”) in accordance with the following schedule:   Date of Vesting Number of Shares Vested   Except to the extent prohibited by the OTS regulations, the Committee referred to in Section 3 ofthe Plan shall have the authority, in its discretion, to accelerate the time at which any or all ofthe restrictions shall lapse with respect to any Shares or to remove any or all such restrictions,whenever the Committee may determine that such action is appropriate by reason of changes inapplicable tax or other laws, changes in circumstances occurring after the commencement of theRestricted Period, or any other reason.     3. Termination of Service. Except as provided in Section 8 below, if the Granteeincurs a Termination of Service for any reason (other than death or disability), all Shares whichare not Vested at the time of such Termination of Service shall upon such Termination of Service beforfeited to the Corporation. If the Grantee incurs a Termination of Service by reason of death ordisability, all Shares awarded pursuant to this Award Agreement shall become Vested at the time ofsuch termination, and the Shares shall not thereafter be forfeited.
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     4. Certificates for the Shares. The Corporation shall issue five certificates inrespect of the Shares in the name of the Grantee, and shall hold such certificates for the benefitof the Grantee until the Shares represented there by become Vested. Such certificates shall bearthe following legend:     “The transferability of this certificate and the shares of stockrepresented hereby are subject to the terms and conditions (includingforfeiture) contained in the Monarch Community Bancorp, Inc. 2003Recognition and Retention Plan. Copies of such Plan are on file in theoffice of the Secretary of Monarch Community Bancorp, Inc., 375 NorthWillowbrook Road, Coldwater, Michigan 49036.”     The Grantee further agrees that simultaneously with the execution of this Award Agreement, theGrantee shall execute stock powers in favor of the Corporation with respect to the Shares and thatthe Grantee shall promptly deliver each stock powers to the Corporation.     5. Grantee’s Rights. Subject to all limitations provided in this Award Agreement, theGrantee, as owner of the Shares during the Restricted Period, shall have all the rights of astockholder, including, but not limited to, the right to receive all dividends paid on the Sharesand the right to vote such Shares.     6. Expiration of Restricted Period. Upon Vesting with respect to a portion of theShares, the Corporation shall deliver to the Grantee (or in the case of a deceased Grantee, to hislegal representative) the certificate in respect of such Shares and the related stock power held bythe Corporation pursuant to Section 4 above. Shares which have become Vested shall be free of therestrictions referred to in Section 2 above, and such certificate shall not bear the legendprovided for in Section 4 above.     7. Adjustments for Changes in Capitalization of the Corporation. In the event of anychange in the outstanding shares of Common Stock by reason of any reorganization, recapitalization,stock split, stock dividend, combination or exchange of shares, merger, consolidation, or anychange in the corporate structure of the Corporation or in the shares of Common Stock, the numberand class of Shares covered by this Award Agreement shall be appropriately adjusted by theCommittee, whose determination shall be conclusive. Any shares of Common stock or other securitiesreceived, as a result of the foregoing, by the Grantee with respect to Shares subject to therestrictions contained in Section 2 above shall also be subject to such restrictions, and thecertificate or other instruments representing or evidencing such shares or securities shall belegended and deposited with the Corporation in the manner provided in Section 4 above. The Granteeshall execute stock powers in favor of the Corporation with respect to such shares received by theGrantee.     8. Effect of Change in Control. If a tender offer or exchange offer for shares of theCorporation (other than such an offer by the Corporation) is commenced, or if a Change in Controlshall occur, and the Grantee thereafter incurs a Termination of Service for any reason whatsoever,all Shares which are not then Vested shall Vest in full upon the happening of such events;provided, however, that no Shares which have previously been forfeited shall thereafter becomeVested.     9. Delivery and Registration of Shares of Common Stock. The Corporation’s obligationto deliver Shares hereunder shall, if the Committee so requests, be conditioned upon the Grantee’scompliance with the terms and provisions of Section 10 of the Plan.     10. Plan and Plan Interpretations as Controlling. The Shares hereby awarded and theterms and conditions herein set forth are subject in all respects to the terms and conditions ofthe Plan, which are controlling. Capitalized terms used herein which are not defined in this AwardAgreement shall have the
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meaning ascribed to such terms in the Plan. All determinations andinterpretations made in the discretion of the Committee shall be binding and conclusive upon theGrantee or his legal representatives with regard to any questions arising hereunder or under thePlan.     11. Grantee Service. Nothing in this Award Agreement shall limit the right of theCorporation or any of its Affiliates to terminate the Grantee’s service as a director, advisorydirector, or employee, or otherwise impose upon the Corporation or any of its Affiliates anyobligation to employ or accept the services of the Grantee.     12. Withholding Tax. Upon Vesting of any Shares (or at any such earlier time, if any,that an election is made by the Grantee under Section 83(b) of the Code, or any successor thereto),the Corporation may withhold from any payment or distribution made under the Plan sufficient Sharesto cover any applicable withholding and employment taxes. The Corporation shall have the right todeduct from all dividends paid with respect to Shares the amount of any taxes which the Corporationis required to withhold with respect to such dividend payments.     13. Amendment. The Committee may waive any conditions of or rights of the Corporationor modify or amend the terms of this Award Agreement; provided, however, that the Committee may notamend, alter, suspend, discontinue or terminate any provision hereof which may adversely affect theGrantee without the Grantee’s (or his legal representative’s) written consent.     14. Grantee Acceptance. The Grantee shall signify his acceptance of the terms andconditions of this Agreement by signing in the space provided below, by signing the attached stockpowers, and by returning a signed copy hereof and of the attached stock powers to the Corporation.     IN WITNESS WHEREOF, the parties hereto have caused this Award Agreement to be executed as ofthe date first above written.           MONARCH COMMUNITY BANCORP, INC.           By:                      ACCEPTED:                                  (Street Address)                    (City, State and Zip Code)  
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